Chapter 15 – Understanding and Managing Individual Behavior

Organizational Behavior (OB) focuses on understanding and managing

people's actions at work. It looks at both individual behavior (such as
attitudes, personality, perception, and motivation) and group behavior (like
norms, roles, team building, leadership, and conflict).
Focus of Organizational Behavior
1. Individual Behavior: Deals with how individuals act, their attitudes,
personality, learning, and what motivates them.
2. Group Behavior: Looks at how people behave in groups, including
leadership, team roles, and conflicts.
Goals of Organizational Behavior
The main goals of OB are to:
1. Explain why employees act in certain ways.
2. Predict how they will react to decisions.
3. Influence their behavior to improve outcomes.
Key Employee Behaviors to Understand
1. Productivity: Measures how effective and efficient employees are.
2. Absenteeism: When employees don't show up for work, which can cost
companies significantly.
3. Turnover: The rate at which employees leave the organization, which can
lead to high recruitment and training costs.
4. Organizational Citizenship Behavior (OCB): Voluntary actions like
helping others at work that aren’t part of the job description but improve
the organization’s functioning.
5. Job Satisfaction: An employee's general attitude toward their job, which
influences their commitment, performance, and likelihood to stay.
6. Counterproductive Workplace Behavior: Harmful actions like
aggression or deviance that negatively affect the organization.
Psychological Factors Affecting Behavior
1. Attitudes: How employees feel about their jobs.
2. Personality: Individual traits that affect behavior.
3. Perception: How employees interpret their work environment.
4. Learning: How employees acquire knowledge and adapt to their roles.
Attitudes are evaluative statements, either positive or negative, about people,
objects, or events. They consist of three components:
1. Cognitive: Beliefs or opinions (e.g., “Discrimination is wrong”).
2. Affective: Emotional feelings (e.g., “I don’t like Pat because he
discriminates”).
3. Behavioral: Intentions to act (e.g., “I avoid Pat because of his behavior”).
Job-related attitudes are particularly important for managers. The four most
relevant attitudes are:
1. Job Satisfaction: A person’s overall attitude toward their job. High
satisfaction means a positive attitude; dissatisfaction leads to a negative
attitude.
2. Job Involvement: How much employees identify with their job.
3. Organizational Commitment: The emotional attachment to and
involvement with the organization.
4. Employee Engagement: The level of enthusiasm and connection
employees have with their work.
Job Satisfaction and Its Impact
1. Job Satisfaction and Performance: Research shows that employees
who are satisfied with their jobs tend to perform better, making
organizations more effective.
2. Job Satisfaction and Absenteeism: Satisfied employees generally have
lower absenteeism rates. However, when job alternatives exist or liberal
sick leave policies are in place, absenteeism rates may not vary much
between satisfied and dissatisfied employees.
3. Job Satisfaction and Turnover: A stronger link exists between job
satisfaction and turnover. Dissatisfied employees are more likely to leave,
especially when other job opportunities are available.
4. Job Satisfaction and Customer Satisfaction: Satisfied employees lead
to satisfied customers, especially in service industries, by being more
positive, friendly, and consistent.
 5. Job Satisfaction and Organizational Citizenship Behavior (OCB):
Satisfied employees are more likely to help others, speak positively about
the organization, and go beyond basic job expectations. Trust plays a
significant role in fostering OCB.
6. Job Satisfaction and Counterproductive Behavior: Dissatisfied
employees may engage in harmful behaviors like stealing, absenteeism,
and gossip. Addressing dissatisfaction directly is more effective than trying
to manage the negative behaviors.

Job Involvement is the degree to which an employee identifies with their job,
actively participates in it, and considers their job performance important to their
self-worth. Employees with high job involvement care deeply about their work,
leading to positive contributions, fewer absences, lower resignation rates, and
higher engagement.

Organizational Commitment refers to an employee's emotional attachment to

and identification with the organization. It is more about staying loyal to the
company itself rather than just the job. Employees with high organizational
commitment are less likely to be absent or leave, making it a better predictor of
turnover than job satisfaction. Although the importance of organizational
commitment has diminished in today's workforce, where employees change jobs
more frequently, high perceived organizational support (when employees
believe their organization values them) still leads to greater job satisfaction and
lower turnover.

Employee Engagement is a measure of an employee’s involvement,

satisfaction, and enthusiasm for their work. Engaged employees are passionate
about their work, are more likely to be top performers, and contribute to better
company performance by being more productive and having lower turnover
rates. However, globally, engagement levels remain low, with only a small
percentage of employees describing themselves as truly engaged.
People generally seek consistency between their attitudes and behavior. When
there is inconsistency, known as cognitive dissonance, individuals feel
discomfort and try to reduce it by changing their attitudes, behaviors, or
rationalizing the inconsistency. The likelihood of reducing dissonance depends
on:
1. The importance of the dissonance.
2. The degree of influence a person believes they have over the situation.
3. The rewards involved in maintaining the dissonance.
Attitude surveys are tools that organizations use to measure employees'
feelings about their jobs, work groups, supervisors, and overall organization.
These surveys consist of statements or questions designed to elicit specific
information managers need to understand employee attitudes. The results are
scored and averaged across groups or departments, providing valuable insights
into employee satisfaction and workplace conditions.
For example, Ford Motor Company uses an "Employee Satisfaction Index" to
measure how employees feel about training and recognition, helping managers
develop and evaluate improvement plans. Regular attitude surveys can uncover
gaps between how managers perceive policies and how employees actually
experience them.

Implications for Managers - Summary

1. Attitude Influence: Managers should pay attention to employee
attitudes because they directly influence behavior. Satisfied and
committed employees are less likely to resign or be absent, particularly
the more productive employees.
2. Job Satisfaction Factors: Managers can improve job satisfaction by
ensuring work is challenging, providing fair rewards, fostering supportive
working conditions, and encouraging positive relationships with
colleagues.
3. Employee Feedback: Regular attitude surveys give managers critical
feedback about job satisfaction and workplace conditions, allowing them
to make data-driven improvements.
4. Managing Cognitive Dissonance: Employees will seek to reduce
cognitive dissonance. Managers can ease this tension by providing
external justifications (e.g., customer demands) or offering rewards to
balance any discomfort employees may feel about performing tasks that
go against their attitudes.
Personality - Summary
Personality refers to the combination of emotional, thought, and behavioral
patterns that determine how individuals react to situations and interact with
others. It is often described using traits like extroverted, loyal, tense, or sociable.
Personality plays a significant role in determining why people behave the way
they do at work.
Two dominant frameworks used to describe personality are:
1. Myers-Briggs Type Indicator (MBTI): A popular tool that categorizes
individuals into 16 personality types based on preferences in how they
perceive the world and make decisions.

2. Big Five Model: A scientifically supported framework that categorizes

personality into five dimensions: openness, conscientiousness,
extraversion, agreeableness, and neuroticism.
Myers-Briggs Type Indicator (MBTI®) - Summary
The MBTI® is a popular personality assessment used in various organizational
settings. It categorizes people into 16 different personality types based on four
dimensions:
1. Extraversion (E) vs. Introversion (I):
o Extraversion: Outgoing, social, prefers action-oriented
environments.
o Introversion: Quiet, prefers solitary and concentrated work
environments.
2. Sensing (S) vs. Intuition (N):
o Sensing: Practical, detail-oriented, prefers routine and order.

o Intuition: Big-picture thinkers, prefer innovation and solving new

problems.
3. Thinking (T) vs. Feeling (F):
o Thinking: Logical, unemotional, focus on objectivity in decision-
making.
o Feeling: Emotionally aware, value-driven, focus on harmony and
empathy.
4. Judging (J) vs. Perceiving (P):
o Judging: Structured, decisive, prefer organized and controlled
environments.
o Perceiving: Flexible, adaptable, prefer spontaneity and
exploration.
The Big Five Model - Summary
The Big Five Model is a widely supported framework in psychology for
understanding personality. It includes five key dimensions that describe human
personality and predict behaviors in various life situations:
1. Extraversion:
o Describes how sociable, talkative, assertive, and comfortable a
person is in relationships.
o Extraverts perform well in jobs requiring social interaction (e.g.,
managerial or sales roles) and tend to have higher job satisfaction.
2. Agreeableness:
o Reflects how good-natured, cooperative, and trusting a person is.

o Agreeable individuals excel in roles requiring interpersonal

interactions, such as customer service.
3. Conscientiousness:
 o Measures reliability, responsibility, persistence, and achievement
orientation.
o Conscientiousness is the strongest predictor of job performance.
Conscientious individuals tend to acquire more job knowledge,
perform better, and engage in organizational citizenship behavior
(OCB).
4. Emotional Stability (vs. Neuroticism):
o Indicates how calm, enthusiastic, and secure (or tense and
insecure) someone is.
o Those with high emotional stability experience greater life and job
satisfaction, are less likely to burn out, and can adapt well to
workplace demands.
5. Openness to Experience:
o Reflects curiosity, imagination, and creativity.

o People high in openness tend to be more creative, adaptable to

change, and effective leaders.
Key Findings:
 Extraversion correlates with leadership and job satisfaction.
 Agreeableness helps in roles requiring cooperation.
 Conscientiousness is the best predictor of job performance and
adaptability.
 Emotional Stability leads to lower stress and higher job satisfaction.
 Openness fosters creativity, leadership, and adaptability to change.
The Dark Triad - Summary
The Dark Triad refers to three personality traits often linked to undesirable,
toxic behavior in the workplace. These traits are Machiavellianism,
narcissism, and psychopathy. While these traits may not always appear
together, individuals high in these traits can manipulate situations and others to
their advantage, often at the expense of the organization.
1. Machiavellianism:
o Named after Niccolò Machiavelli, it describes individuals who are
pragmatic, emotionally distant, and believe that the ends justify the
means.
o High-Mach individuals manipulate others to achieve short-term
success but often lose long-term because they are not well-liked.
2. Narcissism:
o Characterized by a grandiose sense of self-importance, a need for
excessive admiration, arrogance, and a lack of empathy.
 o Narcissists tend to exploit others and have a sense of entitlement.
They may rise to leadership roles due to their charisma but are
often linked to unethical behavior.
3. Psychopathy:
o In this context, it refers to individuals who lack concern for others,
feel no guilt or remorse, and often engage in antisocial behavior.
o In leadership roles, psychopaths may use threats, manipulation, and
bullying to achieve their goals.
These traits can be challenging to detect, especially in short-term interactions
like job interviews, as individuals with toxic traits may use impression
management skills to appear more favorable.
Other Personality Insights
 Locus of Control: People with an internal locus of control believe they
control their own destiny, whereas those with an external locus of
control believe external forces control their lives. Internals tend to be
more satisfied with their jobs and take more responsibility for their
performance.
 Self-Esteem: High self-esteem (SE) is associated with higher job
satisfaction and willingness to take risks. People with low SE are more
dependent on external validation and may conform more easily to others'
expectations.
 Self-Monitoring: Individuals high in self-monitoring can adapt their
behavior to different situations and are more likely to succeed in roles
requiring flexibility and adaptability. Low self-monitors display consistent
behavior across all situations.
 Risk-Taking: People vary in their risk-taking propensity, with high-risk-
takers making quicker decisions and using less information. High-risk-
taking can be beneficial in fast-paced jobs (e.g., trading) but may be a
disadvantage in roles that require careful, precise work (e.g., accounting).
 Proactive Personality: Proactive individuals take initiative to create
change and improve situations. They tend to have higher job performance,
need less supervision, and are often seen as leaders and agents of change
in organizations.
Personality Types in Different Cultures
Personality frameworks like the Big Five Model tend to transfer across cultures,
but with some variation in how the traits are emphasized. Studies across
countries such as China, Israel, Japan, the United States, and Nigeria have shown
that the Big Five traits—extraversion, agreeableness, conscientiousness,
emotional stability, and openness to experience—are relevant in diverse
cultural contexts. For example, conscientiousness is a valid predictor of job
performance across many cultures, though certain cultures, such as the Chinese,
might emphasize it more than traits like agreeableness, which may be more
prominent in the American context.
In contrast, personality traits like locus of control—which refers to whether
individuals believe they control their own fate (internal) or are subject to external
forces (external)—vary significantly across cultures. For instance, people in
North American cultures are more likely to believe they control their
environment, reflecting an internal locus of control, whereas Middle Eastern
cultures often believe that life events are predetermined, indicating a more
external locus of control.
Emotions and Emotional Intelligence (EI)
Emotions play a significant role in workplace behavior, and personality largely
determines how individuals manage and express emotions. Emotions are
intense feelings directed at someone or something, and people vary widely in
how they respond to similar stimuli based on their personalities and job
requirements.
There are six universal emotions:
1. Anger
2. Fear
3. Sadness
4. Happiness
5. Disgust
6. Surprise
In the workplace, the ability to manage emotions is critical. Some jobs, such as
air traffic controllers and ER nurses, demand emotional control, while others, like
public speakers or trial lawyers, require emotional adaptability.
Emotional Intelligence (EI)
Emotional Intelligence (EI) refers to the ability to manage and understand
emotions in oneself and others. It consists of five dimensions:
1. Self-awareness: Recognizing one's emotions.
2. Self-management: Managing one's emotional reactions.
3. Self-motivation: Persisting through setbacks.
4. Empathy: Understanding others' emotions.
5. Social skills: Managing relationships and handling emotions in others.
Studies have shown that EI is positively related to job performance, especially in
roles requiring high social interaction. For example, engineers at Lucent
Technologies and Air Force recruiters with high EI performed better than their
peers. However, some critics argue that EI is vague, hard to measure, and lacks
validity. Despite the debate, EI is recognized as an important factor for success
in jobs demanding interpersonal skills.
Understanding personality differences can significantly enhance recruitment and
hiring processes. Approximately 80% of private companies in the U.S. utilize
personality tests to identify suitable candidates, which can lead to higher
employee performance and satisfaction. Here are key implications for managers
based on personality assessments:
1. Assess Vocational Interests: During the hiring process, evaluate
candidates’ vocational interests to ensure a match with job requirements.
Aligning interests with job roles can lead to improved performance and
retention, as employees are more likely to be satisfied when their job
aligns with their personality.
2. Focus on Conscientiousness: If seeking a personality trait linked to
superior job performance, prioritize candidates who score high on
conscientiousness. Individuals with this trait are typically dependable,
organized, and hardworking, leading to better job performance across
various roles.
3. Emotional Intelligence in Hiring: For positions where social interaction
is crucial, especially in managerial roles, prioritize candidates with high
emotional intelligence (EI). Those with strong EI can effectively
manage emotions, empathize with others, and navigate social
complexities in the workplace, contributing positively to team dynamics
and overall organizational health.
4. Screen for Dark Triad Traits: Conduct thorough screenings, including
intensive interviews and reference checks, to identify candidates with
Dark Triad traits (Machiavellianism, narcissism, and psychopathy).
Although such individuals may present some appealing qualities, their
toxic traits can disrupt workplace environments. If a hiring mistake occurs,
address it quickly—preferably during the candidate’s probationary period
—to minimize negative impacts.

Perception and Attribution Theory

Perception is the process through which we interpret and give meaning to our
environment based on sensory impressions. This process is influenced by
various factors, leading to different interpretations of the same situation.
Factors That Influence Perception
1. Personal Characteristics of the Perceiver: An individual’s attitudes,
personality, motives, interests, experiences, and expectations significantly
shape their perceptions. For instance, older workers may view tattoos in
the workplace negatively, while younger employees may not have the
same perception, reflecting generational differences in attitudes towards
tattoos.
2. Characteristics of the Target: The traits of the person or object being
observed also affect perception. For example, loud or exceptionally
attractive individuals are more likely to attract attention than their quieter
or less attractive counterparts. Additionally, the context, such as the
target's relationship to their background, can influence perception.
3. Context of the Perception: The environment in which an object or event
is perceived matters. Factors such as time, location, lighting, and even
temperature can impact how we perceive things.
Attribution Theory
Attribution theory explains how we make judgments about people's behaviors
and the reasons behind them. Unlike inanimate objects, individuals have
beliefs, motives, and intentions, prompting us to infer their behavior.
Key Concepts in Attribution Theory
1. Internal vs. External Causes:
o Internally Caused Behaviors: Behaviors perceived to stem from
the individual's personal control.
o Externally Caused Behaviors: Behaviors believed to result from
external factors or situational pressures.
2. Three Factors for Determining Cause:
o Distinctiveness: Whether the individual behaves differently in
various situations. If someone acts out of character, we may
attribute it to external factors.
o Consensus: How others behave in similar situations. If many
people react similarly, it suggests an external cause for the
behavior.
o Consistency: Whether the individual’s behavior is consistent over
time. Regular lateness would be attributed internally, while
infrequent lateness might suggest external circumstances.
3. Fundamental Attribution Error: This bias leads us to overemphasize
internal factors and underestimate external factors when judging others’
behaviors. For instance, a manager may wrongly assume an employee's
poor performance is due to laziness rather than external challenges, like a
difficult market environment.
4. Self-Serving Bias: We often attribute our successes to internal factors
(like hard work) and our failures to external factors (like bad luck),
reinforcing a positive self-image while deflecting criticism.
Self-Serving Bias and Its Implications
The self-serving bias describes the tendency of individuals to attribute their
successes to internal factors (such as ability or effort) while blaming external
factors (like luck) for their failures. This bias can distort feedback during
performance reviews, leading to significant consequences in the workplace.
For instance, employees exhibiting self-serving tendencies may perceive their
managers as abusive, even when that is not the case, potentially harming the
reputations of those managers.
Cultural Differences in Attribution
Attribution errors are not universal; they can vary significantly across
cultures. Research indicates that:
 Western Cultures: Tend to focus on individual accountability. For
instance, American media often highlight individual executives when a
company performs poorly.
 Asian Cultures: More likely to attribute failures to organizations or
institutions rather than individuals. This cultural difference suggests a
collective responsibility perspective, where the organization as a whole is
seen as responsible for outcomes.
Shortcuts in Judging Others
To manage the complexity of human interactions, we often use cognitive
shortcuts, which can lead to misinterpretations. Here are some common
shortcuts:
1. Selective Perception: This involves noticing only certain aspects of a
person or situation based on personal interests, experiences, or attitudes.
For example, a manager may pay attention to the mistakes of certain
employees while overlooking the same mistakes in others.
2. Assumed Similarity: In this shortcut, individuals judge others based on
the assumption that they share similar values, preferences, or
experiences. For example, a manager who thrives on challenges may
assume that all employees want the same level of responsibility.
3. Stereotyping: This occurs when we make assumptions about individuals
based on their group affiliations. For instance, believing that married
employees are more stable than single employees is an example of
stereotyping. While some stereotypes may have a basis in fact, many do
not and can lead to distorted judgments.
4. Halo Effect: When we form a positive or negative impression of someone
based on a single characteristic, we are influenced by the halo effect. For
 example, if a manager is enthusiastic but lacks teaching skills, they might
be rated higher overall due to their enthusiasm, overshadowing other
deficiencies.
5. Contrast Effect: This effect occurs when the evaluation of an individual is
influenced by comparisons with others encountered recently. For example,
following a strong performance by another employee can make a
subsequent performance appear less impressive.
Implications for Managers
Managers must recognize that employee perceptions can differ from objective
reality. Key points to consider include:
 Performance Appraisals: Regardless of how fair and unbiased a
manager believes their evaluations to be, if employees perceive them as
biased, those perceptions will influence employee behavior.
 Wage Levels: Even if an organization offers competitive wages, if
employees perceive their pay as inadequate compared to their peers, it
can lead to dissatisfaction.
 Awareness of Perceptual Distortions: Managers should be mindful of
how their actions and the work environment are perceived by employees,
as these perceptions significantly impact motivation and engagement.
 Effective Communication: Ensuring clear and transparent
communication can help mitigate misperceptions and enhance employee
morale.
By understanding the perceptual processes and biases that influence
behavior, managers can create a more supportive and effective work
environment.