What are individual differences and why are they important to managers? - Chapter 2

Individual differences are the ways in which people differ from each other. Every member of an organization has its own way of behavior. It is important for managers to understand individual differences because they influence the feelings, thoughts, and behavior of employees. Individual differences can be divided into two categories:

• personality differences

• capacity differences

What is personality and how is it influenced?

Personality refers to the relatively stable patterns in the thinking, feeling, and behavior of a person. It is an important factor in explaining the behavior of people within an organization and in the favorable or unfavorable attitude towards the job and the organization.

sources of personality

Personality is partly biologically determined (nature). There are no specific genes that determine personality, but twin research shows that approximately 50% of personality can be explained by hereditary factors.

The other half can be explained by life experience (nurture). Personality can change through experience but not in the short term. As the definition makes clear, it is after all relatively stable traits. Managers should therefore not set themselves the goal of changing the personality of employees, but personality can be used to understand behavior.

Situational influences on personality

A large amount of research shows that personality is a good predictive and explanatory factor for the thinking, feeling, and behavior of employees in the workplace. Personality, for example, influences work-related attitudes and behavior, such as career satisfaction and coping with work-related stress.

In addition to personality, however, the situation also affects attitudes and behavior. If the situational pressure is strong, personality has less influence on work-related behavior. Employees are not free in varying behavior in such situations and so personality is not decisive.

Both personality and situation factors can, therefore, influence behavior. Eventually, cognition, affect, and behavior are determined by the interaction between personality and situation. Effective managers understand this interaction and use it to help employees perform optimally.

What is the ASA model and what is it used for?

According to the attraction-selection-attrition (ASA) model of Schneider an organization attracts persons with corresponding personalities (attraction) and selects them (selection) while rejecting other types of personalities (attrition). As a result of the combination of attraction, selection, and attrition, a sort of 'typical' personality develops for a specific organization. ASA processes work in different ways. When hiring future employees, for example, people are unconsciously chosen to fit the current employees. In this way, the nature of the organization ultimately becomes a reflection of the typical personality of the employee.

Which personality traits are part of the Big Five?

The Big Five Personality Model consists of 5 personality traits (extraversion, neuroticism, altruism, conscientiousness, and openness) that in turn consist of specific sub-traits. These personality traits are at the top of the trait hierarchy. People can be placed on a continuum for each trait.

Extraversion is the tendency to experience positive affect and to feel good about the self and the world. Introversion - the other side of the continuum - is associated with less positive feelings and less social interaction. Extraversion is associated with more career satisfaction in the workplace.

Neuroticism means that there is a tendency to experience negative feelings about the self and the world. People with strong neurotic traits experience stress more quickly and are critical of themselves. This can be a vulnerability but also a force. Because of their critical attitude, they are driven to improve their performance and are able to reflect critically during group discussions. So it is not just a negative trait.

Altruism (agreeableness) refers to the property to be able to get along well with others. Low scorers on this personality trait are antagonistic and suspicious. In some cases, this property may be useful, for example in debt collecting where social skills are greatly needed.

Conscientiousness refers to care and perseverance. This is accompanied by orderliness and self-discipline. Conscientiousness is a good predictor for career success. It must be accompanied by the right skills for work and social competence.

Openness is the extent to which an individual is open to new experiences and risks, has broad interests and is original. This is an advantage in companies in which creativity and innovation are desired.

The Big Five personality model can be used to understand behavior and functioning on the work floor. It is important to realize that there is no such thing as a good or bad personality profile.

Other personality traits

In addition to the Big Five, there are various personality traits that are relevant to organizations.

Locus of control is the extent to which an individual believes to have control over the situation in which he/she is located. An internal locus of control means that events are attributed to personal factors and therefore that responsibility is taken for the consequences of their own behavior. An external locus of control means that events are attributed to situational factors. Employees with an internal locus of control need less supervision than employees with an external locus of control because they are more independent.

Self-monitoring refers to the extent to which a person actively tries to influence how he/she presents himself to others. A high degree of self-monitoring leads to strongly socially acceptable behavior. These people are often accommodating and good at impression management. High self-monitoring is associated with good adaptability, which is beneficial in situations where positive interaction with others is needed. Low self-monitoring is beneficial when open and honest feedback or criticism must be given.

Self-confidence/self-esteem (self-esteem) is the extent to which someone is satisfied with themselves and their own skills. Self-confidence has different implications for behavior in organizations. High self-esteem is related to choosing challenging work, setting high goals and stimulating the development of the organization.

What are type A and type B personalities?

The division between type A and B personality is known for the association between type A and the risk of cardiovascular disease. Type A can be described as ambitious, competitive and impatient. Type B can be described as having a relaxed and flexible attitude. Type A can be effective when high goals have to be achieved in a short time, but the disadvantage is that these people are less easy to handle.

Which three needs does almost everyone have?

According to McClelland, there are three characteristics that everyone has to varying degrees: the need for success, need for commitment and need for power.

Need for success is the desire to perform well in challenging situations and to meet a high standard. This need is related to setting clear goals, willingness to take responsibility for the outcomes and the desire to receive feedback. This also correlates with career success.

There is a need for solidarity in efforts to build and maintain good relationships with others. People who have a strong need for solidarity are good co-workers but it is not good if all employees in a team are like this because this can be at the expense of working effectively on tasks because everyone is then focused on 'keeping the peace'.

The need for power is the strong need for emotional and behavioral control over others. People who possess this property are often managers or people in leadership positions. For managers, a combination of a high need for success and a high need for power is the most effective.

What types of capacities can be distinguished?

The capacities of a person are the second category of individual differences and are decisive for the level of performance at work. Two types of capacities can be distinguished: cognitive capacities and physical capacities.

Cognitive capacities can be defined in various ways. The broadest definition is cognitive capacity as general intelligence. Under intelligence, there are different areas of cognitive functioning. According to research, cognitive ability is predictive of career success, provided that the type of cognitive ability is related to work. In order to understand the relationship between cognitive capacity and success, the abilities required for the specific work must, therefore, be identified.

In terms of physical capacity, a distinction can be made between motor capacity (the ability to deal effectively with objects) and physical capacity (condition and strength).

Both cognitive and physical capacity develop through a combination of hereditary factors (nature) and experience (nurture).

Tests for cognitive abilities have been developed to measure what is innate but it is known that these capacities change over time and under the influence of experience through (lack of or availability of) education and upbringing. Standard tests can thus be used as an indicator, but interpretation depends on issues such as ethics.

Physical capacity can best be measured by performing work-related physical activity.

Physical and cognitive abilities can decrease as a result of factors such as fatigue, drug or medicine use, illness, and stress. When suspected drug use occurs, tests can be performed, but limitations due to fatigue or illness can then be missed. Moreover, it often takes a long time to obtain the results. As a solution, fitness for duty tests have been developed to determine whether employees can safely carry out their jobs.

Emotional intelligence is a specific type of capacity. It refers to the ability to understand and deal with one's own and other's feelings. A high level of emotional intelligence is positively related to functioning and well-being at work. A low level of emotional intelligence can be restrictive.

For each specific job, only a selection of the discussed capabilities is relevant. Managers must ensure that employees have the capabilities required for the specific job. There are three fundamental methods for making the match between job and employee: selection, placement, and training. Upon selection, potential employees can be tested for the required characteristics. Upon placement, employees who are hired are placed in a suitable position within the organization may be promoted to higher positions. In training, the focus is on nurture instead of nature, and the capacities of the employee are strengthened.