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BUS7000 Organizational Behavior &Theory

Week 4

Dr Jenne Meyer

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Article Analysis

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Videos for week 3 content

Emotional Intelligence: http://www.mhhe.com/business/management/videos/POM_V2/Flashvideo/EmotionsinCheck.html

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Chapter 6

Applied Performance Practices

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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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

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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)

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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 cost-

efficiency and responsiveness

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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

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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

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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

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Unintended Consequences of Rewards at TransSantiago

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

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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

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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

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Evaluating Job Specialization

Less time changing activities

Lower training costs Job mastered quickly Better person-job

matching

Job boredom Discontentment pay Higher costs Lower quality Lower motivation

Advantages Disadvantages

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Job Characteristics Model

Workmotivation

Growthsatisfaction

Generalsatisfaction

Workeffectiveness

Feedbackfrom job

Knowledgeof results

Skill varietyTask identity

Task significanceMeaningfulness

Autonomy Responsibility

Individualdifferences

CriticalPsychological

States

Core JobCharacteristics Outcomes

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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.

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Videos for debate

http://highered.mcgraw-hill.com/sites/0078112648/instructor_view0/asset_gallery.htm

Performance commitment• Stop slacking: http://

www.mhhe.com/business/management/videos/NBC/Flash/NBC_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

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Job Rotation

Moving from one job to another

Benefits1. Minimizes repetitive strain

injury

2. Multiskills the workforce

3. Potentially reduces job boredom

Job ‘A’

Job ‘B’

Job ‘C’

Job ‘D’

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Job Enlargement

Adding tasks to an existing job

Example: video journalist

Employee 1Operates camera

Employee 2Operates sound

Employee 3Reports story

Traditional news team

Video journalist

• Operates camera• Operates sound• Reports story

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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

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Dimensions of Empowerment

Meaning

Competence

Employees believe their work is important

Employees have feelings of self-efficacy

ImpactEmployees feel their actions influence success

Self-determination

Employees feel they have freedom and discretion

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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

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Self-Leadership

The process of influencing oneself to establish the self-direction and self-motivation needed to perform a task

Includes concepts/practices from goal setting, social cognitive theory, and sports psychology

Self-leadership at Bayer CropScience

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Elements of Self-Leadership

Personal goal setting

Employees set their own goals

Apply effective goal setting practices

PersonalGoal Setting

ConstructiveThoughtPatterns

DesigningNatural

Rewards

Self-Monitoring

Self-Reinforce-

ment

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PersonalGoal Setting

DesigningNatural

Rewards

Self-Monitoring

Self-Reinforce-

ment

ConstructiveThoughtPatterns

Elements of Self-Leadership

Positive self-talk• Talking to ourselves about thoughts/actions• Potentially increases self-efficacy

Mental imagery• Mentally practicing a task• Visualizing successful task completion

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DesigningNatural

Rewards

ConstructiveThoughtPatterns

Self-Monitoring

Self-Reinforce-

ment

PersonalGoal Setting

Elements of Self-Leadership

Finding ways to make the job itself more motivating• e.g. altering the way the task is accomplished

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ConstructiveThoughtPatterns

DesigningNatural

Rewards

Self-Reinforce-

ment

PersonalGoal Setting

Self-Monitoring

Elements of Self-Leadership

Keeping track of your progress toward the self-set goal• Looking for naturally-occurring feedback• Designing artificial feedback

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Self-Reinforce-

ment

ConstructiveThoughtPatterns

DesigningNatural

Rewards

Self-Monitoring

PersonalGoal Setting

Elements of Self-Leadership

“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

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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

Chapter 6

TeamDynamics

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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What are Teams?

What are teams? Why do teams exist?

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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

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Many Types of Teams

• Departmental teams

• Production/service/ leadership teams

• Self-directed teams

• Advisory teams

• Task force (project) teams

• Skunkworks

• Virtual teams

• Communities of practice

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Videos for review

http://www.mhhe.com/business/management/videos/NBC/Flash/NBC_airline_workers_learn_NASCAR.html

http://www.mhhe.com/business/management/videos/POM_V2/Flashvideo/PowertoChange.html

McShane/Von Glinow OB 6e© 2013 The McGraw-Hill Companies, Inc. All rights

reserved34

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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

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Advantages/Disadvantages of Teams

Advantages1. 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

Disadvantages1. Individuals better/faster on some tasks

2. Process losses

3. Social loafing

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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

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Team Effectiveness Model

• Task characteristics

• Team size

• Team composition

Team Design

• Accomplish tasks

• Satisfy member needs

• Maintain team survival

TeamEffectiveness

• Team development

• Team norms

• Team cohesiveness

• Team trust

Team Processes

•Rewards

•Communication

•Org structure

•Org leadership

•Physical space

Organizational and Team Environment

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PSA Peugeot Citroën’s Team Space

PSA Peugeot Citroen, 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.

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Organization/Team Environment

Reward systems

Communication systems

Organizational structure

Organizational leadership

Physical space

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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.

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Levels of Task Interdependence

Sequential

Pooled

Reciprocal

Resource

A B C

A B C

A

B C

High

Low

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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

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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)

Coordinating•Align work with others

•Keep team on track

Communicating•Share information freely, efficiently, respectfully

•Listen actively

ConflictResolving

•Diagnose conflict sources

•Use best conflict-handling strategy

Comforting•Show empathy•Provide psych comfort

•Build confidence

Team Member Competencies

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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

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Existing teams might regress back to an earlier stage of development

Forming

Storming

Norming

Performing

Adjourning

Stages of Team Development

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Team Development asMembership 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

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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

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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

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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

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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

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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

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Teamsize

Memberinteraction

• Smaller teams tend to be more cohesive

• Regular interaction increases cohesion• Calls for tasks with high interdependence

Membersimilarity

• Similarity-attraction effect• Some forms of diversity have less effect

Influences on Team Cohesion

Teamsuccess

External challenges

• Successful teams fulfill member needs• Success increases social identity with team

• Challenges increase cohesion when not overwhelming

Somewhat difficult entry

• Team eliteness increases cohesion• But lower cohesion with severe initiation

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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

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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

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Self-Directed Teams at Whole Foods Markets

Whole Foods Markets organizes employees around self-directed teams, responsible for a particular store area. These teams have considerable autonomy to operate their store section.

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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.

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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

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Virtual Teams

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

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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

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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

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General Guidelines forTeam 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

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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

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Week 4 wrap up

Questions? Assignments for next week