Organizational Behavior: Emotions, Job Attitudes, Performance, and Motivation

Emotional intelligence (EQ)

A set of abilities to recognize and regulate our own emotions and the emotions of others

Four components of EQ

Awareness of own emotions; awareness of others' emotions; management of own emotions; management of others' emotions

Awareness of own emotions

Ability to perceive and understand one's own emotions; the foundation for other aspects of EQ (e.g., telling shame from anger)

Awareness of others' emotions

Ability to recognize and understand others' emotions, including empathy

Empathy

Ability to feel others' emotions; drives pro-social behavior such as helping

Management of own emotions

Ability to feel (or not feel) and display (or not display) certain emotions (e.g., panic to calm; excited but not too anxious in an interview)

Emotional labor

Display of organizationally desirable emotions

Management of others' emotions

Ability to help others generate positive/effective emotional energy (e.g., a leader keeping the team optimistic; a first responder reducing fear)

Allen et al. (2020) EQ vs IQ finding

Both IQ and EQ matter for entrepreneurship success, but the relationship is more than twice as large for EQ

Job attitude

A collection of opinions, beliefs, and feelings about one's work or employer

Job satisfaction

The feeling of contentment deriving from the job ("I like my job")

Brown & Peterson (1993) satisfaction findings

Pay r = .18; job-related factors (role clarity, feedback, participation) r = about .40

Organizational commitment

Psychological attachment to one's organization (loyalty, commitment to its mission)

Affective commitment

Emotional bond: "I want to stay"

Normative commitment

Perceived obligation: "I ought to stay" (e.g., Japanese culture)

Continuance commitment

No better alternatives: "I have to stay" (e.g., Hertz executives, 2021)

Which commitment predicts job performance?

Affective (not continuance) commitment

EVLN model (Hirschman, 1970)

Responses to job dissatisfaction: Exit, Voice, Loyalty, Neglect

Exit (EVLN)

Leaving the situation: quitting, transferring

Voice (EVLN)

Changing the situation: problem solving, complaining

Loyalty (EVLN)

Patiently waiting for the situation to improve

Neglect (EVLN)

Reducing work effort or quality; increasing absenteeism

Task performance (in-role performance)

Performance on tasks and activities required by the job role (e.g., sales, quantity/quality of output)

Organizational citizenship behavior (OCB)

Behavior not specified in the job prescription that contributes to the well-being of the organization and/or its members

Individual-directed OCB (examples)

Helping colleagues with a heavy load; sharing knowledge

Organization-directed OCB (examples)

Volunteering for promotion events; proposing ideas to improve routines

Counterproductive work behavior (CWB)

Voluntary behaviors that harm the interest of the organization and/or its members

Individual-directed CWB (examples)

Being rude to a coworker; hiding information from a colleague

Organization-directed CWB (examples)

Stealing office supplies; overreporting work hours

Tool to capture OCB and CWB

360-degree feedback

Needs hierarchy theory (Maslow, 1943) - core idea

The lowest unmet need is strongest until satisfied; then the next higher need becomes the top motivator

Maslow's five-level hierarchy (low to high)

Physiological; safety; belongingness and love; esteem; self-actualization (plus needs to know and needs for beauty)

Problems with Maslow's theory

Lacks empirical support; people have unique needs hierarchies (no universal one)

Maslow's contribution

Humanistic/positive perspective; social dynamics (not just instinct) influence motivation; emphasized self-actualization

Self-determination theory (Deci & Ryan, 1985)

If the basic needs of autonomy, competency, and belongingness are satisfied, employees have higher intrinsic motivation

Intrinsic motivation

Motivated to do an activity for the pleasure deriving from it

Extrinsic motivation

Motivated to receive material and instrumental rewards (e.g., bonus, promotion)

SDT need for autonomy

Desire to make independent decisions (when and how to do work); e.g., Airbnb engineers choosing what to work on

SDT need for competency

Desire to master a task and learn skills; e.g., Toyota's kaizen

SDT need for affiliation

Desire for approval from and connection with others; e.g., Salesforce's Ohana culture

Expectancy theory formula

Motivation = E-P expectancy x P-O expectancy x valence

E-to-P expectancy

Probability that a specific effort level will result in a specific performance level

P-to-O expectancy (instrumentality)

Probability that a specific performance level will result in specific outcomes

Valence

Anticipated satisfaction from the outcome

How to increase E-to-P expectancy

Hire right people; assign roles by skills; provide training, coaching, and resources

How to increase P-to-O expectancy

Performance-based rewards (measure performance accurately); explain how rewards are linked to performance

How to increase valence

Ensure rewards are valued; tailor rewards to each employee; offer multiple reward types

Social cognitive theory (Bandura)

Individuals learn from others' behavior and its consequences; most learning occurs through observing rather than doing

Self-regulation

People set their own goals and reinforce their own behavior (self-reinforcement); contrasts with behaviorism

Self-efficacy

Subjective belief that one can successfully perform a specific task; not the same as competency but affects outcomes beyond it

Sources of self-efficacy

Own experiences (success/failure); social interactions (encouragement); observations (role modeling)

Self-efficacy examples from slides

Park Se-ri and Korean female golfers; Taylor Fritz on U.S. men's tennis; Fujian entrepreneurs

Social cognitive theory practical implications

Let employees set their own developmental goals (Google); build an encouraging social environment; lead by example

Equity theory (Adams, 1963)

Employees compare their own outcome/input ratio to another person's; equal = equity (high motivation), unequal = inequity (low motivation)

Outcomes in equity theory

Pay/benefits, promotion, bonuses, recognition, office space, opportunities

Inputs in equity theory

Performance, hours, effort, skills, education, experience

Responses to feeling underpaid

Change own outcome (ask for raise; CWBs); change own input (reduce effort); change other's outcome or input; change comparison target; quit

Responses to being overpaid

Did not increase or decrease motivation; some feel guilty and work more; many alter perceptions to feel equity

UAW/GM strike 2019 (equity example)

Full-time workers got profit-sharing over $10,000 while temporary workers got nothing, causing hard feelings

Stress

Adaptive process of responding to situations perceived as challenging or threatening to well-being

General Adaptation Syndrome stages

1) Alarm reaction (fight-or-flight, cortisol); 2) Resistance (recovery, lower cortisol, alert); 3) Exhaustion (prolonged stress)

Burnout

Result of chronic stress: exhaustion (fatigue), cynicism/detachment, reduced efficacy/accomplishment

Eustress

Low-to-moderate stress that helps you stay focused, energetic, and alert; tied to growth and challenge

Distress

High and sustained stress that hinders functioning and harms mental and physical health

Challenge stressors (examples)

Task complexity, job responsibilities, time pressure

Hindrance stressors (examples)

Role conflict/ambiguity, politics, red tape

LePine et al. (2015) challenge vs hindrance

Challenge: strain .23, motivation .22, performance .21. Hindrance: strain .50, motivation -.19, performance -.19

Four workplace stressors

Work overload; low task control; organizational constraints; interpersonal conflict (all but overload are hindrance stressors)

Cognitive appraisal theory (Lazarus & Folkman, 1984)

Our interpretation of a stressful situation is key to its consequences: stressor + resources -> appraisal -> coping -> outcomes

Threat vs challenge appraisal

Threat: negative attitude, little effort, more likely to fail. Challenge: positive attitude, more effort, more likely to succeed

Problem-focused coping

Approach the problem: planning, active management, seeking advice/support

Emotion-focused coping

Seeking emotional comfort: venting, positive framing, acceptance, self-blame

Avoidance coping

Denial, distraction, disengagement; avoiding the stressor makes it more stressful later

Job stress effects: cognitive and emotional

Memory problems, poor concentration, poor judgment, seeing only negatives; moodiness, irritability, loneliness, depression

Job stress effects: physical

Headaches, muscle aches, sleep problems, substance abuse; heart disease, diabetes, cancer

UCL finding on long work hours

Over 55 hrs/week: 13% greater heart attack risk and 33% more likely to have a stroke vs. 35-40 hrs

Cost of job stress to employers/society

$300-500 billion per year in the U.S.; turnover, absenteeism, lower productivity, medical costs; at least 120,000 deaths per year

American Institute of Stress (2023) stats

94% of U.S. workers report work stress; 33% extreme stress; 63% ready to quit to avoid it

Five ways individuals manage job stress

Remove the stressor; withdraw (permanently or temporarily); change perceptions (reappraise, humor); control consequences (diet, sleep, exercise); social support

How organizations can reduce job stress

Increase autonomy/control; ensure skills and training; improve working conditions; healthy schedules; work-family support; wellness incentives

Total compensation model

Fixed pay (base); variable pay (bonuses, incentives, commissions, profit-sharing); benefits; work-life balance

Seniority-based rewards

Pay proportional to tenure (e.g., Walmart raises per year; MU pension = salary x 2.2% x years of service)

Seniority pay: pros and cons

Pros: financial security, less turnover. Cons: little performance motivation; keeps poor performers; golden handcuffs for high performers

Status-based rewards

Higher pay for higher-valued jobs (position, responsibility, skills, effort); e.g., doctor vs. nurse, CEO pay

Status pay: pros and cons

Pros: pay fairness (equity theory); motivates promotion competition. Cons: status hierarchy hinders collaboration; unhealthy competition

Competency-based rewards

Pay based on knowledge, skills, and abilities (KSA), e.g., education, CPA; Google considers education, skills, experience, location

Competency pay: pros and cons

Pros: motivates learning; flexible workforce. Cons: complex and subjective (fairness); higher training costs

Performance-based rewards

Pay linked to individual (bonuses, piece rates, commissions), team (team incentives, gain sharing), or organizational performance (ESOPs, profit-sharing)

Benefits of performance-based pay

Motivates performance and OCB; viewed as fair (equity theory); retains high performers

D.C. IMPACT system

Pay-for-performance for teachers (Michelle Rhee): highly effective teachers get bonuses up to $25,000 and base pay boosts up to $27,000; ineffective risk dismissal

Dan Price / Gravity Payments

Paid all employees (including himself) $70,000; employees later took voluntary pay cuts instead of layoffs

Principles for designing compensation

Competitive (equity); performance-based (equity, expectancy); transparent and consistent (expectancy, equity)