Business Management
Organizational behavior, management functions, IPO model, leadership, and decision-making (BADM 310)
W1A: Management Basics
Is management just common sense?
Is Management Common Sense?
Management is not simply common sense. Many intuitive management beliefs are empirically wrong or incomplete. Effective management requires systematic study of evidence from psychology, sociology, anthropology, and economics — not just gut feeling.
Key insight
Common-sense beliefs about people and organizations are often contradicted by research. OB provides a scientific, evidence-based framework for understanding workplace behavior.
Traditional Functions of Management (POLC)
The four classic functions managers perform, often taught as the foundation of management:
Setting goals and determining how to achieve them. Defining objectives, strategies, and action plans.
Arranging resources and tasks to accomplish goals. Designing structure, assigning roles, allocating resources.
Directing and influencing people to work toward goals. Motivating, communicating, and resolving conflict.
Monitoring performance and taking corrective action. Measuring outcomes against plans and adjusting as needed.
IPO Model (Input → Process → Outcome)
A core framework in OB: organizational outcomes depend on the processes that transform inputs. The key managerial implication is to fix the process, not blame the person.
Input
- Individual characteristics
- Group mechanisms
- Organizational context
Process
- Job satisfaction
- Motivation
- Stress
- Learning & decisions
- Trust / ethics
Outcome
- Job performance
- Organizational commitment
- Organizational results
Fix the process, not the person: When outcomes are poor, examine and redesign the process rather than simply replacing individuals.
W1B: What is Organizational Behavior?
Definition, disciplines, and the integrative model
Definition of OB
Organizational Behavior (OB) is an interdisciplinary field dedicated to understanding and managing people at work.
OB draws on multiple social sciences to explain why people think, feel, and act the way they do in organizational settings, and to help managers make better decisions about people.
Contributing Disciplines
Psychology
Individual behavior, personality, motivation, perception, learning, attitudes
Sociology
Group dynamics, organizational structure, social norms, team behavior
Anthropology
Culture, values, cross-cultural behavior, organizational culture
Economics
Incentives, decision-making under constraints, labor markets, agency theory
Integrative Model of OB
The integrative model shows how individual, group, and organizational factors flow through individual mechanisms to produce outcomes.
| Level | Inputs / Mechanisms | Role in the Model |
|---|---|---|
| Individual Characteristics | Personality & cultural values, ability | Input — shape how individuals process situations |
| Group Mechanisms | Teams & diversity, communication, power & influence, leadership | Input — the social context around individuals |
| Individual Mechanisms | Job satisfaction, stress, motivation, trust/justice/ethics, learning & decision-making | Process — the psychological states that drive behavior |
| Individual Outcomes | Job performance, organizational commitment | Outcome — directly observable results |
| Organizational Outcome | Unit/firm performance, financial results | Outcome — aggregate organizational results |
Good Management
Effective managers use OB principles to:
- Attract talented people to the organization
- Develop skills and capabilities in their teams
- Motivate people to perform at high levels
- Retain key talent over the long term
- Organize and coordinate individuals and groups effectively
- Provide wise, ethical, and effective leadership
Management sits atop the core business functions (Operations, Finance, Marketing, R&D), integrating and directing them all.
W1C: Why Does OB Matter?
Research evidence for the business impact of good people management
Startup IPO Survival Study
A landmark study tracked 170 companies that went public (IPO). After 5 years:
170
IPO startups tracked
48%
still in business after 5 years
OB
practices predicted survival
Survivors were more likely to:
- Offer stock options or profit-sharing to all employees (not just executives)
- Use full-time employees rather than contractors
- Invest in training and development programs
Takeaway: OB best practices — equity, stability, and development — significantly predict organizational survival.
Burger King Study — Social Recognition
An experiment tested whether social recognition (non-financial acknowledgment of good work) improves performance.
Intervention
- Managers trained to recognize employees verbally for good work
- Simple, low-cost behavioral change
Results
- 44 sec drive-through time (trained) vs. 62 sec (control)
- 16% better employee retention rate
Key finding: A simple OB intervention (social recognition) produced measurable improvements in both performance and retention — at essentially zero cost.
W1D: The Resource Perspective
Individuals and teams as valuable organizational resources
The resource perspective frames people as a key organizational resource — one that can be managed to simultaneously increase revenue and decrease costs.
Increase Revenue
- +Team synergy — Coordinated teams produce more than the sum of individuals
- +Loyalty & motivation — Committed employees go above and beyond for customers
- +Charismatic leadership — Inspires teams to achieve more than expected
- +Effective decision-making — Better decisions lead to better products and strategies
- +Customer satisfaction — Satisfied employees create satisfied customers who return
- +Diversity fosters innovation — Diverse teams generate more creative solutions
Decrease Costs
- −Lower turnover costs — Retaining employees avoids recruitment, hiring, and training expenses
- −Reduced stress costs — Managing workplace stress reduces absenteeism and health costs
- −Better retention — High commitment = less churn = fewer replacement costs
- −Fewer formal processes — Satisfied, trusted employees need less formal monitoring and control
- −Effective decisions — Fewer costly errors and misallocations
- −Less financial incentive reliance — Non-monetary motivation reduces compensation overhead
Wrap-Up: The IPO Model Revisited
The resource perspective reinforces the IPO model: investing in people (inputs) and designing effective processes (OB interventions) generates measurable outcomes — both financial performance and individual well-being.
W1E: Framing and Addressing Management Problems
Diagnosing why people don't do what they need to do
What is a Management Problem?
A management problem exists when individuals, groups, or organizations fail to meet their goals because people are not doing what they need to do. The root question is always: Why not?
Not ABLE
Lack skills, resources, clear expectations, or capacity
Don't CHOOSE to
Not motivated, don't see value, or choose not to
Addressing Management Problems
The manager's job is to create conditions under which people both:
ABLE to behave
- Clear expectations and goals
- Proper skills and training
- Adequate resources and tools
- Supportive work environment
CHOOSE to behave
- Motivation and incentives
- Meaningful and satisfying work
- Trust, fairness, and respect
- Culture that values the behavior
Case Examples
Intense pressure to meet sales targets led employees to engage in fraudulent sales practices. The CHOOSE dimension was corrupted — employees chose unethical behavior because the culture rewarded results at any cost.
Rapid growth required employees to work smarter and harder, but people weren't adapting fast enough. Both ABLE (needed new skills) and CHOOSE (motivation to embrace change) were involved.
Slow processes and staff not following updated protocols led to inefficiency. Root cause: were staff not ABLE (didn't know the protocols) or not CHOOSING to (resistant to change)?
W2A: Job Performance
What counts as performance and how to measure it
What is Job Performance?
Job performance = the set of employee behaviors that contribute positively or negatively to organizational goal accomplishment.
Performance is about behaviors, not just outcomes. The same outcome can result from different behaviors, and behaviors are more directly under management control than outcomes.
Task Performance
Task performance refers to behaviors that directly involve the transformation of organizational resources into the goods or services the organization produces.
Routine Task Performance
Programmed
Responding to task demands in a habitual or programmed way — well-defined procedures and predictable situations.
e.g. Processing a standard insurance claim using established procedures
Adaptive Task Performance
Flexible
Responding to task demands that are novel, unusual, or unpredictable — adjusting when circumstances change.
e.g. Handling an unexpected system outage by improvising a workaround
Creative Task Performance
Generative
Generating novel and useful ideas or solutions to problems — going beyond existing procedures.
e.g. Designing a new customer onboarding process from scratch
O*NET — Occupational Information Network
O*NET is the US Department of Labor database that describes the tasks, skills, and requirements for virtually every occupation. It provides empirical, detailed task profiles managers can use to define and assess job performance.
How it helps managers:
- Define clear task expectations before hiring
- Identify which performance behaviors matter most for a given role
- Create objective performance appraisal criteria
- Compare jobs across organizations for compensation benchmarking
W2B: Citizenship & Counterproductive Behavior
The full spectrum of work behavior — going above and beyond vs. actively harming
Citizenship Behavior (OCB)
Organizational Citizenship Behaviors (OCBs) are voluntary behaviors not directly required by the job description that nonetheless benefit the organization. They represent the discretionary effort employees choose to give.
Organizational OCBs
Directed at the organization as a whole
- Voice:Speaking up with ideas for improving procedures or policies
- Civic Virtue:Attending optional meetings, keeping up with org news, participating in governance
- Boosterism:Representing the company positively to outsiders
Interpersonal OCBs
Directed at individual coworkers
- Helping:Assisting coworkers with work tasks or personal problems
- Courtesy:Keeping others informed about changes, giving advance notice
- Sportsmanship:Tolerating inevitable inconveniences without complaining
Counterproductive Work Behavior (CWB)
CWBs are employee behaviors that intentionally hinder the organization or its members from achieving goals. They fall into a 2×2 matrix based on target (organizational vs. interpersonal) and severity (serious vs. minor).
| Organizational Target | Interpersonal Target | |
|---|---|---|
| Serious | Property Deviance Sabotage, theft, vandalism, misusing organizational resources deliberately | Personal Aggression Harassment, physical abuse, threats, verbal abuse directed at coworkers |
| Minor | Production Deviance Cyber-loafing, wasting supplies, leaving early, working slowly on purpose | Political Deviance Gossip, favoritism, taking credit for others' work, spreading rumors |
W2C: Performance Management
Setting expectations, assessing performance, and providing feedback
The Performance Management Cycle
- Define clear goals and standards
- Communicate what 'good' looks like
- Align individual goals with org goals
- Use job descriptions and OKRs
- Formal appraisals (annual/quarterly)
- BARS — Behaviorally Anchored Rating Scales
- 360-degree multi-source feedback
- Continuous observation and data
- Regular 1-on-1 coaching conversations
- Developmental feedback (not just evaluation)
- Recognize and reward good performance
- Address gaps with support plans
BARS — Behaviorally Anchored Rating Scales
BARS is an appraisal method that anchors each rating level with specific behavioral examples, reducing rater bias and improving consistency.
Example: "Customer Communication" dimension
5 — Excellent
Proactively updates customers before they ask, anticipates concerns, follows up after resolution
3 — Acceptable
Responds to customer inquiries within 24 hours, answers questions accurately
1 — Poor
Often fails to respond, provides incorrect information, leaves customer issues unresolved
Traditional vs. Modern Performance Management
| Dimension | Traditional | Modern (Recommended) |
|---|---|---|
| Frequency | Annual review | Continuous / ongoing |
| Direction | Top-down (manager evaluates) | Two-way dialogue |
| Focus | Past performance evaluation | Future development |
| Purpose | Compensation decision | Growth & improvement |
| Tone | Evaluative, summative | Coaching, developmental |
| Employee role | Passive recipient | Active participant |
McKinsey Recommendations for Modern PM
- Focus on future development rather than evaluating the past
- Have meaningful conversations throughout the year, not just at review time
- Decouple compensation decisions from developmental conversations — keep them separate
- Make feedback a habit, not a once-a-year event
W2D: Organizational Commitment
Why employees stay — and why it matters for performance
What is Organizational Commitment?
Organizational Commitment = the desire to remain a member of an organization.
Emotional attachment and identification with the organization. Employees stay because they genuinely want to.
Love the mission, proud of the culture, feel part of the team
Awareness of the costs associated with leaving. Employees stay because switching is too costly.
High salary hard to replicate, pension vesting, no other options, relocation cost
Sense of obligation or moral duty to remain. Employees stay because it feels wrong to leave.
Loyalty, reciprocity for training invested, sense of debt to the org
EVLN Model — Responses to Negative Events
When employees experience dissatisfaction or negative events, they respond in four ways along two axes: active vs. passive and constructive vs. destructive.
| Constructive | Destructive | |
|---|---|---|
| Active | Voice Actively trying to improve conditions — speaking up, suggesting changes, giving feedback to management | Exit Actively leaving — quitting, transferring, searching for a new job |
| Passive | Loyalty Passively waiting and hoping things improve — staying put, remaining faithful | Neglect Passively allowing conditions to worsen — reduced effort, chronic lateness, higher error rates |
Consequences of Low Organizational Commitment
Psychological Withdrawal
"Warm-chair attrition" — physically present, mentally absent
- Daydreaming
- Excessive socializing
- Looking busy without working
- Moonlighting (working on personal projects)
- Cyber-loafing (personal internet use at work)
Physical Withdrawal
Physically removing oneself from work
- Tardiness
- Extended breaks
- Missing meetings
- Absenteeism
- Quitting (turnover)
Research Evidence
Canadian Food Service Study
- Affective commitment ↑ → higher job performance
- Continuance commitment ↑ → lower job performance
- Employees who stay because they want to work harder; those who stay because they have to do just enough
Meyer et al. 2002 Meta-Analysis
- Affective commitment: positively correlated with performance
- Normative commitment: positively correlated with performance (though weaker)
- Continuance commitment: negatively correlated with performance
Managerial implication: Build affective commitment, not just continuance commitment. Employees who stay because they want to — not because they feel trapped — perform significantly better.
How to Increase Affective Commitment
Mind Your Culture
- Foster diversity, equity & inclusion (DEI)
- Build a genuine culture of commitment
- Celebrate employee milestones and contributions
Examples: Employee Appreciation Day, Ben & Jerry's social values, Mary Kay recognition culture
Manage Well
- Build trusting manager–employee relationships
- Set clear goals with contingent rewards
- Provide regular, honest feedback
- Support employees' growth and well-being
W2E: Managing, Mentoring & Retaining Employees
Problem employees, coaching, mentoring, and keeping your best people
Managing Problem Employees
When an employee is underperforming, the instinct is often to ignore it or go straight to discipline. A more structured approach:
Ignoring performance problems signals that underperformance is acceptable and demoralizes high performers.
Is it ABLE (lack of skills, resources, clarity) or CHOOSE (motivation, attitude)? The fix differs for each.
Get input from peers and other supervisors — is this pattern consistent, or situational?
Have a direct, honest, and respectful conversation. Identify the gap and agree on a path forward.
Performance Improvement Plan (PIP)
A formal document outlining: expected performance standards, specific gaps, timeline for improvement, available support, and consequences if goals are not met.
Reassignment
Sometimes the issue is fit, not effort. Jim Collins: "Get the right people in the right seats on the bus." Reassignment puts mismatched employees where they can succeed.
Coaching Employees
Expert Approach
Coach provides answers, advice, and direction. Useful when the employee genuinely lacks knowledge and needs direct instruction.
Consultative Approach
Coach draws out the employee's own thinking through questions. Builds ownership, insight, and lasting behavior change. Usually more effective.
Who is Coachable? (7 traits)
Coaching Your Boss
- Ask permission first — don't assume your boss wants coaching
- Appeal to superordinate goals — frame feedback in terms of shared team/org goals
- Specify behaviors — focus on observable actions, not personality
- Stay future-focused — avoid relitigating the past
Mentoring Employees
Mentoring is a longer-term developmental relationship where a more experienced colleague (mentor) guides and supports the professional growth of a less experienced person (mentee).
Mentor provides:
- Career guidance and navigation
- Organizational knowledge and context
- Networking introductions
- Emotional support and encouragement
Mentee gains:
- Faster career development
- Insights from experience
- Increased organizational commitment
- Visibility and sponsorship
Training & Development
Organizations invest heavily in employee development — and the most effective learning doesn't happen in classrooms.
PwC 70-20-10 Development Model
70%
By Doing
On-the-job experience, stretch assignments, new challenges
20%
From Others
Coaching, mentoring, peer feedback, observation
10%
Formal Training
Courses, workshops, e-learning, certifications
$55.8B
US training expenditures (2012)
$101.6B
US training expenditures (2022)
Retaining Talent
3.5M
people quit per month in the US
18%
of the workforce turns over annually
~20%
of annual salary to replace one employee
Why People Quit
- Poor relationship with their boss
- Lack of growth opportunities
- Better offer from another employer
- Predictors: low job satisfaction + low organizational commitment
Strategies to Reduce Turnover
- Design satisfying and meaningful jobs
- Develop high performers (training & growth)
- Provide realistic job previews (avoid unmet expectations)
- Ensure pay equity relative to market
- Hire for person–organization fit
W3A: Motivation & Expectancy Theory
Definition, measurement, EIV model, and self-efficacy
What Is Motivation?
Gallup 2021
80%
of employees globally are not engaged in their work
We can directly observe behavior (e.g. perfect attendance) but we can only infer what causes it — is it motivation, conscientiousness, or something else? To test our inference we need an agreed definition and measurement approach.
Performance = Ability × Motivation × Opportunity
Definition
An unseen force that initiates work-related effort and determines its direction, level, and persistence.
How We Measure It
- Direction — what is done
- Level — how hard (intensity)
- Persistence — how long
Sources of Motivation
Expectancy Theory (EIV / VIE)
Expectancy theory asks three sequential questions. Motivation is high only when all three answers are positive.
| Component | Question | Key Idea |
|---|---|---|
| Expectancy (E) | If I try hard, will I perform well? | Belief that effort leads to performance. Driven by self-efficacy — the belief that you have the capabilities needed to execute the required behaviors. |
| Instrumentality (I) | If I perform well, will I receive outcomes? | Belief that performance leads to outcomes. Requires trust, fair evaluations, available & timely rewards, and credible organizational control. |
| Valence (V) | Will those outcomes satisfy me? | Belief that outcomes will be satisfying. Includes intrinsic rewards (enjoyment, challenge) and extrinsic rewards (pay, praise, awards). |
Self-Efficacy (Bandura, 1977)
The belief that a person has the capabilities needed to execute the behaviors required for task success. Affects the Expectancy component.
Four Sources of Self-Efficacy
Past Performance
Prior mastery experiences are the strongest source — success raises efficacy, failure lowers it
Vicarious Experience
Seeing someone similar succeed raises your own efficacy (social modeling)
Social Persuasion
Encouragement or feedback from others that you have the ability to succeed
Physiological States
Mood, stress levels, and physical arousal affect your perceived capability
Intrinsic Motivators
Rewards intrinsic to the work itself
- Enjoyment of the task
- Entertainment / challenge
- Relief of boredom
- Sense of purpose or meaning
Extrinsic Motivators
Rewards extrinsic to the work itself
- Economic: pay, bonuses, incentives
- Social: praise, recognition, awards
- Career: promotions, titles
W3B: Self-Determination Theory
Autonomy, competence, relatedness, and why internalized motivation outperforms external control
Three Basic Psychological Needs
Internalized motivation comes from work that satisfies three fundamental human needs (Deci & Ryan, 2008). When these needs are met, employees develop autonomous motivation — they want to do the work rather than feeling they have to.
The need to be free — to direct our own actions and feel we are choosing what we do rather than being controlled.
Example: Being able to decide how to approach a project, flexible work hours, choosing which assignments to take on.
The need to develop mastery over everyday challenges and feel capable at what we need to do.
Example: Stretch assignments, skill development opportunities, clear feedback that helps you improve.
The need to have others value us for who we are and to be connected to something greater than ourselves.
Example: Belonging to a team, meaningful relationships with coworkers, work that contributes to a larger mission.
Two Types of Management
Controlling Management
- Uses pressure, surveillance, deadlines as control
- Relies on external rewards and punishments
- Produces introjected motivation — compliance, not commitment
- Can undermine intrinsic motivation over time
Autonomy-Supportive Management
- Takes the individual's perspective
- Supports a sense of choice and ownership
- Responsive to thoughts, questions, and initiatives
- Fosters internalized motivation
Evidence: Autonomy Support Works
Providing autonomy support consistently boosts internalized motivation across contexts (Deci & Ryan, 2008, Canadian Psychology):
In Education
- Greater persistence on learning tasks
- Higher well-being and lower anxiety
- Better academic performance
At Work
- Greater job satisfaction
- Higher trust in management
- Better engagement and performance
Source: Deci, E.L. & Ryan, R.M. (2008). Facilitating optimal motivation and psychological well-being across life's domains. Canadian Psychology, 49, 1.
W3C: Goal Setting & Equity Theory
SMART goals, specific/difficult goals, equity distress, and responses to inequity
Goal Setting Theory
Goals are the primary drivers of the intensity and persistence of effort. Goal-setting theory has strong practical applications — performance reviews, job interviews, and goal-setting software all build on this research.
Specific vs. Vague Goals
✓ Specific
"Score a 90% on this exam"
✗ Vague
"Do your best on this exam"
Difficulty Sweet Spot
People work harder when goals are difficult but not impossible. Too easy = low effort; too hard = give up.
How Specific, Difficult Goals Help
- Direct attention to goal-related activity
- Increase intensity of effort
- Increase persistence
- Prompt useful task strategies
Goal-Setting Works Best When…
✓Goals are specific and difficult
✓Useful feedback is provided
✓Individuals participate in setting goals
✓The task is not overly complex
✓Goal commitment is high
SMART Goals Framework
S
Specific
Clear, well-defined, unambiguous
M
Measurable
Quantifiable progress and endpoint
A
Achievable
Challenging but realistic
R
Relevant
Aligned with broader objectives
T
Time-bound
Clear deadline or timeframe
Equity Theory
Equity is a basic need. We seek to have the ratio of our outcomes to inputs match those of a comparison other. Motivation doesn't just depend on your own beliefs — it also depends on what happens to other people.
The Equity Ratio
Self
Outcomesself
Inputsself
Comparison Other
Outcomesother
Inputsother
When your ratio is lower than the comparison other's, you feel underpaid/undervalued → equity distress.
Equity Distress
- The greater the inequity, the greater the distress
- Major forms: anger (underpayment) and guilt (overpayment)
- Balance may be restored by changing actual inputs or outcomes
- Or by psychologically distorting perceptions of inputs and outcomes
Even monkeys reject unequal pay — capuchin monkeys given cucumber instead of grapes (when a peer gets grapes) will refuse and throw the food back.
Responses to Underpayment Inequity
- Reduce work effort or quality (reduce inputs)
- Request a raise or promotion (increase outcomes)
- Compare to a lower-paid reference group
- Leave the organization (exit)
- Engage in counterproductive behavior (e.g., theft)
Responses to Overpayment Inequity
- Work harder or put in more effort (increase inputs)
- Convince yourself you deserve it (rationalize)
- Compare to a higher-paid reference group
- Feel short-lived guilt that fades over time
W4A: Decision Making
Why we make bad decisions — and how to make better ones
Two Modes of Thinking
Our brains use two distinct thinking systems. Decision-making is constrained by bounded rationality — limited information, time, and cognitive processing ability.
System 1: Intuitive
Unconscious, fast, automatic. Relies on mental shortcuts (heuristics). "Go with your gut." Default mode — avoids effortful System 2 thinking.
Useful for routine decisions; dangerous for complex or novel ones.
System 2: Analytical
Conscious, slow, deliberate. Requires effort and attention. Used for complex problems, new situations, and decisions with high stakes.
More accurate but cognitively expensive — people avoid it when possible.
Decision-Making Biases
| Bias | Definition | Example |
|---|---|---|
| Availability Bias | Personal familiarity with something inflates our estimate of its probability | Overestimating how many students wear Gies gear because you notice it more |
| Representativeness Bias | An extreme event is taken as representative of a whole category, ignoring base rates | Expecting a stock to keep rising because it rose last week |
| Anchoring Bias | Over-reliance on the first number seen as a reference point; insufficient adjustment | A high asking price anchors salary negotiations upward even when unreasonable |
| Confirmation Bias | Seeking information that confirms an initial decision and ignoring contradicting evidence | Only reading positive reviews after deciding to buy a product |
| Overconfidence Bias | Overestimating the accuracy of predictions or one's own skill | Believing your forecast is correct despite poor track record |
| Escalation of Commitment | Continuing a failing course of action ('throwing good money after bad') due to sunk costs | eBay outbid notifications are designed to trigger this; Digg rejecting Google's $20M offer |
Tips to Improve Decision Making
- Be aware of natural biases and heuristics
- Use confidence intervals rather than single-point estimates
- Use trial-and-error calibration with feedback
- Engage in healthy skepticism — question initial impressions
Rational Decision Making (6 Steps)
- Determine the appropriate criteria
- Generate a list of available alternatives
- Evaluate alternatives against the criteria
- Choose the solution that maximizes value
- Implement the appropriate solution
- Test whether the solution delivers expected outcome
W4B: Learning
Types of knowledge, methods of learning, and growth mindset
What Is Learning?
Definition
Learning reflects relatively permanent changesin an individual's knowledge or skill that result from experience.
Explicit Knowledge
- Can be described in formal language
- Readily available to most people
- Often based on established work processes
Tacit Knowledge
- "Know-how" acquired through experience
- Difficult or impossible to articulate to others
- Often resembles intuition
Three Methods of Learning
Observation
Social Learning Theory (Bandura, 1977)
People learn by watching others. Behavioral modeling: observe → learn → repeat the observed behavior. Effective when models are credible and rewarded.
Reinforcement
Reinforcement Theory
People repeat behaviors they are rewarded for. Positive reinforcement strengthens desired behaviors. Combines with observation: you imitate AND get rewarded.
Experimenting
Experiential Learning
Learning by doing. Hands-on experience helps connect knowledge to real-world situations. More effective than passive reading or listening.
Goal Orientation
Goal orientation is one's reason for engaging in tasks — it affects motivation and performance at work.
Mastery Orientation
Goal: to learn, gain knowledge, and grow. Intrinsically motivated by the learning process itself.
"I study BADM 310 to gain knowledge about management."
Outcome: 33% employment rate in studies
Performance Orientation
Goal: to outperform others or avoid failure. Motivated by comparison and grades.
"I study BADM 310 to get an A."
Outcome: 9% employment rate in studies
Growth vs. Fixed Mindset
Implicit Learning Theory (Dweck): what we believe about our own ability determines how we approach tasks and respond to feedback.
Growth Mindset
Belief that ability can be developed through effort and practice. Leads to mastery goal orientation.
- Embraces challenges and persists after setbacks
- Views feedback as learning, not criticism
- Effort is the path to mastery
Fixed Mindset
Belief that ability is innate and unchangeable. Leads to performance goal orientation.
- Avoids challenges where failure is possible
- Gives up quickly when obstacles arise
- Sees effort as pointless if talent is fixed
Real-World Impact
- Growth mindset → learning goal orientation → effort → success
- Helps diverse teams outperform in business simulations (Pieterse et al., 2013)
- Microsoft under CEO Satya Nadella shifted culture from "know-it-all" to "learn-it-all"
- Recruiters: "I don't care how good they are — I care how much they are improving."
W5A: Personality
The Big Five (OCEAN), MBTI, and their links to organizational behavior
What Is Personality?
An enduring pattern of behavior, thoughts, and emotions shown by individuals.
Personality is stable across time and situations. It is a descriptive taxonomy — not a judgment of character.
The Big Five (OCEAN / CANOE)
A scientifically validated model derived from factor analysis of all known personality traits. Five broad dimensions that together describe the full range of human personality.
High scorers:
Curious, imaginative, creative, complex, refined, sophisticated
Low scorers:
Uninquisitive, conventional, conforming, simple, unartistic
OB link: Creative task performance
High scorers:
Dependable, organized, reliable, ambitious, hardworking, persevering
Low scorers:
Careless, sloppy, inefficient, negligent, lazy, irresponsible
OB link: Task & citizenship performance, commitment — strongest predictor of job performance
High scorers:
Talkative, sociable, passionate, assertive, bold, dominant
Low scorers:
Quiet, shy, inhibited, bashful, reserved, submissive
OB link: Positive affect and leader emergence
High scorers:
Kind, cooperative, sympathetic, helpful, courteous, warm
Low scorers:
Critical, antagonistic, callous, selfish, rude, cold
OB link: Interpersonal citizenship behavior
High scorers:
Nervous, moody, emotional, insecure, jealous, unstable
Low scorers:
Calm, steady, relaxed, at ease, secure, contented
OB link: Negative affect (stress) and job dissatisfaction
Myers-Briggs Type Indicator (MBTI)
A popular personality framework based on four dichotomies. Widely used for self-awareness training in organizations.
E vs. I: Extraversion vs. Introversion
How you get energy — from external sources or from within.
S vs. N: Sensing vs. Intuition
How you take in information — concrete details or abstract patterns.
T vs. F: Thinking vs. Feeling
How you make decisions — logic-based or values-based.
J vs. P: Judging vs. Perceiving
How you relate to the outside world — structured or flexible.
Important Caveat
MBTI is useful for self-awareness discussions but is not supported by high-quality research evidence as a predictor of job performance. The Big Five has far stronger empirical support.
W5B: Ability
Cognitive ability, emotional intelligence, and predicting job performance
Performance = Ability × Motivation
Ability is the relatively stable capability people have to perform a particular range of related activities.
When hiring managers try to predict job performance and retention, past performance is the best predictor of future performance.
Cognitive Ability (Intelligence)
Definition
The ability of the human brain to process, store, and extract information, including attention, memory, and reasoning ability.
Research Evidence (Hunter & Hunter, 1984 meta-analysis)
- General cognitive ability accounts for 26% of job performance variance
- Accounts for 25% of college GPA variance
- One of the biggest predictors of new hire performance
Emotional Intelligence (EI)
The ability to carry out accurate reasoning about emotions and to use emotions and emotional knowledge to enhance thought and actions.
Self-Awareness
Understand and accurately express the emotions you are experiencing.
Self-Management
Quickly recover from emotional experiences; control your own feelings.
Social Awareness
Recognize and understand the emotions other individuals are feeling.
Relationship Management
Harness emotions to improve chances of success in a given situation.
Who Needs EI at Work?
- Leaders (motivating and influencing others)
- Team members (collaboration and conflict resolution)
- People in jobs requiring "emotional labor" (service, healthcare, teaching)
Ability as a Predictor of Job Performance
Better Predictors
- Past performance
- Cognitive ability
- Growth mindset
Worse Predictors
- First impressions
- Similarity to recruiter
- Unstructured interview questions
W5C: Cultural Values
Hofstede's six cultural dimensions and their organizational implications
National Culture
The shared values, societal traditions, and collective programming that underlie culture — influencing expectations and behaviors in the workplace.
Managers must be aware of underlying cultural assumptions, not just visible surface differences. Approaches that work well in one culture may not work well in another.
Hofstede's Six Cultural Dimensions
Individualism vs. Collectivism
The degree of interdependence a society maintains among its members.
Collectivism
Strong ties; communal interests valued over individual.
e.g. Colombia, China, Japan, Pakistan
Individualism
Loose ties; each person looks after their own interests.
e.g. United States, Canada, Australia
Power Distance
How people expect and accept unequal power distribution.
Low Power Distance
Egalitarian; flat hierarchies; subordinates challenge authority.
e.g. United States, Australia, Israel
High Power Distance
Paternalistic and autocratic; hierarchies respected.
e.g. Malaysia, India, Mexico
Masculine vs. Feminine
What motivates people to work — wanting to be the best vs. liking what you do.
Feminine
Values caring for others and quality of life.
e.g. Sweden, Netherlands, Russia, Iceland
Masculine
Values competition, achievement, and success.
e.g. China, Germany, Japan
Uncertainty Avoidance
How comfortable society members are with uncertainty and ambiguity.
Low UA
Relaxed; tolerates deviation from norms; comfortable with risk.
e.g. Jamaica, China
High UA
Rigid and rule-following; tries to control the future.
e.g. Italy, Chile, Greece
Long-Term vs. Short-Term Orientation
How society maintains links with its past and how it plans for the future.
Short-Term
Maintains time-honored traditions; avoids change.
e.g. United States, Morocco, Iran
Long-Term
Pragmatic; focuses on the future and adapts to change.
e.g. South Korea, France, Switzerland, China
Indulgence vs. Restraint
How children are socialized to control their desires and impulses.
Restraint
Values self-control; suppression of gratification.
e.g. India, China, Bangladesh
Indulgence
Values leisure, fun, and self-gratification.
e.g. Australia, Chile, Sweden