The Lee Kong Chian School of

Business
Academic Year 2025/26
August Term

OBHR615
ORGANIZATIONAL BEHAVIOR AND
LEADERSHIP

TEACHING NOTES – WEEK 2

Knowing Yourself

BURAK OC, PhD

EMAIL: BURAKOC@[Link]
INTRO

Learning Objectives

By the end of this week, you will be able to:

• Define values and self-concept and understand the empirical evidence linking these
factors to job performance, satisfaction, and leadership effectiveness.
• Evaluate the role of self-concept dimensions (personal, relational, and collective) in
shaping workplace behaviors.
• Define culture in organizations and evaluate strategies for creating, reinforcing, and
changing organizational culture.
• Reflect on how organizational design and culture influence your own work
experiences.

Key Terms and Concepts

• Values: Value systems, Shalom Schwartz’s 10 basic values

• Self-Concept:
o Dimensions: Personal, Relational, Collective
o Elements: Self-esteem, Self-efficacy, Locus of control
o Processes: Self-assessment, Self-enhancement, Self-verification
• Organizational culture: Layers of culture, Strong vs Weak Cultures
• Creating and changing culture: Leader Influence, Encouraging Diversity, Resistance
to Change

Reflection Questions

• Can you recall a time when you adjusted your self-concept (e.g., personal, relational,
or collective) based on context? What was the outcome?
• How do you typically respond to feedback that challenges your self-concept?
• Have you experienced a strong or weak organizational culture? How did it shape
workplace behaviors?
• What symbols, stories, or rituals reinforce culture in organizations you have worked
in?
• How can leaders effectively change culture in an organization? What challenges
might they face?

Next Week's Preview

Next week, we will explore the MAJOR QUESTIONS we ask and seek to answer in
managing and leading people. Specifically, we will focus on job performance, recruitment,
motivation, and coaching for performance. Please come prepared to discuss your reflections
on this week's material and how it relates to your own life (work, if any) experiences.
WHAT ARE VALUES?

This week, we are covering the basic factors that play important roles in understanding
who we are and how we understand ourselves. One of the most important individual
characteristics frequently used to explain behavior is values.

Values are defined as basic convictions that a specific mode of conduct or end-state of
existence is personally or socially preferable to an opposite or converse mode of conduct or
end-state of existence. Values help us distinguish bad from good, wrong from right, and
can act as our moral compass. Compared to personality, values tell us what we ought to
do (rather than what we tend to do), are opposed to another (while personality traits are
not), and are learned more through socialization processes (rather than being innate like
personality traits or intelligence). We focus on values because they effectively explain our
perceptions, behaviors, attitudes, and motivations1,2.

Although we usually measure values as individual characteristics, what appears to be more

important in predicting behavior and reactions is our value systems 3, or our hierarchical
ranking of individual values in terms of their intensity. As values are learned through
socialization processes, unsurprisingly, family, friends, religion, experiences, and society
shape our value systems. Shalom Schwartz 4 proposed a circular motivational continuum of
10 basic individual values with sources that underlie their order. At the top of the
motivational hierarchy was growth (anxiety-free) versus self-protection (anxiety-
avoidance). One level below was social focus versus personal focus, and another level
below was conservation, self-enhancement, openness to change, and self-transcendence:
• Benevolence: Preservation and enhancement of the welfare of people with whom
one is in frequent personal contact.
• Universalism: Understanding, appreciation, tolerance and protection for the welfare
of all people and for nature.
• Self-direction: Independent thought and action-choosing, creating, exploring.
• Stimulation: Excitement, novelty and challenge in life.
• Hedonism: Pleasure and sensuous gratification for oneself.

1 In fact, our value system can be a better predictor of our future behaviors and reactions better than
our personality. In other words, ought to can outpower tend to.
2 Schwartz, S. H., Cieciuch, J., Vecchione, M., Davidov, E., Fischer, R., Beierlein, C., ... & Konty, M.

(2012). Refining the theory of basic individual values. Journal of personality and social
psychology, 103(4), 663.
3 Your value system is relatively stable and enduring after the age of 30 (plus/minus).
4 Schwartz, S. H. (2016). Basic individual values: Sources and consequences. Handbook of value:

Perspectives from economics, neuroscience, philosophy, psychology and sociology, 63, 84.
 • Achievement: Personal success through
demonstrating competence according to
social standards.
• Power: Social status and prestige, control or
dominance over people and resources.
• Security: Safety, harmony and stability of
society, of relationships and of self.
• Conformity: Restraint of actions, inclinations
and impulses likely to upset or harm others
and violate social expectations or norms.
• Tradition: Respect, commitment and
acceptance of the customs and ideas that
traditional culture or religion provide.

WHY SHOULD WE CARE ABOUT VALUES?

Whereas values are excellent predictors of how we interact with our environment, they are
also the cornerstone of research on person-organization fit. In particular, the fit between
our own values and those the organization espouses (i.e., value congruence) can be an
important factor in predicting job satisfaction (13% of the variance), career satisfaction
(5% of the variance), commitment (12% of the variance), and turnover intentions (23% of
the variance) 5,6.
Job performance Job satisfaction Career satisfaction
Commitment Turnover intentions Work-related stress
45% 42%

32% 30% 30%

30%
23%

13% 12%
15% 9% 8%
4% 5% 4%
0%
Value congruence Person-organization fit

WHAT IS SELF-CONCEPT?

We are progressively building knowledge regarding the concepts used in this course to
understand what constitutes a person psychologically. This knowledge not only helps in

5 Person-organization fit, as a more general version of value congruence, does predict job satisfaction
32% of the time, job performance 4% of the time, and work-related stress 8% of the time.
6 Kristof‐Brown, A. L., Zimmerman, R. D., & Johnson, E. C. (2005). Consequences OF INDIVIDUALS'FIT

at work: A meta‐analysis OF person–job, person–organization, person–group, and person–supervisor fit.

Personnel psychology, 58(2), 281-342.
Verquer, M. L., Beehr, T. A., & Wagner, S. H. (2003). A meta-analysis of relations between person–
organization fit and work attitudes. Journal of vocational behavior, 63(3), 473-489.
better understanding oneself but also assists in analyzing the people with whom we interact
at work (who compose the teams and organizations).

Before discussing and defining self-concept, defining perception is crucial. Perceptions are
important to managing and leading people because people's behaviors are based on their
perception of reality, not on reality itself (recall that our science focuses on the intangibles:
our perception of things). Perception is defined as a process by which individuals interpret
and organize their sensory impressions to give meaning to their environment 7. Even though
one might think how one perceives oneself should be a straightforward process, several
factors rooted in the perceiver, the target, and the situation can prevent the perception
process from functioning smoothly. Such factors can help us establish certain schemas
which we then use when interacting with our environment, preventing us from re-analyzing
it repeatedly. Although this is beneficial, we also know these schemas can misguide us, as
each person and situation can be wildly different from others8,9.

Self-concept is an individual's self-beliefs and self-evaluations or a picture of ourselves

that we create from our own subjective reality (using our perceptions) and helps us answer
questions like 'Who am I?' or 'How do I feel about myself?'. Individuals try to achieve self-
definition and self-interpretation (i.e., identity) in three fundamental ways: (1) personal
self, (2) relational self, (3) collective self 10.

• Personal self contains traits that differentiate you from others within your social
context. It relies on interpersonal comparison processes and is associated with the
motive to protect or enhance the person psychologically.

• Relational self contains characteristics or traits shared with relationship partners

and defines your role or position in that relationship. It is based on personalized
bonds of attachment (e.g., parent-child; teacher-student), relies on the process of
reflected appraisal, and is associated with the motive to protect the significant other
and maintain the relationship.

• Collective self contains characteristics or traits that differentiate in-group members

from members of relevant out-groups. It is based on impersonal bonds to others
derived from common identification with a group (they do not require close
interpersonal relationships), relies on intergroup comparison processes, and is
associated with the motive to protect the group you belong to. Hence, we tend to
have multiple selves.

In that regard, the complexity (i.e., the number and distinctiveness of the roles or
identities that you perceive about yourself) 11 and internal consistency (i.e., the extent to
which you require or exhibit similar personality, values and attributes across multiple
selves) are important characteristics of one’s self-concept.

7 Please refer to Chapter 6 in Robbins, S. P., & Judge, T. A. (2021). Organizational Behavior (18th
Edition: Global Edition). Pearson.
8 We will come back to this when we talk about diversity and unconscious bias in Weeks 5 and 9.
9 This is what was happening when you were the story of a store in Harlem.
10 Brewer, M. B., & Gardner, W. (1996). Who is this" We"? Levels of collective identity and self-

representations. Journal of personality and social psychology, 71(1), 83.

11 It protects us from feeling negatively after failure (16% of the time). Can this be an explanation for

hooligan behavior in Europe in the past?

And at the core of our self-concept, three important elements reveal themselves which we
also frequently use to explain why some of us to do certain things at work: self-esteem,
self-efficacy, and locus of control 12.

Self-esteem is defined as the extent to which people like, respect and are satisfied with
themselves. Those with higher self-esteem are less likely to be influenced by others, are
more persistent and more logical in their decision-making processes.

Self-efficacy, defined as the belief in one’s ability, motivation, role perceptions and
situation to complete a task successfully, can be task-specific (e.g., your belief in your
ability to solve complex math problems or succeed in this unit) and general self-efficacy
(e.g., your belief in your ability to solve all sorts of problems you face at work or succeed
as an MBA student).

Finally, locus of control refers to one’s general belief about personal control over life
events. The concepts and the factors shaping these concepts are important for us to
discuss because they predict substantial variance in job performance and job satisfaction 13.

Yet, one might guess we should be able to perceive ourselves accurately. At the end of the
day, we are perceiving ourselves, right? However, there are at least three processes that
can affect how we perceive ourselves. Put simply, how we perceive or assess ourselves is
not an aimless process but, rather, is directed and affected by our motives (frequently
targeted at protecting or enhancing our self-efficacy or our self-esteem via self-efficacy)14.

1. Self-assessment: The desire to have accurate information about oneself.

In doing so, we reduce uncertainty about our abilities or personality
characteristics. In addition, accurate self-knowledge enables us to select activities
or goals that are appropriate for our level of skill and provides foundation on which
to grow or change.

2. Self-enhancement: The drive to promote or perceive a positive self-view (e.g.,

competent, attractive, lucky, ethical, valued). Self-enhancement leads to better
personal adjustment and mental and physical health. It inflates personal causation
and probability of success such that we become more likely to overestimate future
returns and blame the situation for our mistakes.

3. Self-verification: The motivation to confirm and maintain our self-concept

It helps us stabilize our self-concept. However, in doing so, we may divert our
attention selectively, accept and recall information that is consistent with our self-
concept. We may also interact more with those who affirm and reflect our current
self-concept as we prefer feedback consistent with their self-concept.

12 Bono, J. E., & Judge, T. A. (2003). Core self‐evaluations: A review of the trait and its role in job
satisfaction and job performance. European Journal of personality, 17(1), S5-S18.
Judge, T. A., Bono, J. E., Erez, A., & Locke, E. A. (2005). Core self-evaluations and job and life
satisfaction: the role of self-concordance and goal attainment. Journal of applied psychology, 90(2), 257.
13 Self-efficacy appears to be the most important factor among these in predicting job satisfaction. In

contrast, the differences in predictive power of these concepts in job performance seem to be negligent.
14 Please refer to Chapter 6 in Robbins, S. P., & Judge, T. A. (2021). Organizational Behavior (18th

Edition: Global Edition). Pearson.

WHY SHOULD WE CARE ABOUT SELF-CONCEPT?15

The most striking finding here is the strong relation between self-efficacy and self-esteem.
This is a very strong statement for how our need for competence is actually very important
for us. Hence, imagine that at work your boss assigned you into a rather difficult project,
and you naturally feel like you may not succeed in this role (i.e., low self-efficacy). This
probably will make you feel less happy with yourself, right? If so, the question then
becomes who would be more likely to blame for this? Your boss or yourself? Similarly, self-
efficacy is a strong predictor of one’s job satisfaction. Interestingly, the feeling of being
able to do your job explains considerable variance in whether you will be satisfied with the
same job itself. Is this not what we like doing something that we are good at (i.e., your
common-sense talking)?

Job performance Job satisfaction Self-esteem Negative feelings

80% 72%

60%

40%
25%
20%
20% 14% 16%
7% 7% 8% 10%
5% 5%
0%
Self-esteem Self-efficacy Locus of control

ORGANIZATIONAL CULTURE

WHY DO WE CARE ABOUT ORGANIZATIONAL CULTURE?

Culture often ranks among the most underestimated factors in organizational research,
frequently being the scapegoat when organizations falter. Much of the advice concerning
organizational culture is notably lacking in scientific rigor, often relying on post-hoc
explanations.16. Having clear rules and structures tends to breed complexity and rigidity.
Conversely, internalized control systems such as culture can prove more effective, as they
don't contribute to complexity and offer greater flexibility. Culture can indeed assist
organizations in cultivating a shared mindset, potentially serving as a more effective means
of governing behavior.

15 Chen, G., Gully, S. M., & Eden, D. (2004). General self‐efficacy and self‐esteem: Toward theoretical
and empirical distinction between correlated self‐evaluations. Journal of Organizational Behavior: The
International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 25 (3),
375-395.
Judge, T. A., & Bono, J. E. (2001). Relationship of core self-evaluations traits—self-esteem, generalized
self-efficacy, locus of control, and emotional stability—with job satisfaction and job performance: A
meta-analysis. Journal of applied Psychology, 86(1), 80.
16
What happened with Lego has been a great example for this. Take a look at this article:
[Link]
WHAT CULTURE IS AND IS NOT?

Culture is defined as the shared ways of thinking and doing things (i.e., mental
programming) in a social group.17 Concurrently, organizational culture encompasses implicit
and emergent organizational understandings, such as assumptions, beliefs, and values,
which provide the context for employees to interpret and make sense of events within the
organization, including their own self-concept when those events pertain to them
individually18. You can also think organizational culture as “the customary or traditional
ways of thinking and doing things, which are shared to a greater or lesser degree by all
members of the organization and which new members must learn and at least partially
accept in order to be accepted in the service of the firm” 19.

Organizational cultures can be categorized as either strong or weak 20. A strong culture is
deeply ingrained in the operational practices of a business or organization. In the presence
of a strong culture, there is less reliance on detailed policies and procedures (formalization)
because employees understand and adhere to the established norms: "this is the way
things are done around here." In many organizations, culture itself becomes synonymous
with strategy.

Conversely, a weak culture may emerge when core values are not clearly defined,
communicated, or widely accepted by employees. The absence of a strong culture results in
inconsistent behaviors within the organization and fosters political maneuvering or a status
quo mentality. Consequently, there is a heightened need for detailed policies and
procedures to provide guidance, as employees may lack clarity on "the way things are done
around here."

17
Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.
18
Ibid.
19
Jacques, E. (1951), The changing culture of a factory, London: Travistock Institute.
20
Chatman, J. A., & O’Reilly, C. A. (2016). Paradigm lost: Reinvigorating the study of organizational
culture. Research in organizational behavior, 36, 199-224.
WHAT ARE THE LAYERS OF CULTURE?

There are three distinct layers that contribute to shaping an organization's (or society's)
culture21. At its foundational level are the assumptions, representing the underlying logics
of culture, which are often tacit and challenging to articulate. These assumptions are taken-
for-granted images and moral sentiments. For instance, we might assume that there are a
limited number of human problems requiring solutions, and that there exists a finite set of
preferred solutions based on these assumptions. Some key areas where such assumptions
aid us in addressing these questions include:

a) Views on whether individuals are inherently good or evil.

b) Perspectives on whether relationships in our environment should be characterized by
dominance or harmony.
c) Beliefs regarding the importance of future outcomes versus present or past events.
d) Attitudes toward the concept of private space versus shared spaces.
e) Ethical considerations, including whether an action's morality is determined by its
consequences or the actions that lead to those consequences.

These assumptions subsequently influence the values, which are the prescribed rules of
behavior that shape our beliefs about right versus wrong, what is important, and generally
how we approach problem-solving. These values, in turn, impact the artifacts, which are
the observable expressions of culture, including symbols, stories, ceremonies, and rituals
encountered within an organization. In this context, the language and metaphors employed
within an organization serve as vehicles for communicating assumptions, values, and
ideology. Stories and jargon highlight norms and showcase heroes or role models, while
ceremonies and rituals reinforce organizational culture22 to build in-group cohesion and
morale, dress and uniform to establish positive organizational identity, and physical settings
and surroundings shape human interaction.

For instance, what cultural assumptions and values do you see manifested in Google’s
offices in London?

Features of the space encompass 160,000 square feet, a "secret garden" balcony area, a
spacious Town Hall room for meetings and press events, gym and shower facilities, dance
studios, ample bike parking, 1250 desks, 1250 meeting chairs, and collaboration seats,
incorporating numerous eco-friendly and reclaimed materials, and offering panoramic views
of the London skyline.

• British flag: Reflects the company's American origin while emphasizing local values.
• Eclectic touches: Emphasize individuality as a core value.
• Open workspace: Encourages informality and collaboration.
• Modern furniture: Embodies the value of modernity and reflects the organization's
ethos.
• Promotes an ideal employee profile and a healthy work environment.

21
Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.
22
Snoopy and safety at Nasa (started after Apollo 1 fire): Silver Snoopy pins traveling with the
astronauts, then given to people whose performance contributed to keeping astronauts safe
(highest/most prestigious award); call signs for Apollo missions, on top of crew’s simulators, on
checklist, on communication caps.
 • Are there any drawbacks to such arrangements?
o Blurred work-life boundaries leading to burnout.
o Challenges in attaining a specific brand of professionalism due to the
informality.
o Potentially indulgent, fostering an expensive and overly playful environment.
o Reliance on the assumption that people are inherently good, thus reducing
the need for tight control.

WHAT ARE THE WAYS TO CREATE/REINFORCE/CHANGE AN ORGANIZATION’S

CULTURE?23

Culture serves as a firm's unconscious response to its environment. However, a significant

challenge with culture is its tendency to become ingrained at the organization's inception,
leading to difficulties when attempting to change it (known as inertia). General Motors (GM)
serves as an example of a company unable to transition from hostile supplier relationships
to cooperative ones. In contrast, the Air Force demonstrates an organization capable of
change, evolving its culture to blend military and private sector aspects, such as adopting
standard work hours to attract talent with civilian sector opportunities.

Moreover, as organizations grow, their cultures often transform into bureaucracies. This
shift weakens cultures as new leaders attempt to formalize informal relationships,
transitioning flexible normative systems into rigid rule-bound ones.

In newly-formed groups, culture can emerge through the influence of a charismatic leader
or through the collective characteristics, attitudes, and cultural capital of group members.
However, for culture to develop and be embraced within such groups, its elements must be
widely recognized and deemed appropriate by all members. Additionally, cultural values
must withstand various challenges, prove effective in supporting the group's objectives,
and respect the existing status hierarchy.

In an established group where culture is already present and accepted, the following
actions can help reinforce that culture:

a) Demonstrating symbolic actions by leaders.

b) Exhibiting consistent information and behavior by multiple members.
c) Focusing on employee selection and socialization.
d) Implementing comprehensive rewards for behavior consistent with cultural norms.
e) Encouraging participation, as having a voice fosters commitment.

However, if there arises a need to change the organizational culture, the following
strategies can be considered:

a) Encouraging and supporting diversity: This involves promoting the participation

and empowerment of minority opinions, even if they challenge the existing culture.
b) Creating a crisis if necessary: Emphasizing the organization's accountability and
the need for change can catalyze cultural transformation.

23
Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.
 c) Highlighting the non-distinctiveness of the current culture: By illustrating
similarities with other organizations, the perception of uniqueness within the existing
culture may diminish.
d) Introducing novel artifacts: Bringing in new symbols, rituals, or practices can
help shift the cultural paradigm and encourage change.

IMPLICATIONS – ORGANIZATIONAL CULTURE

There are at least three implications of what we discussed with respect to organizational
cultures.

1. Organizational culture offers control benefits, motivation, and capabilities; however,

it can also result in rigidity and tensions.
2. Organizational cultures exhibit varying degrees of strength and comprise multiple
layers, including artifacts, values/tools, and (hidden) assumptions.
3. Culture can be actively molded over time by both leaders and members, primarily
through efforts directed at the outer layers of culture.