Quiz 1

Chapter 1
Organizational Behavior and

Opportunity
Nelson/Quick, ORGB: Organizational Behavior, 6th Edition. © 2020 Cengage. All Rights Reserved. May not be
scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Outcomes (1 of 2)
1. Define organizational behavior

2. Identify four action steps for responding positively in times of change
3. Identify the important system components of an organization
4. Describe the formal and informal elements of an organization
5. Identify factors that contribute to the diversity of organizations in the
economy
Learning Outcomes (2 of 2)
6. Describe the opportunities that change creates for organizational behavior

7. Demonstrate the value of objective knowledge and skill development in the
study of organizational behavior
LO - 1.1: Define organizational behavior
LO 1
Organizational Behavior
• Study of individual behavior and group dynamics in organizations

• Study of organizational behavior is concerned with the psychosocial,
interpersonal, and behavioral dynamics in organizations
LO 1
Models of Human Behavior: External and Internal
Perspectives
Internal perspective External perspective
• Studies the minds of • Focuses on factors outside
workers to understand the person to understand
their behaviour behavior
• Focuses on the thoughts, • Concentrates on external
feelings, past events, consequences, and
experiences, and needs of environmental forces
the individual
LO 1
Interdisciplinary Influences on Organizational
Behavior (1 of 2)
• Organizational behavior has grown out of contributions from numerous
earlier fields of study such as:
• Psychology
• Science of human behavior
• Sociology
• Science of society
• Engineering
• Applied science of energy and matter
LO 1
Interdisciplinary Influences on Organizational
Behavior (2 of 2)
• Anthropology
• Science of human learned behavior
• Management
• Study of overseeing activities and supervising people in organizations
• Medicine
• Applied science of healing or treating diseases
LO - 1.2: Identify four action steps for responding
positively in times of change
LO 2
Steps for Adapting to Change
• Have a positive attitude

• Ask questions
• Listen to answers
• Be committed to success
LO - 1.3: Identify the important system
components of an organization
LO 3
Figure 1.1: An Open-Systems View of Organization
SOURCE: Based on H. Leavitt, “Applied Organizational Change In Industry: Structural, Technological, and Humanistic Approaches,” In
J. G. March, ed., Handbook of Organizations (Chicago: Rand McNally, 1965), 1145. Reprinted by permission of James G. March.
LO - 1.4: Describe the formal and informal
elements of an organization
LO 4
Formal and Informal Organization
Formal organization
• Official, legitimate, and most visible part of the system
Informal organization
• Unofficial and less visible part of the system
• The Hawthorne studies conducted during the 1920s and 1930s suggested
the importance of informal organization
LO 4
Elements of Formal Organization
• Goals and objectives

• Policies and procedures
• Job descriptions
• Financial resources
• Authority structures
• Communication channels
• Products and services
LO 4
Elements of Informal Organization
• Beliefs and assumptions

• Perceptions and attitudes
• Values
• Feelings (fear, joy, anger, trust, and hope)
• Group norms
• Informal leaders
LO - 1.5: Identify factors that contribute to the
diversity of organizations in the economy
LO 5
Diversity of Organizations
• Large and small organizations operate in the following sectors of the

economy:
• Private sector
• Manufacturing sector
• Service sector
• Government sector
• Nonprofit sector
LO - 1.6: Describe the opportunities that change
creates for organizational behavior
LO 6
Impact of Global Competition on Business
• All categories of employees face increased pressure to:

• Increase productivity
• Add value to the firm
• Factors that make employment uncertain for people in companies that
pursue cost-cutting strategies
• Corporate warfare
• Competition
LO 6
Evaluating Quality Improvement Ideas: Key
Questions to Be Asked
• Does the idea improve customer response?
• Does the idea accelerate results?
• Does the idea increase effectiveness of resources?
LO 6
Total Quality Management (TQM)
• Total dedication to continuous improvement and to customers

• Strives to meet customers’ needs and exceed their expectations
LO 6
Six Sigma
• High-performance system for executing business strategy

• Customer-driven approach
• Emphasizes on quantitative data to make decisions
• Places a priority on saving money
• Phases for tackling problems
• Measure, analyze, improve, and control
LO 6
Table 1.1: Contrasting Six Sigma and Total Quality

Management
Six Sigma Total Quality Management
Executive ownership Self-directed work teams
Business strategy execution system Quality initiative
Truly cross-functional Largely within a single function
Focused training with verifiable return on No mass training in statistics and quality
investment Return on investment
Business results oriented Quality oriented
SOURCE: M. Barney, “Motorola’s Second Generation,” Six Sigma Forum Magazine (May 2002): 13.
LO 6
Categories Evaluated in the Malcolm Baldrige
National Quality Award Examination
• Leadership
• Information and analysis
• Strategic quality planning
• Human resource utilization
• Quality assurance of products and services
• Quality results
• Customer satisfaction
LO 6
Challenges to Managing Organizational Behavior
During Changing Times
• Increasing globalization of organizations’ operating territory
• Increasing diversity of organizational workforces
• Continuing demand for higher levels of moral and ethical behavior at work
LO - 1.7: Demonstrate the value of objective
knowledge and skill development in the study of
organizational behavior
LO 7
Figure 1.3: Learning About Organizational

Behavior
Learning Activity
LO 7
Skill Development
• Necessary skills identified by the U.S. Department of Labor to be successful

in the workplace
• Resource management
• Information management
• Personal interaction
• Systems behavior and performance
• Technology utilization
LO 7
Figure 1.4: Learning from Structured Activity
KEY TERMS
• Anthropology • Opportunities
• Change • Organization behavior
• Challenge • People
• Engineering • Psychology
• Formal organization • Skill development
• Hawthorne studies • Sociology
• Informal organization • Structure
• Management • Task
• Medicine • Technology
• Objective knowledge
SUMMARY (1 of 2)
• Organizational behavior studies individual behavior and group dynamics

• People often respond to change by relying on well-learned and dominant
forms of behavior
• Formal organization is the visible part of the system, whereas informal
organization is the less visible part
• Large and small organizations operate in each sector of the economy
SUMMARY (2 of 2)
• Change creates opportunities

• Study of organizational behavior is based on scientific knowledge and
applied practice
• Skill development refers to being proficient in the tasks a firm needs to
function smoothly
Chapter 2
Challenges for Managers
Learning Outcomes
1. Describe factors that affect organizations competing in the global economy

2. Explain how cultural differences form the basis of work-related attitudes
3. Describe the challenges and positive influences diversity brings to today’s
business environment
4 Discuss the role of ethics, character, and personal integrity in the
organization
5 Explain five issues that pose ethical dilemmas for managers
LO - 2.1: Describe factors that affect organizations
competing in the global economy
LO 1
Three Challenges
• Globalization
• Diversity
• Ethics
LO 1
Factors That Affect Organizations Competing in
the Global Economy
• Globalization refers to a world free from national boundaries
• Transnational organization: Global viewpoint supersedes national issues
• Social and political changes
• Require organizations to change the way they conduct business
• Guanxi: Chinese practice to build social exchange networks
• Opening of trade barriers
LO 1
Understanding Cultural Differences
• Microcultural differences help understand the global work environment

• Changing careers
• Expatriate manager works in a country other than his or her home country
• International executives are executives whose jobs have international scope
LO 1
Figure 2.1: Hofstede’s Dimensions of Cultural
Differences
SOURCE: Based on Academy of Management, P.O. Box 3020, Briarcliff Manor, NY 10510-8020. Cultural Constraints in Management
Theories. G. Hofstede, Academy of Management Executive 7 (1993).
LO - 2.2: Explain how cultural differences form the
basis of work-related attitudes
LO 2
Cultural Differences and Work-Related Attitudes (1 of 3)
Individualism Collectivism
• People are part of loose social • Individuals belong to tightly knit
frameworks social frameworks
• Primary concern is for oneself • Dependence on extended
and one’s family families and high regard for
group decisions
LO 2
Power distance
• Degree to which a culture accepts unequal distribution of power
Uncertainty avoidance
• Degree to which a culture tolerates ambiguity and uncertainty
LO 2
Masculinity versus femininity

• Masculinity: Cultural orientation where assertiveness and materialism are
valued
• Femininity: Cultural orientation where relationships and empathy are valued
Time orientation
• Identifies whether a culture’s values are future oriented or past and present
oriented
LO - 2.3: Describe the challenges and positive
influences diversity brings to today’s business
environment
LO 3
Diversity
• All forms of individual differences that include:

• Culture
• Gender
• Age
• Ability
• Religion
• Personality
• Social status
• Sexual orientation
LO 3
Ethnic Diversity
Challenge
• Using the differences provided by cultural diversity
Risk
• Prejudices and stereotypes may prevent managers and employees from
developing interactions which could benefit the organization
LO 3
Gender, Age, and Ability Diversity
Gender
• Glass ceiling: Transparent barrier that prevents women from rising above a
certain level in organizations
Age
• Positively impacts organizational profitability
Ability
• Under Americans with Disabilities Act of 1992, employers must make
reasonable accommodations allowing workers with disabilities to perform jobs
LO 3
Table 2.2: Benefits and Problems of Diversity
Benefits Problems
Attracts and retains the best talent Resistance to change
Improves marketing efforts Lack of cohesiveness
Promotes creativity and innovation Communication problems
Results in better problem solving Interpersonal conflicts
Enhances organizational flexibility Slower decision making
LO - 2.4: Discuss the role of ethics, character, and
personal integrity in the organization
LO 4
Ethical Theories
Consequential theory
• Emphasizes the consequences or results of behaviour
Rule-based theory
• Emphasizes the character of the act rather than its effects
Character theory
• Emphasizes the character, personal virtues, and intent of the individual
LO - 2.5: Explain five issues that pose ethical
dilemmas for managers
LO 5
Ethical Dilemmas Related to Employee Rights
• Technology and privacy

• Confidentiality
LO 5
Sexual Harassment
Unwelcome verbal or physical sexual attention

• Affects an employee’s job conditions
• Creates a hostile working environment
Types
• Gender harassment includes crude comments or behavior that convey
hostility toward a particular gender
• Unwanted sexual attention involves unwanted touching or repeated pressure
for dates
• Sexual coercion consists of demands for sexual favors through job-related
threats or promises
LO 5
Organizational Justice
Distributive justice
• Fairness of the outcomes that one receives in an organization
Procedural justice
• Fairness of the process through which the outcomes are allocated in an
organization
LO 5
Individual and Organizational Responsibility
Whistle-blower
• Employee who notifies authorities about the misconducts of his or her firm or
coworkers
Social responsibility
• Organization’s duty to behave ethically in social environment
• Protecting the environment
• Promoting worker safety
• Supporting social issues
• Investing in the community
KEY TERMS
• Character theory • Masculinity

• Collectivism • Power distance
• Consequential theory • Procedural justice
• Distributive justice • Rule-based theory
• Diversity • Social responsibility
• Expatriate manager • Time orientation
• Femininity • Transnational organization
• Glass ceiling • Uncertainty avoidance
• Guanxi • Whistle-blower
• Individualism
SUMMARY (1 of 2)
• Social and political changes and cultural differences affect organizations

competing in the global economy
• Five dimensions of cultural differences are individualism versus collectivism,
power distance, uncertainty avoidance, masculinity versus femininity, and
time orientation
• Diversity makes the firm more popular and innovative but can lead to
interpersonal conflicts and frictional environment
SUMMARY (2 of 2)
• Theories of ethics are consequential, rule-based, and character

• Ethical dilemmas can be in the form of:
• Employee rights
• Sexual harassment
• Organizational justice
• Whistle blowing
• Social responsibility and code of ethics
PART 2
Individual Behaviors and
Processes in Organizations
CHAPTER 4
Individual Values,
Perceptions, and
Reactions
Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Thirteenth Edition. © 2020 Cengage. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter Learning Objectives
After studying this chapter you should be able to:
1. Discuss how attitudes are formed, describe the meaning of cognitive
dissonance, and identify and describe three important work-related
attitudes.
2. Describe the role and importance of values and emotions in
organizational behavior.
3. Describe basic perceptual processes and how perception affects
fairness, justice, and trust in organizations.
4. Discuss the nature of stress, identify the basic causes and
consequences of stress, and describe how stress can be managed.
Ricky W. Griffin/Jean M. Phillips/Stanley M. Gully, Organizational Behavior: Managing People and Organizations, Twelfth Edition. © 2020 Cengage. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Attitudes in Organizations (1 of 4)
• Attitudes
– A person’s complexes of beliefs and feelings about specific ideas,
situations, or other people
• Structural components of attitudes
– Cognition: the knowledge a person presumes to have about something
– Affect: a person’s feelings toward something
– Intention: component of an attitude that guides a person’s behavior
Attitude Formation
Figure 4.1
Attitudes are generally formed around a sequence of cognition, affect, and
behavioral intention. That is, we come to know something that we believe to be
true (cognition). This knowledge triggers a feeling (affect). Cognition and affect
then together influence how we intend to behave in the future.
• Cognitive dissonance
– An incompatibility or conflict between behavior and an attitude or
between two different attitudes
• How to reduce cognitive dissonance?
– Change the conflicting attitude
– Change the conflicting behavior
– Reason that one of the conflicting attitudes or behaviors is not important
in this context
– Seek additional information to better reason that the benefits of one of
the conflicting attitudes or behaviors outweigh the costs of the other
• Recognize that attitudes can change
Key work-related attitudes
Job satisfaction Reflects our attitudes and feelings about our jobs
Organizational Reflects the degree to which an employee identifies
commitment with the organization and its goals and wants to stay
with the organization
Employee Heightened emotional and intellectual connection
engagement that an employee has for his/ her job, organization,
manager, or coworkers that, in turn, influences
him/her to apply additional discretionary effort to
his/her work
Types of organizational commitment
Affective commitment Positive emotional attachment to the organization

and strong identification with its values, and its
goals; employees want to stay with the organization
Normative commitment A feeling of moral or ethical obligation to the
organization; employees stay because they believe
it would be wrong to leave
Continuance commitment Staying with the organization because of perceived
high economic and/or social costs; employees stay
because they feel they have to
Influences on Job Satisfaction
Figure 4.2
Job satisfaction is one of the most
important job-related attitudes in
organizations. It reflects both our
attitudes and our feelings about our
job. Job satisfaction is strongly
influenced by our personality, values,
other attitudes, and the work itself.
Table 4.1 Top Three Worldwide Drivers of Employee
Attraction, Retention, and Engagement for Different
Age Groups
Top Drivers of Attraction for 18- to 24-Year- Top Drivers of Retention for 18- to 24-Year- Top Drivers of Engagement for 18- to 24-Year-
Olds Olds Olds
Career advancement opportunities Have excellent career advancement Organization develops leaders at all levels
opportunities
Competitive base pay Work in an environment where new ideas Organization quickly resolves customer concerns
are encouraged
Learning and development opportunities Satisfaction with the organization’s Senior management is sincerely interested in
business decisions employee well-being
Top Drivers of Attraction for 45- to 54-Year- Top Drivers of Retention for 45- to 54-Year- Top Drivers of Engagement for 45- to 54-Year-
Olds Olds Olds
Competitive base pay Organization’s reputation as a great place Senior management is sincerely interested in
to work employee well-being
Challenging work Satisfaction with the organization’s people Improved my skills and capabilities over the last
decisions year
Convenient work location Understand potential career track within the The organization’s reputation for social
organization responsibility
Source: Based on information provided in Exhibits 14, 15, and 16 of Towers Perrin Global Workforce Study—Global Report at
http://www.towersperrin.com/tp/getwebcachedoc?webc=HRS/USA/2008/200803/GWS_Global_Report20072008_31208.pdf.
Values and Emotions in Organizations (1 of 4)
• Values
– Ways of behaving or end-states that are desirable to a person or to a
group
• Types of values
– Terminal: reflect long-term life goals such as prosperity, happiness,
secure family, and a sense of accomplishment
– Instrumental: preferred means of achieving terminal values or preferred
ways of behaving
– Intrinsic: relate to the work itself
– Extrinsic: relate to the outcomes of doing work
• Conflicts among values

– Intrapersonal: Conflict between the instrumental value of ambition and
the terminal value of happiness
– Interpersonal: Occurs when two different people hold conflicting values
– Individual-organization: When an employee’s values conflict with those
of the organization
• Values differ around the world—leads to different managerial

behaviors
• Two major dimensions
– Traditional versus secular-rational values: reflects the contrast between
societies in which religion is very important and those in which it is not
– Survival versus self-expression values: reflects the contrast between
societies that emphasize economic and physical security and those that
emphasize subjective well-being, self-expression, and quality of life,
giving high priority to environmental protection, diversity tolerance, and
participation in decision making
How Values Differ around the World
Figure 4.3
Values differ around the world. One
useful way to understand differences
in values is in terms of
secular/rational values and
survival/self-expression values. This
figure illustrates how different
regions of the world reflect these two
sets of values.
Source: Inglehart, R., & Welzel, C. (2005). Modernization, Cultural Change and Democracy (p. 64).
New York: Cambridge University Press. Based on the World Values Surveys, see
http://www.worldvaluessurvey.Org.
Copyright © 2005 Ronald Inglehart and Christian Welzel. Reprinted with the permission of Cambridge
University Press.
The role of emotions in behavior

– Emotions
 Intense, short-term physiological, behavioral, and psychological reactions
to a specific object, person, or event that prepare us to respond to it
– Moods
 Short-term emotional states that are not directed toward anything in
particular
– Affectivity
• The tendency to experience a particular mood or to react to things with
certain emotions
The Role of Emotions in Behavior
Affect and Mood in organizations
Positive affect Reflects a combination of high energy and positive evaluation characterized by emotions
like elation
Negative affect Comprises feelings of being upset, fearful, and distressed
Figure 4.4
Positive and Negative Affect
Affect can vary anywhere along a continuum ranging from positive affect to negative affect. As
illustrated here, it is also possible to fall in between these extremes and reflect neither positive
nor negative affect.
Source: Thompson, E. R., Development and Validation of an Internationally Reliable Short-Form of the Positive and Negative Affect
Schedule (PANAS), Journal of Cross-Cultural Psychology, 38(2), 227–242. © 2007 by SAGE Publications. Reprinted by Permission of
SAGE Publications.
Perception in Organizations (1 of 5)
• Perception
– The set of processes by which an individual becomes aware of and
interprets information about the environment
• Basic perceptual processes
– Selective perception: screening out information that we are
uncomfortable with or that contradicts our beliefs
– Stereotyping: categorizing or labeling people on the basis of a single
attribute
Perception errors
Categorization The tendency to put things into groups and then

exaggerate the similarities within and the differences
among the groups
Halo effect Forming a general impression of something or
someone based on a single (usually good)
characteristic
Contrast effect Evaluating someone by comparing them with
recently encountered people
Projection Seeing one’s own characteristics in others
First impression bias The inability to let go of first impressions, particularly
negative ones
Self-fulfilling Treating people the way we categorize them and
prophecies having them react accordingly
• Attribution
– The way we explain the causes of our own as well as other people’s
behaviors and achievements, and understand why people do what they
do
 Are they due to the individual because of internal factors such as effort
and ability?
 Or are they due to the environment because of external factors such as
luck, resources, and other people?
– Three rules to evaluate whether to assign an internal or an external

attribution
 Consistency: Has the person regularly behaved this way or experienced
this outcome in the past?
 Distinctiveness: Does the person act the same way or receive similar
outcomes in different types of situations?
 Consensus: Would others behave similarly in the same situation or receive
the same outcome?
– Self-handicapping
 When people create obstacles for themselves that make success less likely
The Attribution Process
Figure 4.5
The attribution process involves observing behavior and then
attributing causes to it. Observed behaviors are interpreted in terms of
their consensus, their consistency, and their distinctiveness. Based on
these interpretations, behavior is attributed to either internal or external
causes.
• Perceptions and fairness, justice, and trust

– Organizational fairness—Employees’ perceptions of organizational events,
policies, and practices as being fair or not fair
– Distributive fairness—Perceived fairness of the outcome received, including
resources distributions, promotions, hiring and layoff decisions, and raises
– Procedural fairness—Addresses the fairness of the procedures used to
generate the outcome
– Interactional fairness—Whether the amount of information about the decision
and process was adequate, perceived fairness of interpersonal treatment and
explanations received during the decision-making process
– Trust—The expectation that another person will not act to take advantage of
us, regardless of our ability to monitor or control them.
Stress in Organizations (1 of 6)
• Stress
– A person’s adaptive response to a stimulus that places excessive
psychological or physical demands on that person
• The stress process (Selye)
– General adaptation syndrome (GAS)
 Identifies three stages of response to a stressor: alarm, resistance, and
exhaustion
 Sources of stress
o Eustress: pleasurable stress that accompanies positive events
o Distress: unpleasant stress accompanies negative events
The General Adaptation System
Figure 4.6
The general adaptation syndrome (GAS)
perspective describes three stages of the
stress process. The initial stage is called
alarm. As illustrated here, a person’s
resistance often dips slightly below the normal
level during this stage. Next comes actual
resistance to the stressor, usually leading to
an increase above the person’s normal level
of resistance. Finally, in stage 3, exhaustion
may set in, and the person’s resistance
declines sharply below normal levels.
• Common causes of stress

– Organizational stressors: various factors in the workplace that can cause
stress
 Task demands—Associated with the specific job a person performs
 Physical demands—Associated with the job’s physical setting and
requirements
 Role demands—Associated with the expected behaviors of a particular
position in a group or organization
 Interpersonal demands—Group pressures, leadership, interpersonal
conflicts
– Life stressors: life changes or traumas
Causes and Consequences of Stress
Figure 4.7
The causes and consequences of
stress are related in complex ways.
As shown here, most common
causes of stress can be classified as
either organizational stressors or life
stressors. Similarly, common
consequences include individual and
organizational consequences, as
well as burnout.
Reference: Adapted from James C. Quick and Jonathan D. Quick, Organizational Stress and Preventive
Management (McGraw-Hill, 1984) pgs. 19, 44, and 76. Used by permission of James C. Quick.
Workload, Stress, and Performance
Figure 4.8
Too much stress is clearly undesirable, but too little stress can also lead to
unexpected problems. For example, too little stress may result in boredom and
apathy and be accompanied by low performance. And although too much stress
can cause tension, anxiety, and low performance, for most people there is an
optimal level of stress that results in high energy, motivation, and performance.
• Consequences of Stress
– Individual consequences
 Behavioral consequences
 Psychological consequences
 Medical consequence
– Organizational consequences
 Burnout
 A general feeling of exhaustion that develops when an individual simultaneously
experiences too much pressure and has too few sources of satisfaction
• Managing and Controlling Stress

• Individual Coping Strategies
– Exercise
– relaxation.
– to develop and maintain support groups.
• Organizational coping strategies

– Institutional programs
 Properly designed jobs and work schedules
 Fostering a healthy work culture
 Supervision—keep workloads reasonable
– Collateral programs
 Organizational programs specifically created to help employees deal with
stress
o Stress management, health promotion, employee fitness programs, career
development
Work-life balance
• Fundamental work-life relationships
• work-life relationships
– Interrelationships between a person’s work life and personal life
• Balancing work-life linkages
– Importance of long-term versus short-term perspectives
– Balance needs of both wage earners in double-income families
– Accept that there’s a work-life integration
Organizational Behavior in Action
• After reading the chapter:

– If your boss was not sure it would be worth the investment to change the
company’s hiring practices to include an evaluation of applicants’
attitudes, what would you tell him or her?
– Do you think that it would be easy to influence a subordinate’s attitudes,
values, or emotions? Why? Which would have the largest influence on
the employee’s behavior? Why?
Chapter 10
Decision making by Individuals
and Groups
Learning Outcomes
1. Identify the steps in the decision-making process

2. Describe various models of decision making
3. Discuss the individual influences that affect decision making
4. Explain how groups make decisions
5. Describe the role culture plays in decision making
6. Explain how organizations can improve the quality of decisions through
participation
LO - 10.1: Identify the steps in the decision-making
process
LO 1
The Decision-Making Process
• Recognizing the problem and the need for a decision

• Identifying the objective of the decision
• Gathering and evaluating data and diagnosing the situation
• Listing and evaluating alternatives, selecting the best course of action, and
implementing the decision
• Gathering feedback and following up
LO - 10.2: Describe various models of decision
making
LO 2
Models of Decision Making
• Assumptions in the rational model

• Outcome will be completely rational
• Decision makers are consistent when choosing the best alternative
• Decision makers are aware of all alternatives
• Decision makers can calculate the probability of success for each alternative
• Assumptions in the bounded rationality model
• Managers select the first alternative that is satisfactory
• Managers recognize that their conception of the world is simple
• Managers are comfortable making decisions without determining all the alternatives
• Managers make decisions by rules of thumb or heuristics
• Managers satisfice
LO 2
Figure 10.2 The Z Problem-Solving Model
SOURCE: From Type Talk at Work by Otto Kroeger and Janet Theusen, copyright © 1992 by Janet Theusen and Otto Kroeger. Used by
permission of Delacorte Press, an imprint of The Random House Publishing Group, a division of Random House, Inc.
LO - 10.3: Discuss the individual influences that
affect decision making
Individual Influences on Decision Making (1 of 2)
• Comfort with risk

• Risk aversion: Choosing options with fewer risks and less uncertainty
• Risk taking is influenced by individual and organizational factors
• Cognitive style: An individual’s preference for gathering information and
evaluating alternatives
Individual Influences on Decision Making (2 of 2)
• Personality, attitudes, and values influence decision making

• Intuition enables the development of new perspectives
• Creativity: Process influenced by individual and organizational factors
• Results in the production of novel and useful ideas, products, or both
LO - 10.4: Explain how groups make decisions
LO 4
Reasons for Using Groups to Make Decisions
• Synergy: Positive force that occurs in groups when group members are
stimulated to produce new solutions to problems
• Achieved through the process of mutual influence and encouragement within the
group
• Gain commitment to a decision
• Obtain knowledge and experience to the problem-solving situation
LO 4
Social Decision Schemes
• Simple rules used to determine final group decisions

• Majority-wins rule
• Truth-wins rule
• Two-thirds-majority rule
• First-shift rule
LO 4
Advantages and Disadvantages of Group Decision
Making
• Advantages
• More knowledge and information through the pooling of group member resources
• Increased acceptance of and commitment to the decision
• Greater understanding of the decision
• Disadvantages
• Pressure within the group to conform and fit in
• Domination of the group by one forceful member
• Amount of time required to make a decision
LO 4
Limits of Group Decision Making: Groupthink
• Deterioration of mental efficiency, reality testing, and moral judgment

resulting from pressures within the group
• Consequences
• Incomplete survey of alternatives
• Failure to evaluate the risks of the preferred course of action
• Biased information processing
• Failure to work out contingency plans
LO 4
Limits of Group Decision Making: Group
Polarization
• Tendency for group discussion to produce shifts toward more extreme
attitudes among members
• Causes of occurrence
• Social comparison approach
• Persuasive arguments view
• Leads groups to adopt extreme attitudes
LO 4
Group Decision Techniques
• Brainstorming
• Generating multiple ideas on a given subject while suspending evaluation until all
the ideas have been suggested
• Nominal group technique (NGT)
• Structured approach to group decision making that focuses on generating
alternatives and choosing one
• Devil’s advocacy
• A group or individual is given the role of critic during decision making, which
helps prevent groupthink
• Dialectical inquiry
• Debate between two opposing sets of recommendations
LO 4
Special Decision-Making Groups
• Quality circle
• Small group of employees who work voluntarily on company time to address
work-related problems
• Quality team
• Part of an organization’s structure
• Empowered to act on its decisions
• Self-managed teams
• Make decisions that were once reserved for managers
• Lead to higher productivity, lower turnover among employees, and flatter
organization structure
LO - 10.5: Describe the role culture plays in
decision making
LO 5
Hofstede’s Dimensions
• Influences in decision making

• Uncertainty avoidance
• Power distance
• Individualist or collectivist cultures
• Masculine or feminine cultures
LO - 10.6: Explain how organizations can improve
the quality of decisions through participation
Participative Decision Making
• Individuals who are affected by decisions influence the making of those

decisions
• Participation buffers employees from the negative experiences of
organizational politics
• Participative management increases employee creativity, job satisfaction,
and productivity
LO 6
Foundations for Participation and Empowerment
• Organizational prerequisites
• Supportive organizational culture and a team-oriented work design
• Individual prerequisites
• Capability to become psychologically involved in participative activities
• Motivation to act autonomously
• Capacity to see the relevance of participation for one’s own well-being
KEY TERMS (1 of 2)
• Bounded rationality • Groupthink

• Brainstorming • Heuristics
• Cognitive style • Intuition
• Creativity • Participative decision making
• Devil’s advocacy • Programmed decision
• Dialectical inquiry • Nominal group technique (NGT)
• Effective decision
• Escalation of commitment
• Group polarization
KEY TERMS (2 of 2)
• Nonprogrammed decision
• Quality circle
• Quality team
• Rationality
• Risk aversion
• Satisfice
• Social decision schemas
• Synergy
SUMMARY (1 of 2)
• Decision making is a critical activity for managers

• Success of any organization depends on managers’ abilities to make
effective decisions
• Individual influences affecting decision making are comfort with risk,
cognitive style, personality, intuition, and creativity
SUMMARY (2 of 2)
• Managers use groups to make decisions for various reasons

• Decision making is influenced by Hofstede’s dimensions
• Organizations should cultivate a supportive organizational culture and a
team-oriented work design to draw participation
PART 2
Individual Behaviors and
Processes in Organizations
CHAPTER 3
Individual Characteristics
Chapter Learning Objectives
After studying this chapter, you should be able to:
1. Explain the nature of individual differences, the concept of fit, and the
role of realistic job previews.
2. Define personality and describe general personality frameworks and
attributes that affect behavior in organizations.
3. Identify and discuss other important personality traits that affect
behavior in organizations.
4. Discuss different kinds of intelligence that affect behavior in
organizations.
5. Describe different learning styles that influence how people process
information and that affect behavior in organizations.
People in Organizations (1 of 2)
• Individual differences
– Personal attributes that vary from one person to another
• The concept of fit
– Person-job fit—The fit between a person’s abilities and the demands of
the job, and the fit between a person’s desires and motivations and the
attributes and rewards of a job
– Person-group fit—The extent to which an individual fits with the
workgroup’s and supervisor’s work styles, skills, and goals
– Person-organization fit— The fit between an individual’s values, beliefs,
and personality and the values, norms, and culture of the organization
– Person-vocation fit—The fit between a person’s interests, abilities,
values, and personality and a profession
People in Organizations (2 of 2)
• Realistic job previews (RJPs)
– Present both positive and potentially negative information to job
candidates
– Goal is not to deter candidates, but to:
 Provide accurate information about job and organization
 Build trust
 Reduce turnover (especially from employees who quit because the job
wasn’t what they expected)
Personality and Individual Behavior (1 of 3)
• Personality
– The relatively stable set of psychological attributes that distinguish one
person from another, nature versus nurture?
• The “Big Five” personality traits
– A set of fundamental traits that are especially relevant to organizations
Agreeableness The ability to get along with others
Conscientiousness Refers to an individual being dependable and organized
Neuroticism Characterized by a person’s tendency to experience unpleasant
emotions such as anger, anxiety, depression, and feelings of
vulnerability
Extraversion The quality of being comfortable with relationships
Introversion The tendency to be less comfortable in relationships and social
situations
Openness The capacity to entertain new ideas and to change as a result of
new information
“Big Five” personality traits
Figure 3.1
The “big five” personality framework is
currently very popular among researchers
and managers. These five dimensions
represent fundamental personality traits
presumed to be important in determining the
behaviors of individuals in organizations. In
general, experts agree that personality traits
closer to the left end of each dimension are
more positive in organizational settings,
whereas traits closer to the right are less
positive.
• The Myers-Briggs framework
– Used to categorize personality
– Differentiation across four general dimensions
 Extroversion (E)/Introversion (I)
 Sensing (S)/Intuition (N)
 Thinking (T)/Feeling (F)
 Judging (J)/Perceiving (P)
– Sixteen personality classifications result from the higher and lower
positions of the general dimensions
– Myers-Briggs type indicator (MBTI) is a popular questionnaire used to
assess personality types
 Communications styles
 Interaction preferences
Other Important Personality Traits (1 of 2)
Locus of control The extent to which one believes one’s circumstances are a
function of either one’s own actions or of external factors
beyond one’s control
Self-efficacy A person’s confidence in his or her ability to organize and
execute the courses of action necessary to accomplish a
specific task
General self- Your generalized belief that you will be successful at
efficacy whatever challenges or tasks you might face
Self -esteem Our feelings of self-worth and our liking or disliking of

ourselves
Authoritarianism The belief that power and status differences are appropriate
within hierarchical social systems such as organizations
Table 3.2 Effects of Locus of Control on
Organizational Outcomes
Organizational Outcome Internal versus External Locus of Control
Job satisfaction Internals are generally more satisfied with their job, pay, supervisor, and
coworkers.
Commitment Internals are more committed and have lower absenteeism.
Job motivation Internals have greater task motivation, job involvement, and self-confidence than
do externals.
Job performance Internals tend to have higher job performance than externals.
Career success Internals tend to earn a higher salary than do externals.
Conflict and stress Internals report lower role conflict, work-family conflict, burnout, and stress than
do externals
Social integration Internals tend to be more socially integrated at work and report more favorable
relationships with their supervisors
Source: Adapted from See Ng, T.W.H., Sorensen, K.L., & Eby, L.T. (2006). Locus of
Control at Work: A Meta-Analysis, Journal of Organizational Behavior, 27, 1057-1087
Other Important Personality Traits (2 of 2)
Machiavellianism Traits causing a person to behave in ways to gain
power and control the behavior of others
Tolerance for risk The degree to which a person is comfortable with risk
(or risk propensity) and is willing to take chances and make risky decisions
Tolerance for Reflects the tendency to view ambiguous situations as
ambiguity either threatening or desirable
Type A personality Impatient, competitive, ambiguous, and uptight
Type B personality More relaxed and easygoing, less overtly competitive
than Type A; handles stress less frantically
Bullying Repeated mistreatment of another employee through
personality verbal abuse; conduct that is threatening, humiliating,
or intimidating; or sabotage that interferes with the
other person’s work.
The relationship between personality and behavior changes

depending on the strength of the situation.
Type A and B Traits
Figure 3.2
Few people have extreme Type A or Type B personality profiles. Instead, people
tend toward one type or the other. This is reflected by the overlap between the
profiles shown here.
Intelligence (1 of 3)
• General mental ability
– The capacity to rapidly and fluidly acquire, process, and apply
information
• Information processing capacity
– Involves the manner in which individuals process and organize
information
• Gardner’s Theory of Multiple Intelligences
Linguistic Words and language
logical-mathematical Logic and numbers
Musical Music, rhythm, and sound
bodily-kinesthetic Body movement and control
spatial-visual Images and space
Interpersonal Other people’s feelings
Intrapersonal Self-awareness
This theory says there is more than one way to be smart. Important for
determining different learning preferences.
• Emotional intelligence (EQ)
– An interpersonal capability that includes the ability to perceive and
express emotions, to understand and use them, and to manage
emotions in oneself and other people
 Self-awareness: being aware of what you’re feeling
 Self-motivation: persisting in the face of obstacles, setbacks, and failures.
 Self-management: managing your own emotions and impulses
 Empathy: sensing how others are feeling
 Social skills: effectively handling emotions of others
Table 3.4 Matching Intelligence Types with
Career Choices (1 of 2)
Type of Intelligence Related Careers Preferred Learning Style
Bodily-Kinesthetic:physical agility and balance; Athletes, firefighters, chefs, Touch and feel, physical experience
body control; hand-eye coordination actors, gardeners
Interpersonal: ability to relate to others and Psychologists, doctors, Human contact, teamwork
perceive their feelings; interprets behaviors of educators, salespeople,
others; relates to emotional intelligence politicians
Intrapersonal: self-awareness; understands oneself Related to success in almost all Self-reflection, self-discovery
and one’s relationship to others and to the world; careers
relates to emotional intelligence
Linguistic: verbal and written language; explaining Authors, speakers, lawyers, TV Verbal and written words and language
and interpreting ideas and information and radio hosts, translators
Source: Based on Gardner, H. (1983). Frames of Mind. New York: Basic Books; Gardner, H. (1993a).
Multiple Intelligences: The Theory in Practice. NY: Basic Books; Gardner, H. (1993b). Creating Minds. NY:
Basic Books; Marks-Tarlow, T. (1995). Creativity Inside Out: Learning Through Multiple Intelligences.
Reading, MA: Addison-Wesley.
Table 3.4 Matching Intelligence Types with
Career Choices (2 of 2)
Type of Intelligence Related Careers Preferred Learning Style
Logical-Mathematical: logic and pattern detection; Engineers, directors, scientists, Logic and numbers
analytical; problem solving; excels at math researchers, accountants,
statisticians
Musical:recognition of rhythm and tonal patterns; Musicians, DJs, music teachers, Music, Sounds, and rhythm
musical ability; high awareness and use of sound acoustic engineers, music
producers, composers
Spatial-Visual: creation and interpretation of visual Artists, engineers, photographers, Pictures, shapes, visually
images; visual and special perception inventors, beauty consultants
Source: Based on Gardner, H. (1983). Frames of Mind. New York: Basic Books; Gardner, H. (1993a).
Multiple Intelligences: The Theory in Practice. NY: Basic Books; Gardner, H. (1993b). Creating Minds. NY:
Basic Books; Marks-Tarlow, T. (1995). Creativity Inside Out: Learning Through Multiple Intelligences.
Reading, MA: Addison-Wesley.
Learning Styles
• Learning styles—Individual differences and preferences in how we
process information while problem-solving, learning, or engaging in
similar activities
• Sensory modalities approach
– Visual: learning by seeing
– Auditory: learning by hearing
– Tactile: learning by touching
– Kinesthetic: learning by doing
Kolb Learning Style Inventory
Convergers Learn by active experimentation and abstract

conceptualization; superior in technical tasks, inferior in
interpersonal settings
Divergers Learn by concrete experience and reflective observation;
superior in generating alternate hypotheses and ideas; tend to
be imaginative and people or feeling-oriented
Assimilators Learn by abstract conceptualization and reflective
observation; more concerned about abstract concepts and
logical soundness than about people and practical values;
suited to research and planning
Accommodators Learn by active experimentation and concrete experience;

focus on risk taking, opportunity seeking, and action; deal with
people easily; suited to action-oriented jobs such as marketing
and sales
Learning Style Orientations
Discovery learning An inclination for exploration during learning

Experiential learning A desire for hands-on approaches to instruction
Observational A preference for external stimuli such as demonstrations and
learning diagrams
Structured learning A preference for processing strategies such as taking notes,
writing down task steps, subjective assessments
Group learning Preference to work with others while learning, active and
interactional
Organizational Behavior in Action
• After reading the chapter:
– What is a psychological contract? Why is it important? What
psychological contracts do you currently have?
– What individual differences do you feel are most important to
organizations? Why?
– If you were denied a job because of your score on a personality test,
what would be your reaction?
– If your supervisor exhibited bullying behaviors, what would you do?
– Which of Gardner’s multiple intelligences do you feel are most important
for managers?

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Chapter 1

Organizational Behavior and

1. Define organizational behavior

6. Describe the opportunities that change creates for organizational behavior

• Study of individual behavior and group dynamics in organizations

Steps for Adapting to Change

• Have a positive attitude

Figure 1.1: An Open-Systems View of Organization

Formal and Informal Organization

Elements of Formal Organization

• Goals and objectives

Elements of Informal Organization

• Beliefs and assumptions

• Large and small organizations operate in the following sectors of the

Impact of Global Competition on Business

• All categories of employees face increased pressure to:

Total Quality Management (TQM)

• Total dedication to continuous improvement and to customers

• High-performance system for executing business strategy

Table 1.1: Contrasting Six Sigma and Total Quality

Figure 1.3: Learning About Organizational

• Necessary skills identified by the U.S. Department of Labor to be successful

Figure 1.4: Learning from Structured Activity

• Organizational behavior studies individual behavior and group dynamics

• Change creates opportunities

1. Describe factors that affect organizations competing in the global economy

Understanding Cultural Differences

• Microcultural differences help understand the global work environment

Cultural Differences and Work-Related Attitudes (1 of 3)

Cultural Differences and Work-Related Attitudes (2 of 3)

Cultural Differences and Work-Related Attitudes (3 of 3)

Masculinity versus femininity

• All forms of individual differences that include:

Gender, Age, and Ability Diversity

Table 2.2: Benefits and Problems of Diversity

Ethical Dilemmas Related to Employee Rights

• Technology and privacy

Unwelcome verbal or physical sexual attention

Individual and Organizational Responsibility

• Character theory • Masculinity

• Social and political changes and cultural differences affect organizations

• Theories of ethics are consequential, rule-based, and character

Key work-related attitudes

Affective commitment Positive emotional attachment to the organization

• Conflicts among values

• Values differ around the world—leads to different managerial

The role of emotions in behavior

Categorization The tendency to put things into groups and then

– Three rules to evaluate whether to assign an internal or an external

• Perceptions and fairness, justice, and trust

• Common causes of stress

• Managing and Controlling Stress

• Organizational coping strategies

• After reading the chapter:

1. Identify the steps in the decision-making process

The Decision-Making Process

• Recognizing the problem and the need for a decision

Models of Decision Making

• Assumptions in the rational model