Organizational

Behaviour
Evolution
What is organizational behaviour
Clockwork or snake pit.
Two perspectives
Organizational Dynamics

Psychosocial

Organizational
Behavior
Interpersonal Behavioral
Organizational Variables
Communication

Organizational Performance
Structure Human Appraisal
Behavior
Work
Design Jobs
Organizational
Design
 External Perspective
Understand behavior in terms of external
events, environmental forces, and behavioral
consequences.

Internal
Perspective
Understand behavior
in terms of thoughts,
feelings, past experiences,
and needs.
Explain behavior by
examining individuals’
history and personal value
System.

Explain behavior by examining surrounding

external events and environmental forces.

Both perspectives have produced motivational & leadership theories.

 Sociology
the science
of society
Psychology Engineering
the science the applied science
of human of energy & matter
behavior
Interdisciplinary
Anthropology
Influences on Medicine
the applied science
the science of the Organizational of healing or treating
learned behavior of diseases to enhance
human beings Behavior health and
well-being
Management
the study of overseeing
activities and supervising
people in organizations
Components of an Organization

Task – an organization’s mission, purpose, or goal for

existing
People – the human resources of the organization
Structure – the manner in which an organization’s work
is designed at the micro level; how departments,
divisions, and the overall organization are designed at
the macro level
Technology – the tools, knowledge, and/or techniques
used to transform inputs into outputs
Formal & Informal Elements of Organizations

Formal organization
(overt)
Goals and objectives
Policies and procedures
Job descriptions
Informal organization
(covert)
Financial resources
Beliefs and assumptions
Authority structure
Perceptions and attitudes
Communication channels
Values
Products and services
Feelings, such as fear, joy
anger, trust, and hope
Group norms
Informal leaders
Diversity of organizations
Global Competition in Business

Challenges to managers relating to change in organizations

 Globalization
 Technological Innovation
 Workplace Diversity
 Ethics and Character
 Industrial restructuring
 Increased amount and availability of information
 Need to attract and retain the best employees
 Need to understand human and cultural differences
 Rapid shortening of response times in all aspects of business
The World is Flat: nature of work
 Division of labour
 Assembly line
 Specialization
 Global
 Competitive
 Quality conscious
 Artificial Intelligence
 Evolving nature of work
The Big Focus
“ How the human mind works
or fails to work,
when it is forming judgement
and making decisions
Your mind needs to be in a constant state of defence against all this crap
that is trying to mislead you
”
Study List

 https://www.youtube.com/watch?v=MnvWxZhsvKA
 https://blog.capterra.com/what-is-organizational-behavior/
 https://www.youtube.com/watch?v=Yn1gjO9yw6I
(The science of timing)
 http://www.hrdp-
idrm.in/e5783/e17327/e28013/e28938/#:~:text=Environmental%2C%20organi
sational%20and%20job%20factors,health%20and%20safety%2Drelated%20behavi
our
 https://courses.lumenlearning.com/suny-orgbehavior/chapter/14-2-
organizational-structure/
 https://smallbusiness.chron.com/organizational-behavior-importance-
quality-management-17399.html
Organizational
Behaviour
Personality, Perception Attribution
Learning Outcomes

 Articulate key personality traits and explain how they influence behavior in
organizations.

 Discuss how personality theories may be applied in organizations.

What is personality?

This Photo by Unknown Author is licensed under CC BY-NC-ND

Why do we want to gauge it?

This Photo by Unknown Author is licensed under CC BY

 Personality
the stable set of characteristics which influence a person’s behaviour
The questions Jack Welch asked?
How he measured people

 ) Is he real?

 2) Does she see around corners?

 3) Who is around him?

 4) Does he get back on the horse?

 5) Is she pro-business?

 The internship
Interactional Psychology
Personality characteristics that
influence organisational behaviour
 Core Self Evaluations

 Locus of Control: who has control on my life

 Self Esteem: general feeling of self worth. Comfortable with own vulnerabilities

 Self efficacy: can I do this job

 Self Monitoring: Responding to situational cues

 Positive /Negative Affect: ability to focus on positives in self

Locus of Control

Internal External
I control what People and
happens to me! circumstances
control my fate!
Self efficacy

Beliefs and expectations about one’s ability to accomplish a specific task

effectively

Sources of self-efficacy
 Prior experiences and prior success
 Behavior models (observing success)
 Persuasion
 Assessment of current physical and emotional capabilities
Self Esteem
Self Monitoring: Behaviour based on cues

High self monitors Low self monitors

 flexible: adjust behavior  act from internal states
according to the situation rather than from
and the behavior of others situational cues
 can appear unpredictable  show consistency
and inconsistent
 less likely to respond to
work group norms or
supervisory feedback
Who is most likely to..

Low self High self

monitors monitors

Get promoted 

Change employers 

Make a job-related 
geographic move
The role of Affect

Positive Affect – an individual’s

tendency to accentuate the positive
aspects of oneself, other people, and
the world in general

Negative Affect – an individual’s

tendency to accentuate the negative
aspects of oneself, other people, and
the world in general
Personality Theories in Organisations
Personality Theories

https://www.khanacademy.org/test-prep/mcat/behavior#theories-personality
Personality tests
Preferences Represents

Extraversion Introversion How one

re-energizes
Sensing Intuiting How one gathers
information
Thinking Feeling How one makes
decisions
Judging Perceiving How one orients to the
outer world

https://blog.hubspot.com/marketing/personality-tests
Situational Tests
Projective test
Behavioural tests

 Behaviour is response to stimuli

 Behavioural tests typically check the employee’s response to situations
 A behavioral question aims at learning about your past “behaviors” in specific
work situations.

 https://www.inc.com/jeff-haden/9-most-common-behavioral-interview-
questions-and-a.html
 Https://www.monster.com/career-advice/article/best-free-career-
assessment-tools
Study list

 https://www.newyorker.com/magazine/2018/09/10/what-personality-tests-
really-deliverhttps://www.verywellmind.com/trait-theory-of-personality-
2795955
 https://psychcentral.com/lib/discovering-your-gifts-appreciating-differences-
therapeutic-use-of-psychological-type-and-the-mbti/
Perception
How we see self and world
FINISHED FILES ARE THE RESULT
OF YEARS OF SCIENTIFIC STUDY
COMBINED WITH THE
EXPERIENCE OF YEARS...
How we see ourselves?

How we see the world around us?

Perception Influencers

Perceiver Target Situation

• Bias • Appearance • Social context
• Mood • Communication • Culture
• Cognitive • Non verbal • Discounting
structure communication principle
• Self concept
Barriers to perception

 Selective perception
 First impressions
 Stereotype
 Projection
 Self fulfilling prophecy
Fun Fact
Synesthesia is a rare perceptual condition in which one sensory perception
triggers another—for example, music evokes colors or smells.

How quickly can you spot the

2’s in the picture to the right?

The task is effortless for “synesthetes,”

who perceive the 2’s as a different color
from the 5’s.
 Attribution
How we explain our and others behaviour
Internal and External

Internal attributions:
Attributing events to something within the individual’s control.

External attributions:
Attributing events to something outside the individual’s control.
Attribution biases

Fundamental Attribution Error – tendency to make attributions to internal

causes when focusing on someone else’s behavior

Self-Serving Bias – tendency to attribute one’s own successes to internal causes

and one’s failures to external causes
Attribution biases:
Fundamental Attribution Error
The fundamental attribution error (FAE) describes how,
when making judgments about people’s behavior, we
often overemphasize dispositional factors and downplay
situational ones. In other words, we believe that people’s
personality traits have more influence on their actions,
compared to the other factors over which they don’t have
control.
Man on the train

“I remember a mini-paradigm shift I experienced one Sunday morning on a subway in New York. People
were sitting quietly – some reading newspapers, some lost in thought, some resting with their eyes closed.
It was a calm, peaceful scene.
Then suddenly, a man and his children entered the subway car. The children were so loud and rambunctious
that instantly the whole climate changed.
The man sat down next to me and closed his eyes, apparently oblivious to the situation. The children were
yelling back and forth, throwing things, even grabbing people’s papers. It was very disturbing. And yet, the
man sitting next to me did nothing.
It was difficult not to feel irritated. I could not believe that he could be so insensitive as to let his children
run wild like that and do nothing about it, taking no responsibility at all. It was easy to see that everyone
else on the subway felt irritated, too. So finally, with what I felt like was unusual patience and restraint, I
turned to him and said, “Sir, your children are really disturbing a lot of people. I wonder if you couldn’t
control them a little more?”
Attribution biases:
Self serving bias
When we attribute positive events and successes to our own
character or actions, but blame negative results to
external factors unrelated to our character.
https://www.khanacademy.org/test-prep/mcat/individuals-and-society/perception-
prejudice-and-bias/v/attribution-theory-attribution-error-and-culture
What’s in a name…
 Researchers at MIT and the University of Chicago mailed 5000 résumés
to potential employers, using “white-sounding” and “black-sounding”
names
 Callback rates on identical résumés were substantially higher for
white-sounding names than for black-sounding names
 Conclusion: stereotypes and false attributions can lead to
discrimination in hiring.
Study list

 https://www.newyorker.com/magazine/2018/09/10/what-personality-tests-
really-deliverhttps://www.verywellmind.com/trait-theory-of-personality-
2795955
 https://psychcentral.com/lib/discovering-your-gifts-appreciating-differences-
therapeutic-use-of-psychological-type-and-the-mbti/
Organizational
Behaviour
Chapter 4
Learning Outcomes

ABC model of an attitude

How attitudes are formed

Attitudes at workplace

The characteristics of the source, target, and message that affect persuasion

Ethical behavior
Attitude
The favour or disfavour we express towards person, situation
What is an attitude

 Attitudes are the positive or negative evaluations made about people, issues,
or objects.
 For example, in an organizational setting, employees might hold attitudes
toward their employer or coworkers, toward workplace issues or regulations,
and toward the job itself.
 Beliefs provide the cognitive basis of an attitude.
The ABC model

• Affective component: this involves a person’s

feelings / emotions about the attitude object. For
example: “I am scared of spiders”.
• Behavioral (or conative) component: the way the
attitude we have influences how we act or behave.
For example: “I will avoid spiders and scream if I
see one”.
• Cognitive component: this involves a person’s
belief / knowledge about an attitude object. For
example: “I believe spiders are dangerous”.
How are attitudes formed?

 Directexperience:  Social learning:

Saas be kabhi bahu thi  Peer: social media
(mother in law was
once a daughter in law)  Culture

 Modeling
Attitudes at workplace
Organizational Citizenship

 Going above and beyond and giving their all

(Employees understand that their primary duty is to do the work that is assigned
to them, stay away from behaviors that could be deemed troublesome, and
deliver work that is acceptable and beneficial to the organization)

Why would people do that?

Is job satisfaction a part of it?
Workplace Deviance

 Dark side” behaviors is made up of voluntary behaviors that violate significant

organizational norms and in so doing threaten the well-being of an
organization, its members, or both
 Causes: personality characteristics such as neuroticism or low
conscientiousness, modeling others’ behavior, experiences of injustice,
uncertainty, lack of control or feelings of anger, frustration, and
dissatisfaction
Comparisons based on culture

 Korea: greater value on family and less on work for its own sake
 USA: work for its own sake
 China: service orientation
 India: Karma
 Examples?
Persuasion
Persuasion and attitude change
Ethics
Ethics in business
Factors effecting ethics

Cognitive moral
Values Locus of Control Machiavellianism
development

Rewards ,
Culture Manipulation punishment and
Internal self interest
Age
End justifies Expectation of
means others
Ethnicity
External What is right at
Life Personal gain
circumstances a universal level
Cognitive Moral Development
Kohlberg’s Model: stages of moral development
 Level 1: rules
 Stage 1:obeys rules to avoid punishment
 Stage 2: follows rules only if it is in self interest based on reward, punishment and
self interest
 Level 2: others
 Stage 3: expectation of others
 Stage 4: expectation of people close to them
 Level 3: the principles
 Stage 5: awareness of different value systems. Uphold own value system
 Stage 6: self selected ethical systems

Argument: Gilligan values differ for sexes

Organizational
Behaviour
Chapter 5
 Where we are

Sl.No Course Objectives

1 To familiarize students with the domain of organizational behaviour and relate its significance to
the broader field of management.
2 To familiarize students with individual aspects of organizational behaviour

3 To provide an understanding of personality, perception, learning, motivation and attitude

4 To provide an understanding of values, ethics, stress and well being

5 To familiarize students with interpersonal aspects of organizational behavior.

6 To provide an understanding of groups and teams in organizations, and decision making

7 To provide an understanding of conflict management

8 To familiarize students with macro and system-wide aspects of organizational behavior.

9 To provide an understanding of leadership, structure, culture and change

Learning Outcomes

 Define motivation and articulate different views on motivation

 Discuss how the needs for achievement, power, and affiliation influence an
individual’s behavior in the workplace.

 Describe the two-factor theory of motivation.

 Describe the role of inequity in motivation.

 Describe the expectancy theory of motivation.

 Describe the cultural differences in motivation.

 Motivation

the process of arousing and sustaining goal-directed behavior

Motivation

 Internal theories: the variable within the individual

 Example: Maslow’s hierarchy of needs
 Process theories: the interaction of the individual and the environment
 Example: Expectancy theory
 External theories: elements in environment and consequence of behaviour

*Any theory explains a small portion of behaviour, hence need to understand all
the aspects
Early Motivational Theorists

Max Weber: Protestant work ethic Adam Smith: people motivated by

self-interest for economic gain to
Sigmund Freud: person’s provide necessities of life.
organizational life founded on
compulsion to work and power of Frederick Taylor: scientific
love management; emphasized cooperation
between management and labor to
increase profit.
Internal Needs
Humans aspire
Maslow’s Need Hierarchy
McGregor’s Theory X and Y
McClelland’s Need Theory
Alderfer’s ERG Theory

Growth

Relatedness

Existence
Need Theories of Motivation
Two factor theory of motivation
Herzberg’s Two-Factor Theory
Hygiene Factor Motivation Factor

Both are work conditions, but

each addresses a different
part of an employee’s
experience
Motivation–Hygiene Theory of Motivation
Motivation factors
• Company policy and increase job satisfaction
administration
• Supervision
• Interpersonal relations
• Working conditions • Achievement
• Salary • Achievement recognition
• Status • Work itself
• Security • Responsibility
• Advancement
• Growth

Hygiene factors avoid • Salary?

job dissatisfaction
Critique of Herzberg

 A factor may not be exclusively motivation or hygiene (e.g., salary).

 Does not account for individual differences (age, sex, social status,
education).
 Does not account for intrinsic job factors.
 Supporting data comes from peculiar critical-incident technique.
Eustress, Strength, Hope

Eustress Positive Energy

Eustress  Individuals are activated by their
 healthy, normal stress own physical, emotional, mental
and spiritual energy, not by unmet
 Encourages optimism, hope and
health. needs.
 While things happen that are
out of our control, we can
control our response to them.  Stresses the role of energy
Role of inequity in motivation.
Social Exchange & Equity Theory

Equity theory – concerned with social processes that influence motivation and behavior.
Individual–Organizational Exchange
Adam’s Theory of Inequity
Equity and Inequity at Work
Strategies for Resolution of Inequity

 Alter the person’s outcomes

 Alter the person’s inputs
 Alter the comparison other’s outputs
 Alter the comparison other’s inputs
 Change who is used as a comparison other
 Rationalize the inequity
 Leave the organizational situation
Expectancy theory of motivation.
 Expectancy Theory

Explains motivation in terms of an individual’s perception of the

performance process.

Two Basic Notions of Expectancy Theory

People expect certain outcomes of behavior and performance.

People believe that the effort they put forth is related to the performance

they achieve and the outcomes they receive.

Key Constructs of Expectancy Theory

Valence – value or importance placed on a particular reward

Expectancy – belief that effort leads to performance

Instrumentality – belief that performance is related to rewards

Expectancy Model of Motivation
3 Causes of Motivational Problems

 Belief that effort will not result in performance

 Belief that performance will not result in rewards
 The value a person places on, or the preference a person has for, certain
rewards
 Moral Maturity

Morally mature people

behave and act based on
universal ethical principles.

Morally immature people

behave and act based on
egocentric motivations.

the measure of a person’s cognitive moral development

Daniel Pink
Cultural differences in motivation.
Social motives in the Indian Context

 Social achievement motivation : a desire for

some kind of collective success in relation to
some standards of excellence
 Extension motivation : concern for the well
being and development of others
 The Pioneering –Innovative motive (PI): the need
to accomplish something which is uniquely path-
breaking (pioneering ) and the need to bring
about change
Cultural Differences

Most motivation theories in use today have

been developed by and about Americans.

These theories may not deal adequately with cultural differences.

Organizational
Behaviour
Chapter 6
Learning Outcome

 Describe behavioral theories of learning.

 Explain how goal-setting can be used to direct learning and performance.

 Define performance and identify the tools used to measure it.

 Explain the importance of performance feedback and how it can be delivered

effectively.

 Identify ways managers can reward performance.

 List several strategies for correcting poor performance

Learning
a change in behavior acquired through experience
The neuroscience of learning
Theories of Learning

• Conditioning
Behaviourist • Active interaction with environment

• Observation
Social • Learning need not change behaviour

• Learning based on type

Cognitive • Internal mental processes have a
bearing
How do we learn: Conditioning

Classical Conditioning – Modifying Operant Conditioning – Modifying

behavior so that a conditioned behavior through the use of positive or
stimulus is paired with an negative consequences following
unconditioned stimulus and elicits specific behaviors
an unconditioned response
Ex: Pavlov’s experiment
Reinforcement, Punishment, and
Extinction

 Reinforcement – cultivates
desirable behavior by bestowing
positive consequences or
withholding negative ones.

 Punishment – discourages
undesirable behavior through
negative consequences, or
withholding positive
consequences.

 Extinction – weakens behavior by

attaching no consequences to it.
How do we learn: Bandura’s social learning theory

Task-Specific Self-Efficacy –
an individual’s internal expectancy to perform a
specific task effectively.

Prior experiences Persuasion from others

Assessment of physical Behavior models

and emotional capabilities
How do we learn: Cognitive Theory

The theory is credited to educationist

Jean Piaget.

Derives from Gestalt theory of

perception

Knowledge is actively constructed based

on their existing cognitive structures

People mentally process the information

they receive
Organisational Behaviour Modification (OBM)
Goal setting
A tool to direct learning and performance
Goals

Management by Objectives
Advantages

 Increase motivation and task performance

 Reduce role stress
 Improve performance management
Performance Management
Defining, measuring, appraising and improving performance
Advantages

 Provides feedback to employees

 Identifies employees’ developmental needs
 Decides promotions and rewards
 Decides demotions and terminations
 Develops information about the organization’s selection and placement
decisions
Types

 Appraisals
 Bell Curve
 360 Degrees
 Reward and Recognition
 Coaching , counselling and mentoring
Challenges
Correcting poor performance

Identify primary cause or responsibility

Determine problem’s source

Develop corrective plan of action

Kelley’s Attribution Theory

Explains how individuals pinpoint the causes of their own and others’
behavior

Consensus – the extent to which peers in the same situation behave the
same way
Distinctiveness – the degree to which the person behaves the same way in
other situations
Consistency – the frequency of a particular behavior over time
Information cues and attribution
Information cues and attribution
Attribution Model
Mentoring
Work relationships to enhance performanace
Stages in mentoring
Questions?
Organizational
Behaviour
Chapter 9
Learning outcomes

Explain the benefits organizations and individuals derive from working in teams.

Identify the factors that influence group behavior.

Describe how groups form and develop.

Explain how task and maintenance functions influence group performance.

Discuss the factors that influence group effectiveness.

Describe how empowerment relates to self-managed teams.

Explain the importance of upper echelons and top management teams.

Why teams

 Good for work that is complicated, complex, interrelated and/or

more voluminous than one person can handle
 Overcomes individual limitations.
 For Organizations: Encourages collaboration
 For Individuals:
 Psychological intimacy
 Integrated involvement
Groups vs work teams

This Photo by Unknown Author is licensed under CC BY-SA-NC

Group Behaviour

 Norms of Behavior – the standards that a work group uses to evaluate

the behavior of its members
 Group Cohesion – the “interpersonal glue” that makes members of a
group stick together
 Social Loafing – the failure of a group member to contribute personal
time, effort, thoughts, or other resources to the group
 Loss of Individuality – a social process in which group members lose
self-awareness and its accompanying sense of accountability,
inhibition, and responsibility for individual behavior
How groups form
Group Formation

Formal Groups – Informal Groups –

official or assigned groups that evolve in
groups gathered to the work setting to
perform various tasks meet need not met
by formal groups.

In both, ethnic, gender, cultural and

interpersonal diversity is critical
Tuckman’s stages of group development model

Bruce Tuckman
Groups do not progress linearly from one step to the next, but alternate
between periods of inertia and bursts of energy.
Group Cohesion
 Interpersonal attraction binding group members
together; enables groups to exercise effective
control over the members
 Groups with high cohesion:
 demonstrate lower tension and anxiety
 demonstrate less variation in productivity
 demonstrate better member satisfaction,
commitment, and communication
Project Aristotle
the whole is greater than the sum of its parts

By Iulian Olariu
Upper Echelons: Teams at the Top
Self-managed teams at the top-level of an organization

Their background characteristics predict

organizational characteristics

Set standards for values, competence, ethics,

and unique characteristics in the organization

Key to the strategic success of the organization

5 Seasons of CEO Tenure

 Response to a mandate
 Experimentation
 Selection of an enduring theme
 Convergence
 Dysfunction
Executive Tenure and Organizational Performance
Diversity at top
Out of dissimilarity, strength is built
Multicultural Top Teams

Diversity may increase uncertainty,

complexity, and inherent confusion in
group processes.

Culturally diverse groups may

generate more and better ideas,
and limit groupthink.
Decisions
Theories: Rational
Are we in control of our decisions?
Power
Types of power

 Reward Power
 Coercive power
 Legitimate power
 Referent power
 Expert power

By French and Raven

Control leads to compliance, autonomy leads to engagement

Leader vs manager
Emotional Intelligence
Conflict and Negotiation
Functional vs Dysfunctional conflict

Positives Negatives
 Stimulates creativity  Diverts energy from work
 Motivates change  Wastes resources
 Helps individuals and groups  Creates politics
establish identities
 Threatens psychological well being
 A safety valve to indicate problem
Causes

Structural Factors  Personal factors

 Specialization  Skills and abilities
 Interdependence  Personalities
 Common resources  Perceptions
 Goal differences  Emotions
 Authority relationships  Communication barriers
 Jurisdictional ambiguities  Cultural differences
Conflict Management
Organizational
Behaviour
Chapter 10
Learning Outcomes

 Identify the steps in the decision-making process.

 Describe various models of decision making.

 Discuss the individual influences that affect decision making.

 Explain how groups make decisions.

 Describe the role culture plays in decision making.

 Explain how organizations can improve the quality of decisions through participation.
 Types of Decisions

Programmed Decision

a simple, routine matter for

which a manager has an
established decision rule

Nonprogrammed Decision

a new, complex decision that

requires a creative solution
Decision making process
Models of decision making
The classic economic theory: Rationality

A logical, step-by-step approach to decision making, with a thorough analysis of

alternatives and their consequences
 The outcome will be completely rational
 The decision maker uses a consistent system of preferences to choose the
best alternative
 The decision maker is aware of all alternatives
 The decision maker can calculate the probability of success for each
alternative
Are we in control of our decisions?
Bounded Rationality

Formulated by Herbert Simon. He as awarded the Nobel Prize for it in 1978

 Assumes that managers satisfice – select the first alternative that is “good
enough”
 Assumes that managers develop heuristics, short cuts, to make decisions in
order to make decisions to save mental activity.
 Bounded Rationality

A theory that suggests that there are constraints that force a decision maker to be less than
completely rational

 Managers select the first alternative that is satisfactory

 Managers recognize that their conception of the world is simple

 Managers are comfortable making decisions without determining all the alternatives

 Managers make decisions by rules of thumb or heuristics

Interesting fact Solutions

Choice
Problems opportunities
Participants

Garbage Can Model

a theory that contends that decisions in
organizations are random and unsystematic
Z Problem-Solving Model By Briggs Myers
Escalation of Commitment

What are some of the decisions

which should have been stopped or
reversed?
Escalation of Commitment

The tendency to continue to commit resources to a failing course of action

 Why it occurs
 people dislike inconsistency
 overly optimistic
 illusion of control
 sunk costs
 How to deal with it
 split responsibility for decisions
 closely monitor decision makers
 provide individuals with a graceful exit
 have groups make the initial decision
Individual
Discuss the individual influences that affect decision making
Individual influences

 Cognitive style: an individual’s preference for gathering information and

evaluating alternatives
 Personality, Attitude and values
 Intuition
 Creativity
Risk and the Manager

 Many decisions involve some element of risk.

 Individuals differ in terms of risk aversion.
 Risk aversion is determined by individual tendencies and organizational
factors.
 To encourage risk taking, must view failure as “enlightened trial and error.”
Intuition and business success

 A survey of 13,000 business executives revealed:

 Executives credited 80 percent of their business success to relying on their
intuition.
What is intuition?
Influences on Creativity
 Individual:
 Cognitive Processes
 Divergent Thinking
 Associational Abilities Creative performance is
 Unconscious Processes highest when there is a
 Personality Factors match or fit between the
 breadth of interests individual and
 high energy organizational influences.
 self-confidence
 Organizational:
 Flexible organization structure
 Participative decision making
 Quality, supportive relationships with supervisors
Be Creative: answer why?

 Employees’ productivity declines sharply the day after the cricket match.
 Your organization has been in deficit for three consecutive quarters. Where
do you make cuts in the budget?
 You learn that the company can no longer afford to provide lunch to
employees. How would you maintain morale?
Design Thinking
Group decisions
Explain how groups make decisions
Group Decision Making

 Synergy – occurs when group members stimulate new solutions to problems

through the process of mutual influence and encouragement within the group.
 Social decision schemes – simple rules used to determine final group
decisions Ex: elections

Truth Wins Majority Wins

Two-thirds Majority
First-shift
Group Decision Making
1. more knowledge through pooling of group
resources
Advantages 2. increased acceptance and commitment due
to voice in decisions
3. greater understanding due to
involvement in decision stages

1. pressure in groups to conform

Disadvantages 2. domination by one forceful member or
dominant clique
3. amount of time required, because group is
slower than individual to make a decision
Limits of Group Decision Making

Groupthink – a deterioration of mental efficiency, reality testing, and moral

judgment resulting from in-group pressures

Group Polarization – the tendency for group discussion to produce shifts toward
more extreme attitudes among members
Preventing Groupthink

 Ask each group member to act as critical evaluator

 Have the leader avoid stating his opinion prior to the group decision
 Create several groups to work simultaneously
 Appoint a devil’s advocate
 Evaluate the competition carefully
 After consensus, encourage rethinking the position
Group Decision Techniques
Dialectical
Self-Managed Inquiry
Teams

Brainstorming
Nominal
Group
Technique
Delphi
Technique

Quality Circles
and Quality Teams
Devil’s Advocacy
Culture in decision making
Describe the role culture plays in decision making.
Hofstede’s Dimensions

 Styles of decision making vary by

culture

 Many of Hofstede’s dimensions have

implication for how people deploy
the decision-making process
Decisions in Japan

“Teamwork” and “Collaboration” look much different in Japan than in the United
States. In Japanese firms, workers (especially lower level) tend to remain silent
during meetings, avoid sitting next to upper management, and rigorously avoid
using their boss’ first name. Upper management, meanwhile, steer clears of
direct feedback or delivering the “hard truth.” At all levels, harmony and
restraint, rather than independence and risk-taking, are prized values.
Decision making in virtual world
Participative decisions
Explain how organizations can improve the quality of decisions through
participation.
Participative decision making

Occurs when individuals who are affected

by decisions influence decision-making

Organizational Individual
Foundation Foundation

Supportive organizational culture People must be psychologically equipped

Team-oriented work design Motivation to act autonomously
Employees must be able to see benefit
Decision Ethics check?

 Is it legal?
 Does it violate law
 Does it violate company policy
 Is it balanced?
 Is it fair to all
 Does it promote win–win relationships
 How will it make me feel about myself?
Organizational
Behaviour
Chapter 12
 Leadership and Followership

1.Leadership and management

Explain the role of trait theory in describing leaders

Behavioral research in the development of leadership theories

Describe and compare the four contingency theories of leadership.

The recent developments in leadership theory of inspirational leadership

How issues of emotional intelligence, trust, gender, and servant leadership are informing
today’s leadership models.

Define followership and identify different types of followers.

Types of power

 Reward Power
 Coercive power
 Legitimate power
 Referent power
 Expert power

By French and Raven

Control leads to compliance, autonomy leads to engagement

Leaders and Managers
Discuss the differences between leadership and management and
between leaders and managers.
Leadership and Followership

 Leadership – the process of guiding and directing the behavior of

people in the work environment
 Formal leadership – the officially sanctioned leadership based on the
authority of a formal position
 Informal leadership – the unofficial leadership accorded to a person by
other members of the organization
 Followership – the process of being guided and directed by a leader in
the work environment
Management and Leadership

Management Leadership
 Planning and budgeting  Setting a direction for the
organization
 Organizing and staffing
 Aligning people with that direction
 Controlling and problem solving
 Motivating
people
Leaders and Managers
Leader vs manager
Leadership Theories
Research on the development of leaders
Early Trait Theories

 Distinguished leaders by
 Physical attributes
 Personality characteristics
 Originality, adaptability, integrity, confidence etc
 Abilities (speech fluency, social skills, insight)
Behaviour based studies
These became the foundation of many current leadership theories
Lewin studies

 Autocratic Style – the leader uses strong, directive, controlling

actions to enforce the rules, regulations, activities, and relationships;
followers have little discretionary influence
 Democratic Style – the leader takes collaborative, reciprocal,
interactive actions with followers; followers have high degree of
discretionary influence
 Laissez-Faire Style – the leader fails to accept the responsibilities of
the position; creates chaos in the work environment

 Situation was discounted. Leaders behaved similarly in all situation

Ohio State Studies
 Michigan University

Production oriented Employee-Oriented Leader

 Focus – getting things done  Focus – relationships
 Uses direct, close  Less direct, close supervision
supervision
 Fewer written or unwritten rules
 Many written or unwritten
 Displays concern for people and
rules
their needs

2 things came out as common: leaders with focus on task and/or focus on people
Leadership Grid
High

 Robert Blake and Jane Mouton Leadership Grid

Concern for People

– an approach to understanding a leader’s or
manager’s concern for results (production) and
concern for people
 Organization Man (5,5) – a middle-of-the-road
leader
 Authority Compliance Manager (9,1) – a leader
who emphasizes efficient production
 Country Club Manager (1,9) – a leader who Low High
creates a happy, comfortable work environment Concern for Production
 Team Manager (9,9) – a leader who builds a highly
productive team of committed people
Contingencies theories
Based on situation
Fiedler’s Contingency Theory

Fit between leader’s need structure and favorableness of leader’s situation

determine the team’s effectiveness.

 Least Preferred Coworker (LPC) – the person a leader has least prefers to
work with
 High LPC – leaders who describe LPC in positive terms
 Low LPC – leaders who describe LPC in negative terms
Situation Favorableness
Three elements to leader’s situation:

Task structure
Position power
Leader-member relations

Favorable leadership situation – structured task for the work group, strong
position power for leader, good leader-member relations

Unfavorable leadership situation – unstructured task, weak position power

for leader, poor leader-member relations.
Path–Goal Theory of Leadership

Leader behavior styles

Follower path Follower goals
• Directive
perceptions • Satisfaction
• Supportive
Effort–Performance– • Rewards
• Participative
Reward linkages • Benefits
• Achievement oriented

Follower Workplace
Characteristics characteristics
• Ability level • Task structure
• Authoritarianism • Work group
• Locus of control • Authority system
Vroom-Yetton-Jago Normative Decision Model
Decide

Manager
should use Consult individually
the decision
method most
appropriate Consult group
for a given
situation
Facilitate

Delegate
Recent theories
Leader-Member Exchange
Inspirational Leadership Theories
 Transformational Leadership
 Charismatic Leadership
 Authentic Leadership
Indian Research: The Nurturant Task Leader

 A preference for an authoritative instead of the traditional authoritarian

leader
 A high task /high relationship oriented leadership style
 Strict and demanding but caring and nurturing too

 (Source :Sinha.J.B.P.(1980)The Nurturant Task Leader,Concept,New Delhi)

Emerging issues
Emotional Intelligence, trust, gender, servant, abusive
Emotional Intelligence: the new gauge
Trust and its role in leadership
Gender

 Indian women ‘s visibility in banking sector

 54% of the women CEOs are in financial services( executive search firm EMA
Partners).
 In private and foreign banks, women almost outnumber men
Servant leader
Followers
Passive or active
Types of followers
ORGANIZATIONAL
STRUCTURE
Chapter 15
Learning Outcomes
1. Define differentiation and integration as organizational design
processes.
2. Discuss the basic design dimensions managers must consider in
structuring an organization.
3. Describe five structural configurations for organizations.
4. Describe four contextual variables that influence organizational
structure.
5. Explain the forces reshaping organizations.
6. Identify and describe emerging organizational structures.
7. Identify factors that can adversely affect organizational
structure.
1

LEARNING OBJECTIVE
Define differentiation and integration as organizational design processes.
Organizational Design

the process of constructing and adjusting an

organization’s structure to achieve its goals.

the linking of departments within an organization

Differentiation and Integration

Differentiation: The process of deciding how

to divide the work in an organization

Integration: The process of coordinating the

different parts of an organization
Differentiation

Horizontal differentiation: Vertical differentiation: The

Degree of differentiation difference in authority and
between organizational responsibility in the
subunits organizational hierarchy

Spatial differentiation:
Geographic dispersion of
an organization’s
offices,plants and personnel
Integration

Vertical integration
•Hierarchical referral
•Rules and procedures
•Plans and schedules
•Positions added to the Horizontal differentiation
organization structure •Liaison roles
•Management information systems •Task forces
•Integrator positions
•Teams
2

LEARNING OBJECTIVE
Discuss the basic design dimensions managers must consider in structuring an organization.
Structural Dimensions

◦ Formalization: the degree to which the organization has official rules, regulations, and
procedures
◦ Centralization: the degree to which decisions are made at the top of the organization
◦ Specialization: the degree to which jobs are narrowly defined and depend on unique
expertise
◦ Standardization: the degree to which work activities are accomplished in a routine
fashion
◦ Complexity: the degree to which many different types of activities occur in the
organization
◦ Hierarchy of Authority: the degree of vertical differentiation across levels of
management
Importance based
1.How many tasks and how specialized?
2.How standardized?
3.What skills are required?
4.Basis for grouping of positions?
5.How large should each unit be?
6.How much standardization?
7.What mechanisms to help individuals?
8.How centralized?
 Structural Configuration
• Simple Structure – a centralized form of organization that
emphasizes the upper echelon and direct supervision
• Machine Bureaucracy – a moderately decentralized form
of organization that emphasizes the technical staff and
standardization of work processes
• Professional Bureaucracy – a decentralized form of
organization that emphasizes the operating level and
standardization of skills
• Divisional Form – a moderately decentralized form of
organization that emphasizes the middle level and
standardization of outputs
• Adhocracy – a selectively decentralized form of
organization that emphasizes the support staff and mutual
adjustment among people SOURCE: From H. Mintzberg, The Structuring of Organizations, © 1979, 20.
Reprinted by permission of Pearson Education, Inc., Upper Saddle River, N.J.
Differences in structural configuration
4

LEARNING OBJECTIVE
Describe four contextual variables that influence organizational structure.
 Size Technology

Contextual Variables –
a set of characteristics that
influences the organization’s
design processes

Strategy
Environment
and Goals
Reorganization
◦ Organizational life cycles
◦ Globalization
◦ Changes in Information-Processing Technologies
◦ Demands on Organizational Processes
Symptoms of structural weakness
◦ Delay in decision making
◦ Poor quality decision making
◦ Lack of innovative response to changing environment
◦ High level of conflict
Emerging structures
◦ Network organizations – web-like structures that contract some or
all operations to other organizations, then coordinate activities.

◦ Virtual organizations – temporary networks of organizations

consisting of independent enterprises.

◦ Circle organizations – open system, organic structure for

customer responsiveness