Introduction to Organizational Behavior

Organizational Behavior - systematic study of the actions and attitudes that people exhibit within organizations The field of OB seeks to replace intuitive explanations with systematic study

Goals of Organisational Behaviour

Explain, predict, and control human behavior

Why Do We Study OB?

To

learn about yourself and how to deal with others You are part of an organization now, and will continue to be a part of various organizations Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time Some of you may want to be managers or entrepreneurs

What Is an Organization?
A consciously coordinated social unit, composed of a group of people, which functions on a relatively continuous basis to achieve a common goal or set of goals.

Determinants of Employee Performance

Productivity Absenteeism Turnover organizational behaviour is a field of study that investigates the impact that individuals, groups and structure have on behaviour withinorganizations, for the purpose of applying such knowledge toward improving an organizations effectiveness. Systematic study - the use of scientific evidence gathered under controlled conditions and measured and interpreted in a reasonably rigorous manner to attribute cause and effect

Challenges Facing the Workplace

Organizational Level Productivity Developing Effective Employees Global Competition Managing in the Global Village Group Level Working With Others Workforce DiversityIndividual Level Job Satisfaction Empowerment Behaving Ethically

Contributing Disciplines
Psychology seeks to measure,explain, and change behavior Sociology studies people in relation to their fellow human beings

Social psychology focuses on the influence of people on one another Anthropology is the study of societies to learn about human beings and their activities Political science is the study of the behavior of individuals and groups within a political environment

Responding to Globalization
Increased Foreign Assignments Working with People from Different Cultures Coping with Anti-Capitalism Backlash Overseeing Movement of Jobs to Countries with Low-cost Labor

OB Insights
Improving People Skills Improving Customer Service Empowering People Working in Networked Organizations Stimulating Innovation and Change Coping with Temporariness Helping Employees Balance Work/Life Conflicts Declining Employee Loyalty Improving Ethical Behavior

Definition of Learning
A relatively permanent change in behaviour (or behaviour tendency) that occurs as a result of a persons interaction with the environment

How Learning Occurs

Classical Conditioning
Bell No Response

Unconditioned Stimulus (Food) During Conditioning Conditioned Stimulus (Bell)

Unconditioned Response (Salivation) Unconditioned Stimulus (Food) Unconditioned Response (Salvation) Conditioned Response (Salivation)

Conditioned Stimulus (Bell)

Operant Conditioning

Contingencies of Reinforcement
Consequence is introduced Behaviour increases/ maintained Positive reinforcement No consequence Consequence is removed Negative reinforcement

Behaviour decreases

Punishment

Extinction

Punishment

Schedules of Reinforcement
Behaviours
1 2 3 4 5 6 7 8 9

Continuous Fixed ratio Variable ratio

Time (Days)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Fixed interval Variable interval

Kolbs Experiential Learning Model

Concrete experience

Active experimentation

Reflective observation

Abstract conceptualization

Developing a Learning Orientation

Value the generation of new knowledge Reward experimentation Recognize mistakes as part of learning Encourage employees to take reasonable risks

Action Learning
Experiential learning in which employees are involved in a real, complex and stressful problem, usually in teams, with immediate relevance to the company
Concrete experience Learning meetings Team conceptualizes and applies a solution to a problem

Learning and OB
Stimulus generalization in Organizations Stimulus discrimination in Organizations Learning and Training Learning Through Training Employee Indiscipline

What is Personality?

Personality Determinants Heredity Environment Situation Family Social

Personality Traits
The Big Five Model

The Myers-Briggs Type Indicator

Personality Types Personality Types Extroverted or Introverted (E Extroverted or Introverted (E or I) or I) Sensing or Intuitive (S or N) Sensing or Intuitive (S or N) Thinking or Feeling (T or F) Thinking or Feeling (T or F) Perceiving or Judging (P or J) Perceiving or Judging (P or J)

OTHER PERSONALITY TRAITS

Achievement Orientation

Authoritarianism

Self - Esteem

Locus of Control Personality Traits Machiavellism

Risk -Taking

Self - Monitoring

Introversion Extroversion

Type A Type B Personality

Major Personality Attributes Influencing OB

Locus of control Machiavellianism Self-esteem Self-monitoring Propensity for risk taking Type A personality

Locus of Control

Machiavellianism

Conditions Favoring High Machs Conditions Favoring High Machs Direct interaction Direct interaction Minimal rules and regulations Minimal rules and regulations Distracting emotions Distracting emotions

Self-Esteem and Self-Monitoring

Risk-Taking
High Risk-taking Managers Make quicker decisions. Use less information to make decisions. Operate in smaller and more entrepreneurial organizations. Low Risk-taking Managers Are slower to make decisions. Require more information before making decisions. Exist in larger organizations with stable environments. Risk Propensity Aligning managers risk-taking propensity to job requirements should be beneficial to organizations.

Personality Types

Achieving Personality-Job Fit

Hollands Typology of Personality and Congruent Occupation s

OB Applications of Understanding Emotions Ability and Selection

Emotions affect employee effectiveness.

Decision Making
Emotions are an important part of the decision-making process in organizations.

Motivation
Emotional commitment to work and high motivation are strongly linked.

Leadership
Emotions are important to acceptance of messages from organizational leaders.

OB Applications of Understanding Emotions Interpersonal Conflict

Conflict in the workplace and individual emotions are strongly intertwined.

Deviant Workplace Behaviors

Negative emotions can lead to employee deviance in the form of actions that violate established norms and threaten the organization and its members.
Productivity failures Property theft and destruction Political actions Personal aggression

Defining Motivation

Key Elements Key Elements 1. Intensity: how hard a person tries 1. Intensity: how hard a person tries 2. 2. 3. 3. Direction: toward beneficial goal Direction: toward beneficial goal Persistence: how long a person tries Persistence: how long a person tries

Challenges of Motivating Employees

Changing workforce
Younger employees have different needs Diverse workforce

Layoffs, restructuring
Damaged trust, commitment

Flatter organizations
Fewer supervisors to monitor performance

Needs Hierarchy Theory

Needs Hierarchy Theory SelfActualization Esteem Belongingness Safety Physiological

Maslow arranged five needs in a hierarchy Satisfaction-progression process People who experience self-actualization desire more rather than less of this need Not much support for Maslows theory

Theory X and Theory Y (Douglas McGregor)

Hollands Typology of Personality and Congruent Occupations

Two-Factor Theory (Frederick Herzberg)

Factors characterizing events on the job that led to extreme job dissatisfaction

Factors characterizing events on the job that led to extreme job satisfaction

Comparison of Satisfiers and Dissatisfiers

Contrasting Views of Satisfaction and Dissatisfaction

Presence

Absence

ERG Theory ( Alderfer)

Needs Hierarchy Theory SelfActualization Esteem Belongingness Safety Existence Physiological Relatedness ERG Theory

Growth

Alderfers model has three sets of needs Adds frustrationregression process to Maslows model Somewhat more research support than Maslows theory

Innate Drives Theory

Drive to Acquire
Need to take/keep objects and experiences Basis of hierarchy and status Need to form relationships and social commitments Basis of social identity Need to satisfy curiosity and resolve conflicting information Basis of self-actualization Need to protect ourselves A reactive (not proactive) drive Basis of fight or flight

Drive to Bond

Drive to Learn

Drive to Defend

Innate Drives and Motivation

Emotional brain centre relies on innate drives to assign emotional markers to incoming information Emotional markers influence rational thoughts and become the conscious sources of motivation

Learned Needs Theory

Some needs are learned, not innate Need for achievement
desire for challenging and somewhat risky goals, feedback, recognition

Need for affiliation

desire to seek approval, conform, and avoid conflict try to project a favourable self-image

Need for power

desire to control ones environment personalized versus socialized power

Implications of Needs-based Theories

Organizations need to support employees to achieve a balance of their innate needs People have different needs at different times Offer employees a choice of rewards Do not rely too heavily on financial rewards

Expectancy Theory

Expectancy Theory in Practice

Increasing the E-to-P expectancy
training, selection, resources, clarify roles, provide coaching and feedback

Increasing the P-to-O expectancy

Measure performance accurately, clarify outcomes, explain how rewards are based on past performance, provide examples

Increasing outcome valences

Use valued rewards, individualize rewards, minimize countervalent outcomes

Effective Goal Setting

Specific Relevant Challenging Commitment Participation Feedback Task Effort Task Performance

Characteristics of Effective Feedback

Specific Credible Relevant

Effective Feedback

Sufficiently frequent

Timely

Multisource (360-degree) Feedback

Supervisor Customer Project leader

Co-worker

Evaluated Employee

Co-worker

Subordinate Subordinate

Subordinate

What Is Perception, and Why Is It Important? Peoples behavior is Peoples behavior is based on their based on their perception of what perception of what reality is, not on reality is, not on reality itself. reality itself. The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important. important.

Perceptual Process Model

Environmental Stimuli Feeling Hearing Seeing Smelling Tasting

Selective Attention Organization and Interpretation Emotions and Behaviours

Selective Attention
Characteristics of the object
size, intensity, motion, repetition, novelty

Perceptual context Characteristics of the perceiver

attitudes perceptual defense expectations -- condition us to expect events

Factors That Influence Perception

EXHIBIT

5-1

Person Perception: Making Judgments About Others

Distinctiveness: shows different behaviors in different Distinctiveness: shows different behaviors in different situations. situations. Consensus: response is the same as others to same Consensus: response is the same as others to same situation. situation. Consistency: responds in the same way over time. Consistency: responds in the same way over time.

Attribution Theory

Errors and Biases in Attributions

Errors and Biases in Attributions (contd)

Errors and Biases in Attributions

Frequently Used Shortcuts in Judging Others

Stereotyping
Process of assigning traits to people based on their membership in a social category Categorical thinking Strong need to understand and anticipate others behaviour Enhances our self-perception and social identity

Minimizing Stereotyping Biases

Diversity awareness training educate employees about the benefits of diversity and dispel myths Meaningful interaction Contact hypothesis Decision-making accountability use objective criteria in decision-making

Specific Applications in Organizations

Employment Interview Perceptual biases affect the accuracy of interviewers judgments of applicants. Performance Expectations Self-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities. Performance Evaluations Appraisals are subjective perceptions of performance. Employee Effort Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.

Other Perceptual Errors

Primacy
first impressions most recent information dominates perceptions one trait forms a general impression believing other people are similar to you

Recency

Halo

Projection

Improving Perceptions
Empathy
Sensitivity to the feelings, thoughts, and situation of others Cognitive and emotional component

Self-awareness
Awareness of your values, beliefs and prejudices Applying Johari Window

Conflict Defined
The process in which one party perceives that its interests are being opposed or negatively affected by another party.

Conflict

The Conflict Process

Conflict Perceptions Sources of Conflict Conflict Emotions Manifest Conflict Conflict Outcomes

Conflict Escalation Cycle

Task vs. Socioemotional Conflict

Task-related conflict
Conflict is aimed at issue, not parties Helps recognize problems, identify solutions, and understand the issues better Potentially healthy and valuable

Socioemotional conflict
Conflict viewed as a personal attack Introduces perceptual biases Distorts information processing

Organizational Conflict Outcomes

Conflict Management
Interventions that alter the level and form of conflict for organizational effectiveness

Constructive Conflict
Encourages people to learn about other points of view

Organizational Conflict Outcomes

Potential benefits
Improves decision making Strengthens team dynamics

Dysfunctional outcomes
Diverts energy and resources Weakens knowledge management Increases frustration, job dissatisfaction, stress, turnover and absenteeism

Sources of Conflict
Incompatible Goals
One partys goals perceived to interfere with others goals

Differentiation

Different values/beliefs Explains cross-cultural and generational conflict Conflict increases with interdependence Higher risk that parties interfere with each other
more

Task Interdependence

Sources of Conflict (cont)

Scarce Resources
Motivates competition for the resource

Ambiguous Rules

Creates uncertainty, threatens goals Without rules, people rely on politics

Communication Problems

Increases stereotyping Reduces motivation to communicate Escalates conflict when arrogant

Conflict Management Styles

High

Forcing

Problem-Solving

Assertiveness

Compromising

Avoiding
Low

Yielding

Cooperativeness

High

Conflict resolution
Emphasizing Superordinate Goals
Emphasizing common objectives rather than conflicting sub-goals Reduces goal incompatibility and differentiation

Reducing Differentiation
Remove sources of different values and beliefs Move employees around to different jobs, departments, and regions Other ways to reduce differentiation: Common dress code/status Common work experience

Better Communication/Understanding
Employees understand and appreciate each others views through communication Informal gatherings Formal dialogue sessions Teambuilding activities

Other Ways to Manage Conflict

Reduce Task Interdependence
Dividing shared resources Combine tasks Use buffers

Increase Resources
Duplicate resources

Clarify Rules and Procedures

Clarify resource distribution Change interdependence

Situational Influences on Negotiation

Location Physical Setting Time Passage and Deadlines Audience

Effective Negotiator Behaviours

Preparation and Goal Setting Gathering Information Communicating Effectively Making Concessions

Types of Third Party Intervention

High

Mediation

Inquisition

Level of Process Control Arbitration

Low

Level of Outcome Control

High

Organizational Culture Defined

The basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization.

The Basic Functions of Organizational Culture

Organizational Culture/basic functions

Provides a sense of identity for members

Enhances commitment to the organizations mission

Clairifies and reinforces standards of behavior

What Is Organizational Culture?

What Is Organizational Culture?

Culture Versus Formalization
A strong culture increases behavioral consistency and can act as a substitute for formalization.

Organizational Culture Versus National Culture

National culture has a greater impact on employees than does their organizations culture. Nationals selected to work for foreign companies may be atypical of the local/native population.

What Do Cultures Do?

Cultures Functions: Cultures Functions:
1. Defines the boundary between one 1. Defines the boundary between one organization and others. organization and others. 2. Conveys aasense of identity for its members. 2. Conveys sense of identity for its members. 3. Facilitates the generation of commitment to 3. Facilitates the generation of commitment to something larger than self-interest. something larger than self-interest. 4. Enhances the stability of the social system. 4. Enhances the stability of the social system.

What Do Cultures Do?

Culture as a Liability: Culture as a Liability:
1. Barrier to change 1. Barrier to change 2. Barrier to diversity 2. Barrier to diversity 3. Barrier to acquisitions and 3. Barrier to acquisitions and mergers mergers

Core Organizational Values Reflected in Culture

Sensitivity to needs of customers and employees Freedom to initiate new ideas Willingness to tolerate taking risks Openness to communication options

Elements of Organizational Culture

Artifacts of Organizational Culture

Physical Structures Language Rituals and Ceremonies Stories and Legends

Organizational Culture

Beliefs Values Assumptions

Artifacts: Stories and Legends

Social prescriptions of desired (undesired) behaviour Provides a realistic human side to expectations Most effective stories and legends:
Describe real people Assumed to be true Known throughout the organization Are prescriptive

Artifacts: Rituals and Ceremonies

Rituals
programmed routines (eg., how visitors are greeted)

Ceremonies
planned activities for an audience (eg., award ceremonies)

Artifacts: Organizational Language

Words used to address people, describe customers, etc. Leaders use phrases and special vocabulary as cultural symbols
eg. Container Stores Being Gumby

Language also found in subcultures

eg. Whirlpools PowerPoint culture

Artifacts: Physical Structures and Symbols

Building structure -- may shape and reflect culture Office design conveys cultural meaning
Furniture, office size, wall hangings

Organizational Culture

The Process of Innovation

Stage 1 Setting the Agenda

Stage 2 Setting the Stage

Stage 3 Producing the Ideas

Stage 4 Testing and Implementing the Ideas

Stage 5

Progress End End

Success Outcome Assessment Failure

Motivation

Individual or Team Productivity Resources Skills

Creating a Customer-Responsive Culture

Managerial Actions: Managerial Actions: Select new employees with personality and Select new employees with personality and attitudes consistent with high service attitudes consistent with high service orientation. orientation. Train and socialize current employees to be Train and socialize current employees to be more customer focused. more customer focused. Change organizational structure to give Change organizational structure to give employees more control. employees more control. Empower employees to make decision about Empower employees to make decision about their jobs. their jobs.

Creating a Customer-Responsive Culture

Managerial Actions (contd) :: Managerial Actions (contd) Lead by conveying a customer-focused vision Lead by conveying a customer-focused vision and demonstrating commitment to customers. and demonstrating commitment to customers. Conduct performance appraisals based on Conduct performance appraisals based on customer-focused employee behaviors. customer-focused employee behaviors. Provide ongoing recognition for employees who Provide ongoing recognition for employees who make special efforts to please customers. make special efforts to please customers.

Keeping Culture Alive

Selection
Concerned with how well the candidates will fit into the organization. Provides information to candidates about the organization.

Top Management
Senior executives help establish behavioral norms that are adopted by the organization.

Socialization
The process that helps new employees adapt to the organizations culture.

Stages in the Socialization Process

How Organization Cultures Form

How Employees Learn Culture

Stories Stories Rituals Rituals Material Symbols Material Symbols Language Language

Spirituality and Organizational Culture

Characteristics: Characteristics:
Strong sense of Strong sense of purpose purpose Focus on individual Focus on individual development development Trust and openness Trust and openness Employee Employee empowerment empowerment Toleration of employee Toleration of employee expression expression

Vulnerable Sensitive. Honest about your weakness. Just the qualities you need to be a strong leader. Consider leading softly is more effective than armour plated command and control. Harvard Business Review Failing Organisations are usually over-managed and under-led. Warren G Bennis Todays Presentation is aimed at: Discussing the necessity of leadership. Understanding and finding implications of different leadership styles. Identifying differences between Manager and Leader. Theories of leadership.

Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals. Keith Davis Leadership is the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals. Koontz Leadership is the quality of behaviour of individuals whereby they guide people or their activities in organising efforts. Chester Barnard

It implies:
It is a continuous process. Essentially a process of influencing. Basically a personal quality. A continuous motivation process. Functioning of a common goals determines leader follower relationship.

NECESSITY
Motivating Employees. Creating Confidence. Building Morale. Developing Team Work. Securing Group Effectiveness. Counselling People.

STYLES OF LEADERSHIP
Autocratic Leadership Participative Leadership Free-rein Leadership

Autocratic Leadership
Authoritarian, directive or nomothetic style. Ultra-utilization of power. Result may be negative leadership.

Types of Autocratic Leadership

Strict Autocrat Benevolent Autocrat Incompetent Autocrat

Participative Leadership
Democratic, consultative or ideographic style. Team building and goal sharing. Consultation and participation of subordinates. Decentralised decision - making process.

Free-rein Leadership
Super democratic style. Policy of no intervention. Managers only contribution in framing programmes and limitation. Manager only maintains a contact.

policy

Trait Theories. Behavioural Theories. Contingency Theories. Situational Theories. LMX Theory. Leadership-participation Theory. Path-Goal Theory.

Leadership Theories

LEADERSHIP AS A CONTINUUM
Leadership in a practical world is between two extremes of autocratic and free-rein. Tannenbaum and Schmidt proposed a continuum moving from authoritarian leadership behaviour to Autocratic Free-rein free-rein.
(subordinate centered leadership) Use of authority by the Manager Area of freedom for subordinates Manager takes decisions and announces Manager presents ideas and invities suggestions Manager presents problems, gets suggestions and makes decisions Manager permits subordinates of function within limits defined by superior

(boss centered leadership)

Manager sells decisions

Manager presents tentative decision subject to change

Manager defines limits, asks groups to make decision

DIFFERENCES BETWEEN MANAGER AND LEADER

Managers are people who do things right, and leaders are people who do the right thing. Managements efficiency lies in climbing the ladder of success, leadership determines whether the ladder s leaning against the right wall.
LEADERSHIP

Warren Bennis and Burt Nanus MANAGEMENT

1. Manager manages things. 2. Managers hold formal position. 3. Managers achieve results by directing the activities of others. 4. Manager enjoys formal designated authority. 5. Manager engenders fear.

1. Leader leads people. 2. Leader can use his/her informal influence. 3. Leaders create a vision and inspire others to achieve this vision. 4. Leader processes nonsanctioned influences ability. 5. Leader inspires enthusiasm.

Way to Effective Leadership

Finding the Leader in You Starting to Communicate Motivating People Expressing Genuine Interest in others Seeing Things from the Other Persons point of view Listening to Learn Teaming up for Tomorrow Respecting the dignity of others Recognition, Praise, and Rewards Handling Mistakes, Complaints, and Criticism Setting Goals Focus and Discipline Achieving Balance Creating a Positive Mental Attitude Learningnot to worry The Power of Enthusiasm

Organisational Change
Organisational Change is the process by which organisations move from their present state to some desired future state to increase their effectiveness Gareth. R. Jones
Org Level Forces Org structure Org Cultureion Org Strategy & Over Determination Sources of Change Individual Level Forces Cognitive Biases Uncertainty Fear of Loss Selective Perception Habit Logical Reasons Group level Forces Group Norms Group Cohesiveness Groupthink

Sub Unit Level Forces Differences in Orientation Power & Conflict

Planned & Unplanned Change

Planned change are the activities that are intentional and goal oriented First order change Linear and Continuous Second order change that is multidimensional multilevel, continuous and radical Change Agents: Can be managers or non managers, employees or consultants Change agents can change structure, technology, physical setting and people

Force Field Analysis Model

Desired Conditions
Restraining Forces

Restraining Forces

Driving Forces

Restraining Forces

Current Conditions
Driving Forces

Driving Forces

Before Change

During Change

After Change

Resistance to Change
Nature of the Workforce Technology

Forces for Change

Economic Shocks Competition Social Trends World Politics

Creating an Urgency for Change

Inform employees about driving forces Most difficult when organization is doing well Must be real, not contrived Customer-driven change
Adverse consequences for firm Human element energizes employees

Minimizing Resistance to Change Communication

Highest priority and first strategy for change Improves urgency to change Reduces uncertainty (fear of unknown) Problems -- time consuming and costly

Minimizing Resistance to Change Communication

Training Employee Involvement

Increases ownership of change Helps saving face and reducing fear of unknown Includes task forces, search conferences Problems -- timeconsuming, potential conflict

Minimizing Resistance to Change Communication

Training Employee Involvement Stress Management

When communication, training, and involvement do not resolve stress Potential benefits
More motivation to change Less fear of unknown Fewer direct costs

Problems -- timeconsuming, expensive, doesnt help everyone

Minimizing Resistance to Change Communication

Training Employee Involvement Stress Management Negotiation

When people clearly lose something and wont otherwise support change Influence by exchange-reduces direct costs Problems
Expensive Increases compliance, not commitment

Minimizing Resistance to Change Communication

Training Employee Involvement Stress Management Negotiation Coercion

When all else fails Assertive influence Firing people -- radical form of unlearning Problems
Reduces trust May create more subtle resistance

Refreezing the Desired Conditions

Realigning organizational systems and team dynamics with the desired changes
Alter rewards to reinforce new behaviours Feedback systems
Help employees learn how they are doing Provide support for the new behaviour patterns

Strategic Vision & Change

Need a vision of the desired future state Minimizes employee fear of the unknown Clarifies role perceptions

Change Agents
Anyone who possesses enough knowledge and power to guide and facilitate the change effort Change agents apply transformational leadership
Help develop a vision Communicate the vision Act consistently with the vision Build commitment to the vision

Successfully Diffusing Change

Successful pilot project Receives visibility Top management support Labour union involvement Diffusion strategy described clearly Pilot project people moved to other areas

Action Research Philosophy

Change needs both action and research focus Action orientation
Solve problems and change the organizational system

Research orientation
Concepts guide the change Data needed to diagnose problem, identify intervention, evaluate change

Action Research Process

Establish ClientConsultant Relations

Diagnose Need for Change

IntroAduce Change

Evaluate/ Stabilize Change

Disengage Consultants Services

Appreciative Inquiry Philosophy

Directs the groups attention away from its own problems and focuses participants on the groups potential and positive elements. Reframes relationships around the positive rather than being problem oriented
Courtesy of Amanda Trotsen-Bloom

Appreciative Inquiry Process

Discovery Dreaming Forming ideas about what might be Designing Engaging in dialogue about what should be Delivering Developing objectives about what will be

Discovering the best of what is

Parallel Learning Structure Philosophy

Highly participative social structures Members representative across the formal hierarchy Sufficiently free from firms constraints Develop solutions for organizational change which are then applied back into the larger organization

Parallel Learning Structures

Parallel Structure Organization

Cross-Cultural and Ethical Concerns

Cross-Cultural Concerns
Linear and open conflict assumptions different from values in some cultures

Ethical Concerns
Privacy rights of individuals Management power Individuals self-esteem Consultants role

Communication
Communication may be understood as the process of exchanging information and understanding between people Significance: a. Control member behaviour b. Fosters motivation c. Provides Information d. Changing peoples attitudes e. Essence of social behaviour Proemics f. Role in knowledge management Types of Communication: a. Verbal Kinesics b. Non Verbal c. Written
Para language

Organisational Communication
a. b. c. d.

Factors Influencing Organisational Communication Formal channel of communication Authority structure Job specialisation Information ownership Downward communication Upward communication Lateral communication Diagonal communiaction External communication

Communication Flows
a. b. c. d. e.

Communication Networks
Wheel Network A Chain Network A A Y Network B B C C D All Channel Network A B

C D E A

E E

Circle Network

Communication Roles
a. b. c. d. Gatekeepers Liasons Isolates Cosmopolites

Informal Communication ( Grapevine )

a. Chain System b. Cluster System c. Gossip Sustem

Communication Process
Source
Message

Encoding
Message

Channel
Message

Decoding
Message

F E E D B A C K

Reciever

Sender Related Barriers: Communication Goals Communication Skills Interpersonal Sensitivity Differing frames of reference Improper Diction Inconsistent Non Verbal Signals Fear Sender Credibility Receiver Related Barriers Selective & Poor Listening Evaluating the Source Perceptions Lack of responsive feedback Meta communication

Communication Barriers

Situation Related Barriers: a. Jargon b. Information Overload c. Time Pressure d. Communication Climate e. Noise f. Distance g. Mechanical Failure h. Murphys Law of Communication

Overcoming the Barriers:

Senders Responsibility a. Setting communication goals b. Using appropriate language c. Using empathic communication d. Improving Coommunicators Credibility e. Using face to face communication f. Encouraging feedback

g. Using a correct amount of redundancy h. Developing trusting climate i. Using picture Receiver's Responsibility: a. Effective Listening ( Barriers to effective listening ): ii. Physiological Limitation iii. Inadequate background information iv. Selective memory v. Selective expectation vi. Fear of being influenced or persuaded vii. Bias and pre judgment viii.Selective perception ix. Influence from emotions x. Avoiding evaluative judgement xi. Providing responsive feedback

International OB
Trends in International Business
International joint ventures, Multinational mergers &

Acquisitions and global strategic alliances More earning from international business than domestic ABB, Honda, BP, Siemens, Motorola and Eastman kodak functioning in more than 50 countries Most assets owned by different nationalities Trade volume growing since WW II from $51 Billion to $415 Billion in 1972 and since then $18 trillion till recent times

Cultural Similarities & Differences

Cultural Norms, Values, cultural symbols, stories and rituals vary from nation to nation Arabs Japanese Americans
Freedom Independence Self Reliance Equality Individualism Competition Efficiency Time Directness Openness Aggressiveness Informality Future Orientation Risk Taking Creativity Self Accomplishment Winning Money Material Possessions Privacy Belongingness Group Harmony Collectiveness Age / Seniority Group Consensus Cooperation Quality Patience Indirectness Go Between Interpersonal Hierarchy Continuation Conservative Information Group Achievement Success Relationship Harmony with Nature Networking Family Security Family Harmony Parental Guidance Age Authority Compromise Devotion Very Patient Indirectness Hospitality Friendship Formal/Admiration Past & Present Religious Belief Tradition Social Recognition Reputation Friendship Belongingness Family Network

Cultural Clusters
Anglo
Australia Canada Ireland New zealand South Africa UK USA

Latin American
Argentina Chile Columbia Mexico Peru Venezuela Latin European Belgium France Italy Portugal Spain Near Eastern Greece Iran Turkey Portugal Spain

Arab
Abu Dhabi Bahrain Kuwait Oman Saudi Arabia UAE

Far Eastern
Hong Kong Indonesia Malaysia Philippines Singapore Taiwan Thailand Vietnam

Nordic
Denmark Finland Norway Sweden

Germanic
Austria Germany Switzerland

Independent
Brazil India Israel Japan

HR Practices
Hourly Wage rates in Mexico plays little role as it is mandatory for the employers to pay wages for 365 days In Aus and Brazil employees get 1 month leave for one yr of work In Japan seniority is the basis of promotions and performance In UK maternity leave is 40 weeks 18 of these paid In sweden 87% of companies HR managers are on board of directors

Hofstedes Cultural Dimension

Power Distance is the extent to which less powerful members of institutions of and organizations accept that power is distributed unequally Uncertainty Avoidance is the extent to which people feel threatened by ambiguous situations, and have certain beliefs and institutions that try to avoid these Individualism is the tendency of people to look after themselves and their family Masculinity refers to a situation in which the dominant values in a society are success, money, and other material things Cultural Diversity Source of energy - can be great source of energy and organizational effectiveness

Motivation Across Cultures

American Management Styles Control Emotional Appeal Recognition Material Awards Threats Cultural Values
Leadership, Friendliness Independence, Decision Making, Space, Time, Money Opportunity Group Participation; Company Success Individual Contribution Group Identity, Belong Ing to group Salary, Commission, Profit Sharing Loss of Job Out of Group Competition; Risk Taking Material Possession; Freedom Group harmony, Achievement, Reputation, Family security, Religion, Social Status Annual Bonus, Social Services, Fringe Benefits

Japanese
Persuasion, Functional Group activities Group Harmony

Arab
Coaching, Personal attention, Parenthood Of parents \ parenthood Religion, Nationalistic, Admiration Individual Status, Class\ society, Promotion Gift for self\family Family affair, salary increase Demotion

Compensation Across Cultures

Japanese get paid more than three times the wages of other Asian countries like Korea, Singapore, Taiwan Korean & Japanese workers expect bonuses twice a year In, Denmark more than 80% of employees belong to trade unions In Germany a minimum 18 days paid annual leave is mandatory

In India
MNC employees are paid more for identical work Distinction in salaries in different industries for identical works Huge gaps between employees of organized and unorganized sectors Distinction between salaries of public and private sector organizations In Govt. sector salary gaps between different departments

Assignments

Choice Customize Core

Competitive Cash Performance Based Employability Work Challenges

Stock Purchase

Flexible Schedules

Base /Bonus

Tax Deferral

Benefit Choices

MNC Pay Schedules

Base/ Bonus Mix

Phases of Cultural Adjustment

Phase 1 Expatriate experiences range of emotions Phase 2 Crisis / Shock leading to negative appraisals Phase 3 - Psychological adjustment for the expatriate Phase 4 Adjustment to the new environment

Emotional Intelligence individual & social

1. 2. 3. 4. 5.

Leadership across Cultures

National Context
Culture influences Worker needs and expectations

Self Awareness Self Regulation Motivation Empathy Social Skills

National Context Cultural Influences Worker Needs & Expectations

Subordinate Characteristics
Needs Achievement Motivation

Subordinate Motivation

Leader Behaviors &Traits

Work Setting Outcomes

Performance Satisfaction Nature of tasks Organizational structure Nature of work group

National Context
culture and educational training define leader preferences for behaviors and traits

National Context
Cultural institutions Influence organizations and group structures

Leadership Across Cultures

Universalism in Leadership
Articulates a Vision Breaks from the Status Quo Provides goals and a plan Gives meaning or a purpose to goals Takes risks Is motivated to lead Builds a power base Demonstrates high ethical and moral standards

Multicultural Teams

Token Teams One member from one culture Bicultural Teams Members from two cultures Multicultural Teams Members from three or more cultures Task related selection Establishing a vision Equalizing

Managing Culturally Diverse Teams

Negotiating Globally
When to Negotiate
Strategy Value of Relationship Commitment Exchange Very Important Important Sufficiently Low Power Distribution Time Available Yours/Theirs High Very Low

Negot iate

High

Bargain

Take it or Leave it

Low

Un Important

Un Important

Very Low

Low

Very High

Steps in International Negotiations

Step 1 Preparation Step 2 Building the Relati ship Step 3 Exchange of Infor mation and first offer Step 4 Persuasion Step 5 Concessions Step 6 Agreement

Negotiating Tactics
Promise Threat Recommendation Warning Reward Punishment Normative Appeal Commitment Self Disclosure Question Command

Communicating Across Cultures

1.

Language and Culture

High & Low Context Languages in which people state things directly and explicitly are low context language and indirectly and implicitly is high context language Use of Interpreters Non Verbal Communication facial gestures, voice, intonation, physical distance, smile, battling of eyelid, kiss, handshake, and silence

2. 3.