Professional MBA MAN 6244 Organizational Behavior Session 2

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Professional MBA MAN 6244 Organizational
BehaviorSession 2

• Class 2009, Session II
• Orlando Metro West
• Spring 2008
• Dr. B. Wayne Rockmore, APS

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On the Menu Tonight is

• Intelligence
• Decision-Making
• Motivation

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Intelligence The g vs. Dimensions of Mental
Abilities

• Verbal comprehension Meaning of words and
  reading comprehension
• Word fluency Ability to produce isolated words
  to meet specific requirements
• Numerical Arithmetic computation
• Spatial Perceive spatial patterns and visualize
  geometric shapes
• Memory Good rote memory of words, symbols, and
  lists
• Perceptual speed Perception of similarities and
  differences in figures
• Inductive reasoning Reasoning from specifics to
  general conclusion

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Sample Questions

• 1. What number should come next?
• 8 4 2 1 1/2 1/4 ?
• 2. Which one of these figures is most different?
• 3. Assume the 1st 2 statements are true. Is the
  3rd statement 1) true, 2) false, 3) not certain?
  A) Tom greeted Beth, B) Beth greeted Dawn, or C)
  Tom greeted Dawn.
• 4. A boy is 17 years old and his sister is twice
  as old. When the boy is 23 years old, what will
  be the age of his sister?

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5
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Emotional Intelligence

• EI is defined as
• Self awareness
• Self-management
• Self-motivation
• Empathy
• Social skills (emotion management)
• Some suggest that EI is the best predictor of
  work success
• Its learnable
• Its related to communication, motivation (self
  and others)
• (Hendrie Weisinger, Emotional Intelligence at
  Work (Jossey-Bass, 1998).

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Value of Relational Intelligence (RQ)

• Enables managers leaders enhance employee
  acceptance perceived justice by
• Recognizing the other currencies (other than
  money) that are most important to their
  employees.
• Enhancing employee effectiveness
  productivity/performance by providing the
  currencies they seek.
• Increase employees perceive equity in their
  relationship with the company and immediate
  manager leader.

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Decision Making

• Two Primary Approaches
• Classical Decision Theory (CDT)
• The Rational model
• Behavioral Decision Theory (BDT)

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CDT Assumptions

• Problem clear
• Single well-defined goal no conflict/trade- offs
• All options are known
• Preferences are clear
• Preferences are constant
• Final choice will maximize outcome (no regrets)

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Behavioral Decision Theory (Satisficing Model)

• Two Attributes
• Bounded Rationality
• Use obvious choices
• Sequential order of comparisons
• Satisficechoose one that fits
• Incrementalism
• Confine search to similar solutions
• Incremental changes

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BDT Assumptions

• Individuals have limited cognitive capacity
• Ability to make rational decisions bounded by
  cognitive limitations (and resources)
• Which is accurate (in describing what we do)?
• BDT more than CDT, but . . .
• Theres more going on than just rational vs.
  nonrational...
• There are Biases and Heuristics basing judgments
  on
• Availability How easily available information
  (things that are easy to retrieve from
  memoryvivid, salient, recent)
• Representativeness Choosing answers that appear
  to be consistent with the micro-evidence, but
  ignoring macro base rates (The Big Picture)!
• Anchoring and Adjustment Paying attention to
  meaningless numbers.

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Types of Decision-Making and Uncertainty

• Types of Decisions
• 
  
  10 of
• Innovative decisions
• Low
• RISK
• Information
• Availability Non-Routine
  90 of all
• decisions
• High Routine
• Low Degree of
  Uncertainty High

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What Managers Can Do to Build Creative Decision
Environments

• Attributes to Creativity
• Individual factors Personality (self-confidence,
  energy, openness), synthetic ability, thinking
  style, expertise, intrinsic motivation)
• Environmental factors clear creative goals,
  non-controlling supervision, team stability,
  practice (!)
• If you are not creative, You can create a
  creative environment for others . . .
• Select creative individuals
• Provide opportunities for creativity
• Clear creativity goals
• Task motivation
• Incentives (careful here)
• Resources
• Maintain team stability and focus

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MOTIVATIONGood to Great (by Jim Collins)

• Motivating people is the greatest waste of time
  managers engage in. If you have the right people
  on the bus, you dont need to worry about them
  being motivated.

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Motivation Many Approaches

• Individual needs (Maslowhierarchy of needs,
  Aldefer--ERG, McClellandneed affection, need
  power, need achievement)
• By the job Job design (job enlargement, job
  rotation, job enrichment)
• By thinking Cognition
• By training Reinforcement
• All of these require thinking about rewards...

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Ten Motivational Approaches
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BASIC MOTIVATIONALMODEL
Inner Needs, Desires Expectations
Behavior (Action)
Personal Goals
Causes
Fulfills
Yields
Degree of Satisfaction
Reinforcement
Provides
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How do the Various Approaches to Motivation Fit
the Six strong Workplace Questions?

• Do I know what is expected of me at work?
• Do I have the materials and equipment I need to
  do my work right?
• Do I have the opportunity to do what I do best
  every day?
• In the last 7 days, have I received recognition
  or praise for good work?
• Does my supervisor, or someone at work, seem to
  care about me as a person?
• Is there someone at work who encourages my
  development?

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Maslows Hierarchy Of Needs

• Self-Esteem
• needs

Belongingness needs
Security needs
Physiological needs
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Herzbergs Two-factor Theory
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Cognition

• Equity Theory (a social comparisons theory)
• I0 compared O0
• II with OI
• Based on perceptions
• Relative phenomenon
• Underpaid or overpaid

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So, What Can Managers Do?

• How outcomes are determined matters
• Distributive fairness (Justice)
• Procedural fairness (Justice)
• Fairness of the process (input, consistency,
  appeal, lack of bias, accuracy)
• Interactional fairness (Justice)
• Interpersonal treatment (dignity, respect)
• Provide explanations for how outcomes (pay,
  project assignments, performance appraisal, etc.)
  were determined
• Explanations

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Cognition

• Expectancy Theory

M (E P) x (P O) x V
E to P expectancy effort to performance
expectancy (0.0 to 1.0) P to O
instrumentality performance outcome to
expectancy
(0.0 to 1.0) V valence (value,
attractiveness, or utility -1.0 to 1.0) ? Three
Questions Can I do this? How likely is it that
X happens if I do? How good or bad is that?
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Cognition

• Expectancy Theory

M (E P) x (P O) x V
.30
.60
1.0
Study
.50
.75
1.0
1.0
.75
Camp w/ kids
MB1 (Study) vs. MB2 (Camp)
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Rewards

• What do people value/want?
• How can you link that to performance?
• Performance is a strategic decision. Whats our
  focus? Quality? Price? Speed?
• What gets measured, gets done
• What gets rewarded, gets done. (The folly of
  rewarding A while hoping for B.)

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Types of Rewards

• Monetary
• Bonuses
• Commissions
• Non-monetary
• Recognition
• Novel Reward Behaviors (NRB)
• Prizes

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Advantages of Non-monetary Rewards

• Memory value
• Trophy value
• Flexibility
• whats rewarded
• defined time period
• re-evaluation
• Cash cost more, offers less leverage
• must consider after tax value

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Novel Reward Behaviors(NRB)

• Viewed as highly to moderately effective
• Spontaneous (unexpected NOT planned)
• Infrequently provided
• Minimal in expense
• Relate to a specific performance activity
• Provided by the supervisor
• Usually not part of a traditional reward system
• Generally individual based (but may be team)
• Typically awarded for exceptional performance
• Special projects
• Exceptional performance on a Specific
  Activity/Project

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Environmental Uncertainty, Pay Plan Design Firm
Performance
Executive Perception of Task Environmental
Uncertainty
Low Environmental Uncertainty (LUC)
High Environmental Uncertainty (HUC)
Fixed Pay Plan
Variable Pay Plan
Fixed Pay Plan
Variable Pay Plan
GAIN in ROI EPS
Deficit in ROI EPS
Deficit in ROI EPS
GAIN in ROI EPS