INDIVIDUAL DIFFERENCES

Jensen Shoes

JENSEN SHOES

• What perceptual biases might have influenced interactions & behaviors?

• How might an interactive self fulfilling prophecy have operated in this situation?

• What would Brooks have had to do differently to result in a more effective working relationship?

• What would Kravitz have had to do differently to result in a more effective working relationship?

IMPROVING THE RELATIONSHIP: BROOKS

• Communicate more frequently, directly, completely and openly before negative emotions build up.

• Attempt to identify with the broader goals of the organization and demonstrate this to supervisor.

• Make distinction between biased behavior that is knowing and that which is unconscious.

• Seek first to understand!

IMPROVING THE RELATIONSHIP: KRAVITZ

• Verify own open-mindedness by asking herself questions

• Ask more questions rather than assuming she knows what motivates direct reports or where their skills and interests lie.

• Look beyond the surface when assessing others abilities and motivations.

• Manage up as well as down the organization.

• Reflect upon the negative ways that different styles, personalities and tendencies interact.

• Seek first to understand!

PERCEPTION IMPLICATIONS:OUR EMPLOYEES

• Leaders must be attuned to:– The perceived realities of their team

– The fact that perceived and objective realities may not mesh

– The idea that people respond to the perceived reality

• Managers must understand the attributions employees make.

• No two people in the same situation will perceive it in exactly the same way.

• Have conflicting parties describe their perceptions.

INDIVIDUAL DIFFERENCES

Personality

PERSONALITY

Unique set of traits and characteristics that are relatively stable over time and determine a person’s preferences and behavior.

Does personality matter?Implication?

Adjust styles/practices to the personalityConsider personality when assigning jobs/teams

Which dimensions of personality?

Self Awareness Social Awareness

(Empathy)

Self-Management Relationship Management

(Social Skills)

Recognitionof emotions

Regulationof emotions

Self(Personal Competence)

Other(Social Competence)

Emotional Intelligence

• Ability to detect, express, and manage emotion in oneself and others.

Emotional Intelligence

• Some suggest that EI is the best predictor of work success

• It’s “learnable”• It’s related to communication, motivation (self and

others), effective leadership

(Hendrie Weisinger, “Emotional Intelligence at Work” (Jossey-Bass, 1998).

SELF-ESTEEM (SELF CONCEPT)

How we perceive ourselves in terms of our abilities, competencies, and effectivenessGlobal, role-specific, job-based, organization-based

High self esteem is related to higher performance, commitment, loyalty, and longevity.

What can managers do to foster high self esteem in their employees?

FOSTERING SELF-ESTEEM(SELF CONCEPT)

Reaffirm, provide positive feedbackConstructive criticismEmpower/trustTheory?Small wins

LOCUS OF CONTROL

The extent to which people believe their actions determine what happens to them in life.InternalExternal

Why is locus of control important?Performance?Incentive Systems?

What can managers do to enhance employees’ locus of control?

LOCUS OF CONTROL

Ensure performance is under employee controlShow ConnectionAttributions?

THE “BIG FIVE” (CANOE):Conscientiousness

The degree to which a person is dependable, organized, thorough, perseverant, honest

Most consistent personality predictor of performance

Also predicts lack of problem behavior

THE “BIG FIVE”: Agreeableness

The extent to which a person is polite, good natured, flexible, cooperative, trusting.

May predict job performance in jobs…

THE “BIG FIVE”: Agreeableness

The extent to which a person is polite, good natured, flexible, cooperative, trusting.

May predict job performance in jobs… Teamwork; customer relations

THE “BIG FIVE”:Neuroticism (Emotional Stability)

The degree to which a person is anxious, depressed, moody, emotionally unstable, temperamental.

May predict job performance in what type of jobs? High stress (e.g., customer relations, public safety)

THE “BIG FIVE”: Openness

The degree to which a person is imaginative, curious, flexible, open to change.

May predict job performance where?Rapid frequent change; InnovationTraining

THE “BIG FIVE”: Extraversion

The degree to which a person is sociable, talkative, assertive, active, ambitious.

May predict job performance in what type of jobs?

THE “BIG FIVE”: Extraversion

The degree to which a person is sociable, talkative, assertive, active, ambitious.

May predict job performance in what type of jobs?– Extensive interaction (management, sales)

JUNGS TYPOLOGY

• 16 personality types based on 4 sets of preferences• Extraversion vs. Introversion• Sensation vs. Intuition (N)—Perception

– How a person becomes aware of ideas, facts– Sensation: practical, orderly, precise, unambiguous– Intuition: future oriented, dislike precision--jump to conclusions,

inspiration

• Thinking vs. Feeling—Judgment– Making judgments about perceptions– Thinking: Analytic and logical, impersonal; principles over people– Feeling: Subjective on the basis of values;

• Perception vs. Judgment

SELF-PERCEPTION

• For each individual, discuss:– Have you taken the assessment before? If so, were the results the

same?– Do you agree with the results?– Do group members agree with your results?– Were there any differences between self perceptions and perceptions

of others?– What do the results suggest your strengths and weaknesses are?

• For the group:– Based on these results, what are some potential strengths and

weaknesses of the group?– Where might there be potential areas of synergy? Where might there

be potential areas for conflict?

MOTIVATION MOTIVATION

MOTIVATION DEFINED

• Willingness to exert high levels of effort to reach organizational goals.

Good to Great (by Jim Collins)

• “Motivating people is the greatest waste of time managers engage in. If you have the right people on the bus, you don’t need to worry about them being motivated.”

BASIC ASSUMPTIONS

• Everyone is motivated– Key?

• Two types of motivation– Intrinsic– Extrinsic

TYPES OF MOTIVATION

• Extrinsic Motivation:– "What gets rewarded gets done"– Based on extrinsic/tangible rewards an/or

punishment

• Intrinsic Motivation:– "What is rewarding gets done"– Based on intrinsic/intangible rewards

Motivation Theories

• Need (Maslow & ERG)

• Equity

• Reinforcement

• Expectancy Theory

• Goal-Setting Theory

Needs (stage of development)

• Maslow Self actualization Self esteem Social (love) Safety Physiological

• Alderfer (ERG) Growth Relatedness Existence

NEED THEORIES OF MOTIVATIONNEED THEORIES OF MOTIVATION

• What are the implications of need-based theories for managers?

EQUITY THEORYEQUITY THEORY

• People compare their outcome/input ratio to that of others

• Conclusions– Ratios are equal

(equity exists)

– Ratios are unequal (inequity exists)

RESPONSES TO EQUITY/INEQUITY

• Equity: Maintenance

• Inequity:– Change Inputs– Change Outcomes– Quit

Forms of Justice

REINFORCEMENT THEORYREINFORCEMENT THEORY

• Behavior is a function of consequences

• Behavior that is rewarded persists

• To increase behavior– Positive reinforcement

– negative reinforcement

REINFORCEMENT THEORYREINFORCEMENT THEORY

• To reduce behavior– Extinction

REWARDING B

• BUT WE REWARD:– Quarterly earnings– Making the

numbers– Shipping on time– Reporting good

news; agreeing with the boss

– Individual effort

• WE HOPE FOR:– Long-term growth– Setting

challenging goals– Total Quality– Candor

– Teamwork

REINFORCEMENT THEORYREINFORCEMENT THEORY

• To reduce behavior– Extinction

– Punishment

• Immediacy is crucial• Implications?

EXPECTANCY THEORYEXPECTANCY THEORY

People are motivated to do that which they believe is possible and valuable

EXPECTANCY THEORYEXPECTANCY THEORY

People are motivated to do that which they believe is possible and valuable

• Expectancy: Belief that you can perform

• Instrumentality: Belief that performance will lead to an outcome

• Valence: Value of the outcome

• People naturally set goals

• Benefits of Goals:– Increase effort– Direct effort– Increase persistence

• Most effective goals are:

GOAL SETTING THEORY(Didn’t explicitly discuss)

SMARTER Goals (Didn’t explicitly discuss)

• Specific• Measurable

Improve conflict management process vs.80% reduction in grievances filed by second quarter

• Accepted (participative)• Realistic• Tough (“stretch targets”)• Engaging• Rewarded

Effective Rewards & Incentive Systems:

• Recognize Individual Differences

• Effective Goal Setting– Clearly defined measurable targets and expectations – Realistic stretch

– Collaboratively set • Remove obstacles/barriers

• Link meaningful/valued rewards to desired behavior– Those that fulfill strategic objectives; avoid undesirables

• Reward ASAP after behavior

• Check the system for equity, fairness, consistency

• Remember money is only the beginning

NORDSTROMS

• Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms.– What do you see as its strengths?– Any concerns/questions regarding the system?

• Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management?

• What (if any) changes would you recommend?

NORDSTROMS

• Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms.– What do you see as its strengths?

NORDSTROMS

• “This is Your Business. Treat it Like Your Own Business.”

Highest sales productivity Earnings > $80,000 Compound growth in sales,

earnings, stores sq. ft. Highly, educated workforce

NORDSTROMS

• Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms.– What do you see as its strengths?– Any potential concerns?

NORDSTROMS

• “It’s fear that Provides Great Customer Service”

Local 1001 publicity campaign Union complaint with Washington

Dept. L & I NLRB charges $15 million reserve against

earnings shareholder class action suit employee class action suit Wall Street Journal story 60 Minutes TV story

• “This is Your Business. Treat it Like Your Own Business.”

Highest sales productivity Earnings > $80,000 Compound growth in sales,

earnings, stores sq. ft. Highly, educated workforce

NORDSTROMS

• Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management?

NORDSTROMS

ACTIVITY SELL NONSELL Drive to another store to pick up merchandise for a customer

Home delivery

Obtain merchandise from another department for a customer

Thank you notes

Merchandise stocking

Store displays

Sales meetings

Inventory count

Record keeping

NORDSTROMS

• Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms.– What do you see as its strengths?– Any concerns/questions regarding the system?

• Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management?

• What (if any) changes would you recommend?

Recommendations

• Eliminate the SPH system?– Would this be akin to throwing the baby out with the bath

water?

• Modify system to minimize abuse– Guidelines that no one is to be pressured to underreport…

punish offenders

• Internal controls– Personal purchases– Properly credit sales…eliminate sharking– Sales data cannot be altered– Clarify distinction between sell and non sell hours

CONCLUSIONS

Effective incentive systems can be powerful motivators & focus attention on critical behaviors.

However, performance pressures can cause participants to engage in undesirable behaviors. – maximize the statistic in counter-productive ways – willful distortion

Strong internal controls must be present to prevent manipulation.

Systems must clearly communicate that explicit pressure and gaming behavior is unacceptable and subject to detection and punishment.

• THE NEXT FOUR SLIDES WILL CONCLUDE MOTIVATION AT THE BEGINNING OF DAY 3

HERZBERG

• Movement vs. Motivation• KITA

– - KITA

– - KITA

– + KITA

• What’s wrong with KITA? With movement?

Job design

• Job enrichment (Herzberg)– Hygienes (salary, relationships, setting...)– Motivators (responsibility,

achievement, recognition…)

Dissatisfied MotivatedNeutral

IMPLEMENTINGCONCEPTS

CORE JOBDIMENSIONS

CRITICALPSYCHOLOGICAL

STATES

PERSONALWORK

OUTCOMES

Combining Tasks

Forming NaturalWork Units

EstablishingClientRelationships

Vertical Loading

Opening FeedbackChannels

Skill Variety

Task Identity

Task Significance

Autonomy

Feedback

ExperiencedMeaningfulness

ExperiencedResponsibilityfor Outcomesof Work

Knowledge of theActual Results ofWork activities

High InternalWork Motivation

High QualityWork Performance

High Satisfactionwith the Work

Low Absenteeismand turnover

- STRENGTH OF EMPLOYEE’SGROWTH NEEDS

- KNOWLEDGE & SKILLS- CONTEXT SATISFACTION

Intrinsic Motivation:From Theory to Application

• Provide Intrinsic Rewards– Survey of 1,500 employees found that recognition is the most

powerful workplace motivator

• Build intrinsic motivators into employee’s jobs• Employee Participation and Empowerment