THE UNIVERSITY OF ZAMBIA

INSTITUTE OF DISTANCE EDUCATION

BACHELOR OF ARTS (B.A)

PUBLIC ADMINISTRATION

PAM 3020 - ORGANISATIONAL BEHAVIOUR AND

MANAGEMENT

INDIVIDUAL PROCESSES AND BEHAVIOUR

(MODULE TWO)
 © Copyright

All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic or mechanical, including
photocopying, recording or otherwise without the permission of the University of Zambia,
Institute of Distance Education.

Inquiries concerning reproduction or rights and requests for additional training materials
should be addressed to:

The Director,

Institute of Distance Education

The University of Zambia

P.O. Box 32379

Lusaka

Zambia

Cell: +260978772249

E-mail: director-ide@[Link]

Website: [Link]

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 Acknowledgements

The University of Zambia (UNZA), Institute of Distance Education (IDE) wishes to thank
Mr. Moses Chewe for writing module two (Individual Processes and Behaviour) for students
taking PAM 3020 (Organisational Behaviour and Management).

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 Module Structure

The module is divided into EIGHT units. Each unit addresses some of the learning
outcomes. You will be asked to complete various tasks so that you can demonstrate your
competence in achieving the learning outcomes.

UNIT ONE: INDIVIDUAL PROCESSES AND WORK ATTITUDES

UNIT TWO: EMOTIONS AND MOODS

UNIT THREE: PERCEPTION AND ATTRIBUTION

UNIT FOUR: WORK RELATED STRESS

UNIT FIVE: PERSONALITY AND VALUES

UNIT SIX: CONTENT THEORIES OF MOTIVATION

UNIT SEVEN: PROCESS THEORIES OF MOTIVATION

UNIT EIGHT: REINFORCEMENT AND MOTIVATION

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Table of Contents
© Copyright.............................................................................................................................................i
Acknowledgements................................................................................................................................ii
Module Structure..................................................................................................................................iii
Module Introduction............................................................................................................................ix
Module Aim............................................................................................................................................x
Module Objectives.................................................................................................................................x
Time Frame............................................................................................................................................x
Study Skills.............................................................................................................................................x
Need help?.............................................................................................................................................xi
Assessment............................................................................................................................................xii
Continuous Assessment: ................................................................................................................xii
Prescribed Readings............................................................................................................................xii
Recommended Readings.....................................................................................................................xii

UNIT ONE: INDIVIDUAL PROCESSES AND WORK ATTITUDES.............................1

1.1 Introduction..........................................................................................................................1
1.2 Unit Aim...............................................................................................................................1
1.3 Learning Outcomes..............................................................................................................1
1.4 Time Required......................................................................................................................1
1.5 Overview of Individual Behaviour.......................................................................................1
1.6 MARS Model of Individual Behaviour and Results............................................................2
1.7 Individual Differences and Change......................................................................................3
1.8 Individual Attitudes..............................................................................................................3
1.9 Other Job Related Attitudes/Values.....................................................................................7
1.10 Job Satisfaction: Meaning and Nature...............................................................................8
1.11 Job Design, Job Redesign and Job Satisfaction...............................................................10
1.12 How Employees Can Express Dissatisfaction.................................................................12
1.13 Job Satisfaction and Job Performance..............................................................................14
1.14 Job Satisfaction and Organisational Citizenship Behaviour (OCB)................................14
1.15 Job Satisfaction and Customer Satisfaction.....................................................................14
1.16 Job Satisfaction and Absenteeism....................................................................................15
1.17 Job Satisfaction and Turnover..........................................................................................15
1.18 Job Satisfaction and Workplace Deviance.......................................................................15

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1.19 Activity.............................................................................................................................16
1.20 Unit Summary..................................................................................................................16
1.21 Required Resources..........................................................................................................17

UNIT TWO: EMOTIONS AND MOODS.........................................................................................18

2.1 Introduction........................................................................................................................18
2.2 Unit Aim.............................................................................................................................18
2.3 Learning Outcomes............................................................................................................18
2.4 Time Required....................................................................................................................18
2.5 Emotions: Meaning and Nature.........................................................................................18
2.6 Basic Emotions...................................................................................................................20
2.7 Affect and Mood in Organisations.....................................................................................21
2.8 Sources of Emotions and Moods........................................................................................21
2.9 Emotional Labour...............................................................................................................23
2.10 Emotional Intelligence (EI)..............................................................................................25
2.11 Activity.............................................................................................................................25
2.12 Unit Summary..................................................................................................................26
2.13 Required Resources..........................................................................................................26

UNIT THREE: PERCEPTION AND ATTRIBUTION...................................................................27

3.1 Introduction........................................................................................................................27
3.2 Unit Aim.............................................................................................................................27
3.3 Learning Outcomes............................................................................................................27
3.4 Time Required....................................................................................................................27
3.5 Perception: Meaning and Nature........................................................................................27
3.6 Factors Affecting Perception..............................................................................................28
3.7 Attribution Theory and Perception.....................................................................................29
3.8 Attribution Errors...............................................................................................................30
3.9 Common Shortcuts in Judging Others/ Situations (Perceptual Errors)..............................31
3.10 Consequences of Perceptual Errors in Organisations......................................................33
3.11 Perception and Individual Decision Making....................................................................34
3.12 Common Biases and Errors in Decision Making.............................................................36
3.13 Activity.............................................................................................................................38

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3.14 Unit Summary..................................................................................................................39
3.15 Required Resources..........................................................................................................39

UNIT FOUR: WORK RELATED STRESS.....................................................................................41

4.1 Introduction........................................................................................................................41
4.2 Unit Aim.............................................................................................................................41
4.3 Learning Outcomes............................................................................................................41
4.4 Time Required....................................................................................................................41
4.5 Meaning of the term Stress................................................................................................41
4.6 General Adaptation Syndrome (GAS)...............................................................................42
4.7 Causes of Stress (Stressors)...............................................................................................44
4.8 Individual Differences in Stress.........................................................................................46
4.9 Negative Consequences of Stress.......................................................................................47
4.10 Coping with Stress/ Stress Management..........................................................................48
4.11 Activity.............................................................................................................................50
4.12 Unit Summary..................................................................................................................51
4.13 Required Resources..........................................................................................................51

UNIT FIVE: PERSONALITY AND VALUES.................................................................................52

5.1 Introduction........................................................................................................................52
5.2 Unit Aim.............................................................................................................................52
5.3 Learning Outcomes............................................................................................................52
5.4 Time Required....................................................................................................................52
5.5 What is Personality?...........................................................................................................53
5.6 Determinants of Personality...............................................................................................55
5.7 Personality Traits...............................................................................................................56
5.8 Other Personality Traits.....................................................................................................59
5.9 Understanding Values........................................................................................................63
5.10 Espoused and Enacted Values..........................................................................................64
5.11 Importance of Values.......................................................................................................64
5.12 Terminal versus Instrumental Values...............................................................................65
5.13 Generational Values.........................................................................................................65
5.14 Linking an Individual’s Personality and Values in the Workplace..................................67

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5.15 International Values/ Values across Cultures..................................................................68
5.16 Activity.............................................................................................................................69
5.17 Unit Summary..................................................................................................................70
5.18 Required Resources..........................................................................................................71

UNIT SIX: CONTENT THEORIES OF MOTIVATION...............................................................72

6.1 Introduction........................................................................................................................72
6.2 Unit Aim.............................................................................................................................72
6.3 Learning Outcomes............................................................................................................72
6.4 Time Required....................................................................................................................72
6.5 Definition of Motivation....................................................................................................72
6.6 Money as a Motivator........................................................................................................73
6.7 Content Theories of Motivation.........................................................................................74
6.8 Activity...............................................................................................................................86
6.9 Unit Summary....................................................................................................................87
6.10 Required Resources..........................................................................................................88

UNIT SEVEN: PROCESS THEORIES OF MOTIVATION..........................................................89

7.1 Introduction........................................................................................................................89
7.2 Unit Aim.............................................................................................................................89
7.3 Learning Outcomes............................................................................................................89
7.4 Time Required....................................................................................................................89
7.5 Process Theories of Motivation.........................................................................................89
7.6 Activity.............................................................................................................................100
7.7 Unit Summary..................................................................................................................101
7.8 Required Resources..........................................................................................................101

UNIT EIGHT: REINFORCEMENT AND MOTIVATION.........................................................102

8.1 Introduction......................................................................................................................102
8.2 Unit Aim...........................................................................................................................102
8.3 Learning Outcomes..........................................................................................................102
8.4 Time Required..................................................................................................................102
8.5 Reinforcement: Meaning and Nature...............................................................................102

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8.6 Kinds of Reinforcement in Organisations........................................................................104
8.7 Schedules of Reinforcement............................................................................................105
8.8 Motivation through Employee Recognition.....................................................................106
8.9 Motivation through Involvement and Empowerment......................................................106
8.10 Techniques and Issues in Empowerment.......................................................................107
8.11 Motivation through Alternative Forms of Work Arrangements....................................108
8.12 Using Reward Systems to Motivate Performance.........................................................110
8.13 Activity...........................................................................................................................113
8.14 Unit Summary................................................................................................................113
8.15 Required Resources........................................................................................................114

MODULE SUMMARY.....................................................................................................................115

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Module Introduction

Welcome to the module on Individual Processes and Behaviour. Having gone through
Module One, this is a second step in understanding OB.

Therefore, we can rightly state that no organisation can ever achieve anything without people
as they are the ones that engage in daily work activities which enable organisations become
productive. Even if society became highly automated, people would still be relevant to
organisations because machines would need to be programmed, controlled and repaired. In
addition, human beings possess unique qualities that are absent in machines such as
“thinking” and the use of common sense which are critical to decision making and
pragmatism in the ever changing business environment. However, the people who work in
organisations come from different backgrounds and hence have dissimilar behaviours. It is
this dissimilar behaviour exhibited in organisations that OB is concerned with.

Behaviour plays an important role in determining how individuals will conduct themselves in
an organisation, particularly how they will execute the duties and responsibilities given to
them. This will eventually have an impact on the success of the organisation as a whole
because if the behaviour of individuals is in line with the goals and values of the organisation,
then an organisation is more likely to be successful. However, if the behaviour of the
employees is not in line with the goals and values of the organisation, then success might be
hard to achieve.

Therefore, this module intends to help you understand how the behaviour of people affects
the organisation and how managers can shape employees’ behaviour in order for them to
align with organisational goals and values. In order to effectively handle this task, the module
has been divided into eight units. Unit 1 introduces the basic individual processes that
influence behaviour of people in organisations. Unit 2 identifies and discusses the individual
attitudes and values that affect work in an organisation. Unit 3 discusses perception and
attribution while Unit 4 explains work related stress. Unit 5 outlines the concept and theories
of personality. Units 6 and 7 discuss the content and process theories of motivation,
respectively. Lastly, Unit 8 looks at the concept of reinforcement and how it can be used to
motivate individuals and groups in organisations.

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Module Aim
The aim of this module is to expose you to individual processes that influence the behaviour
of individuals in organisations.

Module Objectives
By the end of the module, you should be able to:
i) Identify, describe and explain the basic individual processes that influence individual
behaviour in organisations
ii) Outline how work related attitudes and values affect the behaviour of individuals in
organisations
iii) Discuss the basic perceptual process, attribution and stress and how they affect work
iv) Identify, describe and explain the major personality traits and theories that influence
behaviour in organisations
v) Discuss the content and process theories of motivation
vi) Explain the concept and theories of reinforcement and state how reinforcement can be
used to motivate people in organisations

Time Frame

You are expected to spend at least sixty (60) hours studying this module. In addition, there
shall be arranged contacts with lecturers from the University from time to time during the
course. You are requested to spend your time judiciously so that you reap maximum benefit
from the course. The time should be spent on studying the module, readings, doing the
activities and self-help questions, completing continuous assessment tasks, and the final
examination.

Study Skills

As a distance student, your study skills will be different from students that are resident at the
University. In your case, you will choose what to study, when to study and where to study
from on your own. You will also need to fit your study activities around other professional
and/or domestic responsibilities. It is therefore important for you to allocate enough time to

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your studies and secure a conducive place to study from. Here are some simple tips for you to
follow which will help you do better in your learning and keep you focused:
1. Set goals such as: I will succeed in this course. At the beginning of the module,
break the lessons into manageable chunks. You might not have time to do a full
lesson in one night, so plan how much you can do, then stick to it until you are
done.
2. Establish a regular study/learning schedule
3. Determine what time is best for you to study
4. Have a dedicated study place with all the supplies you might need
5. Tell people what you are doing because only then are you more likely to stick to
a course.
6. Ask someone to proofread your work before you submit it.
7. Reward yourself with whatever work for you, along the way.
8. If you do not understand something ask your local learning centre or your tutor,
who will be able to help you.
9. Search for the meaning of principles and concepts instead of just memorizing.

You can also visit the following websites for more information on how to study:
[Link]
[Link]
[Link]

Need help?

In case you have difficulties during the duration of the course, please get in touch with the
Director, Institute of Distance Education, or the resident lecturer in your province.

All enquiries in connection with the payment of fees should be directed to the Director,
Institute of Distance Education:

The Director,
Institute of Distance Education,
University of Zambia,
P. O. Box 32379,
10101 Lusaka

Cell Line: +260978772249

Email: [Link]@[Link]
Website: [Link]

xi
Assessment

Your work in this module will be assessed according to the following:

Continuous Assessment: 50%

2 tests - 15% each

2 essays - l0% each

Final Examination: 50%

Total: 100%

Prescribed Readings

McShane S., M. Von Glinow (2009) Organisational Behaviour. 5th Edition. McGraw Hill.

Mullins Laurie J. (2007). Management and Organisational Behaviour. 7th Edition. London,
Pearson Education.

Nelson Debra L., James C. Quick (2008). Understanding Organisational Behaviour. 3rd
Edition. USA, Thomson South-Western.

Robbins Stephen P., Timothy A Judge. (2012). Organisational Behaviour. 15th Edition.
Prentice Hall.

Recommended Readings

Gibson J.L, J.M. Ivancevich, [Link], R. Konopaske (2009). Organisations: Behaviour,

Structure, Processes. 13th Edition. New York, McGraw Hill.

Blunt P. & Jones N. (1992). Managing Organisations in Africa. Berlin, Gruyter.

Griffin Ricky W (2002).Management. Boston, Houghton Mifflin Company.

Apart from this module and module I, you are expected to read widely around all the topics
covered in the modules. You may find the references provided at the end of the module
useful, but you could also explore other sources of information, particularly the internet
which has a lot of websites with invaluable information.

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 UNIT ONE: INDIVIDUAL PROCESSES AND WORK ATTITUDES

1.1 Introduction
Welcome to Unit One of this module. In this unit, you will be introduced to individual
processes and work attitudes. This unit discusses one of main components of OB which deals
with individual processes and behaviour. The unit begins by giving an overview of individual
behaviour followed by an outline of the MARS Model. The unit then goes on to look at the
Individual Differences and Change; Individual Attitudes and Work Related Attitudes, and;
Job Design and Job Satisfaction.

1.2 Unit Aim

The aim of this unit is to help you understand the individual processes, work attitudes and
behaviour.

1.3 Learning Outcomes

By the end of this unit, you should be able to:

i) Explain the MARS model of individual behaviour
ii) Outline the major individual differences in the work place
iii) Identify, describe and explain the values that influence behaviour in organisations
iv) State the linkages between personality and values at work
v) Identify, describe and explain the international values or values across cultures that
influence behaviour in modern day organisations

1.4 Time Required

It will take you approximatelysix (6) hours to work through this unit.

1.5 Overview of Individual Behaviour

According to Mullins (2010:129- 130), “the individual is a central feature of organisational
behaviour, whether acting in isolation or as part of a group. Where the needs of the individual
and the demands of the organisation are incompatible, this can result in frustration and
conflict. It is the task of management to integrate the individual and the organisation and to

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provide a working environment that permits the satisfaction of individual needs as well as the
attainment of organisational goals.”

1.6 MARS Model of Individual Behaviour and Results

McShane and Von Glinow (2008:34) state that “the MARS model is a useful starting point to
understanding the drivers of individual behaviour and results. The model highlights four
factors that directly influence an employee’s voluntary behaviour and resulting performance
these are: motivation, ability, role perceptions, and situational factors. These four factors are
represented by the acronym “MARS” in the model’s name.”

The MARS model shows that these four factors have a combined effect on individual
performance. If any factor weakens, employee performance will decrease. For example,
enthusiastic salespeople (motivation) who understand their job duties (role perceptions) and
have sufficient resources (situational factors) will not perform their jobs as well if they lack
sufficient knowledge and sales skill (ability) ( McShane and Von Glinow, 2008). Let us
briefly introduce the four elements of the MARS model:

1.6.1 Employee Motivation

Motivation represents the forces within a person that affect his or her direction, intensity, and
persistence of voluntary behaviour. Direction refers to the path along which people engage
their effort. This sense of direction of effort reflects the fact that people have choices about
where they put their effort. In other words, motivation is goal-directed, not random. The
second element of motivation, called intensity, is the amount of effort allocated to the goal.
Finally, motivation involves varying levels of persistence— that is, continuing the effort for a
certain amount of time. Employees sustain their efforts until they reach their goals or give up
beforehand ( McShane and Von Glinow, 2008).

1.6.2 Ability
Ability includes both the natural aptitudes and learned capabilities required to successfully
complete a task. Aptitudes are the natural talents that help employees learn specific tasks
more quickly and perform them better. Learned capabilities are the skills and knowledge you
have actually acquired. To enhance ability, managers can provide training so employees
develop required skills and knowledge (McShane and Von Glinow, 2008).

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1.6.3 Role Perceptions
Employees have clear role perceptions in three ways. First, they understand the specific tasks
assigned to them: Second, they understand the relative importance of those tasks; Third, they
understand the preferred behaviours to accomplish those tasks. Employees with clear role
perceptions feel more engaged in their work because they know where to direct their effort.
The most basic way to improve role perceptions is for staff to receive clear job descriptions
and ongoing coaching. Employees also clarify their role perceptions as they work together
over time and receive frequent and meaningful performance feedback (McShane and Von
Glinow, 2008).

1.6.4 Situational Factors

Situational factors include conditions beyond the employees’ immediate control that
constrain or facilitate their behaviour and performance (Robbins and Judge, 2010). Some
situational characteristics such as consumer preferences and economic conditions originate
from the external environment and, consequently, are beyond the employees’ and
organisation’s control. However, other situational factors—such as time, people, budget, and
physical work facilities—are controlled by people in the organisation (McShane and Von
Glinow, 2008).

1.7 Individual Differences and Change

Change is constant hence inevitable. To manage change effectively, managers must be
sensitive to individual needs and differences, especially in terms of their resilience. Individual
differences come about due to hereditary and social/environmental factors. The differences
among individuals include: Ethnic origin, physique, gender, motivation, attitudes, personality
traits and types, intelligence and abilities, and perception, among others (Mullins, 2010).

1.8 Individual Attitudes

Attitudes are evaluative statements, either favourable or unfavourable, about objects, people,
or events. Attitudes are important because they are the mechanism through which most
people express their feelings. When you say ‘you like your job,’ you are expressing your
attitude about work (Robbins and Judge, 2013). Attitudes are complexes of beliefs and
feelings that people have about specific ideas, situations, or other people, (McShane and Von
Glinow, 2008). Attitudes are complex. If you ask people about their attitude toward religion,
football, or the organisation they work for, you may get a simple response, but the reasons

3
underlying it are probably complicated. In order to fully understand attitudes, we must
consider their fundamental properties or components (Robbins and Judge, 2013).

1.8.1 Components of Attitudes

Attitudes include three components: Cognitive component (beliefs); affective component
(feelings); and behavioural component (behavioural intentions) (McShane and Von Glinow,
2008).

Robbins and Judge (2013:70) explain the three components of attitudes as follows: The
statement ‘My pay is low’ is the cognitive component of an attitude. A description of or belief
in the way things are. It sets the stage for the more critical part of an attitude, its affective
component (feelings). Affect is the emotional or feeling segment of an attitude and is reflected
in the statement ‘I am angry over how little I’m paid.’ Finally, affect can lead to behavioural
outcomes. The behavioural component of an attitude describes an intention to behave in a
certain way toward someone or something. In line with our preceding example, the
behavioural component is reflected in the statement; ‘I’m going to look for another job that
pays better.’

The foregoing three (3) components are closely related, and cognition and affect in particular
are inseparable in many ways. For example, imagine you realized that someone has just
treated you unfairly. Aren’t you likely to have feelings about that, occurring virtually
instantaneously with the realization? Thus, cognition and affect are intertwined (Robbins and
Judge, 2013).

To demonstrate how the three components of an attitude are related we take a look at this
example. An employee did not get a promotion he thought he deserved; a co-worker got it
instead. The employee’s attitude toward his supervisor is illustrated as follows: the employee
thought he deserved the promotion (cognition), he strongly dislikes his supervisor (affect),
and he is looking for another job (behaviour). As we have noted, although we often think
cognition causes affect, which then causes behaviour, in reality these components are often
difficult to separate (Robbins and Judge, 2013).

4
In organisations, attitudes are important for their behavioural component. If workers believe,
for example, that supervisors, auditors, bosses, and time and motion engineers are all in
conspiracy to make employees work harder for the same or less money, it makes sense to try
to understand how these attitudes formed, how they relate to actual job behaviour, and how
they might be changed.

Early research on attitudes assumed they were causally related to behaviour that is, the
attitudes people hold determine what they do. Common sense, too, suggests a relationship. Is
it not logical that people watch television programmes they like, or that employees try to
avoid assignments they find distasteful?

However, in the late 1960s, a review of the research challenged this assumed effect of
attitudes on behaviour. One researcher, Leon Festinger, argued that attitudes follow behaviour
(Robbins and Judge, 2013). Did you ever notice how people change what they say so it does
not contradict what they do? Perhaps a friend of yours has consistently argued that the quality
of U.S. cars is not up to that of imports and that he would never own anything but a Japanese
or German car. But his dad gives him a late-model Ford Mustang, and suddenly he says U.S.
cars are not so bad. Festinger proposed that cases of attitude following behaviour illustrate
the effects of cognitive dissonance which is any incompatibility an individual might perceive
between two or more attitudes or between behaviour and attitudes. Festinger argued that any
form of inconsistency is uncomfortable and that individuals will therefore attempt to reduce
it. They will seek a stable state, which is a minimum of dissonance (Robbins and Judge,
2013).

1.8.2 Work Related Attitudes

People in organisations form attitudes about many different things. For example, employees
are likely to have attitudes about their salary, promotion possibilities, their boss, employee
benefits, and the food in the company cafeteria, among others. Some of these attitudes are
more important than others. Especially important attitudes are job satisfaction or
dissatisfaction and organisational commitment (Griffin, 2013). Other important attitudes are
perceived organisational support and employee engagement (Robbins and Judge, 2013).

Job Satisfaction or Dissatisfaction

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Job satisfaction or dissatisfaction is an attitude that reflects the extent to which an individual
is gratified by or fulfilled in his or her work. Extensive research conducted on job satisfaction
has indicated that personal factors, such as an individual’s needs and aspirations, determine
this attitude, along with group and organisational factors, such as relationships with co-
workers and supervisors, as well as working conditions, work policies, and compensation
(Griffin, 2013). A satisfied employee tends to be absent less often, to make positive
contributions, and to stay with the organisation. In contrast, a dissatisfied employee may be
absent more often, may experience stress that disrupts co-workers, and may be continually
looking for another job. Contrary to what many managers believe, however, high levels of
job satisfaction do not necessarily lead to higher levels of performance (Griffin, 2013).

Job Involvement
Job involvement measures the degree to which a person identifies psychologically with her or
his job and considers her or his perceived performance level important to her or his self-
worth. The person feels that the job is more meaningful and it utilizes one’s talent and skills
to the fullest extent. There is a perfect harmony between the types of skills a person possesses
and the work content. Employees with a high level of job involvement strongly identify with
and really care about the kind of work they do in their job. There is high level of relationship
between job involvement and fewer absences and lower resignation rates of an individual
(Robbins and Judge, 2013).

Organisational Commitment
This is an attitude that reflects an individual’s identification with and attachment to the
organisation itself. A person with a high level of commitment is likely to see himself as a true
member of the organisation, for example, referring to the organisation in personal terms like
‘we make high-quality products’. Such individuals may also overlook minor sources of
dissatisfaction and see themselves remaining a member of the organisation. In contrast, a
person with less organisational commitment is more likely to see himself as an outsider, for
example, referring to the organisation in less personal terms like ‘They don’t pay their
employees very well’. He is also likely to express more dissatisfaction about things, and to not
see himself as a long-term member of the organisation. Research also suggests that
commitment strengthens with an individual’s age, years with the organisation, sense of job
security, and participation in decision making. Employees who feel committed to an
organisation have highly reliable habits, plan a long tenure with the organisation, and muster

6
more effort in performance. If the organisation treats its employees fairly and provides
reasonable rewards and job security, those employees will more likely be satisfied and
committed. Allowing employees to have a say in how things are done can also promote
commitment (Griffin, 2013).

1.9 Other Job Related Attitudes/Values

According to Robbins and Judge (2013) the following constitutes other job related
attitudes/values:

1.9.1 Perceived Organisational Support (POS)

POS is the degree to which employees believe the organisation values their contribution and
cares about their well-being (for example, an employee believes his organisation would
accommodate him if he had a child care problem or would forgive an honest mistake on his
part). Research shows that people perceive their organisation as supportive when rewards are
deemed fair, when employees have a voice in decisions, and when they see their supervisors
as supportive. Employees with strong POS perceptions have been found more likely to have
higher levels of organisational citizenship behaviours, lower levels of tardiness, and better
customer service.

1.9.2 Employee Engagement

This refers to an individual’s involvement with, satisfaction with, and enthusiasm for, the
work he/she does. We might ask employees whether they have access to resources and the
opportunities to learn new skills, whether they feel their work is important and meaningful,
and whether their interactions with co-workers and supervisors are rewarding. Highly
engaged employees have a passion for their work and feel a deep connection to their
company; disengaged employees have essentially checked out putting time but not energy or
attention into their work. A study of nearly 8,000 business units in 36 companies found that
those whose employees had high-average levels of engagement had higher levels of customer
satisfaction, were more productive, brought in higher profits, and had lower levels of turnover
and accidents than at other companies.

7
These job attitudes are not distinct but rather related. For example, if people feel deeply
engaged by their job (high job involvement), isn’t it probable they like it too (high job
satisfaction)? Won’t people who think their organisation is supportive (high perceived
organisational support) also feel committed to it (strong organisational commitment)?

1.10 Job Satisfaction: Meaning and Nature

We have already briefly explained job satisfaction in the preceding section. However, we
now delve a little bit deeper into this very important job attitude.

Job satisfaction is a person’s evaluation of his or her job and work context. It is probably the
most studied attitude in organisational behaviour. It is an appraisal of the perceived job
characteristics, work environment, and emotional experiences at work. Satisfied employees
have a favourable evaluation of their jobs, based on their observations and emotional
experiences. Job satisfaction is really a collection of attitudes about different aspects of the
job and work context. You might like your co-workers but be less satisfied with the
workload, for instance, (McShane and Von Glinow, 2008).

Attempting to understand the nature of job satisfaction and its effects on work performance is
not easy. Job satisfaction is a complex and multifaceted concept, which can mean different
things to different people. Job satisfaction is usually linked with motivation, but the nature of
this relationship is not clear. Satisfaction is not the same as motivation. Job satisfaction is
more of an attitude, an internal state. The content theories of motivation tend to assume a
direct relationship between job satisfaction and improved performance. For example,
Herzberg’s two-factor theory is essentially a theory of job satisfaction, (Mullins, 2010).

1.10.1 Measuring Job Satisfaction

Two approaches to measuring job satisfaction are popular. The first method is the single
global rating which involves a response to one question, such as ‘All things considered, how
satisfied are you with your job?’ Respondents circle a number between 1 and 5 on a scale
from ‘highly satisfied’ to ‘highly dissatisfied.’ The second method, the summation of job
facets, is more sophisticated. It identifies key elements in a job such as the nature of the work,
supervision, present pay, promotion opportunities, and relationships with co-workers.

8
Respondents rate these on a standardized scale, and researchers add the ratings to create an
overall job satisfaction score, (Robbins and Judge, 2013).

You might ask, which one of these approaches is superior? The answer is that both methods
are helpful. The single global rating method is not very time consuming, thus freeing time for
other tasks, and the summation of job facets helps managers zero in on problems and deal
with them faster and more accurately, (Robbins and Judge, 2013).OB
1.10.2 Dimensions of Job Satisfaction
There is some doubt whether job satisfaction consists of a single dimension or a number of
separate dimensions. Some workers may be satisfied with certain aspects of their work and
dissatisfied with other aspects. According to Mullins (2010:282-283), the level of job
satisfaction is affected by the following wide range of variables:
i) Individual factors include personality, education and qualifications, intelligence and
abilities, age, marital status, orientation to work.
ii) Social factors include relationships with co-workers, group working and norms,
opportunities for interaction, informal organisation.
iii) Cultural factors include underlying attitudes, beliefs and values.
iv) Organisational factors include nature and size, formal structure, HR policies and
procedures, employee relations, nature of the work, technology and work
organisation, supervision and styles of leadership, management systems, and working
conditions.
v) Environmental factors include economic, social, technical and governmental
influences.

1.10.3 Factors Affecting Job Satisfaction

According to Qasim [Link] (2012), the following are the factors affecting job satisfaction at
work:

Work Environment
Work environment plays a vital role in job satisfaction because employees are concerned
with a comfortable physical work environment. Lack of favourable working conditions,
amongst other things, can affect poorly on the worker's mental and physical well-being.
Factors such as working hours, temperature, ventilation, noise, hygiene, lighting, and

9
resources are all part of working conditions. Negative performance will be provoked by poor
working conditions.

Remuneration
There is no doubt that monetary rewards play a very influential role in determining job
satisfaction. Pay is one of the fundamental components of job satisfaction since it has a
powerful effect in determining job satisfaction. Individuals have infinite needs and money
provides the means to satisfy these needs. However, it is thought by other scholars that
handsome salary cannot be the only factor of job satisfaction because even highly paid
employees may still be dissatisfied if they do not like the nature of their job.

Promotion
There is a consensus among the researchers that job satisfaction is strongly associated to
opportunities for promotion. The positive relationship between job satisfaction and promotion
is dependent on perceived equity by employees. When compared to recognition and
achievement, promotion has a stronger impact on job satisfaction. Management must ensure
that promotion is fairly effected. It must be seen to be objective and based on clearly
described procedures/requirements.

Fairness of Treatment
Fairness in grievance procedures, disciplinary procedures, punishment, and remunerations
counts for alot here. When employees feel unfairly treated, they are likely to be dissatisfied at
work. This is symmetrical to the equity theory of motivation. The theory asserts that, in
evaluating fairness, individuals first assess the ratio of their contribution (input) to the
resulting economic or social compensation (output) and then compare the ratio with that of
referent others. Receiving comparatively both too much (overcompensation) and too little
(under-compensation) is evaluated as unfair, according to equity theory. Consequently,
individuals try to reduce the unfairness by altering input (e.g., working less) or output (e.g.,
stealing from the company).

1.11 Job Design, Job Redesign and Job Satisfaction

A job is a set of tasks performed by one person. Job design is the process of assigning tasks to
a job, including the interdependency of those tasks with other jobs, (McShane and Von
Glinow, 2008). The nature of the work organisation and the design of jobs can have a

10
significant effect on the job satisfaction of staff and on the level of organisational
performance. Job design is concerned with the relationship between workers and the nature
and content of jobs, and their task functions. It attempts to meet people’s personal and social
needs at work through reorganisation or restructuring of work. There are two major reasons
for attention to job design: to enhance the personal satisfaction that people derive from their
work; and to make the best use of people as a valuable resource of the organisation and to
help overcome obstacles to their effective performance (McShane and Von Glinow, 2008).

There are three main types of job redesign and these are:
1.11.1 Job Rotation
Job rotation is the practice of moving employees from one job to another. Job rotation offers
important ergonomic benefits to workers, improvements in product quality, and higher
employee satisfaction. It supports multi-skilling (employees learn several jobs), which
increases workforce flexibility in the production process and in finding replacements for
those on vacation. Another third benefit of job rotation is that it potentially reduces then
boredom of highly repetitive jobs. However, organisational behaviour experts continue to
debate whether job rotation really is job redesign because neither the nature of the task nor
the method of working is restructured. Critics argue that job redesign requires changes within
the job (McShane and Von Glinow, 2008).

1.11.2 Job Enlargement

Job enlargement involves increasing the number of tasks employees perform within their job.
It adds tasks to an existing job. This might involve combining two or more complete jobs into
one, or just adding one or two more tasks to an existing job. It is usually achieved by
combining a number of related operations at the same level. Job enlargement is horizontal job
design; it makes a job structurally bigger (Robbins and Judge, 2013). Job enlargement
increases skill variety because there are more tasks to perform. Video journalists represent a
clear example of an enlarged job. A traditional news team consists of a camera operator, a
sound and lighting specialist, and the journalist who writes and presents or narrates the story.
One video journalist performs all of these tasks. Job enlargement significantly improves work
efficiency and flexibility (McShane and Von Glinow, 2008).
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Research suggests that simply giving employees more tasks won’t affect motivation,
performance, or job satisfaction. Instead these benefits result only when skill variety is
combined with more autonomy and job knowledge. In other words, employees are motivated
when they perform a variety of tasks and have the freedom and knowledge to structure their
work to achieve the highest satisfaction and performance (McShane and Von Glinow, 2008).

Job enlargement is not always very popular and may often be resisted by workers. Although
it may give the person more to do, it does little to improve intrinsic satisfaction or a sense of
achievement. Workers may see job enlargement as simply increasing the number of routine,
boring tasks they have to perform (McShane and Von Glinow, 2008).
1.11.3 Job Enrichment
Job enrichment expands jobs by increasing the degree to which the worker controls the
planning, execution, and evaluation of the work. An enriched job organises tasks to allow the
worker to do a complete activity, increases the employee’s freedom and independence,
increases responsibility, and provides feedback so individuals can assess and correct their
own performance. According to Robbins and Judge (2013:244), management enrich an
employee’s job by doing the following:
i) Combining tasks: Puts fractionalized tasks back together to form a new and larger
module of work.
ii) Forming natural work units: Makes an employee’s tasks create an identifiable and
meaningful whole.
iii) Establishing client relationships: Increases the direct relationships between workers
and their clients.
iv) Expanding jobs vertically: Gives employee’s responsibilities and control formerly
reserved for management.
v) Opening feedback channels: Lets employees know how well they are doing and
whether their performance is improving, deteriorating, or remaining constant.

1.12 How Employees Can Express Dissatisfaction

Dissatisfied employees are more likely to miss work. Dissatisfied employees are also more
likely to quit their jobs (McShane and Von Glinow, 2008). There are a number of ways
through which employees express dissatisfaction at work. For example, rather than quit,
employees can complain, be insubordinate, steal organisational property, or avoid some of

12
their work responsibilities (McShane and Von Glinow, 2008). One theoretical model, the
‘exit–voice–loyalty–neglect (EVLN) framework/model’ is helpful in understanding the
consequences of dissatisfaction (Robbins and Judge, 2013). The framework’s four responses
differ along two dimensions: constructive/destructive and active/passive. The responses are
as follows:

Figure 2.1: The ‘exit–voice–loyalty–neglect (EVLN) framework/model showing employee responses to

Dissatisfaction

Source: Robbins and Judge (2013:83)

Exit: Actively attempting to leave the organisation, including looking for a new position as
well as resigning. This is a destructive action from the point of view of the organisation.

Voice: Actively and constructively trying to improve conditions, including suggesting

improvements, discussing problems with superiors, and some forms of union activity.

13
Loyalty: Passively but optimistically waiting for conditions to improve, including speaking
up for the organisation in the face of external criticism and trusting the organisation and its
management to do the right thing.

Neglect: Passively allowing conditions to worsen, including chronic absenteeism or lateness,

reduced effort, and increased error rate (Read Robbins and Judge, 2013:82-83)

1.13 Job Satisfaction and Job Performance

As several studies have concluded, happy workers are more likely to be productive workers.
Some researchers used to believe the relationship between job satisfaction and job
performance was a myth. But a review of 300 studies suggested the correlation is moderately
strong. As we move from the individual to the organisational level, we also find support for
the satisfaction–performance relationship. When we gather satisfaction and productivity data
for the organisation as a whole, we find organisations with more satisfied employees tend to
be more effective than organisations with fewer (Robbins and Judge, 2013).

Even with a moderate association between job satisfaction and performance, there are a few
underlying reasons why the relationship is not even stronger. One explanation is that job
performance leads to job satisfaction (rather than vice versa), but only when performance is
linked to valued rewards. The other explanation is that the connection between job
satisfaction and performance is not stronger because many organisations do not reward good
performance (McShane and Von Glinow, 2008).

1.14 Job Satisfaction and Organisational Citizenship Behaviour (OCB)

It seems logical to assume job satisfaction should be a major determinant of an employee’s
organisational citizenship behaviour (OCB). Satisfied employees would seem more likely to
talk positively about the organisation, help others, and go beyond the normal expectations in
their job, perhaps because they want to reciprocate their positive experiences. Consistent with
this thinking, evidence suggests job satisfaction is moderately correlated with OCBs; people
who are more satisfied with their jobs are more likely to engage in OCBs. Those who feel
their co-workers support them are more likely to engage in helpful behaviours, whereas those
14
who have antagonistic relationships with co-workers are less likely to do so. Finally, research
shows that when people are in a good mood, they are more likely to engage in OCBs
(Robbins and Judge, 2013).

1.15 Job Satisfaction and Customer Satisfaction

It is difficult to keep customers happy if employee morale is low. When you have a happy,
well-motivated workforce, you are much more likely to have happy customers. Research
generally agrees that job satisfaction has a positive effect on customer satisfaction (McShane
and Von Glinow, 2008). There are two main reasons for this relationship. First, employees
are usually in a more positive mood when they feel satisfied with their jobs and working
conditions. Employees in a good mood display friendliness and positive emotions more
naturally and frequently, and this creates positive emotions for customers. Second, satisfied
employees are less likely to quit their jobs, so they have better knowledge and skills to serve
clients. Lower turnover also gives customers the same employees to serve them, so there is
more consistent service. There is some evidence that customers build their loyalty to specific
employees, not to the organisation, so keeping employee turnover low tends to build
customer loyalty (McShane and Von Glinow, 2008).

1.16 Job Satisfaction and Absenteeism

There is a consistent negative relationship between satisfaction and absenteeism, but it is
moderate to weak. While it certainly makes sense that dissatisfied employees are more likely
to miss work, other factors affect the relationship. Organisations that provide liberal sick
leave benefits are encouraging all their employees, including those who are highly satisfied,
to take days off. You can find work satisfying yet still want to enjoy a 3-day weekend if those
days come free with no penalties. When numerous alternative jobs are available, dissatisfied
employees have high absence rates, but when there are few they have the same (low) rate of
absence as satisfied employees (Robbins and Judge, 2013).

1.17 Job Satisfaction and Turnover

The relationship between job satisfaction and turnover is stronger than between satisfaction
and absenteeism. The satisfaction–turnover relationship also is affected by alternative job
prospects. If an employee is presented with an unsolicited job offer, job dissatisfaction is less
predictive of turnover because the employee is more likely leaving in response to “pull” (the
lure of the other job) than “push” (the unattractiveness of the current job). Similarly, job
dissatisfaction is more likely to translate into turnover when employment opportunities are

15
plentiful because employees perceive it is easy to move. Finally, when employees have high
“human capital” (high education, high ability), job dissatisfaction is more likely to translate
into turnover because they have, or perceive, many available alternatives (Robbins and Judge,
2013).

1.18 Job Satisfaction and Workplace Deviance

Job dissatisfaction and antagonistic relationships with co-workers predict a variety of
behaviours organisations find undesirable, including unionization attempts, substance abuse,
stealing at work, undue socializing, and tardiness. Researchers argue these behaviours are
indicators of a broader syndrome called deviant behaviour in the workplace (or
counterproductive behaviour or employee withdrawal). If employees do not like their work
environment, they will respond somehow, though it is not always easy to forecast exactly
how (Robbins and Judge, 2013).

1.19 Activity

You can now do the following:

1. Explain the meaning and use of the MARS Model.

2. What is an attitude?

3. State the three components of an attitude.

4. Identify and discuss the major work related attitudes.

5. What is Job Satisfaction and what are its dimensions?

6. What factors affect Job Satisfaction?

7. What is Job Design and Job Redesign? State the three main types of Job Redesign.

8. Discuss how work attitudes can affect individual and group performance in the Zambian
civil service.

1.20 Unit Summary

This unit has discussed the individual attributes or processes and behaviour that affect OB.
These include motivation at work, ability, personality, perception and attribution, values,

16
attitudes, emotions and moods and work related stress. The unit also presented that MARS
Model of Individual Behaviour and Results which is a useful starting point to understanding
the drivers of individual behaviour and results. The model highlights four factors that directly
influence an employee’s voluntary behaviour and resulting performance which include
motivation, ability, role perceptions, and situational factors. The unit has also discussed
individual attitudes, which are basically the evaluative statements either favourable or
unfavourable about objects, people or events. This is followed by an explanation of the
cognite, affective and behavioural components of an attitude. The unit then discusses work
related attitudes such as job satisfaction and the factors affecting it. Lastly, the unit outlines
the concepts of job design and job redesign.

1.21 Required Resources

Griffin R.W. (2013). Management (11th Edition). Mason, South-Wesstern, Cengage Learning.

Mcshane S.L and Von Glinow M.A (2008). Organisational Behaviour: Emerging Realities
for the Workplace Revolution (4th Edition). Boston, McGraw Hill Irwin.

Mullins J.L. (2010). Management and Organisational Behaviour (9th Edition). Munich,
Prentice Hall.

Qasim S, Cheema F.A, Syed N.A, (2012). Exploring Factors Affecting Employees Job
Satisfaction at Work. Journal of Management and Social Science, Vol. 8, Issue 1, pp 31-39.

Robbins S.P. and Judge T.A. (2010). Essentials of Organisational Behaviour (10th Edition).
New Jersey, Pearson Education Inc.

Robbins S.P. and Judge T.A. (2013). Organisational Behaviour (15th Edition). New Jersey,
Pearson Education Inc.

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 UNIT TWO: EMOTIONS AND MOODS

2.1 Introduction
Welcome to Unit Two of this module. In this unit you will be introduced to emotions and
moods. This unit discusses the meaning and nature of emotions and moods in organisations,
their sources, and the types of or basic emotions normally experienced by individuals
especially in organisations. The unit then explains the concepts of affect and moods in
organisations as well the meaning and nature of emotional labour and emotional intelligence.

2.2 Unit Aim

The aim of this unit is to help you understand the nature of individual emotions and moods,
and how they can affect individual job performance.

2.3 Learning Outcomes

By the end of this unit you should be able to:

i) Explain the basic individual Emotions and Moods in organisations.
ii) Discuss the nature of Affect and Mood in organisations.
iii) Outline the sources of individual emotions and moods in organisation.

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 iv) State the meaning and nature of Emotional Labour and Emotional Intelligence
(EI).

2.4 Time Required

It will take you approximately six (6) hours to work through this unit.

2.5 Emotions: Meaning and Nature

I would like to believe the term emotions is not strange to you. This is one of the terms that
most people use in their day to day lives. In your own words, what would you say emotions
are? Give it a try and then compare your definition to the ones provided below. Please note
that mistakes are part of learning so do not be afraid of making mistakes.

According to McShane and Von Glinow (2008:104), “emotions are psychological,

behavioural, and physiological episodes experienced toward an object, person, or event that
create a state of readiness.” From the preceding definition of emotions, we can highlight four
important terms and these are: First, emotions are brief events or episodes. Your irritation
with a customer/co-worker/supplier/business partner, for instance, would typically subside
within a few minutes. Second, emotions are directed toward someone or something. We
experience joy, fear, anger, and other emotional episodes toward tasks, customers, public
speeches we present, a software program we are using, and so on. Third, emotions are
experiences. They represent changes in a person’s physiological conditions, such as blood
pressure, heart rate, and perspiration, as well as changes in behaviour, such as facial
expression, voice tone, and eye movement. These emotional reactions are involuntary and
often occur without our awareness. Fourth, emotions put people in a state of readiness.
When we get worried, for example, our heart rate and blood pressure increase to better
prepare our body to engage in fight or flight. Emotions are also communications to our
conscious selves. Some emotions (such as anger, surprise, and fear) are particularly strong
‘triggers’ that interrupt our train of thought, demand our attention, and generate the
motivation to take action. They make us aware of events that may affect our survival and
well-being (McShane and Von Glinow, 2008).

According to Mullins (2010:175), “emotions have a profound effect on almost everything we

do in the workplace.” For example, “some jobs require a display of certain emotions
19
especially those in the service industries, where customer care is inextricably linked with
making people feel good.”

Our analysis of emotions cannot be complete without a mention of affect and moods. “Affect
is a generic term that covers a broad range of feelings people experience, including both
emotions and moods. Moods are less intense feelings than emotions and often (though not
always) arise without a specific event acting as a stimulus” (Robbins and Judge, 2013:98).
Most experts believe emotions are more fleeting than moods. For example, if someone is rude
to you, you’ll feel angry. That intense feeling probably comes and goes fairly quickly, maybe
even in a matter of seconds. When you’re in a bad mood, though, you can feel bad for several
hours (Robbins and Judge, 2013). Emotions as earlier stated are directed as something or
someone. For example, you are happy about something, angry at someone, afraid of
something. Moods, in contrast, aren’t usually directed at a person or an event. But 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.
So when a colleague criticises how you spoke to a client, you might show emotion (anger)
toward a specific object (your colleague). But as the specific emotion dissipates, you might
just feel generally dispirited. You cannot attribute this feeling to any single event; you are just
not your normal self. You might then overreact to other events. This affect state describes a
mood, (Robbins and Judge, 2013).

From the foregoing we can note that emotions and moods are closely connected and can
influence each other. For example, getting your dream job may generate the emotion of joy,
which can put you in a good mood for several days. Similarly, if you’re in a good or bad
mood, it might make you experience a more intense positive or negative emotion than
otherwise. We can further note that affect, emotions, and moods are separable in theory but in
practice the distinction is not crystal-clear (Robbins and Judge, 2013).

2.6 Basic Emotions

How many types of emotions do you think people experience? Think of all possible sorts of
emotions, list them, and then continue reading.

According to Robbins and Judge (2013), the key question here is how many emotions are
there? Well, we could say there are dozens, including anger, contempt, enthusiasm, envy,

20
fear, frustration, disappointment, embarrassment, disgust, happiness, hate, hope, jealousy,
joy, love, pride, surprise, and sadness. Numerous researchers have tried to limit them to a
fundamental set. But some argue that it makes no sense to think in terms of ‘basic’ emotions
because even emotions we rarely experience, such as shock, can have a powerful effect on us.

Psychologists have tried to identify basic emotions by studying facial expressions. The major
problem here is that some emotions are too complex to be easily represented on our faces.
For example, many think of love as the most universal of all emotions, however, it is not easy
to express it through only a facial expression. Cultures vary and this may affect interpretation
of facial expressions. For example, people in the United States and the Middle East recognize
a smile as indicating happiness, but in the Middle East a smile is also more likely to be seen
as a sign of sexual attraction, so women have learned not to smile at men.

Many researchers agree on six essentially universal emotions: anger, fear, sadness, happiness,
disgust, and surprise. Some even plot them along a continuum: happiness-surprise-fear-
sadness-anger-disgust. The closer two emotions are to each other on this continuum, the more
likely people will confuse them. For instance, we sometimes mistake happiness for surprise,
but rarely do we confuse happiness and disgust. In addition, cultural factors can also
influence interpretations.

2.7 Affect and Mood in Organisations

You have probably experienced moods swings or episodes before. What do you thinks moods
are? Let us take a look at what some scholars have to say about moods.
Research suggests that there are underlying stable predispositions toward fairly constant and
predictable moods and emotional states. Some people, for example, tend to have a higher
degree of positive affectivity. This means that they are relatively upbeat and optimistic, have
an overall sense of well-being, and usually see things in a positive light. Thus they always
seem to be in a good mood. It has been proposed that positive affectivity may play a role in
entrepreneurial success. On the other hand, those with more negative affectivity are just the
opposite. They are generally downbeat and pessimistic, and they usually see things in a
negative way. They seem to be in a bad mood most of the time (Griffin, 2013).

It is important to note that there can be short-term variations among even the most extreme
types. People with a lot of positive affectivity, for example, may still be in a bad mood if they
have just received some bad news, being passed over for a promotion, getting extremely
21
negative performance feedback, or being laid off or fired, for instance. Similarly, those with
negative affectivity may still be in a good mood, at least for a short time, if they have just
been promoted, received very positive performance feedback, or had other good things befall
them. After the initial impact of these events wears off, however, those with positive
affectivity will generally return to their normal positive mood, whereas those with negative
affectivity will gravitate back to their normal bad mood (Griffin, 2013).

2.8 Sources of Emotions and Moods

Have you ever said ‘I got up on the wrong side of the bed today’? Have you ever snapped at a
co-worker or family member for no particular reason? If you have, it probably makes you
wonder where emotions and moods come from. According to Robbins and Judge (2013: 103-
108), the following are some sources of emotions and moods:

2.8.1 Personality
Most people have built-in tendencies to experience certain moods and emotions more
frequently than others do. People also differ in affect intensity. They experience the same
emotions with different intensities. Affectively intense people experience both positive and
negative emotions more deeply. When they are sad, they are really sad, and when they are
happy, they are really happy.

2.8.2 Day of the Week

People tend to be in their worst moods early in the week and in their best moods late in the
week. What does this mean for organisational behaviour? Monday morning is probably not
the best time to ask someone for a favour or convey bad news.

2.8.3 Stress
As you might imagine, stressful daily events at work (a nasty e-mail, a looming deadline, the
loss of a big sale, a reprimand from the boss) negatively affect moods. Although sometimes
we thrive on stress, most of us, like this blogger, find stress takes a toll on our mood.

2.8.4 Social Activities

For most people, social activities increase positive mood and have little effect on negative
mood. People in positive moods seek out social interactions. It is also true that social
interactions cause people to be in good moods. Research suggests activities that are physical

22
(skiing or hiking with friends), informal (going to a party), or epicurean (eating with others)
are more strongly associated with increases in positive mood than events that are formal
(attending a meeting) or sedentary (watching TV with friends).

2.8.5 Sleep
Sleep quality does affect mood. People who are sleep-deprived report greater feelings of
fatigue, anger, and hostility. One reason is that poor or reduced sleep impairs decision
making and makes it difficult to control emotions. A recent study suggests poor sleep also
impairs job satisfaction because people feel fatigued, irritable, and less alert.

2.8.6 Exercise
Research consistently shows exercise enhances peoples’ positive mood. While not terribly
strong overall, the effects are strongest for those who are depressed. So exercise may help put
you in a better mood, but do not expect miracles.

2.8.7 Age
Do young people experience more extreme positive emotions (so-called youthful exuberance)
than older people? One study of people ages 18 to 94 revealed that negative emotions seem to
occur less as people get older. Periods of highly positive moods lasted longer for older
individuals, and bad moods faded more quickly. The study implies emotional experience
improves with age. As we get older, we experience fewer negative emotions.

2.8.8 Sex
Many believe women are more emotional than men. Is there any truth to this? Evidence does
confirm women are more emotionally expressive than men. They experience emotions more
intensely and they tend to hold on to emotions longer than men. Evidence from a study of
participants from 37 different countries found that men consistently report higher levels of
powerful emotions like anger, whereas women report more powerless emotions like sadness
and fear. Thus, there are some sex differences in the experience and expression of emotions.

23
2.9 Emotional Labour
Sometimes individuals are required to manage their emotions. For instance, you may be very
angry with a co-worker or manager, but you may choose to suppress that anger in the interest
of keeping the peace and/or your job. You may also decide not to kiss a co-worker in a
moment of overwhelming exuberance, to make sure that your intentions are not
misinterpreted. The display of emotions is governed somewhat by workplace norms and the
demands of particular situations. For instance, crying is generally viewed as inappropriate in
the workplace, particularly when it is a response to being criticised. Crying would be viewed
more acceptably if someone were just notified of the death of a close relative, however.

Emotional labour refers to the requirement that employees express particular emotions at
work (for instance, enthusiasm or cheerfulness) to maximise organisational productivity. It is
an employee’s expression of organisationally desired emotions during interpersonal
transactions at work (Robbins and Judge, 2013). Emotional labour deals with emotions which
employees feel or pretend to feel in order to meet their job requirements, irrespective whether
or not they are different from their true emotions (Mullins, 2010).

The concept of emotional labour originally developed in relation to service jobs. Flight
attendants, for instance, are expected to be cheerful, funeral counsellors sad, and doctors
emotionally neutral. Today, the concept of emotional labour seems relevant to almost every
job. You are expected, for example, to be courteous and not hostile in interactions with co-
workers.

The true challenge with emotional labour arises when employees have to project one emotion
while feeling another. This disparity is emotional dissonance, and it can take a heavy toll.
Bottled-up feelings of frustration, anger, and resentment can eventually lead to emotional
exhaustion and burnout. Emotional labour creates dilemmas for employees. There are people
with whom you have to work that you just plain don’t like. Maybe you know they have said
negative things about you behind your back. Regardless, your job requires you to interact
with these people on a regular basis. So you are forced to feign friendliness. It can help you,
on the job especially, if you separate emotions into felt or displayed emotions (Robbins and
Judge, 2013).

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Felt emotions are an individual’s actual emotions. In contrast, displayed emotions are those
that the organisation requires workers to show and considers appropriate in a given job. They
are not innate and they are learned. The ritual look of delight on the face of the first runner-up
as the new Miss America is announced is a product of the display rule that losers should
mask their sadness with an expression of joy for the winner. Similarly, most of us know we
are expected to act sad at funerals, regardless of whether we consider the person’s death a
loss, and to appear happy at weddings even if we don’t feel like celebrating. A salesperson
who has not learned to smile and appear friendly, despite his or her true feelings at the
moment, typically won’t last long in the job (Robbins and Judge, 2010:128).

Displaying fake emotions requires us to suppress real ones. Surface acting is hiding inner
feelings and forgoing emotional expressions in response to display rules. A worker who
smiles at a customer even when he does not feel like it is surface acting. Deep acting is trying
to modify our true inner feelings based on display rules. A health care provider trying to
genuinely feel more empathy for her patients is deep acting. Surface acting deals with
displayed emotions, and deep acting deals with felt emotions. Research shows that surface
acting is more stressful to employees because it entails denying their true emotions (Robbins
and Judge, 2013:110).

2.10 Emotional Intelligence (EI)

You have probably come across the term emotional intelligence by now. Let us findout
whether or not what you know is in line with the explanations below.

According to Griffin (2013), the concept of emotional intelligence has been identified in
recent years and provides some interesting insights into personality. Emotional intelligence,
or EI, refers to the extent to which people are self-aware, manage their emotions, motivate
themselves, express empathy for others, and possess social skills. Griffin describes the
preceding dimensions as follows:
 Self-Awareness: This is the basis for the other components. It refers to a person’s
capacity for being aware of how they are feeling. In general, more self-awareness
allows people to more effectively guide their own lives and behaviours.
 Managing Emotions: This refers to a person’s capacities to balance anxiety, fear, and
anger so that they do not overly interfere with getting things accomplished.

25
  Motivating Oneself: This dimension refers to a person’s ability to remain optimistic
and to continue striving in the face of setbacks, barriers, and failure.
 Empathy: Empathy refers to a person’s ability to understand how others are feeling,
even without being explicitly told.
 Social Skill: This refers to a person’s ability to get along with others and to establish
positive relationships.

Preliminary research suggests that people with high EI may perform better than others,
especially in jobs that require a high degree of interpersonal interaction and that involve
influencing or directing the work of others. Moreover, EI appears to be something that is not
biologically based but can be developed (Griffin, 2013).

2.11 Activity

You can now do the following:

1. Using examples, explain the meaning, nature and sources of emotions, moods and affect in
organisations.
2. What is emotional Labour and emotional intelligence, and why are they important in
an organisation.
3. With the help of relevant examples, discuss the relevance of emotional labour and
emotional intelligence to the successful performance of the civil servants in Zambia.

2.12 Unit Summary

This second unit has showed how emotions, affect and moods influence individual behaviour
in organisations. Emotions which are directed at something or someone have a profound
effect on almost everything we do in the workplace. Affect generally covers a broad range of
feelings people experience, including both emotions and moods. Moods are less intense
feelings than emotions and often (though not always) arise without a specific event acting as
a stimulus (Robbins and Judge, 2013). Emotions and moods are closely connected and can
influence each other. For example, getting your dream job may generate the emotion of joy,
which can put you in a good mood for several days. Similarly, if you’re in a good or bad
mood, it might make you experience a more intense positive or negative emotion than

26
otherwise. We can further note that affect, emotions, and moods are separable in theory but in
practice the distinction is not crystal-clear. The unit also notes that often organisations require
that employees express particular emotions at work in order to maximise organisational
productivity - known as emotional labour. Related to this is the need to promote Emotional
Intelligence (EI), which is simply the extent to which people are self-aware, manage their
emotions, motivate themselves, express empathy for others, and possess social skills.

2.13 Required Resources

Griffin R.W. (2013). Management (11th Edition). Mason, South-Wesstern, Cengage Learning.

Mcshane S.L and Von Glinow M.A (2008). Organisational Behaviour: Emerging Realities
for the Workplace Revolution (4th Edition). Boston, McGraw Hill Irwin.

Mullins J.L. (2010). Management and Organisational Behaviour (9th Edition). Munich,
Prentice Hall.

Robbins S.P. and Judge T.A. (2013). Organisational Behaviour (15th Edition). New Jersey,
Pearson Education Inc.

Robbins S.P. and Judge T.A. (2010). Essentials of Organisational Behaviour (10th Edition).
New Jersey, Pearson Education Inc.

UNIT THREE: PERCEPTION AND ATTRIBUTION

3.1 Introduction
I welcome you to Unit Three of this module. In this unit you will be introduced to the concept
of perception. This unit begins by stating the meaning and nature of the term perception and
factors affecting it. Following this is a discussion of the attribution theory and the major
attribution errors. Thirdly, the unit provides an analysis of the common shortcuts in judging
others or situation as well as the consequences of perceptual errors in organisations. Lastly,
the unit dicusses the linkages between perception and individual decision making and the
common biases and errors associated with decision making in organisations.

3.2 Unit Aim

The aim of this unit is to enable you to understand the meaning and nature of the basic
perceptual processes and attribution in an organisation.

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3.3 Learning Outcomes

By the end of this unit you should be able to:

i) Identify and discuss the factors affecting perception in organisations.
ii) Identify and explain the major perceptual errors and their consequences.
iii) Discuss the Attribution Theory and Perception.
iv) Explain the link between perception and individual decision making.
v) State the common biases and errors in decision making in organisations.

3.4 Time Required

It will take you approximately seven (7) hours to work through this unit.

3.5 Perception: Meaning and Nature

What comes to your mind when you hear the word perception? Try to define it and let us see
how your definition compares to what is explained below.

Perception is described as a person’s view of reality. Perception is the process by which

individuals select, organise, and interpret their sensory impressions in order to give meaning
to their environment. However, what we perceive can be substantially different from
objective reality. Perception is the set of processes by which an individual becomes aware of
and interprets information about the environment, (Griffin, 2013). According to McShane and
Von Glinow (2008:68), “perception is the process of receiving information about and making
sense of the world around us. It entails deciding which information to notice, how to
categorize this information, and how to interpret it within the framework of our existing
knowledge.”

Perception plays a key role in determining individual behaviour in organisations. For

instance, organisations send messages in a variety of forms to their members regarding what
they are expected to do and not to do. In spite of organisations sending clear messages, those
messages are subject to distortion in the process of being perceived by organisational
members. Hence, managers need to have a general understanding of the basic perceptual
process.

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3.6 Factors Affecting Perception
How do we explain that individuals may look at the same thing, yet perceive it differently,
and both be right? A number of factors affect perception. These factors can be found in the
perceiver, in the object or target being perceived, or in the context of the situation in which
the perception is made. Robbins and Judge (2010:167) explain the said factors as follows:

3.6.1 Perceiver
When you look at a target and attempt to interpret what you see, your interpretation is heavily
influenced by your personal characteristics such as: your attitudes, personality, motives,
interests, past experiences, and expectations. For instance, if you expect police officers to be
authoritative or young people to be lazy, you may perceive them as such, regardless of their
actual traits.

3.6.2 Target
Characteristics of the target also affect what we perceive. Loud people are more likely to be
noticed in a group than quiet ones. So, too, are extremely attractive or unattractive
individuals. Because we don’t look at targets in isolation, the relationship of a target to its
background also influences perception, as does our tendency to group close things and similar
things together. Women, men, Whites, African Americans, Asians, or members of any other
group will tend to be perceived as similar not only in physical terms but in other unrelated
characteristics as well.

3.6.3 Context/ Situation

The context in which we see objects or events is important. Elements in the surrounding
environment influence our perceptions. For instance, it might be entirely appropriate for a
gentleman to wear shorts and T-shirts in a social setting on a Saturday afternoon. Yet that
same person so attired for a Monday morning management class would certainly catch
everybody’s attention. Neither the perceiver nor the target has changed between Saturday
night and Monday morning, but the situation is different. Therefore, your interpretation of the
same clothes will vary with the context. The time at which an object or event is seen can
influence attention, as can location, light, heat, or any number of situational factors. Thus, it
is possible to say that truth is often in the eye of the perceiver, rather than some objective
fact. For instance, a recent study compared how women managers were perceived, depending
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upon whether they were wearing flat shoes, slacks, or high heels, a tight skirt, and a low-cut
blouse. Businesswomen wearing the sexy clothes were viewed as less competent.

3.7 Attribution Theory and Perception

Perception is also closely linked with another process called attribution. Attribution is a
mechanism through which we observe behaviour and then attribute causes to it. The
behaviour that is observed may be our own or that of others, (Griffin, 2013). The attribution
process is the process of deciding whether an observed behaviour or event is caused largely
by the person (internal factors) or the environment (external factors), (McShane and Von
Glinow, 2008). Internally caused behaviour is believed to be under the personal control of the
individual; that is, the person chooses to engage in the behaviour. Externally caused
behaviour is believed to result from outside causes; that is, the person does not have control
over his or her actions and is forced into the behaviour by the situation. For example, while
waiting for one of your team member who is late for a meeting, you could imagine either an
internal or an external reason for the lateness. An internal reason might be that the team
member must have partied into the wee hours of the morning and then overslept. An external
attribution might be that there was a major automobile accident that tied up traffic, (Robbins
and Judge, 2013).

In trying to determine whether behaviour is internally or externally caused, we rely on three

rules about the behaviour: distinctiveness; consensus; and consistency. As stated in Griffins
(2013:426) and Robbins and Judge (2013:168), the following is an explication of the said
three concepts:

3.7.1 Distinctiveness
Distinctiveness refers to whether an individual acts similarly across a variety of situations. Is
the student always underperforming (being late for class, goofing off in team meetings, not
answering urgent emails) or is the student’s behaviour in one situation unusual from what he
shows in other situations? If the behaviour is unusual, the observer is likely to make an
external attribution. If this action is not unusual, the observer will probably judge it as
internally caused.

3.7.2 Consensus

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Consensus considers how an individual’s behaviour compares with others in the same
situation. If everyone who is faced with a similar situation responds in the same way, we can
say the behaviour shows consensus. When consensus is high, an external attribution is given
to an individual’s behaviour. But if an individual’s behaviour is different from everyone
else’s, you would conclude the cause for that individual’s behaviour was internal.

3.7.3 Consistency
Finally, an observer looks for consistency in an action that is repeated over time. If a student
is usually on time for class (she has not been late all term), being 10 minutes late will be
perceived differently from the way it is when the student is routinely late (almost every
class). If a student is almost always late, the observer is likely to attribute lateness to internal
causes. If the student is almost never late, then lateness will be attributed to external causes.

Griffin (2013) gives an example. Suppose a manager observes that an employee is late for a
meeting. The manager might further realize that he is the only one who is late (low
consensus), recall that he is often late for other meetings (high consistency), and subsequently
realize that the same employee is sometimes late for work and returning from lunch (low
distinctiveness). This pattern of attributions might cause the manager to decide that the
individual’s behaviour is something that should be changed. As a result, the manager might
meet with the subordinate and establish some punitive consequences for future tardiness.

3.8 Attribution Errors

There is substantial evidence that when we judge the behaviour of other people, we tend to
put more emphasis on internal or personal factors and less emphasis on external factors. This
is called the fundamental attribution error and can explain why a sales manager is prone to
attribute the poor performance of his or her sales agents to laziness rather than to the
innovative product line introduced by a competitor, (Robbins and Judge, 2013). One reason
why fundamental attribution error occurs is that observers cannot easily see the external
factors that constrain the person’s behaviour. Another reason is that we tend to believe in the
power of the person. We assume that individuals can overcome situational constraints more
than they really can, (McShane and Von Glinow, 2013).

Another error is self-serving bias. This means that when we are successful, we are more
likely to believe it was because of internal factors, such as ability or effort. When we fail,

31
however, we blame external factors, such as bad luck. Simply put, we take credit for our
successes and blame others or the situation for our mistakes. Self-serving bias protects our
self-esteem, but it can have the opposite effect for people in leadership positions. We expect
leaders to take ownership of their failures, so we have less respect for executives who blame
the situation rather than take personal responsibility.

3.9 Common Shortcuts in Judging Others/ Situations (Perceptual Errors)

Let us look at the common perceptual errors:

3.9.1 Selective Perception

Selective perception is the process of screening out information that we are uncomfortable
with or that contradicts our beliefs. For example, a manager who has formed a very negative
attitude about a particular worker and he happens to observe a high performance from the
same worker. In this case influenced by the selective perception process he too will disregard
it. In one sense, selective perception is beneficial because it allows us to disregard minor bits
of information. But if selective perception causes managers to ignore important information,
it can become quite detrimental, (Robbins and Judge, 2013).

3.9.2 Halo effect

Halo effect occurs when our general impression of a person, usually based on one prominent
characteristic such as intelligence, likeability, or appearance, colours our perception of other
characteristics of that person. If a supervisor who values punctuality notices that an employee
is sometimes late for work, the supervisor might form a negative image of the employee and
evaluate that person’s other traits unfavourably as well. Generally one trait important to the
perceiver forms a general impression, and this impression becomes the basis for judgments
about other traits. Halo effect is most likely to occur when concrete information about the
perceived target is missing or we are not sufficiently motivated to search for it. Instead we
use our general impression of the person to fill in the missing information, (McShane and
Von Glinow, 2008).

3.9.3 Stereotyping
When we judge someone on the basis of our perception of the group to which he or she
belongs, we are using the shortcut called stereotyping. Stereotyping differs from the halo
effect in that the latter is based on a single characteristic of the individual, rather than the

32
individual’s membership in a particular group. Perceptions based on stereotypes about
people's sex and tribe/race exist more or less in all work places/societies. For example, if
dishonesty is associated with politicians, we are likely to assume that all politicians are
dishonest, (Robbins and Judge, 2013).

3.9.4 Projection Bias

Projection bias occurs when we believe other people have the same beliefs and behaviours
that we do. People who engage in projection tend to perceive others according to what they
themselves are like rather than perceiving others as they really are. If you are eager for a
promotion, you might think that others in your position are similarly motivated. If you are
thinking of quitting your job, you start to believe that other people are also thinking of
quitting. Projection bias is also a defense mechanism to protect our self-esteem. If we break a
work rule, projection bias justifies this infraction by claiming ‘everyone does it.’ We feel
more comfortable with the thought that our negative traits exist in others, so we believe that
others also have these traits, (McShane and Von Glinow, 2008).

3.9.5 Contrast Effects

An old adage among entertainers is ‘Never follow an act that has kids or animals in it.’ Why?
Audience’s love children and animals so much that you will look bad in comparison. This
example demonstrates how a contrast effect can distort perceptions. We don’t evaluate a
person in isolation. Our reaction is influenced by other persons we have recently encountered.
In a series of job interviews, for instance, interviewers can make distortions in any given
candidate’s evaluation as a result of his or her place in the interview schedule. A candidate is
likely to receive a more favourable evaluation if preceded by mediocre applicants and a less
favourable evaluation if preceded by strong applicants, (Robbins and Judge, 2013).

3.9.6 Primacy Effect

First impressions are lasting impressions. The primacy effect refers to our tendency to
quickly form an opinion of people based on the first information we receive about them. This
rapid perceptual organisation and interpretation occurs because we need to make sense of the
world around us. The problem is that first impressions, particularly negative first impressions,
are difficult to change. After categorizing someone, we tend to select subsequent information
that supports our first impression and screen out information that opposes that impression.
Negative impressions tend to stick more than positive impressions because negative
33
characteristics are more easily attributed to the person, whereas positive characteristics are
often attributed to the situation, (McShane and Von Glinow, 2008).

3.9.7 Impression Management

Social perception is concerned with how one individual perceives other individuals.
Conversely, impression management is the process by which the general people attempt to
manage or control the perceptions that others form about them. People often tend to present
themselves in such a way so as to impress others in a socially desirable manner. Thus,
impression management has considerable implications for activities like determining the
validity of performance appraisals. It serves as a pragmatic, political tool for someone to
climb the ladder of success in organisations.

3.9.8 Attribution
We have already discussed attribution and its errors.

3.10 Consequences of Perceptual Errors in Organisations

According to Robbins and Judge (2013:173), the following are some of the consequences of
perceptual errors in organisations:

3.10.1 Employment Interview

Most people are subjected to interviews before being hired. But interviewers make perceptual
judgments that are often inaccurate and draw early impressions that quickly become
entrenched. Research shows we form impressions of others within a tenth of a second, based
on our first glance. If these first impressions are negative, they tend to be more heavily
weighted in the interview than if that same information came out later.
3.10.2 Performance Expectations
People attempt to validate their perceptions of reality even when these are faulty. The terms
self-fulfilling prophecy and Pygmalion effect describe how an individual’s behaviour is
determined by others’ expectations. If a manager expects big things from her people, they are
not likely to let her down. Similarly, if she expects only minimal performance, they will
likely meet those low expectations. Expectations become reality. The self-fulfilling prophecy
has been found to affect the performance of students, soldiers, and even accountants.

34
3.10.3 Performance Evaluation
Although the evaluation/appraisal can be objective (for example, a sales-person is appraised
on how many dollars of sales he generates in his territory), many jobs are evaluated in
subjective terms. Subjective evaluations, though often necessary, are problematic because all
the errors we have discussed thus far affect them.

3.11 Perception and Individual Decision Making

“Individuals in organisations make decisions, choices from among two or more alternatives.
Individual decision making is an important part of organisational behaviour. But the way
individuals make decisions and the quality of their choices are largely influenced by their
perceptions. One person’s problem is another person’s satisfactory state of affairs. Therefore,
awareness that a problem exists and that a decision might, or might not, be needed is a
perceptual issue” (Robbins and Judge, 2013:174).

3.11.1 Rational Decision Making

We often think the best decision maker is rational and makes consistent, value-maximizing
choices within specified constraints. These decisions follow a six-step rational decision-
making model. The six steps are:
i. Define the problem.
ii. Identify the decision criteria.
iii. Allocate weights to the criteria.
iv. Develop the alternatives.
v. Evaluate the alternatives.
vi. Select the best alternative.
The rational decision-making model relies on a number of assumptions, including that the
decision maker has complete information, is able to identify all the relevant options in an
unbiased manner, and chooses the option with the highest utility. As you might imagine, most
decisions in the real world don’t follow the rational model. People are usually content to find
an acceptable or reasonable solution to a problem rather than an optimal one.

3.11.2 Bounded Rationality

Our limited information-processing capability makes it impossible to assimilate and
understand all the information necessary to optimize. So most people respond to a complex

35
problem by reducing it to a level at which they can readily understand it. Also many
problems don’t have an optimal solution because they are too complicated to fit the rational
decision-making model. So people satisfice. They seek solutions that are satisfactory and
sufficient. Since the human mind cannot formulate and solve complex problems with full
rationality, we operate within the confines of bounded rationality. We construct simplified
models that extract the essential features from problems without capturing all their
complexity. We can then behave rationally within the limits of the simple model.

How does bounded rationality work for the typical individual? Once we have identified a
problem, we begin to search for criteria and alternatives. But the criteria are unlikely to be
exhaustive. We identify choices that are easy to find and highly visible and that usually
represent familiar criteria and tried and true solutions. Next, we begin reviewing them,
focusing on alternatives that differ little from the choice currently in effect until we identify
one that is ‘good enough’- that meets an acceptable level of performance. That ends our
search. So the solution represents a satisficing choice. The first acceptable one we encounter,
rather than an optimal one. Satisficing is not always a bad idea. A simple process may
frequently be more sensible than the traditional rational decision-making model.

3.11.3 Intuition
Perhaps the least rational way of making decisions is intuitive decision making. An
unconscious process created from distilled experience. It occurs outside conscious thought; it
relies on holistic associations, or links between disparate pieces of information; its fast; and
it’s affectively charged, meaning it usually engages the emotions. While intuition isn’t
rational, it isn’t necessarily wrong. Nor does it always contradict rational analysis. Rather, the
two can complement each other. But nor is intuition superstition, or the product of some
magical or paranormal sixth sense. Intuition is a highly complex and highly developed form
of reasoning that is based on years of experience and learning. For most of the twentieth
century, experts believed decision makers’ use of intuition was irrational or ineffective.
That’s no longer the case. We now recognize that rational analysis has been overemphasized
and, in certain instances, relying on intuition can improve decision making. But we cannot
rely on it too much. Because it is so unquantifiable, it’s hard to know when our hunches are
right or wrong. The key is neither to abandon nor rely solely on intuition, but to supplement it
with evidence and good judgment.

36
3.12 Common Biases and Errors in Decision Making
Robbins and Judge (2013:177-183) highlight the following as common biases and errors in
decision making:

3.12.1 Overconfidence Bias

It’s been said that no problem in judgment and decision making is more prevalent and more
potentially catastrophic than overconfidence. When we are given factual questions and asked
to judge the probability that our answers are correct, we tend to be far too optimistic. When
people say they are 90 percent confident about the range a certain number might take, their
estimated ranges contain the correct answer only about 50 percent of the time.

3.12.2 Anchoring Bias

The anchoring bias is a tendency to fixate on initial information and fail to adequately adjust
for subsequent information. It occurs because our mind appears to give a disproportionate
amount of emphasis to the first information it receives. Anchors are widely used by people in
professions in which persuasion skills are important such as, advertising, management,
politics, real estate, and law. Assume two pilots, Mulenga and Mweene have been laid off
their current jobs, and after an extensive search their best offers are from South African
Airlines. Each would earn the average monthly pay of K30,000. In their previous jobs,
Mulenga earned K20,000 while Mweene earned K50,000. Which pilot is most likely to
accept, or be happiest with, the South African Airways job? Obviously Mulenga, because he
is anchored by the lower salary.

3.12.3 Confirmation Bias

The rational decision-making process assumes we objectively gather information. But we
don’t. We selectively gather it. The confirmation bias represents a specific case of selective
perception: we seek out information that reaffirms our past choices, and we discount
information that contradicts them. We also tend to accept at face value information that
confirms our preconceived views, while we are critical and skeptical of information that
challenges them. Therefore, the information we gather is typically biased toward supporting
views we already hold. We even tend to seek sources most likely to tell us what we want to
hear, and we give too much weight to supporting information and too little to contradictory.
Interestingly, we are most prone to the confirmation bias when we believe we have good

37
information and strongly believe in our opinions. Fortunately, those who feel there is a strong
need to be accurate in making a decision are less prone to the confirmation bias.

3.12.4 Availability Bias

More people fear flying than fear driving in a car. But if flying on a commercial airline really
were as dangerous as driving, the equivalent of two 747s filled to capacity would crash every
week, killing all aboard. Because the media give much more attention to air accidents, we
tend to overstate the risk of flying and understate the risk of driving. The availability bias is
our tendency to base judgments on information readily available. Events that evoke emotions,
are particularly vivid, or are more recent tend to be more available in our memory, leading us
to overestimate the chances of unlikely events such as an airplane crash. The availability bias
can also explain why managers doing performance appraisals give more weight to recent
employee behaviours than to behaviours of 6 or 9 months earlier.

3.12.5 Escalation of Commitment

Another distortion that creeps into decisions is a tendency to escalate commitment.
Escalation of commitment refers to staying with a decision even when there is clear evidence
its wrong. Consider a friend who has been dating someone for several years. Although he
admits things aren’t going too well, he says he is still going to marry her. His justification: “I
have a lot invested in the relationship.” Individuals escalate commitment to a failing course
of action when they view themselves as responsible for the failure.

Many times an organisation has suffered because a manager determined to prove his or her
original decision right continued to commit resources to a lost cause.

3.12.6 Randomness Error

Most of us like to think we have some control over our world and our destiny. Our tendency
to believe we can predict the outcome of random events is the randomness error. Decision
making suffers when we try to create meaning in random events, particularly when we turn
imaginary patterns into superstitions. These can be completely contrived (“I never make
important decisions on Friday the 13th”) or can evolve from a reinforced past pattern of
behaviour (Tiger Woods often wears a red shirt during a golf tournament’s final round
38
because he won many junior tournaments wearing red shirts). Superstitious behaviour can be
debilitating when it affects daily judgments or biases major decisions.

3.12.7 Risk Aversion

This tendency to prefer a sure thing over a risky outcome is risk aversion. Risk aversion has
important implications. To offset the risks inherent in a commission-based wage, companies
pay commissioned employees considerably more than they do those on straight salaries.
Risk-averse employees will stick with the established way of doing their jobs, rather than
taking a chance on innovative or creative methods. Sticking with a strategy that has worked
in the past does minimize risk, but in the long run it will lead to stagnation. Ambitious people
with power that can be taken away (most managers) appear to be especially risk averse,
perhaps because they don’t want to lose on a gamble everything they have worked so hard to
achieve.

3.12.8 Hindsight Bias

The hindsight bias is the tendency to believe falsely, after the outcome is known, that we’d
have accurately predicted it. When we have accurate feedback on the outcome, we seem
pretty good at concluding it was obvious.

3.13 Activity

You can now do the following:

1. Discuss the meaning and nature of perception and the factors affecting it.
2. Critically discuss the attribution theory and how it relates with perception.
3. With the help of practical examples, discuss the following:
a) Consequences of perceptual errors in organisations and the common shortcuts in
judging others and/or situations.
b) Attribution errors.
4. Discuss the link between perception and individual decision making in organisations as
well as the common biases and errors in decision making.

3.14 Unit Summary

39
Perception, described as a person’s view of reality, is the process by which individuals select,
organise, and interpret their sensory impressions in order to give meaning to their
environment. However, what we perceive can be substantially different from objective
reality. It is the set of processes by which an individual becomes aware of and interprets
information about the environment (Griffin, 2013). Perception plays a key role in determining
individual behaviour in organisations as organisations continuously send messages in a
variety of forms to their members regarding what they are expected to do and not to do. To
prevent distortions of these messages managers need to understand the basic perceptual
process.

Perception is also closely linked with another process called attribution which is a mechanism
through which we observe our or other people’s behaviour and then attribute causes to it. The
behaviour that is observed may be our own or that of others, (Griffin, 2013). The attribution
process is the process of deciding whether an observed behaviour or event is caused largely
by the person (internal factors) or the environment (external factors), (McShane and Von
Glinow, 2008). The way individuals make decisions and the quality of their choices are
largely influenced by their perceptions and attribution. Managers should therefore take note
of and avoid the consequences of perceptual and attribution errors so as to avoid the biases in
decision making by themselves or other employees.

3.15 Required Resources

Griffin R.W. (2013). Management (11th Edition). Mason, South-Wesstern, Cengage Learning.

Mcshane S.L and Von Glinow M.A (2008). Organisational Behaviour: Emerging Realities
for the Workplace Revolution (4th Edition). Boston, McGraw Hill Irwin.

Robbins S.P. and Judge T.A. (2013). Organisational Behaviour (15th Edition). New Jersey,
Pearson Education Inc.

Robbins S.P. and Judge T.A. (2010). Essentials of Organisational Behaviour (10th Edition).
New Jersey, Pearson Education Inc.

40
 UNIT FOUR: WORK RELATED STRESS

4.1 Introduction
I am pleased to welcome you to Unit Four of this module. This module introduces you to
stress, a term which I believe you are very familiar with. This unit starts by outlining the
meaning and nature of the term stress and proceeds to discuss the General Adaptation
Syndrome (GAS). The unit also identifies and explains the major stressors or causes of stress
in organisations. Fourthly, taking note that of individual differences, the unit tries to analyse
the nature of individual differences in experiencing stress in organisations. The unit then

41
discusses the negative consequences of stress and the process of managing stress that
managers and individuals can employ in organisations.

4.2 Unit Aim

The aim of this unit is to enable you understand the meaning and nature of stress and it’s
effects on performance at the workplace.

4.3 Learning Outcomes

By the end of this unit you should be able to:

i) State the meaning of stress.
ii) Outline the meaning and nature of the General Adaptation Syndrome (GAS).
iii) Identify and explain the causes and consequences of stress.
iv) Discuss the individual differences in stress in organisations and consequences of
stress in organisations.
v) Identify and discuss the major approaches in stress management.

4.4 Time Required

It will take you approximately six (6) hours to work through this unit.

4.5 Meaning of the term Stress

Stress is something we have all experienced before. As a student, you have definitely
experienced academic stress. Now let me pose this question to you, how do you feel when
you are stressed? Based on your stressful experiences, what would you say stress is? Is stress
always negative? As you think about these questions, let us take a look that the discussion
below.
Stress is a complex and dynamic concept. It is a possible source of tension and frustration,
and can arise through a number of interrelated influences on behaviour, including the
individual,
group, organisational and environmental factors. It is the adverse reaction people have to
excess pressure or other types of demands placed on them (Mullins, 2010). Stress is an
individual’s response to a strong stimulus. This stimulus is called a stressor (Griffin, 2013).
Stress is an adaptive response to a situation that is perceived as challenging or threatening to

42
a person’s well-being. The stress response is a complex emotion that produces physiological
changes to prepare us for fight or flight, that is, to defend ourselves from the threat or flee
from it, (McShane and Von Glinow, 2008). Specifically, our heart rates increase, muscles
tighten, breathing speeds up, and perspiration increases. Our bodies also moves more blood to
the brain, release adrenaline and other hormones, fuel the system by releasing more glucose
and fatty acids, activate systems that sharpen our senses, and conserve resources by shutting
down our immune systems (McShane and Von Glinow, 2008).

We often hear about stress as a negative consequence of modern living. People are stressed
from overwork, job insecurity, information overload, and the increasing pace of life. These
events produce distress which is the degree of physiological, psychological, and behavioural
deviation from healthy functioning. There is also a positive side of stress, called eustress,
which refers to the healthy, positive, constructive outcome of stressful events and the stress
response. Eustress is the stress experience in moderation, enough to activate and motivate
people so that they can achieve goals. Consider, for example, athletes or stage performers
who use stress positively to rise to the occasion and perform at or near their maximum
potential (McShane and Von Glinow, 2008).

4.6 General Adaptation Syndrome (GAS)

Stress generally follows a cycle referred to as the General Adaptation Syndrome which has
three stages. According to this view, when an individual first encounters a stressor, the GAS
is initiated. The GAS provides an automatic defense system to help us cope with
environmental demands. The three stages of the GAS are: alarm, resistance, and exhaustion
(Griffin, 2013).

Let us take a closer look at the aforementioned three stages of the GAS.

4.6.1 Alarm Reaction

The alarm reaction stage occurs when a threat or challenge activates the physiological stress
responses that we noted earlier, such as increased respiration rate, blood pressure, heartbeat,

43
and muscle tension. The individual’s energy level and coping effectiveness decrease in
response to the initial shock. In extreme situations this shock can result in incapacity or death
because the body is unable to generate enough energy quickly enough. Most of the time the
alarm reaction alerts the person to the environmental condition and prepares the body for the
resistance stage (McShane and Von Glinow, 2008).

4.6.2 Resistance
The person’s ability to cope with the environmental demand rises above the normal state
during the resistance stage because the body activates various biochemical, psychological,
and behavioural mechanisms. For example, we have higher-than-normal levels of adrenaline
and glucose during this stage, which give us more energy to overcome or remove the source
of stress. At the same time, the body shuts down the immune system to focus energy on the
source of the stress. This explains why people are more likely to catch a cold or other illness
when they experience prolonged stress (McShane and Von Glinow, 2008).

4.6.3 Exhaustion
People have a limited resistance capacity, and if the source of stress persists, they will
eventually move into the exhaustion stage. In most work situations the general adaptation
syndrome process ends long before total exhaustion. Employees resolve tense situations
before the destructive consequences of stress become manifest, or they withdraw from the
stressful situation, rebuild their survival capabilities, and return later to the stressful
environment with renewed energy. However, people who frequently experience the general
adaptation syndrome have increased risk of long-term physiological and psychological
damage (McShane and Von Glinow, 2008).

Let us take a look at an example as explicated by Griffin (2013:427). Suppose a manager is

told to prepare a detailed evaluation of a plan by his firm to buy one of its competitors. His
first reaction may be, ‘How will I ever get this done by tomorrow?’ If the stressor is too
intense, the individual may feel unable to cope and never really try to respond to its demands,
(alarm). In most cases, however, after a short period of alarm, the individual gathers some
strength and starts to resist the negative effects of the stressor. For example, the manager with
the evaluation to write may calm down, call home to say he is working late, roll up his
sleeves, order out for coffee, and get to work. Thus, at stage 2 of the GAS, the person is
resisting the effects of the stressor. In many cases, the resistance phase may end the GAS. If
44
the manager is able to complete the evaluation earlier than expected, he may drop it in his
briefcase, smile to himself, and head home tired but satisfied. On the other hand, prolonged
exposure to a stressor without resolution may bring on stage 3 of the GAS, exhaustion. At
this stage, the individual literally gives up and can no longer resist the stressor. The manager,
for example, might fall asleep at his desk at 3:00 a.m. and never finish the evaluation.

4.7 Causes of Stress (Stressors)

Before we discuss the causes of stress, may I request you to list factors (i.e. social and
professional) that have been responsible for your stress.

Work-related stressors fall into one of the following four categories: task, physical, role, and
interpersonal demands.

4.7.1 Task Demands

These are associated with the task itself. Some occupations are inherently more stressful than
others. Having to make fast decisions, decisions with less than complete information, or
decisions that have relatively serious consequences are some of the things that can make
some jobs stressful. The jobs of surgeon, airline pilot, and stockbroker are relatively more
stressful than the jobs of general practitioner, baggage handler, and office receptionist.
Although a general practitioner makes important decisions, he is also likely to have time to
make a considered diagnosis and fully explore a number of different treatments. But during
surgery, the surgeon must make decisions quickly while realizing that the wrong one may
endanger his patient’s life (Griffin, 2013).

4.7.2 Organisational Environment and Physical Demands

These are stressors associated with the job setting. Organisational and physical environment
stressors come in many forms. Downsizing is stressful for those who lose their jobs. Even
those who keep their jobs (called layoff survivors) experience stress because of the reduced
job security, chaos of change, additional workloads, and guilt of having a job as others lose
theirs (McShane and Von Glinow, 2008). Working outdoors in extremely hot or cold
temperatures, or even in an improperly heated or cooled office, can also lead to stress.
Likewise, jobs that have rotating work shifts make it difficult for people to have stable sleep
patterns. A poorly designed office, one which, for example, makes it difficult for people to
have privacy or promotes too little social interaction, can result in stress, as can poor lighting

45
and inadequate work surfaces. Even more severe are actual threats to health. Examples
include jobs like coal mining, poultry processing, and toxic waste handling. Similarly, some
jobs carry risks associated with higher incident rates of violence such as armed robberies and
so forth. Examples include law enforcement officers, and taxi drivers (Griffin, 2013).

4.7.3 Role Demands

Role demands can also cause stress. A role is a set of expected behaviours associated with a
position in a group or organisation. Stress can result from either role conflict (which refers to
the degree of incongruity or incompatibility of expectations associated with a person’s role.)
or role ambiguity (which refers to the lack of clarity and predictability of the outcomes of a
person’s behaviour that people can experience in groups) (McShane and Von Glinow, 2008).
For example, an employee who is feeling pressure from her boss to work longer hours or to
travel more, while also being asked by her family for more time at home, will almost
certainly experience stress as a result of role conflict. Similarly, a new employee
experiencing role ambiguity because of poor orientation and training practices by the
organisation will also suffer from stress (Griffin, 2013).

Excessive meetings are also a potential source of stress. Managers imposing the layoffs may
also experience stress.

4.7.4 Interpersonal Demands

The trend toward teamwork generates interpersonal stressors because employees must
interact more with co-workers (McShane and Von Glinow, 2008). Interpersonal stressors are
associated with relationships that confront people in organisations. For example, group
pressures regarding restriction of output and norm conformity can lead to stress. Leadership
styles may also cause stress. An employee who feels a strong need to participate in decision
making may feel stress if his boss refuses to allow such participation. And individuals with
conflicting personalities may experience stress if required to work too closely together. For
example, a person with an internal locus of control might be frustrated when working with
someone who prefers to wait and just let things happen (Griffin, 2013).

Workplace violence is another serious interpersonal stressor. For example, in the United
States of America more than 600 employees are murdered on the job each year and 2 million
others experience lesser forms of physical violence (McShane and Von Glinow, 2008).
46
Psychological harassment is one of the fastest-growing sources of workplace stress.
Psychological harassment includes repeated and hostile or unwanted conduct, verbal
comments, actions, or gestures that affect an employee’s dignity or psychological or physical
integrity and that result in a harmful work environment for the employee. This covers a broad
landscape of behaviours, from threats and bullying to subtle yet persistent forms of incivility
(McShane and Von Glinow, 2008).

Sexual harassment is another form of interpersonal stress. Sexual harassment is a variation of

harassment in which a person’s employment or job appraisal is conditional on unwanted
sexual relations (called quid pro quo ) and/or the person experiences sexual conduct from
others (such as posting pornographic material) that unreasonably interferes with work
performance or creates an intimidating, hostile, or offensive working environment (called a
hostile work environment ) (McShane and Von Glinow, 2008).

4.8 Individual Differences in Stress

Due to unique personal characteristics, people have different stress experiences when
exposed to the same stressor.

One reason is Social support. There is increasing evidence that social support, that is,
collegial relationships with co-workers or supervisors can buffer/cushion the impact of stress.
The logic underlying this moderating variable is that social support helps ease the negative
effects of even high strain jobs. For individuals whose work associates are unhelpful or even
actively hostile, social support may be found outside the job. Involvement with family,
friends, and community can provide the support.

A second reason for different stress outcomes is that people use different coping strategies,
some of which are more effective than others. Research suggests that employees who try to
ignore or deny the existence of a stressor suffer more in the long run than those who try to
find ways to weaken the stressor and seek social support (McShane and Von Glinow, 2008).
The third reason why some people experience less stress than others in the same situation is
that they have different beliefs about the threat and their ability to withstand it. This
explanation really has two parts. The first part refers to the notion that people with more
knowledge and skill usually feel more confident about successfully managing or overcoming
the threat. Someone who flies a plane for the first time tends to experience much more stress

47
than an experienced pilot, for instance. The second part refers is the idea that people who are
optimistic, confident, and often experience positive emotions tend to feel less stress. This
characteristic extends beyond the person’s knowledge and skill; it refers to an important
emerging concept known as resilience- which is the capability of individuals to cope
successfully in the face of significant change, adversity, or risk (McShane and Von Glinow,
2008).
We can also add Hostility. Some people’s personality includes a high degree of hostility and
anger. These people are chronically suspicious and mistrustful of others. Recent evidence
indicates that such hostility significantly increases a person’s stress and risk for heart disease.

4.9 Negative Consequences of Stress

The negative consequences may be behavioural, psychological, and physiological.

4.9.1 Behavioural Consequences

Behaviourally, for example, stress may lead to detrimental or harmful actions, such as
smoking, alcohol or drug abuse, and overeating. Other stress-induced behaviours are accident
proneness, violence toward self or others, and appetite disorders. Substance abuse is also a
potential consequence (Griffin, 2013). Overstressed individuals may also forget important
information and make mistakes. Overstressed employees also tend to have higher levels of
absenteeism. One reason is that stress makes people susceptible to viral and bacterial
infections. The other reason is that absenteeism is a coping mechanism. At a basic level, we
react to stress through ‘fight or flight.’ Absenteeism is a form of flight, temporarily
withdrawing from the stressful situation so that we can reenergise (McShane and Von
Glinow, 2008).

4.9.2 Physiological Consequences

Stress takes its toll on the human body. The stress response shuts down the immune system,
which makes us more vulnerable to viral and bacterial infection. Many people experience
tension headaches due to stress. Others get muscle pain and related back problems. These
physiological ailments are attributed to muscle contractions that occur when people are
exposed to stressors. Cardiovascular disease is one of the most disturbing effects of stress in
modern society. Stress also influences hypertension (high blood pressure) (McShane and Von
Glinow, 2008).

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4.9.3 Psychological Consequences
The psychological consequences of stress can interfere with an individual’s mental health and
well-being. Problems include sleep disturbances, depression, family problems, and sexual
dysfunction (Griffin, 2013). Managers are especially prone to sleep disturbances when they
experience stress at work. Psychological consequences of stress produce various
psychological consequences, including job dissatisfaction, moodiness, depression, and lower
organisational commitment. Emotional fatigue is another psychological consequence of stress
and is related to job burnout. Job burnout refers to the process of emotional exhaustion,
cynicism, and reduced feelings of personal accomplishment resulting from prolonged
exposure to stress (McShane and Von Glinow, 2008).

4.10 Coping with Stress/ Stress Management

How have you managed your stressful experiences? Write down some of the strategies you
have used to manage stress and see how they compare to the strategies explained below.

Both the individual and the organisation can take steps to help the individual manage stress.
Below we discuss ways that individuals can manage stress, and then we examine programs
that organisations use to help employees manage stress. As stated in McShane and Von
Glinow (2008:211-215), Griffin (2013:429-431) and Mullins (2010:141-142) the following
are the major approaches to coping and management of stress:

4.10.1 Individual Approaches

An employee can take personal responsibility for reducing his or her stress level. Individual
strategies that have proven effective include time management techniques, physical exercise,
relaxation training, and a close social support network:
 Time management: Many people manage their time poorly. The things we have to
accomplish in any given day or week are not necessarily beyond completion if we
manage our time properly. The well-organised employee, like the well-organised
student, can often accomplish twice as much as the person who is poorly organised.
Time management principles can help individuals cope better with tensions created by
job demands. A few of the more well-known time management principles are: (1)
making daily lists of activities to be accomplished; (2) prioritizing activities by
importance and urgency; (3) scheduling activities according to the priorities set; and

49
 (4) handling the most demanding parts of your job when you are most alert and
productive.
 Physical activity. Non-competitive physical exercise, such as aerobics, walking,
jogging, swimming, and riding a bicycle, has long been recommended by physicians
as a way to deal with excessive stress levels. These forms of physical exercise
increase heart capacity, lower at-rest heart rate, provide a mental diversion from work
pressures, and offer a means to “let off steam.”
 Relaxation techniques: Individuals can teach themselves to reduce tension through
relaxation techniques such as meditation, hypnosis, and biofeedback. The objective is
to reach a state of deep relaxation, where you feel physically relaxed, somewhat
detached from the immediate environment, and detached from body sensations. 15 or
20 minutes a day of deep relaxation releases tension and provides a person with a
pronounced sense of peacefulness. Importantly, significant changes in heart rate,
blood pressure, and other physiological factors result from achieving the deep
relaxation condition.
 Building social supports: Having friends, family, or colleagues to talk to provides an
outlet when stress levels become excessive. Expanding your social support network,
therefore, can be a means for tension reduction. It provides you with someone to listen
to your problems and to offer a more objective perspective on the situation. Research
also demonstrates that social support moderates the stress-burnout relationship. That
is, high support reduces the likelihood that heavy work stress will result in job
burnout.

4.10.2 Organisational Approaches

In general, strategies to reduce stress include improved processes for choosing employees,
placement of employees in appropriate jobs, realistic goal setting, designing jobs with
employee needs and skills in mind, increased employee involvement, improved
organisational communication, and, establishment of corporate wellness programs:
 Placement of Employees in Appropriate Jobs: Certain jobs are more stressful than
others, but individuals also differ in their response to stress situations. We know, for
example, that individuals with little experience or an external locus of control tend to
be more prone to stress. Selection and placement decisions should take these facts into
consideration. Although management should not restrict hiring to only experienced

50
 individuals with an internal locus of control, such individuals may adapt better to
high-stress jobs and perform those jobs more effectively.
 Realistic Goal Setting: Research shows that individuals perform better when they
have specific and challenging goals and receive feedback on how well they are
progressing toward them. The use of goals can reduce stress as well as provide
motivation. Specific goals that are perceived as attainable clarify performance
expectations. Additionally, goal feedback reduces uncertainties as to actual job
performance. The result is less employee frustration, role ambiguity, and stress.
 Nap Time/ Power Nap: One idea that has received considerable recent attention is
allowing employees to take short naps during the workday. Nap time, apparently, isn’t
just for preschool kids anymore. An increasing number of companies are finding that
allowing employees to catch 10 to 30 minutes of sleep in the afternoon increases
productivity and makes them less prone to errors.
 Improved Organisational Communication: Increasing formal organisational
communication with employees reduces uncertainty by lessening role ambiguity and
role conflict. Given the importance that perceptions play in moderating the stress-
response relationship, management can also use effective communications as a means
to shape employee perceptions. Remember that what employees categorize as
demands, threats, or opportunities are merely interpretations, and those interpretations
can be affected by the symbols and actions communicated by management.
 Establishment of Corporate Wellness Programs: Organisationally supported wellness
programmes can also help manage stress. These programmes focus on the employee’s
total physical and mental condition. For example, they typically include workshops to
help people quit smoking, control alcohol use, lose weight, eat better, and develop a
regular exercise programme. The assumption underlying most wellness programs is
that employees need to take personal responsibility for their physical and mental
health.

4.11 Activity

You can now do the following:

1. What does the term Stress mean?

51
2. Discuss the various components of the General Adaptation Syndrome (GAS).

3. Identify and discuss the major stressors in organisations.

4. Discuss the individual differences in stress and the negative consequences of stress in
organisations.

5. Identify and discuss the major approaches in managing stress in organisations.

4.12 Unit Summary

As shown in this unit, stress is a complex and dynamic and complex concept as it is a
possible source of tension and frustration, and can arise through a number of interrelated
influences on behaviour, including the individual, group, organisational and environmental
factors. It is the adverse reaction people have to excess pressure or other types of demands
placed on them (Mullins, 2010). People are stressed from overwork, job insecurity,
information overload, and the increasing pace of life. These events produce distress which is
the degree of physiological, psychological, and behavioural deviation from healthy
functioning. There is also a positive side of stress, called eustress, which refers to the healthy,
positive, constructive outcome of stressful events and the stress response. Eustress is the
stress experience in moderation, enough to activate and motivate people so that they can
achieve goals. Athletes or stage performers, for example, use stress positively to rise to the
occasion and perform at or near their maximum potential.

4.13 Required Resources

Griffin R.W. (2013). Management (11th Edition). Mason, South-Wesstern, Cengage Learning.

Mcshane S.L and Von Glinow M.A (2008). Organisational Behaviour: Emerging Realities
for the Workplace Revolution (4th Edition). Boston, McGraw Hill Irwin.

Mullins J.L. (2010). Management and Organisational Behaviour (9th Edition). Munich,
Prentice Hall.

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 UNIT FIVE: PERSONALITY AND VALUES

5.1 Introduction
Welcome to Unit Five of this module. This unit discusses personality and values. Personality,
just like physical traits, can be used to describe and differentiate people. Personality basically
refers to the stable patterns of behaviour and internal states of mind that help explain a
person’s behavioural tendencies (Monte, 1991). Values, on the other hand, can be viewed as
stable evaluative beliefs that determine individual preferences for outcomes or courses of
action in a number of situations. This unit therefore, begins by providing an understanding of
the term personality and proceeds to state the determinants of personality. After this, the unit
discusses the major personality traits. This is followed by an outline of the basic principles to
understanding values. The unit then links personality and values in the work place before
ending with an outline of the major international values.

5.2 Unit Aim

The aim of this unit is to enable you to understand the meaning of personality and values, and
distinguish the different types of personality and values.

5.3 Learning Outcomes

By the end of this unit you should be able to:

i) State the meaning of the terms personality and values.
ii) Identify and explain the determinants of personality.
iii) Distinguish the different types of personality traits.
iv) Explain the nature of Terminal and Instrumental Values.
v) Discuss the benefits of linking an individual’s personality and values in the work
place.

5.4 Time Required

It will take you approximately seven (7) hours to work through this unit.

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5.5 What is Personality?
Have you ever used the word personality before? If yes, what were you referring to when you
used it?

Personality refers to the “relatively stable pattern of behaviours and consistent internal states
that explain a person’s behavioural tendencies. Personality has both internal and external
elements. External traits are the observable behaviours that we rely on to identify someone’s
personality” (McShane and Von Glinow, 2008:51). For example, we can see that a person is
extroverted by the way he or she interacts with other people. “The internal states represent the
thoughts, values, and genetic characteristics that we infer from the observable behaviours”
(McShane and Von Glinow, 2008). Personality traits represent some of the most fundamental
sets of individual differences in organisations. Personality is the relatively stable set of
psychological attributes that distinguish one person from another.

The external elements of personality are mainly the overt behaviour and actions that people
rely upon to identify one’s personality. For instance, we can see how confident an individual
is by the way he carries himself, speaks to an audience or interacts with others. The external
trait manifested as confidence will tell us something about the object of our observation. In
other words, it tells us whether someone is aggressive or not or is an introvert or extrovert.
For example, we have at one time or another seen how some tall and seemingly strong boys,
instead of inspiring fear in the opponents, instead attract contempt because their external
demeanour appears weak, nervous and shy, implying that they lack aggressiveness. Lack of
aggression is therefore an observable trait. Some men are very confident talking to women
while others are not and their shyness becomes an outward manifestation which is easily
observable.

Internal traits of personality are internal to the individual and normally they relate to values,
beliefs, feelings and generic characteristics that are referred from the observable behaviour of
a person. Personality therefore, explains behavioural tendencies as an individuals’ personality
is influenced by both the situation and the internal personality traits. However, internal
personality traits may be less obvious in conditions where social norms, reward systems,
ethics, etc., inhibit certain behaviours. For example, talkative people will tend to maintain
relative quietness in a place such as a library, a church or court of law where no talking rules

54
are exploited and strictly enforced. In this scenario, situational conditions influence the
behaviour of a person.

An individual’s personality is both inherited and shaped by the environment. Although our
personality is partly inherited genetically from our parents, these genetic personality
characteristics are in some ways changed by life experiences, such as accidents,
bereavements, type of friendships, significant events in one’s life, how we are treated by
others and generally what we go through as we grow up.

At one time organisational behaviour scholars explained and justified employee behaviour
mainly in terms of personality traits. As a result, many organisations, especially in the west,
administered personality tests on a regular basis to applicants or jobs. This approach changed,
especially in the 1960s when various researchers generally discovered a very weak
relationship between job performance and personality. The researchers generally experienced
problems with measuring personality characteristics and concluded that the connection
between performance and personality could only be established under narrowly defined
conditions.

Consequently, many organisations ceased using personality tests because of concerns that
tests could unfairly discriminate against minorities such as black people in the USA including
other valuable and disadvantaged groups such as migrant workers, women and the old
including people with disabilities. Because of their poor family and educational backgrounds
as well as the unfriendly environment in which the lived, these disadvantaged people tended
to perform badly in the tests compared to white `people. This sub – standard performance had
the effect of re – enforcing the stereotype that such people were inherently inferior and less
intelligent than whites. These unfounded beliefs created a lot of controversy, especially
during the era when many blacks in America and Africa were fighting for their civil rights
and independence from white colonial rule, respectively. Therefore the political climate
became hostile for such tests which were largely abandoned by many organisations.

However, in the last few decades, personality seems to have regained some of its lost
credibility in organisational settings. This is because some scholars and studies reported that
certain personality traits can be used to predict some work related behaviours, reactions to
stressful situations and workplace emotions quite well under certain conditions. As a result a
number of scholars reinstated the idea that effective leaders have identifiable traits and that
personality explained some of a person’s positive and negative attitudes. They also
55
discovered that personality characteristics tend to assist some people find the jobs and
occupations that they are the best suited for. Although personality is to some extent still
considered to be a relatively poor selection test for employees, many organisations have
continued to use personality tests and assessment to hire employees or appraise their
performance.

5.6 Determinants of Personality

What do you think determines a person’s personality? Try to write down some factors that
affect personality and compare them to the factors identified below.
The major question here is what determines personality? Is it hereditary or as result of
interaction with the environment. Let us find out what literature has for us on this debate.
According to Robbins and Judge (2013), personality is determined by three main factors:
Heredity factors, environmental factor and situational factors.

5.6.1 Heredity
Heredity refers to those factors that were determined at conception. Physical stature, facial
attractiveness, gender, temperament, muscle composition and reflexes, energy level, and
biological rhythms are characteristics that are generally considered to be either completely or
largely influenced by your parents’ biological, physiological, and inherent psychological
makeup (Robbins and Judge, 2013). The heredity approach argues that the ultimate
explanation of an individual’s personality is genetic. If personality characteristics were
completely dictated by heredity, they would be fixed at birth and no amount of experience
could alter them. If genetics resulted in your being tense and irritable as a child, for example,
it would not be possible for you to change those characteristics as you grew into an adult. But
personality characteristics are not completely dictated by heredity (Robbins and Judge, 2013).

5.6.2 Environmental Factors

Among the factors that exert pressures on our personality formation are the culture in which
we are raised; our early conditioning; the norms among our family, friends, and social
groups; and other influences that we experience. The environment we are exposed to plays a
substantial role in shaping our personalities. For instance, North Americans have had the
themes of industriousness, success, competition, independence, and the Protestant work ethic
constantly drilled into them through books, the school system, family, and friends. North
Americans, as a result, tend to be ambitious and aggressive compared with individuals raised

56
in cultures that have emphasized getting along with others, cooperation, and the priority of
family over work and career.

If we carefully consider the arguments favouring either heredity or environment as the main
determinant of personality, we are forced to conclude that both are important. Heredity sets
the parameters, or outer limits, but an individual’s full potential will be determined by how
well he or she adjusts to the demands and requirements of the environment.

5.6.3 Situation
A third factor, the situation, influences the effects of heredity and environment on
personality. An individual’s personality, although generally stable and consistent, does
change in different situations. More specifically, the demands of different situations call forth
different aspects of an individual’s personality. We should not, therefore, look at personality
patterns in isolation.

5.7 Personality Traits

Personality traits are enduring characteristics that describe an individual’s behaviour. The
early work in the structure of personality revolved around attempts to identify and label
enduring characteristics that describe an individual’s behaviour. Popular characteristics
include shy, aggressive, submissive, lazy, ambitious, loyal, and timid. Those characteristics,
when they are exhibited in a large number of situations, are called personality Traits. The
more consistent the characteristic and the more often it occurs in different situations, the
more important that trait is in describing the individual.

The “Myers-Briggs Type Indicator” and “the Big Five Model” are two methods that have
been used to determine personality traits (McShane and Von Glinow, 2008).

5.7.1 The Myers-Briggs Type Indicator

One of the most widely used personality frameworks is called the Myers-Briggs Type
Indicator (MBTI). It is essentially a personality test that asks people how they usually feel or
act in particular situations. The MBTI classifies people based on how they prefer to focus
their attention, collect information, process and evaluate information, and orient themselves
to the outer world. These classifications are then combined into 16 personality types (Robbins
and Judge, 2013). Briefly, personality is classified along the following dimensions:

57
 i) Sensing (S)/intuition (N): Some people like collecting information through their five
senses. Sensing types use an organised structure to acquire factual and preferably
quantitative details. In contrast, intuitive people collect information unsystematically.
They rely more on subjective evidence as well as their intuition and sheer inspiration.
Sensers are capable of synthesizing large amounts of seemingly random information
to form quick conclusions (McShane and Von Glinow, 2008).
ii) Thinking (T)/feeling (F): Thinking types rely on rational cause–effect logic and
systematic data collection to make decisions. They weigh the evidence objectively
and unemotionally. Feeling types, on the other hand, consider how their choices affect
others. They weigh the options against their personal values more than rational logic,
(McShane and Vo Glinow, 2008).
iii) Judging (J)/perceiving (P): Some people prefer order and structure in their
relationship with the outer world. These judging types enjoy the control of decision
making and want to resolve problems quickly. In contrast, perceiving types are more
flexible. They like to spontaneously adapt to events as they unfold and want to keep
their options open, (McShane and Von Glinow, 2008).
iv) Extrovert (E)/ introvert (I): these will be discussed under the ‘Big Five Personality.’

Let’s take a look at three examples of MBTI personality types:

i) INTJs are visionaries. They usually have original minds and great drive for their own
ideas and purposes. They are characterised as skeptical, critical, independent,
determined, and often stubborn (Robbins and Judge, 2013).
ii) ESTJs are organisers. They are realistic, logical, analytical, decisive, and have a
natural head for business or mechanics. They like to organise and run activities
(Robbins and Judge, 2013).
iii) ENTPs are conceptualizers. They are innovative, individualistic, versatile, and
attracted to entrepreneurial ideas. They tend to be resourceful in solving challenging
problems but may neglect routine assignments (Griffin, 2013).

Relying solely on personality measures to judge people can have its problems. Ironically,
there is no hard evidence that the MBTI is a valid measure of personality. But lack of
evidence does not seem to deter its use in a wide range of organisations.

5.7.2 The Five Major Personality Dimensions

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According to McShane and Von Glinow (2008:52-53), the five major personality dimensions
are as follows:

Conscientiousness
Conscientiousness refers to people who are careful, dependable, and self-disciplined. Some
scholars argue that this dimension also includes the will to achieve/ win. People with low
conscientiousness tend to be careless, less thorough, more disorganised, and irresponsible.

Agreeableness
This includes the traits of being courteous, good-natured, empathic, and caring. Some
scholars prefer the label of “friendly compliance” for this dimension, with its opposite being
“hostile noncompliance.” People with low agreeableness tend to be uncooperative, short
tempered, and irritable.

Neuroticism/ Emotional Stability

Neuroticism characterises people with high levels of anxiety, hostility, depression, and self-
consciousness. In contrast, people with low neuroticism are poised, secure, and calm.

Openness to Experience
This dimension is the most complex and has the least agreement among scholars. It generally
refers to the extent to which people are sensitive, flexible, creative, and curious. Those who
score low on this dimension tend to be more resistant to change, less open to new ideas, and
more fixed in their ways.

Extroversion
Extroversion characterises people who are outgoing, talkative, sociable, and assertive. The
opposite is introversion, which refers to those who are quiet, shy, and cautious. Introverts do
not necessarily lack social skills. Rather, they are more inclined to direct their interests to
ideas than to social events. Introverts feel quite comfortable being alone, whereas extroverts
do not.

According to Robbins and Judge (2013), the five personality dimensions outlined above
affect workplace behaviour and job performances, as follows:
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 i. People with high emotional stability tend to work better than others in stressful jobs or
occupations.
ii. Employees with high agreeableness usually handle customer relations and conflict –
based situations better.
iii. Conscientiousness tends to be taken as the most valuable personality trait for
predicting job performance in almost every job category. This is because
conscientious employees set higher personal standards and goals for themselves and
have higher performances expectations than do employees with low
conscientiousness. Higher conscientiousness employees will often have higher levels
of organisational citizenship (belongingness) and are more adoptable to empowerment
(i.e. participation in decision making) than to traditional command and control
organisational structures.

Figure 5.1: Big Five Personality Continuum

Source: Robbins and Judge (2013)

Employees with high levels of conscientiousness, agreeableness and emotional stability also
tend to provide better customer relations or service.

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5.8 Other Personality Traits
Scholars have identified other personality traits outside of the five personality dimensions
already discussed above and these are as follows:

5.8.1 Locus of Control

Locus of control is the extent to which people believe that their behaviour has a real effect on
what happens to them. Some people, for example, believe that if they work hard, they will
succeed. People who believe that individuals are in control of their lives are said to have an
internal locus of control (Internalizers). Other people think that fate, chance, luck, or other
people’s behaviour determines what happens to them. For example, an employee who fails to
get a promotion may attribute that failure to a politically motivated boss or just bad luck,
rather than to her or his own lack of skills or poor performance record. People who think that
forces beyond their control dictate what happens to them are said to have an external locus of
control (Externalizers) (Griffin, 2013).

5.8.2 Self Efficacy

Self-efficacy is a person’s beliefs about his or her capabilities to perform a task. People with
high self-efficacy believe that they can perform well on a specific task, whereas people with
low self-efficacy tend to doubt their ability to perform a specific task. Although self-
assessments of ability contribute to self-efficacy, so, too, does the individual’s personality.
Some people simply have more self-confidence than do others. This belief in their ability to
perform a task effectively results in them being more self-assured and more able to focus
their attention on performance (Griffin, 2013).

5.8.3 Self-Monitoring
Self-monitoring refers to an individual’s 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 situational factors. They are highly sensitive to external
cues/indications and can behave differently in different situations, sometimes presenting
striking contradictions between their public persona and their private self. Low self-monitors
cannot disguise themselves in that way. They tend to display their true dispositions and
attitudes in every situation; hence, there is high behavioural consistency between who they
are and what they do. Evidence indicates high self-monitors pay closer attention to the

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behaviour of others and are more capable of conforming than are low self-monitors (Robbins
and Judge, 2013).

5.8.4 Proactive Personality

Did you ever notice that some people actively take the initiative to improve their current
circumstances or create new ones? These are proactive personalities. Those with a proactive
personality identify opportunities, show initiative, take action, and persevere until meaningful
change occurs, compared to others who passively react to situations. Proactives create
positive change in their environment, regardless of, or even in spite of, constraints or
obstacles. Not surprisingly, they have many desirable behaviours that organisations covet/
desire. They are more likely than others to be seen as leaders and to act as change agents.
Proactive individuals are more likely to be satisfied with work and help others more with
their tasks, largely because they build more relationships with others.
Proactives are also more likely to challenge the status quo or voice their displeasure when
situations are not to their liking. If an organisation requires people with entrepreneurial
initiative, proactives make good candidates; however, they’re also more likely to leave an
organisation to start their own business. As individuals, proactives are more likely than others
to achieve career success. They select, create, and influence work situations in their favour.
They seek out job and organisational information, develop contacts in high places, engage in
career planning, and demonstrate persistence in the face of career obstacles (Robbins and
Judge, 2010).

5.8.5 Risk Propensity

This refers to the degree to which an individual is willing to take chances and make risky
decisions. A manager with a high risk propensity, for example, might be expected to
experiment with new ideas and gamble on new products. She might also lead the organisation
in new and different directions. This manager might also be a catalyst for innovation. On the
other hand, the same individual might also jeopardize the continued well-being of the
organisation if the risky decisions prove to be bad ones. A manager with low risk propensity
might lead to a stagnant and overly conservative organisation or help the organisation survive
and succeed in turbulent and unpredictable times by maintaining stability and calm. Thus the
potential consequences of risk propensity to an organisation are heavily dependent on that
organisation’s environment (Griffin, 2013).

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5.8.6 Machiavellianism
The personality characteristic of Machiavellianism (often abbreviated Mach) is named after
Niccolo Machiavelli, who wrote in the sixteenth century on how to gain and use power. An
individual high in Machiavellianism is pragmatic, maintains emotional distance, and believes
ends can justify means. “If it works, use it” is consistent with a high-Mach perspective. A
considerable amount of research has found high Machs manipulate more, win more, are
persuaded less, and persuade others more than do low Machs. They like their jobs less, are
more stressed by their work, and engage in more deviant work behaviours. Yet high-Mach
outcomes are moderated by situational factors, (Robbins and Judge, 2013). High Machs
flourish under the following conditions: When the situation has minimal rules and
regulations, allowing latitude for improvisation; when emotional involvement with details
irrelevant to winning distracts low Machs (Griffin, 2013).

5.8.7 Type A and Type B Personalities

Type A Personalities
Individuals with a Type A personality are excessively competitive and thrive on hard work
and long hours. They work under moderate to high levels of stress. These are people who
always seem to be pushed for time as they want to achieve more in less time. According to
Mullins (2010), type As exhibit the following characteristics:
i) A high need for achievement.
ii) Extreme competitiveness.
iii) Impatience with obstacles to the completion of tasks.
iv) Aggressiveness.
v) A tendency to move and speak rapidly.
vi) An aversion/dislike to idleness.
vii) Restlessness and urgency about time.

Type A people are fast workers because they emphasize quantity over quality. In managerial
positions, Type A people are prone to poor decision making because they make them too fast.
Stressed Type As individuals are also rarely creative. Because of their concern with quantity
and speed, they rely on past experiences when faced with problems. They will not allocate
the time that is necessary to develop unique solutions to new problems. They seldom vary in
their responses to specific challenges in their environment, and so their behaviour is easier to
predict than that of Type Bs (Mullins, 2010).
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Type B Personalities
In contrast to the Type A personality is the Type B, who is exactly the opposite. They may
have high levels of drive and ambition but are more relaxed, work at a steady pace and do not
exhibit a sense of time urgency. Type B people are rarely harried by the desire to obtain a
wildly increasing number of things or participate in an endless growing series of events in an
ever decreasing amount of time (Mullins, 2010). Type B individuals exhibit the following
characteristics:
i) Never suffer from a sense of time urgency with its accompanying impatience.
ii) Feel no need to display or discuss either their achievements or accomplishments
unless such exposure is demanded by the situation.
iii) Play for fun and relaxation, rather than to exhibit their superiority at any cost.
iv) Can relax without guilt.

Type A and Type B Personalities in Organisations

Are Type As or Type Bs more successful in organisations? Despite the hard work of Type
As, Type Bs are the ones who appear to make it to the top. Great salespeople are usually
Type As; senior executives are usually Type Bs. Why? The answer lies in the tendency of
Type As to trade off quality of effort for quantity. Promotions in corporate and professional
organisations usually go to those who are wise rather than to those who are merely hasty, to
those who are tactful rather than to those who are hostile, and to those who are creative rather
than to those who are merely agile in competitive strife

Recent research has looked at the effect of job complexity on the cardiovascular health of
both Type A and Type B individuals to see whether Type As always suffered negative health
consequences. Type B individuals did not suffer negative health consequences from jobs with
psychological complexity. Type A workers who faced high job complexity had higher death
rates from heart-related disorders than Type As who faced lower job complexity. These
findings suggest that, health-wise, Type B workers suffer less when handling more complex
jobs than do Type As. It also suggests that Type As who face lower job complexity do not
encounter the same health risks as Type As who face higher job complexity (Mullins, 2010).

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5.9 Understanding Values
Is capital punishment right or wrong? If a person likes power, is that good or bad? The
answers to these questions are value laden. Some might argue capital punishment is right
because it is an appropriate retribution for crimes such as murder and treason. Others might
argue, just as strongly, that no government has the right to take anyone’s life (Robbins and
Judge, 2013).

Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of
action in a variety of situations. They are perceptions about what is good or bad, right or
wrong. Values tell us what we “ought” to do. They serve as a moral compass that directs our
motivation and, potentially, our decisions and actions. They contain a judgmental element in
that they carry an individual’s ideas as to what is right, good, or desirable (McShane and Von
Glinow, 2008). Values have both content and intensity attributes. The content attribute says a
mode of conduct or end-state of existence is important. The intensity attribute specifies how
important it is. When we rank an individual’s values in terms of their intensity, we obtain that
person’s value system. All of us have a hierarchy of values that forms our value system. We
find it in the relative importance we assign to values such as freedom, pleasure, self-respect,
honesty, obedience, and equality (Robbins and Judge, 2013).

Values tend to be relatively stable and enduring. A significant portion of the values we hold
is established in our early years—by parents, teachers, friends, and others. As children, we
are told certain behaviours or outcomes are always desirable or always undesirable, with few
gray areas. For example, you were never taught to be just a little bit honest or a little bit
responsible, you were taught to be absolutely honest and responsible. It is this absolute, or
“black- or-white,” learning of values that ensures their stability and endurance (Robbins and
Judge, 2013). Values change. They change because we want them to; they change sometimes
even when we did not mean them to. They change because something happens in our life;
they change because something did not happen. They change because we grow. Some values
and beliefs do not change, but many do, and they continue to change throughout our lives
(Robbins and Judge, 2013).

5.10 Espoused and Enacted Values

Before going deeper in our discussion on workplace values, we need to distinguish between
espoused and enacted values. Espoused values represent the values that we say we use and,

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in many cases, think we use. Corporate leaders might say they value environmentalism,
creativity, and politeness, whether or not they really do value these things in practice. Values
are socially desirable, so people create a positive public image by claiming to believe in
values that others expect them to embrace. Enacted values, on the other hand, represent the
values we actually rely on to guide our decisions and actions. These values-in-use are
apparent by watching people in action. Just as we judge an individual’s personality by
behavioural tendencies, so too do we judge enacted values by behavioural tendencies
(McShane and Von Glinow, 2008).

5.11 Importance of Values

Values lay the foundation for our understanding of people’s attitudes and motivation and
influence our perceptions. We enter an organisation with preconceived notions of what
“ought” and “ought not” to be. These notions are not value-free; on the contrary, they contain
our interpretations of right and wrong and our preference for certain behaviours or outcomes
over others. As a result, values cloud objectivity and rationality; they influence attitudes and
behaviour (Robbins and Judge, 2013). Suppose you enter an organisation with the view that
allocating pay on the basis of performance is right, while allocating pay on the basis of
seniority is wrong. How will you react if you find the organisation you’ve just joined rewards
seniority and not performance? You are likely to be disappointed and this can lead to job
dissatisfaction and a decision not to exert a high level of effort because it’s probably not
going to lead to more money anyway (Robbins and Judge, 2013).

5.12 Terminal versus Instrumental Values

Milton Rokeach created the Rokeach Value Survey (RVS) which is a framework for
understanding values. It consists of two sets of values, each containing individual value
items. One set, called terminal values, refers to desirable end-states. These are the goals a
person would like to achieve during his or her lifetime. The other set, called instrumental
values, refers to preferable modes of behaviour, or means of achieving the terminal values.
Some examples of terminal values in the Rokeach Value Survey are: Prosperity and
economic success, freedom, health and well-being, world peace, social recognition, and
meaning in life. The types of instrumental values illustrated in RVS are: Self-improvement,
Autonomy and self-reliance, Personal discipline, kindness, Ambition, and Goal-orientation
(Robbins and Judge, 2013). Several studies confirm that RVS values vary among groups.
People in the same occupations or categories (corporate managers, union members, parents,
students) tend to hold similar values. One study compared corporate executives, members of
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the steelworkers’ union, and members of a community activist group. Although there was a
good deal of overlap among them, there were also significant differences. The activists
ranked equality as their most important terminal value; Executives and union members
ranked this value 12 and 13, respectively. Activists ranked ‘helpful’ as their second-highest
instrumental value. The other two groups both ranked it 14. Because executives, union
members, and activists all have a vested interest in what corporations do, these differences
can create serious conflicts when groups contend with each other over an organisation’s
economic and social policies (Robbins and Judge, 2013).

5.13 Generational Values

The idea here is to compare generational differences in values and identify the dominant
values in today’s workforce. Researchers have integrated several recent analyses of work
values into four groups that attempt to capture the unique values of different cohorts or
generations in the U.S. workforce (Robbins and Judge, 2013). The first obvious limitation
here is that this may not apply across all cultures. Second, despite a steady stream of press
coverage, there is very little rigorous research on generational values, so we have to rely on
an intuitive framework. Finally, these are imprecise categories. There is no law that someone
born in 1985 cannot have values similar to those of someone born in 1955. Despite these
limitations, values do change over generations, and we can gain some useful insights from
analyzing values this way.

Robbins and Judge (2013:146-147) list the following as generational values:

5.13.1 Boomers (Baby Boomers)

They are a large cohort born after World War II when veterans returned to their families and
times were good. Boomers entered the workforce from the mid-1960s through the mid-1980s.
They brought with them a large measure of the “hippie ethic” and distrust of authority. But
they place a great deal of emphasis on achievement and material success. They are
pragmatists who believe ends can justify means- they work hard and want to enjoy the fruits
of their labours. Boomers see the organisations that employ them merely as vehicles for their
careers. Terminal values such as a sense of accomplishment and social recognition rank high
with them.

5.13.2 Xers (Generation Xers)

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The lives of Xers (Generation Xers) have been shaped by globalization, two-career parents,
MTV, AIDS, and computers. Xers value flexibility, life options, and the achievement of job
satisfaction. Family and relationships are very important. Xers are skeptical, particularly of
authority. They also enjoy team-oriented work. In search of balance in their lives, Xers are
less willing to make personal sacrifices for the sake of their employer. On the RVS, they rate
high on true friendship, happiness, and pleasure.

5.13.3 Millennials
The most recent entrants to the workforce, the Millennials (also called Netters, Nexters,
Generation Yers, and Generation Nexters) grew up during prosperous times. They have high
expectations and seek meaning in their work. Millennials have life goals more oriented
toward becoming rich (81 percent) and famous (51 percent) than do Generation Xers (62
percent and 29 percent, respectively), but they also see themselves as socially responsible. At
ease with diversity, Millennials are the first generation to take technology for granted. More
than other generations, they tend to be questioning, electronically networked, and
entrepreneurial. At the same time, some have described Millennials as entitled and needy.

5.14 Linking an Individual’s Personality and Values in the Workplace

Previous, organisations were concerned only with personality because their primary focus
was to match individuals to specific jobs. That concern has expanded to include how well the
individual’s personality and values match the organisation. This is because managers today
are less interested in an applicant’s ability to perform a specific job than with his or her
flexibility to meet changing situations and commitment to the organisation.

5.14.1 Person–Job Fit

According to Griffin and Moorhead (2004:89), “person- job fit is the extent to which the
contributions made by the individual match the inducements offered by the organisation.”
The effort to match job requirements with personality characteristics is best articulated in
John Holland’s personality–job fit theory. The theory proposes that satisfaction and the
propensity to leave a position depend on how well individuals match their personalities to a
job. The theory argues that satisfaction is highest and turnover lowest when personality and
occupation are in agreement. The key points of this model are that: there do appear to be
intrinsic differences in personality among individuals; there are different types of jobs; and

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people in jobs congruent with their personality should be more satisfied and less likely to
voluntarily resign than people in incongruent job (Robbins and Judge, 2013).

5.14.2 Person–Organisation Fit

We’ve noted that researchers have looked at matching people to organisations as well as to
jobs. If an organisation faces a dynamic and changing environment and requires employees
able to readily change tasks and move easily between teams, it is more important that
employees’ personalities fit with the overall organisation’s culture than with the
characteristics of any specific job (Robbins and Judge, 2013).

The person–organisation fit essentially argues that people are attracted to and selected by
organisations that match their values, and they leave organisations that are not compatible
with their personalities. Using the Big Five terminology, for instance, we could expect that
people high on extraversion fit well with aggressive and team-oriented cultures, that people
high on agreeableness match up better with a supportive organisational climate than one
focused on aggressiveness, and that people high on openness to experience fit better in
organisations that emphasize innovation rather than standardization. Following these
guidelines at the time of hiring should identify new employees who fit better with the
organisation’s culture, which should, in turn, result in higher employee satisfaction and
reduced turnover. Research on person–organisation fit has also looked at whether people’s
values match the organisation’s culture (Read Robbins and Judge, 2013).

5.15 International Values/ Values across Cultures

“Anyone who has worked long enough in other countries will know that values differ across
cultures. Some cultures value group decisions, whereas others think that the leader should
take charge. Meetings in Germany usually start on time, whereas they might be half an hour
late in Brazil without much concern. We need to be sensitive to the fact that cultural
differences exist and, although often subtle, can influence decisions, behaviour, and relations
among employees” (McShane and Von Glinow, 2008:45).
“One of the most widely referenced approaches for analyzing variations among cultures was
done in the late 1970s by Geert Hofstede. He surveyed more than 116,000 IBM employees in
40 countries about their work-related values and found that managers and employees vary on
five value dimensions of national culture” (Robbins and Judge, 2013:150).

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5.15.1 Power Distance
Power distance describes the degree to which people accept unequal distribution of power in
a firm/society/country. People with high power distance accept and value unequal power,
value obedience to authority, and are comfortable receiving commands from their superiors
without consultation or debate. High power distance individuals also prefer resolving
differences or contradicting their boss indirectly through formal procedures rather than
directly. In contrast, people with low power distance expect relatively equal power sharing.
They view the relationship with their boss as one of interdependence, not dependence; that is,
they believe their boss is also dependent on them, so they expect power sharing and
consultation before decisions affecting them are made (McShane and Von Glinow, 2008).

5.15.2 Individualism versus Collectivism

Individualism is the extent to which we value independence and personal uniqueness. Highly
individualist people value personal freedom, self-sufficiency, control over their own lives,
and appreciation of the unique qualities that distinguish them from others. Collectivism on
the other hand is the extent to which we value our duty to groups to which we belong, as well
as group harmony. Highly collectivist people define themselves by their group membership
and value harmonious relationships within those groups (McShane and Von Glinow, 2008).

5.15.3 Masculinity versus Femininity

Masculinity is the degree to which the culture favours traditional masculine roles such as
achievement, power, and control, as opposed to viewing men and women as equals. A high
masculinity rating indicates the culture has separate roles for men and women, with men
dominating the society. A high femininity rating means the culture sees little differentiation
between male and female roles and treats women as the equals of men in all respects
(Robbins and Judge, 2013).

5.15.4 Uncertainty Avoidance

Uncertainty avoidance is the degree to which people tolerate ambiguity (low uncertainty
avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance).
Employees with high uncertainty avoidance value structured situations where rules of
conduct and decision making are clearly documented. They usually prefer direct rather than
indirect or ambiguous communications (McShane and Von Glinow, 2008). People in cultures

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low on uncertainty avoidance are more accepting of ambiguity, are less rule oriented, take
more risks, and more readily accept change (Robbins and Judge, 2013).

5.15.5 Long-term versus Short-term Orientation

This newest addition to Hofstede’s typology measures a society’s devotion to traditional
values. People in a culture with long-term orientation look to the future and value thrift,
persistence, and tradition. In a short-term orientation, people value the here and now; they
accept change more readily and do not see commitments as impediments to change (Robbins
and Judge, 2013).

5.16 Activity

You can now do the following:

1. Define personality and state the its determinants.
2. Identify and explain the major personality traits.
3. What are values? Identify and explain the major values across cultures.
4. Discuss the link between personality and values in the work place.

5.17 Unit Summary

Personality refers to the “relatively stable pattern of behaviours and consistent internal states
that explain a person’s behavioural tendencies. Personality has both internal and external
elements. External traits are the observable behaviours that we rely on to identify someone’s
personality” (McShane and Von Glinow, 2008:51). For example, we can see that a person is
extroverted by the way he or she interacts with other people. “The internal states represent the
thoughts, values, and genetic characteristics that we infer from the observable behaviours”
(McShane and Von Glinow, 2008). “Personality traits represent some of the most
fundamental sets of individual differences in organisations. Personality is the relatively stable
set of psychological attributes that distinguish one person from another.”

Personality traits are enduring characteristics that describe an individual’s behaviour. The
early work in the structure of personality revolved around attempts to identify and label
enduring characteristics that describe an individual’s behaviour. Popular characteristics

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include shyness, aggressiveness, submissiveness, laziness, ambition, loyalty, and timidity.
These characteristics, when they are exhibited in a large number of situations, are called
personality Traits. The more consistent the characteristic and the more often it occurs in
different situations, the more important that trait is in describing the individual.

The “Myers-Briggs Type Indicator” and “the Big Five Model” are two methods that have
been used to determine personality traits (McShane and Von Glinow, 2008).

Other personality traits are as follows; Locus of Control (the extent to which people believe
that their behaviour has a real effect on what happens to them), Self Efficacy ( a person’s
beliefs about his or her capabilities to perform a task), Self-Monitoring (self-monitoring
refers to an individual’s ability to adjust his or her behaviour to external, situational factors),
Proactive Personality, Risk Propensity (the degree to which an individual is willing to take
chances and make risky decisions), Machiavellianism (an individual high in
Machiavellianism is pragmatic, maintains emotional distance, and believes ends can justify
means), Type A Personalities (excessively competitive and thrive on hard work and long
hours, and work under moderate to high levels of stress, Type B Personalities (may have
high levels of drive and ambition but are more relaxed, work at a steady pace and do not
exhibit a sense of time urgency).

Values, on the other hand, are stable, evaluative beliefs that guide our preferences for
outcomes or courses of action in a variety of situations. They are perceptions about what is
good or bad, right or wrong. Values tell us what we “ought” to do. They serve as a moral
compass that directs our motivation and, potentially, our decisions and actions in
organisations and other aspects of life. Values tend to be relatively stable and enduring. A
significant portion of the values we hold is established in our early years—by parents,
teachers, friends, and others. Values lay the foundation for our understanding of people’s
attitudes and motivation and influence our perceptions.

Previous, organisations were concerned only with personality because their primary focus
was to match individuals to specific jobs. That concern has expanded to include how well the
individual’s personality and values match the organisation. This is because managers today
are less interested in an applicant’s ability to perform a specific job than with his or her
flexibility to meet changing situations and commitment to the organisation.
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5.18 Required Resources

Griffin R.W. (2013). Management (11th Edition). Mason, South-Wesstern, Cengage Learning.

Griffin R.W. and Moorhead G. (2004). Organisational Behaviour: Managing People and
Organisations (7th Edition). New York, Houghton Mifflin Company.

Mcshane S.L and Von Glinow M.A (2008). Organisational Behaviour: Emerging Realities
for the Workplace Revolution (4th Edition). Boston, McGraw Hill Irwin.

Monte (1991)

Mullins J.L. (2010). Management and Organisational Behaviour (9th Edition). Munich,
Prentice Hall.

Robbins S.P. and Judge T.A. (2013). Organisational Behaviour (15th Edition). New Jersey,
Pearson Education Inc.

UNIT SIX: CONTENT THEORIES OF MOTIVATION

6.1 Introduction
I am pleased to welcome you to Unit Six of this module. This unit focuses on discussing the
content theories of motivation which include the following: Maslow’s Hierarchy of Needs
Model; Alderfers’s ERG Theory; Herzberg’s Two Factor Theory; McClelland Achievement
Motivation Theory. In addition to these, the unit adds McGregor’s Theory X and Theory Y,
and Theory Z ( a Japanese model). However, before discussing these theories the unit begins
by defining the term motivations and explaining the concept of “money” as a motivator.

6.2 Unit Aim

The aim of this unit is to enable you to understand the term motivation and the major content
theories of motivation.

6.3 Learning Outcomes

By the end of this unit you should be able to:

i) Define the term motivation
ii) Explain the nature of money as a motivator
iii) Compare the major content theories of motivation.
iv) Contrast the major content theories of motivation.
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6.4 Time Required

It will take you approximately ten (10) hours to work through this unit.

6.5 Definition of Motivation

What comes to your mind when you hear the word motivation? Write down atleast two
definitions of motivation in your own words and see how they compare to the definitions
provided below.

Motivation is defined as individual’s intention or willingness to put maximum effort in

his/her work to reach organisational goals and enhance one’s ability to satisfy some
individual needs. Motivation is the internal and external factors that lead an individual to
engage in goal-related behaviour. Motivation can affect the intensity, direction, and
persistence a person shows in working toward a goal. Intensity is concerned with how hard a
person tries. This is what most of us focus on when we talk about motivation. However, high
intensity is unlikely to positively affect job performance unless the effort is channelled in a
direction that is useful. Finally, the effort requires persistence. This is a measure of how long
a person can maintain his or her effort. Motivated individuals stay with a task long enough to
achieve their goal (McShane and Von Glinow, 2008; Robbins and Judge, 2013).

As we analyze the concept of motivation, keep in mind that the level of motivation varies
both between individuals and within individuals at different times. What motivates people
will also vary for both the individual and the situation.

Motivation theorists talk about two types of motivators, intrinsic motivators and extrinsic
motivators. Extrinsic motivators come from outside the person and include such things as
pay, bonuses, and other tangible rewards. Intrinsic motivators come from a person’s internal
desire to do something, motivated by such things as interest, challenge, and personal
satisfaction. Individuals are intrinsically motivated when they genuinely care about their
work, look for better ways to do it, and are energized and fulfilled by doing it well. The
rewards the individual gets from intrinsic motivation come from the work itself, rather than
from external factors such as increases in pay or compliments from the boss.

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6.6 Money as a Motivator
Do you think money is a motivator? How strong do you think it is as a motivator? Let us find
our what scholars think about the preceding questions.

Earlier writers, such as F. W. Taylor, believed in economic needs motivation. They argued
that workers would be motivated by obtaining the highest possible wages through working in
the most efficient and productive way. For Taylor, motivation was a comparatively simple
issue – what the workers wanted from their employers more than anything else was high
wages. This approach is the rational–economic concept of motivation. The assertion is that
where there is little pleasure in the work itself or the job offers little opportunity for career
advancement, personal challenge or growth, many people may appear to be motivated
primarily, if not exclusively, by money (Mullins, 2010). However, reality appears to be that
for the vast majority of people, money is clearly important and a motivator at work but to
what extent and how important depends upon their personal circumstances and the other
satisfactions they derive from work. The bottom line is surely the extent to which money
motivates people to work well and to the best of their abilities. Although pay may still make
people tick, there are now a number of other important influences on motivation. For many
people, the feeling of being recognised and valued appears more important than money in
motivating them to stay in a particular job (Mullins, 2010).

6.7 Content Theories of Motivation

There are many competing theories that attempt to explain the nature of motivation. These
theories may all be at least partially true and help to explain the behaviour of certain people at
certain times. The fact is that there is no ready-made solution or single answer to what
motivates people to work well. This is what makes the different theories important to
managers. Collectively, the different theories provide a framework within which to direct
attention to the problem of how best to motivate staff to work willingly and effectively. It is
important to emphasise, however, that these various theories are not conclusive. They all
have their critics or have been subject to alternative findings that purport to contradict
original ideas (Mullins, 2010).

The various motivation theories have been divided into two broad categories, content theories
and process theories. Content perspectives on motivation deal with the first part of the
motivation process, needs and need deficiencies. More specifically, content perspectives

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address the question, ‘what factor or factors in the workplace motivate people? Some people,
like labour leaders, often argue that workers can be motivated by more pay, shorter working
hours, and improved working conditions. Meanwhile, some experts suggest that motivation
can be more effectively enhanced by providing employees with more autonomy and greater
responsibility. Both of these views represent content views of motivation. The former asserts
that motivation is a function of pay, working hours, and working conditions; the latter
suggests that autonomy and responsibility are the causes of motivation (Griffin, 2013).

According to Mullins (2010:295), there are basically four content theories of motivation that
have been identified and these are:
i) Maslow’s hierarchy of needs model;
ii) Alderfer’s ERG theory;
iii) Herzberg’s two-factor theory;
iv) McClelland’s achievement motivation theory.
6.7.1 Maslow’s Hierarchy of Needs Theory
Maslow’s basic proposition is that people are wanting beings, they always want more, and
what they want depends on what they already have. He suggests that human needs are
arranged in a series of levels, a hierarchy of importance. The hierarchy is usually shown as
ranging through five main levels, from physiological needs, through safety needs, love needs
and esteem needs, to the need for self-actualization at the highest level. The hierarchy of
needs may be shown as a series of steps but is usually displayed in the form of a pyramid
(Mullins, 2010).

Physiological Needs
Physiological needs include the need for sunlight, food, water, oxygen and, arguably, sex.
These are basic to human survival, are called physiological needs. At work level, this need
can be met through by providing good working conditions, attractive wage or salary,
subsidized housing, free catering, among others (Mullins, 2010; Griffin, 2013).

Figure 6.1: Maslow’s Hierarchy of Needs

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Source: Mullins (2010)

Safety Needs
The safety needs include the need for freedom from threat caused by the environment,
animals and people. These include the desire for housing and clothing and the need to be free
from worry about money and job security. These needs can be satisfied in the workplace by
job continuity (no layoffs), a grievance system (to protect against arbitrary supervisory
actions), and an adequate insurance and retirement benefit package (for security against
illness and provision of income in later life) (Griffin, 2013; Mullins, 2010; McShane and Von
Glinow, 2008).

Love and Belonging Needs

Belongingness needs relate to social processes. They include the need for love and affection
and the need to be accepted by one’s peers. These needs are satisfied for most people by
family and community relationships outside of work and by friendships on the job. A
manager can help satisfy these needs by allowing social interaction through company sports,
social clubs, office parties, and by making employees feel like part of a team or work group.
Informal groups/activities can also satisfy belonging needs (Mullins, 2010; Griffin, 2010).

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Self Esteem Needs
Esteem needs actually comprise two different sets of needs: the need for a positive self image
and self-respect, and the need for recognition and respect from others. A manager can help
address these needs by providing a variety of extrinsic symbols of accomplishment, such as
prestigious job titles, nice offices, promotions, similar rewards, and photographs in company
newsletters, among others. At a more intrinsic level, the manager can provide challenging job
assignments and opportunities for the employee to feel a sense of accomplishment (Griffin,
2013).

Self-Actualization Needs/ Growth Needs

At the top of the hierarchy are the self-actualization needs. These involve realizing one’s
potential for continued growth and individual development. The self-actualization needs are
perhaps the most difficult for a manager to address. In fact, it can be argued that these needs
must be met entirely from within the individual. But a manager can help by promoting a
culture wherein self-actualization is possible. For instance, a manager could give employees a
chance to participate in making decisions about their work and the opportunity to learn new
things (Griffin, 2013).
Maslow suggests that an individual is motivated first and foremost to satisfy physiological
needs. As long as these remain unsatisfied, the individual is motivated to fulfill only them.
When satisfaction of physiological needs is achieved, they cease to act as primary
motivational factors, and the individual moves up the hierarchy and becomes concerned with
security needs. This process continues until the individual reaches the self-actualization level
(Griffin, 2013).

Maslow’s concept of the needs hierarchy has a certain intuitive logic and has been accepted
by many managers. But research has revealed certain shortcomings and defects in the theory.
Some research has found that five levels of need are not always present and that the order of
the levels is not always the same as postulated by Maslow. In addition, people from different
cultures are likely to have different need categories and hierarchies (Griffin, 2013). Other
criticisms, according to Mullins (2010:297) include the following:
 For some innately creative people the drive for creativity and self-actualisation may
arise despite lack of satisfaction of more basic needs.

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  Higher-level needs may be lost in some people who will continue to be satisfied at
lower levels only: for example, a person who has experienced chronic unemployment.
 Some people who have been deprived of love in early childhood may experience the
permanent loss of love needs.

6.7.2 Alderfer’s ERG Theory

Alderfer’s ERG refers to three groups of core needs – Existence, Relatedness and Growth
(ERG). Alderfer proposed a modified version of Maslow’s need hierarchy and labelled it as
ERG theory. This theory collapses the needs hierarchy developed by Maslow into three
levels. The said needs, as stated by Griffin (2013) and Mullins (2010) are explained as
follows:

Existence Needs
They are concerned with sustaining human existence and survival. These needs are all the
various forms of physiological and safety needs such as hunger, thirst and shelter. In
organisational settings, the need for pay, benefits, and physical working conditions are also
included in this category. This category is comparable to Maslow’s physiological and
security/safety needs.

Relatedness Needs
These needs include all those that involve interpersonal relationships with others in the
workplace. In Maslow’s hierarchy, these would encompass both the need to belong and the
need to earn the esteem of others.

Growth Needs
Growth needs, the highest level in this theory, include the needs for self-esteem and self-
actualization. These needs involve a person’s efforts toward creative or personal growth on
the job. Maslow’s self-actualization and certain of his esteem needs are comparable to these
growth needs.

Although the ERG theory assumes that motivated behaviour follows a hierarchy in somewhat
the same fashion as suggested by Maslow, there are two important differences. First, the
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ERG theory suggests that more than one level of need can cause motivation at the same time.
For example, it suggests that people can be motivated by a desire for money (existence),
friendship (relatedness), and the opportunity to learn new skills (growth) all at once. Second,
the ERG theory has what has been called a frustration-regression element. Thus, if needs
remain unsatisfied, the individual will become frustrated, regress to a lower level, and begin
to pursue those things again (Griffin, 2013). For example, a worker previously motivated by
money (existence needs) may have just been awarded a pay raise sufficient to satisfy those
needs. Suppose that he then attempts to establish more friendships to satisfy relatedness
needs. If for some reason he finds that it is impossible to become better friends with others in
the workplace, he eventually gets frustrated and regresses to being motivated to earn even
more money (Griffin, 2013).

ERG theory is based upon three major propositions listed here under:
i. The less each level of need has been satisfied, the more it will be desired. For
example, the less existence needs (pay) have been satisfied on the job, the more they
will be desired.
ii. The more lower level needs have been satisfied, the greater the desire for higher level
needs. For example, the more existence needs have been satisfied for the individual
worker (pay), the greater the desire for relatedness needs (satisfying interpersonal
relationships).
iii. The less the higher level need have been satisfied, the more the lower level needs will
be desired (need frustration). For example, the less growth needs have been satisfied
(challenging work), the more relatedness needs will be desired (satisfying
interpersonal relationships).

6.7.3 Motivation- Hygiene Theory/ Herzberg Two-Factor Theory

Frederick Herzberg developed his theory after interviewing 200 accountants and engineers.
He asked them to describe, in detail, situations in which they felt exceptionally good or bad
about their Jobs. He wanted to find out what people want from their jobs in an effort to
determine what might lead to a person’s success or failure at work. He found that intrinsic
factors such as achievement, recognition, the work itself, responsibility, advancement, and
growth seem to be related to job satisfaction. Herzberg also found that there were
characteristics that led to job dissatisfaction. The factors that caused dissatisfaction were

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extrinsic, such as company policy and administration, supervision, interpersonal relations,
and working conditions (Mullins 2010; Robbins and Judge, 2013; Griffin, 2013).

Herzberg concluded that the opposite of satisfaction is not dissatisfaction, as was traditionally
believed. He submitted that the opposite of satisfaction is no satisfaction, and the opposite of
dissatisfaction is no dissatisfaction. He argued that removing dissatisfying characteristics
from a job does not necessarily make the job satisfying. Herzberg identified two different
dimensions altogether: one ranging from satisfaction to no satisfaction and the other ranging
from dissatisfaction to no dissatisfaction (Robbins and Judge, 2013; Griffin, 2013). The
factors influencing the satisfaction continuum—called motivation
factors/motivators/satisfiers are related specifically to the work content (promotional
opportunities, personal growth opportunities, recognition, responsibility, and achievement).
The factors presumed to cause dissatisfaction—called hygiene factors/dissatisfiers are related
to the work environment (company policy and administration, supervision, interpersonal
relations, working conditions, and salary). According to Herzberg, the factors that lead to job
satisfaction are separate and distinct from those that lead to job dissatisfaction. Therefore,
managers who seek to eliminate factors that can create job dissatisfaction may bring about
peace, but not necessarily motivation (Robbins and Judge, 2013; Griffin, 2013; Mullins,
2010).

Based on these findings, Herzberg argued that there are two stages in the process of
motivating employees. First, managers must ensure that the hygiene factors are not deficient.
For instance, pay and security must be appropriate, working conditions must be safe,
technical supervision must be acceptable, and so on. By providing hygiene factors at an
appropriate level, managers do not stimulate motivation but merely ensure that employees are
not dissatisfied (Griffin, 2013). Employees whom managers attempt to satisfy through
hygiene factors alone will usually do just enough to get by. Thus, managers should proceed to
stage two by giving employees the opportunity to experience motivation factors such as
achievement and recognition. The result is predicted to be a high level of satisfaction and
motivation. Herzberg also went a step further than most other theorists and described exactly
how to use the two-factor theory in the workplace. Specifically, he recommended job
enrichment. He argued that jobs should be redesigned to provide higher levels of the
motivation factors (Griifin, 2013).

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Herzberg’s model sensitizes that merely treating the employees well through the good
company policies is not sufficient to motivate them. Managers should utilize the skills,
abilities, and talents of the people at work through effective job designing. In other words, the
work given to employees should be challenging and exciting and offer them a sense of
achievement, recognition, and growth. Unless these characteristics are present in the job,
employees will not be motivated.

Figure 6.2: Motivation Factors and Hygiene Factors

Source: Griffin (2013)

Although widely accepted by many managers, Herzberg’s two-factor theory is not without its
critics. One criticism is that his sample was not representative of the general population and
that subsequent research often failed to uphold the theory. It has also been argued that
Herzberg’s methodology is limited because it relies on self-reports. When things are going
well, people tend to take credit. Contrarily, they blame failure on the extrinsic environment.
Another criticism is that Herzberg assumed a relationship between satisfaction and
productivity, but he looked only at satisfaction. To make his research relevant, we must
assume a strong relationship between satisfaction and productivity (Robbins and Judge, 2013;
Griffin, 2013; Mullins, 2010).

However, this theory has played a key role in increasing managers’ awareness of motivation
and its importance in the workplace. The popularity of jobs that allow employees greater

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responsibility in planning and controlling their work can probably be attributed largely to
Herzberg’s findings and recommendations.

Figure 6.3: Linking Maslow’s, Alderfer’s, and Herzberg’s Theories of Motivation

Source: Mullins (2010)

6.7.4 McClelland’s Achievement Motivation Theory (Three – Needs Theory)

McClelland’s work originated from investigations into the relationship between hunger needs
and the extent to which imagery of food dominated thought processes. From subsequent
research McClelland, according to Mullins (2010:302), identified four main arousal-based,
and socially developed, motives:
i) The Achievement motive.
ii) The Power motive.
iii) The Affiliative motive.
iv) The Avoidance motive.

The first three motives correspond, roughly, to Maslow’s self-actualisation, esteem and love
needs. The relative intensity of these motives varies between individuals. It also tends to vary
between different occupations. Managers appear to be higher in achievement motivation than
in affiliation motivation. McClelland saw the achievement need as the most critical for the
country’s economic growth and success. The need to achieve is linked to entrepreneurial
spirit and the development of available resources (Mullins, 2010).

Use of projective tests

Research studies by McClelland use a series of projective ‘tests’ – Thematic Apperception
Tests (TATs) – to gauge an individual’s motivation. For example, individuals are shown a

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number of pictures in which some activity is depicted. Respondents are asked to look briefly
(10–15 seconds) at the pictures and then to describe what they think is happening, what the
people in the picture are thinking and what events have led to the situation depicted. The
descriptions are used as a basis for analysing the strength of the individual’s motives
(Mullins, 2010).

Need for Achievement (nAch)

This is the drive to excel, to achieve in relationship to a set of standards. The following are
the features of nAch:
i) High nAch people prefer moderate task difficulty and goals as an achievement
incentive. This provides the best opportunity of proving they can do better. High
achievers are not gamblers, they dislike succeeding by chance. If the task is too
difficult or too risky, it would reduce the chances of success and of gaining need
satisfaction. If the course of action is too easy or too safe, there is little challenge in
accomplishing the task and little satisfaction from success.
ii) They prefer personal responsibility for performance. They like to attain success
through the focus of their own abilities and efforts rather than by teamwork or chance
factors outside their control. Personal satisfaction is derived from the accomplishment
of the task and recognition from other people. They accept personal responsibility for
success or failure.
iii) They have the need for clear and unambiguous feedback on how well they are
performing. Knowledge of results within a reasonable time is necessary for self-
evaluation. Feedback enables them to determine success or failure in the
accomplishment of their goals and to derive satisfaction from their activities.
iv) They are more innovative. As they always seek moderately challenging tasks they
tend always to be moving on to something a little more challenging. In seeking short
cuts they are more likely to cheat. There is a constant search of new ways of doing
things. They are more restless and avoid routine and also tend to travel more (Mullins,
2010; Robbins and Judge, 2013, McShane and Von Glinow, 2008).

We can therefore conclude that, over years of empirical research, McClelland identified four
characteristics of people with a strong achievement need (n-Ach): a preference for moderate
task difficulty, a preference for personal responsibility for performance, the need for
feedback, and innovativeness. Too little challenge will bore them since there is no
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opportunity to satisfy their urge to achieve, and too much challenge would mean that the job
is difficult and hence will induce the fear of failure in them (McShane and Von Glinow,
2008; Griffin, 2013).

Need for Power (nPow)

This refers to the need to make others behave in a way that they would not have behaved
otherwise. Individuals high in Need for Power enjoy being in-charge, strive for influence
over others, and prefer to be in competitive and status oriented situations. McClelland
distinguished two types of power – Personal Power and Institutional Power (McShane and
Von Glinow, 2008). Managers/individuals high in personal power like to inspire subordinates
and expect the latter to respect and obey them. Such behaviour gratifies their own need for
power in a personal sense. Managers/individuals, who are high in institutional power, tend to
exert authority and influence so as to achieve the goals of the organisation rather than to gain
any personal ego satisfaction. McClelland describes the institutional power managers as
organisation minded. That is, the institutional power manager exercises power in the interests
and welfare of the organisation. Institutional power managers are said to be very effective
since they are willing to somewhat sacrifice their own interests for the organisation’s overall
wellbeing. McClelland feels that institutional or social power is good for the organisation and
personal power is detrimental to the overall interests of the organisation (Robbins and Judge,
2013; McShane and Von Glinow, 2008).

Persons with high need for power would naturally be turned on by holding positions of
authority and influence in the organisation. They like to take charge and be in control of
situations. Placing such individuals in high level positions will help them to gratify their own
needs as well as get many of the organisation’s policies and orders followed and carried out
by employees.

Need for Affiliation

This refers to the desire for friendly and close interpersonal relationships. Individuals high in
Need for Affiliation like to interact with colleagues in the organisation. They have a strong
desire for approval and reassurance from others and they are willing to conform to the norms
of groups to which they belong. People with a strong nAff try to project a favourable image
of themselves. They are usually gregarious/sociable by nature and like to work with others in
a friendly atmosphere. They tend to actively support others and try to smooth out workplace
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conflicts, for instance, by mediating in workplace conflict. Team work, co-operative efforts,
and joint problem-solving sessions, and committee assignments are all suited for those high
in nAff (Griffin, 2013; and McShane and Von Glinow, 2008).

People high in need for affiliation are said to perform better in their jobs when they are given
supportive feedback. Thus, friendly managers and supervisors can influence individuals high
in nAff and motivate them to work harder.

6.7.5 McGregor’s Theory X and Theory Y

McGregor’s theory is based on how a manager feels about human nature. In general,
managers tend to have either positive or negative assumptions about human nature. Based on
these assumptions, McGregor proposed two sets of theories as Theory X (negative
assumptions) and Theory Y (positive assumptions).

Theory X
Theory X represents the traditional approach to managing. According to Robbins and Judge
(2013), theory X is characterised by the following basic assumptions:
i) The average human being has an inherent dislike for work and will avoid it if he can.
ii) He believed that most people must be coerced, controlled, directed, and threatened
with punishment to get them to put forth adequate effort towards the achievement of
organisational objectives.
iii) The average human being prefers to be directed, wishes to avoid responsibility, and
has relatively little ambition.
iv) Control measures or strict supervision must be properly exercised to get results from
workers.
v) Such control can be achieved by the appropriate use of rewards and punishment.

The implication for a manger working in an organisation with these premises is that
employees will be strictly controlled and supervised. Decisions will be made largely by the
manager and communicated in writing or verbally in a formal situation. Workers will rarely
be involved in determining their own tasks. Theory X usually operates in traditional, highly
centralized organisations.

Theory Y
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Theory Y is more people oriented. It is based on the following assumptions. The following,
according to Robbins and Judge (2013), are some of the assumptions of Theory Y:
i) The expenditure of physical and mental effort is as natural as play or rest.
ii) External control and threat of punishment are not the only means for bringing about
effort toward organisational objectives. People will exercise self-direction and self-
control in the services of objectives to which they are committed.
iii) Commitment to objectives is a function of rewards associated with their achievement.
iv) The average human beings learn, under proper condition, not only to accept but to
seek responsibility.
v) The capacity to exercise a relatively high degree of imagination, ingenuity, and
creativity in the solution of organisational problems is widely, not narrowly,
distributed in the population.
vi) Under the conditions of modern industrial life, the intellectual potentialities of the
average human being are only partially utilised.

Leaders operating under these assumptions will be more likely to consult the group,
encourage members to contribute to decision making and work without strict supervision.
The acceptance of the Theory Y approach, with its tenets of participation and concern for
worker morale, encouraged managers to begin practicing such activities as:
i) Delegating authority for many decisions.
ii) Enlarging and enriching jobs of workers by making them less repetitive.
iii) Increasing the variety of activities and responsibilities.
iv) Improving the free flow of communication within the organisation.
Theory Z
Theory Z emerged in the 1980s. It attempts to motivate workers by giving them more
responsibility and making them feel more appreciated. It was developed, in part, in the light
of Japanese management practices, which allowed for more worker participation in decision
making and provided for less specialized career paths.

According to McShane and Von Glinow (2008) and Griffin (2013), content theories provide
the following suggestions on the implications of their practical application:). Firstly,
corporate leaders and executives are required to be sure that the rewards provided to
employees actually fulfill their needs otherwise they will be useless and have no value as
motivators. Secondly these theories propose that people normally have different needs at
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different times. For instance, some employees may be ready to fulfill growth needs while
others will still be studying to satisfy their physiological or existence needs. Needs also
change overtime as people enter new stages in their lives and as such, rewards which might
have motivated them previously could have progressively diminished in value over the years.
Therefore, it is important to offer employees a broad choice of rewards. Thirdly, these
theories caution against relying too much on financial rewards as the primary source of
employee motivation. This is because there are other potentially more powerful sources of
motivation like being given challenging assignments, learning opportunities or receiving
praise from workmates and supervisors.

6.8 Activity

You can now do the following:

1. What is motivation? Is money the only motivator?

2. Critically discuss the following theories of motivation:

a) Maslow’sHierarchy of Needs Model

b) Alderfer’s ERG Theory

c) Herzberg’s Two Factor Theory

d) McClelland’s Achievement Motivation Theory

3. Discuss McGregor’s Theory X and Theory Y

4. Critically discuss the assumptions and implications of Theory Z

5. Identify and discuss the linkages between Maslow’s, Alderfer’s and Herzberg’s Theories

of Motivation.

6.9 Unit Summary

Motivation is defined as individual’s intention or willingness to put maximum effort in

his/her work to reach organisational goals and enhance one’s ability to satisfy some
individual needs. Motivation is the internal and external factors that lead an individual to
engage in goal-related behaviour. Motivation can affect the intensity, direction, and
persistence a person shows in working toward a goal.
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Motivation theorists talk about two types of motivators, intrinsic motivators and extrinsic
motivators. Extrinsic motivators come from outside the person and include such things as
pay, bonuses, and other tangible rewards. Intrinsic motivators come from a person’s internal
desire to do something, motivated by such things as interest, challenge, and personal
satisfaction. Individuals are intrinsically motivated when they genuinely care about their
work, look for better ways to do it, and are energized and fulfilled by doing it well. The
rewards the individual gets from intrinsic motivation come from the work itself, rather than
from external factors such as increases in pay or compliments from the boss.

Content theories of motivation deal with the first part of the motivation process, needs and
need deficiencies. More specifically, content perspectives address the question, ‘what factor
or factors in the workplace motivate people? Some people, like labour leaders, often argue
that workers can be motivated by more pay, shorter working hours, and improved working
conditions. Meanwhile, some experts suggest that motivation can be more effectively
enhanced by providing employees with more autonomy and greater responsibility. Both of
these views represent content views of motivation. There are basically four content theories
of motivation that have been identified and these are: Maslow’s hierarchy of needs model;
Alderfer’s ERG theory; Herzberg’s two-factor theory; McClelland’s achievement
motivation theory.

6.10 Required Resources

Griffin R.W. (2013). Management (11th Edition). Mason, South-Wesstern, Cengage Learning.

Mcshane S.L and Von Glinow M.A (2008). Organisational Behaviour: Emerging Realities
for the Workplace Revolution (4th Edition). Boston, McGraw Hill Irwin.

Mullins J.L. (2010). Management and Organisational Behaviour (9th Edition). Munich,
Prentice Hall.

Robbins S.P. and Judge T.A. (2013). Organisational Behaviour (15th Edition). New Jersey,
Pearson Education Inc.

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 UNIT SEVEN: PROCESS THEORIES OF MOTIVATION

7.1 Introduction
The content theories of motivation provided managers with a better understanding of the
particular work-related factors that arouse employees to motivate employees’ behaviour.
However, these theories provide very little understanding of why people choose a particular
behavioural pattern to accomplish work goals. Process perspectives are concerned with how
motivation occurs. Rather than attempting to identify motivational stimuli, process
perspectives focus on why people choose certain behavioural options to satisfy their needs
and how they evaluate their satisfaction after they have attained these goals (Griffin, 2013).

7.2 Unit Aim

The aim of this unit is to enable you to understand the major process theories of motivation.

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7.3 Learning Outcomes

By the end of this unit you should be able to:

i) Compare the major process theories of motivation.
ii) Contrast the major process theories of motivation.

7.4 Time Required

It will take you approximately ten (10) hours to work through this unit.

7.5 Process Theories of Motivation

Three useful process perspectives on motivation are the equity, expectancy and goal-setting
theories. Process theories, or extrinsic theories, attempt to identify the relationships among
the dynamic variables that make up motivation and the actions required to influence
behaviour and actions. They provide a further contribution to our understanding of the
complex nature of work motivation. Many of the process theories cannot be linked to a single
writer (Mullins, 2010).

7.5.1 Equity Theory – Stacy Adams

Equity theory contends that people are motivated to seek social equity in the rewards they
receive for performance. Equity is an individual’s belief that the treatment he or she is
receiving is fair relative to the treatment received by others. According to equity theory,
outcomes from a job include pay, recognition, promotions, social relationships, and intrinsic
rewards. To get these rewards, the individual makes inputs to the job, such as time,
experience, effort, education, and loyalty. The theory suggests that people view their
outcomes and inputs as a ratio and then compare it to someone else’s ratio
(relevant/comparison other) (Griffin, 2013).

The comparison other may be another person, group of people, or even yourself in the past. It
may be someone in the same job, another job, or another organisation. Chief executives have
no direct comparison within the firm, so they tend to compare themselves with their
counterparts in other organisations. The formulation of the ratios and comparisons between
them are very subjective and based on individual perceptions. As a result of comparisons,

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three conditions may result: The individual may feel equitably rewarded, under-rewarded, or
over-rewarded, (Robbins and Judge, 2013; McShane and Von Glinow, 2008).

If an individual perceives their ratio to be equal to that of relevant others with whom they
compare themselves, a state of equity is said to exist- they perceive the situation as fair and
that justice prevails. This may occur even though the other person’s outcomes are greater
than the individual’s own outcomes provided that the other’s inputs are also proportionately
greater. Suppose that Likando has a high school education and earns K30,000. He may still
feel equitably treated relative to Mapenzi, who earns K35,000, because he has a college
degree (Griffin, 2013).

When we see the ratio as unequal (under-rewarded or over-rewarded), we experience this as

inequity/equity tension. Inequity/equity tension exists under two conditions: First, the person
feels a negative inequity, when he has been rewarded less for his efforts than another. This
creates anger. Second, the person experiences a positive inequity, when he finds himself
rewarded more than another for a similar degree of effort. This creates a feeling of guilt. Both
kinds’ of inequities produce cognitive dissonance or internal tensions and propel people to
action in order to reduce the dissonance (Griffin, 2013; Robbins and Judge, 2013).

Selection of Reference Person or Comparison Person

The selection of comparison person adds to the complexity of equity theory. Research studies
reveal that the type of reference person chosen plays an important role in equity theory.
According to Robbins and Judge (2013:220), there are four referent comparisons that an
employee can use:
i. Self–inside: An employee’s experiences in a different position inside the
employee’s current organisation.
ii. Self–outside: An employee’s experiences in a situation or position outside the
employee’s current organisation.

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 iii. Other–inside: Another individual or group of individuals inside the employee’s
organisation.
iv. Other–outside: Another individual or group of individuals outside the employee’s
organisation.

Based on equity theory, the employees who perceive inequity in the occupation may have
many options to choose to restore balance. The following are some of the actions likely to be
taken:
i) Reduce inputs: Perform at a lower level, give fewer helpful suggestions and engage in
less organisational citizenship behaviour.
ii) Increase our outcomes: Ask for a pay increase, make unauthorized use of company
resources.
iii) Increase the comparison other’s inputs: Subtly ask the better-off co-worker to do a
larger share of the work to justify his or her higher pay or other outcomes.
iv) Reduce comparison other’s outcomes: Ask the boss to stop giving favourable
treatment to the co-worker.
v) Distorting perception of the reference person by assuming that the person has more
contacts with influential superiors and gets more benefits or that the comparison other
is doing more (such as working longer hours).
vi) Change the comparison other: Compare ourselves to someone else closer to our
situation (job duties, pay scale).
vii) Leaving the field once for all: Avoid thinking about the inequity by keeping away
from the office where the co-worker is located, taking more sick leave, moving to
another department, or quitting the job (McShane and Von Glinow, 2008; Robbins
and Judge, 2013).

There are two types of justice emphasized in equity theory and these are Distributive Justice
and Procedural justice. Distributive Justice refers to the perceived fairness of the amount and
allocation of rewards among individuals whereas Procedural Justice refers to the perceived
fairness of the process used to determine the distribution of rewards, (Robbins and Judge,
2013). Research results indicate that distributive justice has a greater influence on employee
satisfaction than procedural justice, while procedural justice tends to affect employees
organisational commitment, trust in their boss and intention to quit (Robbins and Judge,
2013). The evidence indicates that distributive justice has a greater influence on employee
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satisfaction than procedural justice, while procedural and interactional justice (the quality of
the interpersonal treatment received from a manager) tend to affect an employee’s
organisational commitment, trust in his or her manager, and intention to quit. Researchers
have found that when managers and employees believed that the company’s processes were
fair, they were more likely to show a high level of trust and commitment to the organisation.
Employees engaged in negative behaviour when they felt the process was unfair, (McShane
and Von Glinow, 2008).

Equity theory sensitizes managers to the fact that individuals often make equity comparisons
and that sometimes the rewards given by managers may have consequences which might be
reflected in subordinates’ behaviours. This is especially true for visible rewards such as
promotions, pay increases and bonuses. Therefore, managers must try by all means to reduce
chances of perceived inequity in an organisation. One way managers can do this is to
properly explain to all employees how the performance appraisal process is being carried out.
Managers can also continuously give employees clear and prompt feedback on performance.

7.5.2 Expectancy Theories/Models

Expectancy theory suggests that motivation depends on two things how much we want
something and how likely we think we are to get it. Assume that you are approaching
graduation and looking for a job. You see an advert that ZESCO is seeking a new human
resource manager with a starting salary of K40,000 per month. Even though you might want
the job, you will not apply because you realize that you have little chance of getting it. The
next advert you see is for someone to pick litter around the University of Zambia for a
starting salary of K500 per month. Even though you could probably get this job, you do not
apply because you do not want it. Then you see an advert for a management trainee at a big
company, with a starting salary of K10,000. You will probably apply for this job because you
want it and because you think you have a reasonable chance of getting it (Griffin, 2013).

Expectancy theory is a generic theory of motivation and cannot be linked to a single

individual writer. There are a number of versions and some of the models are rather complex.
More recent approaches to expectancy theory have been associated with the work of Vroom
and of Porter and Lawler.

Victor Vroom’s Expectancy Model

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Vroom’s Expectancy theory is based on four assumptions. First, it assumes that behaviour is
determined by a combination of forces in the individual and in the environment. Second, it
assumes that people make decisions (conscious choices) about their own behaviour in
organisations. Third, it assumes that different people have different types of needs, desires,
and goals (people want different things- good salary, job security, advancement, and
challenge). Fourth, it assumes that people make choices from among alternative plans of
behaviour, based on their perceptions of the extent to which a given behaviour will lead to
desired outcomes (Griffin, 2013; Mullins, 2010).

The key variable of interest in expectancy theory is effort - the individual’s actual exertion of
energy. An individual’s effort level depends on three factors: effort-to-performance
(expectancy), performance-to-outcome (Instrumentality), and outcome (valences). Employee
motivation is influenced by all three components of the expectancy theory model. If any
component weakens, motivation weakens.

Expectancy (Effort - Performance Relationship)

The effort-performance relationship is commonly called expectancy. It refers to the
individual’s perception of how probable it is that exerting a given amount of effort will lead
to good performance. For example, employees are sometimes asked to perform tasks for
which they do not have suitable skills or training. When that is the case, they will be less
motivated to try hard, because they already believe that they will not be able to accomplish
what they are being asked to do (Mullins, 2010; Griffin, 2013). Expectancy can be expressed
as a probability, and ranges from 0 to 1. If an employee sees no chance that effort will lead to
the desired performance level, the expectancy is 0. On the other hand, if the employee is
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completely certain that the task will be completed, the expectancy has a value of 1. The belief
that effort is somewhat but not strongly related to performance carries with it a moderate
expectancy (somewhere between 0 and 1.00). Generally, employee estimates of expectancy
lie somewhere between these two extremes. In general, an employee’s expectancy is
influenced by the following: Self-esteem; Previous success; Help from supervisors and
subordinates; Information; Proper materials and equipment (Griffin, 2013).

Instrumentality (Performance – Reward Relationship)

The performance-rewards relationship is commonly called instrumentality. It refers to the
individual’s perception of whether performing at a particular level will lead to the attainment
of a desired outcome. In particular, will the performance be acknowledged by those who have
the power to allocate rewards? Instrumentality ranges from –1 to +1. A negative
instrumentality indicates that high performance reduces the chances of getting the desired
outcome. An instrumentality of 0 indicates that there is no relationship between performance
and receiving the desired outcome. If there is no perceived relationship between a good
performance rating and a salary increase, then the instrumentality is 0 (Robbins and Judge,
2013; Griffin, 2013; Mullins, 2010).

Valence (Reward/Outcome – Personal Goals Relationship)

The third element in expectancy theory is the valence of each outcome that you consider.
Valence refers to the anticipated satisfaction or dissatisfaction that an individual feels toward
an outcome. It refers to the degree to which organisational rewards satisfy an individual’s
personal goals or needs and the attractiveness of those potential rewards for the individual
(McShane and Von Glinow, 2008).

Outcomes have a positive valence when they are consistent with our values and satisfy our
needs; they have a negative valence when they oppose our values and inhibit need fulfilment.
If you have a strong need for social interaction, for example, you would value group activities
and other events that help to fulfill that need. Outcomes that move you further away from
fulfilling your social need, such as working alone from home, will have a strong negative
valence. Valence ranges from –1 (very undesirable reward) to +1 (very desirable reward). If
the individual wants the outcome, its valence is positive; if the individual does not want the
outcome, its valence is negative; and if the individual is indifferent to the outcome, its

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valence is zero. Motivation may be lower because the specific need the employee has is not
being met through the reward structure (Griffin, 2013; McShane and Von Glinow, 2008).

Vroom distinguishes valence from value. A person may desire an object but then gain little
satisfaction from obtaining it. Alternatively, a person may strive to avoid an object but find,
subsequently, that it provides satisfaction. Valence is the anticipated satisfaction or
dissatisfaction from an outcome. This may differ substantially from value, which is the actual
satisfaction provided by an outcome.

Vroom suggests that motivation, expectancy, instrumentality, and valence are related to one
another by the equation: Motivation = Expectancy x Instrumentality x Valence. The
multiplier effect in the equation is significant. It means that higher levels of motivation will
result when expectancy, instrumentality, and valence are all high than when they are all low.
The multiplier assumption of the theory also implies that if any one of the three factors is
zero, the overall level of motivation is zero. Therefore, for example, even if an employee
believes that his/her effort will result in performance, which will result in reward, motivation
will be zero if the valence of the reward he/she expects to receive is zero (i.e. if he/she
believes that the reward he/she will receive for his/her effort has no value to him/her
(McShane and Von Glinow, 2008; Mullins, 2010; Griffin, 2013).

Since Vroom’s initial model, expectancy theory has undergone some developments. The
major ones, according to Mullins (2010) are as follows:
i. The theory was extended by making the distinction between extrinsic outcomes
(Pay and Promotion) and intrinsic outcomes (Recognition, Achievement and
Personal Development).
ii. A further distinction was made between two types of expectancies. Expectancy I
is concerned with the perceived relationship between effort and performance.
Expectancy II, similar to Vroom’s concept of instrumentality, is concerned with
the relationship between first level outcomes (Performance) and second-level
outcomes or reward (Pay, recognition, or achievement).

Figure 7.1: Basic Model of Expectancy Theory

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 Source: Mullins (2010:270)

Porter and Lawler’s Expectancy Model

Vroom’s expectancy/valence theory has been developed by Porter and Lawler. They point
out that effort expended (motivational force) does not lead directly to performance. It is
mediated by individual abilities and traits, and by the person’s role perceptions. They also
introduce rewards as an intervening variable. Porter and Lawler see motivation, satisfaction
and performance as separate variables and attempt to explain the complex relationships
among them. Their model recognises that job satisfaction is more dependent upon
performance, than performance is upon satisfaction. Porter and Lawler suggest that
satisfaction is an effect rather than a cause of performance. It is performance that leads to job
satisfaction.

These relationships, according to Mullins (2010: 306-308), are explained here under:
i) Value of reward: is similar to valence in Vroom’s model. People desire various
outcomes (rewards) which they hope to achieve from work. The value placed on a
reward depends on the strength of its desirability.

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ii) Perceived effort- reward probability: is similar to expectancy. It refers to a
person’s expectation that certain outcomes (rewards) are dependent upon a given
amount of effort.
iii) Effort: is how hard the person tries, the amount of energy a person exerts on a
given activity. It does not relate to how successful a person is in carrying out an
activity. The amount of energy exerted is dependent upon the interaction of the
input variables of value of reward and perception of the effort–reward
relationship.
iv) Abilities and traits: Porter and Lawler suggest that effort does not lead directly to
performance but is influenced by individual characteristics. Factors such as
intelligence, skills, knowledge, training and personality affect the ability to
perform a given activity.
v) Role perceptions: refer to the way in which individuals view their work and the
role they should adopt. This influences the type of effort exerted. Role perceptions
will influence the direction and level of action which is believed to be necessary
for effective performance.
vi) Performance: depends not only on the amount of effort exerted but also on the
intervening influences of the person’s abilities and traits, and their role
perceptions. If the person lacks the right ability or personality, or has an
inaccurate role perception of what is required, then the exertion of a large amount
of energy may still result in a low level of performance or task accomplishment.
vii) Rewards: are desirable outcomes. Intrinsic rewards derive from the individuals
themselves and include a sense of achievement, a feeling of responsibility and
recognition (for example, Herzberg’s motivators). Extrinsic rewards derive from
the organisation and the actions of others and include salary, working conditions
and supervision (for example Herzberg’s hygiene factors).
viii) Perceived equitable rewards: This is the level of rewards people feel they should
fairly receive for a given standard of performance. Most people have an implicit
perception about the level of rewards they should receive commensurate with the
requirements and demands of the job, and the contribution expected of them. Self-
rating of performance links directly with the perceived equitable reward variable.
Higher levels of self-rated performance are associated with higher levels of
expected equitable rewards.

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 ix) Satisfaction: This is not the same as motivation. It is an attitude, an individual’s
internal state. Satisfaction is determined by both actual rewards received and
perceived level of rewards from the organisation for a given standard of
performance. The experience of satisfaction derives from actual rewards that meet
or exceed the perceived equitable rewards.

7.5.3 Goal Setting Theory

The research on goal setting by Edwin Locke and his colleague Professor Gary Latham at the
University of Toronto shows that intentions to work toward a goal are a major source of work
motivation. A goal is what an individual is trying to accomplish; it is the object or aim of an
action. Goals tell an employee what needs to be done and how much effort will need to be
expended.

How Does Goal Setting Motivate?

According to Locke, goal setting motivates in four ways:
i. Goals direct attention: Goals indicate where individuals should direct their efforts
when they are choosing among things to do. For instance, recognizing that an
important assignment is due in a few days, goal setting may encourage you to say
no when friends invite you to a movie.
ii. Goals regulate effort: Goals suggest how much effort an individual should put
into a given task. For instance, if earning a high mark in accounting is more
important to you than earning a high mark in organisational behaviour (OB), you
will likely put more effort into studying accounting.
iii. Goals increase persistence: Persistence represents the effort spent on a task over
time. When people keep goals in mind, they will work hard on them, even in the
face of obstacles.
iv. Goals encourage the development of strategies and action plans: Once goals are
set, individuals can develop plans for achieving those goals. For instance, a goal to
become fitter may include plans to join a gym, workout with friends, and change
eating habits (Robbins and Judge, 2013; McShane and Von Glinow, 2008).

In order for goals to be effective, they should be SMART. SMART stands for:
i) Specific: Individuals know exactly what is to be achieved.
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 ii) Measurable: The goals proposed can be tracked and reviewed.
iii) Attainable: The goals, even if difficult, are reasonable and achievable.
iv) Results-oriented: The goals should support the vision of the organisation.
v) Time-bound: The goals are to be achieved within a stated time (Mullins, 2010;
Robbins and Judge, 2013; McShane and Von Glinow, 2008).

Characteristics of Effective Goals/ Implementing Goal-Setting Theory

Goal setting is more complex than simply telling someone to do your best. Instead it requires
six conditions to maximise task effort and performance: specific goals, relevant goals,
challenging goals, goal commitment, participation in goal formation (sometimes), and goal
feedback. These are explained here under:
i) Specific goals: Employees put more effort into a task when they work toward specific
goals rather than do your best targets. Specific goals have measurable levels of
change over a specific and relatively short time frame, such as reduce scrap rate by 7
percent over the next six months. Specific goals communicate precise performance
expectations so employees can direct their effort more efficiently and reliably.
ii) Relevant goals: Goals must also be relevant to the individual’s job and within his or
her control. For example, a goal to reduce waste materials would have little value if
employees don’t have much control over waste in the production process.
iii) Challenging goals: Challenging goals (rather than easy ones) cause people to raise
the intensity and persistence of their work effort and to think through information
more actively. They also fulfill a person’s need for achievement or self-actualization
needs when the goal is achieved.
iv) Goal commitment: Although goals should be challenging, employees also need to be
committed to accomplishing goals. Thus we need to find an optimal level of goal
difficulty where the goals are challenging, yet employees are still motivated to
achieve them. This is the same as the E-to-P expectancy. The lower the E-to-P
expectancy that the goal can be accomplished, the less committed (motivated) the
employee is to the goal.
v) Goal participation (sometimes): Goal setting is usually (but not always) more
effective when employees participate in setting goals. Employees identify more with
goals they are involved in setting than goals assigned by a supervisor. In fact, today’s
workforce increasingly expects to be involved in goal setting and other decisions that
affect them. Participation may also improve goal quality because employees have
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 valuable information and knowledge that may not be known to managers who develop
these goals alone. Thus participation ensures that employees buy into the goals and
have the competencies and resources necessary to accomplish them.
vi) Goal feedback: Feedback is another necessary condition for effective goal setting.
Feedback is any information that people receive about the consequences of their
behaviour. Feedback lets us know whether we have achieved a goal or are properly
directing our effort toward it. Feedback is also an essential ingredient in motivation
because our growth needs cannot be satisfied unless we receive information about
goal accomplishment (McShane and Von Glinow, 2008:147-148; Robbins and Judge,
2013:214-215).

Goal setting theory has received some criticism due to a number of limitations. In the first
instance, when goals are tied to financial incentives, some employees may resort to selecting
easy rather than challenging goals. The theory cannot be applied to every performance
dimension of a job. This is because some jobs have, difficult to measure, complex and long –
term performance outcomes. Despite the preceding weaknesses, goal setting has become one
of the tried and tested theories of organisational behaviour which is widely supported by
research and has been found to be generally successful in its application.

7.6 Activity

You can now do the following:

1. Critically discuss the following Process Theories of Motivation:

a) Equity Theory by Stacy Adams

b) Victor Vroom’s Expectancy Model

c) Porter and Lawler’s Expectancy Model

d) Edwin Locke and Gary Latham’s Goal Setting Theory

2. Compare and contrast the content and process theories of motivation.

7.7 Unit Summary

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Three useful process perspectives on motivation are the equity, expectancy and goal-setting
theories. Process theories or extrinsic theories of motivation attempt to identify the
relationships among the dynamic variables that make up motivation and the actions required
to influence behaviour and actions. They provide a further contribution to our understanding
of the complex nature of work motivation. Examples of such theories include: Equity
Theory- Stacy Adams, Expectancy Theories/Models and Goal Setting Theory.

7.8 Required Resources

Griffin R.W. (2013). Management (11th Edition). Mason, South-Wesstern, Cengage Learning.

Mcshane S.L and Von Glinow M.A (2008). Organisational Behaviour: Emerging Realities
for the Workplace Revolution (4th Edition). Boston, McGraw Hill Irwin.

Mullins J.L. (2010). Management and Organisational Behaviour (9th Edition). Munich,
Prentice Hall.

Robbins S.P. and Judge T.A. (2013). Organisational Behaviour (15th Edition). New Jersey,
Pearson Education Inc.

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 UNIT EIGHT: REINFORCEMENT AND MOTIVATION

8.1 Introduction
Welcome to the last unit of this module. This unit discusses reinforcement theory, operant
conditioning theory and motivation in the work place. Specifically the unit discusses the
following: Meaning and Nature of Reinforcement; Schedules of Reinforcement; Motivation
through Employee Recognition, Involvement and Empowerment; Techniques and Issues in
Empowerment; Motivation through Alternative Work Forms, and; Using Reward Systems to
Motivate Performamnce

8.2 Unit Aim

The aim of this theory is enable you to understand the meaning and nature of reinforcement
and how it affects motivation.

8.3 Learning Outcomes

By the end of the unit you should be able to:

i) State the different kinds of reinforcement in organisations.
ii) Discuss the schedules of reinforcement.
iii) Explain the nature of motivation through employee recognition, involvement,
empowerment and other alternative forms of work arrangements.
iv) Identify and discuss the techniques and issues in reinforcement.

8.4 Time Required

It will take you approximately eight (8) hours to work through this unit.

8.5 Reinforcement: Meaning and Nature

Goal-setting is a cognitive approach, proposing that an individual’s purposes direct his action.
Reinforcement theory, in contrast, takes a behaviouristic view, arguing that reinforcement
conditions behaviour. Reinforcement theory argues that behaviour that results in rewarding
consequences is likely to be repeated, whereas behaviour that results in punishing
consequences is less likely to be repeated. Reinforcement theorists see behaviour as
environmentally caused. They argue that what controls behaviour are reinforcers- any

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consequences that, when immediately following responses, increase the probability that the
behaviour will be repeated (Griffin, 2013; Robbins and Judge, 2013; Mullins, 2010).

Reinforcement theory ignores the inner state of the individual and concentrates solely on
what happens when he or she takes some action. Because it does not concern itself with what
initiates behaviour, it is not, strictly speaking, a theory of motivation. But it does provide a
powerful means of analysing what controls behaviour, and this is why we typically consider
it in discussions of motivation (Robbins and Judge, 2013).

Operant conditioning theory, probably the most relevant component of reinforcement theory
for management, argues that people learn to behave to get something they want or to avoid
something they don’t want. Unlike reflexive or unlearned behaviour, operant behaviour is
influenced by the reinforcement or lack of reinforcement brought about by its consequences.
Therefore, reinforcement strengthens behaviour and increases the likelihood it will be
repeated. B. F. Skinner, one of the most prominent advocates of operant conditioning, argued
that creating pleasing consequences to follow specific forms of behaviour would increase the
frequency of that behaviour. He demonstrated that people will most likely engage in desired
behaviours if they are positively reinforced for doing so; that rewards are most effective if
they immediately follow the desired response; and that behaviour that is not rewarded, or is
punished, is less likely to be repeated (Robbins and Judge, 2013).

The concept of operant conditioning was part of Skinner’s broader concept of behaviourism,
which argues that behaviour follows stimuli in a relatively unthinking manner. Skinner’s
form of radical behaviourism rejects feelings, thoughts, and other states of mind as causes of
behaviour. In short, people learn to associate stimulus and response, but their conscious
awareness of this association is irrelevant. Although reinforcers such as pay can motivate
people, the process is much more complicated than stimulus–response. In its pure form,
reinforcement theory ignores feelings, attitudes, expectations, and other cognitive variables
known to affect behaviour.

The behaviours you engage in at work and the amount of effort you allocate to each task are
affected by the consequences that follow. For instance, if you are consistently reprimanded
for out producing your colleagues, you’ll likely reduce your productivity. But we might also
explain your lower productivity in terms of goals, inequity, or expectancies (Robbins and
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Judge, 2013). Individuals can learn by being told or by observing what happens to other
people, as well as through direct experiences. Much of what we have learned comes from
watching models such as parents, teachers, peers, film and television performers, and bosses,
among others. This view that we can learn through both observation and direct experience is
called social-learning theory. Although social-learning theory is an extension of operant
conditioning, that is, it assumes behaviour is a function of consequences. It also
acknowledges the effects of observational learning and perception. People respond to the way
they perceive and define consequences, not to the objective consequences themselves
(Robbins and Judge).

8.6 Kinds of Reinforcement in Organisations

There are four basic kinds of reinforcement that can result from behaviour: positive
reinforcement, avoidance, punishment, and extinction: These, according to Griffin (2013), are
explained below:

8.6.1 Positive Reinforcement

This is a method of strengthening behaviour. Positive Reinforcement is a reward or a positive
outcome after a desired behaviour is performed. When a manager observes an employee
doing an especially good job and offers praise, the praise serves to positively reinforce the
behaviour of good work. Other positive reinforcers in organisations include pay raises,
promotions, and awards. Employees who work at General Electric’s customer service center
receive clothing, sporting goods, and even trips to Disney World as rewards for outstanding
performance.

8.6.2 Negative Reinforcement/Avoidance

Negative reinforcement is used to strengthen behaviour. Negative reinforcement occurs when
the removal or avoidance of a consequence increases or maintains the frequency or future
probability of a specific behaviour. Supervisors apply negative reinforcement when they stop
criticizing employees whose substandard performance has improved. When the criticism is
withheld, employees are more likely to repeat behaviours that improved their performance.
Notice that negative reinforcement is not punishment. It actually reinforces behaviour by
removing punishment.

8.6.3 Punishment

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Punishment is used by some managers to weaken undesired behaviours. When an employee
is loafing, coming to work late, doing poor work, or interfering with the work of others, the
manager might resort to reprimands, discipline, or fines. The logic is that the unpleasant
consequence will reduce the likelihood that the employee will choose that particular
behaviour again. Given the counterproductive side effects of punishment (such as resentment
and hostility) it is often advisable to use the other kinds of reinforcement if at all possible.

8.6.4 Extinction
Extinction can also be used to weaken behaviour, especially behaviour that has previously
been rewarded. When an employee tells an off-colour joke and the boss laughs, the laughter
reinforces the behaviour and the employee may continue to tell off-colour jokes. By simply
ignoring this behaviour and not reinforcing it, the boss can cause the behaviour to subside and
eventually become extinct.

8.7 Schedules of Reinforcement

Along with the types of reinforcement, the frequency and timing of those reinforcers also
influence employee behaviours. These reinforcement schedules can be continuous or
intermittent. The most effective reinforcement schedule for learning new tasks is continuous
reinforcement: it involves providing positive reinforcement after every occurrence of the
desired behaviour. Employees learn desired behaviours quickly and, when the reinforcer is
removed, extinction also occurs very quickly. The other schedules of reinforcement are
intermittent and are distinguished by whether they are based on a period of time (interval) or
number of behavioural events (ratio), and whether that interval or ratio is fixed or variable.

Most people get paid with a fixed interval schedule because they receive their reinforcement
(pay check) after a fixed period (Griffin, 2013). A variable interval schedule is common for
promotions: Employees are promoted after a variable amount of time. If you are given the
rest of the day off after completing a fixed amount of work (for example, serving a specific
number of customers), then you have experienced a fixed ratio schedule —reinforcement
after a fixed number of behaviours or accomplishments.

Finally, companies often use a variable ratio schedule in which employee behaviour is
reinforced after a variable number of times. Sales-people experience variable ratio
reinforcement because they make a successful sale (the reinforcer) after a varying number of

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client calls. They might make four unsuccessful calls before receiving an order on the fifth
one, then make 10 more calls before receiving the next order, and so on (McShane and Von
Glinow, 2008). The variable ratio schedule is a low-cost way to reinforce behaviour because
employees are rewarded infrequently. It is also highly resistant to extinction. Suppose your
boss walks into your office at varying times of the day. Chances are that you would work
consistently better throughout the day than if your boss visits at exactly 11 a.m. every day. If
your boss doesn’t walk into your office at all on a particular day, you might still expect a visit
right up to the end of the day if previous visits were random (McShane and Von Glinow,
2008).

8.8 Motivation through Employee Recognition

Expectancy theory tells us that a key component of motivation is the link between
performance and reward (that is, having your behaviour recognized). Employee recognition
programs cover a wide spectrum of activities. They range from a spontaneous and private
thank you on up to widely publicized formal programs in which specific types of behaviour
are encouraged and the procedures for attaining recognition are clearly identified.
Recognition may not be enough for some jobs as the link between reward and performance
may be unclear. Recognition of individual or group achievements can be done with cash and
may cost little or no money. Toronto-based KPMG has created a thank-you culture to
recognize good work and deeds. Recognition can be a way of reinforcing our corporate
values. It can be critical to motivating, satisfying and retaining the best employees (Robbins
and Judge, 2013).

Organisations can recognize employees in numerous ways. For instance, Purdy’s recognizes
employees who reach their five-year anniversary with the company at an annual luncheon,
with out-of-town employees flown in for the event. Other ways of recognizing performance
include sending personal notes or emails for good performance, putting employees on
prestigious committees, sending them for training, and giving someone an assistant for a day
to help clear backlogs. Recognition may also include awarding employee of the month
certificates (Robbins and Judge, 2013).

Employee recognition may reduce turnover in organisations, particularly that of good

employees.

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8.9 Motivation through Involvement and Empowerment
Empowerment and participation represent important methods that managers can use to
enhance employee motivation. Empowerment is the process of enabling workers to set their
own work goals, make decisions, and solve problems within their sphere of responsibility and
authority. Participation is the process of giving employees a voice in making decisions about
their own work. Thus empowerment is a somewhat broader concept that promotes
participation in a wide variety of areas, including but not limited to work itself, work context,
and work environment. The role of participation and empowerment in motivation can be
expressed in terms of both content perspectives and expectancy theory. Employees who
participate in decision making may be more committed to executing decisions properly
(Griffin, 2013:461-462).

Furthermore, the successful process of making a decision, executing it, and then seeing the
positive consequences can help satisfy one’s need for achievement, provide recognition and
responsibility, and enhance self-esteem. Simply being asked to participate in organisational
decision making also may enhance an employee’s self-esteem. In addition, participation
should help clarify expectancies; that is, by participating in decision making, employees may
better understand the linkage between their performance and the rewards they want most
(Griffin, 2013:461-462).

8.10 Techniques and Issues in Empowerment

Today, many managers prefer the term empowerment to participation because of its more
comprehensive character. One method used to empower workers is the use of work teams.
Such teams are collections of employees empowered to plan, organise, direct, and control
their own work. Their supervisor, rather than being a traditional boss, plays more the role of a
coach. The other method for empowerment is to change the team’s overall method of
organizing. The basic pattern is for an organisation to eliminate layers from its hierarchy,
thereby becoming much more decentralized. Power, responsibility, and authority are
delegated as far down the organisation as possible, placing control over work squarely in the
hands of those who actually do it (Griffin, 2013:461-462).

Regardless of the specific technique or method used, however, empowerment will enhance
organisational effectiveness only if certain conditions exist. First of all, the organisation must
be sincere in its efforts to spread power and autonomy to lower levels of the organisation.

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Token efforts to promote participation in only a few areas are not likely to succeed. Second,
the organisation must be committed to maintaining participation and empowerment. Workers
will be resentful if they are given more control, only to later have it reduced or taken away
altogether. Third, workers must truly believe that they and their managers are working
together in their joint best interests. In some factory settings, for instance, high-performing
workers routinely conceal the secrets of their high output. They fear that if management
learns those secrets, it will use them to ratchet up performance expectations. In addition, the
organisation must be systematic and patient in its efforts to empower workers. Turning over
too much control too quickly can spell disaster. And finally, the organisation must be
prepared to increase its commitment to training. Employees given more freedom in how they
work will quite likely need additional training to help them exercise that freedom most
effectively (Griffin, 2013:461-462).

8.11 Motivation through Alternative Forms of Work Arrangements

Many organisations today are also experimenting with a variety of alternative work
arrangements. These alternative arrangements are generally intended to enhance employee
motivation and performance by providing employees with greater flexibility in how and when
they work. Among the more popular alternative work arrangements are variable work
schedules, flexible work schedules, job sharing, and telecommuting. These, according to
Robbins and Judge (2013); Griffin (2013); McShane and Von Glinow (2008), are explained
below:

8.11.1 Variable Work Schedules

Although there are many exceptions, of course, the traditional work schedule starts at 8:00 or
9:00 in the morning and ends at 5:00 in the evening, five days a week (and, of course, many
managers work additional hours outside of these times). Unfortunately, this schedule makes it
difficult to attend to routine personal business—going to the bank, seeing a doctor or dentist
for a routine check-up, having a parent–teacher conference, getting an automobile serviced,
and so forth. At a surface level, then, employees locked into this sort of arrangement may
find it necessary to take a sick day or a vacation day to handle these activities. At a more
unconscious level, some people may also feel so powerless and constrained by their job
schedule as to feel increased resentment and frustration.

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To help counter these problems, some businesses have adopted a compressed work schedule,
working a full 40-hour week in fewer than the traditional five days. One approach involves
working ten hours a day for four days, leaving an extra day off. Another alternative is for
employees to work slightly less than ten hours a day, but to complete the 40 hours by
lunchtime on Friday. And a few firms have tried having employees work 12 hours a day for
three days, followed by four days off. One problem with this schedule is that when
employees put in too much time in a single day, they tend to get tired and perform at a lower
level later in the day.
A schedule that some organisations today are beginning to use is what they call a nine-eighty
schedule. Under this arrangement, an employee works a traditional schedule one week and a
compressed schedule the next, getting every other Friday off. In other words, they work 80
hours (the equivalent of two weeks of full-time work) in nine days. By alternating the regular
and compressed schedules across half of its workforce, the organisation can be fully staffed at
all times, while still giving employees two full days off each month.

8.11.2 Flexible Work Schedules

Another promising alternative work arrangement is flexible work schedules, sometimes
called flextime. Flextime gives employees more personal control over the times they work.
The workday is broken down into two categories: flexible time and core time. All employees
must be at their workstations during core time, but they can choose their own schedules
during flexible time. Thus one employee may choose to start work early in the morning and
leave in mid-afternoon, another to start in the late morning and work until late afternoon, and
still another to start early in the morning, take a long lunch break, and work until late
afternoon. Organisations that have used the flexible work schedule method for arranging
work include Hewlett-Packard and Microsoft.

8.11.3 Job Sharing

Yet another potentially useful alternative work arrangement is job sharing. In job sharing,
two part-time employees share one full-time job. One person may perform the job from
8:00a.m. to noon and the other from 1:00p.m. to 5:00p.m. Job sharing may be desirable for
people who want to work only part time or when job markets are tight. For its part, the
organisation can accommodate the preferences of a broader range of employees and may
benefit from the talents of more people.

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8.11.4 Telecommuting
An increasingly popular approach to alternative work arrangements is telecommuting, which
allows employees to spend part of their time working offsite, usually at home. By using
email, the Internet, and other forms of information technology, many employees can maintain
close contact with their organisation and still get just as much (or even more) work done at
home as if they were in their office. The increased power and sophistication of modern
communication technology is making telecommuting easier and easier. One recent study
found that nearly 40 percent of the U.S. workforce (33 million workers) are in jobs that allow
for partial or complete telecommuting.

8.12 Using Reward Systems to Motivate Performance

As stated by Robbins and Judge (2013), Griffin (2013), McShane and Von Glinow (2008), an
organisation’s reward system is its most basic tool for managing employee motivation. An
organisational reward system is the formal and informal mechanisms by which employee
performance is defined, evaluated, and rewarded. Rewards that are tied specifically to
performance, of course, have the greatest impact on enhancing both motivation and actual
performance.

Performance-based rewards play a number of roles and address a variety of purposes in

organisations. The major purposes involve the relationship of rewards to motivation and to
performance. Specifically, organisations want employees to perform at relatively high levels
and need to make it worth their effort to do so. When rewards are associated with higher
levels of performance, employees will presumably be motivated to work harder to achieve
those awards. At that point, their own self-interests coincide with the organisation’s interests.
Performance-based rewards are also relevant regarding other employee behaviours, such as
retention and citizenship.

8.12.1 Merit Reward Systems

Merit reward systems are one of the most fundamental forms of performance-based rewards.
Merit pay generally refers to pay awarded to employees on the basis of the relative value of
their contributions to the organisation. Employees who make greater contributions are given
higher pay than those who make lesser contributions. Merit pay plans, then, are compensation
plans that formally base at least some meaningful portion of compensation on merit. The
most general form of merit pay plan is to provide annual salary increases to individuals in the

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organisation based on their relative merit. Merit, in turn, is usually determined or defined
based on the individual’s performance and overall contributions to the organisation. For
example, an organisation using such a traditional merit pay plan might instruct its supervisors
to give all their employees an average pay raise of, say, 4 percent. But the individual
supervisor is further instructed to differentiate among high, average, and low performers.
Under a simple system, for example, a manager might give the top 25 percent of her
employees a 6 percent pay raise, the middle 50 percent a 4 percent or average pay raise, and
the bottom 25 percent a 2 percent pay raise.

8.12.2 Skill-Based Pay

Skill-based pay (also called competency-based or knowledge-based pay) is an alternative to
job-based pay that bases pay levels on how many skills employees have or how many jobs
they can do. For employers, the lure of skill-based pay plans is increased flexibility of the
workforce: staffing is easier when employee skills are interchangeable. Skill-based pay also
facilitates communication across the organisation because people gain a better understanding
of each other’s jobs. One study found that across 214 different organisations, skill-based pay
was related to higher levels of workforce flexibility, positive attitudes, membership
behaviours, and productivity. Another study found that over 5 years, a skill-based pay plan
was associated with higher levels of individual skill change and skill maintenance. These
results suggest that skill-based pay plans are effective in achieving their stated goals. On the
downside, skill-based plans don’t address level of performance but only whether someone
can perform the skill.

8.12.3 Bonuses/Commissions
Many employees receive individual bonuses or awards for accomplishing a specific task or
exceeding annual performance goals. Real estate agents and other salespeople typically earn
commissions, in which their pay increases with sales volume. In general, the person might
receive a percentage of the total volume of attained sales as her or his commission for a
period of time.

8.12.4 Piece Rate Systems

Piece rate systems reward employees based on the number of units produced. It is a means of
compensating production workers with a fixed sum for each unit of production completed. A
pure piece-rate plan provides no base salary and pays the employee only for what he or she
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produces. For example, lawn care staff may earn a form of piece rate (called piecemeal)
based on the number of yards cut; housekeeping staff in hotels may earn a piece rate for each
room they clean. The harder they work, the more they get paid. The limitation of these plans
is that they are not feasible for many jobs. Surgeons earn significant salaries regardless of
their patients’ outcomes. Would it be better to pay them only if their patients fully recover? It
seems unlikely that most would accept such a deal, and it might cause unanticipated
consequences as well (such as surgeons avoiding patients with complicated or terminal
conditions).
8.12.5 Gain-Sharing Programmes
A Gain-sharing programme is a reward system in which team members earn bonuses for
reducing costs and increasing labour efficiency (productivity) in their work process. Gain-
sharing programmes are a form of team-based compensation that calculates bonuses from the
work unit’s cost savings and productivity improvement. For example, at Whole Foods
Market, each department within a store is run by a team with a monthly payroll budget. If
payroll money is un-spent at the end of the month, the surplus is divided among members of
that Whole Foods’ team. Most gain-sharing plans distribute some of the gains and return the
rest to the company’s coffers. Gain-sharing plans tend to create a reasonably strong link
between effort and performance because much of the cost reduction and labour efficiency is
within the team’s control.

The underlying assumption of gain-sharing is that employees and the employer have the same
goals and thus should appropriately share in incremental economic gains. In general,
organisations that use gain-sharing start by measuring team- or group-level productivity. It is
important that this measure be valid and reliable and that it truly reflect current levels of
performance by the team or group. The team or work group itself is then given the task of
attempting to lower costs and otherwise improve productivity through any measures that its
members develop and its manager approves.

Gain-sharing differs from profit sharing in tying rewards to productivity gains rather than
profits, so employees can receive incentive awards even when the organisation is not
profitable. Because the benefits accrue to groups of workers, high performers pressure
weaker ones to work harder, improving performance for the group as a whole.

8.12.6 Profit Sharing

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In a profit-sharing approach, at the end of the year some portion of the company’s profits is
paid into a profit-sharing pool that is then distributed to all employees. The basic rationale
behind profit-sharing systems is that everyone in the organisation can expect to benefit when
the company does well. But, on the other side of the coin, during bad economic times, when
the company is perhaps achieving low or perhaps no profits, then no profit sharing is paid
out. This sometimes results in negative reactions from employees, who have perhaps come to
feel that profit sharing is really a part of their annual compensation. Be aware that profit-
sharing plans focus on past financial results.
8.12.7 Employee Stock Ownership Plans (ESOPs)
ESOPs are company-established benefit plans in which employees acquire stock as part of
their benefits. Some companies try to encourage employees to adopt the values of top
management by making them owners of their firms. The idea is that employees will be more
likely to think about the consequences of their behaviour if they own part of the company.
Employees can become owners of the company through an ESOP. ESOPs encourage
employees to buy shares of company stock, usually at a discounted price or with a no-interest
loan. Employees are subsequently rewarded through dividends and market appreciation of
those shares.

8.13 Activity

You can now do the following:

1. What is the meaning and nature of reinforcement? Highlight the kinds of reinforcement
that
you can find in organisations.
2. Identify and explain the various ways through which managers can motivate their
employees to higher performamance.

8.14 Unit Summary

Reinforcement theory argues that behaviour that results in rewarding consequences is likely
to be repeated, whereas behaviour that results in punishing consequences is less likely to be
repeated. Reinforcement theorists see behaviour as environmentally caused. Reinforcement
theory ignores the inner state of the individual and concentrates solely on what happens when

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he or she takes some action. Because it does not concern itself with what initiates behaviour,
it is not, strictly speaking, a theory of motivation. Operant conditioning theory argues that
people learn to behave to get something they want or to avoid something they don’t want.
Unlike reflexive or unlearned behaviour, operant behaviour is influenced by the
reinforcement or lack of reinforcement brought about by its consequences. Therefore,
reinforcement strengthens behaviour and increases the likelihood it will be repeated. B. F.
Skinner, one of the most prominent advocates of operant conditioning, argued that creating
pleasing consequences to follow specific forms of behaviour would increase the frequency of
that behaviour.

There are four basic kinds of reinforcement that can result from behaviour: positive
reinforcement, avoidance, punishment, and extinction: These, according to Griffin (2013), are
explained below: Positive Reinforcement ( a method of strengthening behaviour through
rewards or a positive outcome after a desired behaviour is performed) and Negative
Reinforcement/Avoidance (used to strengthen behaviour through the removal or avoidance
of a consequence increases or maintains the frequency or future probability of a specific
behaviour), Punishment, Extinction.

Motivation can take place through Employee Recognition, Involvement and Empowerment.
Managers can also use Alternative Forms of Work Arrangements ( such as Variable Work
Schedules, Flexible Work Schedules, Job Sharing and Telecommuting) and Reward Systems
(such as Merit Reward Systems, Skill-Based Pay, Bonuses/Commissions, Piece Rate
Systems, Gain Sharing Programmes, Profit Sharing and Employee Stock Ownership Plans) to
motivate their subordinates to perfrom better.

8.15 Required Resources

Griffin R.W. (2013). Management (11th Edition). Mason, South-Wesstern, Cengage Learning.

Mcshane S.L and Von Glinow M.A (2008). Organisational Behaviour: Emerging Realities
for the Workplace Revolution (4th Edition). Boston, McGraw Hill Irwin.

Mullins J.L. (2010). Management and Organisational Behaviour (9th Edition). Munich,
Prentice Hall.

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Robbins S.P. and Judge T.A. (2013). Organisational Behaviour (15th Edition). New Jersey,
Pearson Education Inc.

MODULE SUMMARY

This module has discussed individual processes and behaviour. In doing so it has been
divided into eight units.

The first unit of this module discusses individual processes and work attitudes. It begins by
discussing the MARS model of individual behaviour. This is followed up by a discussion on
work related attitudes such as job satisfaction and dissatisfaction, job involvement,
organisational commitment, perceived organisational support, and employee engagement.
The first unit also discusses how employees express dissatisfaction.

The second unit of this module discusses emotions, affect, and moods. This unit explains
sources of emotions and moods such as personality, day of the week, stress, social activities,
sleep, exercise, age, and sex. This unit ends with discussions on emotional labour and
emotional intelligence.

Unit three of this module focuses on perception and attribution. This unit begins by
explaining factors affecting perception before it discusses the link between perception and
attribution. This unit also discusses the common perceptual errors. The third unit also
discusses the link between perception and decision making.

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Unit four of this module discusses work related stress. This unit highlights the factors
responsible for stress such as task demands, role demands, and interpersonal demands. The
unit also discusses individual and organisational strategies of coping with stress.

In the fifth unit of this module, the focus is on personality and values. The unit discusses the
factors that determine personality such as heredity, the environment, and situations. The unit
also discusses various personality types and how they relate to job performance. A discussion
on the importance of values is also included in this unit.

The last three units of this module (units six, seven and eight) focus on motivation. Unit six
discusses the content theories of motivation such as: Maslow’s Hierarchy of Needs theory;
Alderfer’s ERG theory, Herzberg’s Two- Factor theory, and McClelland’s Achievement
Motivation theory. Unit seven discusses the process theories of motivation such as: Equity
theory; Expectancy theories; Goal Setting theory. Lastly, unit eight discusses reinforcement
and motivation.

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