organisational behaviour essay on motivation

Motivation and Organizational Behaviour Essay

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Motivation can be defined as a force that encourages and pushes an individual to perform to his fullest. Motivation is a very significant force that is required to finish a task or complete a goal. Motivation can be extrinsic like something that is done to earn a reward or avoid a punishment.

Cleaning the room to get a reward from parents is one example. It can also be intrinsic like something that is done if it brings pleasure and is enjoyable. For example taking part in a football tournament could be enjoyable and rewarding in terms of certificates and medals.

I mostly get motivated with verbal praise rather than monetary benefits. Motivation can come in different types, and the one I find most effective is when someone believes in me and place all their trust on to me.

I am a person who liked to get appreciation when I put extra effort to meet targets. If I do not get appreciation, then I am more likely to lose motivation. I then feel that all my efforts have gone to waste as no one appreciated or even noticed the task I so brilliantly completed (Kinicki, 2008).

I normally try to interact and keep a positive behaviour and attitude with my co-workers. I have learned that keeping a positive and friendly attitude is very important and leads to motivation. As people find me friendly, they always try to give me honest advice and correct feedback which motivates me.

I believe that I was able to stay motivated because my co-workers have been supportive. I have seen such types of employees and know for sure how dissatisfied they are with their entourage (Pinder, 2008).

My organization makes sure that employees interact with one another and that there is no one receiving special treatment nor is there anyone creating groups between employees. The organization believes that if employees work as a unit then they will be more efficient rather than working all by themselves.

For this purpose, they believe in job rotation. Every member of the organization gets to be a part of different teams so that he could spend time with them and get to know them. The organization believes that when the entire organization knows each other then there would not be any complaints or any jealousy for the others.

The organization makes sure that all employees feel that they are equally contributing towards the success of the organization. There is no one small or anyone big. The organization where I am currently employed provides equal importance to each and every worker (Nelson & Quick, 2008).

More could be done as there is always room for improvement. The top management can play a vital role in motivating the employees verbally. I have noticed that sometimes the top management does not realise the power they have over employees. They are a source of information and employees look on to them as their idols. I speak this because that is how I feel and most of the members in my office feel.

Employees tend to feel neglected when they are not motivated by management for putting extra effort at work. Their performance slows down ultimately affecting the output of the organization. Verbal praise from top management may allow the employees to become positive in every possible way.

Reference List

Kinicki, A. (2008). Organizational Behavior: Key Concepts, Skills & Best. New York: McGraw-Hill Learning Solutions.

Nelson, D. L., & Quick, J. C. (2008). Understanding Organizational Behavior. Mason: Cengage Learning.

Pinder, C. C. (2008). Work Motivation in Organizational Behavior. Hoboken: Psychology Press.

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Section 6: Motivation in the Workplace

What you’ll learn to do: Describe various theories of motivation

We talked a little bit about what motivation is and what it looks like within an organization. To do that, we used Victor Vroom’s expectancy framework, a model that attempts to dissect and explain employee performance by distilling it down to its most basic level.

The expectancy framework is just one of many models that have been developed over the years. Since the industrial age, scientists have been examining what motivates people to perform in employment situations. None of them have it all wrong, but none of them have it all right. They’ll continue to try, we’re sure, because a lot is at stake for organizations, and situations change every day.

In this unit, we’re going to take a look back at how we got to where we are now, and how we can apply that today, domestically and abroad.

Learning Outcomes

• Explain the role of the Hawthorne effect in management
• List the various levels of needs in Maslow’s hierarchy
• Summarize the changes to Maslow’s hierarchy of needs in Alderfer’s ERG theory
• Describe how employees might be motivated using McClelland’s acquired needs theory
• Differentiate between Theory X and Theory Y
• Explain the difference between intrinsic and extrinsic motivators in Herzberg’s two-factor theory

The Hawthorne Effect

During the 1920s, a series of studies that marked a change in the direction of motivational and managerial theory was conducted by Elton Mayo on workers at the Hawthorne plant of the Western Electric Company in Illinois. Previous studies, in particular Frederick Taylor’s work, took a “man as machine” view and focused on ways of improving individual performance. Hawthorne, however, set the individual in a social context, arguing that employees’ performance is influenced by work surroundings and coworkers as much as by employee ability and skill. The Hawthorne studies are credited with focusing managerial strategy on the socio-psychological aspects of human behavior in organizations.

The following video from the AT&T archives contains interviews with individuals who participated in these studies. It provides insight into the way the studies were conducted and how they changed employers’ views on worker motivation.

The studies originally looked into the effects of physical conditions on productivity and whether workers were more responsive and worked more efficiently under certain environmental conditions, such as improved lighting. The results were surprising: Mayo found that workers were more responsive to social factors—such as their manager and coworkers—than the factors (lighting, etc.) the researchers set out to investigate. In fact, worker productivity improved when the lights were dimmed again and when everything had been returned to the way it was before the experiment began, productivity at the factory was at its highest level and absenteeism had plummeted.

What happened was Mayo discovered that workers were highly responsive to additional attention from their managers and the feeling that their managers actually cared about and were interested in their work. The studies also found that although financial incentives are important drivers of worker productivity, social factors are equally important.

Practice Question

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There were a number of other experiments conducted in the Hawthorne studies, including one in which two women were chosen as test subjects and were then asked to choose four other workers to join the test group. Together, the women worked assembling telephone relays in a separate room over the course of five years (1927–1932). Their output was measured during this time—at first, in secret. It started two weeks before moving the women to an experiment room and continued throughout the study. In the experiment room, they were assigned to a supervisor who discussed changes with them and, at times, used the women’s suggestions. The researchers then spent five years measuring how different variables affected both the group’s and the individuals’ productivity. Some of the variables included giving two five-minute breaks (after a discussion with the group on the best length of time), and then changing to two ten-minute breaks (not the preference of the group).

Changing a variable usually increased productivity, even if the variable was just a change back to the original condition. Researchers concluded that the employees worked harder because they thought they were being monitored individually. Researchers hypothesized that choosing one’s own coworkers, working as a group, being treated as special (as evidenced by working in a separate room), and having a sympathetic supervisor were the real reasons for the productivity increase.

The Hawthorne studies showed that people’s work performance is dependent on social issues and job satisfaction. The studies concluded that tangible motivators such as monetary incentives and good working conditions are generally less important in improving employee productivity than intangible motivators such as meeting individuals’ desire to belong to a group and be included in decision making and work.

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Need-Based Theories

Maslow’s hierarchy of needs.

Human motivation can be defined as the fulfillment of various needs. These needs can encompass a range of human desires, from basic, tangible needs of survival to complex, emotional needs surrounding an individual’s psychological well-being.

Abraham Maslow was a social psychologist who was interested in a broad spectrum of human psychological needs rather than on individual psychological problems. He is best known for his hierarchy-of-needs theory. Depicted in a pyramid (shown in Figure 1), the theory organizes the different levels of human psychological and physical needs in order of importance.

The needs in Maslow’s hierarchy include physiological needs (food and clothing), safety needs (job security), social needs (friendship), self-esteem, and self-actualization. This hierarchy can be used by managers to better understand employees’ needs and motivation and address them in ways that lead to high productivity and job satisfaction.

At the bottom of the pyramid are the physiological (or basic) human needs that are required for survival: food, shelter, water, sleep, etc. If these requirements are not met, the body cannot continue to function. Faced with a lack of food, love, and safety, most people would probably consider food to be their most urgent need.

Once physical needs are satisfied, security (sometimes referred to as individual safety) takes precedence. Security and safety needs include personal security, financial security, and health and well-being. These first two levels are important to the physical survival of the person. Once individuals have basic nutrition, shelter, and safety, they seek to fulfill higher-level needs.

The third level of need is social , which includes love and belonging; when individuals have taken care of themselves physically, they can address their need to share and connect with others. Deficiencies at this level, on account of neglect, shunning, ostracism, etc., can impact an individual’s ability to form and maintain emotionally significant relationships. Humans need to feel a sense of belonging and acceptance, whether it comes from a large social group or a small network of family and friends. Other sources of social connection may be professional organizations, clubs, religious groups, social media sites, and so forth. Humans need to love and be loved (sexually and non-sexually) by others. Without these attachments, people can be vulnerable to psychological difficulties such as loneliness, social anxiety, and depression. These conditions, when severe, can impair a person’s ability to address basic physiological needs such as eating and sleeping.

The fourth level is esteem , which represents the normal human desire to be valued and validated by others, through, for example, the recognition of success or status. This level also includes self-esteem, which refers to the regard and acceptance one has for oneself. Imbalances at this level can result in low self-esteem or an inferiority complex. People suffering from low self-esteem may find that external validation by others—through fame, glory, accolades, etc.—only partially or temporarily fulfills their needs at this level.

At the top of the pyramid is self-actualization . At this stage, people feel that they have reached their full potential and are doing everything they’re capable of. Self-actualization is rarely a permanent feeling or state. Rather, it refers to the ongoing need for personal growth and discovery that people have throughout their lives. Self-actualization may occur after reaching an important goal or overcoming a particular challenge, and it may be marked by a new sense of self-confidence or contentment.

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Alderfer’s ERG Theory

Existence needs concern our basic material requirements for living. These include what Maslow categorized as physiological needs (such as air, food, water, and shelter) and safety-related needs (such as health, secure employment, and property).

Relatedness needs have to do with the importance of maintaining interpersonal relationships. These needs are based in social interactions with others and align with Maslow’s levels of love/belonging-related needs (such as friendship, family, and sexual intimacy) and esteem-related needs (gaining the respect of others).

Finally, growth needs to describe our intrinsic desire for personal development. These needs align with the other portion of Maslow’s esteem-related needs (self-esteem, self-confidence, and achievement) and self-actualization needs (such as morality, creativity, problem-solving, and discovery).

Alderfer proposed that when a certain category of needs isn’t being met, people will redouble their efforts to fulfill needs in a lower category. For example, if someone’s self-esteem is suffering, he or she will invest more effort in the relatedness category of needs.

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McClelland’s Acquired Needs Theory

Employees who are strongly achievement-motivated are driven by the desire for mastery. They prefer working on tasks of moderate difficulty in which outcomes are the result of their effort rather than luck. They value receiving feedback on their work.

Employees who are strongly affiliation-motivated are driven by the desire to create and maintain social relationships. They enjoy belonging to a group and want to feel loved and accepted. They may not make effective managers because they may worry too much about how others will feel about them.

Employees who are strongly power-motivated are driven by the desire to influence, teach, or encourage others. They enjoy work and place a high value on discipline. However, they may take a zero-sum approach to group work—for one person to win, or succeed, another must lose, or fail. If channeled appropriately, though, this approach can positively support group goals and help others in the group feel competent.

The acquired-needs theory doesn’t claim that people can be neatly categorized into one of three types. Rather, it asserts that all people are motivated by all of these needs in varying degrees and proportions. An individual’s balance of these needs forms a kind of profile that can be useful in creating a tailored motivational paradigm for her. It is important to note that needs do not necessarily correlate with competencies; it is possible for an employee to be strongly affiliation-motivated, for example, but still be successful in a situation in which her affiliation needs are not met.

McClelland proposes that those in top management positions generally have a high need for power and a low need for affiliation. He also believes that although individuals with a need for achievement can make good managers, they are not generally suited to being in top management positions.

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McGregor’s Theory X and Theory Y

The idea that a manager’s attitude has an impact on employee motivation was originally proposed by Douglas McGregor , a management professor at the Massachusetts Institute of Technology during the 1950s and 1960s. In his 1960 book, The Human Side of Enterprise , McGregor proposed two theories by which managers perceive and address employee motivation. He referred to these opposing motivational methods as Theory X and Theory Y management. Each assumes that the manager’s role is to organize resources, including people, to best benefit the company. However, beyond this commonality, the attitudes and assumptions they embody are quite different.

According to McGregor, Theory X management assumes the following:

• Work is inherently distasteful to most people, and they will attempt to avoid work whenever possible.
• Most people are not ambitious, have little desire for responsibility, and prefer to be directed.
• Most people have little aptitude for creativity in solving organizational problems.
• Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs.
• Most people are self-centered. As a result, they must be closely controlled and often coerced to achieve organizational objectives.
• Most people resist change.
• Most people are gullible and unintelligent.

The hard approach to motivation relies on coercion, implicit threats, micromanagement, and tight controls— essentially an environment of command and control. The soft approach, however, is to be permissive and seek harmony in the hopes that, in return, employees will cooperate when asked. However, neither of these extremes is optimal. The hard approach results in hostility, purposely low output, and extreme union demands. The soft approach results in a growing desire for greater reward in exchange for diminished work output.

It might seem that the optimal approach to human resource management would lie somewhere between these extremes. However, McGregor asserts that neither approach is appropriate, since the basic assumptions of Theory X are incorrect.

Drawing on Maslow’s hierarchy of needs, McGregor argues that a need, once satisfied, no longer motivates. The company uses monetary rewards and benefits to satisfy employees’ lower-level needs. Once those needs have been satisfied, the motivation disappears. Theory X management hinders the satisfaction of higher-level needs because it doesn’t acknowledge that those needs are relevant in the workplace. As a result, the only way that employees can attempt to meet higher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. While money may not be the most effective way to self-fulfillment, it may be the only way available. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. However, employees can be most productive when their work goals align with their higher-level needs.

McGregor makes the point that a command-and-control environment is not effective because it relies on lower needs for motivation, but in modern society those needs are mostly satisfied and thus are no longer motivating. In this situation, one would expect employees to dislike their work, avoid responsibility, have no interest in organizational goals, resist change, etc.—creating, in effect, a self-fulfilling prophecy. To McGregor, a steady supply of motivation seemed more likely to occur under Theory Y management.

The higher-level needs of esteem and self-actualization are ongoing needs that, for most people, are never completely satisfied. As such, it is these higher-level needs through which employees can best be motivated.

In strong contrast to Theory X, Theory Y management makes the following assumptions:

• Work can be as natural as play if the conditions are favorable.
• People will be self-directed and creative to meet their work and organizational objectives if they are committed to them.
• People will be committed to their quality and productivity objectives if rewards are in place that address higher needs such as self-fulfillment.
• The capacity for creativity spreads throughout organizations.
• Most people can handle responsibility because creativity and ingenuity are common in the population.
• Under these conditions, people will seek responsibility.

McGregor recognized that some people may not have reached the level of maturity assumed by Theory Y and may initially need tighter controls that can be relaxed as the employee develops.

If Theory Y holds true, an organization can apply the following principles of scientific management to improve employee motivation:

• Decentralization and delegation : If firms decentralize control and reduce the number of levels of management, managers will have more subordinates and consequently need to delegate some responsibility and decision making to them.
• Job enlargement : Broadening the scope of an employee’s job adds variety and opportunities to satisfy ego needs.
• Participative management : Consulting employees in the decision-making process taps their creative capacity and provides them with some control over their work environment.
• Performance appraisals : Having the employee set objectives and participate in the process of self-evaluation increases engagement and dedication.

If properly implemented, such an environment can increase and continually fuel motivation as employees work to satisfy their higher-level personal needs through their jobs.

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Herzberg’s Two-Factor Theory

American psychologist Frederick Herzberg is regarded as one of the great original thinkers in management and motivational theory.  Herzberg set out to determine the effect of attitude on motivation, by simply asking people to describe the times when they felt really good, and really bad, about their jobs. What he found was that people who felt good about their jobs gave very different responses from the people who felt bad.

The results from this inquiry form the basis of Herzberg’s Motivation-Hygiene Theory (sometimes known as Herzberg’s “ Two Factor Theory” ). Published in his famous article, “One More Time: How do You Motivate Employees,” the conclusions he drew were extraordinarily influential, and still form the bedrock of good motivational practice nearly half a century later. He’s especially recognized for his two-factor theory, which hypothesized that are two different sets of factors governing job satisfaction and job dissatisfaction:  “hygiene factors,” or extrinsic motivators and “motivation factors,” or intrinsic motivators.

Hygiene factors , or extrinsic motivators, tend to represent more tangible, basic needs—i.e., the kinds of needs included in the existence category of needs in the ERG theory or in the lower levels of Maslow’s hierarchy of needs. Extrinsic motivators include status, job security, salary, and fringe benefits. It’s important for managers to realize that not providing the appropriate and expected extrinsic motivators will sow dissatisfaction and decrease motivation among employees.

Motivation factors, or intrinsic motivators, tend to represent less tangible, more emotional needs—i.e., the kinds of needs identified in the “relatedness” and “growth” categories of needs in the ERG theory and in the higher levels of Maslow’s hierarchy of needs. Intrinsic motivators include challenging work, recognition, relationships, and growth potential. Managers need to recognize that while these needs may fall outside the more traditional scope of what a workplace ought to provide, they can be critical to strong individual and team performance.

The factor that differentiates two-factor theory from the others we’ve discussed is the role of employee expectations . According to Herzberg, intrinsic motivators and extrinsic motivators have an inverse relationship. That is, intrinsic motivators tend to increase motivation when they are present, while extrinsic motivators tend to reduce motivation when they are absent. This is due to employees’ expectations. Extrinsic motivators (e.g., salary, benefits) are expected, so they won’t increase motivation when they are in place, but they will cause dissatisfaction when they are missing. Intrinsic motivators (e.g., challenging work, growth potential), on the other hand, can be a source of additional motivation when they are available.

If management wants to increase employees’ job satisfaction, they should be concerned with the nature of the work itself—the opportunities it presents employees for gaining status, assuming responsibility, and achieving self-realization. If, on the other hand, management wishes to reduce dissatisfaction, then it must focus on the job environment—policies, procedures, supervision, and working conditions. To ensure a satisfied and productive workforce, managers must pay attention to both sets of job factors.

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6.3 Theories of Motivation Copyright © 2019 by Graduate Studies is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Motivation in Organisational Behaviour: Definitions, 6 Elements, Objectives, Factors, Importance, Tools, Issues

What is motivation in organisational behaviour.

The word motivation is coined from the Latin word “movere”, which means to move. Motivation is defined as an internal drive that activates behavior and gives it direction.

Motivation is the art of stimulating people to get the desired things done. A motive is a need or desire which stimulates and directs human behavior. It is possible only when their needs are satisfied through proper incentives or rewards.

Definition of Motivation

Motivation is the act of stimulating someone or oneself to get a desired course of action, to push the right button to get the desired reaction. Michael, J. Jucius

Motivation can be defined as a willingness to expand energy to achieve a goal or a reward. Dale, S. Beach

The concept of motivation is mainly psychological. It relates to those forces operating within the individual employees or subordinates which compel them to act or not to act in certain ways. D.E. Mc. Farland

On the basis of the analytical study of the above definitions, it may be concluded that motivation is a process that inspires the human efforts of an organization to perform their duties in the best possible manner so that the predetermined objectives of the enterprise may be achieved.

Elements of Motivation

Motivation is the incentive for employees. It is a personal and natural feeling in the minds of the employees. This feeling arises in the mind of an individual. In fact, an individual is inspired to make efforts to satisfy the needs of his life.

Unending Process

Psychological concept, power to act.

Motivation is the power to act. It inspires an individual to work. Feeling of a need creates tension and a person wants to work to satisfy his need. When the need is satisfied, the persons feel motivated to work for the achievement of common goals.

Increase in Efficiency

Motivation increases the efficiency of an individual. He uses his ability and efficiency to the best possible extent which increases his efficiency. Motivation increases the quantity and quality of production.

Increase in Morale

Morale is a group feeling. Motivation motivates the employees to work with the cooperation of others. Thus, motivation is helpful in increasing the morale of the employees.

Objectives of Motivation

Factors affecting motivation.

Factors affecting motivation may be divided into the following parts:

Monetary Incentives

Monetary incentives are direct incentives provided to the employees of an enterprise. It includes the following incentives: (a) Proper wage or salary (b) Bonus (c) Overtime (d) Monetary rewards and (5) Interest on investments. Monetary incentives satisfy the basic needs of employees.

Non-Monetary Incentives

Importance of motivation, puts human resources into action.

Every concern requires physical, financial, and human resources to accomplish the goals. It is through motivation that human resources can be utilized by making full use of it. This can be done by building willingness in employees to work. This will help the enterprise in securing the best possible utilization of resources.

Improves Level of Efficiency of Employees

Leads to achievement of organizational goals.

The goals of an enterprise can be achieved only when the following factors take place:

Builds Friendly Relationship

Motivation is an important factor that brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in:

Leads to Stability of Workforce

Similarly, motivation is important to a business as:

Motivating Employees in Organizations

A number of motivation theories have been discussed above. Based on these theories, the following suggestions summarize the essence of motivating employees in organizations :

Recognize Individual Differences

Use goals and feedback, include employees in decision-making.

Employees should be included in making decisions that affect them, for example, choosing their own benefits, and solving productivity and quality problems.

Motivational Tools

Management by objective (mbo).

Management by objectives emphasizes participatively set goals that are tangible, verifiable, and measurable. Four ingredients common to MBO programs are goal specificity, participative decision-making, an explicit time period, and performance feedback (Robbins, 2003):

MBO and Goal-Setting Theory are closely linked. Goal-setting theory proposes that tangible goals result in a higher level of individual performance than easy goals. Feedback on one’s performance leads to higher performance. MBO also directly advocates specific goals and feedback, implying that goals must be perceived as feasible and is most effective when the goals are difficult enough to require stretching.

Employee Recognition Programmes

Employee involvement programmes.

Employee involvement includes participative management, workplace democracy, empowerment, and employee ownership. Employees’ involvement in the decision-making would positively affect them and by increasing their autonomy and control over their work lives, employees will become more motivated, more committed to the organization, more productive, and more satisfied with their jobs.

Some forms of employee involvement have been discussed here: participative management, representative participation, quality circles, and employee stock ownership plans.

Participative Management

The manager involves subordinates in decision-making, consults with them about their views of the situation, asks for their suggestions, considers those suggestions in making a decision, and sometimes lets the subordinates make the decisions themselves. The logic behind participative management is:

Quality Circles (QC)

Employee stock ownership plans (esops), special issues in motivation.

Various groups of employees provide specific challenges in terms of motivation . Some of them are explained below:

Motivating Diversified WorkForce

Motivating temporary workers.

Temporary workers may be motivated in the following ways:

Motivating Professionals

Faqs section, what are the elements of motivation.

Incentive, Unending Processes, Psychological Concepts, Power to Act, Increase in Efficiency, and Increase in Morale are the elements of motivation.

What are the motivational tools?

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Motivation in organizational behavior: History, advances and prospects

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This article reviews theories of motivation in the workplace, what these theories look like in the modern workplace, and interventions designed to increase individual and system-wide organizational motivation. We explored a wide range of theories, including the expectancy theory, Maslow’s hierarchy, the motivation-hygiene theory, the equity theory, reward structures, cognitive evaluation theory, and feedback, to formulate conclusions about common organization development (OD) interventions that are meant to address the theories. Reviewed interventions include; organization structure design, achievement orientation, goal setting, job design, quality feedback, and empowerment programs. We followed a multidisciplinary integrated literature review approach to move beyond merely summarizing the literature but substantially contributing new and valuable knowledge to the fields of leadership and organization development. The research cements the need for understanding individuals’ needs and goals, the value of quality feedback, rewarding positive behavior, leading with fairness, and allowing space for autonomy.

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One of the major responsibilities of managers in an organization is to identify potential capacities of the personnel and to bring about conditions for their growth and realization of these capacities which in turn, serves the basic goal of promoting productivity. In other words, gaining knowledge about motivational factors for improving performance and productivity of the organization is of great importance. Also, such this knowledge can greatly help to improve the application of human resources in organizations, prevent employees' resistance against change, reduce limitations in the output, and prevent conflict among personnel, a process which consequently results in a profitable organization. Motivation is about human life and realization of goals. Human beings live and work happily and hopefully when they feel alive and perceive a meaningful relationship between their work and life.

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Article contents

Organizational behavior.

• Neal M. Ashkanasy Neal M. Ashkanasy University of Queensland
•  and  Alana D. Dorris Alana D. Dorris University of Queensland
• https://doi.org/10.1093/acrefore/9780190236557.013.23
• Published online: 29 March 2017

Organizational behavior (OB) is a discipline that includes principles from psychology, sociology, and anthropology. Its focus is on understanding how people behave in organizational work environments. Broadly speaking, OB covers three main levels of analysis: micro (individuals), meso (groups), and macro (the organization). Topics at the micro level include managing the diverse workforce; effects of individual differences in attitudes; job satisfaction and engagement, including their implications for performance and management; personality, including the effects of different cultures; perception and its effects on decision-making; employee values; emotions, including emotional intelligence, emotional labor, and the effects of positive and negative affect on decision-making and creativity (including common biases and errors in decision-making); and motivation, including the effects of rewards and goal-setting and implications for management. Topics at the meso level of analysis include group decision-making; managing work teams for optimum performance (including maximizing team performance and communication); managing team conflict (including the effects of task and relationship conflict on team effectiveness); team climate and group emotional tone; power, organizational politics, and ethical decision-making; and leadership, including leadership development and leadership effectiveness. At the organizational level, topics include organizational design and its effect on organizational performance; affective events theory and the physical environment; organizational culture and climate; and organizational change.

• organizational psychology
• organizational sociology
• organizational anthropology

Introduction

Organizational behavior (OB) is the study of how people behave in organizational work environments. More specifically, Robbins, Judge, Millett, and Boyle ( 2014 , p. 8) describe it as “[a] field of study that investigates the impact that individual groups and structure have on behavior within organizations, for the purposes of applying such knowledge towards improving an organization’s effectiveness.” The OB field looks at the specific context of the work environment in terms of human attitudes, cognition, and behavior, and it embodies contributions from psychology, social psychology, sociology, and anthropology. The field is also rapidly evolving because of the demands of today’s fast-paced world, where technology has given rise to work-from-home employees, globalization, and an ageing workforce. Thus, while managers and OB researchers seek to help employees find a work-life balance, improve ethical behavior (Ardichivili, Mitchell, & Jondle, 2009 ), customer service, and people skills (see, e.g., Brady & Cronin, 2001 ), they must simultaneously deal with issues such as workforce diversity, work-life balance, and cultural differences.

The most widely accepted model of OB consists of three interrelated levels: (1) micro (the individual level), (2) meso (the group level), and (3) macro (the organizational level). The behavioral sciences that make up the OB field contribute an element to each of these levels. In particular, OB deals with the interactions that take place among the three levels and, in turn, addresses how to improve performance of the organization as a whole.

In order to study OB and apply it to the workplace, it is first necessary to understand its end goal. In particular, if the goal is organizational effectiveness, then these questions arise: What can be done to make an organization more effective? And what determines organizational effectiveness? To answer these questions, dependent variables that include attitudes and behaviors such as productivity, job satisfaction, job performance, turnover intentions, withdrawal, motivation, and workplace deviance are introduced. Moreover, each level—micro, meso, and macro—has implications for guiding managers in their efforts to create a healthier work climate to enable increased organizational performance that includes higher sales, profits, and return on investment (ROE).

The Micro (Individual) Level of Analysis

The micro or individual level of analysis has its roots in social and organizational psychology. In this article, six central topics are identified and discussed: (1) diversity; (2) attitudes and job satisfaction; (3) personality and values; (4) emotions and moods; (5) perception and individual decision-making; and (6) motivation.

An obvious but oft-forgotten element at the individual level of OB is the diverse workforce. It is easy to recognize how different each employee is in terms of personal characteristics like age, skin color, nationality, ethnicity, and gender. Other, less biological characteristics include tenure, religion, sexual orientation, and gender identity. In the Australian context, while the Commonwealth Disability Discrimination Act of 1992 helped to increase participation of people with disabilities working in organizations, discrimination and exclusion still continue to inhibit equality (Feather & Boeckmann, 2007 ). In Western societies like Australia and the United States, however, antidiscrimination legislation is now addressing issues associated with an ageing workforce.

In terms of gender, there continues to be significant discrimination against female employees. Males have traditionally had much higher participation in the workforce, with only a significant increase in the female workforce beginning in the mid-1980s. Additionally, according to Ostroff and Atwater’s ( 2003 ) study of engineering managers, female managers earn a significantly lower salary than their male counterparts, especially when they are supervising mostly other females.

Job Satisfaction and Job Engagement

Job satisfaction is an attitudinal variable that comes about when an employee evaluates all the components of her or his job, which include affective, cognitive, and behavioral aspects (Weiss, 2002 ). Increased job satisfaction is associated with increased job performance, organizational citizenship behaviors (OCBs), and reduced turnover intentions (Wilkin, 2012 ). Moreover, traditional workers nowadays are frequently replaced by contingent workers in order to reduce costs and work in a nonsystematic manner. According to Wilkin’s ( 2012 ) findings, however, contingent workers as a group are less satisfied with their jobs than permanent employees are.

Job engagement concerns the degree of involvement that an employee experiences on the job (Kahn, 1990 ). It describes the degree to which an employee identifies with their job and considers their performance in that job important; it also determines that employee’s level of participation within their workplace. Britt, Dickinson, Greene-Shortridge, and McKibbin ( 2007 ) describe the two extremes of job satisfaction and employee engagement: a feeling of responsibility and commitment to superior job performance versus a feeling of disengagement leading to the employee wanting to withdraw or disconnect from work. The first scenario is also related to organizational commitment, the level of identification an employee has with an organization and its goals. Employees with high organizational commitment, job satisfaction, and employee engagement tend to perceive that their organization values their contribution and contributes to their wellbeing.

Personality represents a person’s enduring traits. The key here is the concept of enduring . The most widely adopted model of personality is the so-called Big Five (Costa & McCrae, 1992 ): extraversion, agreeableness, conscientiousness, emotional stability, and openness. Employees high in conscientiousness tend to have higher levels of job knowledge, probably because they invest more into learning about their role. Those higher in emotional stability tend to have higher levels of job satisfaction and lower levels of stress, most likely because of their positive and opportunistic outlooks. Agreeableness, similarly, is associated with being better liked and may lead to higher employee performance and decreased levels of deviant behavior.

Although the personality traits in the Big Five have been shown to relate to organizational behavior, organizational performance, career success (Judge, Higgins, Thoresen, & Barrick, 2006 ), and other personality traits are also relevant to the field. Examples include positive self-evaluation, self-monitoring (the degree to which an individual is aware of comparisons with others), Machiavellianism (the degree to which a person is practical, maintains emotional distance, and believes the end will justify the means), narcissism (having a grandiose sense of self-importance and entitlement), risk-taking, proactive personality, and type A personality. In particular, those who like themselves and are grounded in their belief that they are capable human beings are more likely to perform better because they have fewer self-doubts that may impede goal achievements. Individuals high in Machiavellianism may need a certain environment in order to succeed, such as a job that requires negotiation skills and offers significant rewards, although their inclination to engage in political behavior can sometimes limit their potential. Employees who are high on narcissism may wreak organizational havoc by manipulating subordinates and harming the overall business because of their over-inflated perceptions of self. Higher levels of self-monitoring often lead to better performance but they may cause lower commitment to the organization. Risk-taking can be positive or negative; it may be great for someone who thrives on rapid decision-making, but it may prove stressful for someone who likes to weigh pros and cons carefully before making decisions. Type A individuals may achieve high performance but may risk doing so in a way that causes stress and conflict. Proactive personality, on the other hand, is usually associated with positive organizational performance.

Employee Values

Personal value systems are behind each employee’s attitudes and personality. Each employee enters an organization with an already established set of beliefs about what should be and what should not be. Today, researchers realize that personality and values are linked to organizations and organizational behavior. Years ago, only personality’s relation to organizations was of concern, but now managers are more interested in an employee’s flexibility to adapt to organizational change and to remain high in organizational commitment. Holland’s ( 1973 ) theory of personality-job fit describes six personality types (realistic, investigative, social, conventional, enterprising, and artistic) and theorizes that job satisfaction and turnover are determined by how well a person matches her or his personality to a job. In addition to person-job (P-J) fit, researchers have also argued for person-organization (P-O) fit, whereby employees desire to be a part of and are selected by an organization that matches their values. The Big Five would suggest, for example, that extraverted employees would desire to be in team environments; agreeable people would align well with supportive organizational cultures rather than more aggressive ones; and people high on openness would fit better in organizations that emphasize creativity and innovation (Anderson, Spataro, & Flynn, 2008 ).

Individual Differences, Affect, and Emotion

Personality predisposes people to have certain moods (feelings that tend to be less intense but longer lasting than emotions) and emotions (intense feelings directed at someone or something). In particular, personalities with extraversion and emotional stability partially determine an individual predisposition to experience emotion more or less intensely.

Affect is also related as describing the positive and negative feelings that people experience (Ashkanasy, 2003 ). Moreover, emotions, mood, and affect interrelate; a bad mood, for instance, can lead individuals to experience a negative emotion. Emotions are action-oriented while moods tend to be more cognitive. This is because emotions are caused by a specific event that might only last a few seconds, while moods are general and can last for hours or even days. One of the sources of emotions is personality. Dispositional or trait affects correlate, on the one hand, with personality and are what make an individual more likely to respond to a situation in a predictable way (Watson & Tellegen, 1985 ). Moreover, like personality, affective traits have proven to be stable over time and across settings (Diener, Larsen, Levine, & Emmons, 1985 ; Watson, 1988 ; Watson & Tellegen, 1985 ; Watson & Walker, 1996 ). State affect, on the other hand, is similar to mood and represents how an individual feels in the moment.

The Role of Affect in Organizational Behavior

For many years, affect and emotions were ignored in the field of OB despite being fundamental factors underlying employee behavior (Ashforth & Humphrey, 1995 ). OB researchers traditionally focused on solely decreasing the effects of strong negative emotions that were seen to impede individual, group, and organizational level productivity. More recent theories of OB focus, however, on affect, which is seen to have positive, as well as negative, effects on behavior, described by Barsade, Brief, and Spataro ( 2003 , p. 3) as the “affective revolution.” In particular, scholars now understand that emotions can be measured objectively and be observed through nonverbal displays such as facial expression and gestures, verbal displays, fMRI, and hormone levels (Ashkanasy, 2003 ; Rashotte, 2002 ).

Fritz, Sonnentag, Spector, and McInroe ( 2010 ) focus on the importance of stress recovery in affective experiences. In fact, an individual employee’s affective state is critical to OB, and today more attention is being focused on discrete affective states. Emotions like fear and sadness may be related to counterproductive work behaviors (Judge et al., 2006 ). Stress recovery is another factor that is essential for more positive moods leading to positive organizational outcomes. In a study, Fritz et al. ( 2010 ) looked at levels of psychological detachment of employees on weekends away from the workplace and how it was associated with higher wellbeing and affect.

Emotional Intelligence and Emotional Labor

Ashkanasy and Daus ( 2002 ) suggest that emotional intelligence is distinct but positively related to other types of intelligence like IQ. It is defined by Mayer and Salovey ( 1997 ) as the ability to perceive, assimilate, understand, and manage emotion in the self and others. As such, it is an individual difference and develops over a lifetime, but it can be improved with training. Boyatzis and McKee ( 2005 ) describe emotional intelligence further as a form of adaptive resilience, insofar as employees high in emotional intelligence tend to engage in positive coping mechanisms and take a generally positive outlook toward challenging work situations.

Emotional labor occurs when an employee expresses her or his emotions in a way that is consistent with an organization’s display rules, and usually means that the employee engages in either surface or deep acting (Hochschild, 1983 ). This is because the emotions an employee is expressing as part of their role at work may be different from the emotions they are actually feeling (Ozcelik, 2013 ). Emotional labor has implications for an employee’s mental and physical health and wellbeing. Moreover, because of the discrepancy between felt emotions (how an employee actually feels) and displayed emotions or surface acting (what the organization requires the employee to emotionally display), surface acting has been linked to negative organizational outcomes such as heightened emotional exhaustion and reduced commitment (Erickson & Wharton, 1997 ; Brotheridge & Grandey, 2002 ; Grandey, 2003 ; Groth, Hennig-Thurau, & Walsh, 2009 ).

Affect and Organizational Decision-Making

Ashkanasy and Ashton-James ( 2008 ) make the case that the moods and emotions managers experience in response to positive or negative workplace situations affect outcomes and behavior not only at the individual level, but also in terms of strategic decision-making processes at the organizational level. These authors focus on affective events theory (Weiss & Cropanzano, 1996 ), which holds that organizational events trigger affective responses in organizational members, which in turn affect organizational attitudes, cognition, and behavior.

Perceptions and Behavior

Like personality, emotions, moods, and attitudes, perceptions also influence employees’ behaviors in the workplace. Perception is the way in which people organize and interpret sensory cues in order to give meaning to their surroundings. It can be influenced by time, work setting, social setting, other contextual factors such as time of day, time of year, temperature, a target’s clothing or appearance, as well as personal trait dispositions, attitudes, and value systems. In fact, a person’s behavior is based on her or his perception of reality—not necessarily the same as actual reality. Perception greatly influences individual decision-making because individuals base their behaviors on their perceptions of reality. In this regard, attribution theory (Martinko, 1995 ) outlines how individuals judge others and is our attempt to conclude whether a person’s behavior is internally or externally caused.

Decision-Making and the Role of Perception

Decision-making occurs as a reaction to a problem when the individual perceives there to be discrepancy between the current state of affairs and the state s/he desires. As such, decisions are the choices individuals make from a set of alternative courses of action. Each individual interprets information in her or his own way and decides which information is relevant to weigh pros and cons of each decision and its alternatives to come to her or his perception of the best outcome. In other words, each of our unique perceptual processes influences the final outcome (Janis & Mann, 1977 ).

Common Biases in Decision-Making

Although there is no perfect model for approaching decision-making, there are nonetheless many biases that individuals can make themselves aware of in order to maximize their outcomes. First, overconfidence bias is an inclination to overestimate the correctness of a decision. Those most likely to commit this error tend to be people with weak intellectual and interpersonal abilities. Anchoring bias occurs when individuals focus on the first information they receive, failing to adjust for information received subsequently. Marketers tend to use anchors in order to make impressions on clients quickly and project their brand names. Confirmation bias occurs when individuals only use facts that support their decisions while discounting all contrary views. Lastly, availability bias occurs when individuals base their judgments on information readily available. For example, a manager might rate an employee on a performance appraisal based on behavior in the past few days, rather than the past six months or year.

Errors in Decision-Making

Other errors in decision-making include hindsight bias and escalation of commitment . Hindsight bias is a tendency to believe, incorrectly, after an outcome of an event has already happened, that the decision-maker would have accurately predicted that same outcome. Furthermore, this bias, despite its prevalence, is especially insidious because it inhibits the ability to learn from the past and take responsibility for mistakes. Escalation of commitment is an inclination to continue with a chosen course of action instead of listening to negative feedback regarding that choice. When individuals feel responsible for their actions and those consequences, they escalate commitment probably because they have invested so much into making that particular decision. One solution to escalating commitment is to seek a source of clear, less distorted feedback (Staw, 1981 ).

The last but certainly not least important individual level topic is motivation. Like each of the topics discussed so far, a worker’s motivation is also influenced by individual differences and situational context. Motivation can be defined as the processes that explain a person’s intensity, direction, and persistence toward reaching a goal. Work motivation has often been viewed as the set of energetic forces that determine the form, direction, intensity, and duration of behavior (Latham & Pinder, 2005 ). Motivation can be further described as the persistence toward a goal. In fact many non-academics would probably describe it as the extent to which a person wants and tries to do well at a particular task (Mitchell, 1982 ).

Early theories of motivation began with Maslow’s ( 1943 ) hierarchy of needs theory, which holds that each person has five needs in hierarchical order: physiological, safety, social, esteem, and self-actualization. These constitute the “lower-order” needs, while social and esteem needs are “higher-order” needs. Self-esteem for instance underlies motivation from the time of childhood. Another early theory is McGregor’s ( 1960 ) X-Y theory of motivation: Theory X is the concept whereby individuals must be pushed to work; and theory Y is positive, embodying the assumption that employees naturally like work and responsibility and can exercise self-direction.

Herzberg subsequently proposed the “two-factor theory” that attitude toward work can determine whether an employee succeeds or fails. Herzberg ( 1966 ) relates intrinsic factors, like advancement in a job, recognition, praise, and responsibility to increased job satisfaction, while extrinsic factors like the organizational climate, relationship with supervisor, and salary relate to job dissatisfaction. In other words, the hygiene factors are associated with the work context while the motivators are associated with the intrinsic factors associated with job motivation.

Contemporary Theories of Motivation

Although traditional theories of motivation still appear in OB textbooks, there is unfortunately little empirical data to support their validity. More contemporary theories of motivation, with more acceptable research validity, include self-determination theory , which holds that people prefer to have control over their actions. If a task an individual enjoyed now feels like a chore, then this will undermine motivation. Higher self-determined motivation (or intrinsically determined motivation) is correlated with increased wellbeing, job satisfaction, commitment, and decreased burnout and turnover intent. In this regard, Fernet, Gagne, and Austin ( 2010 ) found that work motivation relates to reactions to interpersonal relationships at work and organizational burnout. Thus, by supporting work self-determination, managers can help facilitate adaptive employee organizational behaviors while decreasing turnover intention (Richer, Blanchard, & Vallerand, 2002 ).

Core self-evaluation (CSE) theory is a relatively new concept that relates to self-confidence in general, such that people with higher CSE tend to be more committed to goals (Bono & Colbert, 2005 ). These core self-evaluations also extend to interpersonal relationships, as well as employee creativity. Employees with higher CSE are more likely to trust coworkers, which may also contribute to increased motivation for goal attainment (Johnson, Kristof-Brown, van Vianen, de Pater, & Klein, 2003 ). In general, employees with positive CSE tend to be more intrinsically motivated, thus additionally playing a role in increasing employee creativity (Judge, Bono, Erez, & Locke, 2005 ). Finally, according to research by Amabile ( 1996 ), intrinsic motivation or self-determined goal attainment is critical in facilitating employee creativity.

Goal-Setting and Conservation of Resources

While self-determination theory and CSE focus on the reward system behind motivation and employee work behaviors, Locke and Latham’s ( 1990 ) goal-setting theory specifically addresses the impact that goal specificity, challenge, and feedback has on motivation and performance. These authors posit that our performance is increased when specific and difficult goals are set, rather than ambiguous and general goals. Goal-setting seems to be an important motivational tool, but it is important that the employee has had a chance to take part in the goal-setting process so they are more likely to attain their goals and perform highly.

Related to goal-setting is Hobfoll’s ( 1989 ) conservation of resources (COR) theory, which holds that people have a basic motivation to obtain, maintain, and protect what they value (i.e., their resources). Additionally there is a global application of goal-setting theory for each of the motivation theories. Not enough research has been conducted regarding the value of goal-setting in global contexts, however, and because of this, goal-setting is not recommended without consideration of cultural and work-related differences (Konopaske & Ivancevich, 2004 ).

Self-Efficacy and Motivation

Other motivational theories include self-efficacy theory, and reinforcement, equity, and expectancy theories. Self-efficacy or social cognitive or learning theory is an individual’s belief that s/he can perform a task (Bandura, 1977 ). This theory complements goal-setting theory in that self-efficacy is higher when a manager assigns a difficult task because employees attribute the manager’s behavior to him or her thinking that the employee is capable; the employee in turn feels more confident and capable.

Reinforcement theory (Skinner, 1938 ) counters goal-setting theory insofar as it is a behaviorist approach rather than cognitive and is based in the notion that reinforcement conditions behavior, or in other words focuses on external causes rather than the value an individual attributes to goals. Furthermore, this theory instead emphasizes the behavior itself rather than what precedes the behavior. Additionally, managers may use operant conditioning, a part of behaviorism, to reinforce people to act in a desired way.

Social-learning theory (Bandura, 1977 ) extends operant conditioning and also acknowledges the influence of observational learning and perception, and the fact that people can learn and retain information by paying attention, observing, and modeling the desired behavior.

Equity theory (Adams, 1963 ) looks at how employees compare themselves to others and how that affects their motivation and in turn their organizational behaviors. Employees who perceive inequity for instance, will either change how much effort they are putting in (their inputs), change or distort their perceptions (either of self or others in relation to work), change their outcomes, turnover, or choose a different referent (acknowledge performance in relation to another employee but find someone else they can be better than).

Last but not least, Vroom’s ( 1964 ) expectancy theory holds that individuals are motivated by the extent to which they can see that their effort is likely to result in valued outcomes. This theory has received strong support in empirical research (see Van Erde & Thierry, 1996 , for meta-analytic results). Like each of the preceding theories, expectancy theory has important implications that managers should consider. For instance, managers should communicate with employees to determine their preferences to know what rewards to offer subordinates to elicit motivation. Managers can also make sure to identify and communicate clearly the level of performance they desire from an employee, as well as to establish attainable goals with the employee and to be very clear and precise about how and when performance will be rewarded (Konopaske & Ivancevich, 2004 ).

The Meso (Group) Level of Analysis

The second level of OB research also emerges from social and organizational psychology and relates to groups or teams. Topics covered so far include individual differences: diversity, personality and emotions, values and attitudes, motivation, and decision-making. Thus, in this section, attention turns to how individuals come together to form groups and teams, and begins laying the foundation for understanding the dynamics of group and team behavior. Topics at this level also include communication, leadership, power and politics, and conflict.

A group consists of two or more individuals who come together to achieve a similar goal. Groups can be formal or informal. A formal group on the one hand is assigned by the organization’s management and is a component of the organization’s structure. An informal group on the other hand is not determined by the organization and often forms in response to a need for social contact. Teams are formal groups that come together to meet a specific group goal.

Although groups are thought to go through five stages of development (Tuckman, 1965 : forming, storming, norming, performing, and adjourning) and to transition to effectiveness at the halfway mark (Gersick, 1988 ), group effectiveness is in fact far more complex. For example, two types of conformity to group norms are possible: compliance (just going along with the group’s norms but not accepting them) and personal acceptance (when group members’ individual beliefs match group norms). Behavior in groups then falls into required behavior usually defined by the formal group and emergent behavior that grows out of interactions among group members (Champoux, 2011 ).

Group Decision-Making

Although many of the decisions made in organizations occur in groups and teams, such decisions are not necessarily optimal. Groups may have more complex knowledge and increased perspectives than individuals but may suffer from conformity pressures or domination by one or two members. Group decision-making has the potential to be affected by groupthink or group shift. In groupthink , group pressures to conform to the group norms deter the group from thinking of alternative courses of action (Janis & Mann, 1977 ). In the past, researchers attempted to explain the effects of group discussion on decision-making through the following approaches: group decision rules, interpersonal comparisons, and informational influence. Myers and Lamm ( 1976 ), however, present a conceptual schema comprised of interpersonal comparisons and informational influence approaches that focus on attitude development in a more social context. They found that their research is consistent with the group polarization hypothesis: The initial majority predicts the consensus outcome 90% of the time. The term group polarization was founded in Serge Moscovici and his colleagues’ literature (e.g., Moscovici & Zavalloni, 1969 ). Polarization refers to an increase in the extremity of the average response of the subject population.

In other words, the Myer and Lamm ( 1976 ) schema is based on the idea that four elements feed into one another: social motivation, cognitive foundation, attitude change, and action commitment. Social motivation (comparing self with others in order to be perceived favorably) feeds into cognitive foundation , which in turn feeds into attitude change and action commitment . Managers of organizations can help reduce the negative phenomena and increase the likelihood of functional groups by encouraging brainstorming or openly looking at alternatives in the process of decision-making such as the nominal group technique (which involves restricting interpersonal communication in order to encourage free thinking and proceeding to a decision in a formal and systematic fashion such as voting).

Elements of Team Performance

OB researchers typically focus on team performance and especially the factors that make teams most effective. Researchers (e.g., see De Dreu & Van Vianen, 2001 ) have organized the critical components of effective teams into three main categories: context, composition, and process. Context refers to the team’s physical and psychological environment, and in particular the factors that enable a climate of trust. Composition refers to the means whereby the abilities of each individual member can best be most effectively marshaled. Process is maximized when members have a common goal or are able to reflect and adjust the team plan (for reflexivity, see West, 1996 ).

Communication

In order to build high-performing work teams, communication is critical, especially if team conflict is to be minimized. Communication serves four main functions: control, motivation, emotional expression, and information (Scott & Mitchell, 1976 ). The communication process involves the transfer of meaning from a sender to a receiver through formal channels established by an organization and informal channels, created spontaneously and emerging out of individual choice. Communication can flow downward from managers to subordinates, upward from subordinates to managers, or between members of the same group. Meaning can be transferred from one person to another orally, through writing, or nonverbally through facial expressions and body movement. In fact, body movement and body language may complicate verbal communication and add ambiguity to the situation as does physical distance between team members.

High-performance teams tend to have some of the following characteristics: interpersonal trust, psychological and physical safety, openness to challenges and ideas, an ability to listen to other points of view, and an ability to share knowledge readily to reduce task ambiguity (Castka, Bamber, Sharp, & Belohoubek, 2001 ). Although the development of communication competence is essential for a work team to become high-performing, that communication competence is also influenced by gender, personality, ability, and emotional intelligence of the members. Ironically, it is the self-reliant team members who are often able to develop this communication competence. Although capable of working autonomously, self-reliant team members know when to ask for support from others and act interdependently.

Emotions also play a part in communicating a message or attitude to other team members. Emotional contagion, for instance, is a fascinating effect of emotions on nonverbal communication, and it is the subconscious process of sharing another person’s emotions by mimicking that team member’s nonverbal behavior (Hatfield, Cacioppo, & Rapson, 1993 ). Importantly, positive communication, expressions, and support of team members distinguished high-performing teams from low-performing ones (Bakker & Schaufeli, 2008 ).

Team Conflict

Because of member interdependence, teams are inclined to more conflict than individual workers. In particular, diversity in individual differences leads to conflict (Thomas, 1992 ; Wall & Callister, 1995 ; see also Cohen & Bailey, 1997 ). Jehn ( 1997 ) identifies three types of conflict: task, relationship, and process. Process conflict concerns how task accomplishment should proceed and who is responsible for what; task conflict focuses on the actual content and goals of the work (Robbins et al., 2014 ); and relationship conflict is based on differences in interpersonal relationships. While conflict, and especially task conflict, does have some positive benefits such as greater innovation (Tjosvold, 1997 ), it can also lead to lowered team performance and decreased job satisfaction, or even turnover. De Dreu and Van Vianen ( 2001 ) found that team conflict can result in one of three responses: (1) collaborating with others to find an acceptable solution; (2) contending and pushing one member’s perspective on others; or (3) avoiding and ignoring the problem.

Team Effectiveness and Relationship Conflict

Team effectiveness can suffer in particular from relationship conflict, which may threaten team members’ personal identities and self-esteem (Pelled, 1995 ). In this regard, Murnighan and Conlon ( 1991 ) studied members of British string quartets and found that the most successful teams avoided relationship conflict while collaborating to resolve task conflicts. This may be because relationship conflict distracts team members from the task, reducing team performance and functioning. As noted earlier, positive affect is associated with collaboration, cooperation, and problem resolution, while negative affect tends to be associated with competitive behaviors, especially during conflict (Rhoades, Arnold, & Jay, 2001 ).

Team Climate and Emotionality

Emotional climate is now recognized as important to team processes (Ashkanasy & Härtel, 2014 ), and team climate in general has important implications for how individuals behave individually and collectively to effect organizational outcomes. This idea is consistent with Druskat and Wolff’s ( 2001 ) notion that team emotional-intelligence climate can help a team manage both types of conflict (task and relationship). In Jehn’s ( 1997 ) study, she found that emotion was most often negative during team conflict, and this had a negative effect on performance and satisfaction regardless of the type of conflict team members were experiencing. High emotionality, as Jehn calls it, causes team members to lose sight of the work task and focus instead on the negative affect. Jehn noted, however, that absence of group conflict might also may block innovative ideas and stifle creativity (Jehn, 1997 ).

Power and Politics

Power and organizational politics can trigger employee conflict, thus affecting employee wellbeing, job satisfaction, and performance, in turn affecting team and organizational productivity (Vigoda, 2000 ). Because power is a function of dependency, it can often lead to unethical behavior and thus become a source of conflict. Types of power include formal and personal power. Formal power embodies coercive, reward, and legitimate power. Coercive power depends on fear. Reward power is the opposite and occurs when an individual complies because s/he receives positive benefits from acting in accordance with the person in power. In formal groups and organizations, the most easily accessed form of power is legitimate because this form comes to be from one’s position in the organizational hierarchy (Raven, 1993 ). Power tactics represent the means by which those in a position of power translate their power base (formal or personal) into specific actions.

The nine influence tactics that managers use according to Yukl and Tracey ( 1992 ) are (1) rational persuasion, (2) inspirational appeal, (3) consultation, (4) ingratiation, (5) exchange, (6) personal appeal, (7) coalition, (8) legitimating, and (9) pressure. Of these tactics, inspirational appeal, consultation, and rational persuasion were among the strategies most effective in influencing task commitment. In this study, there was also a correlation found between a manager’s rational persuasion and a subordinate rating her effectively. Perhaps this is because persuasion requires some level of expertise, although more research is needed to verify which methods are most successful. Moreover, resource dependence theory dominates much theorizing about power and organizational politics. In fact, it is one of the central themes of Pfeffer and Salancik’s ( 1973 ) treatise on the external control of organizations. First, the theory emphasizes the importance of the organizational environment in understanding the context of how decisions of power are made (see also Pfeffer & Leblebici, 1973 ). Resource dependence theory is based on the premise that some organizations have more power than others, occasioned by specifics regarding their interdependence. Pfeffer and Salancik further propose that external interdependence and internal organizational processes are related and that this relationship is mediated by power.

Organizational Politics

Political skill is the ability to use power tactics to influence others to enhance an individual’s personal objectives. In addition, a politically skilled person is able to influence another person without being detected (one reason why he or she is effective). Persons exerting political skill leave a sense of trust and sincerity with the people they interact with. An individual possessing a high level of political skill must understand the organizational culture they are exerting influence within in order to make an impression on his or her target. While some researchers suggest political behavior is a critical way to understand behavior that occurs in organizations, others simply see it as a necessary evil of work life (Champoux, 2011 ). Political behavior focuses on using power to reach a result and can be viewed as unofficial and unsanctioned behavior (Mintzberg, 1985 ). Unlike other organizational processes, political behavior involves both power and influence (Mayes & Allen, 1977 ). Moreover, because political behavior involves the use of power to influence others, it can often result in conflict.

Organizational Politics, Power, and Ethics

In concluding this section on power and politics, it is also appropriate to address the dark side, where organizational members who are persuasive and powerful enough might become prone to abuse standards of equity and justice and thereby engage in unethical behavior. An employee who takes advantage of her position of power may use deception, lying, or intimidation to advance her own interests (Champoux, 2011 ). When exploring interpersonal injustice, it is important to consider the intent of the perpetrator, as well as the effect of the perpetrator’s treatment from the victim’s point of view. Umphress, Simmons, Folger, Ren, and Bobocel ( 2013 ) found in this regard that not only does injustice perceived by the self or coworkers influence attitudes and behavior within organizations, but injustice also influences observer reactions both inside and outside of the organization.

Leadership plays an integrative part in understanding group behavior, because the leader is engaged in directing individuals toward attitudes and behaviors, hopefully also in the direction of those group members’ goals. Although there is no set of universal leadership traits, extraversion from the Big Five personality framework has been shown in meta-analytic studies to be positively correlated with transformational, while neuroticism appears to be negatively correlated (Bono & Judge, 2004 ). There are also various perspectives to leadership, including the competency perspective, which addresses the personality traits of leaders; the behavioral perspective, which addresses leader behaviors, specifically task versus people-oriented leadership; and the contingency perspective, which is based on the idea that leadership involves an interaction of personal traits and situational factors. Fiedler’s ( 1967 ) contingency, for example, suggests that leader effectiveness depends on the person’s natural fit to the situation and the leader’s score on a “least preferred coworker” scale.

More recently identified styles of leadership include transformational leadership (Bass, Avolio, & Atwater, 1996 ), charismatic leadership (Conger & Kanungo, 1988 ), and authentic leadership (Luthans & Avolio, 2003 ). In a nutshell, transformational leaders inspire followers to act based on the good of the organization; charismatic leaders project a vision and convey a new set of values; and authentic leaders convey trust and genuine sentiment.

Leader-member exchange theory (LMX; see Graen & Uhl-Bien, 1995 ) assumes that leadership emerges from exchange relationships between a leader and her or his followers. More recently, Tse, Troth, and Ashkanasy ( 2015 ) expanded on LMX to include social processes (e.g., emotional intelligence, emotional labor, and discrete emotions), arguing that affect plays a large part in the leader-member relationship.

Leadership Development

An emerging new topic in leadership concerns leadership development, which embodies the readiness of leadership aspirants to change (Hannah & Avolio, 2010 ). In this regard, the learning literature suggests that intrinsic motivation is necessary in order to engage in development (see Hidi & Harackiewicz, 2000 ), but also that the individual needs to be goal-oriented and have developmental efficacy or self-confidence that s/he can successfully perform in leadership contexts.

Ashkanasy, Dasborough, and Ascough ( 2009 ) argue further that developing the affective side of leaders is important. In this case, because emotions are so pervasive within organizations, it is important that leaders learn how to manage them in order to improve team performance and interactions with employees that affect attitudes and behavior at almost every organizational level.

Abusive Leadership

Leaders, or those in positions of power, are particularly more likely to run into ethical issues, and only more recently have organizational behavior researchers considered the ethical implications of leadership. As Gallagher, Mazur, and Ashkanasy ( 2015 ) describe, since 2009 , organizations have been under increasing pressure to cut costs or “do more with less,” and this sometimes can lead to abusive supervision, whereby employee job demands exceed employee resources, and supervisors engage in bullying, undermining, victimization, or personal attacks on subordinates (Tepper, 2000 ).

Supervisors who are very high or low in emotional intelligence may be more likely to experience stress associated with a very demanding high-performance organizational culture. These supervisors may be more likely to try to meet the high demands and pressures through manipulative behaviors (Kilduff, Chiaburu, & Menges, 2010 ). This has serious implications for employee wellbeing and the organization as a whole. Abusive supervision detracts from the ability for those under attack to perform effectively, and targets often come to doubt their own ability to perform (Tepper, 2000 ).

The Macro (Organizational) Level of Analysis

The final level of OB derives from research traditions across three disciplines: organizational psychology, organizational sociology, and organizational anthropology. Moreover, just as teams and groups are more than the sum of their individual team members, organizations are also more than the sum of the teams or groups residing within them. As such, structure, climate, and culture play key roles in shaping and being shaped by employee attitudes and behaviors, and they ultimately determine organizational performance and productivity.

Organizational Structure

Organizational structure is a sociological phenomenon that determines the way tasks are formally divided and coordinated within an organization. In this regard, jobs are often grouped by the similarity of functions performed, the product or service produced, or the geographical location. Often, the number of forms of departmentalization will depend on the size of the organization, with larger organizations having more forms of departmentalization than others. Organizations are also organized by the chain of command or the hierarchy of authority that determines the span of control, or how many employees a manager can efficiently and effectively lead. With efforts to reduce costs since the global financial crisis of 2009 , organizations have tended to adopt a wider, flatter span of control, where more employees report to one supervisor.

Organizational structure also concerns the level of centralization or decentralization, the degree to which decision-making is focused at a single point within an organization. Formalization is also the degree to which jobs are organized in an organization. These levels are determined by the organization and also vary greatly across the world. For example, Finnish organizations tend to be more decentralized than their Australian counterparts and, as a consequence, are more innovative (Leiponen & Helfat, 2011 ).

Mintzberg ( 1979 ) was the first to set out a taxonomy of organizational structure. Within his model, the most common organizational design is the simple structure characterized by a low level of departmentalization, a wide span of control, and centralized authority. Other organizational types emerge in larger organizations, which tend to be bureaucratic and more routinized. Rules are formalized, tasks are grouped into departments, authority is centralized, and the chain of command involves narrow spans of control and decision-making. An alternative is the matrix structure, often found in hospitals, universities, and government agencies. This form of organization combines functional and product departmentalization where employees answer to two bosses: functional department managers and product managers.

New design options include the virtual organization and the boundaryless organization , an organization that has no chain of command and limitless spans of control. Structures differ based on whether the organization seeks to use an innovation strategy, imitation strategy, or cost-minimization strategy (Galunic & Eisenhardt, 1994 ). Organizational structure can have a significant effect on employee attitudes and behavior. Evidence generally shows that work specialization leads to higher employee productivity but also lower job satisfaction (Porter & Lawler, 1965 ). Gagné and Deci emphasize that autonomous work motivation (i.e., intrinsic motivation and integrated extrinsic motivation) is promoted in work climates that are interesting, challenging, and allow choice. Parker, Wall, and Jackson ( 1997 ) specifically relate job enlargement to autonomous motivation. Job enlargement was first discussed by management theorists like Lawler and Hall ( 1970 ), who believed that jobs should be enlarged to improve the intrinsic motivation of workers. Today, most of the job-design literature is built around the issue of work specialization (job enlargement and enrichment). In Parker, Wall, and Jackson’s study, they observed that horizontally enlarging jobs through team-based assembly cells led to greater understanding and acceptance of the company’s vision and more engagement in new work roles. (In sum, by structuring work to allow more autonomy among employees and identification among individual work groups, employees stand to gain more internal autonomous motivation leading to improved work outcomes (van Knippenberg & van Schie, 2000 ).

The Physical Environment of Work

Ashkanasy, Ayoko, and Jehn ( 2014 ) extend the topic of organizational structure to discuss, from a psychological perspective, how the physical work environment shapes employee attitudes, behaviors, and organizational outcomes. Elsbach ( 2003 ) pointed out that the space within which employees conduct their work is critical to employees’ levels of performance and productivity. In their study, Ashkanasy and his colleagues looked at the underlying processes influencing how the physical environment determines employee attitudes and behaviors, in turn affecting productivity levels. They base their model on affective events theory (Weiss & Cropanzano, 1996 ), which holds that particular “affective” events in the work environment are likely to be the immediate cause of employee behavior and performance in organizations (see also Ashkanasy & Humphrey, 2011 ). Specifically, Ashkanasy and colleagues ( 2014 ) looked at how this theory holds in extremely crowded open-plan office designs and how employees in these offices are more likely to experience negative affect, conflict, and territoriality, negatively impacting attitudes, behaviors, and work performance.

• Organizational Climate and Culture

Although organizational structure and the physical environment are important determinants of employee attitudes and behaviors, organizational culture and climate lie at the heart of organizational interactions (Ashkanasy & Jackson, 2001 ). Organizational culture derives from an anthropological research tradition, while organizational climate is based on organizational psychology.

A central presumption of culture is that, as Smircich ( 1983 ) noted, organizational behavior is not a function of what goes on inside individual employees’ heads, but between employees, as evidenced in daily organizational communication and language. As such, organizational culture allows one organization to distinguish itself from another, while conveying a sense of identity for its members.

Organizational Climate and its Relation to Organizational Culture

Organizational culture creates organizational climate or employees’ shared perceptions about their organization and work environment. Organizational climate has been found to facilitate and/or inhibit displays of certain behaviors in one study (Smith-Crowe, Burke, & Landis, 2003 ), and overall, organizational climate is often viewed as a surface-level indicator of the functioning of the employee/organizational environment relationship (Ryan, Horvath, Ployhart, Schmitt, & Slade, 2000 ). For instance, a more restrictive climate may inhibit individual decision-making in contrast to a more supportive climate in which the organization may intervene at the individual level and in which the ability/job performance relationship is supported (James, Demaree, Mulaik, & Ladd, 1992 ). In a study focused on safety climate, Smith-Crowe and colleagues found that organizational climate is essential in determining whether training will transfer to employee performance, and this is most likely because organizational climate moderates the knowledge/performance relationship. Gibbs and Cooper ( 2010 ) also found that a supportive organizational climate is positively related to employee performance. They specifically looked at PsyCap, the higher-order construct of psychological capital first proposed by Luthans and Youssef ( 2004 ).

Organizational Change

The final topic covered in this article is organizational change. Organizational culture and climate can both be negatively impacted by organizational change and, in turn, negatively affect employee wellbeing, attitudes, and performance, reflecting onto organizational performance. Often, there is great resistance to change, and the success rate of organizational change initiatives averages at less than 30% (Al-Haddad & Kotnour, 2015 ). In order to overcome this resistance, it is important that managers plan ahead for changes and emphasize education and communication about them. As organizations becoming increasingly globalized, change has become the norm, and this will continue into the future.

Additionally, as organizations become increasingly globalized, organizational changes often involve mergers that have important organizational implications. In this regard, Kavanagh and Ashkanasy ( 2006 ) found that, for a merger to be successful, there needs to be alignment between the individual values and organizational cultures of merging partners. Managers during a merger situation need to be especially cognizant of how this organizational change affects the company’s original organizational culture.

Organizational development (OD), a collection of planned change interventions, may be the way to improve organizational performance and increase employee wellbeing. OD focuses on employees respecting one another, trust and support, equal power, confrontation of problems, and participation of everyone affected by the organizational change (Lines, 2004 ). Moreover, when an organization already has an established climate and culture that support change and innovation, an organization may have less trouble adapting to the change.

Organizational change research encompasses almost all aspects of organizational behavior. Individuals and employees are motivated to achieve success and be perceived as successful. In this regard, each of the individual differences—personality, affect, past experiences, values, and perceptions—plays into whether individuals can transcend obstacles and deal with the barriers encountered along the journey toward achievement. Teams are similarly motivated to be successful in a collective sense and to prove that they contribute to the organization as a whole. In addition to individual differences, team members deal with bringing all those individual differences together, which can wreak havoc on team communication and cause further obstacles in terms of power differences and conflicts in regard to decision-making processes. Last, at the organizational level of organizational behavior, it is important to account for all of these micro- and meso-level differences, and to address the complexity of economic pressures, increasing globalization, and global and transnational organizations to the mix. This is at the top level of sophistication because, as emphasized before, just as groups equal much more than the sum of individual members, organizations are much more than the sum of their teams. The organizational structure, the formal organization, the organizational culture, and climate and organizational rules all impact whether an organization can perform effectively. Organizational behavior, through its complex study of human behavior at its very conception, offers much-needed practical implications for managers in understanding people at work.

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7.1 Motivation: Direction and Intensity

• Define motivation and distinguish direction and intensity of motivation.

Ability refers to the knowledge, skills, and receptiveness to learning that a person brings to a task or job. Knowledge is what a person knows. Skill is their capacity to perform some particular activity (like welding or accounting), including knowing what is expected of them (called accurate role perceptions). Receptiveness to learning is a function of how quickly a person acquires new knowledge. Some people have more ability than others, and high-ability people generally perform better than low-ability people (although we will see that this is not always the case). 1

Accurate role perceptions refer to how well an individual understands their organizational role. This includes the goals (outcomes) the person is expected to achieve and the process by which the goals will be achieved. An employee who has accurate role perceptions knows both their expected outcomes and how to go about making those outcomes a reality. Incomplete or inaccurate role perceptions limit employees’ capacity to meet expectations, regardless of their abilities and motivation.

The performance environment refers to those factors that impact employees’ performance but are essentially out of their control. Many environmental factors influence performance. Some factors facilitate performance, while others constrain it. A word processor who has to work with a defective personal computer is certainly not going to perform at peak levels, regardless of ability or desire. Students who are working full time and carrying a full load of classes may not do as well on an exam as they would if they could cut back on their work hours, despite the fact that they have high ability and high motivation.

Motivation is the fourth major factor that determines whether a person will perform a task well. Motivation is a force within or outside of the body that energizes, directs, and sustains human behavior. Within the body, examples might be needs, personal values, and goals, while an incentive might be seen as a force outside of the body. The word stems from its Latin root movere , which means “to move.” Generally speaking, motivation arises as a consequence of a person’s desire to (1) fulfill unmet needs or (2) resolve conflicting thoughts that produce anxiety (an unpleasant experience). There are many ways in which we describe and categorize human needs, as we will see later in this chapter. Certain needs are fundamental to our existence, like the need for food and water. When we are hungry, we are energized to satisfy that need by securing and ingesting food. Our other needs operate in a similar manner. When a need is unfulfilled, we are motivated to engage in behaviors that will satisfy it. The same is true for situations in which we experience conflicting thoughts. When we find ourselves in situations inconsistent with our beliefs, values, or expectations, we endeavor to eliminate the inconsistency. We either change the situation, or we change our perception of it. In both cases, motivation arises out of our interaction with and perception of a particular situation. We perceive the situation as satisfying our needs, or not. Motivation is thus a result of our interacting with situations to satisfy unmet needs or to resolve cognitive dissonance.

Simply stated, work motivation is the amount of effort a person exerts to achieve a certain level of job performance. Some people try very hard to perform their jobs well. They work long hours, even if it interferes with their family life. Highly motivated people go the “extra mile.” High scorers on an exam make sure they know the examination material to the best of their ability, no matter how much midnight oil they have to burn. Other students who don’t do as well may just want to get by—football games and parties are a lot more fun, after all.

Motivation is of great interest to employers: All employers want their people to perform to the best of their abilities. They take great pains to screen applicants to make sure they have the necessary abilities and motivation to perform well. They endeavor to supply all the necessary resources and a good work environment. Yet motivation remains a difficult factor to manage. As a result, it receives the most attention from organizations and researchers alike, who ask the perennial question “What motivates people to perform well?”

In this chapter we look at current answers to this question. What work conditions foster motivation? How can theories of motivation help us understand the general principles that guide organizational behavior? Rather than analyze why a particular student studies hard for a test, we’ll look at the underlying principles of our general behavior in a variety of situations (including test taking). We also discuss the major theories of motivation, along with their implications for management and organizational behavior. By the end of this chapter you should have a better understanding of why some people are more motivated than others. Successful employees know what they want to achieve (direction), and they persist until they achieve their goals (intensity).

Our discussion thus far implies that motivation is a matter of effort. This is only partially true. Motivation has two major components: direction and intensity. Direction is what a person wants to achieve, what they intend to do. It implies a target that motivated people try to “hit.” That target may be to do well on a test. Or it may be to perform better than anyone else in a work group. Intensity is how hard people try to achieve their targets. Intensity is what we think of as effort. It represents the energy we expend to accomplish something. If our efforts are getting nowhere, will we try different strategies to succeed? (High-intensity-motivated people are persistent!)

It is important to distinguish the direction and intensity aspects of motivation. If either is lacking, performance will suffer. A person who knows what they want to accomplish (direction) but doesn’t exert much effort (intensity) will not succeed. (Scoring 100 percent on an exam—your target—won’t happen unless you study!) Conversely, people who don’t have a direction (what they want to accomplish) probably won’t succeed either. (At some point you have to decide on a major if you want to graduate, even if you do have straight As.)

Employees’ targets don’t always match with what their employers want. Absenteeism (some employees call this “calling in well”) is a major example. 2 Pursuing your favorite hobby (your target) on a workday (your employer’s target) is a conflict in direction; below, we’ll examine some theories about why this conflict occurs.

There is another reason why employees’ targets are sometimes contrary to their employers’—sometimes employers do not ensure that employees understand what the employer wants. Employees can have great intensity but poor direction. It is management’s job to provide direction: Should we stress quality as well as quantity? Work independently or as a team? Meet deadlines at the expense of costs? Employees flounder without direction. Clarifying direction results in accurate role perceptions, the behaviors employees think they are expected to perform as members of an organization. Employees with accurate role perceptions understand their purpose in the organization and how the performance of their job duties contributes to organizational objectives. Some motivation theorists assume that employees know the correct direction for their jobs. Others do not. These differences are highlighted in the discussion of motivation theories below.

At this point, as we begin our discussion of the various motivation theories, it is reasonable to ask “Why isn’t there just one motivation theory?” The answer is that the different theories are driven by different philosophies of motivation. Some theorists assume that humans are propelled more by needs and instincts than by reasoned actions. Their content motivation theories focus on the content of what motivates people. Other theorists focus on the process by which people are motivated. Process motivation theories address how people become motivated—that is, how people perceive and think about a situation. Content and process theories endeavor to predict motivation in a variety of situations. However, none of these theories can predict what will motivate an individual in a given situation 100 percent of the time. Given the complexity of human behavior, a “grand theory” of motivation will probably never be developed.

A second reasonable question at this point is “Which theory is best?” If that question could be easily answered, this chapter would be quite short. The simple answer is that there is no “one best theory.” All have been supported by organizational behavior research. All have strengths and weaknesses. However, understanding something about each theory is a major step toward effective management practices.

Concept Check

• Explain the two drivers of motivation: direction and intensity.
• What are the differences between content and process theories of motivation?
• Will there ever be a grand theory of motivation?

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1.2 Understanding Organizational Behavior

Learning objectives.

• Learn about the layout of this book.
• Understand what organizational behavior is.
• Understand why organizational behavior matters.
• Learn about OB Toolboxes in this book.

About This Book

The people make the place.

Benjamin Schneider, Fellow of the Academy of Management

This book is all about people, especially people at work. As evidenced in the opening case, we will share many examples of people making their workplaces work. People can make work an exciting, fun, and productive place to be, or they can make it a routine, boring, and ineffective place where everyone dreads to go. Steve Jobs, cofounder, chairman, and CEO of Apple Inc. attributes the innovations at Apple, which include the iPod, MacBook, and iPhone, to people, noting, “Innovation has nothing to do with how many R&D dollars you have.…It’s not about money. It’s about the people you have, how you’re led, and how much you get it” (Kirkpatrick, 1998). This became a sore point with investors in early 2009 when Jobs took a medical leave of absence. Many wonder if Apple will be as successful without him at the helm, and Apple stock plunged upon worries about his health (Parloff, 2008).

Steve Jobs is known for developing innovative products by hiring the right people for the job and fostering a culture of hard work and creativity.

Wikimedia Commons – CC BY 3.0.

Mary Kay Ash, founder of Mary Kay Inc., a billion-dollar cosmetics company, makes a similar point, saying, “People are definitely a company’s greatest asset. It doesn’t make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps” [1]

Just like people, organizations come in many shapes and sizes. We understand that the career path you will take may include a variety of different organizations. In addition, we know that each student reading this book has a unique set of personal and work-related experiences, capabilities, and career goals. On average, a person working in the United States will change jobs 10 times in 20 years (U.S. Bureau of Labor Statistics, 2005). In order to succeed in this type of career situation, individuals need to be armed with the tools necessary to be lifelong learners. So, this book will not be about giving you all the answers to every situation you may encounter when you start your first job or as you continue up the career ladder. Instead, this book will give you the vocabulary, framework, and critical thinking skills necessary for you to diagnose situations, ask tough questions, evaluate the answers you receive, and act in an effective and ethical manner regardless of situational characteristics.

Throughout this book, when we refer to organizations, we will include examples that may apply to diverse organizations such as publicly held, for-profit organizations like Google and American Airlines, privately owned businesses such as S. C. Johnson & Son Inc. (makers of Windex glass cleaner) and Mars Inc. (makers of Snickers and M&Ms), and not-for-profit organizations such as the Sierra Club or Mercy Corps, and nongovernmental organizations (NGOs) such as Doctors Without Borders and the International Red Cross. We will also refer to both small and large corporations. You will see examples from Fortune 500 organizations such as Intel Corporation or Home Depot Inc., as well as small start-up organizations. Keep in mind that some of the small organizations of today may become large organizations in the future. For example, in 1998, eBay Inc. had only 29 employees and $47.4 million in income, but by 2008 they had grown to 11,000 employees and over $7 billion in revenue (Gibson, 2008). Regardless of the size or type of organization you may work for, people are the common denominator of how work is accomplished within organizations.

Together, we will examine people at work both as individuals and within work groups and how they impact and are impacted by the organizations where they work. Before we can understand these three levels of organizational behavior, we need to agree on a definition of organizational behavior.

What Is Organizational Behavior?

Organizational behavior (OB) is defined as the systematic study and application of knowledge about how individuals and groups act within the organizations where they work. As you will see throughout this book, definitions are important. They are important because they tell us what something is as well as what it is not. For example, we will not be addressing childhood development in this course—that concept is often covered in psychology—but we might draw on research about twins raised apart to understand whether job attitudes are affected by genetics.

OB draws from other disciplines to create a unique field. As you read this book, you will most likely recognize OB’s roots in other disciplines. For example, when we review topics such as personality and motivation, we will again review studies from the field of psychology. The topic of team processes relies heavily on the field of sociology. In the chapter relating to decision making, you will come across the influence of economics. When we study power and influence in organizations, we borrow heavily from political sciences. Even medical science contributes to the field of organizational behavior, particularly to the study of stress and its effects on individuals.

OB spans topics related from the individual to the organization.

Those who study organizational behavior—which now includes you—are interested in several outcomes such as work attitudes (e.g., job satisfaction and organizational commitment) as well as job performance (e.g., customer service and counterproductive work behaviors). A distinction is made in OB regarding which level of the organization is being studied at any given time. There are three key levels of analysis in OB. They are examining the individual, the group, and the organization. For example, if I want to understand my boss’s personality, I would be examining the individual level of analysis. If we want to know about how my manager’s personality affects my team, I am examining things at the team level. But, if I want to understand how my organization’s culture affects my boss’s behavior, I would be interested in the organizational level of analysis.

Why Organizational Behavior Matters

OB matters at three critical levels. It matters because it is all about things you care about. OB can help you become a more engaged organizational member. Getting along with others, getting a great job, lowering your stress level, making more effective decisions, and working effectively within a team…these are all great things, and OB addresses them!

It matters because employers care about OB. A recent survey by the National Association of Colleges and Employers (NACE) asked employers which skills are the most important for them when evaluating job candidates, and OB topics topped the list (NACE 2007 Job Outlook Survey, 2008).

The following were the top five personal qualities/skills:

• Communication skills (verbal and written)
• Honesty/integrity
• Interpersonal skills (relates well to others)
• Motivation/initiative
• Strong work ethic

These are all things we will cover in OB.

Finally, it matters because organizations care about OB. The best companies in the world understand that the people make the place. How do we know this? Well, we know that organizations that value their employees are more profitable than those that do not (Huselid, 1995; Pfeffer, 1998; Pfeffer & Veiga, 1999; Welbourne & Andrews, 1996). Research shows that successful organizations have a number of things in common, such as providing employment security, engaging in selective hiring, utilizing self-managed teams, being decentralized, paying well, training employees, reducing status differences, and sharing information (Pfeffer & Veiga, 1999). For example, every Whole Foods store has an open compensation policy in which salaries (including bonuses) are listed for all employees. There is also a salary cap that limits the maximum cash compensation paid to anyone in the organization, such as a CEO, in a given year to 19 times the companywide annual average salary of all full-time employees. What this means is that if the average employee makes $30,000 per year, the highest potential pay for their CEO would be $570,000, which is a lot of money but pales in comparison to salaries such as Steve Jobs of Apple at $14.6 million or the highest paid CEO in 2007, Larry Ellison of Oracle, at $192.9 million (Elmer-DeWitt, 2008). Research shows that organizations that are considered healthier and more effective have strong OB characteristics throughout them such as role clarity, information sharing, and performance feedback. Unfortunately, research shows that most organizations are unhealthy, with 50% of respondents saying that their organizations do not engage in effective OB practices (Aguirre et al., 2005).

In the rest of this chapter, we will build on how you can use this book by adding tools to your OB Toolbox in each section of the book as well as assessing your own learning style. In addition, it is important to understand the research methods used to define OB, so we will also review those. Finally, you will see what challenges and opportunities businesses are facing and how OB can help overcome these challenges.

Adding to Your OB Toolbox

Your ob toolbox.

OB Toolboxes appear throughout this book. They indicate a tool that you can try out today to help you develop your OB skills.

Throughout the book, you will see many OB Toolbox features. Our goal in writing this book is to create something useful for you to use now and as you progress through your career. Sometimes we will focus on tools you can use today. Other times we will focus on things you may want to think about that may help you later. As you progress, you may discover some OB tools that are particularly relevant to you while others are not as appropriate at the moment. That’s great—keep those that have value to you. You can always go back and pick up tools later on if they don’t seem applicable right now.

The important thing to keep in mind is that the more tools and skills you have, the higher the quality of your interactions with others will be and the more valuable you will become to organizations that compete for top talent (Michaels, Handfield-Jones, & Axelrod, 2001). It is not surprising that, on average, the greater the level of education you have, the more money you will make. In 2006, those who had a college degree made 62% more money than those who had a high school degree (U.S. Bureau of Labor Statistics). Organizations value and pay for skills as the next figure shows.

Education and training have financial payoffs as illustrated by these unemployment and earnings for workers 25 and older.

Source: U.S. Bureau of Labor Statistics, http://www.bls.gov .

Tom Peters is a management expert who talks about the concept of individuals thinking of themselves as a brand to be managed. Further, he recommends that individuals manage themselves like free agents (Peters, 1997; Peters, 2004). The following OB Toolbox includes several ideas for being effective in keeping up your skill set.

Your OB Toolbox: Skill Survival Kit

• Keep your skills fresh . Consider revolutionizing your portfolio of skills at least every 6 years.
• Master something . Competence in many skills is important, but excelling at something will set you apart.
• Embrace ambiguity . Many people fear the unknown. They like things to be predictable. Unfortunately, the only certainty in life is that things will change. Instead of running from this truth, embrace the situation as a great opportunity.
• Network . The term has been overused to the point of sounding like a cliché, but networking works. This doesn’t mean that having 200 connections on MySpace, LinkedIn, or Facebook makes you more effective than someone who has 50, but it does mean that getting to know people is a good thing in ways you can’t even imagine now.
• Appreciate new technology . This doesn’t mean you should get and use every new gadget that comes out on the market, but it does mean you need to keep up on what the new technologies are and how they may affect you and the business you are in.

Source: Adapted from ideas in Peters, T. (2007). Brand you survival kit. Fast Company . Retrieved July 1, 2008, from http://www.fastcompany.com/magazine/83/playbook.html .

A key step in building your OB skills and filling your toolbox is to learn the language of OB. Once you understand a concept, you are better able to recognize it. Once you recognize these concepts in real-world events and understand that you have choices in how you will react, you can better manage yourself and others. An effective tool you can start today is journaling , which helps you chart your progress as you learn new skills. For more on this, see the OB Toolbox below.

OB Toolbox: Journaling as a Developmental Tool

• What exactly is journaling ? Journaling refers to the process of writing out thoughts and emotions on a regular basis.
• Why is journaling a good idea ? Journaling is an effective way to record how you are feeling from day to day. It can be a more objective way to view trends in your thoughts and emotions so you are not simply relying on your memory of past events, which can be inaccurate. Simply getting your thoughts and ideas down has been shown to have health benefits as well such as lowering the writer’s blood pressure, heart rate, and decreasing stress levels.
• How do I get started ? The first step is to get a journal or create a computer file where you can add new entries on a regular basis. Set a goal for how many minutes per day you want to write and stick to it. Experts say at least 10 minutes a day is needed to see benefits, with 20 minutes being ideal. The quality of what you write is also important. Write your thoughts down clearly and specifically while also conveying your emotions in your writing. After you have been writing for at least a week, go back and examine what you have written. Do you see patterns in your interactions with others? Do you see things you like and things you’d like to change about yourself? If so, great! These are the things you can work on and reflect on. Over time, you will also be able to track changes in yourself, which can be motivating as well.

Sources: Created based on ideas and information in Bromley, K. (1993). Journaling: Engagements in reading, writing, and thinking . New York: Scholastic; Caruso, D., & Salovey, P. (2004). The emotionally intelligent manager: How to develop and use the four key emotional skills of leadership . San Francisco: Jossey-Bass; Scott, E. (2008). The benefits of journaling for stress management. Retrieved January 27, 2008, from About.com: http://stress.about.com/od/generaltechniques/p/profilejournal.htm .

Isn’t OB Just Common Sense?

As teachers we have heard this question many times. The answer, as you might have guessed, is no—OB is not just common sense . As we noted earlier, OB is the systematic study and application of knowledge about how individuals and groups act within the organizations where they work. Systematic is an important word in this definition. It is easy to think we understand something if it makes sense, but research on decision making shows that this can easily lead to faulty conclusions because our memories fail us. We tend to notice certain things and ignore others, and the specific manner in which information is framed can affect the choices we make. Therefore, it is important to rule out alternative explanations one by one rather than to assume we know about human behavior just because we are humans! Go ahead and take the following quiz and see how many of the 10 questions you get right. If you miss a few, you will see that OB isn’t just common sense. If you get them all right, you are way ahead of the game!

Putting Common Sense to the Test

Please answer the following 10 questions by noting whether you believe the sentence is true or false .

• Brainstorming in a group is more effective than brainstorming alone. _____
• The first 5 minutes of a negotiation are just a warm-up to the actual negotiation and don’t matter much. _____
• The best way to help someone reach their goals is to tell them to do their best. _____
• If you pay someone to do a task they routinely enjoy, they’ll do it even more often in the future. _____
• Pay is a major determinant of how hard someone will work. _____
• If a person fails the first time, they try harder the next time. _____
• People perform better if goals are easier. _____
• Most people within organizations make effective decisions. _____
• Positive people are more likely to withdraw from their jobs when they are dissatisfied. _____
• Teams with one smart person outperform teams in which everyone is average in intelligence. ______

You may check your answers with your instructor.

Key Takeaway

This book is about people at work. Organizations come in many shapes and sizes. Organizational behavior is the systematic study and application of knowledge about how individuals and groups act within the organizations where they work. OB matters for your career, and successful companies tend to employ effective OB practices. The OB Toolboxes throughout this book are useful in increasing your OB skills now and in the future.

• Which type of organizations did you have the most experience with? How did that affect your understanding of the issues in this chapter?
• Which skills do you think are the most important ones for being an effective employee?
• What are the three key levels of analysis for OB?
• Have you ever used journaling before? If so, were your experiences positive? Do you think you will use journaling as a tool in the future?
• How do you plan on using the OB Toolboxes in this book? Creating a plan now can help to make you more effective throughout the term.

Aguirre, D. M., Howell, L. W., Kletter, D. B., & Neilson, G. L. (2005). A global check-up: Diagnosing the health of today’s organizations (online report). Retrieved July 25, 2008, from the Booz & Company Web site: http://www.orgdna.com/downloads/GlobalCheckUp-OrgHealthNov2005.pdf .

Elmer-DeWitt, P. (2008, May 2). Top-paid CEOs: Steve Jobs drops from no. 1 to no. 120. Fortune . Retrieved July 26, 2008, from CNNMoney.com: http://apple20.blogs.fortune.cnn.com/2008/05/02/top-paid-ceos- steve-jobs-drops-from-no-1-to-no-120/ .

Gibson, E. (2008, March). Meg Whitman’s 10th anniversary as CEO of eBay. Fast Company , 25.

Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of Management Journal , 38 , 635-672.

Kirkpatrick, D. (1998). The second coming of Apple. Fortune , 138 , 90.

Michaels, E., Handfield-Jones, H., & Axelrod, B. (2001). The war for talent . Boston: Harvard Business School Publishing.

NACE 2007 Job Outlook Survey. Retrieved July 26, 2008, from the National Association of Colleges and Employers (NACE) Web site: http://www.naceweb.org/press/quick.htm#qualities .

Parloff, R. (2008, January 22). Why the SEC is probing Steve Jobs. Money . Retrieved January 28, 2009, from http://money.cnn.com/2009/01/22/technology/stevejobs_disclosure.fortune/?postversion=2009012216 .

Peters, T. (1997). The brand called you. Fast Company . Retrieved July 1, 2008, from http://www.fastcompany.com/magazine/10/brandyou.html .

Peters, T. (2004). Brand you survival kit. Fast Company . Retrieved July 1, 2008, from http://www.fastcompany.com/magazine/83/playbook.html .

Pfeffer, J. (1998). The human equation: Building profits by putting people first . Boston: Harvard Business School Press.

Pfeffer, J., & Veiga, J. F. (1999). Putting people first for organizational success. Academy of Management Executive , 13 , 37–48.

U.S. Bureau of Labor Statistics. (2005). Retrieved December 8, 2005, from the U.S. Bureau of Labor Statistics Web site: http://www.bls.gov/nls/nlsfaqs.htm#anch5 .

Welbourne, T., & Andrews, A. (1996). Predicting performance of Initial Public Offering firms: Should HRM be in the equation? Academy of Management Journal , 39 , 910–911.

• Retrieved June 4, 2008, from http://www.litera.co.uk/t/NDk1MDA/ . ↵

Organizational Behavior Copyright © 2017 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Organizational Behavior 1

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This comprehensive text provides a detailed review and analysis of the building-block theories in Organizational Behavior. Expanding on his previous work in the field, John Miner has identified the key theories that every student or scholar needs to understand to be considered literate in the discipline.

Organizational Behavior: Essential Theories of Motivation and Leadership analyzes the work of leading theorists. Each chapter includes the background of the theorist represented, the context in which the theory arose, the initial and subsequent theoretical statements, research on the theory by the theory's author and others (including meta-analysis and reviews), and practical applications.

Special features including boxed summaries of each theory at the beginning of each chapter, two introductory chapters on the scientific method and the development of knowledge, and detailed and comprehensive references, help make this text especially useful for graduate courses in Organizational Behavior and Industrial/Organizational Psychology.

TABLE OF CONTENTS

Part i | 34  pages, scientific introduction, chapter 1 | 15  pages, science and its theory, chapter 2 | 17  pages, the conduct of research and the development of knowledge, part ii | 169  pages, theories of motivation, chapter 3 | 9  pages, from social psychology and personality theory, chapter 4 | 15  pages, achievement motivation theory, chapter 5 | 14  pages, motivation-hygiene theory, chapter 6 | 19  pages, job characteristics theory, chapter 7 | 20  pages, expectancy theories, chapter 8 | 20  pages, operant behavior and organizational behavior modification, chapter 9 | 25  pages, equity theory, chapter 10 | 25  pages, goal-setting theory, chapter 11 | 20  pages, attribution theory—managerial perceptions of the poor performing subordinate, part iii | 181  pages, theories of leadership, chapter 12 | 25  pages, normative decision process theory, chapter 13 | 24  pages, contingency theory of leadership, chapter 14 | 24  pages, vertical dyad linkage and leader–member exchange theory, chapter 15 | 20  pages, information processing theory of leadership, chapter 16 | 19  pages, substitutes for leadership, chapter 17 | 18  pages, role motivation theory, chapter 18 | 24  pages, charismatic leadership theory, chapter 19 | 25  pages, transformational leadership theory.

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• Theoretical Review

The Effect of Personality on Motivation and Organisational Behaviour

Ashveen nuckcheddy*.

University of Northampton, UK

Submission: May 03, 2018; Published: May 30, 2018

*Corresponding author: Ashveen Nuckcheddy, University of Northampton, UK.

How to cite this article: Ashveen N. The Effect of Personality on Motivation and Organisational Behaviour. Psychol Behav Sci Int J. 2018; 9(2): 555760. DOI: 10.19080/PBSIJ.2018.09.555760.

This paper performs a literature review on the topic ‘the effect of personality on motivation and organisational behaviour.’ The main research questions under investigation were does personality affect motivation and organisational behaviour, and does personality affect organisational behaviour. As a literature review paper, it consulted already published sources on the topic from popular journals such as Journal of Applied Psychology, Journal of Personality and Social Psychology, Journal of Research in Personality, Academy of management review, and Journal of Organizational Behaviour. The study then went ahead to perform a theoretical review of personality theories where the traits theory, the psychoanalytic, the humanistic, and the social cognitive theories were outlined. In the findings section, the review determined that personality has an influence on motivation through personal emotional stability, level of aggression, and extrovert or introvert characteristics of workers. It was also found that personality has a significant effect on organisational behaviour by influencing organisational tolerance, work environment, and work ethics. It was concluded that personality is an important topic that should be considered by management as they strive to improving motivation of workers and optimising organisational behaviour at the workplace.

Keywords: Motivation; Personality; Organisational behaviour; Management

Personality refers to the combination of a person’s characteristics that make them unique and of a distinctive character, and it forms the basis for individual differences among organizational members. There are practically no two human beings who are similar in all aspects. Barrick et al. [1] argue that even when their physical countenance may be similar, people tend to differ in their personality. One of the major concerns that the human resources office still grapples within contemporary organizations is inducing and sustaining workers’ motivation. In trying to achieve this objective, it becomes relevant that they establish the relationship between personality with motivation and to what extent the former affects the latter. This paper seeks to establish this and further examine it in the context of personality and individual differences in influencing organizational behaviour at large.

a) How does personality influence employee motivation?

b) How does personality influence organizational behaviour?

Methodology

This paper takes the form of a literature review of pertinent studies related to personality, individual differences, and motivation. According to Wee [2], the methodology of literature review papers should at least contain the themes informing the review, databases used, keywords, and some of the major sources consulted. The themes that were found to be the most relevant were motivation, personality, and individual differences. Of most significance were those studies that attempted to link personality to motivation in an organisational setting. With respect to referencing literature sources, the Harvard system was preferred where the author-date-page format was followed in citations.

Most of the studies were sourced from journals related to management, motivation, organizational behaviour, psychology, and human resources such as Journal of Applied Psychology, Journal of Personality and Social Psychology, Journal of Research in Personality, Academy of management review, and Journal of Organizational Behaviour. Google Scholar was also sourced as a general database of some of the articles. In all cases, the primary keywords used in searching for the articles were motivation, personality, individual differences, organisational behaviour, and human resources. The timeframe allowed for the inclusion of an article was that it ought to have been written between the year 2010 and 2018. The keywords and timeframe were therefore the inclusion criteria for sources that were consulted for purposes of completing this study.

Personality has been extensively researched and most scholars have found a strong relationship between personality and motivation of workers. Fleeson [3] consider some of the most prominent theories used in this regard to be the traits theory, psychoanalytic, humanistic, and social cognitive theories.

The traits theory of personality

This theory asserts that people exude different types of personalities based on traits that are inherently in them. Several scholars have made an attempt to explain the working of this theory. One of them is Gordon Allport, as he claims that these traits are categorized into three groups namely cardinal, central, and secondary traits Anderson [4]. Hans Eysenck also proposed another approach in line with the traits theory by categorizing people according to three scales in the determination of their personality.

Dinger et al. [5] argue that the traits theory and all its approaches are closely related to motivation at the workplace. As a human resources manager, one needs to explore the traits of their members in an organization in order to understand their personalities. According to their assessment, a good human resources manager would look into whether such a person is introvert, and that he works best when alone, instead of concluding that such a person is absolutely unproductive. In that way, Klotz [6] feel that the presence of other workers would be a demotivating factor rather than a motivating one for this worker.

The psychoanalytic theory of personality

The theory is attributed to Sigmund Freud. According to Spence [7], it asserts that one’s personality is composed of three dimensions namely the id, ego, and super ego. The id is the selfish part of an individual, and it will always seek to satisfy them even at the expense of others. The super ego is the most moral and socially sensitive of one’s personality as it seeks to prevent them from committing evil just because it is wrong. The ego is the mediating dimension between the aforementioned aspects. It seeks to create a compromise between the arguments of the two thereby leading to a more composed resolution. Individual differences manifest from the differences in the levels of these three dimensions of personality in a person Mc Cann [8] (Figure 1).

The humanistic theory of personality

This school of thought decried the issues that the former trait and psychoanalytical theories of personality failed to address. Consequently, they designed a different perspective to explain differences in personalities among people Quinney [9]. Two common scholars who are widely known for advocating for the humanistic approach of personality are Abraham Maslow and Carl Rogers. Abraham Maslow drew from his needs hierarchy theory to develop an approach towards personality. According to him, all people are guided by their need to achieve self-actualization and so is their personality. On the other hand, Carl Rogers developed an approach that he called the peoplecentred theory. In this theory, he suggests that personality is a combination of beliefs, thoughts, and feelings. He indicates that people are always aware of their self-concept. He also introduced the elements of congruence and incongruence. Congruence is when there is a match between self-concept and reality while incongruence is when there is a mismatch. This is in agreement with Quinney [9], as they state that good personalities arise when there is congruence and the opposite is true.

The social cognitive theory of personality

The social cognitive theory advocates for the fact that personality is something that one can learn from people and their environment. Walter Mischel developed this theory where he opined that people are social beings who have the ability to learn from their environment what is good and resist adopting what is deemed to be wrong. This is a departure from the former traits theory as it is against the notion that personality is in born. Mischel believes that most attributed of personality are acquired. Sherman et al. [10] particularly argue that one’s personality essentially depends on the person-situation rather than trait-state (Figure 2).

Criticism of personality theories

Bettencourt et al. [11] have criticized trait theories for being too simplistic. Some scholars argue that even when one is said to have certain traits; it is not always that they tend to manifest. For instance, the source argues that the way someone reacts to a given stimulus today might be absolutely different from the way they react to the same stimulus in future. The psychoanalytical set of personality theories also faces the criticism that it has a narrow focus, seems patriarchal, and lacks a scientific basis Klotz [6]. There is no experiment that has successfully proven Freud’s theory, and it therefore does not have an empirical backing for its assertions Parks-Leduc [12]. Humanistic approaches have also received a fair share of criticism mostly for the fact that they are not objective in nature, thereby rendering its findings unreliable. Finally, social cognitive theory of personality has been criticized for its findings being too preliminary, and that it fails to properly account for the relationships between social cognition, behaviour, behaviour, and personality Klotz [6].

Impact of personality on motivation

Emotional stability and motivation

Personality has been found to affect the manner in which persons are willing to be affected by motivation strategies as proposed and or implemented by management. More specifically, studies have affirmed that persons with emotional stability and those who rank low on the psychoticism are more willing to be receptive to motivation techniques Jaeggi [13]. On the other hand, persons with more aggressive personalities tend to be resistant to management even on things that are beneficial to them. For instance, when management finds that the staffs can be well motivated by inducing job rotation program, some workers may resist this viewing it as a means to allow ‘outsiders’ to their roles. Conway et al. [14] argue that most of such workers only appreciate monetary incentives as the sole strategy for improving their levels of motivation.

Level of aggression and motivation

With respect to Lee [15], this notion is squarely envisaged in Vroom’s Expectancy theory, which suggests that the motivation of an employee and their ultimate performance is affected by personality among other factors such as experience, skills, and abilities. This notion is consistent with the research compiled by Avery [16], which opines that valence is the central tenet that comes into question whenever personality is linked with motivation. It is concerned with the emotional orientations of workers with respect to the suggested rewards, where workers with aggressive personalities will tend to be aligned to aggressive and physical rewards for them to feel motivated. Employees with less aggressive tendencies are likely to be attracted to soft and more qualitative aspects while selecting the rewards they prefer Bettencourt [11]. Emotional orientations are a direct product of people’s personalities, and therefore the findings made in the studies above provide evidence of a link between personality and motivation.

Extrovert and introvert effects on motivation

Personality of workers may also be considered to be influential in how they are receptive to motivation strategies by management when such personalities are viewed as introvert and extrovert. May 2016 finds that introverts tend to respond more effectively to hygiene factors while extroverts tend to respond more effectively to the presence of actual motivators that are envisaged in the Frederick Herzberg’s theory of motivation. Dinger et al. [5] are of a similar opinion where they argue that motivating introverts has very low minimal requirements as opposed to motivating persons with an extrovert personality. In fact, Avery [16] observes that extroverts are more likely to initiate civil disobedience at the workplace to show their dissatisfaction due to the presence of de-motivators. In most cases, introverts are followers and participants in strikes and demonstrations rather than being the initiators.

Impact of personality on organizational behaviour

Personality effects of organisational tolerance

Personalities and individual differences also have an effect on the conduct of an entire organization by dictating the behaviour as commonly adopted by members with regards to cultural tolerance. Barrick [1] observes that an organization with a homogenous set of personality tends to be resistant to other personalities, and, therefore less tolerant to them. Additionally, the source argues that an organization with diversity in their personalities will constantly be in conflicts in the short run. Avery [16] opines that this trend ensues because members have to learn how to co-exist with others. In the long run, members will learn to tolerate all these personalities, especially if the human resources office is working hard to iron out differences and make members accept the diversity in personalities Woehr [17].

Personality and quality of work environment

Muindi [18] finds personality has an effect on the quality of work environment. Where management fails to organize compatible personalities into departments, groups, and teams, the likely result is that conflicts will occur. Spector [19] argues that when a department is staffed with all aggressive personalities, there is very few times that consensus will be reached. On the contrary, when complimentary personalities are matched and made to work together, the outcome is constructive deliberations that rarely end in conflicts Sherman et al. [10]. Such an organization becomes a benchmark in the industry with which other organizations will be measuring their success in turning personalities and their differences into a motivating factor at the workplace. Organisational harmony is an element that ranks as among the five most critical criteria that most consider important in determining the quality of work environment. In this way, personality is affirmed to be highly influential in shaping behaviour in an organisation by having a direct impact on the quality of work environment.

Personality and work ethics

Personality also has a significant effect on the work ethics of members. Those with positive attitudes towards work are likely to be reporting to work in good time, proposing more projects, and engaging in more efficient methods of production Swider [20]. It is observed in Tasa et al. [21] that personal attitudes tend to also influence the success or failure of a team at work. The source notes consistently with Cogliser, Gardner et al. [22] that one of the reasons teams fail to registers success is due to the incompatible range of personalities in such teams. This acknowledgement goes a long way in hinting on the relationship between personality and organisational behaviour. Wilde [23] notes that while people with good teamwork skills are usually preferred in most cases, there is also the need to have a few persons with individuality to take on certain tasks that may be deemed not suitable for teams.

Implications of the effect of personality on motivation

The findings section has elaborated on the effect that personality has on motivation of workers. One implication of this is that it can be used during recruitment to ensure that the workers hired can have personalities that can be effectively motivated by an organisation. As Gardner et al. [22] notes, it is for this reason that some organisations require that candidates indicate their personality types while applying or while they are being interviewed. Another implication is that is tailoring motivation strategies for the different personalities that are in an organisation. This implication is consistent with findings in Greguras & Diefendorff [24] where it was found that matching motivation strategies to personalities helps in significantly increasing the effectiveness of those strategies.

Implications of the effect of personality on organisational behaviour

Personality was found to have a significant effect on organisational behaviour in determining the levels of tolerance, quality of work environment, and work ethics. The link between personality and tolerance can be exploited by adequately combining people with complementary personalities to the same teams where tolerance is likely to persist. Similarly, the link with work environment can be exploited by creating a sustainable environment to boost performance of workers. As Swider [20] notes, a good work environment that is tolerant of differences in personalities is one of these motivators that result in the motivation of workers at the workplace. It results in positive behaviour in the organization due to the acceptance and tolerance of diversity. Consequently, when this culture is adopted throughout the organization, it results in harmony and stability Tasa [21]. Personality was also found to have close links with work ethics, which can be useful in determining who fits to be in a department or organisation at large as a result of their perceived personality [25,26].

As it has been seen throughout this discussion, personality has a significant effect on motivation and organisational behaviour. This information is relevant to management teams as they continuously try to provide guidance in contemporary organizations in managing crucial organizational aspects regarding motivation. By knowing and understanding how personality affect motivation of workers, management can then take a whole different approach in aligning the interests of personnel and the organization together. It is advisable that relevant bodies in organizations adopt pertinent approaches that view personnel as being of different attributes, and tailor motivation strategies that induce positive organisational behaviour. With this approach in practice, there is a high likelihood that there will be success in human resources strategies and related policies implemented by these organizations.

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• Using Motivation to Improve Employee Performance Words: 1200
• Employee Motivation and Involvement Types Words: 1943
• Employee Retention and Motivation Policies Words: 2000
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• Employees’ Motivation: A Manager’s Challenge Words: 1167
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• Employee Motivation: Service Quality in Higher Education Institutions Words: 1212
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Organizational Behavior Motivation of Employees

Problem statement, herzberg’s motivation theory, definition of temporary employee, research questions, dependent variable, independent variable.

Motivation is the enthusiasm to apply high levels of effort towards the goals of an organization, trained by the skill to satisfy an employee’s needs. In most organizations, the management views employee motivation as a fruitful technique to increase employee productivity. When employees get motivated, they try to strive even more and this points out the fact why motivation is crucial in management.

To what extent do motivational factors lead to high performance for temporary employees of the organization?

Currently, management in many organizations is tasked with finding new ways to motivate their employees. According to Miner J, (2007) factors that contribute to this include:

• limited motivation
• Inadequate socialization
• Perceptions of injustice
• Exclusions from decision making
• Expectations for permanent work
• Lower age and tenure
• Low levels of commitment
• Lower tolerance for inequity

According to Noorderhaven (2003), management should always thrive to ally the goals of the organization with those of the employees. In most cases, employees of an organization are usually passionate about their work and they strive hard. However, if their work does not contribute to the goals of the firm, subsequently the firm is not better off than if the employees were sitting on their hands. As a result, it is crucial that the management know and understand what they want from their employees.

These goals are usually set up during the initial strategic planning of the firm or organization.

Miner (2007) pointed out that Hezberg performed studies to better comprehend employee attitudes and the factors that motivated them. He came up with the motivation-hygiene theory to enable him to get answers regarding the above. Hezberg called the satisfiers motivators and the dissatisfied hygiene factors. He used the word “hygiene” in the sense that they are considered maintenance factors which are extremely necessary to avoid dissatisfaction but that by themselves do not provide satisfaction (Miner, J, 2007) According to Hezberg, the factors that led to employees feeling dissatisfied were:

• Company policy
• Supervision
• Relationship with the boss
• Work conditions
• Relationship with the peers

The other factors that led to employee satisfaction were such as:

• Achievement
• Recognition
• Work itself
• Responsibility
• Advancement

Herzberg articulated that because the factors that caused employee satisfaction were different from those that caused dissatisfaction, the two thoughts could not be treated as opposites of each other. After looking at the factors that caused both satisfaction and dissatisfaction, one can conclude that these factors are not part of the work itself but external factors. According to Griffin & Moorhead (2009), Herzberg often referred to these hygiene factors as “KITA” factors, where KITA is an acronym for Kick in the Ass, the process of providing incentives or a threat of punishment to cause an employee to do something.. According to Hertzberg:

• The job should have ample challenge to exploit the full ability of the employee.
• Employees who display mounting levels of ability should be given rising levels of responsibility.
• If a job cannot be intended to fit the abilities of an employee, then the organization should consider substituting the employee with one who has a lower level of skill.

A temporary employee is an employee who works for an organization for a short period and in most cases it he or she is given a contract to work in the organization (Griffin & Moorhead, 2009).

How should management in an organization motivate their employees?

People are different from each other hence, what motivates one employee varies from how another employee can be motivated.

What should the management recognize regarding the motivation of employees?

The management should recognize that employee motivation is a process and not a task (Hampton, 2002). Organizations, as well as people, change all the time and certainly, it is an ongoing process to maintain an environment where each employee can strongly motivate him or herself. If the

Management of an organization looked at supporting employee motivation as an ongoing process, and then they would be more fulfilled and motivated themselves (Andrade, 2006)

How should management support employee motivation in an organization?

Management should always strive to ally the objectives of the business enterprise with those of the employees. In most cases, employees of an organization are usually passionate about their work and they strive hard. However, if their work does not contribute to the goals of the firm, subsequently the firm is not better off than if the employees were sitting on their hands. As a result, it is crucial that the management know and understand what they want from their employees. These goals are usually set up during the initial strategic planning of the firm or organization (Hampton, 2002).

Should management adopt fear as a good motivator in their organizations?

“The management should not use fear as a good motivator because it works for a short time and the employees can not last in the organization for a long time if the management appears to be too compromising.

Firing Employees: This is getting rid of employees who are not enthusiastic about their jobs.

Incentives: Things given to employees to encourage, motivate and reward their cooperation and loyalty to the organization.

Increased Salaries: Through improved wages, the employees will feel that they have been recognized for their hard work

Motivation is the enthusiasm to apply high levels of effort towards the goals of an organization, trained by the skill to satisfy an employee’s needs. In most organizations, the management views employee motivation as a fruitful technique to increase employee productivity. When employees get motivated, they try to strive even more and this points out the fact why motivation is crucial in management. They have tried and applied different strategies in trying to tackle this issue and in most cases they have not been successful. The major guideline management in organizations can apply in tackling this problem is for them to understand what motivates each employee. Incentive programs should be aimed through the whole organization as they provide the best solution to motivating employees.

Andrade, K and Ontveros, S (2006). Organizational behavior: contemporary viewpoints Goleta, CA: ABC – Clio

Griffin, R, and Moorhead, G. (2009). Organizational Behavior: Managing People and organizations Boston, MA: Cengage Learning

Miner, J (2007). Organizational Behavior: From theory to practice, Volume 4 Armonk, NY: M.E Sharpe Publishers

Noorderhaven, N (2003). MIR – Management International Review: can multinationals bridge the gap between global and local? Journal of International Business Wiesbaden, Germany‎: Gabler Verlag Publishers

Hampton D, Summer C and Webber A (2002). Organizational behavior and the practice of management Glenview, IL: Scott, Foresman Publishers

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Organisational Behaviour and Motivation Models

Organisational behaviour is widely-defined across different cultural and geographical regions. In this regard, the meaning of this term would tend to be different across various organisations, depending on cultural factors and geographical factors, among other influential aspects. Generally, this is the type of study normally carried out on organisations with the aim of examining the type of impact that structure, groups and individuals would tend to have on the behaviour of the units within organisations, for the need of utilising such knowledge or information in improving the efficiency and effectiveness of the organisational objectives.

In other words, this is the prediction, understanding, and management of approaches showing how the behaviour of humans would tend to affect the overall performance of organisations. OB strives to identify and encourage ways through which individuals and groups within an organisation can act in an effective manner towards the organisational objectives (Robbins et al. 2011).

This report clearly supports the viewpoint that the praise of employees, as it is enforced by organizational leaders certainly does motivate. As a matter of fact, praise plays a crucial task in encouraging productivity and job satisfaction among employees, thus improving the overall performance and productivity of an organisation. Other key dependent variables that are likely to be impacted by this form of motivation would include deviant workplace behaviour, employee turnover, absenteeism, and organisational citizenship behaviour.

One of the major functions of a manager in any firm is to develop the skills of their workforce, so as to enable them to become more effective and successful in the long term productivity goal of their businesses (Robbins et al. 2011). An effective way of accomplishing this mission is through praise of employees, for every positive which thing they accomplish. Praise of individuals and groups in any particular department could be a big source of motivation in the workplace. The habit of praising workers in their work is a form of incentive any firm can afford, and it has always proved to be a powerful tool of motivation on employees when used wisely.

As will be observed, businesses can be more productive if they achieved their goals by changing the available inputs into outputs at the minimal cost possible. Productivity is a major concern of organisational behaviour, and in that regard, praise motivation, which plays a crucial role in productivity, can be viewed as one of those factors that tend to influence the efficiency and effectiveness of workers within an organisation. It is also apparent that this form of motivation in the workplace encourages good working environment and conditions for employees, thus facilitating the attitude of job satisfaction among them.

In most cases, this would further play an important role in the attraction and retention of employees in organisations, thus leading to effective and efficient participation of the workforce in the overall productivity and performance. Based on the findings of previous studies, satisfied and well-treated employees are likely to be more active in organisational roles, compared to dissatisfied workers. The reason for this positive response is that satisfied employees normally enjoy fair treatment and concern in their places of work and this motivates them in becoming more willing to get involved in activities that are vital in modern business environments.

The motivation of workers entails all approaches that managers and supervisors can apply with the aim of expressing sincere admiration to the accountability of their employees towards organisational productivity. In this regard, it is always a good idea for the leaders to recognise and try to acknowledge the efforts that their employees have put towards the effective productivity of their firms. Learning to acknowledge the performance of workers through praise, even in the least manner possible, is an appropriate way of boosting their morale in business, without having to incur any costs (Smithers and Walker 2000).

There is ample evidence showing that workers or employees are more likely to be satisfied in their work when they are aware that their efforts and abilities in the working grounds are being appreciated for. This way, the employees are able to embrace focused business directives that are likely to generate positive organisational citizen behaviours. There are many long-term benefits that organisational leaders are likely to enjoy, simply by learning to acknowledge the effort of their subordinates, and not just the outcome resulting from their work. There is arguably no doubt that praise is an effective energizer which never fails in building confidence in employees, thus encouraging them to become even more active and accountable in their productivity roles.

Failure to recognise and appreciate employees can always result in negative outcomes in the workplace, such as absenteeism and reduced worker turnover. Previous research has indicated that a lack of employee appreciation by managers and supervisors has been among the major causes of the many management crises and tribulations affecting organisations today. It is apparent that many modern business owners have completely failed to realise the power of employee incentive through honest praise, and this has been the cause of the many incessant worker-management clashes affecting modern organisations.

This voluntary behaviour of violating important organisational values and norms may eventually result in deviant workplace behaviour which may impose serious effects on the overall organisational performance and productivity (Lin 2007). There is a presumption that employees’ performance in any level of the organisation could be motivated by money or any other form of favour which is may be directed to them.

The truth of the matter here, however, is that, even though these incentives are likely to play a key role towards motivation, many employees would just need to have a positive attitude towards their managers and organisations, and this can only be achieved through simple praise and appreciation. Employee motivation through praise does not only facilitate good productivity, but it also encourages good working relations among the participants in the workplace, thus improving the working conditions and working environments for both the employees and their leaders (Rodgers and Hunter 1991).

There are many ways through which managers and supervisors can show appreciation to their employees. These approaches would incorporate both verbal and nonverbal signals. For instance, managers can just drop quick positive remarks or comments that are intended to boost the morale of their subordinates in work. Examples of such comments are terms like ‘Nice job,’ ‘Keep it up,’ ‘You have done excellent work,’ or ‘Congratulations.’ It should always be observed that employees are likely to respond in an enthusiastic manner whenever they are spoken to in a friendly tone by their managers and supervisors.

These terms of appreciation would not only boost the morale of employees, but they also make them realise that their efforts and capabilities in the organisation are being recognised. In exchange for this recognition, employees are likely to portray organisational citizenship behaviour towards work, and this is likely to play a crucial role in promoting effective functioning and productivity in the work place. Other effective ways through which managers and other organisational leaders could express their praise on employees is by the use of non verbal gestures and signals such as thumbs-up, approving nods, or even a slight pat on the back (Wiley 1997).

Other common ways of expressing praise or gratitude to employees would include small gifts, written notes of appreciation, sending of letters or email cards, or even giving workers occasional day offs in exchange for exceptional performance (Bartol and Srivastava 2002). Each of these approaches is likely to catch employees at their best, thus motivating them to work even harder, in order to earn the praise of the manager. However, the effectiveness of praise on workers largely depends on a number of factors, such as the manner through which the gratitude is expressed, and the emphasis applied when it is being expressed.

For example, while it is always good for managers to praise their workers every time they earn their admiration, it is also important for them to specify the reason behind the praise. By doing so, managers would have maximised their praise on employees, thus heightening the kind of effect this is likely to impact on the employees. Organisational leaders can be assured of attracting and retaining loyal employees in firms, through these effective approaches.

The viewpoint discussed in this paper is consistent with various models of motivation, as they are manifested in the text book, through the disciplines that would tend to have significant contribution to the field of organisational behavior. Some of the behavioral disciplines through which organisational behavior can be applied and enforced would include sociology, psychology, and social psychology. In this context, sociology aims at studying humans in relevance with their social cultures and environment. Social psychology, on the other hand, focuses on the impact that humans would tend to have on one another, based on the fundamentals of sociology and psychology. Finally, psychology achieves its objectives by measuring, explaining and sometimes changing the behaviours of people in various organisations or units.

The perspective on the topic discussed in this paper has fitted well in the two common models of motivation i.e. the behavioral model and the expectancy model. In behavioral model, the behavior would depend on the consequences. The approaches in this model may include both positive and negative reinforcements, among other crucial aspects. The expectancy model indicates that, any form of motivation such as the one applied in this paper, would be a by-product of how much people need something and the possibility that a particular course of action or choice of approach would enable them achieve their objective or goal (Ramlall 2004).

In this case, employee motivation through praise is likely to boost workers’ morale in work, since this would compel them to strive in their roles, so as to achieve admirable results that would enable them win the acknowledgement of their managers and supervisors. Through various ways of motivation such as the ones expressed in this paper, organisational leaders can effectively administer and guide the ways through which workers can satisfy both their personal and organisational needs, thus contributing to efficient productivity.

Based on the observations of this discussion, praise really does motivate employees in organisations. In this regard, managers and supervisors should always view it as one of the most effective and convenient approaches that can be used to trigger the morale of employees. Through this proven method, organisations are able to realise the maximum ability of employees towards effective and efficient organisational productivity. As it has been observed, effective motivation through praise can positively affect the six dependent variables of organisational behavior described in this report. Employees are likely to end up feeling more respected and valued by their managers, when they are involved in constant praise. This positive feeling can eventually transform into a greater sense of commitment, thus contributing to effective and efficient employee productivity.

Reference List

Bartol, K & Srivastava, A 2002, ‘Encouraging knowledge sharing: The role of organizational reward systems’, Journal of Leadership & Organizational Studies , vol. 9 no. 1, pp. 64-76.

Lin, H 2007, ‘Effects of extrinsic and intrinsic motivation on employee knowledge sharing intentions’, Journal of Information Science , vol. 33 no. 2, pp. 135-149.

Ramlall, S 2004, ‘A review of employee motivation theories and their implications for employee retention within organizations’, Journal of American Academy of Business , vol. 5 no. 2, pp. 52-63.

Robbins, SP, Judge, TA, Millett, B & Waters-Marsh, T 2011, Organisational behaviour, 6th edn, Pearson/Prentice Hall, Frenchs Forest, NSW.

Rodgers, R & Hunter, J 1991, ‘Impact of management by objectives on organisational productivity’, Journal of Applied Psychology , vol. 76 no. 2, pp. 322.

Smithers, G & Walker, D 2000, ‘The effect of the workplace on motivation and demotivation of construction professionals’, Construction Management & Economics , vol. 18 no. 7, pp. 833-841.

Wiley, C 1997, ‘What motivates employees according to over 40 years of motivation surveys’, International Journal of Manpower , vol. 18 no. 3, vol. 263-280.

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Threshold models have been widely used to analyze interdependent behavior, yet empirical research identifying people’s thresholds is nonexistent. We introduce an incentivized method for eliciting thresholds and use it to study support for affirmative action in a large, stratified sample of the U.S. population. Most Asian, Black, Hispanic, and White men and women condition their support for affirmative action on the number of others supporting it. In line with preregistered hypotheses, thresholds are influenced by one’s perceived benefits and pressure to conform. We demonstrate how our method can offer unique insights for policy design and enhance understanding of social dynamics.

We thank seminar participants at the University of Bologna, University of Cologne, Middlebury College, Norwegian Business School, New York University, University of Arizona, University of Texas at Dallas, University of Verona, and audiences at the 2024 Social Norms Workshop Ascona, 2024 Barcelona Summer Forum, the 2024 Dynamics of Social Change workshop at NYU Abu Dhabi, the 2023 World ESA conference in Lyon, and the 2023 ESA Africa conference in Cape Town. The project was pre-registered at AEARCTR-0010895 on March 03, 2023. IRB approval has been obtained by the NYUAD (HRPP-2022-74) and UT Dallas (IRB-22-582) Institutional Review Boards. MJ and NN gratefully acknowledge financial support from Tamkeen under NYU Abu Dhabi Research Institute Award CG005. NN and SS gratefully acknowledge financial support from the National Science Foundation (grant #2242443). The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

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Prof. Dr. Michael Grüning Dekan

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The research of the Department of Business Administration, Economics and Media covers three core topics:

Research Profile

Digital economy and society.

• Economic, social and behavioural science and legal penetration of the emergence and implementation of digital goods, services and business models, influence on market relations and the competitiveness of companies.
• Emergence of communication content and forms, their dissemination and use as well as communication effects at individual, organisational and societal level
• Development, evaluation and integration of information and communication technologies in business processes, the development of information systems, IT management in companies, digitalisation of manufacturing processes
• Communication about technical and technology-driven phenomena, human-machine communication and interaction
•  Behaviour of market participants with a focus on media markets and the energy market as well as analysis and evaluation of corresponding economic, financial and tax policy regulation and design mechanisms

Innovation, sustainability and new technologies

• Skills of companies to identify, evaluate and exploit entrepreneurial opportunities for the development of innovative products, services or business models, management of the innovation process, methods and techniques, mechanisms of innovation and technology communication.
• Acceptance of innovations, new concepts and technologies, design of exchange relationships between market participants, value creation processes, production concepts as well as principles and structures of sustainable corporate governance
• Recording and mapping of performance and financial flows, the valuation of assets and capital values, taking into account a global market environment
• Shaping legal relationships with regard to new value creation processes, especially with regard to media law and the protection of intellectual property as well as civil law issues of a changed world of work

Philosophy of Science and Methods

• Development of mathematical-static methods for information acquisition, planning, control and monitoring of operational processes, modelling and simulation approaches.
• Modelling, simulation and optimisation of operational processes such as manufacturing processes
• Methods of evaluation research, methods of analysis of multimodal data, computer-aided analysis of contents of organisational communication

The department’s strategic research initiatives focus on Computational Social Sciences: Economy, Media and Social Systems, addressing aspects of the modern digitized economy and society from an interdisciplinary perspective. The various forms of computational social sciences include:

• The development and application of innovative computational methods to large and complex digital data, typically coming from human behaviour or digital technologies on the micro, meso and macro level.
• The theoretical and empirical investigation of the ethical, legal, economic and social implications of advancing digitalization and the corresponding technologies.
• The study and further development of economic, communication science and legal theories, data and measurements to investigate individual and societal consequences of the progress of digitization and corresponding technologies, including artificial intelligence (AI).
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Participation and presentation in the aom 2024 in chicago.

The 84 th Annual Meeting of the Academy of Management (AOM) 2024 was held this year in Chicago. With more than 10,000 participants, this meeting is the largest and most important conference in the field of management worldwide.

Two full-paper submissions from the Management/Organization Group were accepted in the Organizational Behavior division of AOM:

• The Role of Personal Resources on Managers’ Innovative Work Behavior (Rrezon Lajçi & Norbert Bach and Gentrit Berisha/University of Prishtina)
• Workplace Belongingness and Management Support as Prerequisites for Innovative Work Behavior (Gentrit Berisha & Drin Govori from University of Prishtina/Kosovo and Rrezon Lajçi)

Rrezon Lajçi presented the first paper. We gratefully acknowledge the numerous contributions to the discussion and suggestions we received at the conference regarding the empirically based papers!

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