Impact of Culture, Attitudes, and Motivation on Employees in Organizational Behavior, Study notes of Organization Behaviour

Download Impact of Culture, Attitudes, and Motivation on Employees in Organizational Behavior and more Study notes Organization Behaviour in PDF only on Docsity! www.mhhe.com/kinickiob3e Organizational Behavior MGMT 3324 Midterm Study Guide Ch.1: Needed: People-Centered Managers and Workplaces Pfeffer’s 7 people-cetered practices: when implemented properly bring: high job satisfaction, low turnover, high quality and performance.  Job security  Careful hiring  Empowerment  Generous pay for performance  Training  Less emphasis on status  Trust building Strategic context for managing people: 4 P cycle of continuous improvement. The 4 P’s include: 1) people - skill development, motivation, teamwork, and decreased stress 2) products - continuous improvement focuses on greater customer satisfaction and better quality goods and services 3) processes - faster product development and production cycle times, system flexibility, and organizational learning 4) productivity - reduced waste, reduced rework and the most efficient use of all resources Strategic Results: The 4-P Cycle of Continuous Improvement: 1. Managers Get Results with and Through Others Management: the process of working with and through others to achieve organizational objectives efficiently and ethically Today, managers need to be much more sensitive to the needs of individuals, be aware of larger and more challenging goals, and to motivate individuals to attain those organizational goals in an ethical and sensitive approach. a. A Skills Profile for Managers The manager performs many different tasks and juggles a variety of different problems and issues throughout the day. Interruptions are common and finding large blocks of time for planning are rare. 3 lessons for managers: - Dealing with people is a fundamental principle of management. - managers with high skills in this and other related areas have better performance and higher employee morale. - there does not appear to be any significant gender difference between the skill profiles of effective management. Social Capital: the productive potential of strong, trusting, and cooperative relationships - shared values, mutual respect, teamwork, and a win win negotiation framework b. The Emerging Area of Positive Organizational Behavior (POB) The Strategic and Importance Dimensions of Human and Social Capital: The Positive Psychology Movement: This perspective recommends focusing on human strengths and potential as a way to prevent mental and behavioral problems and to improve the overall quality of life Positive Organizational Behavior (POB): the study and improvement of employees’ positive attributes and capabilities Luthan’s CHOSE Model of Key POB Dimensions: -Confidence -Hope -Optimism -Subjective well-being -Emotional intelligence c. The Internet and E-Business Revolution e-business: running the ENTIRE business via the internet - dramatically lowers the cost of communication Ch. 2: Organizational Culture, Socialization, and Mentoring 1. Organizational Culture: Definition and Context Organizational Culture: shared values and beliefs that underlie a company’s identity These assumptions determine how the group perceives, considers and reacts to its various environments. Organizational Culture: -is passed on to new employees through the process of socialization -influences our behavior at work -operates at different levels Framework for Understanding Organizational Culture (how culture evolves, is sustained, and is passed down): c. Types of Organizational Culture i. Constructive culture: employees are encouraged to interact with others, work on tasks and projects collectively, and to do so in ways that will assist them in their development and satisfaction -associated with the normative beliefs: sense of achievement, self-actualization, humanism, and affiliation ii. passive-defensive culture: characterized by the overriding belief that employees must interact with others in ways that do not threaten their own job security -associated with the normative beliefs: approval, conventional behavior, and avoidance of conflict iii. aggressive-defensive culture: encourages employees to approach tasks in forceful ways in order to protect their status and job security - associated with the normative beliefs: oppositional power, competition and perfectionism Research has not uncovered a universal typology of cultural styles that everyone accepts. There are 3 general types of organizational culture-constructive: passive- defensive, and aggressive-defensive; and each type is associated with a different set of normative beliefs. Normative beliefs: thoughts and beliefs about expected behavior and modes of conduct d. Outcomes Associated with Organizational Culture The outcomes of the different types of organizational culture indicate that the culture is: - significantly correlated with employee behavior and attitudes - congruence between and individuals values and the organization's values - culture does not predict financial performance - mergers and acquisitions fail due to incompatible organizational cultures e. How Cultures are Embedded in Organizations: Members teach each other about the organization’s values, i. Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection, and socialization ii. The design of physical space, work environments, and buildings iii. Slogans, language, acronyms, and savings iv. Deliberate role modeling, training programs, teaching, and coaching by managers and supervisors v. Explicit rewards, status symbols (ex: titles), and promotion criteria vi. Stories, legends, and myths about key people and events vii. Organizational activities, processes, or outcomes that leaders pay attention to, measure, and control viii. Leader reactions to critical incidents and organizational cries ix. The workflow and organizational structure x. Organizational systems and procedures xi. Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people 3. The Organizational Socialization Process Organizational Socialization: the process by which employees learn an organization’s values, norms, and required behaviors a. Feldman’s Three-Phase Model of Organizational Socialization i. Phase 1: Anticipatory Socialization -occurs before an individual joins an organization, and involves the information people learn about different careers, occupations, professions, and organizations ii. Phase 2: Encounter Phase -employees learn what the organization is really like and reconcile unmet expectations onboarding: programs aimed at helping employees integrate, assimilate, and transition to new jobs iii. Phase 3: Change and Acquisition -requires employees to master tasks and roles and to adjust to work group values and norms b. Practical Application of Socialization Research Past research suggests 4 practical guidelines for managing organizational socialization: i. Managers should avoid a haphazard approach to socialization and ensure that the process is clear and consistent ii. Managers should play a key role during the encounter phase iii. New employees should be trained use proactive socialization behaviors iv. Managers should pay attention to the socialization of diverse employees 4. Embedding Organizational Culture through Mentoring Mentoring: the process of forming and maintaining developmental relationships between a mentor and a junior person - widely used in organizations to help socialize new employees as they adjust to new roles, processes, and positions a. Functions of Mentoring Career functions (enhance career development): -sponsorship -exposure-and-visibility -coaching -protection -challenging assignments Psychosocial functions (clarify participants’ identities and enhance feelings of competence): -role modeling -acceptance-and-confirmation -counseling -friendship Ch. 3: Developing Global Managers 6. Developing a Global Mindset We live and work in a global economy. Our work organizations are more global, our workforce are more diverse, and the study of organizations in a global context has become more complex. Organizations typically reflect the society in which they are located. Therefore, we have models of societal and organizational culture. a. A Model of Societal and Organizational Cultures Societal culture: socially derived, taken-for-granted assumptions about how to think and act Cultural Influences on Organizational Behavior: Organizations are more global today than ever before. We have more diversity in the workplace, and we are aware that there are many different cultural influences that impact our organizations. This figure provides a graphical representation of the variables that influence societal culture, these cultural impacts on the organization, and the resulting influences on organizational behavior. Taken together, societal and organizational culture have an important impact on the study of organizational behavior. Employees bring their societal culture to work with them. The organization’s culture affects the individuals within it by framing their values, ethics, attitudes, assumptions, and expectations. b. Ethnocentrism: Removing a Cultural Roadblock in the Global Economy Ethnocentrism: belief that one’s native country, culture, language, and behavior are superior Managers can effectively deal with ethnocentrism by: -education -cross-cultural awareness -international experience -a conscious effort to value cultural diversity c. Becoming a Global Manager d. The Hofstede Study: How Well Do US Management Theories Apply in Other Countries? --not very well Hofstede Studies compared cultural differences that exist from society to society on four cultural dimensions: -Power distance: how much inequality does someone expect in social situations? -Individualism-collectivism: how loosely or closely is the person socially bonded? -Masculinity-femininity: does the person embrace stereotypically competitive, performance-oriented masculine traits or nurturing, relationship-oriented feminine traits? -Uncertainty avoidance: how strongly does the person desire highly structured situations? underlying question: How well do US mgmt theories apply in other countries? Hofstede Conclusions: -1- management theories and practices need to be adapted to local cultures (especially US theories) -2- cultural arrogance is a luxury that individuals, companies, and nations can no longer afford in a global economy 7. Becoming Cross-Culturally Competent Five cultural perspectives – especially relevant to present global managers: -basic cultural dimensions -individualism vs collectivism -high-context and low-context cultures -monochronic and polychronic time orientation -cross-cultural leadership a. Cultural Paradoxes Require Cultural Intelligence To be successful, managers need to become more cross-culturally aware and competent. A way to gauge this competence is through: Cultural intelligence: the ability to interpret ambiguous cross-cultural situations accurately b. Nine Basic Cultural Dimensions from the GLOBE Project GLOBE Project (Global Leadership and Organizational Behavior Effectiveness): an attempt to develop an empirically based theory that describes, understands, and predicts the impact of specific cultural variables on leadership and organizational processes. It then considers how effective leadership and organizational processes are in a cultural context. The 9 Cultural Dimensions: -Power distance: how much unequal distribution of power should there be in organizations and society? -Uncertainty avoidance: How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability? -Institutional collectivism: How much should leaders encourage and reward loyalty to the social unit, as opposed to the pursuit of individual goals? -In-group collectivism: How much pride and loyalty should individuals have for their family or organization? -Gender egalitarianism: how much effort should be put into minimizing gender discrimination and role inequalities? -Assertiveness: How confrontational and dominant should individuals be in social relationships? -Future orientation: How much should people delay gratification by planning and saving for the future? -Performance orientation: How much should individuals be rewarded for improvement and excellence? -Humane orientation: How much should society encourage and reward people for being kind, fair, friendly, and generous 8. Preparing for a Foreign Assignment As our economy continues go global, the chance that you will be given an assignment in a different country and culture has increased significantly a. A Poor Track Record for American Expatriates Expatriate: anyone living or working in a foreign country Major stumbling blocks for American expatriates: -personal and family adjustment problems -homesickness Important success factors in a foreign assignment: -cultural adaptability -patience and flexibility -tolerance for other’s beliefs b. Some Good News: North American Women on Foreign Assignments c. Avoiding OB Trouble Spots in the Foreign Assignment Cycle The Foreign Assignment Cycle (with OB Trouble Spots): OB Trouble Spots in the Foreign Assignment Cycle and how to avoid them: Avoiding Unrealistic Expectations: -Realistic Job Previews (RJPs) -Cross-cultural training: structured experiences to help people adjust to a new culture/country Avoiding Culture Shock ( anxiety and doubt caused by an overload of new expectations and cues): -intensive language study -also comprehensive cross-cultural training Lack of Support during the Foreign Assignment: -Host-country sponsors assigned to individual managers or families serve as “cultural seeing-eye dogs” -Maintain an active dialog with mentors back home Avoiding Reentry Shock: three areas for potential reentry shock: work, social activities, and general environment: -reduced through: -employee career counseling -home-country mentors and sponsors *Overall key to a successful foreign assignment: Making it a well-integrated link in a career chain rather than treating it as an isolated adventure. Ch. 4: Understanding Social Perception and Managing Diversity 1. A Social Information Processing Model of Perception Perception: process of interpreting one’s environment Social Perception: A Social Information Processing Model The 4 Stages of Social Perception: 1: Selective attention/comprehension 2: Encoding and simplification 3: Storage and retention 4: Retrieval and response a. Stage 1: Selective Attention/Comprehension Attention: being consciously aware of something or someone -People pay attention to Salient stimuli: something that stands out from its context b. Stage 2: Encoding and Simplification - of the events, activities, and stimuli generated in Phase 1 Individuals encode and simplify information by using: -cognitive categories: mental depositories for storing information -schema: a person’s mental picture or summary of an event or object Stereotypes are used during encoding: belief about the characteristics of a group -not always negative -may or may not be accurate -can lead to poor decisions -can create barriers -can undermine loyalty and job satisfaction The Stereotyping Process: Kelley hypothesized that people make causal attributions after gathering information about three dimensions of behavior: consensus, distinctiveness, and consistency: -Consensus: involves a comparison of an individual’s behavior with that of his peers; relates to other people -Distinctiveness: involves comparing a person’s behavior on one task with the behavior from other tasks; relates to other people -Consistency: is determined by judging if the individual’s performance on a given task is consistent over time; relates to time b. Attributional Tendencies Two attributional tendencies that distort one’s interpretation of observed behavior: -fundamental attribution bias: ignoring environmental factors that affect behavior -self-serving bias: taking more personal responsibility for success than failure Managerial implications associated with attribution errors or bias: -managers tend to disproportionately attribute behavior to internal causes -attributional biases might lead to inappropriate managerial actions -an employee’s attribution for his own performance have dramatic effects on subsequent motivation, performance, and self-esteem 3. Defining and Managing Diversity Diversity: the host of individual differences that make people different from and similar to each other a. Layers of Diversity -organizational dimensions -external dimensions -internal dimensions -personality b. Affirmative Action and Managing Diversity Affirmative action: voluntary and involuntary efforts to achieve equality of opportunity for everyone Managing diversity: creating organizational changes that enable all people to perform up to their maximum potential c. Increasing Diversity in the Workforce Glass ceiling: invisible barrier blocking women and minorities from top management positions Demographic Trends Increasing Diversity in the Workforce: -women and minorities are encountering a glass ceiling: -racial groups are encountering a glass ceiling and perceived discrimination -there is a mismatch between workers’ educational attainment and occupational requirements, resulting in underemployment -the workforce is aging To help organizations adapt to an aging workforce: -firms should help employees deal with personal issues associated with eldercare -employers need to make a concerted effort to keep older workers engaged and committed and their skills current Underemployment: the result of taking a job that requires less education, training, or skills than possessed by a worker 4. Organizational Practices Used to Effectively Manage Diversity a. Barriers and Challenges to Managing Diversity -inaccurate stereotypes and prejudice -ethnocentrism -poor career planning -an unsupportive and hostile working environment for diverse employees -lack of political savvy on the part of diverse employees -difficulty in balancing career and family issues -fears of reverse discrimination -diversity is not seen as an organizational priority -the need to revamp the organization’s performance appraisal and reward system -resistance to change b. Ann Morrison Identifies Specific Diversity Initiatives These should be considered in order to overcome these barriers and successfully address the challenges associated with managing diversity: -Accountability practices: focus on treating diverse employees fairly -Development practices: focus on preparing diverse employees for greater responsibility and advancement -Recruitment practices: attempts to attract qualified, diverse employees at all levels Ch. 5: Appreciating Individual Differences: Self-Concept, Personality, Emotions 1. From Self-Concept to Self-Management An OB Model for Studying Individual Differences: Self: the core of one’s conscious existence Self-concept: a person’s self-perception as a physical, social, spiritual being Cognitions: a person’s knowledge, opinions, or beliefs a. Self-Esteem Self-esteem: a belief about one’s own self-worth base on an overall self-evaluation To help raise one’s self-esteem, have them think of desirable characteristics that they possess: -live consciously -be self-accepting -take personal responsibility -be self-assertive -live purposefully -have personal integrity 3 Cognitive Supports for behavior change (an essential part of self-monitoring, self- efficacy, and self-management): -symbolic coding: human brain stores information in visual and verbal codes -rehearsal: mental rehearsal of challenging tasks can increase one’s chance of success -self-talk: set of evaluating thoughts that you give yourself about facts and events that happen to you Three criteria to satisfy before Self Reinforcement can occur: -the individual must have control over desired reinforcers -reinforcers must be self-administered on a conditional basis -performance standards must be adopted 2. Personality Dynamics Personality: stable physical and mental characteristics responsible for a person’s identity a. The Big Five Personality Dimensions Provides a framework for categorizing and analyzing personality traits into 5 categories: -Extraversion -Agreeableness -Conscientiousness -Emotional stability -Openness to experience The Big 5 Personality Dimensions: *Conscientiousness has the strongest positive correlation with job performance and training Extraversion is associated with success for managers and salespeople The Proactive Personality: an action-oriented person who shows initiative and perseveres to change things -people with proactive personalities are “hardwired” to change the status quo b. Locus of Control: Self or Environment? A concept that identifies whether individuals perceive that they have control over situations or whether they are powerless to influence their situations Internal locus of control: attributing outcomes to one’s own actions External locus of control: believing performance is the product of circumstances beyond one’s immediate control Humility: considering the contributions of others and good fortune when gauging one’s success -necessary tool for managers How Lucky People Make Their Own Luck (skills & best practices box): -maximize chance opportunities -listen to your lucky hunches -expect good fortune -turn bad luck into good luck c. Attitudes Attitude: learned predisposition toward a given object d. Intelligence and Cognitive Abilities Intelligence: capacity for constructive thinking, reasoning, and problem solving Cognitive performance is determined by two types of abilities: -a general mental ability needed for all cognitive tasks -abilities unique to the task at hand The 7 most frequently cited mental abilities: Mental Abilities: 3. OB Gets Emotional a. Positive and Negative Emotions Emotions: complex human reactions to personal achievements and setbacks that may be felt and displayed Negative emotions (goal incongruent): anger, fear, anxiety, sadness, envy, disgust Positive emotions (goal congruent (consistent)): happiness, pride, love, relief b. Good (and Bad) Moods are Contagious Emotional contagion: how we can catch another person’s good or bad mood or displayed emotions c. Emotional Labor (It has NOT been a pleasure serving you!) Emotional labor: occurs when people need to repress their emotional reactions when serving others -“Smile, look happy for the customers” Only one need can be motivating behavior at any given time. This assumes that lower level needs have been addressed or satisfied. Once a need is satisfied, it activates the next higher need in the hierarchy. Managerial implication: a satisfied need may lose its motivational potential ii. McClelland’s Need Theory: 3 Sets of Needs, not ordered in a hierarchy: -need for achievement: desire to accomplish something difficult -need for affiliation: desire to spend time in social relationships and activities -need for power: desire to influence, coach, teach, or encourage others to achieve Those who demonstrate a need for achievement share 3 common characteristics: -preference for working on tasks of moderate difficulty -preference for situations in which performance is due to their efforts -desire more feedback on their successes and failures 3 Management Implications: -organizations should consider the benefits of providing achievement training for employees -achievement, affiliation, and power needs can be considered during the selection process, for better placement -managers should create challenging task assignments or goals because the need for achievement is positively correlated with goal commitment, which, in turn, influences performance 2. Motivating Employees through Job Design Job design: changing the content and/or process of a specific job to increase job satisfaction and performance a. The Mechanistic Approach -Based on research in industrial engineering and scientific management -targets efficiency, flexibility, and employee productivity +employee efficiency and productivity are increased -simplified, repetitive jobs lead to job dissatisfaction, poor mental health, higher levels of stress, and low sense of accomplishment b. Motivational Approaches Attempts to reduce job simplification and repetition through: -Job enlargement: putting more variety into a job (aka horizontal loading) -Job rotation: moving employees from one specialized job to another -increased worker flexibility and easier scheduling -Job enrichment: building achievement, recognition, stimulating work, responsibility, and advancement into a job Herzberg’s motivator-hygiene theory of job satisfaction: found that separate and distinct clusters of factors are associated with job satisfaction and dissatisfaction. -motivators: job characteristics associated with job satisfaction -hygiene factors: job characteristics associated with job dissatisfaction i. The Job Characteristics Model: Intrinsic motivation: motivation caused by positive internal feelings Extrinsic motivation: caused by the desire to attain specific outcomes Core job dimensions: job characteristics found to various degrees in all jobs Core job dimensions of the job characteristics model: -skill variety -task identity -task significance -autonomy -feedback Steps for Applying the Job Characteristics Model: -1- Diagnose the work environment to determine the level of employee motivation and job satisfaction -2- Determine whether job redesign is appropriate for a given group of employees -3- Determine how to best redesign the job c. Biological and Perceptual-Motor Approaches -Based on research from biomechanics, work physiology, and ergonomics -Focuses on designing the work environment to reduce employees’ physical strain, fatigue, and health complaints Repetitive motion disorders (RMDs): muscular disorder caused by repeated motions 3. Cultivating Intrinsic Motivation a. The Foundation of Intrinsic Motivation b. A Model of Intrinsic Motivation A Model of Intrinsic Motivation: Job satisfaction and performance are moderately related Job satisfaction and performance indirectly affect each other through a host of individual differences and work-environment characteristics c. Work versus Family Life Conflict A Values Model of Work-Family Conflict: Based on the observation that family values involve strong and long-lasting beliefs about the importance of family and who should play key family roles Model examines two distinct forms of the work-family potential conflict: -Work interference with family -Family interference with work Value similarity: relates to the degree of consensus among family members about family values Value congruence: involves the amount of value agreement between employee and employer Organizations’ responses to work-family issues: -child-care services -cafeteria benefit plans -flexible work schedules -ATM at work -dry-cleaning services -stress reduction programs -concierge services -telecommuting Ch. 7: Motivation II: Equity, Expectancy, and Goal Setting 1. Adam’s Equity Theory of Motivation Equity Theory: holds that motivation is a function of fairness in social exchanges a. The Individual-Organization Exchange Relationship An employee’s inputs, for which he expects a just return, include: education/training, skills, creativity, seniority, age, personality traits, effort expended, and personal appearance On the outcome side of the individual-organizational exchange relationship, the organization provides pay, bonuses, benefits, challenging work, security, promotion, feedback and perhaps, participation in decision making. b. Negative and Positive Inequity Employees compare their state of affairs with others Negative inequity: comparison in which another person receives greater outcomes for similar inputs Positive inequity: comparison in which another person receives lesser outcomes for similar inputs Negative and Positive Inequity: c. Dynamics of Perceived Inequity Manager can derive practical benefits from Adam’s equity theory by recognizing that: -people have varying sensitivities to perceived equity and inequity -inequity can be reduced in a variety of ways i. Thresholds of Equity and Inequity Equity Sensitivity: an individual’s tolerance for negative and positive equity Benevolents: people who have a higher tolerance for negative inequity Sensitives: individuals who adhere to a strict norm of reciprocity and are quickly motivated to resolve both negative and positive inequity Entitleds: have no tolerance for negative inequity -expect to obtain greater output/input ratios than comparison others and become upset when this is not the case d. Expanding the Concept of Equity: Organizational Justice Three basic elements of organizational justice: -distributive justice: the perceived fairness of how resources and rewards are distributed -procedural justice: the perceived fairness of the process and procedures used to make the allocation decisions -interactional justice: the extent to which people feel fairly treated when procedures are implemented in organizations e. Practical Lessons from Equity Theory -provides managers with an explanation of how individual beliefs and attitudes affect their performance on the job -Research has emphasized the need for managers to pay attention to employees’ perceptions of what is fair and equitable, and to set aside their own assumptions in making these determinations. -provides guidance for managers 3. Motivation through Goal Setting When individuals have goals in mind, they are more likely to reach that destination than some un-chartered territory. a. Goals: Definition and Background Goal: what an individual is trying to accomplish Management by objectives (MBO): management system incorporating participation in decision making, goal setting, and feedback b. How Does Goal Setting Work? Goals: -direct attention -regulate effort -increase persistence -foster the development and application of task strategies and action plans c. Insights from Goal-Setting Research i. Difficult goals lead to higher performance Goal difficulty: the amount of effort required to meet a goal Relationship Between Goal Difficulty and Performance: ii. Specific, difficult goals lead to higher performance for simple rather than complex tasks Goal specificity: the quantifiability of a goal iii. Feedback enhances the effect of specific, difficult goals iv. Participative goals, assigned goals, and self-set goals are equally effective v. Goal commitment and monetary incentives affect goal-setting outcomes Goal commitment: extent to which an individual is personally committed to achieving a goal d. Practical Application of Goal Setting Step 1: Set goals Step 2: Promote goal commitment Step 3: Provide support and feedback 4. Putting Motivational Theories to Work Managerial Actions for Enhancing Goal Commitment: - managers should provide appropriate rewards for goal attainment - raise employees’ self-efficacy about meeting goals through training, role modeling, and persuasive communication -have employees make a public commitment to the goal -communicate an inspiring vision and explain how the individual goals relate to accomplishing the vision -allow employees to participate in setting the goals -Behave supportively rather than punitively -Break a long-term goal (ex: yearly goal) into short-term sub-goals -ensure that employees have the resources required to accomplish the goal Ch. 8: Improving Performance with Feedback, Rewards, and Positive Reinforcement 1. Providing Effective Feedback Bolstering the Job Performance Cycle with Feedback, Rewards, and Reinforcement Job performance can be strengthened through feedback, rewards, and reinforcement as shown in this figure. Individual ability, the amount of effort expended, and the amount and kind of feedback can lead to greater organizational performance. Feedback: objective information about individual or collective performance shared with those in a position to improve the situation a. Two Functions of Feedback i. Instructional: clarifies or teaches new behaviors ii. Motivational: serves as a reward or promise of reward 1. Can be significantly enhanced by pairing specific, challenging goals with specific feedback about results 2. Organizational Reward Systems three key factors in organizational reward systems: -types of rewards - criteria used to distribute rewards -desired outcomes a. Types of Rewards i. Extrinsic rewards: financial, material, or social rewards from the environment ii. Intrinsic rewards: self-granted, psychic rewards b. Distribution Criteria i. Performance: results: tangible outcomes ii. Performance: actions and behaviors: teamwork, cooperation, risk-taking iii. Non-performance considerations: contractual c. Desired Outcomes d. Pay for Performance Pay for performance: monetary incentives tied to one’s results or accomplishments e. Why Rewards Often Fail to Motivate i. too much emphasis on monetary rewards ii. rewards lack an “appreciation effect” iii. extensive use of benefits can become entitlements iv. too long a delay between the performance and rewards v. tendency to try a one-size-fits-all reward system without recognizing individual or organizational uniqueness. vi. Use of one-shot rewards with a short-lived motivational impact vii. Continued use of demotivating practices such as layoffs, across-the-board raises and cuts, and excessive executive compensation 3. Positive Reinforcement a. Thorndike’s Law of Effect Law of effect: behavior with favorable consequences is repeated; behavior with unfavorable consequences disappears b. Skinner’s Operant Conditioning Model i. Respondent behavior: unlearned stimulus – response reflexes 1. Ex) shedding tears while peeling onions; breathing ii. Operant behavior: learned, consequence-shaped behavior 1. Ex) taught pigeons how to pace figure-eights c. Contingent Consequences Contingent Consequences in Operant Conditioning: The focus of behavior modification in organizations is on operant behavior. The types of consequences that can be used to strengthen behavior include: i. Positive reinforcement: making behavior occur more often by contingently presenting something positive ii. Negative reinforcement: making behavior occur more often by contingently withdrawing something negative iii. Punishment: making behavior occur less often by contingently presenting something negative or withdrawing something positive iv. Extinction: making behavior occur less often by ignoring or not reinforcing it d. Schedules of Reinforcement Reinforcement must be applied according to schedules to have the desired impact on behavior. This approach is referred to as schedules of reinforcement. i. Continuous reinforcement: reinforcing every instance of a behavior ii. Intermittent reinforcement: reinforcing some but not all instances of behavior 1. Fixed ratio: piece-rate pay; bonuses tied to the sale of a fixed number of units 2. Variable ratio: slot machines that pay off after a variable number of lever pulls 3. Fixed interval: hourly pay; annual salary paid on a regular basis 4. Variable interval: random supervisory praise and pats on the back for employees who have been doing a good job