Motivation & Decision-Making in Organizations: Intrinsic vs. Extrinsic Motivation, Theorie, Study notes of Organization Behaviour

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FOUNDATIONS OF BEHAVIOR

 B = f(P,S) o Bbehavior, Pperson, Ssituation  Perceptions —interpretation of the situation o It is the perceiver’s reality and differs across perceivers o What influences perception  Perceiver attributes—attitudes, personality, experience, expectations (perceptual set)  Characteristics of target and situation  Selectivity—we can’t process everything, we attend to some aspects of stimuli and ignore others  Attribution Theory o How we assign meanings to behavior and causes of behavior of others o Internal explanations —when the behavior is thought to be under control of the person o External explanations —when behavior is the result of situation constraints (chances, rules, customs)  Many or one situation? Distinctiveness  Many or one person(s)? Consensus  Many or one times? Consistency o CanGo example: Nick winning award…was it luck or does he have talent? o Fundamental attribution error —tendency to explain behavior of others by:  Overestimating the influence of internal factors  Underestimating the influence of external factors o Attributional shortcuts  Assumed similarity—perception of other based on perceived similarity  Stereotyping—individual is evaluated based on one’s impression of the group to which s/he belongs  Halo effect—general impression about a person is forged on the basis of a single characteristic  Attitudes o Evaluations of objects, people, or events based on perceptions and attributions o Cognitive —beliefs, opinions, knowledge, or info help by a person o Affective —emotion or feeling o Behavioral —intention to behave in a certain way toward someone or something  Cognitive Dissonance theory o Attitudes follow a consistency principle that people seek among their attitudes and behavior o Cognitive Dissonance —incompatibility between attitudes or between attitudes and behavior  Try to reconcile dissonance by changing attitude/behaviors or rationalizing o Self-serving bias —personal success attributed to internal factors and personal failure attributed to external factors  Resolve uncomfortable feeling through rationalizing and presenting this to yourself  Job related attitudes and behaviors o Job satisfaction —employee’s general attitude toward her/his job o Job involvement —how much employee indentifies with her/his job, degree of active participation, self worth o Employee engagement —employee’s enthusiasm and connection with job o Organizational commitment —employee’s loyalty to, identification with, and involvement in the organization

o Perceived organizational support —employee’s belief that organization values their contribution and cares about their well-being o Organizational citizen behavior —discretionary behavior that is not part of the formal job requirements  Personality o The unique combination of psychological traits that describe a person o Big Five  Extraversion, agreeableness, conscientiousness, emotional stability, openness to experience. Important correlations to job performance o Myers-Briggs Type Indicator (MBTI)  16 personality types based on 4 dimensions: social interaction, preferences for data and decisions o Emotional Intelligence —non-cognitive skills, capabilities, and competence that influence a person’s ability to succeed in coping with environmental demands and pressures  Self-awareness —aware of what you are feeling  Self - management— ability to manage one’s emotions and impulses  Self - motivation —persistence in the face of setbacks and failures  Empathy —ability to sense how others are feeling  Social skills —ability to handle the emotions of others o Job-related Personality Traits  Locus of Control —the degree to which people believe that they are masters of their own fate  Machiavellianism— measure of the degree to which people are pragmatic, maintain emotional distance, and believe that ends justify the means  Self-esteem —individual’s degree of like or dislike for himself or herself  Self - monitoring —personality trait that measures the ability to adjust behavior to external situations  Risk taking —willingness to take chances MOTIVATION  The willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need  Intrinsic Motivation —seen in behavior that is performed for its own sake or from the sense of accomplishment and achievement derived from doing the work itself  Extrinsic Motivation —comes from consequences of behavior – material/social rewards or avoiding punishment – and not from the behavior itself  McGregor’s Theory X & Y o Offers two contrasting assumptions about human nature:  Theory X: the average worker is lazy, dislikes work, manager should closely supervise  Theory Y: workers find work fulfilling, can exercise self-discretion, accept responsibility or even seek it out  Reinforcement theory o Motivation is driven by external consequences, especially when consequences tightly linked to actions o Four reinforcers:  Positive reinforcement —rewarding behavior with something pleasant  Powerful but can lead to narrow focus on the reward rather than underlying goal  Negative reinforcement —rewarding behavior with the elimination of something unpleasant

 Similar to punishment but less danger of backlash  Punishment —penalize undesirable behavior  Power but can produce backlash (resentment, anxiety, etc.)  Extinction —eliminating any reinforcement for undesirable behavior  Expectancy Theory o Expectancy Chain  Individual effortindividual performanceorganizational rewardsindividual goals o Expectancy —effort-performance linkage, will my effort lead to high performance? o Instrumentality —performance-reward linkage, will high performance lead to rewards? o Valence— reward-goal linkage, do I want that reward? o Increase motivation by strengthening linkages o “Dangerous Minds” clip  Using both intrinsic and extrinsic motivation; strengthened the linkages o CanGo example  Whitney: low expectancyget support  Nick: low instrumentalityclear up misinterpretation  Debbie: low valencereframe reward  Goal Setting Theory o 3 steps to achieving high performance through goals  set specific and difficult goals  gain acceptance and commitment to goals  provide feedback to maintain motivation  Equity Theory o Motivation is influence by social comparison and perceptions of fairness o Social comparison —you compare your situation to a referent individual o Equity —ratio of outcome to input matches referent’s o Overpayment inequity —your ratio is better=higher o Underpayment inequity —your ratio is worse=lower  Fairness always matters in all situations o Inequity creates cognitive dissonance—motivates most people to restore equity o Dangerous Minds  What insight does equity theory provide about the teacher’s allowing losing students to go to the reward box? Consolation prize, important because attaches meaning to the contest  Hierarchy of Needs Theory o Self-actualization o Esteem o Social o Safety o Physiological  Needs Theory o need for achievement— drive to excel, to achieve in relation to a set of standards, and to strive to succeed o need for affiliation— desire for friendly and close interpersonal relationships o need for power— need to make others behave in a way that they would not have behaved otherwise  personalized power (negative)  socialized power (positive)

DECISION-MAKING

 Process o 1. Problem identification o 2. Identification of decision criteria o 3. Allocation of weights to criteria o 4. Development of alternatives o 5. Analysis of alternatives o 6. Selection of an alternative o 7. Implementation of an alternative o 8. Evaluation of decision effectiveness  Types of Problems and Decisions o Structured problems —straightforward, familiar, and easily defined o Unstructured problems —new, unusual problems for which information is ambiguous or incomplete o Programmed decisions —a routine used to address repetitive problems o Nonprogrammed decisions —a unique decision to address problems needing customized solutions  Rational Decision Making o Consistent and value-maximizing given situational constraints o Rational decision maker is objective and logical, carefully defines problems and has a clear goal  Boundedly Rational Decision-Making o Behaving rationally within limitations imposed by cognitive abilities and complexity of environment o Satisficing —searching for and choosing an acceptable or satisfactory response rather than trying to make the optimal decision o 3 factors affecting satisficing  limited information —search cost and time constraints prevents gathering info on all alternatives and outcomes  certainty —outcome of every choice is known  risk —able to estimate the probability of outcomes stemming from each alternative  uncertainty —you can’t make a reasonably estimate of the probability that each outcome will occur  ambiguity —info whose meaning is not clear, allowing it to be interpreted in multiple or conflicting ways  uncertainty and ambiguity are particularly pernicious because it is harder to make a good decision in their presence  Heuristics —enabling a person to learn or discover something by themselves o “rules of thumb” to deal with complex situations o saves effort if the heuristic is right o if wrong, can generate cognitive bias—systematically repeated errors that arise from the decision-making process o Availability Bias —ease of recall leads to over estimation, if heard about it all the time then think it happens the most, but not really true  Important Cognitive Biases o Escalating Commitment —committing considerable resources to project and then committing more even if evidence shows the project is failing o Prior Hypothesis Bias —strong prior beliefs about a relationship between variables influences decisions, even when evidence shows they are wrong

o Representative Bias —incorrectly generalizing from a small sample or single incident o Illusion of Control —the tendency to overestimate one’s own ability to control activities and events  Decision making styles o Analytic—ambiguity o Directive—do not like ambiguity o Behavioral—think about impact on others o Conceptual—more intuitive  Group and Decision-Making o Advantages:  Better decisions—more complete info  More creativity—more and better alternatives, combining ideas in more novel ways  Greater acceptance—of the decision o Disadvantages:  Time-consuming  Inefficient  Lack of legitimacy—members may feel railroaded by a minority  Lack of commitment—who is responsible may be ambiguous  Fewer alternatives—pressure on members to conform may lead them to suppress voicing alternatives  “groupthink”—conformity marked by withholding different or unpopular views in order to give the appearance of agreement o Apollo 13 clip TEAMS  Group —two or more people who interact with each other to accomplish certain goals or meet certain needs  Team —a group whose members work intensely with each other to achieve a specific, common goal. All teams are groups but not all groups are teams o Functional Team —a manger and subordinates from a particular functional area or department o Cross - functional Team —a group of individuals who normally work within different functional areas but who are brought together to accomplish a task o Self - managing team —a formal group of employees that operate without a manager and are responsible for a complete work process or segment  Team Process o Norms —acceptable standards or expectations that are shared by the group’s members o Conformity —compliance with norms to obtain rewards, imitate respected members, and because they feel the behavior is right o Deviance —non-compliance with norms, can allow flexibility and new ideas in the group o Hoosiers movie clip  Conflict—perceived incompatible differences resulting in interference or opposition o Task conflict —about what the group will decide and do—what to conclude, what criteria to use for decisions, etc. up to moderate levels can be functional o Relationship conflict —about who, usually dysfunctional o Process conflict —about how the group itself works, low levels can be functional, but risks are higher than in task conflict o Conflict resolution— typically involves compromise or collaboration  Cohesiveness—degree to which members are attracted to a group and share the group’s goals o Build through smaller groups, group identity

o Success—small initial success, timely initial success, failure is an orphan  Stages of group development o Describes groups as maturing through several sequential stages  Forming —membership established, members initiate attempts to define the group’s goal, structure, leadership  Storming —conflict over leadership and goals, conflict as members resist control that group exerts  Norming —group more cohesive, has stronger identity, relationships deepen  Performing —energy focused on work  Adjourning —the process of letting go of the group structure and moving on o Generally performance increases as the group matures o This theory is useful as a guide to understanding group development  Many groups do not pass through states sequentially as the theory holds; instead, some groups skip stages or go back through them twice, and so on  Effectiveness Criteria o o o  Team design trumps team process o Good design and good process both help but teams with good designs suffer less from lack of leadership and benefit more from strong leadership o 4 Elements:  Goal—define team’s goal to gain focus urgency  Membership—smallest team that can do the job  Rewards—team vs. individual rewards  o group size affects what a group does well  large groups—good for getting diverse input  small groups—good at making use of info, interact better, more motivated o Free Rider Tendency  Individual members reduce their effort and contribution as groups increase in size, because of equity concerns and dispersion of responsibility  Reduce by—keeping group no larger than necessary, make individual efforts identifiable and accountable, emphasize each member’s valuable contributions  Social loafing o Interdependence—degree to which one person (or group) relies on another to complete a task, measuring performance is difficult if interdependence is high  Forming groups and teams typically leads to increased interdependence, accordingly group rewards often make sense LEADERSHIP I  1. The “process of influencing a group toward the achievement of goals”  2. The “art of mobilizing others to want to struggle for shared aspirations”  Theories of Leadership o Trait theories —what traits are associated with leaders o Behavioral theories —what are the best leadership behaviors o Contingency theories —if the situation is X, how do I lead? o Transformational leadership —achieving second definition  Leader traits :

o Basic assumption is that leader traits are basic personal characteristics that differentiate leaders from non leaders (intelligence, drive, height, etc) o Earliest theories emphasized traits but fell out of favor o Drive, desire, honesty/integrity, self-confidence, intelligence, job-relevant knowledge o American President Clip  Behavioral Theories of Leadership o Basic assumption—the key to effective leadership is to consistently behave in particular ways  Important to understand the kinds of behaviors these theories associated with leaders o Iowa Study  Key leadership behavior—participation, or not  Autocratic style—dictate work methods, centralize decision-making  Democratic style—involve subordinates, delegate authority, encourage participation  Laissez-faire—give the group freedom  Results—inconsistent though that participative styles produce more subordinate satisfaction o Ohio State and Michigan Studies  Key leadership behavior—relationship or task  Consideration— employee-centered leader behavior indication that a manager trusts, respects, and cares about subordinates (relationship)  Initiating structure— job-oriented leader behaviors such as ensuring that work gets done, subordinates perform their jobs acceptably, and the organization is efficient/effective (task)  Managers can be high or low on both—scoring high on both would seem best but results mixed  Contingency Theories of Leadership o Basic assumption—leader effectiveness depends on fit between situation and leader behaviors o House’s Path-Goal Theory  Leaders can be most effective by leveraging expectancy theory  Key tasks  To clarify the path to the goal  Remove obstacles to goal attainment  Express confidence in worker’s ability (increase expectancy)  Emphasize the goal and reward workers for high performance  Identify and provide rewards that subordinates value upon goal attainment  Leaders should choose style based on environmental (task) and follower characteristics, such that they provide what is missing and avoid reverse  Directive leadership —telling followers what needs to be done and giving appropriate guidance along the way o When follower lacks ability or task is poorly structured  Supportive leadership —considering the needs of the follower, showing concern for their welfare and creating a friendly working environment o When follower is anxious/stressed, or task is emotionally charged  Participative leadership —consulting with followers and taking their ideas into account when making decisions and taking particular actions o When follower lacks commitment or task requires high commitment  Achievement-oriented leadership —setting challenging goals, both work and in self-improvement

o When follower is complacent or task is ambiguous  Leader behavior will be ineffective when:  It is incongruent with follower characteristics  It is redundant with environmental contingencies  Path-Goal as a Vice Principal at elementary school  Find out what outcomes teachers you lead want from their jobs  Gain authority to allocate those rewards  Make clear what the school’s goals are  Remove obstacles to teacher’s attainment of those goals  Allocate rewards accordingly  CanGo example of Liz asking the team for a proposal on online gaming  She never gave clear instructions on what was needed, task was ambiguous, needed achievement-oriented leadership  Fiedler’s LPC Theory o Leader-member relations —the degree of confidence, trust, and respect subordinates have for their leader; degree to which leader-member relations contribute to productive interactions o Task structure —degree to which job assignments are formalized and procedurized; degree to which followers are familiar with the component tasks of a job assignment o Position power— degree of influence a leader has over power-based activities such as hiring, firing, discipline, and promotion LEADERSHIP II  Transformational vs. Transactional o Transactional leaders— guide or motivate their followers in the direction of established goals by clarifying role and task requirements (“you do this and you will get that”) o Transformational leaders— inspire followers to generate extraordinary effort directed toward shared goals  to perform beyond expectations, to transcend self-interest o The 4 I’s  Intellectual stimulation  Inspirational motivation  Idealized influence  Individualized consideration o 5 practices  Challenge the process—opportunities and experiments  Inspire a shared vision—envision and enlist  Model the way—set example, small win  Enable others  Encourage the heart o The hallmark of transformational leadership is transforming—challenging the status quo, changing perceptions of possible futures, changing perceptions and reality of what people can do o Transactional leader enable accomplishing a task, fulfill lower order, material needs o Transformational leader enable personal growth, fulfill higher order needs  Perform beyond expectations  Transcend self-interest  Transcend limitations  Can be learned—seen after trainings  Charisma and Transformational Leadership

o Charismatic leader—self-confident leader who is able to get others to identify with vision, very personal level, risk taker, many ways to be charismatic  Managers vs. Leaders o Strong manager and strong leader—virtually all report “too few” o Strong manager and weak leader—about 2/3 say “too many” o Weak manager and strong leader—nearly half say “too few” o Weak manager and weak leader—half say they have “too many”