ENTREP 1101 Entrepreneurial Behavior

Sherwin B. Celestino
Instructor I
College of Business Administration and Accountancy
Central Luzon State University

Lecture 2. The Dynamics of People and Organizations

Overview

High-performance work practices. Values-driven organization. Motivating jobs.

Inspirational leadership. These are just a few of the organizational behavior topics and practices
that have made by a successful organization in a highly competitive and dynamic environment.
On the purpose to help managers and future managers understand what goes on in organizations.
Examine the factors that make companies effective, improve employee well-being, and drive
successful collaboration among coworkers; look at organizations from numerous and diverse
perspectives, from the foundations of employee thoughts and behavior (personality, self-concept,
attitudes, etc.) to the complex interplay between the organization’s structure and culture and its
external environment. This lecture gives some background about the field of organizational
behavior (OB), which investigates the impact individuals, groups, and structure have on behavior
within organizations, for the purpose of applying such knowledge toward improving an
organization’s effectiveness. Some of these backgrounds are the definition of OB and its
importance, the contemporary developments facing organizations—the organizational
opportunities and challenges, the anchors on which OB knowledge is based, and the different
perspectives of organizational effectiveness.

Learning Outcomes

1. Identify the focus and goals of individual behavior within organizations.

2. Explain the role that attitudes play in job performance.
3. Describe different personality theories.
4. Describe perception and factors that influence it.
5. Discuss learning theories and their relevance in shaping behavior.
6. Discuss contemporary issues and challenges in organizational behavior.

Organizational Behavior

According to McShane & Von Glinow (2018), organizational behavior (OB) is the study
of what people think, feel, and do in and around organizations. OB is the systematic study and
careful application of knowledge about how people – as individuals and as groups – act within
organizations. It looks at the hidden aspects of employee behavior, decisions, perceptions, and
emotional responses (Figure 1). It examines how
individuals and groups/teams in organizations
relate to each other and to their counterparts in other
organizations. OB also encompasses the study of
how organizations interact with their external
environments, particularly in the context of
employee behavior and decisions. OB strives to
identify ways in which people can act more
effectively in an organization.

OB is both a scientific discipline and an

applied science. The key characteristics of OB as
scientific discipline is defined as the operating Figure 1. Organizational Aspects
philosophy of the organization. By nature, OB is an
applied science that takes a systematic approach that understands the reason behind the behavior
and influences it in a way that benefits attaining business goals.

Importance of Organizational Behavior

Effective management does depend on OB concepts and practices. Moreover, OB is

valuable for everyone who works in and around organizations. There are three main reasons why
OB theories and practices are important (Figure 2).

1. Comprehend and Predict Workplace

Events. Every one of us has an inherent
drive to make sense of what is going on
around us. The field of organizational
behavior uses scientific research to discover
systematic relationships that give us a
valuable foundation for comprehending
organizational life. It helps us predict and
anticipate future events so we can get along
with others, achieve our goals, and
minimize unnecessary career risks.

2. Adopt More Accurate Personal Theories.

Some OB knowledge is very similar to the
theories you have developed through
personal experience. But personal theories
are usually not quite as precise as they need Figure 2. Importance of OB
to be. Perhaps they explain and predict
some situations, but not others. OB knowledge you will gain will help you challenge and
refine your personal theories, and give you more accurate and complete perspectives of
organizational events.
 3. Influence Organizational Events. OB knowledge helps us get things done in the
workplace by influencing organizational events. organizations are people who work
together to accomplish things, so we need a toolkit of knowledge and skills to work
successfully with others.

Contemporary Issues and Developments Facing Organizations

Organizations are experiencing unprecedented change. Technological developments,

consumer expectations, global competition, and many other factors have substantially altered
business strategy and everyday workplace activities. The field of organizational behavior plays a
vital role in guiding organizations through this continuous turbulence.

Technological change has

always been a disruptive force in
organizations, as well as in society.
Employees, or managers are not
immune to the effects of these
transformational innovations. Other
technologies, such as the telegraph,
smartphone, and the Internet,
potentially improve productivity but
more profoundly alter our
relationships and patterns of
behavior with coworkers, clients,
and suppliers. Recently, information
technology is one of the most
significant forms of technological
change. The introduction of email
has altered communication patterns
and power dynamics throughout Figure 3. Social Media Technology Reshapes the Workplace
most workplaces. Social media and
other social collaboration technologies are slowly replacing email, and will further reshape how
people associate and coordinate with each other. Figure 3 shows how social media technology
reshapes the workplace.

Globalization refers to economic, social, and cultural connectivity with people in other
parts of the world. Organizations globalize when they actively participate in other countries and
cultures. Globalization offers numerous benefits to organizations in terms of larger markets, lower
costs, and greater access to knowledge and innovation.

Technology, globalization, and several other developments have substantially altered the
employment relationship in most countries. Most employees before would finish work after eight
or nine hours and could separate their personal time from their employment. Today, they are more
likely to be connected to work on a 24/7 schedule. Another employment relationship trend is for
employees to work away or remote work arrangement from the organization’s traditional common
work site.

Immigrants in a country and may other countries have much more multicultural origins
resulting in a much more diverse workforce in most organizations.

Anchors of Organizational Behavior Knowledge

There conceptual anchors represent the principles on which OB knowledge is developed

and refined (Figure 4).

Systematic Research Anchor. A key feature of OB knowledge is that it should be based

on systematic research, which typically involves forming research questions, systematically
collecting data, and testing hypotheses against those data. Systematic research investigation is the
basis for evidence-based management—making decisions and taking actions guided by research
evidence.

Multidisciplinary Anchor. The field of OB should multidisciplinary that welcomes the

theories and knowledge from other disciplines, not just from its own isolated research base. For
example, psychological research has aided the understanding of individual and interpersonal
behavior, and sociologists have contributed to the knowledge of team dynamics, organizational
socialization, organizational power, and other aspects of the social system.

Contingency Anchor. Contingencies are identified in many OB theories, People and their
work environments are complex, and the field of organizational behavior recognizes this by stating
that the effect of one variable on another variable often depends on the characteristics of the
situation or people involved. For example, the success of telecommuting depends on specific
characteristics of the employee, job, and organization.

Multiple Levels of Analysis Anchor. Organizational behavior recognizes that what goes
on in organizations can be placed into three different levels of analysis: individual, team/group
(including interpersonal), and organization.

Figure 4. Anchors of OB Knowledge

Perspectives of Organizational Effectiveness

Almost all OB theories have the implicit or explicit objective of making organizations more
effective. In fact, organizational effectiveness is considered the ultimate dependent variable,
which it is the outcome that most OB theories are ultimately trying to achieve. Many theories use
different labels like organizational performance, success, goodness, health, competitiveness,
excellence, but they are basically presenting models and recommendations that help organizations
become more effective. The best yardstick of organizational effectiveness is a composite of four
perspectives: open systems, organizational learning, high-performance work practices, and
stakeholders.

The open systems perspective of organizational effectiveness is one of the earliest and
most-entrenched ways of thinking about organizations. The open systems perspective views
organizations as complex organisms that live within an external environment, have dependence on
the external environment, and interact with the external environment (Figure 5).

Figure 5. Open Systems Perspective of an Organization

The organizational learning

perspective takes the view that
organizations are effective when they
find ways to acquire, share, use, and
store knowledge (Figure 6). Knowledge
is a resource or asset, called intellectual
capital, which exists in three forms:
human capital, structural capital, and
relationship capital.

The high-performance work

practices perspective states that
organizations become more effective
through workplace practices that
Figure 6. Organizational Learning Process
enhance human capital. Motivated and skilled employees offer competitive advantage by
generating more efficient, adaptive, and innovative transformation of inputs to outputs, by
providing better sensitivity to the external environment, and by having better relations with key
stakeholders.

The stakeholder perspective offers

more specific information and guidance by
focusing on the organization’s relationships
with stakeholders, which include
organizations, groups, and other entities that
affect, or are affected by, the company’s
objectives and actions. Figure 7 shows the
interaction and relationship of the
organization and the stakeholders. The
stakeholder perspective identifies specific
social entities in the external environment as
well as employees and others within the
organization (the internal environment), and
recognizes that stakeholder relations are Figure 7. Interaction of Organization and Stakeholders
dynamic; they can be negotiated and
influenced, not just taken as a fixed
condition.

Connecting the Dots: An Integrative Model of Organizational Behavior

Open systems, organizational

learning, high-performance work practices,
and stakeholders represent the four
perspectives of organizational
effectiveness. Organizational effectiveness
is the ultimate dependent variable in
organizational behavior, so it is directly or
indirectly predicted by all other OB
variables. Figure 8 shows the relationship
between organizational effectiveness and
other OB variables. This Integrative
Model of OB is an integrative road map for
the field of organizational behavior, and for
the structure of this book. It is a meta-
model of the various OB topics and
concepts, each of which has its own
explanatory models. It illustrates,
individual inputs and processes influence
individual outcomes, which in turn have a
direct effect on the organization’s
effectiveness. For example, how well Figure 8. Integrative Model of OB
organizations transform inputs to outputs and satisfy key stakeholders is dependent on how well
employees perform their jobs and make logical and creative decisions.

Focus of Organizational Behavior

The focus of OB has three major areas (Figure 9)—the organization and its behavior such
as the structure, culture, human resource, policies and practices; the team/group and its behavior
such as the norms, roles, team building, leadership, and conflict; and the individual and its behavior
such as attitudes, personality, perception, learning and motivation.

Organizations are groups of people

who work interdependently toward some
purpose. It is composed of two or more
individuals or groups of people working
together to achieve a common goal.
Team/Group. It is a group in which
members work together under specific
routines to achieve a specific organizational
goal and compose an organization. Figure 9. Major Areas of OB
Individual. The member per se.

Goals of Organizational Behavior

The four goals of organizational behavior are to describe, understand, predict and control.

1. To describe how people behave under a variety of conditions.

2. To understand why people behave as they do. The second goal is to understand why
people behave as they do.

3. To predict future employee behavior. The third goal is to predict future behavior of
employee, and usually, leaders and managers would have the capacity to predict why the
employees are committed to the organization or not.

4. To control and develop a conducive environment at work. The final goal of organizational
behavior is to control and develop a friendly atmosphere for the organization.

OB is a human tool for human benefit. It is mainly used to analyze the human behavior in
all types of organizations, such as business, government, school and services organizations. In
order to manage the human resources properly, we need to describe, understand, predict, and
control human behavior.
 What employee behaviors are we specifically concerned with these goals?

1. Employee Productivity. An organizational metric evaluated in terms of the output of

an employee in a specific period of time. It is a performance measure of both efficiency
and effectiveness.
2. Employee Absenteeism. It is any failure to show up or to report for work, or remain at
work as scheduled, regardless of the reason.
3. Employee Turnover. The loss of talent in the workforce over time, either voluntary or
involuntary permanent withdrawal from an organization.
4. Organizational Citizenship Behavior (OCB). Positive and constructive discretionary
actions and behaviors of an employee that is not part of the employee’s formal job
description and requirements, but when combined with the same behavior in a group or
organization results in effectiveness or promotes the effective functioning of the
organization.
5. Job Satisfaction. It is the level of contentment employees feel with their job or the aspects
of their job. An employee’s general attitude toward his or her job
6. Workplace Misbehavior. It is any intentional employee behavior that is potentially
harmful to the organization or individuals within the organization, such as violence,
deviance, aggression and anti-social behavior.

Forces of OB

There are a complex set of key forces that affect organizational behavior today. These key
forces are classified into four areas- People, Structure, Technology, and Environment. There is an
interaction of people, structure, and technology and these elements are influenced by the
environment.

1. People. People make up the internal social system of the organization. That system consists
of individuals and groups and groups may be large and small, formal and informal. Groups
are dynamic. Group form, change and disband. Since organization is combination of group
of people. Managers must handle the people in the right direction. Employees bring a wide
array of educational backgrounds, talents and perspectives to their jobs.

What are the changes in the labor force that managers need to adapt to?

• Decline in work ethic and rise in emphasis on leisure, self-expression, fulfillment, and
personal growth.
• Decrease on the automatic acceptance of authority by employees and increase on desires
for participation, autonomy, and control.

What are the factors affecting the workforce?

• Skills become obsolete due to technological advances, and manual workers must either
be retrained for knowledge-oriented jobs or be displaced.
 • Security needs become foremost in the minds of millions of workers due to the threat of
downsizing or outsourcing.

2. Structure. Structure defines the formal relationship and use of people in organization.
There are managers and employees, accounts assemblers in order to accomplish different
kind activities.

3. Technology. Technology provides the resources with which people work. The great
benefit of technology is that it allows people to do more and better work.

What are the impacts of technology?

• Increase use of robots and automated control systems in assembly lines.

• Dramatic shift from a manufacturing to a service economy.
• Advances in computer hardware and software capabilities.
• Widespread use of internet.
• Need to respond to societal demands for improved quality of goods and services at
acceptable prices.

4. Environment. All organizations operate within its internal and external environments. A
single organization does not exit alone, and a part of a lager system that contains many
other elements, such as government, the family and other organizations. The external
environment influences the attitudes of people, affects working conditions, and provides
competition for resources and power.

What are the changes in the environment that create demands on organizations?

• Citizens expect organizations to be socially responsible.

• Rapid globalization of the marketplace.
• Reduced direct impact of unions (as measured by the proportion of the labor force that is
unionized).
• Quicker pace of change in society.

All the elements of environments influence the attitude and provide competition. It must
be considered in the study of human behavior in organization.

Fundamental Concepts of Organizational Behavior

Organization Behavior is based on a few fundamental concepts which revolve around the
nature of people and organizations (Figure 10). In every field of social science or even physical
science, has a philosophical foundation of basic concepts that guide its development. There are
certain philosophical concepts in organizational behavior also.
 Figure 10. Nature of People and Organizations

Nature of People

1. Individual Differences. Every individual in the world is different from others. From the
date of birth, each person is unique (impact of nature), and individual experiences after
birth tend to make people even more different (influence of nurture).

How should managers respond to the individual differences?

• Employee diversity should be recognized and viewed as a valuable asset to organizations.

• The management can motivate employees best by treating them differently.
• The manager’s approach to employees is required to be individual, not statistical.

2. Perception. Unique way in which each person sees, organizes, and interprets things. Figure
11 shows the different perceptions of two people when they see an object. People tend to
pay attention to those features of their work environment that are consistent with or
reinforce their own expectations.

Figure 11. Different Perception

What are the effects of Selective Perception and how should managers respond to these?

• Cause misinterpretations of single events at work and lead to future rigidity in the search
for new experiences.
• Managers must learn to expect perceptual differences among their employees, accept
people as emotional beings, and manage them in individual ways.
 3. Whole Person. Although some organizations may wish they could employ only a
person’s skill or brain, they actually employ a whole person rather than certain
characteristics. An employee’s personal life is not detached from his working life.

How does the concept of a Whole Person relate to the principles of OB?

• When the management applies the principles of OB, it is trying to develop a better
employee, but it also wants to develop a better person in terms of growth and fulfillment.
• If the whole person can be improved, then benefits will extend beyond the firm into the
larger society.

4. Motivated Behavior. In psychology, normal behavior has certain causes. These may relate
to a person’s needs or the consequences that result from acts. In the case of needs, people
are motivated not by what we think they ought to have but by what they themselves want.

What are the ways of the management to motivate people?

• The management can show people how certain actions will increase their need
fulfillment.
• The management can threaten decreased need fulfillment if they follow an undesirable
course of action.

5. Desire for Involvement. Many employees today hunger for the chance to be involved in
relevant decision making, to share their talents and ideas, and to learn from the
experience.

6. Value of the Person. Employees want to be valued for their skills and abilities, be provided
with opportunities to develop themselves, and be given reasonable chances to make
meaningful contributions. Employees increasingly demand their employers to treat them
with caring, respect, and dignity.

Nature of Organizations

1. Social Systems. It is a complex set of human relationships interacting in many ways. All
parts of the system are interdependent, and each part is subject to influence by any other
part. The idea of a social system provides a framework for analyzing organizational
behavior issues. It helps make organizational behavior problems understandable and
manageable.

2. Mutual of Interest. It is represented by the statement that organizations need people and
people also need organizations.

3. Ethics. Use of moral principles and values to affect the behavior of individuals and
organizations with regard to choices between what is right and wrong.
 What are the programs developed by companies to handle employee misconduct?

• Established codes of ethics

• Publicized statements of ethical values
• Provided ethics trainings
• Rewarded employees for notable ethical behavior
• Publicized positive role models
• Set up internal procedures

Limitations of Organizational Behavior

The recognition of the limitations of organizational behavior, will not abolish conflict and
frustration; but it can be reduced in such a way to improve employee performance or address
organizational problems. The three major limitations of OB are behavioral bias, the law of
diminishing returns, and unethical manipulation of people.

1. Behavioral Bias. It is the narrow viewpoint of some people that emphasizes satisfying
employee experiences while overlooking the broader system of the organization in relation
to all its publics. For example, disregarding employee needs means misapplying OB.
Likewise, ignoring the needs of consumers of organizational outputs while championing
employee needs implies the misapplication of OB. Ideally, sound organizational behavior
recognizes a social system in which many types of human needs are served in many ways.

2. Law of Diminishing Returns. The principle that (at some point) a declining amount of
extra output is received when more of a desirable input is added to an operating system.
Same as true with OB, at some point, increases of a desirable practice produce declining
returns, finally resulting in zero returns, and then follows negative returns as more increases
are added. The concept implies that for any situation there is an optimum amount of a
desirable practice.

3. Unethical Manipulation of People. It is the use of organizational behavior knowledge and

techniques to make people act in unethical ways or for one’s personal gain.

Psychological Factors Affecting Employee Behavior

The psychological factors affecting an employee’s behavior

are attitude, personality, perception and learning (Figure 12).

1. Attitudes: The fairly stable emotional tendencies to respond

consistently to some specific object, situation, person or
category of people. These are evaluative statements—
favorable or unfavorable—concerning objects, people, or
Figure 12. Psychological
events, and reflect how an individual feels about something. Factors Affecting
Employee
Behavior
Components of attitude are cognitive, affective, and behavioral. Cognitive component refers
to the beliefs, opinions, knowledge, or information held by a person; affective component
refers to the emotional or feeling part of an attitude; and behavioral component refers to the
intention to behave in a certain way toward someone or something.

Example:

• Cognitive Component: The belief that “discrimination is wrong.”

• Affective Component: “I don’t like him because he discriminates against minorities.”
• Behavioral Component: “I might choose to avoid him because of my feelings about him.”

Most recognized job-related attitudes that interest managers are job satisfaction, job
involvement, organizational commitment, and employee engagement.

• Job Satisfaction. It is the person’s general attitude toward his or her job. When people
speak of employee attitudes, they usually are referring to job satisfaction. Employees who
are happy in their current job cited colleagues, work location, and company reputation as
the top three drivers of workplace satisfaction. According to the survey of Jobstreet.com in
2017, more Filipinos are less satisfied with work situation in 2017, in which the Philippine
Job Happiness Index dropped to 4.97 in 2017 from the 5.25 in 2016 (Figure 13), and the
key factors associated with unhappiness at work are lack of career development and
training opportunities, as well as the management style of a company’s leadership team.

Figure 13. Job Happiness Index

How to increase job satisfaction for customer and service workers?

o Hire upbeat and friendly employees.

o Reward superior customer service.
o Provide a positive work climate.
o Use attitude surveys to track employee satisfaction.

• Job Involvement. It is the degree to which an employee identifies with his or her job,
actively participates in it, and considers his or her performance to be important to his or
her self-worth.

• Organizational Commitment. It is the degree to which an employee identifies with a

particular organization and its goals and wishes to maintain membership in the
organization. It is a better indicator of turnover than job satisfaction.

• Employee Engagement. It is the concept that managers want their employees to be

connected to, satisfied with, and enthusiastic about their jobs.
 o Cognitive dissonance is any incompatibility or inconsistency between attitudes
or between behavior and attitudes. Any form of inconsistency is uncomfortable
and individuals will try to reduce the dissonance.

o Attitude survey is an instrument/document that presents employees with a set of

statements or questions eliciting how they feel about their jobs, work groups,
supervisors, or their organization (Figure 14). It provides management with
feedback on employee perceptions of the organization and their jobs.

Figure 14. Attitude Survey

Implication for Managers on Attitudes

• Attitudes warn of potential behavioral problems:

o Managers should do things that generate the positive attitudes that reduce
absenteeism and turnover.

• Attitudes influence behaviors of employees:

o Managers should focus on helping employees become more productive to
increase job satisfaction.

• Employees will try to reduce dissonance unless:

o Managers identify the external sources of dissonance.
o Managers provide rewards compensating for dissonance.

2. Personality. It is the unique combination of psychological characteristics (measurable

traits) that affect how a person reacts and interacts with others.
 Classifying Personality Traits

• Myers Briggs Type Indicator (MBTI®) is a general personality assessment tool that
measures the personality of an individual using four categories:
o Social Interaction: Extraversion or Introversion
o Preference for gathering data: Sensing or Intuitive
o Preference for decision making: Feeling and Thinking
o Style of decision making: Perceiving or Judging

• Big Five Model is a personality assessment tool that lies on the belief that there are five
basic dimensions of personality:
o Extraversion. Sociable, talkative, assertive, and comfortable in relationships
with others
o Agreeableness. Good-natured, cooperative, and trusting
o Openness. Responsible, dependable, persistent, and achievement oriented
o Emotional Stability. Calm, enthusiastic, and secure (+) or tense, nervous,
depressed and insecure (-)
o Conscientiousness. Has wide range of interests, Imaginative, fascinated with
novelty, artistically sensitive, and intellectual

Understanding
personality differences with
the Personality-Job Fit
Theory, it is an employee’s
job satisfaction and
likelihood of turnover
depends on the compatibility
of the employee’s
personality and occupation.
Key points of the theory are
(1) there are differences in
personalities, (2) there are
different types of jobs, and
(3) job satisfaction and
turnover are related to the
match between personality
and job for an individual.
Figure 15 shows the
Holland’s six personality
types.

Figure 15. Holland’s Six Personality Types

3. Perception: It is a process by which individuals give meaning (reality) to their environment
by organizing and interpreting their sensory impressions. Factors influencing perception
are:
• The perceiver’s personal characteristics: interests, biases and expectations
• The target’s characteristics: distinctiveness, contrast, and similarity
• The situation (context) factors: place, time, location that draw attention or distraction
from the target

Attribution Theory is how the actions of individuals are perceived by others depends on what
meaning (causation) we attribute to a given behavior, either internally-caused behavior (under
the individual’s control) or externally-caused behavior (Due to outside factors).

The errors and biases of Attribution Theory are fundamental attribution error and self-serving
bias.

• Fundamental attribution error. The tendency to underestimate the influence of external

factors and to overestimate the influence of internal or personal factors.
• Self-serving bias. The tendency of individuals to attribute their successes to internal
factors while blaming personal failures on external factors.

Frequently used shortcuts used in judging others are (1) assumed similarity—assuming that
others are more like us than they actually are; (2) stereotyping—judging someone on the basis
of our perception of a group he or she is a part of, and (3) halo effect—forming a general
impression of a person on the basis of a single characteristics of that person.

Implications for Managers on Perceptions

• Employees react to perceptions

• Pay close attention to how employees perceive their jobs and management actions

4. Learning. It is any relatively permanent change in behavior that occurs as a result of

experience or practice. Almost all complex behavior is learned. Learning is a continuous,
life-long process. The principles of learning can be used to shape behavior.

What do employees learn?—practical skills (job-specific skills, knowledge and technical

competence in their line of work), intrapersonal skills (problem solving, critical thinking,
learning about alternative work process, and risk taking), interpersonal skills (interactive skills
such as communicating, teamwork, conflict resolution), and cultural awareness (social norms
of the organization, understanding the organizational goals and business operation, and
company expectations and priorities).
 Shaping a managerial tool. Managers will be concerned with teaching employees to behave
in ways that most benefit the organization. Learning takes place on the job as well as prior to
it. Shaping behavior with the attempt to “mold” individuals by guiding their learning in
graduated steps. There are four ways in which to shape behavior: through positive
reinforcement, negative reinforcement, punishment, and extinction.

• Positive Reinforcement. Rewarding desired behaviors.

• Negative Reinforcement. Removing unpleasant consequence once the desired behavior
is exhibited.
• Punishment. Penalizing an undesired behavior.
• Extinction. Eliminating a reinforcement for an undesired behavior.

Implications for Managers on Learning

• The issue on learning is whether managers are going to manage the employees’ learning
through the rewards they allocate and the examples they set, or allow the learning to
occur haphazardly.
• Managers are the employees’ role models.

Contemporary Issue in Organizational Behavior: Managing Generational Differences

According to Verlinden (n.d.), various studies show that by 2025, the generation of
Millennials (those born somewhere between the early eighties and mid-nineties) will comprise the
majority of the global workforce – 75% of it to be exact. Millennials or Gen Y are individuals born
after 1978. Some characteristics that are believed to be a typical millennial are (1) they tend to
regularly change jobs, (2) they greatly value benefits other than salary alone, (3) they thrive on
collaboration, and (4) they value flexibility and work to live. Other characteristics are the bring
new attitudes to the workplace that reflect wide arrays of experiences and opportunities, want to
work, but don’t want work to be their life, challenge the status quo, and have grown up with
technology. Figure 16 shows the infographics on “Millennials vs. Gen Z: How Do They Achieve
Success In The Workplace?”.

The global workforce currently consists of five different generations and companies
employing up to four (or five) different generations are, therefore, no exception. When it comes
to managing generational diversity in the workplace, every generation has its own preferences,
expectations, and traits for employers to consider. Consider the following in managing
generational diversity in the workplace, such as (1) adapt your recruiting strategies, (2) create age-
diverse teams to work on projects, (3) avoid age-related bias, (4) talk to your employees and ask
them what they think, and (5) adapt your communication depending on who you are talking to. Fig

In managing negative behavior in the workplace, try to consider lie (1) tolerating negative
behavior sends the wrong message to other employees, and (2) both preventive and responsive
actions to negative behaviors are needed—screening potential employees, responding immediately
and decisively to unacceptable behavior, and paying attention to employee attitudes.
Figure 16. Millennials vs. Gen Z: How Do They Achieve Success In The Workplace?
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