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COURSE OUTLINE Organizational Behavior School: Management Dept: Human Resource Management September 2011 1 Chapter 1 Introduction to the Field of Organizational Behavior LEARNING OBJECTIVES 1.Define organizational behavior (OB). 2.Give three reasons for studying this field of study. 3.Discuss how globalization influences organizational behavior. 4.Identify changes in the workforce in recent years. 5.Explain why values have gained importance in organizations. 6.Identify the five anchors on which organizational behavior is based. 7.Diagram an organization from an open systems view. 8.Define knowledge management and intellectual capital. 9.Identify specific ways that organizations acquire and share knowledge. CHAPTER OVERVIEW This course is about people working in organizations. Its main objective is to help students understand behavior in organizations and to work more effectively in organizational settings. Organizational behavior knowledge is not only for managers and leaders. It is relevant and useful to anyone who works in and around organizations. In this chapter, we introduce you to the field of organizational behavior, outline the main reason why you should know more about it, highlight some of the organizational trends influencing the study of organizational behavior, describe the fundamental perspectives behind the study of organizations, and introduce the concept that organizations are knowledge and learning systems. CHAPTER OUTLINE 1. The field of organizational behavior Defining the organizational behavior What are organizations? Why study organizational behavior? 2. Organizational behavior trends Globalization 2 Information technology and OB The changing workforce Emerging employment relationships Workplace values and ethics 3. The five anchors of organizational behavior The multidisciplinary anchor The systematic research anchor The contingency anchor The multi levels of analysis anchor The open systems anchor 4. Knowledge management Knowledge management processes What is organizational memory? REVIEW QUESTIONS 1. A friend suggests that organizational behavior courses are useful only to people who will enter management careers. Discuss the accuracy of your friend’s statement. 2. What is an organization? Is the family unit an organization? Explain. 3. Corporate social responsibility is one of the hottest issues in corporate boardrooms these days. In your opinion, why have stakeholders given CSR more attention recently? 4. “Organizational theories should follow the contingency approach.” Comment on the accuracy of this statement. 5. “Behavior is generally predictable, so there is no need to formally study OB.” Why is that statement wrong? 6. What are the three levels of analysis in our OB model? Are they related? If so, how? 7. After hearing a seminar on knowledge management, a mining company executive argues that this perspective ignores the fact that mining companies could not rely on knowledge alone to stay in business. They also need physical capital (such as digging and ore processing equipment) and land (where the minerals are located). In fact, these two may be more important than what employees carry around in their heads. Discuss the merits of the mining executive’s comments. 3 Chapter 2 Individual Behavior, Values and Personality LEARNING OBJECTIVES 1. Diagram the MARS model. 2. Identify three basic ways to match individual competencies to job requirements. 3. Identify five types of individual behavior in organizations. 4. Define values and explain why values congruence is important. 5. Define the six main values that vary across cultures. 6. List four ethical principles. 7. Identify the “Big Five” personality dimensions. 8. Summarize the personality concepts behind the Myers-Briggs Type Indicator. 9. Explain how personality relates to Holland’s model of vocational choice. CHAPTER OVERVIEW This chapter begins by presenting a basic model of individual behavior and results (called the MARS model) and outlining the main types of behavior in the workplace. The next section looks closely at values, including Schwartz’s model of personal values, issues relating to values congruence, the dynamics of cross-cultural values, and key features of ethical values in the workplace. In the latter part of this chapter, we examine the relationship between personality and behavior, the five-factor model of personality, the Myers-Briggs Type Indicator, and other personality characteristics that are often discussed in organizational behavior research. The chapter closes by examining Holland’s theory of personality and career fit. CHAPTER OUTLINE 1. MARS model of individual behavior and results Employee motivation Ability 4 Role perceptions Situational factors 2. Types of individual behavior in organizations Task performance Exhibiting organizational behavior Counterproductive work behaviors Joining and staying with the organization Maintaining work attendance 3. Values in the workplace Defining values Types of values Value congruence 4. Values across cultures Individualism and collectivism Power distance Uncertainty avoidance Achievement vs. nurturing orientation Long- vs. short-term orientation 5. Ethical values and behavior Defining ethics Four ethical principles 6. Personality in organization Defining personality The origins of personality Personality and organizational behavior The big five personality dimensions Myers-Briggs Type Indicator Other personality traits Personality and vocational choice 5 REVIEW QUESTIONS 1. Describe the MARS model and indicate the relationships between MARS and behaviors. 2. What are the five types of individual behavior in organizations? 3. Contrast organizational citizenship behaviors and counterproductive work behaviors. 4. Describe types of values. 5. What are the six main values that vary across cultures? 6. What are the five dimensions of “Big Five Model”? 7. Describe the four dimensions of MBTI. 8. Describe the implications of Holland’s theory. 6 Chapter 3 Perception and Learning in Organizations LEARNING OBJECTIVES 1. Outline the perception process. 2. Explain how we perceive ourselves and others through social identity. 3. Outline the reasons why stereotyping occurs and the perceptual problems it creates. 4. Describe the attribution process and two attribution errors. 5. Summarize the self-fulfilling prophecy process. 6. Explain how empathy and the Johari Window can help improve our perceptions. 7. Define learning. 8. Describe the A-B-C model of behavior modification and the four contingencies of reinforcement. CHAPTER OVERVIEW This chapter begins by describing the perceptual process, that is, the dynamics of selecting, organizing, and interpreting external stimuli. Social identity theory, which has recently become a leading perceptual theory in organizational behavior, is introduced. Next, we look at the dynamics of stereotyping, including ways of minimizing stereotype biases in the workplace. Attribution, self-fulfilling prophecy, and other perceptual issues are then discussed, followed by an overview of empathy and Johari Window as general strategies to minimize perceptual problems. CHAPTER OUTLINE 1. The perceptual process Model of the perceptual process What is selective attention? Perceptual organization and interpretation 2. Social identity theory What is social identity theory? Perceiving others through social identity 3. Stereotyping in organizational settings 7 What is stereotyping? Why stereotyping occurs Problems with stereotyping Minimizing stereotyping bias 4. Attribution theory Attribution theory What is attribution process? Attribution errors 5. Self-fulfilling prophecy What is self-fulfilling prophecy? Self-fulfilling prophecies in practice 6. Other perceptual errors Primacy effect Recency effect Halo effect Projection bias 7. Improving perceptions Improving perceptions through empathy Know yourself: Applying the Johari Window 8. Learning in organizations Learning explicit and tacit knowledge 9. Behavior modification A-B-C’s of behavior modification Contingencies of reinforcement Schedules of reinforcement Behavior modification in practice 10. Social learning theory Behavioral modeling Learning behavior consequences Self-reinforcement 11. Learning through experience Experiential learning in practice REVIEW QUESTIONS 1. 2. 3. 4. 5. 6. What is selective attention? Identify the influences on selective attention. What is social identity theory? Why does stereotyping occur? Describe the attribution theory. What are the two attribution errors? 8 7. Diagram the self-fulfilling prophecy cycle. 8. Describe the perceptual errors. 9. How to improve people’s perceptions 10. What is learning in organizations? 11. What are the four contingencies of reinforcement? 12. Describe the four schedules of reinforcement. 9 Chapter 4 Workplace Emotions and Attitudes LEARNING OBJECTIVES 1. Define emotions and identify the two dimensions around which emotions are organized. 2. Diagram the model of emotions, attitudes, and behavior. 3. Identify the conditions that require and the problems associated with emotional labor. 4. Describe the four dimensions of emotional intelligence. 5. Summarize the effects of job satisfaction in terms of the exit-voice-loyalty-neglect model. 6. Compare the effects of affective and continuance commitment on employee behavior. 7. Describe five strategies to increase organizational commitment. CHAPTER OVERVIEW This chapter presents the most up-to-date information available on the topic of workplace emotions and attitudes. We begin by understanding the meaning and types of emotions. This is followed by a close look at how attitudes are formed, and new thinking about how emotions influence both attitudes and behavior in the workplace. Next, we consider the dynamics of emotional labor, including the conditions requiring and ways of supporting emotional labor. This leads to the popular topic of emotional intelligence, which presents the current perspective on the components of emotional intelligence and ways of improving this ability. Job satisfaction, the most widely studied work attitude, is then discussed. We look at job satisfaction around the world, the effects of job satisfaction on work behavior, and new findings regarding the relationship between job satisfaction and employee performance and customer 10 satisfaction. The next section provides an overview of organizational commitment, including the types of commitment, consequences of commitment, and ways to builf affective commitment. CHAPTER OUTLINE 1. Emotions in the workplace Defining emotions Types of emotions Emotions, attitudes, and behavior Model of emotions, attitudes, and behavior Linking emotions to attitudes and behavior Cognitive dissonance Emotions and personality 2. Managing emotions at work Defining emotional labor Conditions requiring emotional labor Emotional dissonance Supporting emotional labor Emotional intelligence 3. Job satisfaction What is job satisfaction? Job satisfaction and work behavior Job satisfaction and performance Job satisfaction and customer satisfaction 4. Organizational commitment What is organizational commitment? Consequences of organizational commitment Building organizational commitment REVIEW QUESTIONS 11 1. 2. 3. 4. 5. 6. 7. What are emotions? Diagram the model of emotions, attitudes, and behavior. What are types of emotions? What is emotional labor? Describe the conditions requiring emotional labor. Describe the four dimensions of emotional intelligence. Describe job satisfaction and the relationship between job satisfaction and work behavior. 8. Describe the relationship between job satisfaction and performance. 9. Describe the relationship between job satisfaction and customer satisfaction. 10. Describe affective commitment and continuance commitment. 12 Chapter 5 Motivation in the Workplace LEARNING OBJECTIVES 1. Compare and contrast Maslow’s needs hierarchy theory with Alderfer’s ERG theory. 2. Describe four innate drives and explain how these drives influence motivation and behavior. 3. Summarize McClelland’s learned needs theory, including the three needs he studied. 4. Discuss the practical implications of needs-based motivation theories. 5. Diagram the expectancy theory model and discuss its practical implications for motivating employees. 6. Describe the characteristics of effective goal setting and feedback. 7. Summarize the equity theory model, including how people try to reduce feelings of inequity. 8. Identify the factors that influence procedural justice, as well as the consequences of procedural justice. CHAPTER OVERVIEW In this chapter, we look at the prominent theories of motivation in organizational settings. We begin by looking at needs-based motivation theories, including Maslow’s needs hierarchy, Alderfer’s ERG theory, innate drive theories, and McClelland’s learned needs theory. Next, this chapter details expectancy theory, which applies a rational decision perspective to the topic of motivation. The third section of this chapter covers the key elements of goal setting and feedback, including the topics of multisource feedback and executive coaching. In the final section, we look at organizational justice, including the dimensions and dynamics of equity theory and procedural justice. CHAPTER OUTLINE 1. Needs-based theories of motivation Needs hierarchy theory ERG theory Innate human drives 13 Theory of learned needs Practical implications of needs-based motivation theories 2. Expectancy theory of motivation Expectancy theory model Expectancy theory in practice 3. Goal-setting and feedback What is goal-setting? Management-by-objectives Characteristics of effective goals Characteristics of effective feedback Applications and limitations of goal setting and feedback 4. Organizational justice Distributive justice and equity theory Elements of equity theory Equity evaluation Correcting inequity feelings Procedural justice Organizational justice in practice REVIEW QUESTIONS 1. Identify three reasons why motivating employees is becoming increasing challenging. 2. Relate the four innate fundamental human drives to Maslow’s needs hierarchy theory and Alderfer’s ERG theory. How are they similar? How are they differ? 3. Use all three components of expectance theory to explain why some employees are motivated to show up for work during a snowstorm whereas others make no effort to leave their home. 4. Explain the procedural justice and its consequences. 5. Describe equity evaluation and correcting inequity feelings in equity theory. 6. Using your knowledge of the characteristics of effective goals, establish two meaningful goals related to your performance in this class. 14 Chapter 6 Foundations of Team Dynamics LEARNING OBJECTIVES 1. 2. 3. 4. 5. 6. 7. 8. 9. Define teams Distinguish teams from informal groups Outline the model of team effectiveness Identify six organizational and team environmental elements that influence team effectiveness Explain the influence on team effectiveness of the team’s task, composition, and size. Describe the five stages of team development Identify four factors that shape team norms List six factors that influence team cohesiveness Explain how companies minimize social loafing CHAPTER OVERVIEW This chapter looks at the conditions that make teams more or less effective in organizational settings. After introducing the different types of teams in organizational settings, we present a model of team effectiveness. Most of the chapter examines each part of this model, including team and organizational environment, team design, and the team processes of development, norms, roles, and cohesiveness. CHAPTER OUTLINE 1. Types of teams and informal groups Permanent and temporary teams Informal groups Why rely on teams 2. A model of team effectiveness What is team effectiveness? Team effectiveness model 3. Organizational and team environment Reward systems Communication systems Physical space 15 Organizational environment Organizational structure Organizational leadership 4. Team design features Task characteristics Team size Team composition 5. Team processes Team development Team norms Team roles Team cohesiveness 6. The trouble with teams Social loafing How to minimize social loafing? REVIEW QUESTIONS 1. Informal groups exist in almost every form of social organization. What types of informal groups exist in your classroom? Why are students motivated to belong to these informal groups? 2. You have been asked to lead a complex software project over the next year that requires the full-time involvement of approximately 100 people with diverse skills and background. Using your knowledge of team size, how can you develop an effective team under these conditions? 3. What are the important elements in the organizational and team environment that influence team effectiveness. 4. What are the team design features and their influence on team effectiveness. 5. Describe the five stages in team development. 6. How team norms influence team members behavior? 7. Describe the important influences on team cohesiveness. 8. Describe the consequences of team cohesiveness. 9. How to minimize social loafing? 16 Chapter 7 Communication in Teams and Organizations LEARNING OBJECTIVES 1. Explain the importance of communication and diagram the communication process. 2. Describe problems with communicating through electronic mail. 3. Identify two ways in which nonverbal communication differs from verbal communication. 4. Identify two conditions requiring a channel with high media richness. 5. Identify four common communication barriers. 6. Discuss the degree to which men and women communicate differently. 7. Outline the key elements of active listening. 8. Summarize four communication strategies in organizational hierarchies. CHAPTER OVERVIEW This chapter begins by presenting a model of the communication process and discussing several communication barriers. Next, the different types of communication channels, including computer-mediated communication, are described, followed by factors to consider when choosing a communication medium. This chapter then examines cross-cultural and gender differences in communication and strategies to improve interpersonal communication. The final sections of the chapter present some options for communicating in organizational hierarchies and describe the pervasive organizational grapevine. CHAPTER OUTLINE 1. A model of communication Defining communication The communication process model 2. Communication channels Verbal communication Electronic mail Other computer-mediated communication Nonverbal communication 3. Choosing the best communication channels 17 Media richness Symbolic meaning of the medium 4. Communication barriers Perceptions Filtering Language Information overload 5. Cross-cultural and gender communication Nonverbal differences Gender differences in communication 6. Improving interpersonal communication Getting your message across Active listening 7. Communicating in organizational hierarchies Workspace design Newsletters and E-Zines Employee survey Direct communication with top management 8. Communicating through the grapevine Grapevine characteristics Grapevine benefits and limitations REVIEW QUESTIONS 1. 2. 3. 4. 5. 6. 7. Describe the communication process. What are the communication channels? How does nonverbal communication differ from verbal communication? How do we choose the best communication channels? Describe the communication barriers. Describe active listening process and strategies. Describe four communication strategies in organizational hierarchies. 18 Chapter 8 Conflict and Negotiation in the workplace LEARNING OBJECTIVES 1. 2. 3. 4. 5. 6. 7. 8. Outline the conflict process. Distinguish constructive from socio-emotional conflict. Discuss the advantages and disadvantages of conflict in organizations. Identify six sources of organizational conflict. Outline the five interpersonal styles of conflict management. Summarize six structural approaches to managing conflict. Outline four situational influences on negotiations. Compare and contrast the three types of third-party dispute resolution. CHAPTER OVERVIEW This chapter looks at the dynamics of conflict in organizational settings. We begin by describing the conflict process and discussing the consequences and sources of conflict in organizational settings. Five conflict management styles are then described, followed by a discussion of the structural approaches to conflict management. The last two sections of this chapter introduce two procedures for resolving conflict: negotiation and third-party resolution. CHAPTER OUTLINE 1. The conflict process Conflict perceptions and emotions Manifest conflict Conflict Outcomes 2. Sources of conflict in organizations Incompatible goals Differentiation Task interdependence Scarce resource Ambiguous rules Communication problems 3. Interpersonal conflict management styles Five conflict management styles 19 Choosing the best conflict management style Cultural and gender differences in conflict management styles 4. Structural approaches to conflict management Emphasizing super-ordinate goals Reducing differentiation Improving communication and understanding Reducing task interdependence Increasing resources Clarifying rules and procedures 5. Resolving conflict through negotiation Bargaining zone model of negotiations Situational influences on negotiations Negotiators behaviors 6. Third-party conflict resolution Arbitration, inquisition, and mediation Choosing the best third-party intervention strategy REVIEW QUESTIONS 1. Distinguish constructive conflict from socio-emotional conflict and explain where these two forms fit into the conflict escalation cycle. 2. Describe the sources of conflict in organizations. 3. Describe the five interpersonal styles of approaching the other party in a conflict situation. 4. How to choose the best conflict management style? 5. What are the cultural differences in conflict management styles? 6. What are the gender differences in conflict management styles? 7. Describe the structural approaches to conflict management. 8. Describe the situational influences on negotiations. 9. What are the three types of third-party intervention in conflict resolution. 20 Chapter 9 Leadership in Organizational Settings LEARNING OBJECTIVES 1. 2. 3. 4. 5. 6. 7. 8. 9. Define leadership List seven competencies of effective leaders Describe the people-oriented and task-oriented leadership styles. Outline the path-goal theory of leadership Discuss the importance of Fiedler’s contingency model leadership Contrast transactional with transformational leadership Describe the four elements of transformational leadership Explain how societal culture influences our perceptions of effective leaders Discuss similarities and differences in the leadership styles of women and men CHAPTER OVERVIEW We open this chapter by pointing out that our concept of leadership is changing, but it remains a complex issue that stirs up plenty of interest and discussion. Some scholars have studied traits or competencies of great leaders, whereas others have looked at their behaviors. More recent studies have looked at leadership from a contingency approach by considering the appropriate leader behaviors in different settings. Currently, the most popular is that leaders transform organizations through their vision, communication, and ability to build commitment. Finally, an emerging perspective suggests that leadership is mainly a perceptual bias. This chapter explores each of these five perspectives of leadership. In the final section, we also look at cross-cultural and gender issues in organizational leadership. CHAPTER OUTLINE 1. Competency (trait) perspective of leadership Seven traits or competencies Competency (trait) perspective limitations and practical implications 2. Behavioral perspective of leadership Choosing task- verse people-oriented leadership Leadership Grid 3. Contingency perspective of leadership 21 Path-goal theory of leadership Contingencies of path-goal theory Practical implications and limitations of path-goal theory Other contingency theories Situational leadership model Fiedler’s contingency model 4. Transformational perspective of leadership Transformational versus transactional leadership Transformational versus charismatic leadership Elements of transformational leadership Evaluating the transformational leadership perspective 5. Implicit leadership perspective Attributing leadership Stereotyping leadership Need for situational control 6. Cross-cultural and gender issues in leadership Cross-cultural issues in leadership Gender differences in leadership REVIEW QUESTIONS 1. Why is it important for top executives to value and support leadership demonstrated at all levels of the organization? 2. Find two newspaper ads for management or executive positions. What leadership competencies are mentioned in these ads? 3. Consider your favorite teacher. What people-oriented and task-oriented leadership behaviors did he or she use effectively? 4. In general, do you think students prefer an instructor who is more people-oriented or more task-oriented? Explain your preference. 5. Your employees are skilled and experienced customer service representatives who perform non-routine tasks, such as solving unique customer problems or special needs with the company’s equipment. Use path-goal theory to identify the most appropriate leadership style(s) you should use in this situation. Be sure to fully explain your answer and discuss why other styles are inappropriate. 6. Discuss the accuracy of the following statement: “Contingency theories don’t work because they assume leaders can adjust their style to the situation. In reality, people have a preferred leadership style that they can’t easily change.” 7. Transformational leadership is currently the most popular perspective of leadership. However, it is far from perfect. Discuss three concerns with transformational leadership. 8. Discuss the gender differences in leadership. 22 Chapter 10 Organizational Structure and Design LEARNING OBJECTIVES 1. Describe three types of coordination in organizational structures 2. Explain why firms can have flatter structures than previously believed 3. Discuss the dynamics of centralization and formalization as organizations get larger and older 4. Contrast functional structures with divisional structures 5. Explain why geographic divisional structures are becoming less common than other divisional structures 6. Outline the features and advantages of the matrix structure 7. Describe four features of team-based organizational structures 8. Discuss the advantages of the network structure 9. Summarize three contingencies of organizational design 10. Explain how organizational strategy relates to organizational structure CHAPTER OVERVIEW This chapter begins with considering the two fundamental processes in organizational structure: division of labor and coordination. This is followed by a detailed investigation of the four main elements of organizational structure: span of control, centralization, formalization, and departmentalization. The latter part of this chapter examines the contingencies of organizational design, including organizational size, technology, external environment, and strategy. CHAPTER OUTLINE 1. Division of labor and coordination Division of labor Coordinating work activities 2. Elements of organizational structure Span of control Centralization and decentralization Formalization Mechanistic versus organic structures 23 3. Forms of departmentalization Simple structure Functional structure Divisional structure Matrix structure Team-based (lateral) structure Network structures 4. Contingencies of organizational design Organizational size Technology External environment Organizational strategy REVIEW QUESTIONS 1. Why are organizations moving toward flatter structure? 2. What form of coordination is most likely to be used in a cross-functional project team? 3. Why are many organizations moving away from the geographic divisional structures? 4. From an employee perspective, what are the advantages and disadvantages of working in a matrix structure? 5. Flight Centre has a team-based structure from top to bottom. Is this typical? Could such a structure exist at IBM or Intel? 6. Some writers believe that a network structure is an effective design for global competition. Is this true, or are there situations for which this organizational structure may be inappropriate? 7. Suppose that you have been hired as a consultant to diagnose the environmental characteristics of your college or university. How would you describe the school’s external environment? Is the school’s existing structure appropriate for this environment? 24 Chapter 11 Organizational Culture LEARNING OBJECTIVES 1. 2. 3. 4. Describe the elements of organizational culture Discuss the importance of organizational subcultures Identify three functions of organizational culture Discuss the conditions under which cultural strength improves corporate performance 5. Discuss the effect of organizational culture on business ethics 6. Compare and contrast four strategies for merging organizational cultures 7. Identify five strategies to strengthen an organization’s culture CHAPTER OVERVIEW This chapter begins by examining the elements of organizational culture. This is followed by a discussion of the relationship between organizational culture and corporate performance, including the effects of cultural strength, fit, and adaptability. Then we turn to the issue of mergers and corporate culture, followed by specific strategies for maintaining a strong organizational culture. CHAPTER OUTLINE 1. Elements of organizational culture Content of organizational culture Organizational subcultures 2. Deciphering organizational culture through artifacts Organizational stories and legends Rituals and ceremonies Physical structures and symbols 3. Organizational culture and performance Organizational culture strength and fit Adaptive cultures Organizational culture and business ethics 4. Merging organizational cultures Bicultural audit Strategies to merge different organizational cultures 5. Changing and strengthening organizational culture Strategies for strengthen organizational culture 25 REVIEW QUESTIONS 1. 2. 3. 4. 5. What are elements of organizational culture? Describe organizational subcultures. How does organizational culture affect corporate performance? What is an adaptive culture? Describe strategies to merge different organizational cultures. 26