Lecture Notes for Canadian Organizational Behaviour, 10th Edition
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Chapter 1: Introduction to the Field of Organizational Behaviour
Instructor’s Manual to Accompany
Canadian Organizational
Behaviour 10/e
by Steven L. McShane, Kevin Tasa, and Sandra Steen
Chapter 1:
Introduction to the Field of
Organizational Behaviour
Prepared by:
Steven L. McShane (Curtin University and
University of Victoria)
Kevin Tasa (York University)
Sandra L. Steen (University of Regina)
Page 1-1
Instructor’s Manual to Accompany
Canadian Organizational
Behaviour 10/e
by Steven L. McShane, Kevin Tasa, and Sandra Steen
Chapter 1:
Introduction to the Field of
Organizational Behaviour
Prepared by:
Steven L. McShane (Curtin University and
University of Victoria)
Kevin Tasa (York University)
Sandra L. Steen (University of Regina)
Page 1-1
Chapter 1: Introduction to the Field of Organizational Behaviour
Instructor’s Manual to Accompany
Canadian Organizational
Behaviour 10/e
by Steven L. McShane, Kevin Tasa, and Sandra Steen
Chapter 1:
Introduction to the Field of
Organizational Behaviour
Prepared by:
Steven L. McShane (Curtin University and
University of Victoria)
Kevin Tasa (York University)
Sandra L. Steen (University of Regina)
Page 1-1
Instructor’s Manual to Accompany
Canadian Organizational
Behaviour 10/e
by Steven L. McShane, Kevin Tasa, and Sandra Steen
Chapter 1:
Introduction to the Field of
Organizational Behaviour
Prepared by:
Steven L. McShane (Curtin University and
University of Victoria)
Kevin Tasa (York University)
Sandra L. Steen (University of Regina)
Page 1-1
Chapter 1: Introduction to the Field of Organizational Behaviour
Introduction to the Field
of Organizational Behaviour
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
1-1 Define organizational behaviour and organizations, and discuss the importance of this field of inquiry.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and workforce diversity.
1-3 Discuss the anchors on which organizational behaviour knowledge is based.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
CHAPTER GLOSSARY
corporate social responsibility (CSR) — organizational
activities intended to benefit society and the
environment beyond the firm’s immediate financial
interests or legal obligations
deep-level diversity — differences in the psychological
characteristics of employees, including personalities,
beliefs, values, and attitudes
ethics – the study of moral principles or values that
determine whether actions are right or wrong and
outcomes are good or bad
evidence-based management — the practice of making
decisions and taking actions based on research evidence
globalization — economic, social, and cultural
connectivity with people in other parts of the world
high performance work practices (HPWP) — a
perspective that holds that effective organizations
incorporate several workplace practices that leverage
the potential of human capital
human capital — the stock of knowledge, skills, and
abilities among employees that provide economic value
to the organization
intellectual capital — a company’s stock of knowledge,
including human capital, structural capital and
relationship capital
learning orientation — beliefs and norms that support
the acquisition, sharing, and use of knowledge as well as
work conditions that nurture these learning processes
open systems — a perspective that holds that
organizations depend on the external environment for
resources, affect that environment through their output,
and consist of internal subsystems that transform inputs
into outputs
organizational behaviour (OB) — the study of what
people think, feel, and do in and around organizations
organizational effectiveness — a broad concept
represented by several perspectives, including the
organization’s fit with the external environment, internal
subsystems configuration for high-performance,
emphasis on organizational learning, and ability to
satisfy the needs of key stakeholders
organizational learning — a perspective that holds that
organizational effectiveness depends on the
organization’s capacity to acquire, share, use, and store
valuable knowledge
Page 1-2
1
Introduction to the Field
of Organizational Behaviour
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
1-1 Define organizational behaviour and organizations, and discuss the importance of this field of inquiry.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and workforce diversity.
1-3 Discuss the anchors on which organizational behaviour knowledge is based.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
CHAPTER GLOSSARY
corporate social responsibility (CSR) — organizational
activities intended to benefit society and the
environment beyond the firm’s immediate financial
interests or legal obligations
deep-level diversity — differences in the psychological
characteristics of employees, including personalities,
beliefs, values, and attitudes
ethics – the study of moral principles or values that
determine whether actions are right or wrong and
outcomes are good or bad
evidence-based management — the practice of making
decisions and taking actions based on research evidence
globalization — economic, social, and cultural
connectivity with people in other parts of the world
high performance work practices (HPWP) — a
perspective that holds that effective organizations
incorporate several workplace practices that leverage
the potential of human capital
human capital — the stock of knowledge, skills, and
abilities among employees that provide economic value
to the organization
intellectual capital — a company’s stock of knowledge,
including human capital, structural capital and
relationship capital
learning orientation — beliefs and norms that support
the acquisition, sharing, and use of knowledge as well as
work conditions that nurture these learning processes
open systems — a perspective that holds that
organizations depend on the external environment for
resources, affect that environment through their output,
and consist of internal subsystems that transform inputs
into outputs
organizational behaviour (OB) — the study of what
people think, feel, and do in and around organizations
organizational effectiveness — a broad concept
represented by several perspectives, including the
organization’s fit with the external environment, internal
subsystems configuration for high-performance,
emphasis on organizational learning, and ability to
satisfy the needs of key stakeholders
organizational learning — a perspective that holds that
organizational effectiveness depends on the
organization’s capacity to acquire, share, use, and store
valuable knowledge
Page 1-2
1
Chapter 1: Introduction to the Field of Organizational Behaviour
Introduction to the Field
of Organizational Behaviour
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
1-1 Define organizational behaviour and organizations, and discuss the importance of this field of inquiry.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and workforce diversity.
1-3 Discuss the anchors on which organizational behaviour knowledge is based.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
CHAPTER GLOSSARY
corporate social responsibility (CSR) — organizational
activities intended to benefit society and the
environment beyond the firm’s immediate financial
interests or legal obligations
deep-level diversity — differences in the psychological
characteristics of employees, including personalities,
beliefs, values, and attitudes
ethics – the study of moral principles or values that
determine whether actions are right or wrong and
outcomes are good or bad
evidence-based management — the practice of making
decisions and taking actions based on research evidence
globalization — economic, social, and cultural
connectivity with people in other parts of the world
high performance work practices (HPWP) — a
perspective that holds that effective organizations
incorporate several workplace practices that leverage
the potential of human capital
human capital — the stock of knowledge, skills, and
abilities among employees that provide economic value
to the organization
intellectual capital — a company’s stock of knowledge,
including human capital, structural capital and
relationship capital
learning orientation — beliefs and norms that support
the acquisition, sharing, and use of knowledge as well as
work conditions that nurture these learning processes
open systems — a perspective that holds that
organizations depend on the external environment for
resources, affect that environment through their output,
and consist of internal subsystems that transform inputs
into outputs
organizational behaviour (OB) — the study of what
people think, feel, and do in and around organizations
organizational effectiveness — a broad concept
represented by several perspectives, including the
organization’s fit with the external environment, internal
subsystems configuration for high-performance,
emphasis on organizational learning, and ability to
satisfy the needs of key stakeholders
organizational learning — a perspective that holds that
organizational effectiveness depends on the
organization’s capacity to acquire, share, use, and store
valuable knowledge
Page 1-2
1
Introduction to the Field
of Organizational Behaviour
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
1-1 Define organizational behaviour and organizations, and discuss the importance of this field of inquiry.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and workforce diversity.
1-3 Discuss the anchors on which organizational behaviour knowledge is based.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
CHAPTER GLOSSARY
corporate social responsibility (CSR) — organizational
activities intended to benefit society and the
environment beyond the firm’s immediate financial
interests or legal obligations
deep-level diversity — differences in the psychological
characteristics of employees, including personalities,
beliefs, values, and attitudes
ethics – the study of moral principles or values that
determine whether actions are right or wrong and
outcomes are good or bad
evidence-based management — the practice of making
decisions and taking actions based on research evidence
globalization — economic, social, and cultural
connectivity with people in other parts of the world
high performance work practices (HPWP) — a
perspective that holds that effective organizations
incorporate several workplace practices that leverage
the potential of human capital
human capital — the stock of knowledge, skills, and
abilities among employees that provide economic value
to the organization
intellectual capital — a company’s stock of knowledge,
including human capital, structural capital and
relationship capital
learning orientation — beliefs and norms that support
the acquisition, sharing, and use of knowledge as well as
work conditions that nurture these learning processes
open systems — a perspective that holds that
organizations depend on the external environment for
resources, affect that environment through their output,
and consist of internal subsystems that transform inputs
into outputs
organizational behaviour (OB) — the study of what
people think, feel, and do in and around organizations
organizational effectiveness — a broad concept
represented by several perspectives, including the
organization’s fit with the external environment, internal
subsystems configuration for high-performance,
emphasis on organizational learning, and ability to
satisfy the needs of key stakeholders
organizational learning — a perspective that holds that
organizational effectiveness depends on the
organization’s capacity to acquire, share, use, and store
valuable knowledge
Page 1-2
1
Chapter 1: Introduction to the Field of Organizational Behaviour
organizations — croups of people who work
interdependently toward some purpose
relationship capital — the value derived from an
organization’s relationships with customers, suppliers,
and others
stakeholders — individuals, organizations, or other
entities who affect, or are affected by, the organization’s
objectives and actions
structural capital — knowledge embedded in an
organization’s systems and structures.
surface-level diversity — the observable demographic or
physiological differences in people, such as their race,
ethnicity, gender, age, and physical disabilities
telecommuting — an arrangement whereby, supported
by information technology, employees work from home
one or more work days per month rather than commute
to the office
values — relatively stable, evaluative beliefs that guide a
person’s preferences for outcomes or courses of action in
a variety of situations
work-life balance — the degree to which a person
minimizes conflict between work and nonwork
demands
CHAPTER SUMMARY BY LEARNING OBJECTIVE
1-1 Define organizational behaviour and organizations, and discuss the importance of this field of inquiry.
Organizational behaviour is the study of what people think, feel, and do in and around organizations.
Organizations are groups of people who work interdependently toward some purpose. OB theories help us to (a)
comprehend and predict work events, (b) adopt more accurate personal theories, and (c) influence organizational
events. OB knowledge is for everyone, not just managers. OB theories and practices are highly beneficial for an
organization’s survival and success.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and increasing workforce diversity.
Technological change has improved efficiency, interactivity, and wellbeing, but it has also been a disruptive force in
organizations. Information technology has altered communication patterns and power dynamics at work, and has
had effects on our nonwork time, attention span, and techno-stress. Globalization, which refers to various forms of
connectivity with people in other parts of the world, has become more intense than ever before because
information technology and transportation systems. It has brought more complexity and new ways of working to
the workplace, requires additional knowledge and skills. It may be an influence on work intensification, reduced
job security, and lessening work–life balance.
An emerging employment relationship trend is the blurring of work and nonwork time, and the associated call for
more work–life balance (minimizing conflict between work and nonwork demands). Another employment trend is
telecommuting, whereby employees work from home one or more work days per month rather than commute to
the office. Telecommuting potentially benefits employees and employers, but there are also disadvantages and its
effectiveness depends on the employee, job, and organization. An organization's workforce has both surface-level
diversity (observable demographic and other overt differences in people) and deep-level diversity (differences in
personalities, beliefs, values, and attitudes). Diversity may improve creativity and decision making, and provide
better awareness and response to diverse communities. However, diversity also poses challenges, such as
dysfunctional conflict and slower team development.
Page 1-3
organizations — croups of people who work
interdependently toward some purpose
relationship capital — the value derived from an
organization’s relationships with customers, suppliers,
and others
stakeholders — individuals, organizations, or other
entities who affect, or are affected by, the organization’s
objectives and actions
structural capital — knowledge embedded in an
organization’s systems and structures.
surface-level diversity — the observable demographic or
physiological differences in people, such as their race,
ethnicity, gender, age, and physical disabilities
telecommuting — an arrangement whereby, supported
by information technology, employees work from home
one or more work days per month rather than commute
to the office
values — relatively stable, evaluative beliefs that guide a
person’s preferences for outcomes or courses of action in
a variety of situations
work-life balance — the degree to which a person
minimizes conflict between work and nonwork
demands
CHAPTER SUMMARY BY LEARNING OBJECTIVE
1-1 Define organizational behaviour and organizations, and discuss the importance of this field of inquiry.
Organizational behaviour is the study of what people think, feel, and do in and around organizations.
Organizations are groups of people who work interdependently toward some purpose. OB theories help us to (a)
comprehend and predict work events, (b) adopt more accurate personal theories, and (c) influence organizational
events. OB knowledge is for everyone, not just managers. OB theories and practices are highly beneficial for an
organization’s survival and success.
1-2 Debate the organizational opportunities and challenges of technological change, globalization, emerging
employment relationships, and increasing workforce diversity.
Technological change has improved efficiency, interactivity, and wellbeing, but it has also been a disruptive force in
organizations. Information technology has altered communication patterns and power dynamics at work, and has
had effects on our nonwork time, attention span, and techno-stress. Globalization, which refers to various forms of
connectivity with people in other parts of the world, has become more intense than ever before because
information technology and transportation systems. It has brought more complexity and new ways of working to
the workplace, requires additional knowledge and skills. It may be an influence on work intensification, reduced
job security, and lessening work–life balance.
An emerging employment relationship trend is the blurring of work and nonwork time, and the associated call for
more work–life balance (minimizing conflict between work and nonwork demands). Another employment trend is
telecommuting, whereby employees work from home one or more work days per month rather than commute to
the office. Telecommuting potentially benefits employees and employers, but there are also disadvantages and its
effectiveness depends on the employee, job, and organization. An organization's workforce has both surface-level
diversity (observable demographic and other overt differences in people) and deep-level diversity (differences in
personalities, beliefs, values, and attitudes). Diversity may improve creativity and decision making, and provide
better awareness and response to diverse communities. However, diversity also poses challenges, such as
dysfunctional conflict and slower team development.
Page 1-3
Chapter 1: Introduction to the Field of Organizational Behaviour
1-3 Discuss the anchors on which organizational behaviour knowledge is based.
The multidisciplinary anchor states that the field should develop from knowledge in other disciplines (e.g.,
psychology, sociology, economics), not just from its own isolated research base. The systematic research anchor
states that OB knowledge should be based on systematic research, consistent with evidence-based management.
The contingency anchor states that OB theories generally need to consider that there will be different consequences
in different situations. The multiple levels of analysis anchor states that OB topics may be viewed from the
individual, team, and organization levels of analysis.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
The open systems perspective views organizations as complex organisms that “live” within an external
environment, depend on it for resources, then use organizational subsystems to transform those resources into
outputs, which are returned to the environment. Organizations receive feedback to maintain a good “fit” with that
environment. Fit occurs by adapting to the environment, influencing the environment, or moving to a more
favourable environment. Effective transformation processes are efficient, adaptable, and innovative. The
organizational learning perspective states that organizations are effective when they find ways to acquire, share,
use, and store knowledge. Intellectual capital consists of human capital, structural capital, and relationship capital.
Knowledge is retained in the organizational memory; companies also selectively unlearn.
The high-performance work practices (HPWP) perspective identifies a bundle of systems and structures to
leverage workforce potential. The most widely identified HPWPs are employee involvement, job autonomy,
developing employee competencies, and performance-/skill-based rewards. HPWPs improve organizational
effectiveness by building human capital, increasing adaptability, and strengthening employee motivation and
attitudes. The stakeholder perspective states that organizations are more effective when they understand, manage,
and satisfy stakeholder needs and expectations. Leaders manage the interests of diverse stakeholders by relying on
their personal and organizational values for guidance. Ethics and corporate social responsibility (CSR) are natural
variations of values-based organizations. CSR consists of organizational activities intended to benefit society and
the environment beyond the firm’s immediate financial interests or legal obligations.
Page 1-4
1-3 Discuss the anchors on which organizational behaviour knowledge is based.
The multidisciplinary anchor states that the field should develop from knowledge in other disciplines (e.g.,
psychology, sociology, economics), not just from its own isolated research base. The systematic research anchor
states that OB knowledge should be based on systematic research, consistent with evidence-based management.
The contingency anchor states that OB theories generally need to consider that there will be different consequences
in different situations. The multiple levels of analysis anchor states that OB topics may be viewed from the
individual, team, and organization levels of analysis.
1-4 Compare and contrast the four perspectives of organizational effectiveness.
The open systems perspective views organizations as complex organisms that “live” within an external
environment, depend on it for resources, then use organizational subsystems to transform those resources into
outputs, which are returned to the environment. Organizations receive feedback to maintain a good “fit” with that
environment. Fit occurs by adapting to the environment, influencing the environment, or moving to a more
favourable environment. Effective transformation processes are efficient, adaptable, and innovative. The
organizational learning perspective states that organizations are effective when they find ways to acquire, share,
use, and store knowledge. Intellectual capital consists of human capital, structural capital, and relationship capital.
Knowledge is retained in the organizational memory; companies also selectively unlearn.
The high-performance work practices (HPWP) perspective identifies a bundle of systems and structures to
leverage workforce potential. The most widely identified HPWPs are employee involvement, job autonomy,
developing employee competencies, and performance-/skill-based rewards. HPWPs improve organizational
effectiveness by building human capital, increasing adaptability, and strengthening employee motivation and
attitudes. The stakeholder perspective states that organizations are more effective when they understand, manage,
and satisfy stakeholder needs and expectations. Leaders manage the interests of diverse stakeholders by relying on
their personal and organizational values for guidance. Ethics and corporate social responsibility (CSR) are natural
variations of values-based organizations. CSR consists of organizational activities intended to benefit society and
the environment beyond the firm’s immediate financial interests or legal obligations.
Page 1-4
Chapter 1: Introduction to the Field of Organizational Behaviour
LECTURE OUTLINE
Slide 1: Introduction to the Field of Organizational Behaviour
Slide 2: Shopify
Ottawa-based Shopify is a rapidly growing technology success story due to its focus on
teamwork, employee motivation, organizational culture, and other effective organizational
behaviour practices.
Slide 3: Organizational Behaviour and Organizations
Organizational behaviour (OB)
• Studies what people think, feel, and do in and around organizations
Organizations
• Groups of people who work interdependently toward some purpose
• Collective entities
• Collective sense of purpose
Slide 4: Importance of OB
OB helps people in all jobs (not just for “management.”)
1. Comprehend and predict workplace events
• Fulfills need to understand environment, reduces anxiety
• Anticipate future events — get along better, goal achievement
2. Adopt more accurate personal theories
• OB isn’t all common sense.
• Some common sense knowledge is inaccurate.
• Personal theories need correction or refinement.
3. Influence organizational events
• Helps us to work successfully with others, perform our jobs better
• Employers identify OB knowledge and skills as most important.
OB is vital to the organization’s survival and success.
• Predicts firm’s performance
• Predicts hospital quality
• OB concepts are positive screens in investment decisions
Page 1-5
LECTURE OUTLINE
Slide 1: Introduction to the Field of Organizational Behaviour
Slide 2: Shopify
Ottawa-based Shopify is a rapidly growing technology success story due to its focus on
teamwork, employee motivation, organizational culture, and other effective organizational
behaviour practices.
Slide 3: Organizational Behaviour and Organizations
Organizational behaviour (OB)
• Studies what people think, feel, and do in and around organizations
Organizations
• Groups of people who work interdependently toward some purpose
• Collective entities
• Collective sense of purpose
Slide 4: Importance of OB
OB helps people in all jobs (not just for “management.”)
1. Comprehend and predict workplace events
• Fulfills need to understand environment, reduces anxiety
• Anticipate future events — get along better, goal achievement
2. Adopt more accurate personal theories
• OB isn’t all common sense.
• Some common sense knowledge is inaccurate.
• Personal theories need correction or refinement.
3. Influence organizational events
• Helps us to work successfully with others, perform our jobs better
• Employers identify OB knowledge and skills as most important.
OB is vital to the organization’s survival and success.
• Predicts firm’s performance
• Predicts hospital quality
• OB concepts are positive screens in investment decisions
Page 1-5
Loading page 6...
Chapter 1: Introduction to the Field of Organizational Behaviour
Contemporary Developments Facing Organizations
Slide 5: Technological Change
Long history as a disruptive force in organizations (waterwheels, cotton gins, steam
engines, microprocessors, etc.)
Effects of technological change
• Higher productivity, but also usually displaces employees and makes entire
occupations obsolete
• Alter relationships and patterns of behaviour with coworkers, clients, etc
• Improve health and wellbeing
Effects of information technology (email, social media, etc)
• Potential benefits — may give employees a stronger voice through direct
communication with executives and broader distribution of their opinions
• Potential problems — less work = nonwork separation, longer hours, reducing their
attention spans at work, and increasing techno-stress
• Information technology may eventually change the form of organizations —
organizations as networks rather than places to work
Slide 6: Globalization
Economic, social, and cultural connectivity with people in other parts of the world
• Actively participate in other countries and cultures
• Increased globalization due to improved information technology and transportation
systems
Effects of Globalization on Organizations
• Expands markets, lower costs, increases knowledge
• Effects on teamwork, diversity, cultural values, leadership, etc.
• Increases competitive pressures, work intensification and requires additional
knowledge and skills e.g. global mindset
Page 1-6
Contemporary Developments Facing Organizations
Slide 5: Technological Change
Long history as a disruptive force in organizations (waterwheels, cotton gins, steam
engines, microprocessors, etc.)
Effects of technological change
• Higher productivity, but also usually displaces employees and makes entire
occupations obsolete
• Alter relationships and patterns of behaviour with coworkers, clients, etc
• Improve health and wellbeing
Effects of information technology (email, social media, etc)
• Potential benefits — may give employees a stronger voice through direct
communication with executives and broader distribution of their opinions
• Potential problems — less work = nonwork separation, longer hours, reducing their
attention spans at work, and increasing techno-stress
• Information technology may eventually change the form of organizations —
organizations as networks rather than places to work
Slide 6: Globalization
Economic, social, and cultural connectivity with people in other parts of the world
• Actively participate in other countries and cultures
• Increased globalization due to improved information technology and transportation
systems
Effects of Globalization on Organizations
• Expands markets, lower costs, increases knowledge
• Effects on teamwork, diversity, cultural values, leadership, etc.
• Increases competitive pressures, work intensification and requires additional
knowledge and skills e.g. global mindset
Page 1-6
Loading page 7...
Chapter 1: Introduction to the Field of Organizational Behaviour
Slide 7: Emerging Employment Relationships
Employment relationship has been altered by technology, globalization, and other factors —
longer hours, less work-life separation.
Work-life balance
• Degree of conflict between work and nonwork demands
Remote work — performing the job away from the employer’s physical workplace
• Working at client sites (e.g. repair technicians)
• Telecommuting (teleworking) – working at home rather than commuting to the office
Slide 8: Telecommuting Benefits and Problems
Telecommuting benefits
• Better work-life balance — but requires sufficient work space and privacy at home —
undermined by increased family responsibilities on telecommuting days
• Valued work benefit — factor in lower turnover
• Higher productivity — due to lower stress, transferring some commuting time to work
time, ability to work when weather prevents office work
• Better for the environment — less pollution, road use
• Lower real estate costs for company
Telecommuting disadvantages
• Less connection with coworkers, more social isolation in general
• Less informal communication that helps career (word-of-mouth information about
promotional opportunities)
• Lower team cohesion and a weaker organizational culture
Benefits of remote work depend on (contingencies):
• Employee characteristics — higher self-motivation, self-organization, need for
autonomy, skill with information technology, and fulfill their social needs outside work
• Jobs characteristics — tasks don’t use workplace resources, the work is performed
independently from coworkers, task performance is measurable
• Organizational characteristics — rewarding employees for performance not office
presence (face time), actions to maintain team cohesion and psychological
connectedness with the organization — limit telecommuting days, have special
meetings/events, video communication
Page 1-7
Slide 7: Emerging Employment Relationships
Employment relationship has been altered by technology, globalization, and other factors —
longer hours, less work-life separation.
Work-life balance
• Degree of conflict between work and nonwork demands
Remote work — performing the job away from the employer’s physical workplace
• Working at client sites (e.g. repair technicians)
• Telecommuting (teleworking) – working at home rather than commuting to the office
Slide 8: Telecommuting Benefits and Problems
Telecommuting benefits
• Better work-life balance — but requires sufficient work space and privacy at home —
undermined by increased family responsibilities on telecommuting days
• Valued work benefit — factor in lower turnover
• Higher productivity — due to lower stress, transferring some commuting time to work
time, ability to work when weather prevents office work
• Better for the environment — less pollution, road use
• Lower real estate costs for company
Telecommuting disadvantages
• Less connection with coworkers, more social isolation in general
• Less informal communication that helps career (word-of-mouth information about
promotional opportunities)
• Lower team cohesion and a weaker organizational culture
Benefits of remote work depend on (contingencies):
• Employee characteristics — higher self-motivation, self-organization, need for
autonomy, skill with information technology, and fulfill their social needs outside work
• Jobs characteristics — tasks don’t use workplace resources, the work is performed
independently from coworkers, task performance is measurable
• Organizational characteristics — rewarding employees for performance not office
presence (face time), actions to maintain team cohesion and psychological
connectedness with the organization — limit telecommuting days, have special
meetings/events, video communication
Page 1-7
Loading page 8...
Chapter 1: Introduction to the Field of Organizational Behaviour
Slide 9: Increasing Workforce Diversity
Surface-level diversity
• Observable demographic or physiological differences in people (e.g. race, ethnicity,
gender, age, physical capabilities)
• Increasing surface-level diversity in many countries
Deep-level diversity
• Differences in the psychological characteristics of employees (e.g. personalities,
beliefs, values, and attitudes)
• Example: Differences across age cohorts (e.g. Gen-X, Gen-Y)
• Some deep-level diversity is associated with surface-level diversity (e.g. gender
differences in values, attitudes, personality, etc.)
Consequences of diversity – opportunities and challenges
• Teams with high informational diversity (different knowledge and skills) — more
creativity, better decisions in complex situations
• Easier to recognize and address community needs
• Diverse teams usually take longer to perform effectively together
• Higher risk of dysfunctional conflict — less information sharing and morale
• Surface-level and some deep-level diversities are moral/legal imperatives
Slide 10: Organizational Behaviour Anchors (1 of 2)
1. Systematic research anchor
• OB knowledge should be based on systematic research.
• Forming research questions, collecting data, and testing hypotheses
Evidence-based management
• Making decisions and taking actions on research evidence
• Scientific method, not fads and personal beliefs that are untested
Why decision makers don’t apply evidence-based management
• Bombarded with popular press and nonresearched sources
• OB knowledge is generic — difficult to see relevance to specific situations
• Fads are heavily marketed, so they seem convincing.
• Perceptual errors bias decision maker toward popular and personal theories and to
ignore contrary evidence.
Page 1-8
Slide 9: Increasing Workforce Diversity
Surface-level diversity
• Observable demographic or physiological differences in people (e.g. race, ethnicity,
gender, age, physical capabilities)
• Increasing surface-level diversity in many countries
Deep-level diversity
• Differences in the psychological characteristics of employees (e.g. personalities,
beliefs, values, and attitudes)
• Example: Differences across age cohorts (e.g. Gen-X, Gen-Y)
• Some deep-level diversity is associated with surface-level diversity (e.g. gender
differences in values, attitudes, personality, etc.)
Consequences of diversity – opportunities and challenges
• Teams with high informational diversity (different knowledge and skills) — more
creativity, better decisions in complex situations
• Easier to recognize and address community needs
• Diverse teams usually take longer to perform effectively together
• Higher risk of dysfunctional conflict — less information sharing and morale
• Surface-level and some deep-level diversities are moral/legal imperatives
Slide 10: Organizational Behaviour Anchors (1 of 2)
1. Systematic research anchor
• OB knowledge should be based on systematic research.
• Forming research questions, collecting data, and testing hypotheses
Evidence-based management
• Making decisions and taking actions on research evidence
• Scientific method, not fads and personal beliefs that are untested
Why decision makers don’t apply evidence-based management
• Bombarded with popular press and nonresearched sources
• OB knowledge is generic — difficult to see relevance to specific situations
• Fads are heavily marketed, so they seem convincing.
• Perceptual errors bias decision maker toward popular and personal theories and to
ignore contrary evidence.
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Chapter 1: Introduction to the Field of Organizational Behaviour
2. Multidisciplinary anchor
• Many OB concepts adopted from other disciplines
➡ e.g. psychology (individual, interpersonal behaviour); sociology (team dynamics,
power); communications; marketing; information systems, etc.
• OB develops its own theories, but also scans other fields.
Slide 11: Organizational Behaviour Anchors (2 of 2)
3. Contingency anchor
• A particular action may have different consequences in different situations – no single
solution is best all the time.
• Need to understand and diagnose the situation and select the strategy most
appropriate under those conditions
4. Multiple levels of analysis anchor
• Individual – includes characteristics and behaviours as well as thought processes e.g.
motivation, perception, and values
• Team (including interpersonal) – looks at the way people interact e.g. team dynamics,
decisions, power
• Organizational – how people structure their working relationships and how
organizations interact with their environment
• OB topics usually relevant at all three levels of analysis
Slide 12: Organizational Effectiveness
Organizational effectiveness is considered the ultimate dependent variable in OB
• OB theories ultimately try to improve the organization’s effectiveness.
Goal attainment: Discredit view of effectiveness — how well organization achieves its
stated objectives
• Problem 1: Setting easy goals might produce lower outcomes than competitors or
potential.
• Problem 2: Goals might aim the organization in the wrong direction.
Organizational effectiveness best described as a composite of four perspectives
• Open systems: (a) good fit with external environment and (b) efficient/adaptable
transformation processes
• Organizational learning: effectively acquire, share, use, store knowledge
Page 1-9
2. Multidisciplinary anchor
• Many OB concepts adopted from other disciplines
➡ e.g. psychology (individual, interpersonal behaviour); sociology (team dynamics,
power); communications; marketing; information systems, etc.
• OB develops its own theories, but also scans other fields.
Slide 11: Organizational Behaviour Anchors (2 of 2)
3. Contingency anchor
• A particular action may have different consequences in different situations – no single
solution is best all the time.
• Need to understand and diagnose the situation and select the strategy most
appropriate under those conditions
4. Multiple levels of analysis anchor
• Individual – includes characteristics and behaviours as well as thought processes e.g.
motivation, perception, and values
• Team (including interpersonal) – looks at the way people interact e.g. team dynamics,
decisions, power
• Organizational – how people structure their working relationships and how
organizations interact with their environment
• OB topics usually relevant at all three levels of analysis
Slide 12: Organizational Effectiveness
Organizational effectiveness is considered the ultimate dependent variable in OB
• OB theories ultimately try to improve the organization’s effectiveness.
Goal attainment: Discredit view of effectiveness — how well organization achieves its
stated objectives
• Problem 1: Setting easy goals might produce lower outcomes than competitors or
potential.
• Problem 2: Goals might aim the organization in the wrong direction.
Organizational effectiveness best described as a composite of four perspectives
• Open systems: (a) good fit with external environment and (b) efficient/adaptable
transformation processes
• Organizational learning: effectively acquire, share, use, store knowledge
Page 1-9
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Chapter 1: Introduction to the Field of Organizational Behaviour
• High-performance work practices: develop human capital for more efficient and
adaptive internal subsystems
• Stakeholder: satisfy the needs of key stakeholders with values, ethics, and social
responsibility
Organizational effectiveness integrates all four perspectives
Slide 13: Open Systems Perspective (1 of 2)
Organizations are complex systems that “live” within (and depend upon) the external
environment
Effective organizations
• Maintain a close “fit” with those changing conditions
• Transform inputs to outputs efficiently and flexibly
Open systems perspective is the foundation on which the other three effectiveness
perspectives are built
Slide 14: Open Systems Perspective (2 of 2, with model)
External environment – organizations depend on the external environment for resources
(e.g. raw materials, job applicants, financial resources, etc.)
• Affect the environment through their outputs
• Place demands on how the organization should operate e.g. laws
Internal subsystems – transform outputs into inputs
• E.g. departments, teams, informal groups, information systems, and technological
processes
• Transformation processes are effective through: efficiency, adaptability, innovativeness
• Coordination — critical for effective transformation in complex systems
Organization–Environment Fit
To maintain a good “fit” with the environment, effective organizations
1. Adapt to the environment — adaptive firms have a “dynamic capability”
2. Influence the environment — marketing, lobbying, exclusive agreements
3. Move to a more favourable environment
Internal Subsystems Effectiveness – defines effectiveness on how well the organization
transforms inputs to outputs
• Organizational efficiency (productivity)
• Coordination is vital in the relationship among internal subsystems
Page 1-10
• High-performance work practices: develop human capital for more efficient and
adaptive internal subsystems
• Stakeholder: satisfy the needs of key stakeholders with values, ethics, and social
responsibility
Organizational effectiveness integrates all four perspectives
Slide 13: Open Systems Perspective (1 of 2)
Organizations are complex systems that “live” within (and depend upon) the external
environment
Effective organizations
• Maintain a close “fit” with those changing conditions
• Transform inputs to outputs efficiently and flexibly
Open systems perspective is the foundation on which the other three effectiveness
perspectives are built
Slide 14: Open Systems Perspective (2 of 2, with model)
External environment – organizations depend on the external environment for resources
(e.g. raw materials, job applicants, financial resources, etc.)
• Affect the environment through their outputs
• Place demands on how the organization should operate e.g. laws
Internal subsystems – transform outputs into inputs
• E.g. departments, teams, informal groups, information systems, and technological
processes
• Transformation processes are effective through: efficiency, adaptability, innovativeness
• Coordination — critical for effective transformation in complex systems
Organization–Environment Fit
To maintain a good “fit” with the environment, effective organizations
1. Adapt to the environment — adaptive firms have a “dynamic capability”
2. Influence the environment — marketing, lobbying, exclusive agreements
3. Move to a more favourable environment
Internal Subsystems Effectiveness – defines effectiveness on how well the organization
transforms inputs to outputs
• Organizational efficiency (productivity)
• Coordination is vital in the relationship among internal subsystems
Page 1-10
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Chapter 1: Introduction to the Field of Organizational Behaviour
Slide 15: Organizational Learning Perspective
An organization’s effectiveness depends on capacity to acquire, share, use, and store
valuable knowledge
Need to consider both stock and flow of knowledge
• Stock of knowledge: intellectual capital
• Flow of knowledge: processes of acquiring, sharing, using, and storing knowledge
Slide 16: Intellectual Capital
Human capital
• Knowledge, skills, and abilities that employees carry around in their heads
• Company’s competitive advantage because:
➡ Employees are essential for the organization’s survival and success
➡ Employee talents are difficult to find or copy
➡ Employee talents are difficult to replace them with technology
Structural capital
• Knowledge captured and retained in an organization’s systems and structures, e.g.
documentation, finished products
Relationship capital
• Value from organization’s relationships with customers, suppliers, others who provide
added mutual value for the organization
Slide 17: Organizational Learning Processes
1. Acquiring Knowledge
Bringing knowledge in from the external environment as well as through discovery
Occurs through:
• Individual learning from external environment — training from external sources,
observing and reporting environmental change
• Environmental scanning — actively monitoring consumer trends
• Hire skilled staff and buy complementary businesses (grafting)
• Experimentation — new ideas through discovery
Page 1-11
Slide 15: Organizational Learning Perspective
An organization’s effectiveness depends on capacity to acquire, share, use, and store
valuable knowledge
Need to consider both stock and flow of knowledge
• Stock of knowledge: intellectual capital
• Flow of knowledge: processes of acquiring, sharing, using, and storing knowledge
Slide 16: Intellectual Capital
Human capital
• Knowledge, skills, and abilities that employees carry around in their heads
• Company’s competitive advantage because:
➡ Employees are essential for the organization’s survival and success
➡ Employee talents are difficult to find or copy
➡ Employee talents are difficult to replace them with technology
Structural capital
• Knowledge captured and retained in an organization’s systems and structures, e.g.
documentation, finished products
Relationship capital
• Value from organization’s relationships with customers, suppliers, others who provide
added mutual value for the organization
Slide 17: Organizational Learning Processes
1. Acquiring Knowledge
Bringing knowledge in from the external environment as well as through discovery
Occurs through:
• Individual learning from external environment — training from external sources,
observing and reporting environmental change
• Environmental scanning — actively monitoring consumer trends
• Hire skilled staff and buy complementary businesses (grafting)
• Experimentation — new ideas through discovery
Page 1-11
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Chapter 1: Introduction to the Field of Organizational Behaviour
2. Sharing Knowledge
Distributing knowledge to others across the organization
Occurs through:
• Structured and informal communication
• Various forms of in-house learning
• Intranets
3. Using Knowledge
Applying knowledge in ways that add value
Knowledge use increase when
• Employees have a mental map of where knowledge is located
• Employees have sufficient prerequisite knowledge
• Employees have sufficient autonomy to try out new knowledge
• Work norms support organizational learning (learning orientation culture)
4. Storing Knowledge — organizational memory
The storage and preservation of intellectual capital
Retain intellectual capital by:
• Keeping knowledgeable employees
• Systematically transferring knowledge to other employees
• Transferring human capital to structural capital
Organizational unlearning – successful companies also unlearn by
• Changing routines and patterns of behaviour
• Removing knowledge that no longer adds value
Slide 18: High-Performance Work Practices (HPWPs)
Effective organizations incorporate several workplace practices that enhance human capital
Four HPWPs recognized in most studies:
1. Employee involvement
2. Job autonomy
➡ Involvement and autonomy strengthen employee motivation, improve decision making,
organizational responsiveness, and commitment to change – together often take the form
of self-directed teams
Page 1-12
2. Sharing Knowledge
Distributing knowledge to others across the organization
Occurs through:
• Structured and informal communication
• Various forms of in-house learning
• Intranets
3. Using Knowledge
Applying knowledge in ways that add value
Knowledge use increase when
• Employees have a mental map of where knowledge is located
• Employees have sufficient prerequisite knowledge
• Employees have sufficient autonomy to try out new knowledge
• Work norms support organizational learning (learning orientation culture)
4. Storing Knowledge — organizational memory
The storage and preservation of intellectual capital
Retain intellectual capital by:
• Keeping knowledgeable employees
• Systematically transferring knowledge to other employees
• Transferring human capital to structural capital
Organizational unlearning – successful companies also unlearn by
• Changing routines and patterns of behaviour
• Removing knowledge that no longer adds value
Slide 18: High-Performance Work Practices (HPWPs)
Effective organizations incorporate several workplace practices that enhance human capital
Four HPWPs recognized in most studies:
1. Employee involvement
2. Job autonomy
➡ Involvement and autonomy strengthen employee motivation, improve decision making,
organizational responsiveness, and commitment to change – together often take the form
of self-directed teams
Page 1-12
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Chapter 1: Introduction to the Field of Organizational Behaviour
3. Competence development
➡ Recruit and select people with relevant skills, knowledge, values and other personal
characteristics
➡ Invest in employee training and development
4. Performance/skill-based rewards
➡ Link performance and skill development to financial and nonfinancial rewards valued by
employees
Note: These individually improve human capital, but best when bundled together
HPWPs improve organizational effectiveness by:
• Developing employee skills and knowledge (human capital), which directly improve
individual behaviour and performance
• Adapting better to rapidly changing environments — employees are better at
performing diverse tasks in unfamiliar situations
• Strengthening employee motivation and positive attitudes toward the employer
through reciprocity of employer’s investment in employees
HPWP limitations
• Provides an incomplete picture of organizational effectiveness
• Gaps are mostly filled by the stakeholder perspective
Slide 19: Corporate Social Responsibility at MTN
At MTN Group, Africa’s largest mobile (cell) phone company, employees help the
community and environment through the company’s award-winning “21 Days of Y’ello
Care” program. For example, MTN employees recently installed solar panels with batteries
to generate off-grid electricity for lighting at rural schools.
Page 1-13
3. Competence development
➡ Recruit and select people with relevant skills, knowledge, values and other personal
characteristics
➡ Invest in employee training and development
4. Performance/skill-based rewards
➡ Link performance and skill development to financial and nonfinancial rewards valued by
employees
Note: These individually improve human capital, but best when bundled together
HPWPs improve organizational effectiveness by:
• Developing employee skills and knowledge (human capital), which directly improve
individual behaviour and performance
• Adapting better to rapidly changing environments — employees are better at
performing diverse tasks in unfamiliar situations
• Strengthening employee motivation and positive attitudes toward the employer
through reciprocity of employer’s investment in employees
HPWP limitations
• Provides an incomplete picture of organizational effectiveness
• Gaps are mostly filled by the stakeholder perspective
Slide 19: Corporate Social Responsibility at MTN
At MTN Group, Africa’s largest mobile (cell) phone company, employees help the
community and environment through the company’s award-winning “21 Days of Y’ello
Care” program. For example, MTN employees recently installed solar panels with batteries
to generate off-grid electricity for lighting at rural schools.
Page 1-13
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Chapter 1: Introduction to the Field of Organizational Behaviour
Slide 20: Stakeholder Perspective
Stakeholders: any entity who affects or is affected by the organization’s objectives and
actions e.g. employees, shareholders, suppliers, unions, government, etc.
Organizations are more effective when they understand, manage, and satisfy stakeholder
needs and expectations
Personalizes the open-systems perspective
• Identifies specific people and social entities in the environment
• Stakeholder relations are dynamic i.e. can be negotiated, managed
Challenges with understanding, managing, and satisfying stakeholder interests
• Stakeholders have conflicting interests
• Firms have limited resources to satisfy all stakeholders
Stakeholder priorities depend on:
• Stakeholder’s power and urgency for action
• Stakeholder’s legitimate claim to organizational resources
• How executives perceive the organization’s environment
• Organization’s culture
• Personal values of the corporate board and CEO
Slide 21: Stakeholders: Values and Ethics
Personal values influence how corporate boards and CEOs allocate organizational resources
Values
• Relatively stable, evaluative beliefs that guide our preferences for outcomes or courses
of action in various situations
• Shared values – similar values held by groups of people
Ethics
• Study of moral principles/values, determine whether actions are right/wrong and
outcomes are good or bad
• Rely on ethical values to determine “the right thing to do”
Page 1-14
Slide 20: Stakeholder Perspective
Stakeholders: any entity who affects or is affected by the organization’s objectives and
actions e.g. employees, shareholders, suppliers, unions, government, etc.
Organizations are more effective when they understand, manage, and satisfy stakeholder
needs and expectations
Personalizes the open-systems perspective
• Identifies specific people and social entities in the environment
• Stakeholder relations are dynamic i.e. can be negotiated, managed
Challenges with understanding, managing, and satisfying stakeholder interests
• Stakeholders have conflicting interests
• Firms have limited resources to satisfy all stakeholders
Stakeholder priorities depend on:
• Stakeholder’s power and urgency for action
• Stakeholder’s legitimate claim to organizational resources
• How executives perceive the organization’s environment
• Organization’s culture
• Personal values of the corporate board and CEO
Slide 21: Stakeholders: Values and Ethics
Personal values influence how corporate boards and CEOs allocate organizational resources
Values
• Relatively stable, evaluative beliefs that guide our preferences for outcomes or courses
of action in various situations
• Shared values – similar values held by groups of people
Ethics
• Study of moral principles/values, determine whether actions are right/wrong and
outcomes are good or bad
• Rely on ethical values to determine “the right thing to do”
Page 1-14
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Chapter 1: Introduction to the Field of Organizational Behaviour
Slide 22: Stakeholders and CSR
Stakeholder perspective includes corporate social responsibility (CSR)
• Benefit society and the environment beyond the firm’s immediate financial interests or
legal obligations
• Organization’s contract with society—serve stakeholders beyond shareholders and
customers
Triple-bottom-line philosophy
• Economic – survive and be profitable
• Society – maintain or improve conditions
• Environment – become “greener”
Slide 23: Integrative Model of OB
Individual inputs and processes influence individual outcomes which have a direct effect on
the organization’s effectiveness
Team inputs influence team processes which then affect team performance and other
outcomes
Team processes and outcomes affect individual processes and outcomes
Organizational inputs and processes have macro-level influence on both teams and
individuals
Page 1-15
Slide 22: Stakeholders and CSR
Stakeholder perspective includes corporate social responsibility (CSR)
• Benefit society and the environment beyond the firm’s immediate financial interests or
legal obligations
• Organization’s contract with society—serve stakeholders beyond shareholders and
customers
Triple-bottom-line philosophy
• Economic – survive and be profitable
• Society – maintain or improve conditions
• Environment – become “greener”
Slide 23: Integrative Model of OB
Individual inputs and processes influence individual outcomes which have a direct effect on
the organization’s effectiveness
Team inputs influence team processes which then affect team performance and other
outcomes
Team processes and outcomes affect individual processes and outcomes
Organizational inputs and processes have macro-level influence on both teams and
individuals
Page 1-15
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Chapter 2: Individual Behaviour, Personality, and Values
Instructor’s Manual to Accompany
Canadian Organizational
Behaviour 10/e
by Steven L. McShane, Kevin Tasa, and Sandra Steen
Chapter 2:
Individual Behaviour,
Personality, and Values
Prepared by:
Steven L. McShane (Curtin University and
University of Victoria)
Kevin Tasa (York University)
Sandra L. Steen (University of Regina)
Page 2-1
Instructor’s Manual to Accompany
Canadian Organizational
Behaviour 10/e
by Steven L. McShane, Kevin Tasa, and Sandra Steen
Chapter 2:
Individual Behaviour,
Personality, and Values
Prepared by:
Steven L. McShane (Curtin University and
University of Victoria)
Kevin Tasa (York University)
Sandra L. Steen (University of Regina)
Page 2-1
Loading page 17...
Chapter 2: Individual Behaviour, Personality, and Values
Individual Behaviour,
Personality, and Values
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
2-1 Describe the four factors that directly influence individual behaviour and performance.
2-2 Summarize the five types of individual behaviour in organizations.
2-3 Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate to
individual behaviour in organizations.
2-4 Summarize Schwartz’s model of individual values and discuss the conditions where values influence behaviour.
2-5 Describe three ethical principles and discuss three factors that influence ethical behaviour.
2-6 Describe five values commonly studied across cultures.
CHAPTER GLOSSARY
ability — the natural aptitudes and learned capabilities
required to successfully complete a task
achievement-nurturing orientation — a cross-cultural
value describing the degree to which people in a culture
emphasize competitive versus co-operative relations
with other people
agreeableness — a personality dimension describing
people who are trusting, helpful, good-natured,
considerate, tolerant, selfless, generous, and flexible
collectivism — a cross-cultural value describing the
degree to which people in a culture emphasize duty to
groups to which people belong, and to group harmony
conscientiousness — a personality dimension describing
people who are organized, dependable, goal-focused,
thorough, disciplined, methodical, and industrious
counterproductive work behaviours (CWBs) —
voluntary behaviours that have the potential to directly
or indirectly harm the organization
extraversion — a personality dimension describing
people who are outgoing, talkative, sociable, and
assertive
five-factor (Big Five) model (FFM) — the five abstract
dimensions representing most personality traits:
conscientiousness, emotional stability, openness to
experience, agreeableness and extraversion
individualism — a cross-cultural value describing the
degree to which people in a culture emphasize
independence and personal uniqueness
mindfulness — a person’s receptive and impartial
attention to and awareness of the present situation as
well as to one’s own thoughts and emotions in that
moment
moral intensity — the degree to which an issue demands
the application of ethical principles
moral sensitivity — a person’s ability to recognize the
presence of an ethical issue and determine its relative
importance
motivation — the forces within a person that affect his
or her direction, intensity, and persistence of voluntary
behaviour
Page 2-2
2
Individual Behaviour,
Personality, and Values
LEARNING OBJECTIVES
After reading this chapter, students should be able to:
2-1 Describe the four factors that directly influence individual behaviour and performance.
2-2 Summarize the five types of individual behaviour in organizations.
2-3 Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate to
individual behaviour in organizations.
2-4 Summarize Schwartz’s model of individual values and discuss the conditions where values influence behaviour.
2-5 Describe three ethical principles and discuss three factors that influence ethical behaviour.
2-6 Describe five values commonly studied across cultures.
CHAPTER GLOSSARY
ability — the natural aptitudes and learned capabilities
required to successfully complete a task
achievement-nurturing orientation — a cross-cultural
value describing the degree to which people in a culture
emphasize competitive versus co-operative relations
with other people
agreeableness — a personality dimension describing
people who are trusting, helpful, good-natured,
considerate, tolerant, selfless, generous, and flexible
collectivism — a cross-cultural value describing the
degree to which people in a culture emphasize duty to
groups to which people belong, and to group harmony
conscientiousness — a personality dimension describing
people who are organized, dependable, goal-focused,
thorough, disciplined, methodical, and industrious
counterproductive work behaviours (CWBs) —
voluntary behaviours that have the potential to directly
or indirectly harm the organization
extraversion — a personality dimension describing
people who are outgoing, talkative, sociable, and
assertive
five-factor (Big Five) model (FFM) — the five abstract
dimensions representing most personality traits:
conscientiousness, emotional stability, openness to
experience, agreeableness and extraversion
individualism — a cross-cultural value describing the
degree to which people in a culture emphasize
independence and personal uniqueness
mindfulness — a person’s receptive and impartial
attention to and awareness of the present situation as
well as to one’s own thoughts and emotions in that
moment
moral intensity — the degree to which an issue demands
the application of ethical principles
moral sensitivity — a person’s ability to recognize the
presence of an ethical issue and determine its relative
importance
motivation — the forces within a person that affect his
or her direction, intensity, and persistence of voluntary
behaviour
Page 2-2
2
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Chapter 2: Individual Behaviour, Personality, and Values
Myers-Briggs Type Indicator (MBTI) — an instrument
designed to measure the elements of Jungian personality
theory, particularly preferences regarding perceiving
and judging information
neuroticism — a personality dimension describing
people who tend to be anxious, insecure, self-conscious,
depressed, and temperamental
openness to experience — a personality dimension
describing people who are imaginative, creative,
unconventional, curious, nonconforming, autonomous,
and aesthetically perceptive
organizational citizenship behaviours (OCBs) — various
forms of cooperation and helpfulness to others that
support the organization’s social and psychological
context
personality — the relatively enduring pattern of
thoughts, emotions, and behaviours that characterize a
person, along with the psychological processes behind
those characteristics
power distance — a cross-cultural value describing the
degree to which people in a culture accept unequal
distribution of power in a society
role perceptions — the extent to which a person
understands the job duties assigned to or are expected of
him or her
task performance — the individual’s voluntary goal-
directed behaviours that contribute to organizational
objectives
uncertainty avoidance — a cross-cultural value
describing the degree to which people in a culture
tolerate ambiguity (low uncertainty avoidance) or feel
threatened by ambiguity and uncertainty (high
uncertainty avoidance)
CHAPTER SUMMARY BY LEARNING OBJECTIVE
2-1 Describe the four factors that directly influence individual behaviour and performance.
Four variables—motivation, ability, role perceptions, and situational factors—which are represented by the
acronym MARS, directly influence individual behaviour and performance. Motivation represents the forces within
a person that affect his or her direction, intensity, and persistence of voluntary behaviour; ability includes both the
natural aptitudes and the learned capabilities required to successfully complete a task; role perceptions are the
extent to which people understand the job duties (roles) assigned to them or expected of them; situational factors
include conditions beyond the employee’s immediate control that constrain or facilitate behaviour and
performance.
2-2 Summarize the five types of individual behaviour in organizations.
There are five main types of workplace behaviour. Task performance refers to goal-directed behaviours under the
individual’s control that support organizational objectives. It includes proficiency, adaptivity, and proactivity.
Organizational citizenship behaviours consist of various forms of cooperation and helpfulness to others that
support the organization’s social and psychological context. Counterproductive work behaviours are voluntary
behaviours that have the potential to directly or indirectly harm the organization. Joining and staying with the
organization refers to becoming and remaining a member of the organization. Maintaining work attendance
includes minimizing absenteeism when capable of working and avoiding scheduled work when not fit (i.e., low
presenteeism).
2-3 Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate to
individual behaviour in organizations.
Personality is the relatively enduring pattern of thoughts, emotions, and behaviours that characterize a person,
along with the psychological processes behind those characteristics. Personality is developed through heredity
(nature) as well as socialization (nurture). The “Big Five” personality dimensions include conscientiousness,
agreeableness, neuroticism, openness to experience, and extraversion. Conscientiousness and extraversion are the
Page 2-3
Myers-Briggs Type Indicator (MBTI) — an instrument
designed to measure the elements of Jungian personality
theory, particularly preferences regarding perceiving
and judging information
neuroticism — a personality dimension describing
people who tend to be anxious, insecure, self-conscious,
depressed, and temperamental
openness to experience — a personality dimension
describing people who are imaginative, creative,
unconventional, curious, nonconforming, autonomous,
and aesthetically perceptive
organizational citizenship behaviours (OCBs) — various
forms of cooperation and helpfulness to others that
support the organization’s social and psychological
context
personality — the relatively enduring pattern of
thoughts, emotions, and behaviours that characterize a
person, along with the psychological processes behind
those characteristics
power distance — a cross-cultural value describing the
degree to which people in a culture accept unequal
distribution of power in a society
role perceptions — the extent to which a person
understands the job duties assigned to or are expected of
him or her
task performance — the individual’s voluntary goal-
directed behaviours that contribute to organizational
objectives
uncertainty avoidance — a cross-cultural value
describing the degree to which people in a culture
tolerate ambiguity (low uncertainty avoidance) or feel
threatened by ambiguity and uncertainty (high
uncertainty avoidance)
CHAPTER SUMMARY BY LEARNING OBJECTIVE
2-1 Describe the four factors that directly influence individual behaviour and performance.
Four variables—motivation, ability, role perceptions, and situational factors—which are represented by the
acronym MARS, directly influence individual behaviour and performance. Motivation represents the forces within
a person that affect his or her direction, intensity, and persistence of voluntary behaviour; ability includes both the
natural aptitudes and the learned capabilities required to successfully complete a task; role perceptions are the
extent to which people understand the job duties (roles) assigned to them or expected of them; situational factors
include conditions beyond the employee’s immediate control that constrain or facilitate behaviour and
performance.
2-2 Summarize the five types of individual behaviour in organizations.
There are five main types of workplace behaviour. Task performance refers to goal-directed behaviours under the
individual’s control that support organizational objectives. It includes proficiency, adaptivity, and proactivity.
Organizational citizenship behaviours consist of various forms of cooperation and helpfulness to others that
support the organization’s social and psychological context. Counterproductive work behaviours are voluntary
behaviours that have the potential to directly or indirectly harm the organization. Joining and staying with the
organization refers to becoming and remaining a member of the organization. Maintaining work attendance
includes minimizing absenteeism when capable of working and avoiding scheduled work when not fit (i.e., low
presenteeism).
2-3 Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate to
individual behaviour in organizations.
Personality is the relatively enduring pattern of thoughts, emotions, and behaviours that characterize a person,
along with the psychological processes behind those characteristics. Personality is developed through heredity
(nature) as well as socialization (nurture). The “Big Five” personality dimensions include conscientiousness,
agreeableness, neuroticism, openness to experience, and extraversion. Conscientiousness and extraversion are the
Page 2-3
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Chapter 2: Individual Behaviour, Personality, and Values
best overall predictors of job performance in most job groups. Extraversion and openness to experience are the best
predictors of adaptive and proactive performance. Emotional stability (low neuroticism) is also associated with
better adaptivity. Conscientiousness and agreeableness are the two best personality predictors of organizational
citizenship and (negatively) of counterproductive work behaviours.
Based on Jungian personality theory, the Myers-Briggs Type Indicator (MBTI) identifies competing orientations for
getting energy (extraversion versus introversion), perceiving information (sensing versus intuiting), processing
information and making decisions (thinking versus feeling), and orienting to the external world (judging versus
perceiving). The MBTI improves self-awareness for career development and mutual understanding but is more
popular than valid.
2-4 Summarize Schwartz’s model of individual values and discuss the conditions where values influence
behaviour.
Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of
situations. Compared to personality traits, values are evaluative (rather than descriptive), more likely to conflict
with each other, and are formed more from socialization than heredity. Schwartz’s model organizes 57 values into a
circumplex of ten dimensions along two bipolar dimensions: from openness to change to conservation and from
self-enhancement to self-transcendence. Values influence behaviour in three ways: (1) shaping the attractiveness of
choices, (2) framing perceptions of reality, and (3) aligning behaviour with self-concept and self-presentation.
However, the effect of values on behaviour also depends on whether the situation supports or prevents that
behaviour and on how actively we think about values and understand their relevance to the situation. Values
congruence refers to how similar a person’s values hierarchy is to the values hierarchy of another source
(organization, team, etc.)
2-5 Describe three ethical principles and discuss three factors that influence ethical behaviour.
Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and
outcomes are good or bad. Three ethical principles are utilitarianism (greatest good for the greatest number),
individual rights (upholding natural rights), and distributive justice (same or proportional benefits and
burdens). Ethical behaviour is influenced by the degree to which an issue demands the application of ethical
principles (moral intensity), the individual’s ability to recognize the presence and relative importance of an ethical
issue (moral sensitivity), and situational forces. Ethical conduct at work is supported by codes of ethical conduct,
mechanisms for communicating ethical violations, the organization’s culture, and the leader’s behaviour.
2-6 Describe five values commonly studied across cultures and discuss the diverse cultures within Canada.
Five values commonly studied across cultures are individualism (valuing independence and personal uniqueness);
collectivism (valuing duty to in-groups and to group harmony); power distance (valuing unequal distribution of
power); uncertainty avoidance (tolerating or feeling threatened by ambiguity and uncertainty); and achievement-
nurturing orientation (valuing competition versus cooperation).
Canada is a multicultural society, but its deep-level diversity extends beyond racial and ethnic groups.
Anglophones and francophones differ with respect to several values (deference to authority, moral permissiveness,
etc.), but they converge on others. All regions in Canada differ from one another on some values (e.g.,
egalitarianism and personal responsibility) and personality traits (e.g., openness to experience). Canadians and
Americans are similar in many ways, but they also have long-standing cultural differences, particularly regarding
the values of tolerance, collective rights, secularism, and patriarchal authority.
Page 2-4
best overall predictors of job performance in most job groups. Extraversion and openness to experience are the best
predictors of adaptive and proactive performance. Emotional stability (low neuroticism) is also associated with
better adaptivity. Conscientiousness and agreeableness are the two best personality predictors of organizational
citizenship and (negatively) of counterproductive work behaviours.
Based on Jungian personality theory, the Myers-Briggs Type Indicator (MBTI) identifies competing orientations for
getting energy (extraversion versus introversion), perceiving information (sensing versus intuiting), processing
information and making decisions (thinking versus feeling), and orienting to the external world (judging versus
perceiving). The MBTI improves self-awareness for career development and mutual understanding but is more
popular than valid.
2-4 Summarize Schwartz’s model of individual values and discuss the conditions where values influence
behaviour.
Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of
situations. Compared to personality traits, values are evaluative (rather than descriptive), more likely to conflict
with each other, and are formed more from socialization than heredity. Schwartz’s model organizes 57 values into a
circumplex of ten dimensions along two bipolar dimensions: from openness to change to conservation and from
self-enhancement to self-transcendence. Values influence behaviour in three ways: (1) shaping the attractiveness of
choices, (2) framing perceptions of reality, and (3) aligning behaviour with self-concept and self-presentation.
However, the effect of values on behaviour also depends on whether the situation supports or prevents that
behaviour and on how actively we think about values and understand their relevance to the situation. Values
congruence refers to how similar a person’s values hierarchy is to the values hierarchy of another source
(organization, team, etc.)
2-5 Describe three ethical principles and discuss three factors that influence ethical behaviour.
Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and
outcomes are good or bad. Three ethical principles are utilitarianism (greatest good for the greatest number),
individual rights (upholding natural rights), and distributive justice (same or proportional benefits and
burdens). Ethical behaviour is influenced by the degree to which an issue demands the application of ethical
principles (moral intensity), the individual’s ability to recognize the presence and relative importance of an ethical
issue (moral sensitivity), and situational forces. Ethical conduct at work is supported by codes of ethical conduct,
mechanisms for communicating ethical violations, the organization’s culture, and the leader’s behaviour.
2-6 Describe five values commonly studied across cultures and discuss the diverse cultures within Canada.
Five values commonly studied across cultures are individualism (valuing independence and personal uniqueness);
collectivism (valuing duty to in-groups and to group harmony); power distance (valuing unequal distribution of
power); uncertainty avoidance (tolerating or feeling threatened by ambiguity and uncertainty); and achievement-
nurturing orientation (valuing competition versus cooperation).
Canada is a multicultural society, but its deep-level diversity extends beyond racial and ethnic groups.
Anglophones and francophones differ with respect to several values (deference to authority, moral permissiveness,
etc.), but they converge on others. All regions in Canada differ from one another on some values (e.g.,
egalitarianism and personal responsibility) and personality traits (e.g., openness to experience). Canadians and
Americans are similar in many ways, but they also have long-standing cultural differences, particularly regarding
the values of tolerance, collective rights, secularism, and patriarchal authority.
Page 2-4
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Chapter 2: Individual Behaviour, Personality, and Values
LECTURE OUTLINE
Slide 1: Individual Behaviour, Personality, and Values
Slide 2: Safety Behaviour at Mother Parkers
Mother Parkers Tea & Coffee Inc. has developed an enviable health and safety track record
by instilling safety-oriented behaviour through employee motivation, ability, role clarity, and
situational factors.
Motivation — employees are empowered through involvement in decisions about safety
Ability — employees are trained on safety procedures and learn current developments from
community experts
Role perceptions — employees are continuously reminded about importance of safety; daily
shift handovers begin with safety discussion
Situational factors — production systems include built-in accident prevention features;
highly visible floor markers cue employees about forklift travel areas; communication
boards display the latest safety improvement statistics as well as key safety information
Slide 3: MARS Model of Individual Behaviour
Individual voluntary behaviour and performance is influenced by motivation, ability, role
perceptions, and situational factors
• Represented by the acronym MARS
• Need to understand all four factors to diagnose and influence individual behaviour and
performance
MARS is built on earlier models of individual behaviour and performance:
• Performance = person × situation — person includes individual characteristics and
situation represents external influences on the individual’s behaviour
• Performance = ability × motivation — “skill-and-will” model, two specific
characteristics within the person
• Ability–motivation–opportunity (AMO) — refers to the three variables but with a
limited interpretation of the situation
• Role perceptions literature
Page 2-5
LECTURE OUTLINE
Slide 1: Individual Behaviour, Personality, and Values
Slide 2: Safety Behaviour at Mother Parkers
Mother Parkers Tea & Coffee Inc. has developed an enviable health and safety track record
by instilling safety-oriented behaviour through employee motivation, ability, role clarity, and
situational factors.
Motivation — employees are empowered through involvement in decisions about safety
Ability — employees are trained on safety procedures and learn current developments from
community experts
Role perceptions — employees are continuously reminded about importance of safety; daily
shift handovers begin with safety discussion
Situational factors — production systems include built-in accident prevention features;
highly visible floor markers cue employees about forklift travel areas; communication
boards display the latest safety improvement statistics as well as key safety information
Slide 3: MARS Model of Individual Behaviour
Individual voluntary behaviour and performance is influenced by motivation, ability, role
perceptions, and situational factors
• Represented by the acronym MARS
• Need to understand all four factors to diagnose and influence individual behaviour and
performance
MARS is built on earlier models of individual behaviour and performance:
• Performance = person × situation — person includes individual characteristics and
situation represents external influences on the individual’s behaviour
• Performance = ability × motivation — “skill-and-will” model, two specific
characteristics within the person
• Ability–motivation–opportunity (AMO) — refers to the three variables but with a
limited interpretation of the situation
• Role perceptions literature
Page 2-5
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Chapter 2: Individual Behaviour, Personality, and Values
Slide 4: Employee Motivation
Internal forces (cognitive and emotional conditions) that affect a person’s voluntary choice
of behaviour
• Direction – path along which people steer their effort — motivation is goal-directed,
not random
• Intensity – amount of effort allocated to the goal
• Persistence – continuing the effort for a certain amount of time
Slide 5: Employee Ability
Natural aptitudes and learned capabilities required to successfully complete a task
• Aptitudes – natural talents that help people learn specific tasks more quickly and
perform them better
• Learned capabilities – acquired physical and mental skills and knowledge
Person-job matching – produces higher performance and tends to increase the employee’s
well-being
1. Select applicants who demonstrate the required competencies
2. Provide training to enhance individual performance and results
3. Redesign the job so employees perform only tasks they are currently able to perform
Slide 6: Role Perceptions
The extent to which people understand the job duties (roles) assigned to or expected of
them.
Role perceptions are clearer (role clarity) when we:
• Understand which tasks or consequences we are accountable for
• Understand the priority of tasks and performance expectations
• Understand the preferred behaviours/procedures for tasks
Benefits of clear role perceptions:
• More accurate/efficient job performance (due to clearer direction of effort)
• Better coordination with others
• Higher motivation due to clearer link between effort and outcomes
Page 2-6
Slide 4: Employee Motivation
Internal forces (cognitive and emotional conditions) that affect a person’s voluntary choice
of behaviour
• Direction – path along which people steer their effort — motivation is goal-directed,
not random
• Intensity – amount of effort allocated to the goal
• Persistence – continuing the effort for a certain amount of time
Slide 5: Employee Ability
Natural aptitudes and learned capabilities required to successfully complete a task
• Aptitudes – natural talents that help people learn specific tasks more quickly and
perform them better
• Learned capabilities – acquired physical and mental skills and knowledge
Person-job matching – produces higher performance and tends to increase the employee’s
well-being
1. Select applicants who demonstrate the required competencies
2. Provide training to enhance individual performance and results
3. Redesign the job so employees perform only tasks they are currently able to perform
Slide 6: Role Perceptions
The extent to which people understand the job duties (roles) assigned to or expected of
them.
Role perceptions are clearer (role clarity) when we:
• Understand which tasks or consequences we are accountable for
• Understand the priority of tasks and performance expectations
• Understand the preferred behaviours/procedures for tasks
Benefits of clear role perceptions:
• More accurate/efficient job performance (due to clearer direction of effort)
• Better coordination with others
• Higher motivation due to clearer link between effort and outcomes
Page 2-6
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Chapter 2: Individual Behaviour, Personality, and Values
Slide 7: Situational Factors
Environmental conditions beyond the individual’s immediate control that constrain or
facilitate behaviour and performance
• Constraints – e.g. time, budget, work facilities, consumer preferences, economic
conditions
• Cues – clarity and consistency of cues provided by the environment to employees
regarding their role obligations e.g. lack of signs of nearby safety hazards
Slide 8: Types of Individual Behaviour (five categories)
Task performance
Voluntary goal-directed behaviours under the individual’s control that contribute to
organizational objectives
• Involve working with people, data, things, and ideas
Three types of performance:
1. Proficient task performance — employees work efficiently and accurately
2. Adaptive task performance — employees modify their thoughts and behaviour to align
with and support a new or changing environment
3. Proactive task performance — employees take initiative to anticipate and initiate new
work patterns that benefit the organization
Organizational citizenship behaviours (OCBs)
Various forms of cooperation and helpfulness to others that support the organization’s
social and psychological context
Directed toward:
• Individuals — e.g. adjusting work schedule to accommodate coworkers
• Organization — e.g., supporting the company’s public image
OCBs may be a job requirement (not discretionary) even if they aren’t explicitly stated
OCBs can have a significant effect on individual, team, and organizational effectiveness
Page 2-7
Slide 7: Situational Factors
Environmental conditions beyond the individual’s immediate control that constrain or
facilitate behaviour and performance
• Constraints – e.g. time, budget, work facilities, consumer preferences, economic
conditions
• Cues – clarity and consistency of cues provided by the environment to employees
regarding their role obligations e.g. lack of signs of nearby safety hazards
Slide 8: Types of Individual Behaviour (five categories)
Task performance
Voluntary goal-directed behaviours under the individual’s control that contribute to
organizational objectives
• Involve working with people, data, things, and ideas
Three types of performance:
1. Proficient task performance — employees work efficiently and accurately
2. Adaptive task performance — employees modify their thoughts and behaviour to align
with and support a new or changing environment
3. Proactive task performance — employees take initiative to anticipate and initiate new
work patterns that benefit the organization
Organizational citizenship behaviours (OCBs)
Various forms of cooperation and helpfulness to others that support the organization’s
social and psychological context
Directed toward:
• Individuals — e.g. adjusting work schedule to accommodate coworkers
• Organization — e.g., supporting the company’s public image
OCBs may be a job requirement (not discretionary) even if they aren’t explicitly stated
OCBs can have a significant effect on individual, team, and organizational effectiveness
Page 2-7
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Chapter 2: Individual Behaviour, Personality, and Values
Slide 9: Types of Individual Behaviour (cont’d)
Counterproductive work behaviours
Voluntary behaviours that have the potential to directly or indirectly harm the organization
— e.g. harassing co-workers, creating unnecessary conflict, avoiding work obligations
Joining and staying with the organization
Forming the employment relationship and remaining with the organization
Maintaining work attendance
Absences due to situation (weather), motivation (avoiding stressful workplace)
Presenteeism – attending scheduled work when one’s capacity to perform is significantly
diminished by illness or other factors
Slide 10: Personality in Organizations
Personality defined — relatively enduring pattern of thoughts, emotions, and behaviours
that characterize a person, along with the psychological processes behind those
characteristics
• External traits – observable behaviours
• Internal states – infer thoughts, values, and emotions from observable behaviours
Personality traits — categories of behaviour tendencies caused by internal characteristics
(not environment)
Traits apparent across situations, but people do vary their behaviour to suit the situation,
even if the behaviour is at odds with their personality
• e.g. talkative people may talk less in a library where “no talking” rules are explicit and
enforced
Slide 11: Nature vs Nurture of Personality
Nature: Heredity explains about 50 percent of behavioural tendencies and 30 percent of
temperament preferences.
• e.g. Minnesota studies found that some types of twins have similar personalities not
due to similar environments
Nurture: Socialization, life experiences, and other interactions with the environment also
affect personality
Personality stabilizes in young adulthood (about age 30, possibly older)
• We form a clearer and more rigid self-concept as we get older.
Page 2-8
Slide 9: Types of Individual Behaviour (cont’d)
Counterproductive work behaviours
Voluntary behaviours that have the potential to directly or indirectly harm the organization
— e.g. harassing co-workers, creating unnecessary conflict, avoiding work obligations
Joining and staying with the organization
Forming the employment relationship and remaining with the organization
Maintaining work attendance
Absences due to situation (weather), motivation (avoiding stressful workplace)
Presenteeism – attending scheduled work when one’s capacity to perform is significantly
diminished by illness or other factors
Slide 10: Personality in Organizations
Personality defined — relatively enduring pattern of thoughts, emotions, and behaviours
that characterize a person, along with the psychological processes behind those
characteristics
• External traits – observable behaviours
• Internal states – infer thoughts, values, and emotions from observable behaviours
Personality traits — categories of behaviour tendencies caused by internal characteristics
(not environment)
Traits apparent across situations, but people do vary their behaviour to suit the situation,
even if the behaviour is at odds with their personality
• e.g. talkative people may talk less in a library where “no talking” rules are explicit and
enforced
Slide 11: Nature vs Nurture of Personality
Nature: Heredity explains about 50 percent of behavioural tendencies and 30 percent of
temperament preferences.
• e.g. Minnesota studies found that some types of twins have similar personalities not
due to similar environments
Nurture: Socialization, life experiences, and other interactions with the environment also
affect personality
Personality stabilizes in young adulthood (about age 30, possibly older)
• We form a clearer and more rigid self-concept as we get older.
Page 2-8
Loading page 24...
Chapter 2: Individual Behaviour, Personality, and Values
• Executive function (part of the brain that manages goal-directed behaviour) tries to
keep our behaviour consistent with self-concept.
• Some personality traits change throughout life — e.g., agreeableness,
conscientiousness continue to increase in later years.
Slide 12: Five-Factor Personality Model (CANOE or OCEAN)
Conscientiousness
• High: organized, dependable, goal-focused, thorough, disciplined, methodical,
industrious
• Low: careless, disorganized, less thorough
Agreeableness
• High: trusting, helpful, good-natured, considerate, tolerant, selfless, generous,
flexible
• Low: uncooperative, intolerant of others’ needs, more suspicious, self-focused
Neuroticism
• High: anxious, insecure, self-conscious, depressed, temperamental
• Low (high emotional stability): poised, secure, calm
Openness to experience
• High: imaginative, creative, unconventional, curious, nonconforming, autonomous,
aesthetically perceptive
• Low: resistant to change, less open to new ideas, more conventional and fixed in their
ways
Extraversion
• High: outgoing, talkative, energetic, sociable, assertive
• Low (introversion): quiet, cautious, less interactive with others
Page 2-9
• Executive function (part of the brain that manages goal-directed behaviour) tries to
keep our behaviour consistent with self-concept.
• Some personality traits change throughout life — e.g., agreeableness,
conscientiousness continue to increase in later years.
Slide 12: Five-Factor Personality Model (CANOE or OCEAN)
Conscientiousness
• High: organized, dependable, goal-focused, thorough, disciplined, methodical,
industrious
• Low: careless, disorganized, less thorough
Agreeableness
• High: trusting, helpful, good-natured, considerate, tolerant, selfless, generous,
flexible
• Low: uncooperative, intolerant of others’ needs, more suspicious, self-focused
Neuroticism
• High: anxious, insecure, self-conscious, depressed, temperamental
• Low (high emotional stability): poised, secure, calm
Openness to experience
• High: imaginative, creative, unconventional, curious, nonconforming, autonomous,
aesthetically perceptive
• Low: resistant to change, less open to new ideas, more conventional and fixed in their
ways
Extraversion
• High: outgoing, talkative, energetic, sociable, assertive
• Low (introversion): quiet, cautious, less interactive with others
Page 2-9
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Chapter 2: Individual Behaviour, Personality, and Values
Slide 13: Five Factor Personality & Individual Behaviour
Personality mainly affects behaviour and performance through motivation — influences
direction and intensity of effort
All Big 5 dimensions predict individual behaviour to some extent
• Some specific traits (e.g. assertiveness) may be better predictors than overall dimension
(e.g. extraversion)
• Personality effect on behaviour may be nonlinear (moderate is better than too little/much)
Personality predictors of proficient task performance
• Conscientiousness is best personality predictor of proficient task performance
➡ Especially industriousness (achievement, self-discipline, purposefulness) and dutifulness
➡ Set higher personal goals, more persistent
• Extraversion second best personality predictor of proficient task performance
➡ Especially specific traits of assertiveness and positive emotionality
➡ Assertive employees frame situations as challenges rather than threats
Personality predictors of adaptive task performance
• Emotional stability (low neuroticism): cope with ambiguity and uncertainty of change
• Extraversion (especially assertiveness): comfortable influencing others, engaging with
environment
• Openness to experience: have more curiosity, imagination, and tolerance of change
Personality predictors of proactive task performance
• Extraversion (especially assertiveness): comfortable influencing others, engaging with
environment
• Openness to experience: have more curiosity, imagination, and tolerance of change
Personality predictors of organizational citizenship
• Conscientiousness: more dutiful, dependable
• Agreeableness: motivated to be cooperative, sensitive, flexible, and supportive
Personality predictors of counterproductive work behaviours
• Conscientiousness (negative correlation): people with low conscientiousness are less
dependable and feel less obligation toward others
• Agreeableness (negative correlation): people with low agreeableness are less caring of
others, less need to be liked
Page 2-10
Slide 13: Five Factor Personality & Individual Behaviour
Personality mainly affects behaviour and performance through motivation — influences
direction and intensity of effort
All Big 5 dimensions predict individual behaviour to some extent
• Some specific traits (e.g. assertiveness) may be better predictors than overall dimension
(e.g. extraversion)
• Personality effect on behaviour may be nonlinear (moderate is better than too little/much)
Personality predictors of proficient task performance
• Conscientiousness is best personality predictor of proficient task performance
➡ Especially industriousness (achievement, self-discipline, purposefulness) and dutifulness
➡ Set higher personal goals, more persistent
• Extraversion second best personality predictor of proficient task performance
➡ Especially specific traits of assertiveness and positive emotionality
➡ Assertive employees frame situations as challenges rather than threats
Personality predictors of adaptive task performance
• Emotional stability (low neuroticism): cope with ambiguity and uncertainty of change
• Extraversion (especially assertiveness): comfortable influencing others, engaging with
environment
• Openness to experience: have more curiosity, imagination, and tolerance of change
Personality predictors of proactive task performance
• Extraversion (especially assertiveness): comfortable influencing others, engaging with
environment
• Openness to experience: have more curiosity, imagination, and tolerance of change
Personality predictors of organizational citizenship
• Conscientiousness: more dutiful, dependable
• Agreeableness: motivated to be cooperative, sensitive, flexible, and supportive
Personality predictors of counterproductive work behaviours
• Conscientiousness (negative correlation): people with low conscientiousness are less
dependable and feel less obligation toward others
• Agreeableness (negative correlation): people with low agreeableness are less caring of
others, less need to be liked
Page 2-10
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Chapter 2: Individual Behaviour, Personality, and Values
Other information about personality and individual behaviour
• Effective leaders and salespeople tend to be somewhat more extraverted than general
population
• Agreeableness is a fairly good personality predictor of performance as team members and
in customer service jobs
• Openness to experience is associated with successful performance in creative work
• Conscientiousness is usually a weak predictor of adaptive and proactive performance
(people with high conscientiousness tend to require more structure, clarity)
• Agreeableness is usually a weak predictor of proficient or proactive task performance
(people with high agreeableness tend to have lower motivation to set goals, achieve
results)
Slide 14: Jungian Personality Theory
Swiss psychiatrist Carl Jung proposed that personality is primarily represented by the
individual’s preferences regarding perceiving the environment and judging (obtaining and
processing) information
Myers-Briggs Type Indicator (MBTI)
• Estimates Jungian personality types
• Most widely used personality test
• Most widely studied measure of cognitive style
• Adopts a neutral view of score results (higher vs lower are different, not better or
worse)
• Improves self-awareness and mutual understanding — i.e. good for career counselling
and executive coaching
• Poor at predicting job performance, effective leadership, or team development
Slide 15: Jungian and Myers-Briggs Types
Extroversion versus introversion (E – I)
• Similar to five-factor dimension
Perceiving information (S – N)
• Sensing – perceiving information directly through the five senses to acquire factual
and quantitative details
• Intuition – relies on insight and subjective experience
Page 2-11
Other information about personality and individual behaviour
• Effective leaders and salespeople tend to be somewhat more extraverted than general
population
• Agreeableness is a fairly good personality predictor of performance as team members and
in customer service jobs
• Openness to experience is associated with successful performance in creative work
• Conscientiousness is usually a weak predictor of adaptive and proactive performance
(people with high conscientiousness tend to require more structure, clarity)
• Agreeableness is usually a weak predictor of proficient or proactive task performance
(people with high agreeableness tend to have lower motivation to set goals, achieve
results)
Slide 14: Jungian Personality Theory
Swiss psychiatrist Carl Jung proposed that personality is primarily represented by the
individual’s preferences regarding perceiving the environment and judging (obtaining and
processing) information
Myers-Briggs Type Indicator (MBTI)
• Estimates Jungian personality types
• Most widely used personality test
• Most widely studied measure of cognitive style
• Adopts a neutral view of score results (higher vs lower are different, not better or
worse)
• Improves self-awareness and mutual understanding — i.e. good for career counselling
and executive coaching
• Poor at predicting job performance, effective leadership, or team development
Slide 15: Jungian and Myers-Briggs Types
Extroversion versus introversion (E – I)
• Similar to five-factor dimension
Perceiving information (S – N)
• Sensing – perceiving information directly through the five senses to acquire factual
and quantitative details
• Intuition – relies on insight and subjective experience
Page 2-11
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Chapter 2: Individual Behaviour, Personality, and Values
Judging i.e. making decisions (T – F)
• Thinking – rely on rational cause-effect logic and systematic data collection to make
decisions
• Feeling – rely on emotional responses to the options as well as how those choices
affect others
Orientation toward the outside world (P – J)
• Perceiving – open curious, flexible, adapt spontaneously to events, prefer to keep
options open
• Judging – prefer order and structure; want to resolve problems quickly
Slide 16: Values in the Workplace
Stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a
variety of situations
• Define right/wrong, good/bad
• Tell us what we “ought” to do (moral compass)
• Direct our motivation and, potentially, our decisions and behaviour
Value system — hierarchy of preferences — relatively stable, long-lasting
Values exist within individuals, but OB also refers to shared values within a team,
department, organization, profession, and society
Values differ from personality traits
• Values are evaluative (what we ought to do); personality traits are descriptive (what
we tend to do)
• Values conflict with each other (e.g. valuing excitement conflicts with valuing
stability); personality traits have minimal conflict
• Values affected more by nurture (socialization, reinforcement) than nature (heredity);
personality about equally affected by nature and nurture
Page 2-12
Judging i.e. making decisions (T – F)
• Thinking – rely on rational cause-effect logic and systematic data collection to make
decisions
• Feeling – rely on emotional responses to the options as well as how those choices
affect others
Orientation toward the outside world (P – J)
• Perceiving – open curious, flexible, adapt spontaneously to events, prefer to keep
options open
• Judging – prefer order and structure; want to resolve problems quickly
Slide 16: Values in the Workplace
Stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a
variety of situations
• Define right/wrong, good/bad
• Tell us what we “ought” to do (moral compass)
• Direct our motivation and, potentially, our decisions and behaviour
Value system — hierarchy of preferences — relatively stable, long-lasting
Values exist within individuals, but OB also refers to shared values within a team,
department, organization, profession, and society
Values differ from personality traits
• Values are evaluative (what we ought to do); personality traits are descriptive (what
we tend to do)
• Values conflict with each other (e.g. valuing excitement conflicts with valuing
stability); personality traits have minimal conflict
• Values affected more by nurture (socialization, reinforcement) than nature (heredity);
personality about equally affected by nature and nurture
Page 2-12
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Chapter 2: Individual Behaviour, Personality, and Values
Slide 17: Schwartz’s Values Model
Dominant model of personal values was developed and tested by social psychologist
Shalom Schwartz and many others
57 specific values cluster into 10 broad value categories — further clustered into four
quadrants
Openness to change
• Motivated to pursue innovative ways
Conservation
• Motivated to preserve the status quo
Self-enhancement
• Motivated by self-interest
Self-transcendence
• Motivated to promote the welfare of others and nature
Slide 18: Personal Values and Behaviour
How personal values influence decisions and behaviour:
• Directly motivate behaviour by affecting the relative attractiveness (valence) of the
choices available — more positive feelings toward choices consistent with our values
• Indirectly motivate behaviour by framing perceptions — influence whether we notice
something and how we interpret it
• Motivated to act consistently with self-concept and public self — values are part of our
identity and image
Why values often fail to influence decisions and behaviour:
• Situation — prevent behaviour consistent with values or motivate behaviour contrary
to values (i.e., opportunity and counter motivation effects)
• Awareness (salience) — we often ignore values in our decisions/actions because:
➡ Values are abstract (difficult to link to specific behaviour)
➡ Behaviour is often routine, so less mindful of consistency with personal values
Page 2-13
Slide 17: Schwartz’s Values Model
Dominant model of personal values was developed and tested by social psychologist
Shalom Schwartz and many others
57 specific values cluster into 10 broad value categories — further clustered into four
quadrants
Openness to change
• Motivated to pursue innovative ways
Conservation
• Motivated to preserve the status quo
Self-enhancement
• Motivated by self-interest
Self-transcendence
• Motivated to promote the welfare of others and nature
Slide 18: Personal Values and Behaviour
How personal values influence decisions and behaviour:
• Directly motivate behaviour by affecting the relative attractiveness (valence) of the
choices available — more positive feelings toward choices consistent with our values
• Indirectly motivate behaviour by framing perceptions — influence whether we notice
something and how we interpret it
• Motivated to act consistently with self-concept and public self — values are part of our
identity and image
Why values often fail to influence decisions and behaviour:
• Situation — prevent behaviour consistent with values or motivate behaviour contrary
to values (i.e., opportunity and counter motivation effects)
• Awareness (salience) — we often ignore values in our decisions/actions because:
➡ Values are abstract (difficult to link to specific behaviour)
➡ Behaviour is often routine, so less mindful of consistency with personal values
Page 2-13
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Chapter 2: Individual Behaviour, Personality, and Values
Slide 19: Values Congruence*
Values congruence — how similar a person’s values hierarchy is to the values hierarchy of
the organization, a co-worker, or another source
Congruence with team values — higher team cohesion and performance
Congruence with organization’s values — higher job satisfaction, loyalty, and organizational
citizenship, lower stress and turnover
* Note: We use “values” (plural) because values operate as a set, not individually, and
because “value” is easily confused with the economic concept of worth of something
relative to price
Slide 20: Ethical Values and Behaviour
Ethics — the study of moral principles or values that determine whether actions are right or
wrong and outcomes are good or bad
Three Ethical Principles
• Utilitarianism
• Seek greatest good for the greatest number of people — highest overall satisfaction
• Problem: Cost-benefit analysis — but some outcomes aren’t measurable
• Problem: Focuses on the consequences, but means of achieving consequences could
be immoral
• Individual rights principle
• Everyone has same natural rights, not just legal rights — e.g. freedom of speech
• Problem: conflicting rights — e.g. shareholders’ right to be informed conflicts with
CEO’s right to privacy
• Distributive justice principle
• Benefits and burdens should be proportional — e.g. similar rewards for those who
contribute equally in their work
• Inequalities are acceptable when they benefit the least well off
• Problem: difficult to agree on “similar” rewards and contributions
Page 2-14
Slide 19: Values Congruence*
Values congruence — how similar a person’s values hierarchy is to the values hierarchy of
the organization, a co-worker, or another source
Congruence with team values — higher team cohesion and performance
Congruence with organization’s values — higher job satisfaction, loyalty, and organizational
citizenship, lower stress and turnover
* Note: We use “values” (plural) because values operate as a set, not individually, and
because “value” is easily confused with the economic concept of worth of something
relative to price
Slide 20: Ethical Values and Behaviour
Ethics — the study of moral principles or values that determine whether actions are right or
wrong and outcomes are good or bad
Three Ethical Principles
• Utilitarianism
• Seek greatest good for the greatest number of people — highest overall satisfaction
• Problem: Cost-benefit analysis — but some outcomes aren’t measurable
• Problem: Focuses on the consequences, but means of achieving consequences could
be immoral
• Individual rights principle
• Everyone has same natural rights, not just legal rights — e.g. freedom of speech
• Problem: conflicting rights — e.g. shareholders’ right to be informed conflicts with
CEO’s right to privacy
• Distributive justice principle
• Benefits and burdens should be proportional — e.g. similar rewards for those who
contribute equally in their work
• Inequalities are acceptable when they benefit the least well off
• Problem: difficult to agree on “similar” rewards and contributions
Page 2-14
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Chapter 2: Individual Behaviour, Personality, and Values
Slide 21: Influences on Ethical Conduct
Moral intensity
• The degree that an issue demands the application of ethical principles
• High moral intensity
• More significant ethical outcomes
• Need to more carefully apply ethical principles
• Moral intensity higher when:
• Decision has substantially good or bad consequences
• High agreement among others that outcomes are good-bad (not diverse beliefs)
• High probability that good-bad outcomes will occur from the decision
• Many people will be affected by the decision
Moral sensitivity (ethical sensitivity)
• A person’s ability to detect a moral dilemma and estimate its relative importance
• Enables quicker and more accurate estimation of an issue’s moral intensity
• Not more ethical behaviour, just better awareness of a moral situation
• Moral sensitivity is higher in people with:
1. Expertise — knowledge of prescriptive norms and rules (e.g. accounting)
2. Past experience with specific moral dilemmas — internal cues develop to trigger
awareness when moral issue arises again
3. Empathy — people with higher empathy are more sensitive to the needs and situation
of others
4. A self-view as an ethical person — put more energy into maintaining ethical conduct
5. Mindfulness
➡ Receptive and impartial attention to and awareness of the present situation as well
as to one’s own thoughts and emotions in that moment
➡ Involves actively monitoring the environment, so increases moral sensitivity
➡ Problem: natural tendency to minimize effort, which leads to less mindfulness
Situational influences
• External forces to act contrary to moral principles and personal values
Page 2-15
Slide 21: Influences on Ethical Conduct
Moral intensity
• The degree that an issue demands the application of ethical principles
• High moral intensity
• More significant ethical outcomes
• Need to more carefully apply ethical principles
• Moral intensity higher when:
• Decision has substantially good or bad consequences
• High agreement among others that outcomes are good-bad (not diverse beliefs)
• High probability that good-bad outcomes will occur from the decision
• Many people will be affected by the decision
Moral sensitivity (ethical sensitivity)
• A person’s ability to detect a moral dilemma and estimate its relative importance
• Enables quicker and more accurate estimation of an issue’s moral intensity
• Not more ethical behaviour, just better awareness of a moral situation
• Moral sensitivity is higher in people with:
1. Expertise — knowledge of prescriptive norms and rules (e.g. accounting)
2. Past experience with specific moral dilemmas — internal cues develop to trigger
awareness when moral issue arises again
3. Empathy — people with higher empathy are more sensitive to the needs and situation
of others
4. A self-view as an ethical person — put more energy into maintaining ethical conduct
5. Mindfulness
➡ Receptive and impartial attention to and awareness of the present situation as well
as to one’s own thoughts and emotions in that moment
➡ Involves actively monitoring the environment, so increases moral sensitivity
➡ Problem: natural tendency to minimize effort, which leads to less mindfulness
Situational influences
• External forces to act contrary to moral principles and personal values
Page 2-15
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Business Management