Week 3 - Topic Overview
Week 3 - Topic Overview
Moderating Variables
The most dominant moderators of the relationship between attitudes and behaviour
are:
The more closely the attitude and the behaviour are matched or correspond, the
stronger the relationship. Specific attitudes tend to predict specific behaviours,
whereas general attitudes tend to best predict general behaviours” (Robbins,
2009).
When are inconsistencies between attitudes and behaviour more likely to occur?
Inconsistencies are more likely to occur when there is extreme social pressure to
behave in a specific way.
High levels of job involvement and psychological empowerment are positively related
to organizational citizenship and job performance. Moreover, high job involvement is
related to lower absences and lower resignation rates (Robbins, 2009).
According to a studies review (Wright & Bonnet, 2002), new employees have
stronger relationships between commitment and performance than more
experienced employees.
The knowledge contract Needs a certain level of skill and Wishes the skills and knowledge
knowledge in its employees if it to they bring with them to be used and
function efficiently developed
The psychological contract Needs employees who are Seeks to further interests private
motivated to look after its interests self, e.g. to secure: achievement,
recognition, responsibility, status
The efficiency/rewards contract Needs to implement generalised Seeks a personal, equitable effort-
output, quality standards and reward bargain and controls,
reward systems including supervisory ones, which
are perceived as acceptable
The ethical (social value) contract Needs employees who will accept Seeks to work for an employer
the firm’s ethos and values whose values do not contravene
their own
The task structure contract Needs employees who will accept Seeks a set of tasks which meets
technical and other constraints their requirements for task
which produce task specificity or differentiation, e.g. which
task differentiation incorporate variety, interests,
targets, feedback, task identity and
autonomy
influences”.
Source: Mumford, E. (1991). Job satisfaction: a method of anaysis, Personnel review, 20 (3), p.14.
“Exit: The exit response involves directing behaviour toward leaving the
organization, including looking for a new position as well as resigning.
Voice: The voice response involves actively and constructively attempting to
improve conditions, including suggesting improvements, discussing problems
with superiors, and undertaking some forms of union activity.
Loyalty: The loyalty response involves passively but optimistically waiting for
conditions to improve, including speaking up for the organization the face of
external criticism and trusting the organization and its management to ‘do the
right thing’.
Neglect: The neglect response involves passively allowing conditions to
worsen, including chronic absenteeism or lateness, reduced effort, and
increased error rate.
Two of these behaviours (‘exit’ and ‘neglect’) affect performance variables such as productivity,
absenteeism and turnover.
A review of 300 studies suggested that the correlation between job satisfaction and
job performance (Judge, Thoresen, Bono & Patton, 2001).
It seems that satisfied employees will be more likely to help their colleagues, give
positive feedback to the organization, praise their employers and exceed their job
expectations. According to research, job satisfaction is correlated with OCD through
perception of fairness. That is, job satisfaction is affected by fair outcomes, treatment
and procedures (Organ, 1994).
The evidence suggests that job satisfaction, satisfied employees, increase customer
satisfaction and customer’s loyalty (Griffith, 2001; Homburg & Stock, 2004). “Why?
In service organizations, customer retention and defection are highly dependent on
how frontline employees deal with customers. Satisfied employees are more likely to
be friendly, upbeat, and responsive – which customers appreciate. And because
satisfied employees are less prone to turnover, customers are more likely to
encounter familiar faces and receive experienced service. These qualities build
customer satisfaction and loyalty. The relationship also seems to apply in reverse:
Dissatisfied customers can increase an employee’s job dissatisfaction. Employees
who have regular contact with customers report that rude, thoughtless, or
unreasonably demanding customers adversely affect the employees’ job
satisfaction”.
There is a negative relationship between job satisfaction and turnover but the
correlation is stronger than the one found for satisfaction and absenteeism.
However, other significant factors such as labour conditions, expectations about
alternative job opportunities and length of tenure with the organisation are
considered to be important binding factors to an employee’s decision to leave his/her
job (Carsten & Spector, 1987).
According to Spencer and Steers (1981) the employee’s level of performance is an
important moderator between the satisfaction and turnover relationship. It appears
that the level of satisfaction is less important in predicting performance for superior
performers. Why that differentiation happens?
Organizations tend to make considerable efforts to keep superior performers and
they offer raises, recognition, praise and more opportunities to them. In contrast,
organizations tend to force pressures to poor performers in order to drive them to
quit. Therefore, it seems that job satisfaction is more important in influencing poor
performers to stay in their jobs than superior performers.
1. “Physiological. Included hunger, thirst, shelter, sex, and other bodily needs.
2. Safety. Security and protection from physical and emotional harm.
3. Social. Affection, belongingness, acceptance, and friendship.
4. Esteem. Internal factors such as self-respect, autonomy, and achievement,
and external factors such as status, recognition, and attention.
5. Self-actualization. Drive to become what one is capable of becoming;
includes growth, achieving one’s potential, and self-fulfilment”.
Maslow proceeded and separated these five needs into higher orders and low
orders. Lower-order needs include physiological and safety needs and higher-order
needs include social, esteem and self-actualization. The reason behind this
differentiation is that higher-order needs are thought to be satisfied internally (within
the person), whereas lower-order needs are thought to be satisfied externally (e.g.
pay, cafeteria, benefits, job security).
A. Theory X: The assumption that employees dislike work, are lazy, dislike
responsibility, and must be coerced to perform.
B. Theory Y: The assumption that employees like work, are creative, seek
responsibility, and can exercise self-direction.
Need for power is the need to make others behave in a way in which they would not
have behaved otherwise.
Need for affiliation is the desire for friendly and close interpersonal relationships”.
McClelland and colleagues focused more their attention on the need for affiliation.
According to Robbins (2009), high achievers perform their best when they estimate
that they have 50% success chance. In addition, they tend to not gamble when there
are high chances because they do not receive an achievement satisfaction if it was
due to chance. They like to set challenging goals.
Cognitive Evaluation Theory argues that “when extrinsic rewards are used by
organisations as payoffs for superior performance, the intrinsic rewards, which are
derived from individuals doing what they like, are reduced. In other words, when
extrinsic rewards are given to someone for performing an interesting task, it causes
intrinsic interest in the task itself to decline”.
“If the cognitive evaluation theory is valid, it should have major implications for
managerial practices. It has been a truism among compensation specialists for years
that if pay or other extrinsic rewards are to be effective motivators, they should be
made contingent on an individual’s performance. But cognitive evaluation theorists
would argue that this will only tend to decrease the internal satisfaction that the
individual receives from doing the job. In fact, if cognitive evaluation is correct, it
would make sense to make an individual’s pay noncontingent on performance in
order to avoid decreasing intrinsic motivation”.
According to Deci, Koestner and Ryan (1999) verbal extrinsic rewards (e.g. receiving
praise) can increase intrinsic motivation whereas ‘physical’ extrinsic rewards (e.g.
money) can undermine intrinsic motivation. When people wait to receive a ‘physical
reward’ they tend to focus on the reward than on the task.
Goals or Responses or
Values Emotions and
intentions actions
desires Consequenc
Work e or
behaviour and feedback
performance
Level of
commitment
In addition, it seems that difficult goals when accepted tend to produce higher
performance than easy goals and that feedback tends to lead to higher performance
than not receiving feedback. Why people are motivated by difficult goals? According
to Robbins (2009), difficult goals shift our attention from extraneous distractions to
the specific task. Furthermore, difficult goals energize us because we have to work
more and persist more in order to complete them.
The question is: If employees have the opportunity to set their own goals, will they try
harder in order to attain them?
According to research there is no conclusive answer to that (Latham, Erez & Locke,
1988; Ludwig & Geller, 1997; Harkins & Lowe, 2000).
In addition to feedback, three other factors have been found to influence the goals-
performance relationship:
Goal commitment
Task characteristics
National culture
“Goal-setting theory presupposes that an individual is committed to the goal; that is,
an individual is determined not to lower or abandon the goal. Behaviourally, this
means that an individual (1) believes he or she can achieve the goals and (2) wants
to achieve it (Klein, Wesson, Hollenbeck, Wright & Deshon, 2001). Goal commitment
is most likely to occur when goals are made public, when the individual has an
internal locus of control, and when the goals are self-set rather than assigned.”
According to research, goal-setting theory is not consistent across all tasks. That is,
when tasks are more simple, well-learned and independent, goals have a more
substantial effect on performance.
Furthermore, goal-setting theory it is not equally adapted across all cultures. Goal-
setting theory is well adapted to North American cultures. It assumes that employees
will be able to work independently and that they will seek challenging goals. Thus we
cannot expect to be applicable to countries where these conditions are not met.
How a manager can apply goal-setting theory? A helpful way to apply goal setting is
with a management by objectives program. Management by objectives (MBO) aims
in setting goals that are tangible, verifiable and measurable.
Goal Specificity
Decision-making participation
Explicit time period
Performance feedback
Equity Theory
“Equity theory focuses on people’s feelings of how fairly they have been treated in
comparison with the treatment received by others. It is based on exchange theory.”
For example, an employee that has contributed in a great extent in the achievement
of an important organisational objective may expect a promotion. Most exchanges
involve a number of inputs and outcomes. In accordance to the equity theory,
individuals place a value to these inputs and outcomes based on their perceived
importance. When these inputs and outcomes are unequal then there is a perceived
sense of inequity.
A group has a purpose for its formation and a common goal shared between its
members. The people in the group are inter-connected and are aware of the
connection they share.
Informal groups: their activities and interactions are being developed in order to
satisfy their social needs. A common informal groups is a friendship group. Informal
groups are not necessary being develop to serve formal organizational goals.
Organizations influence though the development of informal groups through the work
setting, managers’ leadership styles and the type of technology that is being used.
Informal groups provide many desirable benefits to their members such as security,
protection, etc. In addition, some informal groups may protect their members by
setting production limitations to their members since organizations might use an
outstanding employee’s performance as a standard.
Furthermore, informal groups can use adverse power over individual members.
These kinds of power are being categorised into:
Informal groups cannot be classified into negative or positive as their actions vary
from time to time depending on the organizations issues and circumstances.
Its members know the purpose of the group existence and they share
common goals.
Its members share agreement regarding guidelines or procedures for decision
making.
Its members communicate freely among themselves.
Its members accept help from one another and provide help to one another.
Its members know how to resolve conflict within the group.
Its members know how to identify individual and group procedures and
improve their own and the groups functioning.
Work group’s objective is sharing information and making decisions to enable each
member to perform at its task. Work team objective is to generate positive synergy
through coordinated effort.
In the business world you will often hear managers or employees referring about
their team. Teams are part of the business world.
Problem solving teams: problem solving teams usually include employees that
meet consistently in order to improve quality, efficiency and the work environment.
Self-managed work teams: consist of employees that work well together to produce
a good or provide a service. These teams can 1) schedule work and vacations by
members, 2) rotate tasks among members, 3) order materials, 4) decide team
leadership, 5) set key team goals, 6) arrange the budget, 7) hire replacements for
departed team members and 8) evaluate each other’s performance.
Cross functional teams: combine the knowledge and skills of individuals from
different work settings in order to recognize and resolve shared problems.
Team Characteristics
Team rules and norms: Team members help develop and apply the
team’s very own rules and norms.
Team collaboration: Team members encourage each other to generate
and share ideas, thoughts in order to solve problems or develop a new
idea.
Team consensus: Team members work collectively in order to reach a
unanimous decision or a decision that team members can support and
commit to it.
Team cooperation for effective conflict resolution: Team members
take advantage of a disagreement and use it as way to improve arising
issues and differences.
Make use of body language. For example, lean forwards toward your
receiver or speaker, nod, and take notes.
Engage in the conversation by making use of your active listening skills.
For example, say “uh-huh, I see”, maintain a good eye-contact, repeat
phrases and words.
Do not interrupt your team members when it is their turn to speak.
Ask follow up questions.
Acknowledge and record every idea as it comes up.
Allow people to be creative.
Ask people for ideas. Brainstorming will help people to be more engaged
and contribute to the team’s goal.
Allow time for thinking. Silence might be a thinking process.
Ask and provide constructive criticism.
Reward people for their involvement and contributions.
Group Development
Tuckman’s model of development
For over the past centuries there have been proposed numerous of models of
development derived from group development research. The most well-known
development theory is considered to be that of Bruce Tuckman (1965).
According to Tuckman’s model, groups are developed through time and in sequence
into four stages (forming, storming, norming, performing).
Forming (coming together) is the initial stage of the team. Team members
have not familiarized with one another. At this stage team members are trying
to figure out each other by asking questions and establish their own role in the
group. Most members have a ‘good attitude’ at this stage. Individual member
responsibilities are not clear and members seek team leaders for guidance
and support.
Storming (open conflict) is the second stage. The individuals start to consider
themselves as part of a team. At this stage, team members may challenge the
leadership and intra-group conflicts may arise. They will try to find how the
team operates and the team’s objective and try to change how things are
done or they may show resistance to task demands. Some individuals might
perform alliances or subgroups. Group differences or conflicts need to be
addressed.
A fifth stage was added later by Tuckman and Jensen (1977) called adjourning.
Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D., & Rhoades, L. (2001).
Reciprocation of perceived organizational support. Journal of applied
psychology, 86(1), 42.
Robbins, S.P. & Judge, T.A. (2009). Organizational Behaviour. (13 th ed.).New
Jersey: Peason Prentice Hall.