HUMAN BEHAVIOR in

ORGANIZATION
Roberto Guides
 CHAPTER II.
INDIVIDUAL DIFFERENCES, MENTAL ABILITY,
AND PERSONALITY

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Individual Differences
Individual differences refer to the variation in how people respond to the same situation
based on personal characteristics.

CONSEQUENCES OF INDIVIDUAL DIFFERENCES

1. people differ in productivity;
2. people differ in the quality of their work;
3. people react differently to empowerment;
4. people react differently to any style of leadership;
5. people differ in terms of need for contact with other people;
6. people differ in terms of commitment to the organization; and
7. people differ in terms of level of self-esteem.

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 WHAT MAKES PEOPLE DIFFERENT FROM EACH OTHER
People are different from each other because they are different in terms of the following:
1. demographics; 3. personality.
2. aptitude and ability; and

Demographic Diversity
The sources of demographic diversity include the following:
3. gender; 3. culture.
4. generational differences and age; and

Aptitude and Ability

Individual differs to the extent by which they can perform any of the following:
5. Dynamic strength 6. Dynamic flexibility
6. Trunk strength 7. Body coordination
7. Static strength 8. Balance
8. Explosive strength 9. Stamina
9. Extent flexibility
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 DIMENSIONS OF INTELLECTUAL ABILITY
1. cognitive 3. emotional
2. social 4. cultural

THEORY OF MULTIPLE INTELLIGENCES

3. Linguistic 5. Bodily-kinesthetic
4. Logical-Mathematical 6. Intrapersonal
5. Musical 7. Interpersonal
6. Spatial 8. Naturalist

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Personality
Determinants of Personality
Hereditary factors:
1. physical stature 5. muscle composition and reflexes
2. facial attractiveness 6. energy level
3. Gender 7. biological rhythms
4. temperament

Environmental factors:
5. Cultural factor 3. Situational factors
6. Social factor

Personality Factors and Traits

7. Emotional stability 5. Conscientiousness
8. Extraversion 6. Self-monitoring behavior
9. Openness to experience 7. Risk taking and thrill seeking
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CHAPTER III.
LEARNING, PERCEPTION, AND ATTRIBUTION

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Learning
Learning may be defined as a relatively permanent change in behavior or knowledge
due to experience.

A change in behavior happens due to any or both of the following:

1. Learning; or
2. Other causes such as drugs, injury, disease and maturation.

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 THEORIES OF LEARNING
Classical Conditioning
Classical Conditioning may be defined as a type of learning in which a stimulus acquires
the capacity to evoke a response that was originally evoked by another stimulus. A stimulus is
something that incites action.

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Operant Conditioning
Operant Conditioning may be defined as a type of learning where people learn to repeat
behaviors that bring them pleasurable outcomes and to avoid behaviors that lead to
uncomfortable outcomes.

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PERCEPTION
Perception may be defined as the process by which people select, organize, interpret,
retrieve, and respond to information from their environment.

Factors Influencing Perception

Perception is influenced by the characteristics of the following:
1. the perceiver – the person who perceives the target. His perception of the target is influenced
by factors that are unique to him (past experiences, needs/motives, personality, values &
attitudes).
2. the target – the person, object, or event that is perceived by another person. Perception may
be modified by factors which are typical characteristics of targets (contrast, intensity, figure-
ground separation, size, motion, repetition or novelty).
3. the situation – time, work setting, and social setting are situational factors that affect
perception.

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ATTRIBUTION
Attribution theory is the process by which people ascribe causes to the behavior they
perceive.

Common Attribution Errors

When people make attempts to determine the causes of the people’s behavior, errors
commonly happen. These errors may be classified into the following types:
1. the fundamental attribution errors; and
2. the self-serving bias.

Factors That Influence Attribution

When people try to determine the cause of a person’s behavior, i.e, whether the cause is
internal or external, some factors influence such effort. The factors refer to the following:
3. distinctiveness
4. consensus
5. consistence

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SHORTCUTS USED IN FORMING IMPRESSIONS OF OTHERS
The shortcuts refer to the following:
1. selective perception
2. halo effect
3. contrast effects
4. projection
5. stereotyping

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 CHAPTER IV.
VALUES, ATTITUDES, AND JOB SATISFACTION

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Values
Values refer to the importance a person attaches to the things or ideas that serves as
guide to action. Values are enduring beliefs that one’s mode of conduct is better than the opposite
mode of conduct.

How People Learn Values

Values are not inborn, they are learned. As they grow, people learn values through any or
all of the following:
1. modeling 3. unstated but implied attitudes
2. communication of attitudes 4. religion

Types of Values
3. Achievement – pertains to getting things done and working hard to accomplish goals;
4. Helping and concern for others – the person’s concern with other people and providing
assistance to those who need help;
5. Honesty – the person’s concern for telling the truth and doing what he thinks is right; and
6. Fairness – the person’s concern for impartiality and fairness for all concerned.
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Individual Values versus Organizational Values

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Espoused versus Enacted Values
• Espoused Values -- what members of the organization say they value.
• Enacted Values -- those that are reflected in the actual behavior of the individual members of thee
organization.

Instrumental and Terminal Values

Another classification of values may be presented as follows:
1. Terminal values – represent the goals that a person would like to achieve in his or her lifetime.
2. Instrumental values – refer to the preferable modes of behavior or means of achieving the terminal values.

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Attitudes
Attitudes are feelings and beliefs that largely determine how employees will perceive their
environment, commit themselves to intended actions, and ultimately behave.

The Main Components of Attitudes

Attitudes consist of the following components:
1. Cognitive component – refers to the opinion or belief segment of an attitude.
2. Effective component – refers to the emotional or feeling segment.
3. Behavioral component – refers to the intention to behave in a certain way toward someone or
something.

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Differences in Personal Disposition
• Positive affectivity refers to the personal characteristic of employees that inclines them to be
predisposed to be satisfied at work.
• Negative affectivity is a personal characteristic of employees that inclines them to be
predisposed to be dissatisfied at work.

How Attitudes Are Formed

o Direct experience – the most accessible.
o Indirect means of social learning – influence is not as strong as the direct experience.

Most Important Attitudes in the Workplace

The most important attitudes in the workplace are:
1. job satisfaction;
2. job involvement; and
3. organizational commitment.

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Effects of Employee Attitudes
Employee attitudes may be classified as either:
1. Positive job attitudes – indicate job satisfaction and are useful in predicting constructive behaviors.
2. Negative job attitudes – useful in predicting undesirable behavior.

When employees are dissatisfied with their jobs, they will have a strong tendency to engage in any
or all of the following:
3. psychological withdrawal;
4. physical withdrawal;
5. aggression.

Making Positive Attitudes Work for the Organization

There are various ways of changing employee attitudes. One is making the reward system closely tied
to individual or team performance.

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JOB SATISFACTION
Job satisfaction refers to the attitude people have about their jobs. In strict sense, it refers to
the positive feeling about one’s job resulting from an evaluation of its characteristics.

When people are satisfied with their jobs, the following benefits become possible:
1. High productivity; 5. Less job stress and burnout;
2. A stronger tendency to achieve customer loyalty; 6. Better safety performance;
3. Loyalty to the company; 7. Better life satisfaction.
4. Low absenteeism and turnover;

Factors Associated with Job Satisfaction

5. Salary 5. Relationship with co--workers
6. Work itself 6. Working conditions
7. Promotion opportunity 7. Job security
8. Quality of supervision

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Ways of Measuring Job Satisfaction
1. Single global rating method – that approach where individuals are asked to respond to a single question.
2. Summation score method – an approach where individuals indicate their feelings regarding each key factors of
their job.

JOB INVOLVEMENT
Job involvement refers to the degree to which a person identifies with the job, actively participates in it, and
considers performance important to self—worth.

ORGANIZATIONAL COMMITMENT
Organizational commitment refers to the degree to which an employee identifies with a particular
organization and its goals and wishes to maintain membership in the organization.

• Affective commitment refers to the employee’s emotional attachment to the organization and belief in its values.
• Continuance commitment refers to the employee’s tendency to remain in an organization because he cannot afford
to leave.
• Normative commitment refers to an obligation to remain with the company for moral or ethical reason.

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CHAPTER V.
MOTIVATION

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 Capacity to perform relates to the degree to which the employee possesses skills, abilities,
knowledge, and experiences relevant to his job.
 Opportunity to perform will depend on the work environment provided to the employee.
 Willingness to perform relates to the degree in which an employee desires and is willing to exert
effort to achieve the goals assigned to him.

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What is Motivation
Motivation may be defined as the process of activating behavior, sustaining it, and directing it
toward a particular goal.

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KEY ELEMENTS OF MOTIVATION
1. Intensity – the level of effort provided by the employee in the attempt to achieve the goal assigned to him.
2. Direction – what an individual chooses to do when he is confronted with a number of possible choices.
3. Persistence – a dimension of motivation which measures how long a person can maintain effort to achieve the
organization’s goals.

THEORIES OF MOTIVATION
Content theories – focus on analyzing the wants and needs of an individual.
1. Hierarchy of Needs Theory of Abraham Maslow
2. ERG Theory of Clayton Alderfer
3. Acquired Needs Theory of David L. McClelland
4. Two-factor Theory of Frederick Herzberg
Process theories – how people act in response to the wants and needs that they have.
1. Expectancy Theory of Victor Vroom
2. Equity Theory of J. Stacey Adams
3. Goal Setting Theory of Edwin A. Locke

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The Hierarchy of Needs Theory
A brief description of the needs is provided as follows:
1. Physiological needs Self-actualization
Esteem
2. Safety needs
Social
3. Social needs
Safety
4. Esteem needs
Physiological
5. Self-actualization needs
Figure 18
MASLOW’S HIERARCHY OF NEEDS
The ERG Theory
6. Existence
7. Relatedness
8. Growth

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Acquired Needs Theory
They found out that managers are motivated by three fundamentals needs which may be briefly
described as follows:
1. Need for achievement
2. Need for affiliation
3. Need for power

McClelland believed that the foregoing needs are acquired over time as a result of life experiences.
His research findings consist of the following:
1. People who have high achievement needs have the drive to advance and to
overcome challenging situations such as those faced by entrepreneurs in introducing
innovative new business;
2. An affiliation motivated person prefers to work with friends;
3. The need for power drives successful managers.

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The Two-factor Theory
Frederick Hezberg developed his two-factor theory that identifies job context as a source
of job dissatisfaction and job content as the source of job satisfaction.

The factors associated with job context are called hygiene factors which include the
following:
1. organizational policies
2. quality of supervision
3. working conditions
4. base wage or salary
5. relationship with peers
6. relationship with subordinates
7. status
8. security

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The Two-factor Theory
Improving any of the hygiene factors will not make people satisfied with their work; it will
only prevent them from being dissatisfied.

The job content relates more to what people actually do in their work. Those that are
related to job content called motivator factors and they consist of the following:
1. achievement
2. recognition
3. work itself
4. responsibility
5. advancement
6. growth

“ When the foregoing factors are not present, there is low job satisfaction among workers and there is
lack of motivation to perform.”

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Expectancy Theory
One of the process theories refer to the expectancy theory that was developed by Victor Vroom. This theory sees
people as choosing a course of action according to what they anticipate will give them the greatest rewards.
Vroom elaborated by explaining the motivation is a product of the following factors:
1. Valence
2. Expectancy
3. Instrumentality
The three factors are useful in deriving motivation. The formula is as follows:
Valence X Expectancy X Instrumentality = Motivation

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Equity Theory
Equity Theory may be defined as a theory that individuals compare job inputs and outcomes with those
of others and then respond to eliminate inequities.

Inequity leads to the experience of tension, and tension motivates a person to act in a manner to
resolve the inequity. The person, however, will be confronted with any of the two types o inequity:
1. over rewarded; or
2. under rewarded.
Employees who feel over rewarded will think there is an imbalance in their relationship with their
employer. They will seek to restore the balance through any of the following:
1. they might work harder;
2. they might discount the value of the rewards;
3. they could try to convince other employees to ask for more rewards; and
4. they might choose someone else for comparison purposes.

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 When employees feel under rewarded, they will seek to reduce their feelings of inequity through any of
the following:
1. they might lower the quality or quantity of their productivity;
2. they could inflate the perceived value of the rewards received;
3. they could find someone else to compare themselves;
4. they could bargain for more rewards; and
5. they might quit.

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Goal Setting Theory
Goal Setting Theory may be defined as the theory that specific and difficult goals, with feedback lead
to higher performance.
It was Edwin A. Locke and his associates who developed a comprehensive framework linking goals
to performance. Their findings about goals include the following:
1. Specific goals lead to a higher performance than generalized goals.
2. Performance generally increases in direct proportion to goal difficulty.
3. For goals to improve performance, they must be accepted by the workers.
4. Goals are more effective when they are used to evaluate performance.
5. Goals should be linked to feedback.

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MOTIVATIONAL METHODS AND PROGRAMS
Four motivational methods and programs are considered in this chapter. They are as follows:
1. Motivation through job design;
2. Organizational behavior modification;
3. Motivation through recognition and pride; and
4. Motivation through financials and incentives.

Motivation through Job Design

Job design may be defined as the way the elements in a job are organized.
Three concepts are important in designing jobs. They consist of the following:
5. Job enrichment;
6. Job characteristics model;
7. Job crafting.

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Job Enrichment
Job enrichment refers to the practice of building motivating factors like responsibility, achievement and recognition
into job content.

1. Direct feedback 6. Unique experience

2. Client relationships 7. Direct communication authority
3. New learning 8. Control over resources
4. Control over method 9. Personal accountability
5. Control over scheduling

Job Characteristics Model

Job characteristics model refers to the method of job design that focuses on the task and interpersonal demands of a
job.
6. Skill variety 4. Autonomy
7. Task identity 5. Feedback
8. Task significance

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Job Crafting
Job crafting refers to the physical and mental changes workers make in the task or relationship aspect of their jobs.

1. Changing the number and type of job tasks;

2. Changing the interaction with others; and
3. Changing one’s view of the job.

Organizational Behavior Modification (OB Mod)

OB Mod is the application of reinforcement theory in motivating people at work.

4. Identifying critical behaviors that make a significant impact on the employee’s job performance;
5. Developing baseline data which is obtained by determining the number of times the identified behavior is occurring under
present conditions;
6. Identifying behavioral consequences of performance.
7. Developing and implementing an intervention strategy to strengthen desirable performance behaviors and weaken
undesirable behaviors; and
8. Evaluating performance improvement.

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 Among the benefits of OB Mod are:
1. Improvement of employee productivity;
2. Reduction of errors, absenteeism, tardiness, and accident rates; and
3. Improvement of friendliness toward customers.

Motivation through Recognition and Pride

Recognition is a natural human need and it is a strong motivator. To make it an effective motivator, the following steps are
necessary:
4. Identify a meritorious behavior; and
5. Recognize the behavior with an oral, written, or material reward.

For better understanding and implementation of reward and recognition programs, the following points must be considered:
6. Feedback is an essential part of recognition;
7. Praise is one of the most powerful forms of recognition;
8. Reward and recognition programs should be limited to organizational goals;
9. Identification of the type of rewards and recognition that the workers will value; and
10. It is important to evaluate the effectiveness of the reward and the recognition program.

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 Pride is also a motivator, but one that is intrinsic. Workers who achieve outstanding performance experience
the emotion of pride. The feeling satisfies the need for self-esteem and self-fulfillment.

Motivation through Financial Incentives

Financial incentives take the form of any or a combination of the following:
1. time rates
2. payment by results
3. performance and profit related pay
4. skill/competency based pay
5. cafeteria or flexible benefits system

Time Rates
This type of monetary reward use the number of hours worked as a means of determining rewards. It may be
classified as hourly rate, or weekly wage, or monthly salary.

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The advantages of time rates are as follows:
1. It is open to inspection and equitable because employees doing the same job will be on the same grade level.
2. It encourages the retention of human resources by stability and this is because of the gradual increases in rewards within
the given grades.
3. It is relatively easy to administer and allows labor cost to be predicted.
4. It does not emphasize quantity of output to the detriment of quality.

The main disadvantage of time rates is that it does not motivate employees to become more productive.

Payment by Results
This scheme links pay to the quantity of the individual’s output.
The advantages of payment by results are the following:
5. The employee is motivated to put in extra effort because by doing so, he or she will receive additional income;
6. There is fairness because the level of reward is related to the level of output; and
7. There are likely to be cost advantages since wages are directly linked to production and less supervision is required.

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 The disadvantages of payment by result are as follows:
1. Outputs in certain jobs cannot be easily measured;
2. Safety standards may be compromised.
3. Workers may view payment by results as a device to obtain greater effort from them without commensurate rewards.

Performance Related Pay

This scheme considers results or output plus actual behavior in the job.
The advantages of performance related pay are as follows:
4. It increases employee beliefs (instrumentality) that reward will follow high performance;
5. Those that perform better are rewarded more; and
6. It is comparatively objective and verifiable.

The disadvantages are as follows:

7. cost rises along with the rewards;
8. the system is complex;
9. employees with declining energy may experience a decrease in total pay;
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4. the union may resist the incentive idea;
5. there is delay in the payment of incentives;
6. they system is rigid;
7. it is difficult to motivate higher performance across a broad range of employees.

Profit Related Pay

This is an organization wide scheme where pay is linked to company profits. Profit related pay takes the form of direct
cash outlay, or allocation of stock options.
Stock option is a financial incentive that gives employees the right to purchase a certain number of company shares at a
specified price, generally the market price of the stock on the day the option is granted.

The following are the advantages of profit related pay:

1. Employees identify more closely with the success of the organization;
2. There is a breaking down or removal of the communication barrier between management and employees;
3. Cooperation and working together for mutual benefit is encouraged;
4. Awareness of the link between performance and organizational profitability leads to a greater awareness of costs and their
impact on performance;
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5. When profits fall, the decline in pay is a preferable alternative to laying off employees; and
6. Group pressure could raise the performance levels of poor performers.

The disadvantages of profit related pay are as follows:

1. Profits are not directly related to an employee’s effort on the job, and this is a negative factor on motivation;
2. Employees must wait for their reward, and the delay diminishes its impact; and
3. Since profits are unpredictable, total worker income may vary from year to year. As a result, some workers may prefer the
stability of a fixed wage or salary.

Skill Based Pay

Also known as a competency based or knowledge based pay, this is a pay plan that sets pay levels on the basis of how
many skills employees have or how many jobs they can do:
The advantages of the skill based pay are the following:
4. It provides strong motivation for employees to develop their work-related skills;
5. It reinforces an employee’s sense of self-esteem; and
6. It provides the organization with a highly flexible workforce that can fill in when someone is absent.

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 The disadvantages are as follows:
1. Since most employees will voluntarily learn higher-level jobs, the average hourly pay rate will be greater than normal;
2. A substantial investment in employee training must be made especially in the time spent coaching by supervisors and peers;
3. Not all employees like skill based pay because it places pressure on them to move up the skill ladder; and
4. Some employees will qualify themselves for skill areas that they will unlikely use, causing the organization to pay them higher
rates than they deserve.

Cafeteria or Flexible Benefit System

This is a benefit plan that allows each employee to put together a benefit package individually tailored to his or her own
needs and situation.

The advantages of this plan are as follows:

5. It enables employees to choose options that best fit their own needs.
6. Deciding among the various options makes employees more aware of the benefits, giving them a real sense of the value of the
benefits their employers provide.
7. Flexible benefit plans can lower compensation costs because employers no longer have to pay for unwanted benefits.
8. Employers and employees can save on taxes.
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 The disadvantages of the plan are as follows:
1. It creates an administrative burden.
2. It can lead to the increased insurance premiums.

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ThankYou

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