Module 1: Introductory topics .................................................................................. 1 Overview......................................................................................................................... 1 1.1 Thinking about organisations and management....................................................... 3 Introduction ..................................................................................................................... 3 1.1.1 Why do we need to manage? ................................................................................ 3 Conclusion ...................................................................................................................... 5 1.2 Managerial work ....................................................................................................... 5 Introduction ..................................................................................................................... 5 1.2.1 The nature of managerial work .............................................................................. 5 1.3 Founding views of management............................................................................. 10 Introduction ................................................................................................................... 10 1.3.1 Scientific management ........................................................................................ 10 1.3.2 Administrative management ................................................................................ 11 1.3.3 The human relations movement .......................................................................... 13 1.3.4 Bureaucracy......................................................................................................... 13 1.3.5 Systems theory .................................................................................................... 13 1.3.6 Other approaches ................................................................................................ 14 Module 2: Groups, teams and leadership ............................................................. 18 Overview....................................................................................................................... 18 2.1 The nature of groups and teams............................................................................. 20 Introduction ................................................................................................................... 20 2.1.1 Definitions of groups: two caveats ....................................................................... 20 2.1.2 Functions of formal and informal groups ............................................................. 21 2.1.3 Other arguments concerning the formation of informal groups ........................... 22 2.1.4 Characteristics of groups ..................................................................................... 22 2.2 Team roles.............................................................................................................. 26 2.2.1 Creating an effective team................................................................................... 27 Conclusion .................................................................................................................... 29 2.3 Leadership .............................................................................................................. 30 Introduction ................................................................................................................... 30 2.3.1 Core definitional elements ................................................................................... 31

First Published: Semester 2, 1997. This edition: Session 2 2005 Author: Mary Barrett. Edited and updated by Shaun Saunders. Published by the Graduate Studies Program, Faculty of Business, University of the Sunshine Coast, Maroochydore DC, Qld, 4558 Copyright, University of the Sunshine Coast Copyright protects this publication. Except for purposes permitted by the Copyright Act 1968 (Cwlth) reproduction by any process is prohibited without the prior written permission of University of the Sunshine Coast. Initial inquiries are to be made to the Manager Graduate Studies, Faculty of Business. Copyrighted materials reproduced herein are used either under the provisions of the Copyright Act as amended, under agreement with Copyright Agency Limited, or as a result of permission from the copyright owner. We acknowledge, with thanks, those people who contributed of their time and knowledge to the development of this course.


2.3.2 Points of convergence across leadership theories .............................................. 31 Module 3: Motivation and persuasion ................................................................... 35 Overview....................................................................................................................... 35 3.1 Motivation ............................................................................................................... 38 Introduction ................................................................................................................... 38 3.1.1 Theories of motivation ......................................................................................... 38 3.1.2 Process theories of motivation............................................................................. 42 3.1.3 Orientation to work approaches........................................................................... 45 3.1.4 Applications of motivation theories to human resource management practices.. 46 3.1.5 Other HRM issues ............................................................................................... 46 3.2 Persuasion.............................................................................................................. 50 Introduction ................................................................................................................... 50 3.2.1 What is persuasion? ............................................................................................ 51 3.2.2 Why learn the basics of persuasion?................................................................... 51 3.2.3 Fundamental principles of persuasion ................................................................. 54 3.2.4 The four strategies of influence: .......................................................................... 59 Module 4: Organisational culture, power and politics ......................................... 64 Overview....................................................................................................................... 64 4.1 Organisational culture............................................................................................. 66 Introduction ................................................................................................................... 66 4.1.1 Elements of culture .............................................................................................. 67 4.1.2 Perspectives on organisational culture ................................................................ 70 4.1.3 Culture and organisational lifecycle ..................................................................... 72 4.1.4. Culture and strategy ........................................................................................... 72 4.1.5 Cultural change.................................................................................................... 73 4.1.6 Societal and global workplace culture ................................................................. 75 Conclusion .................................................................................................................... 76 4.2 Power and politics................................................................................................... 76 Introduction ................................................................................................................... 76 4.2.1 'Power to' versus 'power over' ............................................................................. 77 4.2.2 Sources of power................................................................................................. 77 4.2.3 Power strategies+................................................................................................ 81 4.2.4 An Australian contribution to thinking about power: the arena model.................. 81 Conclusion .................................................................................................................... 82 Module 5: Organisational structure and decision-making .................................. 85 Overview....................................................................................................................... 85 5.1 Organisational structure.......................................................................................... 87 Introduction ................................................................................................................... 87 5.1.1 Definitions of organisational structure and design ............................................... 87 5.1.2 The contingency approach to organisational design ........................................... 88 5.1.3 Applications of organisational design .................................................................. 89 5.2 Decision-making ..................................................................................................... 90 Introduction ................................................................................................................... 90

Master of Business Administration


5.2.1 Alternatives to the rational model of decision-making ......................................... 91 5.2.2 A new form of rationality? .................................................................................... 97 5.2.3 Perspectives on what happens to information in decision-making ...................... 97 5.2.4 The escalation of commitment............................................................................. 98 5.2.5 Improving decision-making .................................................................................. 99 Conclusion .................................................................................................................. 100 Module 6: Organisational change, organisational behaviour and HRM, and management issues of the future ........................................................................ 102 Overview..................................................................................................................... 102 6.1 Organisational change.......................................................................................... 104 Introduction ................................................................................................................. 104 6.1.1 Perspectives on managing change.................................................................... 104 6.1.2 The organisation development approach to managing change......................... 106 6.1.3 Managing change as a political process............................................................ 110 6.1.4 Contingency approaches to managing change ................................................. 112 Conclusion .................................................................................................................. 114 6.2 Organisational Behaviour and HRM ..................................................................... 114 6.2.1 Why HRM? ........................................................................................................ 115 6.2.2 The Human Resource Management Process.................................................... 115 6.3 Management issues of the future ......................................................................... 122 Introduction ................................................................................................................. 122 6.3.1 Ways of predicting the future ............................................................................. 123 6.3.2 Select leading indicators.................................................................................... 123 6.3.3 Changes in the world of work ............................................................................ 124 Implications of change ................................................................................................ 127

Graduate Studies Program


their strengths and limitations.2 Managerial work 1. So the Module starts out with a discussion of organisations. and their enduring contributions to modern views of management some experience at applying some of these perspectives on organisations and managerial work to examine your own approach to management.1 Thinking about organisations and management 1. we proceed to a discussion of the nature of managerial work. Finally.3 Founding views of management Learning outcomes Upon completion of this Module you should have: • an appreciation of some of the diverse ways of interpreting organisations and how being able to think about organisations in different ways contributes to understanding the task of management an understanding of a diversity of approaches to thinking about managerial work an understanding of some of the formal founding theories of management. but by adopting a number of points of view to allow a more comprehensive appreciation of what organisations are about. the Module presents some material on the founding schools and theories of management which. organisations. Topics Topics covered in this Module are: 1. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 1 Module 1: Introductory topics Overview The best way to think about 'Introductory topics' is to realise that to understand management you first need to understand what is being managed – that is. • • • Learning resources Graduate Studies Program . not from any single perspective. tend to persist in influencing the field of management even today. the workings of your organisation and some case studies.Faculty of Business. From there. far from being superseded in the manner typical of scientific theories in the conventional sense.

Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 2 Master of Business Administration .

D. and so on. Rubin. It is because they are more cognitively capable. Kolb. Graduate Studies Program .1 Why do we need to manage? As a way of getting to grips with the subject as a whole. we need to manage.. to get an education. as a generality. what is 'money’. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 3 1. We also know that.. energy and other resources to meet these needs. 67-73). M. and operate in groups – that is. It has been argued. especially if one person tries to do everything on their own. But from another point of view. Introduction This topic introduces you to management issues within organisations. It looks at the need for management and discusses this in the context of the complex and dynamic nature of organisations. we can imagine that from the time cave-people decided that it was time to catch the next mammoth. trying to explain them exhaustively. As we know from our own experience.Faculty of Business. because we know these things well and encounter them all the time.1 Daudelin. Prentice Hall. cooperate with each other and coordinate the doing of tasks – that humans have come to be so successful. ‘Learning from Experience Through Reflection’. In a way.A. people magnify their abilities by working with others. or trying to explain walking. not because they are physically stronger. Because we organise. people form organisations. pp. Upper Saddle River. This is a little like asking what is a 'family’. means that the question is quite difficult.S. In learning about the organisations and management we will examine the following issues: 1. and in a way which would enable someone who had never encountered them to understand them and try to use them for themselves. New Jersey. & I. eds J. plan things.1. (See Chapter 3. in The Organizational Behavior Reader. to get from one place to another. This has always been true. in fact. can manage tools. there is a scarcity of time. In brief.1 Thinking about organisations and management Reading 1. that it is largely because of humans' capacity to organise and work together that they have come to dominate the planet as a species.M. What we know at the outset. and why we need to do it. is that people have needs of all kinds: to eat. let us first of all ask what management is. 2001. the question is ridiculously easy. to have shelter. it seemed like a good idea to work in unison to achieve certain ends. Osland. to entertain themselves.E. can think conceptually.

And indeed. starts to look like a complicated task. Some of these. are dealt with. it is time to appreciate more about these familiar. Keeping the organisation's goals understood. land and capital – and sometimes technology – are some of the basic resources organisations need to do their work. and the manufacturers of toasters. members of organisations will have their own needs as well. Mutual attraction: Of course. which will not necessarily be those of the organisation. Organisations need management to keep the whole show on the road. but which are no longer so. but labour. marmalade and coffee. to the cars we got into to go to work. bread. for a discussion of some of the major contextual and environmental influences on organisations today. virtually every aspect of our lives is touched on by organisations in some form. Organisations need: A goal: some reason for being that is understood – at least in general terms – by its members. These can be of all kinds. aligned with the needs of members. Read Robbins. such as ethics. Resources: Organisations need something with which to work. From the distributors of electricity. and whose members have simply slipped away. Defining management In the light of what and why we manage. The pervasiveness of organisations Given this obvious – and yet perhaps not quite so obvious – explanation for the value of organisations. So the point about mutual attraction is that organisations need to supply some way by which the members can meet their own needs as well as those of the organisation. We are all familiar with organisations which were once vibrant and viable. allocate and use human efforts and physical resources to get something done. keeping the organisation itself on track towards the goal by the allocation of its various resources. There is the company that made the blankets and sheets we threw off as we got out of bed. Chapter 1.Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 4 The needs of organisations But organisations themselves have needs. pervasive and yet mysterious creations: organisations. it makes sense to define management as: the activity whereby we obtain. it is perhaps easier to see why there are so many of them. We need only think of the fact that organisations pay employees and managers to come and fulfil the goals of the organisation. Management: Because of the previous three items that we can see that organisations need management. Textbook Master of Business Administration .

identified ten roles for a manager. We need multiple views to come to grips with them. they resist explanation via a single tool or mechanism. Graduate Studies Program . Informational Roles and Decisional roles. This descriptive system remains popular today. such a view of the calm and orderly approach to managerial work seemed to be seriously questioned when Rosemary Stewart wrote up the results of a study of what managers really do. 1.1 The nature of managerial work Managerial roles For a long time. it was thought that the best description of managerial work lay in classifying it according to a series of roles: planning. leading. Organisations are changing entities existing within a variety of contexts that are themselves often unstable. This does not leave much time for systematic planning. as follows: Interpersonal roles • • • figurehead leader liaison. Mintzberg (1975) produced a classic paper in which he tried to dispel some of the myths and folklore about what a manager really does. See Robbins (textbook) for a summary of Mintzberg's findings. on average. as a result of his study. These were grouped into Interpersonal roles. From her observations of 100 managers she found that over a four-week period each of them had. attitudes to work and theoretical viewpoints on the nature of work.2. 1.2 Managerial work Introduction This topic examines the issue of work from a variety of points of view. Mintzberg. only nine periods of half-an hour without interruption. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 5 Conclusion It is clear from what has preceded that organisations are complex. It is probably clear by now why studying an organisation chart feels not much more informative than studying a faded photograph if you are trying to capture an understanding of the organisation as a 'moving target'. and controlling. Managerial work examines the roles and performance issues related to management.Faculty of Business. It looks at the motivations for work. organising. organising. leading and controlling. which is less than one every other day. Following this initial work. Even using more complex perspective such as the ones offered in this Module will have different results according to the purposes and perspective of the person applying it. However. partly as a result of Fayol's work (which we will describe later in this Module).

(See Chapter 2. respectively. middle management and senior management. The balance of these roles in a particular managerial job may vary. Kolb.2 Mintzberg. They manage the interaction with the external environment. eds J. They are essentially technical managers responsible for producing products or services. 34-49).Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 6 Informational roles • • • • • • • • monitor disseminator spokesperson decisional roles entrepreneur disturbance handler resource allocator negotiator. future-oriented focus is required in order to set the most appropriate organisational mission and goals. It is important to note that Katz and many other authors consider the balance of skills should not remain the same as a manager's career progresses. Master of Business Administration . New Jersey. H. human skills and conceptual skills. pp. managers are generally involved in the supervision of non-management personnel.S. Upper Saddle River.A. The need for this shift arises because the nature of what is required of managers changes depending on their level in the organisational hierarchy. These variations could be described briefly as follows: At lower or operational levels. & I. the importance of technical skills tends to – indeed ought to – decline in favour of human skills and then conceptual skills as managers move further up the organisational hierarchy. Prentice Hall. There is responsibility for the coordination of resources particularly at the departmental level. Reading 1. That is. A long-term. They direct and control the work of others. D.M. middle managers translate the goals of the organisation into specific objectives and activities. Management skills (or competencies) Another relatively simple view of management – at least in terms of the number of parts in which it classifies the management field – is Katz's (1974) conceptualisation of three broad management skills: technical skills. ‘The Manager’s Job’. 2001. in The Organizational Behavior Reader. senior managers are responsible for the efficiency and effectiveness of the organisation as a while. supervisory. At the strategic level. but basically all managers will need at least some skills in each of the roles. Osland. The types of management associated with these levels are. Rubin. At the tactical level.

which is now often discussed in the context of forming effective teams. network building and executing (getting networks to implement agendas). we began by discussing managerial roles (Mintzberg) via a discussion of Fayol's basic managerial functions. in a 1982 study. cooperation and support from those further up Getting cooperation from groups over which they have no direct authority (for example. customers. Getting information. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 7 Another functional view In considering the nature of managerial work. presents a typology that is similar to the list of managerial activities provided by Mintzberg. Effective vs successful managers Luthans (1988) and others have made special contribution to the field by pointing out which managerial activities lead to success (in terms of how quickly the manager is promoted) compared to which activities appear to be associated with managerial effectiveness. suppliers. Margerison and McCann's work categories comprise nine component functions. He presented the following common 'job demands' on managers: 1 2 3 4 5 6 Setting basic goals. which we will examine further in Module 4. presenting these job demands as part of an overall three-part process: that is agenda setting. the importance of social and political skills. But Kotter also goes somewhat further. The functions are: • • • • • • • • • advising acquiring and distributing information innovating. managing conflict. We return now to a somewhat more elaborate view of the functions of management work. creating and experimenting with ideas promoting seeking and presenting opportunities developing assessing and developing practical plans organising implementing and pushing for action producing following through and completing task outputs inspecting auditing and controlling systems and procedures maintaining upholding and enhancing quality and standards linking integrating and coordinating the work of others through meetings and faceto-face contact. This view is presented by Margerison and McCann (1985). polices and strategies despite great uncertainty surrounding key factors. unions. other departments or divisions) Motivating and controlling staff. Clearly. The authors argue that all of these work functions must be present in the various levels of an organisation if the organisation is to achieve high performance. Achieving a balance in the allocation of organisational resources among the various claimants. Graduate Studies Program . Monitoring activities so as to be able to identify problems and quickly resolve them. Kotter. should not be underestimated.Faculty of Business. From there we moved to a discussion of managerial skills.

the manager's day tends to be subsumed in 'fire-fighting' unexpected problems. the more they try to develop the relationship. The content of managerial work is varied and fragmented. to discover that the formula for success in management is not the same as the formula for effectiveness. Network building involves encouraging the various network members to identify with the managers' agendas as well as fostering a sense of cooperation and commitment among them. it is not surprising that these managers put a lot of effort into developing support among key people for the set agenda. often fragmented and unrelenting. As managing generally involves getting things done through people. Particularly as managers reach the top levels of major organisations. and that management is by its nature a highly political activity. the readings indicate the complexity of managerial activities. It involves developing. This is not to argue that such 'recipes' have no value. peers and various other individuals and groups. drama. The more dependent the managers are on a particular group or individual. or according to the functional areas of the organisation they occupy. cajole. the research confirms that management is a demanding and complex activity. Breaks become less frequent. others are based on informal persuasion. All the studies show that managers typically engaged in a large number of activities covering ten or more Master of Business Administration . say as managers move further up the hierarchy (Mintzberg). The managers develop these agendas based on their own knowledge of the business and organisations involved. these studies and similar work describe the real world of managing. But it is disquieting. but rather that any single precept in management is unlikely to be capable on its own of solving complex problems. both inside and outside the organisation. and that chaos. Perhaps it comes as a relief to find that the frenetic reality of your job is at least being acknowledged in research. praise or reward. negotiating and demanding schedules 'go with the territory'. demand. including some things various management jobs have in common as well as differences between them. bargaining.Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 8 Agenda setting centres on developing a set of loosely connected goals and plans. In all. you can perhaps add a number of new fads to the list. In all. Kotter's view reinforces the political emphasis of Luthans et al’s view of management. Sometimes direct intervention occurs to ask. for example. Despite the intention to plan and reflect on future strategy. and there are continual demands for information. Some actions involve the use of the manager's formal power. The pace of work is hectic. power plays. It may be useful at this point to summarise what these studies tell us as a whole about managerial activities. Thus managers develop relationships with superiors. Taken together. subordinates. Network building involves the developing of a network of cooperative relationships with people who could make an important contribution to the successful implementation of the agenda. workloads become considerable (50 hours and more per week for even relatively junior managers). plus information gathered primarily from discussions with people. Often this is done – paradoxically – by 'standing back': giving those with the capacity to accomplish a task successfully the authority to do just that and not directly intervening. threaten. sometimes resulting in formal documents. By now. sometimes remaining as ideas in the manager's head. Execution involves the mobilisation of support from the network for the implementation of the agenda. maintaining and shaping an informal network of relationships. Consider for example the popularity of Total Quality Management or TQM (late 80s to early 90s) and the current predilection for various forms of corporate re-engineering.

adding superiors. Kotter. political in-fighting and compromises. Managers need to pay attention to gossip and rumours: they represent up-to-date information whether or not their content is factually based. Such activities tend to be disjointed. The descriptive studies on which this part of the Module has been based show that while some planning does occur. Kotter found that the achievement of agenda items is a gradual. Across studies. The political phenomena associated with decision-making will be dealt with more formally in the Module 'Organisational culture and power and politics'. concentrating on areas they know best. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 9 different types depending on whose model is being used to classify them. and this increases the further up one goes in an organisation. Interactions typically involve oral communication. The high need for lateral and external contacts is explained by managers' needs for information to reduce levels of uncertainty. starting with their peers and. Interactions often involve peers and outsiders. Estimates put the amount of time managers spend in oral communication as varying between one quarter and three-quarters. Even joking and small talk are necessary for maintaining personal networks. over time. These include written messages. The contributions of Luthans. As Kanter notes. with little connection between them. managers are reported as using a variety of methods to obtain information. and so managers are inclined to ignore the 'fuzzy' and difficult to diagnose areas. Kanter and others show that successful managers tend to be those who can communicate across functions. phone messages. it appears that the objectives and strategies adopted by many firms emerge from more bottom-up processes. There always seem to be more problems than one person can handle. continuous process. Contrary to conventional models of strategic management. or to define solutions that involve more than their usual resources. They find it difficult to think beyond their immediate domain of responsibility. Kotter's work identifies how managers define agendas that consist of loosely connected goals. Problems present themselves 'out of the blue' and in random order. There is little time for careful analysis. it tends to be informal and implicit. the successful entrepreneurial manager builds coalitions of supporters.Faculty of Business. and resorting to styles of approach born out of habit and personal preference rather than considered analysis. in which managers use a range of influence techniques to shape opinion and mobilise support. Organisational decision processes are highly political. and decisions can drag on for months due to delays. which portray management as an essentially top-down process. divisions and with people outside the organisation. Most planning is informal and adaptive. Decision processes are disorderly and political. So networking at times surpasses even the higher level conceptual skills as managers develop skills and sensitivity to mobilise their workforce. because so many are initiated by others. If the story of the 1990s and the early part of the new century is the need for organisations to manage change. and also in the Module 'Control and decision making'. Managers seldom make major decisions immediately. then the need to reduce uncertainty increases correspondingly. but rather take a series of small steps towards the larger decision. scheduled and unscheduled meetings and observational tours. Graduate Studies Program . Byrne extends these terms to include idea scavengers and management by walking around.

Monitor the work to make sure employees are doing it in the best way. procedures and equipment were also emphasised. The Gilbreths tried to improve the performance of workers by identifying the most efficient set of motions for any task that would at the same time reduce worker fatigue.Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 10 Reading 1. Their study of bricklayers in action and the techniques devised to triple their Master of Business Administration . training of workers and the standardisation of processes. 49-57). D. but you are also encouraged to critique and evaluate them.A. The name most commonly associated with scientific management is that of Frederick Taylor. Prentice Hall. 1. Lilian and Frank Gilbreth and Henry Gantt are also closely linked with scientific management. Rubin.S. & I. for a discussion of management functions. Osland. ‘The Human Side of Management’. 2001. Taylor believed that managers should: 1 2 3 4 Study each job and determine the best way to do it. Assume all planning and organising responsibilities while the workers carry out their assigned tasks. Textbook 1. Kolb. Read Robbins. in The Organizational Behavior Reader. Its proponents sought to find – and apply – 'one best way' to complete production tasks. pp. Upper Saddle River. Chapter 1. Selection. In this topic we will examine the following issues: • • • • • • scientific management administrative management the human relations movement bureaucracy systems theory other approaches. New Jersey. (See Chapter 2. These are standard theories you are required to be familiar with. Select and train workers capable of doing the job. T.M. eds J. The focus was on increasing productivity through the work of individual employees.3.3 Founding views of management Introduction This topic examines several key models of management theory.1 Scientific management Formal theories of management emerged with the scientific management approach in the early 1900s.3 Teal. roles and skills.

was not translated from the French until the mid 1940s.Faculty of Business. including Chester Barnard and Mary Parker Follett. 1. The emphasis was on the internal functioning of the organisation rather than its capacity to respond to the external environment. particularly in the United States. however. focussed on the administrative level of organisations. the scientific approach considered workers as extensions of their equipment or 'human machines’. The approach to leadership was. recognised the necessity of balancing the goals of the organisation with the needs of individuals and identified the importance of informal groups within organisations.2 Administrative management The administrative management approach began in the early 1900s and extended into the 1950s. The scientific approach assumed that workers must be rigidly controlled by management as. managers needed to use high levels of specific technical skills combined with some managerial ability for first line supervision. however. written by the movement's principal proponent. Chester Barnard. accordingly. The linking of higher performance with greater rewards and the focus on cooperation between management and workers are also features of the modern workplace. The reason for its delayed influence was not only the predominance of scientific management. administrative management thinkers took a broad overview of management functioning. in place of scientific management's emphasis on the individual job and how best to do it. otherwise. a French mining engineer and executive. A legacy of Gantt's work still used today is the Gantt Chart. for example. such as the view that individuals were only motivated to behave in self-interested ways that would accommodate their economic and physical needs. Moreover. Scientific analysis of the workplace including task breakdown and selection and training of workers also had a significant impact on managerial practice. Accordingly. Fayol believed that its skills could be made explicit and taught as a profession. status and achievement played no part. but we define them now more exactly as follows: Graduate Studies Program . but the fact that the book. they would be unreliable and uninterested in their work. a means of charting production scheduling. In essence. management was the one least clearly defined. Managers in different positions in organisations were observed to use different skills. an authoritarian one. Administration Industrielle et Generale. Of all these activities.3. Follett emphasised that managerial principles and techniques should be applied in accordance with the particular requirements of individual situations – a tenet which is equally applicable to today's managers operating in a turbulent environment. accounting and managerial activities were at least as important as engineering approaches to enhanced productivity. they needed to exercise fewer technical skills and a much greater range of managerial ability. financial. The major advantages of scientific management were increased efficiency and productivity in manufacturing. security. in lower level positions. We recognise in these practices the forerunners of today's job descriptions and duty statements. many of the assumptions about human motivation were simplistic. We have already referred to Fayol's four principal management functions. As they progressed to higher levels. Despite this. He recognised that skills in technical. Generally. Henri Fayol. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 11 daily output is a well-known example of their work. commercial. Issues such as personal recognition. A central theme of the administrative management approach was the identification of the major principles and functions that managers could use to achieve superior organisational performance. There were other like-minded thinkers. Henri Fayol.

technological. Remuneration: Appropriate and fair reward for effort provides incentive.Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 12 1 2 3 4 Planning: Deciding on the ways in which the organisation will meet its goals. Authority and responsibility: Orders are supported by formal and personal authority and with the associated power to apply rewards or penalties. whether as stated or in some variant form. Leading: Directing employees to carry out required tasks. at first they tended to be taken as rigid prescriptions without regard to environmental. This was not always the case. The need to see their value but to adapt them for each organisation's needs may almost appear self-evident. Controlling: Monitoring how organisational plans are being carried out and taking corrective action when needed. Master of Business Administration . Centralisation: A balance between centralisation of authority and responsibility in a manager and delegation to employees should be maintained. 12 Stability of staff: A lower turnover rate of employees and long-term commitment are necessary for an efficient organisation. however. 13 Initiative: Employees should be encouraged to conceive new ideas and carry out plans without fear of failure. Unity of direction: There should be only one manager and one plan for operations of the same type. No doubt you will see applications of many if not all of these principles in your organisation today. 11 Equity: Friendliness among employees and managers and fair discipline increase commitment. although managers need to communicate laterally with their peers. personnel or other factors. Subordination: of individual interest to the organisation interest. which are briefly described as follows: 1 2 3 4 5 6 7 8 9 Divisions of labour: Tasks and responsibilities are specialised to achieve maximum efficiency. While it was Fayol's intention that the principles be applied flexibly. Today the need to apply a 'customised' view of them is better recognised and the fact that organisations still so frequently use Fayol's precepts – or some version of them – is evidence of their fundamental value. Organising: Allocating human and physical resources to carry out organisational plans. Fayol also described fourteen principles of management. Unity of command: Each employee should have only one direct supervisor. 10 Order: All resources should be correctly positioned to support the organisation's direction and goals. Discipline: Respect for organisational rules is accompanied by penalties for breaking them. The hierarchy or scalar chain: The line of authority and communication should run from top to bottom. Organisational interests and goals take precedence. 14 Esprit de corps: High morale and team spirit are organisational assets.

and focussed on the recognition that informal groups in organisations had a significant impact on organisational life. It emphasised people rather than machines.4 Bureaucracy The German sociologist.3 The human relations movement The human relations' movement emerged in the 1930s. 1. The studies took place at the Chicago factories of the Western Electric Company. It was found.3. it is generally accepted that its desirable features are most easily achieved in routine and predictable environments. however. Worker attitude and morale. Some features of Weber's ideal bureaucracy include: • • • • • • there is a division of labour where each position is well defined and appropriate authority is delegated standardisation and control are achieved by using formal rules and standards positions are in a hierarchy of authority selection and promotion depend on competence and qualifications rewards and penalties are applied according to standardised procedures loyalty to the organisation results in long-term job security. In contrast to the scientific management approach. 1. it held that worker satisfaction at a personal level. Other more flexible and responsible organisational structures are required in situations of rapid or unpredictable change.3. They aimed – at least at first – to investigate how physical working conditions affected the productivity and efficiency of factory workers. in the course of the famous 'illumination studies’. take pride in their work and increased their motivation – an effect known now as the 'Hawthorne Effect’. contended that the structure of an organisation had much to do with its level of efficiency. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 13 1. Max Weber. implying that the structure of organisations should – and could – remain relatively stable over the longer term. the best known research associated with this movement. Systems theory.Faculty of Business. that worker efficiency did not go up and down with improved and decreased quality of lighting – in fact that it increased continually. with its attempt to look at overall management functioning. While many organisations retain features of Weber's bureaucracy. which originated in the Graduate Studies Program . were recognised as affecting productivity in powerful ways. The Hawthorne Studies conducted during the 1920s and early 1930s by Harvard researchers Elton Mayo and Fritz Roethlisberger are perhaps. still tended to overlook the relationship between organisations and their external environments.5 Systems theory Even the administrative management approach. and the unpredictable aspects of some facets of organisational life needed to be taken into account. Weber's bureaucracy was designed to enable large organisations to carry out a wide range of activities in an orderly and efficient manner.3. It was concluded that the attention paid to the workers by the researchers made them feel important. and that a clearly structured organisation with well-defined roles and responsibilities – a bureaucracy – provided at least a theoretically ideal organisational form. as well as informal group norms. collectively. It focuses on positions rather than on the people occupying them.

This theory took as its starting point the idea that organisations are created for particular purposes and have multiple goals. numerous other formal and informal approaches to management. for example. as follows: • • • long-term employment collective decision-making individual responsibility Master of Business Administration .Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 14 biological sciences.6 Other approaches There are. Total Quality Management (TQM). The Theory Z model. and Japanese business practices into a single middle-ground framework. In brief. attempts to integrate common U. attempts to consider the organisation as a whole system made up of various interrelated parts of sub-systems. Inputs.S. emphasises the need for a global vision. In contrast to the scientific and administrative approaches which tended to regard organisations as complete unto themselves. known as Theory Z. that is as closed systems. the characteristics of traditional American organisations.3. developed by Ouchi. such as: • • • • • • • lifetime employment collective decision-making collective responsibility slow evaluation and promotion implicit control mechanisms non-specialised career path holistic concern for employee as a person – to yield 'Type Z' organisations which offer the best of both. systems theory drew attention to the interaction of the organisation with its environment. and managers need to focus on the interrelationship of these elements. of course. most of which combine elements of the approaches just described. aims to combine the measurement emphasis of scientific management and its continual search for improvement in task processes with the attention to human factors that characterises the human relations approach. 1. that is as an open system. outputs and feedback are the key elements of all open systems. transformation processes. which include: • • • • • • • short-term employment individual decision-making individual responsibility rapid evaluation and promotion explicit control mechanisms specialised career path segmented concern for employee as an employee – are combined with elements of 'Type X' or Japanese organisations. Another approach.

The contingency perspective. and as if it were a political system. which argues that managers should make decisions in a way that is most suitable for a given situation.1 Apply some organisational metaphors Managerial work Which of Mintzberg’s five roles are the most important in your current job (or in the job of the manager(s) you are observing)? How do you think the Chief Executive spends his or her time? If that is different from your job – in terms of the balance between Mintzberg's roles – is that desirable? Why or why not? Activity 1. changes in the environment. Think about your current job. technology. appears to be a general philosophy rather than a defined approach. careful analysis of key variables is vital: for example the way organisational size. Managers can be either reactive.Faculty of Business. that is adapting and responding to situations as they arise. Activities Note: The following activities are optional. that is. Which metaphor seemed to be the most 'natural' for you as a way of describing your organisation? Which seemed to be the most difficult? Why do you think this is so? (Consider your own place within the organisation as much as organisational factors when thinking about this issue. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 15 • • • • slow evaluation and promotion implicit. They are designed to help you develop your understanding of the various topics in this Course. formal measures moderately specialised careers holistic concern. Is this balance appropriate in relation to the time you are spending on each component? (You might also want to consider here the targets you need to meet to achieve promotion or a satisfactory performance rating in your job. including family. Thinking about organisations and management Describe an organisation of your choosing as if it were a machine. anticipating future opportunities or problems and taking steps to influence the situation to the advantage of their organisations. There is a recognition that there are no universal principles and always more than one way to achieve the same goal. Nevertheless. or pro-active.2 Analyse your job in terms of Mintzberg's managerial roles Activity 1. What are the prescribed and discretionary work elements of your job? You might like to use a pie chart to describe the relative balance of these components. as if it were an organism.) Graduate Studies Program . and the characteristics and needs of human resources are affecting the relationship between the organisation and its environment. informal control with explicit.3 Analyse the prescribed and discretionary components of your job.) What insights do you gain from viewing the organisation from multiple perspectives? Activity 1.

Perhaps. in particular if these reward systems are in line with Luthans et al’s suggestions. Is Fayol's formulation still of value to managers now. what level of contraction do you use when giving instructions or setting targets for people who report to you? What level is (mostly) used when instructions are given to you? Discuss the effects in each case. from the Readings. consider the ways the career path of your boss has changed since he or she entered the workforce.5 Analyse how the balance of skills you need in your job has changed Activity 1. overlooking the inevitable conflict that exists between management and labour. Can you observe a change in the balance of the skills you (or your boss) have applied which corresponds to the divisions that these authors described? Are there specific skills you will need to develop as your career progresses? Do you miss the opportunity to do tasks that were important at an earlier level but which you have needed to leave behind? Compare the findings of the work by Mintzberg. despite the attempts by Mintzberg and others to contest it? The work of Luthans et al. if you have not yet moved into management. It is a narrow/belittling view which tries to reduce people to the status of machines It is idealistic. Leading and Controlling' description of management which we owe to Fayol. Analysing your organisation (or through discussions with people who work in another organisation).4 What level of contraction do you use? If you are already operating as a manager. Compare the roles or activities of managers that each identifies. the textbook and other summary material in this Module. Then compare your results to the original 'Planning.8 Define your attitude to scientific management • • • It makes good sense. on the contrary. build up a profile of cases of people who fit the 'successful' and the 'effective' categories identified by Luthans et al. and do you now wish to change something about the current arrangements in either direction? If you are already occupying a management role in your organisation. Luthans et al. especially one at middle or senior management. Check within the organisation to see what it is doing to reward these types of managers. Kanter. As a further alternative. they provide evidence to challenge his suggestions. Master of Business Administration . as we noted. Organising.7 Does your organisation reflect the distinction between 'successful' and 'effective' managers? Founding views of management Which of the following best defines your approach to scientific management? Activity 1. Kotter. and Kraut et al. has the advantage that it identifies differences between successful and effective managers. Are there any effects you hadn't anticipated as a result of the level of contraction. use the categorisations of Katz or Burgoyne and Stewart to consider the way your job has altered since you joined (or started) your organisation. Activity 1.6 Compare the theorists findings about managerial work Activity 1. showing the ones the authors have identified in common and which seem to be unique.Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 16 Activity 1. Alternatively – if you have worked in many organisations – you may wish to carry out the analysis from the start of your career.

It is an authoritarian view that is inappropriate in today's work environment.9 Re-evaluate Fayol's principles.Faculty of Business. do you also see any evidence of the resilience of scientific management within your organisation? How might you reconcile the two views? How applicable do you believe Fayol's 14 principles of management are in today's organisations? Consider four of the principles and discuss how they are being applied in your own organisation. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 17 • • It is simplistic to assume the extra money will motivate people to work harder. What accounts for any similarities or differences you observe from the strict formulation of the principles? How would you change – or perhaps even reinstate – the application of Fayol's ideas in your organisation? Activity 1. Graduate Studies Program . If your choice suggests that you believe scientific management ought to be superseded.

and how your style of leadership can be improved.3 Leadership. teams and leadership' continues the theme of 'what is managed' but on a smaller scale by examining the nature of groups and the subtle distinctions between groups and teams. Learning outcomes After successfully completing this Module.Managing Organisational Behaviour MGT701 Module 2 Groups. Finally. Topics Topics covered in this Module are: 2. we examine the complex area of leadership: theories about it. (which seem to multiply despite the vast number of theories and concepts that already exist).1 The nature of groups and teams 2. and you are invited to examine the groups you are part of to find out how their functioning can be improved. and substitutes for it (since we know that some jobs get done without any clear leader seeing that it happens). and working out how their functioning can be improved an understanding of the theories surrounding the nature of leadership and what they have in common gained some experience at analysing leadership situations and improving your own capacities as leader. and the mechanisms by which they do it gained some experience at analysing a number of the groups and teams you are involved in. teams and leadership Page 18 Module 2: Groups. both formal and informal. you should have: • • • • • • an understanding of the stages involved in forming a group. Finally we look at some practical work on the kind of leader you are. Groups and teams are seen to present both advantages and problems for managers as well as the people in them. teams and leadership Overview 'Groups. as well as some of the controversy surrounding this topic an understanding of the nature of groups. Master of Business Administration . and what distinguishes groups from teams an understanding of the kinds of needs groups fulfil.2 Team roles 2.

A 1989. Carnegie Press. Fox. Organisational change by choice. 60–74. Graduate School of Management. 20. 4. pp. 'A partial test of Janis's groupthink model: effects of group cohesiveness and leader behaviour on defective decision making'. British Journal of Social Psychology. working paper no. 2. leadership and men H. in Journal of Management. CR 1985. RM 1983. EH 1980. Kanter. Journal of Applied Behavioural Sciences. Katz. McGraw-Hill. Sydney. Macmillan. Heinemann. Organisational psychology. The tyranny of the team. Englewood Cliffs NJ. New York. eds WM Ainsworth & QF Willis. Management teams: why they succeed of fail. 233– 253. London. pp. Schein. Images of organisation. Graduate Studies Program . RCS 1985. 205–209. 5–17. Perrin. 190–204. in People and organisations G Salaman & K Thompson eds. Dalton. R 1987. FE 1973. Sage. 'Decollectivization and recollectivization in the workplace: the impact of technology on informal work groups and work culture'. vol. Longman. Trahair. pp. 23. D 1981. Guetzkow ed. G 1986. A 1985. 'The work group and its vicissitudes in social and industrial psychology'. vol. Sinclair. Wiley. Economic and Industrial Democracy. 2nd edn. 455–482. vol. University of Melbourne. Morgan. pp. New York. Bramel. in Groups. Boston. SE 1951. Unwin. 'Effects of group pressure upon the modifications and distortion of judgement'. Belbin. Hutchinson. vol. The change masters. Melbourne.Faculty of Business. pp. pp. pp. Leana. RM 1981. GJ 1981. Men who manage. 3rd edn. M 1959. 'Independence or conformity in the Asch experiments as a reflection of cultural and situational factors'. S & Spencer C 1981.. London. Man mismanagement. 11. 'Integrative and adaptive uses of autonomy: worker autonomy in factories'. 177–190. Prentice Hall. Dunphy.. D & Friend. in Australian organisational behaviour: readings. Beverly Hills CA. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 19 Learning resources Asch. 'The workers' judgement and informal organization'. London. Grzyb.

1 Definitions of groups: two caveats Robbins. teams and leadership Page 20 2. managers have generally been ambivalent towards groups. Traditionally. so be Master of Business Administration . namely that group output is a result merely of the summation of individuals' efforts whereas teams generate positive synergy through coordinated effort. This is because managerial work usually involves coordinating participants on complex tasks that are best carried out interdependently – more simply: 'getting things done through other people'.Managing Organisational Behaviour MGT701 Module 2 Groups. and even of the synergies – another term for enhanced outputs – which can be generated. McGregor and even Weber. In the first part of this Module.1. Introduction One of the notable consequences of the human relations movement discussed in 'Introductory topics'. It will be clear from an early point that. groups were a fact of life. and the distinction it makes between the two is a useful one. 2. we will examine a range of aspects of the significance of groups and teams for an understanding of their behaviour and effects in organisations. some of the roles that individuals assume within teams overlap with our consideration of management roles in 'Introductory topics'. This contrasted with the Scientific Management view of groups which was that they undermined productivity by determining that individual efficiency fell to the level of the least efficient worker in the group. we will consider the even more vexed question of the nature of leadership. Researchers such as Likert continued the human relations tradition in arguing that the primary task of management was to ensure that groups functioned in ways which supported rather than undermined management objectives. For example. the function of socialisation and establishment of 'norms' that we will see to be one of the functions of groups. However it is a good idea to remember that individual writers vary in their use of the terms 'group' and 'team'. Managers are aware of the importance of interdependent cooperative action. central to psychological well-being because they reflect a basic human need for social bonds. To Mayo. was the greater – and more positive – attention given to groups in management and organisation theory. perhaps even more than in some other Modules. in the second part of the Module. is particularly comprehensive in its coverage of groups and teams. As a further example. and despite the prominence given nowadays to teamwork. is also closely linked to the issue of organisational culture. Then. but they are also wary of the influence that groups can have over their members (Bramel & Friend. Group assessment and reward issues will be dealt with further under Human Resource Management topics in 'Human Resource Management and Conflict Negotiation'. the material considered under 'Groups and teams' necessarily overlaps with issues considered elsewhere. 1987). our textbook.1 The nature of groups and teams In learning about the place of groups and teams in organisations and how best to manage them we will examine the following issues: • • • functions of formal and informal groups characteristics of groups creating an effective team.

For example. In a welcome development. and discusses the effects of various external and internal (structural) influences on the group. We may link this more overtly to the notion of formal and informal groups that the textbook addresses briefly. Schein (1980) defines the formal functions of groups as follows: • a means of working on a complex task that cannot easily be undertaken by an individual or by a number of independent individuals. Chapters 8 and 9. it is important to note that. the term 'group' tends to be applied to a range of situations where the existence of a sense of belonging or of collective identity must be speculation at best. in practice. The section on the punctuated equilibrium model of group development (see Robbins' textbook) provides a more realistic model for the less smooth and predictable path that groups traverse to achieve their goals.2 Functions of formal and informal groups The textbook's Table 8.Faculty of Business. as well as different types of groups. particularly if the group includes members from the various parts to be coordinated as a problem-solving mechanism. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 21 aware as you read that disparities among various authors' implied or overt definitions are likely. and also frequently a sense of common purpose. which are frequently presented in an uncritical way. any evidence of the existence of the group characteristics the textbook describes. if the issue is complex. and in the absence of. that is. Essentially. Such collectivities may be labelled groups before. where interdependence is important a means of generating new ideas where important information is widely dispersed or where mutual stimulation enhances creativity a liaison or coordination device. Read Robbins' textbook.1 illustrates the reasons people join groups. Thus the textbook defines groups. • • • • • Graduate Studies Program . and collectivities to which the label 'group' has been applied.1. So the study of groups in organisations is likely to be the study of: • • the collectivities that conform to the definition of 'group’. 2. the textbook also provides a counterbalance to the ideas of group formation. The base being used is essentially social psychology – a discipline that is both theoretically and methodologically strong. some production processes are organised around collectivities that have been formed by management as the basic unit for production. Despite this. the textbook's definitions of groups have a central notion of belonging. requiring inputs from a range of perspectives and/or with ramifications for the organisation as a whole a means to facilitate the implementation of decisions where diverse parts of the organisation are involved and can affect the success of the change a means of socialisation whereby a common message can be given and a common perspective reinforced through group pressure. so that – to invoke the classic contrast – groups are differentiated from a mere collection of individuals waiting for a bus. Textbook The textbook provides classic and fairly standard material on groups.

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The informal functions are: • • • • • a means of fulfilling social needs, that is, needs for friendship and social interaction a means of developing, enhancing and confirming a sense of identity and selfesteem a means of establishing and testing beliefs and understandings. Through shared experiences and shared discussions, shared meanings are developed a means of reducing feelings of insecurity, anxiety and powerlessness as a problem-solving, task-accomplishing mechanism for informal objectives.

These separate lists help make it clear that formal groups such as committees or departments may be defined as such by edict, yet it is often unclear whether they really reflect the internalised common orientations of employees within the group. Informal groups, by contrast, are often applied from the outside – as with the sociometry analysis example in the textbook – as a result of observing group-like behaviour.

2.1.3 Other arguments concerning the formation of informal groups
While the explanation above about supplying personal, mostly social, needs is the most commonly offered reason for the formation of informal groups, there are other explanations. They can be grouped as follows:

Political/economic reasons
Trahair (1985), Grzyb (1981) and Fox (1985) have analysed work situations where informal groups seem to be aimed at increasing worker control over their work, forming bonds which enhance acts of solidarity (as in industrial action) or defending and advancing job interests. Accordingly, such groups often serve a 'counter-organisational function’, as the basis for an alternative system of power and influence which can act to subvert the formal goals of the organisation. Managers, in turn, may attempt to prevent such groups forming through their arrangements of the workplace layout or by rotating the leaders of such groups.

Structural explanations
Katz (1973), Dalton (1959) both also dispute the social needs interpretation, arguing that informal groups develop because formal structure is never absolute in terms of its determination of the actions of workers. That is, informal groups may fill in the gaps in formal practices in a way that supports the general intentions of management, rather than being a form of resistance to them. Dalton argues that informal groups contribute to organisational effectiveness.

2.1.4 Characteristics of groups
There are several dimensions by which groups can be described. Of the many that the textbook discusses, we will consider four in particular: roles, norms, conformity and cohesiveness. Interestingly, much of the research on groups has focussed not so much on what makes groups function more effectively, but on what can go wrong with groups

Master of Business Administration

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(Janis 1988). The phenomenon of groupthink, for example, which arises from a combination of the effects of norms, the pressure to conform, and group cohesiveness, has received a great deal of attention. In considering these four dimensions, we will consider not only the problems that arise from one or more of these characteristics of groups, but the ways in which they help groups to endure.

Our earlier discussion of the differentiation of roles in management can be extended to a consideration of different roles within the group. Group activity requires both taskfocussed and maintenance-focussed actions. The former directly address what is needed to carry out the work task of the group; the latter attends to the maintenance of interpersonal relations and cohesion within the group. Dunphy (1981) has provided a summary of these task and maintenance roles, plus those often seen as disruptive:

Role function
A TASK Initiator: Most active in setting objectives and initiating action Expert: Has and provides specialist advice Evaluator: Assesses progress; analyses problems Implementer: Focuses on implementation details, timing and methods Procedural technician: Emphasises the importance of rules and procedures and precedent B MAINTENANCE Exemplar: Spokesperson/liaison/negotiation for the group Encourager: Praises; supports; empathises Confronter: Brings conflicts out into the open Harmoniser: Mediates; conciliates Tension reliever: Reduces formality; introduces humour C DISRUPTIVE Dominator: Seeks to dominate discussion and to impose own views/objectives Absentee: Withdrawn, uninvolved Aggressor: Attacks others; ridicules, hostile, sarcastic Smotherer: Compulsively nice; stifles attention to conflict Recognition-seeker: Boastful; highlights own achievement Confessor: Reveals personal fears, failings; uses group as a therapy session
Source: Adapted from Dunphy (1981)

Graduate Studies Program

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As Robbins points out, all groups have norms, that is expectations of appropriate behaviour for group members. But only those norms which ensure the group's survival, increase the predictability of group members' behaviours, avoid potential embarrassment, and express the central values of the group, tend to be regularly enforced.

Conformity is an issue closely linked to the issue of norms. Read carefully the account in the textbook of the Zimbardo experiment carried out at Stanford University. There is a further experiment you may have heard of: the Asch study in 1951 that also demonstrated the impact of conformity pressures on group members. It is notable that these pressures to conformity existed despite the fact that these 'groups' were hardly groups at all in the strict sense of the word. That is, they were a collection of individuals thrown together for the purpose of the experiment, who would have had no opportunity to establish normative ties. The significance of this is that it would be reasonable to assume that such tendencies to conformity would be even greater in many established groups. However, Perrin and Spencer (1981) question the universality of Asch's results. In their replication of Asch's study almost thirty years later using British students, they found an almost total lack of compliance to the unanimous majority. The difference, they argued, could have been due to the fact that Asch's study took place during and in the conformist culture of 1950s America. They comment: Asch's subjects expressed their fear of 'sticking out like a sore thumb', 'being felt sorry for', 'being thought that they had something wrong with them'. The present students, in contrast, felt that to conform to a group majority they believed to be erroneous would make them look 'weak', 'ridiculous' and 'stupid'. It might still be argued that, given the British students feared appearing in an unfavourable light to others, some norms of conformity were still operating. (I have always wondered whether students 30 years or so later hadn't gradually got wind of the point of the experiment!) Nevertheless, it is important to note that the pressures towards conformity are likely within well-established groups, and even those that are less than well established.

The textbook lists a number of contributors to group cohesiveness, and also discusses the consequences of group cohesiveness. As a general rule, it can be concluded that greater cohesiveness leads to: • • • • increased quantity and quality of communication between members greater influence by the group over individual members' behaviour a higher level of job satisfaction of group members improved or reduced performance depending on whether the group norm is for high or low performance.

Master of Business Administration

keeping adverse information from reaching members and the leader in particular.Faculty of Business. which are summarised in the textbook as follows: • • • • 'rationalising away' any resistance to the group's assumptions pressures to conform applied to doubters silence on the part of those who are doubters an illusion of unanimity. is ignored or not even sought.com/ Janis (1971) sets out a number of symptoms of groupthink.com/commstudies/groups/groupthink. that there is no contingency plan for such an event. See also: http://choo. as too evil.html http://www. Group members show interest in information that supports their decision. Effects of Groupthink As a result of Groupthink the group limits its discussion to a rather limited range of alternatives. Little time is spent considering how the decision could be sabotaged in the course of being implemented. and ignore those that do not.html Website http://www. for example. Explanation of Groupthink Janis says that Groupthink is best understood as 'a mutual effort among the group members to maintain self-esteem and emotional equanimity by providing social support to each other. or to seeking solutions to costs that could change the relative merit of alternatives.utoronto. which means. p 43). with little time given to identifying non-obvious gains. in turn. The advice of experts – even within the same organisation – who might have more accurate and useful data. The group fails to reconsider the decision if unanticipated risks or problems are brought to their attention.ca/FIS/Courses/LIS2149/Groupthink. is one of the possible deleterious consequences of working in groups.groupthinkfilm. or the tendency to suppress critical thinking as a result of the concern to retain group unity.fis. He argues that the prime condition for Groupthink is group cohesiveness and that it is reinforced where the group is insulated and where the Graduate Studies Program . corrupt or primitive to be a threat mindguards: some members of the group sometimes act as mindguards.abacon. especially at times when they share responsibility for making vital decisions' (1971. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 25 Groupthink Groupthink. which leads the group to dismiss potential dangers and take great risks. To these we might add: • • • the illusion of invulnerability. a belief in the inherent morality of the group's position the stereotyping of enemy leaders.

Preventing Groupthink Janis (1988) lists the following means of preventing groupthink: • the leader of a policy-forming or decision-making group should assign the role of critical evaluator to each member and encourage expression of objections and doubts leaders should begin by adopting an impartial stance instead of stating preferences at the beginning several groups should work on the same matter. Monitor Evaluator: the person who provides measured and dispassionate analysis of the team's progress. • • • • • • • 2. there are eight necessary functions in a successful team. Plant: the ideas person.2 Team roles Belbin (1981) identified a number of key roles in teams. communicates with and presides over the team and coordinates its efforts to meet external goals and targets. He later qualifies this by noting that it is particularly so where cohesiveness is due to the desire of individuals to be members of a particularly prestigious or socially pleasant group. Shaper: the 'task' leader who. and who will prevent the team from committing itself to a misguided project. then come back together to identify and resolve any differences. According to this formulation. teams and leadership Page 26 leader is promoting his or her preferred solution. arguing that the leadership factor (mentioned above) is the prime determinant rather than cohesiveness. rather than because they want to be part of an effective and competent task-focussed group. May be more concerned with the innovative and exciting aspects of the project than with the feasible and realistic. is more concerned to give shape and urgency to the team's efforts.Managing Organisational Behaviour MGT701 Module 2 Groups. the source of creative input. 3 4 Master of Business Administration . suggestions and proposals. 1 2 Chairperson: the one who unites. Leana (1985) goes further. at least one member should be assigned the role of devil's advocate whenever the issue involves relations with a rival organisation the group should allocate plenty of time to a study of all warning signals from the rival the group should from time to time split into two or more subgroups which meet separately. including some from outside the organisation each member should discuss the group's views with colleagues in their own unit of the organisation the group should invite one or more outside experts to each meeting and encourage them to challenge the group's views whenever a meeting is held at which policy alternatives are discussed. in contrast to the Chairperson who is concerned with the social aspect of a project.

Monitor-Evaluator. Resource Investigator and Shaper: 'outward-looking' functions Company Worker. in The Oganizational Behavior Reader. the distinction between formal and informal groups. Reading 2. 2001. Rubin. Graduate Studies Program . Kolb. ‘Critical Success Factors for Creating Superb Self-Managing Teams’. 2. it is clear that people may occupy more than one role within a team. but people's different personalities mean that they will find some functions easier to fulfil than others. and keeps the team to its predetermined deadlines and standards. complacency. Team Worker and Finisher: 'inward-looking' functions..1 Creating an effective team In this Module so far we have considered what distinguishes groups from a random collection of people in terms of the functions of groups. and working to produce harmony especially in times of stress and pressure. eds J. New Jersey. that of the Expert who has specialist knowledge or expertise (e. & I. D. If someone produces an idea. Resource Investigator: the member of the team who goes outside the group and brings information. Note that Belbin later added a ninth team role. 231242). some specific characteristics of groups and some of the problems and advantages which flow from these characteristics. This person is concerned with what is feasible and logical. In any team of fewer than eight or nine people this would have to be so. Finisher: the person who worries about details and what might go wrong. All the functions are necessary. Plant. Information Technology). The process by which active interventions are made in order to improve the functioning of a group is known as team building. pp. (See Chapter 9. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 27 5 Company Worker: the practical organiser who turns decisions and strategies into defined and manageable tasks that people can actually get on with. It is clear from all this. R. Upper Saddle River. For example. Prentice Hall.Faculty of Business. Team Worker: the person who monitors and attends to the emotional needs of individuals within the team.S. 6 7 8 In Belbin's formulation.1 Wageman.2. The Finisher maintains a permanent sense of urgency. Teambuilding Of course. low morale. ideas and developments back to it. Problems that team building processes aim to eliminate include poor productivity. managers tend not to simply leave the task of making groups effective – creating teams – simply to the inherent characteristics of the group.g. that some of what makes a group effective – some people might say: what makes a group a team – arises from these inherent features of a group. lack of coordination. Belbin classifies the functions as follows: • • Chairperson. The next reading sets out the results of a study into what features of a group can – and are most likely to – act in concert to promote task effectiveness.M. the instinct of the Team Worker is to build on it rather than demolish it. Osland.A.

Dunphy (1981. It involves classifying resources according to whether they are: A) over-utilised B) utilisation is OK C) under-utilised D) not-utilised Resource use is then adjusted accordingly • • • • • • Reading 2. Team building interventions can be tailored to the particular nature of the group and the problems it is facing. These task. Master of Business Administration . R. pp. eds. 'norms are renegotiated and a new contract drawn up’. lack of leadership and lack of commitment. in The Organizational Behavior Reader.A.E.2 Rogers. Given the earlier discussion about the largely informal nature of norms. Prentice Hall. Group process interventions develop and understanding of the roles commonly associated with these functions and an ability to recognise behaviour said to disrupt these general functions. Improving the use of group resources: This strategy is used to improve the effectiveness of resources. Rubin. Reviewing and revising group norms: The objective is to identify and discuss existing group norms in regard to both task and personal objectives and to see whether they should be modified. Kolb. concrete statement of goals which is agreed on by the group and management. and which can then be used as a basis for defining roles and responsibilities and for producing more detailed action plans. Osland. Group problem-solving and decision-making: This approach focusses attention on such matters as the characteristics and the application of an effective problemsolving process. that is. 185-189). & Farson. p 215) lists the following as key intervention strategies: • Goal setting and goal classification: The purpose is to develop a clear. New Jersey. ‘The Meaning of Active Listening’. p 237).M. J. uncertainty as to goals and responsibilities. internal conflicts.Managing Organisational Behaviour MGT701 Module 2 Groups.R.S. the way they typically evolve unconsciously rather than come into existence by fiat. C. 2001. D. According to Dunphy (1981. and how to avoid some of the potential problems associated with group decision-making. (See Chapter 7. teams and leadership Page 28 miscommunication. Understanding and contributing to group process: This type of intervention is based on the idea that groups need to perform two kinds of general function if they are to be effective: task functions directly related to the group's objectives and maintenance functions related to the maintenance of interpersonal relations and commitment within the group. maintenance and disruptive roles have been discussed previously. it is advisable to be sceptical about the notion of planned norms. Role analysis and role classification: This approach focusses on developing and agreement among team members as to how goals are translated into specific roles responsibilities for team members. Upper Saddle River. & I.

Observations of how Japan uses the group are reported in the discussion of corporate social responsibility in U. since they can be very much at variance with established social norms in western countries. and yet the difficulty of making hard and fast rules about this. This book is one of the most widely used and cited. 242-249). but may not be a particularly accurate characterisation of relations between the individuals concerned. the next topic. In the article just cited. 2001. They cover autonomous and semiautonomous work groups. D. Osland. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 29 Do we overvalue teams? Dunphy (1981) provides considerable detail on the nuts and bolts of the techniques associated with team strategies in his book Organisational Change by Choice. with Japanese management practices as a primary example. Nevertheless. a manager may be trying to bring about a unity of purpose that is currently lacking. Together these articles provide a good interpretation of Japanese management practices. Reading 2.S. In fact. the importance of cultural factors in the use of teams. Conclusion The topics covered in the textbook and the readings. it is based on a rather uncritical concept of the group as a team. and is deservedly regarded as a management classic. This can lead to the delegitimisation of differences.M. eds J. Morgan (1986) notes that its usage by managers may reflect their preference about how their groups operate. The remaining readings for this part of the Module are especially useful in expanding upon the special uses of groups and teams.A. ‘Virtual Teams: The New Yay to Work’. & I. in The Organizational Behavior Reader. highlight a major difficulty in examining the topic of the group – the wide range of applications where group issues affect the behaviour and decision-making of managers. As Kanter (1983) points out: 'Declaring people a "team" does not necessarily make them one'. Prentice Hall. by invoking the image of a team. it brings with it considerable ideological baggage. New Jersey. a head-in-the-sand disinclination to confront the reality of the situation. Kanter argues that 'the myth of team' is a counterproductive one. Graduate Studies Program . that is.S. will disappear. and the difficulties in developing and running quality circles. like many other similar texts. and in the analysis of more participatory styles of management. pp. Forming a team does not in itself mean that various differences in perspective and interest.Faculty of Business. reinforces this finding. Upper Saddle River. both in academic and practitioner circles. associated as it is with the idea of cooperation and a common goal. The message is that Japanese management methods need to be adapted carefully when applied in other places. (See Chapter 9. That is. which already exist.3 Lipnack. as a collectivity fundamentally driven by common interest. & Stamps. Kolb. J. Leadership. If anything. and Japanese organisations (Wokutch) and in descriptions of the strategic use of quality circles in this country (McGraw and Dunford). J. The concept of 'team' is a highly evaluative one. Rubin. This myth holds that differences among members do not exist (because they are now a team). but which periodically suffers from dysfunctional practices.

371-381). 2001. political. and it seems reasonable to assume that there are obvious lessons from their stories. Julius Caesar and Churchill become great leaders and why. but many argue quite persuasively for different definitions for both concepts. religious and social leaders. Mohammed. The first difficulty in examining this literature is providing a satisfactory definition of leadership. there are almost as many definitions as researchers in the area. theories of leadership now constitute a vast area of the applied social sciences literature. Kolb. yet it is also probably one of the most frustrating in terms of identifiable practical and reliable applications for managers. D. The textbook provides a comprehensive treatment of the various theories that have emerged about leadership. New Jersey. As the textbook points out. in The Organizational Behavior Reader.4 Goleman. There are also debates about the similarities and differences between leadership and management. (See Chapter 13. eds J. Typically both terms are used interchangeably. & I. Yet we have no difficulty in finding stories about great military.M.A. Osland. pp. D. Prentice Hall. Why did Gandhi. Chapters 11 and 12. teams and leadership Page 30 2. ‘What Makes a Leader?’. in many cases. Rubin. Read Robbins' textbook.Managing Organisational Behaviour MGT701 Module 2 Groups. like Adolf Hitler rise to positions of power? Some of the broad areas in which researchers have worked in an effort to answer these questions have been: • • • • • personality traits abilities behaviours sources and uses of power features of the situation. and different theorists provide various interpretations of leadership and leadership effectiveness. Master of Business Administration .S. We will also examine the following issues: • • • core definition and elements changes in emphasis in leadership approaches points of convergence across leadership theories. leadership is one of the most researched topics in the management literature. Upper Saddle River.3 Leadership Introduction As the textbook points out. Not surprisingly. did they later lose their followers' support? How did some undistinguished people. Textbook Reading 2.

including tact. network building and as a representative of their work groups. and how do leaders inspire organisational members during periods of change. In addition. superiors and outsiders. Despite the disparity in points of detail. open and helpful to their staffs needs. Graduate Studies Program . superiors and outsiders. Favourable leader-subordinate relations are more likely for leaders who are friendly. empathy for others and good listening and counselling skills. They concern: • • • • • leader-subordinate relations relationships with peers and superiors the importance of information the importance of managerial decision-making. Research on management activities (see 'Introductory topics') shows a high incidence of interaction by leaders with peers. several traits and skills are predictive of managerial success in dealing with peers. These will now be considered in turn. Many of these are the human resource management skills we will review in Module 3. Leadership generally: • • • is a group phenomenon involves influence by a leader over followers this leader influences group members to comply with his or her requests willingly 2.3.2 Points of convergence across leadership theories Theories of leadership that have considered traits. and take actions to advance the careers of this group. Leaders especially provide an important source of influence over the effort and commitment of staff. social insight. style. These skills include tact. the situation or other factors have resulted in numerous answers to questions such as who becomes a leader. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 31 2.Faculty of Business. several significant points of convergence emerge. Also. charm and a positive attitude to authoritative figures. Relationships with peers and superiors In this area. and the role of leaders as motivators and as sources of influence. They achieve high levels of mutual trust and loyalty. several traits and skills are more predictive of being an effective leader.3. what is the behaviour of effective leaders. Much of their time is spent monitoring events. evidence across the various theories indicates that leaders without 'clout' to represent their staff lose status and influence with staff. Leader-subordinate relations Effective leaders establish cooperative relationships with their staff.1 Core definitional elements The definitions of leadership that are made explicitly or implicitly in the theories discussed in the textbook do appear to have at least some core elements.

Prentice Hall. Leaders as motivators and sources of influence The final area about which leadership theories provide quite a comprehensive picture is the importance of motivating and influencing others. in The Organizational Behavior Reader. different cultural values and the influence of organisational culture. Rather – as we saw in 'Introductory topics' – managerial decision-making tends to be confused. staff levels of education. C. risk and frustration for staff associated with tasks. Managerial decision-making A fourth area of convergence is that of managerial decision-making. Managers. teams and leadership Page 32 The Importance of information The third area of convergence across theoretical frameworks about leadership shows that leaders exert control over information downward. Reading 2. being models of exemplary behaviour and being quite explicit in their use of recognition and rewards for desirable behaviour among subordinates. and they seem less concerned about protecting their own power base. Contingency theories of leadership reveal that leaders are judged more highly if they use participative processes in their decisionmaking. disorderly.P. Related readings on the use of power are presented in 'Organisational culture and power and politics'.A. and to define realities and interpret events in ways that meet their personal needs and ambitions. including the level of difficulty. ‘SuperLeadership: Beyond the Myth of Heroic Leadership’. & I. Face-to-face and oral communication dominates their daily activities. Successful decision-making assists leaders in gaining and retaining power.C. In terms of the behaviour. however. At the same time. This control allows leaders to exaggerate their successes. 2001. trait research reveals that leaders with high levels of self-confidence and high needs for power make more influence attempts upon staff. Kolb. hide their mistakes. and covers domains from high levels of strategic importance to the highly trivial. Rubin. 383-397). eds J. and having an orientation towards efficiency and decisiveness are more likely to take the initiative about decisions and to take moderate levels of risks. analysers and disseminators. emotional rather than rational. Master of Business Administration . New Jersey. Managers with the traits of being proactive. Upper Saddle River. goals and evaluate results via feedback from their staff. seldom make important decisions as discrete actions at a point in time. D. managers are information gatherers. & Sims. pp. (See Chapter 13. Osland.5 Manz. laterally and upward in the organisation. see related readings and other material on decision-making in 'Control and decision-making'. Finally. leaders are well aware of contingencies that influence levels of motivation.S. Successful leaders make skilful use of reference and expert power (see further material in 'Organisational culture and power and politics'). and effective managers communicate clear expectations. For more on this topic. Jr. H. Motivating behaviours by leaders include inspiring commitment to new objectives and strategies.M.Managing Organisational Behaviour MGT701 Module 2 Groups. Managers with a high regard for others are more likely to encourage staff participation. Power-sharing strategies improve their success via increased staff commitment.

4 Are roles in conflict? Activity 2. etc). or did so in the past. and then discuss ways in which groupthink could have been averted. Activity 2. whether positively or otherwise. From these interviews. identify the norms and roles that apply. What behaviour does each require? Are any of these roles in conflict? If so. which of the three basic sets of explanations – social. Again. political/economic or structural – seems to you have the most value? Or do you see some value in several of the explanations? Consider a workgroup of which you are a member or which you know well through interacting with it in some other way. including the disruptive ones? Following Robbins's discussion of group roles (chapter entitled 'Foundations of Group Behaviour' and the discussion roles in the section of the Section headed 'Group Structure'). identify some examples of groupthink in your workplace and in Australian public life. Consider the same groups as in the first activity. are there some functions which overlap. They are designed to help you develop your understanding of the various topics in this Module. consider which – if any – of your social needs you feel it fulfils. identify five roles that you play (eg parent. Identify specific examples from political and organisational leaders. manager. Does the group simultaneously fulfil any official need? In the light of the preceding discussion. Considering the issues of groupthink and the main symptoms given in the textbook and in the preceding discussion. friend. Activity 2. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 33 Activities Note: The following activities are optional. For each group. Do you find any support for either or both of the political/economic and structural explanations in terms of the reasons you belong to these groups? On the basis of your experience. The nature of groups and teams Think of at least three separate groups to which you belong. Activity 2. The group should be one which works together on a reasonably regular basis.3 Analyse the functions of your work group. Are there some overlaps in terms of the functions some people fulfil? Compare this analysis of group functions to the managerial roles outlined by Mintzberg in 'Introductory topics'.1 Analyse your groups – Part 1 Activity 2. consider the reasons for any overlap (or lack of overlap) in each case.6 Identify instances of Groupthink. Analyse its functioning in terms of the task.2 Analyse your groups – Part 2. maintenance and disruptive functions that Dunphy (1981) sets out above.5 Analyse your work group's norms. Activity 2. the functions of the group and the issues that influence the effectiveness of the group. Graduate Studies Program . how do you resolve these conflicts? Talk to the members of a work group you are familiar with – either one to which you belong or another one.Faculty of Business. Include some at work and some elsewhere.

and the decision-making climate of the organisation. Develop an action plan to improve your leadership and decisionmaking abilities. What qualities does this group of managers have in common? What behaviours did they fail to demonstrate? Based upon your analysis. Think about the managers you have encountered who have impressed you with their abilities as leaders and as decision-makers.Managing Organisational Behaviour MGT701 Module 2 Groups.7 Does empowerment work? Activity 2. Using Conger's (1991) list. Were the strategies successful? Why or why not? Effective leadership involves a complex interaction between the situation the person. analyse examples of the use of at least three of these strategies in an organisation you know as a member or have learned about by talking to others or through your general reading. and those that require improvement. Managers must make decisions effectively about the kinds of leadership qualities as expressed by Bass for those decisions to be effectively implemented. have failed miserably as managers. n your opinion. • Master of Business Administration . Once your have completed your list. review the list to determine which skills you have already demonstrated effectively. Activity 2. To what extent did these leaders: • • • • • • • • • • Show evidence of charisma and create enthusiasm? Delegate tasks and activities effectively? Possess effective communication skills? Organise effectively? Show evidence of a developmental attitude towards the people who report to them? Set high levels of intellectual standards to effectively stimulate subordinates? Encourage subordinate participation in decisions that directly affected them? Use the root or branch method of decision-making as Vroom and Yetton describe? Exhibit transformational behaviours and qualities? Think about the managers you have observed who. identify a list of skills that are necessary for effective leadership and decision-making abilities. teams and leadership Page 34 Leadership The art of empowering the people who report to you involves several specific management practices.8 Take action to improve your leadership style.

which are based on one. After all. the effectiveness of any specific practice is likely only to be as good as the theory on which it is based.1 Motivation 3. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 35 Module 3: Motivation and persuasion Overview ‘Motivation and persuasion’ examines the theories of motivation which have sought to enlighten managers about 'what works' in terms of encouraging people to do the best possible job. and in some detail work through the fundamental principles underlying persuasion and strategies of influence.2 Persuasion Learning outcomes After successfully completing this Module you should be able to: • • explain various theories of motivation: the differences between them and the strengths and weaknesses of each describe an entirely different way of thinking about the meaning of work. and its relationship to other schools of thought about what managers need to do to get the best out of their workforce explain the ways specific motivation theories have informed a number of human resource management practices. we examine the use of persuasion in both society in general and organizations specifically. discuss why we should learn the basics of persuasion. In the latter part of the Module. including their strengths and limitations. or several of the theories of motivation just mentioned.Faculty of Business. • • • • Graduate Studies Program . We’ll examine the difference between persuasion and propaganda. the orientations to work approach. we move to an examination of some specific human resource management practices. and theories supporting them understand the fundamental principles of persuasion and influence and how they can be used in the modern workplace. Topics Topics covered in this Module are: 3. such as performance appraisal and compensation identify other contemporary HRM issues. From discussing these basic theories. gain some experience in the practice of persuasion.

BB 1959. Dufty. & Snyderman. Power: the inner experience. John Wiley and Sons. Hofstede. UK. vol.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 36 Learning resources Adler. EA & Latham. F & Becker. OH. Academy of Management Review. AR 1989. Bechofer. McClelland. Carrell. Adler. Academic Press. JS 1965. 'Equity theory: the recent literature. Existence. DC & Burnham. New York. 202–210. vol. Prentice-Hall. Work. International dimensions of organizational behavior. Aungles. relatedness and growth. 1980. NJ 1997. Mausner. D. 'Motivation. Cambridge University Press. A 1973. Industrial relations: a social critique of pluralist ideology’. JA. ‘Towards a theory of task motivation and incentives’. London. MR & Dittrich. Lockwood. ed. 2. F. in Research in organisational behaviour. pp. Goal setting: a motivational technique that works. Dynamics of industrial relations in Australia. vol. McGraw-Hill. NF & Fells. organisation and change. Penguin. The achieving society. pp. Ohio University Press. 9 eds LL Cummings & BM Staw. pp. New York. 42–63. Lee. Herzberg. pp. 54. Harvard Business Review. J 1968. pp. Locke. Locke. Cambridge. Beverly Hills. 9. DH 1976. Handy. Alderfer. GP 1984. Understanding organisations. 'Motivation theory reconsidered’. Athens OH. Van Nostrand. Cincinnati. vol. Irvington. McClelland. CP 1972. Work and the nature of man. 100–110. SB & Parker. ‘Injustice in social exchange’. 1–38. Herzberg. 'Power is the great motivator’. Halstead Press. 157–189. The gold and the garbage in management theories and prescriptions. Englewood Cliffs. (see page 73 ) Landy. Culture's consequences: international differences in work-related values. New York. L Berkowitz. 3rd ed. vol. Princeton. NJ. Sydney. DC 1975. J Child. Lambert. Greenwich CT. in Man and organisation. EA 1980. F 1968. Southwestern. Organisational Behaviour and Human Performance. G 1980b. JH. ed. Fox. Harmondsworth. Charles B 1985. JE 1978. Goldthorpe. DC 1961. F & Platt. WS 1987. McClelland. Hofstede. JAI Press. The motivation to work. Sage. vol. Allen & Unwin. Free Press. Master of Business Administration . B. 185–233. CA. The affluent worker: industrial attitudes and behaviour. New York. G 1980a. leadership and organisations: do American theories apply abroad?' Organisational Dynamics. Crosby Lockwood Staples. pp. New York. Field Sales Performance Appraisal. methodological considerations and new directions’. RE 1989. in Advances in experimental social psychology. Sydney. 3. 3.

Schein. Vecchio. N 1986. Boston. Randall S & Jackson. Organisational behaviour. Pratkanis. Napier. Sage. 889–935. Rand McNally. 'Organisational conflict: concepts and models’. 1954). 22. Academy of Management Executive. in Handbook of industrial and organisational psychology. E 2000. MA. Dryden Press. 'Participation. London. 12. Miner. Attitudes of business executives and union leaders to industrial relations: twenty-three years later’. 727–753. vol. CA. pp. E 1978. 'The workers' revolution on the top floor’. Chicago. Academy of Management Journal. ed. Reading. pp. Hinsdale IL. Dryden Press. pp. Postman. Theories of organisational behaviour. Spillane. incentives and salesforce performance' Pfeffer. New York. Career dynamics. Thomas. Watson. Pondy. Graduate Studies Program . work and industry. Morgan. Freeman. AH 1987. no 4. LR 1967. Katherine & Monge. Schuler. TJ 1986. Routledge and Kegan Paul. Amusing ourselves to death. A & Aronson. in Sydney Morning Herald Good Weekend. RP 1988. 'Linking competitive strategies with human resource management practices'. vol. D 1989. Harper and Row. Beverly Hills. Management organisation and employment strategy. TJ 1980. G 1986. 6 May. Miller. Addison Wesley. R 1980. 3rd edn (1st edn. Journal of Industrial Relations. J 1982. Susan E 1987. 'Motivation. vol. 'Conflict and conflict management’. satisfaction and productivity: a meta-analytic review'. Peter R 1986. New York. Maslow. vol. no 3. 207–219. K 1976. Pitman.Faculty of Business. Administrative Science Quarterly. Sociology. Organisation and organisational theory. MD Dunce. London. JB 1980. Motivation and personality. Age Of Propaganda. pp. 296–320. Watson. pp. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 37 Macken. Routledge and Kegan Paul. Images of organisation. 1. London: Heinemann. Chicago. 317– 325. 29.

we touched on some early approaches to motivation. The two theories that you have met briefly in 'Introductory topics'.1 Motivation In this topic we will examine the following issues: • • • • • • theories of motivation Theory X and Theory Y process theories orientation to work approaches applications of motivation theories to human resource management other HRM issues. Textbook 3.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 38 3.1 Theories of motivation Content theories Motivation theories are generally divided into two types: • • those that focus on the idea that people have a core set of basic needs which provide the motive force for their actions (content theories). Maslow's hierarchy of needs and McGregor's Theory X and Theory Y. particularly as they relate to some specific aspects of human resource management: job design. The reason for linking these issues is that beliefs about what motivates people directly influence a variety of management practices. You may want Master of Business Administration . and those that focus on the cognitive processes which explain how people make decisions as to how to act. belong to the first type. especially the ideas of Maslow (the 'hierarchy of needs') and McGregor (Theory X and Theory Y). particularly career development issues. management by objectives (MBO) and compensation (pay) management. Subsequently. Robbins' textbook. Don't feel that this is the end of possible explorations within the field of HRM! This is a vast area which is changing rapidly.1. so an understanding of both the theories and the specific practices is enhanced by dealing with the two together. but you may well want to take a number of issues further. Introduction In 'Introductory topics' in the context of the Human Relations' movement. especially with new legislation such as antidiscrimination legislation and changes to dismissal laws. This Module introduces you to the topic with particular reference to motivation theory. personnel selection and performance appraisal. Chapters 6 and 7. we will deal with some other issues in the area of HRM. In the first section of this Module we will return to ideas about motivation.

Miner. arguing that they make 'grandiose claims and vast generalisations’. Maslow's theory with its intuitive logic has achieved great popularity among managers – even if its proposals have not been borne out by hard research. In brief. Additional reading For those who would like to explore further the criticisms of Maslow's theory. JB 1980. which basically amount to saying that the theory has been misunderstood as indicating a simple rather than a complex relationship between needs and behaviour. 1987. find and read one or more of the following authors and their comments on Maslow: Aungles. Watson. Routledge and Kegan Paul. work and history. organisations and change. Watson (1986) in the article mentioned above. Specifically. Theory X and theory Y These contrasting approaches to motivation that were developed by McGregor were also discussed briefly in Module 1. Sociology. 27–28). Despite this. pp. as the textbook notes. there is a lack of evidence that actions consistent with Theory Y assumptions lead to more motivated workers. Dryden Press. We said in 'Introductory topics' that there had been some important qualifications to this theory and these are outlined in the textbook. such as habit and conditioning. Theories of organisation behaviour. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 39 to return to 'Introductory topics' to refresh your memory of the basic ideas in these two theories. Sydney. academy of management executive. It is important to note that Maslow himself was the author of these qualifications. organisational effectiveness and individual satisfaction would both gain from the application of practices based on this theory. AR 1989. However Maslow came to believe that management practices provided practical application of his ideas. also discusses the inadequacies of McGregor's theories. 'most members of our society who are normal are partially satisfied in all their basic needs and partially unsatisfied in all their basic needs at the same time' (Maslow. This is also despite the fact that Maslow's was a general theory of motivation with no specific attention given to motivation within work organisations. SB and Parker. McGregor wanted managers to discover the way both employees and the organisation stood to benefit from a style of management consistent with Theory Y assumptions. Maslow (1987) pointed out that: • • • needs may exist but not necessarily be acted on any given behaviour may be determined by several or all of the basic needs. In fact. London. However Watson also argues that inviting manages to think Graduate Studies Program . Allen and Unwin. and there are many determinants of behaviour other than needs and desires. Hisdale IL.Faculty of Business. However. as the textbook points out. He believed that people operated at their optimal level when organisations developed practices that recognised the multidimensional nature of human motivation and that such practices would mutually benefit workers and management. TJ 1986. Work.

but individuals vary greatly in how developed such needs are above this level. because the desire to be liked may override the necessity for important decisions to be made. Alderfer argues that if an individual is not able to satisfy needs at a particular level this frustration leads to regression. McClelland. The need for affiliation (nAff) is the need to have close.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 40 about the behavioural assumptions they make in their work is in itself a useful thing. although it is power of the social – not person – nature which has been found to correlated with successful management (McClelland and Burnham. He argued that high-performing managers rated highly on achievement needs. management objectives for the organisation. Upper Saddle River. and a preference for consultative practices. a return to a focus on further satisfying needs at a lower level (the frustration-regression effect). There is regression from a more abstract (and therefore uncertain and ambiguous) higher level to a more concrete lower level. D. The need for power (nPow) is the need to influence. as Landy and Becker note. McClelland was especially interested in the connection between these needs and management performance. for affiliation and for power (McClelland et al. McClelland sees the degree of development of these motives as dependent on influences felt during childhood socialisation. D. 1976). for example. pp. relatedness and growth. However. 94-96). with personal gain the driving force. liking problem-solving and getting feedback on performance. He also believes that the achievement motive could and Master of Business Administration .C. in The Organizational Behavior Reader. a preparedness to consult and discuss. 1987). such individuals would sometimes fail to attend to the interpersonal aspects of managing. McClelland considers all people to have these needs. New Jersey. friendly relations with other people and is associated with an ability to empathise with opposing views. David McClelland's approach to motivation is based on the view that people have three needs: for achievement. These needs are arranged in a hierarchy as in the Maslow model but the relationship between the levels is more complex. or it may be based on seeking to improve the performance of staff and. 1953. High nAff without a reasonable level of nAch and nPow is not likely to produce a successful manager. A reasonably high need for power was also deemed to be important for managers (McClelland and Boyatzis. ‘The Urge to Achieve’. 2001. Osland. ERG theory Clayton Alderfer (1972) provides a revision of Maslow's needs-based theory of motivation in which the basic needs are reduced to three: existence. That is. 1975). 1967). This provides a rationale for the frustration-regression effect (Landy and Becker. Kolb. ERG theory has not received much more empirical support than Maslow's original foundation. although without at least a moderate level of affiliation needs. The need for achievement (nAch) is indicated by such things as liking to set goals and having responsibility for reaching them. at least at a minor level. This may be self-serving. even if it has led to simplistic Theory X–Theory Y assumptions.A. hence ERG. Prentice Hall. from a more to a less cognitively demanding task. 1961.M. with it. (See Chapter 4. eds J.S. Rather than there being a one-way progression up the hierarchy as needs are satisfied. McClelland on achievement.1 McClelland. & I. affiliation and motivation Reading 3. Rubin..

salary. etc. The textbook's Figure 6. Given that these factors do not line up with each other (that is. The criticisms tend to be of two kinds: that Herzberg's research was methodologically flawed. According to the study. Graduate Studies Program . Herzberg (1959) labelled the factors causing dissatisfaction 'hygiene' factors. job satisfaction depended on five to six factors. 1968. The study also concluded that job satisfaction is 'functionally related to the productivity. A critique of Herzberg The textbook gives a comprehensive list of the criticisms of Herzberg's research. 1988.Faculty of Business. the work itself. The Herzberg heritage Frederick Herzberg's 'two-factor' theory (1959. Herzberg acknowledges that here was some evidence in the study of individuals who do seem to associate satisfaction with hygiene factors. 1980).3 portrays the results of Herzberg's study of 203 Pittsberg engineers and accountants. it follows that the opposite of dissatisfaction is not satisfaction but no dissatisfaction. but through designing workplace processes an practices that enhanced sense of achievement. 1968) has become almost as well known as Maslow's hierarchy of needs. and those related to an individuals 'compelling urge to realise his [or her] potentiality for continuous psychological growth. including achievement. p 96). but this he explains in terms of employees not having reached a stage of personality development at which self-actualisation needs are active. The message for managers implied by Herzberg's theory was that greater performance was to be gained from employees not through improvements in pay or job conditions. Lee. As with Maslow and McGregor. a different set of factors leads to dissatisfaction from that leading to satisfaction). They are 'fixated at a less mature level of personal adjustment’. or personal growth. The reverse is also true: that is. responsibility and advancement. recognition. interpersonal relations and working conditions. of autonomy. Thus. Also a major cross-cultural study by Hofstede (1980a) has concluded that McClelland's motivation model could not be seen as universally valid. and that job dissatisfaction was related to company policy and administration. By medical analogy. undertaking job enrichment. stability and adjustment of the industrial working force' (Herzberg. The findings also bore out Herzberg's own beliefs in the dual nature of people's needs: those related to the 'basic drives' and 'survival needs' of human existence. the opposite of satisfaction is not dissatisfaction but no satisfaction. supervision. and to argue that the causes of dissatisfaction should be prevented rather than cured. the message to managers is: do not expect hygiene factors to do the job that only motivators can do. that is. but because it has been what Watson (1986) refers to as a 'sensitiser' bringing to managers' attention the motivational prospects of intrinsic job factors. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 41 should be developed through training programs although evidence of the success of such programs in unclear (Vechhio. The research findings were consistent both with the underlying hypothesis that there was a difference between the factors leading to satisfaction and dissatisfaction. the value in Herzberg's approach has not been in the specific details of the theory per se – because of the substantial problems listed. and that there is a lack of supporting evidence from other studies.

Key assumptions within the goal-setting approach are: • • • specific goals motivate more than general ones such as the exhortation to 'do your best’ difficult but attainable goals motivate more than easily attained ones participation in the setting of a goals is likely to lead to a higher level of motivation than goals issued as directive. and Herzberg's motivators.1. they assume the existence of a general set of human needs applicable across time and space. McClelland's nAch. that is. That is. leading to the accusation that they are expressions of the high individualisation characteristic of American culture with limited universal application.2 Process theories of motivation As noted earlier. in content models the connection between needs and behaviour is assumed to be unproblematic. • • 3. Content approaches to motivation focus on what are supposedly the fundamental motives influencing behaviour. Needs approaches have tended to treat the workplace as the site at which fulfilment of needs is sought rather than just one site. his or her goals – being the critical intervening variable between an incentive and actual performance (Locke and Latham. the needs approaches have some generic limitations: • Needs approaches tend to be characterised by an assumption of 'psychological universalism’. are all examples of attempts to examine this process. At the lower level. Despite this general theoretical cohesion. Needs-based theories are blind to cultural variations. McGregor's Theory X. That is. There is no allowance made for differences that may exist on the basis of gender or class or any number of other factors.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 42 General limitations of content approaches It is not difficult to see that the needs approaches 'map on' to each other. In contrast to content theories. and Herzberg's hygiene factors. The following three approaches. however. and expectancy theory. equity theory. rather than as a process to be investigated. McGregor's Theory Y. The process theories of motivation seek to deal with this latter deficiency. Maslow's physiological needs correspond roughly to Alderfer's existence needs. Maslow's self-actualisation and esteem needs correspond roughly to Alderfer's need for growth. Goal setting The goal setting approach to motivation focuses on the role of goals in determining behaviour. In this approach the motivation process involves the conscious intentions of an individual – that. All needs theories share the common assumption that normal health individuals seek intrinsic rewards from their work organisation. but primarily due to its effect on increasing the chances of a goal being accepted as a target for action Master of Business Administration . 1984). they direct attention to explaining motivation as a dynamic process. process theories of motivation seek to explain the cognitive process whereby individuals decide how to act. This approach ignores the process aspect of motivation. goal setting.

they have a certain level of expectation of achieving that outcome. Acceptance of the goal is the critical factor. If the other's job is newly perceived as more demanding the inequity may disappear. position) they receive for the input (for example. that is. then whether or not this was arrived at by participative means becomes of little significance in terms of its motivational effect. Pfeffer (1982) provides a useful and succinct discussion of this and other reservations about the goal-setting model of motivation. the motivational effect varies according to the strength of each of the following three factors: • • a certain outcome to be desired and available (valance) a belief that specific behaviours will lead to that outcome (instrumentality) Graduate Studies Program . For example. Expectancy theory Expectancy theory. the privileged will also seek to restore equity. Alternatively. in addition to the preferences and desires that someone has (which might be addressed through one or more need theories of motivation). it is argued that if a person accepts a goal as his or her target. the effect of all other factors that may affect the motivational process is filtered through this factor. draws on the notion that. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 43 • feedback on performance enhances the motivational effect. The theory thus combines the strength of individual needs with the level of expectation. hoping to bring about a reduction in their pay. 1978). Equity is assessed in a continuing process of comparison with the inputs and outputs of someone they see as in an equivalent position. A detailed view of the evidence on the validity of equity theory found that there was support in laboratory tests but that studies in actual organisations provided little clear evidence of such validity (Carrell and Dittrich. given other factors. or an increase in their effort or a reassessment of the difficulty of that job. the perceived inequity may be resolved by internal transfer or resignation. Those who feel deprived may ask for higher pay (increased output). experience) they make. If none of these solve the problem. Accordingly. According to the theory. as the term implies.Faculty of Business. Research evidence has substantially supported the goal-setting approach. although there are certainly reservations as to whether acceptance deserves to be given quite the overwhelmingly dominant role as a causal factor that it is generally assigned. effort. or are simply not tried. Adams argues that parallel reactions also exist for those whose assessment of equity leads them to believe that they are relatively privileged. Workers who believe that their outcome-to-input ratio is either higher or lower than those with whom they compare will have resulting feelings of inequity that lead them to take action to remove the inequity. they may focus on the others. revising downward their assessment of the difficulty of their job. salary. reducing the effort they put into their work (decreased input). or changing the person they use as their point of comparison. Equity theory J Stacy Adam's equity theory is based on the belief that employees' behaviour is influenced by their perception of the degree of equity in the outcomes (for example.

eds J. Master of Business Administration . (NB: You may wish to consider this latter point in relation to views of leadership that argue that leaders with 'clout' tend to be better respected and more successful within their organisations. the extent to which he believes he can learn the new packages and produce reports of the required standard. Osland.Z. the degree to which this proposition influences Jim's motivation is dependent on how Jim judges all of the following: • • how much he wants the promotion and bonus the extent to which he believes that he will actually be recommended for the promotion and bonus. According to expectancy theory.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 44 • a belief that one has the ability to complete the required behaviours successfully (expectancy). Upper Saddle River. using some new computer packages. A more complex integrative model of expectancy theory is presented in the textbook.M. Mary. (See Chapter 4. D.) In addition to the interaction of these factors. pp. in The Organizational Behavior Reader. the situation may be complicated by efforts on Mary's part to influence the various judgements. eds J. reassurances about her capacity to provide it.S. Rubin. Reading 3. that part of his job will now involve accessing computer records held elsewhere in the organisation. she will strongly recommend him for a promotion and a performance bonus at the end of the year. New Jersey. & I. 2001. 104-118). For example by providing information on why Jim ought to be interested in the promotion. ‘On the Folly of Rewarding A. have lent support for the theory. teams and leadership' Module.) See the 'Groups. in turn. Rubin. B. New Jersey. Osland. he will be required to devise and draw up new information about the company's marketing performance. Kolb. pp. and whether the recommendation will in fact result in the promised rewards.A. 2001. (See Chapter 18. In addition. D. a middle level marketing manager. ‘Recognize Contributions: Linking Rewards with Performance’.A. While Hoping for B’. & I.3 Kerr.M. As an example. Prentice Hall. J. Reading 3. and outlines some ways in which experimental design has been improved and how these.S. • • (The textbook's discussion of self-efficacy is relevant here. in The Organizational Behavior Reader. S. 508-515). may be told by his boss. Kolb. Prentice Hall. The textbook discusses attempts to validate expectancy theory.M. Upper Saddle River.2 Kouzes. Jim. Mary promises that if Jim is able to carry out the additional tasks successfully. and her views on how confident Jim ought to be about reaching the goal. see the diagram and the accompanying discussion. & Posner.

from their American origins and secondly from their basis in psychology. with the caveat that motivation theories are culture-bound. Important in this is the idea of the 'wage-effort' bargain. gender. students should also be aware that there is a separate disciplinary stream about the meaning of work which originates in the sociological literature. education and other socialising influences as a way of explaining the ways people derive meaning and motivation from work. education etc) and the notion of 'dynamic' orientations which derive from the experiences in the workplace itself and the impact of non-work factors. it was hard to explain why the workers said they liked both their jobs and the employer. students should be aware of motivation theories' universalist assumptions.3 Orientation to work approaches The textbook's Chapter 6 concludes. a certain standard and quality of life outside work could only be supported by undertaking a particular type of work. firstly. The explanation was offered that the workers had what is referred to as an 'instrumental' orientation to work. in which a worker establishes Graduate Studies Program . While the orientation approach is consistent with expectancy theory. Briefly. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 45 3. These. Given the 'alienating' conditions of these 'narrow' and 'repetitive' jobs. while not 'basic' still play an important role in the quality of life. family situation.1. One of the earliest. Watson (1980) develops the distinction between 'prior' orientation to work (derived from past experience. In the workers' own rationality. Many other textbooks also say nothing more on the topic. that is. as will needs. it goes further by locating the expectations that influence workplace behaviour outside the workplace. preferences and behaviour. and their implicit view that specific needs or processes are innate. and at different times for the same person or group. This approach is known broadly as 'orientations to work’. repetitive work on automobile production lines. and most important applications of the orientation approach was made in Goldthorpe. although the form of rationality might differ amongst different people and groups. This approach encompasses the idea of a 'negotiated order' existing in organisations and avoids some of the problems associated with the definition and attribution of needs implied by the discussion of 'higher' and 'lower' order needs in the human relations tradition. however. relatively high paid. It incorporates issues of class. and it must be admitted that Robbins is not alone in not taking the issue further. (1968) in their study of the impact of affluence on the behaviour and outlook of manual workers in the car industry. rightly. at best semi-skilled. as will behaviour. For example. The study of orientations to work has its origins in the work of Weber and the assumption that human beings are on the whole rational. A demand for higher wages may reflect needs. For a more complete understanding of wants and expectations regarding work. and that they have probably been overly influenced by the individualism and achievement orientation that derives. and given their relative lack of skills. Lockwood et al. at different periods in the life cycle expectations will differ. Equally important can be changes in the work situation itself. Also. Changes in job design may or may not be consistent with the orientations of the workers and so may be rejected if they offer rewards not sought by the people concerned. wants.Faculty of Business. family. factors outside work can account for the fact that orientations. and the extent to which management interventions can influence these. Simply knowing this does little to rectify the problem. wants or preferences like holidays and travel. Its main research base has been Britain rather than the United States which is probably another factor in its lack of prominence in management textbooks. expectations and even needs will change over time.

such participation must reinforce a competitive strategy if it is to be maximally effective in helping the organisation to survive. or systematic approaches to judging the extent to which employees have met their performance objectives. Or whether the reverse is true. that satisfaction comes about as a by-product of increased productivity brought about by an increased range of better ideas associated with more people participating in decision making. Master of Business Administration . career development and performance appraisal.4 Applications of motivation theories to human resource management practices Compensation management Goal-setting theory has been the basis for major management systems such as Management by Objectives (MBO). Randall and Jackson (1987) make the additional point that the kind of participation may be important. Their conclusion is that there is considerable evidence that participation does lead to higher satisfaction and productivity but that participation does not necessarily lead to better ideas. Worker participation in decision making As mentioned at the outset of this Module. Equity theory has been the basis for compensation management systems such as the Hay scheme – a points-based system for evaluating the worth of particular jobs. Miller and Monge (1986) present a scholarly review of a large number of articles on this issue. even if they are accompanied by extra pay and more enriched jobs may well radically disturb the wage-effort relationship. 3. and the way management handling of them needs to change if organisations are to prosper.5 Other HRM issues The remaining readings in this part of the Module relate to some other prominent issues in human resource management in the middle to late 1990s: cultural diversity. Thus changes in job design (see later in this Module). Factors that change the wage-effort bargain or ratio will induce changed behaviour as the worker tries to re-establish the old ratio or establish a new one. in turn. or the desire to earn the new pay rate.1. 3.1. MBO. Schuler. been the basis of many compensation schemes. which then leads to increased and sustainable productivity. The textbook in the latter part of Chapter 7 provides a comprehensive overview of the application of these and other motivation theories to compensation management. The fact that many job-redesign exercises are often associated with increased payments for some workers at least means that there are two possible explanations for a subsequent increase in output – the satisfaction derived from the new job.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 46 some notion of 'balance' between effort (input) and the offered wage (output). has. Specifically. one of the vexed questions in applied organisational theory is whether participation in decision making leads to worker satisfaction. that is.

‘Cultural Constraints in Management Theories’. agree when agreement is needed. & I. (See Chapter 12.S.M. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 47 Cultural diversity An important theme in contemporary HRM is that managers must be concerned with an increasingly culturally diverse workforce. miscommunication and stress: This can cause inability to validate ideas and people. It can lead to better problem definitions. effective and productive. at the stage of creating ideas. Disadvantages of diversity The disadvantages of group diversity include: Lack of cohesion. as a result. Prentice Hall. 2001. Diversity forces enhanced concentration to understand others' ideas.4 Hofstede. Adler (1997) argues that the diversity represented in multicultural work groups gives them both the potential for higher productivity than homogeneous groups and a greater chance of productivity losses.Faculty of Business. which relies on the creative use of different. Members from more relationship-oriented cultures such as China. Diversity is most valuable when the need for agreement (cohesion) remains low relative to the need for invention (creativity). Diversity at a national level In the group formation stage members need to develop relationships and build trust. but members from more task-oriented cultures such as Germany and the United States tend to want to get down to business and therefore spend relatively little time on this process. is how to capitalise on the benefits of cultural diversity while minimising their potential costs. meanings and arguments. the Middle East and Southern Europe will.A. Advantages of group diversity The advantages of group diversity include: Increased creativity: A wider range of perspectives. diversity makes the process easier. D. This has implications for the effect of diversity at different stages of group activity. Kolb. more alternatives. Osland. eds J. pp. in The Organizational Behavior Reader. New Jersey. G. Rubin. gain consensus on decision. Reading 3. Groups can become more effective and productive. However. feel rushed and distrustful. less Groupthink. more and better ideas. leading to mistrust. diversity makes the process more difficult since these processes are facilitated by recognition and creation of similarity. such as their equivalent professional status and qualifications to compensate for these differences in cultural backgrounds. Thus. Managers experienced with multicultural groups will tend to direct the attention of group members to areas of similarity. The intention is to create Graduate Studies Program . Upper Saddle River. The question managers need to face. Groups can become less efficient. and also at the stage of decision-making and implementation. at the stage of group and trust formation. 345-356). better solutions and better decisions.

and allow cultural differences to emerge as a resource rather than a threat. long term perspective. they are not especially interested in management per se. but necessary if we want to take a broader.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 48 bonds at the level of professional similarity. Diversity is an advantage at this stage. Schein defines five career anchors that. Career anchors A tool long used in helping people get a grip on the longer-term career development is the concept of 'career anchors'. This can be done by selecting members of equal ability and minimising early judgements based on cultural stereotypes. Power should be distributed according to each member's ability to contribute to the task mutual respect by group members should be encouraged. The second stage involves a focus on setting objectives collecting and analysing information and developing alternative courses of action. one that transcends the individual differences avoid cultural dominance. without disregarding promotions and pay increases Master of Business Administration . choices and consequences identifying career related goals programming of work. education and related developmental experiences. The choice of the term 'careers' rather than 'jobs' suggests an orientation towards a connected. As a result. Appendix B: Careers and Career Development Textbook Looking to the next promotion or job is an important skill. opportunities. The self-image of people in this group is tied up with their feeling of competence in the particular area they are in. The third stage involves deciding what to do and how to do it. It may also imply that reaching a long-term-goal may mean spending some time in a job that is not particularly congruent with our work preferences. through a process of ability testing in different jobs. These are: Technical/ functional competence: the actual technical or functional content of the work. constraints. but we also have to consider long-term-goals or constructing a career path. as used by Schein. tasks and positions. Reaching agreement is usually easier for homogeneous groups. Adler's general guidelines for managing culturally diverse groups include the following: • • • • • select group members of a similar level of ability to enhance communication. motivated and developing series of work stages rather than an unrelated series of activities and events. should become apparent by mid-career. Career development Career planning is generally regarded as being a deliberate process for: • • • becoming aware of self. but rather. among other researchers. but with a diversity to enhance creativity give attention to cultural differences but avoid stereotyping help the group to agree to a superordinate goal.

Autonomy is the anchor because that is what they would not give up if forced to choose. security is more geographically based and involves a feeling of settling down. You could make it your business to consider career anchors when managing other people. 124–172. Reading. Autonomy and Independence: Those with this career anchor seek work situations in which they will be maximally free from organisational constraints to pursue their professional or technical/functional competence. schedules. Creativity: People anchored in creativity need to build or create something that is entirely their own product. setting their own pace. and the qualities needed – management – that is. more than others accept an organisational definition of their careers and will trust the organisation to do the right thing by them. a personal fortune that is a measure of one's accomplishments seems to be the key to such people. because the entrepreneurs also enjoy autonomy and freedom as they become successful. creating something that bears one's name. E 1978. This group can be distinguished from the technical/functional competence group in particular in that the autonomy group members experience little conflict about missed opportunities for promotion. MA.Career dynamics. Addison Wesley. all of which indicate 'amount of responsibility’. It is important to realise. rank and income.Faculty of Business. For them. stabilising the family and integrating themselves into the community. What distinguishes this group from the others is that its members' need for autonomy is higher their needs in other areas.) Implications of career anchors While it may be useful to know your own career anchor. people whose anchor is managerial competence do seek management as a specific goal. But as one listens to the entrepreneurs. a decent income and a stable future. Within this orientation there are two types. a company of one's own. generally tend to seek increasingly challenging work in their technical area as a primary measure of success. lifestyles and work habits. For some people the source of stability and security rests primarily with being stable members in a given organisation. By implication. Graduate Studies Program . general management areas. interpersonally and emotionally competent in order to exercise high levels of responsibility are quite different from the creativity requirements of entrepreneurship. Managerial competence: Unlike members of the previous group. Specific technical or functional jobs are seen only as necessary interim stages on the way to the higher. Such people measure their success by promotions. such people will. Security and stability: People anchored in security tend to do what is required of them by their employers in order to maintain job security. Achievement or self-extension. to be analytically. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 49 entirely. This is essentially an entrepreneurial profile. pp. On the surface it is not too easy to differentiate the autonomy and creativity groups. it is clear that they are much more preoccupied with building something whereas the primary need of the autonomy seekers is to be on their own. and have little sense of failure or guilt about not aspiring higher. that not all your subordinates are headed for or indeed suited to a management career. (Source: Abridged from Schein. for instance. career anchors have many implications for your supervision of associates' careers.

however. An alternative method is to develop a list of the factors that 'really make a difference' by interviewing past or present jobholders. For more detailed information on this topic. or may only become crucial at certain times. Many skills are difficult to demonstrate in observable ways.e. networking. their freedom from contamination by external factors. E 2000. motivating employees & shaping org. Age Of Propaganda. culture & gaining commitment from followers. but also manipulate the symbolic aspects of organizations. students might consult the main source for the following notes: Pratkanis. for an airline pilot. This way one can be sure both the appraisee and appraiser understand the areas that are rated and their importance. Textbook Master of Business Administration . Yet another way – and one of the most common – is to come to an agreement with the appraisee on the critical facets of the job and use these. Use the following notes as a guide to study. One way to do this is by using the critical incident technique. It is also important to choose areas that are quantifiable. in emergency situations. or training managers. their supervisors. In short. This can also be described as the process of articulating and reinforcing a clear sense of purpose for organisational participants. performance areas should be selected on the basis of their relevance to the job. “why we are all here. In this topic we will examine the following issues: • • • • what is persuasion? why learn about it? fundamental principles of persuasion four strategies of influence There is no specific chapter in the textbook covering this topic. The job description is a good place to start searching for these. subordinates. which in turn effects: • • • how information is disseminated. and their reliability (which is usually a function of visibility and ease of rating). and based on observable actions or results. for example.2 Persuasion Introduction Persuasion relates directly to the management of meaning in organizations: i. what we do and how we do it”. A & Aronson.. All this is not to say that choosing relevant areas for appraisal is always easy. New York. Managers not only deal with material resources.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 50 Selecting the performance areas that need to be assessed The general wisdom about which are the relevant performance areas for assessment is that you should choose the critical areas that relate to success. decision making and the way in which problems are framed. politicking & influencing. customers. 3. Freeman.

. debating). For example. and employees’ expectations and understanding of work events generally. lest he lose his possessions or be banished from his community as a result of a petty lawsuit.1 What is persuasion? The management of meaning in organisations can take two forms: • persuasion: discourse which illuminates the issue at hand o o o o • argument debate discussion or a well-argued speech propaganda: suggestion or influence through the manipulation of symbols and the psychology of the individual. Keep in mind that the average Greek citizen’s education in the 3rd century BCE included 4 yrs of rhetoric designed to teach them how to understand persuasive arguments and how to construct their own. o Armed with these definitions. and thus established the papal propaganda office to bring people to “voluntarily” accept church doctrines. would spend every Friday afternoon demonstrating their proficiency at this by taking a stand on an issue.2 Why learn the basics of persuasion? Firstly. live in a message-dense or “over-communicated society”.Faculty of Business.2. often through use of lies and deception. for four years. First widespread use of persuasion tactics during WW1 when it was specifically defined and recognised as the dissemination of biased ideas and opinions. The Greek court system required citizens to plead their own cases before a jury of their neighbours. and before newsprint.e. the average Greek citizen was interested in learning how to argue. all citizens were considered equal and expected top be able to speak on their own behalf. let’s take a historical perspective: In ancient Greece. 3. it is not too difficulty to see the possible use – and abuse – of persuasion and propaganda when used to shape an organisation’s culture specifically. the average (north) American will be exposed to approximately 7 million advertisements in their lifetime … and this apples equally to the workplace – since the Graduate Studies Program . defending it and attacking the view of others (i. o The first documented use of propaganda was in 1622 by Pope Gregory 15th. who realised that establishing faith by force of arms in holy wars was not particularly successful. how many religious sermons might a church attendee hear in his or her life? 3000? And how long does a sermon last for? Perhaps fifteen minutes to an hour. depending on the attention span of the congregation? We.2. Could the average person today do this or defend themselves in court with the same degree of proficiency? Remember also that these people lived in a world very different to ours – in the absence of television. radio. Roman students in the 1st century also took courses in persuasion. With this in mind. on the other hand. while students at Harvard in the US in the seventeenth century also studied how to argue and. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 51 3.

Credibility (is divorced from the rigours of debate and intellectual assessment of discourse. the next is presented (or an advertisement). Therefore. that visual stimulation is a substitute for thought. handyteller adds. then. Katz. or emotional attachment to any particular ‘news frame’. let’s go back to the modern world at large for some examples… • The average news story lasts only forty-five seconds. Similarly. etc. There is no context. no character.. 1986. You are required . Epistemologically. not to strain the attention of anyone but instead to provide constant stimulation through variety. Postman (1986) describes televised news as “a world of fragments”. Similarly. email. and no problem for more than a few seconds at a time” and. to pay attention to no concept.. time is not allowed for consideration. And what is the result of this … • • • Stern (1973) reported that 51% of subjects could not recall a single item of news at the conclusion of a (standard) televised news program. and) is placed in the hands of the appearance (and public acceptance) of the presenter. there can be no contradiction. Hence. and movement. novelty. Adoni and Parness (1977) found that 21% of subjects were unable to recall any news item within one hour of the broadcast. and that verbal precision is an anachronism”.. concrete and less inferential. billboards. Robert MacNeil (cited by Postman. Salomon (1979) concluded that “the meanings secured from television are more likely to be segmented. and those secured from reading have a higher likelihood of being better tied to one’s stored knowledge and thus are more likely to be inferential”. these discrete items cannot have ‘implications’.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 52 advent of email. 105): had the following to say about the aims and objectives of news presentation on television: “… keep everything brief. how much information do you receive. importantly. and the recipient is so inundated by messages that it is difficult to devote the cognitive processing energy to make full sense of the important issues each day To gain some perspective of that last point. radio. but it is not limited to that – it could be quite reasonably argued that the same descriptor applies to the modern world in general: internet. “complexity must be avoided” and that “nuances are dispensable . Each item is a discrete event. as the frame of reference moves every forty five seconds on to a ‘new’ story. A typical political advertisement runs for 30 seconds or less.. and no intellectual confrontation. debate. Master of Business Administration . without context. separated in terms of context & emotional attachment from the next. action. a burden is placed on both the communicator and the recipient of a message intended to persuade: • • the communicator must design a message that will not only be appealing but attract special notice in this cluttered environment. magazine advertisements often consist of little more than a picture and a phrase. and how much attention do you give to it? And what about paper mail? As a result of this.

But. Although persuasive messages are frequently successful in capturing our attention in a message-dense environment. and that was shaped by the preferences of their parties – so. while at other times our fears. or whether you’ll get to work or enjoy the scenery on the way to your destination. a policy speech. television reinforced their original party beliefs & alliances (i. which could vary depending upon the individual. the situation and the appeal. and perhaps also means of asserting your success in life!). 2000) The underlying mechanisms of persuasion when used as propaganda apply equally to either a biased news item. his decision was supported by congress. hopes and insecurities cloud our judgement. or sportiness. Although we are bombarded with persuasive messages every day – wherever we are – we don’t usually have the opportunity to learn about the techniques of persuasion and to understand how they work. while the mass media (and the organizations we work and manage in) might not be able to tell you specifically what to think. Graduate Studies Program . and what applies for cars also applies to politics as well. sometimes we think carefully about what is said. Ok. they substitute slogans and images for well-reasoned arguments. those who keep track of the coverage are far more likely to adopt that view than those who watch little television .. For eg. cars are the answer to your transport problem. while liberals favoured more economic sanctions first). so what is going on here and why is it relevant to us? “Influence depends upon on how a message is interpreted and responded to by the recipient. conservatives favoured immediate & direct military action. For eg. are likely to be very different to other factors that might influence your choice of transportation.e. in 1990 when Bush decided to send troops to the Persian gulf. such the impact on the environment from private vehicles. For example. an advertisement. and of those Americans who kept good track of current news events in August of that year.” (Pratkanis & Aronson. while only 23% of those who watched very little news were supportive.Faculty of Business. they do strive to tell you what to think about and how to do it. the combined/cumulative effects of car advertising on television will suggest what factors are important to consider when making decisions about transport. But. in the situation where the consumer views more adds for a specific product – or receive greater exposure to a political message – then they are more likely to switch to that product or party. When only one side of an issue is presented by the mass media (as in the car example we just looked at – i. they differed in terms of how the intervention should proceed. 76% supported the decision. at others we hardly think at all and follow our prejudices and stereotypes. and constrain the breadth and depth of the issues under ‘consideration’ and hence turn complex issues into simplistic black and white dichotomies which preclude consideration of alternative issues and perspectives.e. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 53 But. of those who supported the decision to send troops. or even a shareholder or department meeting. Product attributes that regularly appear in such advertisements such as prestige. luxury..

even supplying a non reason saved the subject from having to think of one… trumpet trivial differences as if they were important. “Excuse me: may I use the photocopy machine because I have to make copies. just over half of the responses complied with the request) or.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 54 3. “Is this person stupid? I was here first and I’ve got work to do” (just under half) But. but most people complied with it . Even when we’re thoughtful … The common response to being asked for “spare change” is to answer with a rude word and walk away. either. we often respond to propaganda with little thought and in a mindless fashion because: • any reason will do: (Langer. or have they run short at the checkout?”) Master of Business Administration . or you wouldn’t be asking to use the machine. “Yeah. “Do they need it for a bus fare. For example.2.. 1978) o o In a university study. such as “our cigarettes are 2mm wider that usual” state non-facts that appear impressive (“Bloke Cola is it”) or include meaningless superlatives (“Mayer – the world’s best aspirin”. This is a non-reason – of course you need to make copies..” most people complied. The first is that humans have finite cognitive processing power and seek to conserve cognitive energy by taking mental shortcuts whenever possible. and this personalised the plight of the person asking (i. why not. but one study found that if people were given an unusual figure – i. 2000) All persuasion tactics are based on two fundamental principles which describe peoples’ cognitive responses to persuasive communications.e. 2. “Excuse me: may I use the photocopy machine?” Responses fall into two general categories. 1.e. 3.3 Fundamental principles of persuasion The goal of persuasion “The successful persuasion tactic is one that directs and channels thoughts so that the target thinks in a manner agreeable to the communicator’s point of view. I’m a helpful person” (in fact. but 17c or 58c – that 60% more people contributed …Why? The ‘non-reason’ prompted them to think of hypothetical reasons why it might be needed. if a stupid reason was given. such as. confederates would walk up to people who were busy photocopying and ask either. when all aspirin are the same…) o • Advertisers also understand this – many adds either 1. Blank & Chanowitz. the successful tactic disrupts any negative thoughts and promotes positive thoughts about the proposed course of action” (Pratkanis & Aronson. instead of a neat denomination such as 20c or 50c.

The messages were also written so that some were Graduate Studies Program . Dukakis was soft on crime. and Bush would protect Americans (especially the white ones who process in the peripheral route) from people like Horton. Dukakis is weak on crime. and during this time out raped a white women and stabbed her husband.. When Dukakis was governor of Massachusetts. if the message is not considered to be of great personal relevance to us.e. and hence the strength of the argument is the most important factor. Example: 1988 and George Bush is campaigning against Michael Dukakis: • Bush ad told the story of ‘Willie Horton’. the persuasiveness of the message is determined by how well it can stand up to close scrutiny. However. the recipient devotes little attention and effort to processing the communication. Persuasion is determined by simple cues such as the attractiveness of the communicator. or a one-off? what are the real percentages here? How many prisoners involed in the program complied? I. what is the success rate? have instances like this happened in other states. one half were told that it would come in the following year. the utility – i. making it personally relevant for them. a person might ask: is this program in Massachusetts unique.” because it follows the classic propaganda formula: a simple image (Horton – black) that plays on prejudices (i. a black man who had been sent to prison for murder.. • In the central route to persuasion. or want additional information. One half were told that it would not take effect for ten years. especially those committed by black people. then we’re more likely to process it via the peripheral route and be influenced by the perceived credibility of the source instead. For example.Faculty of Business. in one study university students heard a message which advocated that their university adopt a compulsory comprehensive exam in their final year which they would all have to pass in order to graduate. This was influential because it required little thought for a person in the peripheral route to get to the point – the typical response elicited might have been “Dukakis let Horton out of prison to rape and kill. pleasure or pain – associated with agreeing with the position. who are also black. In this mode. Central – here the recipient engages in careful and thoughtful consideration of the merits of the information presented. Horton was released on prison furlough program. peer pressure and whether or not the people around you agreed with the position presented. So. or whether a reason is given – no matter how trivial or meaningless – for complying with the request.. we’re more likely to use the central route. and to other governors? What determines which route we’ll choose to process a message? If it is personal and relevant to us.e. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 55 There are two routes to persuasion – the peripheral and central: Peripheral – here. So in this mode.e. the recipient might argue against the message. some white Americans’ stereotypes of black people) and emotions (fear of crime) to produce a simple but effective response in favour of George Bush.

gave away their money. the formerly reclusive group members began calling newspapers & TV stations to talk about the prophecy & why it failed – they made speeches • • Master of Business Administration . and some were full of personal opinions & anecdotes. source credibility was the deciding issue. we attempt to appear reasonable to ourselves and others” (Pratkanis & Aronson. she and those close to her would be rescued by a fleet of flying saucers.45 Keech announced that their unflagging faith had convinced God to save the world) o within 24hrs. Summary Due to our limited processing ability. and withdrew from their friends and normal social circles. They were confident in their beliefs.. Humans have a strong tendency to rationalise our thoughts and behaviours so that they appear reasonable to ourselves and preserve our self-esteem. How can we break out of the trap? By making a conscious effort to process messages via the central route. 2000) The end of the world & cognitive dissonance • • • • Marian Keech: described as a “charismatic. The study found that the route to persuasion was determined by the personal relevance of the issue. Where the issue was not seen as being relevant. the world didn’t end. a strong argument was most important. some not. she claimed to receive messages from the planet ‘Clarion’ informing her that the world would be destroyed on Dec. Keech also attracted the attention of social psychologists who infiltrated the group and found that they were “gentle. who quit their jobs. “Nomatter how irrationally we behave. benign & reclusive” and who “shunned publicity and discouraged converts”. and some had strong arguments (based on research etc). Keech attracted a small but loyal group of followers. Try to think what the ultimate aim of the message is and who it will serve best. middle-aged woman” in the USA in the 1950s. For students for whom the issue was personally relevant. and other earthly possessions. we mindlessly adopt a position or accept a conclusion because it is triggered by a simple persuasion strategy.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 56 from a credible source. But.e. 21 by a flood. That is. we often use the peripheral route to simplify complex issues. Fundamental principle No 2: 2. At 4. and not settling for what is presented to you without questioning and examining the premises that it is based on. personally relevant / not relevant)? Use a strong argument and a credible source. Well. So how might we influence both groups (i. and then work backwards and pick it apart. houses. but what happened next is very interesting despite that: The followers had been told to prepare for pick-up at midnight on the 21st – but by 4am. as the world hadn’t ended. things were looking grim. without any grandiosity or flamboyance.

the others become easier… (same applies to war propaganda) Remember. In response. 1957). and you experience cognitive dissonance because: 1.. or maintaining self-esteem. 3. jobs. o o For example. I’ve got a 2.” or … and you’re not in a dire situation because you’re still employed mortgage and problems of my own. the strategies to reduce dissonance here can be summarised as: 1. reduce the humanity of the person involved / not really a friend. Believers zealots o o The mechanism at work here is that of cognitive dissonance (Festinger. X was a good worker. he did slip up on occasions” “well. To do so. you might change that cognition to “well. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 57 and handed out pamphlets on street corners important to get their message out why? o o suddenly it was incredibly They had given up a great deal but the world didn’t end.. partners. and we reduce it by changing one or both of the cognitions so that they reconcile. and X is in a dire situation works. so you can’t change that. Dissonance occurs when a person holds two inconsistent cognitions (ideas. change and re-structuring / downsizing / becoming more efficient (or however you wish to frame the situation) and a friend of yours is retrenched and you remain. “when food is short.Faculty of Business. This triggers survivor syndrome (i. the effects of these strategies can spiral once you explain away one retrenchment. (We change cognitions because behaviour is in the past and hence unalterable. in whatever form basic survival. individuals will go to great lengths to distort facts & events. he could have planned better. “why am I still here when…”). denial. belief that world will end and possessions are irrelevant is dissonant with the fact that the world has not ended and it gets cold at night… This inconsistency is uncomfortable. because his presence reminds you of the reality of what occurred). 4. opinions) i.” So to recap here. and in some instances. What can you do? He’s been terminated. I didn’t know him that well… and maximise their responsibility not such a great worker any way… Depending on the context. 2. X was your friend. table manners change”… serve the self. you avoid him in the future. beliefs. The only way they could convince themselves they had done the right thing and that their actions were not in vain was to convince others that their sacrifices were not in vain and that their beliefs had saved the world. possessions. and self-persuasion to justify their past behaviour.e.) These sort of defences are most strong when a person’s self-esteem is at risk..e. we weren’t really that close.” or “his wife “well. “well.. but you can change the way you think about the underlying premises (see above) Graduate Studies Program . and they were without homes. there are a lot of lay-offs occurring at work as a result of org.” (and to make it so.

a propagandist intentionally arouses feelings of dissonance by threatening self-esteem. even though they asked for less. Research has shown that the “even a small coin will help” receive almost twice as many donations than those who use the standard plea. you give to that charity. instead of rationalising over them. and strive to learn from them instead of automatically rationalising them. your self-concept is challenged. The one thing that perhaps separates us (or at least some of us!) from other animals is that we have an ability – if and when we choose to use it – to think past our instinctive. it is fairly easy to quickly think of a reason not to give. so you give to the charity. and also by building our ego-strength or sense of self-esteem without having to fall back on justification. or stupid. Master of Business Administration . and this reflects on their self-image and how they wish to be perceived as not being stingy but generous and / or able to afford more. or whatever. one way of reducing this dissonance. she might make a person feel guilty about something. buy that car. evolutionarily derived urges to self-protect and instead reflect on our actions. Either way. the propagandist offers one solution. So. but if the plea is followed by “any coin will help” your excuses vaporise – after all. uncaring. their self-esteem is restored. where mistakes are looked upon as learning opportunities rather than opportunities to hang someone and improve our position in the org. • • The irony in all of this is that the rationalisations we undertake in order to avoid thinking of ourselves as stingy. which involves complying with whatever request they have in mind. and restore your feelings of worthiness and self-esteem. • Example: a charity collector knocks on your door and requests a donation • • normally. it is no longer a decision of whether to contribute. There is only one way to reduce the dissonance and restore your concept of being a decent person. This can be achieved by first understanding our inherent tendency to protect our egos and the ways in which we reduce dissonance. set the stage for increasing acts of stupidity or immorality.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 58 The rationalisation trap • Here. or social pecking order or momentarily boost our fragile egos. but they also receive as much money as the standard plea. So. face the shortcomings in yourself and life in general and try to learn something from them. as well as to the apparent inequities that you and others face in life and at work. Next. This is easier if we encourage a culture – whether it be in the home or at work. by arousing feelings of shame or inadequacy. to reduce that guilt. Why? Once the justification for not contributing is nullified by the “even a small coin” plea. what sort of person would not even give 5 or 10 cents to a charity? So. For example. but how much. How to break out of the trap? Admit to your mistakes and shortcomings. vote for that political leader. or making you look like a hypocrite.

and which have no existence before appearing in some news media. resulting in a nation-wide boycott of the cookies (how convenient for the competition…). downsizing = becoming more efficient) and how the decision is framed – eg. as nothing concrete has been said. sportiness. and a report on body language doesn’t hold weight Flaming – use of the internet to propagate vicious attacks and unfounded rumours • Example: a major cookie maker gave free cookies to O. (Eg. special grip not-withstanding Which of these brands won’t upset your stomach? Y is removed Which brand gives you the most pain relief? X is removed. which just happened to be the best. so environmental issues are ‘screened’ from the selection process. in the case of car advertisements. especially when ‘reporting’ on the behaviours of movie stars) Innuendo & ‘whispering campaigns’: upon hearing that section head X has been promoted/ taking on a new project etc.2. Factoids: assertions or suggestions of facts not backed by evidence. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 59 3. answer the question for the target audience present a scenario as a ‘fate accompli’ – i. “you know you want to” – ergo – there is no reason for me to think Graduate Studies Program . framing the decision by staging release of information.e.Faculty of Business. Simpson.J.4 The four strategies of influence: 1/ pre-persuasion: take control of the situation and establish a favourable climate for your message. sex appeal etc. leaving only W “The choice is W” • • This is also known as the ‘card stacking’ approach. Also. so X will be staying…” followed by a slightly raised eyebrow…suggesting that you might have thought he would have in fact been leaving! Such an approach is easily defensible. This refers to • • how the issue is structured (eg.. respond with “oh. so that the less optimal choice wins: Brand W X Y Z Special-Grip bottle Yes Yes Yes No Easy on the stomach Good Good Poor Excellent Pain-relief strength Very good Good Excellent Excellent • Four pain relievers are lined up in a row in a TV advertisement: • Which of these pain relievers gives you a special-grip bottle? (which pre-supposes that it is important to you and hence frames the question) – brand Z is removed from view. Orson Well’s ‘War of the Worlds’ 1938 radio drama) They include: Rumour: presentation of rumour as the guise of ‘news’ (as occurs frequently in the tabloids. the impact on the environment is mentioned far less than prestige.

pre-persuasion establishes “what everyone knows” and “what everyone takes for granted”. or trustworthy. this especially applies when the message is not considered to be personally relevant. or by focussing the target’s attention on a vivid and powerful image. be taken as a point of discussion. effective influence controls the emotions of a target and follows a simple rule: “arouse an emotion and then offer the target a way of responding to that emotion that just happens to be the desired course of action”. or by inducing the targets to persuade themselves. o • Remember. the target becomes preoccupied with dealing with emotions . Construct and deliver a message that focuses the target’s attention and thoughts on exactly what the communicator wants them to think about – for eg. soldiers in battle fighting to protect us and our children from whatever … or. • make certain that the message is personal to the target audience… (if you want to cast a broad net. and if framed generally enough to cover basic physical & emotional needs / drives.. and complies with the request in hope of escaping a negative emotion or maintaining a positive one. as in the student example above. even if it shouldn’t be. and this usually requires manipulating our emotions. and should. So.e. Hence. one can influence cognitive responses and processing and obtain consent without even appearing to be attempting to persuade us. that would preclude most from expending cognitive resources to analyses and perhaps refute the statement. which is the last strategy. wind etc. inducing the target (us) to persuade ourselves. like solar power. or possessed of whatever other attribute that would facilitate persuasion in a particular instance. instead. the communicator – or persuader – needs to appear to be likeable. and include ‘something for everyone’…) o This is where is where rationalising and cognitive dissonance come in handy also … i. employ the ‘Barnum Effect’. or that there may already be relatively simple / logical / available solutions – which the company already owns the patents on but would rather not use!) – it’s tempting to want to do what seems best and just rush in without thinking (show pictures of Master of Business Administration .e. by distracting the targets from arguing against the proposal. the communicator needs to establish a favourable image in the eyes of the target audience.. refer to our forefathers. A final example A company delivering an ‘environmentally friendly message’… “Protecting the environment for future generations is not a simple problem (pre-persuasion: already excludes ‘quick’ solutions which might come to mind. By establishing how an issue is defined and discussed.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 60 further. • Finally. If successful. To sum up – define the issue in such a way that you can’t help but win! • Source credibility – i. o Example.

Activities Note: The following activities are optional. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 61 ‘feral greenies’ being dragged away by police / chained to trees etc – use of classical conditioning & pairing the notion of green activist with dirty.A. That is. while company is actually working and being productive and contributing to society and providing jobs at the same time – hence emotion raised – hope . When you have completed this. You may wish to undertake some additional reading. but it takes time to find the right solutions (suggesting that tree huggers reacted without thinking – framing the issue). Kolb. J. Its role has really been a propaganda device: propaganda in a good and humanistic cause. do managers sometimes cling to theories which. pp. solutions which help the environment and provide jobs (emotional context. in The Organizational Behavior Reader. Graduate Studies Program . It clearly has little. but propaganda nonetheless'. while intuitively logical. are unable to be empirically substantiated? Activity 3. Also.5 Conger.and solution offered – we will provide jobs if you support us. Prentice Hall.M.and ambition to work for a company that shares that. New Jersey. which provides source credibility) we’re improving our methods (but you don’t say how – non-reason) and providing more funding for research into alternative energy sources than before (how much is that??? Was any money spent before??? Non-reason) Conclusion Keep in mind that these influence strategies rarely work in independently. 451-461). particularly prepersuasion.Faculty of Business.hence likeable & trustworthy . 2001. They are designed to help you develop your understanding of the various topics in this Course Motivation Consider the criticisms of Maslow's theory mentioned in the textbook. each is to some degree dependant on the successful use of the other strategies. unemployed. & I. Rubin. D. also can be linked with tree-huggers as ‘dole bludgers’. we’ve barely touched on the psychological processes which have been researched over the years and which are available to supplement these strategies. Osland. eds J. (See Chapter 16. listed below. Do you agree with this view? Why. in your view. socially irresponsible this in turn shapes the argument by excluding the traditional activist green approach).A. ‘The Necessary Art of Persuasion’.1 Consider the criticisms of Maslow's theory mentioned in the textbook. Upper Saddle River. which targets the message also) while we’re doing it switch to image of university graduate (expresses environmental concern .S. Reading 3. comment on Watson's rather scathing conclusion about Maslow: 'The significance of Maslow's work does not lie in its scientific validity.

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Activity 3.2 Find your personal motivating factors.

What are the major factors that motivate you to work? Some mentioned directly or indirectly in the preceding discussion of needs theories are financial security, non-financial material rewards, prestige, recognition, fear, self development, achievement, power and affiliation. Take 10–15 minutes to order these into some priority. Speculate how this list may have looked at two other stages of your working life and suggest the reasons for these differences. Consider the extent to which trends such as it describes relate to your own experience or that of other people whom you know. What do your conclusions suggest about the value of orientation to work approaches (with which this kind of discussion is broadly consistent) compared with other, more psychologically oriented approaches to explaining work motivation?

Activity 3.3 Apply orientation to work approaches to motivation.

Activity 3.4 Examine your organisation's practices to promote worker participation.

What practices, if any, does your organisation employ to promote worker participation in decision-making. What is the implied or explicit reasoning behind them? To get better ideas or to enhance worker satisfaction and productivity? Perhaps a mixture of both? To what extent do you consider that they meet their objectives?

Activity 3.5 Identify your career anchor and compare it with others.

Think back through your own career and identify your own career anchor. Can you narrow it down to one anchor, or are there several? Second, interview your immediate supervisor (if you have one) and another close associate, and attempt to discern their career anchors. Remember that they may not become apparent until mid-career. When you have identified your own, an associate's and your immediate supervisor's career anchors, discuss how you came to your conclusions. Finally critique Schein's (1978) scheme in terms of its practical usefulness to managers. As a further issue, consider the extent to which some career anchors are being affected by changes in the general economic environment. For example, in many fields the concept of the career ladder with a series of steps leading with reasonable certainty to middle and higher management levels has been under attack. Employees have been urged to think of developing a career in terms of broadening their experience rather than moving upward. People are commonly being advised to consider the possibility of three or four distinct careers in the course of their working lives. How do these issues relate to your experience and that of your supervisor and one or more associates? Do they affect the value of the notion of career anchors for you?

Activity 3.6 Are some career anchors disappearing?

Master of Business Administration

Faculty of Business, University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701

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With the four strategies of influence as a guide, create examples of organisational messages designed to be processed in the peripheral route (i.e., propaganda at work!) These messages can be intended to achieve any objective and directed at any audience: for eg, shareholders at the annual general meeting; a public press release; or the outline of an org. change plan; or simply a general motivational speech or for the more general purpose of (re)shaping org. culture. Analyse examples of propaganda from the national media and evaluate them in terms of the four strategies of influence. What was the target audience? Was the influence attempt successful? How could it be improved?

Activity 3.7 Propaganda at work: creating the message

Activity 3.8 Analysing propaganda in the general media

Think of some more tactics that can be used to achieve each of the above four strategies of influence Activity 3.9 Tactics & Strategies of influence Debate the ethics of the use of persuasion and propaganda in the workplace. Is it ever ethical to attempt to influence employees by using the strategies outlined above? Can there be mitigating circumstances? And who decides? Who benefits

Activity 3.10 The ethics of persuasion and propaganda

Graduate Studies Program

Managing Organisational Behaviour MGT701 Module 4 Organisational Culture, Power and Politics

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Module 4: Organisational culture, power and politics
'Organisational culture, power and politics' examines organisational culture: a phenomenon which is simultaneously one of the most ephemeral and difficult to come to grips with, and yet also the most difficult to change. We deal with the elements of culture – since it exists at various levels – as well as the controversies (practical and theoretical) surrounding how managers seek to deal with culture to improve the performance of their organisation. We also invite you to examine some elements of your own organisation's culture and the degree of 'fit' that this presents for you as a manager and as an individual. In the second part of the Module we examine another 'difficult' issue, that of power and politics. We examine what sources of power people have in organisations, and – from a personal, practical perspective – how you can improve your power-base.

Learning outcomes
At the end of this Module you should have: • • an understanding of the elements of culture a critical understanding of perspectives on culture, particularly how they inform views about whether and how culture can be manipulated as part of a deliberate organisational strategy an appreciation of national cultures and 'best practice' cultures as they relate to your organisation and Australia generally gained some appreciation of the ways your own organisational culture operates, and the degree to which this suits you both as a manager and as an individual an understanding of the controversies about power and politics in organisations, particularly the extent to which they are endemic and useful to organisational functioning an understanding of the sources of power some experience in analysing and applying sources of power at both a personal and an organisational level.

• • •

• •

Learning resources
Allaire, Y & Firsirotu, M 1984, 'Theories of organisational culture', Organisation Studies, vol. 5, pp. 193–226. Crozier, M 1964, The bureaucratic phenomenon, Tavistock, London. Deal, TE & Kennedy, AA, 1982, Corporate cultures, Addison-Wesley, Reading MA.

Master of Business Administration

Hutchinson. Hinings. Understanding organisations. Reframing organisational culture.. Martin. in Leadership and Organisational Development Journal. 623–647. Homewood IL. J 1985. 'Sociological aspects of organisational symbolism'. Graduate Studies Program . BH 1988. 623–647. Penguin. 'Transforming organisational values and culture effectively'. 'The bases of social power'. 'Organisational culture and counterculture: an uneasy symbiosis'. eds Frost et al. Organisation Studies. Newbury Park CA. Smircich. Sage. Dunford. no. Administrative Science Quarterly. 101–115. Harmondsworth. Grosse Point MI. J. pp. 'On the feasibility of cultural intervention in organisations'. D 1988. pp13–16.. eds 1991. pp. Hickson. D. Institute for Social Research. 'A strategic contingencies theory of intraorganisational circuits'. Sage. CC 1985. Schneck. Lee. Morgan. vol. pp. CA. RT & Athos. pp. Unpublished paper. JP 1979. C. BA 1986. Good Weekend. 24. pp. pp. in Sydney Morning Herald. V 1985. 22 October. Ann Arbor. eds Frost et al. Lundberg C & Martin. London. 'Introduction' in Reframing organisational culture. R & Lawrence. JD & Kleiner. vol. Pascale. 95–98. Sage. vol. G 1986. vol. 28. Organisational culture and leadership. JRP Jr & Raven. 216–229. 1987. Handy. pp. Administrative Science Quarterly. JM 1971. On a clear day you can see general motors. 1991. 7. French. in Reframing organisational culture. D & Martin. vol. Harper and Row. RW 1989. 339–358. 'An investigator's guide to workplace culture'. J & Siehi. The art of japanese management. in Reframing organisational culture. Organisational behaviour: politics at work. Irwin. New York. 1991. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 65 Degeling. RH 1982. pp. 31–38. Culture and related corporate realities. Schein. 'Corporate culture at Partnership Pacific Limited'. Beverly Hills. 'Cultural change: an integration of three different views'. TJ & Waterman. 1991. EH 1985. MR 1985. Organisational Dynamics. Louis. Sage.. Cartwright. Unpublished case study. New York. 1. Frost. Martin. Turner. AG 1981. CR. J 1987. 73–93. Meyerson. USA. Edwards. P.Faculty of Business. pp. Lee. CA. C 1983. Moore. RH & Pennings. DJ. Jossey-Bass. The making of melrosses'. Sathe. Journal of Management Studies. Simon and Schuster. pp. 16. P 1985. Wright Enterprises. vol. in Studies in social power. In search of excellence. Sage. BH 1959. PJ 1977. Peters. Wright. Lundberg. L 1983. Images of organisations. ed. Newbury Park CA. Macken. 12. 'The politics of organising and managing'. 150–199. Newbury Park CA. Newbury Park CA. 'Concepts of culture and organisational analysis'. San Francisco. L. eds Frost et al. 9. 169–185.

‘Uncovering the Levels of Culture’. They have been popularised by the writing of management gurus such as Peters and Waterman and the 'excellence movement' generally. D. while ideas about what constitutes an appropriate culture might differ. management thinking now consistently takes account of the fact that not only do organisations operate within a cultural/social context. 'values’. the ideas of organisational culture and organisational change have become buzz words of a more than usually enduring kind. Prentice Hall. Organisational Culture Textbook Reading 4. Since that time. (See Chapter 14. 2001.M. Nevertheless. they are also themselves culturebearing entities (Louis 1985). It is no longer even felt to be the most helpful view of culture for the best functioning of organisations. As a result. a cultural focus has in fact been part of some of the classics of organisational analysis. These concepts include the notions of 'meaning’.S. E. While this overt emphasis on culture and the use of terms from anthropology has been relatively recent. integrated set of values and practices that are shared by all members of the organisation.A. and even whether it is realistic to posit a single culture within an organisation. Kolb. which aimed to mobilise organisational culture in the pursuit of organisational success. This is a view which is now contested – or at least felt to be an inadequate description of what actually goes on in organisations. Power and Politics Page 66 4. In this topic we will examine the following issues: • • • • • elements of culture perspectives on organisational culture culture and the organisational lifecycle culture and strategy cultural change Master of Business Administration . it is appropriate to apply the concepts associated with cultural analysis – which originated in anthropology – to the interpretation of behaviour in organisations. textbooks and management thinkers generally were focussed on the organisation essentially only as a group of individuals who had come together for the rational reason that their combined energies and resources would lead to certain outcomes. we will examine varying views on culture. and 'beliefs’. Upper Saddle River.H. pp. Osland. in The Organizational Behavior Reader eds J. New Jersey. At one time. 'symbols’. and a change in the ways culture has been felt to be manageable. Peters and Waterman's research suggested that successful organisations should have a single. & I. In the first part of this Module.1 Schein.1 Organisational culture Introduction The very existence of the topic 'organisational culture' within this course is evidence of a shift in em-phasis within management thinking. Rubin.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. up to about the late 70s. Robbins' textbook Chapter 16. 398-405).

Graduate Studies Program . Values Values are less 'deep' than the taken-for-granted subconscious phenomena of basic assumptions. To take an example.1 Elements of culture There are no uncontested definitions of culture. below). However. rituals and norms. Smircich (1983) identifies five schools of thought. it is important to note that while they may provide an accurate picture of what actions may be taken in a given situation that may also differ. They include such items as: • • • • • • • the need for hierarchy the trustworthiness of people the basis of competitive success the identity of the market in which an organisation operates the competitive nature of the market how conflict is to be treated the importance of consultation. Changes in language may signal changes in the relative influence of professional groups.1. Allaire and Firsirotu (1984) identify eight. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 67 • societal and global workplace culture. have led to equally diverse conceptualisations of the term. not easily articulated interpretations of the nature of reality. values and artefacts.Faculty of Business. Espoused and actual values concerning innovation are a case in point. Artefacts Artefacts draw attention to culture as it is manifested in more or less observable forms and practices which can be 'read' to give clues about the values and beliefs underlying them. myths. the jargon of an organisation is a way of reinforcing distinctions between those inside and outside the culture (see the table on 'McSpeak' adapted from Macken 1988. Basic assumptions Basic assumptions are the taken-for-granted. ceremonies. 4. the diverse schools of thought within the originating discipline. Values are seen in expressed beliefs about how and why things are done. The classic cultural artefacts are those described by such terms as language. anthropology. Schein (1985) provides a tripartite schema that has been widely used in the cultural analysis of organisational activities: basic assumptions.

give-aways such as balloons. another form of SOC. pasting up staff performance levels. sneaking up on staff to check their work. staff who can cope with rush hour. the hamburger griller. big rubbish bin. a large Australian merchant bank. Where offices shared a common glass wall venetian blinds would be left down to maintain the seclusion. 34) knowing what the staff is doing. suggesting big servings of food if the customer doesn't specify size. gangs of keen staff. Artefacts may include such items as office layout. kicking butts nicely. the bottom part of a burger bun. p. moving staff to different areas of the store.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. mistakes. had for many years operated from a building where individual managers worked in their own offices. Planned maintenance systems. Power and Politics Page 68 McSpeak The following list notes a selection of terms used within McDonalds: Crew tracking: Rush-verified people: Cross-rotation: Performance discrepancies: 10 to 1: Staff observation checks (SOCs): Unannounced SOCs: QSC: Unit producing people: PIMS: Premiums: Corrective feed-back: Negative cliques: Positive cliques: Confidence cushion: Suggestive sell: Upsell: Dumpster: Pride chart: Hill: Crown: Travel path: (Source: Macken 1988. The McDonalds motto: quality. as the following example illustrates. Master of Business Administration . suggesting products to customers. bad attitudes. service and cleanliness. check up on staff. gangs of disgruntled staff. the top part of a burger bun. Office designed at Partnership Pacific Partnership Pacific Limited. staff involved in cooking or selling. walking around the store to check on staff and store. being nice to new staff. with doors closed.

This story had its impact in that it highlighted the ridiculous extremes to which deference to authority could be taken. The new office area had an open. with status indicated by the location of desk (managers next to the outer windows). However they may also act to undermine an opposing culture. They booked a suite in one of the city's better hotels. the door to the suite was too small to accommodate the refrigerator.) Graduate Studies Program . and lowering and shoving the refrigerator into the room through this gaping hole. The next day he was off to another city – and probably another refrigerator – while back in the city of his departure the sales people were once again dismantling hotel windows and removing the refrigerator by crane. as the example of 'the refrigerator' (see below) highlights. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 69 A newly appointed managing director wished to encourage more interaction. However. However. size of chairs and the shape of the wooden desk area. (Source: Wright 1979 cited in Martin and Siehi 1983). Interior architects were employed to design the office according to the new managing director's philosophy. He saw the physical layout as a physical and symbolic representation of a way of working that he wished to change. The new layout involved open plan offices. beer and fruit. rented a refrigerator. sandwiches and fresh fruit in his room to eat at night before going to bed. The refrigerator Division head John DeLorean expressed his opposition to the General Motors' cultural emphasis on deference to authority through telling the following story: While preparing for a senior executive's trip to a particular city. 'Pink noise' was fed into the office area.Faculty of Business. thus undermining the dominance of this cultural value. compared with the enclosed offices previously used. This was reinforced by the use of light 'modern' materials and styles in contrast to the 'mahogany and velvet' feel of the previous offices. (Source: Dunford 1989) Stories Stories may reinforce some predominant value in the culture as the example of the textbook illustrates. light and airy feel. The sales people planned to rip out the door and part of the adjoining wall but the hotel manager refused to allow this. putting them on the roof of the hotel. discussion and consultation within the bank. The bank moved buildings and $6 million was spent on establishing a completely new office layout. knocking out a steel set of windows in the suite. That night the Chevrolet executive devoured the sandwiches. the Chevrolet zone people learned from Detroit that he liked to have a refrigerator full of cold beer. which made it difficult for people not involved in conversation to overhear such a conversation. and ordered the food and beer. permission was given for their next proposal which involved hiring a crane and operator.

This is the perspective inherent in such definitions as 'the way we do things around here' or 'normative glue' (Deal and Kennedy. e. MCI. or in short hand descriptions of the culture such as 'innovative' or 'entrepreneurial’. Such a perspective leads naturally to the view that culture is relatively easily manipulable. Ceremonies Ceremonies.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. or rituals of punishment. through rituals of integration such as promotion or other forms of recognition or induction/orientation. The appearance of having undertaken a full and unbiased assessment of all information can lead to a ritual which produces the appearance of this having been done. such as disciplinary procedures or demotion reinforcement of values and beliefs in a similar way to the above • Master of Business Administration . 4. such as retirement dinners and speeches. even though in fact the decision had been taken in advance.1. Power and Politics Page 70 Rituals Rituals are routinised activities that maintain cultural beliefs and values. The strength of the cultural constraints inherent in such rituals is clear when someone transgresses the unspoken 'rules' about such rituals. there are others that are more subtle.g. Integration perspective The integration perspective treats culture as a unified phenomenon. Little attention is given to the fact that visionary leaders have frequently been at the helm of organisations. are formalised rituals. Integrationist portrayals of culture frequently concentrate on a leader as the source of cultural content. The various case studies of Wait Disney.2 Perspectives on organisational culture Given an understanding of the 'building blocks' of culture. Sathe (1985) provides an integration-perspective six-step model of how managers can control the character of the culture: • • • • pre-selection and hiring of members socialisation as per the textbook discussion removal of members who deviate reinforcement of desired behaviour. both in the sense that assumptions. and Time Warner in the textbook onwards are examples of this perspective. or do they associate randomly or even act against each other? Meyerson and Martin (1987) and Frost et al (1991) have identified three distinct perspectives on organisational culture: the integration perspective. 1982). fail. While 'Friday night drinks at the pub' is a widely acknowledged ritual. It is assumed that the vision of the leader permeates the culture and that the lack of a vision is tantamount to a message of impending organisational failure. the question arises as to what 'construction' results. the differentiation perspective and the fragmentation perspective. and in the sense that these various phenomena are consistent with each other and mutually reinforcing. which do. in fact. Do the blocks give rise to one integrated edifice where the various parts reinforce each other. values and artefacts are shared by all organisational members.

Martin and Siehi (1983) refer to three other typologies of subculture: Enhancing: those that manifest an extreme adherence to the core values of the dominant sub-culture. transient basis (Frost et al. whether such groups represent a dominant culture or a sub-culture.Faculty of Business. are important in this perspective. is likely to be on an issue-specific. values and behavioural norms to be diverse and resist easy explanations. The ambiguity/fragmentation perspective The differentiation perspective acknowledged at least some notion of shared meaning. It is clear that this perspective has strong links with the idea of transformational leadership. Differentiation perspective The differentiation perspective focuses on culture as characterised not by harmony and unity but by diversity and even inconsistency (Meyerson and Martin. gender and occupation. So the different cultures in different parts of the organisation's structure. the natural state is for meanings. the fragmentation perspective may appear to be an alternative to an analysis based on culture. Consensus. From the differentiation perspective cultural diversity and hence cultural conflict are taken as normal. Orthogonal: those where there is simultaneous acceptance of both the core values of the dominant sub-culture and of another non-conflicting set of values. even if it is attached to a sub-culture rather than across the organisation. it may not be the most useful if managers wish to understand the complexity of organisations from a cultural framework. but in a fluid fashion rather than organised around the existence of groupings. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 71 • cultural communication through artefacts such as stories and ceremonies as described earlier. Attention is given to sub-cultures rather than to the organisation as a whole as the key unit. there are no clear patterns. Rather. Graduate Studies Program . and those parts of culture that are imported into the organisation from the outside. focusses on the fact that espoused values and actual practices in organisations will often be different. To some. the differentiation perspective. Countercultural: those that present a direct challenge to the core values of the dominant sub-culture. According to the ambiguity perspective. when it exists. such as those of a profession. such as class. with its attention to those aspects of culture that are 'not for public consumption’. divergent views and confusion coexist. progress is made through the unique contributions of individuals rather than through groups. Typically. 1991). From this perspective. In addition. Communicating 'vision' to staff is also important here. 1987). While the integration perspective is neat and provides a view of culture as something that is coherent and manageable. rather than deviant or unusual. rather than an aspect of it. what is called from the integrationist perspective 'The culture' of an organisation is simply the dominant subculture. Consensus.

• • 4. powerful subcultures are likely to emerge. Maturity: In this stage an organisation may find that its culture no longer helps the organisation meet a more challenging environment. Clubs. and Fortresses. 4.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. After all. and the integrationist perspective has definitely come to predominate in most management textbook discussion. but forces for change occur when outside managers are brought into the organisation.4. • The Integration perspective attunes us to factors pervading the whole organisation as a result of certain factors. major restructuring or retrenchments of managers or employees. this can be difficult to do without major 'corporate surgery' that is. The fragmentation perspective alerts us to the importance of not assuming that attribution of meaning necessarily falls into set categories based on either the organisation or groups/sub-cultures. Growth: The culture retains the founder's influence often for many years. Thus the focus has included a strong emphasis on culture. so that we see organisationally pervasive culture as merely one option that may arise. However command of several perspectives leads to a more skilful and comprehensive analysis of organisational behaviour. Overarching shared views of culture will inevitably focus on common elements. personality. interest in organisational culture has been a recent phenomenon and has largely been due to the assumption that 'getting the culture right' has an impact on organisational performance. making it difficult and time-consuming to attempt to change the culture. and attempts may be made to revitalise the organisation and its culture. production or marketing.3 Culture and organisational lifecycle Edwards and Kleiner (1988) link the evolution of an organisation's culture to the stages of its lifecycle as follows: Establishment: The culture is strongly influenced by the founder's views. An example is the textbook's typology of organisations as Academies. diversifies its activities or divisionalises its structure. Briefly. etc.1. since it will inevitably constrain what we are likely to find. Master of Business Administration . The differentiation perspective attunes us to variation and diversity. As the organisation spreads its activities geographically. Culture and strategy As noted. Baseball Teams. Mid-life: The culture is now well developed. Power and Politics Page 72 The value of the three perspectives It is important to give due attention to the particular 'take' on culture that is being adopted in any discussion or action. way of doing business. for example. especially if they include a new leader. the interest in organisational culture emerged at a similar time to interest in Japanese industry and its startling growth and successes in the early '80s. According to Edwards and Kleiner. New people bring different assumptions.1. However it is difficult for people not to become attached to one view rather than another. The search for 'the secret of Japanese success' has tended to focus on how organisations operate overall rather than on technical areas such as finance.

You may wish to refresh your memory of these terms by referring to the 'HRM and conflict negotiation' heading 'Perspectives on conflict'. Equally. Lundberg (1985) is rare among the pragmatists in outlining some enabling factors that will allow cultural change to take place: • • external enabling conditions. while addressing initially the general and unplanned evolution of culture. If that standpoint is upheld it seems likely that some tension between subcultures could be healthy in terms of organisational performance. The message of virtually all of these writers is that a 'strong' culture underpins the organisation's success. culture is a variable. or to weed out people who do not fit the culture has become prevalent. the extent to which organisational culture is manageable is in fact a matter of major dispute. such as market conditions or society-level cultural factors internal permitting conditions. there is an important question here about the value of diversity in organisations.Faculty of Business. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 73 Reading Additional reading (not in the Reader). including the one set for this course. and will at some stage need radical overhauling. 4. The management literature since the 80s has been replete with advice about 'building culture' – the assumption is that one can choose and build in an attractive (designer?) culture. like structure or technology or marketing strategy. or that one can fill in 'culture gaps'. It would mean that organisations would be less likely to fall into the trap of freezing out alternative perspectives on their takenfor-granted assumptions and beliefs. For a detailed exposition of this case. see Module 2. a unitarist or integrationist perspective on culture is being taken. Deal and Kennedy (1982) and Peters and Waterman (1982). Thus advice to organisations to hire people who will fit in with its (positive) culture. Martin (1985) characterises the debate as being divided between the 'cultural pragmatists' and the 'cultural purists'.1. Cultural pragmatists argue that culture is a relatively manageable phenomenon. give attention to the 'how-to's' of changing or at least revitalising organisational culture. still suggest that organisational culture can fall into a rut. In Module 3 it was argued that it was both unrealistic and counterproductive to construe all organisational conflict as treacherous and dangerous. From this position. Once the link has been made between culture and success (or failure) it is only a short step to evaluating cultures as good or bad. a strong corporate culture has been nominated as the primary reason for failure.5 Cultural change While virtually all management textbooks. and that differences in viewpoint sometimes needed to be actively cultivated. Edwards and Kleiner. as when Burck (1986) argues that the dominance of a 'cando' culture in NASA stifled the open assessment of risk in the space shuttle program. For examples of this early attention to culture as an aspect of organisational strategy. see Ouchi (1981). Quite aside from the issue of whether it is appropriate to characterise cultures in such a simple manner. to be moulded and shaped more or less at will. which suggests that an existing culture may deviate from that which would best serve the interests of management. or help redirect organisational culture in positive directions. In all of these cases. Pascale and Athos (1981). such as the preparedness of some organisational members to invest time and resources in support of such change Graduate Studies Program .

Reading 4. whereby the vision is turned into a plan for the pace and scope of change cultural change action plans. Kolb. p179) cultural change strategy. & I.A. p 104) • • • To some extent. that is 'key organisation members with a raised consciousness of the need to redesign their culture enter into the non-ordinary task of making their present organisational culture explicit and sketching out a more preferred one'. ‘Three Cultures of Management: The Key to Organizational Learning’. there appear to be some common threads among organisations attempting it: • • • • • • determine the desired corporate strategy assess the cultural characteristics of the organisation forge a mission or vision for the organisation communicate the desired culture secure participation by managers and employees in the new desired culture and shape their behaviour with new job accountabilities. Where cultural change is argued to be possible. such as changed consumer demands or changed nature of staff cultural visioning. promotions. Prentice Hall. recognition. Many advocates of cultural change are arguing in favour of changing relatively superficial behaviours and norms.2 Schein. training. Power and Politics Page 74 • • precipitating pressures. Changing deep-seated.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. and not as a result of conscious decision.M. (Lundberg. Osland. 2001. E. 1986. and this makes cultural change – at least according to that definition – more realistic. changed and manipulated from the top down for specific cost effectiveness and productivity gains' (Turner. evaluating the truth of either position requires an examination of what definition of culture is being used. D. whereby the commitment to change and consolidation of the new culture occurs culture pursuits such as Turner (1986) argue that. They are scornful of 'pop culture magicians' who promise stunning changes in performance and sell the belief that corporate culture can be 'controlled. in The Organizational Behavior Reader. New Jersey. office layouts etc reinforce the desired behaviour by implementing salary incentives. eds J. 1985. pp. Master of Business Administration .H. it is laughable to talk about changing it. Upper Saddle River. 405-417). (See Chapter 14. given the fact that culture emerges over time as a result of myriad diverse influences. etc. even unconsciously held assumptions and beliefs is likely to be much more difficult.S. Rubin.

it relates aspects of work culture to what is felt to be needed to achieve world class best practice. Low High High High High Low Low Uncertainty Low Low High Low Low Low Low Individualism avoidance High Low Low Low Low High High Masculinity High High High High Low Low Low (Source: Hofstede 1980) The implication is that theories of motivation or related management theories developed in one country may be inappropriate when applied to another. beliefs. acquisition of money and things. That is. artefacts and behavioural patterns differ from national culture to national culture.1. The following is one suggestion about the features of world-class work culture: Graduate Studies Program . Societal culture is assumed to be integrated. so that shared values. On the other hand. The results for Australia and some other countries are presented below: National culture in four dimensions Power Distance Australia Hong Kong Japan Philippines Singapore Sweden U.S. and not caring for others. or differentiated into sub-societies. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 75 4.Faculty of Business. an alternative strand of thinking and research tends to stress what is common across all cultures and work places in a world of global competition. individualism/collectivism and masculinity/femininity.6 Societal and global workplace culture Another strand of the management literature on culture is concerned with the larger aggregates of organisations and industry sectors within national groups. as follows: • • • • power distance: the extent to which unequal distribution of power is accepted as right and proper uncertainty avoidance: the extent to which people feel threatened by ambiguous and uncertain situations individualism/collectivism: the extent to which people define themselves as autonomous individuals or through their membership of groups masculinity/femininity: the extent to which the dominant social values are assertiveness. uncertainty avoidance. The work of Hofstede reviews national culture in 40 countries across four dimensions: power distance.

initiatives for improvements in all directions industry-based unions. This is not to deny that excessive politicking can indeed be the drain on personal and organisational resources that we intuitively feel it to be. Theoretically. Each perspective has different implications for what change would mean and how it would be achieved. But to deny the reality – and the usefulness – of power in organisations. Chapter 13. Power and Politics. quality problems handled at the source multi-skilled employees self-directing. customer focus quality mind-set. 1991. information and support needed to make things happen. In other Modules we have occasionally referred to management as 'getting things done through other people’. shared goals short-term and long-term focus. is to rely on an unduly Master of Business Administration . discussed in Business Review Weekly.) Conclusion The perspectives on organisational and societal cultures are themselves diverse and aimed in different directions. and not the culture itself. If management is getting things done through people. But it may be interesting and instructive to examine the argument that the oppressive actions that we often label as power are more likely to be the result of a lack of power – that is. this is not the only possible view of power. p69.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. it is associated with changes within the organisation that affect performance. shared values. then it is possible to think of power as the fuel behind the action of getting things done. learning organisation. In other words.2 Power and politics Introduction Read Robbins' textbook. the lack of the supplies. it is often the act of negotiation of meaning of what the culture of an organisation or society is or should be. 11 October. Power and Politics Page 76 World-class Workplace Culture • • • • • • • • open style. it is easier to accept that power and politics – with politics defined as the exercise of power. strategic thinking and management rewarded (Source: Report on National Summit on Management Skills. which is perhaps the simplest distinction between the two – are not merely necessary evils in organisations. participative management flexible. However. 4. task-oriented work groups innovative organisation. every employer a 'supplier' and 'customer'. In the light of this definition. and in fact all of us would be aware of the drain on people's time and energy that comes through what we customarily call 'playing politics' or 'power struggles’. Textbook The textbook points out that power and politics are among the more 'difficult' and inadmissible topics in management.

the operation of power is simply part and parcel of the nature of organisations. It is also important to note that the divergent or conflicting interests and the resulting contestation being referred to here do not only arise out of the subordinate-superior relationship. In this topic we will examine the following issues: • • • • power 'to' versus power 'over' sources of power power strategies an Australian contribution to thinking about power: the arena model. Similarly. however. it is part of what it is to be an organisation. The textbook considers five broad types of power. but it is interesting to note how lists of power sources have grown with increasing Graduate Studies Program .2. That is. managers who enhance the power of people who report to them may not lose power. The tennis umpire has power at the match. but cannot transfer this to his or her job at the bank. but rather gain it as their subordinates become more effective. although such 'vertical' conflicts may be one important source. The 'power to' approach tends to assume that there is no necessary conflict of objectives within organisations. Either way. it assumes a unitarist stance on organisations. 'power over' refers to the ability of one party to impose its will on another. it is clear that at least at times there will be some contestation between conflicting parties. if we adopt the view that at least at times there will be divergent and conflicting interests within organisations. In other words. In the sense of 'power to' it is clear that power is not a fixed-sum game. which accrue from different situations: coercive power. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 77 mechanistic. There is a difficulty with the 'power to' approach however. In contrast. legitimate power. the power that someone has available to them in one situation is not necessarily available to them in another. conflict can also result from various horizontal relationships as well as vertical relationships. 4. within an organisation. As noted in the part of Module 3 on sources of conflict and hence power struggles. efficiency driven model of organisations which suggests that any intrusion of 'irrational' elements such as power or politics is an undesirable aberration. Put in another way. These are based on the categories originally proposed by French and Raven (1959). 4. In order to see the variety of sites or locations within organisations in which individuals or groups are likely to be involved in attempts to influence actions and outcomes. You might also want to review the traditional approach to conflict in this context. the influence that someone can exert in one situation will not necessarily be available in another. that everyone is working towards the same or at least compatible ends. In the derogatory sense of the term.2 Sources of power As we might expect. however.Faculty of Business.1 'Power to' versus 'power over' We might characterise the two interpretations as something like the difference between 'power to' and 'power over’. reward power. political behaviour does not simply occur within organisations.2. it is useful to consider sources (or bases) of power. in that it tends to assume that goal consensus always applies. expert power and referent power. that is. especially if there are limited resources available.

although staff's perceptions of the boss's competence may affect how readily the boss's requests and instructions are obeyed.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. networks and control Informal organisation' Control of counter organisations Symbolism and the management of meaning Gender and the management of gender relations Structural factors that define the stage of action The power one already has The following discussion represents a summary of some of the more important of the various sources of power. Power and Politics Page 78 interest in the topic. Note: this doesn't mean that they are necessarily the most important for any particular person. Master of Business Administration .197) Paton (1984) Position power Expert power Dependence power Control over uncertainty Stakeholder power Personal power Morgan (1986) Formal authority Control of scarce resources Stephenson (1985) Power over scarce resources Formal authority Information power Use of organisational structure and rules Control of decision processes Control of knowledge and information Control of boundaries Ability to cope with uncertainty Control of technology Interpersonal alliances. Note that this has nothing to do with competence. The following are the lists of power sources of five prominent authors in the field: French & Raven (1959) Reward power Coercive power Legitimate power Referent power Expert power Prestige power Hunt (1986) Authority Function Personal characteristics Intellect Charisma Interpersonal skills Access Wealth Connections Family Performance Referent power Reward power Coercive power Information power (Source: Dunford 1992. withholding of promotion and termination of employment. Reward power: This has both formal and informal aspects. Formal position is likely to involve some control over rewards both in the positive sense of additional pay and in the negative sense of coercion. p. The Activity following the discussion gives you the opportunity to consider your personal sources of power. Formal authority: the acknowledged right to give orders and make decisions.

Thus in a political view of decision-making the determination of the form items take in a meeting agenda. organisations involve specialisation. it has been pointed out that they were active in perpetuating their position of power by not allowing repair procedures to be recorded in written form. That is. or as an element in decision-making – may be as important a resource as any other.Faculty of Business. however. which are those within the organisation such as a breakdown in computer systems of production machinery. It is also important to note that expert power is likely to be due to the maintenance of the claim to legitimacy that a profession may make in specific areas. In more recent times. that those in power can act to perpetuate their centrality – power can define centrality. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 79 Control of scarce resources: The ability to control access to any resource that others value – including money. which considered the case of the maintenance workers in a continuous production process. employees with required abilities. and second. Hence the ability to control the flow of information can influence the very definition and understanding of organisational situations and create patterns of dependency (Morgan. even though he or she may not be paid as much as those seeking the access. As people move up the organisational hierarchy. has been eroded by the greater familiarity of people generally with computers. The amount of power increases with increasing scarcity and increasing dependence. not merely indisputable facts carved in stone.) Maintaining a broad overview conflicts with the demands and advantages of specialisation. once greatly enhanced by perceptions of the difficulty of programming work. (See 'Introductory topics'. including environmental uncertainty. The message is. That is. which relates to markets and the supply of needed resources. 1986). or indeed whether they make it onto the agenda at all. their formal power increases. materials. Expert power: To varying degrees. the sites of expert knowledge and the sites of formal position power are likely to differ. With this comes a degree of power relating to the expertise inherent in that specialisation. Power is enhanced to the extent that the coping ability both cannot be carried out by others (substitutability) and is critical to the performance of other parts of the organisation (centrality) (Hickson 0/8/1971). but also to the general acceptance that only a certain group has the right to pronounce on matters in a certain area. With the maintenance workers studied by Crozier. but they normally must forgo a mastery of all the areas of expertise represented amongst the people who report to them. Put another way. they took action to enhance their power situation. is a vital and particularly subtle form of power. not just vice-versa. Again. Even access to the CEO – since it may be controlled by the CEO's Executive Assistant – makes the assistant a powerful individual. first. Graduate Studies Program . technology. since it may suggest that positions of power are determined solely by situational factors beyond the control of the parties involved. perceived. The 11 strategic contingencies(tm) approach to explaining the various parts of an organisation sees this power as tied to a given part's capacity to cope with uncertainty on behalf of other parts of the organisation (Hickson et al. who were often in a position to stop the production process (Crozier. Information power:. 1964). scarcity and dependency are key factors. This approach has its critics. Control of uncertainty: Organisations are likely to face various forms of uncertainty. the power is due not only to the knowledge. customers – is an important source of power. however. that centrality and unsubstitutability are. The classic example is draw from research undertaken in France by Crozier. and operational resources. 1971). Information – about what's going on. the power of the central computing department.

at a minimum: • • • who is involved in the decision-making process. indeed they are not always known. Having skill in 'reading' the symbolic significance of apparently trivial issues such as office layout. So. control of what is discussed is an important source of power. but the rulers are also often constrained by rules. Indeed power is more accurately described as residing in the ability to have one's interpretation of rules accepted than simply in knowledge of rules per se. can gain one the reputation – and perhaps the reality – of being a skilled organisational politician. Network power: Formal or informal alliances and networks can form important power bases for members. How a decision is made is important. Gender: Morgan (1986) includes gender as a basis for power. We have already touched on this issue. or as a source of information. and doing what the rules require provides the rules with protection from arbitrary action. usually men. The ruled are of course most obviously subject to this form of power. Nonetheless. and hence on their power. but rather that a particular party is able to stifle discussion in either a real or a metaphorical sense. Moreover. the difficulty is not always overcome even if women adopt the dominant. the fact that a topic is off the agenda may not be evidence of genuine consensus. 'Working to rule' or working strictly according to one's job description and not doing the 'little extras' is an important source of industrial muscle. Or couching it in terms of a particular context. Power and Politics Page 80 Use of organisational rules and regulations: Rules and regulations are not always obeyed. defining an issue as a matter of corporate image or prestige rather than short-term gain may defeat an opponent's argument. a direct implication is that women cannot necessarily overcome a power Master of Business Administration . Control of decision-making: The relationship between power and decision-making is a multi-dimensional one. since identical behaviour on the part of women is not necessarily perceived or treated in the same way as when it emanates from men. provided the decisions have an effect. may undermine the arguments of others who oppose a course of action on the grounds of its effects on their particular part of the organisation. whether as a means to have certain actions taken. If this is the case. So. they may be invoked in support of. the form of an instruction from a manager – its penetration – has an impact on the discretionary content of the work of an employee reporting to that person. for example that the whole organisation is under threat. meaning may be able to be managed. Finally. The management and interpretation of meaning: We have discussed in the Modules which addressed leadership and organisational culture the power that comes from being able to define the nature of the situation that organisational members confront. It involves. how issues get discussed. The involvement of a person in decision-making gives the opportunity for that person to be influential. body language and so on. Finally. such as being closely connected to a company's major client. As noted in Module 1. Network power can also derive from influence in some powerful non work-related organisations. it is important not to see rules as subject to only one interpretation. but it may also be able to be interpreted. male-oriented behaviours. Moreover.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. or to prevent a particular course of action. or from specific extra-organisational relations. arguing that many organisations involved gender-related values that favour one sex. in an oblique way. what issues get discussed.

we have considered power as a function primarily of the situation. a network of those in his or her particular part of the organisation (the workplace arena) and networks beyond the boundary of the organisation (the professional arena. the capacity to create goodwill. Rubin.4 An Australian contribution to thinking about power: the arena model Pieter Degeling (1977) has used the model of organisations as political entities to develop an analytical model of the diverse interests. These involve the following: • • to enhance power is to increase one's power source(s). Osland. D.Faculty of Business. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 81 deficit by copying male behaviour because it is the interpretation.3 Power strategies+ Rather like the notion of power itself. 461-469). to enact power is to call on the potential inherent in one's power sources.’ in The Organizational Behavior Reader. Personal power: Thus far. as well as an individual's capacity to be a shrewd analyst of the situation and its potential. a manager may be involved in a network of managers (the corporate area). (Note that in many cases. By 'arena' is meant the idea that any one player (or stakeholder) is involved in. 4. Yet it is clear that. & Bradford. We often see it in terms of simplistic recipes guaranteed to solve all one's problems by revealing the secret of being powerful. D. enact power or challenge power sources. Reciprocity. not the behaviour alone. resources and relationships within them. without having complete control over their situations. • Reading 4. New Jersey. & I. and Exchange to Accomplish Work. pp.2. Other arenas are likely to form around particular issues. ‘Influence with Authority: The Ude of Alliances. generally. 2001. can all play a part. (See Chapter 16. however.R.2. Graduate Studies Program .L. recognises that power strategies indicate how individuals. several networks of relationships. power strategies or tactics are centred on actions. and have given little attention to the difference contributed by an individual.M. and so on. Upper Saddle River. Kolb. This involves taking action to utilise one's power sources. even given the same situational factors. it is not necessary to utilise one's power sources to have actions taken that are in line with your wishes. Interpersonal style. This is likely to be the most difficult strategy of all to pursue because it may involve questioning some fundamental and taken for granted understandings that most people have about what is right and proper.A. Just the knowledge that one has the capacity to coerce. A more sophisticated approach. the term 'power strategies' tends to get a bad press. are nevertheless active agents in the construction of the situation in which they are located. This involves developing either more of one's existing power sources or adding new power sources. the client arena). eds J. for example. Prentice Hall. which enhance power.3 Cohen. A. may be sufficient.) to challenge the role of a factor as a power source. Taken as a whole. 4. one person will not be as successful as another in a certain situation.S. For example. which produces the outcomes.

control of decision-making. and how to manage it. information. likely tactics and outcomes for each player in a situation can give a comprehensive view of the political strength of each.1 Examine your organisation's culture (I) Master of Business Administration . use of organisational rules and regulations. expert power. network power. is central to an analysis of organisational behaviour. They may be individuals or collectivities such as departments objectives constitute the intentions that lie behind action resources refer to the power sources available to a player tactics are the actions taken by each player outcomes are the product of the particular series of actions. Note that it is an analytical device rather than necessarily an accurate description of the exact process whereby outcomes are produced. or even to prescribe what action to take in a current situation. What shared views does your organisation hold about each of these? Do you have any way of checking these assumptions or do you 'just know'? Activity 4. the management and interpretation of meaning. The effect of these power sources needs to be understood in the context of taken-for-granted understandings to understand how they operate. Systematically listing the objectives. • • • • • players are the parties involved in the particular issue at stake. It can be used either to interpret a past situation or to predict the outcome of a currently evolving situation. A number of tools and strategies for both enhancing and challenging power add to the value of this notion as both an analytical and a practical tool. and gone some way towards removing the idea that the exercise of power is always detrimental to organisational functioning. Conclusion Having an understanding of the power and politics. there will be players. resources. control of uncertainty. Power and Politics Page 82 Within a given arena. Activities Note: The following activities are optional. objectives. membership of counterorganisations. Organisational culture Consider the list of basic assumptions above. There are a variety of power sources that include reward power. Political models of organisations have raised the profile of power as an explanatory concept. gender and personal power. resources.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. control of scarce resources. which are inherent in any organisation. They are designed to help you develop your understanding of the various topics in this Course. tactics and outcomes. The arena model is thus a form of power audit.

why have these differences appeared? Activity 4. the Caring Culture which reflects a parental "we will look after you" approach. and is preoccupied with "playing politics" as a means of attaining rewards. but they are insecure when the ground shakes. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 83 What evidence is there in your organisation for the existence of one or more sub-cultures? Activity 4. people are considered expendable. and this one from Handy's Understanding Organisations: • the Power Culture: often found in small entrepreneurial companies. the Role Culture: often stereotyped as a bureaucracy. the Exacting Culture which is orientated towards performance and success. the web can break if it seeks to link too many activities. and the Integrative Culture which reflects both a high concern for performance and a great respect for people. the Person Culture: exists only for the people in it without any superordinate objective. It words well where flexibility and sensitivity to the market or environment are important. not a parental approach. in which. The role organisation will succeed as long as it can operate in a stable environment. Barristers' chambers.3 Examine your organisation's culture (II) Are these differences in values associated with one or more sub-cultures? Activity 4. or perhaps a galaxy of individual stars. Its accompanying structure can be best represented as a net. although jobs are well paid. with some of the strands thicker and stronger than the others. but has difficulty producing economies of scale or great depth of expertise.2 What evidence is there in your organisation for the existence of one or more subcultures? What aspects of Schein's elements of culture did you use to help you come to your conclusions? Would you describe the sub-culture as enhancing. orthogonal or countercultural? What evidence is there in your organisation for differences between its espoused values and actual practices? If so. depends on a central power source with rays of power spreading out from that central figure. Relies on procedures and rules. Size is a problem. This perspective is in terms of the contributions they can make to the organisation. Power cultures put a lot of faith in the individual. Other examples include the following from Edwards and Kleiner (1988): • • • • the Apathetic Culture which lacks concern for both people and performance. families and some small consultancy firms are typical examples. and is coordinated at the top by a narrow band of senior management.4 Find the commonalities across typologies of organisational culture (1) There are several other typologies of (overall) organisational culture along the lines of the one presented by Sonnenfeld in the textbook on p 638.Faculty of Business. little in committees. • • • Source: adapted from Handy (1987) Graduate Studies Program . A cluster is the best description of it. The so-called "matrix organisation" is one structural form of the task culture. the Task Culture: job or project-oriented.

and how do they interact with the main culture? Using the argument of Edwards and Kleiner (1988) which links the evolution of an organisation's culture to the stages of its lifecycle.8 Devise your personal list of power sources Activity 4. Neither do they present mutually exclusive categories. summarising list of sources of power.10 Analyse the political content of a current or past situation. or the list of power sources we have just elaborated on. and that not all strategies lead to predictable outcomes! Master of Business Administration . Use the arena model to analyse a contested situation with which you are familiar – not necessarily one in which you are or have been personally involved.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture.5 Examine your organisation's culture (III). what might you do to improve your personal power? Activity 4. and how feasible are such changes? Consider the lists from the authors above. Compare the results to one of more of the culture typologies from this Module.9 What are the most important of your personal sources of power? Activity 4. Use the five authors' lists to assemble your own single. What subcultures. In addition. describe what organisational lifestage factors may be influencing the evolution and nature of your organisation's culture. Fill out the questionnaire from Robbins called "What Kind of Organizational Culture Fits You Best?" and score it according to the directions. Add any sources that you feel are inadequately covered in the lists given and comment on why you added them. Do the outcomes correspond to the analysis the arena model would predict? Why or why not? Remember that outcomes are not always worked out on the basis of a conscious decision or strategy. Describe your own organisation's culture at this stage of its history. Power and Politics Page 84 Activity 4. Now compare the results to the culture of your present workplace. Which of them figure among your own most prominent power sources? Which do not really rate as a source of power for you? Assuming you would like to increase your personal power in your organisation. and comment on the links between them. How well does your workplace's culture correspond to the kind of culture that best suits you? If there are discrepancies what aspects of the culture would need to be changed. if any. have also become noticeable. Consider the list of power sources you compiled from the previous Activity.6 How has the culture in an organisation of your choice been managed? Activity 4. They are unlikely to be exhaustive. since most things have the potential to be the source of power in some situation. to build up a picture of the kind of workplace in which you would feel most comfortable. comment on any items that you have combined. How has the culture in an organisation of your choice been managed? Where has the management been successful and where has it been unsuccessful? Why? Activity 4.7 Choose your preferred organisational culture.

in Robbins. which is clearly part of the essence of management.the second of Fayol’s management functions . an understanding of the characteristics of a boundaryless organisation and this structure's appeal. knowledge of the four contingency factors that influence organisational design gained an understanding of matrix organisations.is how an organisation's structure is created. • • • • Learning resources Anderson PA 1983. Instructor’s resource manual.Faculty of Business. 2000. I & Coulter. In the first part of this module. vol. 2000. Graduate Studies Program . In examining a variety of other approaches to decision-making we gain a broader and more realistic view of what makes a good decision. Management. 201–222. Administrative Science Quarterly. The process of organising . Bergman. both those that present themselves as variants on the model and more radical alternatives tested the applicability of the various models in your organisation gained an understanding of some common problems in decision-making and some ways of remedying them. Learning outcomes At the end of this Module you should have: • • • • an understanding of organisational structure and organisational design and be able to explain why they are important to an organisation. M. and how to achieve it. perhaps – how most decisionmaking fails short of the ideal or rational model. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 85 Module 5: Organisational structure and decision-making Overview The right organisational structure can play an important role in an organisation’s evolution and success. we examine – paradoxically. Prentice-Hall. Australia. and team-based structures and why organisations are using them. Bergman. R. R. Stagg. and be able to explain the concept of the learning organisation and how it influences organisational design. 28. In the section on decision-making. we’ll look at organisational structure dimensions and the concepts and contingency factors that affect decision making surrounding various configurations of organisational structures and design. an understanding of the rational model of decision-making and its practical limits an understanding of a variety of alternatives to the rational model of decisionmaking. pp. autonomous internal units. 'Decision-making by objection and the Cuban missile crisis'. S. project structures.

Canberra. March. Administrative Science Quarterly. R.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 86 Blum. Lindblom. 20. vol. vol. Feldman. vol. Mallory. Work organisations: a critical introduction. Cohen. Management. Macmillan. 2000. 15. S. 21–22 March. SP & Mukherjee. JG 1982). University of Chicago Press. Oxford. 'Why strategic management is bankrupt'. Australia. 17. HK & Degeling. Nov– Dec. Bergman. Robbins. Butler. DC 1986. PJ 1986. 19. GR & Wilson. DJ. D. vol. Understanding Local Government: ActionLinkage-Outcome. D 1990. Administrative Science Quarterly vol. JP 1972. D 1992. Master of Business Administration . Manufacturing consent. 26. 'Information in organisations as signal and symbol’. Stagg. JG & Olsen. D 1987. Prentice-Hall. 'Theories of choice and making decisions'. 'The science of 'muddling through' Public Administration Review. Robbins. Cray. M 1979. Colebatch. 78–88. CE 1959. Thompson. Weekend Australia Magazine. Melbourne. New Jersey. 1–25. pp. Hickson. 4–27. MD. pp. Organizational Dynamics. Managing organisations. Chicago. D 1986. P & McHugh. Basil Blackwell. Hurst. pp. Prentice-Hall. Burawoy. I & Coulter. pp. Canberra College of Advanced Education. JG 1981. 171–186. 'Ishtar'. Top decisions: strategic decision making in organisations. 'The garbage can model of organisational choice'. March. MS & March. 29–39. RJ. Society. pp. M.

Whilst this approach may not be suitable in all organisations. organisational structure is the formal framework by which job tasks are divided. In turn. and higher job turnover resulting from the inappropriate use (and abuse) of work specialisation and managers’ reluctance to allow employees to fully share in its actual economic benefits. it does answer Ericsson's need for flexibility as well as maintaining expertise in-house and an ability to share it across the organisation. it saves Ericsson from continually employing external consultants or contract workers.Faculty of Business. stress. The goal is to find structural designs that will best support and facilitate employees in their work. Other advantages of work specialisation included improvement in employees' skills at performing a task. In summation.1 Definitions of organisational structure and design While organising is the process of creating an organisation’s structure. It involves decisions about six key elements: work specialisation. Historically. fatigue. Ericsson created a highly organic section within the organisation's structure called the ‘Inside Partners Group’. Work specialisation or division of labour refers to the degree to which tasks in an organisation are divided into separate jobs. Textbook In this topic we will briefly examine the following issues: • • • • a definition of organisational structure and design the contingency approach to organisational design some applications of organisational design the implications of technology on organisational design 5. organisational design is the process of developing or changing an organisation's structure. At the same time. work specialisation was initially seen as the most efficient utilisation of workers' skills because workers would be placed in jobs according to their skills and (supposedly) paid accordingly.1. more efficient employee training. where employees and managers might both reap the economic benefits of efficient job design. However. increased absenteeism. and encouragement of special inventions and machinery to perform work tasks. with employee boredom. Chapter 15. work specialisation was viewed as a source of unending productivity improvements. poor quality of work. 'Foundations of Organization Structure'. span of control. For example. centralisation/ decentralisation. consisting of internal professionals who are available to work on assignments across the organisation. chain of command. and hence doesn’t just save employees from retrenchment but also provides an opportunity to attract staff who prefer the variety of working across the organisation. Graduate Studies Program . University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 87 5. rather than in a single long-term role. departmentalisation. lowered productivity. and formalisation. grouped and coordinated. Robbins' textbook.1 Organisational structure Introduction Organisations are experimenting with different approaches to organisation structure and design. the reality was usually different.

e. a limited information network. The applicability of each approach to organisational design depends upon the Master of Business Administration . on the other hand. Authority is the rights inherent in a managerial position to give orders and to expect the orders to be obeyed. chain of command. whilst Cross-functional teams – which are a hybrid grouping of individuals who are experts in various specialties (or functions) and who work together – are being used along with traditional departmental arrangements. high formalisation. Centralisation refers to the degree to which decision making is concentrated in the upper levels of the organization. employees have a lot of freedom and can exercise discretion in the way they do their work. narrow spans of control. less formalised organisation. The five major ways to departmentalise are Functional departmentalisation (i. On the other hand. 5. authority. and little participation in decision making by low-level employees. and clearly defined procedures. The chain of command is an unbroken line of authority that extends from the upper levels of the organisation to the lowest levels and clarifies who reports to whom. the skills and abilities of the subordinates. the nature of the job. Highly formalised organisations are characterised by employees with little discretion and high levels of consistent and uniform output. and this has been mirrored by a trend towards larger spans of control with decentralised decision making and greater employee discretion in their work. A mechanistic (or bureaucratic) organisation is an organisational structure that is characterised by high specialisation. An organic organisation. extensive departmentalisation. they must be grouped together in some way through a process called departmentalisation—the basis on which jobs are grouped in order to accomplish organisational goals. and Unity of command is the classical management principle that a subordinate should have one and only one superior to whom he or she is directly responsible. lots of organisational rules. Customer departmentalisation continues to be a highly popular approach. is a structure that is highly adaptive and flexible with little work specialisation. As organisations empower employees and as technology breaks down the barriers between organisational levels. minimal formalisation and little direct supervision of employees. and is important because it determines how many levels and managers an organisation will have. the mechanistic and organic approaches. Product departmentalisation (grouping jobs by product line). while Decentralisation is the handing down of decision-making authority to lower levels in an organisation. responsibility. and unity of command are not as significant in many contemporary organisations. Geographical departmentalisation ( grouping jobs on the basis of territory or geography).1. Responsibility is the obligation or expectation to perform. The ideal number of subordinates in a given span of control will be influenced by factors such as the skills and abilities of the manager. These organisations have explicit job descriptions. the strength of the organisation's culture.. grouping jobs by functions performed). Span of control within an organisation refers to the number of subordinates a manager can supervise effectively and efficiently.2 The contingency approach to organisational design There are two generic models of organisational design.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 88 Once work tasks have been defined. Process departmentalisation (grouping jobs on the basis of product or customer flow) and Customer departmentalisation (where jobs are grouped on the basis of common customers.

Faculty of Business. The original work on the strategy-structure relationship in organisational design came from Alfred Chandler.1. many of today's organisations are finding that the traditional hierarchical organisational designs aren't appropriate for the increasingly dynamic and complex environments they face. while in the project structure. The other option is the divisional structure which is an organisational structure made up of autonomous. or external boundaries imposed by a predefined structure. the horizontal. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 89 organisation’s strategy. But as an organisation grows. stability. Technology is also an important factor. From a systems perspective. Firstly. an organisation links its computers together Graduate Studies Program . the structure tends to become more specialised and formalised. in turn. specialists from different functional departments are assigned to work temporarily on one or more projects being led by project managers. 5. with obvious impacts on work and job design). Another approach involves autonomous internal business units. every organisation uses some form of technology to transform inputs into outputs. and low cost to maintain. vertical. In a matrix organisation. Then there is the boundaryless organisation. and hence organisational structure adapts to the direct application of technology. A response to this is the team-based structure made up of work groups or teams that perform the organisation's work. 5. Contemporary strategy-structure frameworks tend to focus on three strategy dimensions: innovation (which depends upon the flexibility and free flow of information of the organic organization). authority centralised in a single person. Its strengths are its flexibility. and imitation (which uses characteristics of both the mechanistic and organic organisation). clients. When contingency factors favour a bureaucratic or mechanistic design. and tight controls of the mechanistic organisation). whose design is not defined by. which is an organisational design that groups similar or related occupational specialties together. particularly with regards to how if affects communications. but a major is that it's most effectively only in small organisations. functional departmentalisation can be expanded into the functional structure. and. In a networked computer system. competitors. Information technology has radically changed the way organisational members communicate.3 Applications of organisational design A simple structure is an organisational design with low departmentalisation. its size. who maintained that organisational structure must follow followed organisational strategy. how communications affects organisational design. each with its own products. Finally. Two of the most important developments are networked computer systems and wireless capabilities (which are making it possible for organisational members to be linked anytime.4 The implications of technology on organisational structure and design Technology has had a profound impact on organisations and the way they are structured. employees are more permanently assigned to projects. speed.1. or limited to. cost minimisation (which depends upon the efficiency. However. one of two options is likely to be used. some organisations have adopted an organisational philosophy of a learning organisation—an organisation that has developed the continuous capacity to adapt and change because all members take an active role in identifying and resolving work-related issues. and profit goals. anywhere. self-contained units. and the degree of uncertainty in the environment in which it must operate in. and little formalisation. wide spans of control.

in The Organizational Behavior Reader. Reading 5. there are also time savings. Chapter 5. 'Perception and Individual Decision-Making' Textbook In the middle section or the chapter. Kolb. pp. electronic data interchange (EDI) (allowing organisations to exchange standard business transaction documents). voice-mail (where a spoken message is digitised. while virtual workplaces are offices that are characterised by open spaces. allowing for increased employee and organisational productivity. portable phones. leisure and family concerns. Robbins outlines the 'rational' or 'optimising' model of decision-making. more realistic alternatives to this model. (See Chapter 19. Osland. facsimile (or fax).2 Decision-making Introduction We tend to see decision-making as lying at the heart of management. the above options can remove geographic boundaries from both work and job design and the deployment of team-based roles. you may also wish to review Master of Business Administration . Robbins' textbook. thus saving time and money. & I. At this point. laptop computers. Also note that the discussion of decision-making in Robbins is largely bound up with decisions taken by individuals. it becomes clearer why the psychological and physiological limitations associated with bound rationality and decision biases make the rational model just that: a model. eds J. when aligned with an appropriately flexible organisational culture. a more optimal balance of work. From this. Prentice Hall. and.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 90 through compatible hardware and software. Examples include electronic mail or email. we think of a decision-action-outcome linkage as a chain of causality that is at the heart of the ways managers and organisations operate. D. transmitted over a computer network. Upper Saddle River. 527-540). So this part of the Module will essentially consider other. ‘The Organization Of The Future’. & Tushman. Rubin. which is usually taken as the starting point for portraying an ideal picture of decision-making by managers.A.S. and stores the message on disk for the receiver to retrieve later). 2001. 5. This is borne out by the textbook chapter on perception and individual decision-making. As a result. M. we also know from 'Introductory topics' that managers spend a good deal of time making decisions without being aware of all the facts available. Note particularly the list of conditions that need to be satisfied before it is even likely that the rational model would prevail. Telecommuting is a work design option in which workers are linked to the workplace by computers and modem. teleconferencing. and intranets (which are internal organisational communication systems that use internet technology and are accessible only by organisational members). movable furniture. not by groups.1 Nadler. That is. and allowing for better access to intellectual capital). New Jersey. D. Despite this. Properly employed. and electronic files.M. which allows a group of people to confer simultaneously using telephones or e-mail (and can also be used to form virtual groups.

We'd keep looking. '. [a movie starring Dustin Hoffman and Warren Beatty who play two down-andout singers who've gone to Morocco for a night-club gig and get caught up in foreign intrigue]. the logical course of action is to ensure that the marginal cost (time.Faculty of Business. Much of the movie was set to be shot on location in North Africa. A couple of production staffers were dispatched to Marrakesh with a blank cheque to find a perfect camel and four stand-in perfect camels. the company is forgoing a return on the funds that may be critical to the continued existence of the company. It also happened to be the first camel they looked at. So one of the first things the production needed to buy was a camel. In this topic we will examine the following issues: • • • • • alternatives to the rational model a new form of rationality? perspectives on what happens to information in decision-making the escalation of commitment improving decision-making 5. We figured what the hell. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 91 the discussion of the problems of group decision-making in 'Groups teams and leadership'. time and cost factors may mean that although everyone involves is agreed on what outcome is sought and how options are to be evaluated. Specifically. a satisfactory course of action taken now may be preferable to a 'superior' course of action discovered in six months time. recalls a production source close to the camel. For example. On the downside. we bought the very first camel we looked at'. they found a perfect camel for about $700. and lots of money'. 'We didn't want to back to the office and say.2. Graduate Studies Program .1 Alternatives to the rational model of decisionmaking Bounded rationality or 'satisficing' According to this view. For an example of this. 'We had lots of time to spend. money etc) of an extended search for alternatives does not outweigh the marginal benefit.. Opportunity costs also play a part in making early choices desirable. it needed a wide-eyed camel that would look blind on screen. factors may change in the intervening period to render the later superior option redundant.. The case of the perfect camel It was September 1985. see 'The case of the perfect camel'.. where the two superstars were to ride across the desert on a camel. Put briefly.guess what. below.. So they didn't buy it. and production was about to begin on Ishtar . Moreover. In a matter of minutes on their first day of talking to camel dealers and salesmen. there may be a tendency for decision-makers to reject solutions too easily found. We'll get back'. if a company delays investing funds in an available option expecting research to reveal a superior one. We told the camel dealer thanks a lot.

Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 92 Two days went by. The incremental model Lindblom (1959) also argues that the rational model is not realistic because 'it is impossible to take everything important into consideration unless 'important' is so narrowly defined that analysis is in fact quite limited. It is political in the sense that successful action is determined by action that has taken into account the contested nature of organisational activity. the incremental model involves only minor alterations to the outcomes. 'Sorry'. duty and rules'. like the bounded rationality model. he said. 49). p. the Master of Business Administration . 34) argues that incremental decision-making is influenced by 'the logic of obligation. the buyers agreed. The 'implicit favourite' model. The facial hair would be beige or brown. If only complete knowledge were available quickly and cheaply. This is because it is much easier to assess the significance of marginal changes than of significantly different alternatives. It was always something. optimality would prevail. rather than larger alterations to the decision rules. Every minute of a production staffer's time on a location shoot – at union wages with costly travel and hotels – is worth money. (Source: Blum 1987) The concept of bounded rationality is essentially a variant of the rational model. The humps would be too large or too small. in which collective action is constructed over time by the parties involved. As such they reduce the extent to which change disrupts the existing weave of understanding and commitments (Colebatch and Degeling. The camel buyers continued their search through the Sahara for the perfect camel and the necessary backups. This may mean that considerably superior options – perhaps identifiable if only minimal amounts of resources were expended – remain dormant. It is seen as a process of muddling through – assessing what is possible by taking into account the political reality of the situation. 'Remember us? We'd like to buy that camel of yours that we looked at the other day'. Similarly March (1982. the incremental model may be considered a variant of the rational model. and in which common objectives are the result of negotiation and bargaining. the conservative bias of incrementalism and satisficing become clear. In this way. The dealer shook his head. Lindblom's implicit view of the nature of organisations is a political one. (It's important to know that a camel search is no cheap date. p. 'Let's see if we can buy that first camel we looked at'. 'We ate it'. In particular. Just as bounded rationality involves smaller.) Finally they figured they'd been looking long enough. It assumes that decision-making is essentially a technical matter. they both mean that if present practices are satisfactory. So they went back to the dealer who'd showed them that lovely specimen. there is no particular pressure to look further afield. The models we consider hereafter do more than challenge the rational model on the grounds that it tends to be technically infeasible. In this classic article Lindblom argues that decision-makers are much more likely to make incremental decisions – decisions that do not vary greatly from the status quo. 1986. Again. But every camel they looked at suffered by comparison with that first exquisite camel. and days of it can cost thousands of dollars.

once a problem is identified. a more accurate description is that goals are discovered in the course of making a decision. On the basis of archival evidence he came to the following conclusions: Sequential yes/no choices: Whereas the rational model assumes that a decision involves choosing one alternative from a number of alternative. Other parts of the decision-making process thereafter. are really only bolstering a decision which was effectively taken some time back on an intuitive basis. defending the role of intuition in decision-making. Not making things worse: Whereas it is normally assumed that the whole point of making a decision is to solve a problem. 220) argues that these actions are neither random nor 'irrational' but are instead 'sensible adaptations to the demands of the task environment of decision-making'. arguing that instead of being an essentially irrational and therefore undesirable element in the process. if not the reality. it may actually represent the accumulation of experience and tacit knowledge being brought to bear on a problem. They are also linked by the tendency in our culture to de-value intuition. There is a clear link between the implicit favourite and the intuitive models in bolstering and. Anderson (1983. p. The implicit favourite model The textbook describes the 'implicit favourite' model in which. 'Discovered goals' are often produced through the process of arguing about various possible causes of action. Specifically he studied archival records on the workings of the Executive Committee of the National Security Council as they sought to determine what action to take to have Soviet nuclear missiles removed from Cuba. an early favourite alternative is chosen – sometimes without the conscious awareness of the decision-maker. so many decision-making processes must have the appearance of rationality. The intuitive model This model attempts to re-value the role of intuition in decision-making. He argues that in complex policy matters. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 93 'intuitive' model and the others acknowledge the impact of distinctly non-rational or political elements in decision-making. the evidence from Anderson's study suggests that decision-makers may be primarily driven by a search for a course of action that will not make matters worse. 'Global goals' start things off by identifying a situation as a problem. to genuinely consider all alternatives at once would overwhelm the information-processing capacity of decision- Graduate Studies Program . Discovering goals: Whereas the rational model assumes that identifying goals is the first step in making a decision. The decision-making by objection model Anderson (1983) undertook a detailed analysis of the 1962 Cuban missile crisis as a study in organisational decision-making. decision-making more commonly involved sequential yes/no choices over an array of compatible course of action. Rational analysis is still more defensible than intuition in management circles.Faculty of Business. despite appearing to resemble rational sequential evaluative steps. in the latter instance. but identifying something as a problem does not directly identify a solution.

These groups determine its basic purposes and are therefore the ultimate cause of what decision matters come to the surface and how they are processed. with a median size of 2. in terms of building more dams. When an organisation like a hydroelectric authority. its norms may determine: • • • what is mentionable or unmentionable what interests matter how things should be done. managerial and other employees. From this perspective the organisation and its norms are the framework for decision-making which fixes what topics are allowable and which are not.600 employees. Top decisions.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 94 makers. including its owners. main suppliers. there is a predisposition to find answers in terms of the ways such a group would normally solve such problems. 1986 book.. that goals discovery means that decision-making processes can begin without waiting for clarification of all goals. is asked to consider the problem of generating more electricity. 1972. organisation restructuring and take-over decisions. Master of Business Administration . Central to this model is the idea that an organisation is set up by and sustained by a 'dominant coalition' of powerful stakeholders. p.000 employees. an organisation is a collection of choices looking for problems. however. from the point of view of thinking about decision-making. as we have seen. In the same way. The result. and so on. The garbage can model Cohen et al. set out the results of 150 cases of decisionmaking. p. which is heavily staffed with hydroelectric engineers. issues and feelings looking for decision situation in which they might be aired. (1972.. the model points out that sometimes the solution exists before the problem. 3). 3) argue that: '. We know that the kinds of solutions and perspectives available for solving a problem tend to be determined by the skills and outlooks of those already there. A wide range of kinds of decisions were studied. main users of its products or services. we should be alert to the possibility that rather than the decision necessarily being activated by the existence of a problem. For example. in thirty organisations ranging in size from 100 to 57.. From this perspective. is that once again the usual situation of setting out to solve a problem and achieve goals is displaced. including new product launches. The 'top decisions' or 'political models' Hickson's et al. solutions looking for issues to which they might be the answer and decision-makers looking for work'. (Cohen et al. 'choice opportunities – occasions where an organisation is expected to produce behaviour that can be called a decision – can be viewed as 'a garbage can into which various kinds of problems and solutions are dumped'. This is not as odd as it first sounds. and that the risk avoidance decision is an uncertainty reduction practice. for example. This time. there are likely also to be situations where the problem is more like a convenient opportunity to apply perspectives and solutions that were present within the organisation well before the problem arose..

as a result of politicality. p. Involvement: the number of parties that become involved in the process of making a decision. clients Research and design Liaison Frequent Involvement Auditors Trade associations Shareholders Government bodies Suppliers Production Sales. which meetings expressed what views and which committees have yet to report. 'as the number builds up.. morale. so it becomes more and more taxing to remember who has yet to be asked and who was asked and what they said. Precursiveness: the extent to which decision sets parameters within which later decision-making is constrained. the decision-making process must be understood in terms of both the complexity of decision problems and the politicality of decision interests. market share) affected by the decision d) how long the consequences of the decision will endure. Graduate Studies Program . Trying to define a single individual as responsible for a decision is not an adequate approach. 44). but some stockholders in that group will tend to have more frequent involvement and influence – and hence politicality – than others. costs. 4. the interest groups implicated in any particular decision. The 'decision set' that is. 2. Politicality is the degree to which influence is exerted through a decision-making process on the outcome. 1986) What is important.Faculty of Business. 3. Infrequent Involvement Infrequent Influence Trades unions Competitors Purchasing Maintenance Personnel Frequent Influence Customers. 1986. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 95 Once the matter for decision has been determined. The table below shows the relative importance of various entities in the strategic decisions analysed by the researchers. is not so much 'the decision' as 'the deciding'. marketing Accounting Quality control Autonomous divisions (Source: Adapted from Hickson et al. and there is no decision that seems concerned only with technicalities and not with politicalities. Complexity has four components: 1. Rarity the frequency with which similar decisions occur Consequentiality the consequences of the decisions as indicated by: a) how radically a decision changes things b) the seriousness of something going wrong as a result of the decision c) the diffusion of the consequences in terms of the number of organisational aspects (for example. who may know what. As Hickson points out. will vary from decision to decision. what is significant and what can be ignored (Hickson et al.

1986) Application High complexity High politicality Medium politicality Low politicality Low complexity Medium politicality Master of Business Administration . and so the matter can proceed along recognised channels drawing on just the usual sources of information when they are needed.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 96 On the basis of their research. they involve formal meetings. typify a constricted process decision. They flow smoothly and a decision is reached relatively quickly. Decisions of medium complexity and low politicality are likely to be made in this way. which. Types of decision-making process Type Sporadic Characteristics Clearly discontinuous Dispersed Fluid Continuous Dispersed Constricted Slightly discontinuous Narrowly channelled (Source: Adapted from Hickson et al. are likely to be made in this way. Hickson et al. fluid and constricted. and dispersion. which help maintain the momentum. These vary in two ways: • • discontinuity. • • The table below presents the characteristics of the process for different levels of complexity and politicality in decisions. though complex. constricted processes are slightly discontinuous and narrowly channelled rather than dispersed. As a result: • sporadic processes are clearly discontinuous as well as dispersed. and while it may be spread around various people it is not particularly hard to access. such as the annual budget. They are characterised by multiple sources of expertise. Information needed for the decision exists. An example would be a decision about sources of finance for a major share issue. Highly complex and highly political decisions. While they are serious they have been made before. fluid processes are continuous and dispersed. such as the decision to launch new products. is not especially contentious. Typically. but there is a fairly high degree of confidence in the information provided. or the extent to which the process is spread throughout the management structure of the organisation. They involve many interests. variation in the quality of information and high levels of informal interaction. or the degree to which the process is smooth and unbroken. Decisions of low complexity and medium politicality. classified decision-making processes in terms of three types: sporadic.

Rubin.2. As we might expect. They argue that while the image of solutions and problems being thrown around together in a dented wheelie bin is a fun idea. eds J. 5. Hickson et al.A.3 Perspectives on what happens to information in decision-making According to Feldman and March (1981). is not adequate for dealing with the social process of reaching a strategic decision. An organisation is certainly 'a collection of choices looking for problems’. we often do not find that information: • • • • • is collected and analysed before the decision is made is actually used in making the decision additional information is only called for if available information is found to be inadequate is gathered in response to pre-determined information needs irrelevant information is not gathered. which is the source of both problem-solving rationality and interest-accommodating rationality. much of the information that is used to justify a decision is collected and interpreted. 2001. Osland. reject the garbage-can model. much of the information gathered in response to requests for information is not considered in the making of the decision for which it was requested. Kolb. and.H. (See Chapter 15. Graduate Studies Program . On the contrary.2. New Jersey. considered alone. ‘Two Decades of Research on Participation: Beyond Buzz Words and Management Fads’. the problem-solving rationality is only one possible kind.S. but decision-making does not lack all direction. 429-436). add to the critiques of the rational model. in their view. D. there is evidence that information is rarely used in the way the rational model would assume. Prentice Hall.Faculty of Business. 5. according to Feldman and Marsh: • • • much information that is gathered and communicated has little relevance to decision-making. & I. At least two other forms of rationality need to be considered: Interest accommodating rationality whereby action occurs having taken account of the significance of the various involved and influential interests. there is generally a hand on the steering wheel. given this wider definition of rationality. that is.2 Vroom. Rationality of control. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 97 Reading 5.2 A new form of rationality? Hickson et al.M. in The Organizational Behavior Reader. Rather. pp. V. but not by suggesting that rationality does not exist. Upper Saddle River.

further complicating the information-decision relationship. a desire to save face by retrieving a bad situation. That is. and the belief that past failure somehow makes future success more likely (the gambler's fallacy). including a disinclination to face the fact that one was involved in making a bad decision. collecting an apparent excess of information is not necessarily wasteful or inefficient. so it is likely that some at least reflects strategic misrepresentation. the ritualistic aspect of data gathering can be seen in the posthoc rationalisation of action already taken. this leads to an incentive to collect more information rather than less. less rational model of the world than the rational model of decision-making suggests: • • • information overload: Organisations are often unable to process all the information that they receive inappropriate data: The information may be the wrong sort. In similar vein. being seen to make a decision in the right way may be even more important than the quality of the decision. This escalation may occur for a number of reasons. all of which paint a more messy. Information that one receives is thus likely to be confounded by unknown misrepresentation’. Master of Business Administration . there would seem to be more chance of being criticised for having not collected enough information than for collecting more than was needed. escalation of commitment is the term used for situations where individuals become committed to a course of action in a way that nullifies the effect of information unfavourable to that action. complaints that an organisation does not have enough information to make a decision occur while available information is ignored. since it increases the perceived legitimacy of a decision and hence the likelihood of gaining support for its implementation. It may have no immediate relevance but services to reduce nasty surprises and to enhance creative speculation as to possible future directions. since decision-makers must often justify a decision after the event.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 98 • • • regardless of the information available at the time a decision is first considered. as opposed to the outcome. more information is requested. Finally. 5. but because it relieves anxiety. Again. surveillance: Organisations collect information as part of a general surveillance of their environment.4 The escalation of commitment In general. information is a weapon in the conflicts of interest within the organisation.2. There are a variety of reasons for this. incentives to gather data: Organisational procedures lead to the underestimation of the costs of information relative to its benefits. is important as a symbol of the rationality of the organisation. the relevance of the information provided in the decision-making process to the decision being made is less obvious than the insistence on information. Also. forecasting has become increasing important – not because it really makes things more predictable. information is ritual: The decision-making process. Accordingly. • • • It has also been argued that. in the face of increasing uncertainty. the political function of data: Information is often collected in order to persuade someone to do something.

In 'Why strategic management is bankrupt' Hurst (1986) reviews the history of the growth in strategic decision-making within managerial circles. he quickly reviews a number of the models already covered here and in the textbook. but presents a case for its demise. scanning the environment to identify relevant corporate strengths and weaknesses (SWOT analysis) setting objectives developing options selecting operating policies consistent with organisational resources and purposes developing action plans and timetables that take into account competitive responses. As Hurst points out. Hurst is referring to more than emotion. Hurst not only provides an interesting history of the development of strategic decision models. He suggests that many of the big decisions managers are faced with are described as strategic decisions.S. (See Chapter 15. He is invoking the need for ethical principles in decision-making. Hurst suggests that we need to abandon our notions of managers as decision-makers who must rationally solve the problems of the world. In so saying. Graduate Studies Program . one that like the reading by Nonaka. ‘How People Really Make Decisions’. highlights the negotiation of meanings about the organisation's mission as part of a non-deterministic creative management process. good managers know how to make decisions based on sketchy information. Reading 5. may have been exposed to include: 1. in The Organizational Behavior Reader. You will see that this non-avoidance of emotional issues plays a critical role in the remaining readings. pp. Hurst then presents an alternative model. Rubin. New Jersey. eds J. Prentice Hall. 6. Kolb. 2.Faculty of Business. G. is that such decisionmaking formats assume that organisations are like complex mechanical clock works operating in an environment that can be objectively determined by senior managers (or anyone else). Again. 5. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 99 5. 436-449). & I. 2001. Rather we must assemble teams to handle the total process to combine 'the two great human gifts – reason and passion'. Osland. does it in a particularly readable manner. steps for strategic management decision-making that many of the people above you in the organisational hierarchy.2. 4. these steps of strategic management evolved rapidly during the 60s and 70s. According to Etzioni. and periodically reviewing the strategy. and were used by companies facing logistical problems more complex and planning horizons more distant than they had previously known. They also do not avoid emotional issues. 3. as well as yourself.3 Klein. D. As such. Etzioni.A.5 Improving decision-making Etzioni (1989) provides some practical suggestions for improving managerial decisionmaking. The underlying problem for Hurst. Upper Saddle River.M. however. Planners such as Ansoff and Steiner became particularly strong advocates for the creation and spread of strategic planning units as central to management in all undertakings.

Consider a workgroup or organisation of your choice. it is also impossible to avoid the realisation that decision-making is imperfect also in the sense that it has a subjective. both by bringing the decision-making process closer to a rational model.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 100 Conclusion The latter part of Module 5 has mostly been concerned to point out how decisionmaking is imperfect in a rational sense. and by widening the definition of what is rational. and to point out how this might be rectified. This issue is examined further in the course 'International Law and Ethics for Managers' elsewhere in the MBA program. Can you think of a better way of organising? As organisations become leaner and meaner and their structures flatter. This seems to be pulling apart then putting together again.2 Re-building the organization (2) Activity 5. Activities Note: The following activities are optional. political.3 Re-building the organization (3) Today. define a chain of command and reporting relationship.1 Re-building the organization (1) Activity 5. multi-skilling and quality assurance. Finally. and how they can be valuable additions to the process. however. The latter part of the Module also examines ways in which more intuitive processes of decision-making operate. will this pose problems for organisations? If so. How might you restructure it to achieve the twin aims of greater organisational efficiency whilst also allowing for a more optimal work/life balance for employees? What structural. cultural and other difficulties do you envisage and why? Master of Business Administration .4 Apply the ideas of organisational structure and design to an organisation of your choice. moral component. How do these changes affect the organising function? Activity 5. Organisational Structure and Design In traditional organisation you divide up the tasks within the organisation. how can these problems be dealt with? Activity 5. then build in coordinating mechanisms so that various parts don’t get out of kilter with each other. many organisations are looking at issues such as job redesign. They are designed to help you develop your understanding of the various topics in this Course.

Faculty of Business. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 101 Decision making Cadbury claims that not making decisions may be the least ethical principal course of action.5 Compare the views of Etzioni and Cadbury on decisionmaking. Etzioni seems to argue that putting off decisions may be the most humble act. Activity 5. Graduate Studies Program . Which do you agree with and why? Give some examples from your experience. On the other hand.

politically-based. in the view of some practitioners fails to take sufficient account of the political realities of organisations. We devote particular attention to the 'organisational development' (or OD) approach to change management which is a particularly popular one. organisations – and the world in general – are changing more rapidly than ever before. we briefly look at the relationship between organisational behaviour and each step in the human resource management process. and the way in which they interact with organisational stakeholders. is at the heart of management and is the supreme test of good management. we briefly invite you to consider a range of reasons for the common observation that. both as an issue in change management and as an ideologically laden theoretical term considered and worked with Organisational Development (OD). and ask you to analyse your own and your organisation's preparedness to respond to this situation. and in organisational behaviour and HRM. and management issues of the future Overview In 'Organisational change’ we approach the issue of change which. organisational behaviour and HRM. Finally. again. you should have: • • • • • gained some practical and theoretical experience at dealing with change from a variety of perspectives analysed the phenomenon of resistance to change. every manager is involved with human resource decisions. Learning outcomes At the end of this Module. and contingency-oriented strategies for managing change understand the application of organisational behaviour to the HR process considered a range of issues concerned with the way changes in the world of work relate to management. Whether or not an organisation has a human resource department. Master of Business Administration . but which.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 102 Module 6: Organisational change. The effectiveness with which each of these steps are carried out will to a large degree be determined by the way in which managers view the work relationship.

8. M. Paterson. DC & Stace. Ulrich. Bolman. Robbins. 'Transformational and coercive strategies for planned organisational change: Beyond the OD model'. 'Choosing strategies for change'. D 1991. 57. pp. Australia. Future perfect. 9. Handy. vol. DA 1988. choice and leadership. McGraw-Hill. Pettigrew. Bergman. Kotter. vol. Management a political activity. The Futurist. Woodworth. Addison Wesley. Organisational Dynamics. WL & Bell. Graduate Studies Program . 'Bureaucratic reform by cultural revolution'. Basil Blackwell. sorcerers and OD consultants: parallels and paradigms'. 17–33. S 1987. C 1989. I & Coulter. Human Resource Monthly. Organisational Studies.. 'Witch doctors. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 103 Learning resources Bergman. JP & Schlesinger. pp. S. pp. LG & Deal. J & Mahaffie. Australia. vol. Melbourne. Organisational development behavioural science interventions for organisation improvement. Oxford. Coates. Bergman. Doubleday. I & Coulter. Englewood Cliffs. 6–13. 9–19. R. 317–334. February. TE 1991. Basingstoke. pp. Reframing organisations: artistry. 3. no. Coyle. Jossey-Bass. RM 1983. Reading. April. Stephenson. Jarratt. 'Future work'. 10. DA 1990. New Jersey. John Wiley and Sons. Canberra Bulleting of Public Administration. The change masters. EF 1982. Massachusetts.Faculty of Business. R. Organisational capability: competing from the inside out. Harvard Business Review. New York. Prentice-Hall. pp. San Francisco. S. M. messianics. Management. 1978. R. 106–114. DC & Stace. LA 1979. The art of the long view planing for the future in an uncertain world. J 1983. Management. French. A 1985. New York. CH Jr. vol. Management Review. Dunphy. T 1985. Schwartz. Prentice-Hall. Kanter. West Publishing Co. 2000. W & Nelson. Huse. Dunphy. W 1992. D & Lake. St Paul. Instructor’s resource manual. New York. 2nd edn. 2000. Davis. 'The end of the world we know'. Sydney. Management. Under new management: australian organisations in transition. P 1991. Simon and Schuster. JF. 25. Macmillan. vol. 2000. R 1979. Stagg. Stagg. in Robbins. JB 1991. The awakening giant continuity and change in ICI. 2nd edn.

or leadership or cultural phenomena. which has been at least as important in research. 6.1 Organisational change Introduction The management of change has been at least an underlying theme of every Module in the course. consumer preferences. legislation (for example equal employment opportunity. The first is based on the assumption of the Human Relations 'organisation as organism' metaphor. in which conflict.1. To refresh your memory of this approach. Organisations by their nature are sites of change. Another perspective.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 104 6. As we discussed in 'Control and decision-making' keeping an eye on all these sources of change is one of the reasons organisations put so much time and effort into scanning their environment in the hope of predicting and hence minimising the impact of such change. in this Module we will focus on two perspectives. For an organisation its environment includes such factors as competitors' activities. organisational change is referred to as organisational development (OD). the idea of the organisation as organism emphasises the related notion that it needs to adapt to ensure its survival. In this topic we will examine the following issues: • • • • perspectives on managing change the OD approach to managing change managing change as a political process contingency approaches to managing change. has been based on the view of the 'organisation as political system'. which have dominated the literature. Robbins' textbook. In this context. For example. However. resource costs and economic conditions (interest rates. are fundamentally influenced by comparisons between the nature of past. 'Management Issues of the Future'. whether incremental or revolutionary. process technologies. however. see the section on metaphorical perspectives in 'Introductory topics'. present and possible future practices. Chapter 18: Organisational Change and Stress Management. In the second part of this Module. Textbook Master of Business Administration . The first part of this Module seeks to highlight behaviour in the context of change and to identify ways in which people seek to manage the change process. we set out some of the forces which are increasingly acting on organisations from both the interior and the exterior which heighten the need for them to change and adapt. which predominates in this and most management textbooks. change and resistance to change are inevitable. and so on). As mentioned in Module 1. This is the perspective. the ways in which people act and react with regard to decision-making.1 Perspectives on managing change It could be argued that there are as many schools of organisational change as there are perspectives or metaphors of organisation. trade practices or dismissal laws).

to a marketing based structure. New Jersey. first. Consider tactics such as political lobbying.S. but it needs to be recognised as a very general and potentially simplistic idea. The second part of this Module will enlarge more on the latter type of change. The textbook makes a start by alerting you. For example. 562-576). University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 105 Reading 6. public relations and collusion between competitors as means to this end.Faculty of Business. Technology changes when the means of provision of goods or services is altered. & I. R. culture. Upper Saddle River. discontinuous and radical. strategy. within the arena of planned change. D. ‘Change is Everyone’s Job: Managing the Extended Enterprise in a Globally Connected World’. Focal points of change Common focal points for organisational change are structure. this says nothing about whether de-skilling or 'enskilling' is involved in such fragmentation but the possibility of one or other occurring is very likely. (See Chapter 20. to the difference between planned and unplanned change and. The 'organisational as political arena' model alerts us to the idea that there is likely to be considerable diversity in what various organisational participants see as the Graduate Studies Program . the discussion needs to be taken further to avoid an impression of organisations being simply passive recipients of the winds of change. In itself. in The Organizational Behavior Reader. for whom and where.1 Kanter. changing the level in the organisation at which specific decisions are made (centralising or decentralising) refer to 'Introductory topics' for further information about the effects of this type of change on managerial work. however. marketing) are located together. Kolb. which is referred to as 'first order change' and change that is multi-dimensional. Strategy changes when the underlying premises – generally set by senior management are changed. Osland. for example through computerisation. 2001. pp. Rubin. technology and job design. Job redesign occurs when the tasks or responsibilities associated with a job are changed. Structural change occurs when there is an alternation to the formal 'clustering' of tasks and responsibilities in the organisation.M. to 'reposition' a product in the market or to sell off 'non-central' aspects of a business and rely on subcontracting. A common reorganisation is to move from a functional structure whereby all the activities involved in a given function (e. organisations themselves may seek to alter environmental factors rather than themselves being the ones to change. which is called 'second order change'. Other common structural changes today include lowering the number of levels in the hierarchy.M. Prentice Hall.g. the differences between linear and continuous change. The notion that organisational change can be explained in terms of an organisation responding to environmental pressures is a useful one. Even so.A. where organisation is determined by what is produced. and their members reacting in concert to a clearly defined course of action. eds J. for example to expand an organisation's product base (diversification). multilevel. This may involve the further fragmentation of task leading to individual jobs becoming more specialised. Culture changes when the taken-for-granted beliefs and understanding of people in an organisation change.

a problem with this argument is that change within organisations is likely to be sought because somebody or some group is seeking it. rather than purely hierarchically imposed kinds. see Pettigrew (1985. p 555) as: the application of behavioural science knowledge in a long range effort to improve an organisation's ability to cope with changes in its external environment and increase its internal problem-solving capabilities.1. it is also a behaviour they may manifest. Resistance to change Overcoming resistance to change is an understandable concern of those seeking to implement change. 6. This means that it is not particularly productive to talk about whether it is either natural or unnatural to be either for or against change. and diverse interpretation of appropriate courses of action even where a common objective is agreed on. But in addition. organisations promise reform and stage a ritual drama called change (Bolman & Deal. p. change can play a symbolic role. While it is most common to talk of resistance to change as a problem that managers confront. Indeed.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 106 objective of organisational activities. 1991. 274). for managers to make strategic choices based on their own areas of competence and career payoff. It also usually assumes incremental rather than revolutionary change – an assumption that is a possible source of problems.2 The organisation development approach to managing change The term most usually associated with planned organisation change is organisation development (OD). it can be difficult for managers – and others – even to see the avenues for change which arise from areas other than their specific type of competence. Finally. one of the reasons change tends to be studied as an issue in itself (and the early studies by Coch and French go back to 1948) is to try to find answers to this perceived problem. For further discussion on change in terms of its political and cultural elements. It has been defined by Huse (1982. Exponents of OD also usually stress the importance of various forms of collaborative management. When external constituencies question the worth of existing practices. as is explained later in this Module. p. The textbook discusses this issue. as the preceding discussion makes clear. 281) points out. and there it is clear that the very real losses of status and position in the hierarchy that would come from some forms of change would be sufficient to motivate change that favours particular managers' career preferences. and fear of the unknown as 'basic human characteristics’. and indeed the textbook does this in citing habit. as the discussion in 'Control and decision-making' on the garbage-can model of decision-making pointed out. Master of Business Administration . 1987). as Kanter (1983. security. It is not uncommon. However. Reasons for resistance to change It is sometimes proposed that resistance is a natural response.

group tasks. interpreting it. the group and the individual people hold many false assumptions about individuals. challenge and interesting work organisational effectiveness and efficiency are increased when work is organised to meet individual needs for responsibility. Huse identifies the following assumptions within OD about the behaviour of people: • • • • most people want and need opportunities for growth and achievement when the basic needs have been satisfied. on the technology used and on the structure of the organisation. the appropriate view of conflict. rather than make pronouncements as 'experts' on the solutions to problems. most people will respond to opportunities for responsibility. and developing action plans for their own preferred courses of action. especially in the assumptions concerning individual motivation. survey-feedback. OD is also intended as an ongoing interactive process (French and Bell. groups and organisations that could be rectified through open confrontations many so-called personality clashes result from problems of incorrect organisational design (Huse. and interesting work personal growth and the accomplishment of organisational goals are better attained by shifting the emphasis of conflict resolution from smoothing to open confrontation the design of individual jobs. 256). p. However the focus on process remains central. • • • From this list it is possible to discern the strength of the Human Relations and unitarist thinking within the OD approach. discussing it. The change agent may undertake a preliminary diagnosis and data collection but from there the group takes charge of both problem and data. through the emphasis on the need for a consultative participative approach. and organisational structure can be modified to more effectively satisfy the needs of the organisation. and so on. process consultation and team building. 1982. Does OD work? The effectiveness of OD as a strategy for managing planned change has been difficult to assess for the following reasons: • the wide range of interventions to which the term OD has been applied means it is difficult to talk about a single overall OD effect Graduate Studies Program . University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 107 Doing OD Any given OD exercise is based on the application of one or more structured activities (called 'interventions') and it is typically orchestrated by a 'change agent' – generally an external consultant. The OD approach has traditionally emphasised and sought to enhance the process of learning by the group. To these classic OD approaches have been added interventions that incorporate a focus on structure.Faculty of Business. that is on the design of jobs. That is. challenge. These interventions include job enrichment (expanding the range of skills in a job) (see textbook discussion) and the greater use of teams. change agents have sought to develop problem-awareness skills and problem-solving skills among their clients. Robbins reviews a number of the specific technologies of OD. 1978). including sensitivity training.

226). The operationalising of the action research model (see the discussion by Robbins of action learning on pp. However. • • • • • • • As noted earlier. However other theorists of change management point to three other issues: the pace of the change. it relates to incorrect implementation rather than the fundamental characteristics of the approach. continuous rather than abrupt. whereby effective change is assumed to require small incremental steps. participation in the change process and power as an organisational issue. according to the prime proponents of OD. 730–731) early successes. or at least support from a higher echelon with subsequent top management involvement participation of intact work teams. but rather are due to 'mistakes or inattention' with regard to the following 'conditions for optimal success:' • • • • • perceptions of organisational problems by key people perceptions of the relevance of the behavioural sciences in solving these problems the introduction into the system of a behavioural scientist consultation initial top-level involvement. The pace of change is to be slow and steady. p. its originators French and Bell (1978. However.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 108 • • the Inability of researchers to distinguish clearly the effect of an intervention from that of other variables lack of clear empirical evidence: Few studies have been carried out with sufficient methodological soundness and incorporating sufficient numbers of organisations for conclusions to be drawn. that is. French and Bell's explanation of problem with OD is essentially 'technical'. including the formal leader. Master of Business Administration . 1988). educational philosophy about the theory and the technology of OD acknowledgement of the congruency between OD and many previous effective management practices involvement of personnel and industrial relations people and congruency with personnel policy and practice development of internal OD resources effective management of the OD process monitoring the process and the measuring of results. this assumes that there are no conditions that are so pressing that a rapid response is required. The pace of the change OD involves an 'ideology of gradualism' (Dunphy & Stace. failures in OD interventions are not an indicator of problems with the method itself. as Dunphy and Stace (1988) argue. with expansion of the effort stemming from these successes an open.

Schein (1985) presents the following range of strategies as useful aids to successful OD interventions: • present a non-threatening image by learning the range of acceptable arguments and cast proposals in these terms. participation will provide at most a way of confronting the political issues involved in change. first give attention to aspects that are small but important to the client. p. and the conclusions took no account of other possible explanations for the results. Power as an organisational issue OD practitioners have paid little attention to the 'organisation as political arena' metaphor in their approach to change management. Where proposed change conflicts too greatly with the interests of one or more parties. not a way of smoothing them away.Faculty of Business. A review of the original evidence for this claim showed that the evidence was thin. OD-based paper by Coch and French (1948) introduced a new paradigm for introducing change in organisations. 'strike while the iron's hot' – follow up a success quickly to cash in on the credit established. This may help to keep conflicts within manageable boundaries as well as allowing 'die-hard' resisters to be identified and monitored. However. research can provide the consultant with credibility and expert power in difficult situations. Overall. and not on issues that may lead to a more fundamental reassessment of organisational practices. • • • • • • • Graduate Studies Program . This does not amount to distortion. rather a presentation in a manner likely to increase receptiveness. a small experimental study may be viewed as non-threatening and its success may provide the basis for a more widespread application. especially those where the topics is particularly emotionally charged. even some OD practitioners have argued more recently that lack of attention to power has affected the efficiency of OD. as with the Interpretation of Hawthorne this may be a case of the perpetuation of management mythology. the experimental design faulty. develop information interaction patterns and regular formal contacts between change and staff members in line departments. thereby building up credit for larger. 531). seek to diffuse it by encouraging open suggestions and criticisms. more complex tasks. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 109 Participation in the change process A classic. perhaps too much can be expected of participation. diffuse opposition and bring out conflict – rather than stifle opposition. align with powerful other – develop support from both top management and key line managers. On the other hand. It means that management can greatly modify or virtually remove group resistance to changes (Coch and French 1948. and allowing them to make suggestions. It has been argued (Woodworth & Nelson 1979. 1988) that this has been to the advantage of management in keeping change focussed on individual and group adaptation. Dunphy & Stace. This paradigm was that of consulting workers in advance of the change.

produces a set of ten tactics that he argues can be used to enhance the prospects of successful change: • • • seek out quick successes so as to provide an easy reward for participants in the change if there is resistance. especially if too many cooks are spoiling the broth. Schein's approach. there needs to be a moratorium on critical evaluation expect to have to deal with three different situations at the same time: the old methods. We move now to a consideration of organisational change as a political process. rather than conversion or attitudinal changes use ceremony to gain recognition for both the profundity and the legitimacy of the various elements of change give assurances that those affected will be fairly treated. while 'grafting on' some attention to political dynamics to the key dynamics and assumptions of OD. 6. the longer the time span. • • • • • • • Master of Business Administration . there is a school of thought. Stephenson. 1980. take advantage of 'natural' occurrences to modify proposals for change without losing face go with the grain – use as much of the existing status and power systems as possible. the greater the probability of modification managers and employees who feel threatened need substantial support. and then push for more significant changes. 249). A typical tenet of this approach is that the method of producing change is not a critical issue 'because the ability to produce change is more a function of power – the ability to influence – than method' (Lee. it may sometimes be wisest to withdraw fro the melee.3 Managing change as a political process In contrast to the OD approach to organisational change.1. in similar vein. the in-between-not-certain and the new methods be prepared for the unexpected. build up their confidence. if a number of groups become involved in the change.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 110 • • start with a small change. incorporating elements of previously accepted arrangements into the new proposals stress structure modifications such as location. get key people on side. all claiming organisational change expertise. is a modification rather than a radical overhaul of the approach. p. it may help or hinder the change. the group that withdrew from the exercise may have retained or even enhanced its influence. and recognise that the response to this will depend in part on the previous history of similar assurances and in part on the perceptions of those affected by the change be realistic about the amount of time required for adaptation. which emphasises the inherent politicality of change. control and the division of labour. When the change program is assessed as less than successful.

Direct communication reduces the possibility of your message being distorted ensure that your personal behaviour is above reproach to avoid any incident being used against you. anxiety and uncertainty among some organisational members and hence counterproductive behaviour from the standpoint of those introducing the change. anxiety and transition According to Nadler and Tushman (1988) there are three types of problems that accompany any significant attempt at organisational change: The problem of power: the upsetting of the existence of the existing balance of power. Do not pretend to have knowledge you do not have Graduate Studies Program . To manage power. The problem of anxiety: the likelihood that the proposed changes will generate fears. To manage the transitional stage of the change you need to: • • • • develop and communicate a clear image of the future state use multiple and consistent leverage points use transition devices obtain feedback about the Transition State. To motivate constructive behaviour. you need to: • • • • create dissatisfaction with the current state obtain appropriate levels of participation in planning implementing change reward desired behaviour in transition to the future state provide time and opportunity to disengage from the current state. evaluate success. Wholesale destruction of the status quo Paterson (1983) is critical of the assumption inherent in OD approaches that change can be accomplished incrementally. you need to: • • • • get support of key power groups demonstrate leadership in support of the change use symbols build in stability. The problem of organisational control: the likely disruption to existing control systems during periods of change.Faculty of Business. All three need to be managed. He uses the headings 'Bases'. 'Strategy and 'Tactics' to outline a series of recommendations to destabilise the existing system: Bases • • • ensure that you have support from above speak directly and often to employees as a whole. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 111 Power.

589-594). Tactics • pace is the key tactical variable.M. ‘Rules of Thumb for Change Agents’. • • • • Reading 6. contingency approaches to managing change focus on the way the context does or should influence the nature of change practice. Use selection and training processes to improve desired skills handle industrial relations skilfully. New Jersey.4 Contingency approaches to managing change As with contingency approaches to leadership. act with competence and promptly in order that the old system doesn't benefit make the client your ally. Strategy • • • identify weak links in the current system that can be attacked at little cost for early victories. Rubin. 6. and Paterson. in The Organizational Behavior Reader eds J.S. but where the old system is involved. (See Chapter 20.2 Shepard. & I. such as proposed by Nadler and Tushman. which stressed the way variations in the situation should influence the style and/or tactics of the leader. Properly mobilised. If necessary attack by exploiting existing divisions identify individual strengths and weaknesses. Make maximum use of internal expertise but bring in external expertise in its absence reform senior management first. Master of Business Administration . Testing incumbents will speed up the departure of those who must go and build up the confidence of those who measure up. your average pace must be such as to defeat the adaptive processes of the old system.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 112 • • • build your prestige outside the organisation. D.A. Vary the pace on different 'fronts' to dictate the terms of battle timing should. Rather than relatively generic courses of action. Osland. Upper Saddle River. Reliance on the old industrial system should decline as managerial skills improve. pp. conform to a planned schedule for change never cease scouting for recruits. 2001. external pressures can be used against internal resisters.1. these approaches emphasise variation by context. Understand and use the media symbolic significance will be read into your actions.A. ensure that they convey the message you intend be well-read and well-practised in basic organisational and interpersonal skills. H. Kolb. as far as possible. Prentice Hall.

using resistance to change as the key variable whereby the context for the use of each is described. Style of change leadership refers to whether the change process: • • • • involves employees in decision about both the goals and means of change (collaborative). or is characterised by the use of explicit or implicit force (coercive). Scale of change refers to whether the changes are based on: • • • • fine tuning of existing practices. The key distinction is between the first two types and the latter two types. Kotter and Schlesinger's approach involves the following broad approaches: • • • • • • • education and communication participation and involvement facilitation and support negotiation and agreement manipulation and cooptation explicit and implicit coercion depending on the demands of the situation. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 113 The centrality of resistance to change Kotter and Schlesinger (1979) identify and discuss six approaches to managing change. or requires managers to consult employees (consultative). On the basis of these two dimensions. (Compare this to the textbook's distinction between first-order and second-order change). The latter two types involve discontinuous but substantial change. Fit. or small changes (incremental adjustments). which is organisation-wide (corporate transformation). The first two involve incremental approaches characterised by a series of adjustments.Faculty of Business. or major change. or major change in some part of the organisation (modular transformation). Dunphy and Stace define four change strategies: • participative evolution: characterised by incremental change and participation (OD strategies are typically of this type) Graduate Studies Program . resistance and urgency Dunphy and Stace (1990) have produced a model for change strategies that vary along two dimensions: scale of change and style of change leadership. or is characterised by managers issuing edicts based on their formal authority (directive).

the need to change is urgent. allowing for the possibility of both OD and political approaches depending on the external circumstances of the organisation and managers' capacity to judge them. the two change dimensions (scale and style) are continuous rather than discrete variables and that different sections of the organisation or workforce may be subject to different strategies. has the advantage that it takes into account the complex and non-deterministic nature of organisations. but key interest groups oppose substantial change. Master of Business Administration . on the other hand. or resistance and of urgency are treated as relatively unambiguous. the degrees of fit. 1983) according to Dunphy and Stace there should be a definite relationship between the circumstances of the organisation and selection of a change strategy. it could be soundly argued that the most important goal for present and future managers is to develop a progressive philosophy for managing our most important resource. These things are not incorporated into the model. The contingency approaches do something of both. key interest groups oppose change dictatorial transformation is appropriate when the organisation is 'out of fit'. Conclusion Despite the shortcomings of the organisational development approach. For example. the need to change is urgent and key interest groups support substantial change forced evolution is appropriate when the organisation is either 'in fit' but needs minor adjustment or is 'out of fit' and. 6. • • • The authors recognise that the model is necessarily a simplification. it is still regarded as a very attractive model for guiding change. people. and as a consequence. to a large degree. determined by the quality of the people who work for the organisation.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 114 • • • • charismatic transformation: characterised by transformative change and participation forced evolution: characterised by incremental change and non-participation dictatorial transformation: characterised by transformational change and nonparticipation. Specifically: • participative evolution is appropriate when the organisation is either 'in fit' but needs minor adjustment.2 Organisational Behaviour and HRM Introduction The quality of an organisation is. (This resembles the approach recommended by Paterson. With this in mind. The 'organisation as political arena' change model. the model is valuable in that it encourages reflection in regard to the change strategy-context relationship. Nevertheless. although time is available. They also recognise that managers have different 'interpretative schemes' and that this may limit management's recognition of the changes necessary to attain fit. or is 'out of fit' but time is available and key interest groups favour change charismatic transformation is appropriate when the organisation is 'out of fit'.

What's the alternative? Wasted minds? Uninvolved people? A labor force that's angry or bored? That doesn't make sense. Osland. Various studies have concluded that an organisation's human resources can be a significant source of competitive advantage. It also involves working with and through people and seeing them as partners. Prentice Hall." To become a highly performing organisation starts with being able to recruit and select the best applicants for various positions within the organisation. J. managers have to fundamentally rethink the organisation's workforce and how they view the work relationship.Faculty of Business. D. & Veiga. 6.2. (See Chapter 17. Upper Saddle River. not just as costs to be minimised or avoided. J.3 Pfeffer. had this to say about succeeding in today's highly competitive global economy: "If you're not thinking all the time about making every person more valuable. This is typically done through a human resource inventory or audit – i. Studies that have looked at the link between HRM policies and practices and organisational performance have found that certain ones have a positive impact on performance. 1999. use of employee suggestions and attitude surveys. Job training and personal and professional development are other activities that are also an important part of managing a company’s human resources. every manager is involved with human resource decisions. coaching and mentoring..1 Why HRM? Whether or not an organisation has a human resource department. what mix of skills & experience do we have? For example. Managers begin with a current assessment of the organisation's human resources and reviewing their status. & I.000-employee General Electric Corporation.e.2. pp.2 The Human Resource Management Process Human resource planning is the process by which managers ensure that they have the right personnel who are capable of completing those tasks that help the organisation reach its objectives. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 115 Jack Welch. you don't have a chance. and include self-directed work teams and total quality management. Reading 6. 471-484). In this topic we will examine the following issues: • • Why HRM? The Human Resource Management Process 6. New Jersey.A. in The Organizational Behavior Reader eds J. Kolb. To achieve this.M. such a report or Graduate Studies Program . These high-performance work practices are human resource policies and practices that lead to high levels of performance. the head of the 220. Rubin. ‘Putting People First For Organizational Success’. employee involvement and problem solving groups.S.

employees) is a result of demand – or estimated future demand . and employee leasing and independent contractors. early retirements. school placement. 3. and job sharing. Note that recruitment and selection AND decruitment both lead to ‘competent employees’ – the rationale behind this has been explained elsewhere as the importance of getting the ‘weeds out of the garden’. employers stated that new graduates were most lacking in communication skills (oral & written) and the ability to think critically – this is ironic. Morgan & Banks reported that in a national survey of Australian workplaces. behaviour.. Local labour market – for eg. transfers. reduced workweeks. which is an assessment that defines jobs and the behaviours necessary to perform them. or even internationally.for the organisation’s products or services. Developing a future program involves matching estimates of shortages of needed personnel with forecasts of future labour supply. identifying.e. From this. and attracting capable applicants. Demand for human resources (i. management can draw up a job description. Type or level of position – forklift driver. The selection process is screening job applicants to ensure that the most appropriate candidates are hired. training. specialised skills of each employee. advertisements. given that one might assume that those are the very core skills that universities might be expected to equip any graduate with… The major sources for recruitment include internal search. Recruitment is the process of locating. layoffs. or CEO? Size of the organization – family business or office of a national firm? 2. as the local supply is virtually non-existent. Decruitment options include firing. these considerations all interact. since any selection decision can result in four possible outcomes. public employment agencies. which is a statement of the minimum acceptable qualifications that an incumbent must possess to perform a given job successfully. Master of Business Administration . how it is done. if the University of the Sunshine Coast wanted a lecturer in org.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 116 database might include education. and why it is done. employee referrals. languages spoken. prior employment. What skills do employers want? In 2000. Obviously. they would have to advertise nationally. Sources for recruitment are varied and should reflect: 1. Future assessment involves a determination of future human resource needs by looking at the organisation's objectives and strategies. which is a written statement of what a jobholder does. From this information. It is also an exercise in prediction. Decruitment involves techniques for reducing the labour supply within an organisation. management can also develop a job specification. Another part of the current assessment is the job analysis. temporary help services. private employment agencies. attrition.

For example. Typically. psychological testing (eg. Reliability is the ability of a selection device to measure the same thing consistently. I think it is a rather common tendency for applicants to ‘over-state’ their abilities and achievements. aptitude.. and have no validity at all. Performance-simulation tests involve having job applicants simulate job activities. and hence interviewers should strive to validate the applications. Assessment centres are places in which job candidates undergo performance simulation tests that evaluate managerial potential. b) Interviews are very popular as a selection device although there are many concerns about their reliability and validity. There are numerous and varied selection devices to choose from: The application form is used by almost all organisations for job candidates. we might look at a range of activities related to a job. Therefore. these activities are observed by either assessment centre staff. for a selection test to be useful. A common objective of interviewing is too ascertain whether applicants have represented themselves truthfully. or who would have performed successfully (i. Written tests can include tests of intelligence. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 117 Correct decision = prediction that the applicant would be successful. or observing candidates as they sought through an in-tray. asking an applicant to perform data entry. intelligence testing. we want to reduce the probability of making accept errors or reject errors. Two well-known ones are: a) Work sampling is a selection device in which job applicants are presented with a miniature replica of a job and asked to perform tasks central to that job. Hence. assessing candidates motivational needs).Faculty of Business. such as leadership potential and the ability to lead a group. ability. Validity describes the proven relationship that exists between a selection device and some relevant criterion. it has been suggested that most information gleamed from an interview is forgotten within ten minutes of the termination of the interview. Graduate Studies Program . For eg. and that applicant later proved to be successful on the job. discrimination by using a biased test – which can also cost money and damage the firms reputation). Problems arise when we make errors by rejecting candidates who later perform poorly (accept error – which can cost money in terms of wasted selection resources and ongoing effects on org. Whilst carefully planned and structured interviews can have similar predictive ability to cognitive tests. it must be both valid and reliable. and interest. eg.e. performance). most interviews are unplanned and unstructured. more than just the cost of selection procedure. and/or a team of persons representing a cross-section from the organization. Here.

physically attractive candidates have an advantage over less attractive candidates – but for women. although neither racial or gender similarity appears to affect scores. Finally. same questions & situations for all candidates – this increases validity across interviews & helps ensure that info appropriate to the job & person specifications is obtained. interviews can be as predictive of future job performance as cognitive ability tests. Control the interview – give the candidate the opportunity to express herself & ask questions. the average applicant will score higher than if no applicant or a very qualified applicant preceded him. there is no evidence of their ability to predict job performance. • • • • • • If these suggestions and warnings are followed.e.. it is important to establish rapport and put them at ease.. In general. assume that someone is a registered psychologist simply because they applied for a job that required that qualification…. listen carefully and re-phrase what they say (as opposed to thinking about your next question). Master of Business Administration . it is dependant upon the level of position they apply for – for non-managerial jobs. and pay attention to non-verbal cues (body-language) – some people claim that these provide up to up to 90% of the total information. Also. Primacy effects – info presented early in an interview carries more weight than does info presented later. • Contrast effects – if a terrible applicant precedes an average applicant.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 118 Guidelines for employment interviews • establish a plan & standardise questions – i. but the reverse applies for managerial positions.) Recognise biases & stereotypes – if an interviewee’s personality & attitudes are similar to that of the interviewer.e. so it is really a two-way process … Questioning – be as objective as possible.e. Interviewers often make up their mind about a candidate in the first five minutes of a 15 minute interview – this also makes you wonder how much info they will retain after the interview if they make up their mind so early…. or job knowledge tests.. interviewees tend to receive higher scores. work sample tests. more attractive women score higher. but make sure that the objectives of the interview are reached. be aware of the applicants status & be respectful. Provide information – interviews are about determining job-fit. and don’t lead the candidate – don’t indicate the desired response Separate facts from inferences – and compare with other interviewers (i. interviewers are influenced more by negative information than by positive information (negative information bias) when interviewers are not aware of the job requirements. a panel as the main purpose is to find out about the applicant. These are the most commonly asked interview questions – although they appear to be preferred by HR staff. This will also help establish job relatedness by avoiding questions which are not related to any particular job. • • assign multiple interviewers – i.

and the organisation.Faculty of Business. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 119 Summary of interviews • • a flawed tool: the typical (unstructured) interview favoured by so many is almost useless in predicting employee performance. particularly large ones. The latter often involves outlining the history of the company and its founders and current key personnel – this also helps to establish the culture of the company (i. they also provide a baseline against which an employee’s future medical status may be compared against. Formal orientation programs are quite prevalent in many organisations. which include basic skills (reading. Interpersonal skills. The Federal Police might perform a records check to ascertain whether an applicant has a criminal record. Familiarise new employees with the job. Reference checks generally have little predictive ability of an applicant’s future job performance. as well as investigating records of overseas travel for both the applicant and relatives.e. writing. which involve the ability to interact effectively with coworkers and managers. it probably is a good tool for predicting interpersonal skills. 2. belief by managers that they know best – i.. 3.people who do best at interviews are those who have had more practice at them. the written and unwritten rules about how things are done at that company) Facilitate the outsider-insider transition. Physical examinations are often used for jobs with physical requirements. Orientation or induction is defined as the introduction of a new employee into his or her job and the organisation. 3. particularly in higher level positions. 2. Reduce initial anxiety and remove unrealistic expectations the employee may hold. math) and jobspecific competencies.e. Employee training is a critical component of the human resource management program. with this in mind. best. In the event of a claim for workers compensation. Technical skills. The major objectives of orientation include: 1. Problem-solving skills. Graduate Studies Program . • • Background investigations can be done by verifying application data and/or reference checks. and tests of general cognitive ability are amongst the best predictors of future performance. 1. while a computer programmer is not computing – they’re arguably only playing the role that they feel is expected of them.. while ASIO might perform more in-depth checks which could involve interviewing relatives etc. Work samples are appropriate for routine operatives. artificial situation . whilst assessment centres work well for mid to high level managers. Skill categories fall into three types. these may also include security checks (in Australia) by both federal Police and ASIO. which involve the ability to solve problems that arise. In the case of sensitive government positions. the work unit. and are able to decide who will fit the job & org. only they know what is best. and a manager at an interview is not managing.

films. For eg. working outside of a capital city like Sydney mean that my workplace was classified as a country area and I was paid less. when I was in the hospitality industry. That is. the higher the skill level. Whether or not a company is under awards or other statutory regulations in relation to wages and salary levels. but these need higher levels of knowledge & skills. Compensation and benefits How do organisations decide on the compensation levels and benefits that employees will receive? The purpose of having an effective reward system is to attract and retain competent and talented individuals who can help the organisation achieve its mission and goals. Management's philosophy toward compensation can influence the compensation system. For example. An example of this could be a flight or driving simulator. wage and salary addons. Flexibility is becoming a key consideration in the design of an organisation's compensation system.or capital-intensive. 2. Another factor is the kind of business the organisation is in (private sector versus public sector). One specific form of off-the-job training is vestibule training in which employees learn on the same equipment they will be using but in a simulated environment. Another factor is whether the business is labour. It can involve job rotation. and simulation exercises. What factors determine the compensation and benefits packages for different employees? One key factor is the kind of job an employee performs: Typically. and so usually demand higher rates of pay. do we “only pay what we have to” or. This was due to estimates of the cost of living. On-the-job training is extremely common. capital intensive organisations (such as the IT industry) need fewer workers to do the organisation’s work. which is on-the-job training that involves lateral transfers in which employees get to work at different jobs. The traditional approach to compensation reflected a time of job Master of Business Administration . Off-the-job training is training in which employees learn through classroom lectures. incentive payments. pay more where possible to attract and retain a committed workforce. and mentor or coach relationships. A compensation system can include base wages and salaries.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 120 There are two different approaches to training 1. and the employee's tenure and performance at his or her job can influence the level of compensation received. It can also involve understudy assignments. and benefits and services. Geographic location can also affect the compensation system. Other considerations include the profitability and size of the company. Many organisations have implemented skill-based pay systems in which employees are rewarded for the job skills and competencies they can demonstrate. the higher the pay.

The individual ranking ranks employees in order from highest to lowest. subordinates. and to identify training and development needs. The group order ranking groups employees into ordered classifications.Faculty of Business. Graphic rating scales method is a performance appraisal technique in which an evaluator rates a set of performance factors on an incremental scale.e. they might sometimes be carried out done in the absence of the staff member (and hence no feedback) and used for salary control. Behaviourally anchored rating scales (BARS) method is a performance appraisal technique in which an evaluator rates employees on specific job behaviours derived from performance dimensions. feedback from org’s on how they view employee’s performance. can also be used as a performance appraisal method. 4. there are some exceptions. 3.. Multiperson comparison method is a performance appraisal technique in which individuals are compared to one another. not employee development. There are seven major performance appraisal methods. Formal performance appraisals are a common practice around the world. No matter which performance appraisal method is used. Performance appraisal is defined as the evaluation of an individual’s work performance in order to arrive at objective personnel decisions such as merit pay increases. 8 pay grades with a range of $200 month to 3 grades of $700 month. 1.. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 121 stability. Critical incidents method is a performance appraisal technique in which an evaluator lists key behaviours that separate effective from ineffective job performance. and potential. i. and then makes suggestions for improvement. Accomplishment of objectives. One newer approach to performance appraisal is 360 degree feedback which is a performance appraisal review that utilises feedback from supervisors. they are looking to make pay systems more flexible and with fewer pay levels. and co-workers—the full circle (360 degrees) of people with whom the person interacts. such as that done in an MBO program. managers need to provide feedback during the appraisal review. 5. weaknesses. 2. This takes us back to management philosophy and org culture. Written essays method is a performance appraisal technique in which an evaluator writes out a description of an employee’s strengths. a) b) c) 6. But since most organisations must cope with dynamic environments. Graduate Studies Program . This can allow managers more flexibility when linking compensation to individual skills & contributions (i. An example of this is broadbanding compensation in which the number of job levels or salary grades is reduced – eg. However.e. when pay was determined largely by seniority and job level. past performance. 7. For eg. Paired comparisons compare each employee to every other employee and rate him or her as superior or weaker of the pair. without having to formally promote staff). There are three types of multiperson comparisons.

S. widespread internal changes have altered the idea of a traditional organisational career. abilities. in The Organizational Behavior Reader eds J.M. & I. The following classic reading has been selected as a way of introducing to you some of the most prevalent thinking about the ways organisations and ways of managing them are changing as we move into the future. who is responsible for his or her own career. Prentice Hall. ‘On The Folly Of Rewarding A. but what is the org responsible for – eg. (See Chapter 18. contract versus tenure etc. S. D. it is very clear what the employee is responsible for (results driven). Now. including for the future of management. 508-515). considering the difficulty of making predictions about the future. Upper Saddle River. 1995. The idea of increased personal responsibility for one's career has been described as a boundaryless career in which individuals rather than organisations assume primary responsibility for career planning. because it seems very one way – i. The most recent trends in career development have actually been in the reverse direction. and market opportunities. 6. There is no shortage of theorists of the future. the chapter on organisational change which was prescribed reading for the first part of this Module points out some of the trends which organisations appear likely to need to deal with as the new century approaches.. not the organisation. Osland.4 Kerr. This has also been termed as the “new employment contract” where employees have to make their own opportunities – but this impact on their level of trust in the organisation they work for. Nonetheless. career development programs were typically designed by organisations to help employees realise their career goals.3 Management issues of the future Introduction Perhaps wisely. it is the individual. While Hoping for B’. Rubin. known as the ‘sea change’ or ‘down shifting’. career goal setting. education & training. New Jersey. The optimum career choice is one that offers the best match between what a person wants out of life and his or her interests. Master of Business Administration .A. Career development A career is defined as the sequence of positions occupied by a person during his or her lifetime. Kolb. Robbins has not devoted a specific chapter to management issues of the future. pp.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 122 Reading 6. However.e. We need to look first at career development the way it was: In the past. where workers as young as thirty years or age (and less) have opted for increased time for family and personal interests at the expense of career progression and promotion.

2 Select leading indicators This approach relies for its success on the specification of quite different scenarios and consequently quite different strategies and possible outcomes. Scenario development is an approach of which Royal Dutch Shell has become an outstanding exemplar. 6. also called trend analysis or forecasting. there are many examples of second-order change which. the key to their success seems to be their philosophical approach to constructing scenarios.Faculty of Business. involves researchers making assumptions about future growth or development based on historical.3.1 Ways of predicting the future As noted in the chapter on decision-making. as follows: • • • • • • • identify focal issue or decision determine key forces in local environment identify driving forces rank by importance and uncertainty select scenario logic flesh out the scenarios tease out implications. and airlines using the approach to prepare pilots for various situations. resist the kind of prediction that relies on current trends extending in a linear manner into the future. However. Developing models. games or simulations that represent the future is familiar to us from the practices of car manufacturers using dummies to test safety features. games or simulations scenario development paradigm shifts. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 123 6. by definition. leading to quite different scenarios. Too often. true scenario developments assume the impact of various factors and hypothesise the range of outcomes along a variety of dimensions. Ulrich and Lake (1989) have identified four major methods that are used for arriving at predictions about the future: • • • • extrapolation developing models. managers are normally preoccupied with predicting the future in an ongoing effort to reduce uncertainty. While this seems plausible given that it is easy to assume that current trends will continue. Extrapolation. According to its supporters. well-documented occurrences. low and middle position on the future of their company or the economy. scenario planning is superior to other approaches because it focuses on: • being prepared for a variety of possibilities and having strategies ready for implementation once a particular trend becomes clear Graduate Studies Program . managers believe they are constructing scenarios when they estimate a high.3. According to Schwartz (1991).

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anticipating future needs and preparing the workforce, organisation, customers and suppliers for how to deal with them constantly questioning old assumptions about the world. This allows managers and employees to develop the skills needed to copy with new situations.

Paradigm shifts are difficult to illustrate from present experience because, by definition, they involve moving beyond present ways of thinking. Davis (1987) invites us to think 'outside present paradigms' in the following example: What if we shifted the management paradigm from one which believes that the essential management task has to do with people, capital and technology, and treats time, space and mass as obstacles to overcome, to a paradigm in which time, space and mass are the resources to be managed? At first sight this is difficult to understand, but Davis's specific examples help. Managing time better is the hallmark of a lift company that installs computerised diagnostics to alert the service team whenever a malfunction occurs or a component requires service. This means that service engineers can visit the site to rectify the problem or performance maintenance before the client even knows a problem exists. Manufacturers of office equipment can adopt similar approaches.

6.3.3 Changes in the world of work
Several major shifts are upon us now or are looming large in the world of work whether we face Drucker's new realities, live in Ohmae's border-less world, Handy's world of unreason or Drucker's post-capitalist society, embrace Peter's newly liberated world of management, or accept Naisbitt and Aburdene's megatrends. The following list gives some idea of the magnitude of the changes: • • • • • • • • • • • • • • Transition to the knowledge economy Globalisation and internationalism: Increased competition Deregulation Removal of business barriers internationally Relocation of work Shifts in world gross domestic product New organisational structures: Changes to the way work is organised Rearrangements to the nature of employment Changes to the mix of industries Rapid technological change Shifting demographics Environmental issues

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Many of the most successful companies in the world, including those nominated in Peter's work on 'excellence' in the early 1980s are fighting to survive a decade and a half later.

Economic and social shifts
Crawford (1991), outlines the characteristics of four basic societies. The one we are moving into, the knowledge society, started in the late 1960s and early 1970s. Its critical variables are knowledge and information, and it is felt likely to be the dominant economic and social force over the next 20 to 30 years. This new world will be characterised by access to instantaneous information across the street or around the globe, and the added value of information to all aspects of industry. Knowledge becomes the most important asset for the organisation. The resources that hold and can apply the knowledge, that is, the people, become the most vital asset a company can have.

Globalisation and internationalisation
Large numbers of companies now regard the world as one huge market. Car manufacturers, television and news networks, consumer goods companies, banks, insurance companies and airlines enjoy a reach and market penetration that takes them to every corner of the globe. Coates, Jarratt and Mahaffie (1991) point out that in the future mergers and acquisition will continue, with more international actors involved, aided by the enhanced flow of capital that globalisation makes possible. From an Australian perspective, globalisation means an effort to expand operations into world markets, particularly Asia which, despite the recent recession, is witnessing rapid growth (23% of world GDP now and projected to be 30% by 2010). But as well, we can expect the shape of work and industries in our region to be conditioned by large multinational companies to seek to invest here. They will bring a diverse cultural set, different loyalties and objectives and will focus on issues that we may not regard as being in our best interests. Yet we have little choice.

Reading 6.5
Donaldson, T. & Dunfee, T.W. 2001, ‘When Ethics Travel: The Promise and Peril of Global Business Ethics’, in The Organizational Behavior Reader, eds J.S. Osland, D.A. Kolb, & I.M. Rubin, Prentice Hall, Upper Saddle River, New Jersey. (See Chapter 5, pp. 131-144).

Where will work be located?
Organisations will continue to look for ways to reduce the costs of housing large workforces in prime city locations. As communication technologies become faster and more reliable, options such as telecommuting will become more common. The benefits sound wonderful: the ability to choose our own hours, communicate regularly and efficiently with colleagues across the street or around the world with equal ease, minimise travel time and spend more time with our families. However the reality remains very different, at least so far, for the following reasons: • technology has not been fast, reliable, cheap or efficient enough to allow the average person to work from home

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the glamour of independence has faded once the realities of combining family responsibilities with paid work set in loneliness is increased; the incidental social discourse that occurs as a necessary part of people's day at work disappears.

New organisational structures
Handy (1989) and others predict significant changes to the structure of organisations. The 'Shamrock Organisation' is a phrase coined by Handy to reflect an organisation arranged as a central core of staff and skills, supported by external or part-time workers as and when necessary. He asserts that the shamrock organisation is not new, but is becoming increasingly popular. Building on the work of Atkinson, Sadler identifies three different types of flexibility needed by the organisation of the future: Functional flexibility: the ability to redeploy skilled people between the tasks and activities of the business as required. Numerical flexibility: having the right number of people available to do the work at any time. Financial flexibility: The ability to adjust wage and salary costs as needed. Organisational structures such as depicted in the diagram based on Sadler allow organisations to pay for people they need them. A further structural consideration – in the broadest sense – is the increased prevalence of strategic alliances and linkages. Kanter has coined the phrase PALS: 'pooling, allying and linking’, to highlight the idea of companies collaborating with each other.

Changes to the mix of industries
Handy points out that thirty years ago nearly half of all workers in the industrialised countries were making or helping to make things. In another thirty years he projects that it may be down to 10%. It is also important to note the blurring of the former clear distinction between manufacturing and service industries. Incorporating permanent press fabrics into clothing is one of many examples of how manufacturers an build service directly into their products (as are self-diagnostics in any electronically controlled equipment).

Shifting demographics
Several different but related changes are occurring in the demographic makeup of the industrialised world: • • the 'baby boomers' are ageing. As they enter middle age and later they are poised to become the dominant group in society older people are becoming a larger part of society, living longer and in better health than previously. As a result they are wielding greater influence politically, socially and economically birth rates are failing almost everywhere

Master of Business Administration

University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 127 • • • women are tending to have their babies later. it has also been argued that some skills have been Graduate Studies Program . such as job sharing and work sharing (where some or all of the workforce temporarily reduce their hours to avoid layoff) retirement options. which are currently not well practised in most organisations. where people who had worked on the land needed to be retrained to use machinery in factories. They also return to paid employment faster than their mothers and grandmothers migration patterns continue to add to many countries' cross-cultural workforce more women are emerging into senior ranks of the workforce through sheer weight of numbers. One of the key skills that people will need to learn is team skills. Environment issues Some authors argue that environmental considerations will be the greatest single source of influence on the way organisations do business in the 21st century. In addition. including phased retirement. the move to the knowledge economy will similarly require retraining for a workforce which will comprise 70%–80% 'knowledge workers’. Some companies are already converting formerly wasteful and environmentally harmful activities into potentially profit-making ventures. especially in two-career families. and also for managing diversity in the workplace many more of the male-oriented policies in organisations will be challenged and changed. child care and elder care. Implications of these developments include: • • • • a changing balance between the number of people receiving pensions and the number in the paid workforce whom can support them older people will alter buying habits and consumer preferences organisations will need to develop more flexible policies on parent leave. These include: • • • • different ways of working the hours. including both regular and irregular forms of part-time work with and without benefits equivalent to those of full-time employees sharing options.Faculty of Business. Implications of change Retaining and ongoing development In a situation analogous to the industrial revolution. Flexibility in work practices A range of different ways for people to do their work will need to be devised. part-time work and early retirement. such as flexitime and compressed work weeks part-time work. and yet are among the most necessary given the demands of the new economy.

and management practices to support success in this arena are the exception rather than the rule. active searching out of the right people will be more prevalent than at present corporations will adopt new programs to support employees' family responsibilities reward structures will undergo significant revisions to accommodate non-financial rewards. such as parental leave and other leave options. • Growth in Service industries Not everyone will wish to or be able become knowledge workers. Master of Business Administration . Coyle (1992) suggests the following questions to guide international placement: • • • is the international relocation short or long haul? is it to a remote area or a city location? is it to a Third World country or a developed country? Are the cultural differences between the home and host cultures significant or subtle? • • • is language ability a criterion? does the job involve knowledge of the management cultures of local nations? is the person being thrust into a supportive corporate culture? Implications for HRM Several fundamental changes will occur to the business environment as a result of demographic and other change: • • • workforce planning will occupy a larger share of corporate budgets. cleaning. work done or some combination will come to the fore empowerment will become the basic approach for team leaders and managers. and productivity awards. Managing the International Environment Identifying and relocating executives able to perform well in the new global environment is a pressing issue. not necessarily for a specified purpose. Choices between rewarding employees on the basis of competency possessed.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 128 'downsized out' of organisations in the push to cut costs in the 80s and 90s. and that some of those who have retired will need to be enticed back to the organisation • leave. transport. Retailing. catering and leisure are all industries with large requirements for competent but semi-skilled workers. The failure rate for expatriate personnel is unacceptably high. rewards for individuals and teams.

Did any of these arguments hold true in the instance of change you are considering? Explain. Kolb. pp. What were the reasons behind the resistance. do you see any basis for the argument that terming reluctance to change a form of 'resistance' may be ideologically based? Discuss. What are the likely spin-off effects of the change? Activity 6. also discuss the links that the change has with other categories. & Cooper. on the part of management. Consider again the change you discussed in Activity 1 of this Module. eds J. Why did it work? Analyse it in terms of two of the non-OD models of organisational change described in this chapter. Activity 6.L. Organisational change Consider a change that your organisation has undergone recently. Activity 6. 169-184). Osland. What would have made it work even better. ‘The Growing Epidemic of Stress’. (See Chapter 5. S. Rubin.Faculty of Business.4 Cartwright. in The Organizational Behavior Reader.S. employees or both? What reasons were behind the resistance of either of these groups? How was this resistance 'framed' or 'discussed' by either management or employees? From this specific incident. in your view? Why? Activity 6. Consider an organisation of your choice. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 129 Reading 6. Activities Note: The following activities are optional. & I. and recall an instance of planned change which was unsuccessful due to resistance to the change. Prentice Hall.1 Classify a recent change in your organisation. in the view of those who did not want the change? What means were used to resist the change? Why were they successful? Graduate Studies Program .3 Can external change be managed? Consider once again the change you discussed in the previous two activities. Upper Saddle River. New Jersey. Did it encounter any resistance within the organisation? Was this resistance. C. Describe an instance of planned and successful organisational change that did not follow the principles of Organisational Development. Think now about the change in terms of the discussion above that sets out how organisations and managers within them are not always merely passive reactors to external forces for change.M.A. if any.4 What makes organisational change work? Activity 6.2 Consider again the change you discussed in the previous activity. 2001. Which external factor(s) were the prime cause of the change? Into which of the above five categories did it fall? If it is difficult to classify in terms of a single category. D. They are designed to help you develop your understanding of the various topics in this Course. Consider an organisation of your choice.5 Resisting change.

How will they change as a result of the knowledge economy? Master of Business Administration . and how they might influence the company culture.9 Examine the impact of the knowledge economy Think of some organisations you know well. and finally. The HR director has asked you to interpret the candidates’ scores on this instrument. One candidate scored very low. A previous HRM specialist (who has left on short notice and cannot be contacted) had the three short-listed candidates for the CEO position fill in a short questionnaire which she said was designed to measure the “candidates’ attitudes towards other people”. Management issues of the future What techniques do people in your organisation (or an organisation with which you are familiar ) use to predict the future? How could they improve the usefulness of their estimates? Activity 6. general employee values and behaviours. progressive organisation have asked you – a HR team leader – to provide a brief report on the following problem: Activity 6.8 Examine your organisation's prediction techniques.6 Is OD for you? Do you agree with the underlying assumptions of Organisational Development? Why or why not? Explain with reference to a change in your organisation which you either plan to undertake or which is affecting you. steps in the HR functions. Upon looking at the questionnaires. What impact has the knowledge economy already had on the way you work? What changes can you anticipate for the future? Activity 6. The HR manager requests that you specifically report on the relevance of the instrument and the subsequent significance of the candidates’ scores. claiming that this questionnaire would satisfy the board of directors’ demands. Organisational Behaviour and HRM The HR Director of a large. you realise that they in fact measure McGregor’s Theory X and Y views of human nature.7 Managers’ perspective of others and influences on the HR process The company have been seeking to recruit a new CEO. and the board of directors specifically urged that the new CEO must have the personal qualities compatible with dealing with a turbulent environment which is characteristic of their market.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 130 Activity 6. one very high. and another a mid-range score.

What changes in structure do you believe will be necessary in your organisation in the future.12 Consider the management initiatives your organisation needs for the future. Activity 6. What type of management initiative or programs do you believe your organisation will need to introduce over the next ten years to compete in the world of the future? Why? Graduate Studies Program . How will these changes help? Use the types of flexibility outlined above to help you reach your conclusions. Will the changes mentioned in this part of the Module affect your organisation? List as many impacts as you can.Faculty of Business. has your organisation made definite plans? Which are the influences for which most urgent planning is needed? Activity 6. For which of them. if any.10 Consider the need for changes to your organisation's structure.11 List the external sources of change affecting your organisation. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 131 Activity 6.

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