Organisationalbehavior

2009

Organisational behaviour Tumelo L. Matjekane

© Tumelo L Matjekane | 2009 Page 2 of 12 Organisational behaviour

The basics of

organisational behaviour

Personality and personal traits

Locus of

control

Extroversion and

introversion

Socially acquired

needs

Machiavellian

personality

Internal

External

Values

Employee work

attitudes

Organisational

commitment

Job involvement

· Buying into organisational

objectives

· Willingness to exert

considerable effort on

behalf of company

· Desire to remain part of

company

· How much an

employee identifies

with his / her job

· Active participation

in the job

· Self worth

Job satisfaction

Determinants

Consequences

· Years in career

· Expectations

· Organisational

determinants

Ø Supervision

Ø Job challenge

Ø Job clarity

Ø Incentives

· JDI

· Minesota

satisfaction

questionnaire

Job satisfaction

and performance

Extrinsic

and intrinsic

rewards

Measurements

Terminal

values

Instrumental

values

Implications of

global organisation

· Achievement

· Social status

· Family safety

· Equality

· Prosperity

· Wisdom

· Friendship

· Freedom

· etc

· Ambition

· Competence

· Cleanliness

· Courage

· Intelligence

· Self-control

· Politeness

· etc

· Be open-minded

· Don’t pre-judge others

business customs as

immoral

· Avoid rationalising

questionable actions

· Search for legitimate ways

to operate within others

ethical points of view

· Refuse to do business

when stakeholders actions

violate the law

· Conduct business as

openly and honestly as

possible

· High mach

· Low mach

· Manipulation

· Eg. Jeffrey Skilling,

Kenneth Lay

(Enron)

· External stimulation vs

internal stimulation

· Search

diligently

for new

knowledge

· Act quick

· Personal

achievement

· More comfortable

with change

· Act quickly to cut

career losses

· Researches

prospective

employer

Relatively permanent set of

psychological characteristics that create,

guide and monitor human behaviour

McCLELLAND

Need for

achievement

Need for

affiliation

Need for

power

Exist in people at deeper

psychological level

· Improves resistance

to job stress

· Mental and physical

health

· Low absenteeism

· Low employee

turnover

Facets of job

satisfaction

· Satisfaction with work itself

· Satisfaction with pay

· Satisfaction with fellow

workers

· Satisfaction with supervision

· Satisfaction with promotion


Stress and well-being at work

(Japanese -Karoshi )

Job stress and

its components

Down sizing?

Stress

response

General

adaptation

syndrome

Environmental

factors

A model of causes and

consequences of stress

· Headache

· Hypertension

· Heart disease

Organisational programmes

of wellness and job stress

management

Individual approaches

to managing stress

Stressors

· Mental and physical

responses:

· Distress (negative

response)

· Eustress (positive

response)

HANS SELYE

Exercise

Diet

Relaxation

Professional

help

Opening up

Causes of

stress

Individual

differences

Consequences

of stress

Organisational

factors

Individual

factors

Physiological

symptoms

Psychological

symptoms

Behavioural

· Productivity level

· Attendance pattern

· Quitting the job

· Accident

· Substance abuse

· Sleep disturbances

· Depression, anxiety

· Declines in job

satisfaction

· Perception

· Job experience

· Locus of control

· Type A behaviour

· Adaptive type A

· Family problems

· Financial problems

· Task demands

· Role demands

· Interpersonal

· Organisational structure

· Organisational leader

style

· Organisational lifestyle

stage

· Economic uncertainty

· Political uncertainty

· Technological

Micro-

environmental

· Noise

· Stuffy room

· The process

whereby

humans adjust

to stressors in

the environment

· A work life balance

· Corporal wellness plans

· We are what

we eat!

· Prayer

· Meditation

· Confiding

in others

· Employee

assistance

programmes

· Creates stress

Job security vs

employment

security

Reasons

· Cost cutting

· Deregulation

· Merger-mania

· Small is beautiful

· Experience and

knowledge

HOLMAN

JENKINS JNR

· Unfair and

demanding

bosses

· Un-supporting

and abrasive

co-workers


Motivation theory

Content theory

Environmental

theory

Abraham

Maslow’s

hierarchy

Process theories

Frederick

Herzberg’s 2

factor theoryGoal theory

Behaviour Modification

Continuous

re-enforcementsPartial

re-enforcements

Number of behaviour occurring

before re-enforcement

Consequences occur

predictably after each

relevant behaviour

Expectancy

theory

· Physiological

· Safety

· Belongingness

· Esteem

· Self actualisation

Hygienes

Motivators

· Work environment

· Job security

· Company policies

· Pay

· Peer relations

· Supervision

· Status

· Work itself

· Promotion

· Challenges

· Achievement

· Professional

growth

· Responsibility

· Recognition

B.F. SKINNER

Interval

schedule

Ratio

schedule

After a certain

number of behaviours

· + Re-enforcement

· - Re-enforcement

· Extinction

· Punishment

Organisational factors

that influence motivation

· Role ambiguity

· Role conflict

· Organisational

appraisal system

· Reward system

· Job design system

· SMART

· Streching

· Agreed

STACY ADAMS

Equity theory

Benevolents

Equity

sensitives

Entitled

Instrumentality

(+ / -)

Valance

(+ / -)

1st level and 2

nd

level outcomes

E.C. TOLMAN

Personal

attractiveness of

different outcomes

Motivation explained

by organising human

needs into 5 levels

The level of experienced

job satisfaction depends

on the availability of

hygienes and motivators

· A satisfied need ceases

to motivate behaviour

at that need level

· Unsatisfied employee

needs lead to

undesirable outcomes

at work

· People strive to move

up the hierarchy

· Needs are not usually

completely satisfy

· Unmet needs – more

motivating

Intrinsic

Extrinsic

Motivation sustains our behaviour

and keeps it systematic and focused

Reward after given

elapsed time

Fixed interval Variable interval

Links consequences

to given number of

behaviour

Based on

average number

of response

Cultural differences

in motivation

Methods:

Focuses on observable

employee behaviour

Variable ratioFixed ratio

Constant amount of

time passes before

consequence

Consequence

after variable

amount of time

· 1st level = effort

· 2nd

level = results

· Personal belief that 1st

level outcomes lead to

2nd

level outcomes

· How motivated behaviour occurs

at work

· How that behaviour can be

channelled and directed

· Explains turnover, absenteeism,

career choice...

· Comfortable · Comfortable

with ratio

which exceeds

that of others

· Prefer equity

based on

original

formulation

· Social comparisons in work settings

· + inequity: more rewards than others

· - inequity: fewer rewards than others


Motivation theory

Performance

appraisalGoal setting and

Management by

objectives (MBO)

Properties of good

performance

appraisal system

· Validity

Ø Content

Ø Empirical

Ø Construct

Ø Convergent

Ø Discriminant

· Consistency

· Stability

PETER DRUCKER

Errors?

Performance

appraisal methods

· Personal bias

· Halo effect

· Recency error

· Central tendency

· Strictness /

leniency errors

· Similarity error

· Forcing the rating

to match criteria

· Absolute standards

· Graphics scales

rating system

· Behaviour anchored

rating scale (BARS)

Goal setting

theory

Management

by objectives

· An organisational

application of the

goal setting theory

· A process which

develops self

control in managers

Pillars of

MBO

Generic

MBO steps

· Employees perform better

when they know what is

expected of them

· Most employees prefer

self-determination at work

· Skilled workers can be

motivated by well-timed

formal and informal

feedback

· Employees prefer intrinsic

and extrinsic rewards that

are consistent with their

performance levels

· Analyse

· Plan

· Define

· Articulate

· Reach mutual

agreement

· Informal review and

revision

· Formal review

Goals

Goal setting

system

SMART

Aspects of

goal setting

process

· End states

· Clearly specified

difficult goals

result in greater

performance

improvement than

easy goals stated

in general terms

· Increase motivation and

job performance

· Reduce stress of

conflicting or confusing

expectations

· Improve accuracy and

validity of performance

evaluation

EDWIN LOCKE

· Environmental issues

· Goal setting process

· Goal attributes

· Employee intentions

· Outcomes

· Specific

· Measurable

· Achievable

· Resource based

· Time specific

Rewards and

reward systems

See page 4b


Rewards and

reward systems

Extrinsic

Given to the

employee by the firm

Classification

Cost savings

plans

Individual and

group based

reward system

Company pay

practices

Distributing

rewards in

organisations

Intrinsic

Associated with

the job itself

Direct

compensation

Indirect

compensation

Non-financial

rewards· Salary

· Performance

bonus

· Given due to employee’s

organisational level

· Office

furnishings

· Titles...

· Performance

· Effort

· Seniority

· Equality

· Power and influence

· Cafeteria-style fringe

benefits

· Lump sum pay system

· Skill based compensation

· Accumulating time off

· All salaried team

· Open salary information

Profit sharing

plans

Depends on health

of economy

Rucker planScanlon plan

(gains sharing)

· Production committee

· Screening committee

· Lowering costs and

information innovation

· Bonus usually 25 - 50%

of savings

Motivation theory (cont)

Performance

appraisal

Goal setting and

Management by

objectives (MBO)See page 4a

See page 4a

Reduce labour

costs

· In self directed team

environment

· Measures the difference

between sales income

from goods produced

and the cost of material

supplies including payroll

· Value added by labour


Job design and employee

reaction to work

Job design

principles

Vertical job

loading

· 4 day work week

· Job sharing

· Telecommunication

· Flexi time

The team approach

to job design

Cross

training

Job

enlargement

Job rotation

Other approaches

The linking of specific task behaviours to jobs, followed

by the application of work techniques, equipment and

job control procedures to job and its activities

Horizontal

increases

Job

enlargement

Cross training

Job rotation

Quality of work life

(QWL)

Autonomous work

groups / self

directed teams

TAVISTOK INSTITUTE

OF HUMAN RELATIONS

· Social and interpersonal

· Operational, equipment

Socio-technical

system theory

HACKMAN

Likert’s system four

organisations vs

system 1

· Increases the

number of work

activities in a job

· Decrease the extent

of boredom and

overspecialisation

· Exposes workers

to a variety of

specialised jobs

over time

· Employees are

trained in different

specialised work

activities

Job design and

Herzberg’s two

factor theory

· Skill variety

· Task identity

· Task significance

· Social opportunities

Job content

Job range Job depth

· Autonomy

· Feedback

The number of

tasks an employee

performs

The amount of

discretion which an

employee has to

select various job

procedures to

accomplish work

The subjective

aspects of the

job and the

social setting in

which it is

performed

· Changes which

influence the

planning and

doing components

of work

· Skill based

learning

· Employees and

bonuses and

rises when

acquiring new

skill

· Changes nature of

work by

eliminating

overspecialisation

· Decrease boredom


Work group dynamics

Types of groups

Work group

structure

Positional

status

Decision making

in groups· Work / group

· Task / command group

· Informal group

· Project team

BRUCE W. TUCKMAN

Brainstorming

Managing groups

Group size

Group size and

performanceNominal group

technique

Delphi

technique· Composition

· Cohesiveness

· Norms

· Groupthink, for eg

“Bay of pigs” (Cuba)

and Vietnam war

Group size and

participation

Group size

and internal

conflict

· Phillips 66

· Stop and go

· Reverse

brainstorming

Work group

structure

· Forming

· Storming

· Norming

· performing

Guidelines for reducing

process losses

Intergroup behaviour

and performance

Decision making in

teams (participative)

Competition

and conflict

STEERS AND BLACK

· Interdependence

· Information flow

· integration

· Rules and procedures

· Member exchange

· Linking roles

· Task forces

· Decoupling

The normative decision

model

- The Vroom-Yetton-Jago

Managing

conflict within

and between

groups

Two

organisational

views on conflict

Contemporary

Traditional

· Avoiding

· Accommodating

· Forcing

· Compromising

· Collaboration

· Conflict viewed

as useful

deviation from

the status quo· Encourage

suppression

of conflict

· The 5 forms of decision making:

ØAI: manager takes decision

alone

ØAII: manager seeks info from

subordinates, then decides

ØCI: manager explains problem to

subordinates in 1 to 1 format

ØCII: manager explains problem

to subordinates in group format

ØGII: manager explains problem

to subordinates in group

format, then makes final

decision

Three prevailing

group interaction

requirements

Pathway to effective intergroup

relations based on level of task

complexity and uncertainty

· Define the workgroup

task / problem carefully

· Don’t jump to idea

evaluation before idea

evaluation has created

numerous alternatives

· Avoid group think

· Manage the norms of

the group by making

valued rewards

contingent on high

quality group

performance

· Make group level

rewards contingent on

the group’s contribution

to work unit success

· Email and web

· Minimise verbal

interaction among

members

· Group no larger

than 9 people· Conflict increases

with size

· Contact and duration

decrease as group

size increases

· Range of abilities,

talents and aptitudes

increase with size

· Expresses the

amount of

responsibility


Power, politics, leadership,

entrepreneurship

Power vs

authority

Politics

Using power

ethially

Leadership

MINTZBERG

Roles of the

manager

Approaches to

leadership

· Interpersonal

· Informational

· decisional

· Approved methods and

approved outcomes

· Approved methods and

unapproved outcomes

· Unapproved methods

and approved outcomes

· Unapproved methods

and unapproved

outcomes

Behavioural

approach

How subunits

gain power

Sources of

power

How to gain

power (personal)

Trait

approach

Situational

approach

· Punishment used

consistently, uniformly

and privately

· Communicate well and

respect subordinates

· Scarcity

· Uncertainty

· Centrality

· Absence of

substitutes

· Build an image of success

· Create obligation in others

· Identify with powerful people

· Giving excellent performance

· Limiting access to information

· Controlling supplies

· Developing a network

· Re-organising of the job

· Taking risks and being creative

· Being a knowledge worker

· Manipulating rules

· Controlling personal decisions

· Controlling financial resources

· Managing your boss

· Reward power

· Coercive power

· Legitimate power

· Referent power

· Expert power

BENNIS AND NANUS

OHIO STATE

UNIVERSITY

· Logical thinking

· Persistence traits

· Empowerment

· Self control

How managers

play politics

· Whistle blowing

· Line vs staff conflict

· Sponsorships and

coalition building

· Insurgency / resisting

auority

KURT LEWIN

· Initiating

structure vs

consideration

· Autocratic

· Democratic

· Free reign

Fielder’s

contingency

theory

House’s path-

goal theory

· Relationship between

leader and members

· Task structure

· Position of power

· Directive

· Supportive

· Participative

· Achievement

orientated

Least preferred

co-worker (LPC)

questionnaire

Relationship

orientated

Task

orientated

Entrepreneurship

What is it?

5 Myths

Sources of

powerThe creation of

wealth by

assuming risk

through equity,

time or career

commitment to

add value to a

service or product

· Doers not thinkers

· Are born not made

· All you need is money

· All you need is luck

· Entrepreneurial profile

· Idea champion

· Sponsor

· Godfather

· Green house


Organisational design

Service orientated

organisation

Organisational

structure

The responsive

organisation

IVANCEVICH

& MATTESON

Span of

control

Boundary-less

organisation

Delegation

of authority

Functional

design

· Teams and task forces

· Direct supervision

· Standardisation

· Work processes

· Outputs

· Performance appraisal

· Management information system

Aspects of

organisational design

Division

of labour

Departmentalisation

Territorial

design

Product

divisional

design

Matrix

departmentalisation

Centralisation

Decentralisation

Coordination

and control

Inter-organisation

design

LAWRENCE

& LORSCH

Vertical coordination

mechanism toolsHorizontal

coordination

mechanismProcess

control Results

control· Direct contact -

Galbraith

· Liaison roles

· Cross functional teams

· Permanent teams

Creating a

service driven

organisation

· Conduct service

audit

· Well conceived

strategy for service

· Customer oriented

front line people –

training needed

· Customer friendly

system

· For capturing

competitive advantage

· Simplify and delayer

· Re-assign supporting

staff

· Widen span of control

· Empower workforce

· Create team based

work system

Achieving a

responsive

organisation

· No distinction between

leaders and followers

· Flexible and adaptable

· Authority boundary

· Task boundary

· Political boundary

· Identity boundary

TOM PETERS

· spececialisation

· Motivates

· Managers can’t do

all

· Leads to promotion

and pay rises

· “The rule of 100"

· Based on

geographic

area

· In companies

with diversified

product lines

· E.g HP

· Need for

specialised

management

– project

manager

· The no. of

subordinates that

report to a given

manager

· Affected by:

required contact,

degree of

specialisation

and ability to

communicate

· Retention of

authority at top

management

· High formalisation

· standardisation

· Pushing authority down the

hierarchy so that decisions

are made close to the origin

of the problem

· Outsourcing

· Use of contract workers

· Sophisticated consumer

· Shareholder demanding high

returns

· Standardisation of

task performance

· E.g TQM

· MBO

· Team orientated

· Designs that permit

one company to work

closely with another

· Strategic alliance

· Conglomerates

· Japanese Keiretsu,

Kinyokai, Amakudori

A set of mechanisms used

to link the actions of sub-

units to achieve a pattern of

desired outcomes

BURNS AND STALKER

A serious of decisions made by

managers about the best

organisational arrangement to achieve

the goals in the strategic plan · Increased division of labour

· Uniform departments

· Narrow span of control

· Tight rules and policies

Mechanistic Organic

· Less job specialisation

· Increased delegation of authority

· Low uniformity

· Wide span of control

Change to revenue driven

market value maximisation

perspective

Drivers of growth in

customer service

· Differentiated service

often easier and

faster achieved than

differentiated product

· Customers demand

better quality

· Service improvement

strengthen brand

loyalty, erect market

segment and entry

barriers

· Bad service drives off

customers and

lowers profits


Organisational culture

and change

Culture

Contributors

ØRealistic job previews

ØDebasement and

indoctrination

ØIntensive on the job

training

ØAdjust reward and

promotion system

ØUse top managers as

personal role models

ØRe-enforce the cultures

with stories about the

organisation and its

founder

ØUse mentors to develop

younger employees

Organisational life

cycle theory

· CE / founder’s role

· Socialisation: transmits

organisational culture

from one generation

to the next

R. PASCALE

Beliefs and values that are

understood by employees

Liabilities of

strong culture

· Goals and mission

may change, strong

culture no longer

relevant

· Strong culture may

not mix well in M&A

· When culture

legitimises in-

fighting, secrecy and

empire building

· Eg. Daimler-Chrysler

vs Toyota

Developing highly

adaptive cultures

· The HOME approach:

Ø History

Ø Oneness

Ø Membership

Ø Exchange

Organisational

change

Planned change

process

· Environmental

complexity

· Environmental

change

· Environmental

uncertainty

· Inception and start up operations

· Rapid growth and market

expansion

· Steady growth and market maturity

· Consolidation and decline

· Eg. Dell, Google, Apple

· Important to recognise

organisational decline and

adapt structures accordingly

· Danger: overconfident and

inattentive management team

KURT

LEWIN

ROBERT

DAILEY

Recognising

need for change

Diagnosis

Selection of

change methods

Carry over

Institutionalisation

· Multilevel

(organisational,

team, individual)

· Steering

committee to

guide it

· Participative

eg Vroom-

Yetton-Jago

· Motivating newly

learned behaviours

· Bridge the gap between

“learning environment”

and “working

environment”

· Eg Motorola university

· Planned change

becomes part of

operations in

spite of

managerial

succession,

attrition or

alteration in other

organisational

aspects

Re-freezing

· New

processes

adopted and

become

permanent

parts of firms

and cuture

Changing

· Action play

implemented

· Training

· Decentralisation

Unfreezing

· Dissatisfaction

with old culture

and processes

· Constructive

destruction

· Labour

discontent

Methods of

change in OD

See page 9b

Resistance

· Fear

· Trying to

maintain status

quo

· Inclusion of these

affected can help

· Quantitative

measures

Evaluate

the results

Diffusion

· Diffusion not always

guaranteed, can be

undermined

· Eg. Volvo, Shell

WALTON


Grid organisational

development

ROBERT BLAKE &

JANE MOUTON

Methods of

change in OD

Organisational culture

and change (cont)

Organisational

change

See page 9a

Culture

See page 9a

Encounter

groupTeam building

programme

Support

group

System wide

process

changes

· Survey feedback

· Collecting questionnaire

data from employees

· Summarise

· Feedback to employees

· Survey of organisations

Interpersonal

and group

KURT LEWIN

T-group

procedures

· Deeper personal

knowledge and

development· Excellent tool for

ensuring the fit

between culture,

mission, goals and

strategy

· Should be regular

process for

diagnosing and

attacking problems

· Problem-focused

groups

· Unite individuals

· Provide support

· A pre-packaged OD method

Ø Grid seminar

Ø Intra-group development

Ø Inter-group development

Ø Development of an ideal

strategic model

Ø Attaining the ideal strategic

model

Ø Stabilisation and process

critique

Documents

Organisationalbehavior