Lecture Notes for Canadian Organizational Behaviour, 10th Edition

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Chapter 1: Introduction to the Field of Organizational BehaviourInstructor’s Manual to AccompanyCanadianOrganizationalBehaviour 10/eby Steven L. McShane, Kevin Tasa, and Sandra SteenChapter 1:Introduction to the Field ofOrganizational BehaviourPrepared by:Steven L. McShane (Curtin University andUniversity of Victoria)Kevin Tasa (York University)Sandra L. Steen (University of Regina)Page 1-1

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Chapter 1: Introduction to the Field of Organizational BehaviourIntroduction to the Fieldof Organizational BehaviourLEARNING OBJECTIVESAfter reading this chapter, students should be able to:1-1Define organizational behaviour and organizations, and discuss the importance of this field of inquiry.1-2Debate the organizational opportunities and challenges of technological change, globalization, emergingemployment relationships, and workforce diversity.1-3Discuss the anchors on which organizational behaviour knowledge is based.1-4Compare and contrast the four perspectives of organizational effectiveness.CHAPTER GLOSSARYcorporate social responsibility (CSR) — organizationalactivities intended to benefit society and theenvironment beyond the firm’s immediate financialinterests or legal obligationsdeep-level diversity — differences in the psychologicalcharacteristics of employees, including personalities,beliefs, values, and attitudesethics – the study of moral principles or values thatdetermine whether actions are right or wrong andoutcomes are good or badevidence-based management — the practice of makingdecisions and taking actions based on research evidenceglobalization — economic, social, and culturalconnectivity with people in other parts of the worldhigh performance work practices (HPWP) — aperspective that holds that effective organizationsincorporate several workplace practices that leveragethe potential of human capitalhuman capital — the stock of knowledge, skills, andabilities among employees that provide economic valueto the organizationintellectual capital — a company’s stock of knowledge,including human capital, structural capital andrelationship capitallearning orientation — beliefs and norms that supportthe acquisition, sharing, and use of knowledge as well aswork conditions that nurture these learning processesopen systems — a perspective that holds thatorganizations depend on the external environment forresources, affect that environment through their output,and consist of internal subsystems that transform inputsinto outputsorganizational behaviour (OB) — the study of whatpeople think, feel, and do in and around organizationsorganizational effectiveness — a broad conceptrepresented by several perspectives, including theorganization’s fit with the external environment, internalsubsystems configuration for high-performance,emphasis on organizational learning, and ability tosatisfy the needs of key stakeholdersorganizational learning — a perspective that holds thatorganizational effectiveness depends on theorganization’s capacity to acquire, share, use, and storevaluable knowledgePage 1-21

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Chapter 1: Introduction to the Field of Organizational Behaviourorganizations — croups of people who workinterdependently toward some purposerelationship capital — the value derived from anorganization’s relationships with customers, suppliers,and othersstakeholders — individuals, organizations, or otherentities who affect, or are affected by, the organization’sobjectives and actionsstructural capital — knowledge embedded in anorganization’s systems and structures.surface-level diversity — the observable demographic orphysiological differences in people, such as their race,ethnicity, gender, age, and physical disabilitiestelecommuting — an arrangement whereby, supportedby information technology, employees work from homeone or more work days per month rather than commuteto the officevalues — relatively stable, evaluative beliefs that guide aperson’s preferences for outcomes or courses of action ina variety of situationswork-life balance — the degree to which a personminimizes conflict between work and nonworkdemandsCHAPTER SUMMARY BY LEARNING OBJECTIVE1-1 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 organizationalevents. OB knowledge is for everyone, not just managers. OB theories and practices are highly beneficial for anorganization’s survival and success.1-2 Debate the organizational opportunities and challenges of technological change, globalization, emergingemployment relationships, and increasing workforce diversity.Technological change has improved efficiency, interactivity, and wellbeing, but it has also been a disruptive force inorganizations. Information technology has altered communication patterns and power dynamics at work, and hashad effects on our nonwork time, attention span, and techno-stress. Globalization, which refers to various forms ofconnectivity with people in other parts of the world, has become more intense than ever before becauseinformation technology and transportation systems. It has brought more complexity and new ways of working tothe workplace, requires additional knowledge and skills. It may be an influence on work intensification, reducedjob security, and lessening work–life balance.An emerging employment relationship trend is the blurring of work and nonwork time, and the associated call formore work–life balance (minimizing conflict between work and nonwork demands). Another employment trend istelecommuting, whereby employees work from home one or more work days per month rather than commute tothe office. Telecommuting potentially benefits employees and employers, but there are also disadvantages and itseffectiveness depends on the employee, job, and organization. An organization's workforce has both surface-leveldiversity (observable demographic and other overt differences in people) and deep-level diversity (differences inpersonalities, beliefs, values, and attitudes). Diversity may improve creativity and decision making, and providebetter awareness and response to diverse communities. However, diversity also poses challenges, such asdysfunctional conflict and slower team development.Page 1-3

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Chapter 1: Introduction to the Field of Organizational Behaviour1-3 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 anchorstates 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 consequencesin different situations. The multiple levels of analysis anchor states that OB topics may be viewed from theindividual, 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 externalenvironment, depend on it for resources, then use organizational subsystems to transform those resources intooutputs, which are returned to the environment. Organizations receive feedback to maintain a good “fit” with thatenvironment. Fit occurs by adapting to the environment, influencing the environment, or moving to a morefavourable environment. Effective transformation processes are efficient, adaptable, and innovative. Theorganizational 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 toleverage workforce potential. The most widely identified HPWPs are employee involvement, job autonomy,developing employee competencies, and performance-/skill-based rewards. HPWPs improve organizationaleffectiveness by building human capital, increasing adaptability, and strengthening employee motivation andattitudes. 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 ontheir personal and organizational values for guidance. Ethics and corporate social responsibility (CSR) are naturalvariations of values-based organizations. CSR consists of organizational activities intended to benefit society andthe environment beyond the firm’s immediate financial interests or legal obligations.Page 1-4

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Chapter 1: Introduction to the Field of Organizational BehaviourLECTURE OUTLINESlide 1: Introduction to the Field of Organizational BehaviourSlide 2:ShopifyOttawa-based Shopify is a rapidly growing technology success story due to its focus onteamwork, employee motivation, organizational culture, and other effective organizationalbehaviour practices.Slide 3: Organizational Behaviour and OrganizationsOrganizational behaviour (OB)• Studies what people think, feel, and do in and around organizationsOrganizations• Groups of people who work interdependently toward some purpose• Collective entities• Collective sense of purposeSlide 4: Importance of OBOB 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 achievement2. 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 decisionsPage 1-5

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Chapter 1: Introduction to the Field of Organizational BehaviourContemporary Developments Facing OrganizationsSlide 5: Technological ChangeLong history as a disruptive force in organizations (waterwheels, cotton gins, steamengines, microprocessors, etc.)Effects of technological change• Higher productivity, but also usually displaces employees and makes entireoccupations obsolete• Alter relationships and patterns of behaviour with coworkers, clients, etc• Improve health and wellbeingEffects of information technology (email, social media, etc)• Potential benefits — may give employees a stronger voice through directcommunication with executives and broader distribution of their opinions• Potential problems — less work = nonwork separation, longer hours, reducing theirattention spans at work, and increasing techno-stress• Information technology may eventually change the form of organizations —organizations as networks rather than places to workSlide 6: GlobalizationEconomic, 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 transportationsystemsEffects 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 additionalknowledge and skills e.g. global mindsetPage 1-6

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Chapter 1: Introduction to the Field of Organizational BehaviourSlide 7: Emerging Employment RelationshipsEmployment 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 demandsRemote 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 officeSlide 8: Telecommuting Benefits and ProblemsTelecommuting 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 worktime, ability to work when weather prevents office work• Better for the environment — less pollution, road use• Lower real estate costs for companyTelecommuting disadvantages• Less connection with coworkers, more social isolation in general• Less informal communication that helps career (word-of-mouth information aboutpromotional opportunities)• Lower team cohesion and a weaker organizational cultureBenefits of remote work depend on (contingencies):• Employee characteristics — higher self-motivation, self-organization, need forautonomy, skill with information technology, and fulfill their social needs outside work• Jobs characteristics — tasks don’t use workplace resources, the work is performedindependently from coworkers, task performance is measurable• Organizational characteristics — rewarding employees for performance not officepresence (face time), actions to maintain team cohesion and psychologicalconnectedness with the organization — limit telecommuting days, have specialmeetings/events, video communicationPage 1-7

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Chapter 1: Introduction to the Field of Organizational BehaviourSlide 9: Increasing Workforce DiversitySurface-level diversity• Observable demographic or physiological differences in people (e.g. race, ethnicity,gender, age, physical capabilities)• Increasing surface-level diversity in many countriesDeep-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. genderdifferences in values, attitudes, personality, etc.)Consequences of diversity – opportunities and challenges• Teams with high informational diversity (different knowledge and skills) — morecreativity, 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 imperativesSlide 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 hypothesesEvidence-based management• Making decisions and taking actions on research evidence• Scientific method, not fads and personal beliefs that are untestedWhy 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 toignore contrary evidence.Page 1-8

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Chapter 1: Introduction to the Field of Organizational Behaviour2. 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 singlesolution is best all the time.• Need to understand and diagnose the situation and select the strategy mostappropriate under those conditions4. 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 howorganizations interact with their environment• OB topics usually relevant at all three levels of analysisSlide 12: Organizational EffectivenessOrganizational 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 itsstated objectives• Problem 1: Setting easy goals might produce lower outcomes than competitors orpotential.• 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/adaptabletransformation processes• Organizational learning: effectively acquire, share, use, store knowledgePage 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 andadaptive internal subsystems• Stakeholder: satisfy the needs of key stakeholders with values, ethics, and socialresponsibilityOrganizational effectiveness integrates all four perspectivesSlide 13: Open Systems Perspective (1 of 2)Organizations are complex systems that “live” within (and depend upon) the externalenvironmentEffective organizations• Maintain a close “fit” with those changing conditions• Transform inputs to outputs efficiently and flexiblyOpen systems perspective is the foundation on which the other three effectivenessperspectives are builtSlide 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. lawsInternal subsystems – transform outputs into inputs• E.g. departments, teams, informal groups, information systems, and technologicalprocesses• Transformation processes are effective through: efficiency, adaptability, innovativeness• Coordination — critical for effective transformation in complex systemsOrganization–Environment FitTo maintain a good “fit” with the environment, effective organizations1. Adapt to the environment — adaptive firms have a “dynamic capability”2. Influence the environment — marketing, lobbying, exclusive agreements3. Move to a more favourable environmentInternal Subsystems Effectiveness – defines effectiveness on how well the organizationtransforms inputs to outputs• Organizational efficiency (productivity)• Coordination is vital in the relationship among internal subsystemsPage 1-10

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Chapter 1: Introduction to the Field of Organizational BehaviourSlide 15: Organizational Learning PerspectiveAn organization’s effectiveness depends on capacity to acquire, share, use, and storevaluable knowledgeNeed to consider both stock and flow of knowledge• Stock of knowledge: intellectual capital• Flow of knowledge: processes of acquiring, sharing, using, and storing knowledgeSlide 16: Intellectual CapitalHuman 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 technologyStructural capital• Knowledge captured and retained in an organization’s systems and structures, e.g.documentation, finished productsRelationship capital• Value from organization’s relationships with customers, suppliers, others who provideadded mutual value for the organizationSlide 17: Organizational Learning Processes1. Acquiring KnowledgeBringing knowledge in from the external environment as well as through discoveryOccurs 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 discoveryPage 1-11

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Chapter 1: Introduction to the Field of Organizational Behaviour2. Sharing KnowledgeDistributing knowledge to others across the organizationOccurs through:• Structured and informal communication• Various forms of in-house learning• Intranets3. Using KnowledgeApplying knowledge in ways that add valueKnowledge 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 memoryThe storage and preservation of intellectual capitalRetain intellectual capital by:• Keeping knowledgeable employees• Systematically transferring knowledge to other employees• Transferring human capital to structural capitalOrganizational unlearning – successful companies also unlearn by• Changing routines and patterns of behaviour• Removing knowledge that no longer adds valueSlide 18: High-Performance Work Practices (HPWPs)Effective organizations incorporate several workplace practices that enhance human capitalFour HPWPs recognized in most studies:1. Employee involvement2. Job autonomy➡Involvement and autonomy strengthen employee motivation, improve decision making,organizational responsiveness, and commitment to change – together often take the formof self-directed teamsPage 1-12

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Chapter 1: Introduction to the Field of Organizational Behaviour3. Competence development➡Recruit and select people with relevant skills, knowledge, values and other personalcharacteristics➡Invest in employee training and development4. Performance/skill-based rewards➡Link performance and skill development to financial and nonfinancial rewards valued byemployeesNote: These individually improve human capital, but best when bundled togetherHPWPs improve organizational effectiveness by:• Developing employee skills and knowledge (human capital), which directly improveindividual behaviour and performance• Adapting better to rapidly changing environments — employees are better atperforming diverse tasks in unfamiliar situations• Strengthening employee motivation and positive attitudes toward the employerthrough reciprocity of employer’s investment in employeesHPWP limitations• Provides an incomplete picture of organizational effectiveness• Gaps are mostly filled by the stakeholder perspectiveSlide 19: Corporate Social Responsibility at MTNAt MTN Group, Africa’s largest mobile (cell) phone company, employees help thecommunity and environment through the company’s award-winning “21 Days of Y’elloCare” program. For example, MTN employees recently installed solar panels with batteriesto generate off-grid electricity for lighting at rural schools.Page 1-13

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Chapter 1: Introduction to the Field of Organizational BehaviourSlide 20: Stakeholder PerspectiveStakeholders: any entity who affects or is affected by the organization’s objectives andactions e.g. employees, shareholders, suppliers, unions, government, etc.Organizations are more effective when they understand, manage, and satisfy stakeholderneeds and expectationsPersonalizes the open-systems perspective• Identifies specific people and social entities in the environment• Stakeholder relations are dynamic i.e. can be negotiated, managedChallenges with understanding, managing, and satisfying stakeholder interests• Stakeholders have conflicting interests• Firms have limited resources to satisfy all stakeholdersStakeholder 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 CEOSlide 21: Stakeholders: Values and EthicsPersonal values influence how corporate boards and CEOs allocate organizational resourcesValues• Relatively stable, evaluative beliefs that guide our preferences for outcomes or coursesof action in various situations• Shared values – similar values held by groups of peopleEthics• Study of moral principles/values, determine whether actions are right/wrong andoutcomes 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 BehaviourSlide 22: Stakeholders and CSRStakeholder perspective includes corporate social responsibility (CSR)• Benefit society and the environment beyond the firm’s immediate financial interests orlegal obligations• Organization’s contract with society—serve stakeholders beyond shareholders andcustomersTriple-bottom-line philosophy• Economic – survive and be profitable• Society – maintain or improve conditions• Environment – become “greener”Slide 23: Integrative Model of OBIndividual inputs and processes influence individual outcomes which have a direct effect onthe organization’s effectivenessTeam inputs influence team processes which then affect team performance and otheroutcomesTeam processes and outcomes affect individual processes and outcomesOrganizational inputs and processes have macro-level influence on both teams andindividualsPage 1-15

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Chapter 2: Individual Behaviour, Personality, and ValuesInstructor’s Manual to AccompanyCanadianOrganizationalBehaviour 10/eby Steven L. McShane, Kevin Tasa, and Sandra SteenChapter 2:Individual Behaviour,Personality, and ValuesPrepared by:Steven L. McShane (Curtin University andUniversity of Victoria)Kevin Tasa (York University)Sandra L. Steen (University of Regina)Page 2-1

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Chapter 2: Individual Behaviour, Personality, and ValuesIndividual Behaviour,Personality, and ValuesLEARNING OBJECTIVESAfter reading this chapter, students should be able to:2-1Describe the four factors that directly influence individual behaviour and performance.2-2Summarize the five types of individual behaviour in organizations.2-3Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate toindividual behaviour in organizations.2-4Summarize Schwartz’s model of individual values and discuss the conditions where values influence behaviour.2-5Describe three ethical principles and discuss three factors that influence ethical behaviour.2-6Describe five values commonly studied across cultures.CHAPTER GLOSSARYability — the natural aptitudes and learned capabilitiesrequired to successfully complete a taskachievement-nurturing orientation — a cross-culturalvalue describing the degree to which people in a cultureemphasize competitive versus co-operative relationswith other peopleagreeableness — a personality dimension describingpeople who are trusting, helpful, good-natured,considerate, tolerant, selfless, generous, and flexiblecollectivism — a cross-cultural value describing thedegree to which people in a culture emphasize duty togroups to which people belong, and to group harmonyconscientiousness — a personality dimension describingpeople who are organized, dependable, goal-focused,thorough, disciplined, methodical, and industriouscounterproductive work behaviours (CWBs) —voluntary behaviours that have the potential to directlyor indirectly harm the organizationextraversion — a personality dimension describingpeople who are outgoing, talkative, sociable, andassertivefive-factor (Big Five) model (FFM) — the five abstractdimensions representing most personality traits:conscientiousness, emotional stability, openness toexperience, agreeableness and extraversionindividualism — a cross-cultural value describing thedegree to which people in a culture emphasizeindependence and personal uniquenessmindfulness — a person’s receptive and impartialattention to and awareness of the present situation aswell as to one’s own thoughts and emotions in thatmomentmoral intensity — the degree to which an issue demandsthe application of ethical principlesmoral sensitivity — a person’s ability to recognize thepresence of an ethical issue and determine its relativeimportancemotivation — the forces within a person that affect hisor her direction, intensity, and persistence of voluntarybehaviourPage 2-22

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Chapter 2: Individual Behaviour, Personality, and ValuesMyers-Briggs Type Indicator (MBTI) — an instrumentdesigned to measure the elements of Jungian personalitytheory, particularly preferences regarding perceivingand judging informationneuroticism — a personality dimension describingpeople who tend to be anxious, insecure, self-conscious,depressed, and temperamentalopenness to experience — a personality dimensiondescribing people who are imaginative, creative,unconventional, curious, nonconforming, autonomous,and aesthetically perceptiveorganizational citizenship behaviours (OCBs) — variousforms of cooperation and helpfulness to others thatsupport the organization’s social and psychologicalcontextpersonality — the relatively enduring pattern ofthoughts, emotions, and behaviours that characterize aperson, along with the psychological processes behindthose characteristicspower distance — a cross-cultural value describing thedegree to which people in a culture accept unequaldistribution of power in a societyrole perceptions — the extent to which a personunderstands the job duties assigned to or are expected ofhim or hertask performance — the individual’s voluntary goal-directed behaviours that contribute to organizationalobjectivesuncertainty avoidance — a cross-cultural valuedescribing the degree to which people in a culturetolerate ambiguity (low uncertainty avoidance) or feelthreatened by ambiguity and uncertainty (highuncertainty avoidance)CHAPTER SUMMARY BY LEARNING OBJECTIVE2-1Describe the four factors that directly influence individual behaviour and performance.Four variables—motivation, ability, role perceptions, and situational factors—which are represented by theacronym MARS, directly influence individual behaviour and performance. Motivation represents the forces withina person that affect his or her direction, intensity, and persistence of voluntary behaviour; ability includes both thenatural aptitudes and the learned capabilities required to successfully complete a task; role perceptions are theextent to which people understand the job duties (roles) assigned to them or expected of them; situational factorsinclude conditions beyond the employee’s immediate control that constrain or facilitate behaviour andperformance.2-2Summarize the five types of individual behaviour in organizations.There are five main types of workplace behaviour. Task performance refers to goal-directed behaviours under theindividual’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 thatsupport the organization’s social and psychological context. Counterproductive work behaviours are voluntarybehaviours that have the potential to directly or indirectly harm the organization. Joining and staying with theorganization refers to becoming and remaining a member of the organization. Maintaining work attendanceincludes minimizing absenteeism when capable of working and avoiding scheduled work when not fit (i.e., lowpresenteeism).2-3Describe personality and discuss how the “Big Five” personality dimensions and four MBTI types relate toindividual 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 thePage 2-3

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Chapter 2: Individual Behaviour, Personality, and Valuesbest overall predictors of job performance in most job groups. Extraversion and openness to experience are the bestpredictors of adaptive and proactive performance. Emotional stability (low neuroticism) is also associated withbetter adaptivity. Conscientiousness and agreeableness are the two best personality predictors of organizationalcitizenship and (negatively) of counterproductive work behaviours.Based on Jungian personality theory, the Myers-Briggs Type Indicator (MBTI) identifies competing orientations forgetting energy (extraversion versus introversion), perceiving information (sensing versus intuiting), processinginformation and making decisions (thinking versus feeling), and orienting to the external world (judging versusperceiving). The MBTI improves self-awareness for career development and mutual understanding but is morepopular than valid.2-4Summarize Schwartz’s model of individual values and discuss the conditions where values influencebehaviour.Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety ofsituations. Compared to personality traits, values are evaluative (rather than descriptive), more likely to conflictwitheach other, and are formed more from socialization than heredity. Schwartz’s model organizes 57 values into acircumplex of ten dimensions along two bipolar dimensions: from openness to change to conservation and fromself-enhancement to self-transcendence. Values influence behaviour in three ways: (1) shaping the attractiveness ofchoices, (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 thatbehaviour and on how actively we think about values and understand their relevance to the situation. Valuescongruence refers to how similar a person’s values hierarchy is to the values hierarchy of another source(organization, team, etc.)2-5Describe 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 andoutcomes 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 andburdens).Ethical behaviour is influenced by the degree to which an issue demands the application of ethicalprinciples (moral intensity), the individual’s ability to recognize the presence and relative importance of an ethicalissue (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.2-6Describe 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 ofpower); 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 andAmericans are similar in many ways, but they also have long-standing cultural differences, particularly regardingthe values of tolerance, collective rights, secularism, andpatriarchal authority.Page 2-4

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Chapter 2: Individual Behaviour, Personality, and ValuesLECTURE OUTLINESlide 1: Individual Behaviour, Personality, and ValuesSlide 2:Safety Behaviour at Mother ParkersMother Parkers Tea & Coffee Inc. has developed an enviable health and safety track recordby instilling safety-oriented behaviour through employee motivation, ability, role clarity, andsituational factors.Motivation — employees are empowered through involvement in decisions about safetyAbility — employees are trained on safety procedures and learn current developments fromcommunity expertsRole perceptions — employees are continuously reminded about importance of safety; dailyshift handovers begin with safety discussionSituational factors — production systems include built-in accident prevention features;highly visible floor markers cue employees about forklift travel areas; communicationboards display the latest safety improvement statistics as well as key safety informationSlide 3:MARS Model of Individual BehaviourIndividual voluntary behaviour and performance is influenced by motivation, ability, roleperceptions, and situational factors• Represented by the acronym MARS• Need to understand all four factors to diagnose and influence individual behaviour andperformanceMARS is built on earlier models of individual behaviour and performance:• Performance = person×situation — person includes individual characteristics andsituation represents external influences on the individual’s behaviour• Performance = ability×motivation — “skill-and-will” model, two specificcharacteristics within the person• Ability–motivation–opportunity (AMO)— refers to the three variables but with alimited interpretation of the situation• Role perceptions literaturePage 2-5

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Chapter 2: Individual Behaviour, Personality, and ValuesSlide 4:Employee MotivationInternal forces (cognitive and emotional conditions) that affect a person’s voluntary choiceof 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 timeSlide 5:Employee AbilityNatural aptitudes and learned capabilities required to successfully complete a task• Aptitudes – natural talents that help people learn specific tasks more quickly andperform them better• Learned capabilities – acquired physical and mental skills and knowledgePerson-job matching – produces higher performance and tends to increase the employee’swell-being1. Select applicants who demonstrate the required competencies2. Provide training to enhance individual performance and results3. Redesign the job so employees perform only tasks they are currently able to performSlide 6:Role PerceptionsThe extent to which people understand the job duties (roles) assigned to or expected ofthem.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 tasksBenefits 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 outcomesPage 2-6

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Chapter 2: Individual Behaviour, Personality, and ValuesSlide 7:Situational FactorsEnvironmental conditions beyond the individual’s immediate control that constrain orfacilitate behaviour and performance• Constraints – e.g. time, budget, work facilities, consumer preferences, economicconditions• Cues – clarity and consistency of cues provided by the environment to employeesregarding their role obligations e.g. lack of signs of nearby safety hazardsSlide 8:Types of Individual Behaviour (five categories)Task performanceVoluntary goal-directed behaviours under the individual’s control that contribute toorganizational objectives• Involve working with people, data, things, and ideasThree types of performance:1. Proficient task performance — employees work efficiently and accurately2. Adaptive task performance — employees modify their thoughts and behaviour to alignwith and support a new or changing environment3. Proactive task performance — employees take initiative to anticipate and initiate newwork patterns that benefit the organizationOrganizational citizenship behaviours (OCBs)Various forms of cooperation and helpfulness to others that support the organization’ssocial and psychological contextDirected toward:• Individuals — e.g. adjusting work schedule to accommodate coworkers• Organization — e.g., supporting the company’s public imageOCBs may be a job requirement (not discretionary) even if they aren’t explicitly statedOCBs can have a significant effect on individual, team, and organizational effectivenessPage 2-7

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Chapter 2: Individual Behaviour, Personality, and ValuesSlide 9: Types ofIndividual Behaviour (cont’d)Counterproductive work behavioursVoluntary behaviours that have the potential to directly or indirectly harm the organization— e.g. harassing co-workers, creating unnecessary conflict, avoiding work obligationsJoining and staying with the organizationForming the employment relationship and remaining with the organizationMaintaining work attendanceAbsences due to situation (weather), motivation (avoiding stressful workplace)Presenteeism – attending scheduled work when one’s capacity to perform is significantlydiminished by illness or other factorsSlide 10: Personality in OrganizationsPersonality defined—relatively enduring pattern of thoughts, emotions, and behavioursthat characterize a person, along with the psychological processes behind thosecharacteristics• External traits – observable behaviours• Internal states – infer thoughts, values, and emotions from observable behavioursPersonality 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 andenforcedSlide 11: Nature vs Nurture of PersonalityNature: Heredity explains about 50 percent of behavioural tendencies and 30 percent oftemperament preferences.• e.g. Minnesota studies found that some types of twins have similar personalities notdue to similar environmentsNurture: Socialization, life experiences, and other interactions with the environment alsoaffect personalityPersonality 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

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Chapter 2: Individual Behaviour, Personality, and Values• Executive function (part of the brain that manages goal-directed behaviour) tries tokeep 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 thoroughAgreeableness• High: trusting, helpful, good-natured, considerate, tolerant, selfless, generous,flexible• Low: uncooperative, intolerant of others’ needs, more suspicious, self-focusedNeuroticism• High: anxious, insecure, self-conscious, depressed, temperamental• Low (high emotional stability): poised, secure, calmOpenness 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 theirwaysExtraversion• High: outgoing, talkative, energetic, sociable, assertive• Low (introversion): quiet, cautious, less interactive with othersPage 2-9

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Chapter 2: Individual Behaviour, Personality, and ValuesSlide 13: Five Factor Personality & Individual BehaviourPersonality mainly affects behaviour and performance through motivation — influencesdirection and intensity of effortAll 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• Extraversionsecond best personality predictor of proficient task performance➡Especially specific traits of assertiveness and positive emotionality➡Assertive employees frame situations as challenges rather than threatsPersonality predictors of adaptive task performance• Emotional stability (low neuroticism): cope with ambiguity and uncertainty of change• Extraversion (especially assertiveness): comfortable influencing others, engaging withenvironment• Openness to experience: have more curiosity, imagination, and tolerance of changePersonality predictors of proactive task performance• Extraversion (especially assertiveness): comfortable influencing others, engaging withenvironment• Openness to experience: have more curiosity, imagination, and tolerance of changePersonality predictors of organizational citizenship• Conscientiousness: more dutiful, dependable• Agreeableness: motivated to be cooperative, sensitive, flexible, and supportivePersonality predictors of counterproductive work behaviours• Conscientiousness (negative correlation): people with low conscientiousness are lessdependable and feel less obligation toward others• Agreeableness (negative correlation): people with low agreeableness are less caring ofothers, less need to be likedPage 2-10

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Chapter 2: Individual Behaviour, Personality, and ValuesOther information about personality and individual behaviour• Effective leaders and salespeople tend to be somewhat more extraverted than generalpopulation• Agreeableness is a fairly good personality predictor of performance as team members andin 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, achieveresults)Slide 14: Jungian Personality TheorySwiss psychiatrist Carl Jung proposed that personality is primarily represented by theindividual’s preferences regarding perceiving the environment and judging (obtaining andprocessing) informationMyers-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 orworse)• Improves self-awareness and mutual understanding — i.e. good for career counsellingand executive coaching• Poor at predicting job performance, effective leadership, or team developmentSlide 15: Jungian and Myers-Briggs TypesExtroversion versus introversion (E – I)• Similar to five-factor dimensionPerceiving information (S – N)• Sensing – perceiving information directly through the five senses to acquire factualand quantitative details• Intuition – relies on insight and subjective experiencePage 2-11

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Chapter 2: Individual Behaviour, Personality, and ValuesJudging i.e. making decisions (T – F)• Thinking – rely on rational cause-effect logic and systematic data collection to makedecisions• Feeling – rely on emotional responses to the options as well as how those choicesaffect othersOrientation toward the outside world (P – J)• Perceiving – open curious, flexible, adapt spontaneously to events, prefer to keepoptions open• Judging – prefer order and structure; want to resolve problems quicklySlide 16: Values in the WorkplaceStable, evaluative beliefs that guide our preferences for outcomes or courses of action in avariety of situations• Define right/wrong, good/bad• Tell us what we “ought” to do (moral compass)• Direct our motivation and, potentially, our decisions and behaviourValue system — hierarchy of preferences — relatively stable, long-lastingValues exist within individuals, but OB also refers to shared values within a team,department, organization, profession, and societyValues differ from personality traits• Values are evaluative (what we ought to do); personality traits are descriptive (whatwe tend to do)• Values conflict with each other (e.g. valuing excitement conflicts with valuingstability); personality traits have minimal conflict• Values affected more by nurture (socialization, reinforcement) than nature (heredity);personality about equally affected by nature and nurturePage 2-12

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Chapter 2: Individual Behaviour, Personality, and ValuesSlide 17: Schwartz’s Values ModelDominant model of personal values was developed and tested by social psychologistShalom Schwartz and many others57 specific values cluster into 10 broad value categories — further clustered into fourquadrantsOpenness to change• Motivated to pursue innovative waysConservation• Motivated to preserve the status quoSelf-enhancement• Motivated by self-interestSelf-transcendence• Motivated to promote the welfare of others and natureSlide 18: Personal Values and BehaviourHow personal values influence decisions and behaviour:• Directly motivate behaviour by affecting the relative attractiveness (valence) of thechoices available — more positive feelings toward choices consistent with our values• Indirectly motivate behaviour by framing perceptions — influence whether we noticesomething and how we interpret it• Motivated to act consistently with self-concept and public self — values are part of ouridentity and imageWhy values often fail to influence decisions and behaviour:• Situation — prevent behaviour consistent with values or motivate behaviour contraryto 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 valuesPage 2-13

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Chapter 2: Individual Behaviour, Personality, and ValuesSlide 19: Values Congruence*Values congruence — how similar a person’s values hierarchy is to the values hierarchy ofthe organization, a co-worker, or another sourceCongruence with team values — higher team cohesion and performanceCongruence with organization’s values — higher job satisfaction, loyalty, and organizationalcitizenship, lower stress and turnover* Note: We use “values” (plural) because values operate as a set, not individually, andbecause “value” is easily confused with the economic concept of worth of somethingrelative to priceSlide 20: Ethical Values and BehaviourEthics — the study of moral principles or values that determine whether actions are right orwrong and outcomes are good or badThree 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 couldbe 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 withCEO’s right to privacy• Distributive justice principle• Benefits and burdens should be proportional—e.g. similar rewards for those whocontribute equally in their work• Inequalities are acceptable when they benefit the least well off• Problem: difficult to agree on “similar” rewards and contributionsPage 2-14

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Chapter 2: Individual Behaviour, Personality, and ValuesSlide 21: Influences on Ethical ConductMoral 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 decisionMoral 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 triggerawareness when moral issue arises again3. Empathy — people with higher empathy are more sensitive to the needs and situationof others4. A self-view as an ethical person — put more energy into maintaining ethical conduct5. Mindfulness➡Receptive and impartial attention to and awareness of the present situation as wellas 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 mindfulnessSituational influences• External forces to act contrary to moral principles and personal valuesPage 2-15

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