LESSON&2:&INDIVIDUAL&DIFFERENCES:&PERSONALITY&AND&ABILITY&
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Case!of!Indra!Nooyi,!CEO!of!PepsiCo!
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Effectively!working!with!others!requires!an!understanding!and!appreciation!of!how!people!differ!from!one!
another.!Managers!need!to!understand!individual!differences!because!they!have!an!impact!on!the!feelings,!
thoughts,!and!behaviors!of!each!member!of!an!organization.!Individual!differences!affect!for!example,!job!
satisfaction,!job!performance,!job!stress!and!leadership.!
Only! if! members! of! an! organization! understand! each! other,! their! interactions! result! in! high! levels! of!
satisfaction!and!performance.!!
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Individual!differences!may!be!grouped!in!2!categories:!personality!and!ability!differences.!
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The&nature&of&personality&
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People’s!personality!can!be!described!in!a!variety!of!ways.!Some!people!seem!to!be!perfectionists:!they!can!
be!critical,!impatient,!demanding!and!intense;!other!people!are!relaxed!and!easygoing.!!
Personality, is, the$ pattern$ of$ relatively$ enduring$ ways$ that$ a$ person$ feels,$ thinks$ and$ behaves.$ It’s! an!
important!factor!in!accounting!for!why!employees!act!the!way!they!do!in!organizations!and!why!they!have!
favorable!or!unfavorable!attitudes!toward!their!jobs!and!organizations.!!
Personality!has!been!shown!to!influence!career!choice,!job!satisfaction,!stress,!leadership!and!some!aspects!
of!job!performance.!!
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Determinants,of,personality:,nature,and,nurture,
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Personality! is! partially! determined! by! the! biological! heritage! (nature).! The! genes! influence! how! your!
personality!has!unfolded.!
50%!of!the!variation!we!observe!in!people’s!personalities!can!be!attributed!to!nature,!50%!is!influence!by!
life!experiences!(nurture).!
Personality! develops! over! time! collecting! the! experiences! people! have! as! children! and! adults:!
strictness/permissiveness!of!parents,!brothers!or!sisters,!the!extent!to!which!parents!and!teachers!demand!
a!lot!from!a!child,!success!or!lack!of!success!at!making!friends!or!getting!and!keeping!a!job,!culture.!!
In! time! ranging! 5Q10! years,! personality! is! quite! stable:! this! does! not! mean! that! it! cannot! change! but! it!
means!that!personality!is!likely!to!change!only!over!many!years.!Situation!of!crisis!at!work!are!likely!to!be!
felt!if!they!continue!for!many!years.!!!
An!important!outcome!is!that!managers!should!not!expect!to!change!employees’!personalities,!especially!
because!they!are!relatively!fixed!in!the!ST.!
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Personality,! nevertheless,! is! an! important! individual! difference! that! managers! and! other! organizational!
members! need! to! take! into! account! in! order! to! understand! why! people! feel,! think! and! act! as! they! do! in!
organizations.!!
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Personality,and,the,situation,
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Personality! accounts! for! observable! regularities! in! people’s! attitudes! and! behavior,! therefore! it’s!
reasonable!to!think!that!it!would!account!for!such!regularities!also!at!work.!!
It’s! useful! for! explaining! and! predicting! how! employees! generally! feel,! think! and! behave! on! the! job.!
Moreover!it!has!been!used!in!order!to!explain!work!related!attitudes!and!behavior:!job!satisfaction,!stress,!
choice!for!career,!leadership.!!
However,! the! organizational! situation! also! affects! work! attitudes! and! behaviors.! When! there! are! strong!
situational! constraints! and! pressures! people! are! forced! to! behave! in! a! certain! way! regardless! of! their!
personalities!(ex.!assembly!line!manufacturing!or!McDonald’s).!
The! employee! is! not! free! to! vary! his! behavior! and! therefore! personality! is! not! useful! for!
understanding/predicting! job! performance! in! this! situation:! it! doesn’t! matter! if! he’s! shy! or! outgoing,! the!
task!is!always!the!same.!!
When!situational!pressures!are!weak,!employees!have!more!choice!about!how!to!perform!a!job!and!P!plays!
an!important!role.!What!a!person!put!in!the!job!will!sometimes!depends!on!his!P!(ex.!Literature!program!of!
a!teacher:!acting!or!reading?).!
!
Therefore,! both! personality! and! situational! factors! affect! organizational! behavior.! It’s! the! interaction! of!
personality! and! situational! factors! that! determines! how! people! think,! feel,! and! behave! in! general! and,!
specifically!how!they!do!so!within!an!organization.!!
An! understanding! of! employees’! personalities! and! the! situations! in! which! they! perform! best! enables! a!
manager!to!help!employees!perform!at!high!levels!an!feel!good!about!work!they!are!doing.!Furthermore,!
when! people! at! all! levels! in! an! organization! understand! how! personality! and! the! situation! interact,! good!
working!relationships!and!organizational!effectiveness!are!promoted.!!
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The!interactions!of!p!and!situational!factors!often!influence!the!kinds!of!positions!and!organizations!people!
are!attracted!to!and!their!effectiveness.!
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Personality:,a,determinant,of,the,nature,of,organizations,
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Schneider! (university! of! Maryland)! has! studied! they! way! in! which! personality! determines! the! nature! of!
whole!organizations.!His!schema!is!the!ASA,–,attraction,selection,attrition,framework.,
He!says!that!the!personality!of!a!whole!organization!is!the!product!of!the!per.!of!its!employees.!!
People! with! a! similar! per.! tend! to! be! attracted! to! an! organization! (attraction)! and! hired! by! it! (selection;!
individuals! with! other! p! tend! to! leave! the! organization! (attrition).! As! a! result,! there! is! consistency! and!
similarity! into! of! p! into! the! organization! and! this! “typical”! p! determines! the! nature! of! the! organization!
itself.!!
When!managers!hire!new!people,!they!implicitly!size!up!the!extent!to!which!their!personalities!match!the!p!
of!current!members.!!This!likely!to!occur!in!small!organizations.!!
Implications, of, ASA:, creative! and! risk! lover! people! are! attracted! to! entrepreneurial! organizations! and!
would!be!likely!to!be!hired!by!such!organizations.!On!one!hand!the!employees!influence!the!nature!of!the!
organization!but!on!the!other!hand!the!nature!of!the!organization,!in!turn,!influences!employees’!feelings,!
thoughts!and!behaviors!and!reinforces!their!own!propensity!for!risk!taking.!!
But,!ASA!processes!can!also!drive!in!a!poorly!or!fail!organization.!!
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The&BIG&FIVE&model&of&personality&
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Everyone!has!a!specific!personality:!there!is!no!such!thing!as!a!lot!of!personality!or!no!personality.!!
It’s!important!to!distinguish!between!different!types!of!personality!because!it’s!an!important!determinant!
of!how!a!person!thinks,!feels!and!behaves.!
Researches!describes!p!in!terms!of!traits.!
A!trait!is!a!specific!component!of!p!that!describes!the!particular!tendencies!a!person!has!to!feel,!think!and!
act! in! certain! ways,! such! as! in! a! shy! or! outgoing,! critical! or! accepting,! compulsive! or! easygoing! manner.!
Generally!traits!describes!how!the!person!generally!tends!to!feel,!think!and!behave.!!
The!traits!can!be!organized!in!a!hierarchy,!which!at!the!top!has!extraversion,!neuroticism,!agreeableness,!
conscientiousness!and!openness!to!experience.!!
Each!trait!represent!a!continuum!along!which!a!certain!aspect!or!dimension!of!personality!can!be!placed.!A!
person!can!be!high,!low,!average!or!anywhere!in!between!on!the!continuum!for!each!trait!.!
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Extraversion,(or,positive,affectivity),
It! predisposes! individuals! to! experience! positive! emotional! states! and! feel! good! about! themselves! and!
about! the! world! around! them! .! People! tends! to! be! sociable,! affectionate! and! friendly.! At! work,! they!
experience!positive!moods!be!satisfied!with!their!jobs!and!generally!feel!good!about!the!organization!and!
those!around!them.!They!are!more!likely!to!enjoy!to!socializing!with!their!coworkers.!
People!in!this!case!normally!feel!good!at!work!and!are!satisfied!with!their!jobs.!The!performance!is!good!in!
jobs!such!as!sales,!management!which!require!social!interaction.!!
Introverts!(low!on!the!extraversion!scale)!are!less!likely!to!experience!positive!emotional!states!and!have!
fewer!social!interaction!with!others.!!
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Test:!How!accurately!does!each!statement!describe!you?!(on!a!range!between!1!=!False!to!5!=!True)!
Q It!is!easy!for!me!to!become!enthusiastic!about!things!I!am!doing.!
Q I!often!feel!happy!and!satisfied!for!no!particular!reason.!
Q I!live!a!very!interesting!life.!
Q Every!day!I!do!some!things!that!are!fun.!
Q I!usually!find!ways!to!liven!up!my!day.!
Q Most!days!I!have!moments!of!real!fun!or!joy.!
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Neuroticism,(or,negative,affectivity),
People! tend! to! experience! negative! emotional! states,! feel! distressed,! their! view! is! negative.! They!
experience! negative! emotions! and! stress! over! time! ad! across! situations.! They! are! likely! to! experience!
negative!mood!at!work,!stress,!and!they!have!a!negative!orientation!towards!the!work!situation.!!
NB:! Neuroticism! doesn’t! mean! to! have! a! psychological! problem,! in! fact! it’s! a! normal! trait! and! every!
psychologically!healthy!individuals!possess!to!a!certain!degree.!!
Such!as!individuals!are!more!critical!of!themselves,!therefore!they!improve!their!performance.!As!a!result!
they! may! be! proficient! in! certain! situations! (in! tasks! with! high! degree! of! control,! critical! thinking! and!
evaluation),!but!they!are!critics!in!groups!and!they!play!the!devil’s!advocate!role.!!
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Agreeableness,
It’s!the!distinct!trait!which!distinguish!individuals!who!get!along!well!with!other!people!from!those!who!do!
not.!Likeability!and!the!ability!to!care!for!others/affectionate!to!them,!is!a!feature!of!agreeableness.!!
Individuals!low!in!this!trait!are!antagonistic,!mistrustful,!unsympathetic,!uncooperative,!and!rude.!!
Agreeable!individuals!are!easy!to!get!along!a!team.!!
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Conscientiousness,
It’s! the! extent! to! which! an! individual! is! careful,! scrupulous! and! persevering.! Individuals! high! on!
conscientiousness! are! organized! and! have! a! lot! of! selfQdiscipline;! despite! of! others! with! low!
conscientiousness!who!lack!in!direction!and!selfQdiscipline.!!
It’s!a!good!predictor!of!performance.!Obviously!people!must!have!also!the!capabilities!and!skills!needed!to!
be!high!performers.!
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Openness,to,experience,
It! captures! the! extent! to! which! an! individual! is! original,! open! to! a! wide! variety! of! stimuli,! has! broad!
interests,!and!is!willing!to!take!risks!as!opposed!to!being!narrowQminded!and!cautious.!!
For!jobs!that!change!frequently,!require!creativity!and!innovation!or!involve!considerable!risk,!individuals!
who!are!open!to!experience!may!have!an!advantage.!!
Entrepreneurs,! often! characterized! as! risk! takers,! frequently! start! their! own! business! because! the! large!
organizations!that!employed!them!placed!too!many!restrictions!on!them!and!gave!them!too!little!reward!
for!innovation!and!risk!taking.!!
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Sometimes!the!combination!of!high!openness!to!experience!and!high!conscientiousness!can!be!beneficial!
when!employees!need!to!make!difficult!decisions!in!uncertain!times.!!
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Other,organizationally,relevant,personality,traits…,
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Locus,of,control,
People! differ! in! how! much! control! they! believe! they! have! over! situations! they! are! in! and! over! what!
happens!to!them.!
Externals!or!individual!with!external$locus$of$control$believe!outside!forces!are!largely!responsible!for!their!
fate!and!they!see!little!connection!between!their!own!actions!and!what!happens!to!them.!When!people!like!
this!perform!they!attributes!their!performance!to!external!forces!(luck,!easy!task).!!
Internal$ or! individuals! with! an! internal$ locus$ of$ control$ think! their! own! actions! and! behaviors! have! an!
impact! on! what! happens! to! them.! When! people! with! an! internal! locus! of! control! perform! well,! they! are!
likely!to!attribute!their!performance!to!qualities!within!themselves!such!as!effort!and!ability.!!
Internal!are!more!motivated!than!externals.!Internals!don’t!need!supervision!because!they!believe!in!the!
importance!of!their!job.!
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SelfJmonitoring,
It’s!the!extent!to!which!people!try!to!control!the!way!they!present!themselves!to!others.!High!selfQmonitors!
want!their!behavior!to!be!socially!acceptable!and!are!attuned!to!any!social!cues!that!signal!appropriate!or!
inappropriate! behavior.! They! try! to! behave! in! an! appropriate! manner! in! a! certain! situation:! for! ex! in! a!
meeting!if!people!suggest,!they!suggest!as!well.!
SelfQ!monitoring!people,!by!tailoring!their!behavior,!may!perform!well!in!sales!or!consulting!because!they!
interact!with!different!type!of!people.!!
They!want!to!manage!the!impressions.!!
Low! selfQ! monitoring! don’t! care! about! all! of! this:! for! ex! they! act! bored! in! a! meeting.! They! are! guided! by!
their!own!attitudes,!beliefs,!feeling!and!principles!and!they!don’t!care!about!others’!judgment.!They!play!
the!devil’s!advocate!in!decision!making!groups.!!
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SelfJesteem,
It’s!the!pride!in!themselves!and!their!capabilities.!People!generally!think!to!be!capable!of!dealing!with!most!
situations.!Low!selfQesteem!doubt!their!capabilities,!are!apprehensive!about!their!ability!to!succeed.!
SelfQesteem! has! several! implications! for! understanding! behavior! in! organizations.! SelfQesteem! influences!
people’s!choices!of!activities!and!jobs.!Individuals!with!high!selfQesteem!choose!challenging!career!and!jobs.!
Once!on!the!job!they!set!higher!goals!for!themselves!and!be!more!likely!to!tackle!difficult!tasks.!They!have!
positive!impact!on!motivation!an!job!satisfaction.!!
NB:!people!with!low!selfQesteem!can!be!capable!as!well.!
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Type,A,and,Type,B,personalities,
Type!A!has!an!intense!desire!to!achieve,!is!extremely!competitive,!have!a!sence!of!urgency!are!impatient!
and!can!be!hostile.!Such!individuals!have!a!strong!need!to!get!a!lot!of!dome!in!short!time!period!and!can!be!
difficult!to!get!along!with!because!they!are!so!driven.!They!often!interrupt!others!and!finish!sentences!for!
them.!!
It! can! be! seen! as! the! perfect! employee! when! there! is! a! lot! of! work! in! ST! but! he! may! not! be! effective! in!
situations!that!require!a!lot!of!interaction!with!others:!generally!type!A!has!more!conflict!with!subordinates!
and!coworkers.!They!may!be!frustrated!in!LT!situations!because!they!like!to!see!results!quickly.!!
Type!B!are!more!relaxed!and!easygoing!individuals.!!!
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Needs,for,achievement,,affiliation,and,power,
McClelland!has!individuate!3!traits!present!in!all!people!in!vary!degrees.!!
Individuals!with!a!high!need,for,achievement,have!a!special!desire!to!perform!challenging!tasks!wall!and!to!
meet!their!own!personal!standards!for!excellence.!They!like!to!be!in!situations!I!which!they!are!personally!
responsible! for! what! happens,! like! to! set! clear! goals! for! themselves,! are! willing! to! the! personal!
responsibility!for!outcomes,!and!like!to!receive!performance!feedback.!!They!are!in!job!which!help!them!to!
excel:!entrepreneurs!and!managers!for!example.!The!need!for!achievement!often!goes!hand!to!hand!with!
career!success.!
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People!with!a!high,need,for,affiliation!are!especially!concerned!about!establishing!and!maintaining!good!
relations! with! other! people.! They! also! want! good! relation! between! people.! They! like! to! work! in! groups,!
tends!to!be!sensitive!and!avoid!taking!actions!that!would!results!in!interpersonal!conflict.!!
They!are!good!in!jobs!requiring!a!lot!of!interaction.!But!not!all!the!group!must!be!composed!by!high!need!
for!affiliation!individuals!because!in!influence!in!a!negative!way!people.!Moreover!they!are!less!effective!in!
situations!in!which!they!need!to!evaluate!others!bc!it!may!be!hard!for!them!to!give!negative!feedback.!!
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Individuals!with!a!high,need,for,power!have!a!strong!desire!to!exert!emotional!and!behavioral!control!or!
influence!over!others.!These!individuals!are!especially!likely!to!be!found!in!managerial!jobs!and!leadership!
positions.!Individuals!with!a!high!need!for!power!may!actually!be!more!effective!as!leaders!than!those!with!
a!low!need!for!power.!
M.!Stahl!suggests!that!managers!should!have!a!high!need!for!achievement!and!power.!!
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How,personality,is,measured,
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Some!scales!are!developed!to!measure!personality:!a!series!of!questions!about!themselves!is!proposed!to!
the!employee!in!order!to!measure!the!5!big!traits!and!selfQmonitoring.!!
Scales!determine!how!people!who!vary!on!these!traits!respond!to!different!work!situations.!!
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The&nature&of&ability&
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We! must! look! not! only! to! the! employee’s! personality! but! also! at! the! abilities! aptitudes! and! skills! the!
employee!possesses.!!
“Ability”!is!what!a!person!is!capable!of!doing,!therefore!it!has!important!implications!for!understating!and!
managing!organizational!behavior.!It!determines!the!level!of!performance!an!employee!can!achieve!and!bc!
the! effectiveness! of! an! organization! as! a! whole! depends! on! the! performance! levels! of! all! individual!
employees.!The!ability!is!an!important!determinant!in!organizational!performance.!
!
There!are!two!types!of!ability!which!affect!performance:!
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Cognitive,ability,(or,mental,ability),
The! most! general! dimension! of! cognitive! ability! is! general! intelligence:! verbal! ability,! numerical! ability,!
reasoning! ability,! deductive! ability,! ability! to! see! relationships,! ability! to! remember,! spatial! ability,!
perceptual!ability.!!
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Physical,ability,
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The&nature&of&work&attitudes&
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Work!attitudes!are!collections!of!feelings,!beliefs!and!thought!about!how!to!behave!that!people!currently!
hold!about!their!jobs!and!organizations.!!
Work! attitudes! are! more! specific! than! values! and! not! as! long! lasting! because! the! way!people! experience!
their!jobs!often!changes!over!time.!For!ex!a!person’s!work!situation!might!be!altered!due!to!a!job!transfer.!!
Values,!in!contrast,!can!and!often!do!remain!contrast!from!job!to!job!and!organization!to!organization.!Two!
work!attitudes!that!have!especially!important!implications!for!organizational!behavior!are!job!satisfaction!
and!organizational!commitment.!!
Job,satisfaction,is!the!collection!of!feelings!and!beliefs!that!people
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