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University of Bahrain College of Business Administration MGT 233: Organizational Behavior Managing People and Organization Chapter : 3 Foundations of Individual Behavior Dr.Mahmood Asad MGT 233 3–1 Chapter Learning Objectives After studying this chapter you should be able to: 1. Explain the nature of the individual-organization relationship. 2. Define personality and describe personality attributes that affect behavior in organizations. 3. Discuss individual attitudes in organizations and how they affect behavior. 4. Describe basic perceptual processes and the role of attributions in organizations. 5. Explain how workplace behaviors can directly or indirectly influence organizational effectiveness. Dr.Mahmood Asad MGT 233 3–2 • People in Organizations Psychological Contracts: A psychological contract is the overall set of A. expectations held by an individual with respect to what he or she will contribute to the organization and what the organization, in return, will provide to the individual. It is similar to a standard legal contract, except that it is usually less formal and less well defined. 1. The individual makes several contributions to the organization, including effort, ability, loyalty, skills, time, and competencies, in return for the inducements offered by the organization. 2. Inducements offered by the organization include pay, job security, benefits, career opportunities, status, and promotion opportunities. Dr.Mahmood Asad MGT 233 3–3 (cont’d) 3. Either party may seek changes in the contract if an imbalance or inequity is felt. The task of management is to properly manage the psychological contracts with all employees. 4. Increasing globalization of business also complicates the management of psychological contracts because the array of inducements that employees deem to be of value varies across cultures. Also, the psychological contract becomes even more complex for employees who take international assignments. Dr.Mahmood Asad MGT 233 3–4 FIGURE 3.1 Dr.Mahmood Asad The Psychological Contract MGT 233 3–5 (cont’d) B.The Person-Job Fit: Part of managing the psychological contract is making sure that the contributions made by the individual fit with the inducements offered by the organization. Hiring processes, training programs, performance appraisal systems, and other organizational processes are techniques that organizations can use to assist in helping the person fit the job. Dr.Mahmood Asad MGT 233 3–6 People in Organizations • Person-Job Fit – The extent to which the contributions made by the individual match the inducements offered by the organization • Individual Differences – Personal attributes that vary from one person to another Dr.Mahmood Asad MGT 233 3–7 (cont’d) C. Individual Differences. Although people are similar to one another in many ways, there are significant differences. We all have a unique set of individual differences in the ways we think, interpret our environment, and respond to that environment. 1. Individual differences are personal attributes that vary from one person to another and may be physical, psychological, and emotional. 2. The basic categories of individual differences include personality, attitudes, perception, and creativity. The way these individual differences affect employee work behaviors depends on the work situation. Dr.Mahmood Asad MGT 233 3–8 Personality and Organizations • The “Big Five” Personality Traits – A set of fundamental traits that are especially relevant to organizations Agreeableness The ability to get along with others Conscientiousness The number of goals on which a person focuses Neuroticism Experiencing anger, anxiety, moodiness/insecurity Extraversion The quality of being comfortable with relationships Openness The capacity to entertain new ideas and to change as a result of new information Dr.Mahmood Asad MGT 233 3–9 (cont’d) II. Personality and Organizations. Personality is the relatively stable set of psychological attributes or traits that distinguish one person from another. Personality plays a major role in how a person perceives his or her work environment, evaluates it, and responds to it. A person’s personality starts forming at birth and continues through adolescence. By the time most people reach adulthood, their personalities are clearly defined and generally stable. Significant events can contribute to changes in an adult’s personality. Dr.Mahmood Asad MGT 233 3–10 (cont’d) 1. Agreeableness refers to a person’s ability to get along with others. It causes some people to be gentle, cooperative, forgiving, understanding, and good-natured in their dealings with others. But it may result in others being irritable, short-tempered, uncooperative, and generally antagonistic toward other people. 2. Conscientiousness refers to the number of goals on which a person focuses. Research has found that more conscientious people tend to be higher performers than less conscientious people across a variety of different jobs. 3. Neuroticism refers to people who experience unpleasant emotions such as anger, anxiety, depression, and feelings of vulnerability more often than do people who are relatively less neurotic. People who are more neurotic are more excitable, insecure, reactive, and subject to extreme mood swings. Dr.Mahmood Asad MGT 233 3–11 (cont’d) 4. Extraversion refers to a person’s comfort level with relationships. People who are called extroverts are sociable, talkative, assertive, and open to establishing new relationships. Research suggests that extroverts tend to be attracted to jobs based on personal relationships like sales and marketing positions and tend to be higher overall job performers than introverts. 5. Openness refers to a person’s rigidity of beliefs and range of interests. People with high levels of openness are willing to listen to new ideas and to change their own ideas, beliefs, and attitudes as a result of new information. They may also have broad interests and be curious, imaginative, and creative. Openness may also indicate more receptivity to change rather than resistance to change. Dr.Mahmood Asad MGT 233 3–12 FIGURE 3.2 Dr.Mahmood Asad The “Big Five” Personality Framework MGT 233 3–13 Personality and Organizations (cont’d) The Myers-Briggs Framework ◦ Differentiation across four general dimensions Sensing Intuiting Judging Perceiving ◦ Sixteen personality classifications result from the higher and lower positions of the general dimensions ◦ Myers-Briggs Type Indicator (MBTI) is a popular questionnaire used to assess personality types Communications styles Interaction preferences Dr.Mahmood Asad MGT 233 3–14 Personality and Organizations (cont’d) • Emotional Intelligence (EQ) – The extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy for others, and possess social skills • Dimensions of EQ – – – – – Self-awareness Managing emotions Motivating oneself Empathy Social skills Dr.Mahmood Asad MGT 233 3–15 Other Personality Traits at Work Locus of Control The extent to which a person believes his/her circumstances are a function of either his/her own actions or of external factors beyond his/her control Self-Efficacy A person’s beliefs about his/her capabilities to perform a task Authoritarianism The belief that power and status differences are appropriate within hierarchical social systems such as organizations Machiavellianism Behavior directed at gaining power and control of others Self-Esteem The extent to which a person believes he or she is a worthwhile/deserving individual Risk Propensity The degree to which a person is willing to take chances and make risky decisions Dr.Mahmood Asad MGT 233 3–16 Attitudes in Organizations • Attitudes – A person’s complexes of beliefs and feelings about specific ideas, situations, other people • Structural Components of Attitudes – Cognition: the knowledge a person presumes to have about something – Affect: a person’s feelings toward something – Intention: a component of an attitude that guides a person’s behavior Dr.Mahmood Asad MGT 233 3–17 FIGURE 3.3 Dr.Mahmood Asad Attitude Formation MGT 233 3–18 Attitudes in Organizations (cont’d) • Cognitive Dissonance – The anxiety a person experiences when he/she simultaneously possesses two sets of knowledge or perceptions that are contradictory or incongruent • Why Attitudes Change ? Employees’ attitudes may be changed if management provides employees with information that supports the desired change. Another way to change attitudes is to take action that eliminates the cause of the undesired attitudes. Attitudes may also be changed through processes associated with dissonance reduction. Dr.Mahmood Asad MGT 233 3–19 Attitudes in Organizations Key Work-Related Attitudes Job satisfaction The extent to which a person is gratified or fulfilled by his or her work Organizational commitment (job commitment) A person’s identification with and attachment to an organization Affect and Mood in Organizations Positive affectivity Upbeat and optimistic, overall sense of wellbeing, seeing things in a positive light Negative affectivity Downbeat and pessimistic, seeing things in a negative way, seeming to be in a bad mood Dr.Mahmood Asad MGT 233 3–20 Perception in Organizations Perception ◦ The set of processes by which an individual becomes aware of and interprets information about the environment Selective perception :is the process of screening out information with which we are uncomfortable or that contradicts our beliefs. Stereotyping : is the process of categorizing or labeling people on the basis of a single attribute or characteristic. Attribution Theory ◦ We attribute causes to behavior based on our observations of certain characteristics of that behavior Consensus Consistency Distinctiveness Dr.Mahmood Asad MGT 233 3–21 (cont’d) • Attribution Theory – We attribute causes to behavior based on our observations of certain characteristics of that behavior • Consensus :is the extent to which other people in the same situation behave in the same fashion. • Consistency: is the extent to which the same person behaves in the same fashion at different times. • Distinctiveness : is the extent to which the same person behaves in the same fashion in other situations. Dr.Mahmood Asad MGT 233 3–22 (cont’d) d)Attributions can be internal or external. (1) Internal attributions are those that attempt to explain a situation in terms of factors internal to the person involved (the person is unqualified, too lazy, too immature for the job, etc.). (2) External attributions are those that attempt to explain a situation in terms of factors external to the person (the job is too difficult, time is too short, the equipment is obsolete, etc.). Dr.Mahmood Asad MGT 233 3–23 FIGURE 3.4 Dr.Mahmood Asad Basic Perceptual Processes MGT 233 3–24 FIGURE 3.5 Dr.Mahmood Asad The Attribution Process MGT 233 3–25 Types of Workplace Behavior V. Types of Workplace Behavior. Workplace behavior is a pattern of action by the members of an organization that directly or indirectly influences organizational effectiveness. A. Performance behaviors are the total set of work-related behaviors that the organization expects the individual to display. 1. Performance behaviors derive from the psychological contract. 2. Performance behaviors may be either narrowly defined and easily measured or more diverse and difficult to assess. Dr.Mahmood Asad MGT 233 3–26 Types of Workplace Behavior (cont’d) • Dysfunctional Behaviors – Behaviors that detract from organizational performance • Absenteeism: when an individual does not show up for work • Turnover: when people quit their jobs • Organizational Citizenship – The extent to which a person’s behavior makes a positive overall contribution to the organization Dr.Mahmood Asad MGT 233 3–27 (cont’d) B. Dysfunctional Behaviors. Another important type of workplace behavior is that which results in employee withdrawal: absenteeism and turnover. 1. Absenteeism occurs when an individual does not show up for work. Absenteeism may be for legitimate reasons or feigned. In either case the work normally done by an absent employee does not get done, so organizations usually try to reduce absenteeism of either type. 2. Turnover occurs when people quit their jobs. Turnover usually results from a number of factors, including aspects of the job, the organization, the individual, the labor market, and family influences. Some turnover is inevitable and may even be desirable in certain situations. Dr.Mahmood Asad MGT 233 3–28 (cont’d) C. Organizational citizenship refers to the behavior of individuals who make a positive overall contribution to the organization. 1. An employee who fulfills the basics of the job (the psychological contract) but is never around when the extra effort is required may not be considered a good organizational citizen. 2. Fulfilling the basics of the job, helping out whenever needed, and performing the extra level of effort is often termed good citizenship. 3. Good citizenship is a complex mosaic of individual, social, and organizational variables Dr.Mahmood Asad MGT 233 3–29 Organizational Behavior in Action • After reading the chapter: –What specifically would convince you that an organization would be likely to honor its psychological contract with you? –What actions could you personally take to increase the person-job fit for your first job after graduation? –Which of the “Big Five” personality traits would be the easiest to fake in an interview? Which would be the hardest? Dr.Mahmood Asad MGT 233 3–30