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Value, Attitude
And Job Satisfaction
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Values
It shows individual preference of what is right,
good or desirable.
Values have both content and intensity
attributes
Content shows what is important to you
Intensity shows how much important that is for
you
When we combine both this attributes than
person value system is obtain.
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Values are basic convictions that a
specific mode of conduct or end state of
existence is socially or personally
preferable to an opposite or converse
mode of conduct or end state of existence.
Value System-A hierarchy based on the
ranking of an individual's values in term ofintensity.
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Importance of values- How it influence
attitudes and behavior
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Types of Values
Milton Rokeach created the Rokeach
Value Survey (RVS).
The RVS consists of two sets of values,
with each set containing 18 individual
value items,
Terminal values- Desirable end states of
existence, the goals that a person would
like to achieve during his lifetime.
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Instrumental values- Preferable mode of
behavior or means of achieving one's
terminal value.
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Terminal values Instrumental values
Comfortable life Ambitious, hardworking,aspiring
Self respect, self esteem Obedient, respectful,dutiful
Social recognition,respect, admiration
Polite, courteous, wellmannered
True friendship, relations Responsible, reliable
wisdom Self controlled, self disciplined
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Values Across Cultures
Hofstedes framework for assessing
cultures:- to analyze variations among
different national cultures Geert Hofstede
conducted survey on more than 1.16lac
IBM employees in 40 countries about their
work related values.
He found 5 value dimensions of nationalculture.
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Power Distance
The degree to which people in a country
accept that power in institutions and
organizations is distributed unequally.
Ranges from relatively equal (low power
distance)- USA
To extremely unequal (higher power
distance)- india
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Individualism vs. collectivism
Individualism is the degree to which
people in a country prefer to act as a
individual rather than member of s group.
Collectivism indicates degree to which
people want to be part of society or group
expect from members of group to look
after them and protect them,
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Quality vs. quantity of life
Quantity- people give value to
assertiveness, acquisition of money and
material goods.
Quality- people values relationships,
concern for others, sensitive and welfare
of others.
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Uncertainty Avoidance- A national culture
attribute describing the extent to which a
society feels threatened by uncertainty and
ambiguous situations and tries to avoidthem.
Long term orientation- emphasize on future
and short term orientation emphasize onpast and present, respect for tradition and
fulfill social obligations.
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Attitudes
It reflect how one feels about something.
Attitude and value are interrelated
3 Component of attitude:
Cognitive: Opinion or believe segment
Affective: Emotional or feeling segment
Behavior: An intention to behave in a certainway toward someone or something
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Types of Attitudes
Job Satisfaction: How positive (Job
satisfaction) or negative (Job
Dissatisfaction) attitude one's has toward
his job.
Job Involvement: It measures the degree to
which a person identifies psychologically
with his job, actively participate in it andconsiders his performance important to self
worth.
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Organization Commitment Now
Occupation Commitment: The degree to
which an employee identifies with a
particular organization and its goals, andwishes to maintain membership in the
organization.
Attitude and Consistency
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Cognitive Dissonance Theory
Any incompatibility between two or more
attitudes or between behavior and
attitudes.
Attitude and workforce divercity
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Job Satisfaction
Its an individual general attitude towards
his job.
2 approaches to find out job satisfaction
among employees
Single global rating
Summation Score
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Effect of Job Satisfaction on
Employee Performance
Productivity: Happy workers are
productive workers.
Absenteeism:
Turnover:
Organization Citizenship Behavior
Customer Satisfaction
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Chapter 4
Motivating
Self and Others
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Motivating Self and Others
What do theories tell us about motivating
ourselves and others?
How do we motivate for specific
organizational circumstances and/or
individual differences?
Are rewards always necessary?
Questions forConsideration
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What Is Motivation?
Motivation
The processes that account for an individuals
intensity, direction, and persistence of effort
toward attaining a goal Intensity: how hard a person tries
Direction: where effort is channeled
Persistence: how long effort is maintained
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Theory X and Theory Y
Theory X Assumes that employees dislike work, will attempt
to avoid it, and must be coerced, controlled, orthreatened with punishment if they are to perform.
Theory Y
Assumes that employees like work, are creative,seek responsibility, and can exercise self-directionand self-control.
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Motivators
Intrinsic
A persons internal desire to do something,
due to such things as interest, challenge, and
personal satisfaction.
Extrinsic
Motivation that comes from outside the
person, such as pay, bonuses, and othertangible rewards.
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Needs Theories of Motivation
Basic idea:
Individuals have needs that, when unsatisfied,
will result in motivation
Maslows hierarchy of needs
Herzbergs two factor theory (motivation-hygiene
theory)
Alderfers ERG theory
McClellands theory of needs
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Maslows Hierarchy of Needs
Physiological
Includes hunger, thirst, shelter, and other
bodily needs
Safety
Includes security and protection from
physical and emotional harm
Social
Includes affection, belongingness,
acceptance, and friendship
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Maslows Hierarchy of Needs
Esteem Includes internal esteem factors such as self-
respect, autonomy, and achievement; and
external esteem factors such as status,recognition, and attention
Self-actualization The drive to become what one is capable of
becoming; includes growth, achieving onespotential, and self-fulfillment
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Exhibit 4-1
Physiological
Safety
Social
Esteem
Self-
actualization
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Herzbergs Motivation-Hygiene
Theory Hygiene factors are necessary, but not
sufficient, for healthy adjustment Extrinsic factors; context of work
Company policy and administration Unhappy relationship with employee's supervisor
Poor interpersonal relations with one's peers
Poor working conditions
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Herzbergs Motivation-Hygiene
Theory
Motivators - the sources of satisfaction Intrinsic factors; content of work
Achievement
Recognition
Challenging, varied or interesting work
Responsibility
Advancement
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Exhibit 4-3 Contrasting Views of
Satisfaction and Dissatisfaction
Satisfaction Dissatisfaction
Traditional view
Satisfaction No satisfaction
Herzberg's view
No dissatisfaction Dissatisfaction
Hygiene Factors
Motivators
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Criticisms of Motivation-Hygiene
Theory The reliability of Herzbergs methodology
is questioned
No overall measure of satisfaction was
used
The theory is inconsistent with previous
research
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Alderfers ERG Theory
Existence Concerned with providing basic material
existence requirements
Relatedness Desire for maintaining important interpersonal
relationships
Growth Intrinsic desire for personal development
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Exhibit 4-4 Summarizing the
Various Needs Theories
HygieneFactors
Need for Achievement
Need for Power
Need for Affiliation
Self-Actualization
Esteem
Affiliation
Security
Physiological
Motivators
Relatedness
Existence
Growth
Maslow Alderfer Herzberg McClelland
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Summary: Hierarchy of Needs
Maslow: Argues that lower-order needs must besatisfied before one progresses to higher-order needs.
Herzberg: Hygiene factors must be met if person is notto be dissatisfied. They will not lead to satisfaction,
however. Motivators lead to satisfaction. Alderfer: More than one need can be important at the
same time. If a higher-order need is not being met, thedesire to satisfy a lower-level need increases.
McClelland: People vary in the types of needs they
have. Their motivation and how well they perform in awork situation are related to whether they have a needfor achievement, affiliation, or power.
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Summary: Impact of Theory
Maslow: Enjoys wide recognition among practisingmanagers. Most managers are familiar with it.
Herzberg: The popularity of giving workers greaterresponsibility for planning and controlling their work can
be attributed to his findings. Shows that more than oneneed may operate at the same time.
Alderfer: Seen as a more valid version of the needhierarchy. Tells us that achievers will be motivated byjobs that offer personal responsibility, feedback, and
moderate risks. McClelland: Tells us that high need achievers do not
necessarily make good managers, since high achieversare more interested in how they do personally.
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Summary: Support and
Criticism of Theory Maslow: Research does not generally validate the
theory. In particular, there is little support for thehierarchical nature of needs. Criticized for how datawere collected and interpreted.
Herzberg: Not really a theory of motivation: Assumesa link between satisfaction and productivity that wasnot measured or demonstrated.
Alderfer: Ignores situational variables.
McClelland: Mixed empirical support, but theory isconsistent with our knowledge of individualdifferences among people. Good empirical support,particularly on needs achievement.
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Process Theories of Motivation
Looks at the actual process of motivation
Expectancy theory
Goal-setting theory
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Expectancy Relationships
The theory focuses on three relationships: Effort-performance relationship
The perceived probability that exerting a given amountof effort will lead to performance.
Performance-reward relationship The degree to which the individual believes that
performing at a particular level will lead to a desiredoutcome.
Rewards-personal goals relationship The degree to which organizational rewards satisfy an
individuals personal goals or needs and and areattractive to the individual.
Exhibit 4-7
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Exhibit 4-7
Steps to Increasing Motivation,
Using Expectancy Theory
Improving Expectancy
Improve the ability of the
individual to perform
Make sure employees have skills
for the task
Provide training
Assign reasonable tasks and goals
Improving Instrumentality Improving Valence
Increase the individual s belief that
performance will lead to reward
Observe and recognize performance
Deliver rewards as promised
Indicate to employees how previous
good performance led to greater
rewards
Make sure that the reward is
meaningful to the individual
Ask employees what rewards they
value
Give rewards that are valued
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Goal-Setting Theory
The theory that specific and difficult goalslead to higher performance. Goals tell an employee what needs to be done and how
much effort will need to be expended.
Specific goals increase performance Difficult goals, when accepted, result in higher performance
than do easy goals
Feedback leads to higher performance than doesnonfeedback.
Specific hard goals produce a higher level of output thandoes the generalized goal of do your best.
The specificity of the goal itself acts as an internal stimulus.
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Management by Objectives
A program that encompasses
Specific goals
Participative decision-making
Explicit time period
Performance feedback
R t th R d
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Responses to the Reward
System Equity Theory
Fair Process
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Equity Theory
Main points
Individuals compare their job inputs and
outcomes with those of others and then
respond so as to eliminate any inequities.
Equity theory recognizes that individuals
are concerned not only with the absolute
amount of rewards for their efforts, butalso with the relationship of this amount to
what others receive.
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Exhibit 4-8 Equity Theory
Person 1Inequity, underrewarded
Equity
Inequity, overrewarded
Ratio of Output to Input Person 1s Perception
Person 2
Person 1
Person 2
Person 1
Person 2
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Responses to Inequity
Change Inputs
Change Outcomes
Adjust Perceptions
Choose a Different Referent
Leave the Field
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Fair Process and Treatment
Historically, equity theory focused on:
Distributive justice
However, equity should also consider
Procedural justice
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Fair Process
Distributive Justice
Perceived fairness of the amount and allocation of
rewards among individuals
Procedural Justice Perceived fairness of the process used to determine
the distribution of rewards
Interactional Justice
The quality of the interpersonal treatment receivedfrom another
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Role of Money
Money is most commonly used reward in
organizations
Money certainly helps some needs get met
But, money is not all employees top
priority
Many emphasize relationships in the
workplace
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Motivating for Specific
Organizational Goals Employee Recognition: Motivating to
Show People Matter Employee recognition plans
Variable-Pay Programs: Motivating forImproved Productivity Individual-based incentives: piece rate
Group-based incentives: gainsharing
Organizational-based incentives: profit sharing,ESOPs
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Variable-Pay Programs
A portion of an employees pay is based onsome individual and/or organizationalmeasure(s) of performance. Individual-based
Piece-rate wages, bonuses
Group-based
Gainsharing
Organizational-based
Profit sharing Employee stock ownership plans (ESOPs)
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Variable Pay Programs
Profit-sharing plans Organization wide programs that distribute
compensation based on some established
formula designed around a companysprofitability.
Employee stock ownership plans (ESOPs) Company-established benefit plans in which
employees acquire stock as part of theirbenefits.
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Motivating Professionals
How are professionals different?
Receive a great deal of intrinsic satisfaction
from their work.
Strong and long-term commitment to theirfield of expertise.
Well paid/Chief reward is work itself.
Value support. More focused on work as central life interest.
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Motivating Contingent Workers
No simple solutions to motivating contingent
workers.
Contingent or temporary workers have little or no job
security/stability; therefore, they dont identify with the
organization or display the commitment of permanent
employees.
Contingent or temporary workers are typically
provided with little or no health care, pensions, or
similar benefits.
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Motivating Contingent Workers
Greatest motivating factor is the
opportunity to gain permanent
employment.
Motivation is also increased if the
employee sees that the job he or she is
doing for the firm can develop saleable
skills.
Motivating Low Skilled Service
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Motivating Low-Skilled Service
Workers Many 15- to 24-year-olds have McJobs with
pay levels near minimum wage
To motivate Employees want more respect
Make jobs more appealing
Raise pay levels
Find unusual ways to motivate:
Flexible work schedules
Broader responsibility for inventory, scheduling, andhiring
Creation of a family atmosphere among employees
Motivating Unionized
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Motivating Unionized
Employees Constraints of contract affect some forms of
rewards
Some unions against pay-for-performance
Additional ideas Create better work environments
Show appreciation
Provide opportunities for training and advancement
Listen to employees concerns
Motivating Public Sector
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Motivating Public Sector
Employees Special challenge
Much work is service-oriented, harder to
measure productivity
Hard to link rewards to performance
What to do
Goal setting helps
Goal difficulty and goal specificity help improvemotivation
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Are Rewards Overrated?
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Are Rewards Overrated?
Cognitive Evaluation Theory Allocating extrinsic rewards for behaviour
that had been previously intrinsically
rewarded tends to decrease the overall
level of motivation.
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Summary
Need Theories
Be aware that individuals differ in their levels and
types of needs
Goal Setting Theory Clear and difficult goals lead to higher levels of
employee productivity.
Expectancy Theory
Offers a relatively powerful explanation of employeeproductivity, absenteeism, and turnover.
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Implications
Recognize Individual Differences Employees have different needs.
Dont treat them all alike.
Spend the time necessary to understandwhats important to each employee.
Use Goals and Feedback
Allow Employees to Participate inDecisions That Affect Them
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Chapter 5
Group Dynamics
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Groups: ?
Groups Two or more individuals, interacting and
interdependent, who have a stable relationship, acommon goal, and perceive themselves to be a group
Types of Groups Informal groups: a collection of people seeking
friendship and acceptance that satisfies esteemneeds.
Formal groups: a collection of people created to dosomething productive that contributes to the successof the larger organization.
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Exhibit 5-4
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Exhibit 5-4
Stages of Group Development
Stage IForming
Prestage I Stage IIStorming
Stage IIINorming
Stage IVPerforming
Stage VAdjourning
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Stages of Group Development
Stage IV: Performing
The fourth stage in group development, when
the group is fully functional
Stage V: Adjourning The final stage in group development for
temporary groups, characterized by concern
with wrapping up activities rather than taskperformance
Putting the Five-Stage Model
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g g
Into Perspective
Groups do not necessarily progressclearly through the stages one at a time
Groups can sometimes go back to an
earlier stage Conflict can sometimes be helpful to the
group
Context can matter: airline pilots canimmediately reach performing stage
The Punctuated-Equilibrium
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q
Model
First phase The first meeting sets the groups direction.
The first phase of group activity is one of inertia.
Transition
A transition takes place at the end of the first phase,which occurs exactly when the group has used up half itsallotted time.
The transition initiates major changes.
Second phase
A second phase of inertia follows the transition.
Last meeting is characterized by markedly acceleratedactivity
Exhibit 5-5 The Punctuated-
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Equilibrium Model
Completion
Transition
First
Meeting
Phase 1
Phase 2
(High)
(Low)
A (A+B)/2
Time
B
Performa
nce
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Explaining Work-Group Behavior
External Conditions Imposed on Group
Group Member Resources
Group Structure
Group Processes
Group Task
Performance and Satisfaction
External Conditions Imposed on
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External Conditions Imposed on
Group
Organization Overall Strategy
Authority Structure
Formal Regulations
Performance evaluation and reward
system
Organization culture
Physical work setting
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Group Member Resources
Knowledge
Skills
Abilities
Personal Characteristics
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Group Structure
Formal Leadership
Roles
Norms
Status
Size
Composition Cohesiveness
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Roles
A role is a set of expected behaviour
patterns associated with someone
occupying a given position in a social unit.
Role Identity: Certain attitudes andbehaviours consistent with a role
Role Perception: An individuals view of how
he or she is supposed to act in a givensituation
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Roles
Role Expectations: How others believe aperson should act in a given situation
Psychological Contract: Unwritten agreement that
sets out what management expects from the
employee, and vice versa.
Role Conflict: A situation in which an
individual is confronted by divergent role
expectations
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Norms
Acceptable standards of behaviour withina group that are shared by the groups
members
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How Norms Develop
Explicit statements
Critical events
Initial patterns of behaviour
Carry-over behaviour
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Why Norms Are Enforced
Facilitate group survival
Make behaviour predictable
Minimize embarrassment
Express central values
Clarify the groups identity
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Conformity
Adjusting your behaviour to align with thenorms of the group
People conform to reference groups
Important groups to which individuals belong
or hope to belong
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Deviant Workplace Behaviour
Antisocial actions by organizationalmembers that intentionally violate
established norms and that result in
negative consequences for theorganization, its members, or both.
Exhibit 5-3
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Deviant Workplace Behaviour
Category Examples
Production Leaving early
Intentionally working slowly
Wasting resources
Property Sabotage
Lying about hours worked
Stealing from the organization
Political Showing favouritism
Gossiping and spreading rumours
Blaming co-workers
Personalaggression
Sexual harassment
Verbal abuse
Stealing from co-workers
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Status
A socially defined position or rank given togroups or group members by others
Status and norms
Status equity
Status and culture
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Roles in Groups
Task-oriented roles Roles performed by group members to ensure
that the tasks of the group are accomplished
Maintenance roles Roles performed by group members to
maintain good relations within the group
Individual roles Roles performed by group members that are
not productive for keeping the group on task
Exhibit 5-7 Roles That Build Task
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Accomplishment
Initiating
Exhibit 5-7 Roles That Build and
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Maintain a Team
Harmonizing Mediating conflict among other members,
reconciling disagreements, relieving tensions
Compromising Admitting error at times of group conflict
Gatekeeping Making sure all members have a chance to expresstheir ideas and feelings and preventing members
from being interrupted
Encouraging Helping a group member make his or her point.
Establishing a climate of acceptance in the group
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Group Size
Research Evidence Smaller groups faster at completing tasks
When problem solving, larger groups do
better Social loafing-The tendency of individuals to
expend less efforts when working collectively
than working individually.
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Composition
Groupdemography-The degree to whichmembers of a group share common
demographic attributes like age,
experience, qualification and it impact onturnover
Cohorts-Individuals who, as a part of
group hold a common attribute.
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Cohesiveness
Degree to which group members areattracted to each other and are motivated
to stay in the group
Exhibit 5-9 Relationship Between
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Group Cohesiveness, Performance
Norms, and Productivity
Cohesiveness
Low
HighHigh
productivity
Moderate
productivity
Low
productivity
Moderate to
low productivity
Perfor m
anceNorm
s
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Group Task
If task is complex then it need diverseviews, skills and ideas therefore group
discussion required
If task is simple and repetitive than peoplecan better work on it independently.
Exhibit 5-10 Advantages and
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Disadvantages of Diversity
Advantages Multiple perspectives
Greater openness to
new ideas Multiple interpretations
Increased creativity
Increased flexibility
Increased problem-
solving skills
Disadvantages Ambiguity
Complexity
Confusion Miscommunication
Difficulty in reaching a
single agreement
Difficulty in agreeing on
specific actions
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Group Decision Making
Strength of group decision making More complete information and knowledge
Diversity of views
High quality decisions
Weakness of group decision making
Time Consuming and Conformity
Effectiveness and efficiency
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Group Decision Making
Strengths of Group DecisionMaking
Generates more complete information and
knowledge
Offers increased diversity of views
Generates higher-quality decisions
Leads to increased acceptance of a solution
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Weaknesses of Group DecisionMaking
More time consuming
Conformity pressures in groups
Discussion can be dominated by one or a few
members Decisions suffer from ambiguous responsibility
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Groupthink Phenomenon in which the norm for
consensus overrides the realistic appraisal of
alternative courses of action Groupshift
Phenomenon in which the initial positions of
individual members of a group areexaggerated toward a more extreme position
G Thi k
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Group Think
Groupthink (Irving Janis) A mode of thinking (blind conformity) that people engage
in when they are deeply involved in a cohesive in-group,when the members strivings for unanimity override theirmotivation to realistically appraise alternative courses of
action.
Symptoms of Groupthink Excessive optimism
An assumption of inherent morality
Suppression of dissent A desperate quest for unanimity
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Preventing Groupthink Avoid using of groups as rubberstamps.
Urge each group member to think independently.
Bring in outside experts for fresh perspectives.
Assign someone the role of devils advocate.
Take time to consider possible effects andconsequences of alternative courses of action.
G hift
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Group shift
A change in decision risk between thegroup decision and individual decision that
members within the group would make,
can be either toward conservation orgreater risk
It is one of the type of group think
Group Decision-making
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Techniques
Interacting Groups
Brainstorming
Nominal Group Technique
Electronic meeting
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Chapter 8
Conflict andNegotiation
Chapter Outline
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Chapter Outline
Conflict Defined Sources of Conflict
From Potential to Actual Conflict
Conflict Management and Teams Negotiation
Issues in Negotiation
Conflict and Negotiation
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Conflict and Negotiation
How do we manage conflict?
When is conflict functional?
How do we negotiate?
Questions for ConsiderationQuestions forConsideration
Conflict
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Conflict
A process that begins when one party perceivesthat another party has negatively affected, or is
about to negatively affect, something that the
first party cares about.
Functional
Supports the goals of the group and improves its
performance
Dysfunctional
Hinders group performance
Conflict Process
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Conflict Process
Potential opposition or incompatibility
Communication
Structure
personal variables
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Cognition and personalization
Perceived conflict-Awareness by one or
more party of the existence of conditions
that create opportunities for conflict toarise
Felt conflict-emotional involvement in
conflict creating anxiety, tenseness orfrustation
How Structure Can Lead to
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Conflict
Stimulating conflict Size, specialization, and composition of the
group
Too much reliance on participation
Diversity of goals among groups
Ambiguity in precisely defining whereresponsibility for actions lies
Reward systems where one members gain isat anothers expense
Exhibit 8-1 How Conflict Builds
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Exhibit 8 1 How Conflict Builds
Functional:
increased
performance
Dysfunctional:
decreased group
performance
Behaviour
Outcomes
Competing
Collaborating
Compromising
Avoiding
Accommodating
Conflict-handlingIntentions
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Specific Intentions
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Specific Intentions
Competing A desire to satisfy ones interests, regardless of the impact on the other
parties.
Collaborating A situation where the parties to a conflict each desire to satisfy fully the
concerns of all parties
Avoiding The desire to withdraw from or suppress a conflict.
Accommodating The willingness of one party in a conflict to place the opponents
interests above his or her own
Compromising A situation in which each party to a conflict is willing to give up
something
Exhibit 8-2 Dimensions of
C f
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Conflict-Handling Intentions
Cooperativeness
Compromising
Uncooperative
Avoiding
Competing
Cooperative
Accommodating
Collaborating
Assertivene
ss
Unasse
rtive
Asserti v
e
Exhibit 8-4
C fli I i C i
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Conflict Intensity Continuum
Annihilatory
conflict
No
conflict
Overt efforts to destroy
the other party
Aggressive physical attacks
Threats and ultimatums
Assertive verbal attacks
Overt questioning or
challenging of others
Minor disagreements or
misunderstandings
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Conflict outcomes
Functional or dysfunctional conflict
Conflict Resolution Techniques
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Conflict Resolution Techniques
Problem Solving Shared Goals
Expansion of Resources
Avoidance
Authoritative Command
Types of Conflict
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Types of Conflict
Cognitive Conflict related to differences in perspectives and
judgments
Task-oriented
Results in identifying differences
Usually functional conflict
Affective
Emotional conflict aimed at a person rather than an
issue
Dysfunctional conflict
Reducing Group Conflict
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Reducing Group Conflict
Team members reduced conflict using thefollowing tactics: Worked with more, rather than less, information
Debated on the basis of facts
Developed multiple alternatives to enrich the level ofdebate
Shared commonly agreed-upon goals
Injected humour into the decision process
Maintained a balanced power structure Resolved issues without forcing consensus
Summary and Implications
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Summary and Implications
Conflict can be either constructive or
destructive to the functioning of a group.
An optimal level of conflict:
Prevents stagnation Stimulates creativity
Releases tension
And initiates the seeds for change
Inadequate or excessive levels of conflict canhinder group effectiveness.
Summary and Implications
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Summary and Implications
Dont assume there's one conflict-handlingintention that is always best. Use competition when quick, decisive action is vital
Use collaboration to find an integrative solution
Use avoidance when an issue is trivial Use accommodation when you find youre wrong
Use compromise when goals are important
Negotiation is an ongoing activity in groups
Intergroup conflicts can also affect anorganizations performance.
Point-CounterPoint
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o t Cou te o t
Conflict Is Goodfor theOrganizationv Conflict is a means by which
to bring about radical changev
Conflict facilitates groupcohesivenessv Conflict improves group and
organizational effectivenessv Conflict brings about a slightly
higher, more constructivelevel of tension
All Conflicts AreDysfunctional!v The negative consequences
from conflict can bedevastating
v Effective managers build
teamwork not conflictv Competition is good for an
organization, but not conflictv Managers who accept and
stimulate conflict dont survivein organizations
Negotiation
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g
A process in which two or more partiesexchange goods or services and attempt to
agree upon the exchange rate for them
Distributive bargaining
Negotiation that seeks to divide up a fixed amount of
resources; a win-lose situation
Integrative bargaining
Negotiation that seeks one or more settlements that
can create a win-win solution
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How to Negotiate
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g
Assess personal goals, consider othersgoals, develop strategy
Identify target and resistance points
Target: what one would like to achieve
Resistance: lowest outcome acceptable
Identify BATNA
BestAlternative To a NegotiatedAgreement
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Gender Differences
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Women More inclined to be concerned with feelings and
perceptions, and take a longer-term view
View the bargaining session as part of an overall
relationship Tend to want all parties in the negotiation to beempowered
Use dialogue to achieve understanding
Men View the bargaining session as a separate event Use dialogue to persuade
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Alcohol Consumption and
Negotiations
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Negotiations
Sober negotiators Were were more likely to look for win-win solutions
Did not do well when bargaining against someone
who had been drinking, as the drinker tended to be
far more aggressive
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Conciliator
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Trusted third party who provides aninformal communication link between the
negotiator and the opponent
Informal link Used extensively in international, labour,
family and community disputes
Fact-find, interpret messages, persuade
disputants to develop agreements
Mediator
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A neutral third party who facilitates a negotiatedsolution by using reasoning, persuasion, andsuggestions for alternatives Labour-management negotiations and civil court
disputes Settlement rate is about 60%; satisfaction rate is
about 75%
Participants must be motivated to bargain and settle
Best under moderate levels of conflict
Mediator must appear neutral and non-coercive
Arbitrator
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Has authority to dictate an agreement Voluntary (requested) or compulsory
(imposed by law or contract)
Always results in a settlement May result in further conflict
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Chapter 12
OrganizationalStructure
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Organizational Structure
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What are the key elements oforganizational structure?
How do traditional organizational designscompare with newer organizationalstructure?
Why do organizational structures differ?
Questions forConsideration
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Exhibit 12-1 Pyramidal
Organizational Structure
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Organizational Structure
Exhibit 12-2
Flat Organizational Structure
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Flat Organizational Structure
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Work Specialization
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The degree to which tasks in the organizationare subdivided into separate jobs Also known as division of labour
Benefits
Efficiency Less time changing tasks, putting equipment away
Easier to train employees
Downsides
Boredom, stress, low productivity, high turnover,increased absenteeism
Departmentalization
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The basis on which jobs are grouped together Types
Functional
Product
Geographic
Process
Customer
Mixed
Exhibit 12-4 Functional
Departmentalization
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Departmentalization
President/
CEO
Counsellor of
the President
ExecutiveSecretary
Director, Quality
Assurance
VP Business
Development
Financial
Controller
VP
Operations
Executive
Vice-President
Composites Atlantic
Board of
Directors
Exhibit 12-5
Product Departmentalization
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Product Departmentalization
Wireless
Networks
Enterprise
Networks
Broadband
Networks
Public Carrier
Networks
Nortel
Exhibit 12-6 Geographic
Departmentalization
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Departmentalization
Royal Bank
Canada Asia Europe United States
Exhibit 12-7
Customer Departmentalization
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Customer Departmentalization
Dell Canada
IndividualUsers
EducationalUsers
FederalGovernment Users
Large BusinessUsers
Small/MediumBusiness Users
Chain of Command
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Two aspects Authority
Who has the right to give orders and expect them to be
obeyed
Unity of command Subordinates should have only one superior
Todays organizations
Fewer follow chain of command
More have decision making opportunities at all levels
Span of Control
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Number of subordinates that can be efficientlyand effectively managed
Small span Expensive, more managers
Makes vertical communication more complicated Encourages tight supervision and discourages
autonomy
Larger span
Empowers workers Speeds up decisions
Exhibit 12-8 Contrasting Spans
of Control
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of Control
1
2
3
4
5
6
7
(Highest)
Assuming span of 4
Operatives
Managers (Levels 1 6) = 1365
= 4096 Operatives
Managers (Levels 1 4) = 585
= 4096
1
4
16
64
256
1024
4096
Assuming span of 8
4096
512
64
8
1
Members at each level
OrganizationalL
eve
l
Centralization and
Decentralization
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Decentralization
Are decisions concentrated at top(centralization) or pushed to lower levels
(decentralization)?
There is a marked trend towarddecentralization
Formalization
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How standardized are the jobs? High formalization means employees have
little discretion
Low formalization means employees havemore freedom
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Simple Structure
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Strengths Simplicity: fast, flexible, inexpensive
Weakness
Works best in small organizations Can slow down decision making in larger
organization
Can be risky as it relies on one person tomake all decisions
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Matrix Organization
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Breaks the unity of command principle Employees have two bosses
Strengths
Facilitates coordination when there are many
activities
More communication
Efficient allocation of specialists
Disadvantages Power struggles, confusion, stress
Exhibit 12-11
Matrix Structure
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ProgramsAcademicdepartments
Accounting
Finance
Administrativestudies
Information anddecision sciences
Marketing
Organizationalbehaviour
Quantitativemethods
Undergraduate Masters Ph.D.. Research
ExecutiveDevelopment
CommunityService
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Modular Organization
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A small core organization that outsources majorbusiness functions
Advantages Can devote technical and managerial talent to most
critical activities Can respond more quickly to environmental changes
Increased focus on customers and markets
Disadvantages
Reduces managements control over business Relies on outsiders to get job done
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Virtual Organization
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A continually evolving network of independent companiessuppliers, customers, even competitorslinkedtogether to share skills, costs, and access to oneanothers markets
Advantages
Organizations can share costs and skills Provides access to global markets
Increases market responsiveness
Disadvantages
Companies give up operational and strategic control towork together
Managers need to be more flexible, acquire new skills
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Exhibit 12-15
Model of the Environment
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Stable
ComplexSimple
Abundant
Scarce
Dynamic
Exhibit 12-16Organization Structure: Its
Determinants and Outcomes
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Determinants and Outcomes
determines leads to
Causes
Strategy
Size Technology
Environment
Moderators
Individualdifferences
Cultural
norms
Outcomes
Performance
Satisfaction
Structuraldesigns
Mechanistic Organic
Summary and Implications
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An organizations internal structure contributes toexplaining and predicting behaviour.
An organizations structure reduces ambiguity foremployees.
The specific effect of structural designs on performance
and satisfaction is moderated by employees individualpreferences and cultural norms.
Structural variables like work specialization, span ofcontrol, formalization, and centralization are objective
characteristics that can be measured by organizationalresearchers.
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Basic Approaches toLeadership
Chapter 11
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Trait Theories
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LimitationsLimitations::
No universal traits found that predictNo universal traits found that predict
leadership in all situations.leadership in all situations.
Traits predict behavior better in weakTraits predict behavior better in weakthan strong situations.than strong situations.
Unclear evidence of the cause and effectUnclear evidence of the cause and effect
of relationship of leadership and traits.of relationship of leadership and traits.
Better predictor of the appearance ofBetter predictor of the appearance of
leadership than distinguishing effectiveleadership than distinguishing effective
and ineffective leaders.and ineffective leaders.
LimitationsLimitations:: No universal traits found that predictNo universal traits found that predict
leadership in all situations.leadership in all situations.
Traits predict behavior better in weakTraits predict behavior better in weak
than strong situations.than strong situations.
Unclear evidence of the cause and effectUnclear evidence of the cause and effect
of relationship of leadership and traits.of relationship of leadership and traits.
Better predictor of the appearance ofBetter predictor of the appearance ofleadership than distinguishing effectiveleadership than distinguishing effective
and ineffective leaders.and ineffective leaders.
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Ohio State Studies
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Initiating Structure
The extent to which a leader is likely to defineand structure his or her role and those of sub-ordinates in the search for goal attainment.
Consideration
The extent to which a leader is likely to havejob relationships characterized by mutual
trust, respect for subordinates ideas, andregard for their feelings.
University of Michigan StudiesEmployee-Oriented Leader
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Employee Oriented Leader
Emphasizing interpersonal relations; taking apersonal interest in the needs of employeesand accepting individual differences amongmembers.
Production-Oriented Leader
One who emphasizes technical or taskaspects of the job.
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Contingency TheoriesFiedlers Contingency Model
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Fiedler s Contingency Model
The theory that effective groups depend on aproper match between a leaders style ofinteracting with subordinates and the degreeto which the situation gives control and
influence to the leader.Least Preferred Co-Worker (LPC) Questionnaire
An instrument that purports to measurewhether a person is task- or relationship-oriented.
Fiedlers Model: Defining theSituation
Leader Member Relations
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Leader-Member Relations
The degree of confidence, trust, and respectsubordinates have in their leader.
Position Power
Influence derived from ones formal structuralposition in the organization; includes power tohire, fire, discipline, promote, and give salaryincreases.
Task Structure
The degree to which the job assignments areprocedurized.
Cognitive Resource Theory
Cognitive Resource Theory
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Research Support:
Less intelligent individuals perform better in leadership
roles under high stress than do more intelligent
individuals.
Less experienced people perform better in leadership
roles under low stress than do more experienced people.
Research Support:
Less intelligent individuals perform better in leadership
roles under high stress than do more intelligent
individuals.
Less experienced people perform better in leadership
roles under low stress than do more experienced people.
Cognitive Resource Theory
A theory of leadership that states that stresscan unfavorably affect a situation and thatintelligence and experience can lessen theinfluence of stress on the leader.
Hersey and Blanchards
Situational Leadership Theory
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Situational Leadership Theory (SLT)A contingency theory that focuses onfollowers readiness.
Leader: decreasing needfor support and supervisionLeader: decreasing needfor support and supervision
Follower readiness:
ability and willingness
Follower readiness:
ability and willingness
Unable andUnable and
UnwillingUnwilling
Unable butUnable but
WillingWilling
Able andAble and
WillingWilling
DirectiveDirective High Task and RelationshipHigh Task and Relationship
OrientationsOrientations
SupportiveSupportive
ParticipativeParticipative
Able andAble and
UnwillingUnwilling
MonitoringMonitoring
Leadership Styles andFollower Readiness
(Hersey and Blanchard)
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(Hersey and Blanchard)WillingUnwilling
Able
Unable DirectiveDirective
High TaskHigh Task
andand
RelationshipRelationship
OrientationsOrientations
SupportiveSupportive
ParticipativeParticipativeMonitoringMonitoring
FollowerReadiness
LeadershipLeadership
StylesStyles
LeaderMember ExchangeTheory
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Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, andsubordinates with in-group status will have
higher performance ratings, less turnover,and greater job satisfaction.
Path-Goal TheoryPath-Goal Theory
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Path-Goal Theory
The theory that it is the leaders job to assistfollowers in attaining their goals and toprovide them the necessary direction and/orsupport to ensure that their goals are
compatible with the overall objectives of thegroup or organization.
Directive Leader
Supportive Leader
Participative Leader
Achievement oriented Leader
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Contingency Variables in the
Leader-Participation Model
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1. Importance of the decision
2. Importance of obtaining follower commitment
3. Whether the leader has sufficient information to make a good decision.
4. How well structured the problem is
5. Whether an autocratic decision would receive follower commitment.
6. Whether followers buy into organizational goals.7. Whether there is likely to be conflict among followers over solutions
alternatives.
8. Whether followers have the necessary information to make good
decision.
9. Time constraints on the leader that may limit follower involvement
10.Importance of using participation as a tool for developing follower
decision skills.
DR.SANDEEP RAMAKANT SAWANT.. 11189
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Chapter 12
Contemporary
Issues in
Leadership
Trust: The Foundation ofLeadership
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Trust
Apositive expectation that another will notthrough words, actions, or decisionsact
opportunistically.Trust is a history-dependent process(familiarity) based on relevant but limitedsamples of experience (risk).
Dimensions of Trust Integrity
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Integrity
honesty and truthfulness.
Competence
an individuals technical
and interpersonal
knowledge and skills.
Consistency
an individuals reliability,
predictability, and goodjudgment in handling
situations.
Loyalty the willingness to
protect and save face
for another person.
Openness
reliance on the person
to give you the full
truth.
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Three Types of TrustDeterrence-based Trust
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Trust based on fear of reprisal if the trust isviolated.
Identification-based Trust
Trust based on a mutual understanding ofeach others intentions and appreciation ofthe others wants and desires.
Knowledge-based Trust
Trust based on
behavioral predictabilitythat comes from ahistory of interaction.
Basic Principles of Trust
Mistrust drives out trust
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Mistrust drives out trust.
Trust begets trust.
Growth often masks mistrust.
Decline or downsizing tests the highest levels of trust.
Trust increases cohesion.
Mistrusting groups self-destruct.
Mistrust generally reduces productivity.
Framing: Using Words toShape Meaning and Inspire
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Others
Leaders use framing (selectively including or
excluding facts) to influence how others see
and interpret reality.
Leaders use framing (selectively including or
excluding facts) to influence how others see
and interpret reality.
Framing
A way to uselanguage to managemeaning.
Inspirational Approaches toLeadership
Charismatic Leadership Theory
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Charismatics Influence Followers By:
1. Articulating the vision
2. Setting high performance expectations
3. Conveying a new set of values
4. Making personal sacrifices
Charismatics Influence Followers By:
1. Articulating the vision
2. Setting high performance expectations
3. Conveying a new set of values
4. Making personal sacrifices
p y
Followers make attributions of heroic orextraordinary leadership abilities when theyobserve certain behaviors.
Beyond Charismatic Leadership
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Level 5 Leaders Possess a fifth dimensiona paradoxical
blend of personal humility and professional will
in addition to the four basic leadership
qualities of individual capability, team skills,managerial competence, and the ability to
stimulate others to high performance.
Channel their ego needs away fromthemselves and into the goal of building a great
company.
Transactional andTransformational Leadership
Contingent RewardTransactional Leaders
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Contingent Reward
Management by
Exception (active)
Management by
Exception (passive)
Laissez-Faire
Charisma
Inspiration
Intellectual Stimulation
Individual Consideration
Leaders who guide ormotivate their followersin the direction ofestablished goals by
clarifying role and taskrequirements.
Transformational Leaders
Leaders who provide
individualizedconsideration andintellectual stimulation,and who possess
Emotional Intelligence andLeadership Effectiveness
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Elements of Emotional
Intelligence:
Self-awareness
Self-management
Self-motivation
Empathy
Social skills
Elements of Emotional
Intelligence:
Self-awareness
Self-management
Self-motivation
Empathy
Social skills
Contemporary LeadershipRoles: Providing Team
Leadership
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Leadership
Team Leadership Roles:
Act as liaisons with
external constituencies.
Serve as troubleshooters.
Managing conflict.
Coaching to improve teammember performance
Team Leadership Roles:
Act as liaisons with
external constituencies. Serve as troubleshooters.
Managing conflict.
Coaching to improve teammember performance
Contemporary LeadershipRoles: Mentoring
Mentor
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Mentoring Activities:
Present ideas clearly
Listen well
Empathize Share experiences
Act as role model
Share contacts Provide political
guidance
Mentoring Activities: Present ideas clearly
Listen well
Empathize Share experiences
Act as role model
Share contacts
Provide politicalguidance
A senior employeewho sponsors andsupports a less-experienced
employee (aprotg).
Contemporary LeadershipRoles:
Self-Leadership
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Self Leadership
Creating self leaders:
Model self-leadership.
Encourage employees to
create self-set goals. Encourage the use of self-
rewards.
Create positive thoughtpatterns.
Create a climate of self-leadership.
Encourage self-criticism.
Creating self leaders:
Model self-leadership.
Encourage employees tocreate self-set goals.
Encourage the use of self-rewards.
Create positive thoughtpatterns.
Create a climate of self-leadership.
Encourage self-criticism.
Self-Leadership
A set of processesthrough whichindividuals control
their ownbehavior.
Ethical Leadership
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Actions:
Work to positively change the attitudes andbehaviors of employees.
Engage in socially constructive behaviors.
Do not abuse power or use improper means toattain goals.
Actions:
Work to positively change the attitudes andbehaviors of employees.
Engage in socially constructive behaviors.
Do not abuse power or use improper means toattain goals.
Online Leadership
Leadership at a Distance: Building Trust
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Leadership at a Distance: Building Trust
The lack of face-to-face contact in electronic communications
removes the nonverbal cues that support verbal interactions.
There is no supporting context to assist the receiver with
interpretation of an electronic communication.
The structure and tone of electronic messages can stronglyaffect the response of receivers.
An individuals verbal and written communications may not
follow the same style.
Writing skills will likely become an extension of interpersonalskills
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Finding and Creating EffectiveLeaders
Selection
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207DR.SANDEEP RAMAKANT SAWANT. 12207
Selection
Review specific requirements for the job.
Use tests that identify personal traits associated with leadership,measure self-monitoring, and assess emotional intelligence.
Conduct personal interviews to determine candidates fit with the
job. Training
Recognize the all people are not equally trainable.
Teach skills that are necessary for employees to becomeeffective leaders.
Provide behavioral training to increase the developmentpotential of nascent charismatic employees.
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Power and Politics
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What is power?
How does one get it?
What does it mean to empower employees? How can we be effective at office politics?
Questions for ConsiderationQuestions forConsideration
Power and Politics
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Power A capacity that A has to influence the behaviour of B
so that B acts in accordance with As wishes.
Dependency: Bs relationship to A when A possesses
something that B requires
Politics
Behaviour to influence or attempt to influence the
distribution of advantages and disadvantages within
the organization.
Leadership and Power
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Leadership Requires goal
agreement
Focuses on downward
influence
Minimizes importance of
lateral and upward
influence
Leadership research
focuses on answers
Power Does not require goal
acceptance
Focuses on intimidation
(threats)
Maximizes importance of
lateral and upward
influence
Power focuses on tactics
for gaining compliance
Measuring Bases of Power
Coercive power
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Coercive power The person can make things difficult for people, and
you want to avoid getting him or her angry.
Power that is based on fear.
Reward power The person is able to give special benefits or rewards to
people, and you find it advantageous to trade favorswith him or her.
Legitimate power
The person has the right, considering his or her positionand your job responsibilities, to expect you to complywith legitimate requests.
Measuring Bases of Power
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Expert power The person has the experience and knowledge to
earn your respect, and you defer to his or her
judgment in some matters.
Referent power You like the person and enjoy doing things for him or
her.
Evaluating the Bases of Power
Coercive power tends to result in negative performance responses
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Coercive powertends to result in negative performance responses
from individuals, decreases satisfaction, increases mistrust, andcreates fear.
Legitimate powerdoes not have a negative effect, but does not
generally stimulate employees to improve their attitudes or
performance, and it does not generally result in increased
commitment.
Reward powermay improve performance in a variety of situations if
the rewards are consistent with what the individuals want as
rewards.
Expert powerrelies on trust that all relevant information is given out
honestly and completely.
Leaders Use of Power
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The least effective power bases are theones most likely to be used by managers
Coercive, legitimate, and reward
Easiest to implement
Effective leaders use referent and/or
expert power
Dependency: Key to Power
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Importance The things you control must be important
Scarcity
A resource must be perceived as scarce Non-substitutability
The resource cannot be substituted with
something else
Increasing Dependency
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To increase the dependency of others onyou, you need to
Control things viewed as important
The resources must be viewed as scarce
The resource must have few or no substitutes
(nonsubstitutability)
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Conditions for TrueEmpowerment
Clear definition of the values and mission of the
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Clear definition of the values and mission of thecompany
Company must help employees acquire therelevant skills
Employees need to be supported in theirdecision making, and not criticized when they tryto do something extraordinary
Employees need to be recognized for their
efforts
Characteristics of EmpoweredPeople
Sense of self-determination
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Sense of self determination Employees are free to choose how to do their work; They
are not micromanaged
Sense of meaning Employees feel that their work is important to them; They
care about what they are doing
Sense of competence Employees are confident about their ability to do their work
well; They know they can perform
Sense of impact Employees people believe they can have influence on their
work unit; Others listen to their ideas
Coalitions
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Two or more individuals who combine theirpower to push for or support their demands
Predictions about coalition formation
Coalitions seek to maximize their size
Coalitions more likely to be created when there isgreater task and resource dependence
Coalitions more likely when tasks are routine
Political Behavior
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Those activities that influence, or attemptto influence, the distribution of advantages
and disadvantages within the organization.
Legitimate: normal everyday behaviour
Illegitimate: extreme political behaviours that
violate the implied rules of the game
Why Do We Get Politics?
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Organizations are made up of groups andindividuals who have differing values,
goals and interests
Resources in organizations are limited Performance outcomes are not completely
clear and objective
Factors Influencing PoliticalBehaviour
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Political behaviour
Low High
Individual factors
High self-monitors
Internal locus of control
High Mach
Organizational investment
Perceived job alternatives
Expectations of success
Organizational factors
Reallocation of resources
Promotion opportunities
Low trust
Role ambiguity
Unclear performance
evaluation system
Zero-sum reward practices
Democratic decision making
High performance pressures
Self-serving senior managers
Favourable outcomes
Rewards
Averted punishments
What Individual FactorsContribute to Politics?
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High self-monitors Internal locus of control
High mach
Organizational investment Perceived job alternatives
Expectations of success
What Organizational FactorsContribute to Politics?
Reallocation of rewards
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Reallocation of rewards
Promotion opportunities
Low trust
Role ambiguity
Unclear performance evaluation system Zero-sum reward practices
Democratic decision-making
High performance pressure Self-serving senior managers
Types of Political Activity
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Attacking or blaming others Controlling information
Forming coalitions
Networking Creating obligation
Managing impressions
How employee respond to Politics
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Decreased job satisfaction Increased anxiety
Increased turnover
Reduced performance
Summary and Implications
Power is a two-way street.
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y
Few employees relish being powerless in their jobs and
organization.
People respond differently to various power bases. Employees working under coercive managers are unlikely to be
committed,
and more likely to resist the manager.
Expert power is the most strongly and consistently
related to effective employee performance.
Summary and Implications
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The power of the manager may also play a rolein determining job satisfaction.
The effective manager accepts the political
nature of organizations.
The more political that employees perceive anorganization, the lower their satisfaction.