MGT Final

Disposition based trust

Disposition based trust

Being willing to trust others is one of your personality traits.

Measures Trust Propensity.

• A general expectation that the words, promises, and statements of individuals and groups can be relied upon.

Cognition based trust

Willingness to trust to based on a rational assessment of the authority’s trustworthiness

Derived from experience and data. “Track Record”

• Trustworthiness—the characteristics or attributes of a trustee

that inspire trust.

• Ability – skills and competencies and areas of expertise.

• Benevolence – the other wants to do good.

• Integrity – the authority adheres to an acceptable set of

values and principles

Affect based trust

Willingness to trust is based on feelings.

Trust rooted in emotion rather than reason.

• Based on an emotional bond with the trustee.

• Acts as a supplement to other types of trust.

Trust over time

First you get disposition trust, then cognition, then affect (very few relationships

Distributive justice

Reflects perceived fairness of decision-making outcomes.

• Gauged by perceived fairness of outcomes such as pay, promotions, and assignments.

• Equity typically the norm (that is, more inputs typically lead to more outcomes).

Procedural Justice

Reflects perceived fairness of decision-making

processes.

• Adherence to rules of fair process

interpersonal justice

Perceived fairness of the treatment employees receive from authorities.

• Goal is to eliminate abusive supervision

informational justice

Perceived fairness of communications employees receive from authorities.

• Goal is to minimize property and production deviance.

Ethics

Generally accepted norms of behavior

• Some studies of business ethics focus on two threads:

• Prescriptive – how people ought to behave.

• Descriptive – how people tend to behave

• Other studies focus on the following:

• Unethical behavior (discrimination, falsifying financial information).

• “Especially ethical” behavior (includes whistleblowing).

• “Merely ethical” behavior – minimally acceptable behavior.

Moral Awareness

When authorities recognize that a moral issue exists

• Recognizes that an ethical principle or code is relevant to the organization.

• Let’s think about employee theft and pay cut scenarios

Moral Attentiveness

Degree to which people chronically

perceive and consider issues of morality

during their experiences.

• Morally attentive authorities make the

ethical dimension explicit in their daily

work.

• E.g. inviting convicted white collar

criminals to address business students in

ethics classes.

Moral Judgement

The process people use to determine whether a

particular course of action is ethical or unethical.

• Stages of cognitive moral development.

• Preconventional stage focuses on consequences of

actions for the individual.

• Conventional stage references the expectations of

one’s family and society.

• Principled (post-convention) stage, the most

advanced, uses a set of defined, established moral

principles.

• These principles can be classified as being either:

• Consequentialist – judging the morality of an action

based on its goals or outcomes)

• Non-consequentialist – judging the morality of an

action based on its intrinsic desirability

Moral Intent

reflects an authority’s degree of commitment to the moral course of action.

Moral Identity

Degree to which a person self-identifies as a moral person.

• People with strong moral identitites define themselves as compassionate, generous, honest, kind, fair, and

hardworking.

• Emotional wellbeing is wrapped up in these virtues.

Importance of trust

Trust is a significant predictor of an employee’s ability to focus.

• Trust also influences citizenship behavior and counterproductive

behavior.

• Economic exchange relationships lack trust, and are narrowly

defined, quid pro quo obligations.

• Social exchange relationships have increased trust, and are

characterized by mutual investment, going above and beyond

expectations.

Motivation

A set of energetic forces

• originates both within and outside an employee,

• initiates work-related effort

• determines the direction, intensity, and persistence of the work

effort.

• What do you do?

• How hard do you do it?

• How long do you do it?

Engagement

Organizations seek to improve motivation.

• This is known as engagement

• Defined as high levels of intensity and persistence in work

effort

4 Theories of Motivation

Goal setting theory.

• Expectancy theory.

• Equity theory.

• Psychological empowerment.

Goal setting theory

Views Goals as the primary drivers of intensity and persistence of

effort.

• Motivation is fostered when employees are given specific and

difficult goals rather than

• no goals

• easy goals

• “do your best” goals.

• Specific and difficult Goals are internalized as self-set goals

Expectency Theory

Effort = Performance

• Describes cognitive process employees go through to make

choices among different voluntary responses.

• Motivation is fostered when the employee expects three things:

• That effort will result in performance.

• That performance will result in outcomes.

• That those outcomes will be valuable.

Instrumentality

The belief that successful performance will result in certain

outcomes.

• Can be hindered by:

• Inadequate budget to provide outcomes, even when performance is high.

• Use of policies that reward things other than performance, such as

attendance or seniority.

• Time delays in rewarding good performance.

Valence

Employees will value outcomes in one of 3 ways.

• Positive.

• Prefer having the outcome (salary increases, bonuses).

• Outcomes that satisfy needs are more positively valanced.

• Negative.

• Prefer not having the outcome (disciplinary action,

termination).

• Zero.

• No interest in the outcome either way (bored with

outcome).

Equity Theory

Motivation is maximized when an employee’s ratio of “outcomes”

to “inputs” matches those of some “comparison other.”

• Thus, motivation also depends on the outcomes received by other

employees.

• Motivation depends both on your beliefs and circumstances and

what happens to others whom you compare yourself to.

• Equity distress happens when there is an imbalance with the

comparison other.

Psychological Empowerment

An intrinsic form of motivation

• Based on the belief that one’s work tasks are contributing to some

larger purpose

• Fostered by four beliefs:

• Meaningfulness.

• Self-determination (sense of choice in initiation and continuation of tasks)

• Competence (personal belief in ability to execute task)

• Impact (sense of making a difference)

Stress

A psychological response to demands that possess certain stakes for the person.

They tax or exceed a persons capacity or resources

Transactional theory of stress

Theory to explain how stressors are perceived and appraised and how people respond.

Hinderance stressors

Hinderance stressors are factors that impede or obstruct our progress and well-being. They include excessive workload, conflicts with coworkers, and lack of resources or support. These stressors can hinder our ability to perform effectively and lead to feelings of frustration and burnout.

challenge stressors

Stressors that push us to grow and develop, often found in demanding tasks or situations. They can enhance motivation and performance by providing opportunities for learning and achievement.

primary appraisal

initial assessment of stressor and its affect on welbeing

secondary appraisal

Assesing how to respond

Benign job demands

job demand with low stress levels

Strain

Negative consequences from stress

physiological, psychological, behavioral

effects of hindrance stressors on performance and commitment

Trust to job performance and org commitment

Effects of hindrance stressors on performance and commitment

Effects of challenge stressors on perforamce and commitment

Stress management

Provide resources (training and support)

Reduce strain (relaxation, cognitive behavior techniques, health and wellness programs, employee assistance)

Reduce stressors (manage hindrance stressors, improve work life balance)

Organizational Culture

The shared social knowledge within an organization regarding the

The shared social knowledge within an organization regarding the

rules, norms, and values that shape the attitudes and behaviors of its

employees

• Organizational culture:

• Is learned from other employees.

• Tells employees what rules, norms, and values are in the

organization.

• Creates a system of control over employees.

Components of org culture

Observable artifacts.

• Espoused values.

• Basic underlying

assumptions.

Obervable artifacts

The manifestations of an organization’s culture that employees can easily see or talk about

• Symbols.

• Physical structures.

• Language.

• Stories.

• Rituals.

• Ceremonies.

Espoused Values

The beliefs, philosophies, ideals, aspirations, rationalizations,and

norms that a company explicitly states

• Espoused values may not always correspond with enacted values.

• Not all companies are open regarding their values.

• Which companies would not be open regarding their values?

• Is it impacted by their ownership structure?

• Is it impacted by their product?

Basic underlying assumptions

Taken-for-granted beliefs and philosophies are:

• So ingrained that employees simply act on them rather than questioning the validity of their

behavior in a given situation

• They are the least visible and deepest layer of organizational culture.

• Most difficult aspect of organizational culture to change.

• For example, safety as a consideration in an engineering firm.

General culture types

One popular general typology divides organizational culture along two dimensions: solidarity and

sociability

• High to Low Solidarity: the degree to which group members think and act alike.

• High to Low Sociability represents how friendly employees are to one another.

Organizational structure

Formally dictates how jobs and tasks are divided and

coordinated between individuals and groups within the

company

• Simple when a company has only 5 to 20 employees.

• Complex when an organization has tens of thousands

of employees.

Can have significant impact on financial performance and

ability to manage employees and products

Organizational Chart

An organizational chart is

• a drawing

• represents every job in the organization

• the formal reporting relationships between those jobs.

Organizational charts also show

• how work tasks,

• authority relationships,

• and decision-making responsibilities are organized within the company.

Elements of org structure

Work specialization

The degree to which tasks in an organization are divided into separate jobs

Chain of command

Answers the question of “who reports to whom?” and signifies formal authority relationships

Span of control

Represents how many employees each manager in the organization has responsibility for

Centralization

Refers to where decisions are formally made in organizations

Formalization

The degree to which rules and procedures are used to standardize behaviors and decisions in an organization

work specialization

The way in which tasks in an organization are divided into separate jobs

A never-ending trade-off among productivity, flexibility, and worker motivation

For Example: High specialization tends to:

Increase productivity.

Reduce flexibility by loss of other skills.

Lower motivation because of lack of variety.

chain of comand

Answers the question “Who reports to whom?”

Can be seen as specific flow of authority down through the levels of an organization’s structure

Helps organizations to attain order, control, and predictable performance

span of control

This represents how many employees a manager is responsible for in an organization.

Moderate span of control is considered best.

Narrow spans of control allow managers to be more hands-on with employees but require organizations to hire many managers.

Span of control affects how “tall” or “flat” an organizational chart is.

“Tall” organizations have more layers of management, meaning higher salaries, more

complex communications, and hierarchical decision making.

Trend has been for “flatter” organizational structures over past 30 years.

Centralization

Refers to where decisions are formally made in

Reflects where decisions are formally made in organizations

Highly centralized: Only the top managers have authority

to make final decisions.

Decentralized: Lower-level employees feel empowered to

make decisions.

Formalization

Refers to having many specific rules and procedures used to

standardize behaviors and decisions

Formalization is a necessary coordination mechanism relied on to

get standardized product or service.

Feeling of empowerment from decentralized decision making is

negated by high levels of formalization.

Leadership

Leadership is the use of power and influence to direct the

activities of followers toward goal achievement.

Power

Power is the ability to influence the behavior of others and resist unwanted influence in return.

 Just because a person has the ability to influence others does not mean they will choose to do so.

 Power can be seen as the ability to resist the influence attempts of others.

 Voicing a dissenting opinion.

 Refusing to perform a specific behaviour.

 Organizing an opposition group of coworkers.

Acquiring power

Organizational power derives from a person’s position within an

organization.

 Legitimate power is based on a position of authority in an organization.

 Reward power is based on control of resources or benefits.

 Coercive power is based on ability to punish.

 Personal power derives from the individual.

 Expert power is based on expertise, skill, or knowledge.

 Referent power exists when others have a desire to identify and be

associated with a person.

Legitimate power

based on a position of authority in an organization.

ethical guidelines

Stay within the rights your position holds.

• Communicate your request politely.

• Make sure you describe the purpose of your request

reward power(org)

Based on control of resources or benefits

ethical guidelines

Propose rewards that are attractive.

• Only offer what you can follow through on.

• Be clear on exactly what you are offering a reward for

coercive power (org)

based on ability to punish

ethical guidelines

Warn people prior to giving punishment.

• Make sure punishment is fair relative to the nature of the lack of compliance.

• Follow through quickly and without discrimination or bias

expert power (personal)

Based on expertise, skill, or knowledge

ethical guidelines

Put forth data or other evidence to support your proposal.

• Communicate why the request is important and the justification for it.

• Be consistent, thoughtful, and honest about requests.

Referent power (personal)

exists when others have a desire to identify and be

associated with a person.

ethical guidelines

Follow through on commitments.

• Do things for others even when not required to do so.

• Support and uphold others when called for

influence

The use of an actual behavior that causes

behavioral or attitudinal changes in others

 Influence flows in all directions (with the

following provisos)

 Influence most frequently flows downward

(managers influencing employees).

 Can also be lateral (peers influencing peers)

 Upward (employees influencing managers).

 Relativity: the degree of disparity between the

influencer and the influence.

4 contingency factors that impact a leader’s power

Substitutability Having alternative resources to access

Centrality The importance of a person’s job and how many others depend

on that position.

Discretion Ability to make decisions on their own

Visibility How aware others are of a leader and the resources that leader

can provide.

Most effective influence tactics

Leaders depend on a number of tactics to cause behavioral or attitudinal changes in others:

 Rational persuasion: Using logical arguments and facts.

 Inspirational appeal: Appealing to values and ideals to create an emotional reaction.

 Consultation: Allowing target to participate in decision.

 Collaboration: Working together to maximize outcomes.

Moderately effective influence tactics

Tactics that are sometimes effective:

 Ingratiation: Using favors, compliments, or friendly behaviour.

 Personal appeal: Appealing to personal friendship or loyalty.

 Apprising: Explaining how the target will personally benefit.

Least effective influence tactics

Least effective tactics:

 Pressure: Using coercive power through threats or demands.

 Coalitions: Enlisting others to help influence the target.

 Exchange tactic: Offering a reward or resource in return for performing a request

3 responses to influence attempts

Organizational Politics

Actions by individuals that are directed toward the goal of

furthering their own (narrow) self-interests.

 Comes at the expense of peers and the organization.

 Political skill: Understanding others at work and using that

knowledge to influence others in ways that enhance personal

and/or organizational objectives

 Networking ability

 Social astuteness

 Interpersonal influence

 Apparent sincerity

Networking ability

adeptness at identifying and developing contacts

Social Astuteness

Tendency to observe others and accurately interpret their behavior

interpersonal influence

having a personal style that is flexible enough to adapt to different situations

Apparent Sincerity

Appearing to others to have high levels of honesty and genuineness

Vesting (Ethical Political skills)

Seeking opportunities for mutual success

Longevity (Ethical Political skills)

investing in long-lasting bonds

Reliability (Ethical Political skills)

demonstrating competence and diligence

actions(Ethical Political skills)

engaging in consistent positive behavior

language (Ethical Political skills)

speaking positively of others

Stability (Ethical Political skills)

deminstrating emotional stability, self-awareness, and social skills

Causes and consequences of organizatinal politics

Conflict resolution factors

Conflict resolution is influenced by two factors:

 How assertive leaders want to be in pursuing

their own goals.

 How cooperative they are with regard to the

concerns of others.

Conflict

When two or more individuals perceive that their goals are in opposition

Approaches to conflict resolution

Five different styles of conflict resolution:

 Competing (high assertiveness, low cooperation).

 Avoiding (low assertiveness, low cooperation).

 Accommodating (low assertiveness, high cooperation.

 Collaboration (high assertiveness, high cooperation).

 Compromise (moderate assertiveness, moderate cooperation).

When to use competing (conflict resolution)

A quick decision is really important.

• When you believe you are right, other solutions are wrong, and there is no middle ground.

• When someone will try to leverage your unwillingness to compete against you.

When to use avoiding (conflict resolution)

If the issue is not as important as others from a timing perspective.

• When there is no acceptable alternative and you can’t win.

• Arriving at a solution will cause more strife than a solution is worth.

• When people’s emotions are running high and backing off might help come up with a resolution.

• If acquiring more information would help arrive at a better solution

When to use collaborating (conflict resolution)

When both parties have legitimate concerns and compromise won’t solve the problem.

• When different perspectives or learning might help arrive at a better alternative.

• To build commitment by working together toward a consensus decision

When to use accommodating (conflict resolution)

If you arrive at the conclusion that your choice or solution is wrong or that an alternative is

better.

• When you want to show that you are reasonable and/or to build up credit with others.

• When others care substantially more about the outcome than you do and the ongoing

relationship is important.

• If you are going to lose and want to preserve your dignity.

When to use compromising (conflict resolution)

When a strong approach isn’t worth the damage it might cause.

• If both parties are committed to their choices and they are equally powerful.

• Arriving at an interim solution allows you to examine a complicated issue more fully.

• When time pressure doesn’t allow for a protracted resolution.

• When other approaches haven’t worked.

Negotiations

A process in which two or more interdependent individuals discuss and attempt to come to an agreement about their different preferences

Distributive bargaining (Negotiation strat)

win-lose style with fixed pie, zero-sum conditions.

Integrative bargaining (Negotiation strat)

win-win style utilizing mutual respect and problem solving.

Negotiation Stages

Regardless of strategy used, negotiation typically goes through a series

of stages:

Preparation: Each party determines goals and alternatives.

Exchanging information: Each party makes a case for its position.

Bargaining: Both parties most likely make concessions.

Closing and commitment: The agreement is formalized.