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BME 12 Lecture Notes Kingfisher School of Business and Finance, Inc. Version 1 Series of 2025 BME 12: Human Behavior in Organization “This handout is for academic purposes ONLY” Prepared by: Mark Jeffrey B. Aquino (BME 12 Instructor) BME 12: HUMAN BEHAVIOR IN ORGANIZATION II. Individual Behaviors and Organization Processes in Organization Chapter 4: Individual Values Perception and Reaction (Narrative of Discussion) Book Reference: Organizational Behavior: Managing People and Organization Author: Ricky Griffin, Jean Phillips, Stanley Gully I. ATTITUDES IN ORGANIZATIONS People’s attitudes obviously affect their behavior in organizations. Attitudes are complexes of beliefs and feelings that people have about specific ideas, situations, or other people. A. How Attitudes Are Formed Attitudes are formed by a variety of forces, including our personal values, our experiences, and our personalities. THREE COMPONENTS OF ATTITUDE 1. Cognition is the knowledge a person presumes to have about something. This “knowledge” may be true, partially true, or totally false. Cognitions are based on perceptions of truth and reality, and, as we note later, perceptions agree with reality to varying degrees. 2. A person’s affect is his or her feelings toward something. In many ways, affect is similar to emotion—it is something over which we have little or no conscious control. 3. Intention guides a person’s behavior However, intentions are not always translated into actual behavior. Some attitudes, and their corresponding intentions, are much more central and significant to an individual than others. You may intend to do one thing (take a particular class) but later alter your intentions because of a more significant and central attitude (fondness for sleeping late). B. Cognitive Dissonance Suppose that you strongly believe that all companies need to be both profitable and environmentally responsible, and that you are the new CEO of a company that is a terrible polluter. You learn that reducing your company’s carbon emissions would be so expensive that the company would no longer be profitable. What would you do? Cognitive dissonance is an incompatibility or conflict between behavior and an attitude or between two different attitudes. When people experience dissonance, they often use one of four approaches to cope with it. Using the scenario above, these would include: 1. You can change your behavior and reduce the company’s carbon emissions. 2. You can reduce the felt dissonance by reasoning that the pollution is not so important when compared to the goal of running a profitable company. 3. You can change your attitude toward pollution to decrease your belief that pollution is bad. 4. You can seek additional information to better reason that the benefits to society of manufacturing the products outweigh the societal costs of polluting. Interestingly, though, sometimes people are aware of their dissonance but make a conscious decision to not reduce it. This decision would be influenced by these three things: 1. Your perception of the importance of the elements that are creating the dissonance. If the elements involved in the dissonance are less important to you, it is easier to ignore. 2. The amount of influence you feel you have over these elements. If the Board of Directors blocks your plans, it is easier to rationalize the dissonance and not take action. 3. The rewards involved in the dissonance. Rewards for dissonance tend to decrease our reactions to it. C. Attitude Change Attitudes are not as stable as personality attributes. For example, new information may change attitudes. Likewise, if the object of an attitude changes, a person’s attitude toward that object may also change. Attitudes can also change when the object of the attitude becomes less important or less relevant to the person. Finally, as noted earlier, individuals may change their attitudes as a way to reduce cognitive dissonance. Deeply rooted attitudes that have a long history are, of course, resistant to change.
BME 12 Lecture Notes Kingfisher School of Business and Finance, Inc. Version 1 Series of 2025 BME 12: Human Behavior in Organization “This handout is for academic purposes ONLY” Prepared by: Mark Jeffrey B. Aquino (BME 12 Instructor) D. Key Work-Related Attitudes People in an organization form attitudes about many different things. Of course, some of these attitudes are more important than others. Especially important attitudes are job satisfaction, organizational commitment, and employee engagement. 1. Job Satisfaction – it reflects our attitudes and feelings about our job. Factors that have the greatest influence on job satisfaction are the work itself, attitudes, values, and personality. Satisfaction with the nature of the work itself is the largest influence on job satisfaction. Challenging work, autonomy, variety, and job scope also increase job satisfaction. As a manager, if you want to increase your subordinates’ job satisfaction, focus first on improving the nature of the work they do. Our attitudes and values about work also influence our job satisfaction. Someone with a negative attitude toward work is less likely to be satisfied with any job than someone with a positive attitude toward work. Interestingly, our job satisfaction is somewhat stable over time, even when we change jobs or employers. Research evidence suggests that differences in job satisfaction are due in part to differences in employees’ genetics and personality. In particular, core self-evaluation, extroversion, and conscientiousness influence job satisfaction. (Are happy employees really more productive employees? The answer is yes. And the positive relationship between job satisfaction and job performance is even stronger for complex, professional jobs.) Job satisfaction positively influences employees’ attitudes and organizational citizenship behaviors. Conversely, job dissatisfaction is related to higher absenteeism and turnover, as well as to other withdrawal behaviors such as lateness, drug abuse, grievances, and retirement decisions. 2. Organizational Commitment – it reflects the degree to which an employee identifies with the organization and its goals and wants to stay with the organization. There are three ways we can feel committed to an employer: a. Affective commitment Is a positive emotional attachment to the organization and strong identification with its values and goals. Affective commitment leads employees to stay with an organization because they want to, and is related to higher performance. b. Normative commitment Occurs when an employee feels obliged to stay with an organization for moral or ethical reasons. Normative commitment is related to higher performance and leads employees to stay with an organization because they feel they should. c. Continuance commitment Refers to an employee staying with an organization because of the perceived high economic and/or social costs involved with leaving. Continuance commitment leads employees to stay with an organization because they feel that they have to. 3. Employee Engagement Employee engagement is “a heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or coworkers that, in turn, influences him/her to apply additional discretionary effort to his/her work.” Engaged employees give their full effort to their jobs, often going beyond what is required because they are passionate about the firm and about doing their jobs well. Rather than wanting to do the work and wanting to do their best, disengaged workers feel they have to do the work, and generally do only what they have to do as a result. High employee engagement is related to superior business performance. As a manager, remember that the drivers of employee engagement can differ from the drivers of employee attraction and retention—what gets employees into an organization is not the same as what keeps them engaged and keeps them from leaving. Engagement is enhanced when employees:  Have clear goals and roles  Have the resources needed to do a good job  Get meaningful feedback on their performance  Are able to use their talents  Are recognized for doing a good job
BME 12 Lecture Notes Kingfisher School of Business and Finance, Inc. Version 1 Series of 2025 BME 12: Human Behavior in Organization “This handout is for academic purposes ONLY” Prepared by: Mark Jeffrey B. Aquino (BME 12 Instructor)  Have positive relationships with coworkers  Have opportunities to learn and grow  Have supportive leadership  II. VALUES AND EMOTIONS IN ORGANIZATIONS Values are ways of behaving or end-states that are desirable to a person or to a group. Values can be conscious or unconscious. Work values influence important individual and organizational outcomes including performance and retention, and are often considered to be important work outcomes in themselves. A company leader’s personal values affect the firm’s business strategy and all aspects of organizational behavior including staffing, reward systems, manager–subordinate relationships, communication, conflict management styles, and negotiation approaches. Personal values also influence ethical choices. A. Types of Values Values can be described as terminal or instrumental, and as intrinsic or extrinsic. 1. Terminal and Instrumental Values Terminal values reflect our long-term life goals, and may include prosperity, happiness, a secure family, and a sense of accomplishment. Terminal values can change over time depending on our experiences and accomplishments. Instrumental values are our preferred means of achieving our terminal values or our preferred ways of behaving. Terminal values influence what we want to accomplish; instrumental values influence how we get there. The stronger an instrumental value is, the more we act on it. 2. Intrinsic and Extrinsic Work Values Intrinsic work values relate to the work itself. Most people need to find some personal intrinsic value in their work to feel truly satisfied with it. Extrinsic work values are related to the outcomes of doing work. Employees who work to earn money or to have health benefits are satisfying extrinsic work values. B. Conflicts among Values Intrapersonal, interpersonal, and individual-organization value conflicts all influence employee attitudes, retention, job satisfaction, and job performance. At some point in their career, many managers experience an intrapersonal value conflict between the instrumental value of ambition and the terminal value of happiness. People are generally happier and less stressed when their instrumental and terminal values are aligned. Unlike intrapersonal value conflicts, which are internal to an individual, interpersonal value conflicts occur when two different people hold conflicting values. Interpersonal value conflicts are often the cause of personality clashes and other disagreements. As a manager, it is important to remember that people’s constellations of instrumental and terminal values differ. These differences can lead to differences in work styles, work preferences, and reactions to announcements or events. Finally, just as two different employees’ values can conflict, an employee’s values can conflict with the values of the organization, creating individual-organization value conflict. Lower individual-organization value conflict leads to greater job satisfaction, higher performance, lower stress, and greater job commitment. C. How Values Differ around the World Values are influenced by culture. Research has found that a large number of basic values can be condensed into two major dimensions that vary across cultures: (1) traditional/secular-rational values reflect the contrast between societies in which religion is very important and those in which it is not. (2) survival/self-expression values. emphasize economic and physical security. D. The Role of Emotions in Behavior Emotions also play an important role in organizations. Employees who effectively manage their emotions and moods can create a competitive advantage for a company.
BME 12 Lecture Notes Kingfisher School of Business and Finance, Inc. Version 1 Series of 2025 BME 12: Human Behavior in Organization “This handout is for academic purposes ONLY” Prepared by: Mark Jeffrey B. Aquino (BME 12 Instructor) We all experience emotions at work. Our behaviors are not guided solely by conscious, rational thought. In fact, emotion often plays a larger role in our behaviors than does conscious reasoning. Emotions are intense, short-term physiological, behavioral, and psychological reactions to a specific object, person, or event that prepare us to respond to it. Let’s break this definition down into its four important elements: 1. Emotions are short events or episodes and relatively short-lived. 2. Emotions are directed at something or someone; differentiating them from moods. 3. Emotions are experienced; we feel emotion. 4. Emotions create a state of physical readiness through physiological reactions. Why is understanding the role of emotions important to organizations? First, because emotions are malleable, effective employees and managers know how to positively influence their own emotions and the emotions of others. Second, emotions influence both the creation and maintenance of our motivation to engage or to not engage in certain behaviors. Third, research has found that emotion can influence turnover, decision making, leadership, helping behaviors, and teamwork behaviors. Effective leaders use emotion to generate positive follower behaviors. E. Affect and Mood Although the cause of emotions tends be obvious, the cause of mood tends to be more unfocused and diffused. Moods are short-term emotional states that are not directed toward anything in particular. Our mood at the start of a workday influences how we see and react to work events, which influences our performance. Our moods can be influenced by others. Workgroups tend to experience shared group moods when they can display mood information to each other through facial, vocal, and behavioral cues. Changing group membership in a way that changes the manner in which coworkers interact can change the amount and type of mood information members get from each other and influence employees’ moods. Affectivity represents our tendency to experience a particular mood or to react to things with certain emotions The two dominant dimensions of mood are positive affect, which reflects a combination of high energy and positive evaluation characterized by emotions like elation, and negative affect, which comprises feelings of being upset, fearful, and distressed. Positive and negative affect are not opposites, but are two distinct dimensions. Affect tends to be somewhat dispositional and fairly stable over time. Negative affect is related to lower organizational citizenship behaviors, greater withdrawal and counterproductive work behaviors, lower job satisfaction, and greater injuries. Higher positive affect is related to increased creativity, openness to new information, and efficient decision making. Positive affectivity also increases the likelihood of cooperation strategies in negotiations, improving the results. III. PERCEPTION IN ORGANIZATIONS Perception is the set of processes by which an individual becomes aware of and interprets information about the environment People perceive the same things in very different ways. Moreover, people often assume that reality is objective and that we all perceive the same things in the same way. Since perception plays a role in a variety of workplace behaviors, managers should understand basic perceptual processes. Through perceptual processes, the receiver assimilates the varied types of incoming information for the purpose of interpreting it. A. Basic Perceptual Processes Two basic perceptual processes are particularly relevant to managers—selective perception and stereotyping. 1. Selective Perception Selective perception is the process of screening out information that we are uncomfortable with or that contradicts our beliefs. 2. Stereotyping Stereotyping is categorizing or labeling people on the basis of a single attribute. Certain forms of stereotyping can be useful and efficient.