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Organizational Behavior
Field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations
Human resource management
• Field of study that focuses on the applications of organizational behavior
theories and principles in organizations
Strategic management
• Field of study devoted to exploring the product choices and industry characteristics that affect an organization’s profitability
Resource-Based View of Organizations
A model that argues that rare and inimitable resources help firms maintain competitive advantage
Resources
• Inimitable – incapable of being imitated or copied
• History – a collective pool of experience, wisdom, and knowledge created by people that benefits the organization
• Numerous small decisions – people making small decisions every day that are
invisible to competitors
• Socially complex resources – resources created by people, such as culture, teamwork, trust, and reputation. The source of competitive advantage is known, but the method of replicating the advantage is unclear
Rule of One-Eighth
½ of managers in organizations will not believe the connection between management and profits
½ of managers who believe the connection will make a single change to solve problems
½ of managers will persist with comprehensive changes
Organizational Behavior Knowledge
Method of experience
• Theory that people hold firmly to some belief because it is consistent with their own experience and observations
Organizational Behavior Knowledge
Method of intuition
• Theory that people hold firmly to some belief because it “just stands to reason” – it seems obvious or self-evident
Organizational Behavior Knowledge
Method of authority
• Theory that people hold firmly to some belief because some respected official, agency, or source has said it is so
Organizational Behavior Knowledge
Method of science
• Theory that people accept some belief because scientific studies have tended to replicate that result using a series of samples, settings, and methods
The Scientific Method
Theory
• A collection of verbal and symbolic assertions that specify how and why variables are related, as well as the conditions in which they should (and should not) be related
Hypotheses
• Written predictions that specify relationships between variables
Correlation (r)
• Describes the statistical relationship between two variables
• r can range from 0 (no statistical relationship) to |1| (perfect statistical relationship)
• Basis of much of organizational behavior research
• Correlation does not imply causation
The Scientific Method PT. 2
Meta-analysis
• A method that combines the results of multiple scientific studies by essentially calculating a weighted average correlation across studies (with larger studies receiving more weight than smaller studies)
Evidence-based management
• A perspective that argues that scientific findings should form the foundation for management education
Job Performance
Employee behaviors that contribute either positively or negatively to the accomplishment of organizational goals
Task Performance
Employee behaviors that are directly involved in the transformation of organizational resources into the goods or services that the organization produces
Routine task performance
• Well-known or habitual responses by employees to predictable task demands
Adaptive task performance
• Thoughtful responses by an employee to unique or unusual task demands
Creative task performance
• The degree to which individuals develop ideas or physical outcomes that are both novel and useful
Job Analysis
A process by which an organization determines requirements of specific jobs
Citizenship Behavior
Voluntary employee behaviors that contribute to organizational goals by improving the context in which work takes place
Organizational citizenship behavior
• Going beyond normal expectations to improve operations of the organization, as well as defending the organization and being loyal to it
Interpersonal citizenship behavior
• Going beyond normal job expectations to assist, support, and develop coworkers and colleagues
Types of Organizational Citizenship Behavior
Voice
• When an employee speaks up to offer constructive suggestions for change, often in reaction to a negative work event
Civic virtue
• Participation in company operations at a deeper-than-normal level through voluntary meetings, readings, and keeping up with news that affects the company
Boosterism
• Positively representing the organization when in public
Types of Interpersonal Citizenship Behavior
Helping
• Assisting coworkers who have heavy work loads, aiding them with personal matters, and showing new employees the ropes when they first arrive on the job
Courtesy
• Sharing important information with coworkers
Sportsmanship
• Maintaining a positive attitude with coworkers through good and bad times
Counterproductive Behavior
Employee behaviors that intentionally hinder organizational goal accomplishment
Types of counterproductive behavior
• Property deviance – behaviors that harm the organization’s assets and possessions (e.g., sabotage)
• Theft – stealing company products or equipment from the organization
• Production deviance – intentionally reducing organizational efficiency of work output (e.g., wasting resources, substance abuse)
• Political deviance – behaviors that intentionally disadvantage other individuals (e.g., gossiping, incivility)
• Personal aggression – hostile verbal and physical actions directed toward other employees (e.g., harassment, abuse)
Trends Affecting Performance Knowledge work
• Jobs that primarily involve cognitive activity versus physical activity
• Becoming more prevalent than jobs involving physical activity
Trends Affecting Performance Service work
• Providing a service that involves direct verbal or physical interactions with customers
• About 55% of the economic activity in the United States
Application of Performance Management
Management by objectives (MBO)
• A management philosophy that bases employee evaluations on whether specific performance goals have been met
Application of Performance Management
Behaviorally anchored rating scales (BARS)
• Use of examples of critical incidents to evaluate an employee’s job performance behaviors directly
Application of Performance Management
360-degree feedback
• A performance evaluation system that uses ratings provided by supervisors, coworkers, subordinates, customers, and the employees themselves
Application of Performance Management Forced ranking
• A performance management system in which managers rank subordinates relative to one another
There are three main types of task performance
• Routine – predictable task demands
• Adaptive – unusual or unique task demands
• Creative – novel and useful outcomes
Organizational commitment
• An employee’s desire to remain a member of an organization
Withdrawal behavior
• Employee actions that are intended to avoid work situations
Focus of Commitment
The people, places, and things that can inspire a desire to remain a member of an organization
Affective commitment
• An employee’s desire to remain a member of an organization due to a feeling of emotional attachment
Continuance commitment
• An employee’s desire to remain a member of an organization due to an awareness of the costs of leaving
Normative commitment
• An employee’s desire to remain a member of an organization due to a feeling of obligation
Affective Commitment
An employee’s desire to remain a member of an organization due to a feeling of emotional attachment
Erosion model
• A model that suggests that employees with fewer bonds with coworkers are more likely to quit the organization than employees with more bonds with coworkers
Social influence model
• A model that suggests that employees with direct linkages to coworkers
who leave the organization will themselves become more likely to leave
Embeddedness
• An employee’s connection to and sense of fit in the organization and community
Exit
• A response to a negative work event by which one becomes often absent from work or voluntarily leaves the organization
Voice
• When an employee speaks up to offer constructive suggestions for change, often in reaction to a negative work event
Loyalty
• A positive response to a negative work event in which one publicly supports the situation but privately hopes for improvement
Neglect
• A passive, destructive response to a negative work event in which one’s interest and effort in work decline
Psychological withdrawal
• Mentally escaping the work environment
• Examples: daydreaming, socializing, looking busy, cyberloafing
Physical withdrawal
• A physical escape from the work environment
• Examples: tardiness, long breaks, missing meetings, absenteeism, quitting, exit
Independent forms model
• A model that predicts that the various withdrawal behaviors are uncorrelated; engaging in one type of withdrawal has little bearing on engaging in other types
Compensatory forms model
• A model indicating that the various withdrawal behaviors are negatively correlated; engaging in one type of withdrawal makes one less likely to engage in other types
Progression model
• A model indicating that the various withdrawal behaviors are positively correlated; engaging in one type of withdrawal makes one more likely to engage in other types
Types of Employees
Stars
• High commitment and high performance; role models
Citizens
• High commitment and low task performance; high citizenship behaviors
Lone wolves
• Low commitment and high task performance; motivated to achieve work goals for themselves instead of their organizations
Apathetics
• Low commitment and low task performance; minimum effort to keep jobs
Perceived organizational support
• The degree to which employees believe that the organization values their
contributions and cares about their well-being
Practices to increase commitment
• Increasing the bonds that link employees together (affective commitment)
• Create a salary and benefits package that creates a financial need to stay (continuance commitment)
• Provide various training and development opportunities for employees (normative commitment)
Job Satisfaction
A pleasurable emotional state resulting from the appraisal of one’s job or job experiences
Represents how a person feels and thinks about his or her job
Values
• Things that people consciously or unconsciously want to seek or attain
Value-percept theory
• A theory that argues that job satisfaction depends on whether the
employee perceives that his or her job supplies those things that he or she
values
Dissatisfaction =
(Vwant – Vhave) × (Vimportance)
Pay satisfaction
• Employees’ feelings about the compensation for their jobs
Promotion satisfaction
• Employees’ feelings about how the company handles promotions
Supervision satisfaction
• Employees’ feelings about their boss, including his or her competency,
communication, and personality
Coworker satisfaction
• Employees’ feelings about their coworkers, including their abilities and
personalities
Satisfaction with the work itself
• Employees’ feelings about their actual work tasks
The changing employee-employer relationship
• Loyalty has decreased over time for employees and organizations
• Psychological contracts – employee beliefs about what employees owe the organization and what the organization owes them
• Transactional contracts – psychological contracts that focus on a narrow set of specific monetary obligations
• Relational contracts – psychological contracts that focus on a broad set of open-ended and subjective obligations
Meaningfulness of work
• A psychological state reflecting one’s feelings about work tasks, goals, and purposes, and the degree to which they contribute to society and fulfill one’s ideals and passions
Responsibility for outcomes
• A psychological state indicating the degree to which employees feel they are key drivers of the quality of work output
Knowledge of results
• A psychological state indicating the extent to which employees are aware
of how well or how poorly they are doing
Job Characteristics Theory
A theory that argues that five core characteristics combine to result in high levels of satisfaction with the work itself
Characteristics
• Variety
• Identity
• Significance
• Autonomy
• Feedback
Job Characteristics Theory
Variety
• The degree to which a job requires different activities and skills
Identity
• The degree to which a job offers completion of a or whole, identifiable piece of work
Significance
• The degree to which a job really matters and impacts society as a whole