Industrial organization: principles and market structures

Attribution Theory

Industrial organization

Industrial organizational theory:

The usefulness of attribution theory in a modern organization like Google

Attribution theory

Attribution theory attempts to explain how human beings attach meaning to their own behavior and the behavior of others. A presumption of the theory is that perception is not always reality. For example, an employee might perceive his or her boss to be aggressive or an employee might perceive all subordinates to be lazy. Attribution theory attempts to answer why this might be the case: what perceptual issues are factoring into these statements. Another definition of the theory is that it is "how and why ordinary people explain events as they do" (McLeod 2010). One of the earliest exponents of attribution theory was Heider (1958) who noted that people tend to explain the behavior of others based upon perceived consistent internal characteristics, i.e. saying that the other person is 'that type of person' and thus is acting in such a manner vs. our their behaviors, where there is a tendency to attribute behaviors to external characteristics (McLeod 2010). Attribution theory has also been used to explain discrepancies in performance between high and low achievers. For example, individuals who seek out challenges tend to do so because they believe that the level of reward will be consistent with the level of effort shown. In contrast, low achievers tend to attribute success or failure to luck ("Attribution theory," 2014). This research report will provide a brief overview of the theory followed by an application of its tenants in a specific organizational context.

Weiner (1974) expanded upon the concept in his discussion of how individuals construct attributions, stating that this involved a three-stage process of perception; determination of intentional performance; and determination of causality ("Attribution theory," 2013). Causal factors which the observer may use to explain the behavior include the actor's effort, ability, the difficulty of the task or luck ("Attribution theory," 2013). The extent to which these different factors are prioritized will influence the explanation of the behavior. Once again, attribution theory is an explanation of perception, not actual deeds.

Example: Google's use of attribution theory

Google has profited from the concept of attribution theory to a great degree through its careful selection of employees. Google is much-praised as an organization because of the generous benefits it extends to all of its workers, regardless of their level of seniority and the extent to which it permits a flexible managerial style. However, allowing employees a great deal of latitude is possible because the company carefully screens for workers with high levels of personal responsibility. By hiring workers with a strong locus of control who believe they control their environments through hard work, Google does not have to be a 'task master' and use carrots and sticks to motivate such workers in a punitive fashion. "Google's philosophy is that they want to attract the 'best of the best,' which means that they need lots of motivated, enthusiastic people to go out and find people like them. This logic is predicated on the assumption that a really great engineer (or, insert discipline here) is worth many times more than the average one, so expending lots of effort on finding those perfectly talented individuals pays off in a big way over time" (Barnes 2013). Google is famous for giving engineers the ability to design and work on their own pet projects during company time, which demonstrates considerable confidence in the engineer's ability to self-regulate. Individuals that are have a strong sense of self-efficacy and who take pride in their work are more likely to embark on such independent ventures successfully.

Interestingly enough, for a technology company. Google places a relatively low priority on technical skills. Of course, it wants programmers that can write code and IT professionals who know their craft. But the ability to learn is the most important thing, and the ability to grow and develop, rather than to simply work well in the here and now. Google "aim[s] to hire people who are going to be good in the long-term, not just on immediate projects. This means that Google wants to hire people who are smart and who both desire and already possess the ability to learn new skills as needs arise. Since the tech industry is in a permanent state of change, anyone hired to be a long-term investment necessarily has to be able to roll with the punches and keep their skills sharp and current" (Barnes 2013). The ideal employee for Google also views him or herself not simply as an employee who is given a single, specific job to do but who is always looking to the future to enhance his or her capabilities. Also, not only does the employee have a strong belief in his or her abilities -- the employee also believes in his or her abilities to affect the organization in a positive manner. Diverse skill sets, rather than being seen as evidence of a lack of focus or dilettantism are an asset for Google, and evidence of not pigeonholing one's self (another component of attribution theory is the concept that too many people focus on the environment rather than on changing themselves in response to the environment as a source of personal improvement).