MGMT 409 Exam 4

Enhancing creativity in organizations

1. make creativity part of the organization's culture often through explicit goals. 2. state goals that some percentage of future revenues is to be gained from new products. This clearly communicates that creativity and innovation are valued. set goals for revenues from creative products and services 3. reward creative successes, while being careful not to punish creative failures. Many ideas that seem worthwhile on paper fail to pan out in reality. If the first person to come up with an idea that fails is fired or otherwise punished, others in the organization will become more cautious in their own work. And, as a result, fewer creative ideas will emerge. 4. encouraging debate when discussing new ideas and removing passive aggressive behaviors. reward creativity 5. Dealing with conflict head-on and embracing the tension spurs new ideas and different angles, and reduces risks.

characteristics of groups and teams

As groups and teams mature and pass through the four basic stages of development, they begin to take on four important characteristics— a role structure, norms, cohesiveness, and informal leadership.

Perception and Individual Behavior

As noted earlier, an important element of an attitude is the person's perception of the object about which the attitude is formed. Because perception plays a role in a variety of other workplace behaviors, managers need to have a general understanding of basic perceptual processes.32 The role of attributions is also important.

functional groups

A permanent group created by the organization to accomplish a number of organizational purposes with an unspecified time horizon The advertising department at Target, the management department at Florida Atlantic University, and the nursing staff at the Mayo Clinic are functional groups. The advertising department at Target, for example, seeks to plan effective advertising campaigns, increase sales, run in-store promotions, and develop a unique identity for the company. It is assumed that the functional group will remain in existence after it attains its current objectives; those objectives will be replaced by new ones.

task groups

A group created by the organization to accomplish a relatively narrow range of purposes within a stated or implied time horizon Most committees and task forces are task groups. The organization specifies group membership and assigns a relatively narrow set of goals, such as developing a new product or evaluating a proposed grievance procedure. The time horizon for accomplishing these purposes is either specified (a commit-tee may be asked to make a recommendation within 60 days) or implied (the project team will disband when the new product is developed). Teams : are a special form of task group that have become increasingly popular. In the sense used here, a team is a group of workers that functions as a unit, often with little or no supervision, to carry out work-related tasks, functions, and activities. Earlier forms of teams included autonomous work groups and quality circles. Today, teams are also sometimes called "self-managed teams," "cross-functional teams," or "high-performance teams." Many firms today are routinely using teams to carry out most of their daily operations. Further, virtual teams—teams : comprised of people from remote worksites who work together online—are also becoming more and more common. In fact, virtual connections are sometimes more complex than basic online hookups, and you'd be surprised at what sorts of things well-connected virtual teams can do. Organizations create teams for a variety of reasons. For one thing, they give more responsibility for task performance to the workers who are actually performing the tasks. They also empower workers by giving them greater authority and decision-making freedom. In addi-tion, they allow the organization to capitalize on the knowledge and motivation of their workers. Finally, they enable the organization to shed its bureaucracy and to promote flexibility and responsiveness. Ford used teams to design its newest version of the Mustang. Similarly, General Motors used a team to develop its new Chevrolet Volt. When an organization decides to use teams, it is essentially implementing a major form of organization change, as discussed in Chapter 12. Thus it is important to follow a logical and systematic approach to planning and implementing teams in an existing organization design. It is also important to recognize that resistance may be encountered. This resistance is most likely from first-line managers who will be giving up much of their authority to the team. Many organizations find that they must change the whole management philosophy of such managers away from being supervisors to being coaches or facilitators. After teams are in place, managers should continue to monitor their contributions and how effectively they are functioning. In the best circumstances, teams will become very cohesive groups with high performance norms. To achieve this state, the manager can use any or all of the techniques described later in this chapter for enhancing cohesiveness. If implemented properly, and with the support of the workers themselves, performance norms will likely be relatively high. In other words, if the change is properly implemented, the team participants will understand the value and potential of teams and the rewards they may expect to get as a result of their contributions. On the other hand, poorly designed and implemented teams will do a less effective job and may detract from organizational effectiveness.

Popular Motivational Strategies

Although the various theories discussed thus far provide a solid explanation for motivation, managers must use various techniques and strategies to actually apply them. Among the most popular motivational strategies today are empowerment and participation and alternative forms of work arrangements. Various forms of performance-based reward systems, discussed in the next section, also reflect efforts to boost motivation and performance.

The Creative Process

Although creative people often report that ideas seem to come to them "in a flash," individual creative activity actually tends to progress through a series of stages. Not all creative activity has to follow these four stages, but much of it does. 1. preparation To make a creative contribution to business management or business services, a person must usually receive formal training and education in business. Formal education and training are usually the most efficient ways of becoming familiar with this vast amount of research and knowledge. This is one reason for the strong demand for undergraduate and master's level business educa-tion. Formal business education can be an effective way for a person to get "up to speed" and begin making creative contributions quickly. Experiences that managers have on the job after their formal training has ended can also contribute to the creative process. In an important sense, the education and training of creative people never really ends. It continues as long as they remain interested in the world and curious about the way things work. 2. incubabtion —a period of less intense conscious concentration during which the knowledge and ideas acquired during preparation mature and develop. A curious aspect of incubation is that it is often helped along by pauses in concentrated rational thought. Some creative people rely on physical activity such as jog-ging or swimming to provide a break from thinking. Others may read or listen to music. Sometimes sleep may even supply the needed pause. Bruce Roth eventually joined Warner-Lambert, an up-and-coming drug company, to help develop medication to lower cholesterol. In his spare time, Roth read mystery novels and hiked in the mountains. He later acknowl-edged that this was when he did his best thinking. Similarly, twice a year Bill Gates retreats to a secluded wooded cabin to reflect on trends in technology; it is during these weeks, he says, that he develops his sharpest insights into where Microsoft should be heading. 3. insight is a spontaneous break-through in which the creative person achieves a new understanding of some problem or situ-ation. Insight represents a coming together of all the scattered thoughts and ideas that were maturing during incubation. It may occur suddenly or develop slowly over time. Insight can be triggered by some external event, such as a new experience or an encounter with new data, which forces the person to think about old issues and problems in new ways, or it can be a completely internal event in which patterns of thought finally coalesce in ways that generate new understanding. One day Bruce Roth was reviewing data from some earlier stud-ies that had found the new drug under development to be no more effective than other drugs already available. But this time he saw some statistical relationships that had not been identi-fied previously. He knew then that he had a major breakthrough on his hands. 4. verification determines the validity or truthful-ness of the insight. For many creative ideas, verification includes scientific experiments to determine whether the insight actually leads to the results expected. Verification may also include the development of a product or service prototype. A prototype is one product or a very small number of products built just to see if the ideas behind this new product actually work. Product prototypes are rarely sold to the public but are very valuable in verifying the insights developed in the creative process. Once the new product or service is developed, verification in the marketplace is the ultimate test of the creative idea behind it. Bruce Roth and his colleagues set to work testing the new drug compound and eventually won FDA approval. The drug, named Lipitor, is already the largest-selling pharmaceutical in history. And Pfizer, the firm that bought Warner-Lambert in a hostile takeover, earns more than $10 billion a year on the drug.

Other Types of Team and Group Rewards

Although gainsharing and Scanlon-type plans are among the most popular group incentive reward systems, there are other systems that are also used by some organizations. Some companies, for example, have begun to use true incentives at the team or group level. Just as with individual incentives, team or group incentives tie rewards directly to performance increases. And, like individual incentives, team or group incentives are paid as they are earned rather than being added to employees' base salaries. The incentives are distributed at the team or group level, however, rather than at the individual level. In some cases, the distribution may be based on the existing salary of each employee, with incentive bonuses being given on a proportionate basis. In other settings, each member of the team or group receives the same incentive pay. Some companies also use nonmonetary rewards at the team or group level—most commonly in the form of prizes and awards. For example, a company might designate the particular team in a plant or subunit of the company that achieves the highest level of productivity increase, the highest level of reported customer satisfaction, or a similar index of performance. The reward itself might take the form of additional time off, as described earlier in this chapter, or a tangible award, such as a trophy or plaque. In any event, the idea is that the reward is at the team level and serves as recognition of exemplary performance by the entire team. There are also other kinds of team- or group-level incentives that go beyond the contri-butions of a specific work group. These are generally organization-wide kinds of incentives. One longstanding method for this approach is profit sharing. In a profit-sharing approach, at the end of the year some portion of the company's profits is paid into a profit-sharing pool that is then distributed to all employees. Either this amount is distributed at that time, or it is put into an escrow account and payment is deferred until the employee retires. The basic rationale behind profit-sharing systems is that everyone in the organization can expect to benefit when the company does well. But, on the other side of the coin, during bad economic times, when the company is perhaps achieving low or perhaps no profits, then no profit sharing is paid out. This sometimes results in negative reactions from employees, who have perhaps come to feel that profit sharing is really a part of their annual compensation. Employee stock ownership plans (ESOPs) also represent a group-level reward system that some companies use. Under the employee stock ownership plan, employees are gradually given a major stake in ownership of a corporation. The typical form of this plan involves the company's taking out a loan, which is then used to buy a portion of its own stock in the open market. Over time, company profits are then used to pay off this loan. Employees, in turn, receive a claim on ownership of some portion of the stock held by the company, based on their seniority and perhaps on their performance. Eventually, each individual becomes an owner of the company. One recent study found that 20 percent of employees in the private sector (25 million Americans) reported owning stock in their companies, with 10 percent holding stock options.

informal or interest groups

An informal or interest group is created by its own members for purposes that may or may not be relevant to organizational goals. it also has an unspecified time horizon. A group of employees who lunch together every day may be discussing productivity, money embezzling, or local politics and sports. As long as the group members enjoy eating together, they will probably continue to do so. When lunches cease to be pleasant, they will seek other company or a different activity. Informal groups can be a powerful force that managers cannot ignore. One writer described how a group of employees at a furniture factory subverted their boss's efforts to increase production. They tacitly agreed to produce a reasonable amount of work but not to work too hard. One man kept a stockpile of completed work hidden as a backup in case he got too far behind. In another example, auto workers described how they left out gaskets and seals and put soft-drink bottles inside doors to cause customer complaints. Of course, informal groups can also be a positive force, as when people work together to help out a colleague who has suffered a personal tragedy. For example, several instances of this behavior were reported in the wake of the devastating heavy rains and flooding that swept through parts of the Southwest in 2015. In recent years the Internet has served as a platform for the emergence of more and different kinds of informal or interest groups. As one example, Yahoo! includes a wide array of interest groups that bring together people with common interests. And increasingly, workers who lose their jobs as a result of layoffs are banding together electronically to offer moral support to one another and to facilitate networking as they all look for new jobs

role ambiguity

Arises when the sent role is unclear and the individual does not know what is expected of him or her If your instructor tells you to write a term paper but refuses to provide more information, you will probably experience role ambiguity. You do not know what the topic is, how long the paper should be, what format to use, or when the paper is due. In work settings, role ambiguity can stem from poor job descriptions, vague instructions from a supervisor, or unclear cues from coworkers. The result is likely to be a subordinate who does not know what to do. Role ambiguity can be a significant problem for both the individual who must contend with it and the organization that expects the employee to perform.

Ohio State Studies

At about the same time that Likert was beginning his leadership studies at the University of Michigan, a group of researchers at Ohio State University also began studying leadership. The extensive questionnaire surveys conducted during the Ohio State studies also suggested that there are two basic leader behaviors or styles: initiating-structure behavior and consideration behavior. initiating-structure behavior : The behavior of leaders who define the leader-subordinate role so that everyone knows what is expected, establish formal lines of communication, and determine how tasks will be performed consideration behavior : The behavior of leaders who show concern for subordinates and attempt to establish a warm, friendly, and supportive climate The behaviors identified at Ohio State are similar to those described at Michigan, but there are important differences. One major difference is that the Ohio State researchers did not interpret leader behavior as being one-dimensional; each behavior was assumed to be independent of the other. Presumably, then, a leader could exhibit varying levels of initiating structure and at the same time varying levels of consideration. At first, the Ohio State researchers thought that leaders who exhibit high levels of both behaviors would tend to be more effective than other leaders. A study at International Harvester (now Navistar International), however, suggested a more complicated pattern. The researchers found that employees of supervisors who ranked high on initiating structure were high performers but expressed low levels of satisfaction and had a higher absence rate. Conversely, employees of supervisors who ranked high on consideration had low performance rat-ings but high levels of satisfaction and few absences from work. Later research isolated other variables that make consistent prediction difficult and determined that situational influences also occurred. (This body of research is discussed in the section on situational approaches to leadership.)

evaluation and implication

Because Vroom's current approach is relatively new, it has not been fully scientifically tested. The original model and its subsequent refinement, however, attracted a great deal of attention and generally was supported by research. For example, there is some support for the idea that individuals who make decisions consistent with the predictions of the model are more effective than those who make decisions inconsistent with it. The model therefore appears to be a tool that managers can apply with some confidence in deciding how much subordinates should participate in the decision-making process.

related approaches to leadership

Because of its importance to organizational effectiveness, leadership continues to be the focus of a great deal of research and theory building. New approaches that have attracted much attention are the concepts of substitutes for leadership and transformational leadership.

Other Personality Traits At Work

Besides the Big Five and the Myers-Briggs framework, there are several other personality traits that influence behavior in organizations. Among the most important are locus of control, self-efficacy, authoritarianism, Machiavellianism, self-esteem, and risk propensity.

managing political behavior

By its very nature, political behavior is tricky to approach in a rational and systematic way. But managers can handle political behavior so that it does not do excessive damage. First, managers should be aware that, even if their actions are not politically motivated, others may assume that they are. Second, by providing subordinates with autonomy, responsibility, challenge, and feedback, managers reduce the likelihood of political behavior by subordinates. Third, managers should avoid using power if they want to avoid charges of political motivation. Fourth, managers should get disagreements out in the open so that subordinates will have less opportunity for political behavior by using conflict for their own purposes. Finally, managers should avoid covert activities. Behind-the-scenes activities give the impression of political intent, even if none really exists. Other guidelines include clearly communicating the bases and processes for performance evaluation, tying rewards directly to performance, and minimizing competition among managers for resources. Of course, these guidelines are much easier to list than they are to implement. The well-informed manager should not assume that political behavior does not exist or, worse yet, attempt to eliminate it by issuing orders or commands. Instead, the manager must recognize that political behavior exists in virtually all organizations and that it cannot be ignored or stamped out. It can, however, be managed in such a way that it will seldom inflict serious damage on the organization. It may even play a useful role in some situations. For example, a manager may be able to use his or her political influence to stimulate a greater sense of social responsibility or to heighten awareness of the ethical implications of a decision.

special forms of executive compensation

Beyond base salary and bonuses, many executives receive other kinds of compensation as well. A form of executive compensation that has received a lot of attention in recent years has been various kinds of stock options. A stock option plan is established to give senior managers the option to buy company stock in the future at a predetermined fixed price. The basic idea underlying stock option plans is that if the executives contribute to higher levels of organizational performance, then the company stock should increase in value. Then the executive will be able to purchase the stock at the predetermined price, which theoretically should be lower than its future market price. The difference then becomes profit for the individual. HP awarded Meg Whitman stock options with a potential value of $12.7 million. Stock options continue to grow in popularity as a means of compensating top managers. Options are seen as a means of aligning the interests of the manager with those of the stockholders, and given that they do not cost the organization much (other than some possible dilution of stock values), they will probably be even more popular in the future. In fact, a recent study by KPMG Peat Marwick indicates that for senior management whose salary exceeds $250,000, stock options represent the largest share of the salary mix (relative to salary and other incentives). Furthermore, when we consider all of top management (annual salary over $750,000), stock options comprise a full 60 percent of their total compensation. And the Peat Marwick report indicates that even among exempt employees at the $35,000-a-year level, stock options represent 13 percent of total compensation. But events in recent years have raised serious questions about the use of stock options as incentives for executives. For example, several executives at Enron allegedly withheld critical financial information from the markets, cashed in their stock options (while Enron stock was trading at $80 a share), and then watched as the financial information was made public and the stock fell to less than $1 a share. Of course, these actions (if proven) are illegal, but they raise questions in the public's mind about the role of stock options and about the way organizations treat stock options from an accounting perspective. Most organizations have not treated stock options as liabilities, even though, when exercised, they are exactly that. There is concern that by not carrying stock options as liabilities, the managers are overstating the value of the company, which, of course, can help raise the stock price. Finally, when stock prices fall below the option price they become essentially worthless. Aside from stock option plans, other kinds of executive compensation are also used by some companies. Among the more popular are such perquisites as memberships in private clubs, access to company recreational facilities, and similar considerations. Some organizations also make available to senior executives low- or no-interest loans. These are often given to new executives whom the company is hiring from other companies and serve as an incentive for the person to leave his or her current job to join a new organization. HP's Meg Whitman received $1.5 million in other compensation during 2014 for things such as perks, tax reimbursement, and payments for life insurance; she also received an outright award of $4.4 million in stock.

Cognitive Dissonance

Caused when an individual has conflicting attitudes Say, for example, that a person who has vowed never to work for a big, imper-sonal corporation intends instead to open her own business and be her own boss. Unfortunately, a series of financial setbacks leads her to have no choice but to take a job with a large company and work for someone else. Thus cognitive dissonance occurs: The affective and cognitive components of the person's attitude conflict with intended behavior. To reduce cognitive dissonance, which is usually an uncomfortable experience for most people, she might tell herself that the situation is only temporary and that she can go back out on her own in the near future. Or she might revise her cognitions and decide that working for a large company is more pleasant than she had expected.

Personal Traits and Creativity

Certain personal traits have also been linked to creativity in individuals. The traits shared by most creative people are openness, an attraction to complexity, high levels of energy, independence and autonomy, strong self-confidence, and a strong belief that one is, in fact, creative. People who possess these traits are more likely to be creative than are those who do not have them.

causes of conflict

Conflict may arise in both interpersonal and intergroup relationships. Occasionally, conflict between individuals and groups may be caused by particular organizational strategies and practices. A third arena for conflict is between an organization and its environment.

Creativity in organizations

Creativity : The ability of an individual to generate new ideas or to conceive of new perspectives on existing ideas

role structures

Each individual in a team has a part, or role, to play in helping the group reach its goals. Role: The parts individuals play in groups in helping the group reach its goals Some people are leaders, some do the work, some interface with other teams, and so on. Indeed, a person may take on a task specialist role (concentrating on getting the group's task accomplished) or a socioemotional role (providing social and emotional support to others on the team). A few people, usually the leaders, perform both roles; a few others may do neither. The group's role structure is : the set of defined roles and interrelationships among those roles that the group or team members define and accept. Each of us belongs to many groups and therefore plays multiple roles—in work groups, classes, families, and social organizations. Role structures emerge as a result of role episodes, as shown in Figure 18.3. 1. The process begins with the expected role—what other members of the team expect the individual to do. 2. The expected role gets translated into the sent role—the messages and cues that team members use to communicate the expected role to the individual. 3. The perceived role is what the individual perceives the sent role to mean. 4. Finally, the enacted role is what the individual actually does in the role. The enacted role, in turn, influences future expectations of the team. Of course, role episodes seldom unfold this easily. When major disruptions occur, individuals may experience role ambiguity, conflict, or overload.

generic approaches to leadership

Early approaches to the study of leadership adopted what might be called a "universal" or "generic" perspective. Specifically, they assumed that there was one set of answers to the leadership puzzle. One generic approach focused on leadership traits, and the other looked at leadership behavior

leadership and management

From these definitions, it should be clear that leadership and management are related, but they are not the same. A person can be a manager, a leader, both, or neither. Some of the basic distinctions between the two are summarized in Table 16.1. At the left side of the table are four elements that differentiate leadership from management. The two columns show how each element differs when considered from a management and from a leadership point of view. For example, when executing plans, managers focus on monitoring results, comparing them with goals, and correcting deviations. In contrast, the leader focuses on energizing people to overcome bureaucratic hurdles to reach goals. Organizations need both management and leadership if they are to be effective. Leadership is necessary to create change, and management is necessary to achieve orderly results. Management in conjunction with leadership can produce orderly change, and leadership in conjunction with management can keep the organization properly aligned with its environment. Indeed, perhaps part of the reason why executive compensation has soared in recent years is the belief that management and leadership skills reflect a critical but rare combination that can lead to organizational success.

groups and teams in organizations

Groups are a ubiquitous part of organizational life. They are the basis for much of the work that gets done, and they evolve both inside and outside the normal structural boundaries of the organization. group: as two or more people who interact regularly to accomplish a common purpose or goal. The purpose of a group or team may range from preparing a new advertising campaign, to informally sharing information, to making important decisions, to fulfilling social needs.

managing stress

Given the potential consequences of stress, it follows that both people and organizations should be concerned about how to limit its more damaging effects. Numerous ideas and approaches have been developed to help manage stress. Some are strategies for individuals; others are strategies for organizations. Individuals: 1. Exercise - People who exercise regularly feel less tension and stress, are more self-confident, and feel more optimistic. Their better physi-cal condition also makes them less susceptible to many common illnesses. People who do not exercise regularly, on the other hand, tend to feel more stress and are more likely to be depressed. They are also more likely to have heart attacks. And, because of their physical condition, they are more likely to contract illnesses. 2. Relaxation - Relaxation allows individuals to adapt to, and therefore better deal with, their stress. Relaxation comes in many forms, such as taking regular vacations and engaging in non-work activities on the weekends. A recent study found that people's attitudes toward a variety of workplace characteristics improved significantly following a weekend when they were able to fully disengage from their work. People can also learn to relax while on the job. For example, some experts recommend that people take regular rest breaks during their normal workday. Google has gone so far as to offer "nap pods" at work where employees can take brief naps during the workday 3. time management to control stress - The idea behind time management is that many daily pressures can be reduced or eliminated if people do a better job of managing time. One approach to time management is to make a list every morning of the things to be done that day. The items on the list are then grouped into three categories: critical activities that must be performed, important activities that should be performed, and optional or trivial things that can be delegated or postponed. The individual performs the items on the list in their order of importance. 4. support groups - A support group can be as simple as a group of family members or friends to enjoy leisure time with. Going out after work with a couple of coworkers to a basketball game or a movie, for example, can help relieve stress built up during the day. Family and friends can help people cope with stress on an ongoing basis and during times of crisis. For example, an employee who has just learned that she did not get the promotion she has been working toward for months may find it help-ful to have a good friend to lean on, talk to, or yell at. People also may make use of more elaborate and formal support groups. Community centers or churches, for example, may sponsor support groups for people who have recently gone through a divorce, the death of a loved one, or some other tragedy. Organizations are also beginning to realize that they should be involved in helping employees cope with stress because 1. the business is at least partially responsible for stress, it should also help relieve it 2. stress related insurance claims by employees can cost the organization considerable sums of money 3. workers experiencing lower levels of detrimental stress will be able to function more effectively. A wellness stress program is a special part of the organization specifically created to help deal with stress. Organizations have adopted stress-management programs, health promotion programs, and other kinds of programs for this purpose. True wellness programs are ongoing activities that have a number of different components. They commonly include exercise-related activities as well as classroom instruction programs dealing with smoking cessation, weight reduction, and general stress management. Some companies are developing their own programs or using existing programs of this type. - gym at its corporate headquarters. - negotiate discounted health club membership rates with local establishments. - Organization-based fitness programs facilitate employee exercise, a very positive consideration, but such programs are also quite costly. - offering their employees periodic sabbaticals—extended breaks from work that presumably allow people to get revitalized and reenergized.

using power

How does a manager or leader use power? Several methods have been identified: One method is the legitimate request which is based on legitimate power. The manager requests that the subordinate comply because the subordinate recognizes that the organization has given the manager the right to make the request. Most day-to-day interactions between manager and subordinate are of this type. Another use of power is instrumental compliance, which is based on the reinforcement theory of motivation. In this form of exchange, a subordinate complies to get the reward the manager controls. Suppose that a manager asks a subordinate to do something outside the range of the subordinate's normal duties, such as working extra hours on the weekend, terminating a relationship with a longstanding buyer, or delivering bad news. The subordinate complies and, as a direct result, reaps praise and a bonus from the manager. The next time the subordinate is asked to perform a similar activity, that subordinate will recognize that compliance will be instrumental in her getting more rewards. Hence the basis of instrumental compliance is clarifying important performance-reward contingencies. A manager is using coercion when she suggests or implies that the subordinate will be punished, fired, or reprimanded if he does not do something. Rational persuasion occurs when the manager can convince the subordinate that compliance is in the subordinate's best interests. For example, a manager might argue that the subordinate should accept a transfer because it would be good for the subordinate's career. In some ways, rational persuasion is like reward power, except that the manager does not really control the reward. Still another way a manager can use power is through personal identification. A manager who recognizes that she has referent power over a subordinate can shape the behavior of that subordinate by engaging in desired behaviors: The manager consciously becomes a model for the subordinate and exploits personal identification. Sometimes a manager can induce a subordinate to do something consistent with a set of higher ideals or values through inspirational appeal. For example, a plea for loyalty represents an inspirational appeal. Referent power plays a role in determining the extent to which an inspirational appeal is successful because its effectiveness depends at least in part on the persuasive abilities of the leader. A dubious method of using power is through information distortion. The manager withholds or distorts information to influence subordinates' behavior. For example, if a manager has agreed to allow everyone to participate in choosing a new group member but subsequently finds one person whom she really prefers, she might withhold some of the credentials of other qualified applicants so that the desired member is selected. This use of power is dangerous. It may be unethical, and if subordinates find out that the manager has deliberately misled them, they will lose their confidence and trust in that manager's leadership.

Stages of Group and Team Development

Imagine the differences between a collection of five people who have just been brought together to form a group or team and a group or team that has functioned like a well-oiled machine for years. Members of a new group or team are unfamiliar with how they will function together and are tentative in their interactions. In a group or team with considerable experience, members are familiar with one another's strengths and weaknesses and are more secure in their roles in the group. The former group or team is generally con-sidered to be immature; the latter, mature. To progress from the immature phase to the mature phase, a group or team must go through certain stages of development, as shown in Figure 18.2. The first stage of development is called forming. The members of the group or team get acquainted and begin to test which interpersonal behaviors are acceptable and which are unacceptable to the other members. The members are very dependent on others at this point to provide cues about what is acceptable. The basic ground rules for the group or team are established, and a tentative group structure may emerge. At adidas, for example, a merchandising team was created to handle its sportswear business. The team leader and his members were barely acquainted and had to spend a few weeks getting to know one another. The second stage of development, often slow to emerge, is storming. During this stage, there may be a general lack of unity and uneven interaction patterns. At the same time, some members of the group or team may begin to exert themselves to become recognized as the group leader or at least to play a major role in shaping the group's agenda. In adidas's team, some members advocated a rapid expansion into the marketplace; others argued for a slower entry. The first faction won, with disastrous results. Because of the rush, product quality was poor and deliveries were late. As a result, the team leader was fired and a new manager placed in charge The third stage of development, called norming, usually begins with a burst of activity. During this stage, each person begins to recognize and accept her or his role and to understand the roles of others. Members also begin to accept one another and to develop a sense of unity. There may also be temporary regressions to the previous stage. For example, the group or team might begin to accept one particular member as the leader. If this person later violates important norms or otherwise jeopardizes his or her claim to leadership, conflict might reemerge as the group rejects this leader and searches for another. Adidas's new leader transferred several people away from the team and set up a new system and structure for managing things. The remaining employees accepted his new approach and settled into doing their jobs. Performing, the final stage of group or team development, is also slow to develop. The team really begins to focus on the problem at hand. The members enact the roles they have accepted, interaction occurs, and the efforts of the group are directed toward goal attainment. The basic structure of the group or team is no longer an issue but has become a mechanism for accomplishing the purpose of the group. Adidas's sportswear business is now growing consistently and has successfully avoided the problems that plagued it at first.

Consequences of Cohesiveness

In general, as teams become more cohesive, their members tend to interact more often, conform more to norms, and become more satisfied with the team. Cohesiveness may also influence team performance. However, performance is also influenced by the team's performance norms. Figure 18.4 shows how cohesiveness and performance norms interact to help shape team performance. When both cohesiveness and performance norms are high, high performance should result because the team wants to perform at a high level (norms) and its members are working together toward that end (cohesiveness). When norms are high and cohesiveness is low, performance will be moderate. Although the team wants to perform at a high level, its members are not necessarily working well together. When norms are low, performance will be low, regardless of whether group cohesiveness is high or low. The least desirable situation occurs when low performance norms are combined with high cohesiveness. In this case, all team members embrace the standard of restricting performance (owing to the low performance norm), and the group is united in its efforts to maintain that standard (owing to the high cohesiveness). If cohesiveness were low, the manager might be able to raise performance norms by establishing high goals and rewarding goal attainment or by bringing in new group members who are high performers. But a highly cohesive group is likely to resist these interventions.

Types of Groups and Teams

In general, three basic kinds of groups are found in organizations—functional groups, informal or interest groups, and task groups and teams.

norm variation

In some cases, there can also be norm variation within a group or team. A common norm is that the least senior member of a group is expected to perform unpleasant or trivial tasks for the rest of the group. These tasks might be to wait on customers who are known to be small tippers (in a restaurant), to deal with complaining customers (in a department store), or to handle the low-commission line of merchandise (in a sales department). Another example is when certain individuals, especially informal leaders, may violate some norms. If the team is going to meet at 8:00 am, anyone arriving late will be chastised for holding things up. Occasionally, however, the informal leader may arrive a few minutes late. As long as this does not happen too often, the group probably will not do anything about it.

legitimate power

Power granted through the organizational hierarchy; the power defined by the organization to be accorded to people occupying particular positions A manager can assign tasks to a subordinate, and a subordinate who refuses to do them can be reprimanded or even fired. Such outcomes stem from the manager's legitimate power as defined and vested in her or him by the organization. Legitimate power, then, is authority. All managers have legitimate power over their subordinates. The mere possession of legitimate power, however, does not by itself make someone a leader. Some subordinates follow only orders that are strictly within the letter of organizational rules and policies. If asked to do something not in their job descriptions, they refuse or do a poor job. The manager of such employees is exercising authority but not leadership.

leadership and power

Power: is the ability to affect the behavior of others. It is also important to note that one can have power without actually using it. For example, a football coach has the power to bench a player who is not performing up to par. The coach seldom has to use this power because players recognize that the power exists and work hard to keep their starting positions. In organizational settings, there are usually five kinds of power: legitimate, reward, coercive, referent, and expert power

Vroom's Decision Tree Approach

Predicts what kinds of situations call for different degrees of group participation The earliest version of this model was proposed by Victor Vroom and Philip Yetton and later revised and expanded by Vroom and Arthur Jago. Most recently, Vroom has developed yet another refinement of the original model.29 Like the path-goal theory, this approach attempts to prescribe a leadership style appropriate to a given situation. It also assumes that the same leader may display different leadership styles. But Vroom's approach concerns itself with only a single aspect of leader behavior: subordinate participation in decision making.

types of teams

Problem-solving teams : Most popular type of team; comprises knowledge workers who gather to solve a specific problem and then disband management team : Consists mainly of managers from various functions like sales and production; coordinates work among other teams work team : An increasingly popular type of team; work teams are responsible for the daily work of the organization; when empowered, they are self-managed teams virtual team :A newer type of work team whose members interact in a virtual arena; members enter and leave the network as needed and may take turns serving as leader quality circle : Declining in popularity, quality circles, comprising workers and super-visors, meet intermittently to discuss workplace problems

Michigan Studies

Researchers at the University of Michigan, led by Rensis Likert, began studying leadership in the late 1940s. Based on extensive interviews with both leaders (managers) and followers (subordinates), this research identified two basic forms of leader behavior: job centered and employee centered. Their primary concern is the welfare of subordinates job-centered leader - The behavior of leaders who pay close attention to the job and work procedures involved with that job employee-centered leader behavior The behavior of leaders who develop cohesive work groups and ensure employee satisfaction The two styles of leader behavior were presumed to be at the ends of a single continuum. Although this suggests that leaders may be extremely job centered, extremely employee centered, or somewhere in between, Likert studied only the two end styles for contrast. He argued that employee-centered leader behavior generally tends to be more effective. We should also note the similarities between Likert's leadership research and his Systems 1 through 4 organization designs. Job-centered leader behavior is consistent with the System 1 design (rigid and bureaucratic), whereas employee-centered leader behavior is consistent with the System 4 design (organic and flexible). When Likert advocates moving organizations from System 1 to System 4, he is also advocating a transition from job-centered to employee-centered leader behavior

common political behaviors

Research has identified four basic forms of political behavior widely practiced in organizations. One form is inducement, which occurs when a manager offers to give something to someone else in return for that person's support. For example, a product manager might suggest to another product manager that she will put in a good word with his boss if he supports a new marketing plan that she has developed. By most accounts, former WorldCom CEO Bernard Ebbers made frequent use of this tactic to retain his leadership position in the company. For example, he allowed board members to use the corporate jet whenever they wanted and invested heavily in their pet projects. A second tactic is persuasion, which relies on both emotion and logic. An operations manager wanting to construct a new plant on a certain site might persuade others to support his goal on grounds that are objective and logical (it's less expensive; taxes are lower) as well as subjective and personal. Ebbers also used this approach. For instance, when one board member tried to remove him from his position, he worked behind the scenes to persuade the majority of board members to allow him to stay on. A third political behavior involves the creation of an obligation. For example, one manager might support a recommendation made by another manager for a new advertising campaign. Although he might really have no opinion on the new campaign, he might think that by going along, he is incurring a debt from the other manager and will be able to "call in" that debt when he wants to get something done and needs additional support. Ebbers loaned WorldCom board members money, for example, but then forgave the loans in exchange for their continued support. Coercion is the use of force to get one's way. For example, a manager may threaten to withhold support, rewards, or other resources as a way to influence someone else. This, too, was a common tactic used by Ebbers. He reportedly belittled any board member who dared question him, for example. In the words of one former director, "Ebbers treated you like a prince—as long as you never forgot who was king.

Strategic Leadership

Strategic leadership is a new concept that explicitly relates leadership to the role of top management. We define strategic leadership as the ability to understand the complexities of both the organization and its environment and to lead change in the organization in order to achieve and maintain a superior alignment between the organization and its environment. This definition reflects an integration of the leadership concepts covered in this chapter with our discussion of strategic management in Chapter 7. To be effective as a strategic leader, a manager needs to have a thorough and complete understanding of the organization—its history, its culture, its strengths, and its weaknesses. In addition, the leader needs a firm grasp of the organization's environment. This understanding must encompass current conditions and circumstances as well as significant trends and issues on the horizon. The strategic leader also needs to recognize how the firm is cur-rently aligned with its environment—where it relates effectively and where it relates less effectively with that environment. Finally, looking at environmental trends and issues, the strategic leader works to improve both the current alignment and the future alignment.

Maslow's Hierarchy of Needs

Suggests that people must satisfy five groups of needs in order—physiological, security, belongingness, esteem, and self-actualization At the bottom of the hierarchy are the physiological needs—things like food, sex, and air, which represent basic issues of survival and biological function. In organizations, these needs are generally satisfied by adequate wages and the work environment itself, which provides restrooms, adequate lighting, comfortable temperatures, and ventilation. -base salary vs food Next are the security needs for a secure physical and emotional environment. Examples include the desire for housing and clothing and the need to be free from worry about money and job security. These needs can be satisfied in the workplace by job continuity (no layoffs), a grievance system (to protect against arbitrary supervisory actions), and an adequate insurance and retirement benefit package (for security against illness and provision of income in later life). Even today, however, depressed industries and economic decline can put people out of work and restore the primacy of security needs. -pension plan vs stability Belongingness needs relate to social processes. They include the need for love and affection and the need to be accepted by one's peers. These needs are satisfied for most people by family and community relationships outside of work and by friendships on the job. A manager can help satisfy these needs by allowing social interaction and by making employees feel like part of a team or work group. -friends at work vs friendship Esteem needs actually comprise two differ-ent sets of needs: the need for a positive self-image and self-respect, and the need for recognition and respect from others. A manager can help address these needs by providing a variety of extrinsic symbols of accomplish-ment, such as job titles, nice offices, and simi-lar rewards, as appropriate. At a more intrinsic level, the manager can provide challenging job assignments and opportunities for the employee to feel a sense of accomplishment. -job title vs status At the top of the hierarchy are the self-actualization needs. These involve realizing one's potential for continued growth and individual development. The self-actualization needs are perhaps the most difficult for a manager to address. In fact, it can be argued that these needs must be met entirely from within the individual. But a manager can help by promoting a culture wherein self-actualization is possible. For instance, a manager could give employees a chance to participate in making decisions about their work and the opportunity to learn new things. -challenging job vs achievement Maslow suggests that the five need categories constitute a hierarchy. A person is motivated first and foremost to satisfy physiological needs. As long as these remain unsatisfied, the person is motivated to fulfill only them. When satisfaction of physiological needs is achieved, they cease to act as primary motivational factors, and the person moves "up" the hierarchy and becomes concerned with security needs. This process continues until the person reaches the self-actualization level. Maslow's concept of the needs hierarchy has a certain intuitive logic and has been accepted by many managers. But research has revealed certain shortcomings and defects in the the-ory. Some research has found that five levels of need are not always present and that the order of the levels is not always the same as postulated by Maslow. In addition, people from different cultures are likely to have different need categories and hierarchies.

Charismatic Leadership

The concept of charismatic leadership, like trait theories, assumes that charisma is an individual characteristic of the leader. Charisma is a form of interpersonal attraction that inspires support and acceptance. All else being equal, then, someone with charisma is more likely to be able to influence others than is someone without charisma. For example, a highly charismatic supervisor will be more successful in influencing subordinate behavior than a supervisor who lacks charisma. Thus influence is again a fundamental element of this perspective. Robert House first proposed a theory of charismatic leadership, based on research findings from a variety of social science disciplines. His theory suggests that charismatic leaders are likely to have a lot of self-confidence, a firm conviction in their beliefs and ideals, and a strong need to influence people. They also tend to communicate high expectations about follower performance and express confidence in followers. Donald Trump is an excellent example of a charismatic leader. Even though he has made his share of mistakes and generally is perceived as only an "average" manager, many people view him as larger than life. There are three elements of charismatic leadership in organizations that most experts acknowledge today. First, the leader needs to be able to envision the future, set high expectations, and model behaviors consistent with meeting those expectations. Next, the charismatic leader must be able to energize others through a demonstration of personal excitement, personal confidence, and patterns of success. And, finally, the charismatic leader enables others by supporting them, empathizing with them, and expressing confidence in them. Charismatic leadership ideas are quite popular among managers today and are the subject of numerous books and articles. Unfortunately, few studies have tried to specifically test the meaning and impact of charismatic leadership. There are also lingering ethical issues about charismatic leadership, however, that trouble some people. For instance, President Bill Clinton was a charismatic leader. But some of his critics argued that this very charisma caused his supporters to overlook his flaws and to minimize some of his indiscretions. In contrast, President George W. Bush was not particularly charismatic, and this may have enabled some critics to magnify his shortcomings.

leadership traits

The first organized approach to studying leadership analyzed the personal, psychological, and physical traits of strong leaders. The trait approach assumed that some basic trait or set of traits existed that differentiated leaders from nonleaders. If those traits could be defined, potential leaders could be identified. Researchers thought that leadership traits might include intelligence, assertiveness, above-average height, good vocabulary, attractiveness, self-confidence, and similar attributes. During the first half of the twentieth century, hundreds of studies were conducted in an attempt to identify important leadership traits. For the most part, the results of the studies were disappointing. For every set of leaders who possessed a common trait, a long list of exceptions was also found, and the list of suggested traits soon grew so long that it had little practical value. Alternative explanations usually existed even for relationships between traits and leadership that initially appeared valid. For example, it was observed that many leaders have good communication skills and are assertive. Rather than those traits being the cause of leadership, however, successful leaders may begin to display those traits after they have achieved a leadership position. Although most researchers gave up trying to identify traits as predictors of leadership ability, many people still explicitly or implicitly adopt a trait orientation. For example, politicians are all too often elected on the basis of personal appearance, speaking ability, or an aura of self-confidence. In addition, traits like honesty and integrity may very well be fundamental leadership traits that serve an important purpose. Intelligence also seems to play a meaningful role in leadership.

group goals

The goals of a group may also motivate people to join. The Sierra Club, which is dedicated to environmental conservation, is a good example of this kind of interest group. Various fundraising groups are another illustration. Members may or may not be personally attracted to the other fundraisers, and they probably do not enjoy the activity of knocking on doors asking for money, but they join the group because they subscribe to its goal. Workers join unions like the United Auto Workers because they support its goals.

Team and group incentive rewards

The merit compensation and incentive compensation systems described in the preceding sec-tions deal primarily with performance-based reward arrangements for individuals. There also exists a different set of performance-based reward programs that are targeted for teams and groups. These programs are particularly important for managers to understand today, given the widespread trends toward team- and group-based methods of work and organization

leader behavior

The most fully developed version of path-goal theory identifies four kinds of leader behavior. 1. Directive leader behavior lets subordinates know what is expected of them, gives guidance and direction, and schedules work. 2. Supportive leader behavior is being friendly and approachable, showing concern for subordinates' welfare, and treating team members as equals. 3. Participative leader behavior includes consulting with subordinates, soliciting suggestions, and allowing participation in decision making. 4. Achievement-oriented leader behavior means setting challenging goals, expecting subordinates to perform at high levels, encouraging subordinates, and showing confidence in subordinates' abilities. In contrast to Fiedler's theory, path-goal theory assumes that leaders can change their style or behavior to meet the demands of a particular situation. For example, when encountering a new group of subordinates and a new project, the leader may be directive in establishing work procedures and in outlining what needs to be done. Next, the leader may adopt supportive behavior to foster group cohesiveness and a positive climate. As the group becomes familiar with the task and as new problems are encountered, the leader may exhibit participative behavior to enhance group members' motivation. Finally, achievement- oriented behavior may be used to encourage continued high performance.

norm generalization

The norms of one group cannot always be generalized to another group. Some academic departments, for example, have a norm that suggests that faculty members dress up on teaching days. People who fail to observe this norm are "punished" by sarcastic remarks or even formal reprimands. In other departments, the norm may be casual clothes, and the person unfortunate enough to wear dress clothes may be punished just as vehemently. Even within the same work area, similar groups or teams can develop different norms. One team may strive always to produce above its assigned quota; another may maintain productivity just below its quota. The norm of one team may be to be friendly and cordial to its supervisor; that of another team may be to remain aloof and distant. Some differences are due primarily to the composition of the teams.

basic premises

Vroom's decision tree approach assumes that the degree to which subordinates should be encouraged to participate in decision making depends on the characteristics of the situation. In other words, no one decision-making process is best for all situations. After evaluating a variety of problem attributes (characteristics of the problem or decision), the leader determines an appropriate decision style that specifies the amount of subordinate participation Vroom's current formulation suggests that managers use one of two different decision trees. To do so, the manager first assesses the situation in terms of several factors. This assessment involves determining whether the given factor is high or low for the decision that is to be made. For instance, the first factor is decision significance. If the decision is extremely important and may have a major impact on the organization (such as choosing a location for a new plant), its significance is high. But if the decision is routine and its consequences are not terribly important (selecting a color for the firm's softball team uniforms), its significance is low. This assessment guides the manager through the paths of the decision tree to a recommended course of action. One decision tree is to be used when the manager is interested primarily in making the decision as quickly as possible; the other is to be used when time is less critical and the manager is interested in helping subordinates to improve and develop their own decision-making skills.The two decision trees are shown in Figures 16.5 and 16.6. The problem attributes (situational factors) are arranged along the top of the decision tree. To use the model, the decision maker starts at the left side of the diagram and assesses the first problem attribute (decision significance). The answer determines the path to the second node on the decision time driven decision tree and development driven decision tree

Leadership Grid

Yet another behavioral approach to leadership is the Leadership Grid (formerly called the Managerial Grid). The Leadership Grid provides a means for evaluating leadership styles and then training managers to move toward an ideal style of behavior. The Leadership Grid is shown in Figure 16.1. The horizontal axis represents concern for production (similar to job-centered and initiating-structure behaviors): The part of the Leadership Grid that deals with the job and task aspects of leader behavior and the vertical axis represents concern for people (similar to employee-centered and consideration behaviors) : The part of the Leadership Grid that deals with the human aspects of leader behavior Note the five extremes of managerial behavior: manager (impoverished management), Exertion of minimum effort to get required work done is appropriate to sustain organization membership. manager (authority-compliance), who is highly concerned about production but exhibits little concern for people... Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. manager (country club management), who has exactly opposite concerns from the manager; Thoughtful attention to the needs of people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo.. manager (middle-of-the-road management), who maintains adequate concern for both people and production; Adequate organization performance ispossible through balancing the necessityto get out work with maintaining moraleof people at a satisfactory level. (team management), who exhibits maximum concern for both people and production. Work accomplishment is from committed people; interdependence through a "common stake" in organization purpose leads to relationships of trust and respect. According to this approach, the ideal style of managerial behavior is 9,9. There is a six-phase program to assist managers in achieving this style of behavior. A.G. Edwards, Westing-house, the FAA, Equicor, and other companies have used the Leadership Grid and reported that it was reasonably successful. However, there is little published scientific evidence regarding its true effectiveness. The leader-behavior theories have played an important role in the development of contemporary thinking about leadership. In particular, they urge us not to be preoccupied with what leaders are (the trait approach) but to concentrate on what leaders do (their behaviors). Unfortunately, these theories also make universal generic prescriptions about what constitutes effective leadership. When we are dealing with complex social systems composed of complex individuals, however, few, if any, relationships are consistently predictable, and certainly no formulas for success are infallible. Yet the behavior theorists tried to identify consistent relationships between leader behaviors and employee responses in the hope of finding a dependable prescription for effective leadership. As we might expect, they often failed. Other approaches to understanding leadership were therefore needed. The catalyst for these new approaches was the realization that although interpersonal and task-oriented dimensions might be useful for describing the behavior of leaders, they were not useful for predicting or prescribing it. The next step in the evolution of leadership theory was the creation of situa-tional models.

Types of Workplace Behavior

workplace behavior: A pattern of action by the members of an organization that directly or indirectly influences organizational effectiveness Important workplace behaviors include performance and productivity, absenteeism and turnover, and organizational citizenship. Unfortunately, a variety of dysfunctional behaviors can also occur in organizational settings.

resolving and eliminating conflict

♣ Avoidance Despite everyone's best intentions, conflict sometimes flares up. If it is disrupting the work-place, creating too much hostility and tension, or otherwise harming the organization, attempts must be made to resolve it.40 Some managers who are uncomfortable dealing with conflict choose to avoid the conflict and hope it will go away. Avoidance may sometimes be effective in the short run for some kinds of interpersonal disagreements, but it does little to resolve long-run or chronic conflicts. Even more unadvisable, though, is "smoothing"—minimizing the conflict and telling everyone that things will "get better." Often the conflict only worsens as people continue to brood over it. ♣ Compromise Compromise is striking a middle-range position between two extremes. This approach can work if it is used with care, but in most compromise situations, someone wins and someone loses. Budget problems are one of the few areas amenable to compromise because of their objective nature. Assume, for example, that additional resources are not available to the manager mentioned earlier. She has $180,000 to divide, and each of two groups claims to need $100,000. If the manager believes that both projects warrant funding, she can allocate $90,000 to each. The fact that the two groups have at least been treated equally may minimize the potential conflict. ♣ Confront and negotiate The confrontational approach to conflict resolution—also called interpersonal problem solving— consists of bringing the parties together to confront the conflict. The parties discuss the nature of their conflict and try to reach an agreement or a solution. Confrontation requires a reasonable degree of maturity on the part of the participants, and the manager must structure the situation carefully. If handled well, this approach can be an effective means of resolving conflict. In recent years, many organizations have experimented with a technique called alternative dispute resolution, using a team of employees to arbitrate conflict in this way. Negotiation, a closely related method, is discussed in our final section. Regardless of the approach, organizations and their managers should realize that conflict must be addressed if it is to serve constructive purposes and be prevented from bringing about destructive consequences. Conflict is inevitable in organizations, but its effects can be constrained with proper attention. For example, Union Carbide sent 200 of its managers to a three-day workshop on conflict management. The managers engaged in a variety of exercises and discussions to learn with whom they were most likely to come in conflict and how they should try to resolve it. As a result, managers at the firm later reported that hostility and resentment in the organization had been greatly diminished and that people in the firm reported more pleasant working relationships.

Reinforcement perspectives on motivation

A third element of the motivational process addresses why some behaviors are maintained over time and why other behaviors change. As we have seen, content perspectives deal with needs, whereas process perspectives explain why people choose various behaviors to satisfy needs and how they evaluate the equity of the rewards they get for those behaviors. Reinforcement perspectives explain the role of those rewards as they cause behavior to change or remain the same over time. Specifically, reinforcement theory : Approach to motivation that argues that behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated

telecommuting

Allowing employees to spend part of their time working offsite, usually at home By using e-mail, the Internet, and other forms of information technology, many employees can maintain close contact with their organization and still get just as much (or even more) work done at home as they would if they were in the office. The increased power and sophistication of modern communication technology is making telecommuting easier and easier. One recent study found that nearly half of the U.S. workforce (64 million workers) are in jobs that allow for at least partial telecommuting. Nearly half of AT&T's employees have received mobile and remote access technologies that provide them with the flexibility to work from various locations. And 40 percent of IBM's employees currently telecommute. (In the case of IBM, not only are employees more satisfied with the arrangement but the firm has saved close to $2.9 billion in office space needs.)

Variable Work Schedules

Although there are many exceptions, of course, the traditional work schedule starts at 8:00 or 9:00 in the morning and ends at 5:00 in the evening, five days a week (and, of course, many managers work additional hours outside of these times). Unfortunately, this schedule makes it difficult to attend to routine personal business—going to the bank, seeing a doctor or dentist for a routine checkup, having a parent-teacher conference, getting an automobile serviced, and so forth. At a surface level, then, employees locked into this sort of arrangement may find it necessary to take a sick day or a vacation day to handle these activities. At a more unconscious level, some people may also feel so powerless and constrained by their job schedule as to feel increased resentment and frustration. To help counter these problems, some businesses have adopted a compressed work schedule : working a full 40-hour week in fewer than the traditional five days. One approach involves working 10 hours a day for four days, leaving an extra day off. Another alternative is for employees to work slightly less than 10 hours a day, but to complete the 40 hours by lunchtime on Friday. And a few firms have tried having employees work 12 hours a day for three days, followed by four days off. One problem with this schedule is that when employees put in too much time in a single day, they tend to get tired and perform at a lower level later in the day. A schedule that some organizations today are beginning to use is what they call a "nine-eighty" schedule. Under this arrangement, employees work a traditional schedule one week and a compressed schedule the next, getting every other Friday off. In other words, they work 80 hours (the equivalent of two weeks of full-time work) in nine days. By alternating the regular and compressed schedules across half of its workforce, the organization can be fully staffed at all times, while still giving employees two full days off each month.

areas of participation

At one level, employees can participate in addressing questions and making decisions about their own jobs. Instead of just telling them how to do their jobs, for example, managers can ask employees to make their own decisions about how to do them. Based on their own expertise and experience with their tasks, workers might be able to improve their own productivity. In many situations, they might also be well qualified to make decisions about what materials to use, what tools to use, and so forth. It might also be helpful to let workers make decisions about administrative matters, such as work schedules. If jobs are relatively independent of one another, employees might decide when to change shifts, take breaks, go to lunch, and so forth. A work group or team might also be able to schedule vacations and days off for all of its members. Furthermore, employees are getting increasing opportunities to participate in broader issues of product quality. Such participation has become a hallmark of successful Japanese and other international firms, and many U.S. companies have followed suit.

Perception and Attribution

Attribution: The process of observing behavior and attributing causes to it The behavior that is observed may be our own or that of others. For example, suppose someone realizes one day that she is working fewer hours than before, that she talks less about her work, and that she calls in sick more often. She might conclude from this that she must have become disenchanted with her job and subsequently decide to quit. Thus she observed her own behavior, attributed a cause to it, and developed what she thought was a consistent response. More common is attributing cause to the behavior of others. For example, if the manager of the person just described has seen the same behavior, he might form exactly the same attribution. On the other hand, he might instead decide that she has a serious illness, that he is driving her too hard, that she is experiencing too much stress, that she has a drug problem, or that she is having family problems.

Attitudes and Individual Behavior

Attitudes: Complexes of beliefs and feelings that people have about specific ideas, situations, or other people Attitudes are important because they are the mechanism through which most peo-ple express their feelings. An employee's statement that he feels underpaid by the organization reflects his feelings about his pay. Similarly, when a manager says that she likes the new advertising campaign, she is expressing her feelings about the organization's marketing efforts. Attitudes have three components. 1. The affective component of an attitude reflects feelings and emotions a person has toward a situation. 2. The cognitive component of an attitude is derived from knowledge one has about a situation. It is important to note that cognition is subject to individual perceptions (something we discuss more fully later). Thus one person might "know" that a certain political candidate is better than another, whereas someone else might "know" just the opposite. 3. Finally, the intentional component of an attitude reflects how one expects to behave toward or in the situation. To illustrate these three components, consider the case of a manager who places an order for some supplies for his organization from a new office supply firm. Suppose many of the items he orders are out of stock, others are overpriced, and still others arrive dam-aged. When he calls someone at the supply firm for assistance, he is treated rudely and gets disconnected before his claim is resolved. When asked how he feels about the new office supply firm, he might respond, "I don't like that company [affective component]. They are the worst office supply firm I've ever dealt with [cognitive component]. I'll never do business with them again [intentional component]." People try to maintain consistency among the three components of their attitudes as well as among all their attitudes. However, circumstances sometimes arise that lead to conflicts.

chapter 14

Basic elements of individual behavior in organizations

implications of the content perspectives

Managers should remember that Maslow's needs hierarchy, the ERG theory, the two-factor theory, and the needs for achievement, affiliation, and power all provide useful insights into factors that cause motivation. What they do not do is shed much light on the process of motivation. They do not explain why people might be motivated by one factor rather than by another at a given level or how people might go about trying to satisfy their different needs. These questions involve behaviors or actions, goals, and feelings of satisfaction—concepts that are addressed by various process perspectives on motivation.

Causes and Consequences of Stress

Stress is obviously not a simple phenomenon. Several different things can cause stress, as listed in Figure 14.5. Note that this list includes only work-related conditions. We should keep in mind that stress can also be the result of personal circumstances.

Locus of Control

The degree to which a person believes that his or her behavior has a direct impact on the consequences of that behavior -Some people, for example, believe that if they work hard, they will succeed. They also may believe that people who fail do so because they lack ability or motivation. People who believe that individuals are in control of their lives are said to have an internal locus of control. Other people think that fate, chance, luck, or other people's behavior determines what happens to them. For example, an employee who fails to get a promotion may attribute that failure to a politically motivated boss or just bad luck, rather than to her or his own lack of skills or poor performance record. Peo-ple who think that forces beyond their control dictate what happens to them are said to have an external locus of control.

The needs hierarchy approach

The needs hierarchy approach has been advanced by many theorists. Needs hierarchies assume that people have different needs that can be arranged in a hierarchy of importance. The two best known are Maslow's hierarchy of needs and the ERG theory.

Stereotyping

The process of categorizing or labeling people on the basis of a single attribute Common attributes on which people often stereotype are race, gender, and age. Of course, stereotypes along these lines are inaccurate and can be harmful. For example, suppose a manager forms the stereotype that women can perform only certain tasks and that men are best suited for other tasks. To the extent that this affects the manager's hiring practices, the manager is (1) costing the organization valuable talent for both sets of jobs, (2) violating federal law, and (3) behaving unethically. On the other hand, certain forms of stereotyping can be useful and efficient. Suppose, for example, that a manager believes that communication skills are important for a particular job and that speech communication majors tend to have exceptionally good communication skills. As a result, whenever he interviews candidates for jobs, he pays especially close attention to speech communication majors. To the extent that communication skills truly predict job performance and that majoring in speech communication does indeed provide those skills, this form of stereotyping can be beneficial.

flexible work schedules

Work schedule in which employees have some control over the hours they choose to work; also called flextime Flextime gives employees more personal control over the times they work. The workday is broken down into two categories: flexible time and core time. All employees must be at their work-stations during core time, but they can choose their own schedules during flexible time. Thus one employee may choose to start work early in the morning and leave in midafternoon, another to start in the late morning and work until late afternoon, and still another to start early in the morning, take a long lunch break, and work until late afternoon.

Causes of Stress

Work-related stressors fall into one of four categories—task, physical, role, and interpersonal demands. Task Demands: are associated with the task itself. Some occupations are inherently more stressful than others. Having to make fast decisions, decisions with less than complete information, or decisions that have relatively serious consequences are some of the things that can make some jobs stressful. The jobs of surgeon, airline pilot, and stockbroker are relatively more stressful than the jobs of general practitioner, baggage handler, and office receptionist. Although a general practitioner makes important decisions, he is also likely to have time to make a considered diagnosis and fully explore a number of different treatments. But during surgery, the surgeon must make decisions quickly while realizing that the wrong one may endanger her patient's life. Physical Demands: are stressors associated with the job setting. Working outdoors in extremely hot or cold temperatures, or even in an improperly heated or cooled office, can lead to stress. Likewise, jobs that have rotating work shifts make it difficult for people to have stable sleep patterns. A poorly designed office—one which, for example, makes it difficult for people to have privacy or promotes too little social interaction—can result in stress, as can poor lighting and inadequate work surfaces. Even more severe are actual threats to health. Examples include jobs like coal mining, poultry processing, and toxic waste han-dling. Similarly, some jobs carry risks associated with higher incident rates of violence, such as armed robberies. Examples include law enforcement officers, taxi drivers, and conve-nience store clerks. Role Demands: A role is a set of expected behaviors associated with a position in a group or organization. Stress can result from either role conflict or role ambiguity that people can experience in groups. For example, an employee who is feeling pressure from her boss to work longer hours or to travel more, while also being asked by her family for more time at home, will almost certainly experience stress as a result of role conflict. Similarly, a new employee experiencing role ambiguity because of poor orientation and training practices by the organization will also suffer from stress. Excessive meetings are also a potential source of stress. While job cuts and layoffs during the 2008-2009 recession focused attention on the stress experienced by those losing their jobs (and appropriately so), it's also the case that many of the managers imposing the layoffs experienced stress as well. Interpersonal Demands: are stressors associated with relationships that confront people in organizations. For example, group pressures regarding restriction of output and norm conformity can lead to stress. Leadership styles may also cause stress. An employee who feels a strong need to participate in decision making may feel stress if his boss refuses to allow such participation. And individuals with conflicting personalities may experience stress if required to work too closely together. For example, a person with an internal locus of control might be frustrated when working with someone who prefers to wait and just let things happen.

factors that reduce cohesiveness

1. group size cohesiveness tends to decline as a group increases in size. 2. disagreement on goals when members of a team disagree on what the goals of the group should be, cohe-siveness may decrease. For example, when some members believe the group should maximize output and others think output should be restricted, cohesiveness declines. 3. intergroup competition intragroup competition reduces cohesiveness. When members are competing among themselves, they focus more on their own actions and behaviors than on those of the group. 4. domination domination by one or more persons in the group or team may cause overall cohesiveness to decline. Other members may feel that they are not being given an opportunity to interact and contribute, and they may become less attracted to the group as a consequence. 5. unpleasant experiences unpleasant experiences that result from group membership may reduce cohesiveness. A sales group that comes in last in a sales contest, an athletic team that sustains a long losing streak, and a work group reprimanded for poor-quality work may all become less cohesive as a result of their unpleasant experiences.

substitutes for leadership

A concept that identifies situations in which leader behaviors are neutralized or replaced by characteristics of subordinates, the task, and the organization The concept of substitutes for leadership was developed because existing leadership models and theories do not account for situations in which leadership is not needed. They simply try to specify what kind of leader behavior is appropriate. The substitutes concept, however, identifies situations in which leader behaviors are neutralized or replaced by characteristics of the subordinate, the task, and the organization. For example, when a patient is delivered to a hospital emergency room, the professionals on duty do not wait to be told what to do by a leader. Nurses, doctors, and attendants all go into action without waiting for directive or supportive leader behavior from the emergency room supervisor. Characteristics of the subordinate that may serve to neutralize leader behavior include ability, experience, need for independence, professional orientation, and indifference toward organizational rewards. For example, employees with a high level of ability and experience may not need to be told what to do. Similarly, a subordinate's strong need for independence may render leader behavior ineffective. Task characteristics that may substitute for leadership include routineness, the availability of feedback, and intrinsic satisfaction. When the job is routine and simple, the subordinate may not need direction. When the task is challenging and intrinsically satisfying, the subordinate may not need or want social support from a leader. Organizational characteristics that may substitute for leadership include formalization, group cohesion, inflexibility, and a rigid reward structure. Leadership may not be necessary when policies and practices are formal and inflexible, for example. Similarly, a rigid reward system may rob the leader of reward power and thereby decrease the importance of the role. Preliminary research has provided support for the concept of substitutes for leadership.

role overload

A final consequence of a weak role structure is role overload - which occurs when expectations for the role exceed the person's capabilities to perform. 1. When a manager gives an employee several major assignments at once, while increasing the person's regular workload, the employee will probably experience role overload. 2. Role overload may also result when one takes on too many roles at one time. For example, a person trying to work extra hard at work, run for election to the school board, serve on a committee in church, coach Little League baseball, maintain an active exercise program, and be a contributing member to her or his family will probably encounter role overload. In a functional group or team, the manager can take steps to avoid role ambiguity, conflict, and overload. 1. Having clear and reasonable expectations and sending clear and straight-forward cues go a long way toward eliminating role ambiguity. 2. Consistent expectations that take into account the employee's other roles and personal value system may minimize role conflict. 3. Role overload can be avoided simply by recognizing the individual's capabilities and limits. In friendship and interest groups, role structures are likely to be less formal; hence, the possibility of role ambiguity, conflict, or overload may not be so great. However, if one or more of these problems does occur, they may be difficult to handle. Because roles in friendship and interest groups are less likely to be partially defined by a formal authority structure or written job descriptions, the person cannot turn to those sources to clarify a role.

instrumental benefits

A final reason why people join groups is that membership is sometimes seen as instrumental in providing other benefits to the individual. For example, it is fairly common for college students entering their senior year to join several professional clubs or associations because listing such memberships on a résumé is thought to enhance the chances of getting a good job. Similarly, a manager might join a certain racquet club not because she is attracted to its members (although she might be) and not because of the opportunity to play tennis (although she may enjoy it). The club's goals are not relevant, and her affiliation needs may be satisfied in other ways. However, she may feel that being a member of this club will lead to important and useful business contacts. The racquet club membership is instrumental in establishing those contacts. Membership in civic groups such as the Junior League and Rotary may be solicited for similar reasons.

Path-Goal Theory

A theory of leadership suggesting that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to those rewards associated most closely with Martin Evans and Robert House—is a direct extension of the expectancy theory of motivation Recall that the primary components of expectancy theory included the likelihood of attaining various outcomes and the value associated with those outcomes. The path-goal theory of leadership suggests that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to goal accomplishment and valued rewards—that is, the leader should clarify the paths to goal attainment.

LPC theory

A theory of leadership that suggests that the appropriate style of leadership varies with situational favorableness -developed by Fred Fiedler, was the first truly situational theory of leadership!!! As we will discuss later, LPC stands for least-preferred coworker. Beginning with a combined trait and behavioral approach, Fiedler identified two styles of leadership: task oriented (analogous to job-centered and initiating-structure behavior) and relationship oriented (similar to employee-centered and consideration behavior). He went beyond the earlier behavioral approaches by arguing that the style of behavior is a reflection of the leader's per-sonality and that most personalities fall into one of his two categories—task oriented or rela-tionship oriented by nature. Fiedler measures leadership style by means of a controversial questionnaire called the least-preferred coworker (LPC) measure. LPC measure : The measuring scale that asks leaders to describe the person with whom he or she is able to work least well. well—the LPC—by filling in a set of 16 scales anchored at each end by a positive or negative adjective. For example, 3 of the 16 scales are: helpful vs frustrating tense vs relaxed boring vs interesting The leader's LPC score is then calculated by adding up the numbers below the line checked on each scale. Note in these three examples that the higher numbers are associated with positive qualities (helpful, relaxed, and interesting), whereas the negative qualities (frustrating, tense, and boring) have low point values. A high total score is assumed to reflect a relationship orientation and a low score a task orientation on the part of the leader. The LPC measure is controversial because researchers disagree about its validity. Some question exactly what an LPC measure reflects and whether the score is an index of behavior, personality, or some other factor.

cohesiveness

A third important team characteristic is cohesiveness. Cohesiveness is the extent to which members are loyal and committed to the group. In a highly cohesive team, the members work well together, support and trust one another, and are generally effective at achieving their chosen goals. In contrast, a team that lacks cohesiveness is not very coordinated, its members do not necessarily support one another fully, and it may have a difficult time reaching goals. Of particular interest are the factors that increase and reduce cohesiveness and the consequences of team cohesiveness.

cross cultural leadership

Another new approach to leadership is based on cross-cultural issues. In this context, culture is used as a broad concept to encompass both international differences and diversity-based differences within one culture. For instance, when a Japanese firm sends an executive to head the firm's operations in the United States, that person will need to become acclimated to the cultural differences that exist between the two countries and to change his or her leadership style accordingly. Japan is generally characterized by collectivism, whereas the United States is based more on individualism. The Japanese executive, then, will find it necessary to recognize the importance of individual contributions and rewards, as well as the differences in individual and group roles, that exist in Japanese and U.S. businesses. Similarly, cross-cultural factors play a growing role in organizations as their workforces become more and more diverse. Most leadership research, for instance, has been conducted on samples or case studies involving white male leaders (until several years ago, most business leaders were white males). But as more females, African Americans, and Latinos achieve leadership positions, it may be necessary to reassess how applicable current theories and models of leadership are when applied to an increasingly diverse pool of leaders.

The meaning of leadership

As a process, the use of noncoercive influence to shape the group's or organization's goals, motivate behavior toward the achievement of those goals, and help define group or organizational culture; as a property, the set of characteristics attributed to individuals who are perceived to be leaders Leaders: leaders are (1) people who can influence the behaviors of others without having to rely on force or (2) people whom others accept as leaders.

leader member exchange program

Because leadership is such an important area, managers and researchers continue to study it. As a result, new ideas, theories, and perspectives are continuously being developed. The leader-member exchange (LMX) model of leadership, conceived by George Graen and Fred Dansereau, Stresses that leaders have different kinds of relationships with different subordinates Each superior-subordinate pair is referred to as a "vertical dyad." The model differs from earlier approaches in that it focuses on the differential relationship leaders often establish with different subordinates. The model suggests that supervisors establish a special relationship with a small number of trusted subordinates, referred to as "the in-group." The in-group usually receives special duties requiring responsibility and autonomy; they may also receive special privileges. Subordinates who are not a part of this group are called "the out-group," and they receive less of the supervisor's time and attention. Note in the figure that the leader has a dyadic, or one-to-one, relationship with each of the five subordinates. Early in his or her interaction with a given subordinate, the supervisor initiates either an in-group or an out-group relationship. It is not clear how a leader selects members of the in-group, but the decision may be based on personal compatibility and subordinates' competence. Research has confirmed the existence of in-groups and out-groups. In addition, studies generally have found that in-group members have a higher level of performance and satisfaction than do out-group members.

intergroup conflict

Conflict between two or more organizational groups is also quite common. For example, the members of a firm's marketing group may disagree with the production group over product quality and delivery schedules. Two sales groups may disagree over how to meet sales goals, and two groups of managers may have different ideas about how best to allocate organizational resources. Many intergroup conflicts arise more from organizational causes than from interpersonal causes. In Chapter 11, we described three forms of group interdependence—pooled, sequential, and reciprocal. Just as increased interdependence makes coordination more difficult, it also increases the potential for conflict. For example, recall that in sequential interdependence, work is passed from one unit to another. Intergroup conflict may arise if the first group turns out too much work (the second group will fall behind), too little work (the second group will not meet its own goals), or poor-quality work. At one JCPenney department store, conflict arose between stockroom employees and sales associates. The sales associates claimed that the stockroom employees were slow in delivering merchandise to the sales floor so that it could be priced and shelved. The stock-room employees, in turn, claimed that the sales associates were not giving them enough lead time to get the merchandise delivered and failed to understand that they had additional duties besides carrying merchandise to the sales floor. Just like people, different departments often have different goals. Further, these goals may often be incompatible. A marketing goal of maximizing sales, achieved partially by offering many products in a wide variety of sizes, shapes, colors, and models, probably conflicts with a production goal of minimizing costs, achieved partially by long production runs of a few items. Reebok recently confronted this very situation. One group of managers wanted to introduce a new sportswear line as quickly as possible, but other managers wanted to expand more deliberately and cautiously. Because the two groups were not able to recon-cile their differences effectively, conflict between the two factions led to quality problems and delivery delays that plagued the firm for months. Competition for scarce resources can also lead to intergroup conflict. Most organizations—especially universities, hospitals, government agencies, and businesses in depressed industries—have limited resources. In one New England town, for example, the public works department and the library battled over funds from a federal construction grant. The Buick, Pontiac, and Chevrolet divisions of General Motors frequently fought over the right to manufacture various new products developed by the company. This in-fighting was identified as one of many factors that led to GM's recent problems. As part of the solution, the Pontiac brand was eventually discontinued.

interpersonal conflict

Conflict between two or more people is almost certain to occur in any organization, given the great variety in perceptions, goals, attitudes, and so forth among its members. Bill Gates, founder and CEO of Microsoft, and Kazuhiko Nishi, a former business associate from Japan, once ended a lucrative long-term business relationship because of interpersonal conflict. Nishi accused Gates of becoming too political, while Gates charged that Nishi became too unpredictable and erratic in his behavior. A frequent source of interpersonal conflict in organizations is what many people call a "personality clash"—when two people distrust each other's motives, dislike each other, or for some other reason simply cannot get along. Conflict may also arise between people who have different beliefs or perceptions about some aspect of their work or their organization. For example, one manager might want the organization to require that all employees use Microsoft Office software, to promote standardization. Another manager might believe that a variety of software packages should be allowed, in order to recognize individuality. Similarly, a male manager may disagree with his female colleague over whether the organization is guilty of discriminating against women in promotion decisions. Conflict can also result from excess competitiveness among individuals. Two people vying for the same job, for example, may resort to political behavior in an effort to gain an advantage. If either competitor sees the other's behavior as inappropriate, accusations are likely to result. Even after the "winner" of the job is determined, such conflict may continue to undermine interpersonal relationships, especially if the reasons given for selecting one candidate are ambiguous or open to alternative explanations. Acer CEO and President Gianfranco Lanci resigned in 2011 due to several months of unresolved conflict with the company's board of directors. Lanci and the board had differing views on organizational growth, customer value creation, brand position enhancement, and resource allocation. Lanci pushed strongly for a move into the mobile segment to compete with Apple's iPad, while the board wanted to maintain its core PC business. Sometimes, of course, conflicts can't be resolved from within the organization, and when parties—both individuals and companies—are forced to seek resolution outside corporate headquarters, they usually find themselves in a courtroom or the offices of a governmental agency. Once in a great while, conflicts escalate to the point at which they end up in the halls of Congress.

conflict between organization and environment

Conflict that arises between one organization and another is called interorganizational conflict. A moderate amount of inter-organizational conflict resulting from business competition is expected, of course, but sometimes conflict becomes more extreme. For example, Starwood Hotels (owners of Sheraton, Westin, W, and other brands) sued Hilton Hotels Corporation for theft of trade secrets. In an effort to replicate Starwood's successful lifestyle hotels (most notably W), Hilton hired two Starwood executives, Ross Klein and Amar Lalvani, who were ultimately accused of stealing over 100,000 documents from Starwood to use in the development of the new Hilton brand. The suit was recently settled in favor of Starwood, with Hilton being forced to make a $75 million payment to Starwood. Conflict can also arise between an organization and other elements of its environment. For example, an organization may conflict with a consumer group over claims it makes about its products. McDonald's faced this problem a few years ago when it published nutritional information about its products that omitted details about fat content. A manufacturer might conflict with a governmental agency such as the federal Occupational Safety and Health Administration (OSHA). For example, the firm's management may believe it is in compliance with OSHA regulations, whereas officials from the agency itself believe that the firm is not in compliance. Or a firm might conflict with a supplier over the quality of raw materials. The firm may think the supplier is providing inferior materials, while the supplier thinks the materials are adequate. Finally, individual managers obviously may have disagreements with groups of workers. For example, a manager may think her workers are doing poor-quality work and that they are unmotivated. The workers, on the other hand, may believe they are doing good jobs and that the manager is doing a poor job of leading them.

favorableness and leadership style

Fiedler and his associates conducted many studies linking the favorableness of various situations to leader style and the effectiveness of the group. The results of these studies—and the overall frame-work of the theory—are shown in Figure 16.3. To interpret the model, look first at the situational factors at the top of the figure. Good or bad leader-member relations, high or low task structure, and strong or weak leader position power can be combined to yield six unique situations. lexiblitiy fFor example, good leader-member relations, high task structure, and strong leader position power (at the far left) are presumed to define the most favorable situation; bad leader-member relations, low task structure, and weak leader power (at the far right) are the least favorable. The other combinations reflect intermediate levels of favorableness. Below each set of situations are shown the degree of favorableness and the form of leader behavior found to be most strongly associated with effective group performance for those situations. When the situation is most and least favorable, Fiedler found that a task-oriented leader is most effective. When the situation is only moderately favorable, however, a relationship-oriented leader is predicted to be most effective.

flexibility of leader style

Fiedler argued that, for any given person, leader style is essentially fixed and cannot be changed; leaders cannot change their behavior to fit a particular situation because it is linked to their personality traits. Thus, when a leader's style and the situation do not match, Fiedler argued that the situation should be changed to fit the leader's style. When leader-member relations are good, task structure low, and position power weak, the leader style that is most likely to be effective is relationship oriented. If the leader is task oriented, a mismatch exists. According to Fiedler, the leader can make the elements of the situation more congruent by structuring the task (by developing guidelines and procedures, for instance) and increasing power (by requesting additional authority or by other means). Fiedler's contingency theory has been attacked on the grounds that it is not always supported by research, that his findings are subject to other interpretations, that the LPC measure lacks validity, and that his assumptions about the inflexibility of leader behavior are unrealistic. However, Fiedler's theory was one of the first to adopt a situational perspective on leadership. It has helped many managers recognize the important situational factors they must contend with, and it has fostered additional thinking about the situational nature of leadership. Moreover, in recent years Fiedler has tried to address some of the concerns about his theory by revising it and adding such additional elements as cognitive resources.

factors that increase cohesiveness

Five factors can increase the level of cohesiveness in a group or team. 1. intergroup competition When two or more groups are in direct competition (for example, three sales groups competing for top sales honors or two football teams competing for a conference championship), each group is likely to become more cohesive. 2. personal attraction just as personal attraction plays a role in causing a group to form, so, too, does attraction seem to enhance cohesiveness. 3.favorable evaluation favorable evaluation of the entire group by outsiders can increase cohesiveness. Thus a group's winning a sales contest or a conference title or receiving recognition and praise from a superior tends to increase cohesiveness. 4. agreement on goals if all the members of the group or team agree on their goals, cohesiveness is likely to increase. 5. interaction A manager who wants to foster a high level of cohesiveness in a team might do well to establish some form of intergroup competition, assign members to the group who are likely to be attracted to one another, provide opportu-nities for success, establish goals that all members are likely to accept, and allow ample opportunities for interaction.

norm conformity

Four sets of factors contribute to norm conformity. First, factors associated with the group are important. For example, some groups or teams may exert more pressure for conformity than others. Second, the initial stimulus that prompts behavior can affect conformity. The more ambiguous the stimulus (for example, news that the team is going to be transferred to a new unit), the more pressure there is to conform. Third, individual traits determine the individual's propensity to conform (for example, more intelligent people are often less susceptible to pressure to conform). Finally, situational factors, such as team size and unanimity, influence conformity. As a person learns the group's norms, he can do several different things. The most obvious is to adopt the norms. For example, the new male professor who notices that all the other men in the department dress up to teach can also start wearing a suit. A variation is to try to obey the "spirit" of the norm while retaining individuality. The professor may recognize that the norm is actually to wear a tie; thus he might succeed by wearing a tie with his sport shirt, jeans, and sneakers. The individual may also ignore the norm. When a person does not conform, several things can happen. At first the group may increase its communication with the deviant person to try to bring her back in line. If this does not work, communication may decline. Over time, the group may begin to exclude the person from its activities and, in effect, ostracize her. Finally, we need to briefly consider another aspect of norm conformity—socialization : Generalized norm conformity that occurs as a person makes the transition from being an outsider to being an insider in the organization. A newcomer to an organization, for example, gradually begins to learn about such norms as dress, working hours, and interpersonal relations. As the newcomer adopts these norms, she is being socialized into the organizational culture. Some organizations, like Texas Instruments, work to actively manage the socialization process; others leave it to happenstance.

the nature of leadership

From the manager's standpoint, trying to motivate people is an attempt to influence their behavior. In many ways, leadership, too, is an attempt to influence the behavior of others.

group activities

Individuals may also be motivated to join a group because the activities of the group appeal to them. Jogging, playing bridge, bowling, discussing poetry, playing fantasy football, and flying model airplanes are all activities that some people enjoy. Many of them are more enjoyable to participate in as a member of a group, and most require more than one person. Many large firms like Shell Oil and Apple Computer have a football, softball, or bowling league. A person may join a bowling team, not because of any particular attraction to other group members, but simply because being a member of the group allows that person to participate in a pleasant activity. Of course, if the group's level of interpersonal attraction is very low, a person may choose to forgo the activity rather than join the group.

managing conflict in organizations

How do managers cope with all this potential conflict? Fortunately, as Table 18.3 shows, there are ways to stimulate conflict for constructive ends, to control conflict before it gets out of hand, and to resolve it if it does. Below we look at ways of managing conflict -stimulating conflict -controlling conflict -resolving and eliminating conflict

impression management

Impression management is a subtle form of political behavior that deserves special mention. Impression management is a direct and intentional effort by someone to enhance his or her image in the eyes of others. People engage in impression management for a variety of reasons. For one thing, they may do so to further their own careers. By making themselves look good, they think they are more likely to receive rewards, to be given attractive job assignments, and to receive promotions. They may also engage in impression management to boost their self-esteem. When people have a solid image in an organization, others make them aware of it through compliments, respect, and so forth. Still another reason people use impression management is in an effort to acquire more power and hence more control People try to manage how others perceive them through a variety of mechanisms. Appearance is one of the first things people think of. Hence, a person motivated by impression management will pay close attention to choice of attire, selection of language, and use of manners and body posture. People interested in impression management are also likely to jockey for association only with successful projects. By being assigned to high-profile projects led by highly successful managers, a person can begin to link his or her own name with such projects in the minds of others. Sometimes people too strongly motivated by impression management become obsessed with it and may resort to dishonest or unethical means. For example, some people have been known to take credit for others' work in an effort to make themselves look better. People have also been known to exaggerate or even falsify their personal accomplishments in an effort to build an enhanced image.

Criticisms of executive compensation

In recent years, executive compensation has come under fire for a variety of reasons. One major reason is that the levels of executive compensation attained by some managers seem simply too large for the average shareholder to understand. It is not uncommon, for instance, for a senior executive of a major corporation to earn total income from his or her job in a given year of well in excess of $1 million. Sometimes the income of chief executive officers can be substantially more than this. Thus, just as the typical person has difficulty comprehending the astronomical salaries paid to some movie stars and sports stars, so, too, would the average person be aghast at the astronomical salaries paid to some senior executives. Compounding the problem created by perceptions of executive compensation is the fact that there often seems to be little or no relationship between the performance of the organization and the compensation paid to its senior executives. Certainly, if an organization is performing at an especially high level and its stock price is increasing consistently, then most observers would agree that the senior executives responsible for this growth should be entitled to attractive rewards. However, it is more difficult to understand a case in which executives are paid large salaries and other forms of rewards when their company is performing at only a marginal level, yet this is fairly common today. For example, General Electric CEO Jeffrey Immelt recently received stock options increasing his total compensation to $28.5 million from $9.8 million, an increase of 188 percent. However, during that same year shareholder returns fell behind those of similar companies (24.33 percent compared to 32.21 percent). Finally, we should note that the gap between the earnings of the CEO and the earnings of a typical employee is enormous. First of all, the size of the gap has been increasing in the United States. In 1980 the typical CEO earned 42 times the earnings of an ordinary worker; by 1990 this ratio had increased to 85 times the earnings of an ordinary worker; in 2014 the ratio was 354 times the earnings of a typical worker. In Japan, on the other hand, the CEO-to-worker pay ratio is 67 times; in Germany the ratio is 147 times.

transformational leadership

Leadership that goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking Another new perspective on leadership has been called by a number of labels: charismatic leadership, inspirational leadership, symbolic leadership, and transformational leadership. We use the term transformational leadership and define it as leadership that goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking. Because of rapid change and turbulent environments, transformational leaders are increasingly being seen as vital to the success of business. A widely circulated popular press article once identified seven keys to successful leadership: trusting one's subordinates, developing a vision, keeping cool, encouraging risk, being an expert, inviting dissent, and simplifying things. Although this list was the result of a simplistic survey of the leadership literature, it is nevertheless consistent with the premises underlying transformational leadership. So, too, are recent examples cited as effective leadership. Take the case of 3M. The firm's current CEO is working to make the firm more efficient and profitable while simultaneously keeping its leadership role in new product innovation. He has also changed the reward system, overhauled procedures, and restructured the entire firm. And so far, at least, analysts have applauded these changes.

situational factors

Like other situational theories of leadership, path-goal theory suggests that appropriate leader style depends on situational factors. Path-goal theory focuses on the situational factors of the personal characteristics of subordinates and environmental charac-teristics of the workplace. Important personal characteristics include : the subordinates' perception of their own abilities and their locus of control. If people perceive that they are lacking in abilities, they may prefer directive leadership to help them understand path-goal relationships better. If they perceive themselves as having a lot of abilities, however, employees may resent directive leadership. Locus of control is a personality trait. People who have an internal locus of control believe that what happens to them is a function of their own efforts and behavior. Those who have an external locus of control assume that fate, luck, or "the system" determines what happens to them. A person with an internal locus of control may prefer participative leadership, whereas a person with an external locus of control may prefer directive leadership. Managers can do little or nothing to influence the personal characteristics of subordi-nates, but they can shape the environment to take advantage of these personal characteristics by, for example, providing rewards and structuring tasks. Environmental characteristics include factors outside the subordinates' control. Task structure is one such factor. When structure is high, directive leadership is less effective than when structure is low. Subordinates do not usually need their boss to continually tell them how to do an extremely routine job. The formal authority system is another important environmental characteristic. Again, the higher the degree of formality, the less directive is the leader behavior that will be accepted by subordinates. The nature of the work group also affects appropriate leader behavior. When the work group provides the employee with social support and satisfaction, supportive leader behavior is less critical. When social support and satisfaction cannot be derived from the group, the worker may look to the leader for this support. Greater leadership support may also be an important factor in times of change or under unusually stressful conditions.The basic path-goal framework as illustrated in Figure 16.4 shows that different leader behaviors affect subordinates' motivation to perform. Personal and environmental characteristics are seen as defining which behaviors lead to which outcomes. The path-goal theory of leader-ship is a dynamic and incomplete model. The original intent was to state the theory in general terms so that future research could explore a variety of interrelationships and modify the theory. Research that has been done suggests that the path-goal theory is a reasonably good description of the leadership process and that future investigations along these lines should enable us to discover more about the link between leadership and motivation.

interpersonal and intergroup conflict

Of course, when people work together in an organization, things do not always go smoothly. Indeed, conflict is an inevitable element of interpersonal relationships in organizations. In this section, we look at how conflict affects overall performance. We also explore the causes of conflict between individuals, between groups, and between an organization and its environment.

formal and informal leadership

Most functional groups and teams have a formal leader—that is, one appointed by the organization or chosen or elected by the members of the group. Because friendship and interest groups are formed by the members themselves, however, any formal leader must be elected or designated by the members. Although some groups do designate such a leader (a softball team may elect a captain, for example), many do not. Moreover, even when a formal leader is designated, the group or team may also look to others for leadership. An informal leader is a person who -- engages in leadership activities but whose right to do so has not been formally recognized. The formal and the informal leader in any group or team may be the same person, or they may be different people. We noted earlier the distinction between the task specialist and socioemotional roles within groups. An informal leader is likely to be a person capable of carrying out both roles effectively. If the formal leader can fulfill one role but not the other, an informal leader often emerges to supplement the formal leader's functions. If the formal leader can fill neither role, one or more informal leaders may emerge to carry out both sets of functions.Is informal leadership desirable? In many cases informal leaders are quite powerful because they draw from referent or expert power. When they are working in the best interests of the organization, they can be a tremendous asset. Notable athletes like Ben Roethlis-berger and Mia Hamm are classic examples of informal leaders. However, when informal leaders work counter to the goals of the organization, they can cause significant difficulties. Such leaders may lower performance norms, instigate walkouts or wildcat strikes, or other-wise disrupt the organization.

ethical leadership

Most people have long assumed that top managers are ethical people. But in the wake of recent corporate scandals, faith in top managers has been shaken. Perhaps now more than ever, high standards of ethical conduct are being held up as a prerequisite for effective leadership. More specifically, top managers are being called on to maintain high ethical stan-dards for their own conduct, to exhibit ethical behavior unfailingly, and to hold others in their organizations to the same standards. The behaviors of top leaders are being scrutinized more than ever, and those responsible for hiring new leaders for a business are looking more and more closely at the background of those being considered. And the emerging pressures for stronger corporate governance models are likely to further increase commitment to selecting only those individuals with high ethical standards and to hold them more accountable than in the past for both their actions and the consequences of those actions.

Standard Forms of Executive Compensation

Most senior executives receive their compensation in two forms. One form is a base salary. As with the base salary of any staff member or professional member of an organization, the base salary of an executive is a guaranteed amount of money that the person will be paid. For example, in 2014 Hewlett-Packard paid its CEO, Meg Whitman, $1,500,000 in base salary.Above and beyond this base salary, however, most executives also receive one or more forms of incentive pay. The traditional method of incentive pay for executives is in the form of bonuses. Bonuses, in turn, are usually determined by the performance of the organization. Thus, at the end of the year, some portion of a corporation's profits may be diverted into a bonus pool. Senior executives then receive a bonus expressed as a percentage of this bonus pool. The chief executive officer and president are obviously likely to get a larger percentage bonus than a vice president. The exact distribution of the bonus pool is usually specified ahead of time in the individual's employment contract. Some organizations intentionally leave the distribution unspecified, so that the board of directors has the flexibility to give larger rewards to those deemed to be most deserving. HP's Meg Whitman received a cash bonus of $3.97 million in 2014.

interpersonal attraction

One reason why people choose to form informal or interest groups is that they are attracted to one another. Many different factors contribute to interpersonal attraction. When people see a lot of each other, pure proximity increases the likelihood that interpersonal attraction will develop. Attraction is increased when people have similar attitudes, personalities, or economic standings.

behavioral norms

Norms: Standards of behavior that the group accepts for and expects of its members Most committees, for example, develop norms governing their discussions. A person who talks too much is perceived as doing so to make a good impression or to get his or her own way. Other members may not talk much to this person, may not sit nearby, may glare at the person, and may otherwise "punish" the individual for violating the norm. Norms, then, define the boundaries between acceptable and unacceptable behavior. Some groups develop norms that limit the upper bounds of behavior to "make life easier" for the group—for example, do not make more than two comments in a committee discussion or do not produce any more than you have to. In general, these norms are counterproductive. Other groups may develop norms that limit the lower bounds of behavior—for example, do not come to meetings unless you have read the reports to be discussed or produce as much as you can. These norms tend to reflect motivation, commitment, and high performance. Managers can sometimes use norms for the betterment of the organization. For example, Kodak has successfully used group norms to reduce injuries in some of its plants.

role conflict

Occurs when the messages and cues composing the sent role are clear but contradictory or mutually exclusive One common form is interrole conflict—conflict between roles. For example, if a person's boss says that one must work overtime and on weekends to get ahead, and the same person's spouse says that more time is needed at home with the family, conflict may result. In a matrix organization, interrole conflict often arises between the roles one plays in different teams as well as between team roles and one's permanent role in a functional group. Intrarole conflict : may occur when the person gets conflicting demands from different sources within the context of the same role. A manager's boss may tell her that she needs to put more pressure on subordinates to follow new work rules. At the same time, her subordinates may indicate that they expect her to get the rules changed. Thus the cues are in conflict, and the manager may be unsure about which course to follow. Intrasender conflict occurs when a single source sends clear but contradictory messages. This might arise if the boss says one morning that there can be no more overtime for the next month but after lunch tells someone to work late that same evening. Person-role conflict results from a discrepancy between the role requirements and the individual's personal values, attitudes, and needs. If a person is told to do something unethical or illegal, or if the work is distasteful (for example, firing a close friend), person-role conflict is likely. Role conflict of all varieties is of particular concern to managers. Research has shown that conflict may occur in a variety of situations and lead to a variety of adverse consequences, including stress, poor performance, and rapid turnover.

why people join groups and teams

People join groups and teams for a variety of reasons. They join functional groups simply by virtue of joining organizations. People accept employment to earn money or to practice their chosen professions. Once inside the organization, they are assigned to jobs and roles and thus become members of functional groups. People in existing functional groups are told, are asked, or volunteer to serve on committees, task forces, and teams. People join informal or interest groups for a variety of reasons, most of them quite complex. Indeed, the need to be a team player has grown so strong today that many organizations will actively resist hiring someone who does not want to work with others. -interpersonal attraction -group activities -group goals -need satisfaction -instrumental benefits

emerging approaches to leadership

Recently, three potentially very important new approaches to leadership have emerged. One is called "strategic leadership"; the others deal with cross-cultural leadership and ethical leadership.

situational approaches to leadership

Situational models assume that appropriate leader behavior varies from one situation to another. The goal of a situational theory, then, is to identify key situational factors and to specify how they interact to determine appropriate leader behavior. Before discussing the major situational theories, we should first discuss an important early model that laid the foundation for subsequent developments. In a 1958 study of the decision-making process, Robert Tannenbaum and Warren H. Schmidt proposed a continuum of leadership behavior. Their model is much like the original Michigan framework. Besides purely job-centered behavior (or "boss-centered" behavior, as they termed it) and employee-centered ("subordinate-centered") behavior, however, they identified several intermediate behaviors that a manager might consider. These are shown on the leadership continuum in Figure 16.2. This continuum of behavior moves from one extreme, of having the manager make the decision alone, to the other extreme, of having the employees make the decision with minimal guidance. Each point on the continuum is influenced by characteristics of the manager, the subordinates, and the situation. Managerial characteristics include the manager's value system, confidence in subordinates, personal inclinations, and feelings of security. Subordinate characteristics include the subordinates' need for independence, readiness to assume responsibility, tolerance for ambiguity, interest in the problem, understanding of goals, knowledge, experience, and expectations. Situational characteristics that affect decision making include the type of organization, group effectiveness, the problem itself, and time pressures. Although this framework pointed out the importance of situational factors, it was only speculative. It remained for others to develop more comprehensive and integrated theories. In the following sections, we describe four of the most important and widely accepted situational theories of leadership: the LPC theory, the path-goal theory, Vroom's decision tree approach, and the leader-member exchange approach.

new approaches to performance based rewards

Some organizations have started to recognize that they can leverage the value of the incentives they offer to their employees and to groups in their organization by allowing those individuals and groups to have a say in how rewards are distributed. For example, at the extreme, a company could go so far as to grant salary increase budgets to work groups and then allow the members of those groups themselves to determine how the rewards are going to be allocated among the various members of the group. This strategy would appear to hold considerable promise if everyone understands the performance arrangements that exist in the work group and everyone is committed to being fair and equitable. Unfortunately, it can also create problems if people in a group feel that rewards are not being distributed fairly. Organizations are also getting increasingly innovative in their incentive programs. For example, some now offer stock options to all their employees, rather than just to top executives. In addition, some firms are looking into ways to purely individualize reward systems. For instance, a firm might offer one employee a paid three-month sabbatical every two years in exchange for a 20 percent reduction in salary. Another employee in the same firm might be offered a 10 percent salary increase in exchange for a 5 percent reduction in company contributions to the person's retirement account. Corning, General Electric, and Microsoft are among the firms closely studying this option. Regardless of the method used, however, it is also important that managers in an organization effectively communicate what rewards are being distributed and the basis for that distri-bution. In other words, if incentives are being distributed on the basis of perceived individual contributions to the organization, then members of the organization should be informed of that fact. This will presumably better enable them to understand the basis on which pay increases and other incentives and performance-based rewards have been distributed.

leadership behaviors

Spurred on by their lack of success in identifying useful leadership traits, researchers soon began to investigate other variables, especially the behaviors or actions of leaders. The new hypothesis was that effective leaders somehow behaved differently than less effective leaders. Thus the goal was to develop a fuller understanding of leadership behaviors.

need satisfaction

Still another reason for joining a group is to satisfy the need for affiliation. New residents in a community may join the Newcomers Club (or similar organization targeted at new residents) partially as a way to meet new people and partially just to be around other people. Likewise, newly divorced people often join support groups as a way to have companionship.

referent power

The personal power that accrues to someone based on identification, imitation, loyalty, or charisma Compared with legitimate, reward, and coercive power, which are relatively concrete and grounded in objective facets of organizational life, referent power is abstract. Followers may react favorably because they identify in some way with a leader, who may be like them in personality, background, or attitudes. In other situations, followers might choose to imitate a leader with referent power by wearing the same kind of clothing, working the same hours, or espousing the same management philosophy. Referent power may also take the form of charisma, an intangible attribute of the leader that inspires loyalty and enthusiasm. Thus a manager might have referent power, but it is more likely to be associated with leadership.

expert power

The personal power that accrues to someone based on the information or expertise they possess A manager who knows how to interact with an eccentric but important customer, a scientist who is capable of achieving an important technical breakthrough that no other company has dreamed of, and an administrative assistant who knows how to unravel bureaucratic red tape all have expert power over anyone who needs that information. The more important the information and the fewer the people who have access to it, the greater is the degree of expert power possessed by any one person. In general, people who are both leaders and managers tend to have a lot of expert power

coercive power

The power to force compliance by means of psychological, emotional, or physical threat In the past, physical coercion in organizations was relatively common. In most organizations today, however, coercion is limited to verbal reprimands, written reprimands, disciplinary layoffs, fines, demotion, and termination. Some managers occasionally go so far as to use verbal abuse, humiliation, and psychological coercion in an attempt to manipulate subordinates. (Of course, most people would agree that these are not appropriate managerial behaviors.) James Dutt, a legendary former CEO of Beatrice Company, once told a subordinate that if his wife and family got in the way of his working a 24-hour day seven days a week, he should get rid of them. Charlie Ergen, founder and chairman of Dish Network, is also known to be an abrasive and hard-nosed leader. Dish is often cited as one of the worst places to work in America. The more punitive the elements under a manager's control and the more important they are to subordinates, the more coercive power the manager possesses. On the other hand, the more a manager uses coercive power, the more likely he is to provoke resentment and hostility and the less likely he is to be seen as a leader.

reward power

The power to give or withhold rewards, such as salary increases, bonuses, promotions, praise, recognition, and interesting job assignments In general, the greater the number of rewards a manager controls and the more important the rewards are to subordinates, the greater is the manager's reward power. If the subordinate sees as valuable only the formal organizational rewards provided by the manager, then he or she is not a leader. If the subordinate also wants and appreciates the manager's informal rewards, such as praise, gratitude, and recognition, however, then the manager is also exercising leadership.

negotation

The process in which two or more parties (people or groups) reach agreement on an issue even though they have different preferences regarding that issue In its simplest form the parties involved may be two individuals who are trying to decide who will pay for lunch. A little more complexity is involved when two people, such as an employee and a manager, sit down to decide on personal performance goals for the next year against which the employee's performance will be measured. Even more complex are the negotiations that take place between labor unions and the management of a company or between two companies as they negotiate the terms of a joint venture. The key issues in such negotiations are that at least two parties are involved, their preferences are different, and they need to reach agreement. Interest in negotiation has grown steadily in recent years. Four primary approaches to negotiation have dominated this study: individual differences, situational characteristics, game theory, and cognitive approaches. Early psychological approaches concentrated on the personality traits of the negotiators. Traits investigated have included demographic characteristics and personality variables. Demographic characteristics have included age, gender, and race, among others. Personality variables have included risk taking, locus of control, tolerance for ambiguity, self-esteem, authoritarianism, and Machiavellianism. The assumption of this type of research was that the key to successful negotiation was selecting the right person to do the negotiating, one who had the appropriate demographic characteristics or personality. This assumption seemed to make sense because negotiation is such a personal and interactive process. However, the research rarely showed the positive results expected because situational variables negated the effects of the individual differences. Situational characteristics are the context within which negotiation takes place. They include such things as the types of communication between negotiators, the potential out-comes of the negotiation, the relative power of the parties (both positional and personal), the time frame available for negotiation, the number of people representing each side, and the presence of other parties. Some of this research has contributed to our understanding of the negotiation process. However, the shortcomings of the situational approach are similar to those of the individual characteristics approach. Many situational characteristics are external to the negotiators and beyond their control. Often the negotiators cannot change their relative power positions or the setting within which the negotiation occurs. So, although we have learned a lot from research on the situational issues, we still need to learn much more about the process. Game theory was developed by economists using mathematical models to predict the outcome of negotiation situations (as illustrated in the Academy Award-winning movie A Beautiful Mind). It requires that every alternative and outcome be analyzed with probabilities and numerical outcomes reflecting the preferences for each outcome. In addition, the order in which different parties can make choices and every possible move are predicted, along with associated preferences for outcomes. The outcomes of this approach are exactly what negotiators want: a predictive model of how negotiation should be conducted. One major drawback is that it requires the ability to describe all possible options and outcomes for every possible move in every situation before the negotiation starts. This is often very tedious, if possible at all. Another problem is that this theory assumes that negotiators are rational at all times. Other research in negotiation has shown that negotiators often do no act rationally. Therefore, this approach, although elegant in its prescriptions, is usually unworkable in a real negotiation situation. The fourth approach is the cognitive approach, which recognizes that negotiators often depart from perfect rationality during negotiation; it tries to predict how and when negotiators will make these departures. Howard Raiffa's decision analytic approach focuses on providing advice to negotiators actively involved in negotiation. Bazerman and Neale have added to Raiffa's work by specifying eight ways in which negotiators systematically deviate from rationality. The types of deviations they describe include escalation of commitment to a previously selected course of action, overreliance on readily available information, assuming that the negotiations can produce fixed-sum outcomes, and anchoring negotiation in irrelevant information. These cognitive approaches have advanced the study of negotiation a long way beyond the early individual and situational approaches. Negotiators can use them to attempt to predict in advance how the negotiation might take place.

Executive Compensation

The top-level executives of most companies have separate compensation programs and plans. These are intended to reward these executives for their performance and for the performance of the organization. Leading the Way provides some interesting insights into executive compensation.

favorableness of the situation

The underlying assumption of situational models of leadership is that appropriate leader behavior varies from one situation to another. According to Fiedler, the key situational factor is the favorableness of the situation from the leader's point of view. This factor is determined by leader-member relations, task structure, and position power. Leader-member relations refer to the nature of the relationship between the leader and the work group. If the leader and the group have a high degree of mutual trust, respect, and confidence, and if they like one another, relations are assumed to be good. If there is little trust, respect, or confidence, and if they do not like one another, relations are poor. Naturally, good relations are more favorable. Task structure : is the degree to which the group's task is well defined. The task is structured when it is routine, easily understood, and unambiguous, and when the group has standard procedures and precedents to rely on. An unstructured task is nonroutine, ambiguous, and complex, with no standard procedures or precedents. You can see that high structure is more favorable for the leader, whereas low structure is less favorable. For example, if the task is unstructured, the group will not know what to do, and the leader will have to play a major role in guiding and directing its activities. If the task is structured, the leader will not have to get so involved and can devote time to nonsupervisory activities. Position power : is the power vested in the leader's position. If the leader has the power to assign work and to reward and punish employees, position power is assumed to be strong. But if the leader must get job assignments approved by someone else and does not administer rewards and punishment, position power is weak, and it is more difficult to accomplish goals. From the leader's point of view, strong position power is clearly preferable to weak position power. However, position power is not as important as task structure and leader-member relations.

decision making styles

The various decision styles reflected at the ends of the tree branches represent different levels of subordinate participation that the manager should ttry to adopt in a given situation. The five styles are defined as follows: • Decide. The manager makes the decision alone and then announces or "sells" it to the group. • Consult (individually). The manager presents the program to group members individually, obtains their suggestions, and then makes the decision. • Consult (group). The manager presents the problem to group members at a meeting, gets their suggestions, and then makes the decision. • Facilitate. The manager presents the problem to the group at a meeting, defines the prob-lem and its boundaries, and then facilitates group member discussion as they make the decision. • Delegate. The manager allows the group to define for itself the exact nature and parameters of the problem and then to develop a solution. Vroom's decision tree approach represents a very focused but quite complex perspective on leadership. To compensate for this difficulty, Vroom has developed elaborate expert system software to help managers assess a situation accurately and quickly and then to make an appropriate decision regarding employee participation. Many firms, including Halliburton Company, Litton Industries, and Borland International, have provided their managers with training in how to use the various versions of this model.

The nature of conflict

conflict : is a disagreement among two or more individuals, groups, or organizations. This disagreement may be relatively superficial or very strong. It may be short-lived or exist for months or even years, and it may be work-related or personal. Conflict may manifest itself in a variety of ways. People may compete with one another, glare at one another, shout, or with-draw. Groups may band together to protect popular members or oust unpopular members. Organizations may seek legal remedies. Most people assume that conflict is something to be avoided because it connotes antagonism, hostility, unpleasantness, and dissension. Indeed, managers and management theorists have traditionally viewed conflict as a problem to be avoided. In recent years, however, we have come to recognize that, although conflict can be a major problem, certain kinds of conflict may also be beneficial. For example, when two members of a site selection committee disagree over the best location for a new plant, each may be forced to more thoroughly study and defend his or her preferred alternative. As a result of more systematic analysis and discussion, the committee may make a better decision and be better prepared to justify it to others than if everyone had agreed from the outset and accepted an alternative that was perhaps less well analyzed. As long as conflict is being handled in a cordial and constructive manner, it is probably serving a useful purpose in the organization. On the other hand, when working relationship are being disrupted and the conflict has reached destructive levels, it has likely become dysfunctional and needs to be addressed. We discuss ways of dealing with such conflict later in this chapter. Figure 18.5 depicts the general relationship between conflict and performance for a group or organization. If there is absolutely no conflict in the group or organization, its members may become complacent and apathetic. As a result, group or organizational performance and innovation may begin to suffer. A moderate level of conflict among group or organizational members, on the other hand, can spark motivation, creativity, innovation, and initiative, and raise performance. Too much conflict, though, can produce such undesirable results as hostility and lack of cooperation, which lower performance. The key for managers is to find and maintain the optimal amount of conflict that fosters performance. Of course, what constitutes optimal conflict varies with both the situation and the people involved.

chapter 16

managing leadership and influence processes

chapter 18

managing work groups and teams

political behavior in organizations

political behavior : Activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one's preferred outcomes Political behavior may be undertaken by managers dealing with their subordinates, subordinates dealing with their managers, and managers and subordinates dealing with others at the same level. In other words, it may be directed upward, downward, or laterally. Decisions ranging from where to locate a manufacturing plant to where to put the company coffee maker are subject to political action. In any situation, individuals may engage in political behavior to further their own ends, to protect themselves from others, to further goals they sincerely believe to be in the organization's best interests, or simply to acquire and exercise power. And power may be sought by individuals, by groups of individuals, or by groups of groups. Although political behavior is difficult to study because of its sensitive nature, one early survey found that many managers believed that politics influenced salary and hiring decisions in their firm. Many also believed that the incidence of political behavior was greater at the upper levels of their organization and lesser at the lower levels. More than half of the respondents felt that organizational politics was bad, unfair, unhealthy, and irrational, but most suggested that successful executives have to be good politicians and be political to get ahead.

controlling conflict

♣ Expand resource base One method of controlling conflict is to expand the resource base. Suppose a top manager receives two budget requests for $100,000 each. If she has only $180,000 to distribute, the stage is set for conflict because each group will believe its proposal is worth funding and will be unhappy if it is not fully funded. If both proposals are indeed worthwhile, it may be possible for the manager to come up with the extra $20,000 from some other source and thereby avoid difficulty. ♣ Enhance coordination and interdependence As noted earlier, pooled, sequential, and reciprocal interdependence can all result in conflict. If managers use an appropriate technique for enhancing coordination, they can reduce the probability that conflict will arise. Techniques for coordination (described in Chapter 11) include making use of the managerial hierarchy, relying on rules and procedures, enlisting liaison people, forming task forces, and integrating departments. At the JCPenney store mentioned earlier, the conflict was addressed by providing salespeople with clearer forms on which to specify the merchandise they needed and in what sequence. If one coordination technique does not have the desired effect, a manager might shift to another one. ♣ Set superordinate goals Competing goals can also be a source of conflict among individuals and groups. Managers can sometimes focus employee attention on higher-level, or superordinate, goals as a way of eliminating lower-level conflict. When labor unions like the United Auto Workers make wage concessions to ensure the survival of the automobile industry, they are responding to a superordinate goal. Their immediate goal may be higher wages for members, but they realize that, without the automobile industry, their members would not even have jobs. ♣ Match personalities and work habits. Finally, managers should try to match the personalities and work habits of employ-ees so as to avoid conflict between individuals. For instance, two valuable subordinates, one a chain smoker and the other a vehement antismoker, probably should not be required to work together in an enclosed space. If conflict does arise between incompat-ible people, a manager might seek an equitable transfer for one or both of them to other units.

stimulating conflict

♣increase competition among individuals and teams : In some situations, an organization may stimulate conflict by placing individual employees or groups in competitive situations. Managers can establish sales contests, incentive plans, bonuses, or other competitive stimuli to spark competition. As long as the ground rules are equitable and all participants perceive the contest as fair, the conflict created by the competition is likely to be constructive because each participant will work hard to win (thereby enhancing some aspect of organizational performance). ♣hire outsiders to shake things up : Another useful method for stimulating conflict is to bring in one or more outsiders who will shake things up and present a new perspective on organizational practices. Outsiders may be new employees, current employees assigned to an existing work group, or consultants or advisors hired on a temporary basis. Of course, this action can also provoke resentment from insiders who feel they were qualified for the position. The Beecham Group, a British company, once hired an executive from the United States for its CEO position, expressly to change how the company did business. His arrival brought with it new ways of doing things and a new enthusiasm for competitiveness. Unfortunately, some valued employees also chose to leave Beecham because they resented some of the changes that were made. ♣Changing established procedures: especially procedures that have outlived their usefulness, can also stimulate conflict. Such actions cause people to reassess how they perform their jobs and whether they perform them correctly. For example, one university president announced that all vacant staff positions could be filled only after written justification had received his approval. Conflict arose between the president and the department heads, who felt they were having to do more paperwork than was necessary. Most requests were approved, but because department heads now had to think through their staffing needs, a few unnecessary positions were appropriately eliminated.

The motivation Framework

-Need or deficiency -search for ways to satisfy need -choice of behavior to satisfy need -evaluation of need satisfaction -determination of future needs and search/choice for satisfaction is a good starting point for understanding how motivated behavior occurs. The motivation process begins with 1. a need deficiency. For example, when a worker feels that she is underpaid, she experiences a need for more income. In response, the worker 2. searches for ways to satisfy the need, such as working harder to try to earn a raise or seeking a new job. Next she 3. chooses an option to pursue. After carrying out the chosen option—working harder and putting in more hours for a reasonable period of time, for example—she then 4. evaluates her success. If her hard work results in a pay raise, she probably feels good about things and will continue to work hard. But if no raise is provided, she is likely to 5. try another option.

Agreeableness

A person's ability to get along with others Agreeableness causes some people to be gentle, cooperative, forgiving, understanding, and good-natured in their dealings with others. But it results in others' being irritable, short- tempered, uncooperative, and generally antagonistic toward other people. it would seem likely that highly agreeable people will be better able to develop good working relationships with coworkers, subordinates, and higher-level managers, whereas less agreeable people will not have particularly good working relationships. This same pattern might also extend to rela-tionships with customers, suppliers, and other key organizational constituents.

extraversion

A person's comfort level with relationships People who are called "extraverts" are sociable, talkative, assertive, and open to establishing new relationships. Introverts are much less sociable, talkative, and assertive, and less open to establishing new relationships. Research suggests that extraverts tend to be higher overall job performers than introverts and that they are also more likely to be attracted to jobs based on personal relation-ships, such as sales and marketing positions.

openness

A person's rigidity of beliefs and range of interests People with high levels of openness are willing to listen to new ideas and to change their own ideas, beliefs, and attitudes as a result of new information. They also tend to have broad interests and to be curious, imaginative, and creative. On the other hand, people with low levels of openness tend to be less receptive to new ideas and less willing to change their minds. Further, they tend to have fewer and narrower interests and to be less curious and creative. People with more openness might be expected to be better performers, owing to their flexibility and the likelihood that they will be better accepted by others in the organization. Openness may also encompass an individual's willingness to accept change. For example, people with high levels of openness may be more receptive to change, whereas people with low levels of openness may be more likely to resist change.

The Big Five Personality Traits

A popular personality framework based on five key traits agreeableness, conscientiousness, emotionality, extraversion, openness The Big Five framework continues to attract the attention of both researchers and managers. The potential value of this framework is that it encompasses an integrated set of traits that appear to be valid predictors of certain behaviors in certain situations. Thus managers who can develop both an understanding of the framework and the ability to assess these traits in their employees will be in a good position to understand how and why employees behave as they do. On the other hand, managers must also be careful not to overestimate their ability to assess the Big Five traits in others. Even assessment using the most rigorous and valid measures, for instance, is still likely to be somewhat imprecise. Another limitation of the Big Five framework is that it is based primarily on research conducted in the United States. Thus there are unanswered questions as to how accurately it applies to workers in other cultures. And even within the United States, a variety of other factors and traits are also likely to affect behavior in organizations.

Equity Theory

After needs have stimulated the motivation process and the person has chosen an action that is expected to satisfy those needs, he or she assesses the fairness, or equity, of the resultant outcome. Equity theory contends that people are motivated to seek social equity in the rewards they receive for performance. Equity is an individual's belief that the treatment he or she is receiving is fair relative to the treatment received by others. According to equity theory, outcomes from a job include pay, recognition, promotions, social relationships, and intrinsic rewards. To get these rewards, the individual makes inputs to the job, such as time, experience, effort, education, and loyalty. The theory suggests that people view their outcomes and inputs as a ratio and then compare it to someone else's ratio. This other "per-son" may be someone in the work group or some sort of group average or composite. The process of comparison looks like this: Individual Inputs / Other's Outcomes = Other's Inputs / Individual Outcomes Both the formulation of the ratios and comparisons between them are very subjective and based on individual perceptions. As a result of comparisons, three conditions may result: The person may feel equitably rewarded, underrewarded, or overrewarded. A feeling of equity will result when the two ratios are equal. This may occur even though the other person's outcomes are greater than the individual's own outcomes—provided that the other's inputs are also proportionately greater. Suppose that Mark has a high school education and earns $40,000. He may still feel equitably treated relative to Susan, who earns $60,000, because she has a college degree and more experience. People who feel underrewarded try to reduce the inequity. Such a person might decrease her inputs by exerting less effort, increase her outcomes by asking for a raise, distort the original ratios by rationalizing, try to get the other person to change her or his outcomes or inputs, leave the situation, or change the object of comparison. An individual may also feel overrewarded relative to another person. This is not likely to be terribly disturbing to most people, but research suggests that some people who experience inequity under these conditions are somewhat motivated to reduce it. Under such a circumstance, the person might increase his inputs by exerting more effort, reduce his outcomes by producing fewer units (if paid on a per-unit basis), distort the original ratios by rationalizing, or try to reduce the inputs or increase the outcomes of the other person. Managers today may need to pay even greater attention to equity theory and its implications. Many firms, for example, are moving toward performance-based reward systems as opposed to standard or across-the-board salary increases. Hence, they must ensure that the bases for rewarding some people more than others are clear and objective. Beyond legal issues such as discrimination, managers need to be sure that they are providing fair rewards and incentives to those who do the best work. Moreover, they must be sensitive to cultural differences that affect how people may perceive and react to equity and inequity.

Job Satisfaction or Dissatisfaction

An attitude that reflects the extent to which an individual is gratified by or fulfilled in his or her work Extensive research conducted on job satisfaction has indicated that personal factors, such as an individual's needs and aspirations, determine this attitude, along with group and organizational factors, such as relationships with coworkers and supervisors, as well as working conditions, work policies, and compensation. A satisfied employee also tends to be absent less often, to make positive contributions, and to stay with the organization. In contrast, a dissatisfied employee may be absent more often, may experience stress that disrupts coworkers, and may be continually looking for another job. Contrary to what many managers believe, however, high levels of job satisfaction do not necessarily lead to higher levels of performance. One survey has also indicated that, contrary to popular opinion, Japanese workers are less satisfied with their jobs than their counterparts in the United States.

self-efficacy

An individual's beliefs about her or his capabilities to perform a task People with high self-efficacy believe that they can perform well on a specific task, whereas people with low self-efficacy tend to doubt their ability to perform a specific task. Although self-assessments of ability contribute to self-efficacy, so, too, does the individual's personality. Some people simply have more self- confidence than do others. This belief in their ability to perform a task effectively results in their being more self-assured and more able to focus their attention on performance.

Personality & Individual Behavior

Personality: The relatively permanent set of psychological and behavioral attributes that distinguish one person from another Managers should strive to understand basic personality attributes and the ways they can affect people's behavior in organizational situations, not to mention their perceptions of and attitudes toward the organization.

the porter-lawler extension

An interesting extension of expectancy theory has been proposed by Porter and Lawler. Recall from Chapter 2 that the human relationists assumed that employee satisfaction causes good performance. We also noted that research has not supported such a relationship. Porter and Lawler suggested that there may indeed be a relationship between satisfaction and performance but that it goes in the opposite direction—that is, high performance may lead to high satisfaction. Figure 15.5 summarizes Porter and Lawler's logic. Performance results in rewards for an individual. Some of these are extrinsic (such as pay and promotions); others are intrinsic (such as self-esteem and accomplishment). The person evaluates the equity, or fairness, of the rewards relative to the effort expended and the level of performance attained. If the rewards are perceived to be equitable, the person is satisfied.

Withdrawal Behaviors - absenteeism and turnover

Another important type of work-related behavior is that which results in withdrawal— absenteeism and turnover absenteeism : When a person does not show up for work -The cause may be legitimate (illness, jury duty, death in the family, and so forth) or feigned (reported as legitimate but actually just an excuse to stay home). When an employee is absent, her or his work does not get done at all, or a substitute must be hired to do it. In either case, the quantity or quality of actual output is likely to suffer. -Obviously, some absenteeism is expected. The key concern of organizations is to minimize feigned absenteeism and to reduce legitimate absences as much as possible. High absenteeism may be a symptom of other problems as well, such as job dissatisfaction and low morale. turnover : When people quit their jobs -An organization usually incurs costs in replacing individuals who have quit, but if turnover involves especially productive people, it is even more costly. - Turnover seems to result from a number of factors, including aspects of the job, the organization, the individual, the labor market, and family influences. -In general, a poor person-job fit is also a likely cause of turnover. The current high levels of unemployment reduce employee-driven turnover, given that fewer jobs are available. But when unemployment is low (and there are many open jobs) turnover may naturally increase as people seek better opportunities, higher pay, and so forth. Efforts to directly manage turnover are often fraught with difficulty, even in organizations that concentrate on rewarding good performers. Of course, some turnover is inevitable, and in some cases it may even be desirable. For example, if the organization is trying to cut costs by reducing its staff, having people voluntarily choose to leave is preferable to having to terminate their jobs. And if the people who choose to leave are low performers or express high levels of job dissatisfaction, the organization may also benefit from turnover

understanding individuals in organizations

As a starting point in understanding human behavior in the workplace, we must consider the basic nature of the relationship between individuals and organizations. We must also gain an appreciation of the nature of individual differences.

Using Reward Systems to Motivate Performance

Aside from these types of motivational strategies, an organization's reward system is its most basic tool for managing employee motivation. reward system is the formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded. rewards that are tied specifically to performance, of course, have the greatest impact on enhancing both motivation and actual performance. Performance-based rewards play a number of roles and address a variety of purposes in organizations. The major purposes involve the relationship of rewards to motivation and to performance. Specifically, organizations want employees to perform at relatively high levels and need to make it worth their effort to do so. When rewards are associated with higher levels of performance, employees will presumably be motivated to work harder to achieve those awards. At that point, their own self-interests coincide with the organization's interests. Performance-based rewards are also relevant regarding other employee behaviors, such as retention and citizenship.

Machiavellianism

Behavior directed at gaining power and controlling the behavior of others -This concept is named after Niccolo Machiavelli, a sixteenth-century Italian political philosopher. In his book entitled The Prince, Machiavelli explained how the nobility could more easily gain and use power. Machiavellianism is now used to describe behavior directed at gaining power and controlling the behavior of others. Research suggests that Machiavellianism is a personality trait that varies from person to person. More Machiavellian individuals tend to be rational and nonemotional, may be willing to lie to attain their personal goals, may put little weight on loyalty and friendship, and may enjoy manipulating others' behavior. Less Machiavellian individuals are more emotional, less willing to lie to succeed, value loyalty and friendship highly, and get lit-tle personal pleasure from manipulating others. By all accounts, Dennis Kozlowski, the indicted former CEO of Tyco International who eventually served prison time, had a high degree of Machiavellianism. He apparently came to believe that his position of power in the company gave him the right to do just about anything he wanted with company resources.

Cognitive Abilities and Creativity

Cognitive abilities are an individual's power to think intelligently and to analyze situations and data effectively. Intelligence may be a precondition for individual creativity—although most cre-ative people are highly intelligent, not all intelligent people are necessarily creative. Creativity is also linked with the ability to think divergently and convergently. - Divergent thinking is a skill that allows people to see differences among situations, phenomena, or events. - Convergent thinking is a skill that allows people to see similarities among situations, phenomena, or events. Creative people are generally very skilled at both divergent and convergent thinking. Interestingly, Japanese managers have come to question their own creative abilities. The concern is that their emphasis on group harmony may have stifled individual initiative and hampered the development of individual creativity. As a result, many Japanese firms, includ-ing Omron Corporation, Fuji Photo, and Shimizu Corporation, have launched training programs intended to boost the creativity of their employees.

content perspective on motivation

Content perspectives on motivation deal with the first part of the motivation process—needs and need deficiencies. More specifically, content perspectives address the question, What factor or factors in the workplace motivate people? Labor leaders often argue that workers can be motivated by more pay, shorter working hours, and improved working conditions. Meanwhile, some experts suggest that motivation can be more effectively enhanced by providing employees with more autonomy and greater responsibility.8 Both of these views repre-sent content views of motivation. The former asserts that motivation is a function of pay, working hours, and working conditions; the latter suggests that autonomy and responsibility are the causes of motivation. Two widely known content perspectives on motivation are the needs hierarchy and the two-factor theory.

empowerment and participation

Empowerment and participation represent important methods that managers can use to enhance employee motivation. Empowerment is the process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority. Participation is the process of giving employees a voice in making decisions about their own work. Thus empowerment is a somewhat broader concept that promotes participation in a wide variety of areas, including but not limited to work itself, work context, and work environment. The role of participation and empowerment in motivation can be expressed in terms of both content perspectives and expectancy theory. Employees who participate in decision making may be more committed to executing decisions properly. Furthermore, the successful process of making a decision, executing it, and then seeing the positive consequences can help satisfy one's need for achievement, provide recognition and responsibility, and enhance self-esteem. Simply being asked to participate in organizational decision making also may enhance an employee's self-esteem. In addition, participation should help clarify expectancies; that is, by participating in decision making, employees may better understand the linkage between their performance and the rewards they want most.

Implications of the Process Perspectives

Expectancy theory can be useful for managers who are trying to improve the motivation of their subordinates. A series of steps can be followed to implement the basic ideas of the theory. First, figure out the outcomes each employee is likely to want. Second, decide what kinds and levels of performance are needed to meet organizational goals. Then make sure that the desired levels of performance are attainable. Also, make sure that desired outcomes and desired performance are linked. Next, analyze the complete situation for conflicting expectancies and ensure that the rewards are large enough. Finally, make sure the total system is equitable (fair to all). The single most important idea for managers to remember from equity theory is that if rewards are to motivate employees, they must be perceived as being equitable and fair. A second implication is that managers need to consider the nature of the "other" to whom the employee is comparing her- or himself. Goal-setting theory can be used to implement both expectancy and equity theory concepts.

Risk Propensity

The degree to which an individual is willing to take chances and make risky decisions -A manager with a high risk propensity, for example, might be expected to experi-ment with new ideas and gamble on new products. She might also lead the organization in new and different directions. This manager might also be a catalyst for innovation. On the other hand, the same person might also jeopardize the continued well-being of the organiza-tion if the risky decisions prove to be bad ones. A manager with low risk propensity might lead to a stagnant and overly conservative organization or help the organization successfully weather turbulent and unpredictable times by maintaining stability and calm. Thus the potential consequences of risk propensity to an organization are heavily dependent on that organization's environment.

outcomes and valances

Expectancy theory recognizes that a person's behavior results in a variety of outcomes, or consequences, in an organizational setting, usually rewards. A high performer, for example, may get bigger pay raises, faster promotions, and more praise from the boss. On the other hand, she may also be subject to more stress and incur resentment from coworkers. Each of these outcomes also has an associated value, or valence—an index of how much a person values a particular outcome. If the individual wants the outcome, its valence is positive; if the individual does not want the outcome, its valence is negative; and if the individual is indifferent to the outcome, its valence is zero. It is this part of expectancy theory that goes beyond the content perspectives on motivation. Different people have different needs, and they will try to satisfy these needs in different ways. For an employee who has a high need for achievement and a low need for affiliation, the pay raise and promotions that are outcomes of high performance might have positive valences, the praise and resentment zero valences, and the stress a negative valence. For a different employee, with a low need for achievement and a high need for affiliation, the pay raise, promotions, and praise might all have positive valences, whereas both resentment and stress could have negative valences. For motivated behavior to occur, three conditions must be met. First, the effort-to-performance expectancy must be greater than 0 (the person must believe that if effort is expended, high performance will result). The performance-to-outcome expectancy must also be greater than 0 (the peson must believe that if high performance is achieved, certain outcomes will follow). And the sum of the valences for the outcomes must be greater than 0. (One or more outcomes may have negative valences if they are more than offset by the positive valences of other out-comes. For example, the attractiveness of a pay raise, a pro-motion, and praise from the boss may outweigh the unattractiveness of more stress and resentment from coworkers.) Expectancy theory suggests that when these conditions are met, the person is motivated to expend effort.Starbucks credits its unique stock ownership program with maintaining a dedicated and motivated workforce. Based on the fundamental concepts of expectancy theory, Starbucks employees earn stock as a function of their seniority and performance. Thus their hard work helps them earn shares of ownership in the company

negative emotionality

Extent to which a person is poised, calm, resilient, and secure People with less negative emotionality will be relatively poised, calm, resilient, and secure. But people with more negative emotionality will be more excitable, insecure, reactive, and subject to extreme mood swings. People with less negative emotionality might be expected to better handle job stress, pressure, and tension. Their stability might also lead them to be seen as more reliable than their less stable counterparts.

expanded version of goal setting theory also includes

Goal acceptance : is the extent to which a person accepts a goal as his or her own. Goal commitment : is the extent to which she or he is personally interested in reaching the goal. The manager who vows to take whatever steps are necessary to cut costs by 10 percent has made a commitment to achieve the goal. Factors that can foster goal acceptance and commitment include participating in the goal-setting process, making goals challenging but realistic, and believing that goal achievement will lead to valued rewards. The interaction of goal-directed effort, organizational support, and individual abilities and traits determines actual performance. Organizational support is whatever the organization does to help or hinder performance. Positive support might mean making available adequate personnel and a sufficient supply of raw materials; negative support might mean failing to fix damaged equip-ment. Individual abilities and traits are the skills and other personal characteristics necessary for doing a job. As a result of performance, a person receives various intrinsic and extrinsic rewards, which in turn influence satisfaction. Note that the latter stages of this model are quite similar to the Porter and Lawler expectancy model discussed earlier

goal difficulty

Goal difficulty is the extent to which a goal is challenging and requires effort. If people work to achieve goals, it is reasonable to assume that they will work harder to achieve more difficult goals. But a goal must not be so difficult that it is unattainable. If a new manager asks her sales force to increase sales by 300 percent, the group may become disillusioned. A more realistic but still difficult goal—perhaps a 30 percent increase—would be a better incentive. A substantial body of research supports the impor-tance of goal difficulty. In one study, for example, managers at Weyerhaeuser set difficult goals for truck drivers hauling loads of timber from cutting sites to wood yards. Over a nine-month period, the drivers increased the quantity of wood they delivered by an amount that would have required $250,000 worth of new trucks at the previous per-truck average load.

goal specificity

Goal specificity is the clarity and precision of the goal. A goal of "increasing productivity" is not very specific; a goal of "increasing productivity by 3 percent in the next six months" is quite specific. Some goals, such as those involving costs, output, profitability, and growth, are readily amenable to specificity. Other goals, however, such as improving employee job satisfaction, morale, company image and reputation, ethics, and socially responsible behavior, may be much harder to state in specific terms. Like difficulty, specificity has been shown to be consistently related to performance. The study of timber truck drivers just mentioned, for example, also examined goal specificity. The initial loads the truck drivers were carrying were found to be 60 percent of the maximum weight each truck could haul. The managers set a new goal for drivers of 94 percent, which the drivers were soon able to reach. Thus the goal was both specific and difficult. Because the theory attracted so much widespread interest and research support from researchers and managers alike, an expanded model of the goal-setting process was eventually proposed. The expanded model, shown in Figure 15.6, attempts to capture more fully the complexities of goal setting in organizations.The expanded theory argues that goal-directed effort is a function of four goal attributes: difficulty and specificity, as already discussed, and acceptance and commitment.

individual human needs

In addition to these theories, research has focused on specific individual human needs that are important in organizations. The three most important individual needs are achievement, affiliation, and power The need for achievement, the best known of the three, is the desire to accomplish a goal or task more effectively than in the past. People with a high need for achievement have a desire to assume personal responsibility, a tendency to set moderately difficult goals, a desire for specific and immediate feedback, and a preoccupation with their task. David C. McClelland, the psychologist who first identified this need, argues that only about 10 percent of the U.S. population has a high need for achievement. In contrast, almost one-quarter of the workers in Japan have a high need for achievement. The need for affiliation is less well understood. Like Maslow's belongingness need, the need for affiliation is a desire for human companionship and acceptance. People with a strong need for affiliation are likely to prefer (and perform better in) a job that entails a lot of social interaction and offers opportunities to make friends. One recent survey found that workers with one or more good friends at work are much more likely to be committed to their work. United Airlines, for instance, allows flight attendants to form their own teams; those who participate tend to form teams with their friends. The need for power has also received considerable attention as an important ingredient in managerial success. The need for power is the desire to be influential in a group and to control one's environment. Research has shown that people with a strong need for power are likely to be superior performers, have good attendance records, and occupy supervisory positions. One study found that managers as a group tend to have a stronger power motive than the general population and that successful managers tend to have stronger power motives than less successful managers. The need for power might explain why Mark Hurd, the former CEO of Hewlett-Packard, took advantage of his power and role as head of the company in 2010. Hurd was forced to resign after a sexual harassment claim by a female contractor alleging that Hurd had used corporate funds for personal gains in attempts to woo her. The former CEO had submitted personal receipts ranging from $1,000 to $20,000 over a two-year period.

techniques and issues in empowerment

In recent years, many organizations have actively sought ways to extend participation beyond the traditional areas. Simple techniques, such as suggestion boxes and question-and-answer meetings, allow a certain degree of participation, for example. The basic motive has been to better capitalize on the assets and capabilities inherent in all employees. Thus many managers today prefer the term empowerment to participation because of its more comprehensive character. One method used to empower workers is the use of work teams. Such teams are collections of employees empowered to plan, organize, direct, and control their own work. Their supervisor, rather than being a traditional "boss," plays more the role of a coach. The other method for empowerment is to change the team's overall method of organizing. The basic pattern is for an organization to eliminate layers from its hierarchy, thereby becoming much more decentralized. Power, responsibility, and authority are delegated as far down the organization as possible, placing control over work squarely in the hands of those who actually do it. Regardless of the specific technique or method used, however, empowerment will enhance organizational effectiveness only if certain conditions exist. First of all, the organization must be sincere in its efforts to spread power and autonomy to lower levels of the organization. Token efforts to promote participation in only a few areas are not likely to succeed. Second, the organization must be committed to maintaining participation and empowerment. Workers will be resentful if they are given more control, only to later have it reduced or taken away altogether. Third, workers must truly believe that they and their managers are working together in their joint best interests. In some factory settings, for instance, high-performing workers routinely conceal the secrets of their high output. They fear that if management learns those secrets, it will use them to ratchet up performance expectations. In addition, the organization must be systematic and patient in its efforts to empower workers. Turning over too much control too quickly can spell disaster. And finally, the organization must be prepared to increase its commitment to training. Employees given more freedom in how they work will quite likely need additional training to help them exercise that freedom most effectively

Incentive Reward Systems

Incentive reward systems are among the oldest forms of performance-based rewards. For example, some companies were using individual piece-rate incentive plans over 100 years ago. Under a piece-rate incentive plan, the organization pays an employee a certain amount of money for every unit she or he produces. For example, an employee might be paid $1 for every dozen units of product that are successfully completed. But such simplistic systems fail to account for such facts as minimum wage levels and rely very heavily on the assumptions that performance is totally under a worker's control and that the employee does a single task continuously throughout his or her work time. Thus most organizations today that try to use incentive compensation systems use more sophisticated methodologies. Incentive Pay Plans Generally speaking, individual incentive plans reward individual performance on a real-time basis. In other words, rather than increasing a person's base salary at the end of the year, the worker instead receives some level of salary increase or financial reward in conjunction with demonstrated outstanding performance in close proximity to when that performance occurred. Individual incentive systems are most likely to be used in cases in which performance can be objectively assessed in terms of number of units of output or similar measures, rather than on a subjective assessment of performance by a superior. WD-40 Company uses an individual incentive plan that covers almost its entire workforce. The firm's managers credit the incentive plan with motivating its employees to perform at high levels during the 2008-2010 recession in ways that enabled the firm to achieve record profits. Some variations on a piece-rate system are still fairly popular. Although many of these still resemble the early plans in most ways, a well-known piece-rate system at Lincoln Electric illustrates how an organization can adapt the traditional model to achieve better results. For years, Lincoln's employees were paid individual incentive payments based on their per-formance. However, the amount of money shared (the incentive pool) was based on the company's profitability. There was also a well-organized system whereby employees could make suggestions for increasing productivity. There was motivation to do this because the employees received one-third of the profits (another third went to the stockholders, and the last share was retained for improvements and seed money). Thus the pool for incentive payments was determined by profitability, and an employee's share of this pool was a function of his or her base pay and rated performance based on the piece-rate system. Lincoln Electric was most famous, however, because of the stories (which were apparently typical) of production workers' receiving a year-end bonus payment that equaled their yearly base pay. In recent years, Lincoln has partially abandoned its famous system for business reasons, but it still serves as a benchmark for other companies seeking innovative piece-rate pay systems. Perhaps the most common form of individual incentive is sales commissions that are paid to people engaged in sales work. For example, sales representatives for consumer products firms and retail sales agents may be compen-sated under this type of commission system. In general, the person might receive a percentage of the total volume of attained sales as her or his commission for a period of time. Some sales jobs are based entirely on commission, whereas others use a combination of base minimum salary with additional commission as an incentive. Notice that these plans put a considerable amount of the salespersons' earnings "at risk." In other words, although organizations often have drawing accounts to allow the sales-person to live during lean periods (the person then "owes" this money back to the organization), if he or she does not perform well, he or she will not be paid much. The portion of salary based on commission is simply not guaranteed and is paid only if sales reach some target level.

The importance of employee motivation in the workplace

Individual performance is generally determined by three things: 1. motivation (the desire to do the job), 2. ability (the capability to do the job), 3. And the work environment (the resources needed to do the job). If an employee lacks ability, the manager can provide training or replace the worker. If there is a resource problem, the manager can correct it. But if motivation is the problem, the task for the manager is more challenging.3 Indi-vidual behavior is a complex phenomenon, and the manager may be hard pressed to figure out the precise nature of the problem and how to solve it. Thus motivation is important because of its significance as a determinant of performance and because of its intangible character

Chapter 15

Managing employee motivation and performance As the business world gets increasingly complex, so too are the challenges in motivating people to perform in various ways. For example, 20 years ago no one would have guessed that a business would one day be trying to motivate its employees to use social media more often, yet that is exactly what Bluewolf is striving to do. Regardless of the context, though, much of what managers today worry about is employee motivation, which is the subject of this chapter.

alternative forms of work arrangements

Many organizations today are also experimenting with a variety of alternative work arrangements. These alternative arrangements are generally intended to enhance employee motivation and performance by providing employees with greater flexibility in how and when they work. Among the more popular alternative work arrangements are variable work schedules, flexible work schedules, job sharing, and telecommuting.

Merit Reward Systems

Merit reward systems are among the most fundamental forms of performance-based rewards. Merit pay generally refers to pay awarded to employees on the basis of the relative value of their contributions to the organization. Employees who make greater contributions are given higher pay than those who make lesser contributions. Merit pay plans, then, are compensation plans that formally base at least some meaningful portion of compensation on merit. The most general form of merit pay plan is to provide annual salary increases to employees based on their relative merit. Merit, in turn, is usually determined or defined based on the person's performance and overall contributions to the organization. For example, an organization using such a traditional merit pay plan might instruct its supervisors to give all their employees an average pay raise of, say, 4 percent. But the individual supervisor is further instructed to differentiate among high, average, and low performers. Under a simple system, for example, a manager might give the top 25 percent of her employees a 6 percent pay raise, the middle 50 percent a 4 percent or average pay raise, and the bottom 25 percent a 2 percent pay raise.

The nature of motivation

Motivation: The set of forces that cause people to behave in certain ways On any given day, an employee may choose to work as hard as possible at a job, work just hard enough to avoid a reprimand, or do as little as possible. The goal for the manager is to maximize the likelihood of the first behavior and minimize the likelihood of the last. This goal becomes all the more important when we understand how important motivation is in the workplace.

Providing Reinforcement in Organizations

Not only is the kind of reinforcement important, but so is when or how often it occurs. Various strategies are possible for providing reinforcement. The fixed-interval schedule provides reinforcement at fixed intervals of time, regardless of behavior. A good example of this schedule is the weekly or monthly paycheck. This method provides the least incentive for good work because employees know they will be paid regularly regardless of their efforts. A variable-interval schedule also uses time as the basis for reinforcement, but the time interval varies from one reinforcement to the next. This schedule is appropriate for praise or other rewards based on visits or inspections. When employees do not know when the boss is going to drop by, they tend to maintain a reasonably high level of effort all the time. A fixed-ratio schedule gives reinforcement after a fixed number of behaviors, regardless of the time that elapses between behaviors. This results in an even higher level of effort. For example, when Sears is recruiting new credit card customers, salespersons get a small bonus for every fifth application returned from their department. Under this arrangement, motivation will be high because each application gets the person closer to the next bonus. The variable-ratio schedule, the most powerful schedule in terms of maintaining desired behaviors, varies the number of behaviors needed for each reinforcement. A supervisor who praises an employee for her second order, the seventh order after that, the ninth after that, then the fifth, and then the third is using a variable-ratio schedule. The employee is motivated to increase the frequency of the desired behavior because each performance increases the probability of receiving a reward. Of course, a variable-ratio schedule is difficult (if not impossible) to use for formal rewards such as pay because it would be too complicated to keep track of who was rewarded when. Managers wanting to explicitly use reinforcement theory to motivate their employees generally do so with a technique called behavior modification, or OB Mod. : Method for applying the basic elements of reinforcement theory in an organizational setting An OB Mod program starts by specifying behaviors that are to be increased (such as producing more units) or decreased (such as coming to work late). These target behaviors are then tied to specific forms or kinds of reinforcement. Although many organizations (such as Procter & Gamble and Ford) have used OB Mod, the best-known application was at Emery Air Freight. Management felt that the containers used to consolidate small shipments into fewer, larger shipments were not being packed efficiently. Through a system of self-monitored feedback and rewards, Emery increased container usage from 45 per-cent to 95 percent and saved over $3 million during the first three years of the program.

The creative individual

Numerous researchers have focused their efforts on trying to describe the common attributes of creative people. These attributes generally fall into three categories: background experiences, personal traits, and cognitive abilities.

Other Forms of Incentive

Occasionally organizations may also use other forms of incentives to motivate people. For example, a nonmonetary incentive, such as additional time off or a special perk, might be a useful incentive. For example, a company might establish a sales contest in which the sales group that attains the highest level of sales increase over a specified period of time will receive an extra week of paid vacation, perhaps even at an arranged place, such as a tropical resort or a ski lodge. A major advantage of incentives relative to merit systems is that incentives are typically a one-shot reward and do not accumulate by becoming part of the individual's base salary. Stated differently, a person whose outstanding performance entitles him or her to a financial incentive gets the incentive only one time, based on that level of performance. If the per-son's performance begins to erode in the future, then she or he may receive a lesser incentive or perhaps no incentive in the future. As a consequence, his or her base salary remains the same or is perhaps increased at a relatively moderate pace; he or she receives one-time incentive rewards as recognition for exemplary performance. Furthermore, because these plans, by their very nature, focus on one-time events, it is much easier for the organization to change the focus of the incentive plan. At a simple level, for example, an organization can set up an incentive plan for selling one product during one quarter, but then shift the incen-tive to a different product the next quarter, as the situation requires. Automobile companies like Ford and GM routinely do this by reducing sales incentives for models that are selling very well and increasing sales incentives for models that are selling below expectations or are about to be discontinued.

The Person - Job Fit

One specific aspect of managing psychological contracts is managing the person-job fit. The extent to which the contributions made by the individual match the inducements offered by the organization In theory, each employee has a specific set of needs that he wants fulfilled and a set of job-related behaviors and abilities to contribute. Thus, if the organization can take perfect advantage of those behaviors and abilities and exactly fulfill his needs, it will have achieved a perfect person-job fit. such a precise level of person-job fit is seldom achieved. There are several reasons for this. 1. organizational selection procedures are imperfect. - Organizations can make approximations of employee skill levels when making hiring decisions and can improve them through training. But even simple performance dimensions are often hard to measure in objective and valid ways. 2. both people and organizations change. - A person who finds a new job stimulating and exciting may find the same job boring and monotonous after a few years of per-forming it. And when the organization adopts new tech-nology, it changes the skills it needs from its employees. 3. each individual is unique. - Measuring skills and performance is difficult enough. Assessing needs, attitudes, and personality is far more complex. Each of these individual differences serves to make matching individuals with jobs a difficult and complex process.

Organizational Commitment and Engagement

Organizational Commitment: An attitude that reflects a person's identification with and attachment to the organization itself Organizational Engagement: The extent to which an employee sees him or herself as part of the organization, actively looks for ways to contribute to the organization, and is involved with the organization in multiple ways A person with high levels of commitment and engagement is likely to see herself as a true member of the organization (for example, referring to the organization in personal terms like "We make high-quality products"), to overlook minor sources of dissatisfaction with the organization, and to see herself remaining a member of the organization. In contrast, a person with less organizational commitment and engagement is more likely to see himself as an outsider (for example, referring to the organization in less personal terms like "They don't pay their employees very well"), to express more dissatisfaction about things, and to not see himself as a long-term member of the organization. Research also suggests that commitment and engagement strengthen with a person's age, years with the organization, sense of job security, and participation in decision making. Employees who feel committed to and engaged with an organization have highly reliable habits, plan a long tenure with the organization, and muster more effort in performance. Although there are few definitive things that organizations can do to create or promote commitment and engagement, there are a few specific guidelines available. For one thing, if the organization treats its employees fairly and provides reasonable rewards and job security, those employees will more likely be satisfied, committed, and engaged. Allowing employees to have a say in how things are done can also promote all three attitudes.

work related attitudes

People in organizations form attitudes about many different things. For example, employees are likely to have attitudes about their salaries, promotion possibilities, their bosses, employee benefits, the food in the company cafeteria, and the color of the company softball team uniforms. Of course, some of these attitudes are more important than others. Especially important attitudes are job satisfaction or dissatisfaction and organizational commitment.

Basic Perceptual Processes

Perception: The set of processes by which an individual becomes aware of and interprets information about the environment particularly relevant to organizations are selective perception and stereotyping.

The Nature of individual differences

Personal attributes that vary from one person to another Individual differences may be physical, psychological, or emotional. Taken together, all of the individual differences that characterize any specific person serve to make that person unique from everyone else. Are specific differences that characterize a given person good or bad? Do they contribute to or detract from performance? The answer, of course, is that it depends on the circumstances. One person may be very dissatisfied, withdrawn, and negative in one job setting, but very satisfied, outgoing, and positive in another. Working conditions, coworkers, and leadership are all important ingredients. whenever an organization tries to assess or account for individual differences among its employees, it must also be sure to consider the situation in which behavior occurs. Individuals who are satisfied or productive workers in one context may prove to be dissatisfied or unproductive workers in another context. Attempting to consider both individual differences and contributions in relation to inducements and contexts, then, is a major challenge for organizations as they try to establish effective psychological contracts with their employees and achieve optimal fits between people and jobs.

positive reinforcement and avoidance

Positive reinforcement: A method of strengthening behavior with rewards or positive outcomes after a desired behavior is performed When a manager observes an employee doing an especially good job and offers praise, the praise serves to positively reinforce the behavior of good work. Other positive reinforcers in organizations include pay raises, promotions, and awards. Employees who work at General Electric's customer service center receive clothing, sporting goods, and even trips to Disney World as rewards for outstanding performance. The other method of strengthening desired behavior is through avoidance : Used to strengthen behavior by avoiding unpleasant consequences that would result if the behavior were not performed An employee may come to work on time to avoid a reprimand. In this instance, the employee is motivated to perform the behavior of punctuality to avoid an unpleasant consequence that is likely to follow tardiness. 1. Positive Reinforcement. Strengthens behavior by providing a desirable consequence. 2. Avoidance. Strengthens behavior by allowing escape from an undesirable consequence.

Process Perspectives on Motivation

Process perspectives are concerned with how motivation occurs. Rather than attempting to identify motivational stimuli, process perspectives focus on why people choose certain behavioral options to satisfy their needs and how they evaluate their satisfaction after they have attained these goals. Three useful process perspectives on motivation are the expectancy, equity, and goal-setting theories.

punishment and extinction

Punishment : is used to weaken undesired behaviors by using negative outcomes or unpleasant consequences when the behavior is performed. When an employee is loafing, coming to work late, doing poor work, or interfering with the work of others, the manager might resort to reprimands, discipline, or fines. The logic is that the unpleasant consequence will reduce the likelihood that the employee will choose that particular behavior again. Given the counterproductive side effects of punishment (such as resentment and hostility), though, it is often advisable to use the other kinds ofreinforcement if at all possible. Extinction : can also be used to weaken undesirable behavior by simply ignoring or not reinforcing them, especially behavior that has previously been rewarded. When an employee tells an inappropriate joke and the boss laughs, the laughter reinforces the behavior and the employee may continue to tell inappropriate jokes. By simply ignoring this behavior and not reinforcing it, however, the boss may cause the behavior to subside and eventually become "extinct." 3. Punishment. Weakens behavior by providing an undesirable consequence. 4. Extinction. Weakens behavior by ignoring it.

implications of the reinforcement perspectives

Reinforcement in organizations can be a powerful force for maintaining employee motivation. Of course, for reinforcement to be truly effective, managers need to use it in a manner consistent with the various types and schedules of reinforcement discussed above. In addition, managers must understand that they may be inadvertently motivating undesired or dysfunctional behaviors. For instance, if an employee routinely comes to work late but experiences no consequences, both that worker and others will see that it is all right to be late for work.

Background experiences and creativity

Researchers have observed that many creative people were raised in environments in which creativity was nurtured. Mozart was raised in a family of musicians and began composing and performing music at age six. Pierre and Marie Curie, great scientists in their own right, also raised a daughter, Irene, who won the Nobel Prize in chemistry. Thomas Edison's creativity was nurtured by his mother. However, people with background experiences very different from theirs have also been creative. Frederick Douglass was born into slavery in Tuckahoe, Maryland, and had very limited opportunities for education. Nonetheless, his powerful oratory and cre-ative thinking helped lead to the Thirteenth Amendment to the U.S. Constitution, which outlawed slavery in the United States.

Affect and Mood in Organizations

Researchers have recently started to focus renewed interest on the affective component of attitudes. Recall from our preceding discussion that the affective component of an attitude reflects our feelings and emotions. Although managers once believed that emotion and feelings varied among people from day to day, research now suggests that, although some short-term fluctuation does indeed occur, there are also underlying stable predispositions toward fairly constant and predictable moods and emotional states. Positive Affectivity : A tendency to be relatively upbeat and optimistic, have an overall sense of well-being, see things in a positive light, and seem to be in a good mood. -It's also recently been proposed that positive affectivity may play a role in entrepreneurial success. Negative Affectivity : A tendency to be generally downbeat and pessimistic, see things in a negative way, and seem to be in a bad mood there can be short-term variations among even the most extreme types. People with a lot of positive affectivity, for example, may still be in a bad mood if they have just received some bad news—being passed over for a promotion, getting extremely negative performance feedback, or being laid off or fired, for instance. Similarly, those with negative affectivity may still be in a good mood—at least for a short time—if they have just been promoted, received very positive performance feedback, or had other good things befall them. A fter the initial impact of these events wears off, however, those with positive affectivity will generally return to their normal positive mood, whereas those with negative affectivity will gravitate back to their normal bad mood.

Stress and Individual Behavior

Stress: A person's response to a strong stimulus, which is called a stressor This stimulus is called a stressor. Stress generally follows a cycle referred to as the General Adaptation Syndrome (GAS) -General cycle of the stress process According to this view, when a person first encounters a stressor, the GAS is initiated, and the first stage, alarm, is activated. He may feel panic, wonder how to cope, and feel helpless. For example, suppose a manager is told to prepare a detailed evaluation of a plan by his firm to buy one of its competitors. His first reaction may be, "How will I ever get this done by tomorrow?" If the stressor is too intense, the person may feel unable to cope and never really try to respond to its demands. In most cases, however, after a short period of alarm, the person gathers some strength and starts to resist the negative effects of the stressor. For example, the manager with the evaluation to write may calm down, call home to say he is working late, roll up his sleeves, order out for coffee, and get to work. Thus, at stage 2 of the GAS, the person is resisting the effects of the stressor In many cases, the resistance phase may end the GAS. If the manager can complete the evaluation earlier than expected, he may drop it in his briefcase, smile to himself, and head home tired but satisfied. On the other hand, prolonged exposure to a stressor without resolution may bring on stage 3 of the GAS—exhaustion. At this stage, the person literally gives up and can no longer resist the stressor. The manager, for example, might fall asleep at his desk at 3:00 am. and never finish the evaluation. We should note that stress is not all bad. In the absence of stress, we may experience lethargy and stagnation. An optimal level of stress, on the other hand, can result in motivation and excitement. Too much stress, however, can have negative consequences. It is also important to understand that stress can be caused by "good" as well as "bad" things. Excessive pressure, unreasonable demands on our time, and bad news can all cause stress. But even receiving a bonus and then having to decide what to do with the money can be stressful. So, too, can receiving a promotion, gaining recognition, and similar good things.

Expectancy Theory

Suggests that motivation depends on two things—how much we want something and how likely we think we are to get it Assume that you are approaching graduation and looking for a job as a management trainee. You see in the want ads that General Motors is seeking a new vice president with a starting salary of $750,000 per year. Even though you might aspire to have this type of job one day, you will not apply now because you realize that you have very little chance of getting it. The next ad you see is for someone to scrape bubble gum from underneath theater seats for a starting salary of $8 an hour. Even though you could probably get this job, you do not apply because you do not want it. Then you see an ad for a management trainee at a big company, with a starting salary of $55,000. You may apply for this job because you want it and because you think you have a reasonable chance of getting it. Expectancy theory rests on four basic assumptions. First, it assumes that behavior is determined by a combination of forces in the individual and in the environment. Second, it assumes that people make decisions about their own behavior in organizations. Third, it assumes that different people have different types of needs, desires, and goals. Fourth, it assumes that people make choices from among alternative plans of behavior, based on their perceptions of the extent to which a given behavior will lead to desired outcomes. The model suggests that motivation leads to effort and that effort, combined with employee ability and environmental factors, results in performance. Performance, in turn, leads to various outcomes, each of which has an associated value, called its valence. The most important parts of the expectancy model cannot be shown in the figure, however. These are the individual's expectation that effort will lead to high performance, that performance will lead to outcomes, and that each outcome will have some kind of value.

The ERG theory

Suggests that people's needs are grouped into three possibly overlapping categories—existence, relatedness, and growth This theory collapses the needs hierarchy developed by Maslow into three levels. 1. Existence needs correspond to the physiological and security needs. 2. Relatedness needs focus on how people relate to their social environment. In Maslow's hierarchy, these would encompass both the need to belong and the need to earn the esteem of others. 3. Growth needs, the highest level in this schema, include the needs for self-esteem and self-actualization. Although the ERG theory assumes that motivated behavior follows a hierarchy in somewhat the same fashion as suggested by Maslow, there are two important differences. First, the ERG theory suggests that more than one level of need can cause motivation at the same time. For example, it suggests that people can be motivated by a desire for money (existence), friendship (relatedness), and the opportunity to learn new skills (growth) all at once. Second, the ERG theory has what has been called a frustration-regression element. Thus, if needs remain unsatisfied, the person will become frustrated, regress to a lower level, and begin to pursue those things again. For example, a worker previously motivated by money (existence needs) may have just been awarded a pay raise sufficient to satisfy those needs. Suppose that he then tries to establish more friendships to satisfy relatedness needs. If for some reason he finds that it is impossible to become better friends with others in the workplace, he eventually gets frustrated and regresses to being motivated to earn even more money

The two factor Theory

Suggests that people's satisfaction and dissatisfaction are influenced by two independent sets of factors—motivation factors and hygiene factors Frederick Herzberg developed his theory after interviewing 200 accountants and engineers. He asked them to recall occasions when they had been satisfied and motivated and occasions when they had been dissatisfied and unmotivated. Surprisingly, he found that different sets of factors were associated with satisfaction and with dissatisfaction—that is, a person might identify "low pay" as causing dissatisfaction but would not necessarily mention "high pay" as a cause of satisfaction. Instead, different factors—such as recognition or accomplishment—were cited as causing satisfaction and motivation. This finding led Herzberg to conclude that the traditional view of job satisfaction was incomplete. That view assumed that satisfaction and dissatisfaction are at opposite ends of a single continuum. People might be satisfied, dissatisfied, or somewhere in between. But Herzberg's interviews had identified two different dimensions altogether: one ranging from satisfaction to no satisfaction and the other ranging from dissatisfaction to no dissatisfaction. Note that the factors influencing the satisfaction continuum—called motivation factors—are related specifically to the work content. -achievement -recognition -the work itself - responsibility -advancement and growth The factors presumed to cause dissatisfaction—called hygiene factors—are related to the work environment. -supervisors -working conditions -Interpersonal relations -pay and security -company policies and administration Based on these findings, Herzberg argued that there are two stages in the process of motivating employees. First, managers must ensure that the hygiene factors are not deficient. Pay and security must be appropriate, working conditions must be safe, technical supervision must be acceptable, and so on. By providing hygiene factors at an appropriate level, managers do not stimulate motivation but merely ensure that employees are "not dissatisfied." Employees whom managers try to "satisfy" through hygiene factors alone will usu-ally do just enough to get by. Thus managers should proceed to ... stage two—giving employees the opportunity to experience motivation factors such as achievement and recognition. The result is predicted to be a high level of satisfaction and motivation. Herzberg also went a step further than most other theorists and described exactly how to use the two-factor theory in the workplace. Specifically, he recommended job enrichment, as discussed in Chapter 10. He argued that jobs should be redesigned to provide higher levels of the motivation factors. Although widely accepted by many managers, Herzberg's two-factor theory is not with-out its critics. One criticism is that the findings in Herzberg's initial interviews are subject to different explanations. Another charge is that his sample was not representative of the general population and that subsequent research often failed to uphold the theory. At the present time, Herzberg's theory is not held in high esteem by researchers in the field. The theory has had a major impact on managers, however, and has played a key role in increasing their awareness of motivation and its importance in the workplace.

Framework for Attribution

The basic framework around which we form attributions is consensus (the extent to which other people in the same situation behave the same way), consistency (the extent to which the same person behaves in the same way at different times), and distinctiveness (the extent to which the same person behaves in the same way in other situations). For example, suppose a manager observes that an employee is late for a meeting. The manager might further realize that he is the only one who is late (low consensus), recall that he is often late for other meetings (high consistency), and subsequently realize that the same employee is sometimes late arriving for work and returning from lunch (low distinctiveness). This pattern of attributions might cause the manager to decide that the person's behavior is something that should be changed. As a result, the manager might meet with the subordinate and establish some punitive consequences for future tardiness.

Organizational Citizenship

The behavior of individuals that makes a positive overall contribution to the organization Consider, for example, an employee who does work that is acceptable in terms of both quantity and quality. However, she refuses to work overtime, will not help newcomers learn the ropes, and is generally unwilling to make any contribution to the organization beyond the strict performance of her job. Although this person may be seen as a good performer, she is not likely to be seen as a good organizational citizen. Another employee may exhibit a comparable level of performance. In addition, however, he will always work late when the boss asks him to, will take time to help newcomers learn their way around, and is perceived as being helpful and committed to the organization's success. Although his level of performance may be seen as equal to that of the first worker, he is also likely to be seen as a better organizational citizen. The determinant of organizational citizenship behaviors is likely to be a complex mosaic of individual, social, and organizational variables. For example, the personality, attitudes, and needs of the individual will have to be consistent with citizenship behaviors. Similarly, the social context in which the person works, or the work group, will need to facilitate and promote such behaviors (we discuss group dynamics in Chapter 18). And the organization itself, especially its culture, must be capable of promoting, recognizing, and rewarding these types of behaviors if they are to be maintained. Although the study of organizational citizenship is still in its infancy, preliminary research suggests that it may play a powerful role in organizational effectiveness.

Self Esteem

The extent to which a person believes that he or she is a worthwhile and deserving individual A person with high self-esteem is more likely to seek high-status jobs, be more confident in her ability to achieve higher levels of performance, and derive greater intrinsic satisfaction from her accomplishments. In contrast, a person with less self-esteem may be more content to remain in a lower-level job, be less confident of his ability, and focus more on extrinsic rewards. Among the major personality dimensions, self-esteem is the one that has been most widely studied in other countries. Although more research is clearly needed, the published evidence does suggest that self-esteem as a personality trait does indeed exist in a variety of countries and that its role in organizations is reasonably important across different cultures.

authoritarianism

The extent to which a person believes that power and status differences are appropriate within hierarchical social systems like organizations For example, a person who is highly authoritarian may accept directives or orders from someone with more author-ity purely because the other person is "the boss." On the other hand, although a person who is not highly authoritarian may still carry out appropriate and reasonable directives from the boss, he or she is also more likely to question things, express disagreement with the boss, and even refuse to carry out orders if they are for some reason objectionable. A highly authoritar-ian manager may be autocratic and demanding, and highly authoritarian subordinates will be more likely to accept this behavior from their leader. On the other hand, a less authoritar-ian manager may allow subordinates a bigger role in making decisions, and less authoritar-ian subordinates will respond positively to this behavior.

Emotional Intelligence

The extent to which people are self-aware, manage their emotions, motivate themselves, express empathy for others, and possess social skills These various dimensions can be described as follows: • Self-Awareness. This is the basis for the other components. It refers to a person's capacity for being aware of how they are feeling. In general, more self-awareness allows people to more effectively guide their own lives and behaviors. • Managing Emotions. This refers to a person's capacities to balance anxiety, fear, and anger so that they do not overly interfere with getting things accomplished. • Motivating Oneself. This dimension refers to a person's ability to remain optimistic and to continue striving in the face of setbacks, barriers, and failure. • Empathy. Empathy refers to a person's ability to understand how others are feeling, even without being explicitly told. • Social Skill. This refers to a person's ability to get along with others and to establish positive relationships. Preliminary research suggests that people with high EQ may perform better than others, especially in jobs that require a high degree of interpersonal interaction and that involve influencing or directing the work of others. Moreover, EQ appears to be something that is not biologically based but can be developed.

goal setting theory

The goal-setting theory of motivation assumes that behavior is a result of conscious goals and intentions. Therefore, by setting goals for people in the organization, a manager should be able to influence their behavior. Given this premise, the challenge is to develop a thorough understanding of the processes by which people set goals and then work to reach them. In the original version of goal-setting theory, two specific goal characteristics—goal difficulty and goal specificity—were expected to shape performance.

The Human Relations approach to motivation

The human relationists emphasized the role of social processes in the workplace. Their basic assumptions were that employees want to feel useful and important, that employees have strong social needs, and that these needs are more important than money in motivating them. Advocates of the human relations approach advised managers to make workers feel important and allow them a modicum of self-direction and self-control in carrying out routine activities. The illusion of involvement and importance was expected to satisfy workers' basic social needs and result in higher motivation to perform. For example, a manager might allow a work group to participate in making a decision even though he or she had already determined what the decision would be. The symbolic gesture of seeming to allow participation was expected to enhance motivation, even though no real participation took place.

Human Resource Approach to motivation

The human resource approach to motivation carries the concepts of needs and motivation one step further. Whereas the human relationists believed that the illusion of contribution and participation would enhance motivation, the human resource view assumes that the contributions themselves are valuable to both individuals and organizations. It assumes that people want to contribute and are able to make genuine contributions. Management's task, then, is to encourage participation and to create a work environment that makes full use of the human resources available. This philosophy guides most contemporary thinking about employee motivation. At Ford, Westinghouse, Texas Instruments, and Hewlett-Packard, for example, work teams are being called on to solve a variety of problems and to make substantive contributions to the organization.

consequences of stress

The negative consequences may be behavioral, psychological, or medical. Behaviorally, for example, stress may lead to detrimental or harmful actions, such as smoking, alcohol or drug abuse, and overeating. Other stress-induced behaviors are accident proneness, violence toward self or others, and appetite disorders. Substance abuse is also a potential consequence. psychological consequences. These can interfere with a person's mental health and well-being. Problems include sleep disturbances, depression, family problems, and sexual dysfunction. Managers are especially prone to sleep disturbances when they experience stress at work. Medical consequences of stress affect an individual's physiological well-being. Heart disease and stroke have been linked to stress, as have headaches, backaches, ulcers and related disorders, and skin conditions such as acne and hives. Individual stress also has direct consequences for businesses. For an operating employee, stress may translate into poor-quality work and lower productivity. For a manager, it may mean faulty decision making and disruptions in working relationships. Withdrawal behaviors can also result from stress. People who are having difficulties with stress in their jobs are more likely to call in sick or to leave the organization. More subtle forms of withdrawal may also occur. A manager may start missing deadlines, for example, or taking longer lunch breaks. Employees may also withdraw by developing feelings of indifference. The irritation displayed by people under great stress can make them difficult to get along with. Job satisfaction, morale, and commitment can all suffer as a result of excessive levels of stress. So, too, can motivation to perform. Another consequence of stress is burnout -A feeling of exhaustion that may develop when someone experiences too much stress for an extended period of time Burnout results in constant fatigue, frustration, and helplessness. Increased rigidity follows, as do a loss of self-confidence and psychological withdrawal. The individual dreads going to work, often puts in longer hours but gets less accomplished than before, and exhibits mental and physical exhaustion. Because of the damaging effects of burnout, some firms are taking steps to help avoid it. For example, British Airways provides all of its employees with training designed to help them recognize the symptoms of burnout and develop strategies for avoiding it.

Conscientiousness

The number of things a person can effectively work on at one time People who focus on relatively fewer tasks and projects are likely to be organized, systematic, careful, thorough, responsible, and self-disciplined as they work to complete those tasks and projects. Others, however, tend to take on too many tasks and projects and/or to procrastinate and, as a result, are more disorganized, careless, and irresponsible, as well as less thorough and self-disciplined. Research has found that more conscientious people tend to be higher performers than less conscientious people across a variety of different jobs. This pattern seems logical, of course, because more conscientious people will take their jobs seriously and will approach the performance of their jobs in highly responsible fashions.

The Psychological Contract

The overall set of expectations held by an individual with respect to what he or she will contribute to the organization and what the organization will provide in return -A psychological contract is similar in some ways to a standard legal contract but is less formal and well defined -a psychological contract is not written on paper, nor are all of its terms explicitly negotiated. contributions :What the individual provides to the organization —effort, skills, ability, time, loyalty, skills, time, and competencies These contributions presumably satisfy various needs and requirements of the organization. In other words, because the organization may have hired the person because of her skills, it is reasonable for the organization to expect that she will subsequently display those skills in the performance of her job. inducements : What the organization provides to the individual Some inducements, like pay and career opportunities, are tangible rewards. Others, like job security and status, are more intangible. Just as the contributions available from the individual must satisfy the needs of the organization, the inducements offered by the organization must serve the needs of the individual. Thus, if a person accepts employment with an organization because he thinks he will earn an attractive salary and have an opportunity to advance, he will expect that those rewards will actually be forthcoming. If both the individual and the organization perceive that the psychological contract is fair and equitable, they will be satisfied with the relationship and will likely continue it. On the other hand, if either party sees an imbalance or inequity in the contract, they may initi-ate a change. For example, the worker may request a pay raise or promotion, decrease her contributed effort, or look for a better job elsewhere. The organization can also initiate change by requesting that the worker improve his skills through training, transfer him to another job, or terminate his employment altogether A basic challenge faced by the organization, then, is to manage psychological contracts. The organization must ensure that it is getting value from its employees. At the same time, it must be sure that it is providing employees with appropriate inducements. If the organization is underpaying its employees for their contributions, for example, they may perform poorly or leave for better jobs elsewhere. On the other hand, if they are being overpaid rela-tive to their contributions, the organization is incurring unnecessary costs.

Selective Perception

The process of screening out information that we are uncomfortable with or that contradicts our beliefs For example, suppose a manager is exceptionally fond of a particular worker. The manager has a very positive attitude about the worker and thinks he is a top performer. One day the manager notices that the worker seems to be goofing off. Selective perception may cause the manager to quickly forget what he observed. Similarly, suppose a manager has formed a very negative image of a particular worker. She thinks this worker is a poor performer and never does a good job. When she happens to observe an example of high performance from the worker, she, too, may not remember it for very long. In one sense, selective perception is beneficial because it allows us to disregard minor bits of information. Of course, this is helpful only if our basic perception is accurate. If selective perception causes us to ignore important information, however, it can become quite detrimental.

Performance Behaviors

The total set of work-related behaviors that the organization expects the person to display Thus they derive from the psychological contract. For some jobs, performance behaviors can be narrowly defined and easily measured. For example, an assembly-line worker who sits by a moving conveyor and attaches parts to a product as it passes by has relatively few performance behaviors. He or she is expected to remain at the workstation and correctly attach the parts. Performance can often be assessed quantitatively by counting the percentage of parts correctly attached. For many other jobs, however, performance behaviors are more diverse and much more difficult to assess. For example, consider the case of a research and development scientist at Merck. The scientist works in a lab trying to find new scientific breakthroughs that have commercial potential. The scientist must apply knowledge learned in graduate school with experience gained from previous research. Intuition and creativity are also important elements. And the desired breakthrough may take months or even years to accomplish. As we discussed in Chapter 13, organizations rely on a number of different methods for evaluating performance. The key, of course, is to match the evaluation mechanism with the job being performed.

Traditional approach to motivation

The traditional approach is best represented by the work of Frederick W. Taylor. As noted in Chapter 2, Taylor advocated an incentive pay system. He believed that managers knew more about the jobs being performed than did workers, and he assumed that economic gain was the primary thing that motivated everyone. Other assumptions of the traditional approach were that work is inherently unpleasant for most people and that the money they earn is more important to employees than the nature of the job they are performing. Hence, people could be expected to perform any kind of job if they were paid enough. Although the role of money as a motivating factor cannot be dismissed, proponents of the traditional approach took too narrow a view of the role of monetary compensation and failed to consider other motivational factors.

Historical Perspectives on Motivation

The traditional, human relations, and human resource approaches have each shed partial light on motivation.

Kinds of Reinforcement in Organizations

There are four basic kinds of reinforcement that can result from behavior—positive reinforcement, avoidance, punishment, and extinction. Two kinds of reinforcement strengthen or maintain behavior, whereas the other two weaken or decrease behavior.

common team and group reward systems

There are two commonly used types of team and group reward systems. One type used in many organizations is an approach called gainsharing. Gainsharing programs are designed to share the cost savings from productivity improvements with employees. The underlying assumption of gainsharing is that employees and the employer have the same goals and thus should appropriately share in incremental economic gains. In general, organizations that use gainsharing start by measuring team- or group-level productivity. It is important that this measure be valid and reliable and that it truly reflect current levels of performance by the team or group. The team or work group itself is then given the task of trying to lower costs and otherwise improve productivity through any measures that its members develop and its manager approves. Resulting cost savings or productivity gains that the team or group is able to achieve are then quantified and translated into dollar values. A predetermined formula is then used to allocate these dollar savings between the employer and the employees themselves. A typical formula for distributing gainsharing savings is to provide 25 percent to the employees and 75 percent to the company. One specific type of gainsharing plan is an approach called the Scanlon plan. This approach was developed by Joseph Scanlon in 1927. The Scanlon plan has the same basic strategy as gainsharing plans, in that teams or groups of employees are encouraged to suggest strategies for reducing costs. However, the distribution of these gains is usually tilted much more heavily toward employees, with employees usually receiving between two-thirds and three-fourths of the total cost savings that the plan achieves. Furthermore, the distribution of cost savings resulting from the plan is given not just to the team or group that suggested and developed the ideas, but across the entire organization.

The Myers-Briggs Framework

This framework, based on the classic work of Carl Jung, differentiates people in terms of four general dimensions. These are defined as follows. • Extraversion (E) Versus Introversion (I). Extraverts get their energy from being around other people, whereas introverts are worn out by others and need solitude to recharge their energy. • Sensing (S) Versus Intuition (N). The sensing type prefers concrete things, whereas intuitives prefer abstract concepts. • Thinking (T) Versus Feeling (F). Thinking individuals base their decisions more on logic and reason, whereas feeling individuals base their decisions more on feelings and emotions. • Judging (J) Versus Perceiving (P). People who are the judging type enjoy completion or being finished, whereas perceiving types enjoy the process and open-ended situations. To use this framework, people complete a questionnaire designed to measure their personality on each dimension. Higher or lower scores in each of the dimensions are used to classify people into one of 16 different personality categories.The Myers-Briggs Type Indicator (MBTI) is one popular questionnaire that some organizations use to assess personality types. Indeed, it is among the most popular selection instruments used today, with as many as 2 million people taking it each year. Research suggests that the MBTI is a useful method for determining communication styles and interaction preferences. In terms of personality attributes, however, questions exist about both the validity and the reliability of the MBTI.

Dysfunctional Behaviors

Those that detract from, rather than contribute to, organizational performance Two of the more common ones, absenteeism and turnover, have been mentioned. But other forms of dys-functional behavior may be even more costly for an organization. Theft and sabotage, for example, result in direct financial costs for an organization. Sexual and racial harassment also cost an organization, both indirectly (by lowering morale, producing fear, and driving off valuable employees) and directly (through financial liability if the organization responds inappropriately). So, too, can politicized behavior, intentionally misleading others in the organization, spreading malicious rumors, and similar activities. Incivility and rudeness can result in conflict and damage to morale and the organization's culture. Workplace violence is also a growing concern in some organizations. Violence by disgruntled workers or former workers results in dozens of deaths and injuries each year. The factors that contribute to workplace violence—not to mention the factors involved in increases and decreases—are difficult to pin down. However, many factors appear to contribute to potential violent behavior, including psychological disorders, a feeling of being disrespected by the organization, and a sense of hopelessness.

types of stress personalities

Type A : Individuals who are extremely competitive, very devoted to work, and have a strong sense of time urgency. -They are likely to be aggressive, impatient, and very work oriented. They have a lot of drive and want to accomplish as much as possible as quickly as possible. Type B : Individuals who are less competitive, less devoted to work, and have a weaker sense of time urgency -Such people are less likely to experience conflict with others and more likely to have a balanced, relaxed approach to life. They can work at a constant pace without time urgency. Type B people are not necessarily more or less successful than are Type A people, but they are less likely to experience stress.

job sharing

When two part-time employees share one full-time job One person may perform the job from 8:00 am. to noon and the other from 1:00 pm. to 5:00 pm. Job sharing may be desirable for people who want to work only part time or when job markets are tight. For its part, the organization can accommodate the preferences of a broader range of employees and may benefit from the talents of more people.

The effort-to-performance expectancy

is the individual's perception of the probability that effort will lead to high performance. When the person believes that effort will lead directly to high performance, expectancy will be quite strong (close to 1.00). When the person believes that effort and performance are unrelated, the effort-to-performance expectancy is very weak (close to 0). The belief that effort is somewhat but not strongly related to performance carries with it a moderate expectancy (somewhere between 0 and 1.00).

performance-to-outcome expectancy

is the individual's perception that performance will lead to a specific outcome. For example, if the person believes that high performance will result in a pay raise, the performance-to- outcome expectancy is high (approaching 1.00). The person who believes that high performance may lead to a pay raise has a moderate expectancy (between 1.00 and 0). The person who believes that performance has no relationship to rewards has a low performance-to- outcome expec-tancy (close to 0).