Notes + book summary: Organizational Behavior, Gemmo, Appunti di Organizzazione Aziendale

Scarica Notes + book summary: Organizational Behavior, Gemmo e più Appunti in PDF di Organizzazione Aziendale solo su Docsity! Organizational behavior 8/02 Organizational behavior: definition and relevance inside organizations Definition of organizational behavior —> is the study of individuals and groups in organizations, the study of how individuals behave in the organization, the study of how people and members of groups behave in the organization. Exercise: 1. Do you belong to one (or more) organization(s)? Name it (or them) —> university, my group member, sport teams 2. Why is it an organization? Organization is made of people —> is a social entity. • The organizations are driven by objectives, aims to be reached = and it’s better if there are common purposes. Organizations have purposes and aims and the challenge is to match the organizational aims with the personal ones (individual purposes of each employee). • The organization is designed as a structured and coordinated system = not just a group of people that are there with some common purposes, they are not designed and structured and coordinated systems. Cause in the organization each one has something to do, to perform in a structure and all together can reach the common purpose and so all the job are correlated. Organization exists —> organizations are mechanisms through which many people combine their efforts and work together to accomplish more than any one person could alone. • There is a common purpose and also personal purposes. It’s important for the company to define some aims that match also the personal purposes. • The organization interacts with the external environment = that could be the market, the stakeholders. All aspects of the external environment could affect the organizational behavior of the company. Exercise: 1. Think at organizations you belong to: do you behave differently in different organizations? Do you behave differently at different times in the same organization? Why? What is Organizational Behaviour? Managers will be able to know what to look for in work situations, to understand what they find and to take the required actions. Effective managers need to understand the people they rely on for the performance of their unit. The role of organizational behavior is to understand / forecast and control human behavior in the workplace. The role is to understand how people behave and how they will behave in the future. Organizational behavior models can help managers both to deal with and learn from their workplace experiences in order to improve their effectiveness and their job performance. OB is not one academic subject → It is multi-disciplinary including both psychological and sociological perspectives . We are going to consider the managerial perspective. Job performance can be seen as an equation where there are 3 variables: - Individuals attributes = capacity to perform → these are my skills, background, values, personality, aims, knowledge. All these attributes represent my capacity to perform. - Work efforts = willingness to perform → it’s true that each one has a capacity to perform that depends on our skills and abilities, but besides this there is our willingness to performance and the role of motivation here is fundamental. Here there is the engagement / the empowerment of people in order to help people to work better. These two variables are co-dependent. 1 - Organizational support = opportunity to perform → organizations could guarantee to the people an opportunity to perform. This opportunity is represented by the organizational structure, the role of people of employees (the chart of the company), the reward system of the company (is part of the organizational support), the organizational culture (another important point of the organizational support). Sometimes a company could be a great place to work when they are good at delivering a good opportunity to perform. The arrows link all the components of the performance job together. Each manager should be capable of understanding how these three factors, acting alone or in combination, affect performance . This performance equation used to analyze: ● the job performance of individuals / single person ● the job performance of groups ● the job performance of the organization. The performance equation raises the question of whether performance is predictable. It is suggested that cognitive ability (or intelligence) is a reasonable predictor of job performance. Over the past two decades, the concept of emotional intelligence (EI or EQ) has surfaced and now is viewed as a key aspect of managing people effectively. Emotional Intelligence is a form of social intelligence that allows us to monitor and shape our emotions and those of others. Emotional competence is a learned capability based on emotional intelligence which is associated with outstanding work performance. In these domains EI is considered a competency for performance (ex people with high levels of EI can recognize weaknesses and strengths). ______________ BOOK (chapter 1) ______________ Organizations exist because individuals are limited in their physical abilities and mental capabilities. Organizations are mechanisms through which many people combine their efforts and work together to accomplish more than any one person could alone. The emergence of large organizations has been associated with the industrialization of societies. In the early 21th century there was a trend for organizations to minimize their core activities and to outsource work or otherwise enter inter-organizational networking arrangements. Outsourcing involves organizations obtaining aspects of their work, for example, production systems, from external suppliers for reasons of cost and/or equality rather than carrying out the work themselves. Interorganizational networking encompasses cooperative ventures including sharing of the resources with a view to maintaining independence, while collaboration involves sharing of aspects of organizations’ competence, including intellectual property. Division of Labour and Synergy 2 People can be affected by the environment, so managers need to be careful about it. Challenges affect organizations and people behaviors. 2. Globalization = is the process of becoming more international in scope, influence or application, a process which brings a greater sense of interconnectedness between people from different cultures. In business context, globalization is characterized by networks that bind countries, institutions and people in an interdependent global economy. In terms of OB, one specific aspect of globalization that stands out is the need to recognize cultural differences and to manage people from diverse groups to maximize synergy. ex. Increased labour mobility ex. Corporations moving work to cheaper locations ex. Flexible and virtual organizations Global management skills and competencies include: ● Understanding different social-political systems ● Being culturally sensitive and adaptable ● Communicating well with people from other cultures and motivating them People are coming from different countries, with different cultures, expectations, and personalities. Managers need to find some model for inclusive management. 3. Changing nature of the workforce →It is about making the working place comfortable for everyone. The diversity of the workforce is increasing ● More diverse in terms of age, gender, ethnicity, educational and cultural background ● It is unlikely that one set of values will characterize all employees. People coming from different countries with different expectations and cultural backgrounds working for the same organization. The workforce is more diverse in terms of age, gender, ethnicity, educational, cultural background. It is unlikely that one set of values will characterize all employees. From diversity management towards inclusion → leveraging differences and variety for competition ● Communicate, coach and develop employees from a variety of backgrounds ● Create a work environment that makes it comfortable for employees of all backgrounds to be creative and innovative. Some issues ● Glass ceiling: Artificial impediments and invisible barriers that militate against women’s access to top decision-making and managerial positions in an organization, whether public or private and in whatever domain (Tsoka, 2001) ● Gender inequalities ● Gender discrimination ● Gender pay gap 4. Technology Technology has reshaped the way we play, plan our lives and where we work: ● Digital transformation in industries ● Industry 4.0 ● Smart working & covid-19 pandemic Technology → has become a dominant force in our lives. It has reshaped the way we play, plan our lives and where to work (digital transformation in industries, industry 4.0, smart working- Covid-19 pandemic). High technology allows machines to do many routine chores more cheaply and accurately than people can, it makes available more information for planning and control at all levels of organizational responsibility and it is driving change in organizational structures and ways of working (ex. use of emails revolutionized communication). 5 Knowledge management → is another major driver of organizational change, it is the growth of the knowledge-based economy in which prosperity is built on “intellectual capital”, the use of information in people’s mind, rather than on physical resources. KM focuses on processes designed to improve an organization’s ability to capture, share and diffuse knowledge in a manner that will improve business performance 5. Business ethics and the sustainability challenge ● Ethical behavior ● Sustainability refers to the ability of a company to survive and succeed in a dynamic competitive environment (that is a company’s ability to make a profit) without sacrificing the resources of its employees, the community or the environment. As we said, among the biggest challenges that managers must deal with are globalization, the changing nature of work, the changing nature of the workforce and the changing nature of the relationships between employers and employees. To face these challenges one approach is business process re-engineering defined as “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and spread. The result can involve a substantial shift in values. 15/02 Organizational culture, behavior and competitive advantage in complex organizations Organizational culture is something that is extremely difficult to define, but it is extremely important for companies and also important for gaining a competitive advantage, it’s important for the culture and for our possible future work. Job performance equation → we have 3 main variables that can affect the job performance: ● Individual attributes ● Work effort ● Organizational support For each variable we have different topics, one of those is the organizational culture. What is organizational culture? ● «Set of values, guiding beliefs, principles and assumptions that is shared by the members of an organization and is taught to new members». ● It guides the behavior of the members of the organization. ● It is largely «unwritten» and «implicit»: people do not speak about it, they «act» it. There are a lot of definitions. Actually the culture is something that is difficult to describe. One of the definition is → «Set of values, guiding beliefs, principles and assumptions that is shared by the members of an organization and is taught to new members» = so it is made up of the values of the common values, of believes, guiding/inspiring believes that should be shared by employees within an organization. An organizational culture is something that has to be thought to people that are hired by the company. The company needs to share the values, the principle and the inspiring assumptions of the company. Values, missions, goals should be shared within the company. But, sometimes there is a different what they say and how they act. What they say is actually how they act during their working? These believes, principles should be there as inspiring guides for the employees. Some people are applying in some specific companies also for the beliefs and principles that they say. 6 In companies it is difficult to listen to speech about organizational culture, cause it is something that is implicit and you have to perceive it from how people behave. It is something that you understand while you are working there, or while you see how they react to a crisis, which are the rules that they are respecting. So you see the culture from how the employees behave and act. Organizational culture is extremely important also because it affects employees and future employees. Organizational culture ● “Culture is the tacit social order of an organization: It shapes attitudes and behaviors in wide-ranging and durable ways. Cultural norms define what is encouraged, discouraged, accepted, or rejected within a group. ● Culture is an elusive lever, because much of it is anchored in unspoken behaviors, mindsets, and social pattern. ● When properly aligned with personal values, drives, and needs, culture can unleash tremendous amounts of energy toward a shared purpose and foster an organization’s capacity to thrive. We can say that organizational culture is → a tacit social order of an organization. The formal order of an organization is given by → the organizational chart (managers, chairs, top manager, business level, ecc…) The social order of an organization → how people behave and how people communicate among them and also by considering the formal order of the organization. The tacit social order of an organization → shape attitudes and behavior within the company and define and encourage what is accepted and rejected within the company. Sometimes there are behaviors that are more or less accepted by the coworker. The organizational culture make the difference when it is aligned with the personal values of its employees = so the big challenge for the company is to hire people that will be able to accept and share the company’s values and in this case there will be an alignment between the values and the culture of the organization with the values and the culture of people. If we consider the context in which we work, there are people all over the world, with different values, different cultures so the alignment between the company’s values and the people's values is getting more difficult to reach. So we need to find a balance to get everyone in the right way. Organizational culture could be defined as the system of shared values and beliefs develops within an organization and guides the behavior of its members. Organizational culture is an important topic within OB. It is concerned with the ways in which its members interpret the everyday realities of organizational life. Such interpretations can be an important influence upon behavior. Some theorists and managers believe that a strong organizational culture can contribute to high performance and success. The study of organizational culture is key to an understanding of how organizations operate in the real world. ___________________________ BOOK (chapter 7)_____________________________ Charles handy’s classification of types of organizational culture (1989) distinguish between the following models of role, power, person and task culture ● In role culture set rules, procedures and job descriptions dominate. People’s power in such a setting is embedded in the roles they occupy. In particular, your position within a hierarchy is most likely to underline your influence. The organization’s culture is essentially a depersonalized one, machine-like style. ● Power culture is a type of organizational culture in which a central figure exercises power on a personal basis, there being relatively few formal rules in place. This kind of culture can be found in small organizations that bear the mark of their founder or owner. 7 ● that may enhance collective and individual commitment = a strong organizational culture is important cause affects the job performance, meaning that when you are involved and share the values there is a strong commitment and so the productivity / your performance is higher. ● by providing a stable social system = few conflicts, solved with easy solutions. ● that can reduce the need for formal and bureaucratic controls = if there is a strong organizational culture people know what is accepted and not accepted, and if you behave in this way you will be easily accepted. ● thus potentially increasing performance and cutting costs. Strategy and culture ● “Strategy and culture are among the primary levers at top leaders' disposal in their never-ending quest to maintain organizational viability and effectiveness. – Strategy → offers a formal logic for the company’s goals and orients people around them. – Culture → expresses goals through values and beliefs and guides activity through shared assumptions and group norms.” 22/02 Case study of Southwest Airlines SWA: What makes the difference? Stable sources of competitive advantage: resources that are difficult to imitate… What is “difficult to imitate” in SWA? • Strategy? Competitors know SWA strategy….. • The CEO? If this was the case, it would be a serious problem ... • Tangible assets (aircrafts, information systems…)? They are available on the market… • HRM systems and practices? HRM best practices are not a secret, they are well known by HR specialists and can be imitated … Human Resource Management Policy is known by competitors (its is not a secret) and leadership Style as well. If you consider these elements alone you cannot find the solution, the answer is in the alignment of all these elements (strategy +HR system + org. culture). These elements are the 3 parts we analyzed so far in the Southwest case study. The managerial behavior is defined by these elements, the consistency can be seeable in this way. In this alignment you can find the consistency between the Behavior (employers + employees) and the Context in which they are working. They take care of details, ceremonies, something that represents in a visible way. They work hard on these aspects every day. The essence of Strategic HRM THE ALIGNMENT BETWEEN VALUES, MANAGERIAL BEHAVIORS and HRM practices ALLOWS THE COMPANY TO PURSUE SUCCESSFULLY ITS STRATEGY, (WHATEVER IT IS) How to obtain this alignment? ● HRM specialists must communicate the company strategy and values effectively to employees and support values by influencing employees’ behavior through HRM policies & practices design ● Top and middle MANAGERS behave consistently with values and enforce HRM practices. The reason of SWA success are a mix of cost structure, productivity, high quality service and customer relationship. SOUTHWEST example The reasons for Southwest 's success are a mix of cost structure, productivity, high quality service and customer relationship. 10 How to achieve such competitive advantage? ● Through vertical FIT → alignment of strategy, company culture, leadership style & managerial behaviors, HRM systems. There is a sort of vertical fit → alignment between the competitive strategy, the organizational culture and the HRM policies. Vertical systems cause they are not on the same level. The strategy is defined by top managers, CEO. Then we find the middle managers and then the HRM people that define policies and processes. ● Through Horizontal FIT → consistency among all HRM policies, processes, practices Also an horizontal fit → this consistency among all these HRM policies and processes is extremely important. In the horizontal fit, the HR department manages all these different types of processes. This consistency among these Hr policies and practices is extremely important. Competitive advantage through culture and HRM is difficult to imitate Why? = Because the process of value creation through human resources is complex : ● Path dependence: human resource competences, attitudes, mindset evolve in a specific organizational context & history during time, through experience and learning. ● Causal ambiguity: many factors contribute to value creation, the ingredients of the “recipe” are connected to each other and it is difficult for competitors to identify clear relationships between causes and effects. This competitive advantage is not so easily imitated. For 2 reasons = ● Path dependence → human behavior and attitude change over time and evolve in specific organizational context. This alignment is strongly connected with the history of the company. It is something that evolves during time through failure, victory. It evolves during the daily life of the company. It is something that you must learn to deal with. ● Causal ambiguity → all these components represent a sort of recipe where you can find different elements that define the recipe. You have to mix them and not consider just a few of them. You have to find the right way to fit them. It is difficult to define for other competitors which are the component that causes some behavior and which are the consequences of other behaviors. The causes and effects of some behavior are difficult to define. Creating a strong alignment is not easy. This depends on 2 aspects. On the one hand we have to consider that people’s behavior, mindsets, attitudes change all over time and evolve in specific organizational contexts. This alignment is strongly interconnected with the company’s history, you must consider the origins and it is something that steadily evolves through experience and failures. That's why it ‘s something that you must learn to deal with. And it is called path dependence. This is linked to the context. On the other hand, you must consider that all these factors contribute to value creation. The relation between causes and effects is difficult to define. Causal ambiguity: Southwest airlines competitive advantage is due to its components (strategy, org. culture, HR system), in definition of the causes and effects. 11 Individual attributes: perception, personality, values and attitudes Job performance equation affected by 3 elements: ● Work effort ● Organizational support ● Individual attributes = the capacity to perform → four elements define our individual attributes: -- perception -- personality -- values -- attitudes Perception Perception is the process through which people receive, organize and interpret information from their environment. We perceive the world in different ways. When you enter a room, when you meet someone, when you talk to someone you perceive something and this perception characterizes an individual. “Perception is the root of all organizational behavior, any situation can be analyzed in terms of its perceptual connotation”. People’s perception of reality provides the fuel which drives their attitude formation and possibly their actual behavior. Comprehend the perceptual process and its importance in determining workplace attitudes and behavior. Perception → is the cognitive process that enables us to interpret and understand our surroundings. Perception allows us to give meaning to the context in which we live/work. Perception is how we select, organize, interpret and retrieve information from the environment. ● Perception is how we select information → sometimes the selection of info is unconscious. This process allows us to focus on something and not something else. ● Perception is how we organize information → when you organize the information that you have selected ● Perception is how we interpret information → you give a meaning of what you see or perceive ● Perception is how we retrieve information → at the end you retrieve the information. Perception is how we select information from the environment. The perception allows us to focus on something rather than something else. You give a meaning to what you perceive and you retrieve this information. This is extremely important for evaluating behavior of people within the company. The perception of each member has an impact on his behavior. The perception process must be considered if you wanna manage the behavior of a company. The cultural background is crucial. Diversity & Inclusion Management, organizations are more focused in the first one. More and more we have to consider that we are working in dynamic contexts made of different components changing every time. The importance of cultural background is based on how people all over the world perceive the world. How employees perceive the context in which they work. The perception of employees on the behavior of employees. The perceptual process must be considered if we want to manage people properly → this importance is clear since the context in which we are living is more and more different from different perspectives. Like people coming from different countries with different backgrounds and cultures = inclusion management. Companies are focused nowadays on inclusion management and not diversity management. More and more we have to consider that we are working in a 12 It’s people's perception of reality that provides the fuel which drives their attitude formation and possibly their actual behavior. > Comprehend the perceptual process and its importance in determining workplace attitudes and behavior. ___________________________ BOOK (chapter 2 )_____________________________ STAGES OF THE PERCEPTUAL PROCESS Attention & Selection → Our senses are constantly bombarded with so much information, selective screening lets in only a tiny proportion of all information available. Some of the selectivity comes from controlled processing which refers to conscious decisions made to pay attention to certain stimuli while ignoring others. In this case, the perceivers are aware that they are processing information. In contrast to controlled processing, screening can also take place without the perceiver’s conscious awareness. screening is the umbrella term for the ways we selectively perceive objects and people. Organization → Even though selective screening takes place in the attention stage, it is necessary to find ways to organize information efficiently. Schemas are helpful in this sense, they are cognitive frameworks that represent organized knowledge about a given concept or stimulus developed through experience. A self schema contains information about a person’s own appearance, behavior, personality. ‘Person schemas’ refer to the way individuals sort others into categories such as types or groups in terms of similar perceived features. A prototype is a perception of a person based on group characteristics from which the individual person may diverge. Once the prototype is formed, it is stored in the long-term memory and is retrieved when it is needed for a comparison of how well a person matches the prototype’s features. Stereotypes may be regarded as prototypes based on such demographic characteristics, gender,nationality or ethnic origin. Stereotyping describes the process by which we attribute characteristics to an individual based on our understanding of wider groups. A ‘script schema’ is defined as a knowledge framework that describes the appropriate sequence (ex. steps to follow in a meeting). Interpretation → Once your attention has been drawn to certain stimuli and you have grouped/organized this information, the next step is to uncover the reasons behind the actions. Retrieval: The stages of the perceptual process occurred at the same time. Each of the previous stages forms part of the memory and contributes to the stimuli or information stored there. The information stored in our memory must be retrieved if it is to be used. ______________ fine libro______________ Values The values have a strategic role. Values → are beliefs that guide actions and judgements across a variety of situations. They reflect a person’s sense of right and wrong = people’s values develop as a product of the learning and experiences they encounter in the cultural setting in which they live. Many have their roots in early childhood and the way in which a person was raised. Values in the workplace → ● Achievement → getting things done and working hard to accomplish difficult things in life ● Helping and concern for others → being concerned with other people and helping others ● Honesty → telling the truth, being trustworthy and sincere, not cheating, straightforwardness of conduct ● Fairness → being impartial and doing what is fair for all concerned The key point is not what they state but if the employees stick with these values, if they respect it. We rank values in order of importance, rank values according to personal criteria.. 15 Value congruence = involves the amount of value agreement between employee and employer. Values are strongly linked with motivation = thanks to the strong connection with personal values and collective values they are able to motivate. Values change as the world is changing. 01/03 Personality Personality differences among individuals → Personality = is the overall profile or combination of traits that characterize the unique nature of a person. Nature or nurture? Is personality determined by heredity or one’s environment? = personality can be affected by some elements that are defined by heredity and also it can be affected by the environment (social factors, cultural factors and situational factors), also the personality can be affected by the family values, the friends values. All these aspects affect personality. Personality can be important also in org. context. in order to understand how people behave within an organization. When you create a team, you must consider not only the hard skills but also the soft ones. It’s important to me to be cooperative with the other members of the team. Personality determinants → The environment defined by a different perspective means that you have to face different personal challenges and live in different contexts that affect personality. Five key dimensions of personality → used also to select people and also used to understand which job profile you better. The big five personality dimensions (Allport, Odbert) → 1. Extraversion / introversion = The degree to which individuals are oriented to the social world of people, relationships and events as opposed to the inner world (respectively). ■ Extroverts: tend to be outgoing, talkative and sociable ■ Introverts: are generally quieter and happier spending time alone or with a few close friends 2. Conscientiousness = The extent to which individuals are organized, dependable and focused on detail, rather than disorganized, less reliable and lacking in perseverance 3. Agreeableness = The extent to which individuals are compliant, friendly, reliable and helpful, versus disagreeable, argumentative and uncooperative 4. Emotional stability (neuroticism) = The degree to which individuals are secure, resilient and calm, versus anxious, reactive and subject to mood swings 5. Openness to experiences = The extent to which individuals are curious, open, adaptable and interested in a wide range of things, versus resistant to change and new experiences, less open to new ideas and preferring routine Five key dimensions of personality 16 Organizational behavior 8/02 Organizational behavior: definition and relevance inside organizations Definition of organizational behavior —> is the study of individuals and groups in organizations, the study of how individuals behave in the organization, the study of how people and members of groups behave in the organization. Exercise: 1. Do you belong to one (or more) organization(s)? Name it (or them) —> university, my group member, sport teams 2. Why is it an organization? Organization is made of people —> is a social entity. • The organizations are driven by objectives, aims to be reached = and it’s better if there are common purposes. Organizations have purposes and aims and the challenge is to match the organizational aims with the personal ones (individual purposes of each employee). • The organization is designed as a structured and coordinated system = not just a group of people that are there with some common purposes, they are not designed and structured and coordinated systems. Cause in the organization each one has something to do, to perform in a structure and all together can reach the common purpose and so all the job are correlated. Organization exists —> organizations are mechanisms through which many people combine their efforts and work together to accomplish more than any one person could alone. • There is a common purpose and also personal purposes. It’s important for the company to define some aims that match also the personal purposes. • The organization interacts with the external environment = that could be the market, the stakeholders. All aspects of the external environment could affect the organizational behavior of the company. Exercise: 1. Think at organizations you belong to: do you behave differently in different organizations? Do you behave differently at different times in the same organization? Why? What is Organizational Behaviour? Managers will be able to know what to look for in work situations, to understand what they find and to take the required actions. Effective managers need to understand the people they rely on for the performance of their unit. The role of organizational behavior is to understand / forecast and control human behavior in the workplace. The role is to understand how people behave and how they will behave in the future. Organizational behavior models can help managers both to deal with and learn from their workplace experiences in order to improve their effectiveness and their job performance. OB is not one academic subject → It is multi-disciplinary including both psychological and sociological perspectives . We are going to consider the managerial perspective. Job performance can be seen as an equation where there are 3 variables: - Individuals attributes = capacity to perform → these are my skills, background, values, personality, aims, knowledge. All these attributes represent my capacity to perform. - Work efforts = willingness to perform → it’s true that each one has a capacity to perform that depends on our skills and abilities, but besides this there is our willingness to performance and the role of motivation here is fundamental. Here there is the engagement / the empowerment of people in order to help people to work better. These two variables are co-dependent. 1 - Organizational support = opportunity to perform → organizations could guarantee to the people an opportunity to perform. This opportunity is represented by the organizational structure, the role of people of employees (the chart of the company), the reward system of the company (is part of the organizational support), the organizational culture (another important point of the organizational support). Sometimes a company could be a great place to work when they are good at delivering a good opportunity to perform. The arrows link all the components of the performance job together. Each manager should be capable of understanding how these three factors, acting alone or in combination, affect performance . This performance equation used to analyze: ● the job performance of individuals / single person ● the job performance of groups ● the job performance of the organization. The performance equation raises the question of whether performance is predictable. It is suggested that cognitive ability (or intelligence) is a reasonable predictor of job performance. Over the past two decades, the concept of emotional intelligence (EI or EQ) has surfaced and now is viewed as a key aspect of managing people effectively. Emotional Intelligence is a form of social intelligence that allows us to monitor and shape our emotions and those of others. Emotional competence is a learned capability based on emotional intelligence which is associated with outstanding work performance. In these domains EI is considered a competency for performance (ex people with high levels of EI can recognize weaknesses and strengths). ______________ BOOK (chapter 1) ______________ Organizations exist because individuals are limited in their physical abilities and mental capabilities. Organizations are mechanisms through which many people combine their efforts and work together to accomplish more than any one person could alone. The emergence of large organizations has been associated with the industrialization of societies. In the early 21th century there was a trend for organizations to minimize their core activities and to outsource work or otherwise enter inter-organizational networking arrangements. Outsourcing involves organizations obtaining aspects of their work, for example, production systems, from external suppliers for reasons of cost and/or equality rather than carrying out the work themselves. Interorganizational networking encompasses cooperative ventures including sharing of the resources with a view to maintaining independence, while collaboration involves sharing of aspects of organizations’ competence, including intellectual property. Division of Labour and Synergy 2 People can be affected by the environment, so managers need to be careful about it. Challenges affect organizations and people behaviors. 2. Globalization = is the process of becoming more international in scope, influence or application, a process which brings a greater sense of interconnectedness between people from different cultures. In business context, globalization is characterized by networks that bind countries, institutions and people in an interdependent global economy. In terms of OB, one specific aspect of globalization that stands out is the need to recognize cultural differences and to manage people from diverse groups to maximize synergy. ex. Increased labour mobility ex. Corporations moving work to cheaper locations ex. Flexible and virtual organizations Global management skills and competencies include: ● Understanding different social-political systems ● Being culturally sensitive and adaptable ● Communicating well with people from other cultures and motivating them People are coming from different countries, with different cultures, expectations, and personalities. Managers need to find some model for inclusive management. 3. Changing nature of the workforce →It is about making the working place comfortable for everyone. The diversity of the workforce is increasing ● More diverse in terms of age, gender, ethnicity, educational and cultural background ● It is unlikely that one set of values will characterize all employees. People coming from different countries with different expectations and cultural backgrounds working for the same organization. The workforce is more diverse in terms of age, gender, ethnicity, educational, cultural background. It is unlikely that one set of values will characterize all employees. From diversity management towards inclusion → leveraging differences and variety for competition ● Communicate, coach and develop employees from a variety of backgrounds ● Create a work environment that makes it comfortable for employees of all backgrounds to be creative and innovative. Some issues ● Glass ceiling: Artificial impediments and invisible barriers that militate against women’s access to top decision-making and managerial positions in an organization, whether public or private and in whatever domain (Tsoka, 2001) ● Gender inequalities ● Gender discrimination ● Gender pay gap 4. Technology Technology has reshaped the way we play, plan our lives and where we work: ● Digital transformation in industries ● Industry 4.0 ● Smart working & covid-19 pandemic Technology → has become a dominant force in our lives. It has reshaped the way we play, plan our lives and where to work (digital transformation in industries, industry 4.0, smart working- Covid-19 pandemic). High technology allows machines to do many routine chores more cheaply and accurately than people can, it makes available more information for planning and control at all levels of organizational responsibility and it is driving change in organizational structures and ways of working (ex. use of emails revolutionized communication). 5 Knowledge management → is another major driver of organizational change, it is the growth of the knowledge-based economy in which prosperity is built on “intellectual capital”, the use of information in people’s mind, rather than on physical resources. KM focuses on processes designed to improve an organization’s ability to capture, share and diffuse knowledge in a manner that will improve business performance 5. Business ethics and the sustainability challenge ● Ethical behavior ● Sustainability refers to the ability of a company to survive and succeed in a dynamic competitive environment (that is a company’s ability to make a profit) without sacrificing the resources of its employees, the community or the environment. As we said, among the biggest challenges that managers must deal with are globalization, the changing nature of work, the changing nature of the workforce and the changing nature of the relationships between employers and employees. To face these challenges one approach is business process re-engineering defined as “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and spread. The result can involve a substantial shift in values. 15/02 Organizational culture, behavior and competitive advantage in complex organizations Organizational culture is something that is extremely difficult to define, but it is extremely important for companies and also important for gaining a competitive advantage, it’s important for the culture and for our possible future work. Job performance equation → we have 3 main variables that can affect the job performance: ● Individual attributes ● Work effort ● Organizational support For each variable we have different topics, one of those is the organizational culture. What is organizational culture? ● «Set of values, guiding beliefs, principles and assumptions that is shared by the members of an organization and is taught to new members». ● It guides the behavior of the members of the organization. ● It is largely «unwritten» and «implicit»: people do not speak about it, they «act» it. There are a lot of definitions. Actually the culture is something that is difficult to describe. One of the definition is → «Set of values, guiding beliefs, principles and assumptions that is shared by the members of an organization and is taught to new members» = so it is made up of the values of the common values, of believes, guiding/inspiring believes that should be shared by employees within an organization. An organizational culture is something that has to be thought to people that are hired by the company. The company needs to share the values, the principle and the inspiring assumptions of the company. Values, missions, goals should be shared within the company. But, sometimes there is a different what they say and how they act. What they say is actually how they act during their working? These believes, principles should be there as inspiring guides for the employees. Some people are applying in some specific companies also for the beliefs and principles that they say. 6 In companies it is difficult to listen to speech about organizational culture, cause it is something that is implicit and you have to perceive it from how people behave. It is something that you understand while you are working there, or while you see how they react to a crisis, which are the rules that they are respecting. So you see the culture from how the employees behave and act. Organizational culture is extremely important also because it affects employees and future employees. Organizational culture ● “Culture is the tacit social order of an organization: It shapes attitudes and behaviors in wide-ranging and durable ways. Cultural norms define what is encouraged, discouraged, accepted, or rejected within a group. ● Culture is an elusive lever, because much of it is anchored in unspoken behaviors, mindsets, and social pattern. ● When properly aligned with personal values, drives, and needs, culture can unleash tremendous amounts of energy toward a shared purpose and foster an organization’s capacity to thrive. We can say that organizational culture is → a tacit social order of an organization. The formal order of an organization is given by → the organizational chart (managers, chairs, top manager, business level, ecc…) The social order of an organization → how people behave and how people communicate among them and also by considering the formal order of the organization. The tacit social order of an organization → shape attitudes and behavior within the company and define and encourage what is accepted and rejected within the company. Sometimes there are behaviors that are more or less accepted by the coworker. The organizational culture make the difference when it is aligned with the personal values of its employees = so the big challenge for the company is to hire people that will be able to accept and share the company’s values and in this case there will be an alignment between the values and the culture of the organization with the values and the culture of people. If we consider the context in which we work, there are people all over the world, with different values, different cultures so the alignment between the company’s values and the people's values is getting more difficult to reach. So we need to find a balance to get everyone in the right way. Organizational culture could be defined as the system of shared values and beliefs develops within an organization and guides the behavior of its members. Organizational culture is an important topic within OB. It is concerned with the ways in which its members interpret the everyday realities of organizational life. Such interpretations can be an important influence upon behavior. Some theorists and managers believe that a strong organizational culture can contribute to high performance and success. The study of organizational culture is key to an understanding of how organizations operate in the real world. ___________________________ BOOK (chapter 7)_____________________________ Charles handy’s classification of types of organizational culture (1989) distinguish between the following models of role, power, person and task culture ● In role culture set rules, procedures and job descriptions dominate. People’s power in such a setting is embedded in the roles they occupy. In particular, your position within a hierarchy is most likely to underline your influence. The organization’s culture is essentially a depersonalized one, machine-like style. ● Power culture is a type of organizational culture in which a central figure exercises power on a personal basis, there being relatively few formal rules in place. This kind of culture can be found in small organizations that bear the mark of their founder or owner. 7 ● that may enhance collective and individual commitment = a strong organizational culture is important cause affects the job performance, meaning that when you are involved and share the values there is a strong commitment and so the productivity / your performance is higher. ● by providing a stable social system = few conflicts, solved with easy solutions. ● that can reduce the need for formal and bureaucratic controls = if there is a strong organizational culture people know what is accepted and not accepted, and if you behave in this way you will be easily accepted. ● thus potentially increasing performance and cutting costs. Strategy and culture ● “Strategy and culture are among the primary levers at top leaders' disposal in their never-ending quest to maintain organizational viability and effectiveness. – Strategy → offers a formal logic for the company’s goals and orients people around them. – Culture → expresses goals through values and beliefs and guides activity through shared assumptions and group norms.” 22/02 Case study of Southwest Airlines SWA: What makes the difference? Stable sources of competitive advantage: resources that are difficult to imitate… What is “difficult to imitate” in SWA? • Strategy? Competitors know SWA strategy….. • The CEO? If this was the case, it would be a serious problem ... • Tangible assets (aircrafts, information systems…)? They are available on the market… • HRM systems and practices? HRM best practices are not a secret, they are well known by HR specialists and can be imitated … Human Resource Management Policy is known by competitors (its is not a secret) and leadership Style as well. If you consider these elements alone you cannot find the solution, the answer is in the alignment of all these elements (strategy +HR system + org. culture). These elements are the 3 parts we analyzed so far in the Southwest case study. The managerial behavior is defined by these elements, the consistency can be seeable in this way. In this alignment you can find the consistency between the Behavior (employers + employees) and the Context in which they are working. They take care of details, ceremonies, something that represents in a visible way. They work hard on these aspects every day. The essence of Strategic HRM THE ALIGNMENT BETWEEN VALUES, MANAGERIAL BEHAVIORS and HRM practices ALLOWS THE COMPANY TO PURSUE SUCCESSFULLY ITS STRATEGY, (WHATEVER IT IS) How to obtain this alignment? ● HRM specialists must communicate the company strategy and values effectively to employees and support values by influencing employees’ behavior through HRM policies & practices design ● Top and middle MANAGERS behave consistently with values and enforce HRM practices. The reason of SWA success are a mix of cost structure, productivity, high quality service and customer relationship. SOUTHWEST example The reasons for Southwest 's success are a mix of cost structure, productivity, high quality service and customer relationship. 10 How to achieve such competitive advantage? ● Through vertical FIT → alignment of strategy, company culture, leadership style & managerial behaviors, HRM systems. There is a sort of vertical fit → alignment between the competitive strategy, the organizational culture and the HRM policies. Vertical systems cause they are not on the same level. The strategy is defined by top managers, CEO. Then we find the middle managers and then the HRM people that define policies and processes. ● Through Horizontal FIT → consistency among all HRM policies, processes, practices Also an horizontal fit → this consistency among all these HRM policies and processes is extremely important. In the horizontal fit, the HR department manages all these different types of processes. This consistency among these Hr policies and practices is extremely important. Competitive advantage through culture and HRM is difficult to imitate Why? = Because the process of value creation through human resources is complex : ● Path dependence: human resource competences, attitudes, mindset evolve in a specific organizational context & history during time, through experience and learning. ● Causal ambiguity: many factors contribute to value creation, the ingredients of the “recipe” are connected to each other and it is difficult for competitors to identify clear relationships between causes and effects. This competitive advantage is not so easily imitated. For 2 reasons = ● Path dependence → human behavior and attitude change over time and evolve in specific organizational context. This alignment is strongly connected with the history of the company. It is something that evolves during time through failure, victory. It evolves during the daily life of the company. It is something that you must learn to deal with. ● Causal ambiguity → all these components represent a sort of recipe where you can find different elements that define the recipe. You have to mix them and not consider just a few of them. You have to find the right way to fit them. It is difficult to define for other competitors which are the component that causes some behavior and which are the consequences of other behaviors. The causes and effects of some behavior are difficult to define. Creating a strong alignment is not easy. This depends on 2 aspects. On the one hand we have to consider that people’s behavior, mindsets, attitudes change all over time and evolve in specific organizational contexts. This alignment is strongly interconnected with the company’s history, you must consider the origins and it is something that steadily evolves through experience and failures. That's why it ‘s something that you must learn to deal with. And it is called path dependence. This is linked to the context. On the other hand, you must consider that all these factors contribute to value creation. The relation between causes and effects is difficult to define. Causal ambiguity: Southwest airlines competitive advantage is due to its components (strategy, org. culture, HR system), in definition of the causes and effects. 11 Individual attributes: perception, personality, values and attitudes Job performance equation affected by 3 elements: ● Work effort ● Organizational support ● Individual attributes = the capacity to perform → four elements define our individual attributes: -- perception -- personality -- values -- attitudes Perception Perception is the process through which people receive, organize and interpret information from their environment. We perceive the world in different ways. When you enter a room, when you meet someone, when you talk to someone you perceive something and this perception characterizes an individual. “Perception is the root of all organizational behavior, any situation can be analyzed in terms of its perceptual connotation”. People’s perception of reality provides the fuel which drives their attitude formation and possibly their actual behavior. Comprehend the perceptual process and its importance in determining workplace attitudes and behavior. Perception → is the cognitive process that enables us to interpret and understand our surroundings. Perception allows us to give meaning to the context in which we live/work. Perception is how we select, organize, interpret and retrieve information from the environment. ● Perception is how we select information → sometimes the selection of info is unconscious. This process allows us to focus on something and not something else. ● Perception is how we organize information → when you organize the information that you have selected ● Perception is how we interpret information → you give a meaning of what you see or perceive ● Perception is how we retrieve information → at the end you retrieve the information. Perception is how we select information from the environment. The perception allows us to focus on something rather than something else. You give a meaning to what you perceive and you retrieve this information. This is extremely important for evaluating behavior of people within the company. The perception of each member has an impact on his behavior. The perception process must be considered if you wanna manage the behavior of a company. The cultural background is crucial. Diversity & Inclusion Management, organizations are more focused in the first one. More and more we have to consider that we are working in dynamic contexts made of different components changing every time. The importance of cultural background is based on how people all over the world perceive the world. How employees perceive the context in which they work. The perception of employees on the behavior of employees. The perceptual process must be considered if we want to manage people properly → this importance is clear since the context in which we are living is more and more different from different perspectives. Like people coming from different countries with different backgrounds and cultures = inclusion management. Companies are focused nowadays on inclusion management and not diversity management. More and more we have to consider that we are working in a 12 It’s people's perception of reality that provides the fuel which drives their attitude formation and possibly their actual behavior. > Comprehend the perceptual process and its importance in determining workplace attitudes and behavior. ___________________________ BOOK (chapter 2 )_____________________________ STAGES OF THE PERCEPTUAL PROCESS Attention & Selection → Our senses are constantly bombarded with so much information, selective screening lets in only a tiny proportion of all information available. Some of the selectivity comes from controlled processing which refers to conscious decisions made to pay attention to certain stimuli while ignoring others. In this case, the perceivers are aware that they are processing information. In contrast to controlled processing, screening can also take place without the perceiver’s conscious awareness. screening is the umbrella term for the ways we selectively perceive objects and people. Organization → Even though selective screening takes place in the attention stage, it is necessary to find ways to organize information efficiently. Schemas are helpful in this sense, they are cognitive frameworks that represent organized knowledge about a given concept or stimulus developed through experience. A self schema contains information about a person’s own appearance, behavior, personality. ‘Person schemas’ refer to the way individuals sort others into categories such as types or groups in terms of similar perceived features. A prototype is a perception of a person based on group characteristics from which the individual person may diverge. Once the prototype is formed, it is stored in the long-term memory and is retrieved when it is needed for a comparison of how well a person matches the prototype’s features. Stereotypes may be regarded as prototypes based on such demographic characteristics, gender,nationality or ethnic origin. Stereotyping describes the process by which we attribute characteristics to an individual based on our understanding of wider groups. A ‘script schema’ is defined as a knowledge framework that describes the appropriate sequence (ex. steps to follow in a meeting). Interpretation → Once your attention has been drawn to certain stimuli and you have grouped/organized this information, the next step is to uncover the reasons behind the actions. Retrieval: The stages of the perceptual process occurred at the same time. Each of the previous stages forms part of the memory and contributes to the stimuli or information stored there. The information stored in our memory must be retrieved if it is to be used. ______________ fine libro______________ Values The values have a strategic role. Values → are beliefs that guide actions and judgements across a variety of situations. They reflect a person’s sense of right and wrong = people’s values develop as a product of the learning and experiences they encounter in the cultural setting in which they live. Many have their roots in early childhood and the way in which a person was raised. Values in the workplace → ● Achievement → getting things done and working hard to accomplish difficult things in life ● Helping and concern for others → being concerned with other people and helping others ● Honesty → telling the truth, being trustworthy and sincere, not cheating, straightforwardness of conduct ● Fairness → being impartial and doing what is fair for all concerned The key point is not what they state but if the employees stick with these values, if they respect it. We rank values in order of importance, rank values according to personal criteria.. 15 Value congruence = involves the amount of value agreement between employee and employer. Values are strongly linked with motivation = thanks to the strong connection with personal values and collective values they are able to motivate. Values change as the world is changing. 01/03 Personality Personality differences among individuals → Personality = is the overall profile or combination of traits that characterize the unique nature of a person. Nature or nurture? Is personality determined by heredity or one’s environment? = personality can be affected by some elements that are defined by heredity and also it can be affected by the environment (social factors, cultural factors and situational factors), also the personality can be affected by the family values, the friends values. All these aspects affect personality. Personality can be important also in org. context. in order to understand how people behave within an organization. When you create a team, you must consider not only the hard skills but also the soft ones. It’s important to me to be cooperative with the other members of the team. Personality determinants → The environment defined by a different perspective means that you have to face different personal challenges and live in different contexts that affect personality. Five key dimensions of personality → used also to select people and also used to understand which job profile you better. The big five personality dimensions (Allport, Odbert) → 1. Extraversion / introversion = The degree to which individuals are oriented to the social world of people, relationships and events as opposed to the inner world (respectively). ■ Extroverts: tend to be outgoing, talkative and sociable ■ Introverts: are generally quieter and happier spending time alone or with a few close friends 2. Conscientiousness = The extent to which individuals are organized, dependable and focused on detail, rather than disorganized, less reliable and lacking in perseverance 3. Agreeableness = The extent to which individuals are compliant, friendly, reliable and helpful, versus disagreeable, argumentative and uncooperative 4. Emotional stability (neuroticism) = The degree to which individuals are secure, resilient and calm, versus anxious, reactive and subject to mood swings 5. Openness to experiences = The extent to which individuals are curious, open, adaptable and interested in a wide range of things, versus resistant to change and new experiences, less open to new ideas and preferring routine Five key dimensions of personality 16 Other facets of personality: locus of control One influential facet of personality is found in Rotter’s concept of locus of control which measures the internal-external orientation of a person, that is the extent to which a person feels able to affect his/her life. Locus of control refers to general conceptions people have about whether events are controlled by themselves primarily (which indicates an internal orientation), or by outside forces or their social and physical environment. ● Internal locus of control = People who believe they control the events and consequences that affect their lives. You are focused on yourself and so you make things happen. These kind of people are very focused on themselves. ● External locus of control = People who believe their performance is the product of circumstances beyond their immediate control. People who tend to attribute key outcomes in their lives to environmental causes, such as luck or fate. In this perspective things happen to you, there is nothing you can do to change your future. Attitudes Attitude → - is a predisposition to respond in a positive or negative way to someone or something in your environment - express a person’s positive or negative feelings / mental state about various aspects of jobs and/or work environment - are influenced by values. Incongruence → ● Values congruence or incongruence ● Attitudes and consistent or inconsistent behavior Values can be influential through Value Congruence which occurs when individuals express positive feelings on encountering other who exhibit values similar to their own. When values differ (or are incongruent) conflicts may result over such things as goals and the means to achieve them. If attitudes are not aligned with the organizational values is a problem (you cannot work there even if you are very good at your job), they must be coherent with the company’s values. The behavior is affected by attitudes. The beliefs and values antecedents in the figure form the cognitive component of an attitude. Beliefs represent ideas about someone or something and the conclusions people draw about them. The affective component of an attitude is a specific feeling regarding the personal impact of the antecedents. The behavioral component is an intention to behave in a certain way based on specific feelings or attitudes. This intended behavior is a predisposition to act in a specific way. The components of attitudes relate to one another as follows: Beliefs & values → attitudes→ behavior. Cognitive dissonance: state of inconsistency between an individual’s attitudes and his behavior. 17 Maslow’s Need Hierarchy Theory Maslow’s “hierarchy of needs” theory identifies 5 levels of individual needs from self-actualization and esteem at the top (higher.order needs) to social, safety and physiological requirements at the bottom (lower-order needs). Maslow assumes that some needs are more important (potent) than others and must be satisfied before other needs can serve as motivators. (ex physiological needs must be satisfied before the safety needs are activated, the safety needs must be satisfied before the social ones and so on). Some studies suggest that individuals still place the greatest emphasis on lower-order needs (ex. money), even though they are fully achieving higher-order needs. Other studies report that needs vary according to a person’s career stage, the size of the organization and even geographic location. It represents a satisfaction progression process: individuals progress up a needs hierarchy as a result of the satisfaction of lower-order needs. Individuals try to satisfy the needs at the lower level before turning to needs at the upper level: When needs at one level are active, people will look at the following level of needs. At the bottom there are the lower-order-needs = ● Physiological needs ● Safety needs ● Social needs Going on there are the higher-order-needs = ● Esteem needs ● Self-actualization needs (at the top the highest level). This is a satisfaction progression process because you need to fulfill the needs at the bottom before going to the top needs. Alderfer’s ERG Theory It’s also based on needs but is more flexible than Maslow’s theory in 3 basic respects. First, the theory collapses maslow’s 5 needs and it classifies needs in 3 categories = • Existence needs (E) → related to the desire for physiological and materialistic wellbeing; • Relatedness needs (R) → represent the desire to have meaningful relationships with significant others; • Growth needs (G) → the desire to grow as a human being and to use one’s abilities to their fullest potential. ERG theory = contends that more than one need may be activated at the same time; on the contrary, according to Maslow, a person focuses on one need at a time. According to this theory employees could focus on more needs at the same time on the contrary in the one of Maslow was not possible. Second, where Maslow’s theory argues that individuals progress up a needs hierarchy as a result of the satisfaction of lower-order needs (a satisfaction-progression process), ERG theory includes a ‘frustration-regression’ principle, whereby an already satisfied lower-level need can become activated when a Higher-level need cannot be satisfied. If a person is continually frustrated in the attempts to satisfy growth needs, relatedness needs will again surface as key motivators. Third, according to Maslow, a person focuses on one need at a time. In contrast, ERG theory contends that more than one need may be activated at the same time. McClelland’s Need Theory It identifies 3 themes which each correspond to an underlying need that he believes is important for understanding individual behavior. These needs are: 20 • Need for affiliation → Spend more time maintaining social relationships, joining groups, and wanting to be loved. Desire to establish and maintain social warm relationships. • Need for power → Desire to influence, coach, teach, or encourage others to achieve. The desire to control others, to influence their behavior or to be responsible for others. • Need for achievement → Desire to accomplish something difficult. To do something better or more efficiently, to solve problems. According to McClelland’s basic theory, these 3 needs are acquired over time as a result of life experiences. Individuals are motivated by these needs, which can be associated with different roles and preferences. The theory encourages managers to learn how to identify the presence of need for achievement, need for affiliation and need for power in themselves and in others and to create work environments that are responsive to the respective need profiles of different employees. Work preferences of persons high in need for achievement, affiliation and power = - High need for affiliation → interpersonal relationships, opportunities to communicate - High need for power → influence over other persons, attention, recognition - High need for achievement → individual responsibility, challenging but achievable goals, feedback on performance So, we have different theories that classify needs. How is it possible for a company to use this theory? = the manager needs to use these theories to manage people. If you are applying for a company such as Southwest Airline, affiliation is an important value since it is like you are part of a bigger family. Managerial implications = Which are the managerial implications of these theories? • On the process of motivation • On the way of working /it is possible to define work preferences • In the process of communication → can connect the problem on one side to the other side. Once you have defined the needs, we need to work on how to use them. Process theories of motivation There are different process theories of motivation. These theories focus on explaining the process by which factors and cognitions influence employee motivation. Adams’s Equity Theory of Motivation A model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships. It focuses on a model that expresses how people strive for fairness and justice in social exchanges. Here the role of communication is fundamental. Equity theory → is based on social comparison and posits, because people measure and judge the fairness of their work outcomes compared with others, that feels inequity is a motivating state of mind. According to this theory we have to consider that people measure and judge the fairness of their work outcomes compared with others. There is social comparison of your own outcomes with ones of the others. So this model is based on the social comparison of your own outcomes with others outcomes. When we produce something we always compare the rewards or the punishment obtained by the outcomes compared to others. This perception is a motivating state of mind. If I perceive that my outcomes were not judged with the same criteria of judgment of the work of my 21 colleague can state my perception of mind. This equity or inequity is felt and perceived by people = the problem here is that Adam focuses on equity or inequity that is perceived or felt by people. Adams argues that when people gauge the fairness of their work outcomes compared with those of others felt inequity is a motivating state of mind. When people perceive inequity in their work, they experience a state of cognitive dissonance and they will be aroused to remove discomfort and to restore a sense of felt equity to the situation. When we produce something we always compare the connected rewards/punishments to the ones gained by the others. The perception of this equity or inequity is a motivating state of mind. If I perceive that my outcome was judged in a different way compared to the one of my colleague, this could affect my motivation. This equity/unquity is felt by people. Inequities exist whenever people feel that the rewards or inducements they receive for their work inputs or contributions are unequal to the rewards other people appear to have received for their inputs. individual rewards/inputs ← comparison → others’ rewards/inputs Even if the criteria used to judge are the same, if there is this perception of inequity, the motivation could be strongly influenced. This could be a problem of communication of the criteria. Negative and Positive Inequity Resolving felt inequities = • felt negative inequity • felt positive inequity ● Negative inequity → Comparison in which another person receives greater outcomes for similar inputs. Exists when individuals feel that they have received relatively less than others have in proportion to work inputs. ● Positive inequity → Comparison in which another person receives lesser outcomes for similar inputs. Exists when individuals feel that they have received relatively more than others have. Both felt negative and felt positive inequity are motivating states. When either exists, the individual will likely engage in one or more of the following behaviors to restore a sense of equity. ● change work inputs (ex. reducing performance efforts) ● change the outcomes (rewards) received (ex. an increase in salary) ● change the comparison points compare self with different co-worker) ● psychological distort the comparisons (ex. rationalizing that the inequity is only temporary and will be solved) ● leave situation ( change department or quit) We could have positive or negative inequity. But the problem here is that this inequity is perceived and felt, so it’s important to have the right communication in order not to have this perception of inequity. This social comparison between our outcomes and other outcomes is something that characterizes our life and our personal life. It’s so important to consider this theory. Sometimes the problem can be solved with a good or right activity of communication that supports the criteria that are defined to the allocation of rewards. Managing the equity dynamic 1. The equity comparison intervenes between a manager’s allocation of rewards and their impact on the work behaviour of staff 2. Feelings of inequity are determined solely by the individual’s interpretation of the situation 3. No matter how fair management thinks the organization’s policies, procedures, and reward system are, each employee’s perception of the equity of those factors is what counts. 22 The “Dark Side” of engaging employees: over-engagement and burnout Burnout: “a state of physical, emotional and mental exhaustion caused by long-term involvement in situations that are emotionally demanding”. Burnout can be found in all industry sectors and across a range of jobs. Employee well-being provides a framework by which both. Summary = Balancing up the needs of the individual (employee) and the needs of the organization by constantly reviewing the drives and motives that lead to engagement behaviors. The expectation is that engaged behaviors will lead to positive organizational outcomes reflected in increased performance measures. In tandem with this, the avoidance of burnout is paramount too. Merit pay → is a compensation system that bases an individual’s salary or wage increase on a measure of the person’s performance accomplishments during a specific time period. It is an attempt to make pay contingent on performance. Creative pay practices → - Skill-based pay = a pay system that rewards people for acquiring and developing job-relevant skills that relate to organizational needs - Gain-sharing plans = a pay system that links pay and performance by giving workers the opportunity to share in productivity gains through increased earnings - Lump-sum pay increases = a pay system in which people elect to receive their annual wage or salary increase in one or more lump-sum payments - Bonus share schemes → a share plan to reward high-performance executives - Flexible benefit plans → pay systems that allow workers to select benefits according to their individual needs. 08/03 Leadership, employee engagement and empowerment EX-Candy (Candace) Lightner, founder of Mothers Against Drunk Driving (MADD), is she a leader? -Yes, in my opinion she can be considered a leader because she organized a group of people/ created an association under a common and shared purpose. She inspired people and obtained results. What makes people think that someone is a leader? ● Getting results!! ● A goal / vision that is greater than the self = having a goal that is bigger than someone self ● Help from others to achieve the goal / vision = a leader achieves its goals from others ● You have to bring people with you and inspire people to follow you As a vision / an idea / a goal that is bigger than the self, but it need the helps from people in order to get it. A leader has a goal/vision that is greater than the self, he gets help from others to achieve the goal/vision. A leader achieves results through others. There is no algorithm to be a leader. Being a leader is about making other people powerful and this leads to engagement. Difference between leadership and management ● Managers → just manage people’s competencies ● Leaders → manage people’s potential A leader needs to be empowered and engaged from people. Employee engagement = employee engagement is the extent to which employees feel passionate about their jobs, are committed to the organization, and put discretionary effort into their work. When a person is engaged, everything they do is infused with purpose, energy and enthusiasm. 25 Employee engagement – WHY? ● Improves productivity and efficiency ● Reduces staff turnover ● Improves customer satisfaction and retention ● Delivers higher profits ● Retains talent ● Allows managers to delegate with confidence Employee engagement – HOW? ● Inspire them with you vision – company or personal ● Walk your talk – live the values you declare to value ● Build relationships based on trust with the people you interact with ● Find out what motivates them = she / he have to treat everybody as individuals, everyone is different so everyone has to be treat in a different way ● Expect commitment Employee engagement – MEASUREMENT Many companies have developed surveys to measure employee engagement, and follow with suggestions on how to improve it. How can you ensure that people that work with you are engage? Using a mountain climbing analogy, we’ll establish a series of camps to get to the summit: employee engagement (from “First, break all the rules” By Marcus Buckingham and Curt) There are 12 questions to answer = ● The first group of questions (base camp) is → What do I get? • Do I know what is expected of me at work? • Do I have the material and equipment I need to do my work right? ● The second group of questions (camp 1) is → What do I give? • At work, do I have the opportunity to do what I do best every day? • In the last 7 days, have I received recognition or praise for doing good work? • Does my superior, or someone at work, seem to care about me as a person? • Is there someone at work who encourages my development? ● The third group of questions (camp 2) is → Do I belong here? • At work, do my opinions seem to count? • Does the mission / purpose of my company make me feel my job is important? • Are my co-workers committed to doing quality work? • Do I have a best friend at work? Step by step = if your expectations are met, if you have confidence in your own expertise and if you are aware of how your new ideas will be rejected or accepted by people around you, then you can start to learn in a productive way. ● The fourth group of questions (camp 3) is → How can we all grow? • In the last six months, has someone at work talked to me about my progress? • This last year, have I had the opportunities at work to learn and grow? The summit If you have positive answers to the 12 questions, you might have reached the summit! ● Your focus is clear ● You fell a recurring sense of achievement 26 ● Others around you are thrilled by the challenges ● You have a mutual understanding and shared purpose ● You have a direction for your development and training. YOU MUST CHOOSE YOUR PURPOSE / CONTRIBUTION / VOICE _____________________________ BOOK (chapter 9)_______________________________ LEADERSHIP Management → is more concerned with promoting stability and enabling the organization to run smoothly, while the role of leadership is to inspire, promote and oversee initiatives to do with long-term change. The management process involves planning, organizing, leading and controlling the use of organizational resources. Leadership → is a special case of interpersonal influence that gets an individual/ group to do what the leader wants done. The role of the leader is distinguishable from that of manager in that managers are concerned with problem solving and making things happen within a stable context. They keep work on schedule and have routine interactions to fulfill planned actions. Whereas leaders provide inspiration, create opportunities and coach and motivate people to gain (and then use) their support on fundamental long-term choices. Leadership includes using appropriate interpersonal styles and methods in guiding individuals and groups towards task accomplishment. Leadership and management differ in that management is designed to promote stability or to make the organization run smoothly, while the role of leadership is to promote adaptive change. Leadership can take 2 forms: 1. Formal Leadership → is the process of exercising influence from a position of formal authority in an organization. Those using formal leadership are in positions in the hierarchy where they have a legitimate form of power and are able to exert this influence. 2. Informal Leadership → is the process of exercising influence through special skills or resources that meet the needs of other people. 1. Leadership Theories based on Trait and Leader Characteristics → Trait and characteristic leadership approaches center on the qualities that are held by the leader. early studies failed to locate straightforward traits held by the great leaders. Subsequent work, operating at a more sophisticated level, argues that leader traits and characteristics should be taken more seriously. Traits and aspects of personality are more innate and harder to change than behaviors which we associate with leader characteristics such as charisma, authenticity, ethical leadership. many organizations invest time and money in training managers to enhance their capability in leadership characteristics. Trait Theory → it is the earliest approach used to study leadership and dates back to the turn of the 20th century. researchers have identified individual characteristics which are important for leaders and managers. Good energy levels and a tolerance of stress enable sustained working in our modern pressured environment. Self-confidence or “self-efficacy” is necessary for the leader to initiate their influence attempts and is therefore necessary for them to do their job and be sustained by those attempts. Motivation also has a role to play in the characteristics of effective leaders. Those who have reasonable needs for power and achievement are often effective. What is more logical is that those who have a high need for affiliation (being liked by others) are less likely to be effective leaders as their desire to maintain relationships overrides difficult decisions where they may need to give negative messages to colleagues and subordinates, thus affecting how they are liked. There is no magic formula for leader effectiveness in aspects relating to traits or personality and attitudes. The few areas where positive association has been found with leader effectiveness (internal locus of control and self-confidence for example) can be developed but even though effective leadership is a complex thing. 2. Leadership Theories of Attribution → attributes can include not only what someone does but also how they do it, also included in these modern ideas is the interaction between manager and their followers. 27