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MGMT 330
ORGANIZATIONAL BEHAVIOUR
1
CHAPTER 1
THE MEANING AND SCOPE OF
ORGANIZATIONAL BEHAVIOUR
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WHAT IS OB?
• A study of human behaviour, attitudes and
performance in organization.
• Interaction between individual and organization
• An interdisciplinary – drawing on concepts from
social and clinical psychology, sociology, cultural
anthropology, industrial engineering and
organizational psychology.
3
UNIT OF ANALYSIS
• Individual
• Group
• Organization
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RELATIONSHIP BETWEEN
OB AND MANAGEMENT
• Organizational behaviour:
– Interaction between individual and organization
• Management:
– A critical element in the economic growth of the
country
– Essential in all organized effort
– The dynamic, life giving element in every
organization
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WHY STUDY OB?
• Cherrington identified three main objectives
in organizational behaviour:
– Explain
– Identify
– Control
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CHAPTER 2
THE BEGINNINGS OF STUDIES
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CLASSICAL SCHOOL OF MANAGEMENT
• Consists of three streams of thought:
– Bureaucratic organization
• Max Webber
– Administrative management
• How organizations should be managed and structured
• Henri Fayol and Chester Bernard
– Scientific management
• Application of scientific methods to increase individual
worker’s productivity
• Frederick Winslow Taylor, Henri Gant and Frank and
Lillian Gilbreth
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HAWTHORNE STUDIES
• The Test Room Studies
• Interviewing Studies
• Observational Studies
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HUMAN RELATIONS SCHOOL
• Abraham Maslow
– Motivation theory
• Human needs
• Human behaviour
• Hierarchy of needs
• Douglas Mc Gregor
– Theory X and Y
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EARLY BEHAVIOUR THEORY
• Mary Parker Follett
– Management is getting things done with and
through other people
– Sharing of empowerment through working
together between employer and employee
– Conflict solution through integration
• Hugo Munsterberg
– Implement psychology approach in organization’s
problem
– Psychology study is very relevant in organizational
behaviour
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DISCIPLINE OF
ORGANIZATIONAL BEHAVIOUR
• Psychology
• Sociology
• Political science
• Economy
• Ecology
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CHALLENGES IN
ORGAZATIONAL BEHAVIOUR
• Business and industry towards globalization
and international
• Quality is more important
• Society is concern on management ethics
• Increase of diversity among employees
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CHAPTER 3
BEHAVIOURAL THEORIES
OF ORGANIZATION
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PSYCHOLOGICAL PERSPECTIVE
• Psychology discipline is the most influent
discipline in an organization
• Focus on understanding individual’s behaviour
• Biographic
• Talent
• Personality
• Learning
• Motivation
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SOCIOLOGICAL PERSPECTIVE
• Focus on group behaviour
• Conflict and counselling
• Communication
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POLITICAL PERSPECTIVE
• Empowerment and authority are part of
political discipline
• Distribution of power
• Direction of attempts to influence:
– Upward
– Downward
– Laterally
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ECONOMICS PERSPECTIVE
• Economics perspective helps managers to
make decision
• Techniques on problem solving
• Decision making:
– Individual
– Group
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ECOLOGICAL PERSPECTIVE
• Organization as a sub-system of society
• Environmental factors:
– Suppliers
– Distributors
– Customers
– Competitors
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CHAPTER 4
INDIVIDUAL BEHAVIOUR
IN ORGANIZATION
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ATTITUDES
• Reflects an individual’s background and
experiences
• Components of attitudes:
– Affective component
– Cognitive component
– Behavioural component
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WORK ATTITUDES
• Two key work attitudes:
– Job satisfaction
– Organizational commitment
• Job satisfaction:
– Sources of job satisfaction
– Relation to job behaviour
• Organizational commitment:
– Sources of commitment
– Relation to job behaviour
22
PERCEPTION
• The process by which people select, organize,
interpret and respond to information form the
world around them
• Basic element in the perceptual process:
– Environmental stimuli
– Observation
– Perceptual selection
– Perceptual organization
– Interpretation
– Response
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PERCEPTUAL PROCESS
• The perceptual process is a sequence of steps
that begins with the environment and leads to
our perception of a stimulus and an action in
response to the stimulus.
• The process is continual but we do not spend
time thinking about the actual process that
occurs when we perceive many stimuli that
surround us at any moment
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ENVIRONMENTAL STIMULI
• Everything in our environment that has the
potential to be perceived
• Includes anything that can be seen, touched,
tasted, smelled, heard, movements of the
arms and legs or change in position of the
body in relation to objects in the environment
• Objects and
environment
people
in
the
immediate
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OBSERVATION
• Taste
• Smell
• Hearing
• Sight
• Touch
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PERCEPTUAL SELECTION
• Depends on several factors:
– External factors:
•
•
•
•
•
•
Size
Intensity
Contrast
Motion
Repetition
Novelty and familiarity
– Internal factors:
• Personality
• Learning
• Motivation
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PERCEPTUAL ORGANIZATION
• Perceptual organization
– Continuity
– Closure
– Proximity
– Similarity
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INTERPRETATION
• Perceptual errors
– Perceptual defense
– Stereotyping
– Halo effect
– Projection
– Expectancy effects
• Attributions
– Internal versus external causes
– Causes for success and failure
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RESPONSE
• Convert
– Attitudes
– Motivations
– Feelings
• Overt
– Behaviour
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COGNITIVE DISSONANCE
• Being used to describe the feeling of
discomfort that results from holding two
conflicting beliefs
• Happens when an individual’s behaviour
conflicts with beliefs that are integral to his or
her self-identity
• How to reduce?
– Focus
– Reduce
– Change
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PERSONALITY TRAITS/ TYPES
• Heredity
• Experience
• Environment
• Situation
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PERSONALITY TRAITS THAT INFLUENCE
ORGANIZATIONAL BEHAVIOUR
• Locus of control
• Goal orientation
• Authoritarianism
• Machiavellianism
• Self-esteem
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CHAPTER 5
GROUP BEHAVIOUR
IN ORGANIZATION
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WHAT IS A GROUP?
• Members who share goals, communicate with
one another over a period of time
• Group classification:
– Formal group
– Informal group
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FORMAL AND INFORMAL GROUPS
• Formal groups
– Functional group
– Task group:
• Permanent task group
• Temporary task group
• Informal groups
– Interest group
– Friendship group
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WHY PEOPLE JOIN GROUPS?
• Generating ideas
• Networking
• Task completion
– Accuracy
– Speed
– Creativity
– Cost
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GROUP NORMS AND DYNAMICS
• Behavioural norms
– Rules of behavioural that are shared by members
– Main function is to regulate and standardize the
behaviours viewed as important to members
• Performance norms
– Exists when three criteria have been met:
• Standard of appropriate behaviour
• Members must agree on the standard
• Members must aware that group support the standard
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ROLE AND ROLE EXPECTATIONS
• Role
– Cluster of tasks and behaviours that a person
should perform
• Role expectation
– What are you expected to do depending on what
role you obtain
• Example
– If you are a police officer, then as your role as a
police officer you would expected to protect the
country
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GROUP MEMBER ROLES
• Task-oriented role
– Involves facilitating and coordinating work-related
decision making
– Initiating, seeking information, giving information,
coordinating and evaluating
• Relation-oriented role
– Involves building team-centered feelings and social
interactions
– Encouraging members, harmonizing, encouraging
participation, expressing, following
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GROUP MEMBER ROLES
• Self-oriented role
– Involves the person’s self-centered behaviours
that are at the expense of the team or group
– Blocking
progress,
seeking
recognition,
dominating, avoiding
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INFORMAL ORGANIZATION
AND ITS IMPACT
• Informal organization is defined by the
patterns, behaviours and interactions that stem
from personal rather than official relationship
• Emphasis is on people and their relationships
• Workers may create an informal group to go
bowling, form a union, discuss work challenges
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EFFECT OF DIVERSITY
ON GROUP PERFORMANCE
• Poses a threat to the organization’s effective
functioning
• Expressed discomfort with the dominant
group’s values
• Members of the group want to become like
the dominant
• Positive multiculturalism
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CHAPTER 6
ORGANIZATIONAL STRUCTURE AND
ITS IMPACT ON OB
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WHAT IS ORGANIZATION?
• Organizations are formed so that people who
share a common set of values or interest can
work together towards achieving common
objective
• Elements of organization:
– People
– Objectives
– Structure
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WHAT IS ORGANIZATION?
• Amitai Etzioni
– Organization is a social unit or human grouping,
structured for the purpose of attaining specific
goals
• Stoner
– Organization is a pattern of relationships through
which people under direction of managers pursue
their common goals
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WHAT IS ORGANIZATION?
• Vision
• Mission
• Strategy
• Planning
– Short term
– Long term
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ORGANIZATIONAL STRUCTURE
• Distribution and segregation of work
• Organizational chart
• Key factors in organizational structure
– Environmental factors
– Strategic factors
– Technological factors
– Integrative framework
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ORGANIZATIONAL STRUCTURE
• Environmental factors
– Suppliers
– Distributors
– Competitors
– Customers
• Strategic factors
– Low cost
– Differentiation
– Focused
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ORGANIZATIONAL STRUCTURE
• Technological factors
– Technology
– Task interdependence
• Pooled interdependence
• Sequential interdependence
• Reciprocal interdependence
• Integrative framework
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MECHANISTIC STRUCTURE
• Individuals and functions will behave in
predictable ways
• Characteristic of mechanistic structure
– Formal rules and regulations
– Centralization of decision making
– Defined job responsibilities
– Rigid hierarchy of authority
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IMPACT OF MECHANISTIC STRUCTURE
ON ORGANIZATIONAL BEHAVIOUR
• Tightly control the behaviour of employees
• Employees follow extensive impersonal rules
and procedures in making decisions
• Each employee’s job involves specified area of
expertise
• Employees are appointed and not elected
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ORGANIC STRUCTURE
• Characteristic of organic structure
– Low to moderate use of formal rules and
regulations
– Decentralized and shared decision making
– Broadly defined job responsibilities
– Flexible authority structure with fewer levels in
the hierarchy
– Job specialization is low
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IMPACT OF ORGANIC STRUCTURE ON
ORGANIZATIONAL BEHAVIOUR
• Emphasizes employee competence rather
than employee’s formal position in the
hierarchy
• Flexible hierarchy and empowers employees
to make decision
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NEW FORMS OF ORGANIZATION
• Functional design
– Involves
creation of positions, teams and
departments on the basis of specialized activities
• Place design
– Involves establishing an organization’s primary
units geographically
• Product design
– Involves the establishment of self-contained units,
each capable of developing, producing, marketing
and distributing its own goods or services
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NEW FORMS OF ORGANIZATION
• Multidivisional design
– Tasks are organized by division on the basis of
product/geographic markets
• Multinational design
– Produce and sell products/services in two or more
countries
• Network design
– Focuses on sharing authority, responsibility and
resources
• Virtual design
– Coordinate and link people from many different
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locations
CHAPTER 7
UNDERSTANDING WORK TEAMS
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STAGES OF TEAM DEVELOPMENT
• Forming stage
• Storming stage
• Norming stage
• Performing stage
• Adjourning stage
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FORMING STAGE
• Focus on:
– Defining or understanding goals
– Developing procedures
• Involves
getting
acquainted
and
understanding leadership and other member
roles
• Deal with members’ feelings
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STORMING STAGE
• Manage conflict among members
• This stage may be shortened or can be
avoided if members use a team-building
process from the beginning
• Involves development of decision-making,
interpersonal and technical capabilities
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NORMING STAGE
• Sharing of information,
different options
acceptance
of
• Team members set rules by which the team
will operate
• Developing of cooperation and sense of
shared responsibility
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PERFORMING STAGE
• Team members show how effectively and
efficiently they can achieve results together
• The roles of individual members are accepted
and understood
• At this stage, teams may differ:
– Continue to learn and develop from their
experiences
– May perform only the level needed for survival 62
ADJOURNING STAGE
• Termination of work behaviours
disengagement from social behaviours
and
• Normally happens when team has achieved
their goals
• A problem-solving or a cross-functional team
will investigate and report on specific issue
within 6 months
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DIFFERENCE BETWEEN
GROUPS AND TEAMS
• A group is two or more individuals who come
into personal and meaningful contact on a
continuing basis
• Example: departments, divisions and business
units
• Teams are much smaller than organizational
groups
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TYPES OF TEAMS
• Functional teams
• Problem-solving teams
• Cross-functional teams
• Self-managed teams
• Virtual teams
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FUNCTIONAL TEAMS
• Include individuals who work together daily
on similar tasks
• Exist within functional departments:
– Marketing
– Production
– Finance
– Human resource
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PROBLEM-SOLVING TEAMS
• Focus on specific issues in their areas of
responsibility, develop potential solutions and
empowered to take action within defined
limits
• Members are employees from a specific
department who meet at least once or twice a
week for an hour or two
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CROSS-FUNCTIONAL TEAMS
• Bring together people from various work areas
to identify and solve mutual problems
• Effective in situations that require innovation,
speed and focus on responding to customer
needs
• Members from several specialties or functions
and deal with problems
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SELF-MANAGED TEAMS
• Consist of employees who must work together
effectively daily to manufacture an entire
product or service to customers
• The teams are empowered (potency,
meaningfulness, autonomy and impact)
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VIRTUAL TEAMS
• A group of individuals who collaborate
through various information technologies on
one or more projects while being at two or
more locations
• Work primarily across distance, time and
organizational boundaries
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BUILDING HIGH-PERFORMANCE TEAMS
•
•
•
•
•
•
•
•
Clear goals
Clear communication
Clear role
Members’ behaviour
Proper decision-making procedure
Involvement by all members
Rules and regulations of the team
Know the complete process of a team
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WHY TEAMS FAIL?
• Conflict exist
• Lack of resources
• Different personality, experience and value
• Unsuitable goals
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CHAPTER 8
LEADERSHIP AS INFLUENCING THE
BEHAVIOUR OF OTHERS
73
MANAGERS AND LEADERS
• Managers:
– Direct the work of others and is responsible for
the results
– Effective managers bring a degree of order and
consistency to the work for their employees
• Leaders:
– Exhibits the attributes of leadership (ideas, vision,
values, influencing others and making decisions)
– Do no perform management functions (planning,
organizing, leading and controling)
74
TYPES OF LEADERS
• Transactional leaders
– Involves motivating and directing followers
through contingent reward-based practices
– Three components to achieve performance goals
• Contingent rewards
• Active management by exception
• Passive management by exception
• Charismatic leaders
– Emphasizes shared vision and values
– Promotes shared identity
– Exhibits desired behaviours
– Reflects strength
75
TYPES OF LEADERS
• Transformational leaders
– Anticipating future trends
– Inspiring followers to understand and embrace a
new vision of possibilities
– Developing others to be leaders or better leaders
– Building organization or group into a community
of challenged and rewarded learners
76
LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
• Hersey and Blanchard’s Situational Model
– Based on the amount of relationship and task
behaviour that a leader provides to subordinates
in a situation
– The amount of relationship and task behaviour is
based on the readiness of the followers to
perform needed tasks
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HERSEY AND BLANCHARD’S
SITUATIONAL MODEL
Relationship Behaviour
High
Participating Style
Selling Style
Delegating Style
Telling Style
Low
Low
High
Task Behaviour
78
LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
• Vroom-Jago Leadership Model
– Developed by Victor Vroom, in collaboration with
Phillip Yetton and later Arthur Jago
– Focuses on the leadership role in decision-making
situations
– Prescribers a leader’s choices among five
leadership styles based on seven situational
factors, recognizing the time requirements and
costs associated with each style
79
VROOM-JAGO LEADERSHIP MODEL
80
LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
• Theory X and Theory Y
– Developed by Douglas McGregor in 1957
– Theory X is a composite of propositions and
underlying beliefs that take a command and
control view of management based on a negative
view of human nature
– Theory Y is a composite of propositions and
beliefs that take a leadership and empowering
view of management based on a positive view of
human nature
81
LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
• Managerial Grid
– Developed by Robert Blake and Jane Mouton
– Identifies five leadership styles that combine
different degrees of concern for production and
concern for people
•
•
•
•
•
Impoverished style
Country club
Produce or perish
Middle of the road
Team
82
BLAKE MOUTON MANAGERIAL GRID
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LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
BEHAVIOURAL APPROACH TO
LEADERSHIP AND AUTHORITY
• Visionary
• Confident
• Trustworthy
• Thoughtful
• Considerate
• Charismatic
ethical
and
86
CHANGING LEADERSHIP REQUIREMENTS
•
•
•
•
Assess current leadership talent
Create leadership strategy
Review and align talent management system
Develop
comprehensive
approach
to
leadership development
• Offer specific courses in leadership
• Provide individual coaching
• Assist senior leadership in combining
organizational
change
and
leadership
development
87
CHAPTER 9
COMMUNICATION AS THE
LIFE BLOOD OF
THE ORGANIZATION
88
WHAT IS COMMUNICATION?
• Exchange of information and ideas to create
understanding between two parties
• Not limited to only verbal communication
89
IMPORTANCE OF COMMUNICATION
TO ORGANIZATION
• To carry out the thoughts and visions of an
organization to the people
• To
convey
directions
and
provide
synchronization
• Through phone, fax, email, letter, website, social
networking websites
• More crucial when we are on a mission or need
to fulfill a goal
90
COMMUNICATION FLOWS IN
ORGANIZATION
• Downward channels
• Upward channels
• Horizontal channels
• Grapevine
• External networking
91
COMMUNICATION PROCESS
• Sender (encoder)
– Sender is the source of information and the initiator
of the communication process
– Encoding is the process of translating thoughts or
feelings into a medium (writing, visual or spoken)
that conveys the meaning intended
– Five principles of communication:
•
•
•
•
•
Relevancy
Simplicity
Organization
Repetition
Focus
92
COMMUNICATION PROCESS
• Receiver (decoder)
– Receiver is the person who receives and decodes
the sender’s message
– Decoding is translating messages into a form that
has meaning to the receiver
93
COMMUNICATION PROCESS
•
•
•
•
•
•
•
Sender has an idea
Sender encodes the idea
Sender transmits the message to the sender
Receiver gets the message
Receiver decodes the message
Receiver sends feedback
Noise
94
TYPES OF COMMUNICATION
• Interpersonal
• Formal and informal
• Internal and external
• Non-verbal
• Active listening
95
GRAPEVINE
• Organization’s informal communication system
• Main features:
– Exist in every organization
– Difficult to eliminate or control
– Spontaneous in nature
– Travels very fast
• Types of chains
– Single-strand chain
– Cluster chain
– Gossip chain
96
COMMUNICATIONS NETWORKS AND
THEIR EFFECTIVENESS
• Star network
• Y network
• Chain network
• Circle network
• All-channel network
97
COMMUNICATIONS NETWORKS AND
THEIR EFFECTIVENESS
Factor
Degree
of
centralization
Leadership
predictability
Average group
satisfaction
Range in
individual
member
satisfaction
Star
Very
high
TYPE OF COMMUNICATION NETWORK
Y
Chain
Circle
All-Channel
High
Moderate
Low
Very low
Very
high
High
Moderate
Low
Very low
Low
Low
Moderate Moderate
High
High
Moderate
Low
High
Very low
98
COMMON BARRIERS TO EFFECTIVE
COMMUNICATION
•
•
•
•
•
•
•
•
•
Noise
Semantics
Language routines
Lying and distortion
Perceptual differences
Language differences
Filtering of information
Poor listening
Information overload
99
CROSS-CULTURAL COMMUNICATION
• Open communication
• Dialogue
• Crisis communication
• Feedback
100
HOW TO IMPROVE COMMUNICATION
• Understand the communication process
• Able to talk and listen
• Respect the receiver
• Establish rapport
101
CHAPTER 10
UNDERSTANDING
DECISION-MAKING BEHAVIOUR
102
DECISION-MAKING
(HEART OF MANAGEMENT)
• Conscious process of making choices among one
or more alternatives for getting the desired
outcome
• Includes
defining
problems,
gathering
information, generating alternatives and
choosing a course of action
103
RATIONAL DECISION-MAKING PROCESS
• Identify the problem or opportunity
• Think of alternative solutions
• Evaluate alternatives and select solution
• Implement and evaluate solution chosen
104
NON-RATIONAL DECISION-MAKING PROCESS
• Problem not clearly defined
• Knowledge is limited to possible alternatives
• Choice of a satisfying alternative
• Managerial action
105
LIMITS TO RATIONALITY
• Satisficing
• Limited search
• Inadequate information and control
106
DECISION MAKING PROCESS
•
•
•
•
•
•
•
Define and diagnose the problem
Set goals
Search for alternative solutions
Compare and evaluate alternative solutions
Choose among alternative solutions
Implement the solution selected
Follow up and control the results
107
DECISION PREMISES
• Factual premises
• Value premises
108
PARTICIPATION IN DECISION-MAKING
• Known as participative management
• Lighten the burden of the manager
• Makes the employees feel accepted and
appreciated
• Will increase
performance
motivation,
innovation
and
109
PARTICIPATION IN DECISION-MAKING
• Factors that can help participative management:
– Top management is continually involved
– Middle and supervisory managers are supportive
– Employees trust managers
– Employees are ready
– Employees do not work in interdependent jobs
– Participative management is implemented with
TQM
110
BUILDING DECISION-MAKING SKILLS
• Create a constructive environment
• Generate good alternatives
• Explore these alternatives
• Choose the best alternatives
• Check your decision
• Communicate your decision and take action
111
CHAPTER 11
MOTIVATION PEOPLE FOR
INCREASED PRODUCTIVITY
112
WHY MOTIVATE?
• Motivation is a psychological state that exist
whenever internal and / or external forces
stimulate, direct or maintain behaviours
• By understanding employee motivation,
managers can increase productive behaviours,
enables managers to decrease disruptive
behaviours such as tardiness, theft and loafing
• Motivating employees are important to ensure a
productive and harmonious work environment
• Can affect organizational climate
113
HOW TO MOTIVATE?
• Through job design
– Motivator factors
– Hygiene factors
• Through performance expectations
– Expectancy model
• Through equity
114
STICK AND CARROT APPROACH
• Idiom that refers to a policy of offering a
combination of rewards and punishment to
induce behaviour
• Sometimes it takes both a carrot (goal) and a
stick (motivator) to overcome procrastination
and get the job done
• Most people, rewards work better than
penalties
115
MANIPULATING WORKERS
• Most managers engage in some form of
manipulation to get employees to do their best
• An
employer
may
use
inappropriate
manipulation to coerce an employee into doing
something he doesn’t want to do by threatening
or implying some manner of punishment
• Example: threats, fear, bribery, pressure, deceit,
charm
116
EXTRINSIC MOTIVATORS
• Factors external to the job
• Includes company policy and administration,
technical supervision, salary, fringe benefits,
working conditions and interpersonal relations
• These factors are associated with an individual’s
negative feelings about job and are related to
the environment in which the job is performed
117
INTRINSIC MOTIVATORS
• Directly related to the job and are largely
internal to the individual
• Includes the work itself,
advancement and responsibility
recognition,
• These positive feelings are associated with the
individual’s experiences of achievement,
recognition and responsibility
118
WORK DESIGN
• Determined by factors that cannot be easily
changed without changing the technology or
the structure of an entire work unit
• Enriched jobs are more motivating than jobs
that are narrow in scope
• Example:
– Job enlargement
– Job enrichment
– Team management
119
REWARDS SYSTEM
• The ability of rewards to motivate individuals or
team depends on six factors:
– Availability
– Timeliness
– Performance contingency
– Durability
– Equity
– Visibility
120
MANAGERS’ PERCEPTION
• High internal work motivation
• High-quality work performance
• High satisfaction with the work
• Low absenteeism and turnover
121
SATISFIER AND DISSTISFIER
• Herzberg’s Two-Factor Theory
– Relationship between job satisfaction and
motivation is a complicated one
– He discovered that the presence of a particular job
characteristic, such as responsibility might increase
job satisfaction
– Lack of responsibility didn’t necessarily produce
dissatisfaction
• Hygiene factors
• Motivator factors
122
MASLOW’S HIERARCHY OF NEEDS
• Abraham H. Maslow suggested that people have
a complex set of exceptionally strong needs,
which can be arranged in a hierarchy
• Five types of needs:
– Physiological
– Security
– Affiliation
– Esteem
– Self-actualization
123
EXPECTANCY THEORY
• Work effort is directed toward behaviour that is
believed to produce desired outcomes
• Effort is employee’s actual exertion of energy
and motivation
• Three concepts of effort level:
– Expectancy
– Instrumentality
– Valence
124
CHAPTER 12
UNDERSTANDING ORGANIZATIONAL
CONFLICT AND POLITICS
125
ORGANIZATIONAL CONFLICT
• Conflict refers to a process in which one party
perceives that its interests are being opposed or
negatively affected by another party
• Negative outcomes:
– Loss of skilled employees
– Sabotage
– Low quality of work
• Positive outcomes:
– Creative alternatives
– Increased motivation and commitment
126
ORGANIZATIONAL POLITICS
• When employees are in group, there will be an
individual who will practice power to influence
others in the group
• Influence tactics to gain power that others
perceive to be self-serving behaviour to gain
self-interests
• Can be minimized by providing clear rules for
resource allocation
127
WHY CONTROL ORGANIZATIONAL
CONFLICT AND POLITICS?
• Organizational control comprises formal
policies, rules, procedures and records for
preventing or correcting deviations form plans
and for achieving desired goals
• Power in conflict management
– Reward power
– Coercive power
– Legitimate power
– Expert power
– Referent power
128
INSTRUMENTS OF CONTROL
• Preventive Control
– Mechanisms intended to reduce errors and thereby
minimize the need for corrective action
• Corrective Control
– Mechanisms intended to reduce or eliminate
unwanted behaviours or results and thereby achieve
conformity with the organization’s regulations and
standards
129
CORRECTIVE CONTROL MODEL
•
•
•
•
•
Define the system
Identify key characteristics
Set standards
Collect information
Make comparisons
– If okay, continue
– If deviations, next step
• Diagnose and correct problems
130
CHAPTER 13
ORGANIZATIONAL RESISTANCE
TO CHANGE
131
NEED FOR ORGANIZATIONAL CHANGE
• Organizational
change
refers
to
any
transformation in the design or functioning of
an organization
• Degree of change
– Radical change
• Occurs when organizations make major innovations in the
ways they do business
– Incremental change
• An ongoing process of evolution over time, during which
many small adjustments occur routinely
132
NEED FOR ORGANIZATIONAL CHANGE
• Timing of change
– Reactive change
• Occurs when an organization is forced to change in
response to some event in the external or internal
environment
– Anticipatory change
• Occurs when managers make organizational modifications
based on forecasts of upcoming events or early in the
cycle of a new trend
133
CHANGE PROCESS
•
•
•
•
Assess the environment
Determine the performance gap
Diagnose organizational problems
Articulate and communicate a vision for the
future
• Develop and implement an action plan
• Anticipate resistance and take action to reduce
it
• The monitor changes
134
RESISTANCE OF CHANGE
• Individual resistance
– Perceptions
– Personality
– Habit
– Threats to power and influence
– Fear of the unknown
– Economic reasons
135
RESISTANCE OF CHANGE
• Organizational resistance
– Organization design
– Organizational culture
– Resource limitations
– Fixed investments
– Inter-organizational agreements
136
MAKING CHANGES IN THE
ORGANIZATION
•
•
•
•
•
•
•
Individuals
Teams
Leadership
Organizational systems
Reward systems
Organization design
Culture
137
ORGANIZATIONAL DEVELOPMENT
• Management of change and development of
organization
• Comprehensive approach to planned change
that is aimed at improving the overall
effectiveness of organization
• Three methods of OD:
– Focus group
– Survey feedback
– Team building
138
CHAPTER 14
IMPACT OF CHANGING ENVIRONMENT
ON ORGANIZATIONAL BEHAVIOUR
139
IMPORTANCE OF CULTURE
• Culture is the unique pattern of shared
assumptions, values and norms that shape the
socialization, symbols, language, narratives and
practices of a group of people
• Elements of a culture
– Assumptions
– Values and norms
– Socialization
– Symbols
– Language
– Narratives
– Practices
140
IMPACT OF TECHNOLOGY AND
INFORMATION AGE
• Technological change
– Involves incremental adjustments or radical
innovations that affect work-flows, production
methods, materials and information system
• Information technology
– Comprises complex networks of computers,
telecommunications systems and remote-controlled
devices
141
INCREASED CONCERN WITH QUALITY
• Quality control process
– Inputs
– Transformation operations
– Outputs
• Importance of quality
– Positive company image
– Lower costs and higher market share
– Decreased liability
142
ENVIRONMENT OF UNCERTAINTY
• Uncertainty avoidance is the extent to which
members of a culture rely on social norms,
procedures and organizations to avoid
ambiguity, unpredictability and risk
• With high uncertainty avoidance, individuals
seek orderliness, consistency, structure,
formalized procedures and laws to cover
situations in their daily lives
143
IMPORTANCE OF ETHICS AND SOCIAL
RESPONSIBILITY
• Ethics is a set of values and rules that define
right and wrong conduct
• These values and rules indicate when behaviour
is acceptable and when it is unacceptable
• Four basic forces that influence the ethical
conduct of individuals and organizations
– Cultural forces, legal and regulatory
organizational forces, individual forces
forces,
144
IMPORTANCE OF ETHICS AND SOCIAL
RESPONSIBILITY
• Social responsibility holds that managers and
other employees have obligations to identifiable
groups that are affected by or can affect the
achievement of an organization’s goals
• Protecting the natural environment
• Finding win-win solutions
• Evaluating social performance
145
MANAGING DIVERSITY
• Categories of diversity
– Primary categories
– Secondary categories
•
•
•
•
Changing workforce
Gender
Race and ethnicity
Age
146
CHAPTER 15
MANAGING INDIVIDUAL STRESS
147
NATURE OF STRESS
• Stress is the excitement, feeling of anxiety and
physical tension that occurs when the demand
placed on an individual are thought to exceed
his ability to cope
• Stressor is the physical or psychological
demands from the environment that cause
stress
• Stressor create stress or potential for stress
when an individual perceives them as
representing a demand that may exceed that
person’s ability to respond
148
PERSONALITY AND STRESS
• Many personality traits are related to stress
• Example:
– Individuals with low self-esteem is more likely to
experience stress in demanding work situations
than is a person with high self-esteem
– Individuals with high internal locus of control may
take more effective action, more quickly in coping
with a sudden emergency than might individuals
with high external locus of control
149
SOURCES OF STRESS
• Workload
• Job conditions
• Role conflict and ambiguity
• Career development
• Interpersonal relations
150
EFFECTS OF STRESS
• Impacts on health
• Impacts on performance
• Impacts on job burnout
151
MANAGING STRESS
• Individual initiatives
– Control the sources of stress
– Be able to cope with stress
• Organizational initiatives
– Reducing work stressors
– Modifying behaviours
– Creating wellness programs
152
CHAPTER 16
CULTIVATING
ORGANIZATIONAL CULTURE
153
DYNAMICS OF
ORGANIZATIONAL CULTURE
• Organizational culture:
- represents a complex pattern of beliefs,
expectations, ideas, values, attitudes and
behaviors shared by members of
organization
- includes:
routine ways of communicating
norms shared by individuals and teams
154
DYNAMICS OF
ORGANIZATIONAL CULTURE
• Organizational culture:
- includes:
dominant values held by organization
philosophy that guides management
rules for getting along in organization
feeling in the organization
155
HOW CULTURES EMERGE
• Top management
– Agrees on shared assumptions of human behaviour
– Develops a shared vision of cultural values
• Behaviours
– Employees behave in ways that are consistent with
shared values and assumptions
156
HOW CULTURES EMERGE
• Results
– Financial performance
– Market share
– Employee commitment
• Culture
– Strong culture emerges
– Traditions are maintained
– Socialization practices for new employees
157
TYPES OF ORGANIZATIONAL CULTURE
• Bureaucratic culture
• Clan culture
• Entrepreneurial culture
• Market culture
158
BUREAUCRATIC CULTURE
• Values formality, rules, standard operating
procedures and hierarchical coordination
• Its members highly value standardized goods
and customer service
• Managers view their roles as being good
coordinators, organizers and enforces of written
rules and standards
159
CLAN CULTURE
• Tradition, loyalty, personal commitment,
extensive
socialization,
teamwork,
selfmanagement and social influence
• Its members recognize an obligation beyond the
simple exchange of labour for a salary
• Members have strong sense of identification
and recognize their common fate in organization
160
ENTREPRENEURIAL CULTURE
• High levels of risk taking, dynamism and
creativity
• Commitment to experimentation, innovation and
being on the leading edge
• Not only quickly react to changes in the
environment but it creates change
• Provide new and unique products and rapid
growth
161
MARKET CULTURE
• Achievement of measurable and demanding
goals, especially those that are financial and
market-based (sales growth, profitability and
market share)
• Hard-driving competitiveness and a profit
orientation prevail throughout the organization
• Relationship
between
organization is contractual
individual
and
162
ETHICAL BEHAVIOUR AND
ORGANIZATIONAL CULTURE
• Impact of culture
– Organizational culture involves a complex interplay
of formal and informal systems that may support
either ethical or unethical behaviour.
– An important concept linking organizational culture
to ethical behaviour is principled organizational
dissent, by which individuals in an organization
protest, on ethical grounds, some practice or policy
163
ETHICAL BEHAVIOUR AND
ORGANIZATIONAL CULTURE
• Whistle-blowing
– Disclosure by current of former employees of illegal,
immoral or illegitimate organizational practices to
people or organizations that may be able to change
the practice
– The whistle-blower lacks the power to change the
undesirable practice directly and so appeals to other
either inside or outside the organization
164
FOSTERING CULTURAL DIVERSITY
• Challenges
• Characteristics of effective diversity culture
– Managers and employees must understand that a
diverse
workforce
will
embody
different
perspectives and approaches to work
– Managers must recognize learning opportunities
and challenges
– Organizational culture must create an expectation of
high standards of performance and ethics
– Organizational culture must stimulate personal
development
– Organizational culture must encourage openness 165
SOCIALIZATION OF NEW EMPLOYEES
• Organizational socialization is the systematic
process by which an organization brings new
employees into its culture.
• Steps in socialization
– Careful selection
– Challenging early work assignments
– Training to develop capabilities with culture
– Rewards that sustain culture
– Adoption of cultural value policies
– Ritual, taboos, rites and stories to reinforce culture
– Role model to sustain culture
166