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Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022
Lecture Notes For
Essentials of Organizational Behavior,
Third Edition Scandura
Chapter 1-
Chapter 1: What Is Organizational Behavior?
Learning Objectives
1.1: Define the concept of organizational behavior (OB).
1.2: List and give examples of the four sources of information used in evidence-based management (EBM).
1.3: Define critical thinking and explain the critical thinking skills leaders need.
1.4: Discuss five types of outcome variables studied in OB.
1.5: Compare the levels of analysis in OB research.
1.6: Develop plans for using OB research to improve employee job performance.
Chapter Summary
Chapter summary here.
Annotated Chapter Outline
I. A Crisis in Organizations?: Historically, CEOs are fired because of poor company performance, but recently there is an increase in firing for ethical reasons. A. Examples i. Kevin Burns, CEO of Juul, was fired for poor financial performance after media attention to Juul’s marketing practices, and increased pressure from health regulators caused a dip in the company’s performance. ii. Steve Easterbrook, CEO of McDonald’s, was fired for violating company policy by entering into a consensual relationship with an employee even though Easterbrook’s performance as a CEO was exceptional.
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 iii. John Schnatter, Founder and CEO of Papa John’s, stepped down after backlash from his use of a racial slur during a conference call. B. What is going on with CEO leadership? i. Studies show increasing rates of CEO departure from the largest companies (17.5% in 2018). a. Most were planned retirements, but 20% of departures were forced. ii. 2019 is on-pace to have historic levels of CEO departures. iii. Future leaders must understand nuances of human behavior and honor ethical principles. iv. Organizational behavior (OB) addresses leadership challenges like these.
II. What Is Organizational Behavior?: A fairly new, multidisciplinary and multilevel study of individuals and their behavior in the workplace.
A. Hawthorne Studies: Most agree that OB’s point of origin is the Hawthorne studies of 1927-1932, conducted by psychologist Elton Mayo i. First study designed to examine effect of light intensity on plant productivity a. Showed productivity increased when lights were dimmed b. After interviewing workers, found this increase was because of the extra attention workers received from researchers. c. Hawthorne effect : Attitude and performance improvements caused by researchers paying attention to a group of workers d. Spontaneous collaboration: Mayo’s term for the feelings of affiliation and trust that arose because of interactions and trust among workers ii. Mayo’s second study designed to investigate a new incentive system’s effect on productivity produced unexpected results. a. Peer pressure from social subgroups resulted in the informal standards of production. b. High-producing workers were expected to reduce production so pay was more equal within the group. iii. Hawthorne researchers realized that the human element of organizations was more important than previously thought and that workers value attention. a. Ex: workers are grateful to employers when they provide gifts to employees, known as empathy wages. B. Disciplines Contributing to Organizational Behavior: OB is a multidisciplinary applied field of study that uses ideas and research from multiple disciplines. i. Examples
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 iii. Experiential evidence: such as other managers’ judgments as to why employees leave iv. Organizational values or stakeholder concerns: such as the impact of continual recruitment on Human Resources or employees experiencing reasons to quit B. Requirements for Successful EBM i. For EBM, leaders must have a. The ability: basic skills and competencies b. The motivation: behavioral beliefs, behavioral control, and normative beliefs c. The opportunity: support that overcomes barriers to EBM ii. Leaders must be involved at every level and collaborate with researchers. C. Standards of EBM i. Stop treating old ideas as if they were brand new a. A cynical workforce may be sensitive to would-be innovations that closely resemble older management fads (―empowerment‖ of the 1980s versus ―engagement‖ today). ii. Be suspicious of ―breakthrough‖ studies and ideas iii. Develop and celebrate collective brilliance iv. Emphasize drawbacks as well as virtues v. Use success (and failure) stories to illustrate sound practices, but not in place of a valid research method vi. Adopt a neutral stance toward ideologies and theories vii. Critical thinking, or learning by questioning everything, is important for effectively using these standards.
IV. What is Critical Thinking?: Persistent examination of any belief or knowledge in light of evidence that supports it. It is a self-directed, self-disciplined, self-monitored, and self-corrective way of thinking. A. Three Parts of Critical Thinking i. Elements of thought (reasoning) ii. Intellectual standards iii. Intellectual traits—developed through the consistent application of intellectual standards to the elements of thought B. Critical Thinking Skills (as outlined in Table 1.1) i. Logic ii. Reflection iii. Dual processing iv. Attention to detail
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 v. Decision-making C. Ian Mitroff's Smart Thinking for Crazy Times: The Art of Solving the Right Problems Basic Organizational Questions: Helps ensure the right problems are answered. i. What businesses are we in or should we be in? ii. What is our mission or what should it be? iii. Who are our prime customers or who should they be? iv. How should we react to a major crisis, particularly if we are, or are perceived to be, at fault? v. Will others perceive our situation as we do? How will they perceive our actions? vi. Are our products and services ethical? D. Applying Critical Thinking to Theories in Organizational Behavior i. Based on The Human Side of Enterprise by Douglas McGregor a. Theory X, pessimistic: people are basically lazy, dislike work, and avoid responsibility; characteristic management behaviors include being directive, engaging in surveillance, and coercion. b. Theory Y, optimistic: people are internally motivated, enjoy work, and accept responsibility; characteristic management behaviors allow discretion, participation, and creativity on the job. E. Examining Your Theory X/Y Results i. According to Self-Assessment 1.1, each person tends towards the X or Y Theory of human nature.
ii. Self-assessments like these are intended to challenge you to critically examine your own thoughts and beliefs, which will enable you to adjust your leadership style to influence important organizational outcomes.
V. Outcomes in Organizational Behavior A. Performance i. Productivity (job performance): one of the most important outcomes in OB a. Measured by objective performance via organizational records (e.g., number of forms correctly processed) b. Alternately measured by supervisor or peer ratings (e.g., rating work quality on a numeric scale) ii. Organizational citizenship behavior (OCB): a worker’s willingness to go above and beyond their job description to help others, known as ―extrarole performance‖
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 iii. Prosocial motivation: assesses the degree to which an employee’s behavior benefits society such as helping out a new employee that is struggling F. Employee Withdrawal i. Employee withdrawal costs large amounts of money and time. ii. Turnover intentions: Employee thoughts of quitting. May be related to other outcomes such as job satisfaction and engagement iii. Turnover: Employees actually quitting. Strongly influenced by job market iv. Absenteeism: Workers who are dissatisfied but have few alternative job opportunities may not come to work.
VI. Levels of Analysis in Organizational Behavior A. Four Different Levels of Analysis i. Individual level: Dictated by the personality and experiences of a given employee a. Dyad/two-party level: between pairs of people such as mentor and protégé ii. Team level: may be dictated by group wide performance norms. iii. Organizational level: in organizations with strong cultures, the culture can influence an individual’s behavior. iv. Industry level: comparisons made across different industries.
VII. How OB Research Increases Employee Performance A. Development of OB Hypotheses i. Can be developed at any level of analysis ii. See Table 1.3 Examples of How Organizational Behavior Research Relates to Performance iii. Research at any level can help leaders improve employee performance.
VIII. Leadership Implications: Thinking Critically A. Uses For This Course i. Using this course to become a more effective leader requires you to critically think about the material you encounter, putting aside your assumptions and biases about leadership. ii. Employ an evidence-based approach: using evidence, such as your experiential evidence and OB research, to inform your management practices
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022
Lecture Notes
Chapter 2: Personality and Person – Environment Fit
Learning Objectives
2.1: Define personality and discuss the role of heredity.
2.2: Discuss the benefits and limitations of using the Myers-Briggs Type Indicator in organizations.
2.3: List and explain the five factors in the Big Five theory of personality.
2.4: Compare and contrast the Type A and Type B behavior patterns.
2.5: Develop an example of a job that would benefit from risk-taking.
2.6: Summarize the elements of psychological capital.
2.7: Compare and contrast person–organization fit and person–job fit.
Chapter Summary
Chapter summary here.
Annotated Chapter Outline
I. The Personality Effect in Unicorns A. Unicorns are privately held startup companies with a value over $1 billion. B. WeWork co-working office spaces: Cofounder Adam Neumann’s charismatic personality allowed WeWork to rapidly expand and easily attract investors. i. Neumann’s charisma and inspiring speeches motivated WeWork’s employees to put in long work hours for little pay; they were convinced they were part of the next great tech startup and would become millionaires. ii. Neumann lavishly spent to create a party atmosphere that attracted and retained young workers. After-work parties lasted for hours, popular bands were flown in to perform, and a ―summer camp‖ was held with events such as yoga, axe throwing, and drum circles.
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 i. Limited research support for the MBTI’s reliability and validity. ii. Retaking the test may produce a different result. iii. Has not been validated for selection and should not be used to select job candidates D. How the Myers-Briggs Type Indicator Is Used in Organizations i. Valuable in conflict resolution and team building ii. Enables the discussion of personality differences and their effects on work strategy in a nonjudgmental way
IV. ―The Big Five‖ A. Openness: A person’s willingness to embrace new ideas and new situations i. More open individuals adjust better to organizational change. B. Conscientiousness: The characteristic of being a person who follows through and gets things done C. Extraversion: A trait of a person who is outgoing, talkative, and sociable as well as enjoys social situations D. Agreeableness: Being a nice person in general E. Neuroticism: A tendency to be anxious or moody (this trait is often referred to by its opposite: emotional stability) i. Emotional stability relates to stress coping. F. Big Five personality variables are better validated as predictors of performance and can be used to make hiring decisions.
V. Personality Traits and Health Research A. Four main personality types have diverse health outcomes: i. Type A: Competitive, aggressive personality type energized by stress a. After the original long-term study, 70% of Type A men had coronary heart disease. Later studies linked this to the Type A behavior of hostility (irritation, bossiness, and domineering nature). b. A ―healthy‖ Type A pattern is characterized by the ability to express one’s emotions and share their stress with another person. ii. Type B: Relaxed, easygoing personality type iii. Type C: Nice, hardworking people who try to appease others iv. Type D: The distressed personality, a combination of negative affect (unhappy feelings) and social inhibition (inability to express oneself) a. Type D patients are at increased risk for psychological distress, psychosocial risk factors, impaired quality of life, and lower benefits from medical and invasive treatment.
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 B. A ―hardy‖ or resilient personality reduces the potential for personality type to affect health. C. Social support ameliorates certain health hazards of personality traits.
VI. Other Relevant Personality Traits A. Machiavellianism i. Machiavellianism (sometimes abbreviated Mach): A person who believes that the ―ends justify the means,‖ someone who will do whatever it takes to win a. Named for Niccolo Machiavelli, who wrote The Prince about strategies for gaining and retaining power in the 16th^ century b. A complex interaction of several characteristics: tendency to distrust others, willingness to engage in amoral manipulation, desire for status, and desire to maintain interpersonal control c. High Mach employees may engage in counterproductive work behaviors (such as purposely wasting office supplies) and report lower job satisfaction and higher job stress. d. High Mach employee performance tends to improve over time, suggesting an integration with office politics and power structures. However, it is also linked to negative outcomes for others such as workplace bullying and abusive supervision. ii. Dark Triad: A combination of Machiavellianism, narcissism, and psychopathy a. Narcissism: The expression of grandiosity, entitlement, dominance, and superiority. They may appear charming or pleasant in the short term, but struggle to trust others and develop effective working relationships. b. Psychopathy: Impulsivity and thrill-seeking combined with low empathy and anxiety. Psychopaths lack guilt and seek immediate gratification. c. Machiavellianism and psychopathy are associated with hard tactics: threats and manipulation. d. Machiavellianism and narcissism are associated with soft tactics: charm, ingratiation, and compliments. e. Narcissism is positively related to salary. While Machiavellianism is positively related to leadership and career satisfaction, psychopathy is negatively related to all career outcomes. B. Self-Monitoring i. Self-monitoring: Self-observation and self-control guided by situational cues to social appropriateness
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 iii. State-like: Personality characteristics that are relatively changeable and can be developed or reduced via self-awareness or training iv. Psychological capital (PsyCap): Characteristics that are more stable than fleeting states of mind but are open to change. A movement of positive psychology
VII. Psychological Capital A. Positive organizational behavior (POB) is an emerging field concerning the study and development of human strengths in business. B. There are four components to PsyCap: i. Efficacy: A person’s belief that they have the ability to execute a specific task in a given context ii. Optimism: A positive outcome outlook or attribution of events, which includes positive emotions and motivation iii. Hope: The will to succeed and the ability to identify and pursue the path to success iv. Resiliency: Coping in the face of risk or adversity; the ability to ―bounce back‖ after a setback C. PsyCap predicts job performance and satisfaction; this relationship is not reversible (high performance does not predict PsyCap). D. The four components of PsyCap are related to positive emotions at work, which affect the acceptance of organizational change.
VIII. Person–Environment Fit A. Person – environment (PE) fit: When an individual’s personality is aligned with his or her environment, it results in job satisfaction, organizational commitment, and better performance on the job. i. Good PE fit reduces turnover and increases job satisfaction. ii. Leaders can improve PE fit by inspiring employees and providing individual support. B. Person–Organization Fit i. Person–organization (PO) fit: A type of PE fit describing the match between a person’s individual values and those of the organization they work for a. Often considered in the context of recruiting employees that ―fit in‖ with the organizational culture and values b. Leads to better communication, increased predictability, interpersonal attraction, and trust in the organization (the key component)
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 c. Related to job satisfaction, organizational commitment and job performance C. Person–Job Fit i. Person–job (PJ) fit: Occurs when job characteristics are aligned with employees’ personalities, motivations, and abilities a. Lack of fit increases burnout and physical symptoms. b. Demands–abilities (DA) fit: Refers to the compatibility between the employee’s knowledge, skills, and abilities and the demands of the job c. Needs–supplies (NS) fit: A form of PJ fit that addresses whether the job fulfills the employee’s requirements for interesting work and a sense of meaning in their work D. Personality–Job Fit Theory i. Personality–job fit theory: One of the best researched theories of PJ fit, developed by John Holland who classified six personality types and matched them to occupations (RIASEC): a. Realistic (R) – Practical, often introverted, people who get things done b. Investigative (I) – Analytical and may enjoy research c. Artistic (A) – Imaginative and may enjoy music or writing d. Social (S) – Extroverted and may enjoy teaching or social work e. Enterprising (E) – Confident and may enjoy law or small business ownership f. Conventional (C) – Conforming and may enjoy accounting or corporate management ii. Predictive of job performance and turnover intentions
IX. Leadership Implications: Understanding Others A. Changing the personalities of others may be futile. B. Applying personality surveys may improve performance metrics or hiring decisions. C. Dark Triad personality traits and even Type A behavior patterns may be challenging to work with. To disarm these personalities: i. Adopt a neutral stance; do not interrupt or touch the person ii. Rise slowly if seated; make eye contact and use body language such as crossed arms or a ―stop‖ gesture iii. Say their name to snap them out of an episode iv. Ask for a solution v. Ask them to leave vi. Leave yourself
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022
II. Emotions and Moods at Work A. OB underwent an ―affective revolution‖ in the mid-80s through the 90s. Managers began to consider the feelings of followers and coworkers. B. Affect: A general term that refers to the range of feelings that employees experience at work, comprising emotions and moods. i. State affect: Feelings experienced in the short term and that fluctuate over time ii. Trait affect: Stable individual differences iii. Emotions: Triggered by specific events, emotions are brief—typically seconds to minutes in duration—but intense enough to disrupt a person’s thinking. a. For example, feeling pride in an accomplishment b. May be triggered by another person or situation iv. Moods: General feeling states unrelated to a specific event, not intense enough to interrupt regular thought patterns or work a. Felt emotions such as anger at one’s boss pass relatively quickly, but foul moods may last for hours. b. Moods are not typically caused by a person or something that happens to us. v. Moods and emotions are separate but interrelated concepts. C. Affective Events Theory i. Affective events theory: A framework that integrates personality, emotions, and moods, and considers the impact of the work environment and events that may trigger emotional reactions (positive and negative affect) a. Satisfaction is not emotion. Emotions influence job performance and turnover independent of job satisfaction—negative emotions can reduce the ability to attend to detailed work even if a person is satisfied with their work in general. b. Events cause emotions. Both job-related and unrelated events can instigate emotional states at work and therefore have work consequences. c. Affect-driven behaviors are different from judgment-driven behaviors. Affect-driven behaviors are decisions and judgments with immediate consequences compared to judgment-driven behaviors, informed by more long-term attitudes about the job or organization.
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 d. Affective experiences change over time. A person will perform better when they are happier than when they are unhappy, so something that improves affect will improve performance. e. Affect is structured as emotions and moods. Moods lack a specific causal event, whereas emotions are reactions.
III. Moods A. Positive state affect (PA): The extent to which a person feels enthusiastic, active, and alert i. High PA: high energy, full concentration, pleasurable engagement ii. Positively related to performance quality and income B. Negative state affect: A general dimension of subjective distress and unpleasant engagement that subsumes a variety of aversive mood states (anger, contempt, disgust, fear, or nervousness) i. Negatively related to productivity C. Affective Climate i. Affective climate: The shared affective experience of a work group or team a. Positive affective climates include participation, warmth, social rewards, and cooperation. b. Circumplex model of affect: affective climate has two dimensions, pleasantness (pleasure-displeasure) and arousal (low activation- high activation). c. Tension affective climate characterized as nervous, tense, and anxious and marked by task conflict and relationship conflict. ii. Feeling that team members are friends results in more effective teamwork, while feelings of compassion and pride within teams result in more ethical behavior. iii. Emotions may build over time into positive cycles of emotions. D. The Broaden and Build Model of Emotions i. Broaden-and-build model: The idea that emotions serve to both broaden employee experiences and allow them to build better functioning in organizations a. Positive emotions open people’s minds; they begin to build personal and social resources, which enables them to work more effectively. b. Positive worker outlook affects coworkers. c. Positive workers have positive customer interactions. ii. Gratitude: As a trait, a generalized tendency to recognize and respond with grateful emotion to the roles of other people’s benevolence in the
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 a. Call center employees are more motivated to help customers when they can work without being watched.
V. Emotional Intelligence A. Emotional intelligence (EI): Aptitude for emotional regulation and reading the emotions or moods of coworkers or customers i. Divided into four aspects: a. Ability to perceive emotions in self and others b. Ability to use emotion to facilitate cognitive activities like thinking and problem solving c. Ability to understand emotional information d. Ability to manage emotion in self and others ii. Positively related to job performance, especially in roles with high emotional labor requirements iii. In employees with lower intelligence, EI is a stronger predictor of performance and organizational citizenship behavior (OCB). a. This may be because employees with high EI are better able to control and reduce the counterproductive outcomes of challenging developmental job experiences, as EI reduces unpleasant feelings associated with demanding tasks that require new learning. b. Taking on these difficult tasks results in employees being seen as having more advancement potential. iv. EI is associated with team cohesiveness, meeting recruitment quotas, subordinate job satisfaction/performance, employee creativity, and conflict resolution. B. Can Emotional Intelligence Be Learned? i. Key components: emotional literacy (ability to label emotions) and emotional regulation (ability to manage emotions) ii. Training interventions from fields ranging from OB to sports management suggest that it is possible to increase EI with training programs, and this training can lead to other positive outcomes. C. Limitations of Emotional Intelligence i. Some argue that EI is a trait or ability similar to IQ. ii. Others argue that it is a mixed combination of intelligence, personality traits, and affect. iii. Still more argue that EI is a learnable ability. iv. There are countless definitions of EI which do not converge, and some consider the concept is too vague to be measured.
Scandura, Essentials of Organizational Behavior, 3e SAGE Publishing, 2022 v. A literature review on EI in the workplace concluded the predictive value of EI may have been overstated. D. How Emotional Intelligence Is Used in Organizations i. FedEx Express’s managerial training in EI used three steps: a. Know Yourself: Increase self-awareness of emotions and reactions b. Choose Yourself: Shift from unconscious reaction to intentional response c. Give Yourself: Align the moment-to-moment decisions with a larger sense of purpose ii. Conclusions about EI: a. It is distinct from, but positively related to, other intelligences such as IQ. b. It is an individual difference, with variations in aptitude across a population. c. It develops over the lifespan and can be enhanced through training. d. It involves effectively identifying and perceiving emotion as well as understanding and managing emotions successfully. E. Regulating Emotions i. Emotion regulation: The processes by which individuals influence which emotions they have, when the have them, and how they experience and express these emotions ii. Affect spin: The ability to vary responses to emotional events by knowing which people are more reactive than others to both internal and external events a. Can reduce feelings of burnout iii. Affect relabeling: Verbally labeling the initial reaction of something negative, then relabeling it to be less intense a. For example, saying ―I am angry‖ but then reappraising it to be less intense (―I am annoyed.‖) This is related to finding a ―silver lining‖ in a situation.
VI. Emotional Contagion A. Emotional contagion: The negative mood of one employee spreading to others in the group i. Positive moods are also contagious. ii. Questions that assess the degree of emotional contagion: a. To what extent are people on the same side of the table? b. What events and environmental conditions do they tend to face together?
