organizational behavior. course objectives identify and describe key issues in organizational...
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ORGANIZATIONAL BEHAVIOR
Course Objectives
• Identify and describe key issues in organizational behavior at the individual, group and organizational level
• Place these issues in organizational and societal contexts
• Develop academic research analysis, reflection, and critical thinking skills
Structure of the course
• Why study OB– Introduction to the course
– What is OB
– Predicting organisational outcomes
• Individuals in organisations– Individual behaviour
– Personality and learning
– Motivation
Structure of the course
• Groups in organizations– Group dynamics and team building
– Leadership
– Power and Politics
• The organizational system– Organizational Culture
– Organizational change and development
– The future of organizational behavior
OB Objectives
• On successfully completing this module students will be able to– Define the field of organizational behaviour
– Discuss the major challenges and opportunities for managers using organisational behaviour concepts
– Discuss why managers require knowledge of OB
– Discuss the importance to managers of productivity, performance, job satisfaction, work practices, absenteeism and job turnover is important to managers.
• Managers are individuals who achieve goals through other people.
• An organisation is a consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set goals
Some Definitions
• Planning• Organising
• Leading• Controlling
Mintzberg’s Managerial Roles
Interpersonal roles (leading*):– Figurehead, leader, liaison
• Information roles (Administering*): – Monitor, disseminator, spokesperson
• Decisional roles (Fixing*):– Entrepreneur, disturbance handler, resource allocator,
negotiator
* terms used by Handy (1985:363)
What is Organisational Behaviour
OB is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organisations, for
the purpose of applying such knowledge towards improving an organisation’s
effectiveness.
We all study peoples behavior
• We observe, sense, listen, ask and read• We learn from the experiences of others• We make generalizations to predict and explain
the behavior of others• Organisational behaviour is attempts to replace
‘intuition’ with a systematic study that looks at cause and effect relationships
Challenges & Opportunities for OB
• Improving people skills• Improving quality and productivity• Managing workforce diversity• Responding to globalisation• Empowering people• Coping with ‘temporariness’• Stimulating innovation and change• Emergence of the e-organisation• Improving ethical behaviour
PsychologyPsychology
SociologySociology
Social Psychology
Social Psychology
AnthropologyAnthropology
Political Science
Political Science
Motivation & learning Personality& perceptionLeadership effectivenessJob satisfaction & job designIndividual decision makingAttitude measurementWork stress
Motivation & learning Personality& perceptionLeadership effectivenessJob satisfaction & job designIndividual decision makingAttitude measurementWork stress
IndividualIndividual
GroupGroup
OrganisationalSystem
OrganisationalSystem
Group dynamicsCommunicationPower& conflict
Group dynamicsCommunicationPower& conflict
Formal organisation theoryOrganisational changeOrganisational culture
Formal organisation theoryOrganisational changeOrganisational culture
Behavioral changeCommunicationGroup processes & decisions
Behavioral changeCommunicationGroup processes & decisions
Comparative attitudesComparative attitudes
Organisational cultureOrganisational culture
Intra-organisational politicsIntra-organisational politics
Study of Organisational
Behaviour
Study of Organisational
Behaviour
BehaviouralScience
Contribution(examples)
Unit of Analysis Output
Organisation systems level
Group level
Individual level
A response that is affected by an independent variable.
The presumed cause of some change in the dependant variable.
Independent variables in Organisational Behavior
Individual level– biographical characteristics, personal characteristics; inherent
emotional framework, values and attitudes & basic ability levels– Perception, individual decision making, learning, motivation
• Group level– Dynamics of group behavior, communication,leadership,power
and politics, intergroup relations & between group conflict
• Organisational Level– Internal organisational culture, organisational structure, work
processes, jobs & HR policy and practices
Dependent variables in OB
– Productivity– Absenteeism– Turnover– Job satisfaction– Organisational citizenship
VAD 314 Organizational Behavior
Organizational Behavior and Organizational Performance
Productivity
• This is a measure of performance effectiveness (achievement of goals) and performance efficiency (the ratio of inputs to output). This is the major concern of organizational behavior.
Absenteeism
• This is the failure attend work. Unexpected absences can disrupt the work of the organization, and reduce quality and quantity of output. This in turn affects the organization’s effectiveness and efficiency, which lowers productivity.
Employee Turnover
• This is a measure of voluntary or involuntary permanent withdrawal from the organization. A high turnover rate can mean increased direct costs (recruitment, selection, training) and lower productivity, through disruption of work processes.
Job Satisfaction
• This is the general attitude that employees have towards their job. It is the difference between the rewards employees receive, and the rewards they believe they should receive. These rewards can be tangible (such as pay and benefits) or intangible (such as status and challenge). There is some evidence that satisfied employees are more productive.
Job Satisfaction
• Mentally challenging work
• Equitable rewards
• Supportive working conditions
• Supportive fellow employees
• Personality-job fit
Organizational Citizenship
• Discretionary behavior that is not part of the job requirements, but promotes the effective functioning of the organization, e.g.– Making constructive statement about the organization
or work group– Helping others in the team– Volunteering for extra job activities– Avoiding unnecessary conflicts– Respecting the spirit of the rules and regulations– Tolerating the occasional work related imposition
Effect of Job Satisfaction on Employee Performance
• Satisfaction & Productivity– Happy employee = a productive employee?
• Little evidence to support a causal link
• Correlations low
• Outside factors also have an impact: job market
• Arguably, rewarding performance (pay, promotion , recognition) improves productivity, and more these rewards also increase satisfaction
Effect of Job Satisfaction on Employee Performance
• Satisfaction & Absenteeism• E.g. Sick leave policies
– Consistent negative relationship between satisfaction and absenteeism, but the correlations are not high
– Dissatisfied employees are more likely to miss work but other factors have an impact on the relationship
Effect of Job Satisfaction on Employee Performance
• Satisfaction & Turnover• Consistent negative relationships,• Higher level of correlation than for absenteeism
• Economic factors• Promotion opportunities• Stress• Non-work issues• Stability• Personality
Effect of Job Satisfaction on Employee Performance
• Job satisfaction and organizational citizenship behavior– Logically should be linked
– Modest overall relationship between job satisfaction and OCB
– Relationship depends on perception of fairness (of the organizations policies procedures etc)
Employee Responses to Dissatisfaction
• Exit– Dissatisfaction expressed by behavior directed towards leaving
the organization
• Voice– Dissatisfaction expressed by active and constructive attempts
to improve conditions
• Loyalty– Dissatisfaction by passively waiting for conditions to improve
• Neglect– Dissatisfaction expressed by allowing conditions to worsen
Organizational Commitment
• Positive emotional attachment held by employees towards their work
– Strong belief in, & acceptance of, the organization’s goals & values by the individual
– Employee’s commitment & willingness to exert consistent & sustainable effort for the organization
– Lower turnover & less absenteeism
VAD 314 Organizational Behavior
The Individual in the Organisation
What Is Perception?What Is Perception?
A process by which individuals organise and interpret their sensory impressions in order to
give meaning to their environment
What one perceives may be substantially different from reality !
Factors that Influence Perception
Factors that Influence Perception
Factors in the perceiver• Attitudes• Motives• Interests• Experience• Expectations
Perception
Factors in the target• Novelty• Motion• Sounds• Size• Background• Proximity
Factors in the situation• Time• Work setting• Social setting
Attribution Theory
• Attempt to explain the ways we judge people, based on the meaning we attribute to their behaviour
• Causes of behaviour can be – External (situation or environment)
– Internal (believed to be under the personal control of the individual)
• Whether attribution is internal or external depends on– Distinctiveness
– Consensus
– Consistency
Attribution Theory – determining how people explain or attribute the causes of an
individual’s behaviour
IndividualBehaviour
Distinctiveness
Consistency
Consensus
External
Internal
External
Internal
Internal
External
High
High
High
Low
Low
Low
Shortcuts to Judging Others
• Selective Perception – People selectively interpret what they see based on their interests, background,
experience, and attitudes.
• Projection – Attributing one’s own characteristics to other people.
• Stereotyping – Judging someone on the basis of the perception of the group to which that person
belongs.
• Halo Effect– Drawing a general impression about an individual based on a single characteristic.
• Contrast Effects – The evaluation of a person may be affected by comparing him or her to others who
rank higher or lower than the individual on the same characteristics
Judgments are important in organisations.
• Employment interview
• Performance expectations
• Performance evaluation
• Employee effort
• Employee loyalty
Evaluative statements or judgements concerning objects, people or events.
Components
• Cognitive - Opinion or belief segment
• Affective - Emotional or feeling segment
• Behavioural - Intention to behave in a certain way toward someone or something.
Attitudes
• Attitudes are evaluative statements concerning objects, people or event
• Attitudes (like values) come from parents, teachers, peer group members etc.
• Attitudes are less stable than values.• Attitudes can directly effect work behaviour
Types of Job Related Attitudes
Types of Job Related Attitudes
Job Satisfaction
Job Involvement
Organisational Commitment
Job satisfaction
• An individual’s general attitude toward his/her job. – A high level of job satisfaction equals positive attitudes
toward the job and vice versa.
• Employee attitudes and job satisfaction are frequently used interchangeably.
Job involvement
• The measure of the degree to which a person identifies psychologically with his/her job and considers his/her perceived performance level important to self-worth.– High levels of job involvement
– Fewer absences and lower resignation rates
• More consistently predicts turnover than absenteeism
Organisational CommitmentOrganisational Commitment
An effective and emotional attachment held by employees towards their work.
Factors
Belief in & acceptance of organisational goals.
Willingness to exert considerable & sustained
effort for organisation
COMMITMENT
Desire to continueto be part of the organisation
Organizational commitment
• Negative relationships between organizational commitment and both
absenteeism and turnover. – Organizational commitment is a better indicator of turnover than
the job satisfaction is
– It is a more global and enduring response to the organization as a whole than is job satisfaction.
• As employment becomes less permanent (casuals, contracts etc.) organisational commitment may now be less important than in the past– May be being replaced by occupational commitment
Any incompatibility between two or more attitudes or between behaviour and attitudes.
Emotions
Affect – a broad range of feelings that people experience
Emotions – intense feelings that are directed to someone or something
Moods – less intense than emotions, and lack a contextual stimulus
Emotional Dimensions
Variety6 universal emotions:
anger, fear, happiness, disgust & surprise
IntensityFrequency & duration
ValuesValues
Basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite previous converse mode of
conduct or end-state convictions.
Values in the Rokeach Value Survey
examples
Terminal values Instrumental values
A comfortable life Ambitious
An exciting life Broad minded
A sense of accomplishment Capable
A world of peace Cheerful
A world of beauty Clean
Equality Courageous
Family security Forgiving
Freedom Helpful
Happiness Honest
Inner harmony Imaginative
Mean Value RankingsExecutivesTerminal Instrumental 1. Self-respect 1. Honest 2. Family Security 2. Responsible 3. Freedom 3. Capable 4. A sense of accomplishment 4. Ambitious 5. Happiness 5. Independent
Activists Terminal Instrumental 1. Equality 1. Honest 2. A world at peace 2. Helpful 3. Family Security 3. Courageous 4.Self-Respect 4. Responsible 5. Freedom 5. Capable
Today’s Dominant Work Values Stage Current Age Dominant Work Values
1. Protestant 55-75 Hard work, conservative, loyalty to organisation
2. Existential 45-55 Quality of Life, nonconforming
seeks autonomy, loyalty to self
3. Pragmatic 35 – 45 Success, achievement, ambition
4. Generation X Under 35 Flexibility, job satisfaction, balanced lifestyle, loyalty to relationships
VAD 314 Organizational Behaviour
Personality and Learning
Objectives
• Personality and Learning– Describe the main dimensions of personality– Identify important dimensions of self-concept
relevant to work– Describe the ‘big five’ personality characteristics– Define the key biographical characteristics that
relate to work behaviour– Discuss how individuals learn in organisations– Discuss how behaviour can be shaped
Personality
• The consistent psychological patterns within an individual that affect the way they interact with others and the situations they encounter.
Personality determinants
Self-concept& self-
development
PersonalitytraitsPerceptions
AttitudesEmotions
Work behavioursJob satisfaction
CommitmentMotivation
Etc.
Personality
Personality determinants
Heredity
Environment
Situation
Dimensions of Self-Concept
• Self-Esteem
• Self-Control– Locus of Control
• Self-Efficiency
• Self Monitoring
• Emotional-Intelligence
SELF ESTEEMSELF ESTEEM
AN INDIVIDUAL’S DEGREE OF LIKE OR DISLIKE FOR THEMSELF.
HIGH SE’S:
• Believe they have greater ability.
• Are less likely to be influenced by
They also -
• Take more risks in job selection.
• Choose more unconventional jobs.
SELF - MONITORINGSELF - MONITORING
Personality trait that represents an individual’s ability to adjust their behaviour
to external situational factors.
CHANGING WHEN YOU NEED TO!
Self Efficacy
• A belief in your own capability to perform a specific task.
• Magnitude – level of difficulty
• Strength – how strongly they believe it
• Generality – the degree generalised across situations
Locus of control – degree of self control
• Internals – believe that they control what happens to them
• Externals – believe that what happens to them is controlled by outside forces such as luck or change
EXTERNAL VERSUS INTERNALSEXTERNAL VERSUS INTERNALS
PEOPLE who rate as “EXTERNALS” tend to;
BE LESS SATISFIED WITH THEIR JOBS
HAVE A HIGHER ABSEENTEESIM RATES
MORE ALIENATED FROM WORK SETTINGS AND LESS INVOLVED IN THEIR JOBS.
……………………….than “INTERNALS”
Emotional IntelligenceEmotional Intelligence A person’s ability to be aware of, manage and use emotions appropriately in dealing with people in different situations
Five Main Skills
1. Self awareness of one’s own emotions
2. Managing feelings appropriately
3. Motivating oneself for a worthwhile goal
4 Empathy and understanding for others feelings
5. Able to interrelate well and work with others
Levels of Self Development
The experience of ‘self’ and how it relates toand is integrated with the external world.
Three Broad Levels
Pre-egoic
Egoic
Transpersonal
Possibly 5 – 14 specificstages of ego development& trans-ego developmentwithin these 3 levels; eg. Emotional –impulsive Shadow, Rational ego Integrated ego, etc.
The ‘Big Five’ Personality Traits
• Extroversion
• Agreeableness
• Conscientiousness
• Emotional stability
• Openness to experience
Other Personality Traits – relevant to the workplace
• Risk taking – willingness to take risks
• Machiavellianism – pursuing self-interest
• Type A/B personality– Type A – aggressively involved in an incessant
struggle to achieve more in less & less time
MACHIAVELLIANISMMACHIAVELLIANISM
is the degree to which an individual is pragmatic, maintains emotional distance and
believes that ends can justify means
HIGH - MACHS
Manipulate more, win more, are persuaded less & have greater influence over other people
“IF IT WORKS, USE IT”
PROTECTION AGAINST HIGH MACHSPROTECTION AGAINST HIGH MACHS
1. EXPOSE THEM TO OTHERS.
• Broken promises & lies.
• Manipulative strategies.
2. PAY ATTENTION TO WHAT THEY DO, NOT WHAT THEY SAY.
• Actions speak louder than words.
3. AVOID SITUATIONS THAT GIVE HIGH MACHS THE EDGE.
• Don’t make hasty decisions.
• Don’t take them on one-to-one.
• Invite others
Biographical Characteristics that Influence Work Behaviour
• Age
• Gender
• Marital Status
• Seniority
• Physical Abilities
Learning
Definition: any relatively permanent change inbehaviour that occurs as a result of experience
Theories:Classical conditioningOperant conditioningSocial learning
Shaping the Behavior of Others
• Positive reinforcement
• Negative reinforcement
• Punishment
• Extinction
Schedules of Reinforcement
• Intermittent reinforcement• Desired behaviour reinforced enough to make behaviour worth
repeating but not every time demonstrated
• Fixed-interval schedule• Rewards are spaced at uniform time intervals
• Variable-interval schedule• Rewards distributed in time so reinforcements are unpredictable
• Fixed-ratio schedule• Rewards are initiated after a fixed number of responses
• Variable-ratio schedule• Reward varied relative to behaviour of the individual
Behavior ModificationOB Mod
– The application of reinforcement concepts to individuals in the work setting
• Identifying critical behaviors
• Developing baseline data
• Identifying behavioral consequences
• Developing & implementing intervention strategy
• Evaluating performance improvement
Organization applications
• Lotteries to reduce absenteeism
• Well pay vs sick pay
• Employee discipline
• Developing training programs
• Creating mentoring programs
• Self management
VAD 314 Organizational Behaviour
Leadership
Objectives
• On completion of this topic you should be able to:– Describe the nature of leadership– Distinguish between management and leadership– Summarise the conclusions and limitations of trait
and behavioural theories– Describe the contingency, situational and path-goal
theories of leadership– Explain the value of transactional and
transformational leadership– Describe eight characteristics of the best leadership
development processes
Leadership
The ability to influence and develop individuals and teams to achieve goals that
contribute to a worthwhile purpose.
Management & Leadership
Managers who are not leaders
Leaders who are not managers
Managers who are also leaders
Leadership
Creates change, often dramatic change & helps the organisation adapt to the changing environment.
Direction Setting– Creates a vision of the future for a product, activity or
organization
Aligns People & Systems– Communicates the vision and strategies through words &
deeds so that relevant people understand and accept direction
Motivates and Inspires– Energising individuals so that they achieve the vision despite
bureaucratic constraints
Management
Creates consistent and orderly results. Helps an organization run efficiently, on-time and on-budget
Planning and Budgeting– Establish detailed steps and timetables for achieving
specific results
Organising and Staffing– Creating the structure of jobs needed to implement the
plan
Controlling– Monitoring results, spotting deviations and making
corrections
Are There Born Leaders?The Biological Basis of Leadership
• Serotonin –• improves sociability, controls aggression,
• reduces overreaction to petty, irrelevant stresses
– Studies• Leader monkeys had higher levels of serotonin
• Humans – Positive relation on scores of Leadership Ability
– Positive relationship of performance to serotonin
– University leaders had highest level of serotonin
– Increases in people who practise meditation
Are There Born Leaders?
Trait Theory • Leaders have certain traits, e.g.
– Honesty and Integrity
– Intelligence
– Self – Confidence
– Emotional maturity
– Stress tolerance
– Task – relevant knowledge
– Ambition and high energy
– Desire to lead
• Research suggest that traits contribute les than 10% of what makes a successful leader
Do Leaders share the same Characteristics?Charismatic Leadership
– Self – confidence– Vision– Ability to articulate the vision– Strong convictions about the vision– Behavior that is out of the ordinary– Perceived as being a change agent– Environment sensitivity
INSPIRATIONINSPIRATION
Displays empathyDramatises mission
AWEAWE
Projects self-assuranceEnhances image
EMPOWERMENTEMPOWERMENT
Awareness of follower competencyOpportunities to experience success
Follower beliefs relatedto leader behaviour
EXCEPTIONALLYHIGH EFFORT
HIGH COMMITMENT
WILLPOWER TO TAKE RISK
Charismatic Leadership
Follower behaviour
Do Leaders Emerge?Emotional Intelligence
• Evidence that emotional intelligence predicts leadership who can become a successful leader
• Self – awareness
• Self – management
• Self – motivation
• Empathy
• Social skills
Behavioral Theories
– Theories identifying behaviors that differentiate effective from ineffective leaders.
• Ohio State studies
• The University of Michigan studies
• The Managerial Grid
The Ohio State Studies
– Ohio State studies (late 1940s)– Sought to identify independent dimensions of
leader behavior– Two categories
• Initiating structure
• Consideration
Ohio State Studies Dimensions
– Initiating structure - the extent to which a leader defines and structures his or her role and those of subordinates to attain goals
– Consideration - the extent to which a person has job relationships characterized by mutual trust, respect for subordinates’ ideas and regard for their feelings
The University of Michigan Studies
– Employee-orientated - emphasized interpersonal relations, took a personal interest in the needs of subordinates and accepted individual differences
– Production-orientated - emphasized the technical or task aspects of job, concerned with accomplishing tasks, regarded group members as a means to that end
(1,9) Country ClubManagement
(9,9) TeamManagement
(5,5) Middle of theRoad Management
(1,1) ImpoverishedManagement
(9,1) TaskManagement
1 2 3 4 5 6 7 8 9
1
2
3
4
5
6
7
8
9
Concern for production
Con
cern
for
peo
ple
Managerial Grid
Weakness of Behavioural Models
– Behavioural Models ignore the context:
• Situational Factors that influence leadership performance
Contingency and Situational theories
– Effectiveness depends on a match between the leader’s style and situational factors
– Effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.
Fiedler’s Model
Fiedler’s Situational Factors
– Leader – member relations• Degree of confidence, trust & respects
subordinates have in their leader
– Task structure• Degree the job assignments are procedurised.
– Position power• Degree of influence a leader has on power variables: hiring,
firing, discipline, promotion & salary increases
Fiedler's LPC Scale
– Leader’s style• Relationship-oriented leader is concerned with
people
• Task-oriented leader is primarily motivated by task accomplishment
– The least-preferred co-worker (LPC) questionnaire is used to measure whether a person is task or relationship orientated.
Fiedler’ Model
GoodGood
PerformancePerformance
FavourableFavourable
PoorPoor
ModerateModerate UnfavourableUnfavourable
Relationship-oriented
Task-oriented
Hersey and Blanchard’s Situational Theory
• Subordinates vary in their maturity level
• People have low task maturity due to– Limited skills
– Lack of training
– Insecurity
• The leader should evaluate subordinates and adopt the appropriate style
• Validity of the model– Very ‘popular’ model
– Widely used I organisations (e.g. Management Training)
– Empirical support is weak
The situational model
M1M2M3M4High Low
Maturity of followers
Moderate
High taskandhigh
relationship
High taskand low
relationship
Highrelationship
andlow task
Lowrelationship
andlow task
LowLow
HighHigh
HighHighTASK (Directive Behavior)TASK (Directive Behavior)
DelegatingDelegating
ParticipatingParticipating
SellingSelling
TellingTelling
SupporTive
Beh
RELATIONSHIP
Path-Goal TheoryLeader’s role help subordinates along the path to the goal
• Leader behaviour is motivational to the degree it • Makes subordinate need satisfaction contingent on effective
performance• Provides the coaching guidance, support and rewards that are
necessary for effective performance• Leader behaviour can be
– Directive– Supportive– Participative– Achievement oriented
• Leader behaviour is moderated by – Environmental contingency factors– Subordinate contingency factors
Path – Goal Theory
Leader behavior:•Directive
•Participative•Supportive
•Achievement Oriented
Outcomes•Performance•Satisfaction
Environmental Contingency Factors:•Task structure
•Formal authority system•Work Group
Subordinate Contingency Factors:•Locus of control
•Experience•Perceived ability
Predictions in path goal theory
Transactional & Transformational Leadership
• Transactional Leaders – Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and task requirements.
• Transformational Leaders– Leaders who provide individualised consideration and
intellectual stimulation, and who possess charisma.
Effective Leadership
Personality Biological • Honesty and integrity Self-efficiency Chemical factors such as• Intellectual intelligence Energy and ambition serotonin and testosterone• Emotional intelligence Charisma• Self-monitoring Desire to lead
Behavioral style•Able to be task-&-people-orientated•Men more task-and-goal-directed•Women more facilitative and relationship-directed
Situational skills• Able to vary style (directive and supportive) to fit:• Follower’s motivation and competence• Task urgency• Power• Leader – follower relations• Ability to achieve subordinates goals• Type of decision needed
Transformational Ability• Motivating vision• Simulates followers to think• Individual consideration
Best Practice Leadership Development
Closely aligned with and used to support corporate strategy. Senior leaders lead the leadership development program. Leadership competencies are defined for successful leaders in
the organisation. It’s best to grow your own. Needs action learning. Linked to an organisation’s succession planning. A two-way process: senior-level support and provides
executives with results that they need.
Assess, evaluate, measure for value added.
VAD 314 Organisational Behaviour
Organisational Culture
Learning Objectives
• Define common characteristics of organisational culture
• Contrast strong and weak cultures
• Hofstede’s four cultural dimensions
• Functional and dysfunctional effects of organisational culture on people
• Identify factors which determine and maintain organisational culture
• Discuss the impact of religions on culture
• Describe the main factors on organisation’s culture
• Outline varoius socialisation alternatives
• Describe how culture is transmitted
What is Organisational Culture?
• A common perception held by the organisation's members; a system of shared meaning.
ORGANIZATIONAL CULTURE
•Organizational Culture is the shared norms and values that guide an individuals behavior in an organization. It is influenced by
Observed behavioral regularities Norms Dominant Values Philosophy Rules Organizational climate
ORGANIZATIONAL CULTURAL STRENGTH
• The strength of a culture is determined by
• Sharedness: the degree to which the organizational members have the same core values: rewards and new employee orientation influence this factor.
• Intensity: the degree of organizational member commitment to the values; reward influences this factor.
Culture Is a Descriptive Term
• Culture is composed of perceptions;
• How employees see their organisation
Key Characteristics Defining an Organisation’s Culture
• Innovation & risk taking
• Attention to detail
• Outcomes orientation
• People orientation
• Team orientation
• Aggressiveness
• Stability• Values
Hofstede’s Four Cultural Dimensions
• Individualism versus Collectivism
• Power Distance
• Uncertainty Avoidance
• Quantity versus Quality of Life
HOFSTEDE’S FOUR CULTURAL DIMENSIONS
IndividualismA loose social framework that emphasisespeople caring for themselves and theirimmediate family
vs. CollectivismA tight social framework in whichpeople expect others to look after themand protect them
High Power DistancePeople in society tend to accept that power ininstitutions and organisations is distributedunequally
vs. Low Power DistancePeople in society downplay theinequities that exist within institutionsand organisations
High Uncertainty AvoidanceThe society feels threatened by uncertain andambiguous situations and tries to avoid them
vs. Low Uncertainty AvoidanceThe society sees uncertainty as achallenge and opportunity
MasculinityDominant societal values are assertiveness,acquisition of money and things, and not caringabout others and the overall quality of life
vs. FemininityDominant societal values arerelationships, concern for others andoverall quality of life
* Using the word masculinity and feminity to describe these values is inherently sexist. Clearly both males andfemales can and do possess these values.
Hofstede’s Four Dimensions
StrongLowSmallIndividualUSA
WeakLowSmallInidvidualSweden
ModerateLowLargeCollectiveSingapore
StrongLowModerateIndividualEngland
StrongModerateSmallIndividualAustralia
Quality
Of life
Uncertainty
Avoidance
Power
Distance
Individual/Collective
Country
Culture's Functions
• Boundary defining role• Sense of identity for organisation members• Facilitates the generation of commitment to
something larger than individual self interest• Enhances social system stability• Sense making & control mechanism that guides
and shapes attitudes & behaviours of employees
Culture as a Liability
• When shared values do not contribute to organisational effectiveness
• Barrier to change
• Barrier to diversity
• Barrier to acquisition and mergers
Maintaining Culture
• Selection
• Top management
• Socialisation
A Socialisation ModelA Socialisation Model
PrearrivalPrearrival EncounterEncounter MetamorphosisMetamorphosis CommitmentCommitment
TurnoverTurnover
ProductivityProductivity
Socialisation Process
Outcomes
How Employees Learn CultureHow Employees Learn Culture
• Stories• Rituals• Material symbols• Language
They didthat?
How Organisational Cultures Form
How Organisational Cultures Form
Philosophyof
organisation’sfounders
Philosophyof
organisation’sfounders
Selectioncriteria
Selectioncriteria
Topmanagement
Topmanagement
SocialisationSocialisation
Organisationculture
Organisationculture
Cultural TypesCultural Types
SolidarityLow High
High
Low
Soc
iab
ilit
y
Fragmented Mercenary
Networked Communal
Unilever, Heinieken
Mars, Campbell SoupKomatsu
Universities, Law firms
Hewlett Packard, Johnson & Johnson
How Organisational Cultures Affect Performance & Satisfaction
Objective factors• Member identity• Group emphasis• People focus• Unit integration• Control• Risk tolerance• Reward criteria• Conflict tolerance• Means-ends orientation• Open-system focus
Objective factors• Member identity• Group emphasis• People focus• Unit integration• Control• Risk tolerance• Reward criteria• Conflict tolerance• Means-ends orientation• Open-system focus
Organisationalculture
Organisationalculture
Perceived as
Hi
Lo
Hi
Lo
PerformancePerformance
SatisfactionSatisfaction
VAD 314 Organizational Behavior
Organizational Development
Objectives
• Identify the major forces for change
• Contrast first-order and second-order changes• Summarize the resistance to change• Emotional responses to change• Organizational development and it’s values• OD interventions• Seven steps necessary to implement a change program• Research on organizational change and development
Forces for Change• Nature of the workforce
– More cultural diversity
• Technology – Faster and cheaper computers
• Economic shocks– Asian financial markets crisis
• Competition– Global competitors
• Social trends– Attitudes towards alternate lifestyle choices
• World Politics– Collapse of the army’s control of Indonesia and the liberation of East
Timor
First and Second Order Change
• First-Order Change – Linear and continuous change
• Second Order Change– Change that is multidimensional, multilevel,
discontinuous and radical
Individual Resistance to Change
IndividualResistance
Economic Factors
Fear of the unknown
Security
Habit
Selective Information Processing
Organizational Resistance to Change
OrganizationalResistance
Threat to enterprise
Threat to established power relationships
Group inertia
Unlimitedfocus of change
Structural inertia
Threat to establishedResource allocations
Emotional Responses to Change
• The change grid– The four stages emotional phases people
experience when going through change
• Phase 1: denial• Phase 2: resistance• Phase 3: exploration• Phase 4: commitment
Emotional Reaction Change Cycle
Deny
Resist
Explore
Commit
Lewin’s three-step model
UnfreezingUnfreezing MovementMovement RefreezingRefreezing
Force Field Analysis
- Unfreezing the Status Quo
Time
StatusQuo
DesiredState
RestrainingForces
Driving Forces
New ideal position
Organizational Development
• A collection of planned-change interventions, built on humanistic-democratic values, that improves effectiveness & employee well being.
– Values.– Respect for people.– Trust and support.– Power equalization.– Confrontation.– Participation.
OD Interventions
• Group feedback sessions
• Survey feedback
• Process consultation
• Team building
• Intergroup development
Changing Attitudes Through Persuasive Messages
• Establish your credibility• Use a positive, tactful tone• Make your presentation clear• Present strong evidence to support your position• Tailor your argument to the listener• Use logic• Use emotional appeals
Change
Successful Change = What’s Needed?
Pressurefor
Change
ClearSharedVision
ActionableFirst
Steps
Capacityfor
Change
Modelthe
Way
Reinforce&
SolidifyChange
Evaluate&
Improve
+ + + + + +
Symptoms When Elements Are Missing
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+
+
=
=
=
=
=
=
=
+
+
+
+
+
+
+ + + +
+ + + +
+ + + +
+ + + + +
+
+
+ + + + +
+ + + + + +
+ + + + + +
Pressure
f or Change
Pressure
f or Change
Pressure
f or Change
Pressure
f or Change
Pressure
f or Change
Pressure
f or Change
M issing
Clear S hared
Vision
Clear S hared
Vision
Clear S hared
Vision
Clear S hared
Vision
Clear S hared
Vision
M issing
Clear S hared
Vision
Capacity For
Change
Capacity For
Change
Capacity For
Change
Capacity For
Change
M issing
Capacity For
Change
Capacity For
Change
A ct ionable
First S teps
A ct ionable
First S teps
A ct ionable
First S teps
M issing
A ct ionable
First S teps
A ct ionable
First S teps
A ct ionable
First S teps
M odel
T he W ay
M odel
T he W ay
M issing
M odel
T he W ay
M odel
T he W ay
M odel
T he W ay
M odel
T he W ay
Reinf orce
and S olidif y
Change
M issing
Reinf orce
and S olidif y
Change
Reinf orce
and S olidif y
Change
Reinf orce
and S olidif y
Change
Reinf orce
and S olidif y
Change
Reinf orce
and S olidif y
Change
M issing
Evaluate and
I mprove
Evaluate and
I mprove
Evaluate and
I mprove
Evaluate and
I mprove
Evaluate and
I mprove
Evaluate and
I mprove
Bottom of the Box
A Quick StartThat Fizzles
Anxiety,Frustration
Haphazard Efforts,False Starts
Cynicism &Distrust
Go Back to Old Ways
Skeptical andStagnate
Contemporary Change Issues
• Innovation
• Creating a learning organization
• Cultural aspects of change
• Do change programs produce change?
• Evaluating change