Industrial Organizational Psychology (Chapter 4-14)

CHAPTER 4: RECRUITMENT Recruitment ⇒ Attracting people with the right qualifications to apply for the job. ⇒ Internal Recruitment – promote someone from w/in the organization ⇒ External Recruitment – hire someone from outside the organization ⇒ Internal promotions can be a great source of motivation but if an org. always promotes employees from within it runs the risk of having a stale workforce MEDIA ADVERTISEMENTS A. Newspaper Ads ⇒ Common method of recruiting employees ⇒ Asks the applicant to respond in one of 4 ways: i. Calling ⇒ Quickly screen applicants or hear an applicant’s phone voice ii. Applying in person ⇒ want the applicants to fill out specific job application or want to get a physical look ⇒ Sending resume directly to organization ⇒ When the org. expects a large response and does not have the resources to speak with thousands of applicants iii. Sending resume to blindbox ⇒ (1) organization doesn’t want its name in public (can result to avalanche of resumes) ⇒ (2) the company might fear that people wouldn’t apply if they knew the name of the company ⇒ (3) a company needs to terminate an employee but wants first to find a replacement ⇒ Writing recruitment ads i. Ads must display the company’s emblem ii. Ads must contain realistic info of the job iii. Ads must contain detailed description of the job iv. Ads must contain the selection process affect the probability that applicants will apply for job B. Electronic Media ⇒ Television or radio ⇒ Not so popular C. Situation-Wanted Ads ⇒ Placed by the applicants rather than by organization D. Point-of-Purchase Methods ⇒ Used to market products to consumers ⇒ The idea is to get you buy more items once you are already in the store ⇒ Job vacancy notices are posted in places where customers or current employees are likely to see them i. Adv: inexpensive and targeted toward people who frequent the business ii. Disadv: only a limited number of people are exposed to the sign RECRUITERS 1) Campus Recruiters ⇒ Org. send recruiters to college campuses to answer questions about themselves and interview students for available position ⇒ Virtual Job Fairs – applicants can talk to or instant message a recruiter 2) Outside Recruiters ⇒ (1) private employment agencies & (2) executive search firms – make a profit from recruitment activities ⇒ (3) public employment agencies – operated by state and local public agencies; strictly nonprofit 3) EMPLOYMENT AGENCIES AND SEARCH FIRMS (outside recruiters) A. Employment Agencies (operate in two ways) ⇒ (1) charge either the company ⇒ (2) charge the applicant when the applicant takes the job ⇒ FEW RISKS i. If employment agency cannot find an appropriate candidate, the organization has not wasted money ii. If employment agency is successful, the organization gets a qualified employee at no cost ⇒ Disadv: company loses some control over its recruitment process and may end up with undesirable applicants B. Executive Search Firms ⇒ “head hunters”

⇒ (1) the jobs they represent tend to be higher-paying, non-entry level positions ⇒ (2) reputable executive search firms always charge their fees to organizations not on applicants ⇒ (3) fees charged by executive search firms tend to be 30% of the applicants first-year salary C. Public Employment Agencies ⇒ Help the unemployed find work but they often offer services such as career advertisement and resume application ⇒ Recruiting kiosks – placing in locations to search for local job openings and get information on how to apply for the job 4) EMPLOYEE REFERRALS ⇒ Current employees recommend family members and friends for specific job openings ⇒ Only those referrals made by successful employees should be considered. 5) DIRECT MAIL ⇒ an employer typically obtains a mailing list and sends help-wanted letters or brochures to people through the mail ⇒ useful for position involving specialized skills 6) INTERNET ⇒ (1) employer-based websites i. Organization lists available job openings and provides information about itself and the minimum requirements needed to apply to a particular job ii. Major change is the use of .jobs domain (can no directly access jobs at the company by typing the url with the “.jobs” domain ⇒ (2) internet recruiters i. A private company whose website lists job openings for hundreds of organizations and resumes for thousands of applicants ii. Largest internet recruiter is monster.com iii. ADV: not costly 7) JOB FAIRS ⇒ (1) many types of organizations have booths at the same location ⇒ (2) many organizations in the same field in one location ⇒ (3) for an organization to hold its own job fair 8) INCENTIVES ⇒ Offer incentives for employees to accept the jobs with an organization ⇒ Incentives often come in the form of a financial signing bonus other types of incentives are increasing in popularity 9) NONTRADITIONAL POPULATIONS ⇒ When traditional recruitment methods are unsuccessful organizations look for potential applicants through nontraditional populations 10) RECRUITING PASSIVE APPLICANTS ⇒ Recruiters find ways to identify this hidden talent and then convince the person to apply for the job REALISTIC JOB PREVIEWS (rjp) ⇒ Giving an applicant an honest assessment of a job ⇒ Even though telling the truth scares away many applicants, the ones who stay will not be surprised about the job EXPECTATION LOWERING PROCEDURE (elp) ⇒ Lowers an applicant’s expectations about work and expectations in general EFFECTIVE EMPLOYEE SELECTION TECHNIQUES ⇒ THREE CHARACTERISTICS I. Valid selection test II. Reduce the chance of a legal challenge III. Cost-effective EMPLOYMENT INTERVIEWS (TYPES OF INTERVIEWS) 1. STRUCTURE ⇒ Determined by the source of the questions ⇒ Structured interview i. The source of the question is a job analysis ii. All applicants are asked the same question iii. There is a standardized scoring key to evaluate each answer ⇒ Unstructured interview i. Free to ask anything they want

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STYLE

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(1) highly structured (2) moderately structured (3) slightly structured (4) unstructured

⇒ One-on-one interview – interviewer interviewing one applicant ⇒ Serial interview – series of single interviews ⇒ Return interview – similar to serial but passing of time between the first and subsequent interview ⇒ Panel interview – multiple interviewers asking questions and evaluating applicant the same time ⇒ Group interview – multiple applicants answering questions during the same interview 3. MEDIUM ⇒ Face-to-face interview – interviewer and the applicant in the same room ⇒ Telephone interview – screen applicants but do not allow the use of visual cues ⇒ Videoconference interview – conducted in remote sites ADVANTAGES OF STRUCTURED INTERVIEWS ⇒ It is job relatedness and standardized scoring most distinguish ⇒ More valid than unstructured. Viewed more favorably by the courts. Based on job analyses. ⇒ Disadvantage: because the interview is so structured, applicants may feel that they did not have the chance to tell the interviewer everything they wanted to. PROBLEMS WITH UNSTRUCTURED INTERVIEWS 1. Poor Intuitive Ability ⇒ They often based their decisions on “gut reactions” or intuition 2. Lack of Job Relatedness ⇒ Asking questions that are not job related and mostly illegal 3. Primacy Effect ⇒ “first impressions” ⇒ Information presented prior to the interview or early in the interview carries more weight than does information presented later in the interview ⇒ To reduce primacy effect, interviewers must make judgements after each questions rather than waiting until the end of the interview 4. Contrast Effect ⇒ An applicant’s performance is judged in relation to the performance of previous interviewees 5. Negative Information Bias ⇒ Occur when interviewers aren’t aware of job requirements ⇒ One might increase the accuracy of information obtained in the interview by reducing social pressure and using written or computerized interviews 6. Interviewer-interviewee Similarity ⇒ Interviewee will receive higher score if he or she is similar to the interviewer in terms of personality, attitude, gender, race. 7. Interviewee Appearance 8. Nonverbal cues ⇒ Nonverbal communication – correlated with interview scores Creating Structured Interview ⇒ Information about the job is obtained and questions are created that are designed to find out the extent to which applicants’ skills and experiences match those needed to successfully perform the job Determining the KSAOs to Tap in the Interview ⇒ (1) conduct a thorough job analysis and write a detailed job description ⇒ (2) determine the best way to measure an applicant’s ability to perform each of the tasks identified in the job analysis Creating Interview Questions 1. Clarifiers – clarify information in the resume, cover letter application etc. 2. Disqualifiers – questions must be answered a particular way or the applicant is disqualified 3. Skill-level determiners – tan an interviewee’s level of expertise 4. Future-focused questions – (situational questions), ask an applicant what she would do in a particular situation 5. Past-focused questions – (patterned behavior description interviews) focus on previews behavior rather than future intended behavior Creating a Scoring Key for an Interview Answers 1. Right/Wrong Approach – scored simply on the basis of whether the answer given was correct or incorrect 2. Typical Answer Approach – to creat a list of all possible answers to each questions, and have SMEs rate the favorableness of each answer then use these ratings to serve as benchmarks

Key Issues Approach – SMEs create a list of key issues they think should be included in the perfect answer. Each key issue, the interviewee gets a point. Conducting the structured Interview ⇒ Build rapport. DO NOT begin asking questions until applicants have had tie to settle their nerves ⇒ Set the agenda for the interview by explaining the process ⇒ Ask the interview questions. Score each answer after it has been given ⇒ Answer any questions from the applicant ⇒ End the interview with a complimenting the interview and let her know when you will be contacting the applicant JOB SEARCH SKILLS Successfully Surviving the Interview Process • Scheduling the Interview o It will affect the score if applicants arrive late for the interview • Before the interview o Organizations are impressed if an applicant knows its products and services, future needs, major problems faced and philosophy or mission o Avoid wearing flashy and big accessories • During the interview o Nonverbal behaviors – firm handshake, eye contact, smiling, and head-nodding o Desired verbal behaviors – asking questions subtly pointing out how you are similar to the interviewer • After the Interview o Write a brief letter thanking the interviewer for her time 3.

WRITING COVER LETTERS ⇒ Should never be longer than one page and should include: 1. Salutation – name of the person to whom you want to direct the letter 2. Paragraphs – one/two sentences long and communicate three pieces of information:  fact that your resume is enclosed  name of the job you are applying  how you know about the job opening 2nd paragraph – states that you are qualified for the job 3rd paragraph – explains why you are interested of the job Final Paragraph – closes your letter and provides information on how you can be best reached 3. Signature – use words such as cordially  AVOID sounding so desperate and don’t beg  AVOID grammar and spelling errors  AVOID officious words or phrases  AVOID discussing personal circumstances  AVOID tailoring your letter to each company  AVOID writing your cover letter on the stationery of your current employer WRITING A RESUME ⇒ Summaries of an applicant’s professional and educational background Views of Resumes ⇒ (1) written as history of one’s life tend to be long ⇒ (2) written as an advertisement of skills tend to be shorter and contain both positive and relevant to a job seeker’s desired career Characteristics of Effective Resumes 1. Must be attractive and easy to read 2. Cannot contain typing, spelling, grammatical, or factual mistakes 3. Should make the applicant look as qualified as possible Types of Resume 1. Chronological resume – list previous jobs in order from the most to the least recent 2. Functional resume – organizes jobs based on the skills required to perform them rather than the order in which they were worked 3. Psychological resume – contains the strengths of both the chronological and functional styles and based on sound psychological theory and research ⇒ Impression-formation principles of priming ⇒ Primacy ⇒ Short-term memory

⇒ Should also contain information about either education or experience. ⇒ Three-impression management rules – relevance, unusualness, and positivity CHAPTER 5: EMPLOYEE SELECTION: REFERENCES & TESTING PREDICTING PERFORMANCE 1. USING REFERENCES & LETTERS OF RECOMMENDATION REFERENCE CHECK – the process of confirming the accuracy of information provided by an applicant REFERENCE – the expression of an opinion, either orally or through a written checklist, regarding an applicant’s ability, previous performance, work habits etc. • LETTER OF RECOMMENDATION – a letter expressing an opinion regarding an applicant’s ability & performance REASONS FOR USING REFERENCES & RECOMMENDATIONS 1. CONFIRMING DETAILS ON A RESUME RESUME FRAUD – lying on their resumes about their experiences/education 2. CHECKING FOR DISCIPLINE PROBLEMS a. to determine whether the applicant has a history of like poor attendance, sexual harassment & violence. b. Negligent hiring – if an organization hires an applicant without checking references & background, if there’s a crime, then the company is liable 3. DISCOVERING NEW INFORMATION ABOUT THE APPLICANT 4. PREDICTING FUTURE PERFORMANCE a. “the best predictor of future performance is past performance” b. Leniency – most of the recommendations are positive c. Negligent reference – if a company fails to divulge a fact to other company d. Knowledge of the applicant – the person writing the letter often does not know the applicant well e. Reliability – involves lack of agreement between two people who provide references for the same person. Letters of recommendation may say more about the person writing the letter than about the person for whom it is being written f. Extraneous factors – the method used by the letter writer is often more important than the actual content. Thus letters of recommendations often are not great predictors of performance. 5. 3 ETHICAL GUIDELINES THAT REFERENCE PROVIDERS SHOULD FOLLOW: a. Explicitly state your relationship b. Be honest in providing details c. Let the applicant see your reference before sending it & give him the chance to decline to use it PREDICTING PERFORMANCE USING APPLICANT TRAINING & EDUCATION • The use of GPA is most predictive in the first few years of graduation. It will result in high levels of adverse impact. PREDICTING PERFORMANCE USING APPLICANT KNOWLEDGE • Used primarily in the public sector, especially for promotions • Job Knowledge Tests – designed to measure how much a person knows about a job. They have excellent content & criterion validity PREDICTING PERFORMANCE USING APPLICANT ABILITY • Ability Tests – tap the extent to which an applicant can learn or perform a job related skill. Used primarily for occupations in which applicants are not expected to know how to perform the job at the time of hire. • Cognitive ability – oral & written comprehension, oral & written expression, reasoning. Important for professional, clerical, & supervisory job. Commonly used because they are excellent predictor of employee performance. It has high level of adverse impact & lack face validity, difficulty of setting a passing score. It is thought to predict work performance in 2 ways: o By allowing employees to quickly learn job-related knowledge o By processing information resulting in better decision making o Wonderlic Personnel Test – most widely used cognitive ability test in industry. 12 mins. • Perceptual ability – vision. • Psychomotor ability – finger dexterity; useful for jobs as carpenter, police officer etc. • Physical ability tests – jobs that require physical strength & stamina o Job related ness – o Passing score – relative standards indicates how well an individual scores compared to others. Absolute passing score are set at the minimum level needed to perform a job o When the ability must be present – PREDICTING PERFORMANCE USING APPLICANT SKILL • WORK SAMPLE – the applicant performs actual job-related tasks. When a simulation does not involve situational exercise o Leaderless group discussions – applicants meet in small groups and are given a job-related problem to solve or a job-related issue to discuss • •

Business games – allow the applicant to demonstrate such attributes as creativity, decision making & ability to work with others • ASSESSMENT CENTER – selection technique characterized by the use of multiple assessment methods that allow multiple assessors to actually observe applicants perform simulated job tasks. o In-basket technique – designed to simulate the types of daily information that appear on a manager’s or employee’s desk. o Simulations – enable assessors to see an applicant “in action”. Includes role plays, work samples, place an applicant in a situation that is similar as possible to one that will be encountered on the job PERFORMANCE USING PRIOR EXPERIENCE • EXPERIENCE RATINGS – experience by itself is not enough. o Biodata – a selection method that considers an applicant’s life, school, military, community and work experience. Good predictor of job performance and best predictor of future employee tenure.  File approach – obtain information from personnel files on employee’s previous employment, education, interests & demographics  Questionnaire approach – biographical questionnaire that is administered to all employees & applicants PREDICTING PERFORMANCE USING PERSONALITY, INTEREST & CHARACTER • PERSONALITY INVENTORIES – predict performance better than was once thought o For normal personality – measure the traits exhibited by normal individuals in everyday life. MMPI → Hogan Personality Inventory → California Personality Inventory → NEO-PI → 16PF → MBTI  Openness → bright, inquisitive  Conscientiousness → reliable, dependable  Extraversion → outgoing, friendly  Agreeableness → works well with others, team player  Emotional Stability → not anxious, tense o For psychopathology – determine whether individuals have serious psychological problems  Projective tests  Rorschach Ink Blot Test  TAT • INTEREST INVENTORIES → tap vocational interests o Strong Interest Inventory (SII) → asks individuals to indicate whether they like or dislike 325 items such as bargaining, repairing electrical wiring & taking responsibility. Answers shows how similar a person is to people already employed in 89 occupations that have been classified into 23 basic interest scales o Vocational Counseling – helping people find the careers for which they are best suited o Integrity tests (honesty tests) → tell an employer the probability that an applicant would steal money or merchandise.  Overt integrity tests → person’s attitudes about theft as well as his previous theft behavior will accurately predict his future honesty. More reliable & valid in predicting theft  Personality based integrity tests → tap a variety of personality traits related to counterproductive behavior such as theft, absenteeism & violence.  PROBLEMS: “shrinkage” → the researcher does not know which of the employees is responsible for the theft  Conditional reasoning tests → reduce inaccurate responses & get a more accurate picture of a person’s tendency to engage in aggressive/counterproductive behavior  Graphology → “handwriting” REJECTING APPLICANTS • Applicants who were rejected properly were more likely to continue to be a customer at the organization and to apply for future job openings • Best way to address rejection in an applicant: o

A personally addressed & signed letter The company’s appreciation to the applicant Compliment about high qualifications Comment about the high qualifications possessed by other applicants o Information about the individual who was actually hired o o o o

A wish of good luck in future endeavors A promise to keep the applicant’s resume on file Send rejection letters to applicants Don’t send the rejection letter immediately Be as personable & as specific as possible Include a statement about the individual who received the job o Do not include the name of a contact person o o o o o o

CHAPTER 6: EVALUATION SELECTION TECHNIQUES & DECISIONS CHARACTERISTICS OF EFFECTIVE SELECTION TECHNIQUES 1. RELIABILITY - stable & free from error a. TEST RETEST RELIABILITY – take the same test twice i. TEMPORAL STABILITY – test scores are stable across time b. PARALLEL FORM RELIABILITY – 2 forms of same test are constructed i. COUNTERBALANCING – designed to eliminate any effects ii. FORM STABILITY – if 2 forms are similar after being correlated c. INTERNAL CONSISTENCY – measuring the same construct i. ITEM STABILITY – if similar items are answered in similar ways ii. ITEM HOMOGENEITY – if it measure same or different constructs. The more homogeneous items, the higher the consistency iii. Cronbach alpha – interval/ratio scales iv. KR20 – dichotomous items v. SPLIT-HALF METHOD – items are split into two and then correlated each test scores vi. SPEARMAN-BROWN PROPHECY – formula used to adjust correlation d. INTERRATER RELIABILITY – two interviewers give applicant similar ratings i. SCORER RELIABILITY – issue on subjective/objective tests in w/c there are no correct answers 2. VALIDITY – measuring what it purports to measure a. CONTENT VALIDITY – measure the content supposed to measure b. CRITERION-RELATED VALIDITY – test score is related to some job performance called criterion i. CONCURRENT – given to a group of employees who are already on the job & scores are correlated to the employee’s performance ii. PREDICTIVE – administered to a group who are going to be hired. 1. RESTRICTED RANGE - A narrow range of performance scores that makes it difficult to obtain a significant validity coefficient. 2. VALIDITY GENERALIZATION OR VG - The extent to which inferences from test scores from one organization can be applied to another organization. c. CONSTRUCT – measure the construct is purports to measure i. CONVERGENT ii. DIVERGENT iii. KNOWN GROUP VALIDITY – a test is given to 2 groups who are known to have different traits in question; must be used when other methods are not practical d. FACE VALIDITY – a test appears to be job related i. BARNUM STATEMENTS – general statements that can almost be true to everyone 3. COST-EFFICIENCY – if two or more tests have similar validities then its costs must be considered a. COMPUTER-ADAPTIVE TESTING (CAT) - type of test taken on a computer in which the computer adapts the difficulty level of questions asked to the test-taker’s success in answering previous questions. ESTABLISHING THE USEFULNESS OF A SELECTION DEVICE • TAYLOR-RUSSELL TABLES – provide an estimate of the percentage of total new hires who will be successful employees if test is adopted o CRITERION VALIDITY COEFFICIENT – thru criterion validity study o SELECTION RATIO – percentage of people an organization must hire o BASE RATE – percentage of employees currently on the job who are considered successful • PROPORTION OF CORRENT DECISION – less accurate than taylor-russell tables. Compares the percentage of times a selection decision was accurate with the percentage of successful employees. • LAWSHE TABLE - to know the probability that a particular applicant will be successful • BROGDEN-CRONBACK-GLESER UTILITY FORMULA - computing the amount of money an organization would save if it used the test to select employees. o UTILITY FORMULA - estimate the monetary savings to an organization.

DETERMINING THE FAIRNESS OF A TEST Bias → technical aspects of a test Fairness → includes political & social issues • ADVERSE IMPACT - adverse impact occurs if the selection rate for any group is less than 80% of the highest scoring group (practical significance) and the difference is statistically significant (statistical significance). Comparing the hiring rates of two groups, • SINGLE-GORUP VALIDITY – the test will significantly predict performance for one group & not others. • DIFFERENTIAL VALIDITY - valid for two groups but more valid for one than for the other.

MAKING THE HIRING DECISION • MULTIPLE REGRESSION - statistical procedure in which the scores from more than one criterion-valid test are weighted according to how well each test score predicts the criterion. • UNADJUSTED TOP-DOWN SELECTION - applicants are rank-ordered on the basis of their test scores. o COMPENSATORY APPROACH - A method of making selection decisions in which a high score on one test can compensate for a low score on another test. For example, a high GPA might compensate for a low GRE score. • RULE OF THREE - names of the top three applicants are given to a hiring authority who can then select any of the three. • PASSING SCORE - minimum test score that an applicant must achieve to be considered for hire. o MULTIPLE-HURDLE APPROACH - Selection practice of administering one test at a time so that applicants must pass that test before being allowed to take the next test. • BANDING - hire the top test scorers while still allowing some flexibility for affirmative action o STANDARD ERROR (SE) - number of points that a test score could be off due to test unreliability.

CHAPTER 7: EVALUATING EMPOYEE PERFORMANCE EVALUATING EMPLOYEE PERFORMANCE STEP 1: DETERMINE THE REASON FOR EVALUATING EMPLOYEE PERFORMANCE • Forced-choice rating scale – excellent in determining compensation • Providing employee training & feedback – providing feedback about what employees do right & wrong o Performance appraisal review – discuss strength & weakness of employees • Determining salary increases – difference of tenure and job performance • Making promotion decisions – the best employee in one level is not always the best at the next level o Peter principle – promotion of employees until they reach highest level of performance • Making termination Decisions • Conducting personnel research STEP 2: IDENTIFY ENVIRONMENT & CULTURAL LIMITATIONS STEP 3: DETERMINE WHO WILL EVALUATE PERFORMANCE • 360-degree feedback – excellent source for improving employee performance. Feedback is obtained from multiple sources such as supervisors, subordinates, and peers. • Multiple-source feedback - employee receives feedback from sources (e.g., clients, subordinates, peers) other than just his/her supervisor. • Supervisors – most common type of performance appraisal. See the results of the employees • Peers – often see the actual behavior of the employees • Subordinate feedback or upward feedback - appraisal of managerial effectiveness should include input from direct reports. • Customers → through “secret shoppers” • Self-appraisal → employee evaluate her own behavior STEP 4: SELECT THE BEST APPRAISAL METHODS TO ACCOMPLISH YOUR GOALS • Focus of the Appraisal dimensions o Trait-focused performance dimensions – attributions as dependability, honesty & courtesy. → provide poor feedback o Competency-focused – employee’s knowledge and skills; easy to provide feedback o Task-focused – organized by similarity of tasks o Goal-focused – organized the appraisal as the basis of goals to be accomplished by the employee o Contextual performance – efforts of the employee makes to get along with peers • Should dimensions be weighted? → Weighting dimensions makes good philosophical sense, as some dimensions might be more important to an organization than others. • Use of employee comparisons, objective measure or ratings o Employee comparison - employees can be compared with one another instead of being rated individually on a scale  Rank order - employees are ranked in order by their judged performance for each relevant dimension  Paired comparisons - comparing each possible pair of employees and choosing which one of each pair is the better employee  Forced distribution - which a predetermined percentage of employees are placed into a number of performance categories. o Objective Measures  Quantity of work → simply counting the number of relevant job behaviors that take place.  Quality of work → errors → deviation from a standard  Attendance  Safety o Ratings of Performance  Graphic Rating Scale – most common rating scale. Rating employee performance on an interval or ratio scale.  Behavioral checklists - a list of behaviors, expectations, or results for each dimension. → CONTAMINATION → The condition in which a criterion score is affected by things other than those under the control of the employee.  Comparison with other employees → Supervisors can rate performance on a dimension by comparing the employee’s level of performance with that of other employees.  Frequency of desired behaviors - Behaviors can be rated based on the frequency with which they occur.  Extent to which organizational expectations are met – best approach

STEP 5: TRAIN RATERS • Frame of reference training - the rater is provided with job-related information, a chance to practice ratings, examples of ratings made by experts, and the rationale behind the expert ratings. STEP 6: OBSERVE & DOCUMENT PERFORMANCE • Critical Incidents - supervisor records employee behaviors that were observed on the job and rates the employee on the basis of that record. • Employee performance record - A standardized use of the critical-incident technique developed at General Motors. STEP 7: EVALUATE PERFORMANCE • Obtaining & reviewing objective data • Reading critical-incident logs • Completing the rating form o Distribution errors - a rater will use only a certain part of a rating scale when evaluating employee performance.  Leniency error - a rater consistently gives all employees high ratings, regardless of their actual levels of performance.  Central tendency error - a rater consistently rates all employees in the middle of the scale, regardless of their actual levels of performance.  Strictness error - a rater consistently gives all employees low ratings, regardless of their actual levels of performance. o Halo Errors – overall impression o Proximity errors - a rating made on one dimension affects the rating made on the dimension that immediately follows it on the rating scale. o Contrast errors - performance rating one person receives can be influenced by the performance of a previously evaluated person  Assimilation - raters base their rating of an employee during one rating period on the ratings the rater gave during a previous period. o Low reliability across raters o Sampling problems  Recency effect  Infrequent observation - The idea that supervisors do not see most of an employee’s behavior. o Cognitive processing of observed behavior  Observation of behavior  Emotional state  Bias STEP 8: COMMUNICATE APPRAISAL RESULTS TO EMPLOYEES • PRIOR TO THE INTERVIEW o Allocating time o Scheduling the interview o Preparing for the interview • DURING THE INTERVIEW STEP 9: TERMINATE EMPLOYEES • Employment-at-Will Doctrine - The opinion of courts in most states that employers have the right to hire and fire an employee at will and without any specific cause. • Employent at will statements - Statements in employment applications and company manuals reaffirming an organization’s right to hire and fire at will. • LEGAL REASONS FOR TERMINATING EMPLOYEES o PROBATIONARY PERIOD o VIOLATION OF COMPANY RULES  PROGRESSIVE DISCIPLINE o INABILITY TO PERFORM o REDUCTION IN FORCE (LAYOFF) • THE TERMINATION MEETING o PRIOR TO THE MEETING o DURING THE MEETING o AFTER THE MEETING

CHAPTER 8: DESIGNING & EVALUATING TRAINING SYSTEMS TRAINING – systematic acquisition of skills, rules, concepts, or attitudes that result in improved performance. Training compensates for the inability to select desired applicants. Employees might have the necessary knowledge & skills one year, but have deficiencies by the next. Ultimate purpose is to increase an organization’s profits. DETERMINING TRAINING NEEDS NEEDS ANALYSIS – first step is to determine the types of training that are needed in an organization 1. ORGANIZATIONAL ANALYSIS – determine those organizational factors that either facilitate or inhibit training effectiveness. Should focus on the goals of the organization wants to achieve, the extent to which training will help achieve those goals, the organization’s ability to conduct training & extent to which employees are willing to be trained. 2. TASK ANALYSIS – to use the job analysis methods. To identify the tasks performed by each employee, the conditions under which tasks are performed & the competencies needed to perform the tasks under the identified conditions. Must include “interviews, observations & task inventories”. It is usually conducted by listing tasks in one column & how the tasks are learned in a second column 3. PERSON ANALYSIS – determining which employees need training & in which areas. Not every employee needs further training for every task performed. Uses the following: a. Performance appraisal scores – low ratings may indicate additional training needed while high ratings indicates little training time needed. 3 PROBLEMS: i. LENIENCY & STRICTNESS ERRORS – if the scores are consistently high because of leniency error, HR might conclude that employees are proficient and thus need no training ii. HR might conclude that training in a particular dimension is unnecessary due to only few employees score poorly iii. Current performance appraisal system may not provide the type of information needed to conduct a training needs analysis b. Surveys – asks employees what knowledge and skills they believe should be included in future training. ADVANTAGES: (A) eliminate the problems of performance rating errors (B) employees know their own strengths & weaknesses best. DISADVANTAGE: employees may not be honest c. Interviews – can yield even more in-depth answers to questions about training needs. ADVANTAGE: employee feelings & attitudes are revealed more clearly. DISADVANTAGE: data are often difficult to quantify & analyze d. Skills & Knowledge Tests – if only few employees score poorly, they are singled out for individual training. Problem is that relatively few tests are available for this purpose e. Critical Incidents – sorted into dimensions & separated into examples of good & poor performance 1.

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DEVELOPING A TRAINING PROGRAM ESTABLISHING GOALS & OBJECTIVES – goals & objectives must be obtainable given the time & resources allocated to the training. Should state the following: a. What learners are expected to do b. The conditions under which they are expected to do it c. The level at which they are expected to do it MOTIVATING EMPLOYEE a. MOTIVATING TO ATTEND TRAINING i. Require them to attend training “on the clock” ii. Relate the training to an employee’s immediate job iii. Make the training interesting iv. Increase employee buy-in v. Provide incentives vi. Provide food vii. Reduce stress associated with attending b. MOTIVATING TO PERFORM WELL IN TRAINING i. Provide incentives for learning 1. Skill-based pay – an employee participates in a training program that is designed to increase a particular skill an employee needs either to be promoted or to receive a pay raise. VERTICAL SKILL PLANS → pay for skill in a single job. HORIZONTAL SKILL PLANS → focus on skills used across multiple jobs. DEPTH SKILL PLANS → reward employees for learning specialized skills. BASIC SKILLS PLANS → focus on basic skills as math & English 2. Interest – interesting topic

Feedback – Positive feedback should be given when an employee correctly performs a task during training. Negative feedback should also be accompanied by specific suggestions for how the employee can improve performance ii. MOTIVATING TO USE THEIR TRAINING ON THE JOB – apply their knew knowledge & skills on the job itself. Better to train employees together at the same time which in turn result helping & encouraging each other. CHOOSING THE BEST TRAINING METHOD 3.

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CONDUCTING CLASSROOM TRAINING Classroom instruction – seminar, lecture or workshop. Most common training method 1. INITIAL DECISIONS a. WHO WILL CONDUCT THE TRAINING? External trainers b. WHERE WILL THE TRIANING BE HELD? Onsite or offsite c. HOW LONG SHOULD THE TRAINING BE? Distributed learning or Massed Learning 2. PREPARING FOR CLASSROOM TRAINING a. ADJUSTING FOR THE AUDIENCE – trainer must consider the size, demographics, & ability of the audience. Present training in moderate pace. b. DEVELOPING TRAINING CURRICULUM – 30 or 50 hours of preparation before training c. CREATING HANDOUTS – provide material that trainees can take back to their jobs 3. DELIVERING THE TRAINING PROGRAM a. INTRODUCTING THE TRAINER & TRAINING SESSION – introduction should be short & establish credentials of the trainer but the length shall depends on the time allocated b. USING ICE BREAKERS & ENERGIZERS – i. GOAL – ii. LENGTH OF THE TRIANING SESSION – iii. NATURE OF THE AUDIENCE – c. MAKING THE PRESENTATION i. Make eye contact ii. Use gestures effectively iii. Don’t read your presentation iv. Don’t hide behind the podium v. Be confident vi. Speak at a moderate pace vii. Avoid swearing viii. Try to make the presentation interesting ix. Don’t force humor 4. USING CASE STUDIES TO APPLY KNOWLEDGE a. Case studies - usually in a group, are presented with a real or hypothetical workplace problem and are asked to propose the best solution. b. living case - case study based on a real situation rather than a hypothetical one. 5. USING SIMULATION EXERCISES - designed to place an applicant in a situation that is similar to the one that will be encountered on the job. 6. PRACTICING INTERPERSONAL SKILLS THROUGH ROLE PLAY – allows the trainee to perform necessary interpersonal skills by acting out simulated roles 7. THROUGH BEHAVIOR MODELING – similar to role play except that trainees role-play ideal behavior rather than the behavior they might normally perform PROVIDING INDIVIDUAL TRAINING THROUGH DISTANCE LEARNING 1. PROGRAMMED INSTRUCTION - A training method in which employees learn information at their own pace. 2. USING BOOKS, VIDEOS, OF INTERACTIVE VIDEO 3. COMPUTER-BASED OR WEB-BASED PROGRAMMED INSTRUCTION – e-learning is web-based while CBT is not. Employees can choose from a variety of training programs offered onsite & complete the training at their own pace. Interactive video → employees see a videotaped situation. Webinars → web-based seminar. Webcasts → training programs transmitted over the web. CONDUCTING ON-THE-JOB TRAINING 1. LEARNING BY MODELING OTHERS – employees learn by watching how other employees perform or model a behavior a. We tend to model behavior of people who are similar to us who are successful & who have status.

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Employee must pay attention to the behavior of other employees. Must be able to retain information that is being modeled. And must have the ability to reproduce the behavior that is seen LEARNING THROUGH JOB ROTATION – employee performs several different jobs within an organization. For managerial. Cross training →Teaching employees how to perform tasks traditionally performed by other employees. LEARNING THROUGH APPRENTICE TRAINING - A training program, usually found in the craft and building trades, in which employees combine formal coursework with formal on-the-job training. LEARNING THROUGH COACHING & MENTORING a. Coaching i. Experienced employees as coaches 1. Pass-through programs – formal method of coaching in which excellent employees spend a period of time in the training department learning training techniques and training employees. ii. Professional coaches – similar to consultants b. Mentoring –

ENSURING TRANSFER OF TRAINING • Transfer of training - The extent to which behavior learned in training will be performed on the job. • Overlearning - Practicing a task even after it has been mastered in order to retain learning. EVALUATION OF TRAINING RESULTS 1. Pretest – taken before the implementation of training 2. Posttest – taken after the training program is complete CHAPTER 9: EMPLOYEE MOTIVATION MOTIVATION – the internal force that drives a worker to action as well as the external factors that encourage that action. It determines whether the worker will do work properly. Increased worker motivation results in increased job performance •

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IS AN EMPLOYEE PREDISPOSED TO BEING MOTIVATED? SELF-ESTEEM – the extent to which a person views himself as valuable and why. High self-esteem workers are more motivated than with lower self-esteem. o CONSITENCY THEORY (Korman’s) – there is a positive correlation between self-esteem & performance. High self-esteem actually desire to perform high levels & employees with low self-esteem desire to perform at low levels.  Chronic self-esteem – person’s overall feeling about himself.  Situational self-esteem – “self-efficacy”. A person’s feeling about himself in a particular situation.  Socially influences self-esteem – how a person feels about himself on the basis of the expectations of others. o Self-esteem workshops – attend workshops. Outdoor experiential training o Experience with success – an employee is given a task so easy that he will almost certainly succeed.  Self-fulfilling prophecy – individual will perform as well or as poorly as he expects to perform.  Galatea effect – relationship between self-expectation and performance. “positive” o Supervisor Behavior – if an employee feels that a manager has confidence in him, his self-esteem will increase, as well his performance.  Pygmalion effect – higher expectation lead to higher performance  Golem effect – when negative expectations of an individual cause a decrease in their performance INTRINSIC MOTIVATION – they will seek to perform well because they either enjoy performing the actual tasks or enjoy the challenge of successfully completing the task. Extrinsically motivated → they don’t enjoy the tasks but are motivated to perform well to receive some type of rewards or to avoid negative consequences o Work Preference Inventory (WPI) – yield scores on intrinsic motivation (enjoyment, challenge) & two extrinsic (compensation, outward orientation) NEEDS FOR ACHIEVEMENT & POWER – “McClelland” suggests that employees differ in the extent to which they are motivated by the need for achievement, affiliation & power. o Need for achievement – motivated by jobs that are challenging o Need for affiliation – motivated by jobs in which they can work with & help other people o Need for power – motivated by a desire to influence others rather than simply be successful. HAVE THE EMPLOYEE’S VALUES & EXPECTATIONS BEEN MET?

Potential discrepancies between what employees want & what the job gives them affect how motivated & satisfied employees will be with their jobs. • JOB EXPECTATIONS – an employee expected a job to be like & the reality of the job can affect motivation & satisfaction. o Realistic job preview – method of recruitment in which job applicants are told both the positive and the negative aspects of a job. • JOB CHARACTERISTICS – theory which employees desire jobs that are meaningful, provide them with the opportunity to be personally responsible for the outcome of their work (autonomy) & provide them with feedback of the results. Job will have: o Motivation potential – if they allow employees to use a variety of skills & to connect their efforts to an outcome (task identification) which has meaning, and useful & appreciated by coworkers as well as by others in society (task significance). • NEEDS, VALUES AND WANTS – o Maslow’s Hierarchy – employees would be motivated by & satisfied with their jobs at any given point in time if certain needs were met. o ERG Theory – “Aldefer” suggested that a person can skip levels.  Existence  Relatedness  Growth o Two-factor Theory – “Herzberg” believed that job-related factors could be dived into 2 categories:  Hygiene factors – those job-related elements that result from but do not involve the job itself. Pay, security, coworkers, working conditions, company policy, work schedule, supervisors  Motivators – job elements that do concern actual tasks & duties. Responsibility, growth, challenge, stimulation, independence, variety, achievement, control, interesting work DO EMPLOYEES HAVE ACHIEVABLE GOALS? Goal setting – each employee is given a goal such as increasing attendance, etc. S M A R T • SPECIFIC – properly set goals are concrete & specific. The more specific the goal, the greater the productivity • MEASURABLE – if one’s goal is to improve performance or increase customer service, • DIFFICULT BUT ATTAINABLE – high but attainable. Setting higher goals leads to better performance but the level of goal difficulty will most affect performance when employees are committed to reaching the goal • RELEVANT – • TIME-BOUND – there is time frame for completion • EMPLOYEE PARTICIPATION – performance would increase even more if the employee participated ARE EMPLOYEES RECEIVING FEEDBACK ON THEIR GOAL PROGRESS? Feedback –verbally telling employees how they are doing, placing a chart on a wall, or using nonverbal communication. Best increases performance when it is positive & informational rather than negative & controlling SELF-REGULATION THEORY – employees monitor their own progress toward attaining goals & then make the necessary adjustments; that is; they self-regulate. ARE EMPLOYEES REWARDED FOR ACHIEVING GOALS? OPERANT CONDITIONING – basis of incentive systems which state that employees will engage in behaviors for which they are rewarded • TIMING OF THE INCENTIVE – most effective if it occurs soon after the performance of the behavior • CONTINGENCY OF CONSEQUENCES – at least be clear that the employee understands the behaviors that brought reward or punishment. Reward & punishment must be made contingent upon performance & must be clear to employees • TYPE OF INCENTIVE USED o Premack Principle – reinforcement is relative & that a supervisor can reinforce an employee with something that on the surface does not appear to be a reinforcer. Construct a reinforcement hierarchy on which an employee lists his preferences for a variety of reinforcers. o Financial Rewards – used to motivate better worker performance by making variable pay an integral part of an employee’s compensation package or by using financial rewards as a “bonus” for accomplishing certain goals. o Recognition – “social recognition” → informal recognition programs consists of personal attention, signs of approval & expressions of appreciation o Travel • INDIVIDUAL VS. GROUP INCENTIVES – designed to make high levels of individual performance financially worthwhile & the research is clear monetary incentives increase performance over the use of a guaranteed hourly salary o Pay for performance – “earnings-at-risk plans” → pay employees according to how much they individually produce. Include commission

Merit pay – base their incentives on performance appraisal scores rather than on objective performance measures as sales & productivity. o Group incentives plans – to get employees participate in the success or failure of the organization  Profit sharing – provide employees with a percentage of profits above a certain amount  Gain sharing – ties groupwide financial incentives to improvements in organizational performance. Baseline → The level of productivity before the implementation of a gain-sharing plan.  Stock Options – employees are given the opportunity to purchase stock in the future, typically at the market price on the day the options were granted EXPECTANCY THEORY - Vroom’s theory that motivation is a function of expectancy, instrumentality, and valence. The higher the score on each component, the greater the employee’s motivation. o Expectancy – if an employee believes that no matter how hard he works he will never reach the necessary level of performance, then his motivation will probably be low o Instrumentality – employee will be motivated only of his behavior results in some specific consequence o Valence – if an employee is rewarded, the reward must be something he values. o Internal Locus of control - The extent to which people believe that they are responsible for and in control of their success or failure in life. REWARDS VS. PUNISHMENT – punishment changes behavior only in the short run, does not teach an employee proper behaviors, & causes resentment. To be effective, employee must understand why he is being punished. o

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ARE REWARDS AND RESOURCES GIVEN EQUITABLY? EQUITIY THEORY - A theory of job satisfaction stating that employees will be satisfied if their ratio of effort to reward is similar to that of other employees. o INPUTS – personal elements we put into our jobs. Time, effort, education, experience o OUTPUTS – elements we receive from our jobs. Pay, benefits, challenge, responsibility o INPUTS/OUTPUTS RATIO – the ratio of how much employees believe they put into their jobs to how much they believe they get from their jobs. Organizational justice - A theory that postulates that if employees perceive they are being treated fairly, they will be more likely to be satisfied with their jobs and motivated to do well.

ARE OTHER EMPLOYEES MOTIVATED? If an organization’s older employees work hard & talk positively about their jobs & their employer, new employees will model this behavior & be both productive & satisfied. INTEGRATION OF MOTIVATION THEORIES: We will be motivated in our jobs if the job itself & the organization meet our expectations & values & satisfy our needs. Goal-setting theory – we find that employees who have understand, and agree to goals will be more motivated than those without goals or unclear goals. • Expectancy theory & goal-setting theory – we know that goals must be challenging but reasonable • Operant learning & expectation theories – extrinsically motivated people will be more motivated if behavior results in a reward • Operant learning, expectation, goal-setting, needs theory, & Premack Principle – rewards must have value to the employee to be motivating • Equity theory – rewards that are valued will be motivating only if they are given in an equitable way • Social influence theory – if other employees are motivated there is an increased probability that we will model their behavior & be motivated. CHAPTER 10: EMPLOYEE SATISFACTION & COMMITMENT • •

JOB SATISFACTION – the attitude an employee has toward her job ORGANIZATIONAL COMMITMENT – the extent to which an employee identifies with & is involved with an organization

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WHY SHOULD WE CARE ABOUT EMPLOYEE ATTITUDES? Satisfied employees tend to be committed to an organization and employees who are satisfied & committed are more likely to attend work, stay with an organization, arrive at work on time, perform well and engage in behaviors helpful to the organization than are employees who are not satisfied. Affective-cognitive consistency → their consistent beliefs about their level of job satisfaction

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WHAT CAUSES EMPLOYEES TO BE SATISFIED WITH AND COMMITTED TO THEIR JOBS? Employees may be satisfied with one facet of work (ex. Pay) but not another (coworkers).

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Most commonly studied facets of job satisfaction: pay, supervision, coworkers, promotion opportunities AFFECTIVE COMMITMENT – an employee wants to remain w/ the organization, care about & is willing to exert effort CONTINUANCE COMMITMENT – an employee believes she must remain due to the time, expense, & effort that she has already put into it NORMATIVE COMMITMENT – an employee feels obligated to the organization and as a result, she remain with the organization WHAT INDIVIDUAL DIFFERENCES AFFECT JOB SATISFACTION Our predisposition to be satisfied is what influence levels of job satisfaction & commitment. INDIVIDUAL DIFFERENCE THEORY – some variability in job satisfaction is due to an individual’s personal tendency across situations to enjoy what she does. Certain types of people will be satisfied & motivated regardless of the type of the job Genetic predispositions – suggests that job satisfaction not only may be fairly stable across jobs but also may be genetically determined. Some people probably not be satisfied with any job & supervisors should not lose sleep over the fact that these employees are not happy or motivated. Core self evaluations – series of personality variables related to job satisfaction. People prone to be satisfied with their jobs & with life in general have high self-esteem & feeling of being competent, are emotionally stable & believe that have control over their lives. 4 PERSONALITY VARIABLES: o EMOTIONAL STABILITY – o SELF-ESTEEM – o SELF-EFFICACY – o EXTERNAL LOCUS OF CONTROL – CULTURE INTELLIGENCE – bright people have slightly lower job satisfaction than do less intelligent employees in jobs that are not complex ARE EMPLOYEES SATISFIED WITH OTHER ASPECTS OF THEIR LIVES? People who are satisfied with their jobs tend to be satisfied with life and vice versa. People who are unhappy in life & unhappy on their jobs will not leave their jobs, because they are used to being unhappy. ARE EMPLOYEE’S JOB EXPECTATIONS BEING MET? If there is a discrepancy, employees will become dissatisfied & less motivated. Discrepancy theory → when an employee’s expectations are not met, the results are lower job satisfaction, decreased organizational commitment & increased intent to leave the organization.

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IS THE EMPLOYEE A GOOD FIT WITH THE JOB & THE ORGANIZATION? Which their values, interests, personality, lifestyle, skills match those of their vocation (career), job, organization, coworkers & supervisor. → tend to be satisfied with their jobs The extent to which employees’ desire for a particular work schedule matches their actual schedule

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ARE THE TASKS ENJOYABLE? Employees who find their work interesting are more satisfied & motivated.

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DO EMPLOYEES ENJOY WORKING WITH SUPERVISORS & COWORKERS? People who enjoy working with their supervisors & coworkers will be more satisfied with their jobs.

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ARE COWORKERS OUTWARDLY UNHAPPY? SOCIAL INFORMATION THEORY/SOCIAL LEARNING THEORY – employees observe the levels of motivation & satisfaction of other employees and then model those levels. Social environment does have an effect on employees’ attitudes/behaviors ARE REWARDS & RESOURCES GIVEN EQUITABLY? EQUITY THOERY – employees perceive that they are being treated fairly DISTRIBUTIVE JUSTICE – perceived fairness of the actual decisions made in an organization PROCEDURAL JUSTICE – perceived fairness of the methods used to arrive at the decision INTERACTIONAL JUSTICE – perceived fairness of the interpersonal treatment employees receive IS THERE A CHANCE FOR GROWTH & CHALLENGE?

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JOB ROTATION – A system in which employees are given the opportunity to perform several different jobs in an organization. Helps alleviate boredom by allowing an employee to change tasks JOB ENLARGEMENT – A system in which employees are given more tasks to perform at the same time. o Knowledge enlargement – employees are allowed to make more complex decisions o Task enlargement – they are given more tasks of the same difficulty level to perform JOB ENRICHMENT – A system in which employees are given more responsibility over the tasks and decisions related to their job. Job characteristics model – enriched jobs are the most satisfying. Allows a variety of skills to be used Job diagnostic survey (JDS) – measure the extent to which these characteristics are present in a given job Self directed team or quality circles – employees meet as a group to discuss & make recommendations about work issues

MEASURING SATISFACTION & COMMITMENT MEASURES OF JOB SATISFACTION • FACES SCALES – lacks sufficient detail, lacks construct validity & because some employees believe it is so simple that it is demeaning • JOB DESCRIPTIVE INDEX (JDI) – series of job related adjectives & statements that are rated by employees • MINNESOTA SATISFACTION QUESTIONNAIRE (MSQ) – contain 100 items that yield scores on 20 scales • JOB IN GENERAL SCALE (JIG) – useful when an organization wants to measure the overall level of job satisfaction rather than specific aspects MEASURES OF COMMITMENT • ORGANIZATIONAL COMMITMENT QUESTIONNAIRE (OCQ) – 15 item measure 3 commitment factors: acceptance of the organizations values & goals, willingness to work to help the organization & desire to remain with the organization • ORGANIZATIONAL COMMITMENT SCALE (OCS) – 9 item survey that measures 3 aspects of commitment: identification, exchange & affiliation • CUSTOM DESIGNED INVENTORIES – advantage of this is that an organization can ask employees questions specific to their organization. Hire consultant to specifically tapped employees’ thoughts about the changes CONSEQUENCES OF DISSATISFACTION & OTHER NEGATIVE WORK ATTITUDES • ABSENTEEISM – employees are dissatisfied or not committed to the organization are more likely to miss work. o Organizations are concerned with absenteeism not only because of its high monetary cost, but also because it correlated with turnover o Punishment will reduce absenteeism only if employees make conscious decision about attending. Like wellness program will increase only if absenteeism is mostly the result of illness o 3 reasons for time off → personal errands, catching up sleep & relaxing • REWARDS FOR ATTENDING o FINANCIAL INCENTIVES – reward employees for achieving certain levels of attendance. Well pay → paying employees for their unused sick leave o FINANCIAL BONUS – employees who attain a certain level of attendance. Perfect attendance over a year o GAMES – reward employees who attend work o TIME OFF – paid time off program or paid leave bank, o RECOGNITION PROGRAMS – formal recognition programs & praise • DISCIPLINE FOR NOT ATTENDING- giving a warning or ales popular work assignment to firing an employee o CLEAR POLICIES & BETTER RECORD KEEPING – record the number of instances of absenteeism rather than number of days. o INCREASE ATTENDANCE BY REDUCING EMPLOYEE STRESS – removing negative factors associated with their work. offer employee assistance program o INCREASING ATTENDANCE BY REDUCING ILLNESS – rewarding employees whose physically fit o REDUCING ABSENTEEISM BY NOT HIRING ABSENCE-PRONE EMPLOYEES o UNCONTROLLABLE ABSENTEESM CAUSED BY UNIQUE EVENTS TURNOVER • COST OF TURNOVER o The cost of losing an employee is estimated at 1.5 times the employee’s salary o Higher turnover rates will result in lower organizational performance o There is a U-shaped relationship between turnover & performance such that very low or very high levels of turnover will result in lower organizational performance; moderate amount of turnover → higher performance o The negative effect of turnover is strongest when an organization’s turnover rate is low • REDUCING TURNOVER

Find out why employees are leaving by administering surveys or exit interviews Is a process of disengagement from the organization that can take days, weeks or months. Employees typically leave for five reasons:  UNAVOIDABLE REASONS  ADVANCEMENT  UNMET NEEDS  ESCAPE  UNMET EXPECTATIONS • EMBEDDED COUNTERPRODUCTIVE BEHAVIORS – two types of behaviors those aimed at individuals and those aimed at organization. LACK OF ORGANIZAATION CITIZENSHIP BEHAVIORS – motivated to help the organization & their coworkers by doing the little things they are not required to do o o

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CHAPTER 11: ORGANIZATIONAL COMMUNICATION TYPES OF ORGANIZTIONAL COMMUNICATION 1. UPWARD COMMUNICATION – subordinates to superiors or employees to managers. Employees speak directly to management in an environment with an open door policy a. Serial communication – message is relayed form an employee to her supervisor, who relays it to her supervisor, who, in turn, relays it to her supervisor & so on until the message reaches the top. i. The content & tone changes as it moves/ relays from person to person. ii. Bad news & complaints are seldom relayed iii. Minimize unpleasant messages effect (MUM EFFECT) – negatively affects the organization by keeping important information from reaching the upper levels. iv. Communication channels – less effective the farther away two people are form one another. v. Proximity – supervisor is more likely to pass along a message to another supervisor if they are close b. Attitude surveys – usually conducted by outside consultant who administers a questionnaire asking employees to rate their opinions on such factors as satisfaction with pay, working conditions & supervisors. Also an opportunity to give list of complaints or suggestions. c. Focus groups & exit interviews – hold focus groups in which an outside consultant meets with groups of current employees to get their opinions & suggestions. Confidential d. Suggestion boxes – 1-800 numbers. Suggestions & complaints boxes. i. Suggestion boxes – provide safe voice for subordinates & customers & essential feedback to the organization as well. ii. Suggestion boxes is not likely to get complaints as a box specifically labeled complaints e. Third party facilitators – “liaison” or “ombudsperson”, both are responsible for taking employee complaints & suggestions & personally working with management to find solutions. Neutral & works for solution. Their job typically handled by union steward 2. DOWNWARD COMMUNICATION – superior to subordinate; management to employees. Originally involves news letter but now considered a key method not only of keeping employees informed but of communicating vital information needed by employees to perform their jobs. a. Bulletin boards – to communicate non-work-related opportunities like scholarships, optional meetings, etc i. Inhouse message networks – electronic bulletin boards b. Policy manual – place for posting important changes in policy or procedure c. Newsletter – designed to bolster employee morale by discussing happy or innocuous events such 3B’s (babies, birthdays, ballgame scores) d. Intranets – replacement of bulletin boards, newsletters, manuals. Organization wide versions of the internet. Useful because the speed at which the company can survey employees about new ideas 3. BUSINESS COMMUNICATION – the transmission of business-related information among employees, management & customers. Includes memos, telephone calls, emails, & voice mails a. Memos – providing detailed information to a large number of people in a short period of time b. Telephone calls – in the past used when message was short. Videoconferencing etc c. Email & voice mail – used to exchange general or timely information & ask questions; they d. Business meetings i. Office design 1. Freestanding design – 2. Uniform plans – 3. Free-form workstations –

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INFORMAL COMMUNICATION – transmitted through the grapevine → informal communication network a. Single strand grapevine – a message is passed in a chainlike fashion from one person to the next until the chain is broken. b. Gossip grapevine – a message is passed to only a select group of individuals. c. Probability grapevine – a message is passed randomly among all employees. d. Cluster grapevine – a message is passed to a select group of people who each in turn pass the message to a few select others. e. Isolates – An employee who receives less than half of all grapevine information. f. Dead enders - Employees who receive much grapevine information but who seldom pass it on to others. g. GOSSIP – Poorly substantiated information and insignificant information that is primarily about individuals. h. RUMOR – Poorly substantiated information that is passed along the grapevine.

INTERPERSONAL COMMUNICATION – involves the exchange of message across a communication channel from one person to another 1. PROBLEM AREA 1: INTENDED VS. MESSAGE SENT – a. Sender must know what she wants to say & how she wants to say it. THREE SOLUTIONS: i. Thinking about what you can communicate ii. Practice what you want to communicate iii. Learn better communication skills 2. PROBLEM AREA 2: MESSAGE SENT VS. MESSAGE RECEIVED – many factors affect how that message is received a. The actual words used b. Communication channel → message is transmitted; orally, nonverbally, second party or memo c. Noise →affect the way a message is received d. Nonverbal cues – or words often say one thing but our actions say another. e. Body language f. Use of space – dominant people/ have authority are given more space & time take space from others i. Intimacy zone – A distance zone within 18 inches of a person, where only people with a close relationship to the person are allowed to enter. ii. Personal distance zone – A distance zone from 18 inches to 4 feet from a person that is usually reserved for friends and acquaintances. iii. Social distance zone - An interpersonal distance from 4 to 12 feet from a person that is typically used for business and for interacting with strangers. iv. Public distance zone – Distance greater than 12 feet from a person that is typical of the interpersonal space allowed for social interactions such as large group lectures. g. Use of time h. Paralanguage- the way we say things & consists of variables such as tone, tempo, volume, number & duration of pauses i. Artifacts - The things people surround themselves with (clothes, jewelry, office decorations, cars, and so forth) that communicate information about the person. i. Open desk arrangement – An office arranged so that a visitor can sit adjacent to rather than across from the person behind the desk. ii. Closed desk arrangement – An office arranged so that a visitor must sit across from the person behind the desk. j. Amount of information i. Level - Describes a message from which unimportant informational details have been removed before the message is passed from one person to another. ii. Sharpen - Describes a message in which interesting and unusual information has been kept in the message when it is passed from one person to another; see Leveled. iii. Assimilate - A description of a message in which the information has been modified to fit the existing beliefs and knowledge of the person sending the message before it is passed on to another person. k. Reactions to communication overload i. Omission - A response to communication overload that involves the conscious decision not to process certain types of information. ii. Error - Deviation from a standard of quality; also a type of response to communication overload that involves processing all information but processing some of it incorrectly. iii. Queuing - A method of coping with communication overload that involves organizing work into an order in which it will be handled.

Escape - A response to communication overload in which the employee leaves the organization to reduce the stress. Use of gatekeeper – A person who screens potential communication for someone else and allows only the most important information to pass through. Use of multiple channels – A strategy for coping with communication overload in which an organization reduces the amount of communication going to one person by directing some of it to another person. iv.

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n. PROBLEM AREA 3: MESSAGE RECEIVED VS. MESSAGE INTERPRETED – its meaning can change depending on the way in which the receiver interprets the message a. Listening skills – most important communication skill that a supervisor should master i. Attitudinal listening profile – measure an employee’s listening style ii. Leisure listening – The listening style of a person who cares about only interesting information. iii. Inclusive listening – listens for the main ideas behind any communication iv. Stylistic listening – listens to the way the communication is presented v. Technical listening – who just want the “just the facts, ma’am” vi. Empathic listening – tunes in to the feelings of the speaker vii. Nonconforming listening – who attends only to information that is consistent with her way of thinking b. Emotional state – mad, anxious, depressed, elated or upset c. Cognitive ability – a person can receive message exactly as it was sent, yet not be bright enough to understand it d. Bias – affect our ability to interpret information we receive

IMPROVING EMPLOYEE COMMUNICATION SKILLS 1. INTERPERSONAL – training workshop conducted by an outside consult but only bring short-term improvements in skills. 2. COMMUNICATION SKILLS – a. Improving the writer’s skills b. Concentrates on making material easier to read or Readability – i. Fry readability graph – uses the average number of syllables per word & average length of sentences to determine readability ii. Flesch index – uses the average sentence length & number of syllables per 100 words iii. FOG Index – uses the number of words per sentence & number of three-syllable words per 100 iv. Dale Chall Index – uses the number of words that are not included in a list of words known by 80% of fourth graders 3. WRITTEN COMMUNICATION SKILLS – CHAPTER 12: LEADERSHIP Personal Characteristics associated with Leadership  Leader Emergence – idea that people who become leaders possess traits or characteristics different from people who do not become leaders. o Leadership gene? We inherit certain traits and abilities that might influence our decision to seek leadership o People High in openness, conscientiousness and extraversion and low in neuroticism are more likely to emerge as leaders o High self-monitors o More intelligent people o Looking at patterns of abilities and personality traits o 3 ASPECTS/FACTORS IN MOTIVATION  Affective identity motivation – enjoy being in charge and leading others. People score high on this has the high leadership potential  Noncalculative motivation – perceive positions that will result in personal gain  Social-normative motivation – sense of duty o Role of gender is complex. Men emerge as leaders more in short-term groups with low social interaction. Women involves in high social interaction o Glass ceiling for women  Leader Performance – leaders who perform well possess certain characteristics that poorly performing leaders do not. o Traits

Management, decision-making and oral communication skills were highly correlated with leadership effectiveness  Self monitoring – focus on what leaders do as opposed to what they are o Cognitive Ability – when the leader is not distracted by stressful situations and when the leader uses a more directive leadership style o Needs  Need for power, achievement, and affiliation  Implies that an effective leader should be concerned more with results than with being liked  Leadership motive pattern – high need for power and low need for affiliation  Thematic Apperception Test (TAT)  Job Choice Exercise (JCE) o Gender – women are more effective as leaders in situations traditionally defined in less masculine terms and vice versa for men o Task vs. Person Orientation  Person Oriented Leaders – act in a warm and supportive manner and show concern for their subordinates. They believe that employees are intrinsically motivated. They consult their subordinates before making decisions. Under pressure, they become socially withdrawn. Tend to appreciate humor.  Task oriented leaders – see their employees as lazy, extrinsically motivated, wanting security, undisciplined and shirking responsibility. Under pressure they become anxious, defensive and dominant. Tend to produce humor.  Leadership Opinion Questionnaire (LCQ)  Leader Behavior Description Questionnaire (LBDQ) o Unsuccessful Leaders  Lack of training  Cognitive Deficiencies – poor leaders are unable to learn from experience and are unable to think strategically, they consistently make the same mistakes and do not plan ahead  Personality • Paranoid/passive aggressive – appear to be supportive but at the same time they will stab another person in the back. • High likability floater – insecure and seldom rocks the boat or causes trouble. Their employees have high morale but low performance. • Narcissists – insecurity by overconfidence. “center of attention. Interaction between Leader and Situation  Situational Favorability o Fiedler’s Contingency model – any individual’s leadership style is effective only in certain situations. o Least Preferred Coworker (LPC) Scale o Favorableness of a situation is determined by 3 variables:  Task Structuredness –goals that are clearly stated and known by group members.  Leader position power – the greater the position or legitimate power of the leader, the more favorable the situation  Leader member relations – the more the subordinates like their leader, the more favorable the situations o Leader Match - Fiedler’s training program  Organizational Climate o IMPACT Theory  Informational Style – provides information in a climate of ignorance, where important information is missing from the group  Magnetic Style – leads through energy and optimism and is effective only in a climate of despair which is characterized by low morale. The chances of successful leadership increase in a situation of general despair when a magnetic or charismatic individual assumes control.  Position Style – leads by virtue of the power inherent in that position  Affiliation style – leads by liking and caring about others. Most effective in a climate of anxiety  Coercive style – leads by controlling reward and punishment and is most effective in a climate of crisis  Tactical style – leads through the use of strategy and is most effective in a climate of disorganization o How to become an effective leader according to IMPACT Theory?  Find a climate consistent with your leadership style 

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 Change you leadership style to better fit the existing climate  Change you follower’s perception of the climate  Change the actual climate Subordinate Ability o Leaders will be successful only if their subordinates perceive them as working with them to meet certain goals and if those goals offer a favorable outcome for the subordinates o Path Goal Theory – a leader can adopt one of four behavioral leadership styles  Instrumental style – planning, organizing and controlling the activities of employees  Supportive style – shows concern for employees  Participative style – shares information with employees and let them participate in decision making  Achievement oriented style – sets challenging goals and rewards increases in performance o Situational Leadership theory – a leader typically uses one of four behavioral styles:  Directing Approach – unable and unwilling or insecure. The leader directs the follower by telling him what to do and how to do it  Coaching approach – unable but willing or confident. They are willing to work but are not sure how to do it  Supporting approach – Able but unwilling or insecure. Given plenty of emotional support  Delegating approach – Able and willing or confident. Most productive and happy Relationship with Subordinates o Leader member exchange (LMX) – originally called vertical dyad linkage (VDL) theory. It is a unique situational theory that makes good intuitive sense. Concentrates on the interactions between leaders and subordinates. Ingroup- high quality relationship with leader. Trusting, friendly. Out-group – low quality of relationship with leader Leadership through Decision Making o Vroom-Yetton Model – provide a flowchart that can tell a leader what process to go through to make a decision in a particular situation. Leadership through Contact: Management by Walking Around (MBWA) – leaders and managers are most effective when they are out of their offices, walking around and meeting with and talking to employees and customers around their needs and progress. Leadership through Power - obtain more resources, dictate policy and advance farther in an organization than those who have little or no power. 5 basic types of power: o Expert power – knowledge must be something that others in an organization need. Must be aware that the leader knows something o Leadership power – best able to get employees to comply with their order but low follower satisfaction o Reward and coercive powers  Reward – having control over both financial rewards, salary increases, promotions  Coercive – willing to use her ability to punish o Referent Power – leaders who are well liked can influence others even in the absence of reward and coercive epower. Leadership through Vision: Transformational Leadership o Transformational leadership - setting goals, monitoring performance and providing a consequence to success or failure. 3 dimensions:  Contingent reward – leaders who reward followers for engaging in desired activity  Management by exception-active – leaders who monitor performance and take corrective action when needed  Management by exception-passive – leaders who do not actively monitor follower behavior and who take corrective action only when problems are serious. o focuses on changing or transforming the goals, values, ethics, standards, and performance of others. leaders are often labeled as being “visionary,” “charismatic,” and “inspirational.” o 3 highly related dimensions to transformational leadership:  Charisma  Intellectual stimulation  Individual Consideration. Good leaders possess 5 characteristics: o Vision o Differentiation o Values o Transmission of vision and values

o Flaws Leadership through Persuasion o By Communication  Expertise – for leaders to persuade their followers, they must be the most knowledgeable about their common interest  Trustworthiness – communicate not only that he is similar to them but also his goals are the same as theirs  Attractiveness – more persuasive than unattractive people o By Message  Message Discrepancy  One-sided vs. Two-sided arguments  Threats Cultural Differences in Leadership  PROJECT GLOBE o Discover differences and similarities in cultures o Determine why these differences exist  Cultures can differ in 9 dimensions: o Uncertainty avoidance – a culture avoids uncertainty by using social norms & rituals o Power distance – extent to which power is unequally shared o Social collectivism – a culture encourages collective distribution of resources o Ingroup collectivism – extent to which individuals express pride in their organizations & families o Gender egalitarianism – a culture tries to minimize differences in gender roles & prevent discrimination o Assertiveness – individuals in a culture are assertive & challenging in social relationships o Future orientation – culture plans for & invests in the future o Performance orientation – culture encourages & rewards improvement in performance o Humane orientation – culture encourages & rewards people for being fair, caring & giving  Project Globe 6 main leadership styles o Charismatic – involves vision, inspiration, integrity o Self-protective – follows procedure, emphasizing status differences, self centered o Humane style – modest & helpful o Team-oriented - collaborative o Participative – getting the opinions & help of others o Autonomous – independent & individualistic & making one’s own decisions CHAPTER 13: GROUP 

Group 4 criteria 1. Multiple members who perceive themselves as a unit 2. Group rewards 3. Corresponding effects 4. Common goals Reasons for joining Groups 1. Assignment – most common 2. Physical proximity – people tend to form groups with people who either live or work nearby. 3. Affiliation – our needs to be with other people. If people are not allowed the opportunity for affiliation, they make attempts to secure at least minimal contact. When even minimal contact is not possible, morale and will to live are lessened. 4. Identification – 5. Emotional support – provide emotional support for their members 6. Assistance or help – 7. Common interests – 8. Common goals – Factors affecting Group Performance 1. Group cohesiveness – extent to which group members like and trust one another, are committed to accomplishing a team goal, and share a feeling of group pride. Cohesiveness also lowers group performance, they often lose sight of organizational goal. The more cohesive the group, the greater its: a. Productivity and efficiency b. Decision quality

c. Member satisfaction d. Member interaction e. Employee courtesy 2. Group Homogeneity – extent to which its members are similar. a. Homogeneous group – similar in some or most ways b. Heterogeneous group – different than alike c. Slightly heterogeneous group – between completely homo and completely hetero Homogeneous groups result in higher member satisfaction, higher levels of communication and interaction and low turnover. 3. Stability of membership – members remain for long periods of time are more cohesive and perform better than groups that have high turnover and groups whose members previously worked together perform better than groups whose members are not familiar with one another. 4. Isolation – groups that are isolated or located away from other groups tend to be highly cohesive. 5. Outside pressure – “psychological reactance”. When we believe that someone is trying to intentionally influence us to take some particular action, we often react to doing the opposite. 6. Group size – more cohesive and perform best when small (app. 5 members) a. Additive tasks – group’s performance is equal to the sum of the performances of each member b. Conjunctive tasks – depends on the least effective group member. c. Disjunctive tasks – based on the most talented member. Social impact theory 7. Group status – it is important that its members believe they have high status a. To increase group status, increase the perception that the group is difficult to join but that once in, members will find that the group’s activities are special. 8. Group ability and confidence – groups whose members believe that their team can be successful both at a specific task, and at tasks in general perform better than groups who are not as confident. 9. Personality 10. Common structure – 11. Group Roles a. Task-oriented roles – offering new ideas, coordinating activities and finding new information b. Social-oriented roles – encouraging cohesiveness and participation c. Individual role – blocking group activities, avoid group interaction 12. Social Facilitation and Inhibition a. Social facilitation - positive effects of the presence of others on an individual’s behavior b. Social inhibition – negative effects of others’ presence i. Audience effects – when a group of people passively watch an individual ii. Coaction – two or more people are performing the same task in the presence of on another. c. Performance increases only when the task being performed is easy or well learned, performance decreases when the task is difficult or not well learned. d. 4 explanations: i. Mere presence of others naturally produces arousal. ii. Coacting audience provides a means for comparison iii. Evaluation apprehension – individuals are aware that the presence of others can be rewarding or punishing. iv. Presence of others is distracting to the individual who is trying to perform a task e. Social Loafing – f. Free rider theory g. Sucker effect 13. Individual dominance – if the leader or group member has an accurate solution to a problem the group is trying to solve, the group will probably perform at high levels. 14. Groupthink – members become so cohesive that they make poor decisions despite contrary information that might reasonably lead them to other options. a. the group leader should not state his own beliefs until decision making process b. leader should promote open discussion and encourage members to speak c. group can be separated into subgroups to increase disagreement d. devil’s advocate. INDIVIDUAL VS. GROUP PERFORMANCE  Nominal group – several people individually work on a problem but do not interact  Interacting group – several individuals interact to solve a problem  Brainstorming

TEAMS Teams work best in situations in which: A. The job requires high levels of employee interaction B. A team approach will simplify the job C. A team can do something an individual cannot D. There is time to create a team and properly train team members WORK TEAM It is a collection of three or more individuals who interact intensively to provide an organizational product, plan, decision or service. Several factors: A. Identification – group members identify with the team member than with other groups B. Interdependence – members need and desire the assistance, expertise, and opinions of the other members. Empowerment increased the performance of teams with high task interdependence but decreased performance of teams with low task interdependence. C. Power differentiation – treating others as equals and taking steps to ensure equality. Members apologize for overstepping their roles, ask indirect questions to avoid challenges and are polite to one another. D. Social Distance – by being casual, using nicknames and expressing liking, empathy and common views E. Conflict management tactics – teams respond to conflict by collaborating. They try to understand the others’ views, make attempts to compromise, and use nonthreatening tones F. Negotiation process – members negotiate in a win-win style in which the goal is for every person to come out ahead. 5 factors: a. Collaborative teams b. Emergent teams c. Adversarial teams d. Nominal teams e. Doomed teams Teams differ in two ways: Permanency – some teams are designed to work together permanently, whereas others are formed to solve a particular problem and then are expected to dissolve. Proximity Virtual teams – whose members carry out their team functions through email etc. TYPES OF TEAMS Teams differ on two major characteristics: temporal duration & product type 1. Work teams – manage themselves, assign jobs, plan and schedule work, make work-related decisions and solve workrelated problems. There would be no supervisor. Each of the production workers would be called “team member” 2. Parallel teams - cross-cultural teams, consist of representatives from various departments within an organization. For them to be successful, it is important that they have a clear purpose receive support from each functional area, and take steps to increase trust levels of committee members. 3. Project teams – produce one-time outputs such as creating a new product, installing a new software system or hiring a new employee 4. Management teams – coordinate, manage advice, and direct employees and teams HOW TEAMS DEVELOP 1. Forming stage – team members get to know each other and decide what roles each member will play 2. Storming – good behaviors disappears 3. Norming – team works toward easing tension from the storming stage 4. Performing – begins to accomplish its goals 5. Punctuated equilibrium – suggests that rather than forming in stages, teams develop direction and strategy in the first meeting. WHY TEAM DOESN’T ALWAYS WORK 1. The team is not a team 2. Excessive meeting requirements 3. Lack of empowerment 4. Lack of skill 5. Distrust of the team process 6. Unclear objective GROUP CONFLICT • CONFLICT is the psychological and behavioral reaction to a perception that another person is either keeping you from reaching a goal

PERCEPTION one of the key components to conflict. If one person perceives that their goals are different, the possibility of conflict increases • DYSFUNCTIONAL CONFLICT keeps people from working together, lessens productivity, spreads to other areas and increases turnover • FUNCTIONAL CONFLICT moderate levels of conflict can stimulate new ideas, increase friendly competition and increase team effectiveness. TYPES OF CONFLICT 1. Interpersonal conflict – between two individuals 2. Individual-group Conflict – occurs when the individual’s needs are different from the group’s needs, goals or norms 3. Group-group Conflict – occurs annually as departments fight for budget allocations and space CAUSES OF CONFLICT 1. Competition for resources 2. Task interdependence – when the performance of some group members depends on the performance of other group members 3. Jurisdictional Ambiguity – found when geographical boundaries or lines of authority are unclear 4. Communication barriers – can be physical, cultural, psychological 5. Beliefs – belief systems of individuals or groups 6. Personality – often the result of people with incompatible personalities who must work together a. Sniper – controls people by using sarcasm b. Know it all – controls others by dominating conversations, not listening to other’s ideas c. Tank – gets things done quickly by giving orders, being pushy, yelling & aggressive d. Whiner – constantly complain e. No person – believes nothing will ever work & thus disagree w/ every suggestions f. Nothing person – responds to difficult situations & doing & saying nothing- giving up g. Yes person – agrees to everything h. Maybe person – won’t commit or make decision i. Grenade person – throws tantrums j. Friendly sniper – uses jokes to pick on people k. Think they know it all – exaggerates, lies, gives advice 7. Conflict styles a. Avoiding style – ignore the conflict and hope it will resolve itself. Withdrawal. Triangling occurs when an employee discusses the conflict with a third party b. Accommodating style - when a person is so intent on settling a conflict that he gives in and risks hurting himself c. Forcing style – win-lose fashion and does what it takes to win with little regard for the person i. Winning at all costs – when a person regards his side as correct and the other person is regarded as the enemy whose side is incorrect d. Collaborating style – wants to win but also wants to see other person win e. Compromising style – adopts give and take tactics i. Negotiation and bargaining ii. Acceptable compromise Resolving conflict: Third party invention: mediation, arbitration • THIRD PARTY INVENTION – When a neutral party is asked to help resolve a conflict. • MEDIATION – A method of resolving conflict in which a neutral third party is asked to help the two parties reach an agreement. • ARBITRATION – A method of resolving conflicts in which a neutral third party is asked to choose which side is correct. •

CHAPTER 14: ORGANIZATION DEVELOPMENT Managing Change 1. Sacred cow hunts - which employees look for practices and policies that waste time and are counterproductive. a. The paper cow - Paper cows are unnecessary paperwork—usually forms and reports that cost organizations money to prepare, distribute, and read. b. The meeting cow - too many meetings or too much time spent at meetings c. The speed cow – unnecessary deadlines 2. Employee acceptance of change a. Stages:

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Denial - The first stage in the emotional reaction to change or layoffs, in which an employee denies that an organizational change or layoff will occur. ii. Defense - When employees begin to believe that change will actually occur, they become defensive and try to justify their positions and ways of doing things. iii. Discarding - change is inevitable, and it is in the best interest of the employee to discard the old ways and start to accept the change as the new reality. iv. Adaptation - employees test the new system, learn how it functions, and begin to make adjustments in the way they perform v. Internalization - employees have become immersed in the new culture, become comfortable with the new system, and accepted their new coworkers and work environment b. Important Factors: i. Type of change 1. Evolutionary - continual process of upgrading or improving processes 2. Revolutionary - “real jolt to the system” that drastically changes the way things are done ii. Reason behind the change - employees may understand that it is due to financial problems, external mandates or attempts to improve the organization. iii. Person making the change - more positive about change when the source of change is within the work group rather than an external source iv. Person being changed 1. Change agents - people who enjoy change and often make changes just for the sake of it 2. Change analysts - not afraid to change or make changes but want to make changes only if the changes will improve the organization 3. Receptive changers - A person who is willing to change. 4. Reluctant changers - A person who will initially resist change but will eventually go along with it. 5. Change resisters - person who hates change and will do anything to keep change from occurring. Implementing change a. Creating an atmosphere for change - Employees should be surveyed to determine how satisfied they are with the current system. b. Communicating details - employees should be aware of and involved in all aspects of the change, from initial planning to final implementation. i. Communicating change is hard work. ii. Training is needed iii. Two-way communication is existential. iv. Honesty is the best policy. c. Time frame - The longer it takes to change, the greater the opportunity for things to go wrong and the greater the chance that employees will become disillusioned. d. Training needs - is often necessary to train employees. Organizational culture “corporate culture” - comprises the shared values, beliefs, and traditions that exist among individuals in organizations. establishes workplace norms of appropriate behavior (what’s wrong or right) and defines roles and expectations that employees and management have of each other a. Changing culture b. Assessing the new culture: a great deal of discussion and analysis i. Needs assessment - current culture must be analyzed and compared with the desired culture to determine what might need to change. ii. Determining executive direction - Management must then analyze the needs iii. assessment to determine the decisions or actions that will reinforce the culture and to assess the feasibility of certain changes iv. Implementation considerations - how the new culture will be implemented. v. Training - all organizational members must be trained in a new philosophy for the new culture to thrive and be long-lasting. vi. Evaluation of the new culture - an evaluation mechanism must be established to review the new culture. c. Creating dissatisfaction with existing culture d. Maintaining the new culture e. Selection of employees

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Organizational socialization - The process whereby new employees learn the behaviors and attitudes they need to be successful in an organization. ii. Rituals - Procedures in which employees participate to become “one of the gang.” iii. Symbols - Organizational behaviors or practices that convey messages to employees. Empowerment - range from asking them for their opinions to giving them complete decision-making control. 1. Making the decision to empower a. Factors in making the decision to empower i. Importance of decision quality ii. Leader knowledge of the problem area iii. Structure of the problem iv. Importance of decision acceptance v. Probability of decision acceptance vi. Subordinate trust and motivation vii. Probability of subordinate conflict b. Decision-making strategies using Vroom-yetton model i. Autocratic I strategy - Leaders use available information to make a decision without consulting their subordinates. ii. Autocratic II Strategy - Leaders obtain necessary information from their subordinates and then make their own decision. iii. Consultative I strategy - Leaders share the problem on an individual basis with their subordinates and then make a decision that may or may not be consistent with the thinking of the group iv. Group I strategy - Leaders share the problem with the group and let the group reach a decision or solution. 2. Levels of employee input a. Following – employees have no real control over their jobs b. Ownership of own product - employees are still told what to do but are solely responsible for the quality of their output. c. Advisory - employees are asked to provide feedback, suggestions, and input into a variety of organizational concerns. d. Shared/participative/team - allows an employee to make a decision. e. Absolute - gives an employee the absolute authority to make a decision on his own—no group consensus, no supervisory approval. 3. Empowerment charts - A chart made for each employee that shows what level of input the employee has for each task. a. Consequences of empowerment Downsizing 1. Reducing the impact of downsizing a. Signs of problems i. Temporary employees - Also called “temps”—employees hired through a temporary employment agency. ii. Outsourcing - The process of having certain organizational functions performed by an outside vendor rather than an employee in the organization. b. Selecting the employees to be laid off c. The announcement d. Outplacement programs i. Emotional counseling 1. Denial stage - The first stage in the emotional reaction to change or layoffs, in which an employee denies that an organizational change or layoff will occur. 2. Anger stage - The second stage of emotional reaction to downsizing, in which employees become angry at the organization. 3. Fear stage - The third emotional stage following the announcement of a layoff, in which employees worry about how they will survive financially. 4. Acceptance stage - which employees accept that layoffs will occur and are ready to take steps to secure their future. ii. Financial counseling - should include the issues of severance pay, unemployment insurance, medical insurance, and any special programs that might be available to help the layoff victims. iii. Career assessment and guidance 2. Effects of downsizing a. Victims - Employees who lose their jobs due to a layoff.

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Survivors - Employees who retain their jobs following a downsizing. Local community The organizaation

Work Schedules 1. Compressed workweeks 2. Moonlighting - People moonlight because they want or need to earn extra money, and they may even enjoy the second job 3. Flexible work hours a. Flextime - A work schedule that allows employees to choose their own work hours. b. Bandwidth - The total number of potential work hours available each day. c. Core hours - The hours in a flextime schedule during which every employee must work. d. Gliding time - A flextime schedule in which employees can choose their own hours without any advance notice or scheduling. e. Flexitour or modified flexitour - A flextime schedule in which employees have flexibility in scheduling but must schedule their work hours at least a week in advance. 4. Peak-time pay - certain employees are encouraged to work only part time but are paid at a higher hourly rate for those hours than employees who work full time. 5. Job sharing - involves two employees who share their work hours. 6. Work at home a. Telecommuting - Working at home rather than at the office by communicating with managers and coworkers via phone, computer, fax machine, and other offsite media. 7. Shift work a. Circadian rhythms - the 24-hour cycles of physiological functions maintained by every person. b. Uniqueness of shift c. Fixed shifts - separate groups of employees permanently work the day shift, swing shift, and night shift d. Rotating shifts - employee rotates through all three shifts, working the day shift for a while, then switching to the swing shift, then working the night shift and so on. e. Frequency of rotation - shifts must be rotated because employees who feel stuck on swing and night shifts insist on having the opportunity to work days. f. Individual differences