Organisationalbehavior

Organisational behaviour Tumelo L. Matjekane

2009

The basics of organisational behaviour

Values

Personality and personal traits

Exist in people at deeper psychological level

Relatively permanent set of psychological characteristics that create, guide and monitor human behaviour

Instrumental values Terminal values · Achievement · Social status · Family safety · Equality · Prosperity · Wisdom · Friendship · Freedom · etc

· Ambition · Competence · Cleanliness · Courage · Intelligence · Self-control · Politeness · etc

Locus of control Machiavellian personality External Internal · Personal achievement · More comfortable with change · Act quickly to cut career losses · Researches prospective employer

Implications of global organisation · 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

· Search diligently for new knowledge · Act quick

· High mach · Low mach · Manipulation · Eg. Jeffrey Skilling, Kenneth Lay (Enron)

Socially acquired needs McCLELLAND Extroversion and introversion · External stimulation vs internal stimulation Need for power Need for achievement

Job satisfaction Employee work attitudes

Need for affiliation

Facets of job satisfaction · Satisfaction with work itself · Satisfaction with pay · Satisfaction with fellow workers · Satisfaction with supervision · Satisfaction with promotion

Determinants · Years in career · Expectations · Organisational determinants Ø Supervision Ø Job challenge Ø Job clarity Ø Incentives

Job satisfaction and performance

Consequences · Improves resistance to job stress · Mental and physical health · Low absenteeism · Low employee turnover

Extrinsic and intrinsic rewards

Measurements · JDI · Minesota satisfaction questionnaire

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Job involvement

Organisational commitment

· How much an employee identifies with his / her job · Active participation in the job · Self worth

· Buying into organisational objectives · Willingness to exert considerable effort on behalf of company · Desire to remain part of company

Organisational behaviour

Stress and well-being at work (Japanese -Karoshi )

Job stress and its components Organisational programmes of wellness and job stress management

Down sizing? Stressors · Unfair and demanding bosses · Un-supporting and abrasive co-workers

HANS SELYE

· Creates stress

Reasons Job security vs employment security

General adaptation syndrome

Stress response

· The process whereby humans adjust to stressors in the environment

· Mental and physical responses: · Distress (negative response) · Eustress (positive response)

A model of causes and consequences of stress

· A work life balance · Corporal wellness plans

· Cost cutting · Deregulation · Merger-mania · Small is beautiful

HOLMAN JENKINS JNR · Experience and knowledge

Individual approaches to managing stress

Professional help

Exercise

· Employee assistance programmes

Relaxation · Prayer · Meditation

Individual differences

Opening up

· Perception · Job experience · Locus of control · Type A behaviour · Adaptive type A

Causes of stress

· We are what we eat!

Individual factors Environmental factors

Organisational factors

· Noise · Stuffy room

Consequences of stress

· Family problems · Financial problems

· Economic uncertainty · Political uncertainty · Technological

Microenvironmental

· Confiding in others

Diet

· Task demands · Role demands · Interpersonal · Organisational structure · Organisational leader style · Organisational lifestyle stage

Physiological symptoms · Headache · Hypertension · Heart disease

Behavioural

Psychological symptoms

· Productivity level · Attendance pattern · Quitting the job · Accident · Substance abuse

· Sleep disturbances · Depression, anxiety · Declines in job satisfaction

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Organisational behaviour

Motivation theory Motivation sustains our behaviour and keeps it systematic and focused

Content theory Process theories

Abraham Maslow’s hierarchy

Frederick Herzberg’s 2 factor theory

Motivation explained by organising human needs into 5 levels

The level of experienced job satisfaction depends on the availability of hygienes and motivators

· Physiological · Safety · Belongingness · Esteem · Self actualisation

Goal theory

Equity theory

· SMART · Streching · Agreed

STACY ADAMS · Social comparisons in work settings · + inequity: more rewards than others · - inequity: fewer rewards than others

Motivators Intrinsic

Hygienes Extrinsic · Work environment · Job security · Company policies · Pay · Peer relations · Supervision

· 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

· Status · Work itself · Promotion · Challenges · Achievement · Professional growth · Responsibility · Recognition

· How motivated behaviour occurs at work · How that behaviour can be channelled and directed · Explains turnover, absenteeism, career choice...

Behaviour Modification

Valance (+ / -)

Focuses on observable employee behaviour

1st level and 2nd level outcomes

Personal attractiveness of different outcomes

Partial re-enforcements Number of behaviour occurring before re-enforcement

Methods:

Ratio schedule

Interval schedule

After a certain number of behaviours

Fixed interval

Variable interval

Fixed ratio

Variable ratio

Constant amount of time passes before consequence

Consequence after variable amount of time

Links consequences to given number of behaviour

Based on average number of response

· Prefer equity based on original formulation

· 1st level = effort · 2nd level = results · Personal belief that 1st level outcomes lead to 2nd level outcomes

B.F. SKINNER

Reward after given elapsed time

Equity sensitives

Instrumentality (+ / -)

Cultural differences in motivation

Consequences occur predictably after each relevant behaviour

Entitled · Comfortable with ratio which exceeds that of others

· Comfortable

E.C. TOLMAN

Environmental theory

Continuous re-enforcements

Benevolents

Expectancy theory

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· + Re-enforcement · - Re-enforcement · Extinction · Punishment

Organisational factors that influence motivation · Role ambiguity · Role conflict · Organisational appraisal system · Reward system · Job design system

Organisational behaviour

Motivation theory

Performance appraisal

Properties of good performance appraisal system · Validity Ø Content Ø Empirical Ø Construct Ø Convergent Ø Discriminant · Consistency · Stability

Rewards and reward systems

Goal setting and Management by objectives (MBO)

See page 4b

Performance appraisal methods

Management by objectives

· Absolute standards · Graphics scales rating system · Behaviour anchored rating scale (BARS)

PETER DRUCKER · An organisational application of the goal setting theory · A process which develops self control in managers

Errors? · Personal bias · Halo effect · Recency error · Central tendency · Strictness / leniency errors · Similarity error · Forcing the rating to match criteria

Pillars of MBO · 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

Goal setting theory EDWIN LOCKE

Generic MBO steps · Analyse · Plan · Define · Articulate · Reach mutual agreement · Informal review and revision · Formal review

Goals · End states · Clearly specified difficult goals result in greater performance improvement than easy goals stated in general terms

SMART

Goal setting system · Increase motivation and job performance · Reduce stress of conflicting or confusing expectations · Improve accuracy and validity of performance evaluation

Aspects of goal setting process

· Specific · Measurable · Achievable · Resource based · Time specific

· Environmental issues · Goal setting process · Goal attributes · Employee intentions · Outcomes

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Organisational behaviour

Motivation theory (cont)

Rewards and reward systems

Goal setting and Management by objectives (MBO)

Performance appraisal See page 4a

See page 4a

Distributing rewards in organisations · Performance · Effort · Seniority · Equality · Power and influence

Classification

Extrinsic

Intrinsic

Given to the employee by the firm

Associated with the job itself

Individual and group based reward system

Cost savings plans

Direct compensation

Non-financial rewards

· Salary · Performance bonus

Reduce labour costs

Profit sharing plans Depends on health of economy

· Office furnishings · Titles...

Indirect compensation Scanlon plan

· Given due to employee’s organisational level

Rucker plan

(gains sharing)

· 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

· Production committee · Screening committee · Lowering costs and information innovation · Bonus usually 25 - 50% of savings

Company pay practices · Cafeteria-style fringe benefits · Lump sum pay system · Skill based compensation · Accumulating time off · All salaried team · Open salary information

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Organisational behaviour

Job design and employee reaction to work 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

Quality of work life (QWL)

Job design principles

Horizontal increases

Job enlargement · Increases the number of work activities in a job · Decrease the extent of boredom and overspecialisation

Cross training · Employees are trained in different specialised work activities

Vertical job loading

Cross training

· Changes which influence the planning and doing components of work

· Skill based learning · Employees and bonuses and rises when acquiring new skill

Job rotation

· Exposes workers to a variety of specialised jobs over time

· Decrease boredom

Job enlargement

Other approaches

· Changes nature of work by eliminating overspecialisation

· 4 day work week · Job sharing · Telecommunication · Flexi time

Job design and Herzberg’s two factor theory

The team approach to job design

Job range Job content The subjective aspects of the job and the social setting in which it is performed

· Skill variety · Task identity · Task significance · Social opportunities

The number of tasks an employee performs

Job depth

TAVISTOK INSTITUTE OF HUMAN RELATIONS

· Autonomy · Feedback

Socio-technical system theory The amount of discretion which an employee has to select various job procedures to accomplish work

· Social and interpersonal · Operational, equipment

Autonomous work groups / self directed teams HACKMAN

Likert’s system four organisations vs system 1

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Organisational behaviour

Work group dynamics

Types of groups Decision making in groups

· Work / group · Task / command group · Informal group · Project team

Work group structure

· Composition · Cohesiveness · Norms · Groupthink, for eg “Bay of pigs” (Cuba) and Vietnam war

Group size and performance

· Phillips 66 · Stop and go · Reverse brainstorming

· Minimise verbal interaction among members · Group no larger than 9 people

Group size and internal conflict · Conflict increases with size

Group size · Range of abilities, talents and aptitudes increase with size

· Email and web

Nominal group technique

Positional status · Expresses the amount of responsibility

Delphi technique

Brainstorming

Work group structure

Group size and participation · Contact and duration decrease as group size increases

BRUCE W. TUCKMAN

Managing groups

· Forming · Storming · Norming · performing

Competition and conflict Guidelines for reducing process losses · 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

Decision making in teams (participative)

Intergroup behaviour and performance STEERS AND BLACK Three prevailing group interaction requirements

· Interdependence · Information flow · integration

Pathway to effective intergroup relations based on level of task complexity and uncertainty

The normative decision model - The Vroom-Yetton-Jago · 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

· Avoiding · Accommodating · Forcing · Compromising · Collaboration

· Encourage suppression of conflict

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Two organisational views on conflict

Contemporary

Traditional

· Rules and procedures · Member exchange · Linking roles · Task forces · Decoupling

Managing conflict within and between groups

· Conflict viewed as useful deviation from the status quo

Organisational behaviour

Power, politics, leadership, entrepreneurship Entrepreneurship Politics What is it? Sources of power

The creation of wealth by assuming risk through equity, time or career commitment to add value to a service or product

· Idea champion · Sponsor · Godfather · Green house

Leadership

· Approved methods and approved outcomes · Approved methods and unapproved outcomes · Unapproved methods and approved outcomes · Unapproved methods and unapproved outcomes

Roles of the manager MINTZBERG

5 Myths · Doers not thinkers · Are born not made · All you need is money · All you need is luck · Entrepreneurial profile

· Interpersonal · Informational · decisional

How managers play politics

Approaches to leadership

· Whistle blowing · Line vs staff conflict · Sponsorships and coalition building · Insurgency / resisting auority

Power vs authority

Behavioural approach

Sources of power

Trait approach

· Reward power · Coercive power · Legitimate power · Referent power · Expert power

Using power ethially · Punishment used consistently, uniformly and privately · Communicate well and respect subordinates

BENNIS AND NANUS · Logical thinking · Persistence traits · Empowerment · Self control

KURT LEWIN OHIO STATE UNIVERSITY

· Autocratic · Democratic · Free reign

· Initiating structure vs consideration

Situational approach

How subunits gain power

How to gain power (personal)

· Scarcity · Uncertainty · Centrality · Absence of substitutes

Fielder’s contingency theory

· 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

House’s pathgoal theory

Least preferred co-worker (LPC) questionnaire

· Directive · Supportive · Participative · Achievement orientated

· Relationship between leader and members · Task structure · Position of power

Relationship orientated

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Task orientated

Organisational behaviour

Organisational design

BURNS AND STALKER

A serious of decisions made by managers about the best organisational arrangement to achieve the goals in the strategic plan

Mechanistic

Organic

· Increased division of labour · Uniform departments · Narrow span of control · Tight rules and policies

· Less job specialisation · Increased delegation of authority · Low uniformity · Wide span of control

Aspects of organisational design

The responsive organisation Service orientated organisation Span of control

Division of labour

IVANCEVICH & MATTESON

· spececialisation

Delegation of authority · Motivates · Managers can’t do all · Leads to promotion and pay rises · “The rule of 100"

· The no. of subordinates that report to a given manager · Affected by: required contact, degree of specialisation and ability to communicate

Departmentalisation

Functional design

Matrix departmentalisation

Territorial design

Product divisional design

· In companies · Based on with diversified geographic product lines area · E.g HP

· Need for specialised management – project manager

TOM PETERS

Creating a service driven organisation

Achieving a responsive organisation

· Conduct service audit · Well conceived strategy for service Drivers of growth in · Customer oriented customer service front line people – training needed · Differentiated service · Customer friendly often easier and system 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

· For capturing competitive advantage · Simplify and delayer · Re-assign supporting staff · Widen span of control · Empower workforce · Create team based work system

Boundary-less organisation · No distinction between leaders and followers · Flexible and adaptable · Authority boundary · Task boundary · Political boundary · Identity boundary

Organisational structure

Change to revenue driven market value maximisation perspective

Inter-organisation design

Decentralisation Centralisation · Retention of authority at top management · High formalisation · standardisation

Vertical coordination mechanism tools

· 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

Horizontal coordination mechanism

· Teams and task forces · Direct supervision · Standardisation · Work processes · Outputs · Performance appraisal · Management information system

· Direct contact Galbraith · Liaison roles · Cross functional teams · Permanent teams

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Coordination and control A set of mechanisms used to link the actions of subunits to achieve a pattern of desired outcomes

LAWRENCE & LORSCH

Process control · Standardisation of task performance · E.g TQM

· Designs that permit one company to work closely with another · Strategic alliance · Conglomerates · Japanese Keiretsu, Kinyokai, Amakudori

Results control · MBO · Team orientated

Organisational behaviour

Organisational culture and change

Organisational change

Culture Beliefs and values that are understood by employees

Contributors

Developing highly adaptive cultures

· CE / founder’s role · Socialisation: transmits organisational culture from one generation to the next

Methods of change in OD

· Environmental complexity · Environmental change · Environmental uncertainty

· The HOME approach: Ø History Ø Oneness Ø Membership Ø Exchange

See page 9b

Planned change process

R. PASCALE 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

ROBERT DAILEY

Liabilities of strong culture

Recognising need for change

· Goals and mission may change, strong culture no longer relevant · Strong culture may not mix well in M&A · When culture legitimises infighting, secrecy and empire building · Eg. Daimler-Chrysler vs Toyota

Diagnosis · Multilevel (organisational, team, individual) · Steering committee to guide it

Resistance · Fear · Trying to maintain status quo · Inclusion of these affected can help

Selection of change methods

Organisational life cycle theory · Inception and start up operations · Rapid growth and market expansion · Steady growth and market maturity · Consolidation and decline · Eg. Dell, Google, Apple

· Motivating newly learned behaviours · Bridge the gap between “learning environment” and “working environment” · Eg Motorola university

KURT LEWIN

· Important to recognise organisational decline and adapt structures accordingly · Danger: overconfident and inattentive management team

Evaluate the results · Quantitative measures

Institutionalisation

Unfreezing · Dissatisfaction with old culture and processes · Constructive destruction · Labour discontent

· Participative eg VroomYetton-Jago

Carry over

Re-freezing

Changing · Action play implemented · Training · Decentralisation

· New processes adopted and become permanent parts of firms and cuture

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· Planned change becomes part of operations in spite of managerial succession, attrition or alteration in other organisational aspects

Diffusion

WALTON · Diffusion not always guaranteed, can be undermined · Eg. Volvo, Shell

Organisational behaviour

Organisational culture and change (cont)

Methods of change in OD

Culture See page 9a

Organisational change See page 9a

System wide process changes Interpersonal and group

KURT LEWIN

· Survey feedback · Collecting questionnaire data from employees · Summarise · Feedback to employees · Survey of organisations

T-group procedures

Encounter group · Deeper personal knowledge and development

ROBERT BLAKE & JANE MOUTON

Team building programme

Support group

· 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

Grid organisational development

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· 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

Organisational behaviour