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ORGANIZATIONAL BEHAVIOR Why Do We Have Organizations? 1. To Accomplish Something = Goal 2. It Takes More Than 1 Person CEO Masterbatches Functional Chemicals Fine Chemicals Europe Soaps Electric Materials Asia/ Pacific Process Chemicals Specialty Organizations A system of roles and stream of activities to accomplish shared purposes Reason for existence Produce something Customers Organizations •Product of social action •Goal oriented •“People” system •Cultural system (values) •Information/Message processing system •Changing System PERIODS OF HUMAN CULTURE Nomadic -3,000 BC Energy Sources Renewable People Animals Wood ScienceNone Technology Food Sources Animals Wild Grains Fruit Organization Nomadic Culture unstable Family/Tribal Barter Agricultural Industrial “Third Wave” 3,000BC - 1700AD 1700 -present 1960 - ? Renewable Mechanical Non-renewable Coal, Oil Electrical Little Natural Scientific Method Technology Electrical Biology Social Sciences Genome Cultivation Domestication “Scientific” Farming Settlements Self contained Centralized Gov’t Church Distrib. systems Large Industry Specialization Urban Societal Interdependence + “Biological Foods” ? Work Ind. World Gov’t Information Net Dr. Lee Jacokes Aquinas College Fundamentals of Organization Structure TM 2-1 Pyramidal Organization Chart © The McGraw-Hill Companies, Inc., 2001 Functional Departments based on similar skills and resource use. President CEO Human Resources Manufacturing Lack of communication Deep expertise Efficiency Accounting Lack of innovation Divisional Encourages decentralization Division 1 HR Man Acct President CEO Product Program Geography Redundancy Self contained Focus Division 2 HR Man Acct Flexibility changes Requires changes in rapidly A Horizontal Structure culture Promotes a focus Top Management Team Directs the attention Process Owner Team 1 Market Analysis Research Team 2 Product Planning Limits in-depth skill Determining core processes Team 3 Testing Customer New Product Development Process Process Owner Team 1 Analysis Purchasing Team 2 Material Flow Team 3 Distrib. Procurement and Logistics Process Reengineering Process Customer Matrix Cross functional Teams Human Resources Product 1 Product 2 Time One employee reports to 2 bosses at same time President CEO Manufacturing Innovative Creative Accounting Employee caugh in Middle Conflicting demands Team interacting closely shared commitment Cross functional Creativity True team = mutual accountability Faster response to change High Maintenance Time Network Designer Best of the Breed Human Resources Subcontracts many functions to other companies Virtual organization Hub Give up control Manufacturing Changed quickly Marketing SYSTEMS A system can be conceived as a collection of individual parts which collectively relate together in some manner to accomplish some objective(s) or tasks(s) which could not be accomplished by the individual elements working separately Any Level Quantum Atomic Molecular Biological Organic Social Cosmological ???? The Basic Elements of a System Environment Inputs Transformation Process Feedback Outputs SIMPLE SYSTEM Closed System wires (communication network) Battery Open System Heating System in a Home signals (feed back) Room air temperature causing change in Thermostat to turn on or off Furnace BASIC COMPONENTS OF ANY SYSTEM System has an objective which can be accomplished by interaction of the system sub-units An energy source to “drive” system An energy conversion process to “produce” the objective Transformation Process A communication network between system units ADDITIONAL CHARACTERISTICS •Cycle of Events Patterns Time Repeat Loss of Negative Entropy Movement toward energy disorganization death Information input Feedback/Inputs Coding process ADDITIONAL CHARACTERISTICS The Steady State & Dynamic Homeostasis Consistent energy exchange System will attempt to maintain/restore “steady state” But constantly changing in reaction to environment Driving Forces Growth - quantitative & qualitative Adaptation to environment Acquisition from environment ADDITIONAL CHARACTERISTICS Differentiation Movement toward increasing complexity and specialization Integration & coordination Norms Differentiation countered by Values process to unify system Equifinality Multiple paths from initial conditions to final objective ORGANIZATIONAL BEHAVIOR Groups Defined Two or more individuals interacting with each other in order to accomplish a common goal. Groups Defined Frequently Two or more individuals interacting with each other in order to accomplish a common goal. Groups Defined Frequently Two or more individuals interacting with each other in order to accomplish a common goal. Established mean of Communication Types of Groups • Formal Groups Intentionally created by Org. Command Group Task A Group group of subordinates who report to one constitutes A group ofmanager individuals who the command Teamparticular group. The command is specified by are working as a interracting unit togroup very A formal group formala organizational chart. complete project or job task. •Informalthe Groups Created by choice closely, shared commitment and of members Interestagree Groups upon goals. An informal group that is established the workplace A group that in forms because ofbecause of some Friendship Groups characteristic of its some specialcommon topic of interest. members and that may extend the interaction of its members to include activities outside the workplace. Why People form Groups Need Satisfaction Social Needs Security Needsis the physical Proximity Proximity & Attraction distance between Esteem Needs employees. Achievement of Group Goals Attraction is typically Economic Benefits Group goals, clearly engendered by if similarities In cases, groups understood, can be form a or in many attitudes, performance motivations. because people believeare they reasons why people can derive economic drawngreater to a group. benefits from their jobs if they organize. Stages of Group Development Forming: •Orientation •Break the ice Leader: •Facilitate social interchanges Stages of Group Development Forming Storming: •Conflict •Disagreement Leader: •Encourage participation •Surface differences Stages of Group Development Forming Storming Norming: •Establish order •Build cohesion Leader: •Help clarify team roles •Clarify norms •Clarify values Stages of Group Development Forming Performing: •Cooperation •Problem solving Leader: •Facilitate task accomplishment Storming Norming Stages of Group Development Forming Storming Norming Adjourning: Performing •Task Completion Leader: •Bring Closure •Signify Completion Stages of Group Development Forming Performing Storming Adjourning Norming Roles Task Help Team Accomplish Task • Initiation • Give opinions • Seek information • Summarize • Energize. Maintenance Support Emotional Needs and Social Unity • • • • • Encourage Harmonize Reduce tension Follow Compromise. Nonparticipator Role Contributes little to either the task or members’ socioemotional needs. Team Norms Standards of conduct shared by team members that guides their behavior. Development of Team Norms • • • • Critical Events Primacy Carryover behaviors Explicit statements. Groups Most Productive •Task and/or authority are clearly spelled out. •Group members jobs/responsibilities are inter-dependent (there is a need to cooperate). •Outcome desired (goal) is identified and agreed upon. •Members are interested in problem. •Members have developed good group skills. •Disagreement is encouraged. Benefits of Synergy Synergism is the cooperative action of discrete entities such that the total effect is greater than the sum of the effects taken independently. Synergistic groups can create something that is more than the sum total of that produced by individuals Synergistic Group Potential Group Performance = Individual Performance + Synergy Managerial Implications Successful teams have specific, well-defined goals, develop interdependent and collaboration share leadership, provide feedback, recognize the reward performance. A manager must create the environment for the development and nurturing of successful teams. Groups Most Productive •Task and/or authority are clearly spelled out. •Group members jobs/responsibilities are inter-dependent (there is a need to cooperate). •Outcome desired (goal) is identified and agreed upon. •Members are interested in problem. •Members have developed good group skills. •Disagreement is encouraged. That’s it for today On to groups ORGANIZATIONAL BEHAVIOR Organizations Formal organizations are special environments • Place constraints – – – – official authority Expectations Unnatural Adopt to restrictions • Goals & Purpose – Reason for existence – Have to produce good or services with reasonable efficiency • Judged by results – Accomplishments oriented Social Systems is any number of people who have relatively more interactions with one another than others • Mutual interdependent elements • Boundary Separating it from the environm • Self adjusting – strive for equilibrium Stability - make behavior more • Open to surrounding environment predictable Occasionally need • Often have subsystems to shift perspective. • Both functional & dysfunctional behavior All behavior fuctional - to whom - How? TM 3-1 Separating the Required from the Emergent System 2 MAJOR COMPONETS OF ANY SOCIAL SYSTEM connected to but not always consistent with REQUIRED SYSTEM EMERGENT SYSTEM Required behavior Required attitudes Emergent behavior Emergent attitudes, especially norms © The McGraw-Hill Companies, Inc., 2001 TM 3-4 The Complete Basic Social System Conceptual Scheme affect Leadership style results in Background factors 1. Personal systems 2. External status 3. Organizational culture 4. Technology/layout 5. Reward system affects Influence the components of Often cause modification in lead to Emergent system 1. Activities 2. Interactions 3. Attitudes Consequences for competitiveness Productivity Satisfaction Development/ growth lead to Required system 1. Activities 2. Interactions 3. Attitudes Often cause modification in © The McGraw-Hill Companies, Inc., 2001 Background Factors What is brought to the group Comes with individual • Personal System age, sex, feelings experience • External Status Outside the group • Organizational Culture Attitudes, • Technology/Layout behavior, norms • Reward System What behavior gets rewarded Required System Expected by the org. for the work • Activities Work design & layout • Interactions others • Attitudes desired Leadership Style? Behaviors, fit Model Emergent System Develops as a • Activities • Interactions • Attitudes Consequences result of interaction with others and work Functional/dysfunction al?Begin by sorting • Productivity information into 5 • Satisfaction • Development/Growth categories and look for connecting TM 1-2 Many Possible Causes for Any Given Problem Possible Causes: A. Poor leadership Problem as it is first seen: B. Inadequate training and knowledge C. Change in quality of materials Poor performance D. Improper procedures E. Members who are bored by their work/overwhelmed by it F. Pay that doesn’t seem fair to members G. Lack of penalties for poor performance/ lack of rewards for excellent performance H. Other factors © The McGraw-Hill Companies, Inc., 2001 That’s it for today On to groups ORGANIZATIONAL BEHAVIOR Cohesiveness in Groups Cohesiveness The extent to which team members are attracted to the team and motivated to remain in it. A close and unified group will behave differently, for better or worse, than one that is distant and fragmented The consequences of sticking together are an important issue for productivity, satisfaction and development Determinates of Cohesion Interaction • Greater opportunity = greater likelihood of interaction • Great interaction = greater likelihood of developing positive feelings Possible exceptions • Strong prior negative feelings • Significant status differences Required Interaction Is what the organization requires as part of the job behaviors, attitudes & values Loyalty customer 1st company 1st extra effort Required Interaction Is what the organization requires as part of the job behaviors, attitudes & values Frequent interactions Social relationships Attractiveness Cohesiveness Common Attitudes & Values Members bring with them • Greater similarity greater cohesion Superordinate Goal • Greater goal Common Enemy • If people have a common enemy, they are likely to feel a kinship Success in Achieving Goals Achieving goals Group status Cohesiveness Attractiveness Low External Interaction • Sense of separateness, isolation and difference often increases cohesion Resolution of Differences • The more easily and frequent member differences are settled in a satisfactory way, the group cohesion. Availability of Resources • Group cohesion will increase under conditions of abundant resources. Consequences of Group Cohesiveness • Morale and satisfaction are raised • Performance Productivity tends to more uniform Productivity depends on relationship with management. The more cohesive the more they work to accomplish their Goals? Consequences of Group Cohesiveness • Morale and satisfaction are raised • Performance Productivity tends to more uniform Productivity depends on relationship with management. The more cohesive the more they work to accomplish their Goals? Team Diversity • Homogeneous – A team is considered similar or homogeneous when it is composed of individuals having group-related characteristics, backgrounds, interests, values, and attitudes that are alike. • Heterogeneous – When the individuals are dissimilar with respect to group-related characteristics, backgrounds, interests, values, and attitudes, the group is diverse and is referred to as heterogeneous. Team Diversity • For tasks that are standard and routine, a homogeneous group functions more quickly • For tasks that are nonroutine and require diverse skills, a heterogeneous group yields better results. Groupthink An agreement-at-any-cost mentality that results in ineffective group decision making. Groupthink • Defined – Refers to the deterioration of the mental efficiency, reality testing, and moral judgment of the individuals members of a group in the interest of group solidarity. Groupthink • Characteristics of Groupthink – – – – – – Illusions of invulnerability Collective rationalization Belief in the morality of group decisions Self-censorship Illusion of unanimity in decision making Pressure on members who express arguments The Relationship Between Group Cohesiveness and Organizational Goals Agreement with Organizational Goals Low Low Degree of Group Cohesiveness High High Performance probably oriented away from organizational goals. Performance probably oriented toward organizational goals Performance oriented away from organizational goals Performance oriented toward organizational goals That’s it for today On to groups TASK •Review Banana Time •Identify Determinates of Cohesion •Identify how they effected emergent group behavior •Post on Whiteboard ORGANIZATIONAL BEHAVIOR Bases of Differentiation in Groups Status in group depends on contribution to what group values Level of external status Higher external – Higher initial internal Usually higher status latter © The McGraw-Hill Companies, Inc., 2001 Bases of Differentiation in Groups Level of external status Status congruency Refers to similar status on all factors relating to group status that group values Age Experience Education Income © The McGraw-Hill Companies, Inc., 2001 Bases of Differentiation in Groups Level of external status Status congruency Conformity to group norms Higher conformity – Higher status © The McGraw-Hill Companies, Inc., 2001 TM 5-1 Individual Conformity to Norms and Status in Group High conformity to norms Moderate conformity to norms Low conformity to norms Emergent Status High - informal leader Medium regular Low – deviant at first,then if no increase isolate Except occasionally by established leader Bases of Differentiation in Groups Incongruent high external status tend to become isolates Level of Incongruent low external status external status tend to become deviants Status congruency Conformity to group norms Higher conformance – Higher status Nonconformity – at first group increases interaction with deviant, if no change – minimize interaction - isolate © The McGraw-Hill Companies, Inc., 2001 Bases of Differentiation in Groups Level of external status Status congruency Conformity to group norms Fulfillment of task and social roles More contribution to task fulfillment – More respect More contribution to social aspects – More liked More contribution to task & social aspects – Higher status Bases of Differentiation in Groups Higher status – Greater influence to Level of external status effect others behavior Status congruency Emergent status Influence in group Conformity to group norms Fulfillment of task and social roles © The McGraw-Hill Companies, Inc., 2001 Roles Task Help Team Accomplish Task • Initiation • Give opinions • Seek information • Summarize • Energize. Maintenance Support Emotional Needs and Social Unity • • • • • Encourage Harmonize Reduce tension Follow Compromise. Nonparticipator Role Contributes little to either the task or members’ socioemotional needs. Team Norms Standards of conduct shared by team members that guides their behavior. Development of Team Norms • • • • Critical Events Primacy Carryover behaviors Explicit statements. Additional Propositions •Those who do jobs group sees as critical usually given higher status •The more member differentiation is based on task requirements the more productive the group is likely to be •The greater the differentiation and cohesion of a group with norms supporting organization’s goals, the greater productivity is likely to be •Routine tasks, more differentiaiton - less growth •Less differentiation, more creativity and frustration, more growth Group Effectiveness • Size Depends on task Smaller less resources easier to communicate and coordinate Group Effectiveness • Size • Distribution of resources More evenly resources are distributed – More total participation is appropriate Group Effectiveness • Size • Distribution of resources • Complexity/Diversity of task More– Greater need for variety of resources Group Effectiveness • Size • Distribution of resources • Complexity/Diversity of task • Time pressure More– Less participation Smaller group Group Effectiveness • Size • Distribution of resources • Complexity/Diversity of task • Time pressure • Task Interdependence More– Greater need for coordination Smaller group Stages of Group Development Sub grouping Membership Forming Confrontation Individual Differentiation Storming Norming Collaboration Performing Adjourning TM 6-1.0 Issues Facing Any Work Group ISSUE QUESTIONS 1. Atmosphere and relationships. What kinds of relationships should there be among members? How close and friendly, formal or informal? 2. Member participation. How much participation should be required of members? Some more than others? All equally? Are some members m and acceptance ore needed than others? 3. Goal understanding and acceptance. How much do members need to understand group goals? How much do they need to accept to be committed to the goals? Everyone equally? Some more than others? © The McGraw-Hill Companies, Inc., 2001 TM 6-1.1 Issues Facing Any Work Group ISSUE QUESTIONS 4. Listening and information sharing. How is information to be shared? Who needs to know what? Who should listen to whom? 5. Handling disagreements. and conflict. How should disagreements or conflicts be handled? To what extent should they be resolved? Brushed aside? Handles by dictate? 6. Decision making. How should decisions be made? Consensus? Voting? One-person rule? Secret ballot? © The McGraw-Hill Companies, Inc., 2001 TM 6-1.2 Issues Facing Any Work Group ISSUE QUESTIONS 7. Evaluation of member performance. How is evaluation to be managed? Everyone appraises everyone else? A few take the responsibility? Is it to be avoided? 8. Expressing feelings. How should feelings be expressed? Only about the task? Openly and directly? 9. Division of labor. How are task assignments to be made? Voluntarily? By discussion? By leaders? 10. Leadership. Who should lead? How should leadership functions be exercised? Shared? Elected? Appointed from the outside? 11. Attention to process. How should the group monitor and improve its own process? © The McGraw-Hill Companies, Inc., 2001 Issues Facing Any Work Group - Summary ISSUE QUESTIONS 1. Atmosphere and relationships. What kinds of relationships should there be among members? How close and friendly, formal or informal? 2. Member participation. How much participation should be required of members? Some more than others? All equally? Are some members more needed than others? 3. Goal understanding and acceptance. How much do members need to understand group goals? How much do they need to accept to be committed to the goals? Everyone equally? Some more than others? 4. Listening and information sharing. How is information to be shared? Who needs to know what? Who should listen to whom? 5. Handling disagreements and conflict. How should disagreements or conflicts be handled? To what extent should they be resolved? Brushed aside? Handled by dictate? 6. Decision making. How should decisions be made? Consensus? Voting? Oneperson rule? Secret ballot? 7. Evaluation of member performance. How is evaluation to be managed? Everyone appraises everyone else? A few take the responsibility? Is it to be avoided? 8. Expressing feelings. How should feelings be expressed? Openly and directly? 9. Division of labor. How are task assignments to be made? discussion? By leaders? 10. Leadership. Who should lead? How should leadership functions be exercised? Shared? Elected? Appointed from the outside? 11. Attention to process. How should the group monitor and improve its own process? Only about the task? Voluntarily? By TASK •Using “Issues Facing Any Work Group” (previous 3 slides) •Analyze your groups TEC - Compare how your TEC accomplishes the issue •Write and hand in your group’s analysis •Fill out a TEC on this exercise (date and indicate exercise) GOOD LUCK GETTING READY FOR THE TEST