ORGANIZATIONAL BEHAVIOUR

PROFESSIONAL DIPLOMA
 PROGRAM OUTLINE

Chapter 1: What is Organizational Behaviour?

Chapter 2: Foundations of Individual/Group Behaviour
Chapter 3: Basic Motivation Concepts
Chapter 4: Motivation: From Concepts to Application
Chapter 5: Contemporary Issues in Leadership
Chapter 6: Power and Politics
Chapter 7: Conflict and Negotiation
Chapter 8: Organizational Culture
Chapter 9: Organizational Change and Stress Management
Chapter One

What Is Organizational
Behavior
What Managers Do

Managers (or administrators)

Individuals who achieve goals through other people.

Managerial Activities
•Make decisions
•Allocate resources
•Direct activities of others
to attain goals
Where Managers Work

Organization
A consciously coordinated social unit, composed of
two or more people, that functions on a relatively
continuous basis to achieve a common goal or set of
goals.
Management Functions

Planning
A process that includes defining goals, establishing strategy, and
developing plans to coordinate activities.
Organizing
Determining what tasks are to be done, who is to do them, how the
tasks are to be grouped, who reports to whom, and where decisions
are to be made.
Leading
A function that includes motivating employees, directing others,
selecting the most effective communication channels, and resolving
conflicts.

Controlling
Monitoring activities to ensure they are being accomplished as
planned and correcting any significant deviations.
Management Skills

Technical skills
The ability to apply specialized knowledge or expertise.

Human skills
The ability to work with, understand, and motivate other
people, both individually and in groups.

Conceptual Skills
The mental ability to analyze and diagnose complex situations.
Effective Versus Successful Managerial
Activities (Luthans)

1. Traditional management
• Decision making, planning and controlling
2. Communication
• Exchanging routine information and processing
paperwork
3. Human resource management
• Motivating, disciplining, managing conflict, staffing,
and training
Enter Organizational Behavior

Organizational behavior (OB)

OB studies what people do in an organization and

how that behavior affects the performance of the
organization.
Focal Points ofFocal
OB Points of OB

• Jobs
• Work
• Absenteeism
• Employment turnover
• Productivity
• Human performance
• Management
Behaviour in Organisation

• Determinants of individual performance

• Individual characteristics

• Individual motivation

• Group behaviour

• Power and politics

• Intergroup behaviour, conflict

• Reward and appraisal systems

Challenges and Opportunities for OB
Responding to Globalization
– Increased foreign assignments
– Working with people from different cultures

Managing Workforce Diversity

– Embracing diversity
– Changing demographics
Challenges and Opportunities for OB (cont’d)
Improving Quality and Productivity
– Quality management (QM)
– Process reengineering
Responding to the Labor Shortage
– Changing work force demographics
– Fewer skilled laborers
– Early retirements and older workers
Improving Customer Service
– Increased expectation of service quality
– Customer-responsive cultures
Challenges and Opportunity for OB (cont’d)
Improving People Skills
Empowering People
Stimulating Innovation and Change
Coping with “Temporariness”
Working in Networked Organizations
Chapter 2

Foundations of
Individual/Group
Behavior
Biographical Characteristics

Biographical Characteristics
Personal characteristics - such as age, gender, and
marital status - that are objective and easily obtained
from personnel records.
Ability, Intellect and Intelligence

Ability
An individual’s capacity to perform the various tasks
in a job.

Intellectual Ability
The capacity to do mental activities.
Physical Abilities

Physical Abilities
The capacity to do tasks demanding stamina,
dexterity, strength, and similar characteristics.
Learning

Learning
Any relatively permanent change in behavior
that occurs as a result of experience.

Learning
•Involves change
•Is relatively permanent
•Is acquired through experience
Theories of Learning

Classical Conditioning
A type of conditioning in which an individual
responds to some stimulus that would not
ordinarily produce such a response.

Key Concepts
•Unconditioned stimulus
•Unconditioned response
•Conditioned stimulus
•Conditioned response
Theories of Learning (cont’d)

Operant Conditioning
A type of conditioning in which desired voluntary
behavior leads to a reward or prevents a punishment.

Key Concepts
•Reflexive (unlearned) behavior
•Conditioned (learned) behavior
•Reinforcement
Theories of Learning (cont’d)

Social-Learning Theory
People can learn through observation and direct
experience.

Key Concepts
•Attentional processes
•Retention processes
Theories of Learning (cont’d)

Shaping Behavior
Systematically reinforcing each successive step that
moves an individual closer to the desired response.

Key Concepts
•Reinforcement is required to change behavior.
•Some rewards are more effective than others.
Types of Reinforcement
Positive reinforcement
– Providing a reward for a desired behavior.
Negative reinforcement
– Removing an unpleasant consequence when the
desired behavior occurs.
Punishment
– Applying an undesirable condition to eliminate an
undesirable behavior.
Schedules of Reinforcement

Continuous Reinforcement
A desired behavior is reinforced each time it is
demonstrated.

Intermittent Reinforcement
Schedules of Reinforcement (cont’d)

Fixed-Interval Schedule
Rewards are spaced at uniform time intervals.

Variable-Interval Schedule
Values, Attitudes &
Job Satisfaction
Importance of Values

Provide understanding of the attitudes,

motivation, and behaviors of individuals and
cultures.
Influence our perception of the world around us.
Represent interpretations of “right” and “wrong.”
Types of Values –- Rokeach Value Survey

Terminal Values
Desirable end-states of existence; the goals that a
person would like to achieve during his or her
lifetime.

Instrumental Values
Preferable modes of behavior or means of achieving
one’s terminal values.
Attitudes

Attitudes Cognitive component

The opinion or belief segment
Evaluative of an attitude.
statements or
judgments Affective Component
concerning The emotional or feeling segment
objects, of an attitude.
people, or
events. Behavioral Component
An intention to behave in a certain
way toward someone or something.
Types of Attitudes

Job Satisfaction
A collection of positive and/or negative feelings that
an individual holds toward his or her job.

Job Involvement
Identifying with the job, actively participating in it,
and considering performance important to self-worth.

Organizational Commitment
Identifying with a particular organization and its
goals, and wishing to maintain membership in the
organization.
Job Satisfaction
Measuring Job Satisfaction
– Single global rating
– Summation score
How Satisfied Are People in Their Jobs?
– Job satisfaction declined to 50.4% in 2002
– Decline attributed to:
• Pressures to increase productivity and meet tighter
deadlines
• Less control over work
The Effect of Job Satisfaction on Employee
Performance

Satisfaction and Productivity

– Satisfied workers aren’t necessarily more productive.
– Worker productivity is higher in organizations with
more satisfied workers.
Satisfaction and Absenteeism and Turnover
– Satisfied employees have fewer avoidable absences.
Satisfied employees are less likely to quit.
– Organizations take actions to retain high performers
and to weed out lower performers.
Personality &
Emotions
What is Personality?

Personality
The sum total of ways in which an individual reacts
and interacts with others.

Personality Traits
Enduring characteristics Personality
that describe an Determinants
individual’s behavior. • Heredity
• Environment
• Situation
The Myers-Briggs Type Indicator

Myers-Briggs Type Indicator (MBTI)

A personality test that taps four characteristics and
classifies people into 1 of 16 personality types.

Personality Types
• Extroverted vs. Introverted (E or I)
• Sensing vs. Intuitive (S or N)
• Thinking vs. Feeling (T or F)
• Judging vs. Perceiving (P or J)
The Big Five Model of Personality Dimensions

Extroversion
Sociable, gregarious, and assertive

Agreeableness
Good-natured, cooperative, and trusting.

Conscientiousness
Responsible, dependable, persistent, and organized.

Emotional Stability
Calm, self-confident, secure (positive) versus nervous, depressed,
and insecure (negative).
Major Personality Attributes Influencing OB

Locus of control
Machiavellianism (exploit others)
Self-esteem
Self-monitoring, risk taking and type A
personality
Achieving Person-Job Fit

Personality-Job Fit
Theory (Holland)
Identifies personality types
Personality Types
and proposes that the fit
between personality type •Realistic
and occupational •Investigative
environment determines
•Social
satisfaction and turnover.
•Conventional
What Are Emotions?

Emotional Labor and emotional dissonance

A situation in which an employee expresses
organizationally desired emotions during
interpersonal transactions.
A situation in which an employee
must project one emotion while simultaneously
feeling another.
Felt versus Displayed Emotions

Felt Emotions
An individual’s actual emotions.

Displayed Emotions
Emotions that are organizationally required and
considered appropriate in a given job.
Emotion Dimensions
Variety of emotions
– Positive
– Negative
Intensity of emotions and Frequency and
duration of emotions
– How often emotions are exhibited.
– How long emotions are displayed.
Gender and Emotions
Women
– Can show greater emotional expression.
– Experience emotions more intensely.
– Display emotions more frequently.
– Are more comfortable in expressing emotions.
– Are better at reading others’ emotions.
Men
– Believe that displaying emotions is inconsistent with
the male image.
Ability and Selection

Emotional
Intelligence
An assortment of
noncognitive skills, Emotional Intelligence (EI)
capabilities, and – Self-awareness
competencies that – Self-management
influence a person’s – Self-motivation
ability to succeed in – Empathy
coping with – Social skills
environmental
demands and
pressures.
Defining and Classifying Groups

Group(s)
Two or more individuals interacting and
interdependent, who have come together
to achieve particular objectives.

Formal Group Informal Group

A designated work A group that is neither
group defined by the formally structured now
organization’s structure.
Defining and Classifying Groups (cont’d)

Command Group Task Group

A group composed of Those working together
the individuals who to complete a job or task.
report directly to a
given manager.

Interest Group Friendship Group

Those working together Those brought together
to attain a specific because they share one
objective with which or more common
each is concerned. characteristics.
Why People Join Groups

•Security (Safety)
•Self-esteem (Confidence)
•Affiliation (Relationship)
•Power
•Goal Achievement
The Five-Stage Model of Group Development

Forming Stage
The first stage in group development, getting to
know and form initial opinions about team members
Storming Stage
The second stage in group development, some team
members begin to have conflict with each other
Norming Stage
The third stage in group development, team
members accept each other and overcome the
conflict
…Group Development (cont’d)

Performing Stage
The fourth stage in group development, when the
group is fully functional, team works on task

Adjourning Stage
The final stage in group development for temporary
groups, characterized by concern with wrapping up
activities rather than performance.
Team completes task and brings closure to the
project
Group Structure - Norms (cont’d)

Deviant Workplace Behavior

Antisocial actions by organizational members that
intentionally violate established norms and result in
negative consequences for the organization, its
members, or both.
Group Decision-Making Techniques

Brainstorming
An idea-generation process that specifically
encourages any and all alternatives, while
withholding any criticism of those alternatives.
Chapter 3

Basic Motivation
Concepts
Defining Motivation

Motivation
The processes that account for an individual’s
intensity, direction, and persistence of effort toward
attaining a goal.
 Motivation: Its Basic Components

Excitement Direction Maintenance Goal

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Persis
Desire
n t wo rk
to l ime Good
Co mp
make a
good
Work extra hard Persist impression
Do spe made
impress cial fav
ors
ion
Persis
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3
Hierarchy of Needs Theory (Maslow)

Hierarchy of Needs Theory

There is a hierarchy of five needs—physiological,
safety, social, esteem, and self-actualization; as
each need is substantially satisfied, the next need
becomes dominant.

Self-Actualization
The drive to become what one is capable of becoming.
MOTIVATION
Maslow in the Workplace
Self-actualization—Expand Skills

Esteem—Recognition/Respect

Social—Informal Groups

Safety—Job Security/Environment

Physiological—Basic Wages

58
Theory X and Theory Y (Douglas McGregor)

Theory X
Assumes that employees dislike work, lack ambition, avoid
responsibility, and must be directed and coerced to perform.

Theory Y
Assumes that employees like work, seek responsibility, are
capable of making decisions, and exercise self-direction and
self-control when committed to a goal.
Two-Factor Theory (Frederick Herzberg)
ERG Theory (Clayton Alderfer)

ERG Theory
There are three groups of core needs: existence,
relatedness, and growth.
David McClelland’s Theory of Needs

Need for Achievement Need for Affiliation

The drive to excel, to achieve The desire for friendly
in relation to a set of and close personal
standards, to strive to relationships.
succeed.

Need for Power nPow

The need to make others
behave in a way that they
would not have behaved
otherwise.
nAch nAff
Cognitive Evaluation Theory

Cognitive Evaluation Theory

Providing an extrinsic reward for behavior that
had been previously only intrinsically rewarding
tends to decrease the overall level of motivation
and extremely interesting.
Goal-Setting Theory (Edwin Locke)

Goal-Setting Theory
The theory that specific and difficult goals, with
feedback, lead to higher performance.

Factors influencing the goals–performance

relationship:
Goal commitment, adequate self-efficacy, task
characteristics, and national culture.
Reinforcement Theory

The assumption that behavior is a function of its

consequences.

Concepts:
Behavior is environmentally caused.
Behavior can be modified (reinforced) by
providing (controlling) consequences.
Job Design Theory

Job Characteristics
Model Characteristics:
Identifies five job 1. Skill variety
characteristics and their
2. Task identity
relationship to personal
and work outcomes. 3. Task significance
4. Autonomy
5. Feedback
Job Design Theory (cont’d)

Job Characteristics Model

– Jobs with skill variety, task identity, task significance,
autonomy, and for which feedback of results is given,
directly affect three psychological states of employees:
• Knowledge of results
• Meaningfulness of work
• Personal feelings of responsibility for results
Job Design Theory (cont’d)

Skill Variety
The degree to which a job requires a variety of
different activities.

Task Identity
The degree to which the job requires completion of
a whole and identifiable piece of work.

Task Significance
The degree to which the job has a substantial
impact on the lives or work of other people.
Job Design Theory (cont’d)

Autonomy (Independence)
The degree to which the job provides substantial
freedom and discretion to the individual in
scheduling the work and in determining the
procedures to be used in carrying it out.
Equity Theory

Equity Theory
Individuals compare their job inputs and outcomes
with those of others and then respond to eliminate
any inequities.

Referent
Comparisons:
Self-inside
Self-outside
Equity Theory (cont’d)

Choices for dealing with inequity:

1. Change inputs (slack off)
2. Change outcomes (increase output)
Equity Theory (cont’d)

Propositions relating to inequitable pay:

1. Overrewarded hourly employees produce
more than equitably rewarded employees.
2. Overrewarded piece-work employees
produce less, but do higher quality piece
work.
3. Underrewarded hourly employees produce
lower quality work.
Equity Theory (cont’d)

Distributive Justice
Perceived fairness of the amount and allocation of
rewards among individuals.

Procedural Justice
The perceived fairness of the process to determine
the distribution of rewards.
Expectancy Theory

Expectancy Theory (Victor Vroom)

The strength of a tendency to act in a certain way
depends on the strength of an expectation that the
act will be followed by a given outcome and on the
attractiveness of that outcome to the individual.
Expectancy Theory Relationships

Effort–Performance Relationship
– The probability that exerting a given amount of effort
will lead to performance.
Performance–Reward Relationship
– The belief that performing at a particular level will
lead to the attainment of a desired outcome.
Chapter 4

Motivation:
From Concepts to
Applications
What is MBO?

Management by Objectives (MBO)

A program that encompasses specific goals,
participatively set, for an explicit time period,
with feedback on goal progress.

Key Elements
1. Goal specificity
2. Participative decision making
Why MBO’s Fail
Unrealistic expectations about MBO results
Lack of commitment by top management
Failure to allocate reward properly
Cultural incompatibilities
Employee Recognition Programs
Types of programs
– Personal attention
– Expressing interest
– Approval
– Appreciation for a job well done
Benefits of programs
– Fulfill employees’ desire for recognition.
What is Employee Involvement?

Employee Involvement Program

A participative process that uses the entire capacity of
employees and is designed to encourage increased
commitment to the organization’s success.

Participative Management
A process in which subordinates share a significant
degree of decision-making power with their
immediate superiors.
Examples of Employee Involvement Programs
(cont’d)

Representative Participation
Workers participate in organizational decision making
through a small group of representative employees.

Works Councils - groups of nominated or elected employees

who must be consulted when management makes decisions
involving personnel.
Examples of Employee Involvement Programs
(cont’d)

Quality Circle
A work group of employees who meet regularly to
discuss their quality problems, investigate causes,
recommend solutions, and take corrective actions.
Examples of Employee Involvement Programs
(cont’d)

Employee Stock Ownership Plans (ESOPs)

Company-established benefit plans in which
employees acquire stock as part of their benefits.
Linking EI Programs and Motivation Theories

Employee Two-Factor
Theory Y
Involvement Theory
Participative
Intrinsic
Management Programs
Motivation

ERG Theory
Employee
Needs
Job Design and Scheduling

Job Rotation
The periodic shifting of a worker from one task to
another.

Job Enlargement
The horizontal expansion of jobs.
Work Schedule Options

Flextime
Employees work during a common core time period
each day but have discretion in forming their total
workday from a flexible set of hours outside the core.

Job Sharing
The practice of having two or more people split a
40-hour-a-week job.
Work Schedule Options

Telecommuting
Employees do their work at home on a computer
that is linked to their office.

Categories of telecommuting jobs:

• Routine information handling tasks
• Mobile activities
Telecommuting
Advantages Disadvantages (Employer)
– Larger labor pool Less direct supervision
of employees
– Higher productivity
Difficult to coordinate
– Less turnover
teamwork
– Improved morale
– Reduced office-space
costs
Variable Pay Programs

Variable Pay Programs

A portion of an employee’s pay is based on some
individual and/or organization measure of
performance.
• Piece rate pay plans
• Profit sharing plans
Variable Pay Programs (cont’d)

Piece-rate Pay Plans

Workers are paid a fixed sum for each unit of
production completed.

Profit-Sharing Plans
Organization wide programs that distribute
compensation based on some established formula.
Skill-Based Pay Plans

Pay levels are based on how many skills employees

have or how many jobs they can do.

Benefits of Skill-based Pay Plans:

1. Provides staffing flexibility.
2. Facilitates communication across the organization.
3. Lessens “protection of territory” behaviors.
Skill-Based Pay Plans (cont’d)

Drawbacks of Skill-based Pay Plans:

1. Lack of additional learning opportunities that will
increase employee pay.
2. Continuing to pay employees for skills that have
become obsolete.
3. Paying for skills which are of no immediate use
to the organization.
Flexible Benefits

Employees tailor their

benefit program to
Core-Plus Plans:
meet their personal a core of essential benefits
need by picking and and a menu-like selection
choosing from a menu of other benefit options.
of benefit options.

Modular Plans: Flexible Spending Plans:

predesigned benefits allow employees to use
packages for specific their tax-free benefit
groups of employees. dollars purchase benefits
and pay service premiums.
Implications for Managers
Motivating Employees in Organizations
– Recognize individual differences.
– Use goals and feedback.
– Allow employees to participate in decisions that affect
them.
Chapter 5
Contemporary
Issues in
Leadership
What Is Leadership?

Leadership and Management

The ability to influence a group toward the
achievement of goals.

Use of authority inherent in

designated formal rank to obtain
compliance from organizational
members.
Trust: The Foundation of Leadership

Trust
A positive expectation that another will not—through
words, actions, or decisions—act opportunistically.
Trust is a history-dependent process (familiarity)
based on relevant but limited samples of experience
(risk).
Dimensions of Trust
Integrity Loyalty
– honesty and truthfulness. the willingness to protect
and save face for another
Competence
person.
– an individual’s technical
Openness
and interpersonal
knowledge and skills. reliance on the person to
give you the full truth.
Consistency
– an individual’s reliability,
predictability, and good
judgment in handling
situations.
Trust and Leadership

Leadersh
ip

INTEGRITY
and
TRUST
Three Types of Trust
Deterrence-based Trust
Trust based on fear of reprisal if the trust is violated.

Knowledge-based Trust
Trust based on behavioral
predictability that comes
from a history of interaction.

Identification-based Trust
Trust based on a mutual understanding of each
other’s intentions and appreciation of the other’s
wants and desires.
Basic Principles of Trust
Mistrust drives out trust.
Trust creates trust.
Trust increases interconnection
Inspirational Approaches to Leadership

Charismatic Leadership Theory

Followers make attributions of heroic or
extraordinary leadership abilities when they observe
certain behaviors.

Charismatics Influence Followers By:

1. Articulating the vision
2. Setting high performance expectations
Beyond Charismatic Leadership
Level 5 Leaders
– Possess a fifth dimension—a paradoxical blend of
personal humility and professional will—in addition to
the four basic leadership qualities of individual
capability, team skills, managerial competence, and the
ability to stimulate others to high performance.
– Channel their ego needs away from themselves and
into the goal of building a great company.
Transactional and Transformational Leadership

Transactional Leaders
• Contingent Reward
Leaders who guide or • Management by
motivate their followers in Exception (active)
the direction of established • Management by
goals by clarifying role and Exception (passive)
task requirements. • Laissez-Faire

Transformational Leaders • Charisma

Leaders who provide • Inspiration
individualized consideration • Intellectual Stimulation
and intellectual stimulation, • Individual Consideration
and who possess charisma.
Emotional Intelligence and Leadership
Effectiveness

Elements of Emotional
Intelligence:
• Self-awareness
• Self-management
• Self-motivation
Contemporary Leadership Roles: Providing
Team Leadership

Team Leadership Roles:

• Act as liaisons with
external constituencies.
• Serve as troubleshooters.
• Managing conflict.
• Coaching to improve team
member performance
Contemporary Leadership Roles: Mentoring

Mentor
Mentoring Activities:
A senior employee who
sponsors and supports a • Present ideas clearly
less-experienced • Listen well
employee (a protégé).
• Empathize
• Share experiences
• Act as role model
• Share contacts
• Provide political
guidance
Contemporary Leadership Roles:
Self-Leadership

Self-Leadership
A set of processes
through which Creating self leaders:
individuals control • Model self-leadership.
their own behavior. • Encourage employees to
create self-set goals.
• Encourage the use of
self-rewards.
• Create positive thought
patterns.
Ethical Leadership

Actions:
• Work to positively change the attitudes and
behaviors of employees.
Online Leadership
Leadership at a Distance: Building Trust
– The lack of face-to-face contact in electronic
communications removes the nonverbal cues that
support verbal interactions.
– There is no supporting context to assist the receiver
with interpretation of an electronic communication.
– The structure and tone of electronic messages can
strongly affect the response of receivers.
Challenges to the Leadership Construct

Attribution Theory of Leadership

The idea that leadership is merely an attribution that
people make about other individuals.

Qualities attributed to leaders:

• Leaders are intelligent, outgoing, have strong verbal
skills, are aggressive, understanding, and industrious.
• Effective leaders are perceived as consistent and
unwavering in their decisions.
Finding and Creating Effective Leaders
Selection
– Review specific requirements for the job.
– Use tests that identify personal traits associated with
leadership, measure self-monitoring, and assess
emotional intelligence.
– Conduct personal interviews to determine candidate’s
fit with the job.
Training
– Recognize the all people are not equally trainable.
– Teach skills that are necessary for employees to
become effective leaders.
Chapter 6

Power and Politics

A Definition of Power

Power
A capacity that A has to influence the behavior of B
so that B acts in accordance with A’s wishes.

Dependency
B’s relationship to A when A possesses something
that B requires.
Contrasting Leadership and Power
Leadership Power
– Focuses on goal Used as a means for
achievement. achieving goals.
– Requires goal Requires follower
compatibility with dependency.
followers. Used to gain lateral
– Focuses influence and upward
downward. influence.
Research Focus
– Leadership styles
and relationships
with followers
Bases of Power: Formal Power

Formal Power
Is established by an individual’s position in an
organization; conveys the ability to coerce or
reward, from formal authority, or from control of
information.

Coercive Power
A power base dependent on fear.

Reward Power
Compliance achieved based on the ability to
distribute rewards that others view as valuable
Bases of Power: Formal Power (cont’d)

Legitimate Power
The power a person receives as a result of his or her
position in the formal hierarchy of an organization.

Information Power
Power that comes from access to and control over
information.
Bases of Power: Personal Power

Expert Power
Influence based on special skills or knowledge.

Referent Power
Influence based on possession by an individual of
desirable resources or personal traits.

Charismatic Power
An extension of referent power stemming from an
individual’s personality and interpersonal style.
Dependency: The Key To Power
The General Dependency Postulate
– The greater B’s dependency on A, the greater the
power A has over B.
– Possession/control of scarce organizational resources
that others need makes a manager powerful.
– Access to optional resources (e.g., multiple suppliers)
reduces the resource holder’s power.
What Creates Dependency
– Importance of the resource to the organization,
Scarcity of the resource
Power Tactics

Power Tactics
Influence Tactics:
Ways in which
• Legitimacy
individuals translate
power bases into • Rational persuasion
specific actions. • Inspirational appeals
• Consultation
• Exchange
• Personal appeals
• Ingratiation
• Pressure
• Coalitions
Power in Groups: Coalitions

Coalitions
• Seek to maximize their
Clusters of individuals size to attain influence.
who temporarily come • Seek a broad and diverse
together to a achieve a constituency for support
specific purpose. of their objectives.
• Occur more frequently in
organizations with high
task and resource
interdependencies.
• Occur more frequently if
tasks are standardized
and routine.
Politics: Power in Action
Organizational Politics
- The use of power and influence in organizations.
Political Behavior
- Activities that are not required as part of one’s formal
role in the organization, but that influence, or attempt
to influence, the distribution of advantages or
disadvantages within the organization.

Legitimate Political Behavior

- Normal everyday politics.
Chapter 7

Conflict and Negotiation

Conflict
Conflict Defined
– Is a process that begins when one party perceives that
another party has negatively affected, or is about to
negatively affect, something that the first party cares
about.
• Is that point in an ongoing activity when an interaction
“crosses over” to become an interparty conflict.
– Encompasses a wide range of conflicts that people
experience in organizations
• Incompatibility of goals
• Differences over interpretations of facts
• Disagreements based on behavioral expectations
Types of Conflict

Task Conflict
Conflicts over content and goals of the work.

Relationship Conflict and process Conflict

Conflict based on interpersonal relationships. Conflict
over how work gets done.
Negotiation

Negotiation
A process in which two or more parties exchange
goods or services and attempt to agree on the
exchange rate for them.

BATNA
The Best Alternative To a Negotiated Agreement;
the lowest acceptable value (outcome) to an
individual for a negotiated agreement.
Bargaining Strategies

Distributive Bargaining
Negotiation that seeks to divide up a fixed amount
of resources; a win-lose situation.

Integrative Bargaining
Negotiation that seeks one or more settlements that
can create a win-win solution.
Issues in Negotiation
The Role of Personality Traits in Negotiation
– Traits do not appear to have a significantly direct effect
on the outcomes of either bargaining or negotiating
processes.
Gender Differences in Negotiations
– Women negotiate no differently from men, although
men apparently negotiate slightly better outcomes.
– Men and women with similar power bases use the
same negotiating styles.
Third-Party Negotiations

Mediator
A neutral third party who facilitates a negotiated
solution by using reasoning, persuasion, and
suggestions for alternatives.

Arbitrator
A third party to a negotiation who has the authority
to dictate an agreement.
Third-Party Negotiations (cont’d)

Conciliator
A trusted third party who provides an informal
communication link between the negotiator and the
opponent.

Consultant
An impartial third party, skilled in conflict
management, who attempts to facilitate creative
problem solving through communication and
analysis.
Conflict-Handling Intention: Avoidance
When an issue is trivial, or more important issues
are pressing.
When you perceive no chance of satisfying your
concerns.
When potential disruption outweighs the benefits
of resolution.
To let people cool down and regain perspective.
When gathering information supersedes
immediate decision.
Conflict-Handling Intention: Accommodation
When you find you’re wrong and to allow a better
position to be heard.
To learn, and to show your reasonableness.
When issues are more important to others than to
yourself and to satisfy others and maintain
cooperation.
To build social credits for later issues.
To minimize loss when outmatched and losing.
When harmony and stability are especially
important.
Conflict-Handling Intention: Compromise

When goals are important but not worth the effort

of potential disruption of more assertive
approaches.
When opponents with equal power are committed
to mutually exclusive goals.
To achieve temporary settlements to complex
issues.
Chapter 8

Organizational
Culture
What Is Organizational Culture?

Organizational Culture
A common perception Characteristics:
held by the organization’s 1. Innovation and risk
members; a system of taking
shared meaning. 2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
Do Organizations Have Uniform Cultures?

Dominant Culture
Expresses the core values that are shared by a
majority of the organization’s members.

Subcultures
Minicultures within an organization, typically defined
by department designations and geographical
separation.
Do Organizations Have Uniform Cultures?
(cont’d)

Core Values
The primary or dominant values that are accepted
throughout the organization and strong culture. A
culture in which the core values are intensely held
and widely shared.
What Is Organizational Culture? (cont’d)

Culture Versus Formalization

– A strong culture increases behavioral consistency and
can act as a substitute for formalization.
Organizational Culture Versus National Culture
– National culture has a greater impact on employees
than does their organization’s culture.
What Do Cultures Do?

Culture as a Liability:
1. Barrier to change.
2. Barrier to diversity
3. Barrier to acquisitions and mergers
How Culture Begins

Founders hire and keep only employees who

think and feel the same way they do.
Founders indoctrinate and socialize these
employees to their way of thinking and feeling.
The founders’ own behavior acts as a role model
that encourages employees to identify with them
and thereby internalize their beliefs, values, and
assumptions.
Keeping Culture Alive
Selection
– Concern with how well the candidates will fit into the
organization.
– Provides information to candidates about the
organization.
Top Management and socialization
– Senior executives help establish behavioral norms that
are adopted by the organization.
Stages in the Socialization Process

Prearrival Stage
The period of learning in the socialization process that occurs
before a new employee joins the organization.

Encounter Stage
The stage in the socialization process in which a new employee
sees what the organization is really like and confronts the
possibility that expectations and reality may diverge.

Metamorphosis Stage
The stage in the socialization process in which a new employee
changes and adjusts to the work, work group, and organization.
How Employees Learn Culture

• Stories
• Rituals (formalities)
• Material Symbols
• Language
Creating An Ethical Organizational Culture
Characteristics of Organizations that Develop
High Ethical Standards
– High tolerance for risk
– Low to moderate in aggressiveness
– Focus on means as well as outcomes
Managerial Practices Promoting an Ethical
Culture
– Being a visible role model.
– Communicating ethical expectations.
– Providing ethical training.
– Rewarding ethical acts and punishing unethical ones.
– Providing protective mechanisms.
Creating a Customer-Responsive Culture
Key Variables Shaping Customer-Responsive
Cultures
1. The types of employees hired by the organization.
2. Low formalization: the freedom to meet customer
service requirements.
3. Empowering employees with decision-making
discretion to please the customer.
4. Good listening skills to understand customer
messages.
5. Role clarity that allows service employees to act as
“boundary spanners.”
6. Employees who engage in organizational citizenship
behaviors.
Creating a Customer-Responsive Culture (cont’d)

Managerial Actions :
• Select new employees with personality and
attitudes consistent with high service
orientation.
• Train and socialize current employees to be
more customer focused.
• Change organizational structure to give
employees more control.
Creating a Customer-Responsive Culture (cont’d)

Managerial Actions (cont’d) :

• Lead by conveying a customer-focused vision
and demonstrating commitment to customers.
• Conduct performance appraisals based on
customer-focused employee behaviors.
Spirituality and Organizational Culture

Workplace Spirituality
The recognition that people have an inner life that
nourishes and is nourished by meaningful work that
takes place in the context of the community.

Characteristics:
• Strong sense of purpose
• Focus on individual development
• Trust and openness
• Employee empowerment
• Toleration of employee expression
Chapter 9

Organizational Change and

Stress Management
Managing Planned Change

Change
Making things different.

Planned Change Goals of Planned

Activities that are Change:
intentional and goal Improving the ability of
oriented. the organization to
adapt to changes in its
Change Agents environment.
Persons who act as
catalysts and assume the
responsibility for managing
change activities.
Action Research

Action Research
A change process based on systematic collection of
data and then selection of a change action based on
what the analyzed data indicate.

Process Steps: Action research benefits:

1. Diagnosis Problem-focused rather
2. Analysis than solution-centered.
3. Feedback
Heavy employee
4. Action involvement reduces
5. Evaluation resistance to change.
Organizational Development

Organizational Development (OD)

A collection of planned interventions, built on
humanistic-democratic values, that seeks to improve
organizational effectiveness and employee well-being.

OD Values:
1. Respect for people
2. Trust and support
3. Power equalization
Contemporary Change Issues For Today’s
Managers
How are changes in technology affecting the
work lives of employees?
What can managers do to help their organizations
become more innovative?
How do managers create organizations that
continually learn and adapt?
Technology in the Workplace
Continuous Improvement Processes
– Good isn’t good enough.
– Focus is on constantly reducing the variability in the
organizational processes to produce more uniform
products and services.
• Lowers costs and raises quality.
• Increases customer satisfaction.
Technology in the Workplace
Process Reengineering
– “Starting all over”
– Rethinking and redesigning organizational processes to
produce more uniform products and services.
• Identifying the organization’s distinctive
competencies—what it does best.
• Assessing core processes that add value to the
organization’s distinctive competencies.
Contemporary Change Issues for Today’s
Managers: Stimulating Innovation

Innovation
A new idea applied
Sources of Innovation:
to initiating or
improving a • Structural variables
product, process, • Organic structures
or service. • Long-tenured management
• Slack resources
• Interunit communication
Contemporary Change Issues for Today’s
Managers: Stimulating Innovation (cont’d)

Idea Champions
Individuals who take an innovation and actively and
enthusiastically promote the idea, build support,
overcome resistance, and ensure that the idea is
implemented.
Creating a Learning Organization
Single-Loop Learning and double loop learning
Errors are corrected using past routines and present
policies. Errors are corrected by modifying the
organization’s objectives, policies, and standard
routines.
Managing a Learning Organization

Establish
a strategy

Redesign the
Managing organization’s
Learning structure

Reshape the
organization’s culture
Stress

A pattern of
behavioral,
emotional, and
physiological
reactions that
occur in
response to
demanding
events
(stressors)
 The Process of Stress
Physiological
Organizational symptoms
Factors

Experienced Psychological
Stress Symptoms

Behavioral
Individual Symptoms
Factors
 Stress Factors
• Organizational • Individual
• Demanding Jobs • Stressful life events
• Competing demands • Daily stress
• Role ambiguity • Personality
• Job responsibility • Perception
• Isolation
• Unpleasant working
conditions
 Consequences of Stress
• Physiological Symptoms
– Headaches, High blood pressure, Heart
disease
• Psychological Symptoms
– Anxiety, Depression, Burnout, Callousness
• Behavioral Symptoms
– Productivity loss
– Withdrawal
Managing Stress
Individual Approaches
– Implementing time management
– Increasing physical exercise
– Relaxation training
– Expanding social support network
Managing Stress
Organizational Approaches
– Improved personnel selection and job placement
– Training
– Use of realistic goal setting
– Redesigning of jobs
– Increased employee involvement
– Improved organizational communication