INDIVIDUAL DIFFERENCES Jensen Shoes JENSEN SHOES What perceptual

INDIVIDUAL DIFFERENCES Jensen Shoes

JENSEN SHOES • What perceptual biases might have influenced interactions & behaviors? • How might an interactive self fulfilling prophecy have operated in this situation? • What would Brooks have had to do differently to result in a more effective working relationship? • What would Kravitz have had to do differently to result in a more effective working relationship?

IMPROVING THE RELATIONSHIP: BROOKS • Communicate more frequently, directly, completely and openly before negative emotions build up. • Attempt to identify with the broader goals of the organization and demonstrate this to supervisor. • Make distinction between biased behavior that is knowing and that which is unconscious. • Seek first to understand!

IMPROVING THE RELATIONSHIP: KRAVITZ • Verify own open-mindedness by asking herself questions • Ask more questions rather than assuming she knows what motivates direct reports or where their skills and interests lie. • Look beyond the surface when assessing others abilities and motivations. • Manage up as well as down the organization. • Reflect upon the negative ways that different styles, personalities and tendencies interact. • Seek first to understand!

PERCEPTION IMPLICATIONS: OUR EMPLOYEES • Leaders must be attuned to: – The perceived realities of their team – The fact that perceived and objective realities may not mesh – The idea that people respond to the perceived reality • Managers must understand the attributions employees make. • No two people in the same situation will perceive it in exactly the same way. • Have conflicting parties describe their perceptions.

INDIVIDUAL DIFFERENCES Personality

PERSONALITY v. Unique set of traits and characteristics that are relatively stable over time and determine a person’s preferences and behavior. v. Does personality matter? v. Implication? v. Adjust styles/practices to the personality v. Consider personality when assigning jobs/teams v. Which dimensions of personality?

Emotional Intelligence • Ability to detect, express, and manage emotion in oneself and others. Other Self (Social Competence) (Personal Competence) Recognition of emotions Self Awareness Regulation of emotions Self-Management Social Awareness (Empathy) Relationship Management (Social Skills)

Emotional Intelligence • Some suggest that EI is the best predictor of work success • It’s “learnable” • It’s related to communication, motivation (self and others), effective leadership (Hendrie Weisinger, “Emotional Intelligence at Work” (Jossey-Bass, 1998).

SELF-ESTEEM (SELF CONCEPT) v. How we perceive ourselves in terms of our abilities, competencies, and effectiveness v. Global, role-specific, job-based, organization-based v High self esteem is related to higher performance, commitment, loyalty, and longevity. v What can managers do to foster high self esteem in their employees?

FOSTERING SELF-ESTEEM (SELF CONCEPT) v. Reaffirm, provide positive feedback v. Constructive criticism v. Empower/trust v. Theory? v. Small wins

LOCUS OF CONTROL v. The extent to which people believe their actions determine what happens to them in life. v. Internal v. External v. Why is locus of control important? v. Performance? v. Incentive Systems? v What can managers do to enhance employees’ locus of control?

LOCUS OF CONTROL v Ensure performance is under employee control v Show Connection v Attributions?

THE “BIG FIVE” (CANOE): Conscientiousness v. The degree to which a person is dependable, organized, thorough, perseverant, honest v. Most consistent personality predictor of performance v. Also predicts lack of problem behavior

THE “BIG FIVE”: Agreeableness v. The extent to which a person is polite, good natured, flexible, cooperative, trusting. v. May predict job performance in jobs…

THE “BIG FIVE”: Agreeableness v. The extent to which a person is polite, good natured, flexible, cooperative, trusting. v. May predict job performance in jobs… v Teamwork; customer relations

THE “BIG FIVE”: Neuroticism (Emotional Stability) v. The degree to which a person is anxious, depressed, moody, emotionally unstable, temperamental. v. May predict job performance in what type of jobs? v. High stress (e. g. , customer relations, public safety)

THE “BIG FIVE”: Openness v. The degree to which a person is imaginative, curious, flexible, open to change. v. May predict job performance where? v. Rapid frequent change; Innovation v. Training

THE “BIG FIVE”: Extraversion v. The degree to which a person is sociable, talkative, assertive, active, ambitious. v. May predict job performance in what type of jobs?

THE “BIG FIVE”: Extraversion v. The degree to which a person is sociable, talkative, assertive, active, ambitious. v. May predict job performance in what type of jobs? – Extensive interaction (management, sales)

JUNGS TYPOLOGY • 16 personality types based on 4 sets of preferences • Extraversion vs. Introversion • Sensation vs. Intuition (N)—Perception – How a person becomes aware of ideas, facts – Sensation: practical, orderly, precise, unambiguous – Intuition: future oriented, dislike precision--jump to conclusions, inspiration • Thinking vs. Feeling—Judgment – Making judgments about perceptions – Thinking: Analytic and logical, impersonal; principles over people – Feeling: Subjective on the basis of values; • Perception vs. Judgment

SELF-PERCEPTION • For each individual, discuss: – Have you taken the assessment before? If so, were the results the same? – Do you agree with the results? – Do group members agree with your results? – Were there any differences between self perceptions and perceptions of others? – What do the results suggest your strengths and weaknesses are? • For the group: – Based on these results, what are some potential strengths and weaknesses of the group? – Where might there be potential areas of synergy? Where might there be potential areas for conflict?

MOTIVATION

MOTIVATION DEFINED • Willingness to exert high levels of effort to reach organizational goals.

Good to Great (by Jim Collins) • “Motivating people is the greatest waste of time managers engage in. If you have the right people on the bus, you don’t need to worry about them being motivated. ”

BASIC ASSUMPTIONS • Everyone is motivated – Key? • Two types of motivation – Intrinsic – Extrinsic

TYPES OF MOTIVATION • Extrinsic Motivation: – "What gets rewarded gets done" – Based on extrinsic/tangible rewards an/or punishment • Intrinsic Motivation: – "What is rewarding gets done" – Based on intrinsic/intangible rewards

Motivation Theories • • • Need (Maslow & ERG) Equity Reinforcement Expectancy Theory Goal-Setting Theory

Needs (stage of development) • Maslow l l l Self actualization Self esteem Social (love) Safety Physiological • Alderfer (ERG) l l l Growth Relatedness Existence

NEED THEORIES OF MOTIVATION • What are the implications of need-based theories for managers?

EQUITY THEORY • People compare their outcome/input ratio to that of others • Conclusions – Ratios are equal (equity exists) – Ratios are unequal (inequity exists)

RESPONSES TO EQUITY/INEQUITY • Equity: Maintenance • Inequity: – Change Inputs – Change Outcomes – Quit

Forms of Justice

REINFORCEMENT THEORY • Behavior is a function of consequences • Behavior that is rewarded persists • To increase behavior – Positive reinforcement – negative reinforcement

REINFORCEMENT THEORY • To reduce behavior – Extinction

REWARDING B • WE HOPE FOR: – Long-term growth – Setting challenging goals – Total Quality – Candor – Teamwork • BUT WE REWARD: – – Quarterly earnings Making the numbers Shipping on time Reporting good news; agreeing with the boss – Individual effort

REINFORCEMENT THEORY • To reduce behavior – Extinction – Punishment • Immediacy is crucial • Implications?

EXPECTANCY THEORY People are motivated to do that which they believe is possible and valuable

EXPECTANCY THEORY People are motivated to do that which they believe is possible and valuable • Expectancy: Belief that you can perform • Instrumentality: Belief that performance will lead to an outcome • Valence: Value of the outcome

GOAL SETTING THEORY (Didn’t explicitly discuss) • People naturally set goals • Benefits of Goals: – Increase effort – Direct effort – Increase persistence • Most effective goals are:

SMARTER Goals (Didn’t explicitly discuss) • Specific • Measurable Ø Improve conflict management process vs. Ø 80% reduction in grievances filed by second quarter • • • Accepted (participative) Realistic Tough (“stretch targets”) Engaging Rewarded

Effective Rewards & Incentive Systems: • Recognize Individual Differences • Effective Goal Setting – Clearly defined measurable targets and expectations – Realistic stretch – Collaboratively set • Remove obstacles/barriers • Link meaningful/valued rewards to desired behavior – Those that fulfill strategic objectives; avoid undesirables • Reward ASAP after behavior • Check the system for equity, fairness, consistency • Remember money is only the beginning

NORDSTROMS • Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms. – What do you see as its strengths? – Any concerns/questions regarding the system? • Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management? • What (if any) changes would you recommend?

NORDSTROMS • Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms. – What do you see as its strengths?

NORDSTROMS • “This is Your Business. Treat it Like Your Own Business. ” F Highest sales productivity F Earnings > $80, 000 F Compound growth in sales, earnings, stores sq. ft. F Highly, educated workforce

NORDSTROMS • Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms. – What do you see as its strengths? – Any potential concerns?

NORDSTROMS • “This is Your Business. Treat • “It’s fear that Provides Great Customer Service” it Like Your Own Business. ” F Highest sales productivity F Earnings > $80, 000 F Compound growth in sales, earnings, stores sq. ft. F Highly, educated workforce F Local 1001 publicity campaign F Union complaint with Washington Dept. L & I F NLRB charges F $15 million reserve against earnings F shareholder class action suit F employee class action suit F Wall Street Journal story F 60 Minutes TV story

NORDSTROMS • Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management?

NORDSTROMS

NORDSTROMS • Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms. – What do you see as its strengths? – Any concerns/questions regarding the system? • Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management? • What (if any) changes would you recommend?

Recommendations • Eliminate the SPH system? – Would this be akin to throwing the baby out with the bath water? • Modify system to minimize abuse – Guidelines that no one is to be pressured to underreport…punish offenders • Internal controls – – Personal purchases Properly credit sales…eliminate sharking Sales data cannot be altered Clarify distinction between sell and non sell hours

CONCLUSIONS FEffective incentive systems can be powerful motivators & focus attention on critical behaviors. FHowever, performance pressures can cause participants to engage in undesirable behaviors. – maximize the statistic in counter-productive ways – willful distortion FStrong internal controls must be present to prevent manipulation. FSystems must clearly communicate that explicit pressure and gaming behavior is unacceptable and subject to detection and punishment.

• THE NEXT FOUR SLIDES WILL CONCLUDE MOTIVATION AT THE BEGINNING OF DAY 3

HERZBERG • Movement vs. Motivation • KITA – - KITA – + KITA • What’s wrong with KITA? With movement?

Job design • Job enrichment (Herzberg) – Hygienes (salary, relationships, setting. . . ) – Motivators (responsibility, achievement, recognition…) Dissatisfied Neutral Motivated

IMPLEMENTING CONCEPTS CORE JOB DIMENSIONS Combining Tasks Skill Variety Forming Natural Work Units Task Identity CRITICAL PSYCHOLOGICAL STATES Experienced Meaningfulness PERSONAL WORK OUTCOMES High Internal Work Motivation Task Significance Establishing Client Relationships Autonomy Experienced Responsibility for Outcomes of Work High Satisfaction with the Work Vertical Loading Opening Feedback Channels High Quality Work Performance Feedback Knowledge of the Actual Results of Work activities - STRENGTH OF EMPLOYEE’S GROWTH NEEDS - KNOWLEDGE & SKILLS - CONTEXT SATISFACTION Low Absenteeism and turnover

Intrinsic Motivation: From Theory to Application • Provide Intrinsic Rewards – Survey of 1, 500 employees found that recognition is the most powerful workplace motivator • Build intrinsic motivators into employee’s jobs • Employee Participation and Empowerment