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> ### 001 - Course Introduction
> Class Notes - August 21, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
- **Organizational Behavior:**
- The study of organizations as collections of people.
- Work together.
- Coordinate their actions.
- Examine how people think, feel, and what they do at three levels:
- Individual Level
- Group/Team Level
- Organization Level
- Contingency / Probabilistic Perspective
- How understanding people at these levels contributes to organizational effectiveness:
- We can get a competitive advantage.
- Improve individual and group performance.
- Reduce dysfunctional behaviors.
- **Topics:**
- Personality
- Motivation
- Decision Making
- Power Politics
- Conflict Handling and Negotiation
- Perception
- Communication
- Leadership
- Cultural Values
- Organizational Change
- Organizational Behavior improves performance and satisfaction.

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> ### 002 - Introduction to the Field of Organizational Behavior
> Class Notes - August 21, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**2.1 - What is Organizational Behavior**
- **Organizational Behavior (OB):**
> The study of what people think, feel, and do in and around **organizations**.
- Looks at employee behaviors, decisions, perceptions, and emotional responses.
- Examines how individuals and teams in organizations relate to one another.
- Studies how organizations interact with their external environments.
- **Levels of Analysis in OB:**
- Individual Level
- Team Level
- Organization Level
- **Organizations:**
> Groups of people who work interdependently toward some purpose.
- <u>There are many organizations that exist without a physical space or government documentation</u>.
- Organizations are collective entities.
- Individuals that interact in an organized way.
- Members of organizations have a collective sense of purpose.
***
**2.2 - Why Organizational Behavior is Important**
- **Most Important Skills for New Hires:**
- Problem Solving
- Analytical Thinking
- Strategic Thinking
- Ability to Work Effectively in Teams
- Collaboration
- Interpersonal Skills
- People Management
- Communication
- Leadership
- <u>Organizational behavior theories have the objective of making organizations more effective</u>.
- **Organizational Effectiveness:**
> Ideal state of an organization when it:
> - Has a good fit with its **external environment**.
> - Effectively **transforms inputs to outputs** through human capital.
> - **Satisfies the needs of stakeholders**.
- **Organizations are Open Systems:**
- An organization <u>depends on the external environment</u> for resources.
- The environment will also have laws, norms, and expectations which place demands on the organization.
![[A001 - Organizations as Open Systems.png | 600]]
- Organizations have numerous **subsystems** that <u>transform incoming resources into outputs</u>.
- These outputs can be desirable (products and services), or undesirable (pollution) to the external environment.
- Organizations will receive feedback for this process.
- Organizations are most effective when they maintain a *good fit* with their environment.
- This means that the <u>inputs, processes, and outputs are aligned with the available resources, needs, and expectations of the environment</u>.
- Organizational Behavior identifies characteristics that *fit* some environments.
- **Human Capital:**
> Knowledge, skills, abilities, creativity, and other resources that **employees bring to the organization**.
- Provides a competitive advantage.
- Employee talents are difficult to find, copy, or replace with technology.
- <u>Effective organizations enhance human capital</u>.
- Organizational Behavior identifies ways to strengthen employee motivation.
- **Boosting Organizational Effectiveness Through Human Capital:**
1. Improve employee skills and knowledge.
- *Improving ability improves performance*.
2. Superior human capital means better adaptability at changing environments.
3. Developing human capital means the company invests and rewards its workforce.
- **Stakeholders:**
> Individuals, groups, and entities that affect or are affected by an organization's objectives and actions.
- Effective organizations understand, manage, and satisfy stakeholder needs and expectations.
- **Values:**
> Stable, evaluative beliefs that guide our preferences for outcomes or actions.
- Values motivate our decisions and behavior.
- <u>Stakeholders rely on their personal values</u> to decide how a company should prioritize its investments and distribute its earnings.
- <u>Individual inputs and processes influence individual outcomes</u>.
- These will have a direct effect on the effectiveness of an organization.
- *The effectiveness of an organization depends on how well employees perform their jobs*.
***
**2.3 - Anchors of Organizational Behavior Knowledge**
- Organizational Behavior makes it easier to understand, predict, and influence organizational events.
- **Anchors of Organizational Behavior:**
- **Systematic Research Anchor:**
- <u>Organizational Behavior knowledge should be based on systematic research</u>.
- This involves creating research questions, collecting data, and testing hypotheses.
- **Practical Orientation Anchor:**
- <u>Organizational Behavior theories need to be useful in practice</u>.
- An OB theory needs to be practical to use in organizations.
- **Multidisciplinary Anchor:**
- <u>The Organizational Behavior field should welcome theories and knowledge from other disciplines</u>.
- Psychology aids in understanding individual behavior.
- Sociology contributes to the knowledge of team dynamics and social system aspects.
- **Contingency Anchor:**
- <u>The effectiveness of an action may depend on the situation</u>.
- The same solution will rarely apply in every circumstance.
- *A particular action may have different consequences under different conditions*.
- **Multiple Levels of Analysis Anchor:**
- <u>Events can be understood from three levels of analysis: individual, team, and organization</u>.
- Research carefully identifies the appropriate level of analysis for each variable in a study.
- <u>Most variables are better understood by considering all three levels of analysis</u>, like communication.
***
**2.4 - The Emerging Workplace Landscape**
- Organizations experience unprecedented change.
- Global competition and rapid technological change alter business strategies and workplace activities.
- Organizational Behavior guides organizations through this turbulence.
- **Diversity and the Inclusive Workplace:**
- **Inclusive Workplace:** A workplace that values people of all identities and allows them to be fully themselves.
- **Surface-Level Diversity:** Observable demographic or physiological differences in people.
- Includes race, ethnicity, gender, age, and disabilities.
- **Deep-Level Diversity:** Differences in the psychological characteristics of employees.
- Includes personalities, beliefs, values, and attitudes.
- Some deep-level diversity can be associated with surface-level diversity.
- Inclusive workplaces produce favorable outcomes for employees and organizations.
- **Work-Life Integration:**
> Degree that people are effectively engaged in various work and non-work roles, and have a low degree of conflict across them.
- This has replaced *work-life balance*, which implies (incorrectly) that work and non-work roles are completely separate.
- <u>A person's work and non-work roles are integrated because the resources produced or consumed by one role enrich or undermine the success of the other</u>.
- **Remote Work:**
> Occurs when employees work from home or other non-work site.
- It can also occur when employees are temporarily assigned to a client's workspace.
- It is becoming increasingly common because employees can easily connect through information technology.
- **Benefits:**
- Better work-life integration.
- Attractive benefit for applicants.
- Low employee turnover.
- Higher productivity.
- Reduced greenhouse gas emissions.
- Lowe real estate costs.
- **Risks:**
- Social isolation.
- Lower team cohesion.
- High stress due to home or family responsibilities.
- **Employment Relationships:**
- **Direct Employment:**
> Workers in full-time, permanent jobs.
- Usually assumes continues (lifetime) employment.
- Organizations invest in the employee's skills.
- Expectations of career advancement.
- Other (more fragile) forms include part-time, on-call, casual, and seasonal employment.
- **Indirect Employment:**
> Occurs when people are temporarily assigned or *indefinitely leased* to client firms.
- Fastest growing work relationship.
- Occurs as a result of outsource non-core work activities to specialized firms.
- **Self-Employed Contract Work:**
> Independent organization that provides services to a client organization.
- Platform-based workers can be included, but they are more likely to be *on-call employees* as they depend on the platform.
- Direct employment relationships tend to produce higher work quality.
***
**2.5 - MARS Model of Individual Behavior and Performance**
- **MARS Model:**
> Model that represents the four variables that directly influence an individual's behavior and performance.
>
> These variables are:
> - **M**otivation
> - **A**bility
> - **R**ole Perceptions
> - **S**ituational Factors
- All four factors are essential influences on an individual.
- If any of them is low in a given situation, the employee will perform poorly.
- **Motivation:**
> Forces within a person that affect his or her direction, intensity, and persistence of effort for behavior.
- **Direction ->** The path along which people steer their effort.
- **Intensity ->** Amount of effort allocated to the goal.
- **Persistence ->** Length of time that an individual continues to exert effort toward an objective.
- **Ability:**
> The learned capabilities and natural aptitudes required to complete a task.
- **Learned Capabilities ->** Skills and knowledge acquired through practice or training.
- **Aptitudes ->** Natural talents that help people learn tasks more quickly or perform them better.
- **Role Perceptions:**
> The degree to which a person understands the job duties assigned to or expected of him or her.
- These perceptions range from *role clarity* to *role ambiguity*.
- **Role Clarity:** When the individual:
1. Understands the specific duties or consequences for which the employee is accountable.
2. Understands the priority of assigned tasks and performance expectations (for instance, if *quality is preferred over quantity*).
3. Understands the preferred behaviors or procedures for accomplishing tasks.
- <u>People are more confident when they know what is expected of them</u>.
- **Situational Factors:**
- <u>Individual behavior and performance depends on the situation, which is beyond the employee's immediate control</u>.
- **Situational Influences:**
1. Work context constrains or facilitates behavior and performance.
- For example, lack of resources results in poor performance, even with motivated and skilled employees.
2. Work environment provides cues to guide and motivate people.
- For example, warning signs cue employees to avoid hazards.
***
**2.6 - Types of Individual Behavior**
- **Task Performance:**
> An individual's voluntary goal-directed behaviors that contribute to organizational objectives.
- Most jobs require individuals to complete several tasks.
- **Types of Task Performance:**
- Proficient (Work efficiently and accurately)
- Adaptive (Modify thoughts to align new or changing processes)
- Proactive (Anticipate and introduce new work patterns)
- **Organizational Citizenship Behaviors (OCBs):**
> Forms of cooperation to others that support an organization's social and psychological context.
- Some OCBs are directed towards individuals, like assisting coworkers, showing courtesy and sharing work resources.
- Other OCBs represent helpfulness towards the organization, like supporting a company's public image.
- **Counterproductive Work Behaviors (CWBs):**
> Voluntary behaviors that can directly or indirectly harm the organization.
- Includes harassing coworkers, creating unnecessary conflict, deviating from preferred work methods, among others.
- **Joining and Staying with the Organization:**
- <u>Human capital is an organization's main source of competitive advantage</u>.
- This importance is apparent when employees quit, as they remove valuable knowledge, skills, and relationships, which take time for new staff to acquire.
- Employee turnover has adverse effects on customer service, team development, and corporate culture strength.
- **Maintaining Work Attendance:**
- Organizations need employees to show up for work at scheduled times.
- Unscheduled absenteeism leads to increased workloads, lower performance, poorer coordination, poorer customer service, and potential accidents.
- <u>Most absenteeism is the result of situational factors, like personal illness, family demands and bad weather</u>.

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> ### 003 - Individual Differences: Personality and Values
> Class Notes - August 28, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**3.0 - Video Lecture Notes**
- **MARS Model:**
- Individual characteristics influence an individual's Motivation, Ability, and Role Perception.
- Situational Factors
- They all influence behavior and results.
- Performance is a function of ability, motivation, and opportunity.
- **Important Behaviors:**
- **Job/Task Performance:**
- *How good are you at your job?*
- Individual performance will aggregate towards group performance.
- **Organizational Citizenship Behaviors:**
- Discretionary behaviors that cause the organization to run better.
- Not actually part of the job description.
- Higher levels in an organization causes it to perform better.
- **Counterproductive Work Behaviors:**
- Also called *Job Withdrawal Behaviors*.
- Decrease performance.
- Hurt organizational performance.
- Unmotivated employees engage in them.
- **Personality:** The relatively enduring pattern of thoughts, emotions, and behaviors that characterize a person, along with the psychological processes behind those characteristics.
- They are enduring and pretty stable.
- Some have strong heritability and others are more socially influenced.
- At around 20, personality tends to set.
- **Main Models of Personality:**
- **Myers-Briggs Type Indicator (MBTI)**
- Gives a 4 letter designation depending on the following scale:
- Extraversion-Introversion
- Sensing-Intuitive
- Thinking-Feeling
- Judging-Perceiving
- When *in the middle* of any of these categories, it is possible to *hop* between categories depending on your mood.
- Can be frustrating.
- Not commonly used in research due to the low stability.
- Can be hard to figure what the labels mean.
- **Five Factor Model (*Big Five*)**
- High, moderate, or low in the following five scalesL
- **Extraversion**
- Introverted or extroverted.
- If in the middle, we call it an *ambivert*.
- **Agreeableness**
- Importance that people surrounding you get along.
- Dislike of conflict. Can lead to being a *people pleaser*.
- **Conscientiousness**
- How detail oriented are you?
- Highly related to work performance.
- **Openness to Experience**
- The extent to which you like new things and different experiences.
- *Enjoying stuff just because its new*.
- Low openness means you like routines a lot and do not like stepping out of your conscious zone.
- **Neuroticism**
- Called the *need for stability*.
- The inverse is called *emotional stability*.
- High neuroticism do not deal well with stress.
- There can be multiple sub-scales that add nuance.
- **Acronyms:** OCEAN or CANOE
- This model was done using a cluster analysis.
- Very stable interpretation of personality because it was done across cultures.
- The four MBTI scales can be completely represented with the *Big Five*, if we go to sub-scale level.
- Some believe the MBTI encourages division due to categorization.
- Others believe it is easier to offer a *rule of thumb* for a category that a *Big Five*.
- **Values:** Stable, evaluative beliefs that guide our preferences and behaviors.
- Things that we think are *good or bad*.
- **Schwartz's Value Circumplex:**
- Composed of 10 values which primarily lie along two continuums:
- Self-Transcendence
- Concerned about helping other people.
- High universalism and benevolence.
- Self-Enhancement
- Focused on helping yourself.
- Interested in your own achievement and power.
- Hedonism -> Extent to which you enjoy yourself.
- Openness to Change
- Interest in trying new things.
- Desire to be in charge of our own.
- High autonomy and empowerment.
- Stimulation -> Novel and interesting things.
- Conservation
- High security and safety.
- Valuing of tradition.
- *Continue to do what has been done*.
- Conformity -> Rules and norms are there for a reason.
- There is a lot of variety in personalities and values.
- There is no correct personality test.
- There is not a perfect personality or set of values for group success.
- Similar personalities will have lots of agreement and high cohesion, but it causes groupthink (no one questions, all agree).
- Different personalities can cause conflict, but with effective communication we have better ideas and solutions.
- It is important to understand our own personality traits:
- Tells us how we react in different situations.
- Know how we interact with others.
- What to change for the better.
- Know what is important to find a job that fits you best.
***
**3.1 - Personality and the Five-Factor Model in Organizations**
- **Personality:**
> The enduring pattern of thoughts, emotions, and behaviors that characterize a person.
- *What makes us similar to or different from other people*.
- **Personality Traits:** Discernible patterns in an individual's behavior.
- Each trait implies that there is something in an individual that predicts behavioral tendency.
- Although people have behavioral tendencies, they do not at the same way in all situations.
- *People vary their behavior to suit the situation*.
- <u>Personality is shaped by both nature and nurture</u>.
- *Nature* -> Refers to genetic or hereditary origins.
- Our genetic code affects our attitudes, decisions, and behaviors.
- *Nurture* -> Socialization, experiences, and interaction with the environment.
- Personality develops and changes from childhood to adulthood.
- Some traits increase and some decline.
- Personality becomes more stable during adulthood, as we form a clearer and rigid self-concept (*who we are*).
- **Executive Function:** Part of the brain that regulates goal-directed behavior so that it is consistent with our self-concept.
- **Five-Factor Model (FFM) of Personality:**
> The five broad dimensions representing most personality traits. These include (*CANOE*):
> - Conscientiousness
> - Agreeableness
> - Neuroticism (Emotional Stability)
> - Openness to Experience
> - Extraversion
- Also called the *Big Five*.
- Results indicate that it is robust across cultures.
- **Conscientiousness:**
> People who are organized, dependable, goal-focused, thorough, disciplined, methodical, and industrious.
- Low conscientiousness people tend to be careless, disorganized, and less thorough.
- **Agreeableness:**
> People who are trusting, helpful, good-natured, considerate, tolerant, selfless, generous, and flexible.
- Low agreeableness people tend to be uncooperative, intolerant, more suspicious, and self-focused.
- **Neuroticism:**
> People who tend to be anxious, insecure, self-conscious, depressed, and temperamental.
- Low neuroticism people are poised, secure, and calm.
- **Openness to Experience:**
> People who are imaginative, creative, unconventional, curious, nonconforming, autonomous, and aesthetically perceptive.
- People with low openness are more resistant to change, less open to new ideas, and more conventional and fixed.
- **Extraversion:**
> People who are outgoing, talkative, energetic, sociable, and assertive.
- People with *introversion* are quiet, cautious, and less interactive.
- Personality affects behavior through motivation.
- It influences an individual's choice of goals, intensity, and persistence.
- <u>Conscientiousness is the best overall personality predictor of proficient task performance</u>.
- Conscientious employees have higher personal goals and are more persistent.
- They are more organized and engage in less counterproductive behaviors.
- Extraversion is the second best overall predictor for proficient task performance.
- Associated with influencing others and being comfortable in social settings.
- Effective leaders are somewhat more extraverted.
- Assertiveness is a string predictor of adaptive and proactive performance.
- Assertive employees *take charge* when approaching situations.
- Agreeableness is associated with organizational citizenship.
- Openness to experience is a weak predictor of task performance, but one of the best predictors of adaptive and proactive performance.
- Employees with high openness have more curiosity, imagination, and tolerance of change.
- Emotional stability is one of the best predictors of adaptive performance.
- ***Big Five* Factors and Work Performance:**
![[A002 - Personality and Work Performance.png | 600]]
- <u>The *perfect employee* is not the individual with the highest scores on all Big Five personality factors</u>.
- The relationship between some factors and performance is nonlinear.
- Some behaviors are predicted better by a specific trait than by the overall Big Five factor for that trait.
- Personality is not completely static, some factors increase or decrease as we age.
- The five-factor model does not represent all of the *personality domain*.
***
**3.2 - The Dark Triad and MBTI Types**
- **Dark Triad:**
> Cluster of three socially undesirable personality traits:
> - Machiavellianism
> - Narcissism
> - Psychopathy
- **Machiavellianism:**
> People with a string motivation to get what they want at the expense of others.
- These people (*high-Machs*) take pleasure in misleading, outwitting, and controlling others.
- They use manipulation, exploitation, and undesirable influence tactics.
- Cynical disregard for moral principles.
- **Narcissism:**
> People who have an obsessive belief in their superiority and entitlement.
- They aggressively engage in self-promotion and attention-seeking behaviors.
- Intensely envious of others.
- Envy manifests in arrogance, *schadenfreude* (deriving pleasure from another's misfortune) and exploitation of others.
- **Psychopathy:**
> Social predators who ruthlessly dominate and manipulate others without empathy or remorse.
- Selfish self-promoters who use superficial charm, but engage in antisocial, impulsive, and fraudulent behavior.
- *These people do as they please and take what they want*.
- <u>The Dark Triad predicts counterproductive work behaviors</u>.
- **Counterproductive Work Behaviors:** Voluntary behaviors that directly or indirectly harm the organization.
- Dark Triad traits are associated with white-collar crime behavior.
- <u>People with Dark Triad traits are more likely to engage in bullying and workplace aggression</u>.
- People with high psychopathy take excessive risks, due to overconfidence and disregard for consequences.
- <u>Dishonesty is a core characteristic of the Dark Triad</u>.
- People with these traits are more likely to lie and deceive.
- They undermine others for their gain.
- **Organizational Politics:**
> Use of influence tactics for personal gain at the expense of others and the organization.
- Produces dysfunctional outcomes.
- People with Dark Triad traits are not always worse.
- A manipulative political skill is rated favorably by some supervisors.
- **Myers-Briggs Type Indicator (MBTI):**
> Instrument to measure elements of the Jungian personality theory, particularly preferences regarding perceiving and judging information.
![[A003 - MTBI.png | 500]]
- <u>Carl Jung suggested that personality is represented by an individual's preferences regarding perceiving and judging information</u>.
- These represent a person's attitude towards the external world.
- **Perceiving Function:** How people prefer to gather information. Composed of:
- **Sensing (S):** Perceiving information directly through the five senses.
- *The here and now*
- **Intuition (N):** Relies on insight and experience to see relationships among variables.
- *Future possibilities*
- **Judging Function:** How people prefer making decisions based on their perceptions. Composed of:
- **Thinking (T):** Relying on rational cause-effect logic and systematic data collection.
- **Feeling (F):** Relying on emotional responses to options presented.
- In addition, people differ in their levels of **extraversion-introversion**.
- People with a *perceiving* orientation are open, curious and flexible.
- People with a *judging* orientation prefer order, structure, and quick problem solving.
- <u>MTBI is usually a poor predictor of job performance</u>
- It should be avoided for employment selection.
- It has also questionable value when predicting leadership.
***
**3.3 - Values in the Workplace**
- **Values:** Stable beliefs that guide a person's preferences for outcomes or courses of action in different situations.
- Perceptions about *what is good or bad*.
- They serve as a *moral compass* and influence our motivations and decisions.
- They provide justification for past behavior.
- **Value System:** Arrangement of values according to a hierarchy of preferences.
- Unique to each person.
- Reinforced by experiences and society.
- Stable and long-lasting.
- **Personal Values:** Values that exist only within individuals.
- **Shared Values:** Values that are similar (or the same) across groups of people.
- **Organizational Values:** Values shared by people throughout an organization.
- **Cultural Values:** Values shared across a society.
- **Values vs. Personality Traits:**
- Values are evaluative, as they tell us what we *ought* to do.
- Some values may be opposed to other values.
- More influenced by socialization.
- Personality traits describe what we naturally *tend* to do.
- They have minimal conflict between each other.
- More influenced by heredity.
- **Schwartz's Values Circumplex:**
> Model of personal values that clusters 57 values into 10 broad categories, including:
> - Universalism
> - Benevolence
> - Tradition
> - Conformity
> - Security
> - Power
> - Achievement
> - Hedonism
> - Stimulation
> - Self-Direction
![[A004 - Schwartz's Values Circumplex.png | 500]]
- The 10 broad categories are clustered into four quadrants:
- **Openness to Change:** Extent to which a person is motivated to pursue innovative ways.
- **Conservation:** Extent to which a person is motivated to preserve the *status quo*.
- **Self-Enhancement:** How much a person is motivated by self-interest.
- **Self-Transcendence:** Motivation to promote the welfare of others.
- **Influence of Values on Decisions and Behavior:**
- <u>Values influence the attractiveness of choices</u>:
- Decisions are guided by personal values because they generate feelings towards the available choices.
- Positive feelings for choices aligned with our values.
- Negative feelings for choices contrary to our values.
- <u>Values frame our perceptions of reality</u>:
- Personal values influence whether we notice something, and how we interpret it.
- <u>Values help regulate consistency of behavior</u>:
- People are motivated to act consistently with their personal values.
- *The more a behavior aligns with our values, the more motivated we are to engage in that behavior*.
- There are situations that can prevent us from engaging in values-consistent behavior.
- Strong counter-motivational forces cause an individual to deviate from personal values.
- We also do not think about our values most of the time.
- Their relevance is not obvious in many situations.
- <u>People are more likely to apply their values when they are explicitly reminded of them and see their relevance to the situation</u>.
- **Values Congruence:**
> How similar a person's value hierarchy is to the value hierarchy of another entity (like a team or an organization).
- <u>When personal values are congruent with an organization's values, employees tend to have higher job satisfaction, loyalty and organizational citizenship</u>.
- Employees with diverse values offer different perspectives that can lead to better decision making.
- Organizations can benefit from some *incongruence*.
***
**3.4 - Ethical Values and Behavior**
- **Ethics:** The study of moral principles that determine whether actions are right or wrong, and outcomes are good or bad.
- People rely on ethical values to know the *right thing to do*.
- **Four Ethical Principles:**
- **Utilitarianism:**
> The only moral obligation is to seek the greatest good for the greatest number of people.
- We must choose the option that produces the highest satisfaction to those affected.
- Requires a *cost-benefit analysis*.
- Focuses only on outcomes, even if the means may be considered unethical by other principles.
- **Individual Rights:**
> Everyone has the same natural rights.
- These can include freedom of speech, freedom of movement, among others.
- Includes human rights that are a moral norm of society.
- Some individual rights may conflict with others.
- **Distributive Justice:**
> Benefits and burdens of similar individuals should be the same, or otherwise proportional.
- Inequalities are acceptable when they benefit the *least well off* in society.
- Difficult to agree on who is *similar* and what is *relevant*.
- **Ethic of Care:**
> Everyone has a moral obligation to help others within their relational sphere.
- Caring for others is fundamental.
- Includes being attentive to others' needs, give care to others, and having empathy.
- **Moral Intensity:**
> The degree to which an issue demands the application of ethical principles.
- An issue about:
1. How seriously people will be affected.
2. Probability that the outcomes will ocur.
3. How many people will be affected.
- **Moral Sensitivity:**
> A person's ability to detect a moral dilemma and estimate its relative importance.
- Estimate the moral intensity of an issue.
- People with high moral sensitivity can know when unethical behavior occurs.
- Affected by:
- Knowledge of prescriptive norms and rules.
- Previous experience with specific moral dilemmas.
- Ability to empathize with those affected.
- Strong self-view of being a morally sensitive person.
- High degree of situational mindfulness.
- <u>Ethical conduct is influences by the situation in which the conduct occurs</u>.
- Situational factors do not justify unethical conduct.
- **Code of Ethical Conduct:** Statement about desired practices, rules of conduct, and philosophy of an organization's relationship to its stakeholders and the environment.
- Suppose to motivate and guide employee behavior.
- They may do little to reduce unethical conduct.
- To improve ethical conduct, a strategy is to regularly train and evaluate employees on their knowledge of proper ethical conduct.
- An ethics practice is a confidential telephone hotline operated by an independent organization) where employees can anonymously report suspicious behavior.
***
**3.5 - Values Across Cultures**
- <u>Values not only differ among individuals and across organizations, but also across societies</u>.
- **Individualism:**
> The extent to which we value independence and personal uniqueness.
- **Collectivism:**
> The extent to which we value our duty to groups to which we belong.
- **Power Distance:**
> The degree to which people accept unequal distribution of power in a society.
- **Uncertainty Avoidance:**
> The degree to which people tolerate ambiguity or feel threatened by it.
- **Achievement-Nurturing Orientation:**
> The degree to which people in a culture emphasize competitive versus cooperative relations with other people.
- Cross-cultural knowledge often comes from small, convenient samples to represent an entire culture.
- Many conclusions may not generalize to the cultures they intend to represent.
- Cross-cultural studies often assume each country has one culture.
- Many countries have become culturally diverse.

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> ### 004 - Employee Motivation
> Class Notes - September 07, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**4.1 - Employee Motivation, Drives, and Needs**
- Motivation is one of the elements in the MARS model.
- **Motivation:**
> Forces within a person that affect his/her direction, intensity, and persistence of voluntary behavior.
- **Direction:** *What people are focused on achieving*.
- **Intensity:** *Amount of energy expended to achieve an objective*.
- **Persistence:** *How long people sustain their effort*.
- **Employee Engagement:**
> An individual's emotional and cognitive motivation.
- Refers to a focused, intense, persistent, and purposive effort toward work-related goals.
- Associated with *self-efficacy*, which is the belief that you have the ability and resources to get a job done.
- Also includes a high level of *absorption*, which is the experience of focusing intensely on the task.
- <u>Employee engagement predicts employee performance</u>.
- Disengaged employees tend to be disruptive.
***
**4.2 - Employee Drives and Needs**
- **Drives:**
> Hardwired characteristics of the brain that correct deficiencies by producing emotions to energize individuals.
- Also called **primary needs**.
- There is no *agreed-upon* list of human drives, but there are some *consistent;y-identified* drives, including:
- Having social interaction.
- Develop our competence.
- Comprehend our surroundings.
- Defend ourselves against harm.
- <u>Drives are universal and innate</u>.
- <u>Drives generate emotions</u>.
- **Needs:**
> *Goal-directed* forces that people experience.
- *Needs are emotions that we become consciously aware of*.
- <u>People develop different intensities of needs in a particular situation</u>.
- The individual's self-concept amplifies or suppresses emotions.
![[A005 - Drives and Needs.png | 500]]
***
**4.3 - Drive-Based Motivation Theories**
- **Four-Drive Theory:**
> Motivation theory that states that emotions are the source of human motivation.
- <u>Emotions are generated through four drives</u>:
- **Drive to Acquire:**
- Drive to seek out, take, control, and retain objects and experiences.
- Produces needs like achievement, competence, status, self-esteem, and competition.
- **Dive to Bond:**
- Produces the need for belonging and affiliation.
- Motivates cooperation.
- **Drive to Comprehend:**
- Motivates discovering answers and conflicting ideas.
- **Drive to Defend:**
- Drive to protect ourselves.
- Creates a *fight-or-flight* response.
- All drives are hardwired in our brains and exist in all human beings.
- <u>Drives are independent from one another</u>.
- The first three drives are proactive, while the *drive to defend* is reactive.
- Social norms, personal values, and past experiences guide our *motivational energy*.
- We choose a course of action that is consistent and acceptable with these.
![[A006 - Four-Drive Theory.png | 600]]
- **Practical Implications:**
- Best workplaces help employees fulfill all four drives.
- Fulfillment must be balanced.
- **Maslow's Needs Hierarchy Theory:**
> Motivation theory of needs arranged in a hierarchy. People are motivated to fulfill a higher need as one becomes gratified.
- Condenses *primary needs* into five categories organized in a hierarchy (from lowest to highest).
1. **Physiological:** Need for food, water, air, etc.
2. **Safety:** Need for security and stability.
3. **Belongingness/Love:** Need for interaction and affection.
4. **Esteem:** Need for self-esteem and social status.
5. **Self-Actualization:** Need for self-fulfillment.
- The **need to know** and **need for beauty** are *innate needs* that do not fit in the hierarchy.
![[A007 - Maslow's Needs Hierarchy Theory.png | 500]]
- <u>The strongest motivation comes from the lowest unsatisfied need</u>.
- The four bottom groups are considered *deficiency needs*.
- They become activated when unfulfilled.
- *Self-actualization* is a *growth need*.
- It continues to develop even when temporarily satiated.
- Maslow's needs hierarchy theory was dismissed.
- <u>People have different hierarchies of values</u>.
- Employees needs are influenced by self-concept and personal values.
- **Intrinsic Motivation:**
> Motivation that occurs when people are fulfilling their needs for competence and autonomy by engaging in the activity itself, rather than from an externally controlled outcome.
- *Intrinsically motivated* employees feel competent when applying their skills and observing positive, meaningful outcomes from that effort.
- **Extrinsic Motivation:**
> Motivation that occurs when people want to engage in an activity for instrumental reasons (receiving something beyond their personal control).
- *Directing one's effort towards a reward controlled by others*.
- **Additive Hypothesis:**
- Someone performing an intrinsically motivated job becomes more motivated by receiving an extrinsic source of motivation.
- **Contrasting Hypothesis:**
- Introducing extrinsic sources of motivation will reduce intrinsic motivation.
- Introducing extrinsic motivators reduces an employee's feeling of autonomy.
- **Learned Needs Theory:**
- <u>Needs are amplified or suppressed through self-concept, social norms, and past experiences</u>.
- <u>Needs can be strengthened or weakened trough reinforcement, learning, and social conditions</u>.
- **Learned Needs:**
- **Need for Achievement (nAch):**
- Chose moderately challenging tasks.
- Desire unambiguous feedback and recognition for success.
- Preference for working alone rather than in teams.
- Money is a weak motivator for people with high nAch, but it can be a strong motivator for people with low nAch.
- **Need for Affiliation (nAff):**
- Seek approval from others.
- Want to conform to others' wishes and expectations.
- Avoid conflict and confrontation.
- High nAff employees work well in jobs where the task is cultivating long-term relations.
- **Need for Power (nPow):**
- Exercise control over others.
- Highly involved in team decisions.
- Rely on persuasion.
- Concerned about maintaining leadership position.
- *Personalized Power* -> Individuals enjoy power for its own sake.
- *Socialized Power* -> Individuals desire power as means to help others.
***
**4.4 - Expectancy Theory of Motivation**
- **Expectancy Theory:**
> Motivation theory based on the idea that work effort is directed towards behavior that people believe will lead to favorable outcomes.
- Assumes people are rational decision makers that choose a target that will fulfill their needs.
- An individual's effort level depends on three factors:
- **Effort-to-Performance Expectancy (E-to-P):**
- An individual's perception that his/her effort will result in a particular level of performance.
- **Performance-to-Outcome Expectancy (P-to-O):**
- Perceived probability that a specific behavior will lead to a particular outcome.
- **Outcome Valences:**
- **Valence:** Anticipated satisfaction or dissatisfaction that an individual feels towards an outcome.
![[A008 - Expectancy Theory.png | 600]]
- **Increasing E-to-P Expectancy:*
- Influenced by the individual's belief that they can successfully complete a task.
- <u>Increased by assuring employees that they have the required abilities, resources, and clear role perceptions</u>.
- <u>Involves matching employee abilities to job requirements and clearly communicating the tasks required for the job</u>.
- **Increasing P-to-O Expectancy:**
- <u>Increased by measuring employee performance accurately and distributing more valued rewards to those with higher job performance</u>.
- *Employees need to believe that higher performance will result in higher rewards*.
- **Increasing Outcome Valences:**
- Reward valence varies from one person to the next, as each person has different priorities.
- <u>Individualize rewards by allowing employees to choose the rewards of greatest value to them</u>, or find a reward that everyone values to some degree.
- **Issues with Expectancy Theory:**
- Assumes people are perfectly rational.
- Mainly explains extrinsic motivation.
- Ignores emotions as a source of motivation.
- Does not explain how employees develop expectancies.
***
**4.5 - Organizational Behavior Modification and Social Cognitive Theory**
- **Organizational Behavior Modification (OB Mod):**
> Theory that explains behavior in terms of antecedent conditions and consequences of that behavior.
- **Behaviorism:** A good theory should rely exclusively on behavior and the environment.
- Ob Mod attempts to **change behavior (B)** by managing its **antecedents (A)** and its **consequences (C)**.
- **Antecedents:** Events preceding the behavior, informing that an action will produce specific consequences. They <u>do not cause behavior</u>.
- **Consequences:** Events that follow a particular behavior that influence its future occurrence.
![[A009 - OB Mod.png | 500]]
- **Types of Consequences (Contingencies of Reinforcement):**
- **Positive Reinforcement:** When the introduction of a consequence increases or maintains the probability of a specific behavior.
- **Punishment:** When a consequence decreases the probability of the occurrence of a specific behavior.
- **Extinction:** When the target behavior decreases because no consequence follows it.
- **Negative Reinforcement:** When the removal of a consequence increases or maintains the probability of a specific behavior.
- <u>Positive reinforcement should follow desired behaviors</u>.
- <u>Extinction should follow undesirable behaviors</u>.
- **Schedules of Reinforcement:**
- **Continuous Reinforcement:** Providing positive reinforcement after every occurrence of the desired behavior.
- **Variable Ratio Schedule:** Providing positive reinforcement after a varying number of times.
- **Social Cognitive Theory:**
> Theory that explains how learning and motivation occur by observing and modeling others, as well as anticipating the consequences of our behavior.
- **Learning Behavior Consequences:**
- People learn consequences of behavior by observing or hearing from others, not only by direct experience.
- People logically anticipate consequences in related situations.
- **Behavior Modeling:**
- People learn by imitating and practicing the behaviors of others.
- Modeling behavior gives learners direct sensory experience.
- Helps develop strong self-efficacy.
- **Self-Regulation:**
- Individuals set goals and engage in other forms of intentional, purposive action.
- People establish their own short- and long-term objectives.
- **Self-Reinforcement:** *Rewarding or punishing oneself for exceeding or falling short of a self-set goal*.
***
**4.6 - Goal Setting and Feedback**
- **Goal:**
> A cognitive representation of a desired end state that a person is committed to attain.
- Motivates people by clarifying role perceptions and directing effort.
- Amplifies the intensity and persistence of effort.
- **Characteristics of Effective Goals:** SMARTER
- Specific (*What needs to be accomplished*)
- Measurable (*Indication of progress*)
- Achievable (*Sufficient but not over-challenging*)
- Relevant (*In the individual's control*)
- Time-Framed (*Having a due date*)
- Exciting (*Challenging goals*)
- Reviewed (*Receiving feedback*)
- **Feedback:**
- Information that lets us know whether we have achieved a goal or are probably directing our effort towards it.
- Contributes to motivation and performance.
- Feedback must be specific, relevant, timely, credible, and sufficiently frequent.
- **Strengths-Based Coaching:**
- Also known as *appreciative coaching*.
- Maximized employees' potential by focusing on their strengths rather than their weaknesses.
- A *coach* asks exploratory questions to help employees discover ways to build on their strengths.
- *People are more receptive to information about their strengths than their weaknesses*.
- **Sources of Feedback:**
- **Social Sources**
- **Nonsocial Sources:** Feedback without someone communicating information.
- **Multisource (360-Degree) Feedback:**
- Information collected from a full circle of people, like subordinates, peers, supervisors, and customers.
- More complete and accurate.
- Better sense of fairness.
- Can be expensive, time-consuming, and biased.
- Can be ambiguous.
- Difficult goals can motivate some people to engage in unethical behavior.
- Difficult goals can be stressful and undermine performance.
- Goal setting should be avoided when employees are in the middle of a learning process.
***
**4.7 - Organizational Justice**
- **Types of Justice:**
- **Distributive Justice:**
> The perception that appropriate decision criteria have been applied to calculate how benefits and burdens are distributed.
- **Procedural Justice:**
> The perception that appropriate procedural rules have been applied throughout the decision process.
- **Interactional Justice:**
> The perception that appropriate rules have been applied in the way employees are treated throughout the decision process.
- **Equality Principle:** *When we believe everyone in a group should receive the same outcomes*.
- **Need Principle:** *When we believe that those with the greatest need should receive more than others with less need*.
- **Equity Principle:** *People should be paid in proportion to their contribution*.
- **Equity Theory:**
> Employees determine whether a decision is equitable by comparing their own outcome/input ratio to the outcome/input ratio of another person.
- **Outcome/Input Ratio:** Value of outcomes received divided by the value of inputs provided.
- Inputs can be skill, effort, performance, experience, and hours worked.
- Outcomes can be pays, promotions, recognition, and opportunities.
- <u>Equity is determined in terms of a *comparison other*</u>.
- **Inequity Tension:** Negative emotions that occur when people believe they are under- or over-rewarded.
- Actions to reduce this can include reducing inputs, increasing outcomes, increase the comparison other's inputs, or reduce the comparison other's outputs.
- Other actions include asking the company to reduce a coworker's pay, changing our beliefs about the situation, changing the comparison other, or leaving the field.
- **Maintaining Procedural Justice:**
- Decision makers must be perceived as unbiased and without self-interest.
- Decisions should be based on relevant and accurate information.
- Decisions need to account for the diverse groups affected by the outcomes.
- Criteria and procedures should be compatible with ethical principles.
- Employees should be given *voice* in the process.s
- Employees should have a right to appeal the decision.
- **Maintaining Interactional Justice:**
- Treating people with politeness and respect.
- Employees should receive well-justified explanations about decisions.
***
**4.8 - Job Design**
- **Job Design:** The process of assigning tasks yo a job.
- Tries to balance competing effects of efficiency and motivation.
- **Job Specialization:** When work is subdivided into separate jobs assigned to different people.
- Improved work efficiency.
- Less skills and knowledge to learn.
- More frequent practice.
- Less attention residue from changing tasks.
- Better person-job matching.
- **Scientific Management:** Practice of partitioning work into its smallest elements and standardizing tasks to achieve maximum efficiency.
- Associated with high levels of work specialization.
- **Problems with Job Specialization:**
- Adversely affects employees attitudes and motivation.
- Some jobs become tedious, socially isolating, and cognitive dysfunctional.
- Produce higher employee turnover and absenteeism.
- Reduces work attractiveness and motivation.
- **Job Characteristics Model:**
> Job design model that relates motivational properties of jobs to specific personal and organizational consequences.
![[A010 - Job Characteristics Model.png | 500]]
- Identifies five core job dimensions that produce three psychological states.
- Employees with these psychological states have higher motivation, satisfaction, and performance.
- **Core Job Characteristics:**
- **Skill Variety:** Use of different skills and talents to perform tasks.
- **Task Identity:** Degree to which a job requires completion of a whole or identifiable piece of work.
- **Task Significance:** Degree to which the job affects the organization and the larger society.
- **Autonomy:** Freedom, independence, and discretion in scheduling.
- **Job Feedback:** Degree to which employees can tell how well they are doing.
- **Critical Psychological States:**
- **Felt Meaningfulness of the Work:** Belief that one's work is important.
- **Felt Responsibility for Work Outcomes:** Sense of being accountable for work outcomes.
- **Knowledge of Work Results:** Awareness of outcomes based on information of the job.
- **Social and Information Processing Job Characteristics:**
- **Task Variability:** *How predictable the job duties are from one day to the next*.
- Variability increases employee motivation due to non-routine work patterns.
- **Task Analyzability:** *How much the job can be performed using known procedures and rules*.
- High task analyzability results in low information processing due to reliance in established guidelines.
- Employees are less motivated when doing jobs with high task analyzability.
- **Increasing Motivational Potential of Jobs:**
- **Frequent Job Rotation:**
- Moving employees through two or more jobs each day.
- Reduces risk of repetitive strain and heavy lifting injuries.
- Employees learn to perform multiple jobs.
- Clearer picture of processes.
- Employees use a wide variety of skills.
- **Job Enlargement:**
- Practice of increasing the number and variety of related tasks assigned to a job.
- More skill variety.
- Reduces repetitive strain injuries.
- **Job Enrichment:**
- Occurs when employees are given more responsibilities for scheduling, coordinating, and planning their own work.
- Increases job satisfaction and work motivation.
- Reduces absenteeism and turnover.
- Increases quality as it increases an employee's felt responsibility and sense of ownership.
- *Natural Grouping* -> Combining highly interdependent tasks into one job.
- *Establishing Client Relationships* -> Putting employees in direct contact with clients.

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> ### 005 - Perceiving Ourselves and Others in Organizations
> Class Notes - September 07, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**5.0 - Video Lecture Notes**
- **Self-Concept:**
> Your beliefs about yourself and self-evaluations.
- *Who are you?*
- *How do you feel about yourself?*
- Composed of the many identities (or labels) that you have.
- Examples include student, millennial, soccer player, worker, among others.
- We are composed of many identities, that may overlap.
- **Characteristics of Self-Concept:**
- **Complexity:**
> The number of distinct and important identities you perceive yourself as having, and how interconnected or distinct they are.
- *How many labels do you have?*
- *How much do these labels overlap?*
- The more interconnected these labels are, the lower the complexity.
- **Consistency:**
> Extent to which identities require similar personality traits, values, or actions.
- *Be the same kind of person as you inhabit these identities*.
- If we exhibit different personality traits and actions, we end up with low consistency.
- There is a potential for *cognitive dissonance*.
- We simultaneously act in two different ways, which causes stress.
- **Clarity:**
> Extent to which your self-concept is clear, stable, and confidently defined.
- *Do we confidently know who we are?*
- <u>High complexity, consistency, and clarity are related to higher levels of well-being</u>.
- **Self-Enhancement:**
> Motivation to have a positive self-concept.
- *We are motivated to have a positive self-concept*.
- <u>Can make us perceive our ability and sill level to be higher than it actually is</u>.
- Can cause trouble with performance and the organization.
- Can also be used to motivate employees.
- Assign activities that amplify their self-concept.
- Can make employees feel more engaged and motivated.
- **Self-Verification:**
> Desire to conform and maintain our self-concept.
- *We want people to think we are who we think we are*.
- Seek social input.
- As a manager, we can reflect the positive aspects of the self-concept of an employee.
- If we want to teach children to be *more moral*, we should help them build a *moral self-concept*.
- Attribute positive actions to their self-concept.
- *You helped do X because you are a good person*.
- *You delivered X, you are a reliable person*.
- Reinforcing elements of the self-concept.
- Attribute negative actions to behavior while preserving a positive self-concept.
- *You are a good person even if you did a bad thing, and I know you can do better*.
- Behaviors that are not reflective of their self-concept.
- When providing feedback to an employee, be mindful of their self-concept.
- Focus on aspects of their self-concept that you want to reinforce.
- When criticizing something, focus on behaviors that an employee can change, rather than traits.
- Build on positive traits and positive self-concept aspects where you can.
- **Self-Esteem:**
> General feelings of self-worth or value.
- *Do you feel like you are a good person?*
- **Self-Efficacy:**
> Belief in one's capacity to complete tasks successfully.
- Can be general or *task specific*.
- **Internal Locus of Control:**
- *Belief that I can affect the life events I experience*.
- *Belief that I'm the driver in my life*.
- **External Locus of Control:**
- *Belief that the life events I experience are beyond my control*.
- High self-efficacy translates into a high internal locus of control.
- Better in leadership positions.
- Suits management better.
- <u>To be an effective leader and manager, you need to understand your employee's self-concept</u>.
- This helps identify strengths and avoid or manage weaknesses.
- Relevant for diversity management.
- <u>Our perceptions are our reality</u>.
- We can call it a *socially constructed reality*.
- <u>But our perceptions are not necessarily a true representation of reality</u>.
- *What else are we missing?*
- Our perceptions impact the attributions, schemas (categories), and stereotypes that we form.
- Perceivers take stimuli from the environment, categorize them (but discard some of them).
- These *mental models* affect what we do and do not perceive from the environment.
- Our mood also affects our perception.
- We often perceive things that will reinforce what we are expecting to see.
- **Attribution Theory:**
> Describes how people explain the causes of behavior.
- *Why we think people behave the way they do*.
- Biases reduce the accuracy of attributions.
- **Self-Serving Bias:**
- *When we make a mistake, it's not our fault, it's the environment's fault*.
- **Fundamental Attribution Error:**
- When we see others doing *bad actions*, we attribute it to a *fundamental failing* on their part (like personality or motivation).
- When they do something good, we are more likely to attribute it to the environment.
- **Self-Fulfilling Prophecy**
- We need to be careful about our attributions.
- The attributions we have about others may create the need for then to interact about them.
- *If we perceive someone to be bad, then we can create a self-fulfilling prophecy where they are bad*.
- **Perceptual Errors:**
- **Halo/Horns Effect:**
- *When we like someone, we think that person is good at everything* -> Halo Effect
- *When we hate someone, we think that they are bad at everything* -> Horns Effect
- **False-Consensus Effect:**
- *Thinking everyone around us thinks the way we do*.
- **Primacy Effect:**
- *When a first impression sets a tone on how we perceive something forward*.
- **Recency Effect:**
- *When we care the most about our most recent impression*.
- We use perceptions to make inferences and decisions.
- Ideally, we want them to be accurate or be aware of their potential inaccuracy.
- Other people also have perceptions about you or your organization.
- These are formed in response to your actions.
- They can affect morale, reputation, or success.
- **Diversity Management:**
- If everyone in an organization has the same set of perspectives (same experiences), we get a homogeneous set of biases and perceptions.
- If we have people with different sets of experiences and perspectives, we have different biases.
- This gives better coverage and a *more accurate picture*.
- Not everyone has the same biases.
- Our world view does not set us to monitor particularly well how others are going to perceive us.
- Lack of diversity impedes performance and creativity.
- We need to focus on *deep-level* diversity.
- More than gender, skin tone, and religion.
- Organizations need to focus on *diversity of experience*.
- *Surface level* labels can be used as a proxy for *deep level diversity*.
- <u>It is important to have a diversity of perspective in an organization</u>.
- <u>Perception equals reality</u>.
- People can only react to the things that they perceive.
- They may not be an accurate representation of reality.
- Many aspects of our life are *socially constructed*.
- There is more diversity than skin color, gender, and religion.
- Diversity of experience provides the most value for organizations.
- Managing diversity requires to be thoughtful.
- Can be a source of strength to an organization.
- It has to be given a purpose, people have to bring something of value to the organization.
- Link to performance or mission.
- Take a learning orientation rather than achieving an end goal.
***
**5.1 - Self Concept**
- **Self-Concept:**
> An individual's self-beliefs and self-evaluations.
- *Who am I?*
- *How do I feel about myself?*
- Guides decisions and actions.
- Defined at three levels:
- Individual -> Personal Traits
- Relational -> Connections to Friends and Coworkers
- Collective -> Membership in Organizations
- Described by three characteristics:
- **Complexity:**
> Number of distinct and important roles or identities that people perceive about themselves.
- **Self-Expansion:** Motivation to increase an individual's complexity.
- Self-concept become s more complex as we acquire additional roles.
- Someone with multiple identities can have low complexity if they are *highly interconnected*.
- Complexity is higher when multiple identities have low correlation with each other.
- Only some identities dominate the attention of an individual at one time.
- **Examples:** Student, friend, daughter, fan, etc.
- **Consistency:**
> Degree to which a person's identities require similar personal attributes.
- Low consistency happens when some self-views require attributes that conflict with attributes required for other self-views.
- Low consistency also occurs when self-views are incompatible with a person's personal attributes.
- **Clarity:**
> Degree to which a person's self-concept is clear, confidently defined, and stable.
- People with high clarity are confident about *who they are*.
- Usually increases with age, as personality and values become stable.
- Psychological well-being is higher with people that have high complexity, clarity, and consistency.
- Employees with high complexity have more adaptive decision making and performance.
- *Multiple selves* generate more diverse experiences.
- Produces more diverse social networks.
- Requires more effort to maintain, resulting in high stress and less efficiency.
- Clarity tends to improve performance.
- Good for leadership roles.
- Results in role inflexibility, as people cannot adapt to changing conditions.
- **Processes that Shape Self-Concept:**
- **Self-Enhancement:**
> A person's motivation to have a positive self-concept.
- *Individuals rate themselves above average*. (overconfidence)
- Better mental and physical health.
- Generates a *can-do* attitude that motivates persistence.
- Causes people to overestimate future returns in investment decisions.
- Causes individuals to engage in unsafe behavior.
- Accounts for repeating poor decisions.
- **Self-Verification:**
> A person's motivation to confirm and maintain their existing self-concept.
- Employees actively communicate their self-concept so coworkers understand it and provide verifying feedback when observed.
- Includes seeking feedback that may not necessarily be flattering.
- Employees are more likely to remember information that is consistent with their self-concept.
- They will consciously dismiss feedback that contradicts it.
- **Self-Evaluation:**
- Defined by three elements:
- **Self-Esteem:** The extent to which people like, respect, and are satisfied with themselves.
- **Self-Efficacy:** A person's belief that they have the ability to complete a task successfully. Can be specific or generalized.
- **Locus of Control:** A person's belief about the amount of control they have over personal life events.
- *Internal Locus of Control* -> Believing that life events are caused by personal characteristics.
- *External Locus of Control* -> Believing that events are mainly due to fate, luck, or the environment.
- **The Social Self:**
- **Individual Self:**
- **Also** called **personal identity** or **internal self-concept**.
- Involves defining ourselves by our personal attributes.
- Human beings have an inherent drive to be associated with others and be recognized.
- **Social Identity:**
- Also called **external self-concept**.
- **Social Identity Theory:** *People define themselves by the groups to which they belong to*.
- Association to a group makes us feel better about ourselves.
***
**5.2 - Perceiving The World Around Us**
- **Perception:**
> Process of receiving information and making sense of the world around us.
- *Determining which information to notice*.
- *How to categorize and interpret information*.
- **Selective Attention:** Process of attending some received information and ignoring other information.
- Influenced by characteristics of what is being perceived, as well as the context on which information is being perceived.
- The characteristics of the perceiver also influence selective attention.
- When information is received, we attach emotional markers to the retained information.
- They help store information, as these markers are later reproduced when recalling this information.
![[A011 - Perception.png | 500]]
- **Selective Attention Bias:** Effect of our assumptions and expectations about future events.
- **Confirmation Bias:** Process of *screening out* information that is contrary to our values and assumptions.
- We usually pay attention to information that supports our decisions.
- **Perceptual Grouping:**
- **Categorical Thinking:**
>Organizing people and objects into preconceived categories.
- It is a *perceptual grouping process*.
- We group people based on observable similarity, or by proximity to one another.
- *Filling in Missing Information*
- We rely on past experiences to make sense of similar situations.
- *Seeing patterns that are random events*.
- **Mental Models:**
> Knowledge structures that we develop to explain the world around us.
- They consist of visual or relational images in our mind.
- They rely on perceptual grouping to make sense of things.
- *Filling in the missing pieces*.
- They make it difficult to see the world in different ways and block recognition of new opportunities.
***
**3.3 - Specific Perceptual Processes and Problems**
- **Stereotyping:**
> Process of assigning traits to people based on their membership in a social category.
- Assigned characteristics include traits, abilities, and physical characteristics.
- Formed from personal experience, but mainly provided through media images and cultural prototypes.
- They are *shared beliefs* across an entire society.
- Stereotyping is a nonconscious *energy-saving* process that simplifies our understanding of the world.
- We have an innate reason to anticipate how others will behave.
- It is motivated by the need for social identity and self enhancement.
- **Stereotyping Process:**
- **Categorization:** *Categorizing people into distinct groups, ignoring individuality*.
- **Homogenization:** *Considering people within each group as very similar to each other*.
- **Differentiation:** *Assigning more favorable characteristics to people in our groups*.
- Stereotyping is highly inaccurate.
- Stereotypes are distorted and embellished.
- They describe few people in the group.
- They often describe *less than the majority* of members in category.
- They lead to perceptual biases.
- **Stereotype Threat:** When members of a group are so concerned about negative stereotypes assigned to them that they end up displaying the trait they are trying to avoid.
- Stereotypes lay the foundation for unfair discrimination.
- Most of it is *unintentional (systemic) discrimination*.
- *Intentional discrimination (prejudice)* is when people hold unfounded negative attitudes towards a stereotyped group.
- **Attribution Theory:**
- **Attribution Process:** Perceptual process of deciding whether an observed behavior is caused by external or internal factors.
- Attribution involves forming beliefs about the causes of behavior.
- **Internal Factors:** Include ability and motivation.
- **External Factors:** Include resources, support, or luck.
- We rely on three attribution rules to decide what causes someone's behavior:
- Consistency
- Low consistency weakens confidence.
- High for both internal and external attributions.
- Tells *how confident we should be in an attribution*.
- Distinctiveness
- Consensus
- **Attribution Errors:**
- **Self-Serving Bias:**
> Tendency to attribute favorable outcomes to internal factors and failures to external factors.
- *Take credit for our successes*.
- *Blame others for our mistakes*.
- Occurs due to the self-enhancement process.
- **Fundamental Attribution Error:**
> Tendency to see the person rather than the situation as the main cause of that person's behavior.
- Also called **correspondence bias**.
- Occurs because observers cannot easily see external factors that constrain a person's behavior.
- **Self-Fulfilling Prophecy:**
> Process in which our expectations about another person cause that person to act more consistently with those expectations.
- *Perceptions can influence reality*.
- **Steps in Self-Fulfilling Prophecy:**
1. A supervisor forms expectations about an employee's future behavior.
2. The supervisor's expectations influence his/her behavior toward employees.
3. The supervisor's behavior affects the employee's ability and motivation.
4. The employee's behavior becomes more consistent with the supervisor's initial expectations.
- **Additional Perceptual Errors:**
- **Halo Effect:**
> When our general impression of a person affects our perception of other characteristics of that person.
- **False-Consensus Effect:**
> When we overestimate the extent to which others have beliefs similar to our own.
- **Recency Effect:**
> When the most recent information dominates our perception of others.
- **Primacy Effect:**
> Tendency to rely on the first information we receive about people to quickly form an opinion of them.
***
**3.4 - Improving Perceptions**
- **Awareness of Perceptual Biases:**
- A way of reducing perceptual biases is by <u>knowing that they exist</u>.
- Awareness can reduce biases by making people more mindful of their thoughts and actions.
- It can have the unintended effect of reinforcing stereotypes rather than reducing them.
- It is ineffective for people with *deeply held prejudices*.
- **Improving Self-Awareness:**
- By discovering our perceptual biases, we reduce them through <u>increased open-mindedness toward others</u>.
- **Implicit Association Test (IAT):** Formal test that attempts to detect subtle forms of bias by associating positive and negative words with specific groups of people.
- **Johari Window:** Model of mutual understanding that encourages disclosure and feedback to increase the open area, and reduce blind, hidden, and unknown areas.
- **Meaningful Interaction:**
- Activity in which people <u>engage in valued activities</u>.
- **Contact Hypothesis:** *The more we interact with someone, the less prejudiced we will be against that person*.
- Occurs when performing tasks with co-workers in an organization.
- Strongest when people work closely and frequently with each other on shared goals.
- Reduces dependency on stereotypes because it improves knowledge about individuals.
- Improves **empathy** (understanding and being sensitive to other's feelings) toward others.

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> ### 006 - Decision Making and Creativity
> Class Notes - September 21, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**6.0 - Video Lecture Notes**
- **Types of Decisions:**
- **Non-Programmed Decisions:**
- Thoughtful decisions.
- We have not encountered these situations and do not know exactly how to handle them.
- **Programmed Decisions:**
- Problems or opportunities that have happened before.
- *Decision Program* - Can be codified (decision trees), or having standard procedures.
- We are essentially on *autopilot*.
- We can forget things or miss important detail.
- It is possible that the decision is not appropriate for the situation, and we may not notice it.
- **Limits for Making Rational Decisions:**
- **Bounded Rationality:**
- We have finite cognitive capacity.
- There is an amount of information that we can handle at a given time.
- *There is only so much that we can know and process*.
- **Satisficing:**
- Instead of *maximizing* (choosing the best decision), we tend to choose a quick, *good enough* option.
- **Groupthink:**
- When, in a highly cohesive group, members want to maintain the *tranquility*, and no one wants to challenge anyone's ideas.
- *Everyone agrees with everybody else*.
- Interferes with communication.
- **Biases:**
- Escalation of Commitment:
- Sunk Costs Fallacy
- Prospect Theory Effect:
- *We are not good at weighing potential gains vs. potential losses, and we tend to have unbalanced reactions.*
- We tend to overweight the potential for gains and overweight actual loses that we have.
- **Rational Choice Paradigm:** Logically determine the best choice in a situation:
1. Determine the full set of possible alternatives.
2. Assign probabilities to each alternative.
3. Determine satisfaction of each alternative.
4. Calculate a subjective expected utility (probability $\times$ satisfaction).
5. Select alternative with highest subjective expected utility.
- No one really makes decisions this way.
- Theoretically, it should help us make the best non-programmed decision.
- **Evidence-Based Management:**
> A system that is built around decision-making rather than an actual decision-making process.
- *A culture that is built around the idea that you tell the hard truths*.
- No *sugarcoating* or *keeping quiet*.
- Focus on making decisions based on the *best evidence*.
- Not just what *makes you feel good* or confirms your assumptions.
- Encourage people to experiment and learn by doing.
- Failure is an important part of the process.
- Always consider the risks and drawbacks of recommendations, even when they look perfect.
- *Think critically*.
- Do not make decisions because *this is what everyone is doing or has done*.
- Make decisions critically and for good reasons that you can list out.
- **Creativity:**
> Process of generating ideas that are both novel (original) and useful (make a socially-recognized contribution).
- It need to be both novel and useful, as ideas that are *novel just for the sake of being novel* do not make money in a business context.
- First step in the innovation process.
- **Innovations:** *Creative ides that have been realized*.
- Usually related to processes and administration.
- **What makes people creative?**
- **Motivation:**
- Mostly intrinsic - *finding the work rewarding for itself*.
- **Relevant Knowledge (Expertise)**
- **Creative-Thinking Skills:**
- Also called **divergent thinking skills**.
- Developed over time.
- *Thinking outside of the box*, *challenging assumptions*...
- **Supporting Creativity:**
- **Individual Factors:**
- Personality -> Openness to Experience
- Emotions -> Happy People
- Opens the cognitive frame as we are not focused on a particular source of a problem.
- Divergent Thinking Skills
- Unconscious Processing
- Creative Self-Efficacy (belief in *being creative*)
> [!INFO]
> Consider that the only one we cannot affect is *openness to experience*. The rest can be affected by altering our surroundings or practicing.
- **Contextual Factors:**
- **Organizational:**
- Autonomy / Empowerment
- People need freedom to be flexible and try different creative things.
- Slack Resources
- *Extra stuff* for employees to experiment.
- Collaborative and Supportive Culture
- *It is acceptable to voice ideas and to experiment with stuff that does not necessarily work.*
- Signals of safety indicate this.
- Consistent messaging.
- Creativity Prompts
- Offer instructions that ask for creative solutions.
- Creative environments -> toys, colors, writing on walls...
- Creative goals.
- **Supervisor (Things to do as a Manager):**
- Provide developmental feedback that is supportive and not overly critical.
- Non-controlling and non-abusive.
- Transformational Leadership -> Help grow and be the *best version of yourself*.
- **Coworkers (Thins to do as a Coworker):**
- Presence of creative coworkers around you.
- Having coworker support.
- Diversity of experience and perspective.
- **When is creativity appropriate?**
- Most of the time.
- If we want process and product improvements, or new processes or products.
- **When is creativity not appropriate?**
- Significant risk aversion.
- If managers are risk averse - they may not realize it.
- Too worried with outcomes.
- Conditions that do not support creative idea generation.
- If satisficing is sufficient.
- Creativity tends to take time -> non-programmed decision process.
- Multiple ways to make decisions.
- Appropriate approach depends on the situation.
- Hybrid Approach -> Programmed and Non-Programmed Approaches
- We rarely have complete information.
- Bounded Rationality
- Decision-making tools can help us in this case.
- Individual differences affect work outcomes.
- We can do thinks (as an employee or manager) to encourage creativity in ourselves and the organization.
- Help people overcome resistance to creativity and innovation.
***
**6.1 - Rational Choice Decision Making**
- **Decision Making:**
> Process of making choices among alternatives with the intention of moving toward a desired state of affairs.
- **Rational Choice Decision Making:** Process of using *pure logic* and all available information about alternatives to chose the one with the highest value.
- **Rational Choice Decision Process:**
1. Identify the problem or opportunity.
- **Problem:** Deviation between the current and the desired situation.
- **Opportunity:** Deviation between current expectations and an unexpected *potentially* better situation.
2. Choose the best decision process.
- **Programmed Decisions:** Follow standard operating procedures. They have been resolved in the past.
- **Nonprogrammed Decisions:** Require all steps in the decision model, as the problems are new, complex, or not well defined.
3. Identify or develop possible choices.
- Search for *ready-made* solutions.
- Design a *custom-made* solution.
- Modify an existing solution.
4. Select the choice with the highest value.
- Choose the alternative with the greatest expected satisfaction.
5. Implement the selected choice.
6. Evaluate the selected choice.
- It is impossible to apply rational choice decision making in reality.
***
**6.2 - Identifying Problems and Opportunities**
- *Only when we understand the problem, we can move towards a meaningful solution*.
- **Problems with Problem Identification:**
- **Mental Models:**
> Knowledge structures that we develop to describe, explain, and predict the world around us.
- They help us fill information that we do not immediately see.
- They also represent how things *should* be.
- <u>Mental models can *blind* us from seeing unique problems because they produce negative evaluations of things that deviate from them</u>.
- **Decisive Leadership:**
- *How quickly we determine that a situation is a problem or opportunity*.
- Many leaders announce problems before having a chance to logically assess the situation.
- **Stakeholder Framing:**
- <u>Individuals provide or hide information to make the decision maker see the situation as a problem or opportunity</u>.
- Decision makers fall for these constructed realities because they need to simplify complex and ambiguous information.
- **Perceptual Defense:**
- <u>Decision makers fail to recognize or quickly forget information that threatens the situation</u>.
- More likely to occur in people with higher trait anxiety (high neuroticism) or when having limited options.
- **Solution-Focused Problems:**
- *Jumping to a solution before understanding the problem*.
- Occurs when people define the problem as a *veiled solution*, meaning that <u>the problem statement is a proposed solution</u>, but the actual problem hast not been identified.
- Happens as solutions that worked in the past come to mind before proper problem diagnosis.
- Also occurs because decision makers are comforted by closure to problems, so they *non-consciously* embed solutions in problem definitions.
- By recognizing problem identification biases, decision makers can be motivated to consider other perspectives.
- Requires considerable willpower.
- *Norm of Divine Discontent*:
- Decision makers that are never satisfied with current conditions, no matter how successful the situation may be.
- These individuals search more actively for problems and opportunities.
- Problem identification errors can be minimized by discussing situations with other people of different experiences and backgrounds.
- **Bounded Rationality:**
> View that people are *bounded* in their decision-making capabilities due to:
> - Access to limited information.
> - Limited information processing.
> - Tendency towards satisficing rather than maximizing.
- It is an *imperfect rationality* theory that identifies ways in which human decision making differs from rational choice.
- **Problems with Goals:**
- They establish *what ought to be* and are a critical component of decisions.
- In reality, they are ambiguous or in conflict with each other.
- Difficult to know if a particular choice has higher value to the organization.
- **Problems with Information Processing:**
- People *sequentially* evaluate only a few alternatives and characteristics, instead of all alternatives and their features.
- **Implicit Favorite:** Preferred alternative that a decision maker uses repeatedly as a comparison to other choices.
- Usually, decision makers are *unaware* of their favoritism.
- **Reasons for Sequentially Comparing Alternatives:**
- It is difficult to have information about all alternatives at the same time.
- Humans have a natural preference for comparing to choices rather than evaluating multiple alternatives at the same time.
- People minimize mental effort by forming a preferred alternative and looking for evidence to support it (Confirmation Bias).
- Human need for cognitive consistency and coherence.
- Decision makers non-consciously ignore positive features of the alternatives related to their *implicit favorite*.
- We *distort our valences* so that our implicit favorite remains the best choice.
- **Biased Decision Heuristics:**
- **Anchoring and Adjustment Heuristic:**
> Tendency for people to be influenced by an initial anchor point such that they do not move away from it as new information is provided.
- Humans tend to compare alternatives rather than evaluate them against objective criteria.
- **Availability Heuristic:**
> Tendency to assign higher probabilities to events that are easier to recall.
- *How easy we recall is due to several factors, not just how often it occurs*.
- **Representativeness Heuristic:**
> Tendency to evaluate probabilities of events by the degree to which they resemble other events, rather than on objective information.
- **Problems with Maximization:**
- **Satisficing:**
> Selecting an alternative that is *good enough* rather than the alternative with the highest value (maximization).
- <u>Rather than aiming for maximization, people engage in satisficing</u>.
- This is usually necessary because choosing the best choice requires complete and perfect information.
- This is impossible in reality.
- Deciding from many alternatives and many outcomes for each can be cognitively and emotionally draining.
- Decision makers satisfice to minimize cognitive effort.
- A large number of choices can discourage people from making a decision at all.
- **Evaluating Opportunities:**
- Decision makers usually do not evaluate alternatives when finding an opportunity.
- *The opportunity is the solution, so why look for others*.
- Decision makers tend to have an emotional attachment to the opportunity, which motivates decision and blocks any detailed assessment.
***
**6.3 - Emotions and Intuition in Decision Making**
- Emotions affect the evaluation of alternatives in the following ways:
- **Emotions form Early Preferences:**
- Emotions shape our preferences for alternatives before we consciously evaluate them.
- Our brain attaches specific emotions to information about each alternative.
- Our preferred alternative is influenced by its initial emotion markers.
- Even logical analysis depends on emotions to sway decisions.
- **Emotions Influence the Decision Evaluation Process:**
- *We pay more attention to details when in a negative mood*.
- *When in a positive mood, we pay less attention to details and rely on a programmed decision routine*.
- When angry, decision makers rely on stereotypes and *shortcuts* to speed up the choice process.
- <u>Emotions shape how we evaluate information</u>.
- **Emotions Serve as Information when we Evaluate Alternatives:**
- *Emotions as Information*
- We *listen* to our emotions to get guidance when making choices.
- **Intuition:**
> Ability to know when a problem or opportunity exists and to select the best course of action **without conscious reasoning**.
- Intuition and logical analysis are not opposites, as emotions are always present in decision making.
- It is both an *emotional experience* and a *fast non-conscious analytic process*.
- *Gut feelings* are emotional signals with enough intensity to make us aware of them.
- Not all emotional signals are intuition.
- They are only *valid intuition* when they rely on mental models that can predict the situation where we sense the problem or the opportunity.
- We may sometimes compare the current situation to irrelevant *remote templates*.
- <u>The extent to which our *gut feelings* represent intuition depends on our level of experience in the situation</u>.
- Intuition also relies on generic *action scripts*, which are programmed decisions that shorten the decision-making process.
- **Making Choices More Effectively:**
- Rely on logical analysis and not just intuition. They should be considered only in combination.
- Revisit important problems and opportunities at later times so they are evaluated in different moods.
- **Scenario Planning:** Disciplined process of thinking about alternative futures and how an organization should anticipate and react to them.
- **Evaluating Decisions:**
- Decision makers engage in *confirmation bias* to support an implicit favorite.
- **Postdecisional Justification:** When confirmation bias continues long after a decision has been made.
- Decision makers ignore negative outcomes and overemphasize positive features.
- Gives an excessively optimistic evaluation of decisions.
- **Escalation of Commitment:**
> Tendency to repeat an apparently bad decision or to allocate more resources to a failing course of action.
- **Main Influences:**
- **Self-Justification Effect:**
- *People try to convey a positive public image*.
- This means that they are motivated to demonstrate that their choices will be successful, even when a decision is not having the desired outcomes.
- A project's failure symbolizes the decision maker's incompetence.
- **Self-Enhancement Effect:**
- *People have a tendency to feel good about themselves*.
- This supports a positive self-concept, but also increases the risk of escalation of commitment.
- We continue to invest in a *failing project* because we overestimate the probability that we can rescue it.
- Often occurs together with self-justification, but self-enhancement is non-conscious.
- **Prospect Theory Effect:**
> Tendency to experience stronger negative emotions when losing something of value than positive emotions when gaining something of equal value.
- Also known as *loss aversion*.
- Stronger motivation to avoid losses than to risk receiving equally valuable gains.
- **Sunk Costs Effect:**
- People feel motivated to invest more resources in projects that have *high sunk costs* (value of resources already invested).
- This contrasts with rational choice, where investing resources should be determined by expected future gains, not the size of early investments.
- A variation is *time investment* or *closing costs*.
- Under some circumstances, adding more resources to a failing project may be beneficial.
- Many breakthroughs occur due to a decision maker's persistence and optimism.
- May be prudent if cost overruns are relatively small compared to the project cost, the benefits of success are high, and rewards are received quickly.
- **Evaluating Decision Outcomes with Less Bias:**
- Ensure that people who made the original decision are not the same people that later evaluate it.
- Establish a preset level at which a decision is abandoned or reevaluated.
- Seek factual and social feedback about the project.
- Focus more on future opportunities to grow the business instead of the negative consequences of project failure.
***
**6.4 - Creativity**
- **Creativity:**
> Development of original ideas that make a socially recognized contribution.
- Allows us to imagine opportunities that are not easily apparent.
- **Creative Process Model:**
![[A012 - Creative Process.png | 600]]
1. **Preparation:**
> Process of investigating the problem or opportunity.
- Developing a clear understanding of what we want to achieve.
- Studying information related to the topic.
- *Developing knowledge and skills about the topic*.
2. **Incubation:**
> Period of reflective thought.
- *Our mind works in the problem, on the background*.
- Maintain a low-level awareness by frequently revisiting the problem.
- **Divergent Thinking:** Re-framing a problem in a unique way and generating different approaches to it.
3. **Illumination:**
> Experience of suddenly becoming aware of a unique idea.
- Presents ideas that are usually vague, roughly drawn, and untested.
- Can be quickly lost if not documented.
4. **Verification:**
> Subject ideas to detailed experimentation and evaluation.
- Ideas evolve into finished products or services.
- **Characteristics of Creative People:**
- **Cognitive and Practical Intelligence:**
- Synthesize, analyze, and apply ideas.
- **Practical Intelligence:** Ability to evaluate potential usefulness of their ideas.
- **Persistence:**
- Based on a high need for achievement.
- Strong task motivation.
- Moderate or high self-esteem and optimism.
- **Knowledge and Experience:**
- Foundation of knowledge and experience.
- *Double-Edged Sword*:
- As individuals acquire more knowledge, their mental models tend to become more rigid.
- They are less adaptable to new information.
- Reduces the tendency to question *why things happen*.
- **Independent Imagination:**
- High openness to experience.
- Low need for affiliation.
- Strong self-direction and stimulation.
- **Organizational Conditions that Support Creativity:**
- **Learning Orientation:**
> Set of collective beliefs and norms that encourage people to question past practices, learn new ideas, experiment putting ideas into practice, and view mistakes as part of the learning process.
- Task significance and autonomy contribute to creativity.
- People are more creative when they believe their work improves the organization.
- People are more creative when they have freedom to pursue novel ideas without bureaucratic delays.
- Creativity blossoms through open communication and sufficient resources, as well as job security.
- Nontraditional workspaces support creativity.
- Creativity improves with support from leaders and coworkers.
- **Activities that Encourage Creativity:**
- **Redefine the Problem:**
- Revisit projects that have been set aside, so that they can be seen in new ways.
- Ask coworkers unfamiliar with the issue to explore the problem.
- Form new perspectives.
- **Associative Play:**
- Playing games or being challenged in unusual ways.
- Engage in playful activities with unusual twists to traditional rules.
- Challenge participants to create something new with a specific purpose using existing unrelated products.
- Morphological Analysis -> Systematically investigating all combinations or characteristics of a product and looking at the feasibility of each.
- **Cross-Pollination:**
- When people of different areas exchange ideas or when new people are brought into an existing team.
- *Creativity rarely occurs alone*.
- **Design Thinking:**
> Human-centered, solution-focused creative process that applies intuition and analytical thinking to clarify problems and generate solutions.
- **Four Rules of Design Thinking:**
- **Human Rule:** Need for collaboration and empathy with stakeholders.
- **Ambiguity Rule:** Continually question possible solutions and avoid defining the problem too early.
- **Re-Design Rule:** Understand and learn from past solutions and notice trends that may guide future steps.
- **Tangible Rule:** Spend more time trying *low-cost prototypes* rather than analyzing ideas at a conceptual level.
***
**6.5 - Employee Involvement in Decision Making**
- **Employee Involvement:**
> Situations in which employees participate and influence decisions about their organizations.
- *Employees actually influence decisions, to some degree*.
- *Low Level of Involvement* -> Employees are individually asked for information, but the problem is not described to them.
- *High Level of Involvement* -> The problem is described and employees are asked for information, as well as giving them responsibility for developing recommendations.
- *Highest Level of Involvement* -> The entire decision-making process is handed over to employees.
- **Benefits of Employee Involvement:**
- Employee involvement potentially improves organizational decision making.
- Improves identification of problems and opportunities.
- Can improve the number and quality of solutions generated.
- Under specific conditions, it improves the evaluation of alternatives.
- Strengthens employee commitment to the decision.
- *They feel personally responsible for its success*.
- Has positive effects on motivation, satisfaction, and turnover.
- **Contingencies of Employee Involvement:**
- *The optimal level of employee involvement depends on the situation*.
- **Decision Structure:**
- Programmed decisions are less likely to need employee involvement because they already worked out from past incidents.
- **Source of Decision Knowledge:**
- Subordinates should be involved in decision making when the leader lacks sufficient knowledge.
- **Decision Commitment:**
- Participation tends to improve employee commitment to the decision.
- **Risk of Conflict:**
- If employee goals conflict with organization goals, only a low level of involvement is advisable.
- If conflict is likely to occur, high involvement is difficult to achieve.

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> ### 007 - Conflict and Negotiation in the Workplace
> Class Notes - September 28, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**7.0 - Video Lecture Notes**
- **Philosophical Approaches to Negotiation:**
- **Distributive Negotiation (Bargaining):**
- *Zero-sum gain* - *Every dollar I get is a dollar you do not get*.
- *Fixed pie*.
- Examples:
- Buying a car.
- **Integrative Negotiation (Negotiation):**
- Potential to find a win-win situation.
- **Conflict Handling Slides:**
- **Accommodating (Yielding):**
- Seeing the other group get what they came for and sacrificing your own goals.
- **Collaborating (Problem-Solving):**
- High concern for both your party and the other party.
- *Win-win space*.
- People with high agreeableness and need of association.
- **Avoiding:**
- Not dealing with conflict at all.
- **Competing (Forcing)**
- Getting what you came for and not caring about the other.
- More distributive.
- People with low agreeableness and need of association.
- **Compromising:**
- Willing to pull a *little piece of everything*.
- Being high in most of these means you have *multiple tools in your toolkit*.
- The highest one is the *default style*.
- We can apply different styles in different situations.
- Can also depend on your mood.
- It is helpful to know your default style.
- We can adjust appropriately in each situation.
- Can also help us to spot these styles in other people to help us understand and respond.
- Helps us understand power dynamics.
- Be aware of your perceptions and attributions.
- They drive your behavior in situations of conflict.
- We do not know everything in a situation.
- Tendency towards satisficing.
- Be aware of anchoring/adjustment effects.
- When someone throws a number at the beginning, it anchors the rest of the negotiation (we oscillate between it).
- It can be beneficial to be the one who set sit (if we know) or, if we do not know, the other person.
- Be aware of escalations of commitment.
- We invest time and energy, and we do not want to walk away without an agreement.
- Be aware of cultural differences.
- Conflict is differently handled across cultures.
- Research the cultural norms and be transparent.
- **When Negotiating:**
- **Determine the purpose of the negotiation:**
- What do we want to accomplish?
- What does the other person want to accomplish and what motivates them?
- Helps us plan our strategy.
- **Figure out what is actually negotiable:**
- Is it just the price or are there other elements?
- One example is a job offer.
- Which do we care more (or less) about?
- What are we willing *to give up*?
- **What are your goals for the negotiation?**
- What is your BATNA (Best Alternative to Negotiated Agreement)?
- *If we do not do this, what is our next best option*.
- Helps remind us that we can always walk away, and how will it look.
- Defines what is our baseline (or ceiling).
- Sets limits in what we are willing to accept.
- Research what are your other options.
- **Zone of Possible Agreement (ZOPA):**
- If we know our BATNA and their BATNA we can define a ZOPA.
- <u>Overlap of what we find acceptable and what the others find acceptable</u>.
- Defines *where we are negotiating*.
- The overlap needs to be positive in order for this to be a rational negotiation.
- **Irrational Negotiations:**
- *People tend to make mediocre decisions when negotiating*.
- They do not necessarily meet their goals.
- Often, people have aversion to risk.
- Escalation of commitment dias.
- We want to leave with an agreement, even if we have to give *a little more that what I'm comfortable with*.
- Relationship considerations.
- We want to *come off well* and not unreasonably demanding.
- Emotional appeals.
- Lack of preparation or analysis.
- <u>Reaching an agreement does not always mean you achieved your stated goals</u>.
- Simply means that the negotiation is over.
- **Negotiating your own Job Offer:**
- Future jobs often ask for your previous salary.
- They will be based in this value (sets the anchor point).
- Studies show that those who negotiate their own salary get an average salary increase of about $5,000.
- You have the most leverage at the very beginning (during the hiring job negotiation stage).
- Figure out what is most important to you.
- Outline your reasoning for these things.
- Helps you defend for why you are asking these things.
- Gather as most information as possible.
- Go as an informed individual.
- Decide on how you are going to negotiate.
- Can be done via email.
- Creates a *paper trail*.
- **Common Mistakes:**
- Not negotiating.
- Revealing too much about what you are willing to accept.
- Starting to negotiate prior to preparing a counter offer.
- Do not negotiate until you have prepared this.
- Inadequate research.
- Negotiate as a package rather than each individual thing.
- Ask for a final agreement in writing.
- Make sure that there is an agreement.
- Creates a paper trail.
- **What is there to negotiate (as a package)?**
- Base Salary
- Bonuses
- Variable Pay
- Company Stock
- Benefits:
- Health and Life Insurance
- Retirement Contributions
- Location
- Relocation Assistance Package
- Vacation Time
- Personal Days
- Training or Education
- Start Date
- Travel Assignments
- Job Title
- Work from Home Arrangement
- Mentor
- Finding a way to justify what you want helps.
- Increases the odds for compliance.
- Mitigates the risk that someone will think you are inappropriate.
- Offer a rationale.
- Recognize that you do not have a lot of power initially.
- Create a strategy.
- Prepare a reasonable counter offer.
- Provide justifications with standards.
- Provide research you found.
- First response should not be a counteroffer.
- Should be around *What kind of this... Does this...*
- Getting more information.
- Once they respond to your questions do a counteroffer.
- Better in email.
- **Takeaways:*
- Multiple conflict-handling styles.
- We are predisposed to some of them more than others.
- They are a toolkit.
- Most people can adapt.
- There is a difference between integrative and distributive approach.
- Sets a tone and determines conflict-handling style.
- Determines how we make decisions.
- Always negotiate a job offer.
- What you were paid on your last job sets the base point moving forward.
- Be thoughtful about what you want.
- There is more on the table than just salary.
- Be strategic, thoughtful, and polite.
***
**7.1 - Meaning and Consequences of Conflict**
- **Conflict:**
> Process in which one party perceives that its interests are being opposed or affected by another party.
- Based on perceptions, when one party *believes* that another may obstruct its efforts.
- **Interpersonal Conflict:** Conflict that occurs when our behavior conflicts with our beliefs and values.
- **Conflict-Is-Bad Perspective:**
- The dominant view is that *conflict is dysfunctional*.
- Organizations work better through harmonious relations.
- This view is now considered *too simplistic*.
- Conflict potentially threatens personal needs and self-concept.
- This reduces job satisfaction and increases stress and turnover.
- Also, it undermines job performance, as it consumes otherwise productive time.
- Conflict can undermine information sharing.
- Employees will be less motivated to ask and transmit information with *discordant* coworkers.
- **Benefits of Conflict (Optimal Conflict Perspective):**
- Potentially improves decision making by energizing individuals to debate issues and evaluate alternatives.
- Motivates creative thinking to discover novel solutions to disagreements.
- Maintains vigilance with the external environment.
- Employees engage in active thinking and ongoing questioning about the organization.
- People tend to be more motivated to work together when faced with an external threat.
- Strengthens cohesion within the team.
***
**7.2 - Task and Relationship Conflict**
- **Types of Conflict:**
- **Task Conflict:**
> Type of conflict in which people focus their discussion around the issue (*task*) in which different views occur, while showing respect for people involved.
- Also called **constructive conflict**.
- *Keeps the spotlight on the qualities of the ideas presented*.
- Individuals examine ideas in terms of accuracy, logic, and reasonable inferences.
- <u>Tends to produce beneficial outcomes</u>.
- Better decision making.
- *Almost all workplace conflicts can be framed as task conflicts*.
- **Relationship Conflict:**
> Type of conflict in which people focus their discussion on qualities of the people in dispute, rather than on the qualities of the ideas presented.
- *One party attacks another by questioning the competence of those opponents*.
- Attempts to dismiss ideas by arguing that they were proposed by people who lack virtuous characteristics.
- Occurs indirectly when people rely on status or experience to defend their position.
- <u>It is dysfunctional, as it threatens the other party's self-esteem</u>.
- Triggers defensive mechanisms.
- Reduces mutual trust by emphasizing interpersonal differences.
- Adversaries become less motivated to communicate and share information.
- **Minimizing Relationship Conflict:**
- **Emotional Intelligence:**
- <u>Relationship conflict is less likely to occur when team members have high emotional intelligence</u> and related attributes (emotional stability, self-control).
- Understand and regulate emotions during debate.
- View a coworker's emotional reaction as valuable information rather than as a personal attack.
- **Team Development:**
- <u>As teams develop, members become better at understanding and anticipating one another, reducing the risk that actions are misinterpreted as conflict triggers</u>.
- Produces higher team cohesion, so members are motivated to minimize relationship conflict, as it threatens stability.
- **Norms Supporting Psychological Safety:**
- **Psychological Safety:** Shared belief that it is safe to engage in interpersonal risk-taking.
- Employees are confident that presenting unusual ideas, constructively disagreeing, or experimenting with new behaviors will not cause coworkers to threaten them.
- Organizational norms that encourage employees to respect and value one another.
- <u>Display positive emotions and nonthreatening behavior when discussing different points of view</u>.
***
**3.3 - Conflict Process Model**
- **Model of the Conflict Process:**
![[A013 - Conflict Process Model.png | 650]]
1. **Sources of Conflict:**
- Lead one or both parties to perceive that conflict exists.
- Becoming aware that a party's statements or actions interfere with their own goals or beliefs.
2. **Conflict Perceptions and Emotions:**
- Usually, these perceptions produce negative emotions (stress, anxiety, fear, frustration, anger).
- Some people experience positive emotions.
- *Cognitive reappraisal of the conflict*.
- Perceiving the situation as a positive challenge.
- Relief that concerns about a possible conflict can now be addressed.
3. **Manifest Conflict:**
- **Conflict Episodes:** Represent each party's decisions and behaviors toward the other.
- Influenced by how the other party perceives and reacts emotionally to them.
- Also revealed by the style each style prefers to resolve the conflict.
- **Sources of Conflict in Organizations:**
- **Incompatible Goals:**
> Occurs when the goals of one department seem to interfere with another department's goals.
- Organizations divide work among departments and teams, who divide it further among individuals.
- Each division has associated goals.
- <u>Employees and departments have different (sometimes conflicting) work objectives</u>.
- **Differentiation:**
> Differences among work units regarding beliefs, values, experiences, and preferences.
- *Two departments may agree on a common goal, but have different beliefs about how to achieve it*.
- Generational diversity produces conflict.
- Broad age groups tend to have different needs, expectations, and behaviors.
- Occurs due to unique technological advances, economic conditions, and other *social forces*.
- We also have different needs and priorities at each stage of our career and life.
- Also exists during mergers or acquisitions.
- People fight over the *right way* to do things.
- **Interdependence:**
> When employees must share resources or coordinate work activities to perform their jobs.
- All conflict in the workplace is caused (to some extent) by *task interdependence*.
- Conflict is not possible if two work units do not have any involvement or resource sharing.
- Probability and intensity increases with the level of interdependence.
- Higher in *sequential interdependence work relationships* (like an assembly line).
- Highest in *reciprocal interdependence situations*, where employees quickly and significantly affect each other.
- Usually lowest when working with others in a *pooled interdependence relationship* (sharing a common resource).
- **Scarce Resources:**
> When a department requiring a resource necessarily interferes with others who also need that resource to fulfill their goals.
- Budget deliberations produce conflict, as there is not enough cash flow to satisfy funding aspirations of each unit.
- **Ambiguous Rules:**
> When rules are ambiguous, inconsistently enforced, or completely missing.
- Increases the risk that one party will interfere with another party's goals.
- Encourages political tactics.
- When clear rules exist, employees know what to expect from one another and usually abide by those rules.
- **Communication Problems:**
> Dysfunctional communication that occurs when employees lack the ability or motivation to state their disagreement in a diplomatic manner.
- Employees tend to use emotional language and aggressive nonverbal behavior (influenced by their strong feelings).
- The stronger the language, the stronger the perception that conflict not only exists, but is a high risk threat.
- Receivers usually have a similar response, which escalates the conflict.
- This fuels relationship conflict.
- Lack of communication amplifies the conflict.
- Employees may not have the opportunity to discuss their differences.
- Parties actively avoid each other if relationship is very uncomfortable.
- Each side increasingly relies on distorted images and stereotypes of the other party.
***
**7.4 - Interpersonal Conflict-Handling Styles**
- **Conflict-Handling Styles:**
![[A014 - Conflict Handling Styles.png | 500]]
- **Problem-Solving:**
> Attempts to find a solution that is beneficial for both parties.
- Known as the **win-win orientation**, where resources at stake are *expandable* rather than fixed if the parties work together.
- *Both parties collaborate to identify solutions that satisfy everyone involved*.
- **Forcing:**
> Try to win the conflict at the other's expense.
- Knows as the **win-lose orientation**, where people believe that the parties are drawing from a *fixed pie*, so the more one receives, the less others receive.
- Relies on influence tactics to get one's own way.
- Does not necessarily involve aggressiveness or bullying.
- Includes moderate degrees of assertiveness.
- **Avoiding:**
> Try to *smooth over* or evade conflict situations altogether.
- For example, *steer clear of coworkers associated with the conflict*, or *minimize discussion of the topic*.
- **Yielding:**
> *Giving in* completely to the other side's wishes, or giving little to no attention to your own interests.
- *Offering help with no expectation that the other party needs to reciprocate*.
- **Compromising:**
> Actively seeking a middle ground between the interests of two parties.
- Involves calculating losses from concessions with equally valued gains.
> [!INFO] The best conflict-handling style depends on the situation.
- **Problem Solving:**
- **Advantages:**
- Offers the best chance for conflicting parties to reach a solution closest to their needs and goals.
- Tends to improve long-term relationships, reduce stress, and minimize defensiveness.
- **Disadvantages:**
- If a conflict is simple and perfectly opposing, *problem solving* will waste time and increase frustration.
- Takes more time and a high degree of trust.
- Risk that the other party will take advantage of the information shared.
- **Forcing Style:**
- **Advantages:**
- Appropriate when a dispute requires a quick solution, or when one's ideas have a stronger logical or moral foundation.
- Preferred when the other party would take advantage of a more cooperative style.
- **Disadvantages:**
- Tends to generate relationship conflict more quickly or intensely.
- **Avoiding:**
- **Advantages:**
- Can be the best *short-term* strategy when a conflict becomes emotionally charged.
- **Disadvantages:**
- Often ineffective, as it produces uncertainty and frustration rather than resolution.
- **Yielding:**
- **Advantages:**
- Appropriate when the other party has more power or the issue is not as important to you.
- **Disadvantages:**
- May give the other party an unrealistically high expectation and motivate them to seek more from you.
- May produce more conflict on the long run.
- **Compromising:**
- **Advantages:**
- Best when the conflict is simple and perfectly opposing.
- Necessary when parties lack time, trust, and openness.
- Popular when parties prioritize harmony over personal gains.
- Prevents one party from gaining advantage over another, when both parties have approximately equal power.
- **Disadvantages:**
- Settles for a sub-optimal solution.
- Employees are *less happy* with compromise agreements.
- Preferred conflict-handling styles vary across cultures.
- Cultural values and norms are the main influence.
- *High collectivist cultures* are motivated to maintain harmonious relations.
- They are more likely to manage conflicts by avoidance or problem solving.
- Men are more likely than women to use the forcing style.
- Women are more likely than men to use the avoiding style.
- They are also slightly more likely to use problem solving, compromising, and yielding than men.
***
**7.5 - Structural Approaches to Conflict Management**
- Conflict management involves altering the underlying structural causes of potential conflict.
- **Structural Approaches to Minimize Conflict:**
- **Emphasize Superordinate Goals:**
- Increase the parties' commitment to superordinate goals and decrease importance of conflicting subordinate goals.
- **Superordinate Goals:** Goals that conflicting departments value and whose attainment requires joint resources.
- These goals are *higher-order aspirations* rather than work unit goals or individual objectives.
- Effective teams frame decisions as superordinate goals that rise above each department's goals.
- Effective leaders reduce conflict through a vision that unifies employees.
- This makes them less preoccupied with their subordinate goal differences.
- **Reduce Differentiation:**
- Reducing differentiation reduces dysfunctional conflict.
- As employees develop and recognize more similarities than differences with coworkers in other departments, they increase their trust.
- They will be more willing to resolve disputes through constructive discussion.
- **Strategies:**
- Have meaningful interaction between employees of different groups.
- Rotate staff to different departments or regions throughout their career.
- Build and maintain a string organizational culture.
- **Improve Communication and Mutual Understanding:**
- Give conflicting parties more opportunities to communicate and understand each other.
- This creates better awareness of and respect for one another.
- Should only be applied to groups with moderate or low differentiation.
- People in some cultures may feel uncomfortable with resolving differences through direct and open dialogue.
- **Strategies:**
- Change physical or reporting arrangements so employees have more opportunities to interact with one another.
- Disclose information about oneself and self-perceptions, as well as feedback to others about how they are perceived.
- *Intergroup Mirroring* -> Conflicting groups document their perceptions and discusses them with the other group.
1. How the group perceives itself.
2. How it perceives the other group.
3. How the group believes it is perceived by the other group.
- **Reduce Interdependence:**
- Minimizing the level of interdependence among parties reduces dysfunctional conflict.
- **Strategies:**
- **Create Buffers:**
- Mechanisms that loosen the coupling between two or more units.
- Reduces the effect of one party on the other.
- **Use Integrators:**
- Employees who coordinate activities of multiple work units.
- Reduces the amount of direct interaction required between units.
- Integrators rarely have authority over the departments, so they must rely on referent power and persuasion.
- **Combine Jobs:**
- Form of job enrichment to reduce task interdependence.
- Employees will have a pooled form of task interdependence.
- Likelihood of conflict is reduced.
- **Increase Resources:**
- Increasing resources reduces sources of conflicts.
- Not feasible due to costs involved.
- **Clarify Rules and Procedures:**
- Establishing clear rules and procedures.
- **Third-Party Conflict Resolution:**
> Any attempt by a *relatively neutral person* to help conflicting parties resolve their differences.
- **Main Dispute Resolution Activities:**
- **Arbitration:**
- Arbitrators have high control over final decisions, but low control over the process.
- Used by executives, who follow previously agreed rules, listen to arguments, and make a binding decision.
- **Inquisition:**
- Inquisitors control all discussion about the conflict.
- Has high decision control, as it chooses the form of conflict resolution.
- Has high process control, as inquisitors choose which information to examine and how to examine.
- **Mediation:**
- Mediators have high control over the intervention process.
- Manage the process and context of interaction.
- Conflicting parties make the final decision about how to resolve their differences.
- Managers usually adopt an *inquisitional approach*.
- They dominate the process and make a binding decision.
- Gives them control over the process and outcome.
- Resolves disputes efficiently.
- Inquisition is the least effective method in organizational settings.
- Leaders tend to collect limited information about the problem.
- Decisions may produce an ineffective solution.
- Employees view such process as unfair because they have little control.
- For everyday disagreements, mediation is the best approach.
- Gives workers more responsibility for solving their disputes.
- Third-party only establishes an appropriate context.
- Offers the highest level of employee satisfaction.
- Arbitration is used when mediation cannot resolve differences.
- Predetermined rules create a higher sense of procedural justice.
- Preferred when organization's goals should take priority over individual goals.
***
**7.6 - Resolving Conflict Through Negotiation**
- **Negotiation:**
> Process in which interdependent parties with divergent goals attempt to reach agreements on issues that mutually affect them.
- People negotiate when they need to work together, need to reach a consensus on decisions, and initially do not have identical preferences.
- Negotiation skills help achieve goals, reduce conflict, and built collaborative relationships.
- **Distributive Approach:**
> The negotiator believes that those involved in the conflict must distribute portions from a fixed pie.
- It is a **win-lose** orientation.
- More common when there is only one item to resolve.
- **Integrative (Mutual Gains) Approach:**
> The negotiator believes the resources at stake are expandable rather than fixed, if parties work together to find a solution.
- It is a **win-win** orientation.
- More common when multiple issues are open for discussion.
- More opportunity for mutual gains.
- Each issue has different value to each party.
- **Preparing to Negotiate:**
- **Develop Goals and Understand Needs:**
- *Goals* about what you want to achieve from the exchange.
- *Needs* that you are trying to fulfill from the goals.
- Specific needs can be satisfied by different goals.
- Effective negotiators try to understand their own needs and avoid becoming locked into fixed goals.
- Anticipate the other party's goals and their underlying needs.
- **Bargain Zone Model of Negotiations:**
- **Initial Offer Point:**
- *Each party's opening offer to the other side*.
- Must be carefully considered, it can influence the outcome.
- A high initial offer can keep the outcome closer to your target point.
- If the offer is set to high, it can break off negotiations or damage trust.
- **Target Point:**
- Realistic goal or expectation for a final agreement.
- Consider alternative strategies to reach the objectives.
- Setting high, specific target points results in better outcomes.
- **Resistance Point:**
- Point beyond which you will make no further concessions, and instead, walk away from the negotiations.
- Determined by comparison of how goals and needs may be achieved by other means.
- **Best Alternative to a Negotiated Agreement (BATNA):**
- Represents the estimated cost of walking away from the negotiation.
- If people outside of the current negotiation are willing to negotiate and provide a reasonable agreement, you have a high BATNA (low cost to walk away from the current negotiation).
- People tend to overestimate their BATNA.
- Wrong belief that there are plenty of other ways to achieve their objective.
- **Negotiation Process:**
- **Gather Information:**
- Helps discover the other party's needs hidden behind their offers and goals.
- Can reveal the other party's resistance point.
- Can potentially transform distributive negotiations into integrative ones by discovering multiple dimensions not previously considered.
- <u>More important in integrative negotiations, as parties require knowledge of each other's needs to discover solutions that maximize benefit for both</u>.
- One effective strategy is **mirroring**, where you repeat back as a question the last few words of what the other person says.
- Inexperienced negotiators mainly talk about their arguments and justifications.
- Skilled negotiators spend most of the time listening to the other party and asking for details.
- **Manage Concessions:**
- **Concession:**
> One party's revision of a negotiating position so it comes closer to the other party's current position.
- Successful negotiators make fewer concessions, and each of these is smaller than average.
- Concessions signal to the other party the importance of each issue.
- They symbolize each party's motivation to bargain in good faith.
- Each party reciprocates when the other makes a concession.
- Need to be clearly labeled.
- Should be offered in installments.
- **Manage Time:**
- Negotiators make more concessions as the deadline gets closer.
- This can be a liability if you are under time pressure.
- Can also be an advantage if the other party is under time pressure.
- Negotiators with more power sometimes apply time pressure through an *exploding offer*, giving the opponent a very short time to accept it.
- Frequently found in customer sales and some job offers.
- **Building the Relationship:**
- Building and maintaining trust is important for keeping the parties focused on the issue rather than personalities.
- It also motivates information sharing.
- Can be done by discovering common backgrounds and interests with the other party.
- Trust is higher when team members closely match the backgrounds of the other party.
- First impressions are important, as people form beliefs and emotions in a fraction of a second.
- **Negotiation Setting:**
- <u>The effectiveness of negotiating can depends on the environment in which the negotiations occur</u>.
- It is easier to negotiate on your own place.
- You are familiar with the environment.
- No need to cope with travel stress or depend on others for resources.
- Many negotiators agree to neutral territory.
- Most negotiators have audiences.
- Negotiators tend to act differently when an audience observes the negotiation.
- They tend to be more competitive, less willing to make concessions, and more likely to engage in assertive tactics.
- *Show that the negotiator is working for the benefits of the audience*.

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> ### 008 - Team Dynamics
> Class Notes - October 15, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**8.0 - Video Lecture Notes**
- Teams and groups are different.
- **Group:**
- Two or more people doing something.
- Not necessarily interdependent.
- **Team:**
- Has a common goal.
- They exist to fill a common purpose.
- It is interdependent, there has to be collaboration.
- Regular interaction.
- Members need to influence each other (social influence or norms).
- People need to perceive the group as a team.
- **Five Stage Model of Group Development (Tuckman's Group Development Model):**
- **Forming:**
- Acknowledge that you have a common task.
- **Storming:**
- *Feel each other out*.
- Figure out power dynamics, experiences, and interactions.
- How to interact and handle conflict.
- Can be *uncomfortable*, as people do not know how to react.
- Figuring out your role and the norms of the group.
- **Norming:**
- Figuring out social norms on how members will do their work.
- **Performing**
- Do the task.
- **Adjourn**
- Disband team.
- Adding new people to an existing team may cause to return to the storming stage.
- Addition of new embers changes the group norms.
- A group will not develop strong norms, but a team will.
- Team members need to influence each other.
- Differentiation happens in the norming phase.
- **Advantages of Teams:**
- Motivation
- Socially obligated towards people.
- People are observed and tend to perform better.
- There is a high potential for effective problem solving.
- More perspectives and knowledge.
- Challenging assumptions or bring novel information.
- Especially needed when looking for creative solutions.
- **Disadvantages of Teams:**
- Potential for social conflict.
- Slower than individual work.
- *Convincing other people*.
- Social Loafing - *Freeloader* people who rely on the effort of the rest of the group rather than their own work.
- Groupthink - No diversity of perspective.
- Everyone is focused on getting along so no one challenges assumptions or suggesting contrary viewpoints.
- **Process Losses:**
> Occur when resources are spent on something other than the task itself, like team dependence or maintenance.
- Sometimes they can be functional.
- In the forming stage.
- Helps develop a shared sense of understanding and social cohesion.
- Often, they are not functional.
- All biases and heuristics are still present in group and team decision-making.
- In groups, there is the potential for another member to catch it.
- More perspectives mean more potential to deal with less rational elements.
- Social pressures may still drive teams to these less rational elements.
- All teams are groups, but not all groups are teams.
- Teams naturally go through conflict and disagreement.
- How we handle the conflict in he storming stage determines effectiveness.
- Process losses occur in any group.
- Some serve a purpose.
- Some are counterproductive.
- Do not contribute to the functioning of the group.
- Maximize process gains.
***
**8.1 - Teams and Informal Groups**
- **Teams:**
> Groups of two or more people that:
> - Interact and influence each other.
> - Are mutually accountable for achieving common goals.
> - Perceive themselves as a social entity.
- <u>All teams exist to fulfill some purpose</u>.
- Teams are held together by their interdependence and need for collaboration.
- All teams require some form of communication to coordinate, share information, and develop a common mindset.
- Team members can influence each other.
- Some members may be more influential than others.
- Teams *feel connected* through a common interest or purpose.
- **Characteristics of a Team:**
- **Team Permanence:**
- *How long does a type of team usually exist*.
- **Skill Diversity:**
- High skill diversity means team members posses different skills and knowledge.
- Low skill diversity means members have similar abilities and are interchangeable.
- **Authority Dispersion:**
- The degree that decision-making responsibility is distributed throughout the team (high dispersion) or vested in one or few members (low dispersion).
- **Informal Groups:**
> People assembled together, whether or not they have any interdependence or organizational objective.
- They exist primarily for the benefit of their members.
- <u>All teams are groups, but many do not satisfy the definition of teams</u>.
- **Reasons for Informal Groups:**
- Human beings are social animals.
- Social Identity Theory -> Individuals define themselves by their group affiliations.
- To accomplish personal objectives that cannot be achieved alone.
- We are comforted by the mere presence of other people.
- Informal groups potentially minimize employee stress.
- They provide emotional and informational support.
- This improves employee well-being and increases organizational effectiveness.
- **Social Networks:**
> Social structures of individuals that are connected to each other through some form of interdependence.
- Employees with a strong informal network have more power and influence.
- They receive better information and preferential treatment from others.
***
**8.2 - Benefits and Limitations of Teams**
- **Benefits of Teams:**
- Teams make better decisions, develop better products, and create a more engaged workforce.
- Teams can quickly share information and coordinate tasks.
- They provide better customer service as they offer a greater breadth of knowledge.
- Members are more motivated than when working alone.
- **Motivation Forces of Teams:**
1. Employees have a **drive to bond** and are motivated to fulfill the goals of groups to which they belong.
2. Employees have a **high accountability** to other team members.
3. Each team member creates a **moving performance standard** for the others.
- **Disadvantages of Teams:**
- **Process Losses:**
> Resources (including time and energy) spent toward team development and maintenance rather than the task.
- Teams need time and effort to:
- Develop mutual goal understanding.
- Determine the best strategy to accomplish goals.
- Negotiate specific team roles.
- Agree on informal rules of conduct.
- Resolve disagreements.
- Process losses can make a team less effective than an individual working alone.
- They usually increase with team diversity and size.
- Diverse teams have a range of beliefs and values that slow development.
- Conflicts take longer to resolve.
- Larger teams have higher process losses as working with many people is more difficult.
- More time is required for each member to be involved.
- Process losses are amplified when adding new members to an existing team.
- New team members take time and effort to figure out how to work well with others.
- **Brook's Law:**
> Adding more people to a late software project only makes it later.
- **Social Loafing:**
> Problem that occurs when people exert less effort when working in teams than when working alone.
- More likely to occur when individual performance is hidden or difficult to distinguish.
- Less visible in large teams.
- Hidden when the team produces a single output rather than separate outputs for each member.
- More common when the work is boring or there is low task significance.
- More prevalent among team members with low conscientiousness and low agreeableness.
- More widespread when employees are not motivated to help the team achieve its goals.
- Members have low social identity.
- *Social loafers provide only as much effort as they believe others will provide*. (Maintaining Equity)
- Employees believe they have little control over the team's success.
***
**8.3 - Model of Team Effectiveness**
- **Team Effectiveness:**
- <u>A team is effective when it benefits the organization and its members, and survives long enough to accomplish its mandate</u>.
- Teams exist to fulfill a purpose, so effectiveness is measured by achieving that objective.
- A team's effectiveness also relies on the satisfaction and well-being of its members.
- People join groups to fulfill their personal needs.
- Team effectiveness includes the ability and motivation of its members to remain together *long enough* to accomplish the assigned goals.
- **Team Effectiveness Model:**
![[A015 - Team Effectiveness Model.png | 600]]
- **Organizational and Team Environment:**
> Represents all conditions surrounding the team that influence its effectiveness.
- Teams thrive when:
- The physical workspace encourages collaborative interaction.
- Information systems support team coordination.
- Leaders instill a culture of teamwork.
- Reward system reinforces collaboration rather than competition.
- Team effectiveness benefits from an organizational structure that:
- Clusters activities within the team.
- Creates distinct boundaries between other work units.
- **Team Design:**
> Variables that are assigned to the team when it is created, and altered throughout its existence.
- **Task Characteristics:**
- Teams are more effective than individuals in specific types of tasks.
- Better for work that is too complex for an individual to perform.
- *Complex work requires skills and knowledge beyond a person's abilities*.
- Teams perform better when the work is **well structured** and **predictable**, rather than ambiguous and unpredictable.
- Low task variability.
- High task analyzability.
- Ambiguous and unpredictable tasks are more difficult to coordinate, leading to more process losses and errors.
- **Task Interdependence:**
> Extent to which team members must share materials, information, or expertise in order to perform their jobs.
- **Levels of Task Interdependence:**
![[A016 - Task Interdependence.png | 500]]
- **Pooled Interdependence:** When a work unit shares common (*pooled*) resources, but otherwise operates independently.
- **Sequential Interdependence** When the output of one work unit becomes the input for another unit.
- **Reciprocal Interdependence:** When work output is exchanged back and forth among work units.
- <u>The higher the level of task interdependence, the greater the need to organize people into teams</u>.
- This is because it requires more intense coordination.
- Teams enable better interpersonal communication than working independently.
- <u>Employees should be formed into teams only when they have the same task goals</u>.
- If not, it may lead to dysfunctional conflict.
- **Team Size:**
> Teams need to be large enough to accomplish the assigned work, yet small enough to maintain efficient coordination and meaningful involvement of each member.
- Ideal team size varies with the type of team, the tasks to perform, and the available forms of coordination.
- *Smaller teams operate more effectively than larger teams*.
- Members also feel more engaged because they have more influence and feel more responsible.
- Members get to know one another better, improving trust.
- **Team Composition:**
- <u>Team effectiveness depends on the qualities of the members of the team</u>.
- Team performance depends on how well its members engage in **taskwork** (performing task-related behaviors).
- This requires having task motivation, required abilities, and clear role perceptions.
- Effective teams need members who engage in **teamwork** behaviors.
- **Most Frequent Teamwork Behaviors (Five Cs):**
![[A017 - Teamwork Behaviors.png | 400]]
- **Team Diversity:**
- **Advantages of Diverse Teams:**
- People from different backgrounds see a problem from different angles.
- Broader pool of technical abilities.
- Better representation of the team's constituents.
- **Disadvantages of Diverse Teams:**
- Employees with diverse backgrounds take longer to become a high-performing team.
- Slower team development process.
- **Faultlines:** *Hypothetical* dividing lines that may split a team into subgroups along gender, ethnic, professional, or other dimensions.
- Undermine effectiveness by reducing motivation to communicate with others on the other side of the divisions.
- Homogeneous teams tend to be more effective in tasks with a high degree of cooperation and coordination.
***
**8.4 - Team Processes**
- **Team Processes:**
> Cognitive and emotional dynamics of a team that continually change with its development.
- **Team Development:**
- Team members resolve several issues and pass through several stages of development before becoming an effective work unit.
- **Stages of Team Development:**
1. **Forming:**
- Period of testing and orientation.
- Team members learn about each other.
- Evaluation of benefits and costs of membership.
- People tend to be polite and defer to authority.
2. **Storming:**
- Interpersonal conflict occurs as members become more proactive and compete for team roles.
- Members try to establish norms of behavior and performance standards.
3. **Norming:**
- Team develops its first sense of cohesion.
- Roles are established.
- Consensus is formed around objectives and team-based mental models.
4. **Performing:**
- Team members have learned to efficiently coordinate and resolve conflicts.
- Members are highly cooperative and have a high level of trust among one another.
5. **Adjourning:**
- Occurs when the team is about to disband.
- Team members shift their attention away from task orientation to a relationship focus.
- **Team Norms:**
> Informal rules and shared expectations established to regulate member behavior.
- <u>Norms exist only for behaviors that are important to the team</u>.
- They are developed during the storming stage.
- Most norms develop when members associate behaviors with the team's performance or well-being.
- Some norms originate from a critical incident, others are brought due to past experiences.
- Norms develop because they improve predictability and conflict-avoidance in coworker relations.
- Team norms are enforced and directly reinforced through praise and easier access to valued resources.
- **Managing Team Norms:**
- Select team members whose values and past behavior are compatible with norms.
- Clearly state the norms to assigned people.
- Introduce desired norms through coaching of team members.
- Introduce team-based rewards that reinforce desired norms.
- **Team Roles:**
> Set of behaviors that people are expected to perform because they hold specific formal or informal positions in a team.
- Similar to norms, but roles apply to one or few specific team members.
- Some roles are formally assigned to individual members during team composition.
- Most teams have a leader to clarify responsibilities.
- Many roles are adopted informally during team development.
- These are shared and eventually associated with specific team members.
- Employees are attracted to roles that suit their personality and values.
- **Role Categories:**
- Organizer
- Doer
- Challenger
- Innovator
- Team Builder
- Connector
- Roles can be *taskwork roles* (task performance related) or *teamwork roles* (team maintenance related).
- **Team Cohesion:**
> Degree of attraction people feel toward the team and their motivation to remain members.
- High cohesion occurs when members:
- Are attracted to the team.
- Take ownership of team's success.
- Make the team part of their self-concept.
- Are committed to the team's goals.
- Fell a collective sense of team pride.
- **Influences on Team Cohesion:**
- **Member Similarity:**
- *We are attracted to coworkers who are similar to us*.
- We believe similar people are more trustworthy and will create fewer conflicts.
- Teams have a high cohesion when members are similar to each other.
- Takes longer in diverse teams.
- **Team Size:**
- Smaller teams have higher cohesion than larger teams.
- It is easier for a few people to agree and coordinate.
- Members have more influence in smaller teams.
- Small teams can lack cohesion if they lack enough qualified members.
- **Member Interaction:**
- Teams have more cohesion when members interact with each other regularly.
- Higher interaction occurs in highly interdependent tasks.
- **Somewhat Difficult Entry:**
- Teams have higher cohesion when entry to the team is restricted.
- The more prestige, the more members will value their membership.
- **Team Success:**
- Cohesion increases with success as people are attracted to groups that fulfill their goals.
- Individuals are more likely to identify with successful teams than with teams that fail.
- **External Competition and Challenges:**
- Teams have higher cohesion when they face external competition or a challenging objective.
- Employees value their membership because of its ability to overcome threats.
- Cohesion can dissipate if external challenges overwhelm and threaten the team.
- **Consequences of Team Cohesion:**
- Teams with higher cohesion tend to perform better than those with low cohesion.
- Motivates members to remain members.
- Helps the team achieve its objectives.
- Members of highly cohesive teams spend more time together and share information more frequently.
- Team cohesion has a lower effect on performance when there is low task interdependence.
- Effect of cohesion depends on whether the team's norms align with organizational objectives.
- **Team Trust:**
> Positive expectations one person has toward another person in situations involving risk.
- **Hierarchy of Trust:**
1. **Calculus-Based Trust:**
- Logical calculation that other team members will act appropriately because they face sanctions if they violate expectations.
2. **Knowledge-Based Trust:**
- Based on the predictability of another member's behavior.
- Includes confidence in another person's abilities.
3. **Identification-Based Trust:**
- Based on mutual understanding and an emotional bonding.
- Occurs when members think, feel, and act like one another.
- Exhibited by high-performance teams.
- **Dynamics of Team Trust:**
- Employees join a team with a moderate level of trust.
- **Swift Trust:**
- Having a high initial trust.
- Based on the belief that fellow team members are reasonably competent.
- Fragile, as it is based on assumptions rather than experience.
- Decreases over time.
- **Team Mental Models:**
> Knowledge structures that we develop to describe, explain, and predict the world around us.
- Cognitive images that team members form about a team's task, relationship dynamics, and knowledge.
- **Team Building:**
> Activities that attempt to speed up or improve the team development process.
- *Task-Focused interventions:*
- Clarify team's performance goals.
- Increase team motivation.
- Establish a mechanism for systematic feedback.
- *Problem-Solving Skills Intervention*
- *Clarification and Reconstruction of Role Expectations*
- *Helping team members improve interpersonal relations*.
- Goal setting is usually the most successful type of team building.
- <u>Interventions are more successful when they focus on one (rather than multiple) team objectives</u>.
> [!INFO]
> Many team-building activities *fall short* because they are often applied as a general solution without adequately diagnosing specific issues that need ot be addressed.
***
**8.5 - Self-Directed and Remote (Virtual) Teams**
- **Self-Directed Teams (SDTs):**
> Cross-functional work groups organized around work processes.
- <u>These teams complete an entire piece of work requiring multiple interdependence tasks</u>.
- Minimal interdependence with people outside of the team.
- <u>They have substantial autonomy over task execution</u>.
- No direct involvement of a supervisor.
- **Success Factors for SDTs:**
- They should be responsible for an entire work process.
- They should have sufficient autonomy.
- Work site and technology should support coordination and communication.
- **Remote (Virtual) Teams:**
> Team whose members operate across space, time, and organizational boundaries. They are linked through information technologies.
- Also known as **distributed teams**.
- One or more members work remotely.
- <u>Members depend on information technologies in addition to or instead of face-to-face interaction</u>.
- Team *remoteness* increases with geographic dispersion.
- Social distancing and self-isolation have made remote teams more common.
- Many employees perform knowledge work rather than physical work.
- This enables them to work from almost anywhere.
- Information technologies make it easy to communicate remotely.
- **Success Factors for Remote Teams:**
- Remote teams need to apply effective team behaviors.
- Good communication technology and self-leadership skills are required.
- Remote teams should have a toolkit of communication channels.
- Freedom to choose channels that work best for them.
- Clear organizational objectives, documented work processes, and agreed-on responsibilities.
- Members should meet face-to-face early in the team development process.
***
**8.6 - Team Decision Making**
- Teams can be more effective than individuals at identifying problems, choosing alternatives, and evaluating decisions.
- **Constraints on Team Decision Making:**
- **Time Constraints:**
- Teams take longer than individuals to make decisions.
- Time is consumed organizing, coordinating, and maintaining relationships, as well as in the team development process.
- **Production Blocking:**
> Time constraint due to the procedural requirement that only one person may speak at a time.
- Team members need to *monitor* the conversation, making it difficult to concentrate on their own ideas.
- The longer participants wait to speak, the more likely their ideas will die out.
- Team members may concentrate on their ideas and pay less attention to the conversation.
- **Evaluation Apprehension:**
> Occurs when individuals are reluctant to mention ideas that seem silly because they believe that other members are silently evaluating them.
- Based on the desire to create a favorable public image and the need to protect one's self'esteem.
- Common in meetings attended by people with different levels of status or expertise.
- **Pressure to Conform:**
- Team cohesion leads employees to conform to team norms.
- This can cause members to suppress dissenting opinions.
- When someone states a point of view that violates the majority opinion, other members might punish the violator or try to persuade him/her.
- *We depend on the opinions that others hold to validate our own views*.
- **Overconfidence (Inflated Team Efficacy):**
- **Team Efficacy:** Collective belief among team members in the team's capability to successfully complete a task.
- Teams make worse decisions when they are overconfident or under-confident.
- Overconfident teams are less vigilant and engage in less constructive debate.
- **Improving Decision Making and Creativity in Teams:**
- Checks and balances to prevent the leader from dominating the discussion.
- Teams should be large enough to possess collective knowledge needed to resolve the problem.
- Team members should be confident, but be wary about being overconfident.
- **Psychological Safety:**
> Shared belief that it is safe to engage in interpersonal risk-taking. This means that presenting unusual ideas, disagreeing with the majority, and experimenting will not result in coworkers posing a threat to their self-concept, status, or career.
- Requires team norms to encourage employees to respect and value one another.
- **Team Structures that Encourage Creativity:**
- **Brainstorming:**
- Encourages participants to think up many ideas for the objective of generating the most creative ideas.
- Consists of four rules:
1. Speak freely.
2. Do not criticize others.
3. Provide as many ideas as possible.
4. Build on the ideas that others have presented.
- Increases divergent thinking.
- Requires an experienced facilitator and confident employees.
- **Branwriting:**
- Variation of brainstorming that minimizes production blocking.
- Removes conversation during idea generation.
- Individuals write don their ideas rather than verbally describing them.
- Produces more and better quality ideas.
- **Electronic Brainstorming:**
- Uses digital networks to document and share ideas.
- Ideas are distributed anonymously to other participants, who are encouraged to *piggyback* on them.
- Team members vote electronically on the ideas presented.
- Seldom used because it is too structured and technology-bound.
- **Nominal Group Technique:**
- Participants write down as many solutions as they can, and then describe them to other team members.
- Participants silently rank or vote on each proposed solution.

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> ### 009 - Power and Influence in the Workspace
> Class Notes - October 19, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**9.0 - Video Lecture Notes**
- **Power:**
> Capacity for a person, team, or organization to influence others.
- *Ability to get people to do what you want them to do*.
- Can come from formal or informal sources.
- **French and Ravens Power Typology (1957):**
- *Why certain people have influence in certain cases*.
- Legitimate
- Reward
- Coercive
- Expert
- Referent
- **Formal Power:**
- **Legitimate Power:** Power because of your place in the hierarchy of an organization.
- **Reward Power:** Ability to give rewards.
- **Coercive Power:** Ability to give punishments.
- **Information Power:** Knowing certain pieces of information can give influence.
- Can go into the informal space by engaging in gossip.
- **Informal Power:**
- **Expert Power:** Power from knowing things that other people do not know.
- **Referent Power:** Extent to which people like and respect you.
- *Transient power* when referring to a third party.
- **Charismatic Power:** *Raw magnetism* to a person and the way they talk.
- **Countervailing Power:**
- Even when you do not have much formal or informal power in an exchange, often we have a certain power to keep them in the exchange relationship.
- Asymmetric, but not unidirectional.
- **Tactics for Increasing Individual Power:**
- **Substitutability (Monopoly):**
- To what extent can you gain a monopoly over a valued resource.
- *If you are the person who guards access to X, you can have a lot of influence in an organization*.
- **Centrality:**
- To what extent are you the central node in a system of relationships.
- Connecting people? Social glue? Can people function without you?
- **Visibility:**
- People need to *feel that you are present*.
- *Putting it an appearance in meetings*.
- Telecommuting can cause problems in this.
- People discount the value on what they do because they are not there.
- **Discretion, Autonomy, and Empowerment:**
- Are you just here to enforce someone's rule book?
- Do you get to make your own decisions?
- **Social Networks:**
- Can act as a conenctor between diffferent people.
- Think of social capital as an exhaustible people.
- Who you know and who you can introduce people to.
- If you constantly ask for favors or constantly introduce people, your quality relationship erodes and your social capital depletes.
- Recognize who has the power and what gives them that power.
- Be an essential conduit.
- People can only talk to each other through you.
- If you are the connector to an outside expert.
- Build coalitions and alliances with people with similar interests.
- Implicitly or explicitly influence others agenda.
- Monitor the impressions you give to people.
- Engage in impression management.
- **Code-Switching:** When you talk to one group of people, you speak in a different way than when you talk to another group of people.
- Make people more comfortable and make yourself more appealing, so you can have more influence
- Not just about language and vocabulary.
- Extend to which you seek to build consensus vs. be stand-offish.
- Develop a conscious understanding of our different *selves* and the unspoken social expectations.
- Helps figure out how to exert social pressure to get what you want.
- **Resource Dominance:**
- If you can develop a specialized knowledge that people want, they may come to you.
- For example, being *tech-savvy*.
- Sometimes, social ties can be a resource in and of themselves.
- Recognize when others have resource dominance.
- Someone we may want to ally with or that you will have to work hard to work around.
- Influence tactics are perceived as good if they help the organization achieve its goals.
- **Organizational Politics:**
- When influence tactics are perceived to be self-serving, or being done at the expense of coworkers or organizational goals.
- Things that influence politics:
- Scarce resources.
- Ambiguous or complex rules.
- When organizations are changing (shift in power and resources).
- Norms that reinforce politics.
- We typically posses formal power by being in the right place.
- Right position of authority or to resolve uncertainty.
- Informal power is something that can be built.
- There is nothing shameful in being aware and exercising your power.
- Every organization has social influence tactics.
- If you choose to not engage, then other people are influencing and you are not.
- Pay attention to your social capital and your social identities.
- Spend social capital wisely.
- Code switch as needed to adopt identities that suit the situation around you.
- Look for opportunities to make yourself important or irreplaceable if you want to increase your influence.
***
**9.1 - The Meaning of Power**
- **Power:**
> The capacity of a person, team, or organization to influence others.
- It is not the act of changing someone's attitude or behavior, but the **potential** to do so.
- Power is based on the target's **perception** that the power holder controls.
- Power involves an **asymmetric dependence** of one party on another party.
- **Countervailing Power:** Capacity of a person, team, or organization to keep a more powerful person or group in the exchange relationship.
- The less powerful party has some power to keep the more powerful party in the relationship.
- All power relationships depend on a minimum level of trust.
- *Level of expectation* that the more powerful party will deliver the resource.
- **Power in the Employee-Manager Relationship:**
- Managers typically have more power.
- Employees depend on bosses to support employment.
- Employees have weaker countervailing power.
- Managers depend on employees to complete their required tasks.
- **Sources and Contingencies of Power:**
![[A018 - Sources and Contingencies of Power.png | 500]]
- **Sources of Power in Organizations:**
- **Legitimate Power:**
> Agreement among organizational members that people in certain roles can request certain behaviors of others.
- Originates from formal job descriptions and informal rules of conduct.
- Most important source of power in organizations.
- **Zone of Indifference:** Limited domain of behaviors that the power holder has the right to ask.
- Highly trusted power holders have a large zone of indifference.
- People that value conformity and tradition give bosses a larger zone.
- Influenced by the organization's culture.
- Employees have legitimate power through legal and administrative rights.
- **Norm of Reciprocity:**
> Felt obligation and social expectation of helping someone who has already helped you.
- Form of legitimate power as an *informal rule*.
- **Information Control:**
- Those who need information are dependent on the *gatekeeper* to provide it.
- Information *gatekeepers* gain power by selectively distributing information.
- **Reward Power:**
> Power derived from a person's ability to control the allocation of rewards valued by others.
- Also related to the removal of negative sanctions.
- Managers have reward power over the distribution of organizational rewards.
- Employees have reward power through organizational citizenship behaviors.
- **Coercive Power:**
> The ability to apply punishment.
- Managers have considerable coercive power through disapproval or firing employees.
- Employees have coercive power through peer pressure.
- **Expert Power:**
> Capacity to influence others by possessing knowledge or skills valued by others.
- An important source is the ability to manage uncertainties.
- **Managing Uncertainties:**
- **Prevention:** *Preventing changes from occurring*.
- **Forecasting:** *Predict changes or variations*.
- **Absorption:** *Absorbing or neutralizing the impact of changes as they occur*.
- **Referent Power:**
> Capacity to influence others based on identification with and respect for the power holder.
- Largely a function of the person's interpersonal skills.
- **Charisma:**
> Set of self-presentation characteristics and behaviors that generate interpersonal attraction and referent power over others.
> [!INFO] Sources of Power
> - Legitimate, Reward, and Coercive Powers originate from the power holder's formal or informal position.
> - Expert and Referent Powers originate from the power holder's own characteristics.
- There is a human tendency to *mindlessly* follow the guidance of people who are charismatic or claim to have legitimate expert power.
***
**9.2 - Contingencies of Power**
- **Nonsubstitutability:**
> Individuals have more power when the resource they offer is nonsubstitutable.
- <u>Power decreases as the number of alternative sources of a resource increases</u>.
- This also includes substitutions of the resource itself.
- **Strategies to Increase Nonsubstitutability:**
- Control access to the resource.
- Employees are less substitutable when they operate special equipment or have knowledge that is undocumented.
- Differentiate the resource from the alternatives.
- Wrap skills and knowledge into a *package* so it looks like a service no one else can offer.
- Recommended for developing a *personal brand*, which should be authentic and unique.
- **Centrality:**
> The power holder's importance based on the degree and nature of interdependence with others.
- <u>Centrality increases with the number of people dependent on the power holder</u>.
- **Visibility:**
> Employees gain power then their talents remain in the minds of the people in the organization.
- <u>Power increases with visibility</u>.
- Can be increased by taking *people-oriented* jobs and projects that require frequent interactions with executives.
- **Discretion:**
> The freedom to exercise judgement.
- Making decisions without referring to a specific rule or receiving permission.
- Employees have more power when they are given more autonomy.
- **Consequences of Power:**
- **Empowerment:** When people believe they have power over themselves and freedom from being influenced by others.
- Tends to increase motivation, job satisfaction, organizational commitment, and job performance.
- Increases automatic thinking.
- Empowered people tend to rely more on stereotypes, have difficulty empathizing, and have less accurate perceptions.
- Having *power over others* produces a sense of responsibility for the people over whom the holder has authority.
- They tend to be more mindful and engage in less stereotyping.
***
**9.3 - Power of Social Networks**
- **Social Networks:**
> Social structures of individuals or social units that are connected to each other through one or more forms of interdependence.
- *Employees get ahead by locating themselves within social networks*.
- Networks form around common interests, common status, expertise, kinship, or physical proximity.
- They exist as a consequence of the *drive to bond*.
- **Guanxi:**
- Chinese term that refers to an individual's network of social connections.
- Being part of a network reinforces one's self-concept.
- Important for receiving favors and opportunities from others.
- It can undermine an organization's effectiveness.
- **Social Capital:**
> Knowledge, opportunities, and resources available to members of a social network, along with mutual support.
- <u>Social networks generate power through social capital</u>.
- Members in social networks are motivated to communicate, distribute, and provide resources to others in their community.
- Social networks potentially enhance and maintain the power of its members through the following resources:
- **Information:** Information from other members that improves the individual's expert power.
- **Visibility:** Other members more readily think of you than of people outside of the network.
- **Referent Power:** Members of a network identify with or have greater trust in each other.
- **Power Through Social Networks:**
- **Strong Ties, Weak Ties, Many Ties:**
- **Strong Ties:**
- Close-knit relationships.
- Valuable because they offer resources more quickly and plentifully.
- Offer greater social support and cooperation.
- Strong ties tend to be similar to us, so they provide similar information and resources than other strong ties.
- **Weak Ties:**
- *Being merely acquaintances*.
- They are different fro us and more likely to offer unique opportunities, connections, and resources.
- Important in job hunting and career development.
- **Many Ties:**
- Number of people connected to you in a social network.
- *The more people you know, the more network resources available to you*.
- As a social network grows, you have less time and energy to maintain strong ties.
- **Social Network Centrality:**
- <u>The more central a person is located in a network, the more social capital (and therefore power) he/she acquires</u>.
- **Factors that Determine Centrality:**
- **Betweenness:** How much you are located between others in the network.
- **Degree Centrality:** Number of connections you have to others in the network.
- **Closeness:** *Closeness* of the relationship with others in the network.
- **Structural Hole:** An area between two or more dense social network areas that lacks network ties.
- A broker is a person who connects two independent networks.
- **"Dark Side" of Social Networks:**
- Social networks can create a *barrier* to those who are not actively connected to them.
- To leverage the power of social networks, organizations support several surface-level and deep-level employee groups.
***
**9.4 - Influencing Others**
- **Influence:**
> Any behavior that attempts to alter someone's attitudes or behavior.
- *Power in motion*.
- Essential process to coordinate effort to achieve organizational objectives.
- **Types of Influence Tactics:**
- **Silent Authority:**
> Occurs when someone complies with a request because of the requester's legitimate power.
- *Deference to authority*.
- Every organization requires this strategy to operate.
- **Assertiveness:**
> Applying legitimate and coercive power to influence others.
- Also called **vocal authority**.
- Includes reminding the target of his/her obligations, checking their work, and using threats of sanctions.
- Commonly seen as workspace bullying.
- **Information Control:**
> Explicitly manipulating someone else's access to information for the purpose of changing his/her behavior.
- **Coalition Formation:**
> Forming a group that attempts to influence others by pooling the resources and power of its members.
- This pools the power of many people so that the coalition has more influence than the individual members.
- The mere existence of the coalition can influence others by symbolizing its legitimacy.
- It increases the confidence and motivation of its members. (Social Identity Theory)
- **Upward Appeal:**
> Relying on people with higher authority or expertise to support your position.
- Also occurs when relying on the organization's policies or values.
- **Persuasion:**
> Using logical arguments, factual evidence, and emotional appeals to convince people.
- Most widely used and accepted influence strategy.
- Quality of effective leaders.
- **Elements of Persuasion:**
- **Persuader Characteristics:**
- Expertise
- Credibility
- No apparent profit motive.
- Appear somewhat neutral.
- **Message Content:**
- Acknowledges several points of view.
- Limited to few strong arguments.
- Uses emotional appeals in combination with logical arguments and recommendations.
- **Inoculation Effect:** Warning listeners that others will try to influence them in the future.
- **Communication Channel:**
- High social presence.
- Media-richness.
- Face-to-face communication.
- **Audience Characteristics:**
- More difficult to persuade people with high self-esteem and intelligence, or a strong tie to the opposing viewpoint.
- **Impression Management:**
> Actively shaping the perceptions and attitudes that others have of us.
- Done through self-presentation.
- Exampled include the way employees dress and how they behave toward colleagues and customers.
- **Ingratiation:** Any attempt to increase liking by, or perceived similarity to, some targeted person.
- Too much ingratiation is viewed as insincere and self-serving.
- **Exchange:**
> Promise of benefits or resources in exchange for the target person's compliance with your request.
- Includes negotiation and application of the *norm of reciprocity*.
> [!INFO]
> - **Hard Influence Tactics:** The influencer applies extrinsic conditions (obligations, rewards) to control the other party's behavior. They rely on position power.
> - Silent Authority
> - Assertiveness
> - Information Control
> - Coalition Formation
> - Upward Appeal
> - **Soft Influence Tactics:** The person being influenced has more autonomy and control over the influence process. They appeal to attitudes and needs.
> - Persuasion
> - Impression Management
> - Exchange
- **Responses to Influence:**
- **Resistance:**
> Occurs when people oppose the behavior desired by the influencer.
- **Compliance:**
> Occurs when people are extrinsically motivated to implement the influencer's request. This means they do the task for purely **instrumental reasons**.
- **Commitment:**
> Occurs when people identify with the influencer's request and are highly motivated to implement it without extrinsic sources of motivation.
- People react more favorably to soft tactics than to hard tactics.
- Soft tactics rely on personal sources of power, which build commitment.
- Hard tactics rely on position power, which produce compliance or resistance.
- The most appropriate strategy depends on personal, organizational, and cultural values.
- Preferred tactics vary across cultures.
***
**9.5 - Organizational Politics**
- **Organizational Politics:**
> Use of influence tactics for personal gain at the perceived expense of others and the organization.
- All political behaviors apply one or more influence tactics.
- It is very difficult to know the political actor's motives or awareness of their actions.
- **Adverse Consequences of Organizational Politics:**
- Lower job satisfaction, commitment, organizational citizenship, and task performance.
- Higher levels of stress.
- Motivation to leave the organization.
- Divert resources away from the organization.
- Employees with a strong need for **personalized power** are more likely to engage in organizational politics.
- In contrast, people with a strong need for socialized power seek power to accomplish beneficial objectives.
- Individuals with Dark Triad characteristics are more likely to engage in organizational politics.
- Machiavelism
- Narcissism
- Psychopathy
- **Minimizing Organizational Politics:**
- Add resources so that people do not rely on political tactics to safeguard their resources.
- Establish clear guidelines for allocation of scarce resources.
- Apply organizational change strategies.
- Diagnose and alter systems that support self-serving behavior.
- Leaders need to become role models of organizational citizenship.

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> ### 010 - Ethics, Ethical Reasoning, and Organizational Ethics
> Class Notes - October 26, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**10.0 - Lecture Notes**
- **Ethics:**
> Conception of what is right and wrong.
- Individual.
- Personal code of ethics comes from religious beliefs, family, school, neighbors, friends, role models, cultural influences, media exposure, among others.
- **Ethical Principles:**
- Guides top moral behaviors.
- **Business Ethics:**
- Application of general ethical ideas to business behaviors.
- We do not create a *new* ethical moral code for business.
- We pull from the same places.
- What does society see as right and wrong.
- Businesses are embedded in society.
- Part of social responsibility is to meet social expectations if you want o be a socially-responsible company.
- If you fail to do so, employees may be uncomfortable.
- People may not engage with your business.
- **Why be Ethical in Business?**
- *Something for everyone* benefits, depending on your moral code and the stage in which you are.
- **Happy Stakeholders:**
- **Stakeholders:**
> Anyone with a significant interest in the business.
- Commonly investors, but also stockholders, customers, employees, affected communities, or society at large.
- Employees will like working with your company and identify with it.
- High levels of satisfaction, high levels of commitment, talk more positively about the organization when it is ethical.
- Customers will feel *like they can trust you*.
- Positive treatment from the media.
- **Improved Organizational Performance:**
- Customers like you more.
- They trust you.
- Suppliers give more favorable terms and more interest in working with you.
- Employees will have high levels of identification, satisfaction, and commitment.
- Higher performance.
- Less stressed, more engaged, happier.
- **Integrity Capital:** Financial benefit of promoting a culture of integrity.
- *Buys some slack*.
- Gives you the benefit of the doubt from your people.
- **Reduced Legal Risk/Expense:**
- Laws encourage companies to be ethical.
- Making unethical decisions usually involves money.
- Laws are written to make sure that money is gone.
- US Corporate Sentencing Guidelines
- Sarbanes-Oxley
- *Its cheaper to do legal things*.
- *Do no harm*.
- Not live with the fact that you are *hurting* people (directly or indirectly).
- *Be a good person*
- Ethical organizations allow and encourage acting in ethical ways.
- You get to enact your own values at work.
- Act in a way that is consistent with your personal values and beliefs.
- If not, it causes counterproductive work behaviors.
- **Sources of Unethical Behavior:**
- **Potential for Personal Gain:**
- Self-interest over the interest of other people.
- **Competitive Pressure to Increase Profits**
- Focus on the firm's interests over others' interests.
- **Conflicts of Interest:**
- Multiple obligations and loyalties.
- Focusing on your own self-interests. (Direct or Indirect)
- **Cross-Cultural Contradictions:**
- Ethnocentric view.
- Focus on the company's interests over diverse cultural values.
- **Example - Hawaiian Telescope:**
- Place telescope on the top of a mountain.
- The spot has a significant religious meaning for the people of Hawaii.
- Many protests going on.
- They place the interest of science over cultural traditions and values.
- **Promote Ethical Behavior:**
- *Bad Apples vs. Bad Barrels*
- *If you have apples in a barrel, and one apple is rotten, it rots other apples*.
- Bad individuals contaminating our workforce.
- *Or you can have a bad barrel which rots the apples inside*.
- Setting up a situation in the workforce that encourages people to act unethically.
- As managers, we want to set up an environment that encourages people to act ethically.
- Have managers that have and enact ethical values.
- Do things consistent with the organization's ethics.
- *Tone at the top*
- Important with any manger that has consistent face time or influence over employees.
- Influence the employee's decision making.
- Managers often do not think of decisions as ethical decisions.
- Instead, they consider if they are socially approved or legal.
- *Low ethical intensity.*
- **Ethical Intensity:**
> Extent to which you view a decision as an ethical decision.
- Some decisions do not have a lot of ethical depth.
- Having a strong organizational culture that supports ethics.
- **Ethical Climate:**
> Unspoken understatement among employees abut what is and is not acceptable behavior.
- Encourages employees to make ethical decisions.
- Encourage **integrity-based** rather than **compliance-based** approach to ethics.
- Compliance-based approaches focuses on adhering to rules and avoiding legal sanctions.
- Integrity-base programs also make employee responsible for ethical conduct.
- Encouraging people to adhere to ethical values.
- Develop and enact an ethics policy or code.
- More compliance-based approach.
- Cultural differences.
- Focus more on ethical elements as opposed to just rules.
- Ethics or Compliance Officer
- Ethics of Compliance Audits
- Ethics Reporting Mechanisms
- *Whisteblower*
- Training to promote ethics.
- **Consequences:**
- How easy it is to conduct business.
- Employees feel committed and quality of work.
- Employees you attract.
- *Things that help you sleep at night*.
- **Takeaways:**
- Focus is in constructing a *good barrel*.
- Encourage regular people to make ethical decisions.
- Self-interest should not be the primary focus when making decisions.
- Ethical codes are personal.
- Organizational ethics should be too.
- Ethical action pays:
- Decreased legal costs
- Increased employee performance, satisfaction, and commitment.
- Increased customer and partner trust and loyalty.
***
**10.1 - The Meaning of Ethics**
- **Ethics:**
> A conception of right and wrong conduct.
- Tells is whether our behavior is moral or immoral.
- *How we think and behave towards others*.
- **Ethical Principles:**
> Guides to moral behavior.
- *Basic rules of behavior* for preserving organized life.
- **Sources of Ethical Principles:**
- Religious Beliefs
- Family
- Schools
- Friends
- Admired Role Models
- Ethnic Groups
- Electronic Media
- Ethical ideas are present in all societies, but they vary greatly from one another.
- **Ethical Relativism:**
> Ethical principles should be defined by various periods of time in history, a society's traditions, special circumstances of the moment, or personal opinion.
- The meaning given to ethics would be relative to time, place, circumstance, and the individual involved.
- This means <u>there would be no universal ethical standards on which people could agree</u>.
- **Business Ethics:**
> Application of general ethical ideas to business behavior.
- To be considered ethical, businesses must draw ideas about proper behavior from the same sources as everyone else in society.
- **Top Types of Observed Misconduct in Business:**
- Conflicts of Interest
- Abusive or Intimidating Behavior
- Lying to Employees
- **Reasons for Businesses to be Ethical:**
- **Meet Demands of Business Stakeholders:**
- Stakeholders demand that businesses have high levels of ethical performance and social responsibility.
- Many employees believe that their firms address these demands.
- If employees have an ethical view of their company, they have greater pride, higher work satisfaction, and are willing to recommend the company.
- When companies uphold ethical standards, consumers conduct more business with it.
- **Enhance Business Performance:**
- *Ethics pays*.
- **Integrity Capital:**
> The financial benefit a company gets from promoting a culture of integrity among its workforce.
- Companies with high integrity capital outperform those with lower integrity capital.
- Lack of ethics has a negative financial impact and may result in a loss of business.
- **Comply with Legal Requirements:**
- Doing business ethically is often a legal requirement.
- **U.S. Corporate Sentencing Guidelines:**
![[A019 - Corporate Sentencing Guidelines.png | 400]]
- Provide a strong incentive for businesses to promote ethics.
- Used to determine culpability (degree of blame) during sentencing when an employee has been found of criminal wrongdoing.
- Companies that take these steps typically receive lesser sentences or lower fines.
- **Sarbanes-Oxley Act:**
- Seeks to ensure that firms maintain high ethical standards in how they conduct and monitor business operations.
- Requires executives to vouch for the accuracy of financial reports and pay back bonuses based on earnings proved fraudulent.
- Established strict rules for auditing firms.
- Most CEOs believe it was an *overreaction*.
- **Prevent or Minimize Harm:**
- Businesses should act ethically to prevent harm to the public and to stakeholders.
- One of the strongest ethical principles is *do no harm*.
- Unethical behavior contributes to economic recessions.
- **Promote Personal Morality:**
- Most people want to act in ways that are consistent with their own sense of right and wrong.
- Being pressured to contradict their values creates emotional stress.
- Working in a supportive ethical climate increases psychological security.
***
**10.2 - Why Ethical Problems Occur in Business**
- **Personal Gain and Selfish Interest:**
- Desire for personal gain causes ethics problems.
- **Ethical Egoist:**
> An individual who places their own self-interest above all other considerations.
- Common traits of an ethical egoist include:
- Self-Promotion
- Focus on Self-Interest (Selfishness)
- Greed
- *Looking out for number one*.
- Usually ignores ethical principles accepted by others.
- Altruism seems irrational for an ethical egoist.
- **Competitive Pressures on Profits:**
- When companies have tough competition, they sometimes engage in unethical activities to protect their profits.
- Common in companies whose financial performance is poor.
- They are more prone to commit illegal acts.
- Intense competition has resulted in unethical practices, like price fixing or violation of competition laws.
- **Conflicts of Interest:**
> When an individual's self-interest conflicts with acting in the best interest of another, when the individual has an obligation to do so.
- Failure to disclose conflicts of interest represents deception, and it can hurt the organization.
- The *appearance* of a conflict of interest should be avoided, as it undermines trust.
- Both individuals and organizations can be in a conflict of interest.
- An example is financial fraud, where opportunities for self-enrichment by managers conflict with long-term viability of a firm and the best interests of individuals.
- **Cross-Cultural Contradictions:**
- Many ethical problems occur as corporations do business in other societies where ethical standards differ from those at home.
- As businesses become global, cross-cultural questions occur more frequently.
***
**10.3 - Core Elements of Ethical Character**
- **Managers' Values:**
- As major decision makers, managers have more opportunities than others to create an ethical tone for their company.
- Values held by managers serve as models for other employees.
- Many employees believe that managers have low honesty and ethics.
- Most managers are focused on themselves and primarily concerned on being competent.
- Studies show that one out of four managers shows a string concern for moral values.
- The challenge for *moral managers* is acting effectively on their beliefs in the day-to-day life of their organizations.
- **Spirituality in the Workplace:**
- **Spirituality:**
> A personal belief in a supreme being, religious organization, the power or nature, or some external, life-guiding force.
- There is a positive relationship between an organization's economic performance and attention to spiritual values.
- Spirituality positively affects performance.
- It enhances intuitive abilities and capacity for innovation.
- It increases personal growth, employee commitment, and responsibility.
- It is important for managers to be sensitive to employees' spirituality.
- Others believe that business is a secular (nonspiritual) institution.
- There is also a concern on *whose spirituality should be promoted*.
- **Managers' Moral Development:**
- Managers in a company are likely to be at various stages of moral development.
- **Stages of Moral Development:**
- **Stage 1:**
- Childhood
- **Ego-centered reasoning**.
- Punishment avoidance and obedience to power.
- **Stage 2:**
- Adolescence, Youth
- **Ego-centered reasoning**.
- Reward seeking, self-interest, and reciprocity.
- **Stage 3:**
- Early Adulthood, Adolescence
- **Group-centered reasoning**.
- *Pleasing others and being admired by them*.
- *Going along with what others are doing*.
- **Stage 4:**
- Adulthood
- **Society- and Law-Centered Reasoning**
- Individuals focus their reasoning according to society's customs, traditions, and laws.
- **Stage 5:**
- Mature Adulthood
- **Principle-centered reasoning**.
- Moral beliefs above and beyond social customs.
- Ethical reasoning is based on broad principle sand relationships (human rights, equal treatment, freedom of expression).
- **Stage 6:**
- Mature Adulthood
- **Principle-centered reasoning**.
- Meaning of right and wrong is defined by universal principles of justice, fairness, and common rights.
- Most managers typically rely on criteria associated with reasoning at stages 3 and 4.
- Managers' ethics are influenced by their immediate work group, family, or compliance with the law.
- Companies need managers whose personal character is built on a caring attitude toward all affected.
- Combination of stage 5 and 6 reasoning.
- **Universal Ethical Values:**
- Do not harm.
- Be fair and just.
- Be honest.
- Respect others' rights.
- Act responsibly.
***
**10.4 - Methods of Ethical Reasoning**
![[A020 - Methods of Ethical Reasoning.png | 500]]
- **Virtue Ethics:**
> Ethical theory that focuses on character traits that a *good* person should possess, with the expectation that moral values will direct a person towards good behavior.
- Based on *valuable characteristics* rather than rules for correct behavior.
- **Moral Virtues:** Habits that enable a person to live according to reason.
- **Examples of Moral Virtues:**
- Courage
- Self-Control
- Generosity
- Faith
- Hope
- Cleanliness
- Honesty
- Trust
- <u>An action is morally right if it exhibits a morally virtuous character</u>.
- **Limitations:**
- Some argue that Virtue Ethics is not an *ethical system*, but rather a system of values that form good character.
- Different people offer different sets of values.
- **Utilitarian Reasoning:**
> Ethical theory that emphasizes **utility**, or the overall amount of *good* that can be produced by an action or decision.
- Often referred to as a *cost-benefit analysis*.
- Costs and benefits can be:
- Economic -> Dollar Amounts
- Social -> Effect on Society
- Human -> Psychological, Emotional
- <u>The alternative where the benefits outweigh the costs is ethically preferred</u> because it produces the greatest good for the greatest number of people.
- **Limitations:**
- Difficulty of accurately measuring both costs and benefits.
- The majority may override the rights of the minority.
- Managers often fail to consider the means taken to reach the end.
- Widely used in business to measure economic and financial outcomes.
- **Human Rights:**
> A **right** means that a person is entitled to something or entitled to be treated in a certain way.
- **Basic Human Rights:**
- Life
- Safety
- Free Speech
- Freedom
- Information
- Due Process
- Property
- Denying rights is normally considered to be unethical.
- <u>Individuals are to be treated as valuable ends just because they are human beings</u>.
- <u>Using others for your own purposes is unethical if you deny them their goals and purposes</u>.
- **Limitations:**
- Difficult to balance conflicting rights.
- **Justice:**
> When benefits and burdens are distributed equitably and according to some accepted rule.
- **Social Justice:** When a society's income and wealth are distributed among the people in *fair* proportions.
- "Fair" does not necessarily mean "equal".
- Most societies consider needs, abilities, efforts, and contributions.
- <u>Benefits and costs are fairly distributed</u>.
- **Limitations:**
- Lack of agreement on fair shares.
- Using only one of the four ethical reasoning methods can lead to an incomplete understanding of all ethical complexities.
- Consider if all of the ethics approaches lead to the same decision.
- We cannot be absolutely certain of the ethics of a decision because different people:
- Use different sources of information.
- Rely on different values or definitions of a virtuous character.
- Measure costs and benefits differently.
- Do not share the same meaning of justice.
- Rank various rights in different ways.
- Managers must assign priorities to each method of ethical reasoning.
- This is influenced by a company's culture.
***
**10.5 - Corporate Ethical Climates**
- **Corporate Culture:**
> Blend of ideas, customs, practices, values, and shared meanings that help define normal behavior for every employee in a company.
- *The way we do things around here*.
- Strong ethical cultures result in lower misconduct.
- **Ethical Climate:**
> *Unspoken* understanding among employees of what is and is not acceptable behavior.
- It is the part of the corporate culture that sets the ethical tone in a company.
- **Components of Ethical Climates:**
- **Egoism (Self-Centered Approach):** Emphasizes self-interest, company interest, and economic efficiency.
- **Benevolence (Concern-for-Others Approach):** Emphasizes friendship, team interest, and social responsibility.
- **Principle (Integrity Approach):** Emphasizes friendship, team interest, and social responsibility.
- Multiple ethical climates may exist within one organization.
- Corporate ethical climates can signal that ethical transgressions are acceptable.
***
**10.6 - Business Ethics across Organizational Functions**
- Not all ethical issues in businesses are the same.
- Ethical issues can appear in any major functional area of a firm.
- **Accounting Ethics:**
- Financial records of publicly held companies are required to be audited by a certified professional accounting firm.
- Company managers rely on public audits to make key decisions.
- Honesty, integrity, and accuracy are required from the accounting function.
- Accountants are often faced with conflicts of interest.
- Loyalty to the company may be in conflict with self-interest and interests of others.
***
**10.7 - Managing Ethics Work in Corporations**
- **Institutionalizing Ethics:**
- Building *ethical safeguards* into a company's everyday routines.
- Improves quality of ethical performance.
- **Building Ethical Safeguards:**
- **Compliance-Based Approach:**
- Seeks to avoid legal sanctions.
- Emphasizes threat of detection and punishment.
- Increases employees' willingness to seek ethical advice and shape awareness of ethical issues
- **Integrity-Based Approach:**
- Combine concern for the law with an emphasis on employee responsibility.
- Environment of honesty and fairness.
- Increases employees' sense of integrity, commitment to the organization, willingness to deliver bad news, and perception that better decisions are made.
- **Top Management Commitment and Involvement:**
- The example set by executives is critical to fostering ethical behavior.
- Senior-level managers and directors signal employees that they believe ethics should receive high priority in all business decisions.
- The daily influence of senior management and supervisors are the most essential safeguards for creating an ethical workplace.
- **Ethics Policies or Codes:**
- Provide guidance to managers and employees when they encounter an ethical dilemma.
- They differ among countries.
- They cover issues like:
- Developing Guidelines
- Accepting or Refusing Gifts
- Avoiding Conflicts of Interest
- Securing Proprietary Information
- Avoiding Discriminatory Practices
- **Instrumental Policies:**
- Provide procedures for employees to follow in order to adhere to company policies and societal laws.
- More common in the United States and Latin America.
- **Legal Compliance and Values and Missions Policies**
- More common in Japan, Canada, and European countries.
- Written policies are insufficient by themselves to *bring about* ethical conduct.
- They must be followed with employee training.
- **Ethics and Compliance Officers:**
- Officer entrusted with ethical compliance and development and implementation of ethics programs.
- **Ethics Reporting Mechanisms:**
- *Helpline* for seeking help about ethical issues, often anonymously.
- **Objectives:**
1. Provide interpretation of proper ethical behavior.
2. Create an avenue to make known to proper authorities any allegations of unethical conduct.
3. Give employees and stakeholders a way to discover information about work-related topics.
- **Limitations:**
- Executives tend to use the helpline more than others *farther down* in the organizational chart.
- Some people are lees likely to use the helpline and can be more vulnerable.
- Rates of helpline usage are lower in foreign-owned companies.
- **Ethics Training Programs:**
- Most expensive and time-consuming element of an ethics program.
- Important for building ethical safeguards.
- Done regularly by larger businesses.
- Focused on making sure employees now what the law requires and the company expects.
- **Ethics Audits:**
- An auditor is required to note deviations from company's ethics standards and bring them to the attention of the audit supervisor.
- Used to assess the effectiveness of ethical safeguards.
- **Steps for an Ethics Audit:**
1. Have a detailed ethics foundation.
2. Develop metrics.
3. Create a cross-functional team.
4. Audit efficiently.
5. Look for other issues.
6. Respond consistently and communicate.
- **Comprehensive Ethics Programs:**
- Integration of various ethics safeguards into a comprehensive program.
- Each component reinforces each other and becomes more effective.
- **Components:**
- Top Management Commitment
- Ethical Policies or Codes
- Compliance Officers
- Reporting Mechanisms
- Training Programs
- Audits
- A comprehensive ethics program makes people more likely to report ethical misconduct and be more satisfied with the company's response to it.
- **Corporate Ethics Awards and Certifications:**
- **Ethical Quotient (EQ) Score:**
- Considers corporate responsibility performance.
- Sponsored by *Ethisphere Magazine*.
- **American Business Ethics Awards (ABEA):**
- Recognizes companies that show high standards of ethical behavior in they everyday business conduct and response to specific challenges.
***
**10.8 - Ethics in a Global Economy**
- **Bribery:**
> Questionable or unjust payment, often to a government official, to ensure or facilitate a business transaction.
- More likely in countries with low *per capita* income, low salaries for government officials, and less variation in income distribution.
- **Combating Bribery:**
- A legalistic approach is unlikely to be effective since culture plays an important role.
- Integrative approach of economic advancement policies, social investment in education, and friendly business policies.
- **Reducing Unethical Practices:**
- National governments enacting stiff legislative controls.
- **Organization for Economic Cooperation and Development (OECD):**
- Adoption of visible anti-bribery policies.
- Sense of responsibility for compliance.
- Regular communication and training on foreign bribery.
- Observance of anti-bribery compliance measures.
- Disciplinary procedures.
- **U.S. Foreign Corrupt Practices Act (FCPA):**
- Prohibits paying bribes to foreign government officials, parties or candidates.
- Requires companies with foreign operations to adopt accounting practices that ensure full disclosure of transactions.
- **United Kingdom's Bribery Act:**
- Prohibits bribery of another person, and receiving or accepting a bribe.
- Does not require that the improper offer is made *corruptly*.
- Does not provide exceptions for *facilitating payments*.
- Liability offense for failure to prevent bribery.
***
**10.9 - Ethics, Law, and Illegal Corporate Behavior**
- **Laws:**
> A society's attempt to formalize the general public's ideas about what constitutes right and wrong conduct in various spheres of life.
- Ethical concepts are more complex that written rules of law.
- They deal with human dilemmas that go beyond the formal language of law.
- Following laws cannot always define proper action.
- They are not always able to completely codify a society's norms.
- <u>Ethical principles are broader than laws</u>.
- **White-Collar Crime:**
> Illegal acts committed by individuals, employees, or business professionals such as fraud, insider trading, embezzlement, or computer crime.
- The most common include:
- Credit Card Fraud
- Price Misrepresentation
- Unnecessary Repairs
- Monetary loss in the Internet
- Identity Theft

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> ### 011 - Leadership in Organizational Settings
> Class Notes - November 03, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**11.0 - Video Lecture Notes**
- **Managerial Leadership:**
- Appropriate with stable objectives.
- Everything is aligned with the external environment.
- Bring forward effectiveness.
- Focus on efficiency.
- Developing and maintaining employees and their work environment.
- Things are stable and going well.
- The goal is to create systems to do this better.
- Concrete and administrative tasks rather than inspiring or changing.
- **Change Leadership:**
- Assumes that there is a need for change (internal or external).
- *Something is shifting*.
- Make people feel like change is something worth their time.
- Transformational Leadership is one approach.
- The goal is to direct the organization towards some strategic vision.
- Develop employees towards the vision.
- Typically less concrete, as we do not know all details.
- *Big-picture* focused.
- Rely on experts to figure how to do things.
- **Leading:**
- More people-focused.
- More sociocultural and emotional.
- Understand and deal with people.
- **Managing:**
- Administrative tasks.
- Directive and task-oriented.
- **Trait Approach to Leadership:**
- Different people can have different approaches to leadership and still be effective.
- **Personality:**
- Extroverted (Dealing with lots of people)
- Conscientiousness (Lots of details)
- Emotional Intelligence (Understand and empathize with people)
- **Self-Concept:**
- Strong self-concept
- Clear Identity
- High Self-Esteem
- Self-Efficacy
- Internal Locus of Control (Belief that you can affect the things that happen to you)
- **Integrity:**
- Honesty
- Follow-through on Talk (*Walk the Talk*)
- Strong Ethical Values
- **Drive/Motivation:**
- Need for socialized power (and occasionally personalized).
- Power to help other people.
- Intrinsic Motivation
- Need for Achievement
- **Knowledge:**
- Know about the organization and its industry.
- **Intelligence:**
- Lots of information from lots of sources.
- Need to process.
- Analyze complex alternatives and opportunities.
- **Approaches to Leadership:**
- Your approach to leadership should be a function of your innate disposition and how you like to deal with people, as well as the situation.
- **Task-Oriented:**
- Management and administrative tasks.
- Initiate structure.
- Focusing on work tasks, following goals, deadlines, feedback, establishing best practices.
- Directive Leadership (Path-Goal Theory)
- Transactional Leadership
- **Relationship-Oriented:**
- Consideration.
- Focus on employees as people.
- We are concerned about their needs, values, and motivation.
- Servant Leadership
- Supportive Leadership (Path-Goal Theory)
- Transformational Leadership
- **Combination:**
- Participative Leadership
- Achievement-Oriented Leadership
- **Practitioner Perspective from a Leadership Coach:**
- Five practices of effective leaders (*The Leadership Challenge*).
- Patterns of behavior.
- **Modeling the Way:**
- Leaders establish ways that their subordinates should be treated and behave themselves.
- You are the ultimate role model.
- Reinforce it.
- **Inspiring a Shared Vision:**
- Leaders who believe that they can make a difference inspire people.
- Vision for the future.
- Create an ideal image of what is possible.
- **Challenge the Process:**
- Leaders will search for opportunities to challenge and change the status quo.
- **Enable Others to Act:**
- Enable others to do something by themselves.
- Forster collaboration and involve other people.
- Give the opportunity to do stuff.
- **Encourage the Heart:**
- Recognize that things are hard on your employees, even with they are excited or engaged.
- Acknowledge that this can be challenging.
- Help employees feed their souls and give them opportunities to rest and recover.
- Recognize the contributions they make.
- The most effective leaders handle the administrative tasks while also acknowledging that their followers are people who have needs.
- **Takeaways:**
- While there are some traits that support effective leaders, you can learn them.
- Leadership looks different in some people.
- If it works, it can be an effective style.
- We need to adapt to the situation.
- Need for change.
- Approaches should be based on situational factors and personal preference.
- Be prepared to adapt.
***
**11.1 - Leadership**
- **Leadership:**
> Influencing, motivating, and enabling others to contribute toward the effectiveness and success of the organization of which they are members.
- Leaders motivate others through persuasion and influence tactics.
- Leaders are enablers that make it easier for employees to achieve their objectives.
- **Shared Leadership:**
> The view that leadership is a set of roles that everyone performs, not a position assigned to one person.
- Companies are more effective when everyone performs leadership responsibilities.
- Formal leaders should not try to perform all leadership tasks.
- <u>Shared leadership supplements formal leadership</u>.
- Better in organizations where formal leaders are willing to delegate power.
- Requires a collaborative rather than competitive culture.
- Lacks formal authority.
***
**11.2 - Transformational Leadership Perspective**
- **Transformational Leadership:**
> Leadership perspective that explains how leaders challenge teams by creating, communicating, and modeling a vision for the organization, and inspiring employees to strive for that vision.
- Most popular leadership perspective.
- Views leaders as *change agents*.
- They *move* the organization in directions that provide better opportunities.
- **Elements of Transformational Leadership:**
- **Develop and Communicate a Strategic Vision:**
- **Vision:** Positive image or model of the future that energizes and unifies employees.
- The vision can be created by the leader, employees, or stakeholders.
- It is then championed by the formal leader.
- **Features of an Effective Strategic Vision:**
- Describes an aspirational future with a higher purpose associated with personal values (*value-based vision*).
- Engages employees with a goal that is challenging (requires change) and abstract (has not been experienced).
- Unifies employees and aligns their values with the organization's.
- <u>The effectiveness of the vision depends on how well leaders communicate it</u>.
- Leaders generate meaning and motivation by using metaphors or stories.
- Use of verbal and nonverbal communication.
- Focus on shared experiences.
- **Model the Vision:**
- <u>Transformational leaders enact the vision</u>.
- They do things that symbolize the vision.
- Can be done by visiting customers, moving offices closer to or further from employees, and holding ceremonies to symbolize significant change.
- Ensure routine daily activities are consistent with the vision.
- This legitimizes the vision and demonstrates what it looks like in practice.
- <u>The greater the consistency between the leader's actions, the more employees will believe in and follow the leader</u>.
- **Encourage Experimentation:**
- Transformational leadership s about change.
- Transformational leaders support a learning orientation.
- **Learning Orientation:** Set of collective beliefs and norms that encourage people to question past practices, learn new ideas, experiment, and view mistakes as part of the learning process.
- **Build Commitment toward the Vision:**
- Transforming a vision into reality requires commitment.
- Transformational leaders build commitment through words, symbols, and stories.
- This creates a *contagious enthusiasm* that energizes people to adopt the vision as their own.
- Leaders demonstrate a *can-do* attitude by enacting and behaving consistently with their vision.
- Built through rewards, recognition, and celebrations for passed milestones.
- **Charisma:**
> Set of self-presentation characteristics and nonverbal communication that generate interpersonal attraction and referent power over others, as well as follower deference.
> [!IMPORTANT]
> Charisma is not necessarily part of transformational leadership.
> - Charismatic leadership motivates through referent power.
> - Transformational leadership motivates through behaviors that persuade and earn trust.
- Charismatic leadership can have negative consequences.
- It tends to produce dependency, as followers want to be associated with people who have charisma.
- Leaders may become intoxicated by power, leading to more focus on self-interest than on common good.
- Transformational leadership builds follower empowerment, which reduces dependence.
- <u>Subordinates are more satisfied and have higher organizational commitment under transformational leaders</u>.
- Better job performance.
- More organizational citizenship behaviors.
- More creative decisions.
- **Issues with Transformational Leadership:**
- Some models engage in circular logic.
- Combines leader behaviors with leaders' personal characteristics.
- It is usually described as *universal*.
***
**11.3 - Managerial Leadership Perspective**
- **Managerial Leadership:**
> Leadership perspective stating that effective leaders help employees improve performance and well-being toward current objectives and practices.
- Assumes the organization's objectives are aligned with the external environment.
- Relates to specific performance and well-being objectives.
- More *micro-focused* and concrete.
- <u>Transformational leadership and managerial leadership depend on each other</u>.
- Transformational leadership identifies, communicates, and builds commitment.
- *Sets the right direction* (vision).
- Managerial leadership translates the abstract vision into specific operational behaviors and practices.
- Continuously improves performance and well-being.
- Managerial and transformational leadership are not embodied in different people or positions.
- <u>Every manager needs to apply both behaviors to varying degrees</u>.
- **Task-Oriented Leadership:**
> Includes behaviors that define and structure work roles.
- Assigning employees to specific tasks.
- Setting goals and deadlines.
- Clarifying work duties.
- Defining work procedures.
- Planning work activities.
- **People-Oriented Leadership:**
- Listening for opinions and ideas.
- Creating pleasant work settings.
- Showing interest in staff.
- Complimenting and recognizing employees.
- Showing consideration for employee needs.
- Effective leaders rely on both task-oriented and people-oriented styles in different circumstances.
- With a people-oriented style, employees have more positive attitudes and lower stress and absenteeism.
- With a task-oriented style, employees have higher job performance.
- **Servant Leadership:**
> Extension of people-oriented leadership where leaders serve followers, rather than vice versa.
- Servant leaders assist others int their need fulfillment.
- They usually ask *How can I help you?*.
- Typically selfless, egalitarian, humble, empathetic, and ethical.
- **Features of Servant Leadership:**
- **Natural Desire to Serve Others:**
- Deep commitment to help others in their personal growth.
- Selfless desire to support others beyond the leader's obligation.
- **Humble, Egalitarian, Accepting Relationship with Followers:**
- Serve without drawing attention to themselves.
- No being judgmental about others or defensive of criticisms.
- **Ethical Decisions and Behavior:**
- Sensitivity to and enactment of moral values.
- Rely on personal values to anchor decisions and behavior.
- *Authentic leadership*.
***
**11.4 - Path-Goal and Leadership Substitutes Theories**
- **Path-Goal Leadership Theory:**
> Leadership theory stating that effective leaders choose the most appropriate leadership style(s) depending on the employee and the situation.
- Leaders clarify the link between behaviors and outcomes, and influence the valence of those outcomes.
- **Path-Goal Leadership Styles:**
- **Directive:**
> Behaviors that provide a psychological structure for subordinates.
- Same as *task-oriented leadership*.
- Includes clarifying performance goals, means, and standards.
- Judicious use of rewards and disciplinary actions.
- **Supportive:**
> Behaviors that provide psychological support for subordinates.
- Same as *people-oriented leadership*.
- Being friendly, approachable, respecting, and showing concern.
- **Participative:**
> Behaviors that encourage and facilitate employee involvement in decisions beyond their normal work activities.
- Consult with staff members, ask for suggestions, reflect on employee views.
- Involve employees in decisions.
- **Achievement-Oriented:**
> Behaviors that encourage employees to reach their peak performance.
- Set challenging goals, seek improvement in performance, show high degree of confidence that employees will assume responsibility.
- Applying *goal-setting theory* and positive expectations in *self-fulfilling prophecy*.
- **Path-Goal Theory Contingencies:**
- Each of the four leadership styles will be more effective in some situations than in others.
- Depending on the circumstances, this involves using two or more styles at the same time.
- **Situational Variables:**
1. Employee characteristics.
2. Characteristics of the employee's work environment.
- **Contingencies:**
- **Skill and Experience:**
- A combination of directive and supportive leadership is best for inexperienced or unskilled employees.
- Directive leadership is detrimental when employees are skilled.
- **Locus of Control:**
- People with an internal locus of control prefer participative and achievement-oriented leadership.
- They may become frustrated with a directive style.
- People with an external locus of control are more satisfied with directive and supportive leadership.
- **Task Structure:**
- Directive style should be adopted when the task is non-routine.
- It is ineffective with simple tasks.
- Highly routine and simple jobs require supportive leadership to cope with tedious work.
- Participative leadership is preferred for non-routine tasks.
- It is ineffective for routine tasks.
- **Team Dynamics:**
- High team cohesion substitutes supportive leadership.
- Performance-oriented team norms substitute directive and achievement-oriented leadership.
- Apply a directive style to counteract performance-opposing norms.
- Path-goal theory predicts effective leadership better than transformational leadership.
- **Issues with Path-Goal Theory:**
- Not all contingencies have been investigated.
- Assumes leaders can change managerial styles.
- **Leadership Substitutes Theory:**
> Theory that identifies conditions that either limit a leader's ability to influence or make a particular leadership style unnecessary.
- *Task-oriented leadership* is less valuable for employees as they gain skill and experience.
- It may also be unnecessary when performance-based rewards motivate employees, when the work is intrinsically motivation, or when employees have good self-motivation.
- Teams substitute for *task-oriented leadership*.
- Team norms that support organizational goals encourage coworkers to perform their tasks.
- Coworkers engage n organizational citizenship behaviors when instructing less-experienced employees.
- This requires less task-oriented leadership from the manager.
- *People-oriented leadership* is less valuable when other forms of social support are available, when the work is enjoyable, and when the employee applies effective coping strategies.
***
**11.5 - Implicit Leadership Perspective**
- **Implicit Leadership Theory:**
> States that people evaluate a leader's effectiveness in terms of how well that person fits preconceived beliefs about the features of effective leaders (prototypes).
- Has two components:
- Leader Prototypes
- Romance of Leadership
- **Leadership Prototypes:**
> Preconceived beliefs about the features and behaviors of effective leaders.
- Developed through socialization.
- They shape the follower's expectation and acceptance of others as leaders.
- This affects willingness to remain as a follower.
- <u>They not only support a person's role as a leader, but also influence follower perceptions of the leader's effectiveness</u>.
- **Romance of Leadership:**
> When followers tend to inflate the perceived influence of leaders on the organization's success.
- **Reasons:**
- It is easier to explain organizational successes and failures in terms of the leader's ability rather than by analyzing other forces.
- People want to believe that life events are generated more from people than from uncontrollable natural forces.
- *Employees feel better believing that leaders make a difference so they actively look for evidence that this is so*.
- *Fundamental Attribution Error* -> Leaders are given credit for the company's success because employees do not readily see external forces.
***
**11.6 - Personal Attributes Perspective of Leadership**
- **Important Leadership Attributes**
| Leadership Attribute | Description |
|:------------------------------------:| --------------------------------------------------------------------------------------------------------------------------------------------- |
| Personality | High levels of extraversion (outgoing, talkative, sociable, and assertive), and conscientiousness (careful,dependable, and self-disciplined). |
| Self-Concept | Strong self-beliefs and a positive self-evaluation about their own skills and abilities. |
| Leadership Motivation | Need for socialized power (*power to lead others*) to accomplish teams or organizational goals. |
| Drive | Inner motivation to pursue goals. |
| Integrity | String moral principles demonstrated through truthfulness and consistency of words and deeds. |
| Knowledge of the Business | Deep knowledge about the company's environment, which enables making intuitive decisions. |
| Cognitive and Practical Intelligence | Above-average cognitive ability to process information, and ability to solve real-word problems by adapting to different environments. |
| Emotional Intelligence | Ability to recognize and regulate their own emotions and the emotions of others. |
- **Authentic Leadership:**
> View that effective leaders need to be aware of, feel comfortable with, and act consistently with their values, personality, and self-concept.
- *Knowing about yourself and being yourself*.
- As people learn more about themselves (self-awareness), they gain a greater understanding of their inner purpose.
- This generates a long-term passion for achieving something worthwhile for the organization.
- This also involves behaving in ways that are consistent with your self-concept.
- Difficult to lead others while pretending to be someone else.
- **Regulating Decisions and Behavior:**
- Develop your own style and move into positions where that style is most effective.
- Think about and consistently apply your stable hierarchy of personal values.
- Maintain consistency around your self-concept by having a strong and positive core self-evaluation.
- **Limitations of the Personal Attributes Perspective:**
- Assumes that all effective leaders have the same personal characteristics that are equally important in all situations.
- Leadership is too complex to have a universal list of traits.
- Some attributes are not important all the time.
- Alternative combinations of attributes may be equally successful.
- Two people with different sets of personal characteristics may equally be good leaders.
- Views leadership as something within a person.
- Leadership is relational.
- People are effective leaders because of their favorable relationships with followers, not just because they posses specific personal characteristics.
***
**11.7 - Cross-Cultural and Gender Issues in Leadership**
- Culture shapes a leader's values and norms, which influences his or her decisions and actions.
- Cultural values also shape followers' expectations of leaders.
- <u>Leaders whoa ct inconsistently wit cultural expectations are more likely to be perceived as ineffective leaders</u>.
- Generally, male and female leaders do not differ in their levels of task-oriented or people oriented-leadership.
- Women adopt a participative leadership style more readily than men.
- Girls are often raised to be more egalitarian and less status-oriented.
- Women have *somewhat* better interpersonal skills.
- Employees are motivated by their own stereotypes to expect female leaders to be more participative.

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> ### 012 - Organizational Culture
> Class Notes - November 09, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**12.0 - Video Lecture Notes**
- **Organizational Culture:**
- A shared set of values, beliefs, assumptions, and norms within an organization.
- Mutual understanding of who we are, what we stand for, what people do and act.
- Defines what is and is not important to the organization.
- Influences how employees think, feel, and behave towards each other and outside people.
- **Strong Organizational Culture:**
- High level of agreement on the values, beliefs and norms.
- **Weak Organizational Culture:**
- No strong consensus about values.
- Occur when a company lacks leadership, vision or is doing many different things.
- Hard to tell what is or is not important.
- Hard to think and behave in consistent ways.
- **Positive Culture:**
- Encourages innovation, commitment, employee engagement, and care.
- Example -> Chick-Fill-A
- Oriented towards customer service.
- Influenced by Christian values.
- Empower employees when they do things right.
- Encourage strong customer service.
- **Toxic Culture:**
- Very competitive.
- People believe that they are *just a number* to the company.
- *Distributive bargaining* setting.
- Unrealistic goals and punishment when they are not met.
- **Organizational Values:**
- **Espoused Values:**
- *Talk the talk*.
- Things that show in your website, statement, etc.
- **Enacted Values:**
- *Walk the walk*.
- The things the organization actually does.
- Ideally, both are the same.
- Often, organizations *say pretty things but do not really follow them*.
- Mission statements written by committees.
- *Watered down*.
- We want a high level of congruence between what we say we believe in and what we actually act.
- Employees are more satisfied when they members of an organization with values that have congruence with their personal values.
- Organizational values are part of your culture
- Shared set of values and shared understanding.
- Things that contribute and are evidence of an organizational culture.
- *Top-Down Orchestrated:*
- Founder says what the organization stands for.
- *Socially-Constructed Culture (Bottom Up):*
- People develop a consensus of what the organization is about.
- Big organizations have a hard time with this.
- Founding members have outsized influence on the culture because it is easier to come to consensus with fewer people.
- Some part of culture we can see and some we have to infer.
- Serve as evidence about the organizational culture.
- **What we can see:**
- **Physical Structure:**
- How an office is structured.
- Virtual or in person.
- Cubicles, open desk, offices.
- Open doors, glass doors, etc.
- How departments are structured together.
- **Language:**
- Do people talk about the organization as a family?
- Caring or making money?
- Customers?
- How we think about people within the organization.
- **Rituals and Ceremonies:**
- Team building activities.
- Holiday parties.
- **Stories and Legends**
- **Founders and Leaders**
- **Policies**
- **Reward and Compensation**
- **Discipline Policies**
- **Ethical Policies**
- Who works for the company.
- **Attraction-Selection-Attrition (ASA) Model:**
- People who are a good match to your organization's cultures are more likely to be attracted, to be hired, and to stay.
- Companies that have a strong unified culture attract employees and keep them (who are good matches).
- Shared values and assumptions.
- Role of technology.
- How you view your customers.
- **External Factors:**
- Industry Norms
- National and Regional Culture
- **Functions of Culture:**
- **Control System:**
- Tell people what they should be doing and how they should be acting.
- Reinforce norms and rules.
- **Social Glue:**
- Help people feel connected to their team and organization.
- More committed, engaged and *part of the family*.
- **Sensemaking Guide:**
- Help interpret stuff that happens.
- Understand expectations.
- **Influence on Organizational Performance:**
- Weak culture shave little effect.
- Strong cultures can have an effect.
- If the values are aligned with the environment, the needs of the organization, and the strengths and weaknesses of the members, then it has the potential to support organizational performance.
- Misaligned cultures can negatively impact performance.
- **Socialization:**
> Process of bringing a new individual and teaching them what the organization culture is.
- **Takeaways:**
- Cultures come from a variety of influences and act as cultural reinforces (if strong culture).
- A strong culture is not necessarily good.
- Not all cultures suit all people.
- Organizational cultures can be reinforced or changed through the kinds of people you hire, how you socialize them, the decisions made.
- Policies and structures.
***
**12.1 - Elements of Organizational Culture**
- **Organizational Culture:**
> The values and assumptions shared within an organization.
- Defines what is important and unimportant in the company.
- **Values:** Stable, evaluative beliefs that guide our preferences for outcomes or courses of action.
- **Shared Values:** Values that people within an organization have in common.
- **Shared Assumptions:** Non-conscious, *taken-for-granted* perceptions that are considered "the correct way to think and act" towards problems and opportunities.
- **Espoused Values:**
> Values that corporate leaders hope will eventually become the organization's culture.
- *The values that leaders want others to believe guide the organization*.
- Usually socially desirable.
- **Enacted Values:**
> Values that actually guide and influence decisions and behavior.
- Apparent when executives and employees are *in action*.
- **Classification of Organizational Cultures:**
| Category | Characteristics |
|:-------------------:|:----------------------------------------------------------------------------- |
| Innovation | Experimenting, opportunity seeking, risk taking, few rules, low cautiousness. |
| Stability | Predictability, security, rule-oriented. |
| Respect for People | Fairness, tolerance. |
| Outcome Orientation | Action-oriented, high expectations, results-oriented. |
| Attention to Detail | Precise, analytic. |
| Team Orientation | Collaboration, people-oriented. |
| Aggressiveness | Competitive, low emphasis on social responsibility. |
- **Concerns with Organizational Culture Models:**
- Oversimplification of cultural values in organizations.
- Ignorance of the shared assumptions aspect of culture.
- Incorrect assumption that organizations have a clear, unified culture that is easily decipherable.
- **Dominant Culture:**
> Values and assumptions shared most consistently and widely by an organization's members.
- Usually supported by senior management.
- **Subcultures:**
- Spread throughout various divisions and groups of an organization.
- Some enhance the dominant culture by espousing parallel assumptions and values.
- **Countercultures:**
> Subcultures that embrace values or assumptions that directly oppose the organization's dominant culture.
> [!ATTENTION] Some organizations consist of subcultures with no decipherable dominant culture.
- **Importance of Subcultures:**
- They maintain the organization's standards of performance and ethical behavior.
- Employees with countercultural values are an important source of surveillance and critical review of the dominant order.
- Subculture members support ethical conduct by preventing employees from blindly following one set of values.
- They are spawning grounds for emerging values.
***
**12.2 - Deciphering Organizational Culture through Artifacts**
- **Artifacts:**
> Observable symbols and signs of an organization's culture.
- They can be viewed as *symbols* or indicators of culture.
- They represent and reinforce an organization's culture.
- **Categories of Artifacts:**
- **Organizational Stories and Legends:**
> Stories and legends about the company's founders and past events.
- They add human realism to corporate expectations and individual performance standards.
- They produce emotions, which improves listeners' memory.
- Strongest effect when:
- They describe real people.
- Are assumed to be true.
- Convey clear messages about the way thing should be done.
- **Organizational Language:**
> Language of the workplace.
- *How employees talk to each other, describe customers, express anger, and greet stakeholders*.
- **Rituals and Ceremonies:**
- **Rituals:**
> Programmed routines of daily organizational life that dramatize an organization's culture.
- Repetitive and predictable events that have symbolic meaning.
- **Ceremonies:**
> Planned displays of organizational culture, conducted specifically for the benefit of an audience.
- **Physical Structures and Symbols:**
> Size, shape, location, and age of buildings.
- Buildings support a company's emphasis on teamwork, environmental friendliness, hierarchy, among other values.
***
**12.3 - Importance of Organizational Culture**
- An organization's success partly depends on its culture.
- **Culture Strength:**
> How widely and deeply employees understand and embrace the organization's dominant values and assumptions.
- In a **strong culture**, core values are shared by most employees across all sub-units.
- Company values are also institutionalized through well-established artifacts.
- Strong cultures tend to be long-lasting.
- Companies have **weak cultures** when dominant values are held by few people at the top of the organization.
- <u>Companies are more effective when they have strong cultures</u>.
- **Functions of Strong Cultures:**
- **Control System:**
- Organizational culture is a <u>form of social control that influences employee decisions and behavior</u>.
- Culture non-consciously directs employees so that their behavior is consistent with organizational expectations.
- **Social Glue:**
- Organizational culture <u>bonds people together and makes them feel part of the organizational experience</u>.
- Employees are motivated to internalize a dominant culture because it fulfills their need for social identity.
- **Sense Making:**
- Organizational culture helps employees make sense of <u>what goes on and why things happen in the company</u>.
- Easier to understand what is expected of employees.
- **Contingencies of Organizational Culture:**
![[A021 - Contingencies of Organizational Cultures.png | 500]]
- Strong cultures improve effectiveness only under specific conditions.
- **Culture Content is Aligned with the External Environment:**
- Benefits of a strong culture depend on whether the culture's dominant values are aligned with the external environment.
- If the culture is **congruent with the environment**, the employees are more motivated and have clearer role perceptions.
- If the culture is **misaligned with the environment**, a strong culture can undermine the connection with stakeholders.
- **Culture Strength Is Not the Level of a Cult:**
- Very strong cultures (*corporate cults*) may be less effective than companies with moderately strong cultures.
- They lock people into mental models, which blinds them to new opportunities and unique problems.
- They suppress dissenting subcultures.
- **Culture is an Adaptive Culture:**
- **Adaptive Culture:**
> Organizational culture in which employees are receptive to change, including the ongoing alignment of the organization to its environment.
- Adaptive cultures embrace change, creativity, open-mindedness, growth, and learning.
- Employees adopt an open systems view and take responsibility for the organization's performance.
- Strong learning orientation (collective belief that encourages people to question past practices).
- <u>An organization's culture influences the ethical conduct of its employees</u>.
- Good behavior is driven by ethical values.
- Ethical values become embedded in an organization's dominant culture (and the opposite is also true).
***
**12.4 - Merging Organizational Cultures**
- Mergers and acquisitions often fail when the merging organizations have incompatible cultures.
- **Bicultural Audit:**
> Process of diagnosing cultural relations between companies and determining the extent to which cultural clashes will likely occur.
- **Process:**
1. Identifying cultural differences between merging companies.
2. Determine which differences result in conflict and which cultural values provide common ground.
3. Identifying strategies and preparing action plans to bridge both cultures.
- **Strategies for Merging Different Organizational Cultures:**
| Strategy | Description | Best When |
|:-------------:|:------------------------------------------------------------------------------------------------------------------------------ |:------------------------------------------------------------------------------------------- |
| Assimilation | Employees at the acquired company willingly embrace the cultural values of the acquiring organization | Acquired company has a weak culture or is dysfunctional. |
| Deculturation | Acquiring company imposes its culture on then acquired organization. | Acquired firm's culture is dysfunctional, but employees are not aware of the problems. |
| Integration | Combine the cultures of the two firms into a new *composite* culture that preserves the best features of the previous cultures | Companies have weak cultures or cultures have overlapping values that can be improved. |
| Separation | Merging companies agree to remain distinct entities with minimal exchange of culture. | Merging companies are in unrelated industries with different *appropriate* cultural values. | | | |
***
**12.5 - Changing and Strengthening Organizational Culture**
- <u>Changing an organization's culture is a monumental change</u>.
- External environments change over time, so organizations need to shift their culture to maintain alignment.
- **Strategies for Changing and Strengthening Organizational Culture:**
- **Model Desired Culture through the Actions of Founders and Leaders:**
> The company's founder is often an inspiring visionary who provides a role model for others to follow.
- Organizational culture will be reinforced in the future through stories and legends about the founder.
- Founders usually establish an organization's culture.
- Subsequent leaders need to actively guide, reinforce, and alter the culture.
- Associated with transformational and authentic leadership.
- **Align Artifacts with the Desired Culture:**
> Artifacts are mechanisms that keep the culture in place or shift the culture to a new set of values.
- Systems and structures (artifacts) support the *desired state of affairs*.
- **Introduce Culturally Consistent Rewards and Recognition:**
> Reward systems and informal recognition practices have a powerful effect on strengthening or reshaping an organization's culture.
- **Support Workforce Stability and Communication:**
> A strong culture depends on a stable workforce.
- Organizational stories, rituals, ceremonies, and organizational metaphors are rarely written down.
- It takes time for employees to fully understand an organization's culture.
- The organization's culture can disintegrate during periods of high turnover.
- **Attraction-Selection-Attrition (ASA) Theory:**
- Organizations have a natural tendency to attract people with values that are consistent with the organization.
- **Attraction:**
- Avoid prospective employees whose values seem incompatible with the employer's values.
- **Selection:**
- Assess how well a job candidate *fits in* with the company's culture.
- **Attrition:**
- People seek workplaces that are congruent with their personal values.
***
**12.6 - Organizational Socialization**
- **Organizational Socialization:**
> Process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in an organization.
- Helps newcomers adjust to coworkers and work procedures.
- **Learning and Adjustment Process:**
- Organizational socialization is a **learning process** because newcomers try to make sense of the company's workplace and dynamics.
- Learning expectations, power dynamics, culture, history, and jargon.
- Formation of relationships with people from whom they can *learn the ropes*.
- Supports *organizational comprehension*.
- Organizational socialization is an **adjustment process** because individuals need to adapt to their new work environment.
- Development of new work roles that reconfigure their social identity.
- **Stages of Organizational Socialization:**
![[A022 - Stages of Organizational Socialization.png | 600]]
1. **Preemployment Socialization:**
- Actively searching about the company and forming expectations.
- Learning and adjustment that occurs before the first day of work.
- Relies on indirect information, which is often distorted.
- Many companies only describe positive aspects of the job and company.
- Applicants hide negative information, act out of character, and embellish past information.
- Employers are reluctant to ask some types of questions.
- Applicants avoid asking questions about salaries and promotion opportunities.
2. **Encounter:**
- Newcomers test how well their expectations fit reality.
- **Reality Shock:** Stress that results when employees perceive discrepancies between their preemployment expectations and the job reality.
- **Unmet Expectations:** When the employer does not deliver on its promises.
- **Unrealistic Expectations:** Distorted work expectations formed from information exchange conflicts.
3. **Role Management:**
- Occurs when employees make the transition from newcomers to insiders.
- Strengthening of relationships with coworkers and supervisors.
- Practice of new role behaviors.
- Adoption of attitudes and values consistent with their new positions and the organization.
- **Realistic Job Preview (RJP):**
> Method in which job applicants are given a balance of positive and negative information about the job and work context.
- Helps job applicants decide for themselves whether their skills and values are compatible with the job.
- Tend to reduce turnover and increase job performance.
- They help develop more accurate preemployment expectations.
- Socialization agents play a central role in the socialization process.
- Supervisors provide technical information and feedback.
- Coworkers are easily accessible, can answer questions, and serve as role models for appropriate behavior.
- <u>Organizational socialization is most successful when companies help newcomers strengthen their social bonds with other employees</u>.

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> ### 013 - Organizational Change
> Class Notes - November 16, 2023
> Emilio Soriano Chávez
> ***
> <span style="color:#e74c3c">Organizational Behavior</span>
> Spring 2023
***
**13.0 - Video Lecture Notes**
- **Lewin's Force Field Analysis Model:**
- In every organization, there are forces driving for change and forces restraining for change.
- **Driving Forces:**
- Encourage organization to evolve.
- Have new policies.
- New leadership.
- Environmental changes.
- New regulations.
- Economic crises.
- New competitors.
- **Restraining Forces:**
- Employee resistance.
- People who benefit the way things are right now.
- **Organizational Inertia:**
- Tendency to keep going in the same direction.
- Changing a lot of things requires a lot of work.
- Change makes people anxious.
- Change is episodic.
- Only happens sometimes.
- Most of the time, organizations are in a *frozen stage*, where restraining forces are winning and keep things the way they are.
- Sometimes, we enter an **unfreezing period**.
- Not necessarily common.
- Driving forces overcome restraining forces.
- **Causes:**
- Driving forces became stronger.
- Restraining forced became weaker.
- Both.
- We can make the organizational change.
- **Refreezing Period:**
- Refreeze into a new status quo.
- Hopefully, we have done our organizational change.
- Restraining forces triumph over the driving forces.
- **Resistance to Change:**
- Some compose restraining forces.
- Some are expected from employees when we offer an organizational change.
- **Negative Valence (Self-Interest):**
- Cost-benefit analysis.
- Things are better right now than with the change.
- May be accurate or not.
- Lots of uncertainty, especially people with high neuroticism or need for stability.
- More likely to be comforted with anxiety.
- **Fear of the Unknown:**
- Uncertainty.
- If people do not know, this makes them very anxious.
- People stress and do poor work, leave the organization, or do gossip and political maneuvering.
- ***Not Invented Here* Syndrome:**
- If people do not feel they had a part in coming up with an idea.
- **Breaking Routines:**
- People have to re-learn how to do work and make decisions.
- Breaking routines creates more work and anxiety.
- **Incongruence between Existing Team and Organization Norms and Systems:**
- If the change's procedures and expectations does not include changing norms or systems, the change will not be a good fit for the organization.
- **Overcoming Resistance to Change:**
- How we want to help employees overcome resistance to change.
- **Communicate:**
- Get people on board with the premise.
- Create sense of urgency and need.
- People need to understand why the change is necessary.
- **Learning Approach:**
- Opportunity fro growth.
- Understand and feedback.
- Everyone needs to adapt and learn, but we can do it together as an organization.
- Learning to be better, not necessarily succeeding.
- Allows time to pass to people can adjust and acclimate to ideas.
- **Encourage Employee Involvement in the Process:**
- Directly -> Identifying what needs to change or how.
- Negotiating -> What do you think or need.
- Coalitions -> Interest groups who want things accomplished. We can address them.
- Involving people makes them more likely to be *bought in*.
- Do not ask people to come up with recommendations and then ignore them.
- **Stress Management Aids:**
- Recognize that change is hard for everyone.
- Takes time and energy.
- Team-building activities, counselors, relaxation, vacation.
- Most common way is for managers to check on their employees.
- **Coercion:**
- Threaten and punish your way into change.
- *Get on board or get out*.
- Almost always there are better options.
- **Pilot Project:**
- *Show that the change works*.
- Start with a small division in the organization and show that it is successful there.
- May also naturally diffuse.
- Sometimes, changes do not go well, so pilot projects are good for this.
- Will tell us timely if it does not work.
- **Approaches for Organizational Change:**
- **Action Research Approach:**
- Focuses on fixing problems.
- Identify and solve problems.
- Balance changing attitudes and behaviors with doing research to understand problems and testing.
- *Usually the default approach*.
- **Appreciative Inquiry Approach:**
- Focus on positively building strengths and capabilities rather than identifying problems.
- *What are we good at that we can build on to be better?*.
- *What makes us unique?*.
- Does not focus on the idea that an organization is a problem that we need to fix.
- Instead, we want to build on the great things that we do.
- Based on positive psychology.
- It is recommended to do both approaches.
- **Cultural Change:**
- It is hard to change an organizational culture intentionally.
- Multiple pieces that contribute to or are affected by the culture.
- Norms, values, and assumptions that cultures are built on are often unspoken.
- Socially created and hard to change.
- It is possible to change.
- *Top-down* and *bottom-up* processes need to meet.
- **5 Keys to make Cultural Change Stick:**
1. If we want a cultural change, we need a mach between our culture and our strategy.
- What are we wanting to accomplish as an organization?
- This needs to be aligned with your culture.
- Know what your strategy and your culture is.
- If we do not understand them, change will not be consistent and will not make sense.
- Be specific.
- Substance and specificity.
2. Focus on shifting a few critical behaviors.
- What is actually going on int he organization.
- What are the root causes that tell you that you need to change things.
- Understand what behaviors we want from our employees.
- *Key levers* to push to reinforce culture.
- What few key things can we push that will reinforce and underpin the whole change in the way of thinking.
- *Building from the bottom up*.
3. Honor the strengths of your existing culture.
- Appreciative Inquiry Approach
- Understand your strengths an good practices already going on in the organization.
- Or in small departments or clusters.
- Build on these strengths.
- Do not *build the ship from scratch*.
- Build self-esteem and self-efficacy on people.
4. Integrate formal and informal intervention.
- Changes should be informal and formal.
- Informal:
- *Walk the walk*.
- How you talk to employees.
- Criteria to make decisions.
- How you direct managers to talk to their subordinates.
5. Measure and monitor the change.
- We cannot tell if its working if we do not measure it.
- Figure out key metrics and milestones.
- What is the evidence that the change is working.
- Know ahead of time.
- **Performance Indicators:**
- Sales Numbers
- Attendance Numbers
- Customer Retention
- Know how these metrics will be affected.
- **Critical Behaviors:**
- Behaviors that are consistent with the change we want to make.
- **Milestones:**
- Key points in the cultural change project process.
- See if they are met on schedule and on appropriate level of performance.
- Change sin underlying beliefs, feelings and mindsets in ways that our cultural change is influencing them how we want.
- **Takeaways:**
- Organizational change can be hard.
- Lots of reasons that employees resist change.
- There are ways to get employees onboard with the change.
- The strategy should be a function on why they are resisting the change.
- Different tools are suitable for fixing different problems.
- Cultural change is particularly challenging.
- Intangible
- Large socially constructed element. (bottom up)
- To do *top down* stuff we have to meet with the *bottom up* stuff.
- We need to understand underlying problems and strengths.
- Not easy or quick.
- If we take the time to be intentional, understand things, and monitor and make corrections, we can do it.
- When we do an organizational change, everything is affected.
- Think about all the levels.
***
**13.1 - Lewin's Force Field Analysis Model**
- Organizations operate as open systems.
- They need to continually evolve with ongoing changes in their external environment.
- **Force-Field Analysis:**
> Model of system-wide change that helps change agents diagnose the forces that drive proposed organizational change.
- Developed by Kurt Lewis.
- **Driving forces** push organizations towards a new state of affairs.
- New Competitors
- New Technologies
- Evolving Client Expectations
- Corporate Leaders
- **Restraining forces** maintain the *status quo* and are commonly called *resistance to change*.
- <u>Stability occurs when driving and restraining forces are in equilibrium (equal strength)</u>.
- **Unfreezing:**
> First part of the change process. The change agent produces disequilibrium between driving and restraining forces.
- **Refreezing:**
> Systems and structures are introduced to reinforce and maintain desired behaviors.
- Effective change occurs by:
- Unfreezing -> Moving to Desired Condition -> Refreezing
***
**13.2 - Understanding Resistance to Change**
- Resistance is a common and natural human response.
- *Even when people support change, they assume that is others who need to do the changing*.
- Change agents sometimes interpret resistance to change as relationship conflict.
- They attack the competence of those who resist the change.
- This escalates the conflict and generates stronger resistance to the change initiative.
- It is more productive to view resistance to change as task conflict.
- Resistance can be viewed as a signal that the change agent has not prepared employees for change, or that the change initiative should be altered.
- Giving employees an opportunity to discuss concerns improves procedural justice and decision making.
- Constructive conversations generate a feeling of fairness among employees.
- Resistance is motivated behavior.
- Change agents can harness the motivational force to strengthen commitment to the change initiative.
- **Reasons that Employees Resist Change:**
- **Negative Valence of Change:**
> When employees believe that the post-change situation will have more negative than positive outcomes.
- Imperfect application of the rational choice decision-making model to estimate outcomes.
- Mainly considers how the change affects employees personally.
- **Fear of the Unknown:**
> Organizational change has a degree of uncertainty, and employees assume the worst when they are unsure of the outcomes.
- Associated with a lack of personal control.
- **Status Quo Bias:** Uncertainty in change is less desirable than the certainty of the status quo.
- **Not-Invented-Here Syndrome:**
> When employees oppose change initiatives that are introduced by people outside of their group.
- More common among employees who are responsible for the knowledge or initiative.
- **Breaking Routines:**
> Resisting initiatives that require people to break automated routines and learn new role patterns.
- Unless new patters are reinforced, employees tend to revert to their past routines.
- **Incongruent Team Dynamics:**
> Conforming to existing team norms may discourage employees from accepting organizational change.
- **Incongruent Organizational Systems:**
> When misaligned rewards, systems, patterns, or criteria *pull people back* to their old attitudes and behavior.
***
**13.3 - Unfreezing, Changing, and Refreezing**
- **Effective Change (Lewin's Force Field Analysis Model):**
1. Unfreezing the current situation.
2. Moving to a desired condition.
3. Refreezing the system to maintain the desired state.
- **Unfreezing:**
- Occurs when driving forces are stronger than restraining forces.
- **Strategies:**
- **Increase the Driving Forces:**
- Motivate employees to change through fear or threats.
- Rarely works, as this strategy is usually met with an equal and opposing increase in restraining forces.
- **Weaken or Remove Restraining Forces:**
- Produces no motivation for change.
- This strategy *clears the pathway* for change, but does not motivate anyone to go there.
- **Do Both:**
- Increase the driving forces and reduce or remove the restraining forces.
- Create urgency for change and lessen motivation to oppose the change.
- **Creating an Urgency for Change:**
- There are rare situations when the forces of change are widely known and worrisome to employees.
- In this case, employees are motivated to dive into new practices.
- One example is the COVID-19 pandemic.
- Most of the time, leaders *buffer* employees from the external environment.
- Driving forces are then hardly felt by anyone below the top executive level.
- Consequently, employees do not understand the need to change.
- <u>The change process needs to begin by making the external forces for change known to employees</u>.
- This can be done by putting executives and employees in direct contact with customers.
- Dissatisfied customers represent a compelling drive force for change.
- When organizations perform well, decision makers become less vigilant about external threats and more resistant to change.
- Creating a need for change requires a lot of persuasive influence.
- Employees may see this strategy as manipulative, which undermines trust in the change agent.
- Motivation can be developed through a vision of a more appealing future.
- **Strategies for Minimizing Resistance to Change:**
| Strategy | Description | When to Apply | Problems |
|:--------------------:| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- |
| Communication | Leaders motivate employees to support change by telling them about external threats and opportunities, as well as illuminating the future and reducing fear of the unknown. | When employees do not feel urgency for change or do not know how the change will affect them. | Time-consuming and costly. |
| Learning | Helps employees perform better following the change and increases readiness for change by strengthening the belief about working successfully in the new situation (*self-efficacy*). | When employees need to break old routines. | Time-consuming, costly, and some employees may not be able to learn new skills. |
| Employee Involvement | Involved employees feel more personally responsible for successful implementation of the change. This minimizes *not-invented-here* syndrome and fear of the unknown. | When change requires more employee commitment. | Very time-consuming. May lead to poor decisions if employee interests are not compatible with organizational needs. |
| Stress Management | Helps employees cope with changes and minimizes resistance by reducing negative valence and fear of the unknown. | When communication, training, and involvement do not ease worries. | Time-consuming an expensive. |
| Negotiation | Promise of benefits in exchange for compliance. | When employees will lose something of value from the change, or the change must happen quickly. | Expensive. Tends to produce compliance, but not commitment. |
| Coercion | Assertive influence behaviors to ensure compliance. Confrontation and punishment to force adherence. | When other strategies are ineffective and the company needs to change quickly. | Leads to subtler forms of resistance and long-term antagonism. |
- **Refreezing Desired Conditions:**
- Leaders need to refreeze new behaviors by realigning organizational systems and team dynamics with the desired changes.
- Organizational rewards are powerful systems to refreeze behaviors.
- Feedback mechanisms help employees learn how well they are moving towards desired objectives.
- *What gets measured, gets done*.
***
**13.4 - Leadership, Coalitions, and Pilot Projects**
- **Elements in Effective Change Processes:**
- **Transformational Leadership:**
- Effective change requires *change champions* that apply the elements of transformational leadership.
- Leaders develop a vision of the organization's desired future state (**strategic vision**).
- Provides sense of direction.
- Establishes success factors.
- Provides emotional foundation.
- Minimizes fear of he unknown.
- Leaders communicate the vision in meaningful ways and act in ways consistent with that vision.
- **Coalitions and Social Networks:**
- Change agents cannot lead the initiative alone.
- **Guiding Coalition:**
- Change agents need assistance of people with a similar degree of commitment.
- Ideally, this includes employees from most levels of the organization.
- Members should be *influencers* who are highly respected by peers.
- **Social Networks:**
> Structures of people connected to each other by one or more forms of interdependence.
- Coalition members support change by feeding into these networks.
- Participants have high trust, so opinions are more persuasive.
- They provide better opportunity for behavior observation.
- Social networks represent the channels through which news and opinions are transmitted.
- **Viral Change:**
> Variation of word-of-mouth and viral marketing where information is seeded to a few people and then spread to others through friendship connections.
- **Pilot Projects:**
> Introducing change to one work unit of the organization.
- Tests the effectiveness of and employee support for the transformation.
- More flexible and less risky than a company-wide initiative.
- Easier to select groups with high readiness for change.
- **Diffusion of Change:**
1. Employees are more likely to adopt the practices of a pilot project when they are motivated to do so.
2. Employees must have the ability to adopt practices introduced in the pilot project.
3. Pilot projects get diffused when employees have clear role perceptions.
4. Employees require supportive situational factors (resources and time) to participate in the pilot study.
***
**13.5 - Approaches to Organizational Change**
- **Action Research Approach:**
> Problem-focused change process that combines:
> - **Action Orientation:** Changing attitudes and behavior.
> - **Research Orientation:** Testing theory though data collection and analysis.
- The change process needs to be *action-oriented*, as the goal is to improve workplace behavior and practices.
- The change process is a *research study* because change agents apply a conceptual framework to a real situation.
- Highly participative, as it requires the knowledge and commitment of members in the system.
- **Action Research Process:**
![[A023 - Action Research Process.png | 600]]
1. **Form Client-Consultant Relationship:**
> Consultant determines the client's readiness for change.
- Assume that the change agent originates outside the system (like a consultant).
2. **Diagnose the Need for Change:**
> Diagnose the problem to determine the appropriate direction for the change effort.
- Relies on systematic analysis of the situation (gathering and analyzing data about an ongoing system).
- Involves employees so they understand, support, and improve the change method.
3. **Introduce Intervention:**
> Apply one or more actions to correct the problem.
- *Incremental Change* -> The organization fine-tunes the system and takes small steps towards a desired state.
- *Rapid Change* -> The system is overhauled decisively and quickly.
4. **Evaluate and Stabilize Change:**
> Evaluate the effectiveness of the intervention against the standards established in the diagnostic step.
- If the activity has the desired effect, the change agent and the participants need to stabilize the new conditions.
- *Refreezing process*.
- **Appreciative Inquiry Approach:**
> Organizational change strategy that directs the group's attention away from its own problems and focuses participants on the group's potential and positive elements.
- Emphasizes building on strength rather than trying to directly correct problems.
- **Positive Organizational Behavior:**
> Perspective that focuses on building positive qualities and traits within individuals as opposed to focusing on what is wrong with them.
- **Principles of Appreciative Inquiry:**
- **Positive Principle:** Focusing on positive events produces more positive change.
- **Constructionist Principle:** The questions we ask and the language we use construct different realities.
- **Simultaneity Principle:** Inquiry and change are simultaneous, not sequential.
- **Poetic Principle:** Organizations are open books, so we have choices in how they may be perceived.
- **Anticipatory Principle:** People are motivated and guided by the vision they see and believe in for the future.
- **Four-D Model of Appreciative Inquiry:**
![[A024 - Four-D Model of Appreciative Inquiry.png | 500]]
1. **Discovery:** Identifying the positive elements of the organization.
2. **Dreaming:** Envisioning what might be possible in an ideal organization.
3. **Designing:** Forming a common mental model of *what should be*.
4. **Delivering (Destiny):** Establishing specific objectives based on the model of *what will be*.
***
**13.6 - Cross-Cultural and Ethical Issues in Organizational Change**
- **Cultural Issues with Organizational Change Practices:**
- Many are built around Western cultural assumptions and values.
- These may differ from and conflict with other cultures.
- They often assume change has a beginning and an ending in a logical linear sequence.
- Some cultures have an interconnected view of change.
- Some interventions assume effective organizational change is punctuated by tension and overt conflict.
- This is incompatible with cultures that emphasize harmony.
- **Ethical Issues with Organizational Change Practices:**
- Risk of violating individual privacy rights.
- The *action research model* is built on collecting information from members.
- Employees provide personal information and reveal emotions they would not normally divulge.
- Some activities potentially increase management's power by inducing compliance and conformity.
- *Action research* requires participation rather than allowing individuals to get involved voluntarily.
- Some interventions undermine the individual's self-esteem.
- Unfreezing requires that participants *disconfirm* their existing beliefs.

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