Summary Book Organizational Behaviour Chapter 1 15 PDF
Summary Book Organizational Behaviour Chapter 1 15 PDF
Summary Book Organizational Behaviour Chapter 1 15 PDF
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Interpersonal roles
a. Figurehead role performing duties that are ceremonial in nature.
b. Leadership role training, motivating and disciplining employees.
c. Liaison role contacting outsiders who provide the manager with
information.
Informational roles
a. Monitor role collecting information from outside organizations and
institutions.
b. Disseminator role transmitting information to organizational members.
c. Spokesperson role representing the organization to outsiders.
Decisional roles
a. Entrepreneur role initiating and overseeing new projects that will improve
their organizations performance.
b. Disturbance handlers taking corrective action in response to unforeseen
problems.
c. Resource allocators being responsible for allocating human, physical and
monetary resources.
d. Negotiator role discussing issues and bargain with other units to gain
advantages for their own unit.
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Management skills:
Accuracy
Objectivity
Scepticism
Open-mindedness
Intuition
Gut feelings
Individual observation
Commonsense
Systematic
study
Looks at relationships
Scientific evidence
Predicts behaviours
Use evidence as much as possible to inform your intuition and experience promise of OB.
5. Identify the major behavioural science disciplines that contribute to OB.
Psychology science that seeks to measure, explain and sometimes change the behaviour of humans
and other animals.
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Social psychology area of psychology that blends concepts from psychology and sociology and
that focuses on the influence of people on one another. Change has been a major area receiving
considerable investigation how to implement it and how to reduce barriers to its acceptance.
Sociology study of people in relation to their social environment or culture.
Anthropology study of societies to learn about human beings and their activities. See page 11.
6. Demonstrate why there are few absolutes in OB.
Contingency variables situational factors: variables that moderate the relationship between two or
more other variables.
7. Identify the challenges and opportunities managers have in applying OB concepts.
Responding to globalisation:
Embracing diversity replace melting-pot assumption by one that recognises and values
differences.
Changing European demographics age and gender.
Implications workforce diversity has implications for management practice they have
to shift their philosophy from treating everyone alike to recognising differences and
responding to those differences in ways that ensure employee retention and greater
productivity, while, at the same time, not discriminating.
Improving quality and productivity excess capacity translates into increased competition, and
that is forcing managers to reduce costs and, at the same time, improve their organizations
productivity and the quality of the products and services they offer.
Improving customer service management needs to create a customer-responsive culture.
Improving people skills explain and predict the behaviour of people at work.
Stimulation innovation and change stimulate employees creativity and tolerance for change.
Coping with temporariness learn to live with flexibility, spontaneity and unpredictability.
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Working in networked organizations computerisation, the Internet, and the ability to link
computers within organizations and between organizations have created a different workplace for
many employees, so managers need to develop new skills.
Helping employees balance work-life conflicts
Creating a positive work environment to realise a competitive advantage. Positive
organizational scholarship how organizations develop human strengths, foster vitality and
resilience and unlock potential. It challenges organizations to think about how to exploit their
employees strengths rather than dwell on their limitations.
Improving ethical behaviour members of organizations are increasingly finding themselves
facing ethical dilemmas, situations in which they are required to define right and wrong conduct.
Managers need to create an ethically healthy climate for their employees, where they can do their work
productively and confront a minimal degree of ambiguity regarding what constitutes right and wrong.
8. Compare the three levels of analysis in this books OB model.
Model abstraction of reality, a simplified representation of some real-world phenomenon. Each
level is constructed on the previous level, see page 25.
Dependent variable key factor that you want to explain and that is affected by some other factor.
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Age the relationship between age and job performance is likely to be an issue of increasing
importance during the next decade for two primary reasons. First, performance declines with
increasing age. Second, the workforce is aging.
a. Age turnover the older you get, the less likely you are to quit a job.
b. Age absenteeism is partially a function of whether the absence is avoidable or
unavoidable.
c. Age productivity unrelated
d. Age satisfaction satisfaction tends to continually increase among professionals as
they age, but it falls among non-professionals during middle age and then rises again
in the later years.
Gender few issues initiate more debates, misconceptions and unsupported opinions than
whether women perform as well on jobs as men do. There is no significant difference in job
productivity between men and women. However, there is an issue that does seem to differ
between genders, namely the preference for work schedules.
Race it is in characteristics like skin tones, hair textures and other physical characteristics,
along with culture and ethnic origins, that people may use to group themselves and others into
races biological heritage people use to identify themselves. It relates to employment
outcomes such as personnel selection decision, performance evaluations, pay and workplace
discrimination.
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Employment tenure the length of time that a worker has spent with the same employer. \
a. Seniority productivity positive
b. Seniority absenteeism negative
c. Seniority turnover negative
d. Seniority job satisfaction positive
Religion is clearly having an effect in the workplace, however, there has not been a great
deal of research into these affects to date. What is known is that workers who are the victims
of religious discrimination have higher levels of health problems, absence and turnover (the
rate at which an employer gains and loses employees).
4. Define learning and outline the principles of the three major theories of learning.
If we want to explain and predict behaviour, we need to understand how people learn. Learning a
relatively permanent change in behaviour that occurs as a result of experience.
1. Learning involves change.
2. Is relatively permanent.
3. Is acquired through experience.
Theories of learning:
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Shaping behaviour systematically reinforcing each successive step that moves an individual closer
to the desired response.
There are four ways to shape behaviour:
1. Positive reinforcement following a response with something pleasant (learning)
2. Negative reinforcement following a response by the termination or withdrawal of
something unpleasant (learning)
3. Punishment causing an unpleasant condition in an attempt to eliminate an undesirable
behaviour (unlearning)
4. Extinction eliminating any reinforcement that is maintaining a behaviour (unlearning)
See page 46 for schedules of reinforcement, the two major types are:
OB Mod application of reinforcement concepts to individuals in the work setting. The typical OB
Mod programme follows a five-step problem-solving model:
1.
2.
3.
4.
5.
One problem with behaviourism is that thoughts and feelings immediately follow environmental
stimuli, even those explicitly meant to shape behaviour. This is contrary to the assumptions of
behaviourism and OB Mod, which assume that peoples innermost thoughts and feelings in response
to the environment are irrelevant.
6. Show how culture affects our understanding of intellectual abilities, biographical characteristics
and learning.
Evidence strongly supports the idea that the structure of intellectual abilities generalise across cultures.
The relationships between for example age and performance are not different across cultures.
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the importance of the attitude attitudes that individuals consider important tend to show a
strong relationship to behaviour.
its correspondence to behaviour the more closely the attitude and the behaviour are
matched or correspond, the stronger the relationship.
its accessibility attitudes we remember easily are more likely to predict our behaviour.
whether there exist social pressures discrepancies between attitudes and behaviour are
more likely to occur when social pressures to behave in certain ways hold exceptional power.
whether a person has direct experience with the attitude the attitude-behaviour relationship
is likely to be much stronger if an attitude refers to something with which the individual has
direct personal experience.
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involvement means identifying with your specific job, while high organization commitment means
identifying with your employing organization. There are three separate dimensions:
1. Affective commitment an emotional attachment to an organization and a belief in its
values.
2. Continuance commitment the perceived economic value of remaining with an
organization compared to leaving it.
3. Normative commitment an obligation to remain with an organization for moral or ethical
reasons.
The relationship between organizational commitment and job productivity is strongest for new
employees, and it is considerably weaker for more experienced employees. As with job involvement,
the research evidence demonstrates negative relationships between organizational commitment and
both absenteeism and turnover.
Perceived organizational support (POS) the degree to which employees believe an organization
values their contribution and cares about their well-being. Research shows that people perceive their
organization as supportive when rewards are deemed fair, when employees have a voice in decisions,
and when their supervisors are seen as supportive. Employees with strong POS perceptions are more
likely to have higher levels of organizational citizenship behaviours and job performance.
Employee engagement an individuals involvement and satisfaction with, and enthusiasm for, the
work he or she does. Highly engaged employees have a passion for their work and feel a deep
connection to their company, disengaged employees do not.
4. Define job satisfaction and show how it can be measured.
The two most widely used approaches to measure job satisfaction are:
Global rating a response to the question All things considered, how satisfied are you with
your job? Respondents circle a number between 1 and 5. It is not time-consuming.
Summation score made up of a number of job facets identifies key elements in a job and
asks for the employees feelings about each. Typical elements here are the nature of the work,
supervision, present pay, promotion opportunities and relations with co-workers. Respondents
rate the on a standardised scale, and researchers add the ratings to create an overall job
satisfaction score. It helps managers to zero in on where the problem exists.
The concept of job satisfaction is inherently so broad that the single question captures its essence.
5. Summarise the main causes of job satisfaction.
Of the major job-satisfaction facets, enjoying the work is almost always the one most strongly
correlated with high levels of overall job satisfaction. Interesting jobs that provide training, variety,
independence and control satisfy most employees. Jobs involving solving unforeseen problems,
performing complex tasks and learning new things have been associated with higher levels of work
satisfaction. In other words, most people prefer work that is challenging and stimulating over work
that is predictable and routine. Education, job security, job autonomy, work/life balance and employee
participation are all strongly correlated with increased job satisfaction. Good benefits do appear to
satisfy employees, but high pay levels much less so.
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Job satisfaction is not just about job conditions, personality also plays a role. People who are
emotional stable, extravert, and have positive core self-evaluations are more satisfied with their jobs
than those with negative core self-evaluations.
Core self-evaluations bottom-line conclusions individuals have about their capabilities,
competence and worth as a person.
6. Identify four employee responses to dissatisfaction.
One theoretical model, namely the exit-voice-loyalty-neglect framework, is helpful in understanding
the consequences in dissatisfaction.
Job satisfaction and job performance happy workers are more likely to be productive.
Job satisfaction and OCB it seems logical to assume that job satisfaction should be a major
determinant of an employees organizational citizenship behaviour (OCB). Satisfied employees would
seem more likely to talk positively about the organization, help others, and go beyond the normal
expectations in their job. Moreover, satisfied employees might be more prone to go beyond the call of
duty because they want to reciprocate their positive experiences. Evidence suggests that job
satisfaction is moderately correlated with OCBs, such that people who are more satisfied with their
jobs are more likely to engage in OCBs.
Job satisfaction and customer satisfaction satisfied employees increase customer satisfaction and
loyalty. The relationship also seems to apply in reverse: dissatisfied customers can increase an
employees job dissatisfaction.
Job satisfaction and absenteeism there is a consistent negative relationship between satisfaction and
absenteeism, but the correlation is moderate to weak.
Job satisfaction and turnover satisfaction is also negatively related to turnover, but the correlation
is stronger than what we found for absenteeism. Other factors, such as labour-market conditions,
expectations about alternative job opportunities and length of tenure with the organization, are
important constraints on an employees decision to leave their current job. Evidence indicates that an
important moderator of the satisfaction-turnover relationship is the employees level of performance.
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Job satisfaction and workplace deviance job dissatisfaction predicts a lot of specific behaviours
including substance abuse, stealing at work, undue socialising and tardiness. Researchers argue that
these behaviours are indicators of a broader syndrome that we would term deviant behaviour in the
workplace (or employee withdrawal). The key is that if employees dont like their work environment,
they will respond somehow. If employers want to control the undesirable consequences of job
dissatisfaction, they should attack the source of the problem, the dissatisfaction, rather than try to
control the different responses.
Despite the overwhelming evidence of the impact of job satisfaction on the bottom line, most managers
are either unconcerned about or overestimate worker satisfaction.
7. Show whether job satisfaction is an important concept globally.
It appears that similar factors cause, and result from, job satisfaction across cultures, but that doesnt
mean there are no cultural differences in job satisfaction. Evidence suggests that employees in Western
cultures have higher levels of job satisfaction than those in Eastern cultures.
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2. Describe the Myers-Briggs Type Indicator personality framework and assess its strengths and
weaknesses.
Myers-Briggs Type Indicator (MBTI) a personality test that taps four characteristics and
classifies people into 1 of 16 personality types. It is a 100-question personality test that asks people
how they usually feel or act in particular situations. The terms are defined as follows:
Extraverted (E) versus introverted (I) extraverted individuals are outgoing, sociable, and
assertive. Introverts are quiet and shy.
Sensing (S) versus intuitive (N) sensing types are practical and prefer routine and order.
They focus on details. Intuitives rely on unconscious processes and look at the big picture.
Thinking (T) versus feeling (F) thinking types use reason and logic to handle problems.
Feeling types rely on their personal values and emotions.
Judging (J) versus perceiving (P) judging types want control and prefer their world to be
ordered and structured. Perceiving types are flexible and spontaneous.
These classifications together describe 16 personality types. The MBTI can be a valuable tool for
increasing self-awareness and providing career guidance. But because results tend to be unrelated to
job performance, managers probably shouldnt use it as a selection test for job candidates.
3. Identify the key traits in the Big Five personality model.
Big Five Model a personality assessment model that taps five basic dimensions.
Extraversion a personality dimension that captures ones comfort level with relationships.
Extraverts tend to gregarious, assertive and sociable. Introverts tend to be reserved, timid and
quiet.
Agreeableness a personality dimension that refers to an individuals propensity to defer to
others. Highly agreeable people are cooperative, warm and trusting. People who score low on
agreeableness are cold, disagreeable and antagonistic.
Conscientiousness a personality dimension that measures reliability. A highly
conscientious person is responsible, organized, dependable and persistent. Those who score
low on this dimension are easily distracted, disorganized and unreliable.
Emotional stability a personality dimension taps a persons ability to withstand stress.
People with positive emotional stability tend to be calm, self-confident and secure. Those with
high negative scores tend to be nervous, anxious, depressed and insecure.
Openness to experience a personality dimension that addresses ones range of interests
and fascination with novelty. Extremely open people are creative, curious and artistically
sensitive. Those at the other end of the openness category are conventional and find comfort in
the familiar.
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performance, the other traits are related to aspects of performance in some situations. All five traits
have other implications for work and for life:
People who score high on emotional stability are happier than those who score low. Of the Big Five
traits, emotional stability is most strongly related to life satisfaction, job satisfaction and low stress
levels. One upside of low emotional stability, is that when in a bad mood, such people make faster and
better decisions than emotionally stable people in bad moods.
You might expect agreeable people to be happier than disagreeable people, and they are, but only
slightly. Agreeable individuals are less likely to engage in organizational deviance. One downside of
agreeableness is that it is associated with lower levels of career success (especially earnings). This
may occur because agreeable individuals are poorer negotiators, they are so concerned with pleasing
others that they often dont negotiate as much for themselves as do others.
Individuals who score high on openness to experience are more creative in science and in art than
those who score low. Because creativity is important to leadership, open people are more likely to be
effective leaders. Also, open individuals are more comfortable with ambiguity and change than are
those who score lower on this trait. As a result, open people cope better with organizational change
and are more adaptable in changing contexts.
Compared to introverts, extraverts tend to be happier in their jobs and in their lives as a whole. They
tend to perform better in jobs that require significant interpersonal interaction, perhaps because they
have more social skills. Extraversion is a relatively strong predictor of leadership emergence in
groups, extraverts are more socially dominant, take charge sorts of people, and they generally are more
assertive than introverts. One downside of extraversion is that extraverts are more impulsive than
introverts, they are more likely to be absent from work and engage in risky behaviour.
Conscientious people live longer than less conscientious people, because they tend to take better care
of themselves and engage in fewer risky behaviour. Still there are downsides to conscientiousness. It
appears that conscientious people, probably because theyre so organized and structured, dont adapt
as well to changing contexts. Conscientious people are generally performance-oriented They have
more trouble than less conscientious people learning complex skills early in the training process
because their focus is on performance rather than on learning. Finally, conscientious people are often
less creative than less conscientious people, especially artistically.
5. Identify other personality traits relevant to OB.
Although the Big Five traits have proven to be highly relevant to OB, they dont exhaust the range of
traits we can use to describe someones personality. Now well look at other, more specific,
personality attributes that have been found to be powerful predictors of behaviour in organizations:
Core self-evaluation the degree to which an individual likes or dislikes himself or herself,
whether the person sees himself or herself as capable and effective, and whether the person
feels in control of his or her environment or powerless over the environment. We discussed in
chapter 3 that core self-evaluations relate to job satisfaction because people with positive core
self-evaluations see more challenge in their job and actually attain more complex jobs. They
also perform better than others because they set more ambitious goals, are more committed to
their goals and persist longer at attempting to reach these goals.
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Self-monitoring a personality trait that measures an individuals ability to adjust his or her
behaviour to external, situational factors. Individuals high in self-monitoring show
considerable adaptability in adjusting their behaviour to external situations. High self-monitors
are capable of presenting striking contradictions between their public persona and their private
self. Evidence indicates that high self-monitors tend to pay closer attention to the behaviour of
others and are more capable of confirming than are low self-monitors. They also receive better
performance ratings, are more likely to emerge as leaders, and show less commitment to their
organizations. In addition, high self-monitoring managers tend to be more mobile in their
careers, receive more promotions (both internal and cross-organizational), and are more likely
to occupy central positions in an organization.
Risk taking people differ in their willingness to take chances. This propensity to assume or
avoid risk has been shown to have an impact on how long it takes managers to make a
decision and how much information they require before making a choice. High risk-taking
managers make more rapid decisions and use less information in making their choices than did
the low risk-taking managers. Interestingly, decision accuracy was the same for both groups.
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Type As do better than Type Bs in job interviews, because they are more likely to be judged
as having desirable traits such as high drive, competence, aggressiveness and success
motivation.
Proactive personality people who identify opportunities, show initiative, take action and
persevere until meaningful change occurs. Not surprisingly, proactives have many desirable
behaviours that organizations cover. Evidence indicates that proactives are more likely than
others to be seen as leaders and more likely to act as change agents within an organization.
Other actions of proactives can be positive or negative, depending on the organization and the
situation.
Although personality and values are related, theyre not the same. Values are often specific and
describe belief systems rather than behavioural tendencies. Some beliefs or values dont say much
about a persons personality, and we dont always act in ways that are consistent with our values.
6. Define values, demonstrate the importance of values and contrast terminal and instrumental values.
Values basic convictions that a specific mode of conduct or end-state of existence is personally or
socially preferable to an opposite or converse mode of conduct or end-state of existence. They contain
a judgemental element in that they carry an individuals ideas as to what is right, good or desirable.
Values have both content and intensity attributes.
The content attribute says that a mode of conduct or an end-state of existence is important.
The intensity attribute specifies how important it is.
Value system a hierarchy based on a ranking of an individuals values in terms of their intensity.
This system is identified by the relative importance we assign to values such as freedom, pleasure,
self-respect, honesty, obedience and equality.
Values are important to the study or OB because they lay the foundation for our understanding of
peoples attitudes and motivation and because they influence our perceptions. Values cloud objectivity
and rationality. Values generally influence attitudes and behaviour.
Terminal values desirable end-states of existence, the goals a person would like to achieve during
their lifetime.
Instrumental values preferable modes of behaviour or means of achieving ones terminal values.
7. Identify the dominant values in todays workforce.
Contemporary work values whilst it must be recognised that there will be significant variations
within groups, it is useful to recognise that groups tend to reflect similar values and this can be a
valuable aid in explaining and predicting behaviour.
Linking individuals personality and values to the workplace:
Personality-job fit theory a theory that identifies six personality types and proposes that
the fit between personality type and occupational environment determines satisfaction and
turnover. It presents six personality types and proposes that satisfaction and the propensity to
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leave a position depend on the degree to which individuals successfully match their
personalities to a job. The key points of this model are:
1. There do appear to be intrinsic differences in personality among individuals.
2. There are different types of jobs.
3. People in jobs congruent with their personality should be more satisfied and less likely
to voluntarily resign than people in incongruent jobs.
Power distance a national culture attribute that describes the extent to which a society
accepts that power in institutions and organizations is distributed unequally.
Individualism a national culture attribute that describes the degree to which people prefer
to act as individuals rather than as members of groups.
Collectivism a national culture attribute that describes a tight social framework in which
people expect others in groups of which they are a part to look after them and protect them.
Masculinity a national culture attribute that describes the extent to which the culture
favours traditional masculine work roles of achievement, power and control. Societal values
are characterised by assertiveness and materialism.
Femininity a national culture attribute that has little differentiation between male and
female roles, where women are treated as the equals of men in all aspects of the society.
Uncertainty avoidance a national culture attribute that describes the extent to which a
society feels threatened by uncertain and ambiguous situations and tries to avoid them.
Long-term orientation a national culture attribute that emphasises the future, thrift and
persistence.
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Short-term orientation a national culture attribute that emphasises the past and present
respect for tradition and fulfilment of social obligations.
Despite a few concerns, Hofstede has been one of the most widely cited social scientists ever, and his
framework has left a lasting mark on OB.
The GLOBE team identified nine dimensions on which national cultures differ. The main difference
with Hofstede is that it added dimensions, such as humane orientation and performance orientation.
Selective perception the tendency to selectively interpret what one sees on the basis of
ones interest, background, experience and attitudes. It allows us to speed-read others, but not
without the risk of drawing an inaccurate picture. Because we see what we want to see, we can
draw unwarranted conclusions from an ambiguous situation.
Halo effect the tendency to draw a general impression about an individual on the basis of a
single characteristic.
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In many cases, our judgements have important consequences for the organization:
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Well-defined problem
Clear criteria and criteria rating
Complete (or at least reliable) information
Stable preferences ability to identify all the relevant options in an unbiased manner.
The limited information-processing capability of human beings makes it impossible to assimilate and
understand all the information necessary to optimise. So people satisfice, that is, they seek solutions
that are satisfactory and sufficient.
Bouded rationality a process of making decisions by constructing simplified models that extract
the essential features from problems without capturing all their complexity. So the solution represents
a satisficing choice, the first acceptable one we encounter, rather than an optimal one.
Intuitive decision making an unconscious process created out of distilled experience. Its defining
qualities are that it occurs outside conscious thought: it relies on holistic associations, or links between
disparate pieces of information, it is fast, and it is affectively charged, meaning that it usually engages
the emotions. There is growing recognition that rational analysis has been overemphasised and that, in
certain instances, relying on intuition can improve decision making. But while intuition can be
invaluable in making good decisions, we cant rely on it too much. Because it is so unquantifiable, it is
hard to know when our hunches are right or wrong. The key is not to either abandon or rely solely on
intuition but to supplement it with evidence and good judgement.
Availability shortcut
Availability bias the tendency for people to base their judgements on information
that is readily available to them, leads to over or underestimation.
Anchoring bias a tendency to fixate on initial information, from which one then
fails to adequately adjust for subsequent information.
Self enhancement
Self-serving attributions
Confirmation bias the tendency to seek out information that reaffirms past
choices and to discount information that contradicts past judgements. The rational
decision-making process assumes that we objectively gather information, but we
dont. We selectively gather it.
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Randomness error the tendency of individuals to believe that they can predict the outcome of
random events. At the extreme, some decision makers become controlled by their superstitions,
making it nearly impossible for them to change routines or objectively process new information.
Winners curse a decision-making dictum which argues that the winning participants in an auction
typically pay too much for the winning item. Logic predicts that the winners curse gets stronger as the
number of bidders increases. The more bidders there are, the more likely that some of them have
greatly overestimated the goods value. So, beware of auctions with an unexpectedly large number of
bidders.
7. Explain how individual differences and organizational constraints affect decision making.
Individual differences create deviations from the rational model.
Organizations can constrain decision makers, creating deviations from the rational model.
Performance evaluation managers are strongly influenced in their decision making by the
criteria on which they are evaluated.
Reward systems influences decision makers by suggesting to them what choices are
preferable in terms of personal payoff.
Formal regulations intended to get individuals to act in the intended manner. In so doing,
they limit the decision makers choice.
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Expertise is the foundation for all creative work. The potential for creativity is enhanced when
individuals have abilities, knowledge, proficiencies, and similar expertise in their field of
endeavour.
Creative-thinking skills encompasses personality characteristics associated with creativity, the
ability to use analogies, and the talent to see the familiar in a different light.
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Intrinsic task motivation is the desire to work on something because its interesting involving,
exciting, satisfying or personally challenging. This motivational component is what turns
creativity potential into actual creative ideas.
Physiological includes hunger, thirst, shelter, sex and other bodily needs.
Safety security and protection from physical and emotional harm.
Social affection, belongingness, acceptance and friendship.
Esteem internal factors such as self-respect, autonomy and achievement, and external
factors such as status, recognition and attention.
Self-actualisation drive to become what one is capable of becoming: includes growth,
achieving ones potential and self-fulfilment.
From the standpoint of motivation, the theory would say that although no need is ever fully gratified, a
substantially satisfied need no longer motivates. So if you want to motivate someone, you need to
understand what level of the hierarchy that person is currently on and focus on satisfying the needs at
or above that level.
Lower-order needs are physiological and safety needs. Higher-order needs are social, esteem and
self-actualisation needs. The differentiation between the two orders was made on the premise that
higher-order needs are satisfied internally, whereas lower-order needs are predominantly satisfied
externally.
Alderfer attempted to rework Maslows need hierarchy to align it more closely with empirical
research. His revised need hierarchy is labelled ERG theory a theory that posits the three groups of
core needs: existence, relatedness and growth. He didnt assume that these needs existed in a rigid
hierarchy. An individual could be focusing on all three need categories simultaneously.
McGregors Theory X the assumption that employees dislike work, are lazy, dislike responsibility
and must be coerced to perform.
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McGregors Theory Y the assumption that employees like work, are creative, seek responsibility
and can exercise self-direction.
Herzberg proposed the two-factor theory also called motivation-hygiene theory a theory that
relates to intrinsic factors to job satisfaction and associates with extrinsic factors with dissatisfaction.
Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. So the
opposite of satisfaction is no satisfaction, and the opposite of dissatisfaction is no dissatisfaction.
Hygiene factors factors such as company policy and administration, supervision and salary
that, when adequate in a job, people will not be dissatisfied, neither will they be satisfied.
The criticisms of the theory include the following:
The procedure that Herzberg used is limited by its methodology. When things are going well,
people tend to credit themselves. Contrarily, they blame failure on extrinsic environment.
The reliability of Herzbergs methodology is questioned.
No overall measure of satisfaction was utilised.
Herzberg assumed a relationship between satisfaction and productivity, but the research
methodology he used looked only at satisfaction and not at productivity.
McCellands theory of needs a theory which states that achievement, power and affiliation are
three important needs that help explain motivation.
Need for achievement (nAch) the drive to excel, to achieve in relationship to a set of
standards and to strive to succeed.
Need for power (nPow) the need to make others behave in a way in which they would not
have behaved otherwise.
Need for affiliation (nAff) the desire for friendly and close interpersonal relationships.
First, when jobs have a high degree of personal responsibility and feedback and an intermediate degree
of risk, high achievers are strongly motivated. Second, a high need to achieve does not necessarily
make someone a good manager, especially in large organizations. Third, the needs for affiliation and
power tend to be closely related to managerial success. The best managers are high in their need for
power and low in their affiliation.
There are a number of contemporary theories that have a reasonable degree of valid supporting
documentation.
3. Apply the predictions of cognitive evaluation theory to intrinsic and extrinsic rewards.
Cognitive evaluation theory a theory which states that allocating extrinsic rewards for behaviour
that has been previously intrinsically rewarding tends to decrease the overall level of motivation. If
cognitive evaluation theory is correct, it would make sense to make an individuals pay noncontingent
on performance in order to avoid decreasing intrinsic motivation. Verbal extrinsic rewards increase
intrinsic motivation, whereas tangible extrinsic rewards undermine it.
Self-concordance the degree to which a persons reasons for pursuing a goal is consistent with the
persons interests and core values. People who pursue work goals for intrinsic reasons are more
satisfied with their jobs, feel like they fit into their organizations and may perform better.
4. Compare and contrast goal-setting theory and management by objectives.
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Goal/setting theory a theory which says that specific and difficult goals, with self-generated
feedback, lead to higher performance.
Three other factors have been found to influence the goals-performance relationship:
1. Goal commitment an individual is determined not to lower or abandon the goal. This means
that an individual believes that they can achieve the goal and want to achieve it.
2. Task characteristics evidence suggests that goals seem to have a more substantial effect on
performance when tasks are simple rather than complex, and independent rather than
interdependent.
3. National culture
Management by objectives (MBO) a programme that encompasses specific goals, anticipatively
set, for an explicit time period, with feedback on goal progress.
Goal specificity
Participation in decision making
Explicit time period
Performance feedback
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Thus, for employees to see a process as fair, they need to feel that they have some control over the
outcome and feel that they were given an adequate explanation about why the outcome occurred. Also,
for procedural fairness, its important that a manager is consistent, unbiased, makes decisions based on
accurate information, and is open to appeals.
Interactional justice the perceived degree to which an individual is treated with dignity, concern
and respect.
Managers can take several steps to foster employees perceptions of fairness. First, they should realise
that employees are especially sensitive to unfairness in procedures when bad news has to be
communicated. Thus, when managers have bad news to communicate, it is especially important to
openly share information about how allocation decisions are made, follow consistent and unbiased
procedures, and engage in similar practices to increase the perception of procedural justice. Second,
when addressing perceived injustices, managers need to focus their actions on the source of the
problem.
8. Compare contemporary theories of motivation.
Expectancy theory theory which says that the strength of a tendency to act in a certain way
depends on the strength of an expectation that the act will be followed by a given outcome and on the
attractiveness of that outcome to the individual. In more practical form, it says that employees will be
motivated to exert a high level of effort when they believe that effort will lead to a good performance
appraisal; that a good appraisal will lead to organizational rewards such as bonuses, salary increases or
promotions; and that the reward will satisfy the employees personal goals. It focuses on three
relationships:
1. Effort-performance relationship the probability perceived by the individual that exerting
a given amount of effort will lead to performance.
2. Performance-reward relationship the degree to which the individual believes that
performing at a particular level will lead to the attainment of a desired outcome.
3. Rewards-personal goals relationship the degree to which organizational rewards satisfy
an individuals personal goals or needs and the attractiveness of those potential rewards for the
individual.
9. Explain to what degree motivation theories are culture bound.
See page 161 for integrating contemporary theories of motivation.
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Job enlargement horizontal expansion of jobs, which increases the number and variety of tasks
that an individual performs. Job enlargement results in jobs with more diversity.
Job enrichment vertical expansion of jobs, which increases the degree to which the worker
controls the planning, execution and evaluation of the work. It organizes tasks so as to allow the
worker to do a complete activity, increases the employees freedom and independence, increases
responsibility and provides feedback so individuals will be able to assess and correct their own
performance.
A manager can enrich an employees job by:
Combining tasks takes existing and fractionalised tasks and puts them back together to form a
new and larger module of work.
Forming natural work units means that the tasks an employee does create an identifiable and
meaningful whole.
Establishing client relationships increases the direct relationships between workers and their
clients.
Expanding jobs vertically gives employees responsibilities and control that were formerly
reserved for management.
Opening feedback channels lets employees know how well they are performing their jobs and
whether their performance is improving, deteriorating or remaining at a constant level.
3. Identify three alternative work arrangements and show how they might motivate employees.
Three alternative work arrangements:
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5. Demonstrate how the different types of variable-pay programmes can increase employee
motivation.
We consider four major strategic rewards decisions that need to be made.
1. What to pay: establishing a pay structure
Pay more, and you may get better-qualified, more highly motivated employees who will stay with the
organization longer. But pay is often the highest single operating cost for an organization, which
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means that paying too much can make the organizations products or services too expensive. Its a
strategic decision an organization must make, with clear trade-offs.
2. How to pay: rewarding individual employees through variable-pay programmes
Variable-pay programme a pay plan that bases a portion of an employees pay on some
individual and/or organizational measure of performance.
Piece-rate pay plan a pay plan in which workers are paid a fixed sum for each unit of
production completed.
Merit-based pay plan a pay plan based on performance appraisal ratings.
Bonus a pay plan that rewards employees for recent rather than historical performance.
Skill-based pay (also called competency-based or knowledge-based pay) a pay plan that
sets pay levels on the basis of how many skills employees have or how many jobs they can do.
Profit-sharing plan an organization wide programme that distributes compensation based
on some established formula designed around a companys profitability.
Gain sharing a formula-based group incentive plan.
Employee stock ownership plan (ESOP) a company-established benefits plan in which
employees acquire stock, often at below-market prices, as part of their benefits.
Modular plans are predesigned packages of benefits, with each module put together to meet
the needs of a specific group of employees.
Core-plus plans consist of a core of essential benefits and a menu-like selection of other
benefit options from which employees can select and add to the core.
Flexible spending plans allow employees to set aside up to the euro amount offered in the plan
to pay for particular services.
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Emotions are reactions to a person or an event, but moods are usually not directed to a person or an
event. Emotions can turn into moods when you lose focus on the event or object that started the
feeling. And, by the same token, good or bad moods can make you more emotional in response to an
event, see page 203.
The basic emotions:
Anger
Fear
Sadness
Happiness
Disgust
Surprise
When we group emotions into positive and negative categories, they become mood states because we
are now looking at them more generally instead of isolating one particular emotion.
Positive affect a mood dimension that consists of specific positive emotions such as
excitement, self-assurance and cheerfulness at the high end and boredom, sluggishness and
tiredness at the low end.
Negative affect a mood dimension that consists of emotions such as nervousness, stress,
and anxiety at the high end and relaxation, tranquillity and poise at the low end.
Positivity offset the tendency of most individuals to experience a mildly positive mood at zero
input (when nothing in particular is going on).
2. Discuss whether emotions are rational and what functions they serve.
Emotions are critical to rational thinking. We must have the ability to experience emotions to be
rational, because our emotions provide important information about how we understand the world
around us. The key to good decision making is to employ both thinking and feeling in ones decision.
Evolutionary psychology an area of inquiry which argues that we must experience the emotions
we do because they serve a purpose.
3. Identify the sources of emotions and moods.
Some of the primary influences on moods and emotions:
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Sleep
Exercise
Age research implies that emotional experience tends to improve with age, so as we get
older, we experience fewer negative emotions.
Gender women are more emotionally expressive than are men, they experience emotions
more intensely, they tend to hold onto emotions longer, and they display more frequent
expressions of both positive and negative emotions, except anger.
Surface acting hiding ones inner feelings and forgoing emotional expressions in response to
display rules. Deals with ones displayed emotions.
Deep acting trying to modify ones true inner feelings based on display rules. Deals with ones felt
emotions.
5. Describe affective events theory and identify its applications.
Affective events theory (AET) a model which suggests that workplace events cause emotional
reactions on the part of employees, which then influence workplace attitudes and behaviours, see page
212. It offers two important messages:
1. Emotions provide valuable insights into understanding employee behaviour. The model
demonstrates how workplace hassles and uplifting events influence employee performance
and satisfaction.
2. Employees and managers shouldnt ignore emotions and the events that cause them, even
when they appear to be minor, because they accumulate.
6. Contrast the evidence for and against the existence of emotional intelligence.
Emotional intelligence (EI) the ability to detect and to manage emotional cues and information.
The arguments in favour of EI include:
Intuitive appeal people who can detect emotions in others, control their own emotions, and
handle social interactions well will have a powerful leg up in the business world.
EI predicts criteria that matter more and more evidence is suggesting that a high level of
EI means a person will perform well on the job.
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Selection employers should consider EI a factor in hiring employees, especially in jobs that
demand a high degree of social interaction.
Decision making moods and emotions have important effects on decision-making.
Creativity supervisors should actively try to keep employees happy because doing so
creates more good moods, which in turn leads to people to be more creative not proven.
Motivation organizations that promote positive moods at work are likely to have more
motivated workers.
Leadership by arousing emotions and linking them to an appealing vision, leaders increase
the likelihood that managers and employees alike will accept change.
Negotiation people who suffer damage to the emotional centres of their brains may be the
best negotiators because they are not likely to overcorrect when faced with negative outcomes.
Customer service a workers emotional state influences customer service, which
influences levels of repeat business and levels of customer satisfaction. Emotional contagion
is the process by which peoples emotions are caused by the emotions of others.
Job attitudes people who had a good day at work tend to be in a better mood at home that
evening.
Deviant workplace behaviours people who feel negative emotions are more likely than
people who dont feel negative emotions to engage in deviant behaviour at work.
Managers can use humour and give their employees small tokens of appreciation for work well done
to improve their employees moods. Also, research indicates that when leaders are in good moods,
group members are more positive, and as a result, the members cooperate more. Finally, selecting
positive team members can have a contagion effect as positive moods transmit from team member to
team member.
8. Contrast the experience, interpretation and expression of emotions across cultures.
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Command group a group composed of the individuals who report directly to a given
managers.
Task group people working together to complete a job task.
Interest group people working together to attain a specific objective with which each is
concerned.
Friendship group people brought together because they share one or more common
characteristics.
Security
Status
Self-esteem
Affiliation
Power
Goal achievement
Temporary groups with deadlines dont seem to follow the usual five-stage model. Studies indicate
that they have their own unique sequencing of actions.
1. Their first meeting sets the groups direction
2. This first phase of group activity is one of inertia
3. A transition takes place at the end of this first phase, which occurs exactly when the group has
used up half its allotted time
4. A transition initiates major changes.
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Deviant workplace behaviour, also called antisocial behaviour or workplace incivility voluntary
behaviour that violates significant organizational norms and, in so doing, threatens the well-being of
the organization or its members. Also called antisocial behaviour or workplace incivility. It is likely to
flourish where it is supported by group norms. In addition, just being part of a group can increase an
individuals deviant behaviour.
Group property 3: Status a socially defined position or rank given to groups or group members
by others, it differentiates group members.
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Status characteristics theory a theory which states that differences in status characteristics create
status hierarchies within groups. Status tends to be derived from one of three sources:
1. The power a person wields over others. Because they likely control the groups resources,
people who control the outcomes of a group through their power tend to be perceived as high
status.
2. A persons ability to contribute to a groups goals. People whose contributions are critical
to the groups success tend to have high status.
3. An individuals personal characteristics. Someone whose personal characteristics are
positively valued by the group typically has higher status than someone who has fewer valued
attributes.
5. Show how group size affects group performance.
Group property 4: Size twelve or more members is a large group, seven or less a small group.
One of the most important findings related to the size of a group has been labelled social loafing
the tendency for individuals to expend less effort when working collectively than when working
individually. There are several ways to prevent social loafing:
1. Set group goals so that the group has a common purpose to strive toward
2. Increase intergroup competition, which again focuses the group on the shared outcome
3. Engage in peer evaluation so that each persons contribution to the group is evaluated by each
group member
4. If possible, distribute group rewards, in part, based on each members unique contributions
6. Contrast the benefits and disadvantages of cohesive groups.
Group property 5: Cohesiveness the degree to which group members are attracted to each other
and are motivated to stay in the group. See relationships on page 244.
To encourage group cohesiveness, managers can:
1.
2.
3.
4.
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Whether groups are more effective than individuals depend on the criteria you use to define
effectiveness.
Accuracy group decisions are generally more accurate than the decisions of the average
individual in a group, but they are less accurate than the judgements of the most accurate
group member.
Speed individuals are superior.
Creativity groups tend to be more effective than individuals.
Acceptance the nod again goes to the group.
But effectiveness cannot be considered without also assessing efficiency. In terms of efficiency,
groups almost always stack up as a poor second to the individual decision maker.
Two by products of group decision making have the potential to affect a groups ability to appraise
alternatives objectively and to arrive at quality decision solutions:
Groupthink a phenomenon in which the norm for consensus overrides the realistic
appraisal of alternative courses of action. What can managers do to minimise groupthink?
o Monitor group size.
o Encourage group leaders to play an impartial role. Leaders should actively seek input
from all their members and avoid expressing their own opinions, especially in the
early stages of deliberation.
o Appoint one group member to play the role of devils advocate.
o Use exercises that stimulate active discussion of diverse alternatives without
threatening the group and intensifying identity protection.
8. Compare the effectiveness of interacting, brainstorming, nominal and electronic meeting groups.
Having discussed group decision making and its pros and cons, we now turn to the techniques by
which groups make decisions. These techniques reduce some of the dysfunctional aspects of group
decision making.
Interacting groups typical groups in which members interact with each other face-to-face.
Brainstorming an idea-generation process that specifically encourages any and all alternatives
while withholding any criticism of those alternatives. Research consistently shows that individuals
working alone generate more ideas than a group in a brainstorming session.
Nominal group technique a group decision-making method in which individual members meet
face-to-face to pool their judgements in a systematic but independent fashion. A problem is presented
and then the group takes the following steps:
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1. Members meet as a group, but before any discussion takes place, each member independently
writes down ideas on the problem.
2. After this silent period, each member presents one idea to the group. Each member takes a
turn, presenting a single idea, until all ideas have been presented and recorded. No discussion
takes place until all ideas have been recorded.
3. The group discusses the ideas for clarity and evaluates them.
4. Each group member silently and independently rank-orders the ideas. The idea with the
highest aggregate ranking determines the final decision.
Electronic meeting a meeting in which members interact on computers, allowing for anonymity of
comments and aggregation of votes.
9. Evaluate evidence for cultural differences in group status and social loafing, as well as the effects
of diversity in groups.
American groups (individualistic) loaf more than Chinese groups (collectivistic).
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work processes and methods can be improved; they rarely have the authority to unilaterally
implement any of their suggested actions.
2. Self-managed work teams groups of 10 to 15 people who take on responsibilities of their
former supervisors. Typically, these tasks are involved in planning and scheduling work,
assigning tasks to members, making operating decisions, taking action on problems and
working with suppliers and customers.
3. Cross-functional teams employees from about the same hierarchical level, but from
different work areas, who come together to accomplish a task.
4. Virtual teams teams that use computer technology to tie together physically dispersed
members in order to achieve a common goal. For virtual teams to be effective, management
should ensure that:
Trust is established among team members.
Team progress is monitored closely.
The efforts and products of the virtual team are publicised throughout the
organization.
The resources and other contextual influences that make teams effective.
The teams composition.
Work design.
Process variables reflect those things that go on in the team that influences effectiveness.
The four contextual factors that appear to be most significantly related to team performance are:
Adequate resources
Effective leadership especially important in multi-team systems systems in which
different teams need to coordinate their efforts to produce a desired outcome.
A climate of trust
A performance evaluation and reward system that reflects team contributions
The team composition category includes variables that relate to how teams should be staffed:
Abilities of members to perform effectively, a team requires three different types of skills:
1. Technical expertise
2. Problem-solving and decision-making skills
3. Interpersonal skills
Personality of members three of the Big Five traits are especially important for team
performance, namely conscientiousness, openness to experience and agreeableness.
Allocation of roles see page 271.
Diversity of members the key is for diverse teams to communicate what they uniquely
know and also what they dont know. Organizational demography the degree to which
members of a work unit share a common demographic attribute, such as age, sex, race,
educational level or length of service in an organization, and the impact of this attribute on
turnover.
Size of teams the most effective teams have five to nine members.
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Member preferences high performing teams are likely to be composed of people who
prefer working as part of a group.
These work design characteristics motivate because they increase members sense of responsibility
and ownership of the work and because they make the work more interesting to perform:
Freedom
Autonomy
Skill variety
Task identity
Task significance
Process variables:
Potential group effectiveness + Process gains Process losses = Actual group effectiveness
Common plan and purpose it provides direction and guidance under any and all conditions.
Effective teams also show reflexivity a team characteristic of reflecting on and adjusting
the master plan when necessary.
Specific goals must be specific, measurable, realistic and challenging.
Team efficacy teams have confidence in themselves.
Mental models team members knowledge and beliefs about how the work gets done by
the team.
Conflict levels effective teams can be characterised as having an appropriate level of
conflict, task conflicts may be helpful, interpersonal conflicts are not.
Social loafing successful teams make members individually and jointly accountable for the
teams purpose, goals, and approach.
Selection: hiring team players make team skills one of the interpersonal skills in the hire
process.
Training: creating team players individualistic people can learn.
Rewarding: providing incentives to be a good team player encourage cooperative efforts
rather than competitive (individual) ones and continue to recognize individual contributions
while still emphasizing the importance of teamwork.
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1. Can the work be done better by more than one person? A good indicator is the complexity of
the work and the need for different perspectives.
2. Does the work create a common purpose or set of goals for the people in the group that is
more than the aggregate of individual goals?
3. Are the members of the group interdependent? Using teams makes sense when there is
interdependence between tasks when the success of the whole depends on the success of
each one and the success of each one depends on the success of the others.
7. Show how the understanding of teams differ in a global context.
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3. Contrast downward, upward, and lateral communication and provide examples of each.
Communication can flow vertically or laterally. The vertical dimension can be further divided into
downward and upward directions.
Oral communication
o Advantages: speed and feedback.
o Disadvantage: the more people a message must pass through, the greater the potential
distortion and misunderstandings.
Written communication
o Advantages: often tangible and verifiable. Well thought out, logical and clear.
o Disadvantage: time-consuming and lacks feedback.
Nonverbal communication the two most important messages that body language conveys
are the extent to which an individual likes another and is interested in their views and the
relative perceived status between a sender and receiver. Intonations or emphasis we give to
words. Facial expressions also convey a meaning.The way individuals space themselves in
terms of physical distance also has a meaning.
o Advantages: supports other communications and provides observable expression of
emotions and feelings
o Disadvantage: misperception of body language or gesture can influence receivers
interpretation of message.
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E-mail uses the internet to transmit and receive computer-generated text and documents.
o Advantages: quickly written, sent, and stored, and it has low costs for distribution.
o Disadvantages:
Misinterpreting the message
Not appropriate for communicating negative messages
Overuse of e-mail
Removes inhibitions and can cause emotional responses and flaming, it is
difficult to get emotional state understood
Privacy concerns
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Networking software
Internet or web logs a website where entries are written, generally displayed in reverse
chronological order, about news, events and personal diary entries.
o Disadvantages: blogs could be construed as harmful to a companys reputation.
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Cultures tend to differ in the importance to which context influences the meaning that individuals take
from what is actually said or written in light of who the other person is.
High-context cultures cultures that rely heavily on nonverbal and subtle situational cues in
communication.
Low-context cultures cultures that rely heavily on words to convey meaning in
communication.
The following four rules can be helpful to reduce misperceptions, misinterpretations and
misevaluations when communicating with people from a different culture:
1.
2.
3.
4.
Simplicity
Unexpectedness
Concreteness
Credibility
Emotional
Stories
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Management use of authority inherent in designated formal rank to obtain compliance from
organizational members.
Organizations need strong leadership and strong management for optimal effectiveness.
Leaders to challenge the status quo, to create visions of the future, and to inspire
organizational members to want to achieve the visions coping with change.
Managers to formulate detailed plans, create efficient organizational structures and oversee
day-to-day operations coping with complexity.
Physical traits are height, gender, face, hair, age, weight etcetera. Height is related to leadership:
Initiating structure the extent to which a leader is likely to define and structure his or her
role and those of subordinators in the search for goal attainment.
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Consideration the extent to which a leader is likely to have job relationships characterised
by mutual trust, respect for subordinates ideas, and regard for their feelings.
University of Michigan studies also came up with two dimensions of leadership behaviour:
Drawing from the Ohio State and Michigan studies, Blake and Mouton proposed a managerial grid
based on the styles of concern for people and concern for production a nine-by-nine matrix
outlining 81 different leadership styles.
4. Assess contingency theories of leadership by their level of support
Leadership effectiveness is dependent on the situation and another to be able to isolate those
situational situations. Several approaches to isolating key situational variables have proven more
successful than others and, as a result, have gained wider recognition.
Fiedler contingency model theory that effective groups depend on a proper match between a
leaders style of interacting with subordinates and the degree to which the situation gives control and
influence to the leader.
Fiedler believes a key factor in leadership success is the individuals basic leadership style. So he
begins by trying to find out what that basic style is. Fiedler created the least preferred co-worker
(LPC) questionnaire for this purpose an instrument that purports to measure whether a person is
task- or relationship-oriented.
After an individuals basic leadership style has been assessed through the LPC questionnaire, it is
necessary to match the leader with the situation. Fiedler has identified three contingency dimensions
that define the key situational factors that determine leadership effectiveness:
1. Leader-member relations degree of confidence, trust, and respect subordinates have in
their leader.
2. Task structure degree to which job assignments are procedurised (structured or not)
3. Position power influence derived from ones formal structural position in the organization,
which includes power to hire, fire, discipline, promote and give salary increases.
The next step in the Fiedler model is to evaluate the situation in terms of these three contingency
variables. Task-oriented leaders perform best in situations of high and low control, while relationshiporiented leaders perform best in moderate control situations.
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Fiedler views an individuals leadership style as being fixed, therefore there are only two ways in
which to improve leader effectiveness:
There is ample evidence to support Fiedlers conclusions, but there are problems with the LPC
questionnaire and the practical use of the model:
More recently, Fiedler has reconceptualised his original theory. Cognitive resource theory a
theory of leadership which states that stress unfavourably affects a situation and that intelligence and
experience can reduce the influence of stress on the leader. It is the level of stress in the situation that
determines whether an individuals intelligence or experience will contribute to leadership
performance.
Hersey and Blanchards situational leadership theory (SLT) a contingency theory that focuses
on followers readiness.
The emphasis on the followers in leadership effectiveness reflects the reality that it is the followers
who accept or reject the leader. Readiness refers to the extent to which people have the ability and
willingness to accomplish a specific task.
Hersey and Blanchard identify four specific leader behaviours from highly directive to highly
laissez-faire.
1. If followers are unable and unwilling to do a task, the leader needs to give clear and specific
directions.
2. If followers are unable and willing, the leader needs to display high task orientation to
compensate for the followers lack of ability and high relationship orientation to get the
followers to buy into the leaders desires.
3. If followers are able and unwilling, the leader needs to use a supportive and participative style.
4. If followers are both able and willing, the leader doesnt need to do much.
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Internal ambiguities and inconsistencies in the model itself as well as problems with research
methodology in tests of the theory are reasons why the model is disappointing.
Path-goal theory a theory which states that it is the leaders job to assist followers in attaining
their goals and to provide the necessary direction and/or support to ensure that their goals are
compatible with the overall objectives of the group or organization. The term path-goal is derived
from the belief that effective leaders clarify the path to help their followers get from where they are to
the achievement of their work goals and to make the journey along the path easier by reducing
roadblocks.
House identified four leadership behaviours:
1. Directive leader lets followers know what is expected of them, schedules work to be done
and gives specific guidance as to how to accomplish tasks.
2. Supportive leader is friendly and shows concern for the needs of followers.
3. Participative leader consults with followers and uses their suggestions before making a
decision.
4. Achievement-oriented leader sets challenging goals and expects followers to perform at
their highest level.
In contrast to Fiedler, House assumes leaders are flexible and that the same leader can display any or
all of these behaviours depending on the situation.
Due to the complexity of the theory, testing
path-goal theory has not proved to be easy.
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The model is normative it provides a sequential set of rules that should be followed in determining
the form and amount of participation in decision making, as determine by different types of situations.
It is a decision tree incorporating twelve contingencies and five alternative leadership styles: page 329.
7. Assess the basic similarities and differences of leadership across Europe.
Most studies detect leadership patterns between European countries characterized by similar values
and behavior. One investigation identified three clusters:
Cluster 1 The Anglo culture (UK and Ireland) has similar values and expectations to the
US. Leadership is seen as achieving results through empowering and motivating people.
Cluster 2 Scandinavian countries share the same values as the Angelo cluster but differ in
one respect that affects their whole approach to leadership. Instead of the competitive
individualism of the Anglos, there is a concern for quality of life in general. For this cluster,
leadership is more about relationships than results.
Cluster 3 Mediterranean cluster (Greece, Italy, Spain, Portugal, Turkey, France). In these
countries, it is claimed, leaders are seen as and expected to be more powerful.
Other studies have clustered Europe into east and west and north and south:
East power differentials are expected or accepted and leaders that, for example, are born
into an influential family are valued. Autocratic style is more accepted.
West equality and achievement is highly prized, so leaders that have humble beginnings
and work their way to the top tend to be respected. Leaders have a participative style.
North leaders favor greater involvement with subordinates. Coaching leader is preferred.
South employees prefer to rely more on supervisors. Direct leader is preferred.
Personal mastery a high degree of self-awareness to monitor their own behavior, build on
their strengths and fill gaps in their competencies.
Provide organizational leadership by creating internal and external networks of influence,
including alliances and partnerships as well as formal acquisitions and mergers.
Building organizational and individual competence by seeking and using differences of
thought, style and culture around the globe.
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It is true that individuals are born with traits that make them charismatic. Research suggests that
personality is also related to charismatic leadership. Charismatic leaders are likely to be extraverted,
self-confident and achievement-oriented.
Most experts believe that individuals also can be trained to exhibit charismatic behaviors and can thus
enjoy the benefits that accompany being labeled as a charismatic leader. A person can learn to become
charismatic by following a three-step process:
1. An individual needs to develop an aura of charisma by maintaining an optimistic view, using
passion as a catalyst for generating enthusiasm, and communicating with the whole body, not
just with words.
2. An individual draws others in by creating a bond that inspires others to follow.
3. The individual brings out the potential in followers by tapping into their emotions.
Charismatic leaders influence followers via a four-step process:
1. Articulating an appealing vision a long-term strategy for attaining a goal or goals. The
vision provides a sense of continuity for followers by linking the present with a better future
for the organization. A vision is incomplete unless it has an accompanying vision statement
a formal articulation of an organizations vision or mission.
2. Communicating high performance expectations and expressing confidence that followers can
attain them. This enhances follower self-esteem and self-confidence.
3. Conveying, through words and actions, a new set of values and, by his or her behavior, setting
an example for followers to imitate.
4. Engaging in emotion-inducing and often unconventional behavior to demonstrate courage and
convictions about the vision. There is an emotional contagion in charismatic leadership
whereby followers catch the emotions their leader is conveying.
A review of various definition finds that a vision differs from other forms of direction setting in
several ways:
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A vision has a clear and compelling imagery that offers an innovative way to improve, which
recognizes and draws on traditions, and connects to actions that people can take to realize change.
Vision taps peoples emotions and energy. Properly articulated, a vision creates the enthusiasm that
people have for sporting events and other leisure-time activities, bringing this energy and commitment
to the workplace.
The key properties of a vision seem to be inspirational possibilities that are value centered, realizable,
with superior imagery and articulation.
Visions should be able to create possibilities that are inspirational and unique and that offer a
new order that can produce organizational distinction.
A vision is likely to fail if it doesnt offer a view of the future that is clearly and demonstrably
better for the organization and its members.
Desirable visions fit the times and circumstances and reflect the uniqueness of the
organization.
People in the organization must also believe that the vision is attainable. It should be
perceived as challenging yet doable.
Also, visions have that clear articulation and powerful imagery are more easily grasped and
accepted.
Charisma may not always be generalizable, its effectiveness may depend on the situation. Charisma
appears to be most successful when the followers task has an ideological component and the
environment involves a high degree of stress and uncertainty.
Another situational factor limiting charisma appears to be the level in the organization. It probably
has more direct relevance to explaining the success and failures of chief executives than of lower-level
management, because the visions tend to be created by top executives. Lower-level managers can
create visions to lead their units, but it is just harder to define such visions and align them with the
larger goals of the organization as a whole.
Charismatic leadership may affect some more followers than others. People are especially receptive to
charismatic leadership when they sense a crisis, when they are under stress or when they fear for their
lives. Some peoples personalities are especially susceptible to charismatic leadership.
Unfortunately, charismatic leaders who are larger-than-life dont necessarily act in the best interest of
their organization. Many of these leaders used their power to remake their companies in their own
image. The perils of this ego-driven charisma at is worst are leaders who allow their self-interest and
personal goals to override the goals of the organization.
Level-5 leaders leaders who are fiercely ambitious and driven but whose ambition is directed
toward their company rather than themselves. They have four basic leadership qualities:
1.
2.
3.
4.
5.
Individual capability
Team skills
Managerial competence
Ability to stimulate others to high performance
Plus a fifth dimension: a paradoxical blend of personal humility and professional will.
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4. Define authentic leadership and show why ethics and trust are vital to effective leadership.
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Although charismatic leadership theories and transformational leadership theories have added greatly
to our understanding of effective leadership, they do not explicitly deal with the role of ethics and
trust.
Authentic leaders leaders who know who they are, know what they believe in and value, and act
on those values and beliefs openly and candidly. Their followers would consider them to be ethical
people. The primary quality, therefore, produced by authentic leadership is trust. They share
information, encourage open communication and stick to their ideals.
It is a promising way to think about ethics and trust in leadership because it focuses on the moral
aspects of being a leader. Transformational or charismatic leaders can have a vision, and communicate
it persuasively, but sometimes the vision is wrong, or the leader is more concerned with his own needs
or pleasures.
Unethical leaders are more likely to use their charisma to enhance power over followers, directed
toward self-serving ends. Ethical leaders are considered to use their charisma in a socially constructive
way to serve others.
Leadership effectiveness needs to address the means a leader uses in trying to achieve goals, as well as
the moral content of those goals. Socialised charismatic leadership a leadership concept that
states that leaders convey values that are other-centred versus self-centred and who role model ethical
conduct.
Trust a positive expectation that another will not act opportunistically. The two most important
elements of this definition are that it implies familiarity and risk.
The term opportunistic refers to the inherent risk and vulnerability in any trusting relationship. Trust
involves making oneself vulnerable as when, for example, we disclose intimate information or rely on
anothers promises. By its very nature, trust provides the opportunity for disappointment or to be taken
advantage of. But trust is not taking risk per se, rather it is a willingness to take risk.
The five key dimensions that underlie the concept of trust are:
1. Integrity honesty and truthfulness.
2. Competence encompasses an individuals technical and interpersonal knowledge and skills.
3. Consistency relates to an individuals reliability, predictability and good judgment in
handling situations.
4. Loyalty the willingness to protect and save face for another person.
5. Openness
Part of leaders task has been, and continues to be, working with people to find and solve problems,
but whether leaders gain access to the knowledge and creative thinking they need to solve problems
depends on how much people trust them. Trust and trust-worthiness modulate the leaders access to
knowledge and cooperation.
There are three types of trust in organizational relationships:
Deterrence-based trust trust based on fear of reprisal if the trust is violated. It will work only to
the degree that punishment is possible, consequences are clear, and the punishment is actually imposed
if the trust is violated. Inconsistent behavior is likely to irrevocably break the trust.
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Knowledge-based trust trust based on behavioral predictability that comes from a history of
interaction. It exists when you have adequate information about someone to understand them well
enough to be able to accurately predict is or her behavior. Trust is not necessarily broken by
inconsistent behavior.
Identification-based trust trust based on a mutual understanding of each others intentions and
appreciation of each others wants and desires. Trust exists because the parties understand each others
intentions and appreciate each others wants and desires. This mutual understanding is developed to
the point that each can effectively act for the other. Controls are minimal at this level.
Some principles for better understanding the creation of both trust and mistrust:
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Certain individual, job and organizational variables can act as substitutes for leadership or neutralize
the leaders influence on their followers. Neutralizers make it impossible for leader behavior to make
any difference to follower outcomes. They negate the leaders influence. Substitutes, however, make a
leaders influence not only impossible but also unnecessary. They act as a replacement for the leaders
influence.
It is important to recognize explicitly that leadership is just another independent variable in our overall
OB model. The validity of substitutes and neutralizers is controversial.
8. Explain how to find and create effective leaders.
9. Assess whether charismatic and transformational leadership generalize across cultures.
A number of the elements making up transformational leadership appear to be associated with
effective leadership, regardless of what country the leader is in. This conclusion is very important
because it flies in the face of the contingency view that leadership style needs to adapt to cultural
differences.
Vision, foresight, providing encouragement, trustworthiness, dynamism, positiveness and
proactiveness are the elements of transformational leadership that appear universal. The result led two
members of the GLOBE team conclude that effective business leaders in any country are expected by
their subordinates to provide a powerful and proactive vision to guide the company into the future,
strong motivational skills to stimulate all employees to fulfill the vision, and excellent planning skills
to assist in implementing the vision.
Goal compatibility power does not require goal compatibility, merely dependence.
Leadership, on the other hand, requires some congruence between the goals of the leader and
those being led.
Direction of influence Leadership focuses on the downward influence on ones followers.
It minimises the importance of lateral and upward influence patterns. Power does not.
Research emphasis Leadership research, for the most part, emphasises style. In contrast,
the research on power has tended to encompass a broader area and to focus on tactics for
gaining compliance. It has gone beyond the individual as the exerciser of power because
power can be used by groups as well as by individuals to control other individuals or groups.
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Formal power is based on an individuals position in an organization. It can come from the
ability to coerce or reward, or it can come from formal authority.
Coercive power a power base that is dependent on fear. If you can remove
something of positive value from another or inflict something of negative value, you
have coercive power over that person.
Reward power compliance achieved based on the ability to distribute rewards that
others view as valuable. If you can give someone something of positive value or
remove something of negative value, you have reward power over that person.
Legitimate power the power a person receives as a result of his or her position in
the formal hierarchy of an organization. Positions of authority include coercive and
reward powers. Legitimate power, however, is broader than the power of coerce and
reward. Specifically, it includes acceptance by members in an organization of the
authority of a position.
The personal sources of power are most effective. Both expert and referent power are positively
related to employees satisfaction with supervision, their organizational commitment and their
performance, whereas reward and legitimate power seem to be unrelated to these outcomes. Moreover,
one source of formal power, coercive power, actually can backfire in that it is negatively related to
employee satisfaction and commitment.
The greater Bs dependency on A, the greater the power A has over B. If you an create a monopoly by
controlling information, prestige, or anything else that others crave, they become dependent on you.
Conversely, the more that you can expand your options, the less power you place in the hands of
others.
Dependency is increased when the resource you control is important, scarce and non-substitutable.
3. Identify nine power or influence tactics and their contingencies.
Power tactics ways in which individuals translate power bases into specific actions. Research has
identified nine distinct influence tactics:
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Consultation increasing the targets motivation and support by involving him or her in
deciding how the plan or change will be accomplished.
Exchange rewarding the target with benefits or favours in exchange for following a
request.
Personal appeals asking for compliance based on friendship or loyalty.
Ingratiation using flattery, praise, or friendly behaviour prior to making a request.
Pressure using warnings, repeated demands and threats.
Coalitions enlisting the aid of other people to persuade the target or using support of others
as a reason for the target to agree.
Some tactics are more effective than others. Specifically, evidence indicates that rational persuasion,
inspirational appeals and consultation tend to be the most effective. On the other hand, pressure tends
to frequently backfire and is typically the least effective of the nine tactics. See page 378 for the
preferred power tactics by influence direction.
It has been found that using a single soft tactic is more effective than using a single hard tactic and that
combining two soft tactics or a soft tactic and rational persuasion is more effective than any single
tactic or a combination of hard tactics.
Political skill the ability to influence others in such a way as to enhance ones objectives.
Politically skilled are more effective in their use of influence tactics, regardless of the tactics
theyre using.
More effective when the stakes are high.
Politically skilled are able to exert their influence without others detecting it, which is a key
element in being effective.
Individual factors
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High self-monitors
Internal locus of control are more prone to take a proactive stance and attempt to
manipulate situations in their favour.
High Mach personality is comfortable using politics as a means to further his or
her self-interest.
Organizational investment the more a person has invested in the organization in
terms of expectations of increased future benefits, the more that person has to lose if
forced out and the less likely he or she is to use illegitimate means.
Perceived job alternatives the more alternative job opportunities an individual has,
the ore likely that individual is to risk illegitimate political actions.
Expectations of success if an individual has a low expectation of success in using
illegitimate means, it is unlikely that he or she will attempts to do so.
Organizational factors
Reallocation of resources decline of resources results in employees to engage in
political actions to safeguard what they have.
Promotion opportunities
Low trust
Role ambiguity
Unclear performance evaluation system the greater the likelihood that an employee
can get away with politicking.
Zero-sum reward practices
Democratic decision making
High performance pressures employees will do whatever is necessary to make sure
the numbers come out favourably.
Self-serving senior managers
Incompatibility of goals
Differences over interpretations of facts
Disagreements based on behavioural expectations
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2. Differentiate between the traditional, human relations and interactionist views of conflict.
Traditional view of conflict the belief that all conflict is harmful and must be avoided. It was seen
as a dysfunctional outcome resulting from poor communication, a lack of openness and trust between
people and the failure of managers to be responsive to the needs and aspirations of their employees.
Human relations view of conflict the belief that conflict is a natural and inevitable outcome in any
group.
Interactionist view of conflict the belief that conflict is not only a positive force in a group but that
it is also an absolute necessity for a group to perform effectively.
The interactionist view does not propose that all conflicts are good.
Functional conflict conflict that supports the goals of the group and improves its
performance.
Dysfunctional conflict conflict that hinders group performance.
There are three types of conflict that differentiate functional conflict from dysfunctional conflict:
1. Task conflict conflict over content and goals of the work.
2. Relationship conflict conflict based on interpersonal relationships.
3. Process conflict conflict over how work gets done.
Relationship conflict is almost always dysfunctional, because it increases personality clashes and
decreases mutual understanding, which hinders the completion of organizational tasks.
Low levels of process conflict and low to moderate levels of task conflict are functional, because it
stimulates discussion of ideas that helps groups perform better.
Minority dissent a minority disagrees with a majority task conflict. This has positive effects for
decision quality, because it stimulates independent thinking.
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Less polarization
Less confirmation bias
Divergent thinking and higher complexity
Being confronted with majority leads to tension, because on average people dont prefer being
a minority.
Try to verify point of view of majority.
Try to justify point of view of majority.
Confirming to point of view with majority (even without
fully understanding it)
Communication represent the opposing forces that arise from semantic difficulties,
misunderstandings and noise in the communication channels.
Structure size, degree of specialisation in the tasks assigned to group members,
jurisdictional clarity, member-goal compatibility, leadership styles, reward systems and the
degree of dependence between groups.
Personal variables personality, emotions and values.
2. Stage II: Cognition and personalisation.
If the conditions cited in Stage I negatively affect something that one party cares about, then the
potential for opposition or incompatibility becomes actualised in the second stage.
Perceived conflict awareness by one or more parties of the existence of conditions that create
opportunities for conflict to arise.
Felt conflict emotional involvement in a conflict that creates anxiety, tenseness, frustration or
hostility.
3.
Intentions decisions to act in a given way. Behaviour does not always accurately reflect a persons
intentions.
Using two dimensions cooperativeness (the degree to which one party attempts to satisfy the other
partys concerns) and assertiveness (the degree to which one party attempts to satisfy their own
concerns) five conflict-handling intentions can be identified:
Competing a desire to satisfy ones interests, regardless of the impact on other party to the conflict.
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Collaborating a situation in which the parties to a conflict each desire to satisfy fully the concerns
of all parties.
Avoiding the desire to withdraw from or suppress a conflict.
Accommodating the willingness of one party in a conflict to place the opponents interests above
their own.
Compromising a situation in which each party to a conflict is willing to give up something.
Intentions are not fixed. During the course of a conflict, they might change because of
reconceptualization or because of an emotional reaction to the behaviour of the other party. However,
people have an underlying disposition to handle conflicts in certain ways.
4. Stage IV: Behaviour
The behaviour state includes the statements, actions and reactions made by the conflicting parties.
Conflict management the use of resolution and stimulation techniques to achieve the desired level
of conflict, see page 407.
5. Stage V: Outcomes
The action-reaction interplay between the conflicting parties results in consequences.
Conflict is constructive when it improves the quality of decisions, stimulates creativity and innovation,
encourages interest and curiosity among group members, provides the medium through which
problems can be aired and tensions released, and fosters an environment of self-evaluation and change.
The destructive consequences of conflict on a groups or an organizations performance: uncontrolled
opposition breeds discontent, which acts to dissolve common ties and eventually leads to the
destruction of the group.
4. Define negotiation.
Negotiation a process in which two or more parties exchange goods or services and attempt to
agree on the exchange rate for them.
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negotiators aspiration range, there exists a settlement range in which each ones aspirations can be
met.
Dawsons Gambits:
Integrative bargaining negotiation that seeks one or more settlements that can create a win/win
solution. The conditions include two parties who are open with information and candid about their
concerns, a sensitivity by both parties to the others needs, the ability to trust one another, and a
willingness by both parties to maintain flexibility. Problem-solving:
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Personality it appears that several of the Big Five traits are related to negotiation outcomes.
Mood/emotions in distributive negotiations it appears that negotiators who show anger
negotiate better outcomes, because their anger induces concessions from their opponents. In
integrative negotiations positive moods and emotions appear to lead to more integrative
agreements, because positive moods are related to creativity.
Gender men and women do not negotiate differently, but gender does affect negotiation
outcomes.