BANKING UNIVERSITY OF HCMC

FACULTY OF BUSINESS ADMINISTRATION

ORGANIZATIONAL
BEHAVIOR
Major field: Management
Đặng Trương Thanh Nhàn. MBA
HCM City 2018

1
 LEARNING OBJECTIVES
1. Provide basic knowledge for students to analyze, explain and
predict human behavior and the effects of organizational
behavior while performing tasks in the organization. The study on
organizational behavior is conducted based on three levels: the
individual, the group and the organization.
2. Improve skills in managning and utilizing human resources
efficiently in the organization based on the study of
organizational behavior.

2
 CONTENTS
1. Overview of organizational behavior

2. Individual processes

3. Work motivation

4. Group processes

5. Managing organzational design, culture

and change

3
 REFERENCES

1. Stephen.P.Robins & Timothy A.Judge (2013).

Organizational Behavior (15ed). Pearson Education,
Prentice Hall.
2. Schermerhorn, Hunt, Osborn & Uhl-Bien (2010).
ORGANIZATIONAL BEHAVIOR 11th

4
 CHAPTER 3:

WORK MOTIVATION

5
 CONTENTS

3.1. Definition
3.2. Theories of motivation
3.2.1. Content theories
3.2.2. Process theories
3.2.3. Unify motivation theories
3.3. Reinforcement theories

6
 CONTENT
Biographical
characteristics
Motivation

Personality
Individual
decision
Value, attitude Perception making

Ability Learning
7
WHAT IS MOTIVATION?

8
 WHAT IS MOTIVATION?
• Motivation refers to the result of an interaction
between the individual and the situation. The
processes that account for the intensity,
direction and persistence of effort toward
attaining a goal - specifically, an organizational
goal.
• Three key elements:
• Intensity - how hard a person tries.
• Direction - effort that is channeled toward and
consistent with organizational goals.
• Consistence - how long a person can maintain effort. 9
 WHAT IS MOTIVATION

MOTIVATION

INTENSITY PERSISTENCE
DIRECTION

element that most of ppl focus on when we mention

"direction"
"motivation

<quarrientation resilence
G Stay with
task-long Ace
>
-
a

-high intensity - must

galong with
-

10
 THE BASIC MOTIVATION MODEL
Satisfaction -> Motivation -> Performance ?
Or
Motivation -> Performance -> Satisfaction?
Salary working
,
condition ,
leadership relationship
,

-
>
-
hygiene

Effort and Extrinsic and

Need satisfaction
performance intrinsic rewards
responsibility recognition
, agot
& Self-esteem , ,

BASIC ELEMENTS
11
 The motivation process

Need, motives Tension Search Effort

behavior

Need satisfaction Performance

12
 The motivation process
• Early theories of motivation: These early may not be valid, but they
•Maslow’s Hierarchy of Needs Theory do form the basis for contemporary
theories and are still used by practicing
– Alderfer’s ERG (Existence,
managers.
Relatedness, and Growth)

•McGregor’s Theory X and Theory Y

•Herzberg’s Two-Factor Theory

•McClelland’s Theory of Needs

 Hierarchy of Needs Theory
(Abraham Maslow)
It is a hierarchy of five needs:
physiological, safety, social,
esteem and self-actualization;
as each need is substantially
satisfied, the next need
becomes dominant.
Self-actualization
The drive to become what one
is capable of becoming 14
 MASLOW’S HIERARCHY OF NEEDS
Mashlow-Adv easy to understand
•Level: I provide compelling alternative to behaviourist theories

• Self-actualization Disadv
empirical-> no substantiation (Ko kiinching who this ngo)

• Esteem
satisfied
• Social >
-
Higher order needs -
T
internally (ppe)
order
• Safety Lower order needs satisfied

I
-

externally
order
• Physiological
•Assumptions
• Individuals cannot move to the
next higher level until all needs at
the current (lower) level are
satisfied.
• Must move in hierarchical order 15
 E.R.G Theory
(Clayton Alderfer)
• A reworking of Maslow to fit empirical research
• Three groups of core needs:
Existence (Maslow: physiological and safety)
Relatedness(Maslow: social and status)
Growth (Maslow: esteem and self-actualization)
• Removed the hierarchical assumption
Can be motivated by all three at once
• Popular, but not accurate, theory

16
 RESEARCH OF MCGREGOR
Theory X and Theory Y
Two distinct views of human beings:
Theory X (basically negative) and Theory Y (positive).

Theory X Theory Y
 Have little ambition  Are self-directed
 Dislike work  Enjoy work
 Avoid responsibility  Accept responsibility
3 assume higher order need in Maslow >
- dominate ppl

valid
disadve no evidence either set
of assumption
:

J theory
-

Y leads to motivated workers : not correct

↓ lack more

of empirical support
17
 HERZBERG’S TWO-FACTOR THEORY
↳ motivate-hygiene theory

Key point: Satisfaction and dissatisfaction are not opposites but separate
constructs

Separate constructs Motivators

Hygiene factors: • Hygiene factors—
•Salary Extrinstic & related to •Achievement
•Work conditions  Dissatisfaction •Responsibility
•Company policies
• Motivation factors-- •Growth
Instrinsic & related to
 Satisfaction

18
 HERZBERG’S TWO-FACTOR THEORY

Herzberg says that hygiene factors must be met to remove

dissatisfaction. If motivators are given, then satisfaction can occur.
*Herzberg is limited by his procedure
 Participants had self-serving bias
Reliability of raters questioned
 Bias or errors of observation
*No overall measure of satisfaction was used
*Herzberg assumed, but didn’t research, a strong relationship
between satisfaction and productivity

19
COMPARISON OF SATISFIERS AND DISSATISFIERS
Factors characterizing events on the job
that lead to extreme job dissatisfaction

>
- basic demand Motivators
to

hygiene ↳ disatisfaction disatisfaction >

-
from no satisfaction > satisfaction
-

--
no

Factors characterizing events on

the job that lead to extreme job
satisfaction

I develop hygiene
est
invest into motivators +
hygiene 20
boots motivators then
 CONTRASTING VIEWS OF SATISFACTION AND
DISSATISFACTION
Disadvantages :

credit
going well -> take
limited
things
>
these extrinsic environment
failure blame on
-

because : -

contaminate the
findings by interpreting (diengias) response in one manner
>
one
-

↳ While treating another differently

> overall measure

-
: not utilized >
-
dislike a part of job -> not means that dislike the job

↳ the job is still acceptable

assume the rela : satisfaction -

productivity
-but just focus on
satisfaction

21
 THEORY OF NEEDS
David McClelland’s
&nor
u
bet

Need for Achievement Need for Affiliation

The drive to excel, to achieve The desire for friendly
in relation to a set of and close personal
standards, to strive to relationships.
succedd.
Need for Power  Individuals have
different levels of needs in
The need to make others
behave in a way that they
each of these areas, and
would not have behaved those levels will drive
otherwise their behavior 4-22
relationship achievement need and job performance

①high degree of personal responsibility and

feedback
J high achievers are strongly
motivated
intermediate degree of risk

② high need to achieve - not necessarily make so a

good manager
well
interested - how well they do personally
- not influence others to do
ppt with ne

closely related to managerial

success
G need for power I affiliation
I tend to be

a
requirement for managerial effective
need power Je high
their for
highin
-
E Y : best
-

managers power

Disadvantages

3
↳ less practical effects invest
many org willing
to
but its effectiveness -

↳ subconscious (exitaic) >

-
measure : not
easy
↳ the
process : time
consuming expensive
+
THEORY OF NEEDS BY DAVID MCCLELLAND
Need for
Achievement

Need for Affiliation

Need for Power

23
 INTRINSIC & EXTRINSIC REWARD ADDITION

Need/ Motives Tension Search

behavior Effort

Intrinsic

Need satisfaction Performance

Extrinsic

THE MOTIVATION PROCESS

24
 INTRINSIC & EXTRINSIC REWARD

Recognition Control Good job

Proud
Gift Position
Good
Encouragement
performance
Bonus
Personality
EXTRINSIC MOTIVATION INTRINSIC MOTIVATION

4-25
 Matching high achievers and jobs

Personal responsibility

Achievers prefer Feedback

jobs that offer

Moderate risks

26
 COGNITIVE EVALUATION THEORY
Providing an extrinsic reward for behavior that had been previously only
intrinsically rewarding tends to decrease the overall level of motivation.

* Major Implications for work rewards

- Intrinsic and extrinsic rewards are not independent
- Extrinsic rewards decrease intrinsic rewards
- Pay should be noncontingent on performance
- Verbal rewards increase intrinsic motivation, tangible rewards
reduce it
* Self-concordance(su plus hop)
When the personal reasons for pursuing goals are consistent with
personal interests and core values (intrinsic motivation), people are
happier and more successful.

27
 COMPARISON OF MASLOW’S AND HERBERG’S
THEORY
MASLOW’S THEORY OF NEEDS HERZBERG’S TWO-FACTOR THEORY
Need for self- Challenge, achievement,
actualization responsibility
Motivation
factors Progress, status,
Need for esteem
recognition

Need for affiliation, Relationship between

recognition individuals, policies

Hygiene
Need for safety Working conditions
factors

Need for physiology Salary, personal life

28
 GOAL-SETTING THEORY (EDWIN LOCKE)

That specific and difficult goals, with self-generated feedback,

lead to higher performance.
* Difficult goals:
- Focus and direct attention
- Energize the person to work harder
- Difficulty increases persistence
- Force people to be more effective and efficient
* Relationship between goals and performance depends on:
- Goal commitment (the more public the better!)
- Task characteristics (simple, well-learned)
- Culture

29
 GOAL SETTING IN ACTION:
MBO PROGRAMS

MANAGEMENT BY OBJECTIVES
PROGRAMS
- Personal goals and company wide goals
- Goals aligned at all levels
- Based on goal setting theory

30
 DEFINING MBO

MBO is a systematic way to utilize goal-setting.

Goals must be:
- Tangible
- Verifiable
- Measurable
Corporate goals are broken down into smaller,
more specific goals at each level of organization.
Four common ingredients to MBO programs:
- Goal specificity
- Participative decision making
- Explicit time period
- Performance feedback

31
 LINKING MBO AND GOAL-SETTING THEORY

MBO Goal-setting theory

Goal Specificity  
Goal Difficulty  
Feedback  
Participation  
(qualified)

32
 WHY MBOS FAIL

- Unrealistic expectations about MBO

results
- Lack of commitment by top management
- Failure to allocate reward properly
- Cultural incompatibilities

33
 Self-Efficacy

An individual’s belief that he or she is

capable of performing a task
* Higher efficacy is related to:
- Greater confidence
- Greater persistence in the face of
difficulties
- Better response to negative
feedback (work harder)
* Self-Efficacy complements Goal-Setting
Theory

34
 SELF-EFFICACY AND GOAL SETTING
Individual has
confidence that given
level of performance
will be attained
(self-efficacy)

Individual has higher

Manager set difficult,
level of job or task
specific goal for a job
performance
or task

Individual sets higher

personal (Self – set)
goal for their
performance
35
 4 WAYS OF INCREASING SELF EFFICACY
* Enactive mastery
- Most important source of efficacy
- Gaining relevant experience with task or job
- “Practice makes Perfect”
* Vicarious Modeling
- Increasing confidence by watching others perform the task
- Most effective when observer sees the model to be similar to him or
herself
* Verbal Persuasion
- Motivation through verbal conviction
- Pygmalion and Galatea effects - self-fulfilling prophecies
* Arousal
- Getting “psyched up” – emotionally aroused – to complete task
- Can hurt performance if emotion is not a component of the task
36
 Reinforcement Theory

Similar to Goal-Setting Theory, but focused on a

behavioral approach rather than a cognitive one

- Behavior is environmentally caused

- Thought (internal cogitative event) is not important
Feelings, attitudes, and expectations are ignored
- Behavior is controlled by its consequences –
reinforcers
- Not a motivational theory but a means of analysis of
behavior
- Reinforcement strongly influences behavior but not
likely to be the sole cause
37
 EQUITY THEORY

Employees compare their ratios of outcomes-to-inputs of relevant

others
- When ratios are equal: state of equity exists – no tension as the
situation is considered fair
- When ratios are unequal: tension exists due to unfairness
+ Underrewarded states cause anger
+ Overrewarded states cause guilt
- Tension motivates people to act to bring their situation into equity

38
 EQUITY THEORY

Can be four different situations:

- Self-inside
The person’s experience in a different job in
the same organization
- Self-outside
The person’s experience in a different job in a
different organization
- Other-inside
Another individual or group within the
organization
- Other-outside
Another individual or group outside of the
organization - ↳ Khungdanhgial
~ limitation Pay cla quan dim banthants nhan thay 6
39
chiquan
:
 -D = Q demotivation
- reduction
normalI
>
-

EQUITY THEORY ① Q
I quality
~
- quantity work
leave the job
Cresults rewards achievement)
, ,
"satisfied
① ②

( resources)

40
 EQUITY THEORY ADDTION

Need/ Motives Tension Search

behavior
Choices for dealing with inequity:
Effort
Equity
perception Intrinsic
1. Change inputs (slack off)
2. Change outcomes (increase output)
Need / change perceptionsPerformance
satisfaction
3. Distort of self
4. Distort / change perceptions of others
5. Choose a different referent person
Equity Extrinsic
6. Leave the field (quit the job)
perception

41
 EQUITY THEORY

Propositions relating to inequitable pay:

1. Overrewarded employees produce more.
2. Underrewarded employees produce less with low quality.
3. Overrewarded employees give higher quality.
4. Underrewarded employees make more of low quality.

42
 JUSTICE AND EQUITY THEORY
Organizational Justice
- Overall perception of what is fair in the workplac
- Made up of:
+ Distributive Justice
Fairness of outcome I got the pay raised I deserved

+ Procedural Justice
used to given a good explanation of why
Fairness of outcome process I had input into the process
.
I received the raise I did

+ Interactional Justice
When telling me about my raise
,

Being treated with dignity and respect my supervisor was very nice and comp limentary
43
 EXPECTANCY THEORY

individual's
degree to which org rewards sati fy
an
-the
needs
personal goals or

1%perceivedbythe individual tatexertinggivenamaneffortleadtoperformance

and attractiveness of
to the attainment of adsired outcome odis
thre potential

The strength of a tendency to act in a certain way depends on the strength

of an expectation that the act will be followed by a given outcome and on
the attractiveness of the outcome to the individual.
Important linkages:
* Expectancy of performance success
* Instrumentality of success in getting reward
* Valuation of the reward in employee’s eyes
44
45
 JOB DESIGN THEORY
Job Characteristics Model (JCM)
Hackman and Oldham state that any job can be described through five core
characteristics:
* Skill variety - Requirements for different tasks in the job.
* Task identity - Completion of a whole piece of work.
* Task significance - The job’s impact on others.
* Autonomy - Level of discretion in decision making. degree
,
a job provides the worker freedom

* Feedback - Amount of direct and clear information on performance.

 The way elements in a job are organized (job design) impacts motivation,
satisfaction and performance 46
 JOB DESIGN THEORY

Jobs with skill variety, task identity, task significance, autonomy, and for which
feedback of results is given, directly affect three psychological states of employees:
* Knowledge of results
* Meaningfulness of work
* Personal feelings of responsibility for results
Increases in these psychological states result in increased motivation, performance,
and job satisfaction.

47
 EXAMPLES OF HIGH AND LOW JOB CHARACTERISTICS
CHARACTERISTICS EXAMPLES

Skill variety
• High variety The owner-operator of a garage who does electrical repair, rebuilds engines, does body work, and
interacts with customers
• Low variety A bodyshop worker who sprays paint eight hours a day
Task identity
• High identity A cabinetmaker who designs a piece of furniture, selects the wood, builds the object, and finishes
it to perfection
• Low identity A worker in a furniture factory who operates a lathe to make table legs
Task significance
• High significance Nursing the sick in a hospital intensive care unit
• Low significance Sweeping hospital floors
Autonomy
• High autonomy A telephone installer who schedules his or her own work for the day, and decides on the best
techniques for a particular installation
• Low autonomy A telephone operator who must handle calls as they come according to a routine highly specified
procedure
Feedback
• High feedback An electronics factory worker who assembles a radio and then tests it to
determine if it operates properly
• Low feedback An electronics factory worker who assembles a radio and then routes it to a quality control
inspector who tests and adjusts it 48
 THE JOB CHARACTERISTIC MODEL

Impact of core job dimensions

→ Critical psychological states
→ Personal and work
outcomes
Employees’ growth need strength

49
 JOB DESIGN THEORY

Skill variety
The degree to which a job requires a variety of different
activities (how may different skills are used in a given day,
week, month?).
Task identity
The degree to which the job requires completion of a whole and
identifiable piece of work (from beginning to end).

Task significance
The degree to which the job has a substantial impact on the lives or
work of other people.
50
 JOB DESIGN THEORY

Autonomy
The degree to which the job provides substantial freedom and
discretion to the individual in scheduling the work and in determining
the procedures to be used in carrying it out.

Feedback
The degree to which carrying out the work activities required by a job
results in the individual obtaining direct and clear information about
the effectiveness of his or her performance.

51
 COMPUTING A MOTIVATING POTENTIAL SCORE

The five elements make up the Motivating Potential Score (MPS)

People who work on jobs with high core dimensions are generally more motivated, satisfied, and
productive.
Job dimensions operate through the psychological states in influencing personal and work outcome
variables rather than influencing them directly.
*While the JCM model is supported by research, the MPS isn’t practical and doesn’t work well.
52
 JOB DESIGN AND SCHEDULING

Job Rotation
The periodic shifting of a worker from one task
to another.

Job Enlargement
The horizontal expansion of jobs.

Job Enrichment
The vertical expansion of jobs.
53
 GUIDELINES FOR ENRICHING A JOB
SUGGESTED ACTION CORE JOB DIMENSIONS

Combine tasks Skill variety

Create natural work units Task identity

Establish client relationships Task significance

Expand job vertically Autonomy

Open feedback channels Feedback

54
 ALTERNATIVE WORK ARRANGEMENTS

Flextime
Employees work during a common core time period each day but have
discretion in forming their total workday from a flexible set of hours
outside the core.

Job Sharing
The practice of having two or more people split a 40-hour-a-week job.

55
EXAMPLE OF A FLEXTIME SCHEDULE

56
 ALTERNATIVE WORK ARRANGEMENTS

Telecommuting
Employees do their work at home on a computer that is linked to their office.

The Virtual Office

Employees work out of their home on a relatively permanent basis.

Typical Telecommuting Jobs

Professional and other knowledge-related tasks
Routine information handling tasks
Mobile activities

57
 TELECOMMUTING

• Advantages • Disadvantages (Employer)

• Larger labor pool • Less direct supervision of employees
• Higher productivity • Difficult to coordinate teamwork
• Less turnover • Difficult to evaluate non-quantitative
performance
• Improved morale
• Reduced office-space costs

58
 Performance = f(A x M x O)
Performance is the result of the interaction of:
- Ability (A)
- Motivation (M)
- Opportunity to Perform (O)

59
 WHAT IS EMPLOYEE INVOLVEMENT?
Employee Involvement
A participative process that uses the input of employees to increase their commitment
to the organization’s success.

By increasing worker autonomy and control over work lives (involvement),

organizations:
- Increase employee motivation
- Gain greater organizational commitment
- Experience greater worker productivity
- Observe higher levels of job satisfaction

60
 EXAMPLES OF EMPLOYEE ENVOLVEMENT

Participative Management
A process in which subordinates share a significant degree of decision-making
power with their immediate superiors.

61
 EXAMPLES OF EMPLOYEE INVOLVEMENT
Representative Participation Works Councils
Workers participate in Groups of nominated or elected
organizational decision making employees who must be consulted when
through a small group of management makes decisions involving
representative employees. personnel.

Board Representative
A form of representative participation;
employees sit on a company’s board of
directors and represent the interests of the
firm’s employees.
62
EXAMPLES OF EMPLOYEE INVOLVEMENT

Quality Circle
A work group of employees who meet regularly to discuss their
quality problems, investigate causes, recommend solutions, and
take corrective actions.

63
LINKING EI PROGRAMS AND MOTIVATION THEORIES

Y Theory
(Believing Employee Two-Factor
employees Involvement Theory
(INTRINSIC
want to be Programs MOTIVATION)
involved)

ERG Theory
(EMPLOYEE NEEDS)

64
 REWARDING EMPLOYEES: 4 ASPECTS
1. What to pay? (pay structure)
2. How to pay individuals? (variable pay plans and skill-based pay plans)
3. What benefits to offer? Do we offer choice of benefits? (flexible benefits)
4. How to build recognition programs?

65
 REWARDING EMPLOYEES:
VARIABLE LPAY PROGRAMS

Variable Pay Programs

A portion of an employee’s pay is based on some individual and/or
organizational measure of performance.
• Piece-rate pay plans
• Profit-sharing plans
• Gain sharing

66
 REWARDING EMPLOYEES:
VARIABLE PAY PROGRAMS
Piece-rate Pay Plans
Workers are paid a fixed sum for each unit of
production completed.

Profit-Sharing Plans
Organization wide programs that distribute compensation based on some
established formula designed around a company’s profitability.

Gain Sharing
An incentive plan in which improvements in group productivity
determine the total amount of money that is allocated.
67
 REWARDING EMPLOYEES:
Employee Stock Ownership Plans (ESOP)
Company-established benefit plans in which
employees acquire stock as part of their benefits.

68
 SKILL-BASED PAY PLANS

Pay levels are based on how many skills employees have or how
many jobs they can do.

Benefits of Skill-based Pay Plans:

1. Provides staffing flexibility.
2. Facilitates communication across the organization.
3. Lessens “protection of territory” behaviors.
4. Meets the needs of employees for advancement
(without promotion).
5. Leads to performance improvements.

69
 SKILL-BASED PAY PLANS

Drawbacks of Skill-based Pay Plans:

1. Lack of additional learning opportunities that will increase
employee pay.
2. Continuing to pay employees for skills that have become
obsolete.
3. Paying for skills which are of no immediate use to the
organization.
4. Paying for a skill, not for the level of employee performance
for the particular skill.

70
LINKING SKILL-BASED PLANS AND MOTIVATION
THEORIES

Equity
Reinforcement Skill Based Pay
Theory Plans Theory

McClelland’s
ERG Theory
Need for
(Growth)
Achievement

71
 FLEXIBLE BENEFITS

Employees tailor their benefit

Core-Plus Plans:
program to meet their personal
a core of essential benefits
need by picking and choosing
and a menu-like selection
from a menu of benefit
of other benefit options.
options.

Modular Plans: Flexible Spending Plans:

predesigned benefits allow employees to use
packages for specific their tax-free benefit dollars
groups of employees. to purchase benefits and
pay service premiums.

72
 EMPLOYEE RECOGNITION PROGRAMS
• Intrinsic rewards: stimulate intrinsic motivation
• Personal attention given to employee
• Approval & appreciation for a job well done
• Growing in popularity and usage
• Benefits of programs:
• Fulfill employees’ desire for recognition
• Inexpensive to implement
• Encourages repetition of desired behaviors
• Drawbacks of programs
• Susceptible to manipulation by management

73
 IMPLICATIONS FOR MANAGERS
• In Order to Motivate Employees
• Recognize individual differences.
• Use goals and feedback.
• Allow employees to participate in decisions that affect them.
• Link rewards to performance.
• Check the system for equity.

74
Summary and Managerial Implications
• Need Theories (Maslow, Alderfer, McClelland, Herzberg)
• Well known, but not very good predictors of behavior
• Goal-Setting Theory
• While limited in scope, good predictor
• Reinforcement Theory
• Powerful predictor in many work areas
• Equity Theory
• Best known for research in organizational justice
• Expectancy Theory
• Good predictor of performance variables but shares many of the
assumptions as rational decision making
© 2009 Prentice-Hall Inc. All rights
6-75
reserved.
Summary and Managerial Implications

• To Motivate Employees:
• Recognize individual differences
• Use goals and feedback
• Allow employees to participate in decisions that
affect them
• Link rewards to performance
• Check the reward system for equity
© 2009 Prentice-Hall Inc. All rights
7-76
reserved.