Chapter 1 the Nature of Organisational Behaviour

There is a multiplicity of interrelated factors that influence the decisions and actions of people as members of a workorganisation. The scope for the examination of organisationalbehaviour is therefore very wide. In an increasingly global andcompetitive business environment it is especially important to understand the main influences on behaviour in workorganisations, the effective management of the human elementand the nature of the people–organisation relationship.

Learning outcomes

After completing this chapter you should be able to:

■ explain the nature and main features of organisational behaviour;

■ detail contrasting perspectives of orientations to work;

■ outline the importance of management as an integrating activity;

■ assess the nature and importance of the psychological contract;

■ explain the relevance of the Peter Principle and Parkinson’s Law;

■ review the changing nature of work organisations;

■ assess the impact of globalisation and the international context.

THE NATURE OF ORGANISATIONALBEHAVIOUR

Critical reflection

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‘Although a commonly used term, organisational behaviour is a misnomer.Rarely do all members act collectively in such a way as to represent thebehaviour of the organisation as a whole. In practice, we are talking aboutthe attitudes and actions of individuals or small groups within theorganisation.’

Do you agree? What term would you suggest best explains this subject area?

CHAPTER 1 THE NATURE OF ORGANISATIONAL BEHAVIOUR

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THE MEANING OF ORGANISATIONAL BEHAVIOUR

However much of a cliché, it is still an inescapable fact that people are the main resource ofany organisation. Without its members, an organisation is nothing; an organisation is onlyas good as the people who work within it. In today’s increasingly dynamic, global and com-petitive environment an understanding of the effective management of the people resourceis even more important for organisational survival and success.

Organisational behaviour is concerned with the study of the behaviour of people withinan organisational setting. It involves the understanding, prediction and control of humanbehaviour. Common definitions of organisational behaviour (OB) are generally along thelines of: the study and understanding of individual and group behaviour and patterns ofstructure in order to help improve organisational performance and effectiveness.1

There is a close relationship between organisational behaviour and management theoryand practice. It is sometimes suggested that organisational behaviour and management aresynonymous, but this is an over-simplification because there are many broader facets tomanagement. Organisational behaviour does not encompass the whole of management; it is more accurately described in the narrower interpretation of providing a behaviouralapproach to management. Some writers appear critical of a managerial approach to organ-isational behaviour. Yet, while the role, responsibilities and actions of management are ofcourse subject to legitimate debate, what cannot be denied is the growing importance ofeffective management, in whatever form or with whatever emphasis it is perceived, to thesuccessful performance of the work organisation.

Applications of organisational behaviour and the effective management of people at worktake place in the context of the wider environmental setting, including the changing patternsof organisations and work. The world of work is changing and this is discussed later in thischapter.

THE STUDY OF ORGANISATIONAL BEHAVIOUR

The use of separate topic areas is a recognised academic means of aiding study and explan-ation of the subject. In practice, however, the activities of an organisation and the role of management cannot be isolated neatly into discrete categories. The majority of actions are likely to involve a number of simultaneous functions that relate to the total processeswithin an organisation.2 Consider, for example, a manager briefing departmental staff on amajor unexpected, important and urgent task. Such a briefing is likely to include consider-ation of goals and objectives, organisation strategy and structure, management system, pro-cess of delegation and empowerment, systems of communication, teamwork, leadershipstyle, motivation and control systems. The behaviour of the staff will be influenced by a com-bination of individual, group, organisational and environmental factors.

Topic studies in organisational behaviour should not be regarded, therefore, asentirely free-standing. Any study inevitably covers several aspects and is used to a greater orlesser extent to confirm generalisations made about particular topic areas. The use of thesame studies to illustrate different aspects of management and organisational behaviourserves as useful revision and reinforcement and helps to bring about a greater awareness andunderstanding of the subject.

The relevance of theory

In the study of management and organisational behaviour you will come across many theories. However, you should not be put off by the use of the word ‘theory’. Most rationaldecisions are based on some form of theory. Theory contains a message on how managersmight behave. This will influence attitudes towards management practice and lead to changes

PART 1 THE ORGANISATIONAL SETTING

4

in actual patterns of behaviour. Theory helps in building generalised models applicableto a range of organisations or situations. It further provides a conceptual framework andgives a perspective for the practical study of the subject. Thus theory and practice areinseparable. Together they lead to a better understanding of factors influencing patterns ofbehaviour in work organisations and applications of the process of management.3

However, to be of any help to the practising manager, theory has to be appropriate. Forexample, Lee refers to:

. . . the danger of adopting theories because they are teachable, rather than because they are effective

. . . [however,] without appropriate theory, there would be very little communication of the insights ofscientific theory to practising managers.4

Patching suggests that all managers who think about what they do are practical students oforganisational theory.

Theory is not something unique to academics, but something we all work with in arriving at our atti-tudes, beliefs and decisions as managers. It seems obvious to most of us that some theories are betterthan others. Many managerial discussions which we undertake in meetings focus upon trying to agreeupon which theory will be best for a particular decision.5

Alternative approaches

There are a number of alternative approaches to the study of organisational behaviour. For example, in addition to a managerial approach, Drummond refers to two other intellec-tual standpoints, interpretative and critical. The interpretative standpoint views ambiguity,paradox and contradictions as part of the natural experiences of organisations, with anemphasis upon understanding the subtleties and dynamics of organisational life. The crit-ical standpoint believes that reality is very real and people have only a marginal amount offreedom, and regards management science as bogus, a means of legitimising economicexploitation.6 While the existence and potential contributions of both these standpointsshould be acknowledged, such a broad and diverse area of study demands attention to effect-ive management as an integrating and co-ordinating activity.

The realities of organisational behaviour

However one looks at the nature or disciplines of organisational behaviour it is importantto remember, as Morgan reminds us, that ‘the reality of organisational life usually comprisesnumerous different realities!’7

Hellriegel, Slocum and Woodman suggest:

One way to recognise why people behave as they do at work is to view an organisation as an iceberg.What sinks ships isn’t always what sailors can see, but what they can’t see.8

The overt, formal aspects focus only on the tip of the iceberg (organisation). It is just asimportant to focus on what you can’t see – the covert, behavioural aspects (see Figure 1.1).

A FRAMEWORK OF STUDY

The behaviour of people at work cannot be studied in isolation. It is necessary to understandinterrelationships with other variables that together comprise the total organisation. Thisinvolves consideration of interactions among the aims and objectives of the organisation,formal structure, the tasks to be undertaken, the technology employed and methods of carrying out work, the process of management and the external environment. The bottomline is that sooner or later every organisation has to perform successfully if it is to survive.Organisational performance and effectiveness is discussed in Chapter 20.


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Figure 1.1 The organisational iceberg

Source: From Hellriegel, D., Slocum, J. W., Jr. and Woodman, R. W. Management, eighth edition, South-Western Publishing (1998), p. 6.Copyright © 1999 South-Western, a part of Cengage Learning, Inc. Reproduced by the permission (www.cengage.com/permission).

The study of organisational behaviour embraces, therefore, an understanding of:

■ the nature and purpose of the organisation;■ the human element and behaviour of people;■ business strategy, organisational processes and the execution of work;■ the process of management as an integrating and co-ordinating activity;■ social responsibilities and business ethics;■ the external environment of which the organisation is part; and■ the need for organisation success and survival.

This provides us with a basic, but convenient, framework of analysis (see Figure 1.2).

Organisational Behaviour is one of the most complex and perhaps least understood academicelements of modern general management, but since it concerns the behaviour of people withinorganisations it is also one of the most central . . . its concern with individual and group patternsof behaviour makes it an essential element in dealing with the complex behavioural issuesthrown up in the modern business world.9

Wilson, however, suggests that the meaning of the term organisational behaviour is farfrom clear. She challenges what constitutes organisational behaviour and questions whetherwe should be interested only in behaviour that happens within organisations. There is areciprocal relationship in what happens within and outside organisations. Wilson suggeststhat we also look outside of what are normally thought of as organisations and how we

Figure 1.2 Organisational behaviour: a convenient framework of analysis


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usually think of work. We can also gain insight into organisational life and behaviour bylooking at what happens in rest and play; considering emotion and feeling; considering thecontext in which work is defined as men’s or women’s work; and looking at less organisedwork, for example work on the fiddle and the meaning of work for the unemployed.10 Thesesuggestions arguably add an extra dimension to the meaning and understanding of organ-isational behaviour.

INFLUENCES ON BEHAVIOUR

The variables outlined above provide parameters within which a number of interrelateddimensions can be identified – the individual, the group, the organisation and the environ-ment – which collectively influence behaviour in work organisations.

The individual

Organisations are made up of their individual members. The individual is a central featureof organisational behaviour, whether acting in isolation or as part of a group, in response toexpectations of the organisation, or as a result of the influences of the external environment.Where the needs of the individual and the demands of the organisation are incompatible,this can result in frustration and conflict. It is the role of management to integrate the indi-vidual and the organisation and to provide a working environment that permits the satis-faction of individual needs as well as the attainment of organisational goals.

The group

Groups exist in all organisations and are essential to their working and performance. Theorganisation comprises groups of people and almost everyone in an organisation will be


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a member of one or more groups. Informal groups arise from the social needs of peoplewithin the organisation. People in groups influence each other in many ways and groupsmay develop their own hierarchies and leaders. Group pressures can have a major influenceover the behaviour and performance of individual members. An understanding of groupstructure and behaviour complements knowledge of individual behaviour and adds a furtherdimension to the study of organisational behaviour.

The organisation

Individuals and groups interact within the structure of the formal organisation. Structure is created to establish relationships between individuals and groups, to provide order andsystems and to direct the efforts of the organisation into goal-seeking activities. It is throughthe formal structure that people carry out their organisational activities to achieve aims andobjectives. Behaviour is influenced by patterns of structure, technology, styles of leadershipand systems of management through which organisational processes are planned, directedand monitored. The focus of attention is on the impact of organisation structure and pat-terns of management on the behaviour and actions of people. McPhee refers to the growthin the nature and importance of organisational structures and their essence, and for greateremphasis on business-to-business (B2B) depth or group interviewing as part of an insightinto business and organisational behaviour.11

The environment

The organisation functions as part of the broader external environment of which it is a part.The environment affects the organisation through, for example, internationalisation, tech-nological and scientific development, economic activity, social and cultural influences andgovernmental actions. The effects of the operation of the organisation within its environ-ment are reflected in terms of the management of opportunities and risks and the regard forcorporate responsibility and ethical behaviour. The increasing rate of change in environ-mental factors has highlighted the need to study the total organisation and the processes bywhich the organisation attempts to adapt to the external demands placed upon it. Increasingglobalisation means that organisations must respond to different market demands and local requirements. ‘In globalisation, strategy and organisation are inextricably twined.’12

Globalisation impacts on organisational behaviour and has placed greater emphasis on pro-cesses within organisations rather than functions of the organisation. Globalisation and theinternational context are discussed later in this chapter.

Contrasting but related approaches

These different dimensions provide contrasting but related approaches to the understandingof human behaviour in organisations. They present a number of alternative pathways for the study of the subject and level of analysis. It is possible, for example, to adopt a psycho-logical approach with the main emphasis on the individuals of which the organisation is comprised. Psychological aspects are important but by themselves provide too narrow an approach for the understanding of management and organisational behaviour. Our mainconcern is not with the complex detail of individual differences and attributes per se but withthe behaviour and management of people within an organisational setting.

It is also possible to adopt a sociological approach concerned with a broader emphasison human behaviour in society. Sociological aspects can be important. A number of sociologywriters seem set on the purpose of criticising traditional views of organisation and manage-ment. Many of the criticisms and limitations to which such writers refer are justified and helppromote healthy academic debate. Unfortunately, however, much of the argument tends tobe presented in the abstract and is lacking in constructive ideas on how, in practical terms,action can be taken to improve organisational performance.

Figure 1.3 Organisational behaviour: a multidisciplinary approach

Critical reflection

‘A significant feature of organisational behaviour is the invariable difficulty in identifying asingle solution to a particular situation. The absence of one right answer not only makesstudy of the subject complex and frustrating but also brings into question the value ofstudying the subject at all.’

What are your views? Do you feel frustrated by the study of organisational behaviour?


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A MULTIDISCIPLINARY APPROACH

Whatever the approach, the study of organisational behaviour cannot be undertaken entirelyin terms of a single discipline. It is necessary to provide a multidisciplinary, behavioural science perspective (see Figure 1.3). Although there are areas of overlap among the varioussocial sciences, their sub-divisions and related disciplines such as economics and politicalscience, the study of behaviour can be viewed in terms of three main disciplines – psycho-logy, sociology and anthropology. All three disciplines have made an important contribu-tion to the field of organisational behaviour.

■ Psychologists are concerned, broadly speaking, with the study of human behaviour, withtraits of the individual and membership of small social groups. The main focus of atten-tion is on the individual as a whole person, or what can be termed the ‘personality system’,including, for example, perception, attitudes and motives.

■ Sociologists are more concerned with the study of social behaviour, relationships amongsocial groups and societies, and the maintenance of order. The main focus of attention ison the analysis of social structures and positions in those structures – for example, therelationship between the behaviour of leaders and followers.

■ Anthropologists are more concerned with the science of humankind and the study ofhuman behaviour as a whole. As far as organisational behaviour is concerned the main


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focus of attention is on the cultural system, the beliefs, customs, ideas and values withina group or society, and the comparison of behaviour among different cultures – for example, the importance to Muslim women of wearing trousers to work. People learn todepend on their culture to give them security and stability and they can suffer adversereactions to unfamiliar environments.

The contribution of relevant aspects of psychology, sociology and anthropology under-pins the field of organisational behaviour. Behavioural science attempts to structure organ-isations in order to secure the optimum working environment. It is concerned with reconciling the needs of the organisation for the contribution of maximum productivity,with the needs of individuals and the realisation of their potential. In terms of the applica-tions of behavioural science to the management of people, we need also to consider the relevance and applications of philosophy, ethics and the law.

ORGANISATIONAL METAPHORS

Organisations are complex social systems that can be defined and studied in a number of ways.A significant approach to this broad perspective on the nature of organisations and organ-isational behaviour is provided by Morgan. Through the use of metaphors, Morgan identifieseight different ways of viewing organisations – as machines, organisms, brains, cultures,political systems, psychic prisons, flux and transformation, and instruments of domination.According to Morgan, these contrasting metaphors aid the understanding of the complexnature of organisational life and the critical evaluation of organisational phenomena.13

■ Machines. This suggests that organisations can be designed as if they are machines, withorderly relations between clearly defined parts. Viewing organisations as machines canprovide the basis for efficient operation in a routine, reliable and predictable way. Thisform of bureaucratic structure offers form, continuity and security. However, it may haveadverse consequences and limit the development of human capacities. Organisationsviewed as machines function better in a stable and protected environment.

■ Organisms. The organisation is seen as behaving like a living system. In the same waythat biological mechanisms adapt to changes in their environment, so organisations, as open systems, adapt to the changing external environment. Organisations operatingwithin a turbulent and dynamic environment require an adaptable type of structure.

■ Brains. Viewing organisations as brains involves thinking about the organisation asinventive and rational and in a manner that provides for flexibility and creative action.The challenge is to create new forms of organisation capable of intelligent change and thatcan disperse brain-like capacities.

■ Cultures. This sees organisations as complex systems made up of their own characteristicsets of ideology, values, rituals and systems of belief and practice. Attention to specificaspects of social development helps to account for variations among organisations.

■ Political systems. In the sense that ways must be found to create order and direct people,organisations are intrinsically political. They are about authority, power, superior–subordinate relationships and conflicting interests. Viewing organisations as political systems helps in an understanding of day-to-day organisational life, the wheeling anddealing, and pursuit of special interests.

■ Psychic prisons. This views organisations as psychic phenomena created and sustainedby conscious and unconscious processes. Organisations and their members are con-strained by their shadows or ‘psychic prisons’ and become trapped by constructions ofreality. Their inherited or created mythical past places affect the representation of theorganisation to the outside world. Viewing organisations as psychic prisons provides an understanding of the reality and illusions of organisational behaviour.

■ Flux and transformation. The universe is in a constant state of flux, embodying charac-teristics of both permanence and change. Organisations can be seen as in a state of flux


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and transformation. In order to understand the nature and social life of organisations, itis necessary to understand the sources and logic of transformation and change.

■ Instruments of domination. In this view organisations are associated with processes ofsocial domination, and individuals and groups imposing their will on others. A feature oforganisations is asymmetrical power relations that result in the pursuit of the goals of thefew through the efforts of the many. Organisations are best understood in terms of vari-ations in the mode of social domination and control of their members.

A broader view of organisational behaviour

These contrasting metaphors offer an interesting perspective on how to view organisa-tions. They provide a broader view of the dynamics of organisational behaviour and how tomanage and design organisations. However, Morgan points out that these metaphors are notfixed categories and are not mutually exclusive. An organisation can be a mix of each andpredominantly a combination of two or three metaphors. Furthermore, these combinationsmay change over a period of time.

A number of writers use metaphors to help describe organisations. For example, in dis-cussing the role and logic of viewing the organisation in terms of metaphors, Drummondraises questions such as what an organisation is like and the power of metaphors in shapingour thinking, but also points out that all metaphors are partial and no metaphor can explainfully a particular phenomenon.14

ORIENTATIONS TO WORK AND THE WORK ETHIC

For most people, work in one form or another is clearly a major part of their lives, and manypeople spend a large proportion of their time working. However, people differ in the mannerand extent of their involvement with, and concern for, work. From information collectedabout the work situation, organisational participation and involvement with work col-leagues, and life outside the organisation, Goldthorpe et al. identified three main types of orientation to work: instrumental, bureaucratic and solidaristic.15

■ Individuals with an instrumental orientation define work not as a central life issue but interms of a means to an end. There is a calculative or economic involvement with workand a clear distinction between work-related and non-work-related activities.

■ Individuals with a bureaucratic orientation define work as a central life issue. There is a sense of obligation to the work of the organisation and a positive involvement in termsof a career structure. There is a close link between work-related and non-work-relatedactivities.

■ Individuals with a solidaristic orientation define the work situation in terms of groupactivities. There is an ego involvement with work groups rather than with the organisationitself. Work is more than just a means to an end. Non-work activities are linked to workrelationships.

Different work situations

According to Bunting, although some people in poorly-paid jobs requiring long hours do nothave any choice, for the majority there is a degree of choice in how hard they work. Peoplemake their own choices. If they want to work hard, or if they wish to opt out and live thegood life, it is up to them.16 Consider, for example, differences among the baby-boomers(typified by a search for security), Generation X (typified by after the slog the rewards), andGeneration Y (travel first, then a career). (This is discussed more fully in Chapter 3.) Somepeople may well have a set motivation to work, whatever the nature of the work environ-ment. However, different work situations may also influence the individual’s orientation towork. For example, the lack of opportunities for teamwork and the satisfaction of socialexpectations may result in an instrumental orientation to work and a primary concern for


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economic interests such as pay and security. In other situations where there are greateropportunities to satisfy social needs, membership of work groups may be very importantand individuals may have a more solidaristic orientation to work. This often appears to bethe case, for example, with people working in the hospitality industry.

According to Herman, the work ethic has been deeply challenged by two trends – the divi-sion of labour and the destruction of continuity in employment. Work has been fractured in task and sub-divided into specialised sub-tasks or branches, creating new kinds of workaltogether. The division of labour has generated tens of thousands of discrete functions in theworkplace. A more recent trend is the destruction of continuity in employment, with manyemployees likely to re-enter the job market multiple times. This discourages the develop-ment of bonds of loyalty or employees investing themselves in their work with the hope oflong-term employment.17

Sense of identity

Work can help fulfil a number of purposes including providing the individual with a senseof identity. Many people see themselves primarily in terms of their career and what they doat work. It defines who they are. Waller suggests that work inevitably plays a key role in shap-ing identity and least there you are challenging yourself, developing and learning.

In the knowledge economy, where responsibilities morph and working hours are flexible, the boundariesbetween work and free time blur, and it’s hard for many of us to tell when we’re off-duty. It followsthat if people are getting absorbed by their work-life, they expect their job to help them to discover anddevelop themselves. Identity can be linked to such basics as the satisfaction of a job well done – yet ina modern economy, work is rarely actually ‘finished’.18

For some people who do not necessarily have any financial motivation, work appears toprovide a sense of purpose and a structure to their day. In some cases it is even explained asa reason to get up in the morning.

According to de Botton our society is unique in allowing our choice of work to define whowe are so that the central question we ask of new acquaintances is not where they come fromor who their parents are, but rather what they do. De Botton suggests that we have to set thecheerful tone of modern management that work is fun and the employer is a family intocontext.

The recession reveals that work is hard and that, if the employer is like a parent, then it is a ratherharsh and unforgiving sort . . . So one of the benefits of the crisis is that it enables us to lower our expecta-tions as to what work can deliver. Some of the greatest existential questions disappear. Simply holdingdown an ordinary job and surviving comes to seem like reward enough.19

Work/life balance

Popular newspaper articles often suggest that work is still a large component of what givesmeaning to people’s lives and give examples of lottery or pools winners staying in work andoften in their same old job. Other surveys and reports suggest that the workplace is no longera central feature of social activity. For a majority of people the main reason for work remainsthe need for money to fulfil the necessities of life. However, much still appears to depend onthe extent of an individual’s social contacts and activities outside of the work situation. Thework/life balance is discussed more fully in Chapter 3.

International and cultural influences

National culture is also a significant influence on orientations to work. For example, Reevescomments on the importance of conversation for effective organisational relationships buthow this is resisted in the British work culture.

The Protestant version of the work ethic prevails, implying heads-down work, focused agendas, punc-tuality, efficiency. In French and Spanish offices, it takes the first hour to kiss everyone, the second to


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discuss local gossip and the third to pop out for a coffee and croissant. In Britain, these activities wouldcount as sexual harassment, time-wasting and absenteeism. Many firms have built cafés or break outareas and then discovered people are too scared to use them for fear of looking work-shy.20

As another example, the author experienced for himself how in parts of Australia work-related activities could often be undertaken comfortably in local coffee houses without concern about ‘presenteeism’ or being seen as being away from the place of work. Australiansalso enjoy a good work/life balance and have the option of extra holidays.21 This is in notice-able contrast to the almost obsessive work ethic throughout much of the USA that the authoralso experienced frequently. (See also the discussion on the cultural environment later inthis chapter.)

The European Union’s research magazine reports on the attitude to work of different agegroups and the importance of wider environmental influences.

Irrespective of which (age) generation a person belongs to, their relationship with work also depends ontheir path in life, social environment, personal experiences, choices – whether conscious or unconscious– and the historical context in which they grew up.

The report refers to the example in Hungary where a team of workers might include a mix ofpeople who grew up under hard-line socialism, others under more lax communism and yetothers who have only known ‘freedom’.22

MANAGEMENT AS AN INTEGRATING ACTIVITY

Whatever the individual’s orientations to work or cultural influences, it is through the process of management that the efforts of members of the organisation are co-ordinated,directed and guided towards the achievement of its goals. Management is the cornerstone oforganisational effectiveness (see Figure 1.4). It is the responsibility of management to man-age. But organisations can achieve their aims and objectives only through the co-ordinatedefforts of their members. This involves the effective management of the people resource.

The starting point to supporting and promoting wellbeing in the workplace has to be good people man-agement and effective work organisation. Good line management is the most important of the charac-teristics of a high-quality workplace that has high levels of commitment and low absence rates.23

It is important always to remember that it is people who are being managed and peopleshould be considered in human terms. Unlike physical resources, the people resource is notowned by the organisation. People bring their own perceptions, feelings and attitudestowards the organisation, systems and styles of management, their duties and responsibil-ities, and the conditions under which they are working. At the heart of successful manage-ment is the problem of integrating the individual and the organisation, and this requires anunderstanding of both human personality and work organisations.24

Egan refers to the importance of the shadow side of the organisation: that is, those thingsnot found on organisation charts or in company manuals – the covert, and often un-discussed, activities of people which affect both the productivity and quality of the workinglife of an organisation.25

Critical reflection

‘An individual’s orientation to work and underlying work ethic is the strongest influenceon their motivation and organisational performance. Whatever the actions ofmanagement this has only minimal effect.’

To what extent do you agree with this contention and to what extent is it true for you?How would you explain your own orientation to work?

Figure 1.4 Management as the cornerstone of organisational effectiveness


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Human behaviour is capricious and scientific methods or principles of behaviour cannotbe applied with reliability. In his study of job satisfaction, Bassett comments:

There seem to be no universal generalizations about worker dissatisfaction that permit easy manage-ment policy solutions to absenteeism and turnover problems . . . There are almost never any exact conditions of cause and effect in the realm of human behaviour.26

It is also widely observed that you cannot study the behaviour of people without changing it.

The people–organisation relationship

It could be argued that the majority of people come to work with the original attitude ofbeing eager to do a good job and desirous of performing well and to the best of their abil-ities. People generally respond in the manner in which they are treated. Where actual per-formance fails to match the ideal this is largely a result of how staff perceive they are treatedby management. Many problems in the people–organisation relationship arise not so muchfrom the decisions and actions of management as the manner in which such decisions and actions are carried out. Often, it is not so much the intent but the manner of imple-mentation that is the root cause of staff unrest and dissatisfaction. For example, staff mayagree (even if reluctantly) on the need to introduce new technology to retain the competi-tive efficiency of the organisation, but feel resentment about the lack of pre-planning, con-sultation, retraining programmes, participation in agreeing new working practices and wagerates, and similar considerations arising from the manner of its introduction. (See also thediscussion in Chapter 16.)

Figure 1.5 A basic framework of study


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Therefore, a heavy responsibility is placed on managers and the activity of management– on the processes, systems and styles of management. Attention must be given to the workenvironment and appropriate systems of motivation, job satisfaction and rewards. It isimportant to remember that improvement in organisational performance will come aboutonly through the people who are the organisation.

Providing the right balance

People and organisations need each other. Management is an integral part of this relation-ship. It is essentially an integrating activity that permeates every facet of the organisation’soperations and should serve to reconcile the needs of people at work with the requirementsof the organisation. Management should endeavour to create the right balance between theinterrelated elements that make up the total organisation and to weld these into coherentpatterns of activity best suited to the external environment in which the organisation is oper-ating. Consideration must be given to developing an organisational climate in which peoplework willingly and effectively.

When people are engaged and committed they are more likely to behave in the interests of the companyand they have less need to be controlled and measured. In essence, engaged people can be trusted tobehave in the interests of the company, in part because they perceived their interests to be the same as,or aligned with, the interests of the company.27

The style of management adopted can be seen as a function of the manager’s attitudestowards people and assumptions about human nature and behaviour (discussed in Chap-ter 12). It is important to bear in mind that the activity of management takes place withinthe broader context of the organisational setting and subject to the organisational environ-ment and culture. There are also variations in systems and styles of management and in thechoice of managerial behaviour. Figure 1.5 shows a basic five-stage framework of study. Thechanging role of management is also discussed further in Chapters 11 and 20.

THE PSYCHOLOGICAL CONTRACT

One significant aspect of organisational behaviour and the relationship between the indi-vidual and the process of management is the concept of the psychological contract. This isnot a written document but implies a series of mutual expectations and satisfaction of needsarising from the people–organisation relationship. It involves a process of giving and receiv-ing by the individual and by the organisation. The psychological contract covers a range of expectations of rights and privileges, duties and obligations, which do not form part of aformal agreement but still have an important influence on people’s behaviour. The psycho-logical contract is an important factor in the socialisation of new members of staff to the

Figure 1.6

The psychological contract: possible examples of individual andorganisational expectations


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organisation. Early experiences of the people–organisation relationship have a major effecton an individual’s perception of the organisation as a place to work and the quality of manage-ment, and can have a major influence on job satisfaction, attitude and levels of performance.

The nature and extent of individuals’ expectations vary widely, as do the ability and willing-ness of the organisation to meet them. It is difficult to list the range of implicit expectationsthat individuals have; these expectations also change over time. They are separate from anystatutory requirements placed upon the organisation; they relate more to the idea of socialresponsibility of management, discussed in Chapter 18. The organisation will also haveimplicit expectations of its members. The organisational side of the psychological contractplaces emphasis on expectations, requirements and constraints that may differ from, andmay conflict with, an individual’s expectations. Some possible examples of the individual’sand the organisation’s expectations are given in Figure 1.6.


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Implications for organisational strategy

The Chartered Institute of Personnel and Development (CIPD) suggests that the psycho-logical contract may have implications for organisational strategy in a number of areas, forexample:

■ process fairness – people want to know their interests will be taken into account, treatedwith respect and consulted about change;

■ communications – an effective two-way dialogue between employer and employee;■ management style – adopting a more ‘bottom-up’ style and drawing on the strategic

knowledge of employees;■ managing expectations – making clear what new recruits can expect and distinguishing

rhetoric from reality;■ measuring employees’ attitudes – regular monitoring of employee attitudes and acting

on the results.28

Process of balancing

It is unlikely that all expectations of the individual or of the organisation will be met fully.There is a continual process of balancing, and explicit and implicit bargaining. The nature ofthese expectations is not defined formally and although the individual member and theorganisation may not be consciously aware of them, they still affect relationships betweenthem and have an influence on behaviour. Stalker suggests that successful companies arethose that have the ability to balance the unwritten needs of their employees with the needs of the company. Such companies use a simple formula of Caring, Communicating,Listening, Knowing, Rewarding.

■ Caring – demonstrating genuine concern for individuals working in the organisation;■ Communicating – really talking about what the company is hoping to achieve;■ Listening – hearing not only the words but also what lies behind the words;■ Knowing – the individuals who work for you, their families, personal wishes, desires and

ambitions;■ Rewarding – money is not always necessary; a genuine thank-you or public recognition

can raise morale.29

Employer–employee relationship

The significance of the psychological contract depends on the extent to which it is perceivedas fair by both the individual and the organisation, and will be respected by both sides.Cartwright refers to mutuality as the basic principle of the psychological contract:

A psychological contract is not only measured in monetary value or in the exchange of goods or services,it is in essence the exchange or sharing of beliefs and values, expectations and satisfactions. Mutualityis the basic principle of the psychological contract and consensus or mutual understanding is the basisof mutuality. Ideally therefore self-interest should be balanced with common interest in a ‘win–win’arrangement.30

The nature of the employer–employee relationship is clearly a central feature of the psy-chological contract. Emmott points out that good people-management practices are the basisfor a positive psychological contract and this means managers having to deal with the ‘softstuff ’. Properly managed, the psychological contract delivers hard, bottom-line results andimproved business performance.

Managers at all levels can have an influence on employees’ perceptions of the psychological contract. Itis, however, the relationship between individual employees and their line manager that is likely tohave most influence in framing and managing employees’ expectations.31


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News that Barclay would be off-shoring 1,800 jobs subjected the bank to intense scrutiny fromgovernment, trade unions, shareholders, customers and, of course, employees. The bankrecognised it needed to do something to strengthen the ‘psychological contract’ it had with itsemployees if it was to redeploy them elsewhere within the organisation.

Management Today32

Changing nature of the psychological contract

The changing nature of organisations has placed increasing emphasis on the importance ofeffective human resource management, including the importance of the psychological con-tract within the employment relationship. For example, Hiltrop suggests that the increasingpressure for organisations to change has prompted growing disillusionment with the tradi-tional psychological contract based on lifetime employment and steady promotion fromwithin. Companies must develop new ways to increase the loyalty and commitment ofemployees. This includes attention to reward strategies based on recognition of contributionrather than status or position; systematic training and development including the skills forworking in cross-functional teams; and the training of managers in counselling, coachingand leadership skills.33

According to CIPD, changes currently affecting the workplace have persuaded people to take the psychological contract seriously. These changes include more employees on part-time and temporary contracts and more jobs outsourced; de-layering and ‘leanness’ oforganisations; more demanding customers and improved quality and service standards; theincreasing importance of human capital as a source of competitive advantage; and morefluid organisation structures. The effect of these changes is that employees are increasinglyrecognised as the key business drivers. The psychological contract offers a framework formonitoring employee attitudes and priorities.34

A new moral contract

The changing nature of organisations and individuals at work has placed increasing pressureson the awareness and importance of new psychological contracts. Ghoshal et al. suggest thatin a changing social context the law of masters and servants that underlies the old psycho-logical contract is no longer acceptable to many people. Forces of global competition andturbulent change make employment guarantees unfeasible and also enhance the need forlevels of trust and teamwork. The new management philosophy needs to be grounded in avery different moral contract with people. Rather than being seen as a corporate asset fromwhich value can be appropriated, people are seen as a responsibility and a resource to beadded to. The new moral contract also demands much from employees, who need to aban-don the stability of lifetime employment and embrace the concept of continuous learningand personal development.35 However, Furnham and Taylor assert that despite the import-ance of the psychological contract, as many as two-thirds of employees believe their employers ‘patently violated’ this understanding.36

Impact on employee relations

The Chartered Management Institute refers to the psychological contract as a subtle relation-ship composed of many factors and as being often considered a key factor in understandingemployment relations, as disappointed expectations may have a strong impact on employeerelations.

In the past this unspoken contract might have implied that employees could expect job security and adequate rewards from their employer in exchange for hard work and loyalty. Today’s psychological contract may be different, in line with a changed working environment that includes factors such asincreased rationalisation, technological changes, and management approaches such as outsourcing. The


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new psychological contract may revolve more around an employer’s willingness to assist you in develop-ing your skills in order to maintain your marketability.37

ORGANISATIONAL PRACTICES

It is convenient, here, to consider two sets of observations on the nature of human behav-iour and what may actually happen, in practice, in organisations: the Peter Principle andParkinson’s Law. Although these observations are presented in a satirical manner, they never-theless make a serious and significant point about the management and functioning oforganisations and the actual nature and practice of organisational behaviour.

THE PETER PRINCIPLE

This is concerned with the study of occupational incompetence and the study of hierarchies.The analysis of hundreds of cases of occupational incompetence led to the formulation ofthe ‘Peter Principle’, which is:

In a hierarchy every employee tends to rise to their level of incompetence.38

Employees competent in their position are promoted and competence in each new positionqualifies for promotion to the next highest position until a position of incompetence isreached. The principle is based on perceived incompetence at all levels of every hierarchy –political, legal, educational and industrial – and ways in which employees move upwardsthrough a hierarchy and what happens to them after promotion.

Among the many examples quoted by Peter are those from the teaching occupation. A isa competent and conforming college student who becomes a teacher following the textbook,curriculum guide and timetable schedule, and who works well except when there is no ruleor precedent available. A never breaks a rule or disobeys an order but will not gain promo-tion because, although competent as a student, A has reached a level of incompetence as a classroom teacher.

B, a competent student and inspiring teacher, although not good with paperwork, is promoted to head of the science department because of success as a teacher. The head of science is responsible for ordering all science supplies and keeping extensive records and B’sincompetence becomes evident.

C, a competent student, teacher and head of department, is promoted to assistant prin-cipal and being intellectually competent is further promoted to principal. C is now requiredto work directly with higher officials. By working so hard at running the school, however, C misses important meetings with superiors and has no energy to become involved withcommunity organisations. C thus becomes regarded as an incompetent principal.

Means of promotion

Peter suggests two main means by which a person can affect their promotion rate, ‘Pull’ and‘Push’.

■ Pull is an employee’s relationship – by blood, marriage or acquaintance – with a personabove the employee in the hierarchy.

■ Push is sometimes manifested by an abnormal interest in study, vocational training andself-improvement.

In small hierarchies, Push may have a marginal effect in accelerating promotion; in larger hierarchies the effect is minimal. Pull is, therefore, likely to be more effective thanPush.

Never stand when you can sit; never walk when you can ride; never Push when you can Pull.39


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PARKINSON’S LAW

A major feature of Parkinson’s Law is that of the ‘rising pyramid’, that is, ‘Work expands soas to fill the time available for its completion.’40 General recognition of this is illustrated inthe proverb ‘It is the busiest person who has time to spare.’ There is little, if any, relationshipbetween the quantity of work to be done and the number of staff doing it. Underlying thisgeneral tendency are two almost axiomatic statements:

■ An official wants to multiply subordinates, not rivals.■ Officials make work for each other.

Parkinson goes on to give the following example. If a civil servant, A, believes he is over-worked, there are three possible remedies: (i) resignation; (ii) ask to halve the work by hav-ing it shared with a colleague, B; or (iii) seek the assistance of two subordinates, C and D.The first two options are unlikely. Resignation would involve loss of pension rights, whilesharing work with a colleague on the same level would only bring in a rival for promotion.So A would prefer the appointment of two junior members of staff, C and D. This wouldincrease A’s status. There must be at least two subordinates, so that by dividing work betweenC and D, A will be the only person to understand the work of them both. Furthermore, eachsubordinate is kept in order by fear of the other’s promotion.

When, in turn, C complains of overwork, A, with the agreement of C, will advise theappointment of two assistants, E and F. However, as D’s position is much the same and toavoid internal friction, two assistants, G and H, will also be recommended to help D. Thereare now seven people, A, C, D, E, F, G, H, doing what one person did before, and A’s pro-motion is almost certain.

People making work for each other

With the seven people now employed, the second stage comes into operation. The sevenpeople make so much work for each other that they are all fully occupied and A is actuallyworking harder than ever. For example, an incoming document comes before each of themin turn. E decides it is F’s concern; F places a draft reply for C, who makes drastic amend-ments before consulting with D, who asks G to action it. But then G goes on leave and handsthe file to H, who drafts a minute signed by D and returned to C, who revises the first draftand puts the new version before A. What does A do? A could find many excuses for signingC’s draft unread. However, being a conscientious person, and although beset with problemscreated by subordinates both for A and for themselves, A reads through the draft carefully,deletes the fussy paragraphs added by C and H and restores it to the format presented in thefirst instance by F.

Among other features of organisational practice that Parkinson discusses are principles ofpersonnel selection; the nature of committees; personality screen; high finance – and the‘Law of Triviality’, which means in a committee that the time spent on any agenda item willbe in inverse proportion to the sum involved; layout of the organisation’s administrationblock; and ‘injelitis’ – the disease of induced inferiority.

Relevance of observations

Despite the light vein of Parkinson’s writing, the relevance of his observations can be gaugedfrom comments in the Introduction by HRH The Duke of Edinburgh.

The most important point about this book for serious students of management and administration isthat it illustrates the gulf that exists between the rational/intellectual approach to human organisationand the frequent irrational facts of human nature . . . The law should be compulsory reading at allbusiness schools and for all management consultants. Management structures solve nothing if they donot take the facts of human nature into proper consideration, and one of the most important facts is

Critical reflection

‘The performance of people at work is influenced by the idiosyncratic behaviour ofindividuals and a complex combination of social and cultural factors. Tensions, conflictsand politics are inevitable, as are informal structures of organisation and unofficialworking methods. Above all, therefore, effective management is about the humanaspects of the organisation.’

What is your opinion? How would you describe the situation in your own organisation?


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that no one really likes having to make decisions. Consequently structures may generate a lot of activ-ity but little or no useful work.41

I first read Parkinson’s Law when studying for Economics A-level. Many of the laws are just asrelevant today as they were then. They include: how to ‘manage’ a meeting, and how time spentin meetings is inversely proportional to the importance of each issue – his example is a short dis-cussion on a £10 million power plant followed by a lengthy debate over a £350 bicycle shed.Ever been there? . . . Parkinson’s most famous law is that ‘work expands to fill the time available– as we all make work for one another’. This is still true today.

Iain Herbertson, Managing Director of Manpower42

THE CHANGING WORLD OF WORK ORGANISATIONS

We live in an organisational world. Organisations of one form or another are a necessarypart of our society and serve many important needs. The decisions and actions of manage-ment in organisations have an increasing impact on individuals, other organisations and thecommunity. It is important, therefore, to understand how organisations function and thepervasive influences which they exercise over the behaviour and actions of people.

The power and influence of private and public organisations, the rapid spread of newtechnology and the impact of various socio-economic and political factors have attractedincreasing attention to the concept of corporate responsibilities and business ethics (dis-cussed in Chapter 18). Increasing attention is also being focused on the ethical behaviourthat underlies the decisions and actions of people at work.

The changing nature of organisations and individuals at work has placed growing pres-sure on the awareness and importance of new psychological contracts, discussed above.Forces of global competition and turbulent change make employment guarantees unfeasibleand demand a new management philosophy based on trust and teamwork. People are seenas a responsibility and a resource to be added to. Employees need to abandon the stabilityof lifetime employment and embrace the concept of continuous learning and personaldevelopment.43

It is frequently documented that increasing business competitiveness, globalisation, shift-ing labour markets, rapid technological progress, the move towards more customer-drivenmarkets, a 24/7 society and demands of work/life balance have led to a period of constantchange and the need for greater organisational flexibility. The combination of these influencesis transforming the way we live and work. And this clearly has significant implications fororganisational behaviour. The changing nature of work and the influence of techno-logical innovation, work restructuring and job redesign are all helping to reshape the natureof Britain’s employee relations including shopfloor attitudes among managers, unions andworkers.44 Controversy over protectionism, the alleged exclusive use of labour from other EUstates, and demands for ‘British jobs for British workers’ add to a volatile work environment.

As the number of baby-boomers (born between 1946 and 1963 and typified by a searchfor security) decline and the proportion of Generation Y (born between 1980 and 1995 and

Table 1.1 Contrasting the paradigms

Theory of personhood

Information and knowledge

The purpose of work

Identification

Conflict

Division of labour

Power

Source: Bouchikhi, H. and Kimberly, J. R., ‘The Customized Workplace’, in Chowdhury, S. (ed.) Management 21C, Financial Times Prentice Hall (2000), p. 215.Reproduced with permission from Pearson Education Ltd.

19th century

Interchangeable muscle andenergy

The province of managementalone

Survival

With the firm and/or with theworking class

Disruptive and to be avoided

Managers decide, employeesexecute

Concentrated at the top

20th century

A subordinate with a hierarchy ofneeds

Management-dominated andshared on a limited basis

Accumulation of wealth and socialstatus

With a social group and/or the firm

Disruptive but tolerated and can besettled through collective bargaining

Managers decide, employeesexecute thoughtfully

Limited, functional sharing/empowerment

21st century

Autonomous and reflexiveindividual

Widely diffused

Part of a strategic life plan

The disenfranchised self

A normal part of life

Employees and managersdecide and execute

Diffused and shared


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typified by travel first, then a career) increases this will have a further impact on the futureworld of work.45 See also a fuller discussion in Chapter 3.

Increasing migration is the main source of population growth in the EU. At the same time, Europe is entering a phase of rapid population ageing and shrinking workforce at amoment when technological change is increasing and all Member States are confronted withthe challenges and opportunities of globalisation.46 Demographic ageing is also a main issuedriving the need for greater labour mobility and the importance of lifelong learning whichis discussed in Chapter 5.

New approaches to management and organisational behaviour

In discussing new approaches to management practices for the next decade, Muzyka suggeststhat

Organisational behavior has moved from an emphasis on the structural aspects of functional and cross-functional organisations to more flexible models, including enhanced consideration of short-term,high performance teams.

New ideas of how to motivate and deploy people have developed. A new contract is evolving thatinvolves the exchange of value. Individuals need to be encouraged and permitted to achieve: to performto their highest potential, for their benefit and that of the employer. Organisations are encouraging staffto craft more flexible, value-laden, and specific rules governing their relationships.47

Cloke and Goldsmith refer to the age of traditional management coming to an end and thedecline of hierarchical, bureaucratic, autocratic management. They contend that manage-ment is an idea whose time is up and organisations that do not recognise the need to sharepower and responsibility with all their workers will lose them.48

In their discussion of the 21st-century organisation, Bouchikhi and Kimberly refer to thecustomised workplace that represents a radical departure from commonly accepted man-agement principles and techniques. They summarise the main differences between 19th-,20th- and 21st-century management – see Table 1.1.49


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GLOBALISATION AND THE INTERNATIONAL CONTEXT

One major challenge facing managers in the early 21st century arises from what many com-mentators have identified as an increasingly international or global business environment.The following factors are frequently cited as potential explanatory factors underlying thistrend:

■ improvements in international communication facilities leading to an increased con-sciousness of differences in workplace attitudes and behaviour in other societies;

■ international competitive pressure – for example, the emergence of newly industrialisedand/or free-market nations (the Far East region and former communist bloc countries areoften viewed as examples of this phenomenon);

■ the spread of production methods and other business processes across nations andregions;

■ international business activity, for example: overseas franchising or licensing agreements;outsourcing of business units to other countries (call centres provide a topical example);direct foreign investment and the activities of multinational corporations which, bydefinition, operate outside national boundaries.

French points to large-scale labour migration as one important consequence of 21st-century globalisation. He notes that the 52 victims of the bombings in London on 7 July2005 included people of 13 different nationalities. The vast majority of these people weretravelling to and from work when they were killed. Many had, tragically, come to the UK toimprove their working lives.50 The multicultural make-up of workforces in cities like Londonwas, at any rate, entirely normal at that time. The implications of such labour ‘churn’ in termsof managing people are explored more fully in the section on culture later in this chapter.

In broad terms, globalisation refers to organisations integrating, operating and compet-ing in a worldwide economy. The organisations’ activities are more independent across theworld rather than confined nationally. Globalisation will also impact on the nature of socialresponsibilities and business ethics, discussed in Chapter 18. With globalisation, strategyand structure are inextricably linked. As organisations, and especially large business organ-isations, adopt a more global perspective this will have a significant effect on the broadercontext of management and organisational behaviour.

There is no doubt that the world is moving towards a more global civilisation. Advancesin information and communications technology, greater cross-cultural awareness, increasedmobility of labour, and growing acceptance of the advantages of diversity have resulted ingreater globalisation. The economic recession and financial crisis of late 2008 has furtherhighlighted the significance and impact of globalisation. Not only have financial events inthe United States impacted upon Britain and much of Europe but they have also spilled overto Japan and India. Furthermore, Asian countries with small open economies such asSingapore and Malaysia which import most of their goods and services and are heavilyreliant on Western markets are pulled into downturn, and economic recovery is no longer intheir own hands. Major USA companies struggling at home are likely to attempt to findeconomies in their Asian operations.

Boundaryless organisation

Francesco and Gold refer to the globalisation of the economy that has created new types ofstructures such as the ‘boundaryless organization’ which breaks the traditional demarcationsof authority and task specialisation associated with bureaucracies and other structures.‘Features of a boundaryless organization include a widespread use of project teams, inter-functional teams, networks, and similar structural mechanisms, thus reducing boundariesthat typically separate organizational functions and hierarchical levels.’ A key managementchallenge is the socialisation and training of members of the organisation away from the


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effects of the bureaucratic mentality. Although there is still some form of authority structure,and task and political boundaries, such boundaries are flexible and unlike the rigid hori-zontal and vertical dimensions of traditional organisations.51

The future of globalisation

Globalisation has been subjected to much criticism, in part at least due to lack of clarity asto its exact meaning and to the confusion about organisations that are very large-scale (suchas Walmart in the USA) but have only a small proportion of their operations on a globalbasis. Globalisation has also become the subject of demonstrations and has been blamed forescalating inequalities in the developing world and endangering regional cultures. Thereappears to be a return to strong nationalistic tendencies in countries such as America andFrance. Rugman refers to the illusion of the global company and maintains that there is notrend towards globalisation but strong evidence of a hardening of triad blocs and regionalgroups of the EU, USA and Japan.52 Saul dates the rise of globalisation from 1971 but con-tends that its heyday was in the mid 1990s and it is now in retreat.53

Child points out that globalisation is a complex phenomenon and the term is used in somany different ways it is in danger of losing any useful purpose. Globalisation is a trendrather than a condition that necessarily already exists, it is not spreading evenly across theworld and many unsubstantiated and sweeping claims have been made. ‘The trend towardsglobalisation is a strong one, but it remains to be seen how far and how fast it will spread.It has powerful opponents.’54 Schneider and Barsoux suggest that when firms have a sense ofcapability and previous international experience, internationalisation is more likely to beseen as a learning opportunity rather than as a threat.55

According to McLean, globalisation has ultimately and importantly altered the terms ofreference and resulted in a paradigm shift for the way organisations are managed.

It has altered the way we work, via, for example, sophisticated systems and procedures aimed at streamlining and ‘internationalising’ business activities and practices. It has brought companies closertogether through opening up new markets and through technological innovations, such as e-businessand e-commerce via the World Wide Web. It has increased competition, the speed of innovation, theubiquity of change and environmental complexity and uncertainty.

McLean maintains that globalisation is here to stay – it won’t go away and if anything willget worse. ‘We must face the realism that the world, and indeed organisations and the waythey are managed, will never be the same. We must encompass these changes and harnessthe opportunities they present.’56

However, although national action may be informed by global thinking, an underlyingguideline for multinational organisations is to ‘think globally; act locally’. Consider the area of strategic human resource management (HRM). To what extent do differences in, forexample, legislation, social security provisions, the philosophy of employment relations,arrangements for collective bargaining, management practices, regulation of the employmentcontract, the informal organisation, as well as communications over long distances and dif-ferent time zones, demand attention to HRM at primarily a national level?

Globalisation and the EU

According to the European Commission magazine, globalisation is not a static phenomenonand is, for example, acquiring more of an ‘Asian’ face through the emergence of China andIndia as rapidly expanding economies. The impact of globalisation is often exaggeratedalthough the EU as a whole will gain even if some groups lose, but those net gains will notbe uniformly distributed across groups of individuals, regions and countries.

The challenge for policy makers is to devise policy responses, both at EU and Member State levels, toensure the effects of globalisation are, on balance, as positive as possible . . . Adjusting to globalisationimplies policy developments that will, in turn, have social impacts and create uncertainties that need


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to be managed as social risks. While labour market policies are sure to be prominent and necessary,they are not going to be sufficient, and a coherent and complementary strategy for social protection andsocial inclusion remains vital.57

Globalisation offers great opportunities but also challenges. Technological progress is alsotransforming the way we live and work. In the case of Europe, social policy continues to bea priority. ‘Europe is changing, as is the world, and social policy needs to keep pace – to beflexible and responsive to changing realities.’ One example is the proposal to strengthen andexpand the European Globalisation Adjustment Fund that helps workers who have lost theirjobs as a result of globalisation.58

Cultural environment

Whatever the extent of globalisation, there are clear implications for organisational behav-iour in accommodating international dimensions of management and cultural differences.The importance of people in business understanding cultural differences is illustrated by IBMwhich publishes for members of staff a comprehensive guide to the main dimensions of cul-ture and business, and an introduction to concepts, tips, resources and tools for buildingcross-cultural competencies across national, organisational, team and interpersonal barriers.

Within the global civilisation there are of course many differences in cultural values and attitudes. According to Dana, it is essential for people in business to understand culturaldifferences, but this is not just a matter of noting different ways but rather rooting out thereasons behind these differences. ‘Complex cultural environments require fluency not onlyin words, but more importantly in understanding what is not said – and this takes time,patience and dedication.’ For example, the Japanese believe in sharing and the concept ofharmony (wa) and will often ponder and think through responses as part of a conciliatoryrelationship and to avoid conflict. Other cultures may find the periodic silence awkward anda sign of mistrust.59

In America, there is a strong commitment to the organisation (the corporation) and workand career are taken very seriously (as the author has experienced for himself ). Hard workis accepted as part of the American way of life and good timekeeping is important. It is along-hours culture and generally there is little concern for the work/life balance. There is astrong emphasis on political correctness and little banter or humour at work (again as theauthor found out to his cost), especially not in formal meetings. Americans do not like self-deprecation and find it strange that the British are prepared to laugh at themselves.60

In China there is an enormous bureaucracy and the hierarchy is an important indicationof authority. In the business world you may need to deal with several ascending levels ofmanagement before reaching the senior manager. There can be an apparent lack of courtesy– and rather than being taken as given, respect and trust have to be earned. There is a strongsuperior–subordinate relationship, with staff often undertaking menial tasks for their boss.61

In Japan and Korea, where society tends to be male-dominated, in the business worldmen are more likely to be taking the main role in setting agendas, communications and decision-making.

A CROSS-CULTURAL APPROACH TO MANAGEMENT

One rationale for taking a cross-cultural approach to management lies in the potentialbenefits to be gained in performance terms. Schneider and Barsoux, in advocating culturalawareness of one’s own society, note:

Each country has its unique institutional and cultural characteristics, which can provide sources of com-petitive advantage at one point, only to become liabilities when the environment changes. Managerstherefore need to evaluate the extent to which national culture can interfere with their company’s effortsto respond to strategic requirements, now and in the future.62


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In addition to practically based benefits in considering our own ‘home’ culture, there has been a long tradition of looking to other cultures for examples of ‘successful’ practicewhich could be transplanted into work organisations in different societies. Different modelsmay be dominant at different times. Thompson and McHugh note: ‘In the post-war period thegiant US corporations transferred work organisation and managerial techniques across capitalist countries.’63 However, in subsequent eras Scandinavian autonomous work grouparrangements and Japanese management techniques were examined by and, to some extent,implemented in organisations across the world. Such a search for good practice in othercountries is, of course, ongoing, and an awareness of how other cultures organise work andmanage people is likely to be of continuing benefit in the future.

It is not only businesses that choose to operate in more than one country or import foreign business and management techniques that are affected by cross-cultural concerns.Tayeb reported United States Department of Labor statistics indicating that in the periodfrom 1985 to 2000, only 15 per cent of new entrants to the workforce in the USA were whitemales.64 This highlights the importance of managing diversity in workforces within nationalboundaries. The management of diversity is discussed in Chapter 4.

Managing people from different cultures

Another advantage of adopting a cross-cultural approach to the study of organisational behav-iour, and to the management of people more generally, lies in the recognition of variationsin workplace attitudes and behaviour between individuals and groups in different culturalcontexts. Broeways and Price note that characteristics defining each cultural group can offerinternational managers considerable insights in terms of co-operation with organisationsfrom new and different cultural backgrounds. Given that people brought up in diverse cul-tures frequently work together in the same workplace, we could go further in claiming thatall managers operating in domestically-based work settings should have such insights.65

If we accept this fundamental point then it follows that key topics within the subject areaof organisational behaviour may be influenced by national culture and that we should there-fore re-evaluate models and concepts when applying them to other societies.

One leading writer in the field of cross-cultural studies, Trompenaars, commenting on hisown work, suggests: ‘It helped managers to structure their experiences and provided newinsights for them and their organisations into the real source of problems faced when man-aging across cultures or dealing with diversity.’66 In examining the centrally important topicof motivation, Francesco and Gold inform their readers: ‘Managers must develop organiza-tional systems that are flexible enough to take into account the meaning of work and the relative value of rewards within the range of cultures where they operate.’67

A practical example of the impact of cultural diversity in the organisational behaviour area isprovided in the recollections of an international human resource manager cited in Schneiderand Barsoux: ‘Indonesians manage their culture by a group process, and everyone is linkedtogether as a team. Distributing money differently among the team did not go over all thatwell; so we’ve come to the conclusion that pay for performance is not suitable for Indonesia.’68

It may be extremely useful therefore to examine academic frameworks and research findingswithin the field of organisational behaviour to indicate the extent to which they are applic-able worldwide or, alternatively, subject to meaningful variation in different cultural contexts.

Critical reflection

‘National culture is not only an explanation of human beliefs, values, behaviours and actions:it is arguably the most significant feature underlying the study of organisational behaviour.’

To what extent do you support this contention? What examples can you give in supportof your view? What effect does national culture have in your own organisation?


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IS ORGANISATIONAL BEHAVIOUR CULTURE-BOUND?

While it can be valuable to apply organisational behaviour concepts to diverse cultural settings, it should also be borne in mind that some universal theories and models may, in reality, contain important culturally derived assumptions. When examining classicalframeworks for understanding organisation structure (discussed in Chapter 2), Schneider andBarsoux point out: ‘Theories about how best to organise – Max Weber’s (German) bureau-cracy, Henri Fayol’s (French) administrative model, and Frederick Taylor’s (American) scientific management – all reflect societal concerns of the times as well as the cultural background of the individuals.’69 That writers on work organisations may themselves beinfluenced by their own cultural backgrounds when compiling their work is unsurprising:however, equally it should not be ignored.

More significant still is the possibility that whole topics within organisational behaviour,per se, may be underpinned by a particular culturally derived frame of reference. French, inexamining the topic of leadership from a cross-cultural perspective, notes that ‘there aremany other culturally specific views on the nature of management in work organizations’.70

Buelens et al. suggest that leadership has become a cult concept in America while the Frenchhave no adequate word for the concept in their language. The same authors note that inScandinavian countries, leadership behaviour bears scant resemblance to what is describedin American management literature.71 This raises the possibility that meanings we mayassume to be taken for granted could be interpreted differently or not even perceived at allin different parts of the world.

Culture as understanding

‘For our most basic common link is that we all inhabit this small planet, we all breathe thesame air, we all cherish our children’s future, and we are all mortal’ (John F. Kennedy, 10 June 1963). There are a number of very good reasons why we could usefully understandcultural difference (and similarity) at work, based on new awareness contributing to ourown effectiveness and moreover to the accomplishment of organisational goals. It could alsobe true to say that an appreciation of culture and its effects may be of intrinsic value. Therecould therefore be advantages of cross-cultural awareness which include:

■ increased self-awareness;■ sensitivity to difference;■ questioning our own assumptions and knowledge;■ lessening ignorance, prejudice and hatred.

However, it would be wrong to think that increased cross-cultural awareness or activity willautomatically bring about any of these outcomes.

Adler listed the following inbuilt dangers when multicultural teams operate in a businesssetting:

■ mistrust – including stereotyping;■ miscommunication with potential for reduced accuracy and resultant stress;■ process difficulties, that is failure to agree when agreement is needed or even what con-

stitutes agreement when arriving at decisions.

Adler goes on to examine research on the success of multicultural work teams and concludesthat the evidence suggests that they either perform much better or much worse than teams com-posed of one cultural group.72 There are clearly risks as well as benefits in working across cultures. It is hoped that an appreciation of cross-cultural aspects of organisational behaviourcan help in this regard.

Brooks is one of several commentators who draw our attention to the interlinked natureof culture. Figure 1.7 illustrates the interplay between relevant factors affecting any one

Figure 1.7 Factors affecting national culture

Source: From Brooks, I. Organisational Behaviour: Individuals, Groups and Organisation, third edition, Financial Times Prentice Hall (2006),p. 272. Reproduced with permission from Pearson Education Ltd.


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national culture.73 You may wish to consider how these factors have combined to shape yourown ‘home’ culture and that of one other country with which you are familiar.

FIVE DIMENSIONS OF CULTURE: THE CONTRIBUTION OF HOFSTEDE

Geert Hofstede is one of the most significant contributors to the body of knowledge on culture and workplace difference. His work has largely resulted from a large-scale researchprogramme involving employees from the IBM Corporation, initially in 40 countries. Infocusing on one organisation Hofstede felt that the results could be more clearly linked tonational cultural difference. Arguing that culture is, in a memorable phrase, collective pro-gramming or software of the mind, Hofstede initially identified four dimensions of culture:power distance, uncertainty avoidance, individualism and masculinity.74

■ Power distance is essentially used to categorise levels of inequality in organisations,which Hofstede claims will depend upon management style, willingness of subordinatesto disagree with superiors, and the educational level and status accruing to particularroles. Countries which displayed a high level of power distance included France, Spain,Hong Kong and Iran. Countries as diverse as Germany, Italy, Australia and the USA were characterised as low power distance societies. Britain also emerged as a low-power-distance society according to Hofstede’s work.

■ Uncertainty avoidance refers to the extent to which members of a society feel threatenedby unusual situations. High uncertainty avoidance is said to be characteristic in France,Spain, Germany and many of the Latin American societies. Low to medium uncertaintyavoidance was displayed in the Netherlands, the Scandinavian countries and Ireland. In this case Britain is said to be ‘low to medium’ together with the USA, Canada andAustralia.

■ Individualism describes the relatively individualistic or collectivist ethic evident in thatparticular society. Thus, the USA, France and Spain display high individualism. This con-trasts with Portugal, Hong Kong, India and Greece which are low-individualism societies.Britain here is depicted as a high-individualism society.

■ Masculinity is the final category suggested by Hofstede. This refers to a continuum between‘masculine’ characteristics, such as assertiveness and competitiveness, and ‘feminine’traits, such as caring, a stress upon the quality of life and concern with the environment.High-masculinity societies included the USA, Italy, Germany and Japan. More feminine(low-masculinity) societies included the Netherlands and the Scandinavian countries. Inthis case Britain was located within the high-masculinity group.


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A fifth dimension of culture, long-term/short-term orientation, was originally labelledConfucian work dynamism. This dimension developed from the work of Hofstede and Bond inan attempt to locate Chinese cultural values as they impacted on the workplace.75 Countrieswhich scored highly on Confucian work dynamism or long-term orientation exhibited astrong concern with time along a continuum and were therefore both past- and future-oriented, with a preoccupation with tradition but also a concern with the effect of actionsand policies on future generations.

Evaluation of Hofstede’s work

Extremely influential, the seminal work of Hofstede has been criticised from certain quarters.In common with other writers in this area there is a focus on the national rather than theregional level. The variations within certain countries, for example Spain, can be more or lesssignificant. Again in common with other contributors Hofstede’s classifications includemedium categories which may be difficult to operationalise, accurate though they may be.Some may also find the masculinity/femininity dimension unconvincing and itself stereo-typical. Other writers have questioned whether Hofstede’s findings remain current. Holdensummarises this view: ‘How many people have ever thought that many of Hofstede’s inform-ants of three decades ago are now dead? Do their children and grandchildren really have thesame values?’76

French notes, however, that Hofstede was confident that the cultural differences heidentified would endure. Hofstede, writing in 2001, set out his clear view that differencesbetween national cultures would remain until at least 2100. One should note that Hofstedewas referring here to differences manifested in people’s values. There can be little doubt thatin other respects, for example consumer spending patterns and the prevalence of globalbrands, societies have more and more come to resemble each other.77

Ultimately, readers can assess the value of his work in the light of their own experiencesand interpretations of the business world. Hofstede in his extensive research has attemptedto locate the essence of work-related differences across the world and to relate these to pre-ferred management styles.

CULTURAL DIVERSITY: THE CONTRIBUTION OF TROMPENAARS

Another significant contributor to this area of study is Fons Trompenaars whose later work isco-authored with Charles Hampden-Turner.78 Trompenaars’s original research spanned 15 years,resulting in a database of 50,000 participants from 50 countries. It was supported by casesand anecdotes from 900 cross-cultural training programmes. A questionnaire method com-prised a significant part of the study which involved requiring participants to consider theirunderlying norms, values and attitudes. The resultant framework identifies seven areas inwhich cultural differences may affect aspects of organisational behaviour:

■ Relationships and rules. Here societies may be more or less universal, in which case thereis relative rigidity in respect of rule-based behaviour, or particular, in which case theimportance of relationships may lead to flexibility in the interpretation of situations.

■ Societies may be more oriented to the individual or collective. The collective may takedifferent forms: the corporation in Japan, the family in Italy or the Catholic Church in theRepublic of Ireland. There may be implications here for such matters as individualresponsibility or payment systems.

■ It may also be true that societies differ in the extent to which it is thought appropriate formembers to show emotion in public. Neutral societies favour the ‘stiff upper lip’, whileovert displays of feeling are more likely in emotional societies. Trompenaars cites a surveyin which 80 employees in each of various societies were asked whether they would thinkit wrong to express upset openly at work. The numbers who thought it wrong were 80 inJapan, 75 in Germany, 71 in the UK, 55 in Hong Kong, 40 in the USA and 29 in Italy.


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■ In diffuse cultures, the whole person would be involved in a business relationship and itwould take time to build such relationships. In a specific culture, such as the USA, thebasic relationship would be limited to the contractual. This distinction clearly has implica-tions for those seeking to develop new international links.

■ Achievement-based societies value recent success or an overall record of accomplishment.In contrast, in societies relying more on ascription, status could be bestowed on youthrough such factors as age, gender or educational record.

■ Trompenaars suggests that societies view time in different ways which may in turn influence business activities. The American dream is the French nightmare. Americansgenerally start from zero and what matters is their present performance and their plan to ‘make it’ in the future. This is ‘nouveau riche’ for the French, who prefer the ‘ancienpauvre’; they have an enormous sense of the past.

■ Finally it is suggested that there are differences with regard to attitudes to the environ-ment. In Western societies, individuals are typically masters of their fate. In other parts ofthe world, however, the world is more powerful than individuals.

Trompenaars’ work is based on lengthy academic and field research. It is potentially useful in linking the dimensions of culture to aspects of organisational behaviour which areof direct relevance, particularly to people approaching a new culture for the first time.

The high- and low-context cultures framework

This framework for understanding cultural difference has been formulated by Ed Hall; hiswork is in part co-authored with Mildred Reed Hall.79 Hall conceptualises culture as com-prising a series of ‘languages’, in particular:

■ language of time;■ language of space;■ language of things;■ language of friendships;■ language of agreements.

In this model of culture Hall suggests that these ‘languages’, which resemble shared attitudes to the issues in question, are communicated in very different ways according towhether a society is classified as ‘high’ or ‘low’ context.

The features of ‘high’ context societies, which incorporate Asian, African and Latin Americancountries, include:

■ a high proportion of information is ‘uncoded’ and internalised by the individual;■ indirect communication styles . . . words are less important;■ shared group understandings;■ importance attached to the past and tradition;■ ‘diffuse’ culture stressing importance of trust and personal relationships in business.

‘Low’ context societies, which include the USA, Australia, Britain and the Scandinavian countries, exhibit contrasting features including:

■ a high proportion of communication is ‘coded’ and expressed;■ direct communication styles . . . words are paramount;■ past context is less important;■ ‘specific’ culture stressing importance of rules and contracts.

Other countries, for example France, Spain, Greece and several Middle Eastern societies, areclassified as ‘medium’ context.

To take one example as an illustration: American managers visiting China may find that a business transaction in that country will take more time than at home. They may find itdifficult to interpret the true feelings of their Chinese host and may need to decode non-verbal

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communication and other signals. They may seek to negotiate a rules-based contract whereastheir Chinese counterpart may lay greater stress upon building a mutually beneficial recip-rocal relationship. There is scope for potential miscommunication between the two culturesand interesting differences in interpersonal perception. In so far as much of the managementliterature canon originates from the Anglo-American context, there is again considerablemerit in adopting a cross-cultural perspective.

A concept map of some issues for discussion on cross-cultural organisational differencesis set out in Figure 1.8.

EMERGING FRAMEWORKS FOR UNDERSTANDING CULTURE

Koen distinguishes between etic perspectives on the topic of culture and alternative emicviewpoints. Etic models (exemplified by Hofstede’s work) compare and categorise societiesbased on externally-imposed dimensions – for example the degree of individualism dis-played by members of a culture. In contrast, emic writing on this subject focuses on featuresof individual cultures on their own terms, without recourse to comparison. The emicapproach allows for more in-depth study of any one culture.80 Fan, in an article very muchwithin the emic tradition, locates 71 features of Chinese society (there are of course manymore), which enables us to understand these features from the perspective of the individualsociety. Interestingly, some important features identified by Fan cannot be linked toHofstede’s model.81

Fang argues that the work of Hofstede, Trompenaars and other comparative theorists isitself intrinsically culture-bound in that the bipolar models they constructed reflectedWestern academic traditions. In Chinese culture the concept of yin and yang presupposesthat any one entity, person or society contains opposite characteristics which can co-exist inharmony. If we accept this logic, then a Chinese academic constructing a model of culturewould be far less likely to identify bipolar categories such as high or low power distance ora preoccupation with rules or relationships: rather both elements would be combined withina single culture.82

It is suggested, finally, that management of a multicultural workforce has become anincreasingly prevalent activity and so models of culture should enable managers to workwith diverse groups of people and where appropriate create effective teams. Models of cul-ture which identify cultural difference may be a useful first step in this regard, but increas-ingly managers need to know how to create synergy in such groups in order to secure highperformance levels. Academic models of culture should increasingly address such practicalconcerns in future.

CONVERGENCE OR CULTURE-SPECIFIC ORGANISATIONAL BEHAVIOUR

There is evidence of a narrowing or even increasing elimination of cultural differences inbusiness. Grint sees both positive and negative consequences of aspects of globalisation.While noting that ‘at last we are approaching an era when what is common between peopletranscends that which is different; where we can choose our identity rather than have itthrust upon us by accident of birth’, the same author goes on to suggest: ‘We are heading forglobal convergence where national, ethnic and local cultures and identities are swamped bythe McDonaldization . . . and/or Microsoftization of the world.’83

There is an undoubted narrowing of cultural differences in work organisations and suchnarrowing may apply to individual and group behaviour at work. Thompson and McHughnote, ‘Russia is now experiencing rampant individualism and uncertainty following the col-lapse of the old solidaristic norms’, thus implying convergence of work values.84 For the mostpart, however, it is argued here that growing similarity and harmonisation relate more oftento production, IT and quality systems which are more likely to converge due to best-practice

SYNOPSIS


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comparisons and universal computer standards. Human resource management is, contrast-ingly, less likely to converge due to national institutional frameworks and culturally derivedpreferences. Recent significantly different responses to the need for greater workplace ‘flex-ibility’ in Britain and France illustrate this point. Above all, those aspects of organisationalbehaviour which focus on individual differences, groups and managing people are the mostclearly affected by culture and it is argued strongly here that it is and is likely to remain essen-tial to take a cross-cultural approach to the subject. Organisation culture is discussed inChapter 19.

THE IMPORTANCE OF ORGANISATIONAL BEHAVIOUR

As part of the Financial Times Mastering Management series, Wood, in his discussion of thenature of organisational behaviour, suggests that in its concern for the way people behave inan organisational context, organisational behaviour can be regarded as the key to the wholearea of management.

Is the study of behavior in organizations important? I think it is vital. What the social sciences,humanities and the arts are to university education, OB is to business school education. The more technical a manager’s training, the more important organizational behavior becomes.It is arguably the one area that can carry the burden of bringing the collective wisdom of human history into the decision-making calculus of developing managers. And this is no trivialtask.85

In the foreword to Cloke and Goldsmith’s thought-provoking book The End of Manage-ment, Bennis claims that a distinct and dramatic change is taking place in the philosophyunderlying organisational behaviour, calling forth a new concept of humanity.

This new concept is based on an expanded knowledge of our complex and shifting needs, replacing anoversimplified, innocent, push-button idea of humanity. This philosophical shift calls for a new conceptof organizational values based on humanistic-democratic ideals, which replace the depersonalized,mechanistic value system of bureaucracy. With it comes a new concept of power, based on collabor-ation and reason, replacing a model based on coercion and threat . . . The real push for these changesstems from the need not only to humanize organizations but to use them as crucibles for personal growthand self-realization.86

Critical reflection

‘The study of organisational behaviour is really an art that pretends it is a science andproduces some spurious research findings in a vain attempt to try to prove the point.’

How far do you agree with this statement? Do you think the study of organisationalbehaviour is too subjective ever to be a science? What is the value in the study oforganisational behaviour?

■ Organisations play a major and continuing role inthe lives of us all, especially with the growth of large-scale business organisations. It is important, therefore,to understand how organisations function and thepervasive influences they exercise over the behaviour

of people. Organisational behaviour is broadly con-cerned with the study of the behaviour of peoplewithin an organisational setting. It is also necessary to understand interrelationships with other variablesthat together comprise the total organisation.

1 Discuss critically what you believe are the main factors to bear in mind with, and particular difficultiespresented by, the study of organisational behaviour.

2 Suggest main headings under which factors influencing behaviour in work organisations can best beidentified. Where possible, give practical examples based on your experience.

3 Discuss how organisations may be viewed in terms of contrasting metaphors. How would you apply thesemetaphors to an understanding of your own organisation?

4 Discuss critically the role of management as an integrating activity. Give your views on the responsibility ofmanagement and the manner in which you believe this responsibility should be exercised.

5 Discuss with supporting examples the significance of the psychological contract. List (i) the personalexpectations you have of your own organisation and (ii) what you believe to be the expectations of theorganisation.

6 Give your own views on the changing nature of the work organisation. Give examples from your ownorganisation.

7 Why is it increasingly important for managers to adopt an international approach? What do you see as thefuture of globalisation?

8 Debate fully the importance of national culture to the study of management and organisational behaviour.Where possible, give your own actual examples.

REVIEW AND DISCUSSION QUESTIONS


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■ The behaviour of people in work organisations can be viewed in terms of interrelated dimensionsconcerning the individual, the group, the organisationand the environment. The study of organisationalbehaviour cannot be understood fully in terms of asingle discipline. It is necessary to provide a behav-ioural science approach drawing on selected aspects of the three main disciplines of psychology, sociologyand anthropology together with related disciplinesand influences.

■ Organisations are complex social systems that canbe defined and studied in a number of ways. Oneapproach is to view organisations in terms of con-trasting metaphors. Gauging the effectiveness or success of an organisation is not an easy task, however,although one central element is the importance ofachieving productivity through the effective manage-ment of people. People differ in the manner andextent of their involvement with, and concern for,work. Different situations influence the individual’sorientation to work and work ethic. A major concernfor people today is balancing work and personal commitments.

■ It is through the process of management that effortsof members of the organisation are co-ordinated,directed and guided towards the achievement oforganisational objectives. It is essentially an integrat-ing activity and concerned with arrangements for thecarrying out of organisational processes and the execu-tion of work. How managers exercise the responsibility

for, and duties of, management is important. Atten-tion should be focused on improving the people–organisation relationship.

■ One particular aspect of the relationship betweenthe individual and the organisation is the concept of the psychological contract. This is not a formal,written document but implies a series of mutualexpectations and satisfaction of needs arising from the people–organisation relationship. The nature ofexpectations has an important influence on theemployment relationship and behaviour in workorganisations. Two important observations on thenature of human behaviour are the Peter Principleand Parkinson’s Law. The changing nature of organ-isations and individuals at work has placed increasingfocus on the awareness and importance of manage-ment based on a different moral contract with people.

■ A major challenge facing managers today arisesfrom an increasingly international or global businessenvironment. This highlights the need for a cross-cultural approach to the study of organisationalbehaviour and the management of people. In an increas-ingly global context, managers need to recognise andunderstand the impact of national culture. However,culture is a multifaceted concept and notoriously difficult to pin down. But it has important repercus-sions for the effective management of people and thestudy and understanding of workplace behaviour.Organisational behaviour can be regarded as the keyto the whole of management.

A melting pot for forging successPeter Marsh

FT

MANAGEMENT IN THE NEWS

Paul Belche uses a culinary metaphor to explain howhe tries to coax the best qualities from the mix ofcultures at the steel plant he runs in western Germany,close to the borders with France and Luxembourg. ‘If you mix the yellow part of an egg with mustard andoil without being careful, you will produce somethingunexciting. But, if you pay correct attention to thedetails, you end up with the best mayonnaise,’ hesays. He is explaining his approach to managingDillinger Hütte, a global leader in specialist steels forapplications such as oil pipelines. Mr Belche’s tacticsfor getting the best out of his employees provide wider lessons for managers of diverse workforces.

The company aims to take advantage of thedifferent cultural characteristics of Saarland – theGerman state where it is based that, over thecenturies, has switched between French and Germansovereignty. Of the 5,500 employees in Dillinger, about10 per cent have French as their main language, andthe rest German. Mr Belche, a 56-year-old physicist, is from Luxembourg. ‘The Germans are strong when it comes to practical work. The French are good attheory and we try to get the best of these twocharacteristics,’ he says. Mr Belche poses a question:‘Who do you think would be better at plant safety –the German [speakers] or the French? You might thinkit would be the Germans. But actually it’s the French –they realise they are possibly behind in this field andso they work at it. Sometimes weakness can be astrength – as long as it’s recognised.’

His approach, he says, is to put teams of peoplefrom the different cultures together and encouragethem to learn from each other. The factory follows theFrench approach to dining, with a siren announcingthe end of the lunchtime break at 3pm, an hour laterthan is normal at other German steelworks. ‘This is togive us time for a decent lunch,’ says Mr Belche.When it comes to sales and technology, he says, theaim is to link the practical aspects of steelmaking andits applications, which he considers more German,and the theoretical, which he considers more French.This mixing of the practical and theoretical must belinked to a single aim: making good products that willdo a better job of solving customers’ problems, MrBelche says.

He sums up his philosophy: ‘The biggest costs arethe ones that the accountant will miss. They comefrom the products that you never developed or theprices [of specific types of steel] that you neverreached because you weren’t good enough at selling

them.’ In the tough business of making money out ofsteelmaking, it helps if companies can offer somethingspecial. In the effort to make this happen, the mix ofcultures at Dillinger provides a soufflé of experiences,Mr Belche believes, that gives it a decent chance ofsuccess even in the current uncertain climate.

Source: Marsh, P. ‘A Melting Pot for Forging Success’, FinancialTimes, 8 March 2009. Copyright © 2009 The Financial TimesLimited, reproduced with permission.

Discussion questions1 Analyse the organisational behaviour elements of

this article using the multidisciplinary frameworkillustrated in Figure 1.3. What evidence can youfind about factors relevant to each of the fiveareas?

2 In the light of ideas put forward by Hofstede,Trompenaars and Hall, what do you think are the advantages of having a culturally diverseworkforce like this? What particular challenges do you think it poses for managers?


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This mixing of the practical and theoretical must be linked to a single aim: making good products that will do a better job ofsolving customers’ problems.

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From your own organisational experience, provide for classroom discussion short descriptions (suitablydisguised if necessary) to illustrate the practical application of:

1 The Peter Principle; and

2 Parkinson’s Law.

Explain what you believe to be the practical relevance today of each of these sets of observations and theeffects on other members of staff.

ASSIGNMENT 2

ObjectivesCompleting this exercise should help you to enhance the following skills:

■ Obtain a clearer picture of your own and other people’s work ethic.

■ Explore the importance of work to you and your fixed attitudes about work.

■ Recognise the significance of individuals’ orientations to work within an organisation.

ExerciseYou are required to start by asking yourself this question: is it a good thing to be a worker? Then think carefullyabout your responses to the following questions.

➔

PERSONAL AWARENESS AND SKILLS EXERCISE

You are required to:

1 Select the one that is different from all the others.

2 Discuss in small groups reasons for the individual selections and be prepared to justify your own decision.

3 See whether you can reach a consensus on a single group answer.

Discussion■ To what extent did members of the group understand the thought processes of others?

■ If you were persuaded to change your mind, on what basis was this decision made?

■ What conclusions do you draw from this exercise?

ASSIGNMENT 1


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Five figures are shown below.

How do you feel . . .

■ when you hear the word ‘work’?

■ as you get ready for work?

■ when you know the day is over?

■ about the work you’ve accomplished?

■ about someone who chooses not to work?

■ about taking time off?

■ when you hear the word ‘management’?

■ about taking control of your career?

Compare your responses with those of your colleagues. What conclusions do you draw about the work ethic?

Source: ‘So What’s Your Work Ethic?’ Professional Manager, May 2003, p. 38. Reproduced with permission from the CharteredManagement Institute; and Walmsley, C. J., Your Future Looks Bright, Preston Beach (2002), p. 98.

Discussion■ What do you see as the character traits of a person with a healthy work ethic?

■ To what extent do you agree with the contention that ‘we are employed for our skills but valued for ourattitude’?

■ What effect might different orientations to work have within an organisation and how might they all beaccommodated?

Personal awareness and skills exercise – continued

Virgin Atlantic and Ryanair

CASE STUDY

This case examines two organisations that have many similarities as well as a number of significantdifferences. The essential technology and systemsbehind each organisation may be very similar, but thenature and style of management and its consequentimpact on the way people working in theseorganisations think, feel and behave has created verydifferent organisational cultures. So what are thesimilarities, and what are the differences?

The most obvious similarity is that both VirginAtlantic and Ryanair operate in the UK passenger airtransport industry. Both are relatively recent creationsand might be seen as new entrants to the sector; Virgin’sair transport business was founded by Richard Bransonin 198487 and Michael O’Leary took over in 1994 asChief Executive at Ryanair, a small Irish airline whichhad originally been founded as Guinness Peat Aviationin 1985.88 Both started life in competition with majornational flag-carrier airlines (British Airways and AerLingus respectively) and grew to be major challengers to these established companies. As they grew, their scale

of operations brought them into competition with amuch larger number and range of airlines operatingfrom the UK; Branson’s Virgin Atlantic competes withsome major American and other intercontinentalcompanies such as American Airlines and UnitedAirlines; O’Leary competes with the likes of Flybe andeasyJet in the short-haul market. Both Branson, whowas born in 1950, and O’Leary, who is ten yearsyounger, are individuals with strong and distinctivepersonalities, who have a relentless appetite for mediapresence and who make extensive use of themselves in their frequent marketing communications. They areready to engage in advertising stunts, they readilyappear on the news media in relation to stories aboutthe industry, and their faces and personalities arereadily associated with their companies.

Charting different coursesThere are, however, some major differences. Firstly, theydiffer in their choice of markets. Virgin’s air transportbusiness originated in the long-haul, mainly


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Michael O’Leary (left) and Richard Branson (right) have both created very successful airline companies, but their organisational cultures andvalues are very different from each other.

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transatlantic market which might be highly profitablebut is also extremely competitive. As the business grew,offshoots were founded as independent companies: forinstance, Virgin Blue in Australia, and Virgin Express,which has its hub in Brussels and serves Europeandestinations outside the UK and does not competedirectly with Ryanair. Ryanair started as a short-haulcarrier and has remained so, focusing on Europeandestinations from a small number of airports in the UK and Eire. Their competitive positioning is also very different. Ryanair is well known as ‘The Low CostAirline’; the first thing that hits you in its publicitymaterial is the price89 and this is very clearly the core ofits business strategy. The ‘no frills’ approach means justthat; even the in-flight food is limited to sandwichesand costs extra. Virgin, by contrast, attracts passengersby offering a superior experience and is firmlypositioned at the quality end of the market. Publicitymaterial emphasises style and comfort, and there is a range of in-flight extras which, even at the economyend of the price range, includes in-flight food anddrinks and packs of ‘amenities’ such as flight socks, eye shades and lip balm.

As was noted, both men love publicity stunts andoften use humour in their public communications.Branson is usually smiling and in poses which indicatefun and a desire to show close links with his staff andpopularity with employees, customers and the public ingeneral. O’Leary is much more likely to be acerbic andcritical, and uses what might euphemistically be called‘colourful’ language in his public statements. He seemsto care little about public opinion of him as anindividual, and has been in trouble with the advertisingstandards authorities in the UK and Eire on more thanone occasion. The ‘offensive’ adverts have upset peoplefrom British Airways (who were accused of being‘Expensive ba****ds’ in 1999), to the Catholic Church

(the ‘Fourth Secret of Fatima’ advert of 2000 featuredthe pope)90 and even the newlyweds French PresidentNicolas Sarkozy and Carla Bruni in 2008.91

The brand values are also very different; Virgin as a collection of businesses does everything from runningtrains to manufacturing contraceptives via luxury hotelsand financial services. All these enterprises are linked by the single powerful central image of the founder and the characteristic red livery. Ryanair does one thingand one thing only, but in doing so sets an almostbuccaneering tone, readily taking on authorities such as the European Union over competition policy and theBritish Airports Authorities over their charging practices.In July 2009 O’Leary announced a reduction in flightsfrom Stansted, citing the high charges levied by theairport and blaming increased passenger taxes in the UK for falling demand (characteristically direct, heobserved that ‘people have to pay £10 for the privilegeof getting on and off this rain-sodden and weather-beaten island’).92 Branson has certainly had his conflictswith British Airways, notably over the ‘dirty tricks’ affair of the early 1990s, but is not likely to challengegovernments. Virgin tries hard to build customer loyaltyand gain repeat business through brand-related servicevalues; Ryanair’s repeat business (and for somecustomers the Ryanair experience is one which inspiresthe thought ‘never again’) is based on price, not loyaltyto the brand. These differences have a significant effecton the nature of employment relations and thepsychological contract between the two companies and their employees.

Working for Richard and MichaelThe brand image and the treatment of customers byeach company have a bearing on the nature of theorganisational relationship with staff, and vice versa.Aspects of organisational behaviour therefore show


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through in a variety of interconnected ways to createconsistent and very different cultures. At Virgin Atlantic,cabin crew are there to be helpful and welcoming; theyare important projectors of the brand image and theirjob is partly to encourage the all-important customerloyalty which generates continuing profit. Theimportance of staff as carriers of company values isclearly reflected in the recruitment material and otherstatements about the nature of work at Virgin Atlantic.

Virgin Atlantic brings together all manner of people in allmanner of roles, all playing a crucial role in the smoothrunning of a very complex operation. But whoever you areand wherever you join us, you’ll never stop thinking ofour customers and what we can do for them.

From frontline cabin crew to IT analysts, everyone hereplays a role in delivering the Virgin brand. That meansusing initiative, taking responsibility for your actions andbeing ready to support those around you at all times.

Similarly, you’ll play your part in maintaining thefriendly, unconventional professionalism that makesVirgin Atlantic such a unique place of work.93

The recruitment process is lengthy and includes a groupinterview which acts as a filter for further tests beforejob offers are made. Training programmes for cabincrew and other staff are run from a dedicated trainingcentre, and there is a wide range of benefits for full-timestaff including seven free flights a year, private pensionsand medical schemes and discounted goods andservices across the Virgin group.

At Ryanair, the cabin crew work for a supplierorganisation called Crewlink. You can discover whetheryou qualify to apply for a job by answering a series ofeleven on-line questions. Successful applicants for cabincrew posts are trained at one of Crewlink’s centres, andare expected to pay an up-front charge of a2,000 for thesix-week course (or with a a550 deposit it can be offsetagainst the initial year’s salary at a total cost of a2,350).Students are not paid to attend the course; successfulgraduates get a three-year contract with Crewlink to

work on Ryanair flights on a shift work basis. Ryanaircrew are not expected to make overnight stops at itsdestinations. Post-tax starting salary is listed as beinga1,200 per month; Crewlink suggests that after theinitial three years, and subject to satisfactory performance,a permanent job with Ryanair itself might be availableat a salary of up to a30,000 per annum. Staff must beflexible in terms of their work location across over 30 European centres, and Crewlink does not guaranteework if individuals specify a preferred work location.94

By comparison with long-haul, a short-hauloperation involves very tight turnaround times andRyanair aims for 20 minutes. This creates a verydifferent pace and set of pressures on the workforcecompared with those at Virgin, which is likely to havehigher staffing levels and to give crew longer rest breaksin the destination locations between flights. The natureof customer relations, by contrast, might be moredemanding at Virgin than at Ryanair; staff andcustomers are together for longer and the brand imagemust be maintained.

Complaints and horror stories can be found aboutwork at both organisations; however, Ryanair is subjectto a more systematic and organised campaign ofcriticism for its employment practices by trade unionorganisations. In particular, the International TransportWorkers’ Federation95 has run a major campaign on itswebsite since 2004 called ‘Ryan-be-fair’, the purpose ofwhich is to pressurise the management at Ryanair intoaccepting the role of trade unions in representing theworkforce. It collects comments from disgruntled crewand former workers which give a flavour of theoperational stresses and organisational culture.

Both organisations have been successful; Ryanair hasturned in significant profits for several years in a sectorwhich is prone to disruption and is holding its owndespite the recession.96 Virgin also continues to go fromstrength to strength commercially.97 But the cultures andvalues which get them off the ground could hardly bemore different.

Your tasks1 Using Morgan’s organisational metaphors, identify two which you think might be applied appropriately to

Virgin Atlantic, and two to Ryanair. How would you justify your choices?

2 Critically evaluate both organisations in terms of one or more of the descriptions of the psychologicalcontract given in the chapter.

3 Identify the different demands which might be made of managers to achieve organisational effectiveness ineach business (you could use Figure 1.4 as a framework). What are the implications for the role anddevelopment of managers in each case?


39

Notes and references

1 See, for example, Robbins, S. P. and Judge, T. A.Organizational Behavior, thirteenth edition, Pearson Prentice Hall (2009).

2 A similar view is taken in Watson, T. J. Organising andManaging Work: Organisational, Managerial and StrategicBehaviour in Theory and Practice, Financial Times PrenticeHall (2002).

3 See, for example, Billsberry, J. ‘There’s Nothing So Practicalas a Good Theory: How Can Theory Help ManagersBecome More Effective?’, in Billsberry, J. (ed.) The EffectiveManager: Perspectives and Illustrations, Sage Publications(1996), pp. 1–27; and Naylor, J. Management, secondedition, Financial Times Prentice Hall (2004), pp. 13–15.

4 Lee, R. A. ‘There Is Nothing so Useful as an AppropriateTheory’, in Wilson, D. C. and Rosenfeld, R. H. ManagingOrganisations: Text, Readings and Cases, McGraw-Hill(1990), p. 31.

5 Patching, K. Management and Organisation Development,Macmillan Business (1999), p. 11.

6 Drummond, H. Introduction to Organisational Behaviour,Oxford University Press (2000).

7 Morgan, G. Creative Organisation Theory, Sage Publications(1989), p. 26.

8 Hellriegel, D., Slocum, J. W. and Woodman, R. W.Organizational Behavior, eighth edition, South-WesternPublishing (1998), p. 5.

9 ‘Introduction to Module 6, Organisational Behaviour’,Financial Times Mastering Management, FT PitmanPublishing (1997), p. 216.

10 Wilson, F. M. Organisational Behaviour and Work: A CriticalIntroduction, second edition, Oxford University Press(2004), pp. 1–2.

11 McPhee, N. ‘Gaining Insight on Business andOrganisational Behaviour: The Qualitative Dimension’,International Journal of Market Research, vol. 44, Winter2002, pp. 53–72.

12 Yip, G. S. ‘Global Strategy in the Twenty-First Century’, in Crainer, S. and Dearlove, D. (eds) Financial TimesHandbook of Management, second edition, Financial Times Prentice Hall (2001), p. 151.

13 Morgan, G. Creative Organisation Theory, Sage Publications(1989), p. 26.

14 Drummond, H. Introduction to Organisational Behaviour,Oxford University Press (2000).

15 Goldthorpe, J. H., Lockwood, D., Bechofer, F. and Platt, J.The Affluent Worker, Cambridge University Press (1968).

16 Bunting, M. Willing Slaves, HarperCollins (2004).17 Herman, S. W. ‘How Work Gains Meaning in Contractual

Time: A Narrative Model for Reconstructing the WorkEthic’, Journal of Business Ethics, vol. 38, no. 1–2, June2002, pp. 65–79.

18 Waller, D. ‘Are You What You Do?’, Management Today,October 2008, pp. 42–6.

19 De Botton, A. ‘What’s Work Really For?’, ManagementToday, April 2009, pp. 54–8. See also de Botton, A. ThePleasures and Sorrows of Work, Hamish Hamilton (2009).

20 Reeves, R. ‘Reality Bites’, Management Today, March 2003,p. 35.

21 Mann, S. ‘Balance in Favour of Aussies’, ProfessionalManager, vol. 17, no. 5, September 2008, pp. 38–9.

22 ‘The meanings of work’, research*eu, The European Union’sResearch Magazine, no. 55, January 2008, pp. 27–8.

23 Willmott, B., in conversation with De Vita, E. ‘Best Fit’,Management Today, September 2008, pp. 54–8.

24 See, for example, Argyris, C. Integrating the Individual andthe Organisation, John Wiley & Sons (1964).

25 Egan, G. ‘The Shadow Side’, Management Today, September1993, pp. 33–8.

26 Bassett, G. ‘The Case Against Job Satisfaction’, BusinessHorizons, vol. 37, no. 3, May–June 1994, pp. 62, 63.

27 Gratton, L. The Democratic Enterprise, Financial TimesPrentice Hall (2004), p. 208.

28 CIPD, Managing the Psychological Contract, CharteredInstitute of Personnel and Development (December 2004).

29 Stalker, K. ‘The Individual, the Organisation and thePsychological Contract’, British Journal of AdministrativeManagement, July/August 2000, pp. 28, 34.

30 Cartwright, J. Cultural Transformation, Financial TimesPrentice Hall (1999), p. 39.

31 Emmott, M. ‘The Psychological Contract: Managers DoMake a Difference’, Manager, The British Journal ofAdministrative Management, September/October 2001, p. 15.

32 M.C.A. Awards, Management Today, April 2005, p. xix.33 Hiltrop, J. M. ‘Managing the Changing Psychological

Contract’, Employee Relations, vol. 18, no. 1, 1996, pp. 36–49.

34 CIPD, Managing the Psychological Contract, CharteredInstitute of Personnel and Development (December 2004).

35 Ghoshal, S., Bartlett, C. A. and Moran, P. ‘Value Creation:The New Millennium Management Manifesto’, inChowdhury, S. (ed.) Management 21C, Financial TimesPrentice Hall (2000), pp. 121–40.

36 Furnham, A. and Taylor, J. The Dark Side of Behaviour atWork, Palgrave Macmillan (2004).

37 ‘The Psychological Contract’, Checklist 161, CharteredManagement Institute, March 2007.

38 Peter, L. J. and Hull, R. The Peter Principle, Pan Books(1970), p. 22.

39 Ibid., p. 56.40 Parkinson, C. N. Parkinson’s Law, Penguin Modern Classics

(2002), p. 14.41 HRH The Duke of Edinburgh, ‘Introduction’ to Parkinson,

C. N. Parkinson’s Law, Penguin Modern Classics (2002), pp. 9–10.

42 Herbertson, I. ‘Books’, Management Today, May 2000, p. 4.43 Ghoshal, S., Bartlett, C. A. and Moran, P. ‘Value Creation:

The New Millennium Management Manifesto’, inChowdhury, S. (ed.) Management 21C, Financial TimesPrentice Hall (2000), pp. 121–40.

44 Taylor, R. ‘The Future of Employment Relations’, Economicand Social Research Council, September 2001, pp. 7–8.

45 Stern, S. ‘My Generation’, Management Today, March 2008,pp. 40–6.

46 ‘Migration: A Challenge and an Opportunity’, Social Agenda,the magazine of the European Commission, no. 17, June 2008, p. 14.

47 Muzyka, D. ‘Thriving on the Chaos of the Future’, inPickford, J. (ed.) Financial Times Mastering Management 2.0,Financial Times Prentice Hall (2001), p. 8.

48 Cloke, K. and Goldsmith, J. The End of Management and theRise of Organisational Democracy, Jossey-Bass (2002).

49 Bouchikhi, H. and Kimberly, J. R. ‘The CustomizedWorkplace’, in Chowdhury, S. (ed.) Management 21C,Financial Times Prentice Hall (2000), pp. 207–19.


40

50 French, R. Cross-Cultural Management in Work Organisations,CIPD (2007).

51 Francesco, A. M. and Gold, B. A. InternationalOrganizational Behavior, second edition, Pearson PrenticeHall (2005), p. 246.

52 Rugman, A. ‘The Illusion of the Global Company’, inPickford, J. (ed.) Financial Times Mastering Management 2.0,Financial Times Prentice Hall (2001), pp. 129–33.

53 Saul, J. R. The Collapse of Globalism, Atlantic Books (2005).54 Child, J. Organisation: Contemporary Principles and Practice,

Blackwell Publishing (2005), p. 30.55 Schneider, S. C. and Barsoux, J. Managing Across Cultures,

second edition, Financial Times Prentice Hall (2003), p. 142.

56 McLean, J. ‘Globalisation Is Here to Stay’, Manager, TheBritish Journal of Administrative Management, June/July2006, p. 16.

57 Begg, I. Social Agenda, European Commission, issue 17,June 2008, pp. 24–5.

58 Van der Pas, N. G. Social Agenda, European Commission,issue 18, October 2008, p. 2.

59 Dana, L. ‘Culture is of the Essence in Asia’, in Pickford, J.(ed.) Financial Times Mastering Management 2.0, FinancialTimes Prentice Hall (2001), pp. 139–43.

60 See, for example, Fletcher, W. ‘The American Way’,Management Today, August 2005, pp. 46–9.

61 See, for example, Slater, D. ‘When in China . . .’,Management Today, May 2006, pp. 46–50.

62 Schneider, S. C. and Barsoux, J. Managing Across Cultures,second edition, Financial Times Prentice Hall (2003), p. 9.

63 Thompson, P. and McHugh, D. Work Organisations: A Critical Introduction, third edition, Palgrave (2002), p. 81.

64 Tayeb, M. The Management of a Multicultural Workforce,John Wiley & Sons (1996).

65 Broeways, M. J. and Price, R. Understanding Cross-CulturalManagement, Financial Times Prentice Hall (2008).

66 Trompenaars, F. ‘Trans-Cultural Competence’, PeopleManagement, 22 April 1999, p. 31.

67 Francesco, A. M. and Gold, B. A. InternationalOrganizational Behavior, second edition, Pearson PrenticeHall (2005), p. 140.

68 Schneider, S. C. and Barsoux, J. Managing Across Cultures,second edition, Financial Times Prentice Hall (2003), p. 167.

69 Ibid., p. 86.70 French, R. Cross-Cultural Management in Work Organisations,

CIPD (2007), p. 106.71 Buelens, M., van den Broek, H. and Vanderheyden, K.

Organisational Behaviour, third edition, McGraw-Hill(2006).

72 Adler, N. J. International Dimensions of OrganisationalBehaviour, fourth edition, South-Western CollegePublishing (2002).

73 Brooks, I. Organisational Behaviour: Individuals, Groups andOrganisation, third edition, Financial Times Prentice Hall(2006), p. 272.

74 Hofstede, G. Culture’s Consequences: International Differencesin Work-Related Values, Sage Publications (1980).

75 Hofstede, G. and Bond, M. H. ‘The Confucius Connection:From Cultural Roots to Economic Growth’, OrganisationalDynamics, Spring 1988, pp. 4–21.

76 Holden, N. J. Cross-Cultural Management: A KnowledgeManagement Perspective, Financial Times Prentice Hall(2002), p. 51.

77 French, R. Cross-Cultural Management in Work Organisations,CIPD (2007).

78 Trompenaars, F. and Hampden-Turner, C. Riding the Wavesof Culture, second edition, Nicholas Brearley (1999).

79 Hall, E. T. and Hall, M. R. Understanding CulturalDifferences, Intercultural Press (1990).

80 Koen, C. Comparative International Management, McGraw-Hill (2005).

81 Fan, Y. ‘A Classification of Chinese Culture’, Cross-CulturalManagement, vol. 7, no. 2, 2000, pp. 1–10.

82 Fang, T. ‘A Critique of Hofstede’s Fifth National CultureDimension’, International Journal of Cross-CulturalManagement, vol. 3, no. 3, 2003, pp. 337–68.

83 Grint, K. The Sociology of Work, second edition, Polity Press(1998), p. 298.

84 Thompson, P. and McHugh, D. Work Organisations: ACritical Introduction, third edition, Palgrave (2002), p. 74.

85 Wood, J. ‘Deep Roots and Far From a “Soft” Option’,Financial Times Mastering Management, Financial TimesPitman Publishing (1997), p. 217.

86 Bennis, W. ‘Foreword’, in Cloke, K. and Goldsmith, J. TheEnd of Management and the Rise of Organisational Democracy,Jossey-Bass (2002), p. ix.

87 Virgin Atlantic website All About Us available athttp://www.virgin-atlantic.com/en/us/allaboutus/ourstory/history.jsp.

88 Creaton, S. Ryanair: How a Small Irish Airline ConqueredEurope, Aurum (2004).

89 For instance at the Ryanair website, www.ryanair.com.90 Creaton, S. Ryanair: How a Small Irish Airline Conquered

Europe, ch. 15.91 BBC news website ‘Sarkozy Pair Win Ryanair Ad Case’,

news.bbc.co.uk, 5 February 2008.92 Allen, K. ‘Ryanair Reduces Stansted Flights by 14%’,

Guardian, 22 July 2009, p. 24.93 Virgin Atlantic website ‘Working for Us’, http://www.

virgin-atlantic.com/en/gb/careers/workingforus/index.jsp.94 Crewlink, www.crewlink.ie.95 International Transport Workers’ Federation website,

www.iftglobal.org.96 Ryanair website, Investor Relations pages; Full Year Results

2 June 2009.97 BBC news website ‘Profits Jump at Virgin Atlantic’,

news.bbc.co.uk, 26 May 2009.

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Documents

Chapter 1 the Nature of Organisational Behaviour