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MGMT 300: Leadership and Organizational Behavior Job Satisfaction Michael D. Johnson, PhD Assistant Professor January 28, 2009 Wonderlic Personnel Test Offensive tackles 26 Chemist 31 Centers 25 Attorney 29 Quarterbacks 24 Executive 28 Guards 23 Newswriter 26 Tight ends 22 Sales 24 Safeties 19 Bank teller 22 Linebackers 19 Firefighter 21 Cornerbacks 18 Security guard 17 Wide receivers 17 Warehouse worker 15 Fullbacks 17 Halfbacks 16 Today’s Agenda • Job satisfaction presentation • Motivation presentation • Quiz! •Jan 28, 2009 The value of the set of employee behaviors that contribute, either positively or negatively, to organizational goal accomplishment is known as: A. job commitment B. motivation C. job satisfaction D. job performance E. organizational commitment At ABC Coffee Roasters, employees learned that a few of them will be losing their jobs, and in response, they purposefully started to mix decaf beans in bags of regular beans and vice versa. This created serious customer service issues and the company lost major accounts. The action of the employees at ABC can be described as: A. theft B. incivility C. wasting resources D. sabotage E. political deviance Hubert Hall has been a loyal employee for the past 25 years at XYZ International, but has not been enjoying his job as much in the past two years. Hubert feels obligated to stay with XYZ until he retires in five years because the company has invested a lot of time and money in him. This is an example of A. continuance commitment B. affective commitment For 1 extra point, C. embeddedness can anyone give D. normative commitment examples of E. social influence continuance and affective commitment? This figure represents which of these task interdependences? A. Pooled B. Reciprocal C. Response D. Comprehensive E. Sequential • 5. Which dimension of the Big Five has the biggest influence on job performance? A. Conscientiousness B. Extraversion C. Agreeableness D. Openness E. Neuroticism Hard Work Day Better manager Work hard Learn 7 Pay attention Take notes theories Good exam grade Agree or Disagree? • “Managers should do everything they can to enhance the job satisfaction of their employees.” • It doesn’t matter how employees say they feel about their employers. What matters is whether they have better options out there.” • “Part of the meaning of life is to have highs and lows. A life that was constantly happy was not a good life.” Job Satisfaction • Job satisfaction is a pleasurable emotional state resulting from the appraisal of one’s job or job experiences. – It represents how you feel about your job and what you think about your job. – 49 percent of Americans are satisfied with their jobs, down from 58 percent a decade ago. Value-Percept Theory • Value-percept theory argues that job satisfaction depends on whether you perceive that your job supplies the things that you value. • People evaluate job satisfaction according to specific “facets” of the job. Dissatisfaction = (Vwant - Vhave) X (Vimportance) – Vwant reflects how much of a value an employee wants – Vhave indicates how much of that value the job supplies – Vimportance reflects how important the value is to the employee The Value- Percept Theory of Job Satisfaction Value-Percept Theory, Cont’d • Pay satisfaction refers to employees’ feelings about their pay, including whether it is as much as they deserve, secure, and adequate for both normal expenses and luxury items. • Promotion satisfaction refers to employees’ feelings about the company’s promotion policies and their execution, including whether promotions are frequent, fair, and based on ability. • Supervision satisfaction reflects employees’ feelings about their boss, including whether the boss is competent, polite, and a good communicator. • Coworker satisfaction refers to employees’ feelings about their fellow employees, including whether coworkers are smart, responsible, helpful, fun, and interesting as opposed to lazy, gossipy, unpleasant, and boring. • Satisfaction with the work itself reflects employees’ feelings about their actual work tasks, including whether those tasks are challenging, interesting, respected, and make use of key skills rather than being dull, repetitive, and uncomfortable. How Satisfied are You? Population MGMT 300 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Work Itself Pay Promotion Supervision Coworkers How Satisfied are You? Men Women 4.0 3.5 3.0 2.5 2.0 1.5 1.0 Promotion Work Itself Correlations Between Satisfaction Facets and Overall Job Satisfaction Critical Psychological States • Meaningfulness of work reflects the degree to which work tasks are viewed as something that “counts” in the employee’s system of philosophies and beliefs. • Responsibility for outcomes captures the degree to which employees feel that they are key drivers of the quality of the unit’s work. • Knowledge of results reflects the extent to which employees know how well (or how poorly) they are doing. What type of tasks create these psychological states? Job Characteristics Theory Identifies five job characteristics and their 1. Skill variety relationship to personal and work outcomes 2. Task identity Which characteristic did 3. Task significance Adam Grant study? 4. Autonomy Could task significance 5. Feedback make a difference at your job? Emotions and Moods Affect A broad range of emotions that people experience Emotions Moods Intense feelings that are Feelings that tend to directed at someone or be less intense than something emotions and that lack a contextual stimulus Moods and Emotions, Cont’d • Emotional labor is the need Low cognitive demands High cognitive demands to manage emotions to complete job duties $25.00 successfully. $20.00 $19.26 Hourly pay $15.57 $15.00 • Emotional contagion shows that one person can $10.00 $9.93 “catch” or “be infected by” $5.00 $5.57 the emotions of another $0.00 person Low High Emotional labor demands Life Satisfaction • Job satisfaction is strongly related to life satisfaction, or the degree to which employees feel a sense of happiness with their lives. – People feel better about their lives when they feel better about their jobs – Increases in job satisfaction have a stronger impact on life satisfaction than do increases in salary or income How Important is Satisfaction? • Job satisfaction does influence job performance. – It is moderately correlated with task performance. Satisfied employees do a better job of fulfilling the duties described in their job descriptions. • Job satisfaction is correlated moderately with citizenship behavior. – Satisfied employees engage in more frequent “extra mile” behaviors to help their coworkers and their organization. • Job satisfaction influences organizational commitment. – Job satisfaction is strongly correlated with affective commitment, so satisfied employees are more likely to want to stay with the organization. Tracking Satisfaction Levels • Several methods assess the job satisfaction of rank-and-file employees, including focus groups, interviews, and attitude surveys. – Attitude surveys are often the most accurate and most effective. • Job Descriptive Index (JDI) – Attitude surveys ideally should be a catalyst for some kind of improvement effort. • An organization that struggles with satisfaction with the work itself could attempt to redesign key job tasks or, if that proves too costly, train supervisors in strategies for increasing the five core job characteristics on a more informal basis. Patagonia • What four factors account for the high levels of job satisfaction at Patagonia? • How do these relate to the material we talked about today? Word Creation Exercise • Carefully read the instructions on the cover page. • DO NOT TURN THE PAGE UNTIL INSTRUCTED TO DO SO! MGMT 300: Leadership and Organizational Behavior Motivation Michael D. Johnson, PhD Assistant Professor January 28, 2009 Motivation • Person’s level of performance is a function (f) of ability, motivation, and opportunity: Performance = f (Ability x Motivation x Opportunity) What is Motivation? • Motivation is defined as a set of energetic forces that originates both within and outside an employee, initiates work-related effort, and determines its direction, intensity, and persistence. Direction Intensity Persistence Expectancy Theory • Expectancy theory describes the cognitive process that employees go through to make choices among different voluntary responses. – Employee behavior is directed toward pleasure and away from pain or, more generally, toward certain outcomes and away from others. Expectancy Theory Motivational Force = Effort E Performance I1 Outcome 1 V1 I2 E = Expectancy = Subjective I3 Outcome 2 V2 probability that effort will lead to Outcome 3 V3 performance I = Instrumentality = Subjective probability that performance will lead to various outcomes V = Valence = Expected satisfaction with each outcome Motivational Force = E C S(I C V) Cognitive Evaluation Theory Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation The theory may be relevant only to jobs that are neither extremely dull nor extremely interesting. Hint: For this theory, think about how fun it is to read in the summer, but once reading is assigned to you for a grade, you don’t want to do it! Goal Setting Theory • Goal setting theory views goals as the primary drivers of the intensity and persistence of effort. – Assigning employees specific and difficult goals will result in higher levels of performance. What is a difficult goal? Goal Difficulty and Task Performance Goal Setting Theory, Cont’d • Moderators on Task Performance – Feedback consists of updates on employee progress toward goal attainment. – Task complexity reflects how complicated the information and actions involved in a task are, as well as how much the task changes. – Goal commitment is defined as the degree to which a person accepts a goal and is determined to try to reach it. Strategies for Fostering Goal Commitment What Is MBO? Management by Objectives (MBO) A program that encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress Key Elements 1. Goal specificity 2. Participative decision making 3. An explicit time period 4. Performance feedback Self-Efficacy •An individual’s feeling that s/he can complete a task (e.g. “I know I can!”) •Enhances probability that goals will be achieved Not to be confused with: Self-esteem, which is: Individuals’ degree of liking or disliking themselves Increasing Self-efficacy 1. Enactive Mastery 2. Vicarious Modeling 3. Verbal Persuasion 4. Arousal Note: Basic Premise/Mechanism of Pygmalion and Galatea Effects Enactive Mastery • Financial simulation with MBA students • Four conditions of false feedback: –Bad at first, but steadily increasing –Bad and stayed bad –Good at first, but steadily decreasing –Good and stayed good • Which condition performed best overall? Why? Equity Theory • Equity theory acknowledges that motivation doesn’t just depend on your own beliefs and circumstances but also on what happens to other people. – Employees create a “mental ledger” of the outcomes (or rewards) they get from their job duties. • You compare your ratio of outcomes and inputs to the ratio of some comparison other — some person who seems to provide an intuitive frame of reference for judging equity. • “Cognitive calculus” – Ratio of outcomes to inputs is balanced between you and your comparison other. Some Outcomes and Inputs Considered by Equity Theory Equity Theory My Outcomes Other’s Outcomes IF = \ My Inputs Other’s Inputs Employees may: – Increase or decrease inputs – Change their outcomes – Distort their perceptions of inputs and/or outcomes – Distort perceptions of other’s inputs and/or outcomes – Change the referent others – Leave the organization How Important is Motivation? • Strongest performance effect is self-efficacy / competence; people who feel a sense of internal self-confidence tend to outperform those who doubt their capabilities. • Difficult goals are the second most powerful motivating force. • The motivational force created by high levels of valence, instrumentality, and expectancy is the next most powerful motivational variable for task performance. • Perceptions of equity have a somewhat weaker effect on task performance. The Emperor’s Club • What motivation theory explains Mr. Hundert’s decision to leave the school? Designing Compensation Systems • Do the elements provide difficult and specific goals for channeling work effort? – Lump sum bonuses and gainsharing have been credited with improvements in employee productivity. • Consider the correspondence between individual performance levels and individual monetary outcomes. • Merit pay represents the most common element of organizational compensation plans. Compensation Plan Elements ELEMENT DESCRIPTION Individual-Focused Piece-Rate A specified rate is paid for each unit produced, each unit sold, or each service provided. Merit Pay An increase to base salary is made in accordance with performance evaluation ratings. Lump-Sum Bonuses A bonus is received for meeting individual goals but no change is made to base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large. Recognition Awards Tangible awards (gift cards, merchandise, trips, special events, time off, plaques) or intangible awards (praise) are given on an impromptu basis to recognize achievement. Compensation Plan Elements, Cont’d ELEMENT DESCRIPTION Unit-Focused Gainsharing A bonus is received for meeting unit goals (department goals, plant goals, business unit goals) for criteria controllable by employees (labor costs, use of materials, quality). No change is made to base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large. Organization-Focused Profit Sharing A bonus is received when the publicly reported earnings of a company exceed some minimum level, with the magnitude of the bonus contingent on the magnitude of the profits. No change is made to base salary. The potential bonus represents “at risk” pay that must be re-earned each year. Base salary may be lower in cases in which potential bonuses may be large.