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    Individual Differences, Mental Ability,and Personality

    Reference Notes for Executive MBA -Academy of Management Studies

    101. MANAGEMENT & ORGANISATIONALTHEORY

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    People show substantial individualdifferences, or variations in how

    they respond to the same situationbased on personal characteristics

    Behavior is a function of person interactingwith the environment:B = f (P x E)

    Reference Notes for Executive MBA -Academy of Management Studies

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    Behavior is therefore

    determined by the effectsof the individual and theenvironment on eachother

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    Exceptional managers capitalize on strengths ofworkers.

    Individual differences have many consequences

    including productivity and quality.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Seven consequences of individual differences that have amajor impact on managing people are as follows: People differ in productivity. Quality of work varies because people vary in their

    propensity for achieving high-quality results. Empowerment is effective with some workers, but not

    with all. A given leadership style does not work with all people.

    Reference Notes for Executive MBA -Academy of Management Studies

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    People differ in their need for contact with otherpeople.

    Company management will find that commitmentto the firm varies considerably.

    Workers vary in their level of self-esteem that inturn influences their productivity and capacity totake on additional responsibility.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Refers to background factors that shape workerattitudes and behavior

    Sex and gender differences Generation and age-based differences such as

    Baby Boomers, generation Y Ethnic, racial, and cultural differences (culture has

    biggest effect)

    Reference Notes for Executive MBA -Academy of Management Studies

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    Sex and Gender DifferencesEvidence suggests that there are few differences betweenmen and women in such factors as ability and motivationthat will affect their job performance.

    Gender differences in communication patterns have been noted.

    Men typically communicate to convey information or establishstatus.Women are more likely to communicate to establish rapport andsolve problems.

    A researcher has noted that men are more likely to value equity,

    whereas women opt for equality.

    Onverinflated claims of gender differences can do harm in theworkplace, such denying people opportunities.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Generational and Age-Based DifferencesPeople may behave differently on the job basedsomewhat on the behaviors and attitudes of manymembers of their generation.

    The four generations currently in the workforce are:Traditionalists (1925 1945)Baby boomers (1946 1960)Generation X (1961 1980)Generation Y (1981 present)Every generation is influenced by major economic,political, and social events of its era, such as theGreat Depression, the womens movement, andadvances in information technology

    Reference Notes for Executive MBA -Academy of Management Studies

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    Gen Y, also called Millennials, differ fromGen X and baby boomers in many ways,but perhaps most significantly in their mediasavvy, their need for quick gratification and

    recognition, and their lack of long-termcommitment to a particular company

    "This is a generation that expects a lot from institutions. They expectlearning opportunities, creative challenges and proof of their ability to

    add value," Bruce Tulgan, founder of Rainmaker Thinking, a NewHaven, Connecticut.

    (http://www.workforce.com/section/06/feature/24/64/42/246444.html)

    Reference Notes for Executive MBA -Academy of Management Studies

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    Ethnic, Racial, and Cultural DifferencesEthnic and racial differences in job performance and behaviorare usually attributable to culture rather than ethnicity itself.

    some ethnic groups take long lunch breaks because of their

    culture, not the fact of being a particular nationality

    Demographic diversity will often give an organization acompetitive advantage - similarity to the work group positivelyinfluenced the individuals perception of group productivity andcommitment to the work group.

    Job satisfaction tends to higher for employees when others ofsimilar demographic characteristics are present in the workplace

    Reference Notes for Executive MBA -Academy of Management Studies

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    Intelligence is capacity to acquire and applyknowledge Components of Intelligence Triarchic theory (analytical, creative, and practical

    intelligence) Multiple Intelligences (8 types or faculties)

    Reference Notes for Executive MBA -Academy of Management Studies

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    Components of IntelligenceA standard theory of intelligence explainsthat intelligence consist of a g(general)

    factor along with s(special) factors thatcontribute to problem-solving ability.

    The gfactor helps explain why some peopleperform so well in so many different mental

    tasks (the have the right stuff).

    Reference Notes for Executive MBA -Academy of Management Studies

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    Verbal comprehension the ability to understandthe meanings of words

    Word fluency the ability to use words quickly and

    easily Numerical the ability to handle numbers,

    mathematical analysis

    Reference Notes for Executive MBA -Academy of Management Studies

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    Spatial the ability to visualize forms in space,manipulate objects mentally

    Memory The ability to recall for symbols,

    words, numbers etc. Perceptual speed the ability to perceive visual

    details, identify similarities and differences Inductive reasoning the ability to discover a

    rule or principle and apply it in problem solving

    Reference Notes for Executive MBA -Academy of Management Studies

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    The Triarchic Theory of Intelligence

    Emphasise on Practical IntelligenceThe theory holds that intelligence is composed of threedifferent subtypes: analytical, creative, and practical.

    Practical intelligence incorporates the ideas of commonsense, wisdom, and street smarts.

    Analytical intelligence (also called fluid intelligence) maydecline from early to late adulthood.

    However, the ability to solve problems of a practical nature(crystallized intelligence) is maintained or increased throughlate adulthood. So being older makes you wiser.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Multiple Intelligences

    People know and understand the world indistinctly different ways, or look at it throughdifferent lenses.

    The eight intelligences or faculties are: linguistic,logical-mathematical, musical, spatial,body/kinesthetic, intrapersonal, interpersonal,and naturalist.

    The profile of intelligences influences how anindividual will best learn, and to which types ofjobs he/she is best suited.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Components ofMultiple Intelligences

    Bodily/Kinesthetic

    (motor skills)

    Linguistic(language)

    Logical-Mathematical

    Naturalist(external world) Musical (sounds

    are sensible)

    Spatial(brain images)

    Interpersonal(knows others)

    Intrapersonal(knows self)

    Reference Notes for Executive MBA -Academy of Management Studies

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    Personality characteristics contribute to success inmany jobs, and many job failures are caused bypersonality problems.

    Personality refers to the persistent and enduringbehavior patterns of an individual that areexpressed in a wide variety of situations.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Five Factor Modelconsists of:1. Neuroticism

    2. Extraversion3. Openness to experience4. Agreeableness5. Conscientiousness

    Other Key Traits:6. Self-monitoring ofbehavior7. Risk taking and thrillseeking8. Optimism

    All eight traits can affect jobperformance and behavior

    Reference Notes for Executive MBA -Academy of Management Studies

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    Eight Major Personality Factors and TraitsAll eight factors a substantial impact on job behavior and performance1. Neuroticism (reflects emotional instability versus emotional stability)2. Extraversion3. Openness (well-developed intellect)4. Agreeableness (friendly and cooperative)5. Conscientiousness (dependability and thoroughness)6. Self-monitoring of behavior (adjusting how we appear to others)7. Risk taking and thrill seeking (craving constant excitement)8. Optimism (a tendency to experience positive states)

    Reference Notes for Executive MBA -Academy of Management Studies

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    Reference Notes for Executive MBA -Academy of Management Studies

    The Big Five PersonalityFactors

    (Figure 2.2)Emotional Stability

    Agreeableness

    Extraversion

    (Stable, confident,effective)

    (Warm, tactful,considerate)

    (Nervous, self-doubting,moody)

    (Independent, cold,rude)

    (Gregarious, energetic, self-dramatizing)

    (Shy, unassertive,withdrawn)

    Conscientiousness

    Openness

    (Careful, neat,dependable)

    (Imaginative, curious,

    original)

    (Impulsive, careless,irresponsible)

    (Dull, unimaginative, literal-

    minded)

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    How effectively people use their emotions has a

    major impact on their success.

    Emotional intelligence refers to qualities such asunderstanding ones feelings, empathy for others,and the regulation of emotion to enhance living.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Deals with ability to connect with people andunderstand their emotions1. Self-awareness2. Self-management3. Social awareness4. Relationship management

    Reference Notes for Executive MBA -Academy of Management Studies

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    High emotional intelligence is associatedwith the ability to cope with job setbacks.

    Emotional intelligence underscores theimportance of being practical minded andhaving effective interpersonal skills to

    succeed in organizational life.

    Reference Notes for Executive MBA -Academy of Management Studies

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    OB is the study of human behavior inthe workplace, the interactionbetween people and the organization,

    and the organization itself.

    The goals of OB are to explain,

    predict, and control behavior.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Case study (subjective but provides loads ofinformation)

    Experiment (the most scientific method) Field experiment (experimental method applied to

    live situation) Meta-analysis (quantitative review of studies that iswidely used today)

    Reference Notes for Executive MBA -Academy of Management Studies

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    The essence of conducting an experiment is to makesure that the variable being modified (the independent

    variable) is influencing the results.

    The independent variable influences the dependentvariable (such as productivity).

    Field experiments attempt to apply the experimentalmethod to real-life situations.

    A meta-analysis is a quantitative or statistical review

    of the literature on a particular subject, and is also anexamination of a range of studies for reaching acombined results or best estimate.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Data Collection and Research Methods inOrganizational BehaviorMethods of data collection. Three frequentlyused methods of collecting data in

    organizational behavior are surveys,interviews, and direct observation of behavior.

    The type of survey questionnaire used by an

    organizational behavior specialist is preparedrigorously.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Development of soft (interpersonal) skills Personal growth via insight into others Enhancement of individual and organizational

    effectiveness Sharpening and refining common sense (common

    sense is often wrong)

    Reference Notes for Executive MBA -Academy of Management Studies

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    BENEFITS OF STUDYING ORGANIZATIONAL BEHAVIOROrganizational behavior relates to the processrather than the

    contentof conducting managerial work.Skill DevelopmentAn essential requirement for entering into, surviving, and succeedingin the modern workplace is to have appropriate skills.

    Organizational behavior skills have gained in importance in themodern workplace.

    Soft skills generally refer to interpersonal skills such as motivatingothers, communicating, and adapting to people of different cultures.Hard skills generally refer to technical skills.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Personal Growth through Insight IntoHuman BehaviorUnderstanding others leads to personal

    fulfillment, and can also lead to enhancedself-knowledge and self-insight. Insight isuseful for such purposes as selecting peoplefor jobs and assignments, communicating,

    and motivating.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Enhancing Organizational and Individual

    EffectivenessAn important goal of organizational behavior is to improveorganizational effectiveness, the extent to which anorganization is productive and satisfies the demands of itsinterested parties.

    People-oriented management practices enable workers to usetheir wisdom and to receive appropriate training.If a person develops knowledge about subject such asimproved interpersonal communication, conflict resolution, and

    teamwork, he or she will become more effective.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Sharpening and Refining Common

    Sense

    Organizational behavior sharpens and enlargesthe domain for common sense.Organizational behavior knowledge also refinescommon sense by challenging you to reexaminegenerally accepted ideas that may be only

    partially truesuch as inactivity reduces stress foreverybody

    Reference Notes for Executive MBA -Academy of Management Studies

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    Classical approach to management (scientificmanagement and administrative management)

    Hawthorne studies (workers respond to attention) Human relations movement (treat workers well to

    boost productivity)

    Reference Notes for Executive MBA -Academy of Management Studies

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    The contingency approach (examine individual andsituational differences before taking action)

    Positive organizational behavior (focus onmeasurable strengths of workers to improve

    performance)

    Reference Notes for Executive MBA -Academy of Management Studies

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    The classical approach.

    The focus of scientific management was the application of scientificmethods to increase individual workers productivity.According to the principles of scientific management, there is a divisionof work between managers and workers.

    Administrative management was concerned primarily with howorganizations should be managed and structured.

    The core of management knowledge lies within the classical school,including the framework of planning, organizing, and controlling.

    Reference Notes for Executive MBA -Academy of Management Studies

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    The Hawthorne StudiesThe first Hawthorne study examined the effects of lighting on productivity.

    A second study conducted in a relay assembly room examined the relationshipsamong rest, fatigue, and productivity.

    A major conclusion from these studies was the workers reacted positivelybecause management cared about them (the Hawthorne effect).

    The Hawthorne effect is the tendency of people to behave differently when theyreceive attention because they respond to the demands of the situation.

    The Hawthorne studies also led to many other conclusions, such as the fact thateffective communication with workers is critical to managerial success.

    Reference Notes for Executive MBA -Academy of Management Studies

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    The Human Relations Movement

    The human relations movement was based on the belief that animportant link exists among managerial practices, morale, andproductivity.

    Key points of the movement are that satisfied workers are more

    productive and that, given the proper working environment, virtually allworkers would be highly productive.

    A cornerstone of the human relations movement is Theory X and TheoryY of Douglas McGregor.

    Theory X is the somewhat stern and pessimistic traditional assumptionsabout worker capabilities.

    Theory Y is an alternative, and optimistic, set of assumptions

    Reference Notes for Executive MBA -Academy of Management Studies

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    The Contingency ApproachThe contingency approach to management emphasizes thereis no one best way to manage people or work.

    The contingency approach is derived from the study of leadershipstyles.

    The strength of the contingency approach is that it encouragesmanagers and professionals to examine individual and situational

    differences before deciding on a course of action.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Positive Organizational BehaviorAn emerging movement in organizational behavior is afocus on what is right with people.Positive organizational behavior as the study and

    application of human resource strengths andpsychological capacities that can be measured,developed, and managed for performance improvement.

    Positive organizational behavior focuses on developing

    human strengths, making people more resilient, andcultivating extraordinary individuals, work units, andorganizations.

    Reference Notes for Executive MBA -Academy of Management Studies

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    1.Experiential exercises (learn by doing)2.Conceptual information and examples3.Feedback on skills and performance4.Conceptual knowledge and behavioral

    guidelines5.Frequent practice

    Reference Notes for Executive MBA -Academy of Management Studies

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    A FRAMEWORK FOR STUDYINGORGANIZATIONAL BEHAVIORThe three levels of study in organizationalbehavior are: individual level groups and interpersonal relations level organizational system and the global

    environmental level.

    Reference Notes for Executive MBA -Academy of Management Studies

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    Individual differences Learning, perception and attribution Attitudes, values and ethics Creativity Motivation

    Reference Notes for Executive MBA -Academy of Management Studies

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    Communication Group dynamics Teams Leadership Power, politics and influence Conflict, stress and well-being

    Reference Notes for Executive MBA -Academy of Management Studies

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    Structure and design Culture Change and knowledge management Cultural diversity

    Reference Notes for Executive MBA -Academy of Management Studies