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2009
Organisational behaviour Tumelo L. Matjekane
© Tumelo L Matjekane | 2009 Page 2 of 12 Organisational behaviour
The basics of
organisational behaviour
Personality and personal traits
Locus of
control
Extroversion and
introversion
Socially acquired
needs
Machiavellian
personality
Internal
External
Values
Employee work
attitudes
Organisational
commitment
Job involvement
· Buying into organisational
objectives
· Willingness to exert
considerable effort on
behalf of company
· Desire to remain part of
company
· How much an
employee identifies
with his / her job
· Active participation
in the job
· Self worth
Job satisfaction
Determinants
Consequences
· Years in career
· Expectations
· Organisational
determinants
Ø Supervision
Ø Job challenge
Ø Job clarity
Ø Incentives
· JDI
· Minesota
satisfaction
questionnaire
Job satisfaction
and performance
Extrinsic
and intrinsic
rewards
Measurements
Terminal
values
Instrumental
values
Implications of
global organisation
· Achievement
· Social status
· Family safety
· Equality
· Prosperity
· Wisdom
· Friendship
· Freedom
· etc
· Ambition
· Competence
· Cleanliness
· Courage
· Intelligence
· Self-control
· Politeness
· etc
· Be open-minded
· Don’t pre-judge others
business customs as
immoral
· Avoid rationalising
questionable actions
· Search for legitimate ways
to operate within others
ethical points of view
· Refuse to do business
when stakeholders actions
violate the law
· Conduct business as
openly and honestly as
possible
· High mach
· Low mach
· Manipulation
· Eg. Jeffrey Skilling,
Kenneth Lay
(Enron)
· External stimulation vs
internal stimulation
· Search
diligently
for new
knowledge
· Act quick
· Personal
achievement
· More comfortable
with change
· Act quickly to cut
career losses
· Researches
prospective
employer
Relatively permanent set of
psychological characteristics that create,
guide and monitor human behaviour
McCLELLAND
Need for
achievement
Need for
affiliation
Need for
power
Exist in people at deeper
psychological level
· Improves resistance
to job stress
· Mental and physical
health
· Low absenteeism
· Low employee
turnover
Facets of job
satisfaction
· Satisfaction with work itself
· Satisfaction with pay
· Satisfaction with fellow
workers
· Satisfaction with supervision
· Satisfaction with promotion
© Tumelo L Matjekane | 2009 Page 3 of 12 Organisational behaviour
Stress and well-being at work
(Japanese -Karoshi )
Job stress and
its components
Down sizing?
Stress
response
General
adaptation
syndrome
Environmental
factors
A model of causes and
consequences of stress
· Headache
· Hypertension
· Heart disease
Organisational programmes
of wellness and job stress
management
Individual approaches
to managing stress
Stressors
· Mental and physical
responses:
· Distress (negative
response)
· Eustress (positive
response)
HANS SELYE
Exercise
Diet
Relaxation
Professional
help
Opening up
Causes of
stress
Individual
differences
Consequences
of stress
Organisational
factors
Individual
factors
Physiological
symptoms
Psychological
symptoms
Behavioural
· Productivity level
· Attendance pattern
· Quitting the job
· Accident
· Substance abuse
· Sleep disturbances
· Depression, anxiety
· Declines in job
satisfaction
· Perception
· Job experience
· Locus of control
· Type A behaviour
· Adaptive type A
· Family problems
· Financial problems
· Task demands
· Role demands
· Interpersonal
· Organisational structure
· Organisational leader
style
· Organisational lifestyle
stage
· Economic uncertainty
· Political uncertainty
· Technological
Micro-
environmental
· Noise
· Stuffy room
· The process
whereby
humans adjust
to stressors in
the environment
· A work life balance
· Corporal wellness plans
· We are what
we eat!
· Prayer
· Meditation
· Confiding
in others
· Employee
assistance
programmes
· Creates stress
Job security vs
employment
security
Reasons
· Cost cutting
· Deregulation
· Merger-mania
· Small is beautiful
· Experience and
knowledge
HOLMAN
JENKINS JNR
· Unfair and
demanding
bosses
· Un-supporting
and abrasive
co-workers
© Tumelo L Matjekane | 2009 Page 4 of 12 Organisational behaviour
Motivation theory
Content theory
Environmental
theory
Abraham
Maslow’s
hierarchy
Process theories
Frederick
Herzberg’s 2
factor theoryGoal theory
Behaviour Modification
Continuous
re-enforcementsPartial
re-enforcements
Number of behaviour occurring
before re-enforcement
Consequences occur
predictably after each
relevant behaviour
Expectancy
theory
· Physiological
· Safety
· Belongingness
· Esteem
· Self actualisation
Hygienes
Motivators
· Work environment
· Job security
· Company policies
· Pay
· Peer relations
· Supervision
· Status
· Work itself
· Promotion
· Challenges
· Achievement
· Professional
growth
· Responsibility
· Recognition
B.F. SKINNER
Interval
schedule
Ratio
schedule
After a certain
number of behaviours
· + Re-enforcement
· - Re-enforcement
· Extinction
· Punishment
Organisational factors
that influence motivation
· Role ambiguity
· Role conflict
· Organisational
appraisal system
· Reward system
· Job design system
· SMART
· Streching
· Agreed
STACY ADAMS
Equity theory
Benevolents
Equity
sensitives
Entitled
Instrumentality
(+ / -)
Valance
(+ / -)
1st level and 2
nd
level outcomes
E.C. TOLMAN
Personal
attractiveness of
different outcomes
Motivation explained
by organising human
needs into 5 levels
The level of experienced
job satisfaction depends
on the availability of
hygienes and motivators
· A satisfied need ceases
to motivate behaviour
at that need level
· Unsatisfied employee
needs lead to
undesirable outcomes
at work
· People strive to move
up the hierarchy
· Needs are not usually
completely satisfy
· Unmet needs – more
motivating
Intrinsic
Extrinsic
Motivation sustains our behaviour
and keeps it systematic and focused
Reward after given
elapsed time
Fixed interval Variable interval
Links consequences
to given number of
behaviour
Based on
average number
of response
Cultural differences
in motivation
Methods:
Focuses on observable
employee behaviour
Variable ratioFixed ratio
Constant amount of
time passes before
consequence
Consequence
after variable
amount of time
· 1st level = effort
· 2nd
level = results
· Personal belief that 1st
level outcomes lead to
2nd
level outcomes
· How motivated behaviour occurs
at work
· How that behaviour can be
channelled and directed
· Explains turnover, absenteeism,
career choice...
· Comfortable · Comfortable
with ratio
which exceeds
that of others
· Prefer equity
based on
original
formulation
· Social comparisons in work settings
· + inequity: more rewards than others
· - inequity: fewer rewards than others
© Tumelo L Matjekane | 2009 Page 5 of 12 Organisational behaviour
Motivation theory
Performance
appraisalGoal setting and
Management by
objectives (MBO)
Properties of good
performance
appraisal system
· Validity
Ø Content
Ø Empirical
Ø Construct
Ø Convergent
Ø Discriminant
· Consistency
· Stability
PETER DRUCKER
Errors?
Performance
appraisal methods
· Personal bias
· Halo effect
· Recency error
· Central tendency
· Strictness /
leniency errors
· Similarity error
· Forcing the rating
to match criteria
· Absolute standards
· Graphics scales
rating system
· Behaviour anchored
rating scale (BARS)
Goal setting
theory
Management
by objectives
· An organisational
application of the
goal setting theory
· A process which
develops self
control in managers
Pillars of
MBO
Generic
MBO steps
· Employees perform better
when they know what is
expected of them
· Most employees prefer
self-determination at work
· Skilled workers can be
motivated by well-timed
formal and informal
feedback
· Employees prefer intrinsic
and extrinsic rewards that
are consistent with their
performance levels
· Analyse
· Plan
· Define
· Articulate
· Reach mutual
agreement
· Informal review and
revision
· Formal review
Goals
Goal setting
system
SMART
Aspects of
goal setting
process
· End states
· Clearly specified
difficult goals
result in greater
performance
improvement than
easy goals stated
in general terms
· Increase motivation and
job performance
· Reduce stress of
conflicting or confusing
expectations
· Improve accuracy and
validity of performance
evaluation
EDWIN LOCKE
· Environmental issues
· Goal setting process
· Goal attributes
· Employee intentions
· Outcomes
· Specific
· Measurable
· Achievable
· Resource based
· Time specific
Rewards and
reward systems
See page 4b
© Tumelo L Matjekane | 2009 Page 6 of 12 Organisational behaviour
Rewards and
reward systems
Extrinsic
Given to the
employee by the firm
Classification
Cost savings
plans
Individual and
group based
reward system
Company pay
practices
Distributing
rewards in
organisations
Intrinsic
Associated with
the job itself
Direct
compensation
Indirect
compensation
Non-financial
rewards· Salary
· Performance
bonus
· Given due to employee’s
organisational level
· Office
furnishings
· Titles...
· Performance
· Effort
· Seniority
· Equality
· Power and influence
· Cafeteria-style fringe
benefits
· Lump sum pay system
· Skill based compensation
· Accumulating time off
· All salaried team
· Open salary information
Profit sharing
plans
Depends on health
of economy
Rucker planScanlon plan
(gains sharing)
· Production committee
· Screening committee
· Lowering costs and
information innovation
· Bonus usually 25 - 50%
of savings
Motivation theory (cont)
Performance
appraisal
Goal setting and
Management by
objectives (MBO)See page 4a
See page 4a
Reduce labour
costs
· In self directed team
environment
· Measures the difference
between sales income
from goods produced
and the cost of material
supplies including payroll
· Value added by labour
© Tumelo L Matjekane | 2009 Page 7 of 12 Organisational behaviour
Job design and employee
reaction to work
Job design
principles
Vertical job
loading
· 4 day work week
· Job sharing
· Telecommunication
· Flexi time
The team approach
to job design
Cross
training
Job
enlargement
Job rotation
Other approaches
The linking of specific task behaviours to jobs, followed
by the application of work techniques, equipment and
job control procedures to job and its activities
Horizontal
increases
Job
enlargement
Cross training
Job rotation
Quality of work life
(QWL)
Autonomous work
groups / self
directed teams
TAVISTOK INSTITUTE
OF HUMAN RELATIONS
· Social and interpersonal
· Operational, equipment
Socio-technical
system theory
HACKMAN
Likert’s system four
organisations vs
system 1
· Increases the
number of work
activities in a job
· Decrease the extent
of boredom and
overspecialisation
· Exposes workers
to a variety of
specialised jobs
over time
· Employees are
trained in different
specialised work
activities
Job design and
Herzberg’s two
factor theory
· Skill variety
· Task identity
· Task significance
· Social opportunities
Job content
Job range Job depth
· Autonomy
· Feedback
The number of
tasks an employee
performs
The amount of
discretion which an
employee has to
select various job
procedures to
accomplish work
The subjective
aspects of the
job and the
social setting in
which it is
performed
· Changes which
influence the
planning and
doing components
of work
· Skill based
learning
· Employees and
bonuses and
rises when
acquiring new
skill
· Changes nature of
work by
eliminating
overspecialisation
· Decrease boredom
© Tumelo L Matjekane | 2009 Page 8 of 12 Organisational behaviour
Work group dynamics
Types of groups
Work group
structure
Positional
status
Decision making
in groups· Work / group
· Task / command group
· Informal group
· Project team
BRUCE W. TUCKMAN
Brainstorming
Managing groups
Group size
Group size and
performanceNominal group
technique
Delphi
technique· Composition
· Cohesiveness
· Norms
· Groupthink, for eg
“Bay of pigs” (Cuba)
and Vietnam war
Group size and
participation
Group size
and internal
conflict
· Phillips 66
· Stop and go
· Reverse
brainstorming
Work group
structure
· Forming
· Storming
· Norming
· performing
Guidelines for reducing
process losses
Intergroup behaviour
and performance
Decision making in
teams (participative)
Competition
and conflict
STEERS AND BLACK
· Interdependence
· Information flow
· integration
· Rules and procedures
· Member exchange
· Linking roles
· Task forces
· Decoupling
The normative decision
model
- The Vroom-Yetton-Jago
Managing
conflict within
and between
groups
Two
organisational
views on conflict
Contemporary
Traditional
· Avoiding
· Accommodating
· Forcing
· Compromising
· Collaboration
· Conflict viewed
as useful
deviation from
the status quo· Encourage
suppression
of conflict
· The 5 forms of decision making:
ØAI: manager takes decision
alone
ØAII: manager seeks info from
subordinates, then decides
ØCI: manager explains problem to
subordinates in 1 to 1 format
ØCII: manager explains problem
to subordinates in group format
ØGII: manager explains problem
to subordinates in group
format, then makes final
decision
Three prevailing
group interaction
requirements
Pathway to effective intergroup
relations based on level of task
complexity and uncertainty
· Define the workgroup
task / problem carefully
· Don’t jump to idea
evaluation before idea
evaluation has created
numerous alternatives
· Avoid group think
· Manage the norms of
the group by making
valued rewards
contingent on high
quality group
performance
· Make group level
rewards contingent on
the group’s contribution
to work unit success
· Email and web
· Minimise verbal
interaction among
members
· Group no larger
than 9 people· Conflict increases
with size
· Contact and duration
decrease as group
size increases
· Range of abilities,
talents and aptitudes
increase with size
· Expresses the
amount of
responsibility
© Tumelo L Matjekane | 2009 Page 9 of 12 Organisational behaviour
Power, politics, leadership,
entrepreneurship
Power vs
authority
Politics
Using power
ethially
Leadership
MINTZBERG
Roles of the
manager
Approaches to
leadership
· Interpersonal
· Informational
· decisional
· Approved methods and
approved outcomes
· Approved methods and
unapproved outcomes
· Unapproved methods
and approved outcomes
· Unapproved methods
and unapproved
outcomes
Behavioural
approach
How subunits
gain power
Sources of
power
How to gain
power (personal)
Trait
approach
Situational
approach
· Punishment used
consistently, uniformly
and privately
· Communicate well and
respect subordinates
· Scarcity
· Uncertainty
· Centrality
· Absence of
substitutes
· Build an image of success
· Create obligation in others
· Identify with powerful people
· Giving excellent performance
· Limiting access to information
· Controlling supplies
· Developing a network
· Re-organising of the job
· Taking risks and being creative
· Being a knowledge worker
· Manipulating rules
· Controlling personal decisions
· Controlling financial resources
· Managing your boss
· Reward power
· Coercive power
· Legitimate power
· Referent power
· Expert power
BENNIS AND NANUS
OHIO STATE
UNIVERSITY
· Logical thinking
· Persistence traits
· Empowerment
· Self control
How managers
play politics
· Whistle blowing
· Line vs staff conflict
· Sponsorships and
coalition building
· Insurgency / resisting
auority
KURT LEWIN
· Initiating
structure vs
consideration
· Autocratic
· Democratic
· Free reign
Fielder’s
contingency
theory
House’s path-
goal theory
· Relationship between
leader and members
· Task structure
· Position of power
· Directive
· Supportive
· Participative
· Achievement
orientated
Least preferred
co-worker (LPC)
questionnaire
Relationship
orientated
Task
orientated
Entrepreneurship
What is it?
5 Myths
Sources of
powerThe creation of
wealth by
assuming risk
through equity,
time or career
commitment to
add value to a
service or product
· Doers not thinkers
· Are born not made
· All you need is money
· All you need is luck
· Entrepreneurial profile
· Idea champion
· Sponsor
· Godfather
· Green house
© Tumelo L Matjekane | 2009 Page 10 of 12 Organisational behaviour
Organisational design
Service orientated
organisation
Organisational
structure
The responsive
organisation
IVANCEVICH
& MATTESON
Span of
control
Boundary-less
organisation
Delegation
of authority
Functional
design
· Teams and task forces
· Direct supervision
· Standardisation
· Work processes
· Outputs
· Performance appraisal
· Management information system
Aspects of
organisational design
Division
of labour
Departmentalisation
Territorial
design
Product
divisional
design
Matrix
departmentalisation
Centralisation
Decentralisation
Coordination
and control
Inter-organisation
design
LAWRENCE
& LORSCH
Vertical coordination
mechanism toolsHorizontal
coordination
mechanismProcess
control Results
control· Direct contact -
Galbraith
· Liaison roles
· Cross functional teams
· Permanent teams
Creating a
service driven
organisation
· Conduct service
audit
· Well conceived
strategy for service
· Customer oriented
front line people –
training needed
· Customer friendly
system
· For capturing
competitive advantage
· Simplify and delayer
· Re-assign supporting
staff
· Widen span of control
· Empower workforce
· Create team based
work system
Achieving a
responsive
organisation
· No distinction between
leaders and followers
· Flexible and adaptable
· Authority boundary
· Task boundary
· Political boundary
· Identity boundary
TOM PETERS
· spececialisation
· Motivates
· Managers can’t do
all
· Leads to promotion
and pay rises
· “The rule of 100"
· Based on
geographic
area
· In companies
with diversified
product lines
· E.g HP
· Need for
specialised
management
– project
manager
· The no. of
subordinates that
report to a given
manager
· Affected by:
required contact,
degree of
specialisation
and ability to
communicate
· Retention of
authority at top
management
· High formalisation
· standardisation
· Pushing authority down the
hierarchy so that decisions
are made close to the origin
of the problem
· Outsourcing
· Use of contract workers
· Sophisticated consumer
· Shareholder demanding high
returns
· Standardisation of
task performance
· E.g TQM
· MBO
· Team orientated
· Designs that permit
one company to work
closely with another
· Strategic alliance
· Conglomerates
· Japanese Keiretsu,
Kinyokai, Amakudori
A set of mechanisms used
to link the actions of sub-
units to achieve a pattern of
desired outcomes
BURNS AND STALKER
A serious of decisions made by
managers about the best
organisational arrangement to achieve
the goals in the strategic plan · Increased division of labour
· Uniform departments
· Narrow span of control
· Tight rules and policies
Mechanistic Organic
· Less job specialisation
· Increased delegation of authority
· Low uniformity
· Wide span of control
Change to revenue driven
market value maximisation
perspective
Drivers of growth in
customer service
· Differentiated service
often easier and
faster achieved than
differentiated product
· Customers demand
better quality
· Service improvement
strengthen brand
loyalty, erect market
segment and entry
barriers
· Bad service drives off
customers and
lowers profits
© Tumelo L Matjekane | 2009 Page 11 of 12 Organisational behaviour
Organisational culture
and change
Culture
Contributors
ØRealistic job previews
ØDebasement and
indoctrination
ØIntensive on the job
training
ØAdjust reward and
promotion system
ØUse top managers as
personal role models
ØRe-enforce the cultures
with stories about the
organisation and its
founder
ØUse mentors to develop
younger employees
Organisational life
cycle theory
· CE / founder’s role
· Socialisation: transmits
organisational culture
from one generation
to the next
R. PASCALE
Beliefs and values that are
understood by employees
Liabilities of
strong culture
· Goals and mission
may change, strong
culture no longer
relevant
· Strong culture may
not mix well in M&A
· When culture
legitimises in-
fighting, secrecy and
empire building
· Eg. Daimler-Chrysler
vs Toyota
Developing highly
adaptive cultures
· The HOME approach:
Ø History
Ø Oneness
Ø Membership
Ø Exchange
Organisational
change
Planned change
process
· Environmental
complexity
· Environmental
change
· Environmental
uncertainty
· Inception and start up operations
· Rapid growth and market
expansion
· Steady growth and market maturity
· Consolidation and decline
· Eg. Dell, Google, Apple
· Important to recognise
organisational decline and
adapt structures accordingly
· Danger: overconfident and
inattentive management team
KURT
LEWIN
ROBERT
DAILEY
Recognising
need for change
Diagnosis
Selection of
change methods
Carry over
Institutionalisation
· Multilevel
(organisational,
team, individual)
· Steering
committee to
guide it
· Participative
eg Vroom-
Yetton-Jago
· Motivating newly
learned behaviours
· Bridge the gap between
“learning environment”
and “working
environment”
· Eg Motorola university
· Planned change
becomes part of
operations in
spite of
managerial
succession,
attrition or
alteration in other
organisational
aspects
Re-freezing
· New
processes
adopted and
become
permanent
parts of firms
and cuture
Changing
· Action play
implemented
· Training
· Decentralisation
Unfreezing
· Dissatisfaction
with old culture
and processes
· Constructive
destruction
· Labour
discontent
Methods of
change in OD
See page 9b
Resistance
· Fear
· Trying to
maintain status
quo
· Inclusion of these
affected can help
· Quantitative
measures
Evaluate
the results
Diffusion
· Diffusion not always
guaranteed, can be
undermined
· Eg. Volvo, Shell
WALTON
© Tumelo L Matjekane | 2009 Page 12 of 12 Organisational behaviour
Grid organisational
development
ROBERT BLAKE &
JANE MOUTON
Methods of
change in OD
Organisational culture
and change (cont)
Organisational
change
See page 9a
Culture
See page 9a
Encounter
groupTeam building
programme
Support
group
System wide
process
changes
· Survey feedback
· Collecting questionnaire
data from employees
· Summarise
· Feedback to employees
· Survey of organisations
Interpersonal
and group
KURT LEWIN
T-group
procedures
· Deeper personal
knowledge and
development· Excellent tool for
ensuring the fit
between culture,
mission, goals and
strategy
· Should be regular
process for
diagnosing and
attacking problems
· Problem-focused
groups
· Unite individuals
· Provide support
· A pre-packaged OD method
Ø Grid seminar
Ø Intra-group development
Ø Inter-group development
Ø Development of an ideal
strategic model
Ø Attaining the ideal strategic
model
Ø Stabilisation and process
critique
Recommended