Organization Behehaviour Introduction

Session 2
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Demonstrate the Importance of
Interpersonal Skills in the Workplace
Interpersonal skills are important because…
• ‘Good places to work’ have better financial performance.
• Better interpersonal skills result in lower turnover of quality
employees and higher quality applications for recruitment.
• There is a strong association between the quality of
workplace relationships and job satisfaction, stress, and
turnover.
• It fosters social responsibility awareness.
Describe the Manager’s Functions,
Roles, and Skills (1 of 4)
• Manager: Someone who gets things done through other
people in organizations.
• Organization: A consciously coordinated social unit
composed of two or more people that functions on a
relatively continuous basis to achieve a common goal or
set of goals.
– Planning, organizing, leading, and controlling.
• Mintzberg concluded that managers perform ten different,
highly interrelated roles or sets of behaviors attributable to
their jobs.
Exhibit 1-1 Minztberg’s Managerial Roles
Role Description
Interpersonal Blank
Figurehead Symbolic head; required to perform a number of routine duties of a legal
or social nature
Leader Responsible for the motivation and direction of employees
Liaison Maintains a network of outside contacts who provide favors and
information
Informational Blank
Monitor Receives a wide variety of information; serves as nerve center of
internal and external information of the organization
Disseminator Transmits information received from outsiders or from other employees
to members of the organization
[Exhibit 1-1 Continued]
Role Description
Spokesperson Transmits information to outsiders on organization’s plans,
policies, actions, and results; serves as expert on organization’s
industry
Decisional Searches organization and its environment for opportunities and
initiates projects to bring about change
Entrepreneur Responsible for corrective action when organization faces
important, unexpected disturbances
Resource allocator Makes or approves significant organizational decisions
Negotiator Responsible for representing the organization at major
negotiations
Source: H. Mintzberg, The Nature of Managerial Work, 1st ed., © 1973, pp. 92–93. Reprinted and electronically
reproduced by permission of Pearson Education, Inc., New York, NY.
• Management Skills
– Technical Skills – the ability to apply specialized
knowledge or expertise. All jobs require some
specialized expertise, and many people develop their
technical skills on the job.
– Human Skills – the ability to work with, understand,
and motivate other people.
– Conceptual Skills – the mental ability to analyze and
diagnose complex situations.
Define Organizational Behavior
Organizational behavior (OB) is a field of study that
investigates the impact that individuals, groups, and
structure have on behavior within organizations for the
purpose of applying such knowledge toward improving
an organization’s effectiveness.
Session 3
Identify the Major Behavioral Science
Disciplines That Contribute to OB (1 of 4)
• Organizational behavior is an applied behavioral science
that is built upon contributions from a number of behavioral
disciplines:
– Psychology
– Social psychology
– Sociology
– Anthropology
Exhibit 1-3 Toward an OB
Discipline
• Psychology
– seeks to measure, explain, and sometimes change
the behavior of humans and other animals.
• Social psychology
– blends the concepts of psychology and sociology.
• Sociology
– studies people in relation to their social environment
or culture.
• Anthropology
– is the study of societies to learn about human beings
and their activities.
Session 4
Identify the Challenges and
Opportunities of OB Concepts (2 of 12)
• Responding to economic pressure
– In tough economic times, effective management is an
asset.
– In good times, understanding how to reward, satisfy,
and retain employees is at a premium.
– In bad times, issues like stress, decision making, and
coping come to the forefront.
• Responding to globalization
– Increased foreign assignments.
– Working with people from different cultures.
– Overseeing movement of jobs to countries with low-
cost labor.
– Adapting to differing cultural and regulatory norms.
• Managing workforce diversity
– Workforce diversity – organizations are becoming
more heterogeneous in terms of gender, age, race,
ethnicity, sexual orientation, and inclusion of
Workforce other diverse groups.
• Improving customer service
– Service employees have substantial interaction with
customers.
– Employee attitudes and behavior are associated with
customer satisfaction.
– Need a customer-responsive culture.
• Improving people skills
– People skills are essential to managerial effectiveness.
– OB provides the concepts and theories that allow
managers to predict employee behavior in given
situations.
• Working in networked organizations
– Networked organizations are becoming more
pronounced.
– A manager’s job is fundamentally different in networked
organizations.
– Challenges of motivating and leading “online” require
different techniques.
• Using social media at work
– Policies on accessing social media at work.
 When, where, and for what purpose.
– Impact of social media on employee well-being.
• Enhancing employee well-being at work
– The creation of the global workforce means work no
longer sleeps.
– Communication technology has provided a vehicle for
working at any time or any place.
– Employees are working longer hours per week.
– The lifestyles of families have changed—creating
conflict.
– Balancing work and life demands now surpasses job
security as an employee priority.
• Creating a positive work environment
– Positive organizational scholarship is concerned
with how organizations develop human strength, foster
vitality and resilience, and unlock potential.
– This field of study focuses on employees’ strengths
versus their limitations, as employees share situations
in which they performed at their personal best.
• Improving ethical behavior
– Ethical dilemmas and ethical choices are situations
in which an individual is required to define right and
wrong conduct.
– Good ethical behavior is not so easily defined.
– Organizations distribute codes of ethics to guide
employees through ethical dilemmas.
– Managers need to create an ethically healthy climate.
Session 5
Workplace Diversity
Workplace Discrimination and
Organizational Effectiveness (1 of 3)
• Discrimination is to note a difference between things.
• Unfair discrimination assumes stereotypes about groups.
– Refusal to recognize individual differences is harmful to
organizations and employees.
• Stereotype threat describes the degree to which we
agree internally with the generally negative stereotyped
perceptions of our groups.
– Can be combatted by treating employees as individuals
and not highlighting group differences.
Exhibit 2-1 Forms of Discrimination
Type of Discrimination Definition Examples from Organizations
Discriminatory policies Actions taken by representatives Older workers may be targeted for
or practices of the organization that deny layoffs because they are highly paid
equal opportunity to perform or and have lucrative benefits.
unequal rewards for performance.
Sexual harassment Unwanted sexual advances and Salespeople at one company went on
other verbal or physical conduct of company-paid visits to strip clubs,
a sexual nature that create a brought strippers into the office to
hostile or offensive work celebrate promotions, and fostered
environment. pervasive sexual rumors.
Intimidation Overt threats or bullying directed African-American employees at some
at members of specific groups of companies have found nooses
employees. hanging over their work stations.
Mockery and insults Jokes or negative stereotypes; Arab-Americans have been asked at
sometimes the result of jokes work whether they were carrying
taken too far. bombs or were members of terrorist
organizations.
Type of Discrimination Definition Examples from Organizations

Exclusion Exclusion of certain people from Many women in finance claim they are
job opportunities, social events, assigned to marginal job roles or are
discussions, or informal given light workloads that don’t lead to
mentoring; can occur promotion.
unintentionally.
Incivility Disrespectful treatment, including Female lawyers note that male
behaving in an aggressive attorneys frequently cut them off or do
manner, interrupting the person, not adequately address their
or ignoring his or her opinions. comments.
Sources: Based on J. Levitz and P. Shishkin, “More Workers Cite Age Bias after Layoffs,” The Wall Street Journal, March
11, 2009, D1–D2; W. M. Bulkeley, “A Data-Storage Titan Confronts Bias Claims,” The Wall Street Journal, September 12,
2007, A1, A16; D. Walker, “Incident with Noose Stirs Old Memories,” McClatchy-Tribune Business News, June 29, 2008; D.
Solis, “Racial Horror Stories Keep EEOC Busy,” Knight-Ridder Tribune Business News, July 30, 2005, 1; H. Ibish and A.
Stewart, Report on Hate Crimes and Discrimination against Arab Americans: The Post-September 11 Backlash, September
11, 2001–October 11, 2001 (Washington, DC: American-Arab Anti-Discrimination Committee, 2003); A. Raghavan, “Wall
Street’s Disappearing Women,” Forbes, March 16, 2009, 72–78; and L. M. Cortina, “Unseen Injustice: Incivility as Modern
Discrimination in Organizations,” Academy of Management Review 33, no. 1 (2008): 55–75.
Biographical Characteristics and
Organizational Behavior (1 of 6)
• Biological characteristics are personal characteristics
that are objective and easily obtained from personnel
records.
– Variations in these can be the basis for discrimination
• Age
– The U.S. workforce is aging.
– Does job performance decline with increasing age?
– Studies show that turnover and absenteeism rates are
lower among older workers, and age is not associated
with lower productivity.
• Sex
– There are no consistent male-female differences in
problem-solving ability, analytical skills, competitive
drive, motivation, sociability, or learning drive.
– But women earn less than men for the same positions
and have fewer professional opportunities.
• Race and Ethnicity
– Laws against race and ethnic discrimination are in
effect in many countries.
– But:
 Employees tend to favor colleagues of their own
race in performance evaluations, promotion
decisions, and pay raises.
 African Americans generally fare worse than Whites
in employment decisions.
• Disabilities
– The U.S. Equal Employment Opportunity Commission
classifies a person as disabled who has any physical or
mental impairment that substantially limits one or more
major life activities.
– Workers with disabilities receive higher performance
evaluations, but may have lower performance
expectations.
• Hidden Disabilities
– Sensory disabilities, chronic illness or pain, cognitive
or learning impairments, sleep disorders, and
psychological challenges.
– U.S. organizations must accommodate employees
with a very broad range of impairments.
Other Characteristics and
• Tenure
– Tenure is a good predictor of employee productivity.
– Tenure and job performance are positively related.
• Religion
– U.S. law prohibits discrimination based on religion,
but it is still an issue, especially for Muslims.
Other Characteristics and
• Sexual Orientation and Gender Identity
– Federal law does not protect employees against
discrimination based on sexual orientation, though
many states and municipalities do.
– Many Fortune 500 companies have policies covering
sexual orientation and about half now have policies on
gender identity.
• Cultural Identity
– Need to accommodate and respect individual cultural
identities.
Intellectual and Physical Abilities and
OB (1 of 5)
• Ability is an individual’s current capacity to perform
various tasks in a job.
• Two types
– Intellectual abilities
– Physical abilities
OB (2 of 5)
• Intellectual abilities are abilities needed to perform
mental activities – thinking, reasoning, and problem
solving.
– Most societies place a high value on intelligence.
– General mental ability is an overall factor of
intelligence as suggested by the positive correlations
among specific intellectual ability dimensions.
OB (3 of 5)
Exhibit 2-2 Dimensions of Intellectual Ability
Dimension Description Job Example
Number aptitude Ability to do speedy and accurate arithmetic Accountant: Computing the sales tax on a
set of items
Verbal comprehension Ability to understand what is read or heard Plant manager: Following corporate
and the relationship of words to each other policies on hiring
Perceptual speed Ability to identify visual similarities and Fire investigator: Identifying clues to
differences quickly and accurately support a charge of arson
Inductive reasoning Ability to identify a logical sequence in a Market researcher: Forecasting demand for
problem and then solve the problem a product in the next time period
Deductive reasoning Ability to use logic and assess the Supervisor: Choosing between two different
implications of an argument suggestions offered by employees
Spatial visualization Ability to imagine how an object would look if Interior decorator: Redecorating an office
its position in space were changed
Memory Ability to retain and recall past experiences Salesperson: Remembering the names of
customers
OB (4 of 5)
• Physical Abilities
– The capacity to do tasks demanding stamina, dexterity,
strength, and similar characteristics.
– Nine basic abilities related to strength, flexibility, and
other factors are needed to perform physical tasks.
Session 7
MBTI Model (1 of 7)
• Extroverted or Introverted (E or I): Extraverted individuals are
outgoing, sociable, and assertive. Introverts are quiet and shy.
• Sensing or Intuitive (S or N): Sensing types are practical and prefer

routine and order. They focus on details. Intuitive rely on unconscious processes and
look at the “big picture.
• Thinking or Feeling (T or F): Thinking types use reason and logic to

handle problems. Feeling types rely on their personal values and emotions.
• Perceiving or Judging (P or J): Perceiving types are flexible and

spontaneous. Judging types want control and prefer their world to be ordered and
structured.
Big Five Model (2 of 7)
• Extraversion: The extraversion dimension captures our comfort level with
relationships. Extraverts tend to be gregarious, assertive, and sociable. Introverts tend to
be reserved, timid, and quiet.
• Agreeableness: The agreeableness dimension refers to an individual’s

propensity to defer to others. Highly agreeable people are cooperative, warm, and
trusting. People who score low on agreeableness are cold, disagreeable, and
antagonistic
• Conscientiousness: The conscientiousness dimension is a measure of

reliability. A highly conscientious person is responsible, organized, dependable, and
persistent. Those who score low on this dimension are easily distracted, disorganized,
and unreliable
Big Five Model
• Emotional stability: The emotional stability dimension—often labeled by its
converse, neuroticism—taps a person’s ability to withstand stress. People with positive
emotional stability tend to be calm, self-confident, and secure. Those with high negative
scores tend to be nervous, anxious, depressed, and insecure.
• Openness to experience: The openness to experience dimension

addresses range of interests and fascination with novelty. Extremely open people are
creative, curious, and artistically sensitive. Those at the other end of the category are
conventional and find comfort in the familiar
Strengths and Weakness of the MBTI
and Big Five Model (4 of 7)
Exhibit 5-2 Model of How Big Five Traits Influence OB Criteria
• The Dark Triad
– Machiavellianism: the degree to which an individual is
pragmatic, maintains emotional distance, and believes
that ends can justify means.
– Narcissism: the tendency to be arrogant, have a
grandiose sense of self-importance, require excessive
admiration, and have a sense of entitlement.
– Psychopathy: the tendency for a lack of concern for
others and a lack of guilt or remorse when their actions
cause harm.
Session 9
Contrast Terminal and Instrumental
Values (1 of 3)
• Values: basic convictions about what is right, good, or
desirable.
• The Importance and Organization of Values
– Values:
 Lay the foundation for understanding of attitudes
and motivation.
 Influence attitudes and behaviors.
Values (2 of 3)
• Terminal vs. Instrumental Values
– Terminal values: desirable end-states of existence.
Well-being, economic success, meaning in life are
terminal values.
– Instrumental values: preferred modes of behavior
or means of achieving terminal values. Personal
discipline, goal-orientation are instrumental values.
Values (3 of 3)
Exhibit 5-4 Dominant Work Values in Today’s Workforce
Entered the Approximate

Cohort Workforce Current Age Dominant Work Values
Boomers 1965–1985 50s to 70s Success, achievement, ambition,
dislike of authority; loyalty to career
Xers 1985–2000 Mid-30s to 50s Work-life balance, team-oriented,
dislike of rules; loyalty to
relationships
Millennials 2000 to To mid-30s Confident, financial success, self-
present reliant but team-oriented; loyalty to
both self and relationships
Person-Job Fit vs. Person-
Organization Fit (1 of 3)
Exhibit 5-5 Holland’s Typology of Personality and Congruent
Occupations
Type Personality Characteristics Congruent Occupations
Realistic: Prefers physical activities that Shy, genuine, persistent, stable, Mechanic, drill press operator,
require skill, strength, and coordination conforming, practical assembly-line worker, farmer
Investigative: Prefers activities that Analytical, original, curious, independent Biologist, economist,
involve thinking, organizing, and mathematician, news reporter
understanding
Social: Prefers activities that involve Sociable, friendly, cooperative, Social worker, teacher, counselor,
helping and developing others understanding clinical psychologist
Conventional: Prefers rule-regulated, Conforming, efficient, practical, Accountant, corporate manager,
orderly, and unambiguous activities unimaginative, inflexible bank teller, file clerk
Enterprising: Prefers verbal activities in Self-confident, ambitious, energetic, Lawyer, real estate agent, public
which there are opportunities to domineering relations specialist, small business
influence others and attain power manager
Artistic: Prefers ambiguous and Imaginative, disorderly, idealistic, Painter, musician, writer, interior
unsystematic activities that allow emotional, impractical decorator
creative expression
• Person-Organization Fit
– People high on extraversion fit well with aggressive
and team-oriented cultures.
– People high on agreeableness match up better with a
supportive organizational climate than one focused on
aggressiveness.
– People high on openness to experience fit better in
organizations that emphasize innovation rather than
standardization.
• Other Dimensions of Fit
– Although person-job fit and person-organization fit are
considered the most salient dimensions for workplace
outcomes, other avenues of fit are worth examining.
 Person-group fit
 Person-supervisor fit
Hofstede’s Five Value Dimensions
and GLOBE (1 of 2)
• Hofstede’s Framework
– Power distance: Power inequality (Malaysia high)
– Individualism versus collectivism: People prefer to work as
individuals (US high on individualism)
– Masculinity versus femininity: Culture favors masculine roles based
on power, control and achievement. Separate role for males and
females (Japan high on masculinity, Sweden high on femininity)
– Uncertainty avoidance: People prefer structured situations. Use laws
and control to reduce uncertainty (Greece high on uncertainty
avoidance, Singapore low)
– Long-term versus short-term orientation: People look for future and
value persistence (Hong Kong high on long orientation).
Hofstede’s Five Value Dimensions
and GLOBE (2 of 2)
• The GLOBE Framework for Assessing Culture
– The Global Leadership and Organizational Behavior
Effectiveness (GLOBE) research program updated
Hofstede’s research.
 Data from 825 organizations and 62 countries.
 Used variables similar to Hofstede’s.
 Added some news ones- Humane orientation
(society rewards individuals for being altruistic) and
performance orientation (society encourages
individuals for performance improvement).
Implications for Managers (1 of 2)
• Consider screening job candidates for high
conscientiousness—and the other Big Five traits—
depending on the criteria your organization finds most
important. Other aspects, such as core self-evaluation or
narcissism, may be relevant in certain situations.
• Although the MBTI has faults, you can use it for training
and development; to help employees better understand
each other, open communication in work groups, and
possibly reduce conflicts.
Implications for Managers (2 of 2)
• Evaluate jobs, work groups, and your organization to
determine the optimal personality fit.
• Consider situational factors when evaluating observable
personality traits, and lower the situation strength to
better ascertain personality characteristics more closely.
• The more you consider people’s different cultures, the
better you will be able to determine their work behavior
and create a positive organizational climate that performs
well.
Session 10
Contrast the Three Components of an
Attitude (1 of 2)
• Attitudes are evaluative statements—either favorable or
unfavorable—about objects, people, or events.
– They reflect how we feel about something.
Contrast the Three Components of an
Attitude (2 of 2)
Exhibit 3-1 The Components of an Attitude
Summarize the Relationship Between
Attitudes and Behavior (1 of 2)
• The attitudes that people hold determine what they do.
– Festinger: cases of attitude following behavior
illustrate the effects of cognitive dissonance.
– Cognitive dissonance is any incompatibility an
individual might perceive between two or more
attitudes or between behavior and attitudes.
• Research has generally concluded that people seek
consistency among their attitudes and between their
attitudes and their behavior.
Summarize the Relationship Between
Attitudes and Behavior (2 of 2)
• Moderating Variables:
– Attitude’s importance
– Correspondence to behavior
– Accessibility
– Presence of social pressures
– Whether a person has direct
experience with the attitude
• The attitude-behavior relationship
is likely to be much stronger if an
attitude refers to something with
which we have direct personal
experience.
Compare the Major Job Attitudes (1 of 5)
• Job Satisfaction
– A positive feeling about the job resulting from an
evaluation of its characteristics.
• Job Involvement
– Degree to which a person identifies with a job, actively
participates in it, and considers performance important
to self-worth.
– Psychological Empowerment
 Belief in the degree of influence over one’s job,
competence, job meaningfulness, and autonomy.
• Organizational Commitment
– Identifying with a particular organization and its goals
and wishing to maintain membership in the
organization.
– Employees who are committed will be less likely to
engage in work withdrawal even if they are dissatisfied,
because they have a sense of organizational loyalty.
• Perceived Organizational Support (POS)
– Degree to which employees believe the organization
values their contribution and cares about their well-
being.
– Higher when rewards are fair, employees are involved
in decision making, and supervisors are seen as
supportive.
– POS is important in countries where power distance
is lower.
• Employee Engagement
– The individual’s involvement with, satisfaction with, and
enthusiasm for the work.
– Engaged employees are passionate about their work
and company.
Define Job Satisfaction (2 of 5)
• Job Satisfaction
– A positive feeling about a job resulting from an
evaluation of its characteristics.
• Two approaches for measuring job satisfaction are
popular
– The single global rating.
– The summation of job facets.
Summarize the Main Causes of Job
Satisfaction (1 of 3)
• What causes job satisfaction?
– Job conditions
 The intrinsic nature of the work itself, social
interactions, and supervision are important
predictors of satisfaction and employee well-being.
– Personality
 People who have positive core self-evaluations,
who believe in their inner worth and basic
competence, are more satisfied with their jobs than
those with negative core self-evaluations.
Summarize the Main Causes of Job
Satisfaction (3 of 3)
• Corporate Social Responsibility (CSR)
– Corporate social responsibility (CSR): self-regulated
actions to benefit society or the environment beyond
what is required by law.
 Includes environmental sustainability initiatives,
nonprofit work, and charitable giving.
 Increasingly affects employee job satisfaction.
– CSR is particularly important for Millennials.
 But, not everyone finds value in CSR.
Outcomes of Job Satisfaction
• Job Performance
– Happy workers are more likely to be productive workers.
• OCB
– People who are more satisfied with their jobs are more likely
to engage in OCB.
• Customer Satisfaction
– Satisfied employees increase customer satisfaction and
loyalty.
• Life Satisfaction
– Research shows that job satisfaction is positively correlated
with life satisfaction.
Session 11
Describe the Three Key Elements of
Motivation (1 of 2)
• Motivation is the processes that account for an
individual’s intensity, direction, and persistence of effort
toward attaining a goal.
Describe the Three Key Elements of
Motivation (2 of 2)
• The three key elements of motivation are:
1. Intensity: concerned with how hard a person tries.
2. Direction: the orientation that benefits the
organization.
3. Persistence: a measure of how long a person can
maintain his/her effort.
Compare the Early Theories of
Motivation (1 of 7)
Exhibit 7-1 Maslow’s Hierarchy of Needs
Motivation (2 of 7)
• Maslow’s need theory has received wide recognition,
particularly among practicing managers.
– It is intuitively logical and easy to understand and some
research has validated it.
– However, most research does not, and it hasn’t been
frequently researched since the 1960s.
Motivation (4 of 7)
Exhibit 7-3 Contrasting View of Satisfaction and Dissatisfaction
Motivation (5 of 7)
• Criticisms of Herzberg’s theory:
– Limited because it relies on self-reports.
– Reliability of methodology is questioned.
– No overall measure of satisfaction was utilized.
Motivation (6 of 7)
• McClelland’s Theory of Needs
– The theory focuses on three needs:
 Need for achievement (nAch): drive to excel, to
achieve in relation to a set of standards, to strive to
succeed.
 Need for power (nPow): need to make others
behave in a way that they would not have behaved
otherwise.
 Need for affiliation (nAfl): desire for friendly and
close interpersonal relationships.
Session 12
Self-Determination Theory
• Self-Determination Theory
– People prefer to feel they have control over their
actions.
 Focus on the beneficial effects of intrinsic motivation
and harmful effects of extrinsic motivation.
 Cognitive evaluation theory - When people are
paid for work, it feels less like something they want
to do and more like something they have to do.
– Proposes that in addition to being driven by a need for
autonomy, people seek ways to achieve competence
and positive connections to others.
• What does self-determination theory suggest for providing
rewards?
• Self-concordance: considers how strongly people’s
reasons for pursuing goals are consistent with their
interests and core values.
• What does all of this mean?
– For individuals:
 Choose your job for reasons other than extrinsic
rewards.
– For organizations:
 Provide intrinsic as well as extrinsic incentives.
Goal-Setting Theory (5 of 9)
• Goal-Setting Theory
– Goals tell an employee what needs to be done and
how much effort is needed.
• Evidence suggests:
– Specific goals increase performance.
– Difficult goals, when accepted, result in higher
performance than do easy goals.
– Feedback leads to higher performance than does
non-feedback.
Goal-Setting Theory
• Three other factors influencing the goals-performance
relationship:
– Goal commitment (autonomy in choosing goals)
– Task characteristics (simple and independent)
– National culture
Self-Efficacy, Reinforcement, and
Expectancy Theory (1 of 8)
• Self-efficacy theory is an individual’s belief that he or she
is capable of performing a task.
– Enactive mastery (past exp)
– Vicarious modeling (saw someone else)
– Verbal persuasion
– Arousal
Self-Efficacy theory
• Implications of self-efficacy theory:
– The best way for a manager to use verbal persuasion
is through the Pygmalion effect.
 A form of self-fulfilling prophecy – believing in
something can make it true.
– Training programs often make use of enactive mastery
by having people practice and build their skills.
Reinforcement Theory (4 of 8)
• Reinforcement theory: behavior is a function of its
consequences.
– Reinforcement conditions behavior.
– Behavior is environmentally caused.
• Goal setting is a cognitive approach: an individual’s
purposes direct his or her action.
• Operant conditioning theory: people learn to behave to
get something they want or to avoid something they don’t
want.
– B.F. Skinner’s behaviorism.
Reinforcement Theory (5 of 8)
• Social-learning theory: we can learn through both
observation and direct experience.
• Expectancy theory: a tendency to act in a certain way
depends on an expectation that the act will be followed by
a given outcome and on the attractiveness of that outcome
to the individual.
• Three relationships:
– Effort-performance relationship
– Performance-reward relationship
– Rewards-personal goals relationship
Exhibit 7-6 Expectancy Theory
• Expectancy theory helps explain why a lot of workers
aren’t motivated and do only the minimum.
• Three questions employees need to answer in the
affirmative if their motivation is to be maximized:
– If I give maximum effort, will it be recognized in my
performance appraisal?
– If I get a good performance appraisal, will it lead to
organizational rewards?
– If I’m rewarded, are the rewards attractive to me?
Equity Theory
Exhibit 7-7 Equity Theory
Ratio Comparisons* Perception

O O Inequity due to being underrewarded
<
IA IB
O O Equity
=
IA IB
O O Inequity due to being overrewarded

>
IA IB
O O
*Where represents the employee and represents relevant others
IA IB
Session 14
Explain the Factors That Influence
Perception (1 of 2)
• Perception is a process by which individuals organize
and interpret their sensory impressions to give meaning
to their environment.
• It is important to the study of OB because people’s
behaviors are based on their perception of what reality
is, not on reality itself.
Explain the Factors That Influence
Perception (2 of 2)
Exhibit 6-1 Factors That Influence Perception
Explain Attribution Theory (1 of 10)
• Attribution theory suggests that when we observe an
individual’s behavior, we attempt to determine whether it
was internally or externally caused.
• Determination depends on three factors:
– Distinctiveness
– Consensus
– Consistency
• Clarification of the differences between internal and
external causation
– Internally caused – those that are believed to be
under the personal control of the individual.
– Externally caused – resulting from outside causes.
Exhibit 6-2 Attribution Theory
• Distinctiveness: Whether an individual displays different behaviour in different situations.
• Consensus: If everyone who faces a similar situation responds in the same way, we can
say the behaviour shows consensus.
• Consistency: If an individual responds the same way over time.
• Fundamental attribution error
– The tendency to underestimate the influence of
external factors and overestimate the influence of
internal or personal factors when making judgements
about the behavior of others. Ex of poor sales
performance of a sales agent (in case of a failure).
• Self-serving bias
– The tendency for Individuals to attribute their own
successes to internal factors and put the blame for
failures on external factors.
• Common Shortcuts in Judging Others
– Selective perception
 The tendency to choose to interpret what one sees
based on one’s interests, background, experience
and attitudes.
• Halo effect
– The tendency to draw a positive general impression
about an individual based on a single characteristic.
• Horns Effect
– The tendency to draw a negative general impression
about an individual based on a single characteristic.
• Contrast effects
– Evaluation of a person’s characteristics that is affected
by comparisons with other people recently encountered
who rank higher or lower on the same characteristics.
• Stereotyping
– Judging someone based on one’s perception of the
group to which that person belongs.
Session 15
Learning
• A relatively permanent change in behaviour
that occurs as a result of experience.
• -direct observation
• -practice
Theories of Learning
1. Classical Conditioning Theory (Ivan Pavlov)
• Unconditional stimulus (meat) -- Unconditional response (salivation)
• Conditioned stimulus/ neutral (Bell)-- Conditioned response
• Meat + Bell --- conditioned response (salivation)
• Bell----conditioned response (salivation)
• Build association between a conditional stimulus and an unconditional stimulus
• When the stimuli- neutral one is paired with the unconditional one, the neutral one
became a conditioned response and hence takes on the properties of the unconditioned
stimulus.
• 2. Operant Conditioning (Skinner)
• Type of conditioning in which desired voluntary behaviour leads to a reward or prevents

a punishment.
• Skinner argued that creating pleasing consequences to follow specific forms of

behaviour would increase the frequency of that behaviour and the behaviour, that is not
rewarded or is punished , is less likely to be repeated.
• Social learning theory: the view that people can learn through observation and direct
experience. It is dependent on four processes:
• 1. Attentional processes: People learn from a model only when they recognize and
pay attention to its critical features.
• 2. Retention Processes: how well the individuals remembers the model’s action after
the model is no longer readily available.
• 3. Motor reproduction processes: watching must be converted to doing
• 4. Reinforcement processes: Individuals are motivated to exhibit the modelled

behaviour if positive incentives or rewards are provided.
Session 16
Methods of shaping behavior
Schedules of reinforcement
• Continuous reinforcement: Reinforcing a desired behaviour each time it is demonstrated.
• Intermittent reinforcement: Reinforcing a desired beahvior often enough to make the

behaviour worth repeating but not every time it is demonstrated.
• Ratio schedule: after certain no of specific type of behaviour
• Interval schedule: how much time has passed since the previous reinforcement
• Fixed interval schedule: spacing rewards at uniform time intervals (salaried employees)
• Variable interval schedule: distributing rewards in time so that reinforcements are

unpredictable (surprise quizzes with marks)
• Fixed ratio schedule: initiating rewards after a fixed no. of responses (ex. piece rate)
• Variable ratio schedule: varying the reward relative to the behaviour of the individual
(salesperson’s commission)
Session 17
Explain the Link Between Perception
and Decision Making
• Individuals make decisions – choosing from two or more
alternatives.
• Decision making occurs as a reaction to a problem.
Rational Model of Decision Making vs.
Bounded Rationality and Intuition (1 of 12)
Exhibit 6-3 Steps in the Rational Decision-Making Model
1. Define the problem.
2. Identify the decision criteria.
3. Allocate weights to the criteria.
4. Develop the alternatives.
5. Evaluate the alternatives.
6. Select the best alternative.
• Assumptions of the Rational Model
– The decision maker…
 Has complete information.
 Is able to identify all the relevant options in an
unbiased manner.
 Chooses the option with the highest utility.
• Most decisions in the real world don’t follow the rational
model.
• Bounded Rationality
– Most people respond to a complex problem by
reducing it to a level at which it can be readily
understood.
 People seek solutions that are satisfactory and
sufficient.
– Individuals operate within the confines of bounded
rationality.
 They construct simplified models that extract the
essential features.
• Intuition
– Intuitive decision making occurs outside conscious
thought; it relies on holistic associations, or links
between disparate pieces of information, is fast, and
is affectively charged, meaning it usually engages the
emotions.
• Common Biases and Errors in Decision Making
– Overconfidence Bias: Overestimating own skill in
processing information. Individuals whose intellectual
and interpersonal abilities are weakest are most likely
to overestimate their performance and ability.
– Anchoring Bias: tendency to fixate on initial
information as a starting point and failing to adequately
adjust for subsequent information.
• Confirmation Bias: type of selective perception.
– Tendency to seek out information that reaffirms past
choices, and to discount information that contradicts
past judgments.
• Availability Bias: tendency for people to base their
judgments on information that is readily available.
• Escalation of Commitment: staying with a decision
even when there is clear evidence that it’s wrong.
– Likely to occur when individuals view themselves as
responsible for the outcome.
• Randomness Error: our tendency to believe we can
predict the outcome of random events.
• Risk Aversion: the tendency to prefer a sure thing instead
of a risky outcome.
• Hindsight Bias: the tendency to believe falsely, after an
outcome of an event is actually known, that one would
have accurately predicted that outcome.
Exhibit 6-4 Reducing Biases and Errors
Focus on Goals. Without goals, you can’t be rational, you don’t know
what information you need, you don’t know which information is relevant
and which is irrelevant, you’ll find it difficult to choose between
alternatives, and you’re far more likely to experience regret over the
choices you make. Clear goals make decision making easier and help
you eliminate options that are inconsistent with your interests.
Look for Information That Disconfirms Your Beliefs. One of the most
effective means for counteracting overconfidence and the confirmation
and hindsight biases is to actively look for information that contradicts
your beliefs and assumptions. When we overtly consider various ways
we could be wrong, we challenge our tendencies to think we’re smarter
than we actually are.
Don’t Try to Create Meaning out of Random Events. The educated
mind has been trained to look for cause-and-effect relationships. When
something happens, we ask why. And when we can’t find reasons, we
often invent them. You have to accept that there are events in life that are
outside your control. Ask yourself if patterns can be meaningfully
explained or whether they are merely coincidence. Don’t attempt to
create meaning out of coincidence.
Increase Your Options. No matter how many options you’ve identified,
your final choice can be no better than the best of the option set you’ve
selected. This argues for increasing your decision alternatives and for
using creativity in developing a wide range of diverse choices. The more
alternatives you can generate, and the more diverse those alternatives,
the greater your chance of finding an outstanding one.
Source: Based on S. P. Robbins, Decide & Conquer: Making Winning Decisions and Taking Control of Your Life (Upper
Saddle River, NJ: Financial Times/Prentice Hall, 2004), 164–68.
Session 18
Individual differences on Decision
Making
• Personality
• Gender
• Mental Ability
• Cultural Differences

Organization Behehaviour Introduction

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Session 2

Type of Discrimination Definition Examples from Organizations

• Sensing or Intuitive (S or N): Sensing types are practical and prefer

• Thinking or Feeling (T or F): Thinking types use reason and logic to

• Perceiving or Judging (P or J): Perceiving types are flexible and

• Agreeableness: The agreeableness dimension refers to an individual’s

• Conscientiousness: The conscientiousness dimension is a measure of

• Openness to experience: The openness to experience dimension

Entered the Approximate

Ratio Comparisons* Perception

O O Inequity due to being overrewarded

• Consistency: If an individual responds the same way over time.

• Unconditional stimulus (meat) -- Unconditional response (salivation)

• Conditioned stimulus/ neutral (Bell)-- Conditioned response

• Meat + Bell --- conditioned response (salivation)

• Bell----conditioned response (salivation)

• Build association between a conditional stimulus and an unconditional stimulus

• Type of conditioning in which desired voluntary behaviour leads to a reward or prevents

• Skinner argued that creating pleasing consequences to follow specific forms of

• 3. Motor reproduction processes: watching must be converted to doing

• 4. Reinforcement processes: Individuals are motivated to exhibit the modelled

• Continuous reinforcement: Reinforcing a desired behaviour each time it is demonstrated.

• Intermittent reinforcement: Reinforcing a desired beahvior often enough to make the

• Ratio schedule: after certain no of specific type of behaviour

• Variable interval schedule: distributing rewards in time so that reinforcements are

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