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Orgnisational Behaviour Notes

Orgnisational Behaviour Notes

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  • Overview
  • 1.1 Thinking about organisations and management
  • Introduction
  • 1.1.1 Why do we need to manage?
  • Conclusion
  • 1.2 Managerial work
  • 1.2.1 The nature of managerial work
  • 1.3 Founding views of management
  • 1.3.1 Scientific management
  • 1.3.2 Administrative management
  • 1.3.3 The human relations movement
  • 1.3.4 Bureaucracy
  • 1.3.5 Systems theory
  • 1.3.6 Other approaches
  • 2.1 The nature of groups and teams
  • 2.1.1 Definitions of groups: two caveats
  • 2.1.2 Functions of formal and informal groups
  • 2.1.3 Other arguments concerning the formation of informal groups
  • 2.1.4 Characteristics of groups
  • 2.2 Team roles
  • 2.2.1 Creating an effective team
  • 2.3 Leadership
  • 2.3.1 Core definitional elements
  • 2.3.2 Points of convergence across leadership theories
  • 3.1 Motivation
  • 3.1.1 Theories of motivation
  • 3.1.2 Process theories of motivation
  • 3.1.3 Orientation to work approaches
  • 3.1.4 Applications of motivation theories to human resource management practices
  • 3.1.5 Other HRM issues
  • 3.2 Persuasion
  • 3.2.1 What is persuasion?
  • 3.2.2 Why learn the basics of persuasion?
  • 3.2.3 Fundamental principles of persuasion
  • 3.2.4 The four strategies of influence:
  • 4.1 Organisational culture
  • 4.1.1 Elements of culture
  • 4.1.2 Perspectives on organisational culture
  • 4.1.3 Culture and organisational lifecycle
  • 4.1.4. Culture and strategy
  • 4.1.5 Cultural change
  • 4.1.6 Societal and global workplace culture
  • 4.2 Power and politics
  • 4.2.1 'Power to' versus 'power over'
  • 4.2.2 Sources of power
  • 4.2.3 Power strategies+
  • 4.2.4 An Australian contribution to thinking about power: the arena model
  • 5.1 Organisational structure
  • 5.1.1 Definitions of organisational structure and design
  • 5.1.2 The contingency approach to organisational design
  • 5.1.3 Applications of organisational design
  • 5.2 Decision-making
  • 5.2.1 Alternatives to the rational model of decision- making
  • 5.2.2 A new form of rationality?
  • 5.2.3 Perspectives on what happens to information in decision-making
  • 5.2.4 The escalation of commitment
  • 5.2.5 Improving decision-making
  • 6.1 Organisational change
  • 6.1.1 Perspectives on managing change
  • 6.1.2 The organisation development approach to managing change
  • 6.1.3 Managing change as a political process
  • 6.1.4 Contingency approaches to managing change
  • 6.2 Organisational Behaviour and HRM
  • 6.2.1 Why HRM?
  • 6.2.2 The Human Resource Management Process
  • 6.3 Management issues of the future
  • 6.3.1 Ways of predicting the future
  • 6.3.2 Select leading indicators
  • 6.3.3 Changes in the world of work
  • Implications of change


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


but by adopting a number of points of view to allow a more comprehensive appreciation of what organisations are about. Topics Topics covered in this Module are: 1. we proceed to a discussion of the nature of managerial work. not from any single perspective. their strengths and limitations.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. 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. • • • Learning resources Graduate Studies Program . far from being superseded in the manner typical of scientific theories in the conventional sense.2 Managerial work 1.1 Thinking about organisations and management 1. organisations. Finally. tend to persist in influencing the field of management even today. the Module presents some material on the founding schools and theories of management which.Faculty of Business. 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. the workings of your organisation and some case studies. So the Module starts out with a discussion of organisations. From there.

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

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

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

and controlling. on average. organising. 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. it was thought that the best description of managerial work lay in classifying it according to a series of roles: planning. as a result of his study. 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. leading and controlling. which is less than one every other day. See Robbins (textbook) for a summary of Mintzberg's findings. Graduate Studies Program . Mintzberg (1975) produced a classic paper in which he tried to dispel some of the myths and folklore about what a manager really does. 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. as follows: Interpersonal roles • • • figurehead leader liaison.2.2 Managerial work Introduction This topic examines the issue of work from a variety of points of view. This does not leave much time for systematic planning. organising.1 The nature of managerial work Managerial roles For a long time. Following this initial work.Faculty of Business. identified ten roles for a manager. 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. 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'. This descriptive system remains popular today. 1. It looks at the motivations for work. These were grouped into Interpersonal roles. only nine periods of half-an hour without interruption. Managerial work examines the roles and performance issues related to management. We need multiple views to come to grips with them. partly as a result of Fayol's work (which we will describe later in this Module). However. 1. leading. Organisations are changing entities existing within a variety of contexts that are themselves often unstable. they resist explanation via a single tool or mechanism. Mintzberg. Informational Roles and Decisional roles.

future-oriented focus is required in order to set the most appropriate organisational mission and goals. The need for this shift arises because the nature of what is required of managers changes depending on their level in the organisational hierarchy. & I.A. They manage the interaction with the external environment. 34-49). H. At the strategic level. middle management and senior management. eds J. That is. Reading 1. 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. They direct and control the work of others.S. human skills and conceptual skills. 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. New Jersey. Prentice Hall. Osland. A long-term. managers are generally involved in the supervision of non-management personnel. Master of Business Administration . (See Chapter 2. They are essentially technical managers responsible for producing products or services. but basically all managers will need at least some skills in each of the roles. The types of management associated with these levels are. At the tactical level. These variations could be described briefly as follows: At lower or operational levels. supervisory. The balance of these roles in a particular managerial job may vary.Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 6 Informational roles • • • • • • • • monitor disseminator spokesperson decisional roles entrepreneur disturbance handler resource allocator negotiator. respectively. ‘The Manager’s Job’. middle managers translate the goals of the organisation into specific objectives and activities. There is responsibility for the coordination of resources particularly at the departmental level. Kolb. in The Organizational Behavior Reader. D. 2001. Upper Saddle River.M. senior managers are responsible for the efficiency and effectiveness of the organisation as a while. pp. Rubin.2 Mintzberg. 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.

From there we moved to a discussion of managerial skills. customers. 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. But Kotter also goes somewhat further. cooperation and support from those further up Getting cooperation from groups over which they have no direct authority (for example. presenting these job demands as part of an overall three-part process: that is agenda setting. presents a typology that is similar to the list of managerial activities provided by Mintzberg. Kotter. should not be underestimated. Achieving a balance in the allocation of organisational resources among the various claimants. 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. other departments or divisions) Motivating and controlling staff. Monitoring activities so as to be able to identify problems and quickly resolve them. This view is presented by Margerison and McCann (1985). We return now to a somewhat more elaborate view of the functions of management work. Graduate Studies Program . unions. He presented the following common 'job demands' on managers: 1 2 3 4 5 6 Setting basic goals. managing conflict. which we will examine further in Module 4.Faculty of Business. in a 1982 study. 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. the importance of social and political skills. we began by discussing managerial roles (Mintzberg) via a discussion of Fayol's basic managerial functions. Margerison and McCann's work categories comprise nine component functions. suppliers. network building and executing (getting networks to implement agendas). Clearly. which is now often discussed in the context of forming effective teams. polices and strategies despite great uncertainty surrounding key factors. 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. The functions are: • • • • • • • • • advising acquiring and distributing information innovating.

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

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

The focus was on increasing productivity through the work of individual employees. T. for a discussion of management functions.M. Their study of bricklayers in action and the techniques devised to triple their Master of Business Administration .S. Chapter 1. pp.A. Rubin. D. Lilian and Frank Gilbreth and Henry Gantt are also closely linked with scientific management.Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 10 Reading 1.3 Teal. training of workers and the standardisation of processes. Assume all planning and organising responsibilities while the workers carry out their assigned tasks. Monitor the work to make sure employees are doing it in the best way. Prentice Hall. & I. These are standard theories you are required to be familiar with. Select and train workers capable of doing the job. In this topic we will examine the following issues: • • • • • • scientific management administrative management the human relations movement bureaucracy systems theory other approaches. Upper Saddle River.3 Founding views of management Introduction This topic examines several key models of management theory. Selection. Taylor believed that managers should: 1 2 3 4 Study each job and determine the best way to do it. 2001. Textbook 1. eds J. Read Robbins. procedures and equipment were also emphasised. ‘The Human Side of Management’. Kolb. Its proponents sought to find – and apply – 'one best way' to complete production tasks. 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. 1. roles and skills. in The Organizational Behavior Reader. 49-57).3. Osland. The name most commonly associated with scientific management is that of Frederick Taylor. but you are also encouraged to critique and evaluate them.1 Scientific management Formal theories of management emerged with the scientific management approach in the early 1900s. (See Chapter 2. New Jersey.

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

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

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

of course. that is as closed systems. most of which combine elements of the approaches just described.Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 14 biological sciences. The Theory Z model. In contrast to the scientific and administrative approaches which tended to regard organisations as complete unto themselves. developed by Ouchi. 1. In brief. attempts to integrate common U. transformation processes. attempts to consider the organisation as a whole system made up of various interrelated parts of sub-systems.6 Other approaches There are.S. Total Quality Management (TQM). and managers need to focus on the interrelationship of these elements. 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. Another approach. numerous other formal and informal approaches to management. for example. outputs and feedback are the key elements of all open systems. emphasises the need for a global vision. the characteristics of traditional American organisations. and Japanese business practices into a single middle-ground framework. 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. 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. Inputs. This theory took as its starting point the idea that organisations are created for particular purposes and have multiple goals. known as Theory Z. that is as an open system. systems theory drew attention to the interaction of the organisation with its environment. as follows: • • • long-term employment collective decision-making individual responsibility Master of Business Administration .3.

Thinking about organisations and management Describe an organisation of your choosing as if it were a machine. Nevertheless. and the characteristics and needs of human resources are affecting the relationship between the organisation and its environment.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. 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. Activities Note: The following activities are optional.3 Analyse the prescribed and discretionary components of your job. and as if it were a political system. including family. or pro-active. appears to be a general philosophy rather than a defined approach. changes in the environment. which argues that managers should make decisions in a way that is most suitable for a given situation.Faculty of Business.) What insights do you gain from viewing the organisation from multiple perspectives? Activity 1. careful analysis of key variables is vital: for example the way organisational size. anticipating future opportunities or problems and taking steps to influence the situation to the advantage of their organisations. The contingency perspective. 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. that is adapting and responding to situations as they arise. Managers can be either reactive. 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. technology. There is a recognition that there are no universal principles and always more than one way to achieve the same goal. formal measures moderately specialised careers holistic concern. 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. Think about your current job.2 Analyse your job in terms of Mintzberg's managerial roles Activity 1. that is. informal control with explicit.) Graduate Studies Program .

Is Fayol's formulation still of value to managers now.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. 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. despite the attempts by Mintzberg and others to contest it? The work of Luthans et al. consider the ways the career path of your boss has changed since he or she entered the workforce. Activity 1. Master of Business Administration . Kanter. Are there any effects you hadn't anticipated as a result of the level of contraction.5 Analyse how the balance of skills you need in your job has changed Activity 1. Luthans et al. from the Readings. Perhaps. Leading and Controlling' description of management which we owe to Fayol.4 What level of contraction do you use? If you are already operating as a manager. in particular if these reward systems are in line with Luthans et al’s suggestions. Then compare your results to the original 'Planning. Kotter. Compare the roles or activities of managers that each identifies. Organising. Analysing your organisation (or through discussions with people who work in another organisation). if you have not yet moved into management. showing the ones the authors have identified in common and which seem to be unique. Alternatively – if you have worked in many organisations – you may wish to carry out the analysis from the start of your career.6 Compare the theorists findings about managerial work Activity 1. has the advantage that it identifies differences between successful and effective managers. Check within the organisation to see what it is doing to reward these types of managers. on the contrary. 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. As a further alternative. use the categorisations of Katz or Burgoyne and Stewart to consider the way your job has altered since you joined (or started) your organisation. 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. as we noted. the textbook and other summary material in this Module. It is a narrow/belittling view which tries to reduce people to the status of machines It is idealistic.8 Define your attitude to scientific management • • • It makes good sense. overlooking the inevitable conflict that exists between management and labour. they provide evidence to challenge his suggestions.Managing Organisational Behaviour MGT701 Module 1 Introductory Topics Page 16 Activity 1. especially one at middle or senior management. build up a profile of cases of people who fit the 'successful' and the 'effective' categories identified by Luthans et al. and Kraut et al.

Graduate Studies Program . 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.Faculty of Business.9 Re-evaluate Fayol's principles. It is an authoritarian view that is inappropriate in today's work environment. If your choice suggests that you believe scientific management ought to be superseded.

(which seem to multiply despite the vast number of theories and concepts that already exist). Master of Business Administration . teams and leadership Page 18 Module 2: Groups. 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. and the mechanisms by which they do it gained some experience at analysing a number of the groups and teams you are involved in. as well as some of the controversy surrounding this topic an understanding of the nature of groups. Learning outcomes After successfully completing this Module. and what distinguishes groups from teams an understanding of the kinds of needs groups fulfil. Finally. Topics Topics covered in this Module are: 2. and how your style of leadership can be improved.1 The nature of groups and teams 2. Finally we look at some practical work on the kind of leader you are.3 Leadership. we examine the complex area of leadership: theories about it.Managing Organisational Behaviour MGT701 Module 2 Groups. 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 you are invited to examine the groups you are part of to find out how their functioning can be improved. Groups and teams are seen to present both advantages and problems for managers as well as the people in them. you should have: • • • • • • an understanding of the stages involved in forming a group.2 Team roles 2. both formal and informal. teams and leadership Overview 'Groups.

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

Managing Organisational Behaviour MGT701 Module 2 Groups. However it is a good idea to remember that individual writers vary in their use of the terms 'group' and 'team'.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. groups were a fact of life. 1987). Introduction One of the notable consequences of the human relations movement discussed in 'Introductory topics'. Then. the function of socialisation and establishment of 'norms' that we will see to be one of the functions of groups. To Mayo. It will be clear from an early point that. we will examine a range of aspects of the significance of groups and teams for an understanding of their behaviour and effects in organisations. Group assessment and reward issues will be dealt with further under Human Resource Management topics in 'Human Resource Management and Conflict Negotiation'. in the second part of the Module. and the distinction it makes between the two is a useful one. Managers are aware of the importance of interdependent cooperative action. 2. but they are also wary of the influence that groups can have over their members (Bramel & Friend. the material considered under 'Groups and teams' necessarily overlaps with issues considered elsewhere. 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. 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'. and despite the prominence given nowadays to teamwork. some of the roles that individuals assume within teams overlap with our consideration of management roles in 'Introductory topics'. is also closely linked to the issue of organisational culture.1. In the first part of this Module. was the greater – and more positive – attention given to groups in management and organisation theory. namely that group output is a result merely of the summation of individuals' efforts whereas teams generate positive synergy through coordinated effort. McGregor and even Weber. perhaps even more than in some other Modules. teams and leadership Page 20 2. and even of the synergies – another term for enhanced outputs – which can be generated. is particularly comprehensive in its coverage of groups and teams. so be Master of Business Administration . managers have generally been ambivalent towards groups. Traditionally. For example. 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. our textbook. we will consider the even more vexed question of the nature of leadership.1 Definitions of groups: two caveats Robbins. central to psychological well-being because they reflect a basic human need for social bonds. As a further example.

1 illustrates the reasons people join groups. In a welcome development. 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.Faculty of Business. Chapters 8 and 9. any evidence of the existence of the group characteristics the textbook describes. Despite this. Read Robbins' textbook. For example. some production processes are organised around collectivities that have been formed by management as the basic unit for production. Textbook The textbook provides classic and fairly standard material on groups. and discusses the effects of various external and internal (structural) influences on the group. So the study of groups in organisations is likely to be the study of: • • the collectivities that conform to the definition of 'group’. and in the absence of. the textbook's definitions of groups have a central notion of belonging. it is important to note that. and also frequently a sense of common purpose. Thus the textbook defines groups. 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. 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. • • • • • Graduate Studies Program . 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. We may link this more overtly to the notion of formal and informal groups that the textbook addresses briefly. particularly if the group includes members from the various parts to be coordinated as a problem-solving mechanism. and collectivities to which the label 'group' has been applied. the textbook also provides a counterbalance to the ideas of group formation. if the issue is complex. Essentially.2 Functions of formal and informal groups The textbook's Table 8. Such collectivities may be labelled groups before. 2. which are frequently presented in an uncritical way. that is. so that – to invoke the classic contrast – groups are differentiated from a mere collection of individuals waiting for a bus. 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. as well as different types of groups. The base being used is essentially social psychology – a discipline that is both theoretically and methodologically strong. 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.1. in practice.

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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

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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)

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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

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

there are eight necessary functions in a successful team. then come back together to identify and resolve any differences. • • • • • • • 2. 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. 3 4 Master of Business Administration . and who will prevent the team from committing itself to a misguided project. is more concerned to give shape and urgency to the team's efforts. arguing that the leadership factor (mentioned above) is the prime determinant rather than cohesiveness. communicates with and presides over the team and coordinates its efforts to meet external goals and targets. rather than because they want to be part of an effective and competent task-focussed group. Plant: the ideas person.Managing Organisational Behaviour MGT701 Module 2 Groups. 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. suggestions and proposals. May be more concerned with the innovative and exciting aspects of the project than with the feasible and realistic. the source of creative input. 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. Monitor Evaluator: the person who provides measured and dispassionate analysis of the team's progress. Shaper: the 'task' leader who. teams and leadership Page 26 leader is promoting his or her preferred solution. in contrast to the Chairperson who is concerned with the social aspect of a project. 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.2 Team roles Belbin (1981) identified a number of key roles in teams. Leana (1985) goes further. 1 2 Chairperson: the one who unites. According to this formulation.

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

& I. (See Chapter 7. J. teams and leadership Page 28 miscommunication.Managing Organisational Behaviour MGT701 Module 2 Groups. 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. 2001.E. lack of leadership and lack of commitment. p 237). and how to avoid some of the potential problems associated with group decision-making. & Farson. Upper Saddle River. Osland. R. Rubin. eds. These task. 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. 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.R. Prentice Hall. New Jersey. Master of Business Administration . 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. it is advisable to be sceptical about the notion of planned norms. internal conflicts. the way they typically evolve unconsciously rather than come into existence by fiat. Improving the use of group resources: This strategy is used to improve the effectiveness of resources. D.M. C. Team building interventions can be tailored to the particular nature of the group and the problems it is facing. 185-189). maintenance and disruptive roles have been discussed previously. Group problem-solving and decision-making: This approach focusses attention on such matters as the characteristics and the application of an effective problemsolving process. Dunphy (1981. ‘The Meaning of Active Listening’. uncertainty as to goals and responsibilities. and which can then be used as a basis for defining roles and responsibilities and for producing more detailed action plans. 'norms are renegotiated and a new contract drawn up’. in The Organizational Behavior Reader. 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. pp. Kolb.A.2 Rogers. that is. concrete statement of goals which is agreed on by the group and management.S. Given the earlier discussion about the largely informal nature of norms. p 215) lists the following as key intervention strategies: • Goal setting and goal classification: The purpose is to develop a clear. According to Dunphy (1981.

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

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

Faculty of Business. Research on management activities (see 'Introductory topics') shows a high incidence of interaction by leaders with peers. and how do leaders inspire organisational members during periods of change. several significant points of convergence emerge. Many of these are the human resource management skills we will review in Module 3. superiors and outsiders. charm and a positive attitude to authoritative figures. what is the behaviour of effective leaders. evidence across the various theories indicates that leaders without 'clout' to represent their staff lose status and influence with staff. style. 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 2.1 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. network building and as a representative of their work groups. several traits and skills are predictive of managerial success in dealing with peers. empathy for others and good listening and counselling skills. They achieve high levels of mutual trust and loyalty. social insight.2 Points of convergence across leadership theories Theories of leadership that have considered traits. open and helpful to their staffs needs. In addition. and take actions to advance the careers of this group. These skills include tact. Favourable leader-subordinate relations are more likely for leaders who are friendly.3. and the role of leaders as motivators and as sources of influence. Leader-subordinate relations Effective leaders establish cooperative relationships with their staff. Much of their time is spent monitoring events. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 31 2. These will now be considered in turn. including tact.3. They concern: • • • • • leader-subordinate relations relationships with peers and superiors the importance of information the importance of managerial decision-making. the situation or other factors have resulted in numerous answers to questions such as who becomes a leader. several traits and skills are more predictive of being an effective leader. superiors and outsiders. Despite the disparity in points of detail. Relationships with peers and superiors In this area. Leaders especially provide an important source of influence over the effort and commitment of staff. Also. Graduate Studies Program .

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

From these interviews.6 Identify instances of Groupthink. 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. friend. The group should be one which works together on a reasonably regular basis. and then discuss ways in which groupthink could have been averted.3 Analyse the functions of your work group. Considering the issues of groupthink and the main symptoms given in the textbook and in the preceding discussion. 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'). or did so in the past. 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. etc). Does the group simultaneously fulfil any official need? In the light of the preceding discussion. the functions of the group and the issues that influence the effectiveness of the group. whether positively or otherwise.4 Are roles in conflict? Activity 2. identify five roles that you play (eg parent. Activity 2. 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'. are there some functions which overlap. Activity 2. consider which – if any – of your social needs you feel it fulfils. identify the norms and roles that apply. which of the three basic sets of explanations – social. manager. 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. maintenance and disruptive functions that Dunphy (1981) sets out above. Include some at work and some elsewhere. For each group. Analyse its functioning in terms of the task.5 Analyse your work group's norms. Activity 2. Activity 2. Graduate Studies Program . University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 33 Activities Note: The following activities are optional.2 Analyse your groups – Part 2. identify some examples of groupthink in your workplace and in Australian public life. The nature of groups and teams Think of at least three separate groups to which you belong. Consider the same groups as in the first activity. What behaviour does each require? Are any of these roles in conflict? If so. They are designed to help you develop your understanding of the various topics in this Module. Identify specific examples from political and organisational leaders.1 Analyse your groups – Part 1 Activity 2. consider the reasons for any overlap (or lack of overlap) in each case.Faculty of Business. Again.

Think about the managers you have encountered who have impressed you with their abilities as leaders and as decision-makers. identify a list of skills that are necessary for effective leadership and decision-making abilities. 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. 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. review the list to determine which skills you have already demonstrated effectively. n your opinion. Develop an action plan to improve your leadership and decisionmaking abilities. • Master of Business Administration . Once your have completed your list.7 Does empowerment work? Activity 2. have failed miserably as managers. What qualities does this group of managers have in common? What behaviours did they fail to demonstrate? Based upon your analysis.8 Take action to improve your leadership style. Managers must make decisions effectively about the kinds of leadership qualities as expressed by Bass for those decisions to be effectively implemented. and the decision-making climate of the organisation. Were the strategies successful? Why or why not? Effective leadership involves a complex interaction between the situation the person. and those that require improvement. Activity 2.Managing Organisational Behaviour MGT701 Module 2 Groups. teams and leadership Page 34 Leadership The art of empowering the people who report to you involves several specific management practices. Using Conger's (1991) list.

we move to an examination of some specific human resource management practices.1 Motivation 3. and theories supporting them understand the fundamental principles of persuasion and influence and how they can be used in the modern workplace. and in some detail work through the fundamental principles underlying persuasion and strategies of influence. Topics Topics covered in this Module are: 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. the effectiveness of any specific practice is likely only to be as good as the theory on which it is based. the orientations to work approach. gain some experience in the practice of persuasion. discuss why we should learn the basics of persuasion.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. • • • • Graduate Studies Program . In the latter part of the Module. We’ll examine the difference between persuasion and propaganda. including their strengths and limitations. which are based on one. or several of the theories of motivation just mentioned. we examine the use of persuasion in both society in general and organizations specifically. 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. After all.Faculty of Business. such as performance appraisal and compensation identify other contemporary HRM issues. From discussing these basic theories.

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

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

we will deal with some other issues in the area of HRM. You may want Master of Business Administration . The two theories that you have met briefly in 'Introductory topics'. This Module introduces you to the topic with particular reference to motivation theory.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 38 3. Introduction In 'Introductory topics' in the context of the Human Relations' movement. but you may well want to take a number of issues further. In the first section of this Module we will return to ideas about motivation. particularly career development issues. and those that focus on the cognitive processes which explain how people make decisions as to how to act.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. Maslow's hierarchy of needs and McGregor's Theory X and Theory Y. belong to the first type. Textbook 3. particularly as they relate to some specific aspects of human resource management: job design. especially the ideas of Maslow (the 'hierarchy of needs') and McGregor (Theory X and Theory Y). Subsequently. Chapters 6 and 7. especially with new legislation such as antidiscrimination legislation and changes to dismissal laws.1. management by objectives (MBO) and compensation (pay) management. Robbins' textbook.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). so an understanding of both the theories and the specific practices is enhanced by dealing with the two together. personnel selection and performance appraisal. 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. we touched on some early approaches to motivation. The reason for linking these issues is that beliefs about what motivates people directly influence a variety of management practices.

Specifically. SB and Parker. Routledge and Kegan Paul. However Maslow came to believe that management practices provided practical application of his ideas. 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. pp. Sydney. as the textbook notes. Watson (1986) in the article mentioned above. as the textbook points out. Hisdale IL. organisational effectiveness and individual satisfaction would both gain from the application of practices based on this theory. However. We said in 'Introductory topics' that there had been some important qualifications to this theory and these are outlined in the textbook. Additional reading For those who would like to explore further the criticisms of Maslow's theory. Theories of organisation behaviour. which basically amount to saying that the theory has been misunderstood as indicating a simple rather than a complex relationship between needs and behaviour. there is a lack of evidence that actions consistent with Theory Y assumptions lead to more motivated workers. It is important to note that Maslow himself was the author of these qualifications. 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. find and read one or more of the following authors and their comments on Maslow: Aungles. such as habit and conditioning. organisations and change. However Watson also argues that inviting manages to think Graduate Studies Program . JB 1980. 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. and there are many determinants of behaviour other than needs and desires. In brief. Work. Dryden Press. AR 1989. also discusses the inadequacies of McGregor's theories. 1987. London. academy of management executive. Theory X and theory Y These contrasting approaches to motivation that were developed by McGregor were also discussed briefly in Module 1.Faculty of Business. 27–28). Watson. Miner. '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. 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. 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. arguing that they make 'grandiose claims and vast generalisations’. TJ 1986. Allen and Unwin. In fact. Despite this. 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. work and history. Sociology.

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

a different set of factors leads to dissatisfaction from that leading to satisfaction). including achievement. the work itself. A critique of Herzberg The textbook gives a comprehensive list of the criticisms of Herzberg's research. and that job dissatisfaction was related to company policy and administration. Herzberg (1959) labelled the factors causing dissatisfaction 'hygiene' factors. According to the study. and to argue that the causes of dissatisfaction should be prevented rather than cured. The criticisms tend to be of two kinds: that Herzberg's research was methodologically flawed. Given that these factors do not line up with each other (that is. They are 'fixated at a less mature level of personal adjustment’. or personal growth. Lee. interpersonal relations and working conditions. The textbook's Figure 6.3 portrays the results of Herzberg's study of 203 Pittsberg engineers and accountants. but through designing workplace processes an practices that enhanced sense of achievement. of autonomy. Graduate Studies Program . supervision. it follows that the opposite of dissatisfaction is not satisfaction but no dissatisfaction. that is. responsibility and advancement. Also a major cross-cultural study by Hofstede (1980a) has concluded that McClelland's motivation model could not be seen as universally valid. The reverse is also true: that is. 1980). 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. job satisfaction depended on five to six factors. 1968. the opposite of satisfaction is not dissatisfaction but no satisfaction. but this he explains in terms of employees not having reached a stage of personality development at which self-actualisation needs are active. 1988. By medical analogy. p 96). and those related to an individuals 'compelling urge to realise his [or her] potentiality for continuous psychological growth. and that there is a lack of supporting evidence from other studies. 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 message to managers is: do not expect hygiene factors to do the job that only motivators can do. 1968) has become almost as well known as Maslow's hierarchy of needs. 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. recognition. salary. stability and adjustment of the industrial working force' (Herzberg. the value in Herzberg's approach has not been in the specific details of the theory per se – because of the substantial problems listed. Herzberg acknowledges that here was some evidence in the study of individuals who do seem to associate satisfaction with hygiene factors. but because it has been what Watson (1986) refers to as a 'sensitiser' bringing to managers' attention the motivational prospects of intrinsic job factors. The research findings were consistent both with the underlying hypothesis that there was a difference between the factors leading to satisfaction and dissatisfaction. The study also concluded that job satisfaction is 'functionally related to the productivity. The Herzberg heritage Frederick Herzberg's 'two-factor' theory (1959.Faculty of Business. Thus. As with Maslow and McGregor. etc. undertaking job enrichment.

in content models the connection between needs and behaviour is assumed to be unproblematic. This approach ignores the process aspect of motivation. process theories of motivation seek to explain the cognitive process whereby individuals decide how to act. Content approaches to motivation focus on what are supposedly the fundamental motives influencing behaviour. the needs approaches have some generic limitations: • Needs approaches tend to be characterised by an assumption of 'psychological universalism’. Maslow's self-actualisation and esteem needs correspond roughly to Alderfer's need for growth. and Herzberg's hygiene factors. McClelland's nAch. goal setting.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. equity theory. are all examples of attempts to examine this process. 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. In contrast to content theories. All needs theories share the common assumption that normal health individuals seek intrinsic rewards from their work organisation. and expectancy theory. leading to the accusation that they are expressions of the high individualisation characteristic of American culture with limited universal application. At the lower level. his or her goals – being the critical intervening variable between an incentive and actual performance (Locke and Latham. 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. but primarily due to its effect on increasing the chances of a goal being accepted as a target for action Master of Business Administration . In this approach the motivation process involves the conscious intentions of an individual – that. 1984). however. rather than as a process to be investigated. Despite this general theoretical cohesion. That is. • • 3. McGregor's Theory Y. That is. and Herzberg's motivators. The process theories of motivation seek to deal with this latter deficiency.1.2 Process theories of motivation As noted earlier. they direct attention to explaining motivation as a dynamic process. Needs approaches have tended to treat the workplace as the site at which fulfilment of needs is sought rather than just one site. The following three approaches. McGregor's Theory X. Needs-based theories are blind to cultural variations. Maslow's physiological needs correspond roughly to Alderfer's existence needs. Goal setting The goal setting approach to motivation focuses on the role of goals in determining behaviour. they assume the existence of a general set of human needs applicable across time and space.

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. revising downward their assessment of the difficulty of their job. salary. reducing the effort they put into their work (decreased input). 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 . in addition to the preferences and desires that someone has (which might be addressed through one or more need theories of motivation).Faculty of Business. Acceptance of the goal is the critical factor. For example. Expectancy theory Expectancy theory. If the other's job is newly perceived as more demanding the inequity may disappear. 1978). experience) they make. that is. If none of these solve the problem. they may focus on the others. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 43 • feedback on performance enhances the motivational effect. draws on the notion that. it is argued that if a person accepts a goal as his or her target. or are simply not tried. or changing the person they use as their point of comparison. the privileged will also seek to restore equity. Accordingly. the perceived inequity may be resolved by internal transfer or resignation. effort. then whether or not this was arrived at by participative means becomes of little significance in terms of its motivational effect. they have a certain level of expectation of achieving that outcome. 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. Research evidence has substantially supported the goal-setting approach. or an increase in their effort or a reassessment of the difficulty of that job. Those who feel deprived may ask for higher pay (increased output). as the term implies. position) they receive for the input (for example. According to the theory. the effect of all other factors that may affect the motivational process is filtered through this factor. Alternatively. 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. hoping to bring about a reduction in their pay. 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. Pfeffer (1982) provides a useful and succinct discussion of this and other reservations about the goal-setting model of motivation. Adams argues that parallel reactions also exist for those whose assessment of equity leads them to believe that they are relatively privileged. given other factors. The theory thus combines the strength of individual needs with the level of expectation.

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

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

Specifically. which then leads to increased and sustainable productivity. Miller and Monge (1986) present a scholarly review of a large number of articles on this issue. Thus changes in job design (see later in this Module). that is.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. or the desire to earn the new pay rate. 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. or systematic approaches to judging the extent to which employees have met their performance objectives. 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. Randall and Jackson (1987) make the additional point that the kind of participation may be important. such participation must reinforce a competitive strategy if it is to be maximally effective in helping the organisation to survive. Schuler. 3.4 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). 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. career development and performance appraisal. has. even if they are accompanied by extra pay and more enriched jobs may well radically disturb the wage-effort relationship. 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. 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.1. and the way management handling of them needs to change if organisations are to prosper. 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. in turn.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). Or whether the reverse is true. Worker participation in decision making As mentioned at the outset of this Module. MBO.1. been the basis of many compensation schemes. 3. one of the vexed questions in applied organisational theory is whether participation in decision making leads to worker satisfaction. Master of Business Administration .

in The Organizational Behavior Reader. (See Chapter 12. gain consensus on decision. Thus. leading to mistrust. and also at the stage of decision-making and implementation. at the stage of group and trust formation. is how to capitalise on the benefits of cultural diversity while minimising their potential costs. miscommunication and stress: This can cause inability to validate ideas and people. Rubin. more and better ideas. 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. better solutions and better decisions. Members from more relationship-oriented cultures such as China. effective and productive. more alternatives. as a result. 2001.Faculty of Business. Diversity forces enhanced concentration to understand others' ideas. Groups can become more effective and productive. such as their equivalent professional status and qualifications to compensate for these differences in cultural backgrounds. diversity makes the process more difficult since these processes are facilitated by recognition and creation of similarity. meanings and arguments. Reading 3.M.S. less Groupthink. ‘Cultural Constraints in Management Theories’. Kolb. Prentice Hall. pp. New Jersey. feel rushed and distrustful. Managers experienced with multicultural groups will tend to direct the attention of group members to areas of similarity. agree when agreement is needed. Diversity at a national level In the group formation stage members need to develop relationships and build trust. at the stage of creating ideas. which relies on the creative use of different. G. However. D.A. It can lead to better problem definitions. the Middle East and Southern Europe will. The intention is to create Graduate Studies Program . Disadvantages of diversity The disadvantages of group diversity include: Lack of cohesion. eds J. 345-356). Osland. & I. The question managers need to face. Diversity is most valuable when the need for agreement (cohesion) remains low relative to the need for invention (creativity). Groups can become less efficient. diversity makes the process easier. 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. This has implications for the effect of diversity at different stages of group activity.4 Hofstede. Upper Saddle River. 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. Advantages of group diversity The advantages of group diversity include: Increased creativity: A wider range of perspectives.

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

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

Age Of Propaganda. It is also important to choose areas that are quantifiable. All this is not to say that choosing relevant areas for appraisal is always easy. A & Aronson. subordinates. 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. what we do and how we do it”. and based on observable actions or results. which in turn effects: • • • how information is disseminated. customers. 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. in emergency situations. however. E 2000.. One way to do this is by using the critical incident technique. for example. students might consult the main source for the following notes: Pratkanis. decision making and the way in which problems are framed. but also manipulate the symbolic aspects of organizations. politicking & influencing. 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. and their reliability (which is usually a function of visibility and ease of rating). motivating employees & shaping org. performance areas should be selected on the basis of their relevance to the job. Freeman.e. or training managers. This way one can be sure both the appraisee and appraiser understand the areas that are rated and their importance. their freedom from contamination by external factors. New York. or may only become crucial at certain times. for an airline pilot. In short. An alternative method is to develop a list of the factors that 'really make a difference' by interviewing past or present jobholders. “why we are all here. The job description is a good place to start searching for these.2 Persuasion Introduction Persuasion relates directly to the management of meaning in organizations: i. culture & gaining commitment from followers. For more detailed information on this topic. This can also be described as the process of articulating and reinforcing a clear sense of purpose for organisational participants. their supervisors. Textbook Master of Business Administration . Many skills are difficult to demonstrate in observable ways. networking. 3. Use the following notes as a guide to study.

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. For example. 3.Faculty of Business. and before newsprint. The Greek court system required citizens to plead their own cases before a jury of their neighbours. while students at Harvard in the US in the seventeenth century also studied how to argue and. and employees’ expectations and understanding of work events generally.2. With this in mind. 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. for four years. defending it and attacking the view of others (i.e. 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 . would spend every Friday afternoon demonstrating their proficiency at this by taking a stand on an issue. First widespread use of persuasion tactics during WW1 when it was specifically defined and recognised as the dissemination of biased ideas and opinions. 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. let’s take a historical perspective: In ancient Greece. o Armed with these definitions. depending on the attention span of the congregation? We. Roman students in the 1st century also took courses in persuasion. 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. all citizens were considered equal and expected top be able to speak on their own behalf. radio. live in a message-dense or “over-communicated society”. lest he lose his possessions or be banished from his community as a result of a petty lawsuit. often through use of lies and deception. and thus established the papal propaganda office to bring people to “voluntarily” accept church doctrines. on the other hand. 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.2 Why learn the basics of persuasion? Firstly. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 51 3. the average Greek citizen was interested in learning how to argue. who realised that establishing faith by force of arms in holy wars was not particularly successful. o The first documented use of propaganda was in 1622 by Pope Gregory 15th.2. debating)..

and movement. or emotional attachment to any particular ‘news frame’. novelty. Robert MacNeil (cited by Postman. then. and that verbal precision is an anachronism”. Therefore. handyteller adds.. the next is presented (or an advertisement).Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 52 advent of email. A typical political advertisement runs for 30 seconds or less. importantly.. separated in terms of context & emotional attachment from the next. 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. no character. magazine advertisements often consist of little more than a picture and a phrase... and no problem for more than a few seconds at a time” and. not to strain the attention of anyone but instead to provide constant stimulation through variety. 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. Katz. and how much attention do you give to it? And what about paper mail? As a result of this. as the frame of reference moves every forty five seconds on to a ‘new’ story. Master of Business Administration . time is not allowed for consideration. radio. 1986. let’s go back to the modern world at large for some examples… • The average news story lasts only forty-five seconds. without context. Credibility (is divorced from the rigours of debate and intellectual assessment of discourse. email. to pay attention to no concept. 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. 105): had the following to say about the aims and objectives of news presentation on television: “… keep everything brief. You are required . Similarly. Adoni and Parness (1977) found that 21% of subjects were unable to recall any news item within one hour of the broadcast. action. that visual stimulation is a substitute for thought. Each item is a discrete event. 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. concrete and less inferential. how much information do you receive. and no intellectual confrontation. these discrete items cannot have ‘implications’. Epistemologically. etc. There is no context. “complexity must be avoided” and that “nuances are dispensable . there can be no contradiction. Similarly. Hence. debate. Salomon (1979) concluded that “the meanings secured from television are more likely to be segmented. and) is placed in the hands of the appearance (and public acceptance) of the presenter. 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”. billboards. Postman (1986) describes televised news as “a world of fragments”.

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

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

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

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

we weren’t really that close. you might change that cognition to “well. In response. you avoid him in the future. 3. I’ve got a 2. 4. because his presence reminds you of the reality of what occurred). possessions.. To do so. so you can’t change that. denial.. or maintaining self-esteem. and X is in a dire situation works.e. the effects of these strategies can spiral once you explain away one retrenchment. “when food is short. the others become easier… (same applies to war propaganda) Remember. 1957). (We change cognitions because behaviour is in the past and hence unalterable. o o For example. “well. and you experience cognitive dissonance because: 1.” or … and you’re not in a dire situation because you’re still employed mortgage and problems of my own. table manners change”… serve the self. X was a good worker. individuals will go to great lengths to distort facts & events. 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. What can you do? He’s been terminated. partners. the strategies to reduce dissonance here can be summarised as: 1.” or “his wife “well..” (and to make it so. “why am I still here when…”). and self-persuasion to justify their past behaviour. I didn’t know him that well… and maximise their responsibility not such a great worker any way… Depending on the context. and in some instances. Believers zealots o o The mechanism at work here is that of cognitive dissonance (Festinger. 2. X was your friend.. he could have planned better. and they were without homes.e. but you can change the way you think about the underlying premises (see above) Graduate Studies Program . in whatever form basic survival.) These sort of defences are most strong when a person’s self-esteem is at risk. Dissonance occurs when a person holds two inconsistent cognitions (ideas. there are a lot of lay-offs occurring at work as a result of org. jobs. and we reduce it by changing one or both of the cognitions so that they reconcile.Faculty of Business.” So to recap here. 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. reduce the humanity of the person involved / not really a friend. opinions) i. 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. 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. beliefs. This triggers survivor syndrome (i. he did slip up on occasions” “well.

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

4 The four strategies of influence: 1/ pre-persuasion: take control of the situation and establish a favourable climate for your message. 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. so environmental issues are ‘screened’ from the selection process. and which have no existence before appearing in some news media. as nothing concrete has been said. Also. framing the decision by staging release of information. downsizing = becoming more efficient) and how the decision is framed – eg. sex appeal etc.. 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. “you know you want to” – ergo – there is no reason for me to think Graduate Studies Program . answer the question for the target audience present a scenario as a ‘fate accompli’ – i. leaving only W “The choice is W” • • This is also known as the ‘card stacking’ approach.2. in the case of car advertisements. Factoids: assertions or suggestions of facts not backed by evidence. 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. This refers to • • how the issue is structured (eg. the impact on the environment is mentioned far less than prestige. (Eg. resulting in a nation-wide boycott of the cookies (how convenient for the competition…). 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. 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. 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. sportiness.J. Simpson.e. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 59 3. which just happened to be the best.Faculty of Business.

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 . as in the student example above. this especially applies when the message is not considered to be personally relevant. To sum up – define the issue in such a way that you can’t help but win! • Source credibility – i. inducing the target (us) to persuade ourselves. pre-persuasion establishes “what everyone knows” and “what everyone takes for granted”. 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. and should. the communicator needs to establish a favourable image in the eyes of the target audience. • make certain that the message is personal to the target audience… (if you want to cast a broad net. by distracting the targets from arguing against the proposal. and include ‘something for everyone’…) o This is where is where rationalising and cognitive dissonance come in handy also … i. or possessed of whatever other attribute that would facilitate persuasion in a particular instance.e. If successful. and this usually requires manipulating our emotions. even if it shouldn’t be. the target becomes preoccupied with dealing with emotions . one can influence cognitive responses and processing and obtain consent without even appearing to be attempting to persuade us. or by focussing the target’s attention on a vivid and powerful image. 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. and if framed generally enough to cover basic physical & emotional needs / drives. • Finally. 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. which is the last strategy. refer to our forefathers. o • Remember. and complies with the request in hope of escaping a negative emotion or maintaining a positive one. By establishing how an issue is defined and discussed. or trustworthy. that would preclude most from expending cognitive resources to analyses and perhaps refute the statement.. employ the ‘Barnum Effect’. instead. Hence.. the communicator – or persuader – needs to appear to be likeable.e. So. wind etc. soldiers in battle fighting to protect us and our children from whatever … or. like solar power. o Example.Managing Organisational Behaviour MGT701 Module 3 Human Resource Management and Conflict Negotiation Page 60 further. be taken as a point of discussion.

particularly prepersuasion. Activities Note: The following activities are optional. 2001. while intuitively logical. Its role has really been a propaganda device: propaganda in a good and humanistic cause. solutions which help the environment and provide jobs (emotional context. but propaganda nonetheless'. D. That is.and ambition to work for a company that shares that. but it takes time to find the right solutions (suggesting that tree huggers reacted without thinking – framing the issue). Osland. also can be linked with tree-huggers as ‘dole bludgers’.M.and solution offered – we will provide jobs if you support us. Prentice Hall. comment on Watson's rather scathing conclusion about Maslow: 'The significance of Maslow's work does not lie in its scientific validity. When you have completed this. listed below. J. in The Organizational Behavior Reader.S. unemployed. (See Chapter 16. 451-461).A. Rubin. It clearly has little. which targets the message also) while we’re doing it switch to image of university graduate (expresses environmental concern . Reading 3. while company is actually working and being productive and contributing to society and providing jobs at the same time – hence emotion raised – hope . socially irresponsible this in turn shapes the argument by excluding the traditional activist green approach). 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. Graduate Studies Program . each is to some degree dependant on the successful use of the other strategies. & I. do managers sometimes cling to theories which. Also. in your view. Do you agree with this view? Why. eds J. 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. You may wish to undertake some additional reading. pp. Upper Saddle River. 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. ‘The Necessary Art of Persuasion’. are unable to be empirically substantiated? Activity 3. Kolb. New Jersey.hence likeable & trustworthy .1 Consider the criticisms of Maslow's theory mentioned in the textbook.5 Conger. we’ve barely touched on the psychological processes which have been researched over the years and which are available to supplement these strategies.Faculty of Business.

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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

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

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

To take an example. Changes in language may signal changes in the relative influence of professional groups. Allaire and Firsirotu (1984) identify eight. have led to equally diverse conceptualisations of the term. 4.1. ceremonies. below). Espoused and actual values concerning innovation are a case in point.1 Elements of culture There are no uncontested definitions of culture. Values are seen in expressed beliefs about how and why things are done. values and artefacts. not easily articulated interpretations of the nature of reality. Smircich (1983) identifies five schools of thought.Faculty of Business. Graduate Studies Program . The classic cultural artefacts are those described by such terms as language. 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. the diverse schools of thought within the originating discipline. 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. However. myths. anthropology. Basic assumptions Basic assumptions are the taken-for-granted. rituals and norms. 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. 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. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 67 • societal and global workplace culture. Values Values are less 'deep' than the taken-for-granted subconscious phenomena of basic assumptions. Schein (1985) provides a tripartite schema that has been widely used in the cultural analysis of organisational activities: basic assumptions.

suggesting big servings of food if the customer doesn't specify size. suggesting products to customers. 34) knowing what the staff is doing. walking around the store to check on staff and store. kicking butts nicely. staff who can cope with rush hour. the top part of a burger bun. service and cleanliness. give-aways such as balloons. p. gangs of keen staff. Planned maintenance systems. moving staff to different areas of the store. big rubbish bin. 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 hamburger griller. The McDonalds motto: quality. as the following example illustrates. mistakes. check up on staff. had for many years operated from a building where individual managers worked in their own offices. Artefacts may include such items as office layout.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. gangs of disgruntled staff. pasting up staff performance levels. sneaking up on staff to check their work. with doors closed. bad attitudes. another form of SOC. being nice to new staff. the bottom part of a burger bun. Where offices shared a common glass wall venetian blinds would be left down to maintain the seclusion. Master of Business Administration . staff involved in cooking or selling. a large Australian merchant bank. Office designed at Partnership Pacific Partnership Pacific Limited.

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

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. MCI. Do the blocks give rise to one integrated edifice where the various parts reinforce each other. Integration perspective The integration perspective treats culture as a unified phenomenon. The strength of the cultural constraints inherent in such rituals is clear when someone transgresses the unspoken 'rules' about such rituals. which do. in fact. 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. or in short hand descriptions of the culture such as 'innovative' or 'entrepreneurial’. Integrationist portrayals of culture frequently concentrate on a leader as the source of cultural content.1. Power and Politics Page 70 Rituals Rituals are routinised activities that maintain cultural beliefs and values. such as retirement dinners and speeches.2 Perspectives on organisational culture Given an understanding of the 'building blocks' of culture. The various case studies of Wait Disney. fail.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. While 'Friday night drinks at the pub' is a widely acknowledged ritual. 4. 1982).g. such as disciplinary procedures or demotion reinforcement of values and beliefs in a similar way to the above • Master of Business Administration . and in the sense that these various phenomena are consistent with each other and mutually reinforcing. both in the sense that assumptions. through rituals of integration such as promotion or other forms of recognition or induction/orientation. even though in fact the decision had been taken in advance. the differentiation perspective and the fragmentation perspective. Little attention is given to the fact that visionary leaders have frequently been at the helm of organisations. e. there are others that are more subtle. and Time Warner in the textbook onwards are examples of this perspective. 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. the question arises as to what 'construction' results. This is the perspective inherent in such definitions as 'the way we do things around here' or 'normative glue' (Deal and Kennedy. are formalised rituals. Ceremonies Ceremonies. or rituals of punishment. 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. values and artefacts are shared by all organisational members. Such a perspective leads naturally to the view that culture is relatively easily manipulable.

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

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. 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. Master of Business Administration . Growth: The culture retains the founder's influence often for many years.1. After all. especially if they include a new leader. powerful subcultures are likely to emerge. Mid-life: The culture is now well developed.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. 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. An example is the textbook's typology of organisations as Academies. • • 4. way of doing business. 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. Culture and strategy As noted. Overarching shared views of culture will inevitably focus on common elements. Baseball Teams. but forces for change occur when outside managers are brought into the organisation. etc. Maturity: In this stage an organisation may find that its culture no longer helps the organisation meet a more challenging environment. Thus the focus has included a strong emphasis on culture. • The Integration perspective attunes us to factors pervading the whole organisation as a result of certain factors. As the organisation spreads its activities geographically. this can be difficult to do without major 'corporate surgery' that is. According to Edwards and Kleiner. production or marketing. However command of several perspectives leads to a more skilful and comprehensive analysis of organisational behaviour. personality. for example.4. so that we see organisationally pervasive culture as merely one option that may arise. making it difficult and time-consuming to attempt to change the culture. Clubs. However it is difficult for people not to become attached to one view rather than another. since it will inevitably constrain what we are likely to find. The differentiation perspective attunes us to variation and diversity. Briefly.1. and Fortresses. 4. New people bring different assumptions.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. major restructuring or retrenchments of managers or employees. 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. and the integrationist perspective has definitely come to predominate in most management textbook discussion. and attempts may be made to revitalise the organisation and its culture. diversifies its activities or divisionalises its structure.

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

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

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. uncertainty avoidance. The work of Hofstede reviews national culture in 40 countries across four dimensions: power distance. On the other hand.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. Societal culture is assumed to be integrated.1. or differentiated into sub-societies. artefacts and behavioural patterns differ from national culture to national culture. individualism/collectivism and masculinity/femininity. 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. That is.S. The following is one suggestion about the features of world-class work culture: Graduate Studies Program . 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. 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. acquisition of money and things.Faculty of Business. so that shared values. it relates aspects of work culture to what is felt to be needed to achieve world class best practice. beliefs. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 75 4. and not caring for others.

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

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

Formal authority: the acknowledged right to give orders and make decisions. 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. 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.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. Master of Business Administration .Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. Reward power: This has both formal and informal aspects. withholding of promotion and termination of employment. 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. although staff's perceptions of the boss's competence may affect how readily the boss's requests and instructions are obeyed. Power and Politics Page 78 interest in the topic. p. The Activity following the discussion gives you the opportunity to consider your personal sources of power. Note: this doesn't mean that they are necessarily the most important for any particular person.

they took action to enhance their power situation. or indeed whether they make it onto the agenda at all. the power is due not only to the knowledge. including environmental uncertainty. that those in power can act to perpetuate their centrality – power can define centrality. scarcity and dependency are key factors. Thus in a political view of decision-making the determination of the form items take in a meeting agenda. and second. which are those within the organisation such as a breakdown in computer systems of production machinery. but also to the general acceptance that only a certain group has the right to pronounce on matters in a certain area. not just vice-versa. 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. employees with required abilities. is a vital and particularly subtle form of power. Information power:. who were often in a position to stop the production process (Crozier. Even access to the CEO – since it may be controlled by the CEO's Executive Assistant – makes the assistant a powerful individual. perceived. The message is.Faculty of Business. the sites of expert knowledge and the sites of formal position power are likely to differ. first. and operational resources. Expert power: To varying degrees. however. 1964). That is. that centrality and unsubstitutability are. customers – is an important source of power. since it may suggest that positions of power are determined solely by situational factors beyond the control of the parties involved. Information – about what's going on. 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. 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). Control of uncertainty: Organisations are likely to face various forms of uncertainty. 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. This approach has its critics. With the maintenance workers studied by Crozier. however.) Maintaining a broad overview conflicts with the demands and advantages of specialisation. not merely indisputable facts carved in stone. even though he or she may not be paid as much as those seeking the access. technology. organisations involve specialisation. That is. but they normally must forgo a mastery of all the areas of expertise represented amongst the people who report to them. has been eroded by the greater familiarity of people generally with computers. materials. Put another way. Again. In more recent times. The amount of power increases with increasing scarcity and increasing dependence. 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. (See 'Introductory topics'. the power of the central computing department. or as an element in decision-making – may be as important a resource as any other. Graduate Studies Program . 1986). 1971). once greatly enhanced by perceptions of the difficulty of programming work. their formal power increases. which relates to markets and the supply of needed resources. As people move up the organisational hierarchy. 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. With this comes a degree of power relating to the expertise inherent in that specialisation. The classic example is draw from research undertaken in France by Crozier. which considered the case of the maintenance workers in a continuous production process.

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

Graduate Studies Program . 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. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 81 deficit by copying male behaviour because it is the interpretation. may be sufficient. This involves taking action to utilise one's power sources. Yet it is clear that. 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. New Jersey. the term 'power strategies' tends to get a bad press. enact power or challenge power sources. which enhance power. the client arena). For example.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.S. D. the capacity to create goodwill.3 Cohen. however.M. and have given little attention to the difference contributed by an individual. 4. which produces the outcomes. we have considered power as a function primarily of the situation. D.) to challenge the role of a factor as a power source. a manager may be involved in a network of managers (the corporate area). These involve the following: • • to enhance power is to increase one's power source(s). pp. Osland. resources and relationships within them. one person will not be as successful as another in a certain situation. eds J. as well as an individual's capacity to be a shrewd analyst of the situation and its potential. This involves developing either more of one's existing power sources or adding new power sources. generally.R. 4.’ in The Organizational Behavior Reader. (See Chapter 16. are nevertheless active agents in the construction of the situation in which they are located. Other arenas are likely to form around particular issues. Personal power: Thus far.2.Faculty of Business. recognises that power strategies indicate how individuals. Prentice Hall. We often see it in terms of simplistic recipes guaranteed to solve all one's problems by revealing the secret of being powerful. Rubin. and Exchange to Accomplish Work. and so on. Reciprocity.3 Power strategies+ Rather like the notion of power itself.A. & Bradford. without having complete control over their situations. Just the knowledge that one has the capacity to coerce. Interpersonal style. several networks of relationships. 461-469). ‘Influence with Authority: The Ude of Alliances. for example. even given the same situational factors. • Reading 4.2. 2001. not the behaviour alone. A more sophisticated approach. can all play a part. Taken as a whole. power strategies or tactics are centred on actions. A. Kolb. (Note that in many cases. Upper Saddle River. & I. to enact power is to call on the potential inherent in one's power sources.L. By 'arena' is meant the idea that any one player (or stakeholder) is involved in. it is not necessary to utilise one's power sources to have actions taken that are in line with your wishes.

Note that it is an analytical device rather than necessarily an accurate description of the exact process whereby outcomes are produced. They are designed to help you develop your understanding of the various topics in this Course. the management and interpretation of meaning. objectives.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. 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. gender and personal power. membership of counterorganisations. information. Systematically listing the objectives. Organisational culture Consider the list of basic assumptions above. control of scarce resources. 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. Power and Politics Page 82 Within a given arena. control of uncertainty. and how to manage it. The arena model is thus a form of power audit. Activities Note: The following activities are optional.1 Examine your organisation's culture (I) Master of Business Administration . control of decision-making. resources. Political models of organisations have raised the profile of power as an explanatory concept. 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. likely tactics and outcomes for each player in a situation can give a comprehensive view of the political strength of each. use of organisational rules and regulations. There are a variety of power sources that include reward power. The effect of these power sources needs to be understood in the context of taken-for-granted understandings to understand how they operate. or even to prescribe what action to take in a current situation. resources. network power. expert power. It can be used either to interpret a past situation or to predict the outcome of a currently evolving situation. tactics and outcomes. 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. there will be players. which are inherent in any organisation. • • • • • players are the parties involved in the particular issue at stake. is central to an analysis of organisational behaviour.

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

have also become noticeable. Now compare the results to the culture of your present workplace. if any. In addition. Use the five authors' lists to assemble your own single.Managing Organisational Behaviour MGT701 Module 4 Organisational Culture. summarising list of sources of power. describe what organisational lifestage factors may be influencing the evolution and nature of your organisation's culture. Describe your own organisation's culture at this stage of its history. 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. What subcultures.10 Analyse the political content of a current or past situation.5 Examine your organisation's culture (III). 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. since most things have the potential to be the source of power in some situation. 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. 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. comment on any items that you have combined. Add any sources that you feel are inadequately covered in the lists given and comment on why you added them. 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. They are unlikely to be exhaustive. and how feasible are such changes? Consider the lists from the authors above. 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. Fill out the questionnaire from Robbins called "What Kind of Organizational Culture Fits You Best?" and score it according to the directions. and comment on the links between them. Power and Politics Page 84 Activity 4. or the list of power sources we have just elaborated on. 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. Neither do they present mutually exclusive categories.8 Devise your personal list of power sources Activity 4.7 Choose your preferred organisational culture. what might you do to improve your personal power? Activity 4. to build up a picture of the kind of workplace in which you would feel most comfortable. and that not all strategies lead to predictable outcomes! Master of Business Administration . 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.

2000. S. 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. Bergman. Instructor’s resource manual. Graduate Studies Program . R. pp. 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. and how to achieve it. The process of organising . • • • • Learning resources Anderson PA 1983. In the first part of this module. 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. M.the second of Fayol’s management functions . vol.is how an organisation's structure is created. I & Coulter. 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. in Robbins. 'Decision-making by objection and the Cuban missile crisis'. In the section on decision-making. 28. Management. Stagg. 2000. 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 characteristics of a boundaryless organisation and this structure's appeal.Faculty of Business. autonomous internal units. and team-based structures and why organisations are using them. perhaps – how most decisionmaking fails short of the ideal or rational model. R. Administrative Science Quarterly. project structures. Prentice-Hall. knowledge of the four contingency factors that influence organisational design gained an understanding of matrix organisations. which is clearly part of the essence of management. we examine – paradoxically. Australia. Bergman. 201–222. In examining a variety of other approaches to decision-making we gain a broader and more realistic view of what makes a good decision. and be able to explain the concept of the learning organisation and how it influences organisational design.

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

Work specialisation or division of labour refers to the degree to which tasks in an organisation are divided into separate jobs. However. Robbins' textbook. 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. more efficient employee training. organisational design is the process of developing or changing an organisation's structure. rather than in a single long-term role. In turn. fatigue. it saves Ericsson from continually employing external consultants or contract workers. It involves decisions about six key elements: work specialisation. In summation. Ericsson created a highly organic section within the organisation's structure called the ‘Inside Partners Group’. 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. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 87 5. Graduate Studies Program . consisting of internal professionals who are available to work on assignments across the organisation. departmentalisation. Whilst this approach may not be suitable in all organisations. organisational structure is the formal framework by which job tasks are divided. Historically. lowered productivity. stress. grouped and coordinated. work specialisation was viewed as a source of unending productivity improvements. span of control. poor quality of work. Other advantages of work specialisation included improvement in employees' skills at performing a task. and encouragement of special inventions and machinery to perform work tasks. increased absenteeism. centralisation/ decentralisation. it does answer Ericsson's need for flexibility as well as maintaining expertise in-house and an ability to share it across the organisation.Faculty of Business. where employees and managers might both reap the economic benefits of efficient job design. 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. For example.1. with employee boredom. chain of command.1 Organisational structure Introduction Organisations are experimenting with different approaches to organisation structure and design. and formalisation. 'Foundations of Organization Structure'.1 Definitions of organisational structure and design While organising is the process of creating an organisation’s structure. Chapter 15. At the same time. The goal is to find structural designs that will best support and facilitate employees in their work. 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. the reality was usually different.

A mechanistic (or bureaucratic) organisation is an organisational structure that is characterised by high specialisation.1. The applicability of each approach to organisational design depends upon the Master of Business Administration . Responsibility is the obligation or expectation to perform.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 88 Once work tasks have been defined. is a structure that is highly adaptive and flexible with little work specialisation. 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. 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. extensive departmentalisation. and unity of command are not as significant in many contemporary organisations. Customer departmentalisation continues to be a highly popular approach.e. Centralisation refers to the degree to which decision making is concentrated in the upper levels of the organization. the nature of the job. responsibility. Geographical departmentalisation ( grouping jobs on the basis of territory or geography). 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. grouping jobs by functions performed).. On the other hand. 5. Authority is the rights inherent in a managerial position to give orders and to expect the orders to be obeyed. 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. minimal formalisation and little direct supervision of employees. authority. the mechanistic and organic approaches. a limited information network. 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. The five major ways to departmentalise are Functional departmentalisation (i. employees have a lot of freedom and can exercise discretion in the way they do their work. These organisations have explicit job descriptions. 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. and little participation in decision making by low-level employees. while Decentralisation is the handing down of decision-making authority to lower levels in an organisation. on the other hand. An organic organisation. less formalised organisation. and clearly defined procedures. the strength of the organisation's culture. narrow spans of control.2 The contingency approach to organisational design There are two generic models of organisational design. the skills and abilities of the subordinates. and this has been mirrored by a trend towards larger spans of control with decentralised decision making and greater employee discretion in their work. lots of organisational rules. Span of control within an organisation refers to the number of subordinates a manager can supervise effectively and efficiently. Highly formalised organisations are characterised by employees with little discretion and high levels of consistent and uniform output. Product departmentalisation (grouping jobs by product line). chain of command. As organisations empower employees and as technology breaks down the barriers between organisational levels. and is important because it determines how many levels and managers an organisation will have. high formalisation.

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

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

1 Alternatives to the rational model of decisionmaking Bounded rationality or 'satisficing' According to this view. In a matter of minutes on their first day of talking to camel dealers and salesmen. 'We didn't want to back to the office and say. see 'The case of the perfect camel'. the logical course of action is to ensure that the marginal cost (time. The case of the perfect camel It was September 1985..2. a satisfactory course of action taken now may be preferable to a 'superior' course of action discovered in six months time. So they didn't buy it. Specifically. Much of the movie was set to be shot on location in North Africa. 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.. We'll get back'. On the downside. 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. time and cost factors may mean that although everyone involves is agreed on what outcome is sought and how options are to be evaluated. money etc) of an extended search for alternatives does not outweigh the marginal benefit. We'd keep looking.. below. there may be a tendency for decision-makers to reject solutions too easily found.Faculty of Business. 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'. factors may change in the intervening period to render the later superior option redundant. where the two superstars were to ride across the desert on a camel. Moreover. '. and production was about to begin on Ishtar .guess what. For an example of this. So one of the first things the production needed to buy was a camel. We figured what the hell. Opportunity costs also play a part in making early choices desirable. recalls a production source close to the camel. 'We had lots of time to spend. it needed a wide-eyed camel that would look blind on screen. Graduate Studies Program . It also happened to be the first camel they looked at. Put briefly. [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]. A couple of production staffers were dispatched to Marrakesh with a blank cheque to find a perfect camel and four stand-in perfect camels.. For example. and lots of money'. we bought the very first camel we looked at'. they found a perfect camel for about $700. the company is forgoing a return on the funds that may be critical to the continued existence of the company.

the conservative bias of incrementalism and satisficing become clear. rather than larger alterations to the decision rules. and days of it can cost thousands of dollars. It is political in the sense that successful action is determined by action that has taken into account the contested nature of organisational activity. 49). But every camel they looked at suffered by comparison with that first exquisite camel. in which collective action is constructed over time by the parties involved. like the bounded rationality model. the buyers agreed. Similarly March (1982. This may mean that considerably superior options – perhaps identifiable if only minimal amounts of resources were expended – remain dormant. and in which common objectives are the result of negotiation and bargaining. 34) argues that incremental decision-making is influenced by 'the logic of obligation. Again. (Source: Blum 1987) The concept of bounded rationality is essentially a variant of the rational model. he said. p. This is because it is much easier to assess the significance of marginal changes than of significantly different alternatives. It is seen as a process of muddling through – assessing what is possible by taking into account the political reality of the situation. (It's important to know that a camel search is no cheap date. The dealer shook his head. 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. 'Remember us? We'd like to buy that camel of yours that we looked at the other day'. Every minute of a production staffer's time on a location shoot – at union wages with costly travel and hotels – is worth money. The 'implicit favourite' model. The facial hair would be beige or brown. It assumes that decision-making is essentially a technical matter. the incremental model may be considered a variant of the rational model. the Master of Business Administration . p. It was always something. 'Let's see if we can buy that first camel we looked at'. The humps would be too large or too small. duty and rules'. As such they reduce the extent to which change disrupts the existing weave of understanding and commitments (Colebatch and Degeling. 'Sorry'. optimality would prevail. In particular. The models we consider hereafter do more than challenge the rational model on the grounds that it tends to be technically infeasible. The camel buyers continued their search through the Sahara for the perfect camel and the necessary backups. 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. In this way. 1986. they both mean that if present practices are satisfactory.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 92 Two days went by. there is no particular pressure to look further afield. If only complete knowledge were available quickly and cheaply. So they went back to the dealer who'd showed them that lovely specimen. 'We ate it'. Just as bounded rationality involves smaller.) Finally they figured they'd been looking long enough. Lindblom's implicit view of the nature of organisations is a political one. the incremental model involves only minor alterations to the outcomes.

defending the role of intuition in decision-making. an early favourite alternative is chosen – sometimes without the conscious awareness of the decision-maker. The intuitive model This model attempts to re-value the role of intuition in decision-making. so many decision-making processes must have the appearance of rationality. 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'. decision-making more commonly involved sequential yes/no choices over an array of compatible course of action. if not the reality. 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. They are also linked by the tendency in our culture to de-value intuition.Faculty of Business. are really only bolstering a decision which was effectively taken some time back on an intuitive basis. 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. Not making things worse: Whereas it is normally assumed that the whole point of making a decision is to solve a problem. but identifying something as a problem does not directly identify a solution. 'Global goals' start things off by identifying a situation as a problem. Anderson (1983. There is a clear link between the implicit favourite and the intuitive models in bolstering and. it may actually represent the accumulation of experience and tacit knowledge being brought to bear on a problem. to genuinely consider all alternatives at once would overwhelm the information-processing capacity of decision- Graduate Studies Program . 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. p. despite appearing to resemble rational sequential evaluative steps. arguing that instead of being an essentially irrational and therefore undesirable element in the process. 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. in the latter instance. Rational analysis is still more defensible than intuition in management circles. Discovering goals: Whereas the rational model assumes that identifying goals is the first step in making a decision. once a problem is identified. Other parts of the decision-making process thereafter. 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. He argues that in complex policy matters. a more accurate description is that goals are discovered in the course of making a decision.

its norms may determine: • • • what is mentionable or unmentionable what interests matter how things should be done. including new product launches. 3). set out the results of 150 cases of decisionmaking. For example. This is not as odd as it first sounds. from the point of view of thinking about decision-making. including its owners. solutions looking for issues to which they might be the answer and decision-makers looking for work'. we should be alert to the possibility that rather than the decision necessarily being activated by the existence of a problem.. Top decisions. is that once again the usual situation of setting out to solve a problem and achieve goals is displaced. This time. there is a predisposition to find answers in terms of the ways such a group would normally solve such problems. The result. 3) argue that: '.. (Cohen et al. 1972.000 employees. p. The 'top decisions' or 'political models' Hickson's et al. 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. main users of its products or services. main suppliers. with a median size of 2. organisation restructuring and take-over decisions. managerial and other employees. The garbage can model Cohen et al. for example. p. A wide range of kinds of decisions were studied.. Master of Business Administration . an organisation is a collection of choices looking for problems. From this perspective the organisation and its norms are the framework for decision-making which fixes what topics are allowable and which are not. however. the model points out that sometimes the solution exists before the problem. issues and feelings looking for decision situation in which they might be aired. that goals discovery means that decision-making processes can begin without waiting for clarification of all goals. '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'. 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. which is heavily staffed with hydroelectric engineers. in terms of building more dams. 1986 book. 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.600 employees. Central to this model is the idea that an organisation is set up by and sustained by a 'dominant coalition' of powerful stakeholders. In the same way. and so on. and that the risk avoidance decision is an uncertainty reduction practice. When an organisation like a hydroelectric authority. (1972.. is asked to consider the problem of generating more electricity. in thirty organisations ranging in size from 100 to 57.Managing Organisational Behaviour MGT701 Module 5 Control and Decision-making Page 94 makers. From this perspective. as we have seen.

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

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

but not by suggesting that rationality does not exist. eds J. 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. Rather. Osland. Upper Saddle River.2. D. (See Chapter 15. which is the source of both problem-solving rationality and interest-accommodating rationality. according to Feldman and Marsh: • • • much information that is gathered and communicated has little relevance to decision-making. but decision-making does not lack all direction. 5.H. in their view.2. Rubin. reject the garbage-can model.S. & I. On the contrary. and. that is. Hickson et al. 5. is not adequate for dealing with the social process of reaching a strategic decision. 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. ‘Two Decades of Research on Participation: Beyond Buzz Words and Management Fads’. They argue that while the image of solutions and problems being thrown around together in a dented wheelie bin is a fun idea. there is evidence that information is rarely used in the way the rational model would assume. given this wider definition of rationality.A. considered alone. pp. V. much of the information that is used to justify a decision is collected and interpreted. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 97 Reading 5.2 A new form of rationality? Hickson et al. Prentice Hall. Graduate Studies Program . 429-436). Rationality of control. the problem-solving rationality is only one possible kind. 2001.3 Perspectives on what happens to information in decision-making According to Feldman and March (1981). An organisation is certainly 'a collection of choices looking for problems’.M. New Jersey. Kolb. there is generally a hand on the steering wheel. in The Organizational Behavior Reader.2 Vroom. As we might expect. 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.Faculty of Business. add to the critiques of the rational model.

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

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

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

Graduate Studies Program . Which do you agree with and why? Give some examples from your experience.5 Compare the views of Etzioni and Cadbury on decisionmaking.Faculty of Business. Etzioni seems to argue that putting off decisions may be the most humble act. Activity 5. On the other hand. 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.

and in organisational behaviour and HRM. both as an issue in change management and as an ideologically laden theoretical term considered and worked with Organisational Development (OD). politically-based. organisational behaviour and HRM. Finally.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 102 Module 6: Organisational change. 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. and the way in which they interact with organisational stakeholders. every manager is involved with human resource decisions. and ask you to analyse your own and your organisation's preparedness to respond to this situation. and management issues of the future Overview In 'Organisational change’ we approach the issue of change which. Master of Business Administration . organisations – and the world in general – are changing more rapidly than ever before. 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. Whether or not an organisation has a human resource department. we briefly look at the relationship between organisational behaviour and each step in the human resource management process. Learning outcomes At the end of this Module. 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. but which. 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. is at the heart of management and is the supreme test of good management. again. we briefly invite you to consider a range of reasons for the common observation that.

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

the idea of the organisation as organism emphasises the related notion that it needs to adapt to ensure its survival. are fundamentally influenced by comparisons between the nature of past. Robbins' textbook. For example. In the second part of this Module. in this Module we will focus on two perspectives. resource costs and economic conditions (interest rates. or leadership or cultural phenomena. Textbook Master of Business Administration .1. 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. 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. Organisations by their nature are sites of change. consumer preferences. In this context. 6. see the section on metaphorical perspectives in 'Introductory topics'. has been based on the view of the 'organisation as political system'. however. To refresh your memory of this approach. trade practices or dismissal laws). change and resistance to change are inevitable. and so on). 'Management Issues of the Future'. which has been at least as important in research. which predominates in this and most management textbooks.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 104 6. whether incremental or revolutionary. process technologies. This is the perspective. in which conflict. However. present and possible future practices.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.1 Organisational change Introduction The management of change has been at least an underlying theme of every Module in the course. Chapter 18: Organisational Change and Stress Management. Another perspective. organisational change is referred to as organisational development (OD). 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. For an organisation its environment includes such factors as competitors' activities. As mentioned in Module 1. The first is based on the assumption of the Human Relations 'organisation as organism' metaphor. legislation (for example equal employment opportunity. 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. which have dominated the literature. the ways in which people act and react with regard to decision-making.

Even so. within the arena of planned change.g. culture. In itself. & I. The notion that organisational change can be explained in terms of an organisation responding to environmental pressures is a useful one. for whom and where. 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. A common reorganisation is to move from a functional structure whereby all the activities involved in a given function (e. 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. For example. Prentice Hall. Kolb. 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. which is referred to as 'first order change' and change that is multi-dimensional. 2001. however. marketing) are located together. for example through computerisation. Strategy changes when the underlying premises – generally set by senior management are changed. pp. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 105 Reading 6. Focal points of change Common focal points for organisational change are structure. eds J. technology and job design. Job redesign occurs when the tasks or responsibilities associated with a job are changed. to the difference between planned and unplanned change and. Culture changes when the taken-for-granted beliefs and understanding of people in an organisation change. to 'reposition' a product in the market or to sell off 'non-central' aspects of a business and rely on subcontracting. and their members reacting in concert to a clearly defined course of action. Osland.S. ‘Change is Everyone’s Job: Managing the Extended Enterprise in a Globally Connected World’. first. organisations themselves may seek to alter environmental factors rather than themselves being the ones to change. for example to expand an organisation's product base (diversification). Structural change occurs when there is an alternation to the formal 'clustering' of tasks and responsibilities in the organisation. multilevel. Upper Saddle River. in The Organizational Behavior Reader. The second part of this Module will enlarge more on the latter type of change. Technology changes when the means of provision of goods or services is altered.M.1 Kanter. discontinuous and radical. This may involve the further fragmentation of task leading to individual jobs becoming more specialised. D. 562-576). public relations and collusion between competitors as means to this end. Consider tactics such as political lobbying. which is called 'second order change'. strategy. The textbook makes a start by alerting you. where organisation is determined by what is produced. New Jersey.Faculty of Business. but it needs to be recognised as a very general and potentially simplistic idea.A. Other common structural changes today include lowering the number of levels in the hierarchy. (See Chapter 20. the differences between linear and continuous change. Rubin.M. R. to a marketing based structure.

2 The organisation development approach to managing change The term most usually associated with planned organisation change is organisation development (OD). rather than purely hierarchically imposed kinds. a problem with this argument is that change within organisations is likely to be sought because somebody or some group is seeking it. organisations promise reform and stage a ritual drama called change (Bolman & Deal. While it is most common to talk of resistance to change as a problem that managers confront. change can play a symbolic role. When external constituencies question the worth of existing practices. as the discussion in 'Control and decision-making' on the garbage-can model of decision-making pointed out.1. Indeed.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 106 objective of organisational activities. 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. It also usually assumes incremental rather than revolutionary change – an assumption that is a possible source of problems. 1987). For further discussion on change in terms of its political and cultural elements. 274). as is explained later in this Module. However. for managers to make strategic choices based on their own areas of competence and career payoff. Master of Business Administration . Resistance to change Overcoming resistance to change is an understandable concern of those seeking to implement change. as the preceding discussion makes clear. Exponents of OD also usually stress the importance of various forms of collaborative management. p. p. 1991. It is not uncommon. It has been defined by Huse (1982. The textbook discusses this issue. But in addition. and diverse interpretation of appropriate courses of action even where a common objective is agreed on. as Kanter (1983. 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. 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. 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 fear of the unknown as 'basic human characteristics’. and indeed the textbook does this in citing habit. 6. security. Reasons for resistance to change It is sometimes proposed that resistance is a natural response. 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. Finally. it is also a behaviour they may manifest.

p. To these classic OD approaches have been added interventions that incorporate a focus on structure. 256). most people will respond to opportunities for responsibility. and organisational structure can be modified to more effectively satisfy the needs of the organisation. That is. challenge and interesting work organisational effectiveness and efficiency are increased when work is organised to meet individual needs for responsibility. The OD approach has traditionally emphasised and sought to enhance the process of learning by the group. through the emphasis on the need for a consultative participative approach. The change agent may undertake a preliminary diagnosis and data collection but from there the group takes charge of both problem and data. the group and the individual people hold many false assumptions about individuals. challenge. discussing it. 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 . group tasks. that is on the design of jobs. process consultation and team building. 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. and developing action plans for their own preferred courses of action. OD is also intended as an ongoing interactive process (French and Bell.Faculty of Business. rather than make pronouncements as 'experts' on the solutions to problems. groups and organisations that could be rectified through open confrontations many so-called personality clashes result from problems of incorrect organisational design (Huse. Robbins reviews a number of the specific technologies of OD. change agents have sought to develop problem-awareness skills and problem-solving skills among their clients. However the focus on process remains central. survey-feedback. the appropriate view of conflict. These interventions include job enrichment (expanding the range of skills in a job) (see textbook discussion) and the greater use of teams. 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. 1978). interpreting it. especially in the assumptions concerning individual motivation. and so on. • • • From this list it is possible to discern the strength of the Human Relations and unitarist thinking within the OD approach. 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. on the technology used and on the structure of the organisation. 1982. including sensitivity training.

as Dunphy and Stace (1988) argue. However. failures in OD interventions are not an indicator of problems with the method itself. it relates to incorrect implementation rather than the fundamental characteristics of the approach. The operationalising of the action research model (see the discussion by Robbins of action learning on pp. However other theorists of change management point to three other issues: the pace of the change. 1988). this assumes that there are no conditions that are so pressing that a rapid response is required. including the formal leader. 226). French and Bell's explanation of problem with OD is essentially 'technical'. with expansion of the effort stemming from these successes an open. that is. its originators French and Bell (1978. 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. The pace of change is to be slow and steady.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. Master of Business Administration . or at least support from a higher echelon with subsequent top management involvement participation of intact work teams. However. The pace of the change OD involves an 'ideology of gradualism' (Dunphy & Stace. • • • • • • • As noted earlier. continuous rather than abrupt. participation in the change process and power as an organisational issue. whereby effective change is assumed to require small incremental steps. p. 730–731) early successes. 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. according to the prime proponents of OD.

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

6. control and the division of labour. Schein's approach. incorporating elements of previously accepted arrangements into the new proposals stress structure modifications such as location. it may help or hinder the change. which emphasises the inherent politicality of change.3 Managing change as a political process In contrast to the OD approach to organisational change. 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. in similar vein. it may sometimes be wisest to withdraw fro the melee. while 'grafting on' some attention to political dynamics to the key dynamics and assumptions of OD.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 110 • • start with a small change. We move now to a consideration of organisational change as a political process. 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. p. all claiming organisational change expertise. if a number of groups become involved in the change. the in-between-not-certain and the new methods be prepared for the unexpected. the greater the probability of modification managers and employees who feel threatened need substantial support. When the change program is assessed as less than successful. especially if too many cooks are spoiling the broth. the group that withdrew from the exercise may have retained or even enhanced its influence. build up their confidence. 249). is a modification rather than a radical overhaul of the approach. 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. 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. • • • • • • • Master of Business Administration .1. and then push for more significant changes. 1980. there is a school of thought. 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 longer the time span. Stephenson. get key people on side. 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.

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. evaluate success. '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. To manage power. anxiety and uncertainty among some organisational members and hence counterproductive behaviour from the standpoint of those introducing the change. Do not pretend to have knowledge you do not have Graduate Studies Program . To motivate constructive behaviour. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 111 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. 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: • • • • 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. you need to: • • • • get support of key power groups demonstrate leadership in support of the change use symbols build in stability. He uses the headings 'Bases'.Faculty of Business. The problem of organisational control: the likely disruption to existing control systems during periods of change. All three need to be managed. 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.

589-594). 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. Testing incumbents will speed up the departure of those who must go and build up the confidence of those who measure up.1. 2001. ensure that they convey the message you intend be well-read and well-practised in basic organisational and interpersonal skills. New Jersey. pp. Rather than relatively generic courses of action. Prentice Hall.M. these approaches emphasise variation by context.S.A. D.4 Contingency approaches to managing change As with contingency approaches to leadership. H. Rubin. (See Chapter 20. • • • • Reading 6. in The Organizational Behavior Reader eds J.A. ‘Rules of Thumb for Change Agents’. 6. and Paterson. external pressures can be used against internal resisters. such as proposed by Nadler and Tushman. Make maximum use of internal expertise but bring in external expertise in its absence reform senior management first. Kolb. your average pace must be such as to defeat the adaptive processes of the old system. & I. conform to a planned schedule for change never cease scouting for recruits. Upper Saddle River. Properly mobilised. Reliance on the old industrial system should decline as managerial skills improve. Use selection and training processes to improve desired skills handle industrial relations skilfully. Vary the pace on different 'fronts' to dictate the terms of battle timing should. Understand and use the media symbolic significance will be read into your actions. but where the old system is involved. Master of Business Administration . contingency approaches to managing change focus on the way the context does or should influence the nature of change practice. Tactics • pace is the key tactical variable.2 Shepard. which stressed the way variations in the situation should influence the style and/or tactics of the leader.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 112 • • • build your prestige outside the organisation. If necessary attack by exploiting existing divisions identify individual strengths and weaknesses. Osland. as far as possible.

which is organisation-wide (corporate transformation). or is characterised by the use of explicit or implicit force (coercive). or major change in some part of the organisation (modular transformation). 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 is characterised by managers issuing edicts based on their formal authority (directive). 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. 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 . Scale of change refers to whether the changes are based on: • • • • fine tuning of existing practices. (Compare this to the textbook's distinction between first-order and second-order change). Fit. The latter two types involve discontinuous but substantial change. The key distinction is between the first two types and the latter two types. using resistance to change as the key variable whereby the context for the use of each is described. 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.Faculty of Business. Style of change leadership refers to whether the change process: • • • • involves employees in decision about both the goals and means of change (collaborative). On the basis of these two dimensions. or small changes (incremental adjustments). or major change. or requires managers to consult employees (consultative). The first two involve incremental approaches characterised by a series of adjustments.

Nevertheless. allowing for the possibility of both OD and political approaches depending on the external circumstances of the organisation and managers' capacity to judge them. Specifically: • participative evolution is appropriate when the organisation is either 'in fit' but needs minor adjustment. Master of Business Administration . 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. Conclusion Despite the shortcomings of the organisational development approach. They also recognise that managers have different 'interpretative schemes' and that this may limit management's recognition of the changes necessary to attain fit. but key interest groups oppose substantial change.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. The contingency approaches do something of both. the model is valuable in that it encourages reflection in regard to the change strategy-context relationship. 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'. has the advantage that it takes into account the complex and non-deterministic nature of organisations. • • • The authors recognise that the model is necessarily a simplification. people. 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. With this in mind.2 Organisational Behaviour and HRM Introduction The quality of an organisation is. it is still regarded as a very attractive model for guiding change. and as a consequence. For example. (This resembles the approach recommended by Paterson. determined by the quality of the people who work for the organisation. 6. These things are not incorporated into the model. to a large degree. on the other hand. the need to change is urgent. 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. key interest groups oppose change dictatorial transformation is appropriate when the organisation is 'out 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. the degrees of fit. although time is available. or resistance and of urgency are treated as relatively unambiguous. The 'organisation as political arena' change model.

These high-performance work practices are human resource policies and practices that lead to high levels of performance. Upper Saddle River.000-employee General Electric Corporation. Rubin.Faculty of Business.e. Various studies have concluded that an organisation's human resources can be a significant source of competitive advantage. 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. Reading 6. Managers begin with a current assessment of the organisation's human resources and reviewing their status." To become a highly performing organisation starts with being able to recruit and select the best applicants for various positions within the organisation. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 115 Jack Welch. every manager is involved with human resource decisions. 1999. what mix of skills & experience do we have? For example. In this topic we will examine the following issues: • • Why HRM? The Human Resource Management Process 6. 6. employee involvement and problem solving groups.1 Why HRM? Whether or not an organisation has a human resource department. Osland. To achieve this. & I..2.3 Pfeffer. Job training and personal and professional development are other activities that are also an important part of managing a company’s human resources. you don't have a chance. the head of the 220. and include self-directed work teams and total quality management.S. pp. 471-484). Prentice Hall. ‘Putting People First For Organizational Success’. use of employee suggestions and attitude surveys.A. coaching and mentoring. (See Chapter 17. Kolb. New Jersey. such a report or Graduate Studies Program .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. J. & Veiga. not just as costs to be minimised or avoided. This is typically done through a human resource inventory or audit – i. managers have to fundamentally rethink the organisation's workforce and how they view the work relationship.2.M. in The Organizational Behavior Reader eds J. It also involves working with and through people and seeing them as partners. 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. What's the alternative? Wasted minds? Uninvolved people? A labor force that's angry or bored? That doesn't make sense. D. J.

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

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

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

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

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

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

4 Kerr. Master of Business Administration . considering the difficulty of making predictions about the future. D. not the organisation. S. The most recent trends in career development have actually been in the reverse direction. because it seems very one way – i. 508-515). 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. Kolb.. and market opportunities. Rubin. We need to look first at career development the way it was: In the past. it is the individual.e. While Hoping for B’. Now.3 Management issues of the future Introduction Perhaps wisely. Robbins has not devoted a specific chapter to management issues of the future. 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. Upper Saddle River. (See Chapter 18. The optimum career choice is one that offers the best match between what a person wants out of life and his or her interests. 1995. career development programs were typically designed by organisations to help employees realise their career goals. in The Organizational Behavior Reader eds J. 6. including for the future of management. 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.M. Nonetheless.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 122 Reading 6. 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.S. education & training. abilities.A. Prentice Hall. New Jersey. known as the ‘sea change’ or ‘down shifting’. but what is the org responsible for – eg. Osland. There is no shortage of theorists of the future. who is responsible for his or her own career. However. contract versus tenure etc. & I. Career development A career is defined as the sequence of positions occupied by a person during his or her lifetime. it is very clear what the employee is responsible for (results driven). career goal setting. widespread internal changes have altered the idea of a traditional organisational career. ‘On The Folly Of Rewarding A. 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. pp.

there are many examples of second-order change which. Developing models. Extrapolation. Too often. well-documented occurrences. the key to their success seems to be their philosophical approach to constructing scenarios. and airlines using the approach to prepare pilots for various situations. Scenario development is an approach of which Royal Dutch Shell has become an outstanding exemplar.3.1 Ways of predicting the future As noted in the chapter on decision-making.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.Faculty of Business. However. 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 . According to its supporters. low and middle position on the future of their company or the economy. 6. games or simulations scenario development paradigm shifts. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 123 6. by definition. According to Schwartz (1991). leading to quite different scenarios. resist the kind of prediction that relies on current trends extending in a linear manner into the future. Ulrich and Lake (1989) have identified four major methods that are used for arriving at predictions about the future: • • • • extrapolation developing models.3. involves researchers making assumptions about future growth or development based on historical. 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. games or simulations that represent the future is familiar to us from the practices of car manufacturers using dummies to test safety features. true scenario developments assume the impact of various factors and hypothesise the range of outcomes along a variety of dimensions. managers believe they are constructing scenarios when they estimate a high. also called trend analysis or forecasting. 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.

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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

Graduate Studies Program

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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

In addition. such as flexitime and compressed work weeks part-time work. where people who had worked on the land needed to be retrained to use machinery in factories. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 127 • • • women are tending to have their babies later. and yet are among the most necessary given the demands of the new economy. including phased retirement. including both regular and irregular forms of part-time work with and without benefits equivalent to those of full-time employees sharing options. part-time work and early retirement. Some companies are already converting formerly wasteful and environmentally harmful activities into potentially profit-making ventures. 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. especially in two-career families. 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. One of the key skills that people will need to learn is team skills. Flexibility in work practices A range of different ways for people to do their work will need to be devised. 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. the move to the knowledge economy will similarly require retraining for a workforce which will comprise 70%–80% 'knowledge workers’. such as job sharing and work sharing (where some or all of the workforce temporarily reduce their hours to avoid layoff) retirement options. 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. Implications of change Retaining and ongoing development In a situation analogous to the industrial revolution. which are currently not well practised in most organisations.Faculty of Business. These include: • • • • different ways of working the hours. it has also been argued that some skills have been Graduate Studies Program .

Retailing. rewards for individuals and teams. work done or some combination will come to the fore empowerment will become the basic approach for team leaders and managers.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. cleaning. Managing the International Environment Identifying and relocating executives able to perform well in the new global environment is a pressing issue. such as parental leave and other leave options. 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. not necessarily for a specified purpose. • Growth in Service industries Not everyone will wish to or be able become knowledge workers. transport. and productivity awards. Choices between rewarding employees on the basis of competency possessed. The failure rate for expatriate personnel is unacceptably high. 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. catering and leisure are all industries with large requirements for competent but semi-skilled workers. Master of Business Administration . and that some of those who have retired will need to be enticed back to the organisation • leave.

1 Classify a recent change in your organisation. 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. Did any of these arguments hold true in the instance of change you are considering? Explain. 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. eds J. Describe an instance of planned and successful organisational change that did not follow the principles of Organisational Development. Prentice Hall. ‘The Growing Epidemic of Stress’. Activity 6.4 Cartwright. in The Organizational Behavior Reader. What are the likely spin-off effects of the change? Activity 6. C. if any. Rubin.4 What makes organisational change work? Activity 6. New Jersey. (See Chapter 5. pp. also discuss the links that the change has with other categories. University of the Sunshine Coast Course Work – Managing Organisational Behaviour MGT701 Page 129 Reading 6.S. Consider an organisation of your choice.2 Consider again the change you discussed in the previous activity. Organisational change Consider a change that your organisation has undergone recently.Faculty of Business. 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. 2001. Why did it work? Analyse it in terms of two of the non-OD models of organisational change described in this chapter. Consider again the change you discussed in Activity 1 of this Module. and recall an instance of planned change which was unsuccessful due to resistance to the change. & I.A. Activity 6.5 Resisting change. Osland. 169-184).M. 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 . on the part of management. D. What were the reasons behind the resistance. in your view? Why? Activity 6. Activities Note: The following activities are optional. & Cooper.3 Can external change be managed? Consider once again the change you discussed in the previous two activities. What would have made it work even better. They are designed to help you develop your understanding of the various topics in this Course. Did it encounter any resistance within the organisation? Was this resistance. Kolb. do you see any basis for the argument that terming reluctance to change a form of 'resistance' may be ideologically based? Discuss.L. Consider an organisation of your choice. Upper Saddle River.

8 Examine your organisation's prediction techniques. progressive organisation have asked you – a HR team leader – to provide a brief report on the following problem: Activity 6. and how they might influence the company culture. What impact has the knowledge economy already had on the way you work? What changes can you anticipate for the future? Activity 6. claiming that this questionnaire would satisfy the board of directors’ demands. you realise that they in fact measure McGregor’s Theory X and Y views of human nature.Managing Organisational Behaviour MGT701 Module 6 Organisational Change and Management Issues of the Future Page 130 Activity 6. and another a mid-range score. one very high. 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.9 Examine the impact of the knowledge economy Think of some organisations you know well. Upon looking at the questionnaires. general employee values and behaviours. One candidate scored very low. The HR manager requests that you specifically report on the relevance of the instrument and the subsequent significance of the candidates’ scores. How will they change as a result of the knowledge economy? Master of Business Administration .7 Managers’ perspective of others and influences on the HR process The company have been seeking to recruit a new CEO.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. Organisational Behaviour and HRM The HR Director of a large. 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”. and finally. The HR director has asked you to interpret the candidates’ scores on this instrument. 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. steps in the HR functions.

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

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