Showing posts with label July. Show all posts
Showing posts with label July. Show all posts

May 24, 2022

Behavioral Performance Management - Revision Notes

Behavioral Performance Management Model

Identification of Performance Behaviors
Measurement of the Behavior
Functional Analysis of the Behavior
Development of Intervention Strategy
Evaluation to ensure Performance


The whole text on organizational behavior is concerned with the what and how of managing and leading people for high performance in today's organizations.

Organizational behavior is a science that explains how people behave. In a changing world, the science of behavior must remain the bedrock, the starting place for every decision we make, every new technology we apply, and every initiative we employ in our efforts to bring out the best in people.

In this chapter, an over view of learning theory and principles are first discussed as they act as the foundation for presenting the behavioral management practice.


Learning Process - Change in Behavior


All organizational behavior is either directly or indirectly affected by learning. For example, a worker's skill, a manager's attitude, an assistant's motivation, or a doctor's mode of dress are all learned.  Hence managers of organizational behavior have to understand the learning mechanisms to guide employees to change their behavior. Learning is defined as change in behavior.

In learning theories, behavioristic theories, cognitive theories, social learning and social cognitive learning theories are discussed in the chapter. Classical conditioning and operant conditioning are behavioristic theories.
In operant conditioning, the organism must operate on the environment in a right way or appropriate way to get the desired reward.

Working is the operation a worker has to do to get food clothing and shelter for himself and his family.

Cognitive Learning


Tolman proposed cognitive learning.

Kohler discovered insight learning (insight is not based on experience)

Social Learning


Learning takes place via vicarious, or modeling, and self-control processes.

Behavioral Dimension Performance Management Process 


1. Identification of Performance Behaviors


Critical behavior that contribute to job performance in the organization are to be identified

2. Measurement of the Behavior


A baseline measure is obtained by determining by observing or by analysis of records the number of times the identified behavior is occurring or not occurring.



3. Functional Analysis of the Behavior


A functional analysis identifies both the antecedents (A) and consequences (C) of the target behavior (B), or simply stated, an A-B-C analysis is performed.

The antecedent cues that emit or elicit the behavior, and sometimes control it, and the consequences that are currently maintaining the behavior must be identified and understood before an effective intervention strategy can be developed.  If the employee cannot do the behavior even if he wants to do it, then intervention has to be in antecedent variables. If the employee can do but not doing it, then the intervention has to be in consequence variables.

4. Development of Intervention Strategy


The strategies to be used strengthen functional behaviors and weaken dysfunctional behaviors are positive reinforcement and punishment-positive reinforcement.

Under positive control, people come to work in order to be recognized for making a contribution to their department's goal of perfect attendance, and they keep busy irrespective of the supervisor's presence to receive incentive pay or recognition

If punishment is to be used or used, the supervisor must take the first opportunity to positively reinforce the alternative behavior.

5. Evaluation to ensure Performance


Kirkpatrick's four levels of evaluation to a behavior modification initiative are important. They are reaction, learning, behavioral change, and performance improvement.


Step 1: Identification of Performance Behaviors


The goal of the first step of O.B. Mod. is to identify the critical behaviors—the 5 to 10 percent of the behaviors that may account for up to 70 or 80 percent of the performance in the area in question.

The process of identifying critical behaviors can be carried out in a couple of ways. One approach is to have the person closest to the job in question—the immediate supervisor or the actual jobholder—determine the critical behaviors. Another approach to identifying critical behaviors would be to conduct a systematic behavioral audit by internal staff specialists and/or outside consultants. The audit would systematically analyze each job in question, in the manner that jobs are analyzed using job analysis techniques commonly employed in human resource management. In this approach  the jobholder, his immediate supervisor, and others related provide inputs. 
 
Regardless of the method used, there are certain guidelines that can be helpful in identifying critical behaviors. First, only direct performance behaviors are included. Only direct performance behaviors such as absenteeism or attendance, tardiness or promptness, or, most importantly, doing or not doing a particular task or procedure that leads to quantity and/or quality outcomes play the major role in O.B. Mod.  The behavior has to be measurable such as not being at the workstation, being tardy when returning from breaks, spending time at the water cooler, disrupting coworkers, playing computer
games or surfing for personal reasons, and even socializing with coworkers face-to-face or
with others online. However, for a behavior to be identified as a critical behavior appropriate for O.B. Mod., there must be a positive answer to the questions: (1) Can it be directly measured? and (2) Does it have a significant impact on a performance outcome?
The behaviors causing problems must be properly identified, or the subsequent steps of O.B. Mod. become meaningless for attaining the overall goal of
performance improvement.

Step 2: Measurement of the Behavior
After the performance behaviors have been identified in step 1, they are measured. A baseline measure is obtained by determining (either by observing and counting or by extracting from existing records) the number of times that the identified behavior is occurring under existing conditions.  The purpose of the baseline measure is to provide objective frequency data on the critical behavior. A baseline frequency count is an operational definition of the strength of the behavior under existing conditions. It is important to realize that measures are taken after the intervention as well. 

Step 3: Functional Analysis of the Behavior
Once the performance behavior has been identified and a baseline measure has been obtained, a functional analysis is performed of the critical behaviors finalized on the basis of baseline data. A functional analysis identifies both the antecedents (A) and consequences (C) of the target behavior (B), or, simply stated, an A-B-C analysis is performed. As discussed under behavioristic learning theory and operant conditioning, both the antecedent and the consequent environments are vital to the understanding, prediction, and control of human behavior in organizations.  In the A-B-C functional analysis, A is the antecedent cue, B is the performance behavior identified in step 1, and C is the contingent consequence. 

They know how to do the desired performance behavior and there is all the necessary support to do it, but there are not reinforcing consequences and therefore the behavior is not occurring. This lack of reinforcing consequences is the major problem and challenge facing behavioral management. 

Step 4: Development of an Intervention Strategy

The goal of the intervention is to strengthen and accelerate functional performance behaviors and/or weaken and decelerate dysfunctional behaviors. There are several strategies that can be used, but the main ones are positive reinforcement and punishment–positive reinforcement.

A Positive Reinforcement Strategy
Positive, not negative, reinforcement is recommended as an effective intervention strategy for
O.B. Mod. Under positive control, the person behaves in a certain way in order to
receive the desired consequence. Under positive control, people come to work in order to be
recognized for making a contribution to their department’s goal of perfect attendance, or they
keep busy whether the supervisor is around or not in order to receive incentive pay or because
they get social recognition/attention and feedback for their good work. Positive control through
a positive reinforcement intervention strategy is much more effective and longer lasting than
negative control. It creates a much healthier and more productive organizational climate.

Besides money, many positive reinforcers that are also very powerful, readily available to all behavioral managers, and cost nothing are the social reinforcers (attention and recognition) and performance feedback. These reinforcers (money, recognition, and feedback) can be and, as has been demonstrated through research, have been used as an effective O.B. Mod. strategy to improve employee performance. In fact, the most comprehensive evidence shown in Figure 12.5 indicates that when these three reinforcers are used in combination in the intervention, they produce a stronger (synergistic) effect and probability of success than any of the reinforcers used by themselves, the sum of the individual
effects, or the combination of any two of the interventions.

A Punishment–Positive Reinforcement Strategy

So many negative side effects such as hate and revenge accompany the use of punishment that it should be avoided if at all possible. Punished behavior tends to be only temporarily suppressed; for example, if a supervisor reprimands an associate for some dysfunctional behavior, the behavior will decrease in the presence of the supervisor but will surface again when the supervisor is absent. In addition, a punished person becomes very anxious and uptight; reliance on punishment may have a disastrous impact
on employee satisfaction and commitment and create unnecessary stress.

If punishment is deemed necessary and given, the desirable alternative behavior (for example, safe behavior) should be positively reinforced at the first opportunity. Use of this combination strategy will cause the alternative desirable behavior to begin to replace the undesirable behavior in the person’s
behavioral repertoire. Punishment should never be used alone as an O.B. Mod. intervention. It has to be supported by positive reinforcement support quickly.  If punishment is absolutely necessary, it should only be used in combination with positive reinforcement of the desirable alternative behavior.

Step 5: Evaluation to Ensure Performance Improvement


O.B. Mod. attempts to meet the credibility and accountability problems head on by
including evaluation as an actual part of the process. In this last step of the approach, the
need for Kirkpatrick’s well-known four levels of evaluation (reaction, learning, behavioral
change, and performance improvement) is stressed. 

The reaction level refers simply to whether the people using the approach and those having it used on them like it. If O.B. Mod. is well received and there is a positive reaction to it, there is a better chance of its being used effectively. In addition, reaction evaluations are helpful because (1) positive
reactions help ensure organizational support, (2) they can provide information for planning
future programs, (3) favorable reactions can enhance the other levels of evaluation (learning, behavioral change, and performance improvement), and (4) they can provide useful
comparative data between units and across time.

The second level of evaluation is learning, which is especially important when first
implementing an O.B. Mod. approach. Do the people using the approach understand the
theoretical background and underlying assumptions and the meaning of, and reasons
for, the steps in the model? If they do not, the model will again tend to be used ineffectively.

The third level is aimed at behavioral change. Are behaviors actually being changed? The
charting of behaviors started in step 2 of the O.B. Mod. process gives objective data for this
level of evaluation. 

The fourth and final level, performance improvement, is the most important.   “Hard” measures
(for example, data on quantity and quality, turnover, absenteeism, customer complaints,
customer satisfaction, employee grievances, safety, length of patient stay, number of clients
served, sales revenue, and rate of return on investment) and scientific methodology are used
whenever possible to systematically evaluate the impact of O.B. Mod. on performance.



Updated on 25.5.2022,  23 May 2017, 17 July 2014

April 30, 2022

Supply Chain Cost Reduction


Supply Chain Costs - Components



Industrial Engineering of Supply Chains


The cost reduction effort on any system will involve simplification effort. Systems are made complex by functional designers by adding various features. Industrial engineers in their quest for efficiency need to examine the contribution of various complex features to the profit potential of the system and need to simplify where needed.


Simplification Tools and Areas to Which They are Applicable



The product portfolio rationalization  -  Product Portfolio Planning

The product design - Design for Manufacturability

Part and raw material variety reduction - Standardization

Manufacturing processes - Implement  Lean, continuous flow mfg.

WIP inventory -                         Just-in-time

Finished goods inventory -         Build-to-Order

The distribution network -         BTO & ship direct

Order entry -                            Configurators & data links

The vendor base reduction -                     Vendor/Partnerships

Supply chain logistics -              Product line rationalization

Product design for lean production

Standardization


Books

The Supply Chain Cost Management: The Aim & Drive Process for Achieving Extraordinary Results

Hardcover: 256 pages
Publisher: AMACOM (October 31, 2007)
Language: English
ISBN-10: 0814474756
ISBN-13: 978-0814474754
Topics


• identify critical costs in the supply chain

• measure secondary and tertiary costs

• develop strategic options

• reduce, change, or eliminate activities that produce costs

• implement an action plan

• verify the plan with cost monitors

• continually improve and modify the process

References

Excerpts from the Book: Build-to-Order & Mass Customization, David M. Anderson
http://www.halfcostproducts.com/scm_cost_reduction.htm

The Page http://www.halfcostproducts.com/index.htm is also very useful page to read

Supply Chain Industrial Engineering - Video Presentation

__________________

__________________



Supply Chain Engineering - One Year Masters Course - Georgia Institute of Technology - IE School.


They should have titled the course

Supply Chain Industrial Engineering

__________________

__________________



Interesting Web Pages and Blog Posts

7 ways everyone can cut supply chain costs
http://www.supplychainquarterly.com/topics/Strategy/scq201102seven/

How to Reduce Costs through Supply Chain Network Optimization
http://www.industryweek.com/planning-amp-forecasting/how-reduce-costs-through-supply-chain-network-optimization


Original Knol - 460

Updated 2022 - 1.5.2022

2018 - 17 June 2018

  17 June 2016,  4 July 2014, 24 Nov 2011, Earlier published on Knol


Industrial Engineering Knowledge Revision Plan - One Year Plan


January - February - March - April - May - June



March 4, 2022

Organizing for Industrial Engineering Department and Function

Industrial Engineering ArticleSeries
The organization of an industrial engineering department demands three steps [1].

1. The authority, responsibility and accountability of the department must be clearly mentioned.

2. The department must be integrated in the company plan of organization.

3. Every provision must be made so that the department can effectively perform its assigned tasks.
______________________________________________________________

The Basis for Organization


The organization of an industrial engineering department demands three steps [1].


1. The authority, responsibility and accountability of the department must be clearly mentioned.

2. The department must be integrated in the company plan of organization.

3. Every provision must be made so that the department can effectively perform its assigned tasks.


According to Tully Shelley [1], Principal at McKinsey & Company, the basic objectives of an IE department are (1) Establishment of methods for controlling production costs and (2) Development of programs for reducing those costs. Shelley discussed his organization plan based on these objectives.


Suggested Organization Patterns


Shelley proposed the following sections under a Chief Industrial Engineer [1]



Methods Section


Operations analysis

Motion study

Materials handling

Plant layout




Time Study Section



Time study of direct labor

Measurement of indirect labor

Measurement of machine interference





Training Section



Operator training

Supervisor training



Wage Programs Section



Job evaluation

Wage incentives

Merit rating



Product Section



Product design

Tool design

Estimating

Equipment selection



Operations Research Section



Mathematical model building





If the company has variety of production facilities, the organization can be patterned along production divisions.



Heavy Machine Shop Section

Light Machine Shop Section

Assembly Department Section

General IE Techniques Section





Management Duties of IE Department Head

Establishing priorities for projects

Programming the work

Reviewing the progress of projects


Proposal By Narayana K.V.S.S.


Industrial Engineering department can undertake activities under three major sections.

1. Human Effort Engineering
2. Systems Efficiency Engineering
3. Systems Design, Installation, and Improvement Management.

Areas under Each of the proposed sections

1. Human Effort Engineering

Work Station Design
Interface Device Design: Jigs and Fixtures
Motion Design: Motion Study
Posture Design
Comfort Design: fatigue analysis
Safety Design: Safety Aids
Occupational Hazard Analysis Certification
Work Measurement
Operator Training
Job Evaluation
Incentive scheme design

2. Systems Efficiency Engineering

Methods Study
Value Engineering
Statistical Quality Control
Operations Research


3. Systems Design, Installation, and Improvement Management.

Facilities Design
Production Systems Design
Quality Systems Design
Supply Chain Systems Design
Information Systems Design
Project Management


References


1. Tully Shelley, “Organizing for Industrial Engineering’, Chapter 3 in Industrial Engineering Handbook, H.B. Maynard (Editor-in-chief), 2nd Edition, McGraw – Hill.

Lesson  354 of  Industrial Engineering ONLINE Course -  Productivity Management Module.


Industrial Engineering Knowledge Revision Plan - One Year Plan


January - February - March - April - May - June





July - MBA Management Knowledge Revision Plan


Originally posted at
http://knol.google.com/ k/ organizing-for-industrial-engineering-historical-evolution-of-thinking

Updated 5.3.2022,  3 July 2014, 14 Dec 2011

June 30, 2020

July - Management Knowledge Revision

Online MBA Management Theory Handbook 



July  (Economics, Engineering Economics, & Managerial Ethics)

1st Week  ( 1 to 5 July)

Economic Theory of Production and Production Cost
Economic Analysis of Different Competitive Conditions.

Wages and the Labor Market - Samuelson and Nordhaus 

Capital, Interest and Profits - Review Notes
Markets and Economic Efficiency - Review Notes

Economic Role of Government and Its Expenditure


Alternative Economic Systems - Review Notes
Theory of Economic Growth

2nd week  ( 8 to 12 July)

International Trade Theory and Issues
Exchange Rates: Markets Regulation and International Financial System

Supply Behavior/Decisions of Firm in Competitive Markets
Introduction to Engineering Economics


Engineering Economy or Engineering Economics: Economic Decision Making by Engineers
Time Value of Money - Time Value of Money Calculations


Cash Flow Estimation for Expenditure Proposals
Required Rate of Return - Cost of Capital  - Required Rate of Return for Investment or Expenditure Proposal..


Depreciation and Other Related Issues
NPV - IRR and Other Summary Project Assessment Measures



3rd week  (15 to 19 July)


Income Expansion Projects
Cost Reduction Projects


Replacement Decisons
Expected Values and Risk of Project Revenues and Costs


Present-Worth Comparisons
Rate-of-Return Calculations

18 July

Equivalent Annual-Worth Comparisons
Replacement Analysis


Replacement Problem - Engineering Economy Analysis...
Machine Selection Problem for an Engineer - Engine...

4th week

Depreciation and Income Tax Considerations
Sensitivity Analysis

Structural Analysis of Alternatives
Engineering Economic Analysis - Subject Update - Recent Case Studies

Business Ethics Revision Starts


Business Ethics – Introduction
Moral Standards and Moral Judgments – Approaches



Business System - Free Markets - Ethics
Ethics in the Market Place and Distribution System

Ethics in the Factory
Ethics in the Supply Chain







To August - Management Knowledge Revision


Industrial Engineers support Engineers and Managers in Efficiency Improvement of Products, Processes and Systems



Industrial Engineering ONLINE Course



One Year MBA Knowledge Revision Plan


January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December



Updated 30 June 2020,  10 July 2016






May 28, 2019

Productivity, Safety, Comfort, and Operator Health Management



Productivity Management- Principle of Industrial Engineering

Every industrial engineer is a productivity manager.
He has to plan for productivity and achieve productivity improvement year after year.

As a part of productivity management, he has to assess management actions of the organization for effect on productivity and has to recommend changes if they have an adverse effect on productivity or if there is scope for increasing productivity by modifying them.

Industrial engineering departments have to make productivity improvement plans for every year. Toyota Style Industrial Engineering demands that IEs plan the cost reduction for each product every year. They even demand monthly plans (Kaizen Costing).

Total Productivity Management (TPMgmt) is being promoted Japanese Industrial Management Association as top down plan for productivity improvement.

Operator Comfort and Health - Principle of Industrial Engineering

As human effort engineers, industrial engineers are concerned with comfort and health of operators.

The productivity improvement and the consequent extra production from a man-machine combination should not lead to discomfort, fatigue and musculoskeletal disorders.

Safety is an important human resource management responsibility under OSHA act. Industrial engineering need to plan their involvement in safety management and in developing human effort designs which are safe to the highest degree.

Comfort studies are to be done periodically.

Health is also covered under OSHA. Industrial engineering have to take care of operator health in the design of motions of the operators and also in the design of hand-tools,  machine controls to be operated by operators and work station.


Updated on 29 May 2019, 13 February 2014

May 22, 2019

Managing and Leading for High Performance - Job Design and Goal Setting - Revision Notes

Job Design


Job design may be defined as the methods that management uses to develop the content of a job, including all relevant tasks, as well as processes by which jobs are constructed and revised.

Ideas about job design appeared in business and economics literature as early as the 1700s. Adam Smith in The Wealth of Nations pointed out that production per man of straight pins could be dramatically increased if each worker was assigned a small routine, repeated task in the process of making of pins instead of being assigned the task of doing all elements and complete one pin all by himself. Pioneering scientific management proponents like F.W. Taylor and Frank Gilbreth advocated that management should analyze the method of doing each operation in a process and identify the most economical method of doing it and standardize it or specify it to be adopted by each and every worker or operator employed by it in the operation. Task design is the most prominent single element in scientific management.  The scientific management approach evolved into a discipline called industrial engineering and it is concerned with product, process and tool design, plant layout, standard operating procedures, work measurement and standards, worker methods, and human-machine interaction. It has been the dominant form of job design analysis for over 100 years and it was adopted in various production technology improvements like automation, cybernation (use automatic feedback control systems) and use computers and sophisticated computer applications like artificial intelligence, expert systems and computer-assisted design. The job engineering produced cost savings. But there were negative effects on quality, absenteeism and turnover. So a deterioration in behavioral variables was observed. To take care of behavioral variable that were having an adverse impact on performance, certain measures were taken by managers. Job rotation and job enrichment were attempted by some companies.

Job enrichment is an exercise based on Herzberg theory on motivators related to job design. Between two jobs offering the same money income, the job that provides opportunities for achievement, recognition, responsibility, advancement, and growth provides more motivation.One can even see preference curves with these two as two variables - money income and job related motivators independent of money.

J. Ricahrd Hackman and Greg Oldham developed the most widely recognized model of job characteristics as a further extension of Herzberg model.

The core of the model identifies the follow characteristics

1. Skill variety involved in the job.
2. Task identity
3. Task significance
4. Autonomy
5. Feedback (Recognition Reward)

Quality of Work Life and Sociotechnical Design are also movements in the area of job design.

High Performance Work Practices approach narrows down for effective practice what began as a broad area in Quality of Work Life movement.

Goal Setting


A goal is a performance target that an individual or group seeks to accomplish at work. Goal setting is the process of motivating employees by establishing effective and meaningful performance targets.

Detailed note on Goal Setting and Performance
Goal Setting and Performance


For more details please revise the full chapter in  Luthans.

Updated on 23 May 2019, 17 July 2014

Effective Leadership Processes - Revision Notes




Theories of leadership were  covered in Leadership Theories 

Issue of changing leadership to suit contingency is discussed in Changing Leadership Style

Substitutes for Leadership

Is leader important in all work situation to direct followers and motivate them?

Kerr and Jermier proposed that there are leadership substitutes in certain jobs and job contexts and leaders are not the main variable in performance improvement in those situations. These sustitutes are found in employees (subordinates), task and organization characteristics.


OB Principle: The leader's level of intelligence will influence others' perception of the leader's effectiveness.

OB Principle: Leader-member exchange (LMX) is positively related to job performance, satisfaction, and commitment.

Updated on 23 May 2019, 4 December 2011




May 18, 2019

Communication - Review Notes


Part 1 of the article

Communication: Importance and Definition

Important Issues in Communication in Organizations

Communication Media and Technology


Choosing the Medium
Nonverbal Communication
Management Information System

Interpersonal Communication


In interpersonal communication, the major emphasis is on transferring information from one person to another. To create, change in behavior, communication is used.  Communication process involves cognitive processes such as perception, learning and motivation. Variables such as trust, expectations, values, status, compatibility influence and communication process and its effectiveness. Communicators have to pay attention to feedback to confirm that the message is understood by the receiver.

Downward Communication


Luthans cited Katz and Kahn and gave five basic purposes of downward communication.

1. To give specific directives and instructions related to tasks and jobs.
2. To give information about organizational procedures and practices.
3. To provide information about the rationale of the job.
4. To tell subordinates about their performance (give feedback)
5. To provide ideological information to facilitate the indoctrination of goals.

Luthans says, managers are undertaking only the first two types of communication. Such a practice is having negative effect. Communicating the ideology of the organization (mission and vision), explaining the role of the job in the vision achievement and feedback about job performance greatly benefit the organization. 

Facilitating Upward Communication



Failure of Upward Communication Process




Classical organization structure and theory formally stated the need for information flow downward and upward. But upward communication process has been stifled as facilitating mechanisms were not put in place in many organizations.



According to surveys conducted by InTouch Management Communications Systems, 90 percent of employees believe that they have good ideas for improving the effectiveness of their firms, but only 50 percent of them ever share these ideas with the company.



Facilitating Mechanisms for Upward Communication




1. The open door policy



2. Use of email



3. Attitude questionnaires and exit interviews



4. Participative techniques



5. Empowerment strategy



6. Grievance procedure



7. Ombudsperson





Active Listening Skills




To facilitate upward communication, executives have to improve their active listening skills. Some of the guidelines to improve listening are:



1. Maintain attention. Focus on the speaker.

2. Use restatements to confirm to the speaker that you are with him.

3. Show empathy.

4. Use probing questions to elicit more information on issues of interest.

5. Encourage more suggestions by noting down the suggestions given

6. Speak in between appropriately and allow the conversation to continue.





References


Fred Luthans, Organizational Behavior, McGraw-Hill, New York, 9th Edition.




Web References


http://www.mindtools.com/CommSkll/ActiveListening.htm


Updated on 19 May 2019, 4 December 2011

Decision Making and Creativity in Decision Making - Review Notes

Organizational behavior revision article series


Decision Making - Introduction


Decision making is almost universally defined as choosing between alternatives. It is closely related to all the management functions, planning, organizing and control. Chester Barnard started a meaningful analysis of the decision making process in organizations.  He pointed out that the process of making decision uses techniques for narrowing choices. Herbert A. Simon conceptualized three major phases in the decision-making process:

1. Intelligence activity
2. Design activity:  developing possible courses of action
3. Choice activity: Choosing an alternative from set of courses developed.

Mintzberg proposed three phases.

1. The identification phase
2. The development phase
3. The selection phase

Behavioral Aspects and Theory of Decision Making


Classical management theory developed the procedures for decision making  under the assumption of rationality.  But behavioral decision theory is developed on the assumption that individuals have cognitive limitations and also because of the complexity of organizations and the world in general, they act in situations where uncertainty prevails and information is often ambiguous and incomplete.

Models of Behavioral Decision Making


The models can be represented as a discrete points on a range that starts from fully rational decision making to fully irrational decision making.

The Rational Decision Making Models


Economics develops its analysis under the assumption of fully rational individual who uses the best available information (under the assumption that information is available to all) and the best analytical tools (tools are also available to all). Economist find evidence in their research studies that their models have utility to predict real world in significant number of cases to add value to the society.

Irrational Decision Making Models


It is termed the social model by Luthans. The irrational model is implied by Sigmund Freud's view of a man.  Sigmund Freud viewed humans as bundles of feelings, emotions, and instincts, and their behavior was guided largely by their unconscious desires. Many contemporary psychologists would take issue with Freudian description of humans, but almost all would agree that psychological influences have a significant impact on decision-making behavior. Elton Mayo also supported and discussed irrational decision making and behavior by workmen.  Further more, social pressures may  also cause managers to make irrational decisions.

Simon's Bounded Rationality Model


According to Simon's model

1. Managers look for and stop when they arrive at a solution that is satisfactory or 'good enough."
2. They are happy with simplified models of reality to understand analyze real world problems.
3. Because they are satisfying, they will not make effort and develop all alternatives possible.
4. They use simple rules of thumb, or tricks of trade, or force of habit and take decisions that they are satisfied and their groups are satisfied.

There are many socially based obstacles that prevent maximization in practice. They are resistance to change in organizations, desire for status, concern for image and organizational politics.

Judgmental Heuristics and Biases Model


Simplified decision thumb rules can lead to decision biases. Kahneman and Tversky, cognitive decision theorists, developed on the Simon's thought that simplifying strategies are used for decision making. Such judgemental heurtistics reduce the information demands on the decision maker. The development of Kahneman and Tversky and others following their direction for thinking have identified three important biases due to heuristics

1. The availability heuristic bias
2. The representativeness heuristic bias
3. The anchoring and adjustment heuristic bias.

1. The availability heuristic bias

A judgement about probability is made by their memory. An event that evokes emotion and is vivid is easily remembered and is available from memory.

But this will result in bias,when the ease of recall is influenced by factors unrelated to the frequency of an event's occurrence. 

2. The representativeness heuristic bias

The decision makers cannot recognize the possible patterns in short term results of a random process from long term results. They do not recognize all possible random patterns and only recognize some of them based on their thinking of a stereotype.

3. The anchoring and adjustment heuristic bias.

Decision makers take an available initial value and start making adjustment. When a manager gives his subordinates an initial estimate as given by his staff assistant, they make some adjustments and give their estimate. It is observed that when one group is given low estimate and the other group is given a higher estimate, the group members estimates differed. Thus a bias enters into the decision making.

Subsequent researches find that these biases that occur at individual level become cumulative and become big errors at bigger economy level.



Decision Making Styles


Directive style

Low tolerance for ambiguity and orientation toward task and the technical concern. The decision makers like to exercise power, want to be in control, and in general display an autocratic leadership style.

Analytical style

Analytical decision makers have a high tolerance for ambiguity and a strong task and technical orientation

Conceptual style
The style combines high tolerance for ambiguity with strong people and social concerns.

Behavioral style
Low tolerance for ambiguity is combined with strong people and social concerns.

(Reference for decision styles: M.J. Dolinger and W. Danis, "Preferred Decision-Making Styles: A Cross-Cultural Comparison," Psychological Reports, 1998, pp. 255-261.)

Participative Decision-Making Techniques


Problem of Pseudoparticipation: Some managers ask for participation, but whenever subordinates make a suggestion or try to provide some input into a decision, they are put down. If managers claim to want participation from their people but never let them become intellectually and emotionally involved and never use their suggestions, the results may be negative.

Creativity in Decision Making


The process of creativity
According to noted creativity researcher Teresa Amabile, creativity is a function of three major components: expertise, creative-thinking skills, and motivation.

Expertise consists of knowledge: technical, procedural, and intellectual.
Creative thinking skills determine how flexibly and imaginatively people can deal with problems and make effective decisions.
Motivation is the inner passion to solve the problem at hand.

Creative people are better able to do things such as abstracting, imaging, synthesizing, recognizing patterns, and empathizing. They are also good intuitive thinkers. Intuitive thinking is coming out with ideas to solve problems where logical and known procedures are not giving any valid solution.

Psychological Definition and Analysis of Creativity


Psychological definition of creativity is that it involves combining responses or ideas of individuals or groups in novel ways.

Two widely recognize dimensions of creativity that help in explaining the creative process.

1. Divergent thinking: Ability to generate novel, but still appropriate, responses to questions and problems.

2. Cognitive complexity: This refers to a person's use of and preference for elaborate, intricate, and complex stimuli and thinking patterns.

Creativity techniques for Management Decision Making


A survey found that top managers are using creativity enhancing techniques like guided imagery, self-hypnosis, journal keeping, and lateral styles of thinking.

In some Japanese companies, employee creativity is managed or developed through deliberate structural means to develop the employee's motivation, job satisfaction and teamwork.

A recent technique called empathic design was used by certain companies. In this customers were photographed and studied to interpret their reactions in using existing products and services as well as proposed products, services and product and service features.

Group Decision Making

The Delphi Technique

The Nominal Group Technique

Silent generation of ideas in writing. Although more research is needed, there is some evidence that NGT-led groups come with many more ideas than traditional interacting groups.


Introduction to Organizational Behavior - Online Book

May - Management Knowledge Revision - Cost and Management Accounting and Organizational Behavior



One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

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Updated 19 May 2019,  12 May 2019,  10 July 2014, 4 Dec 2011

May 17, 2019

Motivational Needs and Processes - Review Notes



Motivation - Theory and Research Studies


Motivation - Definition



Motivation is a process that starts with a physiological or psychological deficiency or need that activates a behavior or drive that is aimed at a goal or incentive.

Thus, the process involves needs, which set drives in motion to accomplish a goal (anything that alleviates a need and reduces a drive).

To understand the process of motivation, one has to understand the meaning of need, drive, and goal and the relationships among them.

Needs, Drives and Goals (Incentives)


Needs: Needs are created or come into existence whenever there is a physiological or psychological imbalance. A need exists when cells in the body are experiencing a shortage of food or water.

Drives: A drive is a deficiency with a direction. Drives denote actions and intention to act by individuals and they are exhibited to alleviate needs. Drives and motives are terms used interchangeably. Drives provide an energizing thrust toward reaching an incentive or goal.

Incentives or goals: Anything that will alleviate a need is an incentive or goal in the motivation cycle. Attaining an incentive or goal will tend to restore physiological or psychological balance and will reduce the drive up to zero level.

The concept of needs was discussed further at this stage by Luthans. It will appear as Maslow's hierarchy of needs at a later stage in the discussion of motivation theories.

Drives


The drives, or motives, may be classified into primary (and general), and secondary categories.

The primary motives are unlearned and physiologically based. Common primary motives are hunger, thirst, sleep, avoidance of pain, sex, and maternal concern.

Luthans has written that a separate classification for general motives is not always given. But such a category is useful. The general (also termed stimulus) motives are also unlearned but are not physiologically based. Curiosity, manipulation, activity, and affection are examples of general motives.

Secondary motives are learned motives. They are more interesting in the study of organizational behavior. The needs for power, achievement, affiliation, security, and status are major motivating forces in the behavior of organizational participants.

Motivator can be a general term that can describe a need, a motive, incentive or a person.

Motivators can be extrinsic and intrinsic. Extrinsic motivators are the visible consequences external to the individual (e.g., money), usually contingently administered by others, to motivate the individual. Intrinsic motivators are internal to the individual, and are self-induced to learn, achieve, or in some way better oneself.

Content Theories of Motivation


Maslow's hierarchy of needs


Maslow proposed a hierarchy of needs that set up drives. Physiological needs when present in a person take precedence and drives to satisfy the physiological needs dominate other drives. Then come safety needs. Next in the precedence are love needs. Esteem needs and self actualization needs set up drives subsequently. A philosopher once commented that hungry stomachs cannot listen to the necessity of thinking about the higher world.

----------------------------------
Hierarchy of needs

Self actualization needs
Esteem needs
Love needs
Safety needs
Physiological needs
----------------------------------



This theory made managements aware of diverse needs of people and also on the necessity of finding the dominant need of a person at a point in time.

Alderfer's model


Alderfer identified three groups of core needs.

Existence
Relatedness
Growth
The existence needs are concerned with survival (physiological well-being).
The relatedness needs stress the importance of interpersonal, social relationships.
The growth needs concerned with the individual's intrinsic desire for personal development.

Herzberg's Two Factor Theory


Hygiene factors


Company policy and administration
Supervision, technical
Salary
Interpersonal relations, supervisor behavior
Working conditions

Motivators


Achievement
Recognition
Work itself
Responsibility
Advancement

Luthans has commented that although such a content approach has surface logic, is easy to understand and can be readily translated into practice, the research evidence points out some definite limitations. There is very little research support for these models' theoretical basis and predictability. The trade-off for simplicity sacrifices true understanding of the complexity of work motivation. On the positive side, however, the content models have given emphasis to important content factors. In addition, the Alderfer model allows more flexibility, and the Herzberg model is useful as an explanation for job satisfaction and as a point of departure for practical application to enrich jobs.

Process Theories

The process theories provide a much sounder theoretical explanation of work motivation. The expectancy model of Vroom and the extensions and refinements provided by Porter and Lawler help explain the important cognitive variables and how they relate to one another in the complex process of work motivation. The Porter-Lawler model also gives specific attention to the important relationship between performance and satisfaction. Porter and Lawler propose that performance leads to satisfaction, instead of the human relations assumption of the reverse. A growing research literature is somewhat supportive of these expectancy models, but conceptual and methodological problems remain. Unlike the content models, these expectancy models are relatively complex and difficult to translate into actual practice, and, consequently, they have made a contribution but are not the final answer for motivation in the field of organizational behavior and human resource performance.


More recently, in academic circles, equity theory has received increased attention. Equity theory, which is based on perceived input-outcome ratios of oneself compared to relevant other(s), can lead to increased understanding of the complex cognitive process of work motivation but has the same limitation as the expectancy models for prediction and control in the practice of human resource management. More recently, this equity theory has been applied to the analysis of organizational justice in the workplace.

Control and agency theories, coming from other disciplines, are representative of other approaches receiving recent research attention in organizational behavior.

Summary

Managers cannot use only one motivation theory. There is a need to combine motivation theories and use them simultaneously as well as appropriately. To elaborate the idea further Maslow's theory and Herzberg's theory are not opposing theories. Equity theory does not oppose other theories. It brings out the importance of equity in any organization. Even highly paid managers, will become depressed if they are treated unfairly at any stage in their career.

Cross-Cultural Studies

Cross-cultural studies of motivation are taking place in two areas. First, variances and similarities among motives and the relative importance of motives tend to indicate that there are routine differences in various cultures. Second, continuing research is oriented toward the understanding of which motivational theories are culture bound and which are more applicable to cultures other than the United States.


Motivation - How to Do in Practice

Has Luthans gave any ideas on how to motivate people in practice? I have to carefully look at this aspect once again. In management discipline we need to look at authors who have given practice perspective in an authoritative way. Then slowly researchers come and examine various issues and start giving their observations and interpretations. The results of the research studies modify the practice and we need fresh writing of books emphasizing the practice. Thus practice and theory complement each other providing more valid and effect practice instructions. My effort in the days to come is to present more and more focused practice instructions in every topic of management covered in standard text books.


References

Luthans, Fred, Organizational Behavior, 

9th Edition, McGraw Hill, New York, 2002

Introduction to Organizational Behavior - Online Book

May - Management Knowledge Revision - Cost and Management Accounting and Organizational Behavior


Updated 18 May 2019,  13 May 2019
21 May 2015
Last update  4 Dec 2011 - First posted

May 13, 2019

Stress, Conflict and Negotiation Skills

Organizational behavior revision article series



Stress



The father of stress studies, Hans Selye, feels that complete freedom from stress is death. Stress is still one of the most important and serious problems facing the field of organizational behavior. Stress can be comprehensively defined as an adaptive response to an external situation that results in physical, psychological, and/or behavioral deviations for organizational participants. The causes of stress can be categorized into extraorganizational, organizational, and group stressors, as well as individual stressors and dispositions. In combination or singly, they represent a tremendous amount of potential stress impinging on today's jobholder-at every level and in every type of organization.

The Causes of Stress - Antecedents of Stress - Stressors


Extraorganizational Stressors
Organizational Stressors
Individual Stressors: Personal Factors

Intraindividual Conflict


The dynamics of interactive behavior at interpersonal and group levels, and the resulting conflict, play an increasingly important role in the analysis and study of organizational behavior. Conflict and stress are conceptually and practically similar, especially at the individual level. Conflict at the intraindividual level involves frustration, goal conflict, and role conflict and ambiguity. Frustration occurs when goal-directed behavior is blocked. Goal conflict can come about from approach-approach, approach-avoidance, or avoidance-avoidance situations. Role conflict and ambiguity result from a clash in the expectations of the various roles possessed by an individual and can take the forms of role conflict, intrarole conflict, or interrole conflict.

The Effects of Stress and Intraindividual Conflict


The effects of stress and intraindividual conflict can create physical problems (heart disease, ulcers, arthritis), psychological problems (mood changes, lowered self-esteem, resentment of supervision, inability to make decisions, and job dissatisfaction), and/or behavioral problems (tardiness, absenteeism, turnover, and accidents).

A number of individual and organizational strategies have been developed to cope with these stress-induced problems. Exercise, relaxation, behavioral self-control techniques, cognitive therapy techniques, and networking are some potentially useful coping strategies that individuals can apply to help combat existing stress. Taking a more proactive approach, management of organizations can try to eliminate stressors, reduce work-family conflict, and implement employee assistance programs (EAPs).

A special concern for organizations today is to deal with the stress resulting from downsizing that affects both those laid off and the survivors. To manage this stress, downsizing organizations must fully communicate and display fair procedural justice for those let go. To counter survivor syndrome, downsized organizations can follow such guidelines as being proactive, acknowledging survivors' emotions, communicating after the cuts, and clarifying new roles. In any case, whether on an individual or an organizational level, steps need to be taken to prevent or reduce the increasing job stress facing today's employees.

Interpersonal Conflict


Interpersonal conflict is first examined in terms of its sources (personal differences, information deficiency, role incompatibility, and environmental stress). Then the analysis of interpersonal conflict is made through the response categories of forcing, accommodating, avoiding, compromising, and collaborating. Intergroup conflict has also become important. The antecedents to intergroup conflict are identified as competition for resources, task interdependence, jurisdictional ambiguity, and status struggles.

Negotiation Skills



Negotiation skills are becoming increasingly recognized as important to effective management and personal success.

Research at one time identified some common mistakes being made in negotiations.

1. Negotiating persons tend to be overly affected by the frame, or form of presentation, of information in a negotiation.
2. Even when a course of action is no longer the most reasonable alternative, negotiators tend to nonrationally escalate commitment to a previously selected or advocated course of action.
3. Negotiators tend to assume that their gain must come at the expense of the other party and thereby miss opportunities for mutually beneficial trade-offs  between the parties.
4. Negotiators judgments tend to be anchored on irrelevant information, such as initial offer.
5. Negotiators tend to rely on readily available information.
6. Negotiators tend to fail to consider information that is available by focusing on the opponent's perspective.
7. Negotiators tend to be overconfident concerning the likelihood of attaining outcomes that favor the individual(s) involved.

 Traditionally, negotiators have depended on distributed and positional bargaining. Distributed bargaining assumes a "fixed pie" and focuses on how to get the biggest share, or "slice of the pie" for the benefit of the negotiating party. Positional bargaining approach involved successively taking and then giving up, a sequence of positions. A position involves telling the other side what you want.

Strategies called soft and hard are used in traditional ways of negotiating.  Characteristics of the "hard strategy" include the following: the goal is victory, distrust others, dig into your position, make threats, try to win contest of will, apply pressure.

Soft strategy includes characteristics: The goal is agreement, trust others, change your position easily,  make offers,  try to avoid a contest of will, and yield to pressure.


The traditional approach is now being challenged by more effective alternative negotiation skills.

Whetten and Cameron suggest an approach that takes an "expanding the pie" perspective and advocates finding win-win outcomes. The approach recommends:

1. Establishing superordinate goals.
2. Separating people from the problem
3. Focusing on interests, not positions
4. Inventing options for mutual gain.
5. Using objective criteria.

In terms of negotiation techniques or manoevres the following are identified as in use by negotiators.

 Practical low-risk strategies include flattery, addressing the easy points first, silence, inflated opening position, and "oh, poor me."

High-risk strategies include unexpected temper losses, high-balling, Boulwarism, and waiting until the last moment.

Harvard Negotiation Project came up with principles negotiation approach or negotiation on the merits approach. This is an  integrative approach, which uses a problem-solving, collaborative strategy, and the principled, or negotiation on the merits approach, which emphasizes people, interests, options, and criteria. These negotiation skills  change the game, leading to a win-win, wise agreement.

Along with social, emotional, behavioral, leadership, team, and communication skills, negotiation skills are becoming increasingly recognized as important to effective management.

Conducting Effective Negotiations
Joel Peterson
Stanford Graduate School of Business
31 January 2007
____________________

____________________

Updated on 14 May 2019,  15 July 2014, 7 Dec 2011


July - Management Knowledge Revision

One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December

Article originally posted in
http://knol.google.com/k/narayana-rao/stress-conflict-and-negotiation-skills/ 2utb2lsm2k7a/165

May 12, 2019

Globalization and Technology - Impact on Organizational Behavior - Review Notes


Organizational Behavior – Theoretical Frameworks

Social Cognitive theory say behavior, personal factors and social factors reciprocally influence each other. Globalization and technology being used by organization is part of social factors that reciprocally influences personal factors and behavior. Hence study of globalization and technology as important trends in organizational change dimensions.

Information Technology


The impact of information technology on organizations is truly amazing and it is further going on without an end in sight.

The developments in information technology, intranet and internet allow organizations to go paperless in exchanging information with customers, suppliers and employees. The information systems and the communication systems also provide employees easy access to all the information and knowledge of the organization in order to make better decisions and improve customer service. The real implication of development of information technology for organizational behavior discipline is management of  the knowledge by the members of the organization.

The authors discussed the emerging field of knowledge management briefly in this context.

Globalization



Globalization is also impacting the organizational behavior. Understanding behavior of formal organization members in a global organization needs more theory than what is developed so far in OB that has emphasis on one country business.

The top 100 global companies employ more than 6 million foreign nationals. Companies complain that they are short of people with global leadership capabilities.

Culture



Culture can be defined as the acquired knowledge that people use to interpret experience and generate social behavior.

Differences among cultures



How people see themselves

People's relation to their world

Individualism versus collectivism

The time dimension

Public versus private space

Hofstede's Framework of Culture Differences

Trompenaars's Framework of Culture Differences

Persons working in global companies have to be given more inputs in multi-cultural practices to quickly adjust to the culture in various countries they may visit in short periods of time in fulfilling the job responsibility and interacting with colleagues and partners of the organization in those countries.


A brief on recent research project on Global leader ship issues is available at
http://nraombakc.blogspot.com/2011/12/leadership-globe-research-project.html

Introduction to Organizational Behavior - Online Book

May - Management Knowledge Revision - Cost and Management Accounting and Organizational Behavior

July - Management Knowledge Revision


Reference Text Book

Organizational Behavior, 9th Edition, Fred Luthans, McGraw Hill



Updated 13 May 2019, 18 May 2015
Earlier update  4 Dec 2011

Perception and Attribution - Review Notes


Perception is covered in a separate Note


Attribution refers to how people explain the cause of their behavior or others’ behavior. It is a cognitive process by which people draw conclusion about the factors that influence their behavior and others’ behavior.


Attribution Theories




There are two general types of attributions that people make: dispositional attributions and situational attributions. In dispositional attribution a person attributes his behavior to internal factors such ability and effort etc. In situational attributions, a person attributes his behavior to external factors such as quality of materials or machines used or social influence.



Attribution theory is concerned with the relationship between personal perception, social perception and interpersonal behavior. Attribution theories are many but they share the following assumptions.

1. People seek to make sense of the world.

2. People attribute actions to either internal (dispositional attributions) or external causes (situational attributions).
3. Attribution is done in fairly logical ways.

The credit for initiating the theory is given to Fritz Heider. Heider's conjecture is that both internal forces (personal attributes such as ability, effort, and fatigue) and external forces (environmental attributes like rules and atmospheric conditions) combine additively to determine behavior. Behavior differes from person to person based on his beliefs about the forces that dominate in a particular situation.


Locus of Control of a Person


Locus of control is a concept related to attribution.

Based on the series of attributions made by persons we can classify them as having internal locus of control or external locus of control. Internal locus of control persons will feel, for majority of the outcomes, their behavior, efforts, skills and ability are responsible. External locus of control persons will feel for majority of the outcomes, luck, task difficulty, behavior of other persons etc. are responsible.



There are some studies which found that internally controlled employees are generally more satisfied with their jobs, are more likely to be in managerial positions, and are more satisfied with a participatory management style. Some studies have found that internal locus managers are better performers.


Other Dimensions in Attribution Theory


Bernard Weiner suggested that a stability dimension is also there in attribution. The stability dimension has fixed and variable categories. Experienced employees have probably a stable internal attribution about their abilities. Ability is a stable variable. But effort is a variable internal factor. It varies from task to task

Kelley suggested that consensus is also an important dimension. Consensus is the perception about the question - do others act this way in this situation?


Some Finding and Conclusions from Attribution Studies



1. Bad luck attributions when made by the person himself or others take the sting out of a negative outcome.

2. Good luck attributions especially by others reduce the joy associated with success.

3. When individuals attribute their success to internal rather than external factors, they have higher expectations for future success, report a greater desire for achievement and set higher performance goals.

4. People tend to ignore powerful situational forces when explaining others’ behavior.

5. People attribute others’ behavior to personal factors such as intelligence, ability, attitude etc.

6. There is a self serving bias in attribution. People readily accept credit when told their success is due to their ability and effort. But will not accept if they were told that failure was due to their lack of effort.

7. Bosses blame the problems on the inability or poor attitude of the subordinates. But they blame the situation as far as they are concerned.


Attribution errors can be reduced by increasing interpersonal communication, workshops and team-building sessions.


Reference

Fred Luthans, Organization Behavior,

McGraw-Hill, New York, 2002.

Role of Perception in Organizational Behavior


Self-awareness is important for leaders and managers. Self-awareness is linked to self-reflection; by reflecting through introspection,  leaders gain clarity and concordance with respect to their core values, identity, emotions, motives and goals. Gaining self-awareness means working to understand how one derives and makes meaning of the world around him based on introspective self-reflective, testing of one's own hypotheses and self-schema. It is how one knows about how he knows in terms of Kegan’s (1982) notion of perspective-taking capacity. As originally defined, self-awareness represents an attention state where the individual directs his or her conscious attention to some aspect of the self (Duval & Wicklund, 1972; Hannah, 2005). It does not indicate whether the individual is accurate or inaccurate in his or her self-perception. Yet, by learning who they are and what they value,  leaders build understanding and a sense of self that provides an anchor for their decisions and actions.

Perception is also an important concept to understand others. Leaders have to avoid biases in perceiving others.


Anthony Tjan is CEO, Managing Partner and Founder of the venture capital firm Cue Ball, vice chairman of the advisory firm Parthenon, has written, "There is one quality that trumps all, evident in virtually every great entrepreneur, manager, and leader. That quality is self-awareness."



Become more self-aware. 

Here are three key ways to become more self-aware.

1. Test and know yourself better.

2. Watch Yourself and Learn.

3. Be aware of others, too. Self-awareness is crucial when building a team.

The trinity of self-awareness: know thyself, improve thyself, and complement thyself.

https://hbr.org/2012/07/how-leaders-become-self-aware/

http://sloanreview.mit.edu/article/self-awareness-a-key-to-better-leadership/


Introduction to Organizational Behavior - Online Book

May - Management Knowledge Revision - Cost and Management Accounting and Organizational Behavior



Updated  13 May 2019

19 May 2015, 10 July 2014, 4 Dec 2011



Personality and Attitudes




Personality and attitudes represent important micro, cognitively oriented variables in the study of organizational behavior.

Personality - Introduction

Personality represents the "whole person" concept. It includes perception, learning, motivation, and more. According to this definition, people's external appearance and traits, their inner awareness of self, and their person-situation interaction make up their personalities.

In personality theory, different approaches have been tried. The historically important ones include trait theory (observable patterns of behavior that recur frequently), Freud's psychoanalytic or psychodynamic theory (in which personality is shaped by unconscious determinants of behavior), and Carl Rogers and Abraham Maslow's humanistic theory (Every person strives to realize one's potential).

Although the nature versus nurture debate in shaping personality continues, the findings of twin studies of the importance that heredity may play in personality and recent breakthroughs in neuropsychology that points to the importance of the brain in personality have led most psychologists to recognize both nature and nurture. However, the nurture side still dominates.

In personality theory, the study of relatively fixed predispositions has resurfaced in the form of the "Big Five" personality traits. Conscientiousness, emotional stability, agreeableness, extraversion, and openness to experience have been found to significantly relate to job performance, especially conscientiousness. In addition, the Myers-Briggs Type Indicator (MBTI) remains a popular tool for personal and career development. Whereas the Big Five is based on research, the MBTI is based on the historically important Carl Jung theory of personality types and mental processes. Both the Big Five and MBTI if carefully interpreted and used can make a contribution to the understanding and application of organizational behavior.

Personality and Related Concepts

 
Luthans has taken the position that personality will mean how people affect others and how they understand and view themselves, as well as their pattern of inner and outer measurable traits and their person-situation interaction behavior.

 
Self-Variables

The self of a person is a unique product of many interacting parts and may be thought of as the personality viewed by a person within. People's understanding regarding themselves is called self-concept in personality theory. Self-esteem, multiple intelligences, emotion, optimism and efficacy are important self-variables and have application in organizational behavior.

Self-Esteem

 
Self-esteem includes people's self perceived competence and self-image. Is high self esteem good for organization's performance? Kreitner and Kinicki concluded that high self esteem can be good thing only when it is nurtured and channeled in constructive and ethical ways. Otherwise, it can become antisocial and destructive. So behavior managers have a role to play in getting the appropriate performance from high self-esteem individuals.

An elaboration of self esteem in organizational context has emerged. It is called organization-based self esteem (OBSE). It is defined as the self-perceived value that individuals have of themselves as organization members acting within an organization context.

Self esteem is a global trait, meaning it is present interactions of an individual in a similar way.

The Big Five Personality Traits

Researchers have identified 171 personality traits on which persons can be ranked or measured. This 171 trait list was prepared after sufficient effort in reducing the number of traits by identifying similar traits and combining them. From these 171 traits, five core personality traits called the five factor model was found to be of value for use in organizational situations.

These five traits are:
  •     Conscientiousness
  •     Emotional stability
  •     Agreeableness
  •     Extraversion
  •     Openness to experience
To get a high score on these parameters the person must have the following characteristics or behavior.

To get a high score on conscientiousness, the person has to be dependable, hardworking, organized, self-disciplined, persistent and responsible.

To get a high score on emotional stability, the person has to be normally calm, secure, happy and unworried.

To get a high score on agreeableness, the person has to be cooperative, warm, caring, good-natured, courteous and trusting.

To get a high score on openness to experience, the person has to be curious, flexible, creative, imaginative, artistically sensitive, open to other cultures and open to intellectual discussions.

These big Five dimensions have to managed by the managers appropriately in a leadership or managerial situation to get favorable outcomes.(Article by Prof Ginka Toegel (IMD) and Jean-Loui Brasoux -
http://sloanreview.mit.edu/article/how-to-become-a-better-leader/  )

Myers- Briggs Type Indicator (MBTI)


In the 1940s, Katharine Briggs and  Isable Briggs-Myers developed a personality test to measure their preferences on four pairs of traits proposed earlier by Carl Jung in the 1920s.

These four traits are extraversion-introversion, sensing-intuiting, thinking-feeling, and judging-perceiving.

Extraversion and introversion are related to feeling energetic and comfortable. Extraverts are more energetic in groups. Introverts are more energetic and productive alone.

Sensing and intuiting are related to collecting information for solving a problem. People who prefer sensing look into the specifics of situation, want concrete evidence and facts, go into details and are practical persons. People who prefer intuition look into possibilities, are satisfied with general description of the situation, use abstract and theoretical ideas.

Thinking and feeling are related to evaluation of alternatives for decision making. People who prefer thinking are analytical, they follow a set of rules, use their head or brain and are more inclined to judge based on the evidence. Persons who prefer feeling, are more subjective, take circumstances into account and are not so rule bound, they use heart in preference to brain and may show mercy (or vindictiveness in negative manner).

Judging and perceiving are related to the orientation of a person to the outside world. Persons who show the traits of judging are organized, structured, time oriented and decisive people.Persons who show traits of perceiving are seen more as flexible persons who explore things spontaneously and are open ended with behavior.

Socialization

Nurture is socialization. Every new born child is nurtured or socialized by his parents, relatives, neighbors,  friends, teachers, religious priests, his superiors, subordinates etc. Personality development is influenced by socialization.

Application of Various Personality Theories and Concepts in Organization Behavior Theory

Self-esteem is an important variable. If a person has low self-esteem and not confident about his thinking ability, he likely to fear decision making and may not be able to assert himself in interpersonal relations. Research has shown that employees with high self esteem feel unique, competent, secure,  and empowered.

Socialization

Schein has advocated that organizations must have socialization process.

The socialization process helps in changing attitudes, values and behaviors. It ensures continuity and consistency of behavior of various persons of the organization. It will facilitate adjustment to new jobs, work groups and new practices. The early period of socialization of new recruits is a critical period.

The important activities related to socialization process of an organization include:

1. Relevant training
2. Timely and consistent feedback
3. Initial work under good supervisors
4. A orientation program
5. Socialization in high morale work groups.
6. Challenging jobs in the early part of career.

Deliberate and well designed socialization programs do have tremendous potential impact on the personality development of members of an organization within the organization (personality development after they have joined the organization).

Attitude

An attitude can be defined as a persistent tendency to feel and behave in a particular way toward some object.

Attitudes are a complex cognitive variables that have three basic characteristics: they are directed toward an object about which a person has feelings, and beliefs,  they persist unless changed in some way; and they range along a continuum from positive to negative. 

Attitudes have three components: emotional (feelings), informational, and behavioral. Behavior can be observed, but the feelings and belief which give rise to the behavior cannot be observed.

Attitudes, being persistent often help employees adapt to their work environment by providing a way of interpreting things or happenings in the environment. There are four functions that attitudes have in this process: (1) they help people adjust to their environment, (2) they help people defend their self-image, (3) they provide people with a basis for expressing their values, and (4) they help supply standards and frames of reference that allow people to organize and explain the world around them.

Changing Attitudes

Attitudes can be changed.

But it is sometimes difficult to change attitudes. There are two important barriers.  One reason is prior commitments. A second is insufficient information on the part of the person having an attitude to be changed.

Research shows that some of the ways of bringing about attitude changes are providing new information, and persuasion by friends or peers, and co-opting. Fear also helps in changing attitudes. There are some instances, where or when an individual may be in stage of forming attitude or belief. Organizations can provide appropriate information and create appropriate situation to develop desirable attitudes at that point of time.

Personality traits or dispositions, such as positive affectivity (PA) and negative affectivity (NA), are important antecedents to attitudes about one's job.

Traditionally the most important attitude studied and given concern in the real world is job satisfaction.

Job Satisfaction

This attitude is defined as a pleasurable or positive emotional state resulting from the appraisal of one's job or job experience. More simply stated, it an attitude toward the job. Does the person has a positive attitude or negative attitude toward job.

A number of factors influence job satisfaction. Job satisfaction is a combination of attitudes towards factors related to a job.Some of the major ones are the work itself, pay, promotions, supervision, the work group, and working conditions.

There are a number of outcomes of job satisfaction. For example, There is relationship between satisfaction and job performance.  Although the relationship with performance was thought to be relatively weak (0.17), recent research is showing a much stronger relationship. Low job satisfaction tends to lead to both turnover and absenteeism, whereas high job satisfaction often results in fewer on-the-job accidents and work grievances, less time needed to learn new job-related tasks, and less stress.

Efforts to Increase Job Satisfaction

A job satisfaction has positive impact on many desirable outcomes of the organizations, management can take some steps to increase job satisfaction.

Some of the specific guidelines mentioned by Luthans:
  • Make jobs more fun,
  • Ensuring fairness,
  • Get the right fit,
  • Design jobs to make them more exciting and satisfying.

Organizational Commitment Attitude

Closely related to job satisfaction is the organizational commitment attitude. It traditionally refers to the employees' loyalty to the organization. An an attitude, organizational commitment is defined as (1) a strong desire to remain a member of a particular organization; (2) a willingness to exert high levels of effort on behalf of the organization; and (3) a definite belief in, and acceptance of, the values and goals of the organization.

Organizational commitment is determined by a number of personal, organizational, and nonorganizational variables.

Now commitment is generally conceived as having three components:

Affective (emotional attachment),
Continuance (costs of leaving): willingness to stay in the organization due to costs of leaving. 
Normative (obligation to stay): The person feels it obligatory to stay in the organization.

Like job satisfaction, the organizational commitment attitude is very complex (composed of number of attitudes towards various factors in the organization) and has mixed results with respect to desired outcomes of the organization. But in general, it is thought to have a somewhat stronger relationship with organizational outcomes such as performance, absenteeism, and turnover.

Like satisfaction, organizational commitment can be enhanced.

Organizational Citizenship Behaviors (OCBs) 

Organ defines this concept as "individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the organization." The OCBs can be a personality level concept.

The extra-role, prosocial/organizational citizenship behaviors (OCBs) involve predispositional traits to be cooperative and conscientious. OCBs include  a variety of behaviors, and the major ones are  altruism, conscientiousness, civic virtue, sportsmanship, and courtesy. In an organization perceived as a just organization, more employee display OCBs.

Although there is still some criticism of the conceptualization and research of OCBs, there is growing evidence that OCBs positively relate to individual, group, and organizational performance.
 

References 

Fred Luthans, Organizational Behavior,  McGraw-Hill, 10th Edition, 2005 (Main Text for Revision Articles)

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