2 Individual Behavior Values and Personality Mc Graw-Hill Irwin

Engagement at Owens Corning is making employee engagement a cornerstone of its business strategy to become a world-class organization. Mc. Shane/Von Glinow OB 4 e Slide 2 -2 Reprinted with permission of Owens Corning. All rights reserved © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Employee Engagement Defined The employee’s emotional and cognitive (rational) motivation, ability to perform the job, clear understanding of the organization’s vision and his/her specific role in that vision, and a belief that he/she has the resources to get the job done Mc. Shane/Von Glinow OB 4 e Slide 2 -3 Reprinted with permission of Owens Corning. All rights reserved © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

MARS Model of Individual Behavior Role Perceptions Values Personality Motivation Individual Behavior and Results Perceptions Emotions Attitudes Ability Situational Factors Stress Mc. Shane/Von Glinow OB 4 e Slide 2 -4 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Employee Motivation • Internal forces that affect a person’s voluntary choice of behavior. Motivational elements are: – direction – intensity – persistence M R BAR A Mc. Shane/Von Glinow OB 4 e Slide 2 -5 S © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Employee Ability • Natural aptitudes (natural talents) and learned capabilities (skills and knowledge) required to successfully complete a task – competencies personal characteristics that lead to superior performance – person job matching • selecting the best • training & developing • redesigning jobs M BAR A Mc. Shane/Von Glinow OB 4 e Slide 2 -6 R S © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Employee Role Perceptions • Beliefs about what behavior is required to achieve the desired results: – understanding what tasks to perform – understanding relative importance of tasks – understanding preferred behaviors to accomplish tasks M R BAR A Mc. Shane/Von Glinow OB 4 e Slide 2 -7 S © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Situational Factors • Environmental conditions beyond the individual’s short-term control that constrain or facilitate behavior. Controllable factors are: – time – people – budget – work facilities M R BAR A Mc. Shane/Von Glinow OB 4 e Slide 2 -8 S © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Types of Behavior in Organizations Task Performance Organizational Citizenship • Goal-directed behaviors under person’s control • Performance beyond the required job duties more Mc. Shane/Von Glinow OB 4 e Slide 2 -9 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Types of Behavior in Organizations Counterproductive • Voluntary behavior that potentially harms the organization Work Behaviors Joining/staying with the Organization • Goal-directed behaviors under person’s control Maintaining Work • Attending work at required times Attendance Mc. Shane/Von Glinow OB 4 e Slide 2 -10 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Values in the Workplace • Values are stable, evaluative beliefs that guide our preferences for outcomes. A value is a principle, a standard, or a quality considered worthwhile or desirable. • They define the right or wrong, good or bad • Value system -- hierarchy of values • Espoused vs. Enacted values: – Espoused -- the values we say we use and often think we use – Enacted -- values we actually rely on to guide our decisions and actions Mc. Shane/Von Glinow OB 4 e Slide 2 -11 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Three Categories of Values • Personal values define who an individual is. They serve as guides in handling situations and interacting with others. • Organizational values are the standards that guide an individual's behavior in a professional context. They define how an individual accomplishes work, interacts in professional situations, and how he makes decisions relative to his job/career. • Cultural values are standards that guide how a person relates meaningfully to others in different social situations. Mc. Shane/Von Glinow OB 4 e Slide 2 -12 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Schwartz’s Values Model Self-transcendence Openness to Change Conservation Self-enhancement Mc. Shane/Von Glinow OB 4

Values and Behavior • • Habitual behavior tends to be consistent with our values, but our everyday conscious decisions and actions apply our values much less consistently. Decisions and behaviors linked to values when: 43 1. Mindful and conscious of our values 2. Have logical reasons to apply values in that situation 3. Situation does not interfere Mc. Shane/Von Glinow OB 4 e Slide 2 -14 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Values Congruence at Coles Integrity -- Respect/recognition -- Passion for excellence -- Working tog More than 2, 300 Coles employees across all levels participated in 203 focus groups around the country. Their objective: to identify a set of values for Australia’s second largest retailer that would be congruent with their personal values. Armen Dueschian/Newspix Mc. Shane/Von Glinow OB 4 e Slide 2 -15 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Values Congruence • Values congruence -- where two or more entities have similar value systems • Problems with incongruence – Incompatible decisions – Lower satisfaction and commitment – Increased stress and turnover • Benefits of (some) incongruence – Better decision making (diverse values) – Enhanced problem definition – Prevents “corporate cults” Armen Dueschian/Newspix Mc. Shane/Von Glinow OB 4 e Slide 2 -16 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Individualism- Collectivism High Peru Italy Collectivism Portugal Taiwan Nigeria PR China India Mexico Hungary Chile Hong Korea United States France Japan New Australia Singapore Zealand Egypt Low Mc. Shane/Von Glinow OB 4 e Individualism Slide 2 -17 High © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Power Distance High Power Distance Malaysia Venezuela Japan The degree that people accept an unequal distribution of power in society U. S. Denmark Israel Low Power Distance Mc. Shane/Von Glinow OB 4 e Slide 2 -18 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Uncertainty Avoidance High U. A. Greece Japan Italy U. S. The degree that people tolerate ambiguity (low) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance). Singapore Low U. A. Mc. Shane/Von Glinow OB 4 e Slide 2 -19 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Achievement-Nurturing Achievement Japan The degree that people value assertiveness, competitiveness, and materialism (achievement) versus relationships and well-being of others (nurturing) China U. S. France Chile Sweden Nurturing Mc. Shane/Von Glinow OB 4 e Slide 2 -20 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Ethics • Ethics is a system of moral values that govern a person's conduct. Values and ethics, together, define a person • Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad. • People rely on ethical values to determine ‘the right thing to do’. Mc. Shane/Von Glinow OB 4 e Slide 2 -21 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Three Ethical Principles Utilitarianism Individual Rights Distributive Justice Mc. Shane/Von Glinow OB 4 e Greatest good for the greatest number of people Fundamental entitlements in society People who are similar should receive similar benefits Slide 2 -22 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Influences on Ethical Conduct • Moral intensity – degree to which an issue demands the application of ethical principles • Ethical sensitivity – ability to recognize the presence and determine the relative importance of an ethical issue • Situational influences – competitive pressures and other conditions affect ethical behavior Mc. Shane/Von Glinow OB 4 e Slide 2 -23 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Supporting Ethical Behavior • Ethical code of conduct – Establishes standards of behavior – Problem: Limited effect alone on ethical behavior • Ethics training – Awareness and clarification of ethics code – Practice resolving ethical dilemmas • Ethics officers – Educate and counsel; hear about wrongdoing • Ethical leadership and culture – Demonstrate integrity and role model ethical conduct Mc. Shane/Von Glinow OB 4 e Slide 2 -24 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Defining Personality Relatively stable pattern of behaviors and consistent internal states that explain a person's behavioral tendencies Mc. Shane/Von Glinow OB 4 e Slide 2 -25 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Big Five Personality Dimensions Conscientiousness Agreeableness Neuroticism Openness to Experience Extroversion Mc. Shane/Von Glinow OB 4 e Careful, dependable, self-disciplined Courteous, caring, good-natured Anxious, hostile, depressed Sensitive, flexible, creative, curious Outgoing, talkative, sociable, assertive Slide 2 -26 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Myers-Briggs Type Indicator Extroversion Introversion Sensing vs. Intuition Thinking vs. Feeling Judging Mc. Shane/Von Glinow OB 4 e vs. Perceiving Slide 2 -27 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Locus of Control and Self-Monitoring • Locus of control – Internal beliefs in ones effort and ability – External beliefs events are mainly due to external causes • Self-monitoring personality – Sensitivity to situational cues, and ability to adapt your behavior to that situation Mc. Shane/Von Glinow OB 4 e Slide 2 -28 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.

Holland’s Occupational Choice Theory • Career success depends on fit between the person and work environment • Holland identifies six “themes” – Represent work environment and personality traits/interests • A person aligned mainly with one theme is highly differentiated • A person has high consistency when preferences relate to adjacent themes Mc. Shane/Von Glinow OB 4 e Slide 2 -29 © 2008 The Mc. Graw-Hill Companies, Inc. All rights reserved.