Management and Organisational Behaviour

.

2

Management and Organisational Behaviour

• Management

• Self Awareness and individual differences

• Communication

• Conflict Management

• Negotiations

• Managing Change

• Teams and Groups

• Leadership

• Motivation

• Power in Organisations

• Organisational structure

• Organisational Culture

3

The organizationManagers

Achieve Objectives

(Planning, Organizing, Leading, Controlling)

BY Making decisions

Motivating

Delegating

Communicating

Managing groups

Internal Environment

Market Environment

Suppliers

Customers

Competitors

Intermediaries

Macro environment

PESTEL context

Political

Economic

Technological

Environmental/

EcologicalSocial

Legal

4

Organisational Behaviour

Individual Factors

Group factors

Structural factors

Process factors

Management factors

Organisational effectiveness

Quality of working life

The organisation‟s past present and future

5

„Classical‟ organisation

1800 – 1970

Industrial age

__________________

• organisation as a

machine

• rigid, hierarchical

• focus on internal

processes

• mass production

• routine, repetitive

work

• full-time employees

• direct supervision

• emphasised control,

predictability

• find the one best way

• avoid uncertainty

„Modern‟ organisation

1970 – 1990

technological age

__________________

• organisation as an

open system

• decentralised

• focus on human

relations

• customisation

• teamworking

• flexible working

patterns

• local problem solving

• emphasised quality,

customer service

• contingency

approach

• manage uncertainty

„Post-modern‟ organisation

1990 –

Information age

__________________

• organisation as flexible

tool

• action matters, not design

• lean, efficient, innovative

• time to market

• entrepreneurial units

• networks, subcontractors

• rules don’t matter

• emphasises change, flux,

quick decisions

• response-oriented

• exploit uncertainty

6

Preparing for apostmodern future

• Learn to take nothing for granted

• Keep asking who benefits from this way of looking at things

• Focus on how language is used to construct reality and identity

• Focus on what is not said, on what is hidden by conventional expressions

• Avoid „one right answer‟

• Dispute the categories into which we place people

• Forget the belief that everyone should think the same way that you do

• Be reflexive, and challenge your own assumptions

• Imagine alternatives to our „taken for granted‟ understanding of organisational life

• Consider change „as a form of thrill‟, as a welcome experience

(Hatch, 1997)

7

Management

Management is the planning, organising,

leading and controlling of human and other

resources to achieve all organisational goals

efficiently and effectively

The Process of

Management

Leading

OrganizingControlling

Planning

9

Managerial Roles-Mintzberg

Decisional

• Entrepreneur

• Disturbance

Handler

• Resource Allocator

• Negotiator

Interpersonal

• Figurehead

• Leader

• Liaison

Informational

• Monitor

• Disseminator

• Spokesperson

Fundamental Changes Facing Management

Globalization

Technological

Innovation

Deregulation

Demographic

Changes

Political

Changes

Uncertainty

Turbulence

Change

Responsive

Adaptive

Fast

Forces Are

Creating

Companies

Must Be

11

FOUNDATIONS OF INDIVIDUAL BEHAVIOUR

FIRST

LANGUAGE

AGE

MENTAL / PHYSICAL

ABILITIES &

CHARACTERISTICS

RACE ETHNIC

HERITAGE

GENDER

EDUCATION

SEXUAL

ORIENTATION

MILITARY

EXPERIENCE

WORK STYLE

INCOME

RELIGION

WORK

EXPERIENCE

ORGANISATIONAL

ROLE and LEVEL

COMMUNICATION

STYLE

FAMILY STATUS

GEOGRAPHIC

LOCATION

21 March 2009 12

FOUNDATIONS OF INDIVIDUAL BEHAVIOUR

• Emotions

– Lazarus:

• Emotions are “complex, patterned, organismic reactions to how we think we are doing in our lifelong efforts to survive and flourish and to achieve what we wish for ourselves”

– Emotional Intelligence: “

• the ability to sense, understand & effectively apply the power & acumenof emotions as a source of energy, information, connection & influence”(Cooper and Sawaf)

• Characteristics of an Emotionally Intelligent Individual

– A clear understanding of self

– A clear understanding of, and a passion for one‟s purpose & direction in life

– Clear values & conviction to principles of right & wrong

– Inner peace which provides for personal power & influence

– Wisdom to turn down demands which will destabilise the balance of one‟s life

– Maintenance of significant & close relationships with a number of family members and friends

– A positive and optimistic orientation

13

FOUNDATIONS OF INDIVIDUAL BEHAVIOUR

Perception

PERCEPTION and

INTERPRETATION

ENVIRONMENTAL STIMULI

• ATTITUDES

• MOTIVATION

• BEHAVIOUR

• STEREOTYPES

• SELF-FULFILLING PROPHECY

• ATTRIBUTIONS

THE

INDIVIDUAL

IMPORTANT

PERCEPTUAL

OUTCOMES

RESPONSE

14

FOUNDATIONS OF INDIVIDUAL BEHAVIOUR

Stress ENVIRONMENTAL

FACTORSEconomic Uncertainty

Political Uncertainty

Technological Uncertainty

ORGANISATIONAL

FACTORSTask Demands

Roles Demands

Interpersonal Demands

Organisational structure

Organisatinal leadership

Organisation‟s life stage

INDIVIUDAL

FACTORSFamily Problems

Economic Problems

Personality

INDIVIDUAL

DIFFERENCESPerception

Job Experience

Social Support

Locus of Control

Hostility

EXPERIENCE

D STRESS

PHYSIOLOGICAL

SYMPTONSHeadaches

High Blood Pressure

Heart Disease

PSYCHOLOGICAL

SYMPTONSAnxiety

Depression

Decrease in Job

Satisfaction

BEHAVIOURAL

SYMPTONSProductivity

Turnover

Absenteeism

15

MOTIVATION THEORIES

NEED THEORIES • Maslow’s Hierarchy of Needs

–Physiological, Safety, Belongingness, Esteem, Self-

Actualisation

• Alderfer’s ERG Theory

–Existence, Relatedness and Growth

• Herzberg’s Motivator-Hygiene Theory

–Hygiene Factors: company policy, administration, salary,

working environment, supervision

–Motivators: interesting work which provides for

achievement, recognition, responsibility and advancement

• McClelland’s Theory of Needs

–NAch

–NAff

–NPow

16

MOTIVATION THEORIES

NEED THEORIES • Maslow’s Hierarchy of Needs

–Physiological, Safety, Belongingness, Esteem, Self-

Actualisation

• Alderfer’s ERG Theory

–Existence, Relatedness & Growth

• Herzberg’s Motivator-Hygiene Theory

–Hygiene Factors: company policy, administration, salary,

working environment, supervision

–Motivators: interesting work which provides for

achievement, recognition, responsibility & advancement

• McClelland’s Theory of Needs

–NAch

–NAff

–NPow

17

MOTIVATION -THEORIES

EXPECTANCY

THEORY

EQUITY

THEORY

• Employees make comparisons about their

–Job inputs (education, experience, effort, competence, etc.)

–Job outputs (salary, raises, recognition, etc.)

OUTCOME

Organisational

Personal

INDIVIDUAL

PERFORMANCE

INDIVIDUAL

EFFORT

EXPECTANCY INSTRUMENTALITY VALENCE

18

MOTIVATION -THEORIES

GOAL

SETTING

THEORY

Goals affect employee motivation & performance:

• Goals direct attention

• Goals regulate effort

• Goals increase persistence

• Goals encourage the development of goal-attainment strategies and courses

of action

LEARNING

THEORIES

Operant Conditioning

• Positive Reinforcement

• Negative Reinforcement

• Extinction

• Punishment

Social Learning Theory

• Vicarious Learning (Observational Learning)

• Self-Reinforcement

• Self-Efficacy

19

GROUP DEVELOPMENT and MATURITY

TUCKMAN’S FIVE STAGES OF GROUP DEVELOPMENT

INDIVIDUAL

ISSUES

“How do I

fit in?”

“What‟s my role

here?”

“What do the others

expect me to do?”

“How can I best

perform my

role?”

“What‟s next?”

GROUP

ISSUES

“Why are

we here?”

“Why are we fighting

over who is in charge

and who does what?”

“Can we agree on

roles and work as a

team?”

“Can we do the

job properly?”

“Can we help

members with

transition

out?”

FORMING

STORMING

NORMING

PERFORMING ADJOURNING

Return to Independence

Dependence/ Interdependence

Independence

20

INFLUENCES ON GROUP BEHAVIOUR AT WORK

• NORMS

– Assumption/expectation held by group members concerning what kind of behaviour is right or wrong/good or bad

• TYPICAL NORM STATEMENTS

– „Around here we always….‟

– „We never….‟

• EXAMPLES (Hawthorne Experiments):

– Not to be a…

• …rate-buster

• … chiseller

• … squealer

• … officious

• VALUE OF NORMS

– Supports small-group identity

– Provides order – avoids chaos

– Provides standards – evaluation & control

– Influences behaviour

21

COHESIVENESS

GROUP COHESIVENESS & PERFORMANCE

MEMBERSHIP

• size of group

• compatibility of members

• Permanence

WORK ENVIRONMENT

• Nature of the task

• Physical setting

• Communications

• Technology

ORGANISATIONAL

• Management & Leadership

• Personnel Policies & Procedures

• Success

• External Threat

GROUP DEVELOPMENT &

MATURITY

• Forming

• Storming

• Norming

• Performing

22

TEAM ROLES (Belbin)

TYPE TYPICAL

FEATURES

POSITIVE QUALITIES ALLOWABLE

WEAKNESSES

CW:

COMPANY

WORKER

Conservative, Dutiful,

Predictable

Organising Ability, Practical,

Common Sense, Hardworking,

Self Discipline

Lack of flexibility,

unresponsiveness to

proven ideas

CH:

CHAIRMAN

Calm, self-confident,

controlled

A capacity for treating &

welcoming all potential

contributors on their merits &

without prejudice. A strong sense

of objectives

No more than ordinary

i.t.o. intellect or creative

ability

SH: SHAPER Highly strung,

outgoing, dynamic

Drive & a readiness to challenge

inertia, ineffectiveness,

complacency or self-deception

Proneness to

provocation, irritation &

impatience

PL: PLANT Individualistic, serious

minded, unorthodox

Genius, imagination, intellect,

knowledge,

Up in the clouds,

inclined to disregard

practice details or

protocol

23

TEAM ROLES

TYPE TYPICAL FEATURES POSITIVE QUALITIES ALLOWABLE

WEAKNESSES

RI RESOURCE

INVESTIGATOR

Extroverted,

enthusiastic, curious,

communicative.

A capacity for contacting people &

exploring anything new. An ability

to respond to challenge.

Liable to lose interest

once the initial

fascination has passed

ME

MONITOR-

EVALUATOR

Sober, unemotional,

prudent

Judgement, discretion, hard-

headeness

Lacks inspiration or the

ability to motivate others

TW TEAM

WORKER

Socially oriented, rather

mild, sensitive

An ability to respond to people & to

situations, and to promote team

spirit

Indecisiveness at

moments of crisis

CF:

COMPLETE

FINISHER

Painstaking, orderly,

conscientious, anxious

A capacity for follow-through A tendency to worry

about small things. A

reluctance to „let go‟

24

GROUPS and TEAMS

• Groups vs Teams

• Groups, Teams and Organisational Effectiveness

– Enhance organisational performance

– Enhance responsiveness to customers

– Increase innovation

– Enhance employee motivation and satisfaction

• Types of Groups & Teams

– Formal and Informal

• Group Dynamics

– Groups size, task and roles

– Group leadership

– Group development

– Group norms

– Group cohesiveness

• Managing Groups and Teams for High Performance

25

COMMUNICATION

• The Communication Process

• Communication Media

Complexity of Problem / Situation

Richness of

Communication

Medium

Low

Low

High

High

OVERSIMPLIFICATION

ZONE(medium does not provide the

necessary information)

OVERLOAD ZONE(medium provides more

information than necessary)

Formal

Numeric

Formal

Written

Personal

Written

Telephone

Face-to-Face

ZONE OF EFFECTIVE

COMMUNICATION

The Communication Process

Encodes

Decodes

Receiver

Encodes

Decodes

Sender

Feedback

Channel

Noise

Barriers to Interpersonal

Communication

SemanticsPerception

Ambiguity DefensivenessNon-verbalElements

Organizational Communication

UpwardUpward

DownwardDownward

Formal

Informal

Lateral

Barriers to Organizational

Communication

• Distortion

• Rumours

• The grapevine

• Information overload

• Narrow viewpoints

Barriers to Organizational

Communication

• Status differences

• Organizational culture

• Structural restrictions

• Boundary differences

• Diversity issues

31

COMMUNICATION

• Communication Networks

• Technical Advances in Communication

• Communication Skills for Managers

– Managers as Senders

– Skills for Managers as Receivers

– Understanding of Linguistic Styles

32

LEADERSHIP

• The Nature of Leadership

– “the ability to influence a group toward the achievement of goals”

(Robbins, 2001:314)

– “Leadership means vision, cheerleading, love, trust, verve,

passion, obsession, consistency, the use of symbols, paying

attention as illustrated by the content of one’s calendar, out-and-

out drama (and the management thereof), creating heroes at all

levels, coaching, effectively wandering around, and numerous

other things” (Peters and Austin cited in Kreitner and Kinicki,

2001: 551)

• Management vs Leadership

• Power

– Legitimate, Reward, Coercive, Expert, Referent

33

TRAIT THEORY •Leaders are born and not made

•Leadership traits: drive, achievement motivation, energy, initiative, honesty,

integrity, self confidence, cognitive ability, knowledge of business

BEHAVIOUR

THEORY

•Task orientation

•Employee orientation

CONTINGENCY

THEORY

Fiedler’s Contingency Model

•Leader performance is dependent on

–The degree to which the context provides for influence & control

–The leader‟s basic motivation (task or relationship motivated)

•Matching needs to take place between leader and his leadership style

House’s Path-Goal Theory

•Effective leaders motivate followers to achieve goals through providing clear

indication of outcomes and rewards

•Leaders can exhibit more than 1 leadership style

–Directive, Supportive, Participative, Achievement Oriented

The Leader Substitutes Model

Emotional Intelligence Model

•“

LEADERSHIP THEORIES

34

LEADERSHIP

• Transformational Leadership vs Transactional Leadership– Transactional:

• Guide or motivate their followers in the direction of established goals by clarifying role and task requirements

– Transformational• Energize others with visions and strategies of how to refocus

and revitalize the larger organisation so that change meets people‟s enduring needs

• Challenge the process / status quo

• Encourage the heart – offer dramatic encouragement and rewards

• Gender and Leadership

ISSUES

IN LEADERSHIP

• Leaders and Power

– Five sources of power

• legitimate - authority associated with a position

• coercive - ability to punish or control

• reward - ability to give positive benefits

• expert - influence based on special skills or

knowledge

• referent - arises because of a person‟s desirable

resources or personal traits

ISSUES

IN LEADERSHIP• Creating a Culture of Trust

– Credibility - honesty, competence, and ability to inspire

• Honesty is the number one characteristic of admired leaders

– Trust - belief in the integrity, character, and ability of the leader

• confident that rights and interests will not be abused

• important for empowering subordinates

• trend toward expanding non-authority relationships within

and between organizations widens the need for trust

BUILDING TRUST

Practice

openness

Tell the

truth

Maintain

confidences

Show

consistency

Fulfill your

promises

Trust

Speak your

feelings

Demonstrate

competence

Be fair

© 2003 Pearson Education Canada Inc.

CONTEMPORARY ISSUES IN

LEADERSHIP (continued)• Leading Through Empowerment

– Managers increasingly leading by empowerment

• Gender and Leadership

– Gender provides behavioural tendencies in leadership

– Women adopt more democratic style, share power

and information, and attempt to enhance followers‟

self-worth

– Men more directive, command-in-control style

17.33

CONTEMPORARY ISSUES IN

LEADERSHIP (continued)• Gender and Leadership (cont.)

– Is different better?• when rated by peers, employees, and bosses,

women executives score better than male counterparts

• explanations of difference in effectiveness include:– flexibility, teamwork, trust, and information sharing

are replacing rigid structures, competitive individualism, control, and secrecy

– best managers listen, motivate, and provide support

– women do the above better than men

• there is still no “one best” leadership style

17.34

ISSUES

IN LEADERSHIP

• Leadership Styles in Different Countries– Effectiveness of leadership style influenced by

national culture

• leaders constrained by the cultural conditions their

followers have come to expect

– Most leadership theories developed in the U.S.

• emphasize follower responsibilities rather than rights

• assume self-gratification rather than commitment to

duty

• assume centrality of work and democratic value

orientation

• stress rationality rather than spirituality

ISSUES

IN LEADERSHIP

Sometimes Leadership is Irrelevant!– Leader behaviours may be irrelevant in some

situations

– Factors that reduce leadership importance include:• follower characteristics - experience, training,

professional orientation, or need for independence replace the need for leader support and ability to reduce ambiguity

• job characteristics - unambiguous and routine tasks, or tasks that are intrinsically satisfying, place fewer demands on leaders

• organizational characteristics - explicit goals, rigid rules and procedures, and cohesive work groups can substitute for formal leadership

42

CONFLICT, NEGOTIATION and POLITICS

• Organisational Conflict

– “ the absence of conflict is not harmony, its apathy” (Eisenhardt,

Kahwaj and Bourgeois, 1997)

– Types of conflict

– Sources of conflict

– Managing conflict

• Negotiation

– Distributive negotiation

– Integrative negotiation

• Organisational Politics

– “intentional acts of influence to enhance or protect the self-

interest of individuals or groups” (Kreitner and Kinicki, 2001)

– Political Strategies

Politics is in the eye

of the beholder

„Political‟ label

• Blaming others

• “Kissing up”

• Apple polishing

• Passing the buck

• Covering your rear

• Creating conflict

„Effective management‟

label

Fixing responsibility

Developing working

relationships

Demonstrating loyalty

Delegating authority

Documenting decisions

Encouraging change and

innovation43

VS

VS

Politics is in the eye

of the beholder„Political‟ label

• Forming coalitions

• Whistle-blowing

• Scheming

• Overachieving

• Ambitious

• Opportunistic

• Cunning

• Arrogant

• Perfectionist

„Effective management‟

label

Facilitating teamwork

Improving efficiency

Planning ahead

Competent and capable

Career minded

Astute

Practical minded

Confident

Attentive to detail44

VS

VS

45

ORGANISATIONALSTRUCTURE and WORK DESIGN

• Grouping Tasks into Jobs: Job Design

– Job enlargement

– Job enrichment

– Job rotation

– The Job Characteristics Model (Hackman and Oldman)

• Skill variety

• Task identity

• Task significance

• Autonomy

• Feedback

– Work Schedule Options

• The alternative workplace

46

ORGANISATIONALSTRUCTURE and WORK DESIGN• Designing the organisational structure

– Factors:

• External environment, Strategy, Technology, Human Resources, Organisation size

– Drucker (1974)

• Structure must follow strategy

• Task focused (not person focused)

• “sound organisational structure requires both a hierarchical structure of authority and a capacity to organize task forces, teams & individuals for work on a permanent & a temporary basis.

– Ostroff and Smith (1992): Horizontal approach

• Organise around process

• Flatten organisational hierarchy – keep subdivision of work flows and non- value added activities to a minimum

• Allocate ownership of processes and process performance

• Performance & design should be based on teams not individuals

• Managerial & non-managerial activities should be combined where possible

• Work should provide for the application of multiple competencies

47

ORGANISATIONALSTRUCTURE and WORK DESIGN

• Grouping Jobs into Functions and Divisions: Organisation Design

– Functional Structure

– Divisional Structure

• Product Structure

• Market Structure

• Geographical Location Structure

– Matrix and Product Team Designs

– Hybrid Structure

• Coordinating Functions and Divisions

– Hierarchy of Authority

– Integrating Mechanisms

• Direct contact

• Liaison roles

• Task forces

• Cross functional teams

• Integrating roles

• Matrix structure

48

ORGANISATIONAL CULTURE

• DEFINITION

– “How things are done around here”

– “the underlying assumptions about the way work is performed; what is acceptable and not acceptable and what behaviour & actions are encouraged and discouraged” (Atkinson in Mullins, 1999: 803)

– “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about and reacts to various environments” (Schein in Kreitner andKinicki, 2001: 68)

• PRIMARY DIMENSIONS (Robbins)

– Risk taking and innovation

– Attention to detail

– Outcome orientation

– People orientation

– Team orientation

– Aggressiveness

– Stability

49

ORGANISATIONAL CULTURE

• Functions

• Potential Negative Implications

• Creation and Maintenance

• Types of Organisational Cultures

– Hofstede’s Model of National Cultures

• Individualism vs Collectivism

• Power Distance

• Uncertainty Avoidance

• Masculinity vs Femininity

• Long Term vs Short Term Orientation

– Schein’s 3 Cultures of Management

• The Operator Culture

• The Engineering Culture

• The Executive Culture

– Lessem’s 4 Worlds of Management for the Southern Africa Businessphere

• World 1 (Western) - Empiricism

• World 2 (Northern) - Rationalism

• World 3 (Eastern) – Idealism

• World 4 (Southern) – Humanism

• Culture and Managerial Action

50

50

ORGANISATIONAL CHANGE

• Forces of Change

– Nature of the workforce

– Technology

– Economic shocks

– Competition

– Social trends

– World politics

• Managing Change

ADAPTIVE

CHANGE(Reintroducing a

familiar practice)

INNOVATIVE

CHANGE(Introducing a practice

new to the

organisation)

RADICALLY

INNOVATIVE

CHANGE(Introducing a practice

new to the industry)

Degree of:

Complexity

Cost

Uncertainty

Resistance to Change

51

ORGANISATIONAL CHANGE

• Planned Change: Lewin’s Change Model• Stage 1: Unfreezing

• Stage 2: Movement

• Stage 3: Refreezing

• Unplanned Change: Chaos Theory• “today’s changes are discontinuous and happening at a geometric

rate….organizations must be sufficiently agile to be instantly reconfigurable to meet new demands…the disequilibrium created is unprecedented in our history” (Tetenbaum, 1998:23)

• Characteristics

– Chaos as order (orderly disorder)

– Chaos is self-organising

– The Role of the Manager

• Manage the transition from the stable and safe work environment to an environment characterised by unpredictability and ambiguity

• Build resilience

• “Destablise the system”

• Manage both order (the present) and orderly disorder (the future)

• Transform the organisation into a learning organisation

52

ORGANISATIONAL

CHANGE• RESISTANCE TO CHANGE

– Individual Resistance to Change

• Habit, security, economic factors, fear of the unknown, selective information processing

– Organisational Resistance to Change

• Structural inertia

• Limited focus of change

• Group inertia

• Threat to expertise / power

• Threat to resource allocations

– Overcoming Resistance to Change

• Education, Communication, Participation

• Facilitation and support

• Negotiation, Manipulation and Coercion

• CREATING A LEARNING ORGANISATION• Systematic Problem Solving

• Experimentation

• Learning from Past Experience

• Learning from others

• Transferring Knowledge