Organization Management

Assoc. Prof. Eng. Elena FLEACĂ, Ph.D., PMP

Management of Digital Enterprise

 Module 2. BEHAVIOR within Organization
The INDIVIDUAL

• Learning objectives:
• To understand the basis of
individuals behavior
• To know the key motivation
theories
• To discuss the organizational
reward systems
 What is meant by the individual behavior?
 The rule needed to understand the individual variables is:
1) to observe and recognize the individual differences ,and
2) to discover relationships among the variables.

 The scholars have come to the general agreement that human behavior:
 Is caused
 Is goal directed
 Is motivated
 Can be directly observed by the individual's actions  is measurable
 Can be indirectly observed based on the individual's thinking and
perceiving

 It is recognized that peoples behavior patterns do change, sometimes when

managers would prefer that they remain stable

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 What is meant by the individual behavior?

Work Environment
· Job description
· Organizational
structure
· Rules and norms
· Rewards and Behavior Outcomes
sanctions
· Resources · Problem solving
· Performance
· Thinking process
The Individual · Personal
· Communication
Nonwork Environment development
· Talking & Listening
· satisfaction
· Observations
Attitudes and Values Age, Race, Gender
· The family
· Economics
conditions Abilities and Skills Personality and perception
· Hobbies

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 Individual differences

Individual differences Descriptions

· A biological or learned trait that permits a person to do something

1. Ability
mental or physical
· Are task – related competencies (negotiate, clearly communicate,
2. Skills
operate a computer etc.)
· A mixed of affective and cognitive components, learned and organized
3. Attitudes by experience, that determine the response to people, objects, and
situations.
· The conscious, affective desire or wants of people that guide their
behavior
4. Values
· The constellation of likes, dislikes, viewpoints, rational and irrational
judgments that determine the persons view of world

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 Individual differences - ABILITIES
Mental abilities Descriptions
Flexibility • Holding in mind a particular visual configuration
Fluency • Producing words, ideas, and verbal expressions

Inductive reasoning • Forming and testing hypotheses directed at finding relationships

• Recalling perfectly for immediate reproduction a series of items

Span memory
after only one presentation of the series
Number facility • Rapidly manipulating numbers in arithmetic operations
• Finding figures, making comparisons, and carrying out simple
Perceptual speed
tasks involving visual perceptions
Deductive reasoning • Reasoning from stated premises to their necessary conclusion
Spatial orientation and • Perceiving spatial patterns and manipulating or transforming the
visualization image of spatial patterns
• Knowledge of words and their meaning as well as the
Verbal comprehension
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Sources: Marvin D. Dunnette, Aptitudes, Abilities, and Skills, in Handbook of Industrial and Organizational Psychology, 1976, pp. 481-83
 Individual differences
 The individual attitudes:
 are learned
 define our predisposition toward given aspect of the world
 provide the emotional basis of our interpersonal relations and identification with
others
 are organized and are close to the core of personality.

 Gender differences:
 research has shown that men and women are generally similar in terms of memory,
reasoning ability, learning ability, creativity and intelligence (Becker, D.V., Kenrick, S.L., Neuberg,
K.C., Blackwell, and Smith, D.M., The Confounded Nature of Angry Men and Happy Women, Journal of Personality and Social
Psychology, February 2007.)

 the key differences consist of:

1. Absenteeism from the job due to the role of caregivers to children, elderly
parents, and ill spouses.
2. Leadership style because the women prefer participative, team oriented,
and charismatic leadership dimensions more than males (Paris, L., Howell, J., Dorfman, P.,
and Hanges, P., Preferred Leadership Prototypes of Male and Female Leaders in 27 Countries, Journal of International Business Studies
40, No. 8., 2009.)

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 Individual differences

 The Personality and behavior:

 Locus of control: determines the degree to which they believe that their
behavior influence what happens to them. They see the control of their
lives as coming from inside themselves – internal locus of control.
 Self-efficacy: the believe that we can perform adequately in a
particular situation. When individuals acquire an internal control
orientation that leads them to set goals and develop action plans to
accomplish them, they develop a sense of self-efficacy.
 A person with low self-efficacy sees problems and worries and
thinks in terms of failing or not being able to do a high quality job.
 A person with high self-efficacy is positive, success driven, and goal
oriented.

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Individual differences : Self-Efficacy Concept

Self-Efficacy
beliefs

Low High

I do NOT think I can complete the task! I can complete the task!
I do not have an outstanding quality! I have an outstanding quality!

Low performer
High performer

· Being passive · Being assertive

· Avoiding difficult tasks · Selecting best opportunities
· Weak aspirations and low · Neutralizing obstacles
commitment · Setting goals
· Focus on personal deficiencies · Establishing standards
· Making weak efforts · Planning, preparing,
· Quiting because of setbacks practicing
· Blaming setbacks on bad luck · Trying hard and persevering
· Worry, experience stress, depresses · Learning from setbacks
· Think of excuses for failing · Visualizing success

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 Individual differences

 The implication of self-efficacy on organizational behavior are numerous and important,

especially in motivation and task performance.

 There are three general factors that can influence the attitude change: trust in sender, the
message itself, and the situation:
 Employees who do not trust the manager won’t accept the manager message or
change an attitude.
 Similarly, if the message is not convincing, there is no pressure to change. A
manager who has little prestige and is not shown respect by peers and supervisors
is in a difficult position if the job requires changing subordinates attitudes so that
they work more effectively  The greater the communicators prestige, the
greater the attitude change.

 Why?
 Linking the communicators produces attitude change because people try to
identify with a liked communicator and tend to adopt attitudes and behaviors of
the liked person.
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 What can we learn from motivation theories?

 Motivation- explanatory concept used to make sense out of the behaviors we observe.
 is inferred: instead of measuring it directly, we note what conditions exist and
observe behavior, using this information as a basis for our understanding of the
underlying motivation.
 is difficult to define and analyze; motivation has to do with:
 the direction of the behavior
 the strength of the response, as the individual chooses to follow a course of
action
 the persistence of the behavior, or how long the person continues to behave in
a particular manner.
 Managers are expected to understand the existing types and degrees of motivation!
 The researchers describe the Generation Y (between 20 – 30 years old): are very
comfortable with technology, prefer jobs defined by tasks, not by time; are more
individualistic and focused on their own interests and lifestyles.
 The workplace preferences: a fair boss, more team oriented; safety in the workplace and
work that is meaningful; training and learning opportunities; flexibility in the work schedule;
timely and fairly reward systems; constructive and frequent feedback.
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 Motivation theories

Motivation Managerial
Explanations Key founders
theories implications
· Abraham Maslow - five
· Focuses on factors
level need hierarchy · Being aware of
internally to
· Clayton Alderfer – ERG differences in
individuals that
theory needs, desires, and
Content energize, direct,
· McClelland – Learned goals because
motivation sustain, and stop the
needs theory each individual is
behavior
· Frederich Herzberg – unique in many
· The factors can only
Two factor theory ways
be inferred

· Focuses on factors · Understanding how

· Stacey Adams – equity individuals make
externally to
theory choices based on
Process individuals that
· Victor Vroom – the preferences,
motivation energize, direct,
expectancy theory of rewards, and
sustain, and stop the
chioces accomplishments.
behavior
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 Motivation theories
 The content motivation theories suggest that managers have to:
 Determine what needs trigger desired performance, group, and
personal behaviors
 Be able to offer meaningful rewards that help the employee satisfy
needs
 Know to offer appropriate rewards to optimize performance behavior
 Not assume that a persons need deficiencies will repeat themselves in a
regular pattern  People change because of experiences, life events,
aging, cultural and environmental changes, and other factors.

 The process motivation theories suggest that managers have to

 Understand that motivation varies from situation to situation because
people select behaviors to meet their needs and determine whether
they made the most successful choice.
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 CONTENT motivation theories
1. Maslows Need Hierarchy:
 Assumption:
 Peoples need depend on what they already have  a satisfied need is NOT a
motivator.
 People attempt to satisfy the lowest –level (basic needs) before directing behavior
toward satisfying upper-level needs.
 Lower-order needs must be satisfied before a higher-order need begins to control a
persons behavior.

Higher order needs

The need to fulfill oneself maximizing the use of
Self-actualization
abilities, skills, and potential
Esteem The need for self-esteem and for respect from others
The need for friendship, affiliation, interaction and
Affiliation, social, love
love
Lower order needs
The need for freedom from threat, the security from
Safety and security
surroundings
Your Psychological
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CONTENT motivation theories

2. Alderfers ERG Theory:

 Assumption:
 Alderfer agreed that human needs are arranged hierarchical, but he defined three sets of
needs:
1. Existence – needs satisfied by food, air, water, pay, and working conditions.
2. Relatedness – needs satisfied by social and interpersonal relationships.
3. Growth - needs satisfied by making creative and productive contributions.
 Aldefers ERG theory suggests that in addition to the satisfaction-progression process
of Maslow, a frustration-regression process is also at work.
 If a person is continually frustrated in attempts to satisfy growth needs, relatedness
needs reemerge as a major motivating force, causing the individual to redirect efforts
toward exploring new ways to satisfy this lower-order needs.

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 CONTENT motivation theories
3. McClellands Learned Needs Theory:
 Assumption:
 A person with a strong need will be motivated to use appropriate behaviors to
satisfy the need.The persons needs are learned from the culture of the society and
there are three types:
1. Achievement
2. Affiliation
3. Power
 The economic growth of a society is based on the level of achievement inherent
in its population  the economically backward nations can be improved by
stimulating the need for achievement in the populace.

4. Herzbergs Two-Factor Theory:

 Assumption:
 Job satisfaction results from the presence of intrinsic motivators and job
dissatisfaction stems from not having extrinsic factors.
 Job satisfaction is NOT a one-dimensional concept; it is a bipolar continuum with
two distinct kinds of experiences: satisfies and dissatisfies.
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CONTENT motivation theories
4. Herzbergs Two-Factor Theory:
Intrinsic motivators = JOB CONTENT Their presence
· Feeling of achievement
· Meaningful work
· Opportunities for advancement and
HIGH
growth
JOB SATISFACTION
· Recognition
Hygiene factors = JOB CONTEXT Their absence
· Pay and status
· Job security
· Working conditions
· Policies and procedure HIGH
· Interpersonal relationship JOB DISSATISFACTION

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 CONTENT motivation theories
4. Herzbergs Two-Factor Theory: Examples
· You are well paid, have job security,
· Hygiene factors are
have good relationships with you · LOW Job Dissatisfaction
PRESENT
colleagues and your boss
· Intrinsic motivators
· You are given challenging duties for · HIGH Job Satisfaction
are PRESENT
which you are accountable
· You are well paid, have job security,
· Hygiene factors are
have good relationships with you · LOW Job Dissatisfaction
PRESENT
colleagues and your boss
· Intrinsic motivators
· You are NOT given ANY challenging · LOW Job Satisfaction
are NOT PRESENT
duties and you are bored with your job
· You are NOT well paid, have little job
security, have poor relationships with · Hygiene factors are
· HIGH Job Dissatisfaction
you colleagues and your boss NOT PRESENT

· You are NOT given ANY challenging · Intrinsic motivators

· HIGH Job Satisfaction
duties and you are very bored with are NOT PRESENT
your
Yourjob
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CONTENT motivation theories

Maslow Aldefer McClelland Herzberg

Motivators
Self – actualization Achievement
Work Content:
· responsibility
Higher – order

Growth · Advancement
· Growth
needs

Esteem Achievement
Power Recognition

Hygiene factors
Affiliation and, love
Work context:
· Relationships
Relatedness with peers,
Safety and security
Basic needs

superiors, and
Affiliation subordinates
· Job security
· Working
Physiological Existence conditions
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 PROCESS motivation theories
Adams Equity Theory of Motivation:
 Assumption:
 Individuals work in exchange for rewards from the organization and they are
motivated by the desire to be equitably treated at work.
 The employees compare their efforts and rewards with those of others in similar
work situations.
 The major elements:
 The person – the individual from whom equity or inequity is perceived
 The comparison entity – the referent agent regarding the ratio of inputs and
outcomes.
 Inputs – the individual characteristics brought by the Person to the job.
 Outcomes – the Persons consequences related to the job.

I YOU
My OUTCOMES Your OUTCOMES
My INPUTS
= Your INPUTS
Equity

My OUTCOMES Your OUTCOMES Positive

My INPUTS
 Your INPUTS Inequity

Your own footerMy OUTCOMES Your OUTCOMES Negative

My INPUTS
 Your INPUTS Inequity
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 PROCESS motivation theories
Adams Equity Theory of Motivation: recommended techniques to restore equity:
 Changing inputs: put less time or effort into the job.
 Changing outcomes: confront the boss and ask for a rise, more time off, or better
assignments.
 Changing the reference person: make comparison with the inputs/outcome ratios of
other person.
 Changing the inputs or outcomes of the reference person: asking the reference
person to work harder or to take more responsibility on projects.
 Changing the situation: transfer to get away from an inequitable situation or quit the
job.
 Conclusion: the employees are concern with the fairness of decision making in all areas of
work, including decisions related to compensation, performance appraisals, training, and
work group assignments.
 Recommendations:
 Procedural justice = processes and procedures used to make resource and
allocation decision are perceived as fair and equity.
 Procedural justice has positive impact on employees’ behavior such as: being
committed to the organization, being intrinsically motivated, staying with the
organization, engaging in organizational citizenship behavior, trusting their bosses,
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performing the jobs well.

 Motivation theories - CONCLUSIONS

1. Motivation can be managed and influenced based on a context that encourages, supports,
and sustains improvement.
2. The ability, competence, and opportunity all play a key role in motivating people.
3. Each employee has his/her needs, abilities, and goals. Managers have to be sensitive to these
variations.
4. The only constant is CHANGE. Managers are required to permanently monitors the
employee’s needs, abilities, and goals.
5. The manager style, techniques, and work behavior are being observed and can be easily
imitated. The manager as role models can be influential in motivating employees.
6. The incentives must be linked to performance. When employees note that valued outcomes
can be achieved through performance, a major part of motivation is resolved.
7. Establishing moderately difficult goals to direct behavior is an important part of any
motivational strategy.
8. Managers have to provide employees with jobs that offer equity, task challenge, variety, and
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opportunities for need satisfaction.
 Why do we need an organizational reward system?
 The reward programs are needed in order to:
1. Attract qualified people to join the organization
2. Keep employees coming to work
3. Motivate employees to achieve high performance at work.
 There are a plenty of researches that determines whether individuals are satisfied with
rewards. The main findings can be summarized as follows:
1. Satisfaction with a reward is a function of both how much is received and how
much the person feels should be received  is an effect of the comparison people
make.
2. The individuals feelings of satisfaction are influenced by comparisons with what
happened to others.
3. Satisfaction is influenced by how satisfied employees are with both intrinsic and
extrinsic rewards.
 Intrinsic rewards = related to the work content (achievement and
accomplishment)
 Extrinsic rewards = related to the work context (salary and promotions).
4. People differ in the rewards they desire and in the relative importance of rewards.
5. The extrinsic rewards are satisfying because they lead to other rewards: money
lead to prestige, power, security, and status.
The reward process

Abilities Skills

Motivation to Individual Performance

perform performance Evaluation

Experiences
Extrinsic Rewards Intrinsic Rewards

· Salary and wages · Task completion

· Fringe benefits · Achievement
· Promotions · Autonomy
· Personal Growth

Reward Package

Satisfaction

Feedback

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 The organizational reward system
Extrinsic rewards External to the job
· Money modifies behavior
· The pay-performance connection has to be clear to employees
Salary and Wages
· The smaller differences in pay between lower and upper levels have resulted in
higher commitment to organizational goals
· The pension plan, health insurance, and vacations
Fringe benefits
· Are based on seniority or the length of employment
· Matching the right person to the jobs
Promotions
· Can be linked to the acknowledgement of the work well done
Intrinsic rewards Related to the job content
· The ability to start and finish a task is a form of self-reward and can have a
Task completion
powerful motivating effect
· A self-administered reward derived from reaching a challenging goal
Achievement · Carefully attention to goal-setting programs in correlation with individual
differences
· The freedom to do what the employee considers best in a particular situation
Autonomy · The desire to operate without being closely supervised
· Is determined by the job and organizational design
· By expanding the unique individual capabilities
Personal growth
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· By maximizing or at least satisfying skill potential
 The organizational reward system

 The relationship between reward package and satisfaction is dynamic and is

shaped by the individual differences.
 However, any organizational reward system should satisfy three conditions:
 Be sufficient to satisfy basic needs
 Be considered equitable
 Be individual oriented.

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