Introduction To The Field of Organisational Behaviour: C H A P T E R

C H A P T E R 1
Introduction to
the field of
organisational
behaviour
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
• Organizational behavior
Introduction
(OB) is the study of what
people think, feel and do in
and around organizations.
• It looks at employee behavior,

decisions, perceptions and
emotional responses.
• It examines how individuals

and teams in organizations
relate to each other and to
their counterparts in other
organizations.
2
Introduction • OB also encompasses the study
of how organizations interact
with their external
environments, particularly in
the context of employee behavior
and decisions.
• OB researchers systematically
study these topics at multiple
levels of analysis, namely, the
individual, team (including
interpersonal) and
organization levels.
3
Definition and Concept of
organization
 Formally defined, an
organisation is a social
system of people who are
structured and meet a
specified goals.
 Organization: Group of
people who work
interdependently towards
some purpose
4
organization
• Business is a social system that the
society has created to fulfil its needs and
wants.
• It is the social system that decides on how

to conduct business at a macro level.
• Though business is an economic entity,

the social system provides sanctity to it.
• Society gives freedom for conducting

business. This creates competition which
leads to increased quality at reduced costs
and the society’s needs are better fulfilled.
5
Definition and Concept of Organization
• When the organizations are

large, work needs to be done
systematically. This is done by
creating a structure that groups
similar work.
• Organisational structure
determines the relationship
between the functions and
positions.
• Structure sub-divides roles,
responsibilities and authority to
(Contd…)
carry out tasks.
Definition and Concept of Organization
• Businesses are designed to go on forever, though they die

because its structure or system is not cared for. This concept
is called ‘ongoing’.
• An organization is considered to be an Open system which
gets affected by external factors.
• As the organizations grow, it becomes increasingly complex
and managers and leaders are trained to manage the
complexity.
• Organisations are on-going and open systems that are affected
by external environment.
7
Organization
• All organisations, whether big or small, has a goal.
• Goals may be implicit or well expressed in organisations.
• Goals are expressed by organisations through their Vision and
Mission.
(Contd…)
8
8
Organization Process – Vision & Mission
Vision Statement:
 A corporate vision statement sets a dynamic
and compelling view of the corporation at
some point in the future.
 It is an emotional driver to some “big idea” or
challenge that drives those in the corporation
toward it.
 It is not intended for those outside the
company.
 It is not a goal, as they should be SMART
(specific, measurable, achievable, results-
focused, and time- bound) but rather it can be
a wild, crazy, and even unattainable idea, as
long as it provides a deeply emotional drive to
accomplish something great that those in the
organization can get behind and drive toward
9
9
Vision Statement Examples :
Avon: "To be the company that best

understands and satisfies the product,
service and self-fulfillment needs of
women - globally."
Alzheimer's Association: "Our Vision

is a world without Alzheimer's disease.
(Contd…)
10
10
Mission Statement:
A corporate mission statement defines
what the corporation does, who it serves,
and how it serves (creates value for) its
clients.
It is designed to provide clarity of focus

and direction for those in the company
and answers the questions of who we
serve and how.
It also creates clarity of value for those

outside the company and answers the
question of whether this company can be
of value to me and/or my company.
(Contd…)
.
11
11
Mission Statement
Erie Insurance: "To provide our policyholders with as
near perfect protection, as near perfect service as is
humanly possible and to do so at the lowest possible
cost."
NatureAir: “ To offer travelers a reliable, innovative and
fun airline to travel in Central America.“
Nissan: "Nissan provides unique and innovative

automotive products and services that deliver superior,
measurable values to all stakeholders in alliance with
Renault.“
Google's mission: is to organize the world's information
and make it universally accessible and useful.
12
What are organisations?
Groups of people who work
interdependently toward
some purpose
 structured patterns of
interaction
 coordinated tasks
 work toward some
purpose
13
Why study organisational behaviour?
Understand
organisational
events
Organisational
behaviour
research
Influence Predict
organisational organisational
events events
14
Trends: globalisation
 Global companies
 extend their activities
to other parts of the
world
 actively participate in
other markets
 compete against firms
in other countries
15
Trends: globalisation
 Implications of
globalisation
 new organisational
structures
 different forms of
communication
 more competition, change,
mergers, downsizing, stress
 need more sensitivity to
cultural differences
16
Trends: changing workforce
 Primary and secondary diversity
 More women in workforce and professions
 Different needs of Gen-X, Gen-Y and baby-boomers
 Diversity has advantages, but firms need to adjust
through
 cultural awareness
 family-friendly policies
 empowerment
17
Trends: employment relationship
 Employability
 employees perform many tasks, not a specific job
 Casual work
 no explicit or implicit contract for long-term
employment
 Telecommuting
 working from home, usually with a computer
connection to the office
 Virtual teams
 operate across space, time and organisational
boundaries; mainly communicate through electronic
technologies
18
Trends: information technology
 Affects how employees interact
 virtual teams
 telecommuting
 Affects how organisations are configured

 network structures  alliance of several
organisations
19
Trends: values and ethics
 Values
 stable, long-lasting beliefs about what is important
 personal, cultural, organisational, professional
 Importance of values
 globalisation  more awareness of different values
 values replacing command and control
 more emphasis on ethical business conduct
 Ethics
 moral principles/values  determine whether actions
are right/wrong and outcomes are good/bad
20
Organisational behaviour anchors
Multidisciplinary
anchor
Systematic
Open systems Organisational research
anchor
behaviour anchor
anchors
Multiple levels
Contingency
of analysis
anchor
anchor
21
1. Open systems anchor of OB
Feedback Feedback
Subsystem Subsystem
Inputs Organisation Outputs
Subsystem Subsystem
22
2. Multidisciplinary
anchor
Traditional Disciplines
Psychology: Drives, perception, attitudes, personality, job stress,

Emotions, leadership.
Sociology: Team dynamics, roles, socialization, communication

patterns, organizational power .
Anthropology: Corporate culture, organizational rituals, cross cultural

dynamics, Organization adaptation.
Political Science: Inter group conflict, coalition formation ,

organizational power and politics, decision making
23
2. Multidisciplinary
anchor
Modern Disciplines
Communication : Knowledge management, electronic mail, corporate

culture, Employee socialization.
Information Systems: Team dynamics, Decision making, knowledge

management.
Marketing: Knowledge management, creativity, decision making.
Women’s studies: Organizational power, perceptions.
24
3. The systematic Research Anchor
Typically this approach relies upon quantitative data

and statistical procedures to test hypothesis.
This dynamic and cyclical view of the research

process also allows for observation, participation and
other qualitative methods in the data collection
process, rather than just quantitative data collection.
25
4. Contingency anchor
• This Anchor States that a particular action may have

different consequences in different situations.
• In other words no single situations is best in all

circumstances.
26
5. The multiple levels of Analysis Anchor
This comprises of three levels of analysis.
Individual
Team
Organization
Individual
The individual level includes the characteristics and
behavior of employees as well as the thought processes
that are attributed to them such as motivation ,perceptions,
personalities , attitudes and values.
27
5. The multiple levels of Analysis Anchor
Team level
The team level of analysis looks at the way people
interact. This includes team dynamics, Decisions,
power, organizational politics, conflict, leadership.
Organization :
At the organizational level we focus on how people
structure their working relationships and on how
organization interact with their environments.
28
Knowledge management defined
"Knowledge management is a discipline that
promotes an integrated approach to identifying,
capturing, evaluating, retrieving, and sharing all of an
enterprise's information assets. These assets may
include databases, documents, policies, procedures,
and previously un-captured expertise and experience
in individual workers."
29
Knowledge management defined
Any structured activity that improves an
organisation’s capacity to acquire, share and use
knowledge for its survival and success.
Knowledge management efforts typically focus on

organizational objectives such as improved
performance, competitive advantage,
innovation, the sharing of lessons learned,
integration and continuous improvement of the
organization.
30
Intellectual capital
 Human capital
 knowledge that employees possess and generate
 Structural capital
 knowledge captured in systems and structures
 Relationship capital
 value derived from satisfied customers, reliable
suppliers and others
31
Knowledge mgt at Billabong
Billabong, the
Queensland-based surf
wear company, practises
knowledge acquisition by
employing people who
live that lifestyle. Courtesy of Billabong
32
Knowledge management processes
 Knowledge acquisition
 grafting
 learning
 experimentation
 Knowledge sharing
 communication
 communities of practice
 Knowledge use Courtesy of Billabong
 awareness
 freedom to apply
knowledge
33
Organisational memory
 The storage and preservation of intellectual
capital
 Retain intellectual capital by
 keeping knowledgeable employees
 transferring knowledge to others
 transferring human capital to structural capital
34
Individual behaviour and
learning in organisations
35
Customer service at Singapore Air
Singapore Airlines provides

exceptional customer service
by paying attention to the
four drivers of individual
behaviour and performance:
motivation, ability, role Courtesy of Singapore Airlines
perceptions and situational

factors (MARS).
36
Cleaner
Security
Elecritian Assistant
37
Marketing professional
Production professional Sales professional
HR Professionals
R &D professional
38
MARS model of behaviour and performance
Role
perceptions
Motivation
Individual
behaviour and
performance
Ability
Situational
factors
39
Employee motivation
Internal forces that affect a person’s voluntary
choice of behaviour
 direction
 intensity
 persistence
R
M
BAR
A S
40
Employee ability
Natural aptitudes and learned capabilities required to
successfully complete a task
 competencies  personal characteristics that lead to
superior performance
 person  job matching
› select qualified people
› develop employee
abilities through training
› redesign job to fit R
person's existing abilities M
BAR
A S
41
Employee role perceptions
Beliefs about what behaviour is required to achieve
the desired results:
 understanding what tasks to perform
 understanding relative importance of tasks
 understanding preferred behaviours to accomplish
tasks
R
M
BAR
A S
42
Situational factors
Environmental conditions beyond the individual’s
short-term control that constrain or facilitate
behaviour
 time
 people
 budget
 work facilities
R
M
BAR
A S
43
Types of Individual Behavior
Goal-directed behaviors under

Task Performance
person’s control
Organizational Performance beyond the required job

Citizenship duties
Types of Behavior in Organizations (con’t)
Counterproductive Voluntary behavior that potentially

Work Behaviors harms the organization
Joining/staying with Goal-directed behaviors under

the Organization person’s control
Maintaining Work
Attending work at required times
Attendance
Definition of learning
A relatively permanent change in behaviour
(or behaviour tendency) that occurs as a
result of a person’s interaction with the
environment
46
Behaviour modification
 We ‘operate’ on the environment
 alter behaviour to maximise positive consequences
and minimise adverse consequences
 Operant versus respondent behaviours
 Law of effect
 likelihood that an operant behaviour will be repeated
depends on its consequences
47
A-B-Cs of behaviour modification
Antecedents Behaviour Consequences
What happens What person What happens

before behaviour says or does after behaviour
Example
Employee Employee
Attendance
attends receives
bonus system
scheduled attendance
is announced
work bonus
48
Behaviour modification limitations
 Can’t reinforce non-observable behaviour
 Reinforcer tends to wear off
 Variable ratio schedule is a form of gambling
 Ethical concerns about perceived manipulation
49
Learning through feedback
 Any information about consequences of our
behaviour
 Clarifies role perceptions
 Corrective feedback improves ability
 Positive feedback motivates future behaviour
50
Multi-source (360 degree) feedback
Supervisor
Project
Customer
leader
Co-worker
Evaluated Co-worker
employee
Subordinate Subordinate
Subordinate
51
Giving feedback effectively
Specific
Relevant Effective Frequent

feedback
Credible Timely
52
Values defined
 Stable, long-lasting beliefs

about what is important
 Define right or wrong,
good or bad
 Include cross-cultural,
ethical and organisational
culture values
Courtesy of The Warehouse
53
Values
Types of Values –- Rokeach
Value Survey
Values in
the
Rokeach
Survey
EXHIBIT 3-1a
Values in
the
Rokeach
Survey
(cont’d)
EXHIBIT 3-1b
Dominant Work Values in
Today’s Workforce
Importance of values at work
 Globalisation
 increasing awareness of, and sensitivity to, different
values across cultures
 Replacing direct supervision

 potentially aligns employees’ decisions and actions
with corporate goals
 Demand for ethical practices

 increasing pressure to engage in ethical practices
60
Personality & Perception
61
Introduction
 The term 'personality' means different things to different
people.
 To common man, it means external appearances and behavior,

to psychologist, it means the inner awareness of self as a
permanent organizing force, to manager, it denotes the
measurable traits, both inner and outer which can predict the
performance in an organization.
62
Introduction
 Perception is the way of seeing and interpreting things.

 For example- A supervisor may try to help his subordinates to
achieve their target by advising and suggesting solutions. An
employee may believe the supervisor is controlling and
interfering.
 Both personality and perception affect individual behavior and
in turn the group and organizational behavior.
63
Personality Definition
 Personality is defined as a dynamic and organized set of

characteristics possessed by a person which uniquely
influences his/her knowledge, motivation and behavior in
various situations.
 Personality refers to those characteristics of the person that

account for consistent patterns of feelings, thinking and
behaving.
 In other words, personality is the set of psychological traits

and mechanisms within the individual that are organized and
relatively enduring and that influence his/her interactions
with and adaptations to physical and social environments and
his/her own psyche
64
Personality and its Determinants
Following are the factors that

determine personality
development:
 Heredity: Traits like physique,
eye colour, hair colour, height,
temperament, energy level,
intelligence, reflexes, etc. are
generally referred to describe
the influence of heredity in
developing personality.
65
Environment: Environment
comprises of culture, family, social
and situational factors. The
environmental factors influence
the personality of an individual
since they provide the basis for
certain experiences that
determine an individual’s view
about life, both positive and
negative
66
• Culture: Culture establishes
norms, attitudes and values that
are passed on from generation
to generation and create
consistencies over time.
• Family: Families influence the

behavior of a person especially
in the early stages of life.
67
• Situation: Every individual goes
through different types of experiences
and events in his/her life such experience
can serve as important determinants of
his/her personality.
• Social factors: Socialization starts with

immediate family – father, mother,
brothers, sisters and close relatives or
friends, then the social group such as
peers, school friends and members of the
work group play influential roles.
68
Personality Traits
 Cattell’s 16 Personality Factor Model (16 PF)
 Warmth: Warm, outgoing, attentive to others, kind, easy
going, participating, likes people on the high range as against
impersonal, distant, cool, reserved, impersonal, detached,
formal or aloof.
 Reasoning: Abstract-thinking, more intelligent, bright,
higher general mental capacity, fast learner.
 Emotional stability: Emotionally stable, adaptive, mature,
faces reality, calm.
 Dominance: Dominant, forceful, assertive, aggressive,
competitive, stubborn, bossy.
 Liveliness: Lively, animated, spontaneous, enthusiastic,
happy go lucky, cheerful, expressive, impulsive
69
Personality Traits
 Rule-consciousness: Rule-conscious, dutiful,
conscientious, conforming, moralistic, staid, rule bound.
 Social boldness: Socially bold, venturesome, thick skinned,
uninhibited.
 Sensitivity: Sensitive, aesthetic, sentimental, tender minded,
intuitive, refined.
 Vigilance: Vigilant, suspicious, skeptical, distrustful,
oppositional.
 Abstractedness: Abstract, imaginative, absent minded,
impractical, absorbed in ideas.
 Privateness: Private, discreet, non-disclosing, shrewd,
polished, worldly, astute, diplomatic.
 Apprehension: Apprehensive, self doubting, worried, guilt
prone, insecure, worrying, self blaming.
70
Personality Traits
 Openness to change: Open to change, experimental, liberal,
analytical, critical, free thinking, flexibility.
 Self-reliance: Self-reliant, solitary, resourceful,
individualistic, self sufficient.
 Perfectionism: Perfectionist, organised, compulsive, self-
disciplined, socially precise, exacting will power, control, self-
sentimental.
 Tension: Tense, high energy, impatient, driven, frustrated,
over wrought, time driven.
71
Perception and its Importance
• Perception is the process by which individuals organise and interpret
 their sensory impressions in order to give meaning to their environment.

Importance of perception
• While creating vision for an organisation, our perception of the future
and the way things should be is a deciding factor.
• While making strategy, our perception of the opportunities and threats
make us see the same situation differently.
• Perception gives the impetus to seek more information to make more
rational decisions.
• Perception affects the planning because the goals set depend on our
perception of the world, employees and their ability to achieve them.
• Business leaders make an effort to change the perception of the
employees to bring about change.
72
Target
Novelty, motion,
sound, size,
background and
proximity Situation
Perceiver
Attitude, motive, Time, work setting,
interest, experience, social setting, nature
expectation, self of work, work
concept, mood, tradition
cognitive structure
Perception
73
Common Perceptual Biases
• Fundamental attribution error: This is the tendency to underestimate
the influence of external factors and overestimate the internal ones.
• Self serving bias: Tendency of people to attribute success to internal
factors and failure to external factors.
• Selective perception: When you evaluate a plan, you might miss out
some data.
• Halo effect: Previous success creates a halo and we feel that he/she will
be successful again.
• Contrast effect: Individuals do not evaluate a person in isolation.
• Projection: Our tendency to feel and see that others are like us and taking
decisions on the premise that others want what we want, is called
projection.
74
Common Perceptual Biases
 • Stereotyping: Is judging someone on the basis
of our perception of the group to which he or she belongs.
• First-impression (Primacy) effect: This means the
tendency to form lasting opinions about an individual
based on initial perceptions and needs no elaboration.
• Recency effect: Noticing the end of a series of actions
taken by a person and decide on the effectiveness of the
action.
• Self-fulfilling prophecy: It is a tendency for someone’s
expectations about another to cause that person to behave
in a manner consistent with those expectations.
75
 In the Social Identity Theory, a person has not one, “personal
self”, but rather several selves that correspond to widening
circles of group membership.
 An individual has multiple “social
identities”
SOCIAL IDENTITY THEORY
 This theory is all about becoming part of different groups, and

how membership to these groups helps construct our
identities.
 They suggested that people have an inbuilt tendency to

categorise themselves into one or more in-groups, building a
part of their identity on the basis of membership of that group
and enforcing boundaries with other groups.
THE FOUR ELEMENTS
 Tafjel and Turner decided that Social Identity can be
considered in four ways
 Categorisation
 Identification
 Comparison
 Psychological Distinctiveness
CATEGORISATION
 This looks at the way in which people put others (and
ourselves) into categories. We label one another based on
interest, ethnicity, gender, occupation and other factors.
 Calling someone a Muslim/Christian/ Buddhist/Hindu/

Atheist , student, mother, for example are ways in which we do
this.
IDENTIFICATION
 Once a social identity has been identified, people will choose to
associate with certain groups.
 Your collective identity becomes your in-group. This could be

your family, a friendship group – even your class.
 This closeness functions to boost our self esteem and to

create a sense of belonging.
 A group or individual that poses as a threat to your in-group

is called the out-group. Examples of this would be an outside
family member, a new member to class, someone from a
different ethnic background, or more close to home, somebody
from the other side of the social area!
COMPARISON
 People compare themselves and their groups with other
groups, seeing a favourable bias towards the group in which
they belong.
 Nowadays we see younger people dividing themselves into

social groups or subcultures based on clothing, the music
they listen to or other interests.
Psychological Distinctiveness
We desire our identity to be both distinct
from and positively compared with other
groups.
86
Would people discriminate against others
on the basis of their:
 nationality?
 nationality?
 football team?
 nationality?
 football team?
 eye colour?
Would people discriminate against others
 nationality?
 football team?
 eye colour?
 whether or not they liked a painting?
Attribution Theory
Attributions - are the reasons we give for our own and others
behaviors.
People are motivated to understand the causes of behavior.
Attribution theory seeks to explain how and why people

make these causal attributions.
Why is this baby smiling?
 Fritz Heider argued that there are two general types of
attributions that people make:
 Personal attributions
 Situational attributions
Personal attributions
 Explanations in terms of personal characteristics. For

example:
 “The baby must be a happy baby.”
Other examples:
 “He scored well on the exam because he is smart.”
 “She tripped because she is clumsy.”

Situational attributions
 Explanations in terms of situational factors.
 For example:
 “Someone must have just played with the baby .”
 Other examples:
 “He scored well because it was an easy test.”
 “She tripped because a squirrel ran in front of her.”
The Fundamental Attribution Error
is that we overestimate the power

of the person and underestimate
the power of the situation.
The availability heuristic

partly explains why this error occurs.
Why do people make the
fundamental attribution error?
 The situation is not salient when people make attributions

for the behavior of others, but the situation is salient when
making attributions for one’s own behavior.
 Thus, people are more inclined to take the situation into

account when explaining their own behavior.
Self-serving bias
 People do not make objective situational / personal attributions

for their own behavior, though.
 They tend to attribute their successes to dispositional factors,

and their failures to situational factors.
 For example: “I did well on the test because I am smart,” or “I

did poor on the test because I didn’t get enough sleep.
How do people make attributions?
 Kelley argued that people take three factors into
account when making a personal vs. situational
attribution:
 Consistency: Is the baby always smiling?
 Distinctiveness: Are there occasions on which the

baby doesn’t smile?
 Consensus: Do all babies smile?

 If consistency is high, and distinctiveness / consensus
are low, then a personal attribution is more likely:
 “The baby is always smiling, never displays other

emotions (like crying), and this is not typical of
babies in general. Therefore, this baby must have a
happy disposition.”

are also high, then a situational attribution is more
likely.
 “The baby is always smiling when tickled, but

displays different emotions in other circumstances.
Smiling when tickled is typical of all babies.
Therefore, this baby is smiling because it was
tickled”
Social learning theory
 Behavioural modelling
 observing and modelling behaviour of others
 Learning behaviour consequences

 observing consequences that others experience
 Self-reinforcement
 reinforcing our own behaviour with consequences
within our control
10
4
Stress management
10
5
What is stress?
An adaptive response to a
situation that is perceived as
challenging or threatening to the
person’s well-being
Ian Nicholson/ PA Photos
10
6
What is stress?
 Stress is the body’s automatic response to any physical or
mental demand placed on it.
 Adrenaline is a chemical naturally produced in our body

as a response to stress .
 Fight or Flight response is illicited.
10
7
General adaptation syndrome
Stage 1 Stage 2 Stage 3
Alarm reaction Resistance Exhaustion
Normal
level of
resistance
10
8
Stressors @ Home
 Death of spouse, family member, near relative or friend.

 Injury or illness of any family member.
 Marriage of self or son or daughter or brother or sister.
 Separation or divorce from partner.
 Pregnancy or birth of a new baby.
 Children's behavior or disobedience.
 Children's educational performance.
 Not sufficient money to raise your standard of living.
 Loss of money in burglary, pick-pocketed or share market.
Stressors at work
 To meet out the demands of the job.

 Your relationship with colleagues.
 To control staff under you.
 To train your staff and take work from them.
 Support you receive from your boss, colleagues and juniors.
 Excessive work pressure.
 To meet deadlines.
 To give new results.
 To produce new publications if you are in research area.
 Working overtime and no holidays.
Other stressors
 Fear, intermittent or continuous.
 Threats: physical threats, social threats, financial threat,
other threats.
 Uncertainty.
 Lack of sleep.
 Somebody misunderstands you.
 Setback to your position in society
stress outcomes
11
2
Role-related stressors
 Role conflict
 interrole conflict
 intrarole conflict
 person-role conflict
 Role ambiguity
 uncertain duties, authority
 Workload
 too much/too little work
 Task control
 machine pacing
© Photodisc. With permission.
 monitoring equipment
 no work schedule control
11
3
Interpersonal stressors
 Conflict with others
 Increased emphasis on team work
 Sexual harassment
 Workplace violence
 Workplace bullying
11
4
Interpersonal stressor: violence
 High risk of workplace violence in the US, but higher in several
other countries (eg France, Argentina, Canada)
 Workplace violence stress occurs from
 trauma of experiencing violence
 observing violence to others at work
 perceptions of risk of violence at work
11
5
Interpersonal stressor: bullying
 Offensive, intimidating or humiliating behaviour that
degrades, ridicules or insults another person at work
 Workplace bullies tend to be people with higher authority
 Workplace bullying is reduced through
 code of conduct
 careful hiring
 360 degree feedback
 conflict resolution system
11
6
Work/non-work stressors
 Time-based conflict
 due to work schedule, commuting, travel
 women still do ‘second shift’ (most housework)
 Strain-based conflict
 work stress affects home and vice versa
 Role behaviour conflict
 incompatible work and non-work roles
11
7
Individual differences in stress
 Perceive the situation differently

 self-efficacy
 locus of control
 Different threshold levels of resistance to stressor
 store of energy
 Use different stress-coping strategies
11
8
Job burnout process
Interpersonal and
role-related stressors
Emotional
exhaustion
Physiological,
psychological
Depersonalisation
and behavioural
consequences
Reduced personal
accomplishment
11
9
Stress Management
12
0
Managing Stress
 Stress Relief Strategies
1. Body relaxation exercises
- breathing techniques
- guided imagery
2. Physical exercise
-yoga
-work out routine
3. Meditation
4. Counseling
-talk therapy
-life coaching
Other Helpful tips
 Changing perceptions and expectations
 Break jobs/tasks into manageable parts
 Set reasonable/realistic goals
 Avoid procrastination
 Set boundaries
 Don’t compromise your values/beliefs
 Schedule “me” time
Benefits of Stress Management
 Physical health gets better
-more energy and stamina
 Emotions stabilized
-positive attitude
-hopeful/happier
 Ability to focus improved
-able to learn and achieve
Relax
 Our brain fires electrical waves at 14 or more cycles a second.
 These are beta waves and are great for getting tasks done, but
not for learning new things.
 Taking a few minutes to relax deeply slows your brain waves
down.
 These slower waves are alpha waves.
 They occur at between 7 and 14 cycles a second
 Studies show alpha waves improve learning.
Managing stress at Darlot Mine
Employees at Homestake’s Darlot
gold mine in Western Australia are
managing their stress better through
exercise, nutrition and awareness of
how to cope with shift work. The
idea is that healthier employees cope
with stress more effectively.
© R. Taylor/ West Australian
12
5
Work-life balance initiatives
 Flexible work time
 Job sharing
 Telecommuting
 Personal leave
 Childcare facilities
© R. Taylor/ West Australian
12
6
Other stress management
practices
 Withdrawing from the stressor
 permanent  better person-job
fit
 temporary  work breaks,
vacations
 Changing stress perceptions
 self-efficacy, self-leadership
 Controlling stress consequences
 fitness and lifestyle programs
 relaxation and meditation © R. Taylor/ West Australian
 employee counselling
 Social support
 emotional and informational
12
7
What are they doing?
12
9
What are they doing?
13
0
Attribution Theory
Attributions - are the reasons we give for our own and others’
behaviors.
People are motivated to understand the causes of behavior.
Attribution theory seeks to explain how and why people

make these causal attributions.
 Fritz Heider argued that there are two general types of
attributions that people make:
 Personal attributions
 Situational attributions
Personal attributions
 Explanations in terms of personal characteristics. For

example:
 “The baby must be a happy baby.”
Other examples:
 “He scored well in the exam because he is smart.”
 “She tripped because she is clumsy.”

Situational attributions
 Explanations in terms of situational factors.
 For example:
 “Someone must have just played with the baby .”
 Other examples:
 “He scored well because it was an easy test.”
 “She tripped because a squirrel ran in front of her.”
The Fundamental Attribution Error
is that we overestimate the power

of the person and underestimate
the power of the situation.
The availability exploratory partly explains why this error occurs.

Why do people make the
fundamental attribution error?
 The situation is not salient when people make attributions

for the behavior of others, but the situation is salient when
making attributions for one’s own behavior.
 Thus, people are more inclined to take the situation into

account when explaining their own behavior.
Self-serving bias
 People do not make objective situational / personal attributions

for their own behavior, though.
 They tend to attribute their successes to dispositional factors,

and their failures to situational factors.
 For example: “I did well on the test because I am smart,” or “I

did poor on the test because I didn’t get enough sleep.
How do people make attributions?
 Kelley argued that people take three factors into
account when making a personal vs. situational
attribution:
 Consistency: Is the baby always smiling?
 Distinctiveness: Are there occasions on which the

baby doesn’t smile?
 Consensus: Do all babies smile?

are low, then a personal attribution is more likely:
 “The baby is always smiling, never displays other

emotions (like crying), and this is not typical of
babies in general. Therefore, this baby must have a
happy disposition.”

are also high, then a situational attribution is more
likely.
 “The baby is always smiling when tickled, but

displays different emotions in other circumstances.
Smiling when tickled is typical of all babies.
Therefore, this baby is smiling because it was
tickled”
Social learning theory
 Behavioural modelling
 observing and modelling behaviour of others
 Learning behaviour consequences

 observing consequences that others experience
 Self-reinforcement
 reinforcing our own behaviour with consequences
within our control
14
1
Communicating in
organisational settings
14
2
What is communication ?
Communication is the process of transferring
information and meaning between senders and
receivers using one or more written, oral, visual, or
electronic channels.
The essence of communication is providing data,
sharing information, convincing, selling,
providing insights in an exchange.
Benefits of effective
organizational Communication
 Stronger decision making based on timely, reliable information
 Faster problem solving
 Early detection of a potential problem or a major crisis
 Increased productivity and reduced costs

Benefits of effective
organizational Communication
 Stronger business relationships
 Clearer and more persuasive marketing messages
 Enhanced professional image for both employers and

companies
 Greater employee engagement, higher satisfaction and

lower employee turnover
 Better financial results and high return on investments

The communication process
8. Audience
provides
feedback to
the sender
4. Sender
2. Sender 3. Sender
transmits
1. Sender has encodes the produces
message
an Idea idea in a message in a
through a
message medium
channel
5. Audience 6. Audience 7. Audience

receives the decodes the responds to
message message the message
Barrier in Communication
 Noise and Distraction
 Competing Messages
 Filters
 Channel Breakdown
Inside the mind of your audience
 Consider audience expectations
 Ensure ease of use
 Emphasize Familiarity
 Practice empathy
 Design for compatibility
Stage Potential Problem Solutions
1. Sender has Unclear Ideas Clarify Purpose

an Idea Uncertain goals Before beginning
2. Sender Outline
Unclear/
encodes the carefully
Inefficient/Unf
idea in a Improve
-ocused writing
message writing Skills
3. Sender Inappropriate
produces Medium/ Chose medium
message in a Distracting correctly
medium
design
The communication
Stage Potential Problem process
Solutions
- Noise - Reduce Noise

- Competing - Eliminate
4. Sender
messages Filters
transmits message
- Filters - Check for
through a channel
- Channel Channel
breakdown breakdown
-Focus on
- Message
5. Audience audience needs
missed
receives the - Design
- Message
message messages
Ignored
easy to find
Audience beliefs
6. Audience and biases
decodes the Meaning
Language and
message misinterpreted Image
Etiquettes
The communication
Stage Potential Problem process
Solutions
- No response Emphasize
7. Audience
- Wrong benefits
responds to
response Make it easy to
the message
- Forgotten respond
No means
8. Audience - Enable and
Ignored
provides encourage feedback
Misinterpretati
feedback to the - Learn to
on of nonverbal
sender understand non
signals
verbal signals
Main Categories of orgnanizational
communication
 Internal Operational
Communication :
- All the communication that
occurs in conducting work
within a business is internal
operational communication.
Ex: Intranet, E-mail, Memos,
Policy documents, Instructions,
new product development
document, Training, Meeting,
proposals, Minutes of the
meeting and many more
Main Categories of Organizational
communication
 External Operational
Communication :
The related communication
that a business does with
the people and groups
outside the business.
Ex: Advertising, Brochure,
Websites, contracts,
telephone call backs, POP
displays, e-mails and more
….
Main Categories of organizational
communication
 Personal Communication
:
- Exchange of information and
feelings among the working
professionals in an
organization.
- Personal Communication
affects the employee attitudes
- Personal communication
allowed and encouraged in the
company affect employee
attitudes
Unique challenges of organizational
communication
 Globalization and increase of workforce diversity
 The increasing value of Business

- Competitive Insights
- Customer Needs
- Regulation and Guidelines
 The pervasiveness of technology
 Evolution of organization Structure
 The growing reliance on teamwork

Communication Networks of the
organization
Formal Network
organization
Formal Network
 The formal network Consists of Official, more stable

lines of communication
 It can be Downward communication, Upward

communication or it can be horizontal communication
 Each company has its preferred communication forms

or genres for conducting its business
 Ex: Organizational announcements, reports, feedbacks,

appraisals,
organization
Informal Network
 Informal networks largely consists of personal

communication is highly complex and ever changing
 Largely informal communication happens among

organization members who have common interests and
similar backgrounds like . having kids of same age,
belonging to same town, liking for food, music etc…
 Managers can’t control informal networks rather they

make best use of informal networks for the betterment of
the organizations.
Grapevine Communication
15
9
Grapevine Communication
An informal communication network within an organization that
conveys information through unofficial channels independent of
management control.
Information travels much more quickly through the grapevine

than through formal channels and may become distorted.
A grapevine may reinterpret official corporate messages or spread

gossip and rumor in the absence of effective organization
channels.
It can, however, also complement official communication, provide

feedback, and strengthen social relationships within the
organization.
16
0
Features of Grapevine
Communication
 No control: There is no formal control over grapevine, so it is
more flexible than other forms of communication.
 Rapid communication: It is faster than any form of
communication.
 No record: There is no evidence which can be documented for
future reference
 Distortion: The message which is passed gets distorted when it
passes from one person to another.
 Spontaneous: Grapevine communication is spontaneous as it is
passed automatically from the top level of the organization to the
bottom level without any difficulty in delivering the message.
16
1
Organisational grapevine
 Early research findings
 transmits information rapidly in all directions
 follows a cluster chain pattern
 more active in homogeneous groups
 transmits some degree of truth
 Changes due to Internet
 email etc becoming main grapevine medium
 social networks are now global
16
2
Grapevine: benefits and
problems
 Benefits
 supplements information
 strengthens corporate culture
 relieves anxiety
 signals that problems exist
 Problems
 suggests lack of concern for employees
 distortions might escalate anxiety
16
3
Cross-cultural communication
 Verbal differences
 language
 voice intonation
 Non-verbal differences
 interpreting non-verbal meaning
 importance of verbal versus non-verbal
 silence and conversational overlaps
16
4
Gender communication differences
Men Women
Report talk Rapport talk
Give advice Give advice indirectly

quickly and directly and reluctantly
Avoid asking for Frequently ask for

information information
Less sensitive to More sensitive to

non-verbal cues non-verbal cues
16
5
Getting your message across
 Empathise
 Repeat the message
 Use timing effectively
 Be descriptive
© Photodisc. With permission.
16
6
Power and Dependence
 POWER  Dependence
A capacity that A has to
influence the behavior of B’s relationship to A
B so that B acts in when A possesses
accordance with A’s wish something that B
requires
16
7
FORMAL POWERS
Coercive Power :
A Power base that is
dependent on fear of
the negative results
from failing to
comply
16
8
FORMAL POWERS
Reward Power :
Compliance achieved
based on the ability to
distribute rewards that
others view as valuable
16
9
FORMAL POWERS
Legitimate Power:
The power a person
receives as result of his
or her position in the
formal hierarchy of an
organization
17
0
PERSONAL POWERS
Expert Power:
Influence based on
special skills or
knowledge
17
1
PERSONAL POWERS
Referent Power:
Influence based on
identification with a
person who has desirable
resources or personal
traits
17
2
Political Behavior in Office
17
3
Political Behavior:
Activities that are not required as a part of a
person’s formal role in the organizations but
that influence or attempt to influence the
distribution of advantages disadvantages
within the organization
17
4
 Withholding key information from decision maker
 Joining a coalition
 Whistleblowing
 Spreading rumors
 Leaking confidential information to media
 Lobbying
 Exchanging favors with others for personal benefits
17
5
The Realities of Politics :
- Research studies show political behavior is a major part
of organizational life
- It is not all bad, sometimes people use politics for
ethical and necessary cause
- Allocation of limited resources like budgets, space,
rewards, salaries are the key issue why politics occurs at
organizations…
- Politics in the eyes of beholder
17
6
CONFLICT
3-177
What is conflict ?
According to Robbins, Conflict is a process that begins

when one party perceives that another party has
negatively affected, or is about to negatively affect,
something that the 1st party cares about.
Similarly, Greenberg and Baron define conflict as a process

in which one party perceives that another party has taken
or will take actions that are incompatible with one's own
interests.
.
3-
17
8
What is conflict ?
Conflict occurs whenever:

 Disagreements exist in a social situation over issues of
substance.
 Emotional hatreds causes frictions between individuals

or groups.
3-
17
9
Types of conflict.
1. Substantive conflict.
A fundamental disagreement over ends or goals to be
pursued and the means for their accomplishment.
2. Emotional conflict.
Interpersonal difficulties that arise over feelings of
anger, mistrust, dislike, fear, resentment, etc.
3. Intrapersonal conflicts.
Actual or perceived pressures from incompatible goals
or expectations.
3-
18
0
Types of conflict.
3. Interpersonal conflict ( Continued)
Occurs between two or more individuals who are in
opposition to one another.
4. . Intergroup conflict.
Occurs among members of different teams or groups.
5.. Inter organizational conflict.

Occurs in the competition and rivalry that characterize
firms operating in the same markets.
Occurs between unions and organizations employing their
members.
3-
18
1
Types of conflict.
6. Functional (or constructive) conflict.
Results in positive benefits to individuals, the group, or the

organization.
Likely effects.
Surfaces important problems so they can be addressed.
Causes careful consideration of decisions.
Causes reconsideration of decisions.
Increases information available for decision making.
Provides opportunities for creativity.
3-
18
2
Types of conflict.
8. Culture and conflict.
Conflict is likely to be high when:

• Persons from short-term cultures work with persons from long-
term cultures.
• Persons from individualistic cultures work with persons from
collectivistic cultures.
3-
18
3
Types of conflict.
7. Dysfunctional (or destructive) conflict.
Works to the disadvantage of individuals, the group, or the

organization.
Likely effects:
Diverts energies.
• Harms group cohesion.
› Promotes interpersonal hostilities.
Creates overall negative environment for workers
3-
18
4
Causes of conflict.
 –Vertical conflict.
 Occurs between hierarchical levels.
 –Horizontal conflict.
 Occurs between persons or groups at the same hierarchical
level.
 –Line-staff conflict.
Involves disagreements over who has authority and
control over specific matters
3-
18
5
Causes of conflict.
 Role conflicts.
Occur when the communication of task expectations
proves inadequate or upsetting.
 Work-flow interdependencies.
Occur when people or units are required to cooperate to
meet challenging goals
3-
18
6
Causes of conflict.
 Domain ambiguities.
Occur when individuals or groups are placed in
ambiguous situations where it is difficult to determine
who is responsible for what.
 Resource scarcity.
When resources are scarce, working relationships are
likely to suffer.
 Power or value asymmetries.

Occur when interdependent people or groups differ
substantially from one another in status and influence
3-
or in values. 18
7
How can conflict be
managed successfully?
Conflict resolution.
 A situation in which the underlying reasons for a given
destructive conflict are eliminated.
 Effective resolution begins with a diagnosis of the stage

to which conflict has developed and recognition of the
cause(s) of the conflict.
3-
18
8
How can conflict be
 Indirect conflict management approaches.
Reduced interdependence.
Appeals to common goals.
Hierarchical referral.
Alterations in the use of mythology and scripts.
3-
18
9
How can conflict be
Reduced interdependence:
 Used for adjusting level of interdependency when
work-flow conflicts exists.
Options.
 Decoupling.
 Buffering.
 Linking pins.
3-
19
0
How can conflict be
 Appeals to common goals.

–Focusing the attention of potentially conflicting
parties on one mutually desirable goal
–Helping parties to recognize their mutual
interdependence.
 –Can be difficult to achieve if:

Prior performance is poor.
 Parties disagree over how to improve performance. 3-
19
1
How can conflict be
Indirect conflict management approaches.
Hierarchical referral.
 Makes use of the chain of command for conflict
resolution.
 Problems with hierarchical referral.
 May not result in true conflict resolution.
 Possibility of inaccurate diagnosis of causes of conflict,
resulting in only superficial resolution.
 Superiors may attribute conflict to poor interpersonal
relationships.
3-
19
2
How can conflict be
Alterations in the use of mythology and scripts.

 Scripts are behavioral routines that become part of
the organization’s culture.
 Scripts prescribe ways of dealing with conflict.
3-
19
3
How can conflict be
 Direct conflict management approaches are based on
the relative emphasis that a person places on
assertiveness and cooperativeness.
 Assertiveness.
Attempting to satisfy one’s own concerns.
Cooperativeness.
Attempting to satisfy the other party’s concern.
3-
19
4
How can conflict be
 Direct conflict management approaches
 Avoidance.
–Unassertive and uncooperative.
–Downplaying disagreement.
–Failing to participate in the situation and/or staying
neutral at all costs.
3-
19
5
How can conflict be
 Direct conflict management approach
 Accommodation or smoothing.
–Unassertive and cooperative.
–Letting the other’s wishes rule.
–Smoothing over differences to maintain superficial
harmony.
3-
19
6
How can conflict be
 Direct conflict management approach
 Compromise.
–Moderate assertiveness and moderate cooperativeness.

–Working toward partial satisfaction of everyone’s
concerns.
–Seeking acceptance rather than optimal solutions so that
no one totally wins or loses.
3-
19
7
How can conflict be
Direct conflict management approach
 Competition and authoritative command.

–Assertive and uncooperative.
–Working against the wishes of the other party.
–Fighting to dominate in win/lose competition.
–Forcing things to a favorable conclusion through the
exercise of authority.
3-
19
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8
How can conflict be
Direct conflict management approach
 Collaboration and problem solving.

–Assertive and cooperative.
–Seeking the satisfaction of everyone’s concerns by
working through differences.
–Finding and solving problems so everyone gains as a
result.
3-
19
9
Negotiation
 The process of making

joint decisions when the
parties involved have
different preferences.
 Workplace disagreements
arise over a variety of
matters.
3-
20
0
Negotiation goals and
outcomes
 Substance goals.
Outcomes that relate to content issues.
 Relationship goals.
Outcomes that relate to how well people involved in the
negotiations and any constituencies they represent are
able to work with one another once the process is
concluded
3-
20
1
Effective negotiation
Occurs when substance issues are resolved and working
relationships are maintained or improved.
Criteria for an effective negotiation.
 Quality.
 Harmony.
 Efficiency.
3-
20
2
Third-party roles in
negotiation
1. Arbitration.
 A third party acts as a “judge” and has the power to
issue a decision that is binding on all disputing parties.
2. Mediation
 A neutral third party tries to engage the disputing
parties in a negotiated solution through persuasion
and rational argument.
3-
20
3
EMOTIONS
20
4
Emotions
• Emotion is a complex psycho-physiological experience in
an individual's state of mind and created by interaction of
biochemical (internal) and environmental (external)
influences.
• Emotions in the workplace play a large role in how an
entire organisation communicates within itself and to the
outside world.
• Emotions are normally associated with specific events or
occurrences and are intense enough to disrupt the thought
process.
20
5
Concept of Emotions
Positive emotions in the workplace help employees obtain
favorable outcomes including achievement, job enrichment and
higher quality and productivity.
Negative emotions, such as fear, anger, stress, hostility, sadness
and guilt, are usual workplace emotions and predict an increase
in workplace abnormality and how the outside world views the
organization.
20
6
Concept of Emotions
 Emotional Labor : is a form of emotional regulation
wherein workers are expected to display certain emotions as
part of their job and to promote organizational goals.
20
7
Concept of Emotions
 Emotional Regulation : refers to the process of modifying
one's own emotions and expressions.
 There are two kinds :
 Antecedent -focused emotion regulation
 Response-focused emotion regulation
20
8
Concept of Emotions
 Organization-desired emotions : Employees can display
organizationally-desired emotions by acting out the emotion.
 Such acting can take two forms:
 Surface acting
 Deep acting
20
9
Emotional intelligence
"Emotional intelligence is the capacity for recognising our

own feelings and those of others, for motivating ourselves,
for managing emotions well in ourselves and in our
relationships.“
21
0
Emotional intelligence
Goleman’s model of Emotional Intelligence:
Relationship
Self-awareness Self-management Social awareness
management
Capacity for
Capacity for
Capacity for Capacity for acting in such a
understanding
understanding effectively way that one is
what others are
one's emotions, managing one's able to get
saying and feeling
one's strengths motives and desired results
and why they feel
and one's regulating one's from others and
and act as they
weaknesses. behaviour. reach personal
do.
goals.
21
1
Emotional Intelligence and its
Impact on Managers
• Personal competence: Personal competence comprises

three dimensions of EI, such as, self-awareness, self-
regulation and motivation.
• Social competence: Social competence comprises of two

dimensions namely, empathy and social skills.
21
2
EI for employees
EI for employees
In order to increase the level of employees’ performance, morale
and enthusiasm, many organizations today want to promote an
emotionally intelligent culture. To succeed in that, organizations
must foster the following attributes:
 The organization “promotes a culture in which openness and
transparency are the norm.”
 Respectful assertiveness must exist in the organization.
 The organization encourages diversity.
 The organization tolerates constructive disagreement.
21
3
EI for employees
 EI for employees.
 The organization values flexibility and communication among
its various departments.
 By having these attributes, an emotionally intelligent
organization can plan several years in advance and its
employees can work with each other more effectively.
21
4
EI for Leaders
 EI for Leaders
 The characteristics of leaders possessing a high level of EI are
as follows
 They set goals that are clear and mutually agreed upon.
 They prefer praise as a tool for training and inspiring
employees.
 They rely on decentralization for achieving their goals.
 They focus on employees and their feelings.
 They are role models.
 These leaders exhibit a high degree of self-actualisation, self-
regard and a strong sense of self-awareness. They admit their
mistakes and seek to learn from them.
21
5
21
6
21
7
Motivation
• Motivation is “the process that account for an individual’s
intensity, direction and persistence of effort toward attaining a
goal.”
21
8
Motivation
• Motivation is important to an individual because:
o Motivation helps to achieve personal goals.
o Motivation gives job satisfaction.
• Motivation is important to a business because:
o Motivation leads to an optimistic and challenging attitude
at work place.
o During period of change, there is more adaptability and

creativity.
21
9
Motivation
 Benefits
• It leads to innovation because of the desire to do a job better

and accomplish a challenge.
• It creates a co-operative work environment where high degree

of coordination is achieved and reduces the cost of controls.
22
0
Maslow’s hierarchy of needs
Theory
22
1
Theory
 Physiological – Includes hunger, thirst, shelter, sex, and
other bodily needs. So if the workplace does not fulfil these, an
individual will not be motivated. If he gets these, he will need
the next hierarchy.
 Safety – Includes security and protection from physical and
emotional harm and therefore he looks for safer working
place, and does not want to be threatened or abused in the
workplace.
 Social – Includes affection, belongingness, acceptance, and
friendship in the workplace and if he gets this, he will be
happy to work hard. Workplaces which guarantee this
motivate them, social relationships lead to higher
productivity.
22
2
Theory
 Esteem – Includes internal esteem factors, such as, self-
respect, autonomy, and achievement; and external esteem
factors, such as status, recognition, and attention. So, when we
set goals, supports him to achieve it and rewards him for it, it
fulfills his esteem needs and also other needs because of the
money he gets as a result which he can use
 to fulfill the other needs such as buying a house (safety), giving
a party (social) or donating for charity (self esteem or self
actualisation). The focus of organisations today is to fulfil this
need and social need and so combine it with reward that he can
fulfil most of his other needs
22
3
Theory
 Self-actualisation – The drive to become what one is
capable of becoming; includes growth, achieving one’s
potential, and self-fulfilment.
22
4
Theory X and Theory Y
This theory identifies the disposition that a manager takes and
the consequent actions which impacts motivation.
Thus, some managers assume that employees are inherently lazy

and will avoid work and therefore put in close supervision to
counter it.
Others assume otherwise i.e., employees are ambitious, self-

motivated, anxious to accept greater responsibility, and exercise
self-control, self-direction, autonomy and empowerment and
hence they act accordingly.
22
5
Theory X and Theory Y
The former uses punitive measures to get results while the latter
uses positive measures for the same results.
But those following Theory X have to develop elaborate
directives and controls which cost a lot and the organisation
loses competitiveness in comparison to those following
22
6
3-227
Groups
 Over the years, groups have become the norm in many

organizations. This is because the complexity of business grew
exponentially.
 It is impossible for one person to consider all factors and take a
decision.
 The volume of information available and the expertise required in
understanding the information made groups authoritative.
 Group decision making and use of groups for execution is useful
only if it is handled systematically.
 Otherwise, groups can often take far inferior decisions than an
individual does because of various reasons.
3-
22
8
Concept of groups
• Agroup is defined as two or more individuals who have frequent

interaction and who work together to achieve a common set of
goals.
• A group is based on the concept of synergy to attain the goal.
• Through synergy, the sum total of the output by the individual
members are collectively surpassed by the group.
• Social facilitation theory explains how performance tends to
improve or decline in the presence of others.
3-
22
9
Concept of groups
Formal groups
 Every organization is divided into formal organizational
structures such as marketing, finance, operations, project etc.
These are often called departments.
 A formal group has the following characteristics:
 Defined goals, deadlines and roles.

 Explicitly defined structure, procedural rules, membership and
norms.
 Relatively permanent or temporary (e.g. steering group or
problem solving group).
3-
23
0
Concept of Groups
 Informal groups
• Within the overall structure of the organisation and the
department, there can be several informal groups.
• The goal of the informal group is not directly derived from the
organisational goals.
 Creation, purpose and types of informal groups

• The informal groups are created in the workplace because of
several reasons such as proximity, social and emotional need of
bonding, common interests, and friendship. .
3-
23
1
Concept of Groups
 Power of informal group within formal organisation

• Informal groups transcend departmental boundaries. For
example, the members of a friendship group or interest group
may be from different departments and different hierarchies.
Thus, they become the glue that connects departments.
3-
23
2
Stages and Process of Group
formation
Stages of group formation

• Bruce Tuckman (1965) proposed a five stage model.
o Forming: In this stage, the members are in the process of
coming together, knowing each other and identifying the
goals.
o Storming: In this stage, the members try to find out their role
and their contribution to the goal including the obstacles.
o Norming: The group comes into balance; accept a formal or
informal structure, leadership, roles, duties, way of conduct
etc.
3-
23
3
Stages and Process of Group
formation
Stages of group formation
o Performing: The group now becomes stable, knows the

details and start execution. Work proceeds as per the norms
towards the goals set.
o Adjourning: Normally a group adjourns after it has
accomplished its goal e.g., a project, product development
etc.
3-
23
4
TEAM : Introduction
Globalization and rapid changes in external environments has compelled us

to find new ways to remain competitive.
Organizations have continued to decentralize and re-engineer their business

processes.
They also downsize and empower their employees far more than it ever
did.
To facilitate these changes and gain a competitive edge, managers are

increasingly turning to team structures.
3-
23
5
Team
Definition: A team can be defined as a group of people

operating with complementary skills and a high degree of
interdependence and accountability to achieve a common
and usually difficult goal collectively with authority to
execute and the rights to share rewards for the
performance.
 Teams are created for both long term and short term
interaction.
3-
23
6
Team
Common types of teams are:
 Functional or Departmental teams (also called Intact

teams)
 Cross-functional teams
 Self-managing teams
 Based on function
3-
23
7
Teams and Groups have three
distinct differences:
3-
23
8
Advantages and Disadvantages of a
Team:
3-
23
9
Effective Team
Clear purpose
Consensus decision making
Shared leadership
Listening
Open communication
Self-assessment
Civilized disagreement
Style diversity 3-
24
0
17 Characteristics of an
Effective Team
Networking
Participation
Informal relations
Clear roles and assignments
Willingness to share
Prepared for independence
Structural support
Leader/ Management style
Learning environment 3-
24
1
Team Effectiveness Model
How can managers and team leaders
improve poor team results?
How can successful teams be even more

effective?
Dr. Robert Ginnett of the Center for

Creative Leadership has developed the
Team Effectiveness Leadership Model
It Can be used to identify what is required

for a team to be effective and point the
leader either toward the roadblocks that are
hindering the team or toward ways to make
the team even more effective..
This model uses a systems theory approach with :
Inputs (Individual, team, and organizational factors),
Processes (What one can tell about the team by

observing team members)
Outputs (How well the team did in accomplishing its

objectives).
One way to explore the model is to go through it in

reverse order looking at outputs first, then the
process stage, and then inputs
Organizational and Team

Team Design
Team Environment Effectiveness
• Reward systems •Design of work
• Communication •Team size • Product acceptable
systems •Team composition to clients
• Physical space
• Team grows in
• Organizational
Team Processes capability
environment
• Organizational • Individual members
•Team development
structure learn
•Team norms
• Organizational •Team roles
leadership •Team cohesiveness
Outputs
Outputs are the results of the team's work.

A team is effective if ….
(a) the team's product or service meets its stakeholders' standards for
quantity, quality, and timeliness
(b) If the group process that occurs while the group is performing its
task enhances its members' ability to work together as a team in the
future.
(c)And an equally important result of a team working effectively is the

satisfaction its members derive from that work as individuals.
Those team results depend on the group process and the inputs
available to the team.
Process
The model identifies four Process Criteria yardsticks managers can use to
examine the ways in which teams work. If a team is to perform effectively,
it must:
 work hard enough (P-1 Effort)
 have sufficient knowledge and skills to perform the task (P-2

Knowledge & Skills)
 have a strategy to accomplish its work or ways to approach the task at

hand (P-3 Strategy)
 have constructive and positive group dynamics among its members (P-4
Group Dynamics).
Inputs
Inputs are what is available to teams as they go about their work. The
model shows multiple levels in the input stage.
Input factors at both the individual and organizational levels affect the
team design level as indicated by the direction of the arrows between
these levels.
Social Loafing
3-
24
8
Behavior in the Presence of
Others
 Social Loafing: When an individual’s contribution to a collective
activity cannot be evaluated, individuals often work less hard
than they would alone.
Others
 Social loafing depends on
 How important the person believes his/her
contribution is to group success
 How much the person values group success
• Karau & Williams, 1993
Others
 Reducing Social Loafing
 Make each person’s contribution identifiable
 Provide rewards for high group productivity
 Make task meaningful, complex, or interesting
Others
 Social compensation occurs when a person expends
great effort to compensate for others in the group.
 When others are performing inadequately, and the
person cares about the quality of the group product
Others
 Across cultures
 Social loafing has been found in Thailand, Japan,India
& China
 However, social loafing may be greater among people
from the U.S. than among Asians
Others
 In summary: whether social facilitation or social
loafing occurs depends on
 Whether individuals are identifiable
 Task complexity
 How much participants care about the outcome
Self-directed work team
(SDWT)
 A self-directed work team (SDWT) is a group of people,
usually employees in a company, who combine different skills
and talents to work without the usual managerial supervision
towards a common purpose or goal.
 An optimal SDWT is said to be between five and nine
members.
 An SDWT may not be not temporary and may not be limited to
a single project.
 SDWT members use their company's mission statement to
develop their purpose, which must be meaningful and
beneficial to the company.
 Purposes might include problem solving, increasing sales and
productivity, career training, and product improvement. 253-
5
(SDWT)
 SDWT members must decide how they want to work
together, they must agree on the rules and deadlines for
accomplishing their purpose.
 Some teams create a charter or set of rules that describe

what is expected of each member. If a problem arises
during the course of a project, the team members work
together to provide a solution.
3-
25
6
(SDWT)
 In order for an SDWT to succeed, the company or
organization must provide a meaningful mission statement
to the team, empower the team to do what it needs to do
including making important decisions, support the team,
establish and provide the boundaries, rules, and company
policies, and train the members with the skills and
knowledge needed to accomplish their purpose.
 But, in the end, the team is held accountable for the success
or failure of a project.
3-
25
7
Virtual team
3-
25
8
Virtual team & trust
 Today’s financial woes have forced many companies to

pick members of project teams from across various
global locations and have them communicate virtually–
by
 Phone
 e-mail
 videoconference
And thereby saving both time and money.
3-
25
9
Handling the virtual teams is
different
1. You must lead differently
 Co-located teams often benefit most from a leader who

acts as a facilitator
 virtual teams need a manager who provides clearly

defined direction and removes all ambiguity from the
process.
3-
26
0
different
2. You must lead differently
 Teams don’t work the same everywhere.
 In the U.S., managers are trained to solicit input from a

team, choose a direction quickly and make adjustments as
the project moves forward.
 It works, but then so do other methods.
 In Sweden teams learn to make decisions through lengthy

consensus building, which can span many meetings but
eventually leads to strong buy-in and rapid
3-
implementation. 26
1
different
 In France the Descartes-inspired education system teaches that
debate and confrontation are necessary elements of any decision-
making process.
 And in Japan decisions tend to be made in informal one-on-one

discussions before a formal group meeting.
 Global teams therefore need very explicit descriptions of how

decisions will be made, and the best global team leader is one
who is willing to try out different kinds of decision-making
processes at different points in a project.
3-
26
2
different
 3. You must build trust differently.
 Trust takes on a whole new meaning in virtual

teams
 In a geographically distributed team, trust is

measured almost exclusively in terms of reliability.
3-
26
3
4. You must communicate differently.
 The utmost key to global virtual team leading is,

without doubt, communication.
 when we communicate virtually, we often become
less influential
 Managers of global virtual teams who sit rigidly at
their desks, glued to Skype or videoconference
screens, tend to lose their interpersonal or
persuasive edge
 Managers need the ability to switch between skill
sets, based on the diversity of their team members
and the distance between them 3-
26
4
Attitudes
Evaluative statements or judgments concerning objects,
people, or events
Three components of an attitude:
The emotional or
Affective
Cognitive feeling segment
The opinion or of an attitude
belief segment Behavioral
of an attitude
An intention to
behave in a certain
way toward someone
Attitude or something
See E X H I B I T 3–1
3-
26
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
5
Cognitive Dissonance
 Cognitive Dissonance: Any incompatibility between two
or more attitudes or between behavior and attitudes
 Individuals seek to reduce this uncomfortable gap, or
dissonance, to reach stability and consistency
 Consistency is achieved by changing the attitudes,
modifying the behaviors, or through rationalization
 Desire to reduce dissonance depends on:
› Importance of elements
› Degree of individual influence
› Rewards involved in dissonance
3-
26
6
Moderating Variables
 The most powerful moderators of the attitude-behavior
relationship are:
 Importance of the attitude
 Correspondence to behavior
 Accessibility
 Existence of social pressures
 Personal and direct experience of the attitude
Attitudes Predict Behavior
Moderating Variables
3-
26
Predicting Behavior from
Attitudes
 Important attitudes have a strong relationship to

behavior.
 The closer the match between attitude and behavior,
the stronger the relationship:
› Specific attitudes predict specific behavior
› General attitudes predict general behavior
 The more frequently expressed an attitude, the
better predictor it is.
 High social pressures reduce the relationship and
may cause dissonance.
 Attitudes based on personal experience are stronger
predictors.
3-
8
What are the Major Job
Attitudes?
 Job Satisfaction
 A positive feeling about the job
resulting from an evaluation of its
characteristics
 Job Involvement
 Degree of psychological identification
with the job where perceived
performance is important to self-
worth
 Psychological Empowerment
 Belief in the degree of influence over
the job, competence, job
meaningfulness, and autonomy
3-
9
Another Major Job Attitude
 Organizational Commitment
 Identifying with a particular organization and its goals,
while wishing to maintain membership in the organization.
 Three dimensions:
› Affective – emotional attachment to organization
› Continuance Commitment – economic value of staying
› Normative – moral or ethical obligations
 Has some relation to performance, especially for new
employees.
 Less important now than in the past – now perhaps more of
an occupational commitment, loyalty to profession rather
than a given employer.
3-
0
And Yet More Major Job
Attitudes…
 Perceived Organizational Support (POS)
 Degree to which employees believe the organization values
their contribution and cares about their well-being.
 Higher when rewards are fair, employees are involved in
decision making, and supervisors are seen as supportive.
 High POS is related to higher performance.
 Employee Engagement
 The degree of involvement with, satisfaction with, and
enthusiasm for the job.
 Engaged employees are passionate about their work and
company.
3-
27
1
Are These Job Attitudes Really
Distinct?
 No: these attitudes are

highly related.
 Variables may be
redundant (measuring the
same thing under a
different name)
 While there is some
distinction, there is also a
lot of overlap.
Be patient, OB researchers are working on it!

3-
27
2
Job Satisfaction
 One of the primary job attitudes measured.
 Broad term involving a complex individual summation of a
number of discrete job elements.
 How to measure?
 Single global rating (one question/one answer) - Best
 Summation score (many questions/one average) - OK
 Are people satisfied in their jobs?
 In the U. S., yes, but the level appears to be dropping.
 Results vary by employee facets of the job.
 Pay and promotion are the most problematic elements.
3-
27
3
Facets of Job Satisfaction
1) Appreciation
2) Communication
3) Coworkers
4) Fringe benefits
5) Job conditions
6) Nature of the work
7) Organization
8) Personal growth
9) Policies and procedures
10) Promotion opportunities
11) Recognition
12) Security
13) Supervision
14) Remuneration
3-
27
Causes of Job Satisfaction
 Pay influences job satisfaction only to a point.
 After about $40,000 per year (in the U.S.), there is no
relationship between amount of pay and job satisfaction.
 Money may bring happiness, but not necessarily job satisfaction.
 Personality can influence job satisfaction.

 Negative people are usually not satisfied with their jobs.
 Those with positive core self-evaluation are more satisfied with
their jobs.
3-
5
Employee Responses to
Dissatisfaction
Active
Exit Voice
• Behavior • Active and
directed constructive
toward leaving attempts to
the improve
organization conditions
Destructive Constructive
Neglect Loyalty
• Allowing • Passively
conditions to waiting for
worsen conditions to
improve
Passive
3-
27
6
Outcomes of Job Satisfaction
 Job Performance
 Satisfied workers are more productive AND more
productive workers are more satisfied!
 The causality may run both ways.
 Organizational Citizenship Behaviors
 Satisfaction influences OCB through perceptions of
fairness.
 Customer Satisfaction
 Satisfied frontline employees increase customer
satisfaction and loyalty.
 Absenteeism
 Satisfied employees are moderately less likely to miss
work. 3-
27
7
More Outcomes of Job
Satisfaction
 Turnover
 Satisfied employees are less likely to quit.
 Many moderating variables in this relationship.
› Economic environment and tenure
› Organizational actions taken to retain high performers and to
weed out lower performers
 Workplace Deviance
 Dissatisfied workers are more likely to unionize, abuse
substances, steal, be tardy, and withdraw.
Despite the overwhelming evidence of the impact of job

satisfaction on the bottom line, most managers are either
unconcerned about or overestimate worker satisfaction. 3-
27
8
Summary and Managerial
Implications
 Managers should watch employee attitudes:
 They give warnings of potential problems
 They influence behavior
 Managers should try to increase job satisfaction and
generate positive job attitudes
 Reduces costs by lowering turnover, absenteeism, tardiness,
theft, and increasing OCB
 Focus on the intrinsic parts of the job: make work
challenging and interesting
3-
9
Defining the Psychological
Contract
“The perceptions of both parties to the
employment relationship, organization
and individual, of the reciprocal promises
and obligations implied in that relationship”
The state of the psychological contract is

concerned with whether the promises and
obligations have been met, whether they are fair
and their implications for trust.
The Psychological Contract
Framework
The Good
Employer Satisfied
The And
The High Productive
Deal
Quality Workers
Workplace
The Deal
Employer Employees
Delivers on Deliver on
Promises Promises
Fairness
Trust
Commitment
Well-Being
Performance
Framework for applying the psychological
contract to the employment relationship
Contextual
and Policy State of the
and Psychological Outcomes
Background Contract Psychological
Factors Practice Contract
Attitudinal
Individual: Consequences:
Age Organizational
Gender commitment
Education Work satisfaction
Level in HR policy and Work-life balance
organisation practices Job security
Type of work Motivation
Reciprocal Delivery
Hours worked Leadership/ Trus Stress
promises and of the
Employment Climate t
obligations deal
contract
Employment Fairness Behavioural
Ethnicity
relations Consequences:
Tenure
Income Attendance
Quality of Intention to stay/quit
Organizational: workplace Job performance
Sector OCB
Size
Ownership
Business strategy
Union recognition
The Good Employer
Progressive Human
Resource
Practices
Climate of Positive
Organisational
The High
Support
Good Quality
Employer Workplace
Flexible
Employment
Practices
Employee
Partnership
The High Quality Workplace
 Reasonable demands/manageable workload
 Some personal control over work
 Support from supervisors and colleagues
 Positive relationships at work
 A reasonably clear role
 Involvement in changes affecting you
Leadership
Leadership Defined
Leadership is the
ability to influence,
motivate, and
enable others to
contribute toward
the effectiveness of
the organizations of
which they are
members
Shared Leadership
The view that leadership is broadly distributed rather
than assigned to one person
Employees are leaders when they champion change in
the company or team
Shared leadership calls for:
 Formal leaders willing to delegate power
 Collaborative culture – employees support each
other
 Employee ability to influence through persuasion
Perspectives of Leadership
Competency
Perspective
Implicit
Leadership Behavioural
Leadership
Perspective Perspective
Perspectives
Transformational Contingency
Perspective Perspective
Competency Perspective
 Competencies – personal characteristics that lead to
superior performance in a leadership role (e.g.
skills, knowledge, values)
 Early research – very few “traits” predicted effective
leadership
 Emerging view – several competencies now
identified as key influences on leadership potential
and of effective leaders
Eight Leadership Competencies
• Extroversion, conscientiousness
Personality
(and other traits)
• Positive self-evaluation
Self-concept • High self-esteem and self-efficacy
• Internal locus of control
• Inner motivation to pursue goals

Drive
• Inquisitiveness, action-oriented
• Truthfulness
Integrity
• Consistency in words and actions
more
Eight Leadership Competencies
(con’t)
Leadership • High need for socialized power to

Motivation achieve organizational goals
Knowledge of • Understands external environment

the Business • Aids intuitive decision making
Cognitive/practica • Above average cognitive ability

l Intelligence • Able to solve real-world problems
Emotional • Perceiving, assimilating, understanding,

Intelligence and regulating emotions
Leader Behavior Perspective
 People-oriented behaviors
 Showing mutual trust and respect
 Concern for employee needs
 Looks out for employee well-being
 Task-oriented behaviors
 Assign specific tasks
 Ensure employees follow rules
 Set “stretch goals” to achieve performance capacity
Path-Goal Leadership
 Originated with expectancy theory of motivation

 Paths = employee expectancies
 Goals = employee performance
 States that effective leaders ensure that employees

who perform their jobs well receive more valued
rewards than those who perform poorly
Path-Goal Leadership Styles
 Directive
 Provide psychological structure to jobs
 Task-oriented behaviors
 Supportive
 Provide psychological support
 People-oriented behaviors
 Participative
 Encourage/facilitate employee involvement
 Achievement-oriented
 Encourage peak performance through goal setting and
positive self-fulfilling prophecy
Contingency Leader Theories
 Situational Leadership Model
 Leadership effectiveness depends on the leader's ability
to tailor his or her behavior to the demands of the
situation, namely, the subordinate's level of maturity
 Leader styles – telling (high directive, low
support), selling (high directive, high supporting),
participating (low directive, high supportive), and
delegating (low directive, low supportive)
Transformational vs. Transactional
Leaders
 Transformational leaders
 Leading -- changing the
organization to fit environment
 Change agents
 Transactional leaders
 Managing – achieving current
objectives more efficiently
› link job performance to rewards
Former U S President Franklin Roosevelt was › ensure employees have necessary
regarded as a Transformational Leader
resources
 Relates to contingency leadership
theories (e.g. path-goal)
Transformational v. Charismatic
Leaders
 Is charismatic leadership
essential for transformational
leadership?
 Emerging view -- charisma
differs from transformational
leadership
 Charisma is a personal trait that
Former U S President Franklin Roosevelt was
regarded as a Transformational Leader provides referent power
Transformational Leadership
Elements
1. Create a strategic vision
 Depiction of company’s attractive future
› motivates and bonds employees
 Leader champions the vision
2. Communicate the vision

 Frame message around a grand purpose
 Create a shared mental model of the future
 Use symbols, metaphors, symbols
Transformational Leadership
Elements (con’t)
3. Model the vision
 Walk the talk
 Symbolize/demonstrate the vision through behavior
 Builds employee trust in the leader
4. Build commitment to the vision

 Increased through communicating and modeling the
vision
 Increased through employee involvement in shaping
the shared vision
Evaluating Transformational
Leadership
 Transformational leadership is important
• Higher employee satisfaction, performance, org
citizenship, creativity
 Transformational leadership limitations

• Some models have circular logic
- Transformational leaders defined by their success rather
than behavior (Result: those models have no predictive
value)
• Universal theory
- Need a contingency-oriented theory
- Recognize differences across cultures
Implicit Leadership Perspective
Follower perceptions of characteristics of effective

leaders
1. Leadership prototypes
• Preconceived image of effective leader, used to evaluate
leader effectiveness
2. Romance of leadership effect

• Amplify effect of leaders on organizational results
• Fundamental attribution error
• Need for situational control
Cultural Issues in Leadership
 Societal cultural values and practices affect leaders:
 Shape leader’s values/norms
 Influence decisions and actions
 Shape follower prototype of effective leaders
 Some leadership styles are universal, others differ

across cultures
 “Charismatic visionary” seems to be universal
 Participative leadership works better in some cultures
than others
Gender Issues in Leadership
 Male and female leaders have similar task- and
people-oriented leadership.
 Participative leadership style is used more often by
female leaders.
 Evaluating female leaders
 Still receive negative evaluations as leader due to
prototypes and gender stereotypes
 But evidence that they are good at emerging
leadership styles (coaching, teamwork)
Organisational structure
and design
Organizational Structure:
 The way in which an organization’s jobs are formally

divided, grouped and coordinated.
 Hierarchical arrangement of lines of authority, commu

nications, rights and duties of an organization.
 Organizational structure determines how

the roles, power and responsibilities are assigned,
controlled, and coordinated, and how information
flows between the different levels of management.
CRITICAL QUESTIONS TO BE ANSWERED BEFORE
DESIGNING ORGANIZATIONAL STRUCTURE
To what degree are

To whom do individuals
activities subdivided
and groups report?
into separate jobs?
How many individuals

On what basis will jobs can a manager
be grouped together? efficiently and
effectively direct?
To what degree will

Where does decision there be rules and
making authority lie? regulations to direct
employees and
managers?
Six key elements of an
organizational structure
 Work Specialization
 Departmentalization
 Chain of command
 Span of control
 Centralization and Decentralization
 Formalization
1. Work Specialization:
 Specialization: The degree to which

tasks in an organization are subdivided
into separate jobs.
 Ford motors production team: Assigns
specialized jobs in a car assembly line
like, right wheel installer, paint shop
engineer, engine designer.
 McDonald’s: At each outlet every
employee works with specialized tasks
like billing, delivering the products,
procurement, cleaning.
2. Departmentalization
Departmentalization: The basis by which
jobs in an organization are grouped together.
 Manufacturing company: Production
team, accountant, supply chain, sales and
marketing as different teams
 Hospital: Billing, Doctors and nurses,
emergency services team, surgery team
 University: Academic team, Marketing and
sales, HR team, operations and logistics.
3. Chain of command
Chain of command: The unbroken line
of authority that extends from the top
organization to lowest echelon and
clarifies who reports to whom.
 Authority: The rights inherent in a

managerial position to give orders and
expect the orders to be obeyed.
 Unity of command: The idea that a
subordinate should have only one
superior to whom he or she directly
responsible.
4. Span of control:
 Span of control: The
number of subordinates a
manager can efficiently and
effectively direct.
5. Centralization:
 Centralization: The
degree to which decision
making is concentrated at a
single point in an
organization
6. Formalization
 Formalization: The degree

to which jobs with within an
organization are standardized
Network Organizational Structure
Product Marketing
Development Firm
Firm (U.K.)
(France)
Core
Firm
(U.S.A.)
Customer
Production
Service
Firm
Firm
(China)
(Canada)
Accounting
Firm
(U.S.A.)
Network Organizational Structure
Many modern organizations follow network organization structure.
While business giants risk becoming too clumsy, the new network
organizations contract out any business function, that can be done
better or more cheaply.
In essence, managers in network structures spend most of their time

coordinating and controlling external relations, usually by electronic
means.
H&M is outsourcing its clothing to a network of 700 suppliers, more

than two-thirds of which are based in low-cost Asian countries.
Not owning any factories, H&M can be more flexible than many other
retailers in lowering its costs, which aligns with its low-cost strategy.
Organizational Culture
 The values and behaviors that contribute to the unique social

and psychological environment of an organization.
 Organizational culture includes
an organization's expectations, experiences, philosophy, and values
that hold it together, and is expressed in its self-image,
inner workings, interactions with the outside world, and future
expectations.
 It is based on shared attitudes, beliefs, customs, and written and
unwritten rules that have been developed over time and are
considered valid.
Seven primary characteristics
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
• Core Values
– The primary or dominant values that are accepted throughout
the organization
• Strong Culture
– A culture in which the core values are intensely held and widely
shared
What Do Cultures Do?
• Culture’s Functions
1. Defines the boundary between one organization and
others
2. Conveys a sense of identity for its members
3. Facilitates the generation of commitment to
something larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control mechanism for
fitting employees in the organization
Culture as a Liability
• Barrier to change
– Occurs when culture’s values are not aligned with the values
necessary for rapid change
• Barrier to diversity
– Strong cultures put considerable pressure on employees to
conform, which may lead to institutionalized bias
• Barrier to acquisitions and mergers
– Incompatible cultures can destroy an otherwise successful
merger
How Culture Begins
 Stems from the actions of the founders:
 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
– Concerned with how well the candidates will fit into the
organization
– Provides information to candidates about the organization
• Top Management
– Senior executives help establish behavioral norms that are
adopted by the organization
• Socialization
– The process that helps new employees adapt to the
organization’s culture
Stages in the Socialization Process
• Prearrival
– The period of learning prior to a new employee joining the
organization
• Encounter
– When the new employee sees what the organization is really
like and confronts the possibility that expectations and
reality may diverge
• Metamorphosis
– When the new employee changes and adjusts to the work,
work group, and organization
Socialization Program Options
 Choose the appropriate alternatives:

 Formal versus Informal
 Individual versus Collective
 Fixed versus Variable
 Serial versus Random
 Investiture versus Divestiture
 Socialization Outcomes:
 Higher productivity
 Greater commitment
 Lower turnover
How Employees Learn Culture
 Stories
 Anchor the present into the past and provide explanations
and legitimacy for current practices
 Rituals
 Repetitive sequences of activities that express and reinforce
the key values of the organization
 Material Symbols
 Acceptable attire, office size, opulence of the office
furnishings, and executive perks that convey to employees
who is important in the organization
 Language
 Jargon and special ways of expressing one’s self to indicate
membership in the organization

Introduction To The Field of Organisational Behaviour: C H A P T E R

Uploaded by

Copyright:

Available Formats

Introduction To The Field of Organisational Behaviour: C H A P T E R

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Introduction To The Field of Organisational Behaviour: C H A P T E R

Uploaded by

Copyright:

Available Formats

C H A P T E R 1

• It looks at employee behavior,

• It examines how individuals

• It is the social system that decides on how

• Though business is an economic entity,

• Society gives freedom for conducting

• When the organizations are

• Businesses are designed to go on forever, though they die

Vision Statement Examples :

Avon: "To be the company that best

Alzheimer's Association: "Our Vision

It is designed to provide clarity of focus

It also creates clarity of value for those

Nissan: "Nissan provides unique and innovative

 Affects how organisations are configured

Inputs Organisation Outputs

Psychology: Drives, perception, attitudes, personality, job stress,

Sociology: Team dynamics, roles, socialization, communication

Anthropology: Corporate culture, organizational rituals, cross cultural

Political Science: Inter group conflict, coalition formation ,

Communication : Knowledge management, electronic mail, corporate

Information Systems: Team dynamics, Decision making, knowledge

Marketing: Knowledge management, creativity, decision making.

Women’s studies: Organizational power, perceptions.

Typically this approach relies upon quantitative data

This dynamic and cyclical view of the research

• This Anchor States that a particular action may have

• In other words no single situations is best in all

Knowledge management efforts typically focus on

Singapore Airlines provides

perceptions and situational

Goal-directed behaviors under

Organizational Performance beyond the required job

Counterproductive Voluntary behavior that potentially

Joining/staying with Goal-directed behaviors under

 Operant versus respondent behaviours

Antecedents Behaviour Consequences

What happens What person What happens

Relevant Effective Frequent

 Stable, long-lasting beliefs

Courtesy of The Warehouse

 Replacing direct supervision

 Demand for ethical practices

 To common man, it means external appearances and behavior,

 Perception is the way of seeing and interpreting things.

 Personality is defined as a dynamic and organized set of

 Personality refers to those characteristics of the person that

 In other words, personality is the set of psychological traits

Following are the factors that

• Family: Families influence the

• Social factors: Socialization starts with

 their sensory impressions in order to give meaning to their environment.

 This theory is all about becoming part of different groups, and

 They suggested that people have an inbuilt tendency to

 Calling someone a Muslim/Christian/ Buddhist/Hindu/

 Your collective identity becomes your in-group. This could be

 This closeness functions to boost our self esteem and to

 A group or individual that poses as a threat to your in-group

 Nowadays we see younger people dividing themselves into