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Chapter 3 Values, Attitudes and their Effects Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP Values • Values – basic conviciton about what is important, right and good to the individual • Values are measured by content (what) and intensity (how much) • Ranking a person’s values describes their value system • Values are generally enduring over time • Milton Rokeach: • Terminal Values – describe a person’s desirable end state if existence • Instrumental Values – describe a person’s mode of behaviour to achieve the terminal values Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP Values • Values are a foundation for understanding attitudes and motivation • Values influence perception, attitudes and behaviours • Values influence what people think about what ought and what ought not to be • Values are formed in the context of individual values as well as cultural values Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP Cultural Values • Geert Hofstede surveyed a bunch (116000) IBM employees in 40 countries and found 5 value dimensions on which cultures differed – Power Distance – the degree to which people accept that power is distributed equally or not – Individualism vs. Collectivism – the degree to which people prefer to act as individuals vs. in groups – Quantity of Life vs. Quality of Life – the degree to which values such as assertiveness, competitiveness and desire to acquire money prevail (like Type A of a society) – Uncertainty Avoidance – the degree to which people prefer structured vs. unstructured situations – Long-term vs. short-term orientation – the degree to which people value long term persistence vs.. Short term valuing present and past, fulfilling social obligations • Refer to page 85 for ratings by country Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP Canadian Social Values • Michael Adams attempted to define the Canadian Social Value system – – – – – He came up with 4 general groups exhibiting similar values The Elders – play by the rules The Boomers – Reject authority Gen X – experience seeking Ne(x)t Gen – creators, curious, flexible • Anglophone vs. Francophones vs. Aboriginals – Francophones – collectivist, need for achievement, value affiliation – Anglophones – more individualist, value autonomy – Aboriginals – Collectivist, community oriented, sense of family, loyalty Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP Attitudes • Attitudes are positive or negative feelings about objects, people or event • They are responses to situations • Attitudes are responses. Values are convictions • One’s value base can influence one’s attitudes to a situation Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP The 3 Key Attitudes for OB • Job Involvement – Measures the degree to which people identify psychologically with their jobs and consider their perceived performance level important to self-worth – Employees with high levels of job involvement identify strongly with and really care about their jobs • Organizational Commitment – Where an employee identifies with a particular organization and its goals and wishes to maintain membership in that organization – Question: How has Organizational Commitment changed in the last few decades? • Job Satisfaction – An individual’s general attitude toward his or her job Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP Job Satisfaction • Angus Reid poll of Canadians – 47% are very satisfied with their jobs, 39% somewhat satisfied – 44% agree their work as challenging, 27% somewhat agree – 75% indicate that they are treated fairly at work • But – 40% of Canadians would not recommend their company as a good place to work • Thinking about Maclean’s Magazine Top 100, these companies are evaluated on (http://www.canadastop100.com/research.html): – – – – – – – 1) Physical Workplace 2) Work Atmosphere & Social 3) Health, Financial & Family Benefits 4) Vacation & Time Off 5) Employee Communications 6) Performance Management 7) Training & Skills Development. Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP Job Satisfaction • Job satisfaction is strongly tied to customer satisfaction • Job satisfaction tends to be higher at higher levels of the organization • Job satisfaction is tied to productivity (but only slightly) at the individual level • The relationship between satisfaction and productivity at the organization level is much stronger • Job satisfaction is stronger in jobs where people have greater control over their job tasks • Note also, some studies have shown that productivity leads to satisfaction rather than vice versa Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP Cognitive Disonance • Cognitive Disonance the incompatibility that individuals perceive between their attitudes and behaviours • Individuals will act to change their attitudes or behaviours to make them more congruent with each other • Read OB in the Street (p. 99) – What do you think? • Class Exercise – Read the Case Incident in the News – Respond to Q’s 1, 2, 3 Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP So, why do we care? • Values don’t directly impact behaviour, ubt they do influence attitudes • Knowledge of a person's value system can give insight into their attitudes • Also, knowing a person’s value system and comparing it to that of the organization can help determine whether there is a good organizational fit. • Value differences should be celebrated and understood • Chapter 4 Organizational Behaviour Dave Ludwick, P.Eng, MBA, PMP