BUS 7000 Organizational Behavior Theory Week 4 Dr

BUS 7000 Organizational Behavior &Theory Week 4 Dr Jenne Meyer 1 6 -1

Article Analysis 2 6 -2

Videos for week 3 content § Emotional Intelligence: http: //www. mhhe. com/business/management /videos/POM_V 2/Flashvideo/Emotionsin. Che ck. html § 3 6 -3

Chapter 6 Applied Performance Practices Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Meaning of Money in the Workplace § Money means different things to people • • symbol of success reinforcer and motivator reflection of performance Source of less/more anxiety § Differences in meaning of money by gender and culture § Money is an important motivator 6 -5

Membership/Seniority Based Rewards § Fixed wages, seniority increases § Advantages • Guaranteed wages may attract job applicants • Seniority-based rewards reduce turnover § Disadvantages • Doesn’t motivate job performance • Discourages poor performers from leaving • May act as golden handcuffs (tie people to the job) 6 -6

Job Status-Based Rewards § Includes job evaluation and status perks § Advantages: • Job evaluation tries to maintain fairness • Motivates competition for promotions § Disadvantages: • Employees exaggerate duties, hoard resources • Reinforces status • Encourage hierarchy, might undermine costefficiency and responsiveness 6 -7

Competency-Based Rewards § Pay increases with competencies acquired and demonstrated § Skill-based pay • Pay increases with skill modules learned § Advantages • More flexible work force, better quality, consistent with employability § Disadvantages • Potentially subjective, higher training costs 6 -8

Organizational Rewards § Types of organizational rewards • • § Organizational bonuses (e. g. company trips) Employee stock ownership plans (ESOPS) Stock options Profit-sharing plans Evaluating organizational rewards • • Creates an “ownership culture” Adjusts pay with firm's prosperity Weak link between individual effort and rewards Rewards affected by external forces 6 -9

Improving Reward Effectiveness § § § Link rewards to performance Ensure rewards are relevant Team rewards for interdependent jobs Ensure rewards are valued Watch out for unintended consequences 6 -10

Unintended Consequences of Rewards at Trans. Santiago § Transit bus drivers in Santiago, Chile were paid by the number of passengers • Motivated starting work on time, shorter breaks, efficient driving, ensuring passengers paid fares § Unintended consequences • Traffic accidents -- reckless driving to next stop, cut off competing buses • Passenger injuries/deaths – doors left open, buses departed before all on board • Drove past stops with only one passenger waiting 6 -11

Job Design § Assigning tasks to a job, including the interdependency of those tasks with other jobs § Organization's goal -- to create jobs that can be performed efficiently yet employees are motivated and engaged 6 -12

Job Specialization § Dividing work into separate jobs, each with a subset of tasks required to complete the product/service § Scientific management • Frederick Winslow Taylor • Champion of job specialization • Taylor also emphasized person-job matching, training, goal setting, work incentives 6 -13

Evaluating Job Specialization Advantages Less time changing activities § Lower training costs § Job mastered quickly § Better person-job matching § Disadvantages § § § Job boredom Discontentment pay Higher costs Lower quality Lower motivation 6 -14

Job Characteristics Model Core Job Characteristics Critical Psychological States Outcomes Work motivation Skill variety Task identity Task significance Meaningfulness Autonomy Responsibility General satisfaction Feedback from job Knowledge of results Work effectiveness Growth satisfaction Individual differences 6 -15

Improving Task Significance Through Voice of the Customer Rolls Royce Engine Services improved task significance through their “Voice of the Customer” program, in which customers talk to production staff about how the quality of their engine maintenance work is important to customers. 6 -16

Videos for debate § http: //highered. mcgrawhill. com/sites/0078112648/instructor_view 0/asset_gallery. htm § Performance commitment • Stop slacking: http: //www. mhhe. com/business/management/videos/NBC/Flash/N BC_are_we_wrkng_hard_enough. html • Working smart: http: //www. mhhe. com/business/management/videos/BW/Flash/BW _Working_Smart. html • Keep the best employees: http: //www. mhhe. com/business/management/videos/Noe/sas. html 6 -17

Job Rotation § Moving from one job to another § Benefits 1. Minimizes repetitive strain injury 2. Multiskills the workforce 3. Potentially reduces job boredom Job ‘A’ Job ‘B’ Job ‘D’ Job ‘C’ 6 -18

Job Enlargement Adding tasks to an existing job Example: video journalist Traditional news team Employee 1 Operates camera Employee 2 Operates sound Video journalist • Operates camera • Operates sound • Reports story Employee 3 Reports story 6 -19

Job Enrichment Given more responsibility for scheduling, coordinating, and planning one’s own work 1. Clustering tasks into natural groups • Stitching highly interdependent tasks into one job • e. g. , video journalist, assembling entire product 2. Establishing client relationships • Directly responsible for specific clients • Communicate directly with those clients 6 -20

Dimensions of Empowerment Selfdetermination Employees feel they have freedom and discretion Meaning Employees believe their work is important Competence Employees have feelings of selfefficacy Impact Employees feel their actions influence success 6 -21

Supporting Empowerment § Individual factors • Possess required competencies, able to perform the work § Job design factors • Autonomy, task identity, task significance, job feedback § Organizational factors • Resources, learning orientation, trust 6 -22

Self-Leadership The process of influencing oneself to establish the selfdirection and self-motivation needed to perform a task Includes concepts/practices from goal setting, social cognitive theory, and sports psychology Self-leadership at Bayer Crop. Science 6 -23

Elements of Self-Leadership Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self. Monitoring Self. Reinforcement Personal goal setting Employees set their own goals Apply effective goal setting practices 6 -24

Elements of Self-Leadership Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self. Monitoring Self. Reinforcement Positive self-talk • Talking to ourselves about thoughts/actions • Potentially increases self-efficacy Mental imagery • Mentally practicing a task • Visualizing successful task completion 6 -25

Elements of Self-Leadership Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self. Monitoring Self. Reinforcement Finding ways to make the job itself more motivating • e. g. altering the way the task is accomplished 6 -26

Elements of Self-Leadership Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self. Monitoring Self. Reinforcement Keeping track of your progress toward the self-set goal • Looking for naturally-occurring feedback • Designing artificial feedback 6 -27

Elements of Self-Leadership Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self. Monitoring Self. Reinforcement “Taking” a reinforcer only after completing a self-set goal • e. g. Watching a movie after writing two more sections of a report • e. g. Starting a fun task after completing a task that you don’t like 6 -28

Self-Leadership Contingencies § Individual factors • Higher levels of conscientiousness and extroversion • Positive self-evaluation (self-esteem, self-efficacy, internal locus) § Organizational factors • Job autonomy • Participative and trustworthy leadership • Measurement-oriented culture 6 -29

Chapter 86 Team Dynamics Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

What are Teams? § What are teams? § Why do teams exist? 6 -31

What are Teams? § Groups of two or more people § Exist to fulfill a purpose § Interdependent -- interact and influence each other § Mutually accountable for achieving common goals § Perceive themselves as a social entity 6 -32

Many Types of Teams • Departmental teams • Task force (project) teams • Production/service/ leadership teams • Skunkworks • Self-directed teams • Virtual teams • Advisory teams • Communities of practice 6 -33

Videos for review http: //www. mhhe. com/business/management /videos/NBC/Flash/NBC_airline_workers_lea rn_NASCAR. html § http: //www. mhhe. com/business/management /videos/POM_V 2/Flashvideo/Powerto. Change. html § Mc. Shane/Von Glinow OB 6 e 34 6 -34 © 2013 The Mc. Graw-Hill Companies, Inc. All rights reserved

Informal Groups § Groups that exist primarily for the benefit of their members § Reasons why informal groups exist: 1. Innate drive to bond 2. Social identity -- we define ourselves by group memberships 3. Goal accomplishment 4. Emotional support 6 -35

Advantages/Disadvantages of Teams § Advantages 1. Make better decisions, products/services 2. Better information sharing 3. Increase employee motivation/engagement - Fulfills drive to bond - Accountable to team members, who monitor performance - Team members are benchmarks of comparison § Disadvantages 1. Individuals better/faster on some tasks 2. Process losses 3. Social loafing 6 -36

How to Minimize Social Loafing § Make individual performance more visible • Form smaller teams • Specialize tasks • Measure individual performance § Increase employee motivation • Increase job enrichment • Select motivated employees 6 -37

Team Effectiveness Model Team Design Organizational and Team Environment • Rewards • Task characteristics • Team size • Team composition • Org leadership • Physical space • Accomplish tasks • Satisfy member needs • Communication • Org structure Team Effectiveness Team Processes • Maintain team survival • Team development • Team norms • Team cohesiveness • Team trust 6 -38

PSA Peugeot Citroën’s Team Space PSA Peugeot Citroe n, Europe’s second largest automaker, set up an “obeya room” (shown here) to speed up team decision making. The room, which is plastered with charts and notes on key issues, creates a unique team environment that encourages face-to-face interaction to quickly resolve those issues. 6 -39

Organization/Team Environment § Reward systems § Communication systems § Organizational structure § Organizational leadership § Physical space 6 -40

Team’s Task Characteristics § Teams are better at tasks that: • are sufficiently complex (require teamwork) • can be divided into more specialized roles requiring frequent coordination • are well-structured (easier to coordinate) § Teams preferred with higher task interdependence • Extent that employees need to share materials, information, or expertise to perform their jobs. 6 -41

Levels of Task Interdependence High A Reciprocal Sequential B A B C Resource Pooled Low C A B C 6 -42

Team Size § Smaller teams are better because: • need less time to coordinate roles and resolve differences • require less time to develop • more member involvement, thus higher commitment § But team must be large enough to accomplish task 6 -43

Team Composition § § Effective team members must be willing and able to work on the team Effective team members possess specific competencies (5 C’s in diagram) Conflict Resolving • Diagnose conflict sources Team • Use best conflict Member -handling Competenci strategy es Comforting • Show empathy • Provide psych comfort • Build confidence Coordinati ng • Align work with others • Keep team on track Communicating • Share information freely, efficiently, respectfully • Listen actively 6 -44

Team Composition: Diversity § Team members have diverse knowledge, skills, perspectives, values, etc. § Advantages • view problems/alternatives from different perspectives • broader knowledge base • better representation of team’s constituents § Disadvantages • take longer to become a high-performing team • more susceptible to “faultlines” • increased risk of dysfunctional conflict 6 -45

Stages of Team Development Performing Norming Storming Forming Existing teams might regress back to an earlier stage of development Adjourning 6 -46

Team Development as Membership and Competence Two central processes in team development 1. Team membership formation • Transition from “them” to “us” • Team becomes part of person’s social identity 2. Team competence development • Forming routines with others • Forming shared mental models 6 -47

Team Roles § A set of behaviors that people are expected to perform § Some formally assigned; others informally § Informal role assignment occurs during team development and is related to personal characteristics 6 -48

Team Building § Formal activities intended to improve the team’s development and functioning § Types of team building • Clarify team’s performance goals • Improve team’s problem-solving skills • Improve role definitions • Improve relations 6 -49

Team Norms § Informal rules and shared expectations team establishes to regulate member behaviors § Norms develop through: • Initial team experiences • Critical events in team’s history • Experience/values members bring to the team 6 -50

Preventing/Changing Dysfunctional Team Norms § State desired norms when forming teams § Select members with preferred values § Discuss counter-productive norms § Introduce team-based rewards that counter dysfunctional norms § Disband teams with dysfunctional norms 6 -51

Team Cohesion • The degree of attraction people feel toward the team and their motivation to remain members • Both cognitive and emotional process • Related to the team member’s social identity 6 -52

Influences on Team Cohesion Member similarity • Similarity-attraction effect • Some forms of diversity have less effect Team size • Smaller teams tend to be more cohesive Member interaction • Regular interaction increases cohesion • Calls for tasks with high interdependence Somewhat difficult entry • Team eliteness increases cohesion • But lower cohesion with severe initiation Team success External challenges • Successful teams fulfill member needs • Success increases social identity with team • Challenges increase cohesion when not overwhelming 6 -53

Team Cohesion Outcomes 1. Motivated to remain members 2. Willing to share information 3. Better social support 4. Resolve conflict effectively 5. Better interpersonal relationships 6. Better performance § But only if norms are aligned with org goals § Also, effect of performance on cohesion might be stronger than vice versa 6 -54

Trust in Teams § Positive expectations one person has of another person in situations involving risk § Three levels of trust § Swift trust • New team members tend to have moderate or higher trust in co-workers • Trust is fragile in new relationships – based on assumptions, not experience – so easily broken 6 -55

Self-Directed Teams at Whole Foods Markets organizes employees around selfdirected teams, responsible for a particular store area. These teams have considerable autonomy to operate their store section. 6 -56 8 -56

Self-Directed Teams Defined Cross-functional groups organized around work processes, that complete an entire piece of work requiring several interdependent tasks, and that have substantial autonomy over the execution of those tasks. 6 -57 8 -57

Self-Directed Team Success Factors § Responsible for entire work process § High interdependence within the team § Low interdependence with other teams § Autonomy to organize and coordinate work § Work site and technology support team communication/coordination 6 -58

Virtual Teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks • Increasingly possible because of: - Information technologies - Knowledge-based work • Increasingly necessary because of: - Organizational learning - Globalization 6 -59

Virtual Team Success Factors § Member characteristics • Communication technology skills • Self-leadership skills • Emotional intelligence § Flexible use of communication technologies § Fairly high task structure § Opportunities to meet face-to-face 6 -60

Team Decision Making Constraints § Time constraints • Time to organize/coordinate • Production blocking § Evaluation apprehension • Belief that others are silently evaluating you § Peer pressure to conform • Suppressing opinions that oppose team norms § Groupthink • Tendency in highly cohesive teams to value consensus at the price of decision quality • Concept losing favor – study specific elements 6 -61

General Guidelines for Team Decisions 1. Team norms should encourage critical thinking 2. Sufficient team diversity 3. Ensure neither leader nor any member dominates 4. Maintain optimal team size 5. Introduce effective team structures 6 -62

Constructive Conflict § People focus their discussion on the issue while maintaining respectfulness for others having different points of view. § Problem: constructive conflict easily slides into personal attacks 6 -63

Week 4 wrap up Questions? § Assignments for next week § 6 -64