The case below is a good one as it ties concepts from the earlier chapters in with this week’s topics of Motivation. Read the case in the file below (up to the highlighted part on the last page), and respond the to questions/prompts.
Answer the following questions:
Submission Instructions:
Side Note from Me: Attached is the Case and 3 summarized chapters that are relevant to this Case. I would talk about at least 2- lack of Job Satisfaction-Chpt.4, Path-Goal Theory Chpt.6 and Organizational Culture-Chpt. 14
The textbook is Scandura, Terri A. (copyright 2022). Essentials of Organizational Behavior. Sage Publications, Inc. Thousand Oaks, CA USA. Kindle Edition.
CASE PROGRAM 2004-6.1
Staff turnover in the Victorian Treasury (A)
In July 2001, Laurinda Gardner, Executive Director of Strategic Management in the
on staff turnover. The report revealed that annual turnover was very high among DTF
staff mostly economists and accountants and even higher among recent recruits.
The Victorian Government
Geographically, Victoria was the smallest of the five mainland states in Austra
federal system of government, but had the second-largest population (4.8 million
basic services such as police, the fire service, health, education, transport, ports, urban
planning, social welfare, environmental conservation and others.
-chamber parliament elected every four
years, with the majority party in the lower house, the Legislative Assembly, forming a
government. The chief political executive was the Premier, who chaired a state Cabinet
of about 20 ministers, which was the key decision-making body. Serving those
ministers was a public service organised into eight departments (almost all of which
had more than one minister), with a variety of other statutory authorities. In 2001
1 and the Victorian public sector had $49
billion in assets and 230,000 employees.
This case was written by Professor John Alford and Marinella Padula, Australia and New Zealand School
of Government. It has been prepared as a basis for class discussion rather than to illustrate either effective
or ineffective handling of a managerial situation. The assistance of the Department of Treasury and
Finance is gratefully acknowledged.
Cases are not necessarily intended as a complete account of the events described. While every reasonable
effort has been made to ensure accuracy at the time of publication, subsequent developments may mean
that certain details have since changed. This work is licensed under Creative Commons Attribution-
NonCommercial-NoDerivatives 4.0 International Licence, except for logos, trademarks, photographs and
other content marked as supplied by third parties. No licence is given in relation to third party material.
Version 11-02-2005. Distributed by the Case Program, The Australia and New Zealand School of
Government, www.anzsog.edu.au.
.
1 All figures are in Australian dollars; this amount is approximately $US13.3 billion.
The Department of Treasury and Finance
The Department of Treasury and Finance was responsible for policy advice to the
Victorian Government on economic, financial and resource management, and
prepared and delivered the state budget, collected revenues and was responsible for
economic policy, and the Minister for Finance, who was responsible for financial
reporting and management, procurement policy, property and superannuation.
DTF played a central role in the Victorian Government, controlling budgeting and
spending by all departments. Any policy initiative, revenue measure, or programme
proposal had to be reviewed by DTF for its financial implications before it could go to
Cabinet for approval.
The Department was organised into four main divisions (see Exhibit 1). Of these, the
Budget and Financial Management Division and the Economic and Financial Policy
Division both employed mainly economists and accountants. Typically they had to do
high-level policy work under urgent deadlines. According to Gardner:
analysts sometimes only get two days (occasionally even less) to turn those things
around.
It was not uncommon for 10 or more such reports to arrive at the DTF each week for
analysis, often with only two days turnaround time. While being close to the action and
able to influence major decisions was attractive to many, not everyone was comfortable
,
sometimes requiring sign-off from several layers of management. In addition,
individuals would have to juggle these demands with other core activities.
However, the period leading up to the delivery of the State Budget was the most
demanding, involving months of late nights and weekend work for many. It was also
rdner noted.
Human resources in DTF
operational work of HR, such as payroll, recruitment, and leave administration, was
outsourced to a private firm, Accenture. HR strategy, major policy, and administration
division chiefs and an Accenture partner, meeting monthly.
Eight to ten economists and a similar number of accountants were recruited by DTF
under the Graduate Trainee Scheme each year, and underwent a one-year internship,
3
rotating across three departments. Positions in Treasury were sought after by graduates
as part of one of the typical career paths for economists, which began with a position in
either the Reserve Bank, the Commonwealth Treasury, or a state Treasury (in roughly
that order of preference). After three to five years in one of these bodies, suitably
trained economists became very attractive to major banks or consulting firms.
-3 level, at a salary of
about $40,000, then be promoted over the following years, many reaching VPS-4 or
VPS-5 level, the latter attracting a salary of about $75,000. By that stage, a typical
policy analyst would have had sustained and intensive experience at developing high-
level policy advice under severe time constraints. According to Vin Martin, a DTF
policy director:
–
year internship is competitive for the first two or three years out, although the state of the
Pay levels in the Victorian public service for officers below executive ranks were set not
by each department but rather through a centralised agreement. In general, pay levels
were constrained by the state budget, for which salaries and staff costs were the largest
component.
A recent change of government had seen the push towards centralisation grow stronger,
-size-fits-
need for parity across the public sector, she was finding the DTF had much less
flexibility in the way it was able to reward staff, especially where performance bonuses
were involved.
In 2001, concerned at apparent problems in attracting and retaining policy analysts with
economic or financial training, the Depa
issue. Gardner commissioned SACS Executive Solutions, a human resource consulting
firm, to investigate and recommend strategies for recruiting staff and reducing turnover.
Four areas were examined and presented in the final report. These were: the perceptions
of current employees, those of recently departed employees, those of prospective
employees, and recruitment practices within the organisation and at Accenture.
Overall findings
The SACS report showed that DTF had an annual staff turnover rate in excess of 20
percent.2 In fact, it was close to 28 percent high by comparison with similar
organisations, for which the benchmark was 12 percent and the target maximum was 15
percent. More significantly, the turnover rate was even higher among economists and
higher among females. The report concluded that
2 -motivated forms of staff turnover, such as the end of
fixed
4
staff turnover
is people leaving the organisation within the first two years of their tenure. In excess of 34
However, SACS found no evidence of low morale within the DTF, a factor frequently
associated with elevated turnover.
Former staff
To gain insights from recent former employees, SACS conducted telephone interviews
and focus groups with more than 30 people who had left the DTF during the past 18
months. This group indic
factor in people leaving the organisation. According to the report:
perceived better opportunities to advance their careers. Within the Department it was
sometimes unclear as to what career opportunities existed that people could meaningfully
aspire to. A particular area of concern was the lack of clear communication from the
organisation as to career opportunities
commented that they believed that their time within the Department had made them
attractive prospective employees for a range of organisations both in the public and
Other factors identified inclu
of those we spoke to were regretful of having to leave the Department, commenting
very favourably on the intrinsic interest of the work they had undertaken, as well as the
training and government contacts made DTF alumni highly desirable. Indeed, Martin
observed that banks, in particular, were able to offer salaries well in excess of the
government departments which could provide a short-cut to seniority.
Current staff
Fifty current DTF staff were divided into 10 focus groups and interviewed by SACS.
two years tenure. Current staff were of the impression that increased turnover was a
significant problem within the organisation. They felt that the highly technical nature of
such staff left them back at square one with a replacement, whilst trying to manage an
increased workload.
Clarity of career options within the DTF was the most commonly identified driver of
opportunities outside their own branch and were in some cases unaware even of the
they were often unsure of their readiness to apply. Some employees felt it was easier to
access career opportunities outside the Department than within it.
5
This group also remarked on an apparent mismatch between new recruits and the
organisation. They found some employees joined the DTF only to discover that the style
of the workplace, nature of the work or career opportunities differed from their
expectations. Meanwhile they observed that other employees had come to the DTF with
the express intention of gaining valuable expertise, then moving on.
In terms of working with senior staff within the DTF, current employees noted that they
were extremely technically skilled. However, this group felt that senior members were
less proficient in dealing with people management issues. Assessment of these skills
was not part of their performance criteria and they felt their superiors could benefit from
more training.
Prospective staff
On the recruitment side, the report showed that DTF was quite well regarded as a
prospective employer by a sample of 60 policy and accounting graduates, with 77
percent of the former and 67 percent of the latter seeing the organisation as a valid
employment option. Among positive aspects identified were: secure tenure, the high
level of influence over other government departments, macroeconomic experience, the
variety of work available, and the high quality of training of new recruits. Gardner
Negative aspects mentioned by the graduates were low pay, long
bureaucratic processes, isolation from the commercial sector and lack of career
progression. Gardner also felt that opportunities for personal development were also
Recruitment issues
Current staff members touched on recruitment issues which were echoed elsewhere in
the organisation and in the SACS report. For this section of the report, SACS
interviewed 19 recruiting managers in the DTF drawn mainly from the Budget and
Financial Management and Economic and Financial Policy departments. Nearly 80
percent of these managers had recruited three or more people in the last 12 months.
Overall, 58 percent of managers were satisfied with the success of their recruitment
efforts, while 42 percent were not. Delving a little deeper, SACS discovered that 74
percent of managers would have liked more help from HR services, in other words
Accenture, in improving recruitment outcomes. They wanted to be able to use the
company as a source of guidance and advice on matters of judgement, not just
procedure. Increased flexibility of recruitment options and salary was the second most
cited factor managers felt would assist them (47 percent).
In terms of the timeliness and speed of recruitment activities, 58 percent were
dissatisfied, compared with 42 percent who were satisfied. SACS compiled data from
32 Accenture recruitment assignments and found that the average assignment took 73
days to complete. SACS, who also engaged in similar professional recruitment
SVMP
Comment on Text
You don’t need to read this part for the class discussion.
Chapter 4: Attitudes and Job Satisfaction
Job Satisfaction: Trends and Causes
Positive trend in 2013–2016 after slump
Survey items
Organizational satisfaction lower than job satisfaction
Possible explanations
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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Overall job satisfaction in the United States experienced a positive trend from 2013 to 2016, after it had slumped in 2012–2013
The following survey items were rated “very important” by high percentages of respondents:
Respectful treatment of employees (65%)
Overall compensation and pay (61%)
Trust between employees (61%)
Job security (58%)
Opportunities to use their skills and abilities at work (56%)
Organizational satisfaction has been lower than job satisfaction every year of the survey, with a small decline in 2016
Possible explanations:
Stagnant wages
Higher health care deductibles
Prescription copays
2
What is an Attitude? (1 of 3)
Attitude definition
Components of an attitude
Cognitive
Affective
Behavioral
These attitudes are related and converge
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-1 Define the concept of an attitude and know its three components
Attitude: A psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor—that is, a person’s evaluation of something.
Components of an Attitude
Cognitive: A statement of belief about something.
Ex: “My boss is a mean person.”
Affective: The emotional component of an attitude.
Ex: “I am angry because my boss is mean.”
Behavioral: An intention to act based upon cognitions and affect.
Ex: “I am going to go to the Human Resources department and report my mean boss.”
These three attitudes are closely related and converge.
3
What is an Attitude? (2 of 3)
Cognitive Dissonance
Definition
Motivation for resolving dissonance
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4-1 Define the concept of an attitude and know its three components
Cognitive dissonance: The incompatibility between two or more attitudes or between attitudes and behavior.
Creates stress in an individual, which can be resolved by making a change in one or both of the conflicting components so thoughts, feelings, and behaviors align.
Festinger proposed that the degree to which people are motivated to resolve dissonance is related to:
The importance of what creates it
How much influence the person has over it
Reward
4
What is an Attitude? (3 of 3)
Do Attitudes Matter?
Importance of gauging satisfaction and engagement
Relation to job performance and turnover
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4-1 Define the concept of an attitude and know its three components
Gauging satisfaction and engagement is important:
Dissatisfied employees may express negative perceptions to coworkers, spreading dissatisfaction.
Employees may post anonymously on career websites if they are dissatisfied, reducing the number of excellent job applicants.
Leaders must address dissatisfaction to convert negative attitudes to positive ones.
Job satisfaction and organizational commitment are significantly related to job performance and turnover.
5
Job Satisfaction (1 of 6)
Definition
Often equals improved performance
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4-2 Define job satisfaction and know the consequences of dissatisfaction.
Job satisfaction is a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience.
High job satisfaction often translates into improved performance (like higher customer satisfaction and engagement).
6
Job Satisfaction (2 of 6)
Job satisfaction changes over time
Increases, then decreases
Levels during relative economic levels
Study findings
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4-2 Define job satisfaction and know the consequences of dissatisfaction.
Job satisfaction changes over time:
Satisfaction increases after starting a new job, then decreases around the one-year point.
Graduates who enter the workforce during economic downturns are more satisfied with their current jobs than those who enter during more prosperous times.
Over a 40-year study, people appeared to become less satisfied as their tenure within a given organization increased. However, as people aged and moved to different organizations, their satisfaction increased.
In part, this is explained by pay increases over time.
Changing to a completely different occupation, however, may result in decreases in satisfaction that last up to 6 years.
7
Job Satisfaction (3 of 6)
Job satisfaction changes over time
“Gender paradox”
Transitioning employees more satisfied during/after
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4-2 Define job satisfaction and know the consequences of dissatisfaction.
Job satisfaction changes over time:
The “gender paradox:” women are more satisfied with their jobs than men, despite income disparities and, sometimes, fewer opportunities for promotion.
Transitioning employees are more satisfied with their work during and after transitioning to their preferred gender.
8
Job Satisfaction (4 of 6)
Job satisfaction facets
Job Descriptive Index (JDI)
Relationship between pay and satisfaction
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4-2 Define job satisfaction and know the consequences of dissatisfaction.
Job Descriptive Index (JDI) includes different scales that measure attitudes about aspects of the work experience:
Pay (lowest relationship to overall job satisfaction)
Promotions
Supervision
Coworkers (with supervision, found to be the second most important factor)
The work itself (found to be the most important factor)
Relationship between pay and satisfaction:
Highly paid employees were just as satisfied as those who made less.
Once an individual reaches an income level where they can live comfortably, the relationship between income and job satisfaction goes away.
Recent research indicates the relationship may, however, be more complex (higher pay may correlate with more difficult work, offsetting job satisfaction; pay relative to other employees may be more significant than an employee’s objective income).
9
Job Satisfaction (5 of 6)
Responses to Job Dissatisfaction
Active response
Passive response
Constructive response
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4-2 Define job satisfaction and know the consequences of dissatisfaction.
Active response: Responses which require significant action on the part of the employee, such as leaving an organization or voicing dissatisfaction.
Passive response: Responses which require less or no action on the part of the employee, such as waiting for an organization to change or putting in less effort at work.
Constructive response: Responses which positively contribute to the growth or improvement of the organization, such as voicing dissatisfaction or trusting management to resolve issues over time.
10
Job Satisfaction (6 of 6)
Responses to Job Dissatisfaction
Destructive response
Four reactions which combine these response qualities
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-2 Define job satisfaction and know the consequences of dissatisfaction.
Destructive response: Responses which negatively impact the organization, such as finding another job or becoming frequently tardy/absent
There are four main reactions which combine these four qualities of a response, known as the EVLN approach to job satisfaction:
Exit: The employee searches for another job and leaves. This is an active/destructive response.
Voice: The employee discusses their dissatisfaction with a supervisor, making suggestions for improvement. This is an active/constructive response.
Loyalty: The employee waits for the situation to improve, trusting that the management will address it in time. This is a passive/constructive response.
Neglect: The employee allows the situation to get worse and may be late or absent from work and put in less effort on the job. This is a passive/destructive response.
11
Job Search Attitudes (1 of 2)
Job search process includes ups and downs
Career adaptability: Resources for coping
Concern
Control
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-3 Explain the role of job attitudes in the job search process.
The job search is characterized by ups and downs in attitudes during the process
Career adaptability: A psychosocial construct that denotes an individual’s resources for coping with current and anticipated tasks, transitions, and traumas in their occupational roles. Composed of the “Four C’s”:
Concern
Control
12
Job Search Attitudes (2 of 2)
Career adaptability: Resources for coping
Curiosity
Confidence
Job search envy
Resume fraud
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-3 Explain the role of job attitudes in the job search process.
Career adaptability: A psychosocial construct that denotes an individual’s resources for coping with current and anticipated tasks, transitions, and traumas in their occupational roles. Composed of the “Four C’s”:
Concern
Control
Curiosity
Confidence
Job search envy: A situational form of envy specific to the job search domain.
Being envious of the success of others, combined with time pressure, often results in resume fraud:
Making false claims on a resume
Overstating information
Fabricating degrees or work experience
13
Organizational Commitment (1 of 4)
Related to turnover, absences, motivation, and performance
Definition
Components
Higher commitment reduces organizational deviance
Job insecurity leads to lower organizational commitment
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-4 Discuss the concept of organizational commitment and its three components.
Organizational commitment closely related to turnover, as well as absences, motivation, and performance
Organizational commitment: A psychological state that describes an employee’s relationship with their organization and a propensity to continue the relationship with the organization.
Three components of organizational commitment:
Affective commitment: Refers to an employee’s emotional attachment to an organization (caring and loyalty).
Continuance commitment: The degree to which an employee is aware of the costs of leaving the organization (inability to leave).
Normative commitment: The moral obligation to stay with the organization (staying is the right thing to do).
Higher commitment makes organizational deviance (excessive breaks, intentionally poor work quality) and interpersonal deviance (gossiping, bullying) less common.
Increased job insecurity, like that following the Great Recession of 2008, led to lower organization commitment.
14
Organizational Commitment (2 of 4)
Job Involvement
Definition
Institutionalized “Stars”
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4-4 Discuss the concept of organizational commitment and its three components.
Job involvement: How much an employee identifies with his or her job and views their performance at work as an essential part of their self-esteem.
Related to turnover, organizational citizenship, and performance.
Institutionalized “Stars”
Efforts are focused on both the task and the group to which they belong.
High organizational commitment and job involvement.
15
Organizational Commitment (3 of 4)
Job Involvement
“Apathetics”
“Lone Wolves”
“Corporate Citizens”
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-4 Discuss the concept of organizational commitment and its three components.
Job involvement: How much an employee identifies with his or her job and views their performance at work as an essential part of their self-esteem.
“Apathetics”
Low effort and little concern for team members.
Low organizational commitment and job involvement.
“Lone Wolves”
Prefer to “go it alone” and are more likely to leave the organization.
High job involvement, but little concern about the team.
“Corporate Citizens”
Not often star performers, but loyal employees.
Low job involvement, but attentive to the maintenance of the team.
16
Organizational Commitment (4 of 4)
Employee Engagement
Definition
Related factors
Costs of actively disengaged employees
Small organizations report highest engagement
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-4 Discuss the concept of organizational commitment and its three components.
Employee engagement: Related to job involvement and enthusiasm for the work performed; the investment of an individual’s complete self into a role.
Engagement is related to customer satisfaction, productivity, profit, employee turnover, and safety.
Gallup estimates actively disengaged employees cost the United States between $450 and $550 billion annually in lost productivity.
Small organizations (less than 100 employees) report the highest levels of engagement.
17
Perceived Organizational Support (1 of 5)
Definition of POS
Major categories of beneficial treatment
Fairness
Supervisor support
Organizational rewards/favorable job conditions
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4-5 Define perceived organizational support (POS), and explain its relationship to fairness in the workplace.
Perceived organizational support (POS): Employees’ perception of whether the organization values their contributions and cares about their well-being.
Three major categories of beneficial treatment:
Fairness
Supervisor support
Organizational rewards/favorable job conditions
18
Perceived Organizational Support (2 of 5)
Effects of POS
Positive job satisfaction and organizational commitment
Positive employee performance
Negative turnover intention
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-5 Define perceived organizational support (POS), and explain its relationship to fairness in the workplace.
Employees with a higher POS engage in more helping behavior and are less tardy, and POS has the following effects:
Strong positive effects on job satisfaction and organizational commitment
Moderate positive effect on employee performance
Strong negative effect on turnover intention
19
Perceived Organizational Support (3 of 5)
Strategies for Increasing POS
Implement supportive workforce services
Be fair and equitable in management practices
Set achievable goals and reward proportionately
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-5 Define perceived organizational support (POS), and explain its relationship to fairness in the workplace.
Strategies for increasing POS to enhance engagement:
Implement supportive workforce services that go beyond what you are required to do.
Be fair and equitable in making, monitoring, and enforcing management practices.
Set achievable goals and reward proportionately.
20
Perceived Organizational Support (4 of 5)
Strategies for Increasing POS
Offer individualized benefits
Support supervisors
Train subordinates to be supportive
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-5 Define perceived organizational support (POS), and explain its relationship to fairness in the workplace.
Strategies for increasing POS to enhance engagement:
Offer individualized benefits, tailored to the type of supports your workforce needs.
Support supervisors so they will foster POS in their subordinates.
Train subordinates to be supportive.
21
Perceived Organizational Support (5 of 5)
Strategies for Increasing POS
Promote strong social networks
Begin organizational support prior to employment
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-5 Define perceived organizational support (POS), and explain its relationship to fairness in the workplace.
Strategies for increasing POS to enhance engagement:
Promote strong social networks.
Begin organizational support prior to the start of employment.
22
Psychological Empowerment
(1 of 2)
Definition
Meaning
Competence
Self-determination
Impact
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-6 Explain psychological empowerment and its relationship to job performance.
Psychological empowerment: Intrinsic task motivation manifested in a set of four cognitions reflecting an individual’s orientation to his or her work role: competence, impact, meaning, and self-determination.
Meaning: How much work goals align with your personal standards (“fit” your values).
Competence (or self-efficacy): Your belief in your capabilities to show mastery in your work role.
Self-determination: The degree to which you feel that you have a choice in your work and autonomy to carry it out according to your own preferences.
Impact: Refers to how much you believe that you can influence important work outcomes (like administrative policies).
23
Psychological Empowerment
(2 of 2)
What it is positively related to
Team members feel empowered with discretion
Sense of meaning
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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4-6 Explain psychological empowerment and its relationship to job performance.
Psychological empowerment is positively related to managerial effectiveness, innovation, and organizational commitment, as well as lower stress.
Team members feel more empowered when they are allowed discretion in how they do their work, which translates into higher team performance.
Sense of meaning: Creating a sense of meaning at work may enable leaders to activate other positive attitudes about work and improve employee motivation.
24
Chapter 6: Leadership
Have Leaders Lost Their Followers’ Trust?
Richard Edelman’s 2019 global survey
14-point decline in global trust in 2019
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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Richard Edelman’s 2019 global survey on which people and institutions we trust and how much we trust them:
Overall, 2019 saw a 14-point decline in global trust.
When employers meet employee expectations, it builds resilient trust.
There is a “trust gap” in that many employees don’t trust their leaders to do the right thing.
2
What is Leadership? (1 of 7)
Leadership definition
Confusion in literature
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6-1 Define leadership and explain the difference between being a manager and being a leader.
Leadership: According to Yukl, the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives.
Confusion in the literature between leadership and other terms like management.
3
What is Leadership? (2 of 7)
Differentiating Management and Leadership
Qualities of managers vs. leaders
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6-1 Define leadership and explain the difference between being a manager and being a leader.
Differentiating Management and Leadership
Managers vs. leaders, according to Warren Bennis:
Administration vs. innovation
A copy vs. an original
Maintaining vs. developing
Systems & structure-focused vs. people-focused
Relies on control vs. inspires trust
Short-range view vs. long-range perspective
Asks how & when vs. asking what & why
Eye on the bottom line vs. eye on the horizon
Imitation vs. origination
Accepts status quo vs. challenging status quo
The classic good soldier vs. being one’s own person
Doing things right vs. doing the right thing
4
What is Leadership? (3 of 7)
Managerial Leadership
Both managers and leaders are needed
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6-1 Define leadership and explain the difference between being a manager and being a leader.
Managerial Leadership
Both managers and leaders are needed for optimal organizational performance.
To some extent, the two roles overlap.
5
What is Leadership? (4 of 7)
The Trait Approach
Definition
Was dismissed by OB researchers
Resurgence with traits that matter
The role of extraversion
Screening by personality traits
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6-1 Define leadership and explain the difference between being a manager and being a leader.
The Trait Approach
Trait approach: A theory of leadership that believes that leaders are born with the talent and abilities for leadership.
Contrasts with most other leadership theories, which propose that leadership can be learned
Suggests the best way to ensure effective leadership is to select the right people in the first place rather than train them
Were largely dismissed by OB researchers when they didn’t find reliable differences between leaders and followers
Caused a shift towards behavioral approaches
Interest in trait approach experienced a resurgence when a review found that the following traits do matter for leadership:
Drive
Leadership motivation
Honesty
Integrity
Self-confidence and emotional stability
Cognitive ability
Knowledge of the business
Recent research suggests extraversion has an effect on leadership emergence and effectiveness.
Personality traits can be used to screen individuals for hiring and professional development.
6
What is Leadership? (5 of 7)
Limitations of the Trait Approach
Partial explanation of leadership
The behavioral approach assumption
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6-1 Define leadership and explain the difference between being a manager and being a leader.
Limitations of the Trait Approach
A partial explanation of leadership
Behavioral approach assumes that leaders are made and not born.
This means anyone can learn the behaviors of an effective leader.
7
What is Leadership? (6 of 7)
Leader Behaviors
Over 1,000 behaviors identified in a study
Consideration is related to:
Follower satisfaction
Motivation
Leader effectiveness
Initiating structure is related to:
Leader job performance
Group performance
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6-1 Define leadership and explain the difference between being a manager and being a leader.
Leader Behaviors
A study asked followers to describe what their leaders did and created a list of over 1,000 leader behaviors. Statistical analyses were able to reduce this down to two categories:
Initiating structure: Defining tasks for employees and focusing on goals.
Consideration: The degree to which the leader shows trust, respect, and sensitivity to employees’ feelings.
Consideration is strongly related to:
Follower satisfaction (with both the leader and the job)
Motivation
Leader effectiveness
Initiating structure has a somewhat stronger relation to:
Leader job performance
Group performance
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What is Leadership? (7 of 7)
Leader Behaviors
Six behaviors
Task-oriented behaviors
Relation-oriented behaviors
Which leader behavior is most effective?
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6-1 Define leadership and explain the difference between being a manager and being a leader.
Leader Behaviors
Recently expanded to include six behaviors.
Three task-oriented behaviors:
Enhancing understanding
Strengthening motivation
Facilitating implementation
Three relation-oriented behaviors:
Fostering coordination
Promoting cooperation
Activating resources
Which leader behavior is most effective?
Behavioral flexibility
Engaging in the right behavior at the right time
Contingency/situational approaches: Leaders must change their behaviors based on how able and willing followers are.
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Path–Goal Theory (1 of 9)
Path–goal theory (PGT) definition
A situational theory of leadership
Leaders increase quality and number of payoffs
Leaders clear the path to goals
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6-2 Demonstrate the role of leaders in the motivation process using path–goal theory (PGT).
Path-goal theory (PGT): The role of leaders is to motivate followers to accomplish goals by establishing the paths to those goals.
A situational theory of leadership.
Leaders increase the quality and number of payoffs from reaching goals.
Leaders make the path to the goals clear by removing obstacles.
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Path–Goal Theory (2 of 9)
Motivational Leadership Behaviors
Four leadership behaviors motivate employees
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6-2 Demonstrate the role of leaders in the motivation process using path–goal theory (PGT).
Motivational Leadership Behaviors
Path-goal theory specifies four leadership behaviors that motivate employees:
Directive leadership: Giving followers specific instructions about their tasks, providing deadlines, setting standards for performance, and explaining rules.
Supportive leadership: Showing consideration, being friendly and approachable, and paying attention to the well-being of followers.
Participative leadership: Allowing followers to have a voice in decisions that affect them, sharing information, inviting followers’ ideas and opinions.
Achievement-oriented leadership: Challenging followers to perform at high levels, setting standards for excellence, showing confidence in followers’ ability to reach goals.
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Path–Goal Theory (3 of 9)
Adapting to the Situation
Leader learns of obstacles and helps by removing them
Another consideration: follower ability
Criticisms
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6-2 Demonstrate the role of leaders in the motivation process using path–goal theory (PGT).
Adapting to the Situation
The leader learns of obstacles the follower faces and helps by removing them.
For example, if an employee is waiting on a report from another department, the leader can help by calling the department and requesting that the report be expedited.
Another consideration: follower ability.
Leader must adjust expectations to match a person’s ability to complete a task.
Leaders may need to clarify the task.
Criticisms: Model assumes that leaders treat all followers the same, while research finds this is not true.
Leaders develop unique relationships with each of their followers.
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Path–Goal Theory (4 of 9)
Leader–Member Exchange
Definition
Leaders rapidly decide on group members
Fairness must pervade the entire process
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6-3 Illustrate the leader–member exchange (LMX) model with an example.
Leader-Member Exchange
Leader–member exchange (LMX): The quality of the working relationship developed with each follower, characterized by more delegation of authority to those with high-quality LMX.
In-group members: Members who take on extra work and go above and beyond their job specifications.
Out-group members: Members who perform just to the specifications in their job descriptions.
Poor performers are best classified as a third category, one who is not meeting their job expectations adequately.
Leaders rapidly decide on in-group and out-group members.
Fairness must pervade the entire process to avoid negative effects on the entire work team’s performance.
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Path–Goal Theory (5 of 9)
Inclusive Leadership
Definition
Leveraging team member uniqueness increases performance
Facilitating belongingness
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6-3 Illustrate the leader–member exchange (LMX) model with an example.
Inclusive Leadership
Inclusive leadership: Leaders should help all team members feel part of the group (belongingness) while retaining their sense of individuality (uniqueness) so they contribute to the team atmosphere.
Benefits diverse teams through attention to the uniqueness of women and minorities, while valuing the attributes, perspectives, and contributions of each member.
Leveraging team member uniqueness increases performance.
Facilitating belongingness includes:
Valuing each member
Ensuring fairness
Sharing decisions with followers
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Path–Goal Theory (6 of 9)
Leader–Member Exchange Development
Three-step process
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6-3 Illustrate the leader–member exchange (LMX) model with an example.
Leader–Member Exchange Development
Three-step process:
Role-taking: boss tests the commitment of the follower by offering extra work.
Role-making: mutual expectations of the working relationship are established, and the follower’s role is made clearer.
Role routinization: roles become stable as the leader and follower both know what to expect.
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Path–Goal Theory (7 of 9)
Followership
Definition
Interest has increased over past 20 years
Followers are partners with leadership
Benefits of coproduction
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6-3 Illustrate the leader–member exchange (LMX) model with an example.
Followership
Followership: The behaviors a person engages in while interacting with leaders to meet organizational objectives.
May have evolved as a way to address coordination problems in social groups, such as the complexities of hunting and gathering.
Some did not have the physical or psychological strength to be leaders and thus tended to become followers.
Interest in followership has increased over the past 20 years.
Followers are viewed as partners with leadership, which is consistent with the LMX model.
Role of the follower is a “coproduction orientation,” meaning followers should actively engage with leaders to work toward shared goals.
Benefits of coproduction:
More follower support.
More motivation.
More contributions from followers (followers have a voice in decisions.)
Contrasts with “passive orientation,” or the belief that followers should defer to and follow directions from the leader.
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Path–Goal Theory (8 of 9)
Attributions and Leader–Member Relationships
Attribution definition
Attribution theory
Attributions and significance in organizations
Leaders can reach more accurate conclusions
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6-3 Illustrate the leader–member exchange (LMX) model with an example.
Attributions and Leader–Member Relationships
Attribution: A person’s attempt to assign a cause to a behavior or event they observe.
Attribution theory: Proposes that the attributions people make about events and behavior can be either internal or external.
Internal attribution: When people infer that an event or a person’s behavior is due to character traits or abilities.
External attribution: When people believe that a person’s behavior is caused by situational factors.
In organizations, attributions are particularly significant when events are:
Important
Novel
Unexpected
Negative
Leaders can reach more accurate conclusions by considering the following factors:
Consensus information: Information about how other people would behave if they were in the same situation. High consensus means many others would behave the same way, while low consensus suggests most others would behave differently.
Distinctiveness information: Information about the extent to which the individual behaves the same way in different situations. Low distinctiveness suggests an individual behaves the same way in different situations, while high distinctiveness means the individual has a particular reaction to a particular situation.
Consistency information: Information about how the individual behaves toward a certain stimulus across time and circumstances. High consistency suggests the same behaviors occur almost every time a particular situation occurs.
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Path–Goal Theory (9 of 9)
The Mentor Connection
Mentoring definition
A mentor relationship with a boss
Types of support from mentors
Mentoring relationships can become transformative
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6-3 Illustrate the leader–member exchange (LMX) model with an example.
The Mentor Connection
Mentoring: An intense developmental relationship whereby advice, counseling, and developmental opportunities are provided to a protégé by a mentor, which, in turn, shapes the protégé’s career experiences.
A mentor relationship with a boss often results in:
Higher performance
Promotions
Salary increases
In some cases, a promoted boss may bring a mentee or other trusted in-group member with them.
Mentors provide two main types of support to protégés:
Career support
Social support
Mentors may also serve as role models
Mentoring relationships can become transformative and are characterized by a willingness to be vulnerable and trust one another.
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The Importance of Trust (1 of 6)
Trust is the willingness to be vulnerable
Related to risk-taking and job performance
Fundamental to development of effective working relationships
A three-part view of trust
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6-4 Explain why trust is important and how to repair it.
Trust is the willingness to be vulnerable.
Related to important outcomes like risk-taking and job performance
Fundamental to the development of effective working relationships with bosses and others
A three-part view of trust involves calculus-based, knowledge-based, and identification-based trust.
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The Importance of Trust (2 of 6)
Calculus-Based Trust
Definition
Knowledge-Based Trust
Definition
Based on information in variety of circumstances
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6-4 Explain why trust is important and how to repair it.
Calculus-Based Trust
Calculus-based trust (CBT): A form of trust based upon keeping records of what another person does for you and what you do for them.
An “arm’s length” form of trust which minimizes vulnerability for each party
For example, a leader telling a follower to perform a task because they are paid to do the items in their job description, which may imply a firing if they fail to perform the task.
Knowledge-Based Trust
Knowledge-based trust (KBT): Trust grounded in how predictable the other person is.
Based upon information gathered about the other person in a variety of circumstances.
For example, becoming the boss’s “go-to” person for a certain task.
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The Importance of Trust (3 of 6)
Identification-Based Trust
Definition
No need for record-keeping
Efficient for the leader
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6-4 Explain why trust is important and how to repair it.
Identification-Based Trust
Identification-based trust (IBT): the highest degree of trust, characterized by the leader and follower sharing the same goals and objectives.
No need for record-keeping; the predictability of the follower’s behavior is assumed.
Highly efficient for the leader: followers take care of details while the leader focuses on the strategic vision or negotiating group resources.
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The Importance of Trust (4 of 6)
Identification-Based Trust
Development of trust is “tactical climbing”
Can revert to earlier stages
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6-4 Explain why trust is important and how to repair it.
Identification-Based Trust
Development of trust is “tactical climbing:”
Increasing levels of risk and vulnerability over time.
Cues perceived early in employment predict the emergence of trust.
Even the first hours are crucial.
Trust can revert to earlier stages, so it’s important to maintain relationships.
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The Importance of Trust (5 of 6)
Repairing Broken Trust
Three questions to ask
If a trustee is innocent
If a trustee is guilty
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6-4 Explain why trust is important and how to repair it.
Repairing Broken Trust
Three questions to ask after a trustee has violated a trustor’s trust:
Is the trustee innocent or guilty?
If guilty, should this be attributed to the situation or person?
If attributed to the person, is the shortcoming fixable or an enduring characteristic?
If a trustee is innocent, they should:
Emphasize lack of guilt
Deny the transgression
Offer any available exonerating information
Remaining reticent is risky; people tend to assume the worst
If a trustee is guilty, an apology may be effective. Apologies should:
Be remorseful and repentant
Mention any extenuating factors that played a role
Be seen as adequate to be effective
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The Importance of Trust (6 of 6)
Repairing Broken Trust
Excuses may be effective
Honest mistakes
If a lack of integrity is demonstrated
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6-4 Explain why trust is important and how to repair it.
Repairing Broken Trust
Excuses may also be effective depending on the person and the relationship.
Reparations (“making it right”) increases the effectiveness of explanations.
Success depends on other contingencies described below.
If the transgression stems from an honest mistake or ignorance, people are more likely to give the benefit of the doubt and trust again.
If the act is seen as demonstrating a lack of integrity, trust is difficult or impossible to repair.
Lying is one of the most damaging behaviors to a relationship.
Even more “substantive” responses like reparation or fines are limited in effectiveness when integrity is questioned.
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Full-Range Leadership Development (1 of 2)
People more engaged when leaders behave in certain ways
Transactional Leadership
Definition
Three behaviors
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6-5 Compare and contrast the elements of transactional and transformational leadership.
People are more engaged when their leaders behave in certain ways at the highest end of the full-range model.
Transactional Leadership
Transactional leadership: Behaviors that motivate followers through rewards and corrective actions.
The foundation of transformational leadership.
Three behaviors, from least effective to most effective:
Nonleadership/laissez-faire leadership: The “near-avoidance of leadership,” the least active and least effective of all the leadership styles in the full-range model.
Management by exception: This has two forms: active and passive. In management by exception—active (MBE-A), the leader looks for the follower to make errors and then corrects them. In management by exception—passive (MBE-P), the leader does not actively look for errors or deviations from work standards, but when noticed, they take corrective action.
Contingent reward. This is promising or delivering rewards to followers contingent on their performance.
Avolio, B. J. (2011). Full range leadership development (2nd ed.). Sage.
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Full-Range Leadership Development (2 of 2)
Transformational Leadership
Definition
Four behaviors (the Four I’s)
Transformational leaders increase intrinsic motivation
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6-5 Compare and contrast the elements of transactional and transformational leadership.
Transformational Leadership
Transformational leadership: Behaviors that mobilize extra effort from followers through emphasis on change through articulating a new vision for the organization.
Most related to positive attitudes, commitment, and follower performance.
Four behaviors, known as the Four I’s:
Idealized influence: Being admired and respected by followers is the core of this leadership component. These leaders are seen as change agents in the organization.
Inspirational motivation: Leaders inspire others to work hard toward organizational goals by providing challenge. They are positive and upbeat and get others to feel optimistic.
Intellectual stimulation: Transformational leaders encourage innovation and new ideas. They listen to followers openly and don’t criticize novel solutions to problems.
Individualized consideration. Transformational leaders treat each follower as a unique person. They get to know people one-on-one and mentor them.
Transformational leaders increase intrinsic motivation by aligning followers’ tasks with their own interests and what they value most.
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Moral Approaches (1 of 4)
Ethical Leadership
Definition
Four components
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6-6 Illustrate the role of morality in ethical, servant, and authentic leadership.
Ethical Leadership
Ethical leadership: A leadership style focused on ethical decision-making.
Leaders today must be authentic and serve followers, not just their own goals.
Ethical leadership has four components:
Moral sensitivity: recognizing our behavior impacts others.
Moral judgment: determining the right decision.
Moral motivation: the need to do the right thing.
Moral action: doing the right thing.
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Moral Approaches (2 of 4)
Ethical Leadership
Positive and negative relationships
Ethical leaders lead to positive employee behaviors
Ethical leaders cause cascading effect
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6-6 Illustrate the role of morality in ethical, servant, and authentic leadership.
Ethical Leadership
Ethical leadership is positively related to work group-level ethical behavior and negatively related to relationship conflict among coworkers.
If employees indicated that their leaders are ethical and fair role models who communicate and reward ethical behavior, there exists more positive behaviors:
Less deviance
More cooperative behavior
Better performance
Higher effort
More reporting of problems to management
Ethical leaders have a cascading effect down to lower-level employees and management.
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Moral Approaches (3 of 4)
Servant and Authentic Leadership
Definition of servant leadership
Seven dimensions
Developmental support is characteristic of servant and humble leadership
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6-6 Illustrate the role of morality in ethical, servant, and authentic leadership.
Servant and Authentic Leadership
Servant leadership: Basically, the idea that followers are first rather than leaders.
Seven dimensions of servant leadership:
Emotional healing
Creating value for the community
Conceptual skills
Empowering
Helping subordinates grow and succeed
Putting subordinates first
Behaving ethically
Developmental support is characteristic of both servant leadership and humble leadership.
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Moral Approaches (4 of 4)
Servant and Authentic Leadership
Humble leadership definition
Authentic leadership definition
Four dimensions of authentic leadership
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6-6 Illustrate the role of morality in ethical, servant, and authentic leadership.
Servant and Authentic Leadership
Humble leadership: where a leader’s humility allows them to show followers how to grow as a result of work.
Leads followers to believe their own developmental journeys are legitimate.
Humility increases cooperation, but may reduce follower perceptions of skill, influence, and autonomy.
Authentic leadership: involves knowing oneself and behaving in a way that is consistent with what is intuitively right.
Authentic leaders are most effective when they develop an effective vision that relates to the shared interests of their team.
Authentic leadership has four dimensions:
Self-awareness: seeks feedback to improve interaction with others.
Relational transparency: says exactly what they mean.
Internalized moral perspective: demonstrates beliefs consistent with actions.
Balanced processing: solicits views that challenge deeply held positions.
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Chapter 14: Organizational Culture
1
The Team Culture at Warby Parker (1 of 2)
Startup quickly became powerhouse
Team culture considered essential to success
Donation for each purchase
Results in teams with passion
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Warby Parker began as a startup and quickly became a global retail powerhouse.
Cofounders Neil Blumenthal and David Gilboa view their team culture as essential to their success.
Part of their mission is to donate a pair of glasses to someone in need for every pair purchased.
Warby rewards employees who have been at the company for 3 years with a mission-driven perk: an international trip to experience the company’s “Buy a Pair, Give a Pair” program in action.
Results in teams with a passion for the mission.
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The Team Culture at Warby Parker (2 of 2)
Training focuses on interpersonal relationships
Strong team culture means happier employees
Better retention
More efficient teams
Higher revenue
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Training at Warby Parker focuses on fostering strong interpersonal relationships.
Encourages direct, open, honest conversation.
Offers continual learning opportunities.
Strong team culture leads to happier employees, which means:
Better retention (lower recruiting costs).
More efficient teams.
Higher revenue.
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What Is Organizational Culture? (1 of 2)
Organizational culture
Dimensions of organizational culture norms
Cultural variability in visibility and concreteness
Artifacts and creations
Values
Assumptions
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14-1 Define organizational culture, and describe the seven characteristics.
Organizational culture: The pattern of basic assumptions, that a given group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration, and that have worked well enough to be considered valid, and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems.
More succinctly, a set of shared meanings that people in organizations have with respect to how to adapt to the environments and cope with change.
Organizational culture norms have three dimensions:
Content, or what is deemed important.
Consensus, or how widely shared norms are held across people in the organization.
Intensity of feelings about the importance of the norm.
Cultural variability in visibility and concreteness:
Artifacts and creations: Observable and abstract reflections of organizational culture, such as dress, office decoration, and the architecture of buildings.
Values: The reasons people give for their behavior.
Espoused values: Stated values.
Enacted value: Values which are acted out, perhaps unconsciously.
Assumptions: Specific and hidden understandings that underlie values and are often unconscious to people in organizations because they do not question them.
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What Is Organizational Culture? (2 of 2)
How to understand an organization’s culture
Seven Characteristics of Culture
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14-1 Define organizational culture, and describe the seven characteristics.
To understand an organization’s culture, a person must go beyond what they can see and hear (artifacts and creations) and gain a deeper awareness of values first and then assumptions.
Seven Characteristics of Culture
Cultural values of four industries in the service sector differed according to the industry and were related to levels of industry, technology, and growth:
Innovation and risk-taking.
Attention to detail.
Outcome orientation.
People orientation.
Team orientation.
Aggressiveness (easygoingness reversed).
Stability.
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Markets, Bureaucracies, and Clans (1 of 4)
Another approach examines control mechanisms
Goal incongruence
Performance ambiguity
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14-2 Compare and contrast market, bureaucracy, and clan cultures.
Another approach to describing organizational cultures is to examine the mechanisms used for control when organizations are faced with goal incongruence and performance ambiguity.
Goal incongruence exists when organizational members do not agree on what the goals of the organization are or should be.
Performance ambiguity occurs when revenue streams are unpredictable or uneven.
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Markets, Bureaucracies, and Clans (2 of 4)
How organizations address control
Market control
Bureaucratic control
Clan control
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14-2 Compare and contrast market, bureaucracy, and clan cultures.
Three ways organizations address control according to a classic theory at the organizational level of analysis:
Market control: Exists when prices determine how social interactions between people are formed.
Bureaucratic control: When legitimate authority governs social interactions.
Clan control: When shared values and beliefs govern how people interact socially.
7
Markets, Bureaucracies, and Clans (3 of 4)
How organizations address control
Implications of emergent cultures
Employee organizational commitment
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14-2 Compare and contrast market, bureaucracy, and clan cultures.
Three ways organizations address control according to a classic theory at the organizational level of analysis:
Differences in the emergent cultures have implications for how organizations are designed and employee performance.
Markets require only knowledge of prices and supply and demand.
Bureaucracies require the creation of rules and regulations (the employee handbook for a new employee, for example). Bureaucratic control also requires close surveillance and direction of employees by supervisors.
Clans are more efficient in the sense that there is less need for information on pricing or rules, and norms and traditions that emerge over time are shared with a new employee.
Employee organizational commitment is highest in the clan culture since they have internalized the organization’s cultural value system.
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Markets, Bureaucracies, and Clans (4 of 4)
National Culture and Organizational Culture
Possible source of confusion
Important organizational culture values
Significant statistical associations
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14-2 Compare and contrast market, bureaucracy, and clan cultures.
National Culture and Organizational Culture
Since the term culture is used for both national and organizational cultures, this may be a source of confusion.
Four important organizational culture values:
Adaptability: The ability to transfer the demands of the market into organizational actions.
Involvement: Building human capability, ownership, and responsibility.
Mission: Defining the meaningful long-term direction for the organization.
Consistency: Defining values and subsystems that are the basis of a strong culture.
Significant statistical associations:
Profitability: mission and consistency.
Sales growth: adaptability and mission.
Innovation: adaptability and involvement.
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Strong Organizational Cultures
(1 of 3)
Characteristics of strong cultures
High agreement among employees about values
High intensity toward values
Strong cultures critical for bottom-line performance
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14-3 Demonstrate understanding of the two characteristics of strong cultures by providing examples.
Strong cultures are based on two characteristics:
High levels of agreement among employees about what they value.
High intensity towards these values.
Strong cultures are critical to bottom-line performance.
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Strong Organizational Cultures
(2 of 3)
Zappos: A Strong Organizational Culture
Zappos’s drivers in building strong culture
Core values
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14-3 Demonstrate understanding of the two characteristics of strong cultures by providing examples.
Zappos: A Strong Organizational Culture
Zappos acknowledges five specific drivers in building a culture that results in a great place to work, exceptional customer service, and impressive organizational performance.
Committed leaders.
Core values.
Customer-focused strategies.
Human resource practices.
Management practices that align with core values.
10 core values:
Deliver wow through service.
Embrace and drive change.
Create fun and a little weirdness.
Be adventurous, creative, and open-minded.
Pursue growth and learning.
Build open and honest relationships with communication.
Build a positive team and family spirit.
Do more with less.
Be passionate and determined.
Be humble.
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Strong Organizational Cultures
(3 of 3)
Organizational Subcultures
Most organizations have three general subcultures
Operators
Engineers
Executives
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14-3 Demonstrate understanding of the two characteristics of strong cultures by providing examples.
Organizational Subcultures
Three general organizational subcultures exist in most organizations.
Operators: The line managers and employees who are involved in making products, delivering services, and interacting with customers directly.
Value teamwork.
Desire engagement in their work.
Engineers: A group focused on designing systems to support the work of operations, such as employees who design a manufacturing facility.
May also include employees who design and implement information technology systems, financial analysis systems, and marketing research.
Executives: Employees who have worked their way up organizational career ladders, and they are financially responsible to their board of directors and shareholders.
Make tough financial decisions.
Maintain large numbers of people and divisions.
Rely on policies and reward systems to maintain control.
May lose touch with customers and low-level employees.
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Socialization (1 of 4)
Organizational Socialization
Series of reality “shocks”
Process
Anticipatory Socialization
Organizational anticipatory socialization
Basic processes
Seeking good person-organization fit
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14-4 Explain how employees learn organizational culture through the socialization process.
Organizational socialization: The process an organization utilizes to ensure that new members acquire necessary attitudes, behaviors, knowledge, and skills to become productive organizational members.
First 6 months on the job are characterized as a series of reality “shocks” as they are exposed to the unwritten rules defining the organizational culture in the organization.
Process of anticipatory socialization, entry and assimilation, and metamorphosis.
Anticipatory Socialization
Organizational anticipatory socialization: The process an individual goes through as they attempt to find an organization to join.
Two basic processes:
Recruiting.
Selection.
Both applicant and organization seek good person-organization fit.
Applicants often adapt their responses on personality inventories strategically to appear as a match to the organizational culture.
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Socialization (2 of 4)
Entry and Assimilation
Preentry
Issues in preentry
Entry
Onboarding
“Unwritten rules” for new employee behavior
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14-4 Explain how employees learn organizational culture through the socialization process.
Entry and Assimilation
Preentry: A step occurring from the time someone is offered the job to when they actually start working.
Three issues in preentry:
Types of messages a new employee receives from the organization prior to starting work could include realistic job previews in which the members of the organization attempt to clarify what the job will be like. These may positively or negatively differ from expectations.
New employees are typically concerned about how they are seen by existing organizational members and engage in impression management to influence the perceptions of new coworkers.
Current organizational members form perceptions of the new hire and consider how well they will fit in.
Entry: A phase initiated when the new member starts work.
Beginning of assimilation.
Employees begin to understand the organization’s culture and work expectations.
Formal or informal orientation.
Being proactive leads to positive assimilation outcomes.
Onboarding: The process of welcoming and orienting new organizational members to facilitate their adjustment to the organization, its culture, and its practices and help them adjust to their new work environment.
Psychological contract: The employees’ beliefs about the mutual obligations between them and their employers.
Psychological contract influences the degree to which they view onboarding processes as valuable.
The informal expectations about how new employees should behave within the organization are “unwritten rules” that govern how new employees should act.
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Socialization (3 of 4)
Metamorphosis
Definition
New employee is comfortable
Successful metamorphosis and positive effects
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14-4 Explain how employees learn organizational culture through the socialization process.
Metamorphosis
Metamorphosis: The final stage of organizational entry and assimilation, in which a person transforms from a new employee to an established contributor who is valued and trusted by other members of the organization.
New employee is comfortable with the organization, their boss, and their work group.
They have internalized the organizational culture and understand their job as well as the rules, procedures, and norms.
Expectations are clear regarding what good performance means in the organization.
Successful metamorphosis positively affects job performance, job satisfaction, and commitment to the organization.
Decreases turnover.
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Socialization (4 of 4)
Attraction–Selection–Attrition (ASA)
Which organizations attract which applicants
Culture is becoming important hiring criterion
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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14-4 Explain how employees learn organizational culture through the socialization process.
Attraction–Selection–Attrition (ASA)
Approach which suggests that applicants are attracted to organizations that match their personalities.
Some potential employees will not apply if they feel like a bad fit.
Employees that choose to join an organization are more likely to share organizational values than those that do not (attraction-selection).
Culture fit is becoming an important criterion for hiring because if the person does not fit the culture, they will likely leave.
Especially important in high-turnover jobs.
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How Employees Learn Culture
(1 of 3)
Stories
Storytelling
Organizational purposes of stories
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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14-5 Discuss four ways that employees learn organizational culture.
Stories
Storytelling is the sharing of knowledge and experiences through narrative and anecdotes to communicate lessons, complex ideas, concepts, and causal connections.
Stories serve these organizational purposes:
Convey shared meanings and values in the organizational culture.
Aid comprehension and suggest causal order for events.
Guide behavior
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How Employees Learn Culture
(2 of 3)
Rituals
Definition
Symbols
Definition
Material symbols
Dress symbols
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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14-5 Discuss four ways that employees learn organizational culture.
Rituals
Rituals are defined as “a form of social action in which a group’s values and identity are publicly demonstrated or enacted in a stylized manner, within the context of a specific occasion or event.”
Reinforce the cultural values of the organization by providing a tangible way for employees to see the values espoused.
Symbols
Symbols represent the sharing of knowledge through access and exposure to images, diagrams, or objects that represent or illustrate a cultural value or an idea.
Material symbols: office size, location, and view.
Dress symbols: expectations of what particular employees should wear.
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How Employees Learn Culture
(3 of 3)
Language
May be confusing to new employee
Language referring to employees reflects values
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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14-5 Discuss four ways that employees learn organizational culture.
Language
Employees may communicate using culture-specific language, jargon, or acronyms that can be confusing to a new employee.
Represent the organizational culture and how it is transmitted to newcomers.
The language used to refer to employees reflects underlying values.
For example, some organizations have stopped using the term employees in favor of team member.
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Organizational Climate (1 of 4)
Organizational climate
Definition
Clarification
Distinguishing culture and climate
Climate can be altered
Culture is an evolved context
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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14-6 Compare and contrast organizational culture and climate.
Organizational climate: Shared perceptions of the way things are around here.
Level of agreement in perceptions about the organization and work environment among employees.
Key distinction between culture and climate is that culture is viewed as evolving over time and is studied from a sociology or anthropology viewpoint.
Climate, however, can be altered via management interventions.
Culture is an evolved context, and climate is a situation that employees are in.
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Organizational Climate (2 of 4)
Climcult
Elements
The climcult perspective and gaining more complete views
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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14-6 Compare and contrast organizational culture and climate.
Climcult: Perspective which suggests that culture and climate work together to influence how people experience their work environment.
Elements of climcult:
Global climate or culture for well-being.
Strategy focused on policies, practices, procedures, and behaviors expected and rewarded.
Processes focused on policies, practices, procedures, and behaviors that are expected and rewarded.
Socialization practices through which values and beliefs for strategy and processes are transmitted.
Myths and stories used for transmitting those same beliefs and values.
The climcult perspective suggests combining survey measures of climate and culture to gain a more complete view of how people describe their organization’s values and their work experiences.
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Organizational Climate (3 of 4)
How Climate Influence Organizational Practice
Significant impacts on dependent variables
Studied facets of climate
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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14-6 Compare and contrast organizational culture and climate.
How Climate Influences Organizational Performance
Climate significantly impacts on the dependent variables studied in organizational behavior.
Some studied facets of climate:
Service.
Justice.
Safety.
Diversity.
Innovation.
Toxic climates with abusive supervision.
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Organizational Climate (4 of 4)
Ethical Climate
Leader influence
Aspects of ethical climates
Distinct types of ethical climates and shaping them
Significant role in employee well-being
Scandura, Essentials of Organizational Behavior, 3e. © SAGE Publications, 2020.
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14-6 Compare and contrast organizational culture and climate.
Ethical Climate
Leaders influence an organization’s ethical climate and employee attitudes.
Leader moral development influences ethical climate, employee job satisfaction, and turnover intentions.
Effect is stronger in younger organizations.
Five aspects of ethical climates:
Caring.
Law and code.
Rules.
Instrumental.
Independence.
Studies suggest organizations have distinct types of ethical climates, and the ethical climate is shaped by norms, bureaucracy, and the history of the organization.
Ethical organizational culture plays a significant role in enhancing employee well-being measured as sickness absence.
Also associated with lower turnover intentions and higher job performance.
Thus, leaders should develop the moral climate of the organization in addition to behaving ethically.
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