REVIEWER IN ORGANIZATIONAL BEHAVIOR

Module 7
LEADERSHIP

 A process wherein an individual influences and encourages others to achieve the organizational goals objectives
and manage the organization so that it becomes more coherent and cohesive to work.
An effective leader should possess the following qualities:
1. Commitment towards the tasks and duties allocated.
2. Ability to communicate well, taking the ownership of the tasks;
3. Honesty and integrity,
4. Ability to take the right decisions and that too at the right time;
5. Creativity and innovation
6. Ability to inspire others.
The Trait Theory of Leadership by Ralph M. Stogdill:
● Physiological Traits
● Socioeconomic characteristics
● Personality traits
● Intellectual traits
● Task-related traits
● Social Characteristics
● Some of the other traits being charismatic, adaptive, creative, unique.
EMOTIONAL INTELLIGENCE

 People with high EQ demonstrate a high level of self-awareness, motivation, empathy, and social skills. Daniel
Goleman, (coined the term EQ) believes that EQ is a threshold quality: it matters for entry-to high-level
management jobs, but once you get there, it no longer helps leaders because most leaders already have high IQ.
“What differentiates effective leaders from ineffective ones becomes their ability to control their own emotions and
understand other people’s emotions, their internal motivation, and their social skills. “ -Daniel Goleman
Self – esteem

 The degree to which people are at peace with themselves and have an overall positive assessment of their self-
worth and capabilities seems to be relevant to whether they will be viewed as a leader.
 Self-esteem may also explain the relationship between some physical attributes and emerging as a leader.
Leaders with High self-esteem

 Support their subordinates more, and when punishment needs to be administered, they punish more effectively.
 Have greater levels of self-confidence and this affects their image in the eyes of their followers.
BEHAVIORAL APPROACHES TO LEADERSHIP

 Explain the behaviors that are associated with leadership.

 Identify the three alternative decision-making styles leaders use and the conditions under which they are more
effective.
 Discuss the limitations of behavioral approaches of leadership.
Leader Behaviors

 Task-oriented. Structuring the roles of subordinates, providing them with instructions, and behaving in ways that
will increase the performance of the group.
 People-oriented. Showing concern for employee feelings and treating employees with respect.
Contemporary Approaches to Leadership
1. Learn about the difference between transformational and transactional leaders.
2. Find out about charismatic leadership and how it relates to leader performance.
3. Describe how high-quality leader-subordinate relationships develop.
4. Define servant leadership and evaluate its potential for leadership effectiveness.
5. Define authentic leadership and evaluate its potential for leadership effectiveness.
Transformational leadership

 Do not focus on themselves but rather the company’s well-being comes first. They align their goals and objectives
with that of their leader and their organization.
Transactional leadership

 Also known as managerial leadership. Focuses on the role of supervision, organization and group performance.
This leadership style use rewards and punishment contingent on the performance of their subordinates. The leader
views the relationship between managers and subordinates as an exchange – you give me something for
something in return. Transactional leadership gives importance to rules, procedures, policies and standards.
Servant leadership

 Defines the leader’s role as serving the needs of others.

 Develop employees and help them reach their goals.
 Put their employees first, understand their personal needs and desires, empower them, and help them develop in
their careers.
 Feel an obligation to their employees, customers and the external community.
Authentic leadership

 Instead of trying to fit into societal expectations about what a leader should be like, act like, or look like, authentic
leaders derive their strength from their own past experiences.
Fiedler’s Contingency Theory

 Different people can be effective in different situations. Placing the right people in the right situation or changing
the situation is important to increase a leader’s effectiveness.
 The theory predicts that in “favorable” and “unfavorable” situations, a low LPC leader—one who has feelings of
dislike for coworkers who are difficult to work with—would be successful.
 When situational favorableness is medium, a high LPC leader—one who is able to personally like coworkers who
are difficult to work with—is more likely to succeed.
Path-Goal Theory of Leadership

 Robert House’s path-goal theory of leadership is based on the expectancy theory of motivation.
The leader’s main job is to make sure that all three of these conditions exist:
1. Their effort will lead to high performance
2. Their high performance will be rewarded
3. The rewards they will receive are valuable to them.
Four Leadership Styles
1. Directive leaders provide specific directions to their employees.
2. Supportive leaders provide emotional support to employees.
3. Participate leaders make sure that employees are involved in making important decisions.
4. Achievement-oriented leaders set goals for employees and encourage them to reach their goals.
Vroom and Yetton’s Normative Decision Model

 It is a model for decision-making that’s based on situational leadership.

Vroom-Yetton-Jago decision model

 The series of questions creates clarity regarding the influence of these factors in the decision situation.
Subsequently, the model displays how the leader should make the decision: independently, together with the
group or after obtaining advice.
 Quality of Decision. Is about how much impact the decision will have and how important it is to find the right
solution.
 Involvement and Collaboration. Concerns the question of how important it is that everyone agrees to the
decision in a team.
 Time Constraints. How much time is there to make a decision?
Behavioral Theory

 Consideration. The friendly leaders are attentive and supportive to the concerns of their subordinates and create
an excellent relationship with them. This was termed as ‘people-oriented behavior’.
 Initiating Structure. The leaders are mostly concerned with achieving goals and following schedule and work
structure. For such leaders, subordinates are just mere resources that must be utilized through performance. This
was termed as ‘task-oriented behavior’.
4 Additional Important Behaviors for Effective Leadership
1. Support 3. Work Facilitation
2. Goal emphasis 4. Interaction Facilitation
Transformational Leadership Theory

 States that to be an effective leader one must be able to transform or change the perceptions, behavior and
expectations of their followers, and guide them towards a common goal to accomplish the leader’s vision.
1. Psychological Transformation. Bring about a change in the perception and mindset of the follower.
2. Influential. Creates a strong impact on the followers.
3. Motivational. Generates positive energy within followers.
4. Inspirational. Encourages them to achieve something.
5. Individual Impact. Creates a powerful effect on the behavior and perception of the followers.
Leadership Styles

 Is the relatively consistent manner and approach of providing direction, implementing plans, and motivating
people.
Authoritarian or Autocratic

 the leader tells his or her employees the tasks to be done and the manner of doing it, without getting their advice
or feedback; though this style may sound quite “bossy”, such is suitable during situations where the leader have
all relevant information to solve the problem and employees are well-motivated, but there is only limited time.
Participative or Democratic

 The leader allows one or more employees to join in the decision making process, but the leader normally
maintains the authority to make final decisions; this leadership style promotes empowerment among diversified
members.
Delegative or Laissez-Faire (free-rein)

 The leader allows the employees to make the decisions, however, the leader is still responsible for the decisions
that are made; this is an ideal style to be used if the leader have great trust and confidence in his people.
POSITIVE ORGANIZATIONAL BEHAVIOR

 "the study and application of positively oriented human resource strengths and psychological capacities that can
be measured, developed, and effectively managed for performance improvement in today’s workplace" (Luthans,
2010)
1. Self-efficacy. An individual's confidence in their ability to attain a certain goal in a specific situation.
2. Optimism. It is a positive mental attitude that reflects one’s belief that the outcome will be favorable.
3. Hope. It is a positive motivational state where successful feelings of agency (or goal oriented determination) and
pathways (or proactively planning to achieve set goals) interact.
4. Resiliency. This is a positive way of coping with adversity or distress. In the organizational aspect, it is defined as
an ability to recover from stress, conflict, failure, change or increase in responsibility.
Psychological Capital

 As “an individual’s positive psychological state of development that is characterized by:

1. Having confidence (self-efficacy) to take on and put in the necessary effort to succeed at challenging tasks;
2. making a positive attribution (optimism) about succeeding now and in the future;
3. persevering toward goals and, when necessary, redirecting paths to goals (hope) in order to succeed; and
4. When beset by problems and adversity, sustaining and bouncing back and even beyond (resiliency) to attain
success.”

Module 8 (Communication and Decision Making)

 “COMMUNICATION is a process by which information is exchanged between individuals through a common

system of symbols, signs, or behavior”.
In organization…

 “COMMUNICATION plays a vital role in its operations. It is the organization’s responsibility to communicate
well to its members and inform them the kinds of tasks they have to perform, the goals they have to pursue and
the rules they need to follow for them to walk towards the same direction - towards success.”
Functions of Organizational Communication
1. Control. Organizations have rules and processes that employees must follow, communicated to workers to keep
order and equity operating within the system.
2. Motivation. Goals, feedback and reinforcement are among those items communicated to employees to improve
performance and stimulate motivation.
3. Information. Organizations need to keep their employees informed of their goals, industry information, preferred
processes, new developments and technology, etc. in order that they can do their jobs correctly and efficiently.
4. Emotional Expression. Communication is the means by which employees express themselves, air their
grievances, and interact socially.
Pillars of Communication
1. Clear. Messages should be easily understood.
2. Concise. Messages should feature only necessary information.
3. Objective. Messages should be impartial.
4. Consistent. Messages, when communicated more than once, should always be the same.
5. Complete. Messages should feature all the necessary information.
6. Relevant. Messages should have meaning to its receiver.
7. Understanding of Audience Knowledge. Messages should consider what the receiver already knows about the
situation, and not assume too much or too little.

Verbal Communication

 Is the type of communication which involves the use of sounds and words. It can be delivered either through oral
or written means by the sender.
ORAL

 Is the most effective way of communicating with others.

 Advantage: speed of exchange of information and feedback from sender to receiver and vice versa.
 Disadvantage: possible distortion of message and language barrier between the sender and the receiver.
WRITTEN

 This form includes memos, emails, text messages and anything that is done through writing or typing. It does not
only involve written words but also drawn symbols.
 Advantage: more verifiable and tangible forms that the receiver can use as reference at a later date.
 Disadvantage: time consuming and most have a lack of feedback.
Non-Verbal Communication. Is the use of movements, facial expressions, personal appearances, eye contact and all
other non-words means to communicate.
“INTERPERSONAL COMMUNICATION, the major emphasis is on transferring information from one person to
another (Luthans, 2010).”
Importance of Feedback

 “In an interpersonal communication, unless feedback is given from one party to the other, it will be difficult to
assess if the message decoded the way it was intended. Simply, interpersonal communication is highly dependent
on feedback because it makes communication a two-way process.”
Importance of Feedback in Organization

 “Feedback is seen to help improve employee’s productivity and manager’s effectiveness since there is a
proper exchange of information from the two individuals. There are less misunderstandings and more flow of
ideas present in the employee-employer relationship. This also further results in better organizational
performance.”
Barriers to Effective Communication
1. Semantics. These are the varying gists that people attach to words.
2. Filtering of negative information. This involves the altering of information to make it more appealing or
pleasing to the receiver.
3. Lack of credibility of the sender. The clarity of a message is dependent on the credibility of the sender.
4. Information/communication overload. This happens when people are overloaded with information from various
sources that they begin to question the relevance of each information.
5. Poor communication skills. This involves mispronunciation of words, lack of attentiveness, strong dependence
on standard expressions, and all other ways or skills that limits the ability to send or receive information.
Ethics in Communication
1. Honesty. This is an essential feature that every communication should have, whether it is among members on the
same level, from employees to managers or vice versa, or from management to its external stakeholders.
2. Refrain from Doing Harm. The communication, either on corporate to individual level or internal to external
parties, should always make every effort to refrain from doing harm.
3. Fairness to all Stakeholders. The organization should communicate fairly may it be internally (to employees) or
externally (to the community).
DECISION MAKING

 Refers to choosing among alternative courses of actions which may even include procrastination.
Types of Decisions
1. Programmed. A monotonous and repetitive process wherein the individual making decision/s consider certain
SOPs, guidelines and company policies.
2. Non-programmed. These decisions are taken in unstructured situations non-recurring situations.
Decision Making Models
1. Rational. Uses objective, logical and designed information gathering and analysis.
2. Bounded-Rationality. The information and alternatives considered are bounded to the amount the decision
maker is willing to gather.
3. Linear. Involves listing the pros and cons of each alternative that the decision maker finds.
4. Intuitive. Manager refers to past experiences and personal assessment in making decisions.
5. Garbage Can. Assumes that managers use information about problems, members, solutions and opportunities
randomly in generating new ideas and possible decisions.
Bias in Decision Making
1. Overconfidence. This is when people think highly of themselves that they tend to be overly optimistic of being
right all the time.
2. Anchoring. This is the tendency deciding based on the initial information only and failing to adjust for
succeeding information as it is gathered.
3. Confirmation. This is the tendency of selecting and gathering information that only supports one’s initial
conclusions to reaffirm past choices.
4. Hindsight. This is when an Individual believes that he/she has accurately predicted a particular occurrence after
the outcome of such event becomes known.
5. Representative. This kind of bias occurs when an individual wrongly compares two situations due to its
similarity, or when he or she impulsively evaluates a happening without comparing it to similar situations.
6. Availability. This form of bias suggests that individuals tend to use readily available information when making a
decision rather than conducting proper observation and research.
7. Commitment. When a decision maker insists on being committed to a previous decision in spite of negative
information, he/she commits this error.
8. Randomness. The kind of error or bias wherein impaired decisions are made because of creating a meaning from
random events.
NOMINAL GROUP TECHNIQUE
Step1: Identify alternative solutions.
Step2: Recording and summarizing identified solutions.
Step3: Discussing ideas (narrowing down).
Step4: Voting for the best.

Module 9 (Groups and Teams)

GROUP

 Is a collection of people who interact with each other, work to achieve a common purpose, and perceive
themselves as a group.
Informal Work Groups

 Are formed spontaneously by two or more people who share the same interests, values and identifies. Some of
these kind of work groups are.
 Friendship group. An informal group composed of people who are comfortable with each other and socialize
even outside working hours.
 Interest group. An informal work group consisting of people who come together because they have a common
interest related to their organizational membership.
Formal Work Group

 Intentionally formed by the organization to accomplish specific tasks and achieve goals. Some types of formal
work groups:
 Command groups. Is a collection of subordinates who report to the same supervisor in an organization.
 Task force. Is a temporary collection of people from different disciplinary backgrounds who come together to
accomplish a specific goal.
 Team. A specific type of group where members have complementary skills and are intensely committed to a
mutual purpose, a set of performance goals, and an approach to the task.
1. Cross-functional. Composed of members from different specialties blended to accomplish a certain task
requiring such a mix of talents.
 2. Self-managed. Consisting of people who have the freedom to lead and manage themselves, and are jointly
responsible for achieving a certain goal.
3. Virtual. Groups of people who conduct a significant amount of collaborative work through electronic
communication rather than face-to-face meetings.
Stages in Group Development (Bruce Tuckman, 1965)
1. Forming. High degree of guidance needed from manager. Individual roles are unclear. Process usually not well
established.
2. Storming. Understanding how team decisions are made. Purpose is clear, but team relationships are blurry.
3. Norming. Relationships are well understand in the team. Commitment to team goals. Begins to work to optimize
team process.
4. Performing. Team is committed to performing well. Focuses on being strategic. Team runs well with little
oversight.
Work roles
1. Task-oriented. Roles that focus on relevant activities concerned with reaching performance goals.
2. Relations-related. Roles that emphasize on group development, including building camaraderie, cohesiveness,
group harmony and so forth.
3. Self-oriented. Roles that related to the specific needs and goals of individual members, often at the expense of the
group.
Work group size
1. Group interaction patterns.
 Smaller groups: harmony is important.
 Larger groups: more vocal and straightforward.
2. Job attitudes and job satisfaction. Working in smaller units or groups have better work ethics and higher job
satisfaction than those in large groups.
3. Absenteeism and turnover. Members of an increased group size may commit absenteeism because they have
low group cohesiveness, high task specialization, and poor communication.
4. Productivity. To have a concrete understanding of the relationship between group size and productivity, one must
take into consideration the types of tasks performed in the group.
Work Group Norms

 The informal guidelines or standards on acceptable and unacceptable behaviors agreed on by members. In an
organizational setting, below are four functions of work group norms:
1. Norms provide a basis for the survival of the group.
2. Norms direct members to behave as what is expected of them.
3. Norms help avoid embarrassing situations.
4. Norms help classify the group and show its important values to others.
STATUS SYSTEMS

 Status systems help distinguish individuals on the basis of a set of criteria. Status differentiations are made with
five general bases: birth, personal characteristics, achievement, possessions, and formal authority. All five bases
can be seen as establishing status in work groups. There are four purposes for status differentiation in
organizations (and their related status symbols):
1. Motivation. As rewards or incentives for performance and achievement. Thus, people tend to be more motivated
to have better status in a group.
2. Dignification. The amount of respect that should be given to an individual.
3. Identification. Suitable classification to acceptable behavior.
 4. Stabilization. Facilitate balance in an otherwise troublesome environment by providing a force for continuity.
Since status equates to authority, those with higher positions may provide solutions in challenges that threaten the
organization’s progress.
GROUP COHESIVENESS

 Group cohesiveness happens when members are attracted, committed and unified to work with each other.
 Cohesiveness helps a group to be efficient and achieve synergy. Having the right number of members with
complementary skills also fosters group cohesiveness.
MANAGING EFECTIVE WORK GROUPS

 According to Hackman’s model, effectiveness is defined in terms of three criteria:

1. PRODUCTIVE OUTPUT. This must meet or exceed the standards defined by the organization.
2. PERSONAL NEED SATISFACTION. Groups are effective if its members perceive that their needs are
satisfied.
3. CAPACITY FOR FUTURE COPERATION. Effective groups go through social processes that sustain or
improve the capability of their members to work together.
 Determinants of Work-Group Effectiveness
1. GROUP EFFORT. The amount of effort members exert to accomplish the group’s tasks.
2. GROUP KNOWLEDGE AND SKILL. The available amount of knowledge and skills that members have for
group effort and performance.
3. TASK PERFORMANCE STRATEGIES. The relevance of the group’s strategies for task performance.
DYSFUNCTIONS OF GROUPS AND TEAMS
1. Status Incongruence
2. Group Polarization
3. Social Loafing
4. Group Think
5. Excessive Collaboration
Status Incongruence

 This situation happens when a person has a high value on some given aspects but low on others, or when others
see a person’s characteristics to be inappropriate for a particular position.
Group Polarization

 Group members change their attitudes of behavior during problem solving or group arguments. There are times
when the group prefers taking the risky shift, where options with higher risks are considered. Sometimes, the
group decides to move towards a more conservative position.
Social Loafing

 Refers to the tendency of individuals to reduce their effort and performance levels when working in a group
context.
Group Think

 Group think occurs when members of a group are extremely pressured to achieve conformity and consensus.
Groups and teams experiencing groupthink have members who think highly of themselves as being part of such a
group or team, that they do not make realistic analysis and moral judgement.
Excessive Collaboration. Excessive collaborative works serve as interruptions for an employee in accomplishing their
individual tasks, and further leads to workflow bottlenecks and employee burnout. (However, recognize that some
workers do not want to work alone and prefer continuous physical or digital interaction with others)
Module 10 (Power, Politics and Influence)
POWER

 Power is the ability of an individual or group to influence decisions and control resources. It also has the ability to
direct and control activities to perform and goals to achieve.
ORGANIZATION POLITICS

 According to DuBrin (2019), organizational politics refers to informal approaches to gaining power through
means other than merit or luck.
SOURCES OF INDIVIDUAL POWER & INFLUENCE
Individual Power
1. Formal Individual Power 2. Informal Individual Power
 Legitimate Power - Expert power
 Reward power - Referent power
 Coercive power - Charismatic power
 Information power
SOURCES OF FORMAL INDIVIDUAL POWER
LEGITIMATE

 Based on the formal position that an individual holds to control and use organizational resources in achieving
goals.
REWARD

 Power is the power to give incentives like raises in pay, promotions, recognitions, interesting assignments, and
other rewards deemed to be beneficial by subordinates.
COERCIVE

 Is the power to take away something or give punishment for non-compliance.

INFORMATION POWER

 Power originating from the access and control of important organizational records and decisions. Managers with
more capability of accessing significant organizational information have greater power over others.
Sources of Informal Individual Power
EXPERT

 The power associated with the superior ability or proficiency to perform a task or role.
REFERENT

 It is the ability to influence others due to one’s desirable features or characteristics.

CHARISMATIC

 It comes from a person’s unique personality, bodily strengths, or other capabilities that persuade others to follow
that person.
SOURCES OF FUNCTIONAL & DIVISIONAL POWER
1. Ability to control uncertain contingencies 3. Centrality
2. Irreplaceability 4. Ability to control and generate resources
EMPOWERMENT. Empowerment is the process of giving employees greater authority, independence and
responsibility to perform important tasks of the organization.
TACTICS IN INCREASING INDIVIDUAL POWER
1. Tapping the sources of functional and divisional power.
2. Recognizing who has power.
3. Controlling the agenda.
4. Bringing in an outside expert.
5. Building coalitions and alliances.
RECOGNIZING WHO HAS POWER
a. Sources of power d. Personal reputations
b. Consequences of power e. Representational indicators
c. Symbols of power
ORGANIZATIONAL CONFLICT. Often arises from organizational politics performed by managers. This is because it
results in poor performance and dysfunctional members. But it is notable that there are some who can still use conflict in
an advantageous way by sensibly managing it and cautiously negotiating with those involved.
SOURCES OF ORGANIZATIONAL CONFLICT
1. DIFFERENTIATION
2. TASK RELATIONSHIPS
3. SCARCITY OF RESOURCES
4. COMMUNICATION
PONDY’S MODEL OF ORGANIZATIONAL CONFLICT
Stage 1:
Latent Conflict. There is still no actual conflict. The possible conflict is still concealed and may suddenly or gradually
emerge between employees.
Stage 2:
Perceived Conflict. Simple arguments begins when one party starts to notice that the other party’s actions cause delays in
achieving their goals.
Stage 3:
Felt Conflict. Their cohesiveness and cooperation declines thus negatively affects the organization’s performance.
Stage 4:
Manifest Conflict. Begin to show much openly aggressive behavior - some exchange heated arguments, some display
physical violence, and some deliberately exert less cooperation.
Stage 5:
Conflict Aftermath. No matter which option they use to resolve a conflict, an “aftermath” still remains among those who
have experienced the conflict. Their behaviors and approaches on future conflicts may be influenced by the consequences
from the previous conflicts.
NEGOTIATION: RESOLVING CONFLICT IN ORGANIZATIONS
1. Investigation. Gather information 3. Presentation 5. Closure
2. Determination the BATNA. Best Alternative to a Negotiated Agreement. 4. Bargaining
NEGOTIATION STRATEGIES
Distributive Approach

 The traditional fixed-pie approach in which negotiators consider the situation as a pie that they have to distribute
between them.
Interactive Approach

 An approach to negotiation in which both parties look for ways to integrate their goals under a larger umbrella.
(Bauer and Erdogan, 2012).

Module 11 (Creativity, Innovation, Organizational Culture)

The Creative Process. Creativity is the application of good ideas which generate innovative answers to problems.
Stages of Creative Thinking Process
Preparation Stage. This is when our conscious mind tries to comprehend information received.
Incubation Stage. The conscious mind is attentive in a different aspect but below the level of conscious, the ideas are
being persistently put together.
Illumination. After combining all information, a solution suddenly appears – as if there’s a flash of light.
Verification. The solution is presented is sensibly and cautiously tested.
Three Components of Creativity
Creativity

 Sparks excitement as if enfolds new visions and opportunities in an organization.

Expertise

 An organization can increase their employees’ expertise by offering relevant training, seminars, mentoring
programs and the like.
Creative Thinking Skills

 In selecting individuals to be part of an organization, characteristics that help nurture creativity can be considered
and included in the interviewer’s “checklist”.
Motivation

 This is when an individual is interested and eager to work on a certain task.

Characteristics of Creative People
Knowledge. Creative people should be knowledgeable and have vast information since creativity sparks when two or
more ideas based from facts and observations are combined.
Intellectual Abilities. Creative people are bright individuals who have youthful curiosity and think differently. Often,
they have a good sense of humor and a playful intelligence.
Personality. Creative self-efficacy is a special kind of self-confidence that creative people possess. It is a belief that an
individual can be creative in a role he or she has.
Characteristics of Creative Organizations
1. They can balance planning with improvising.
2. They embrace the unknown.
3. They have limited organizational structures.
4. They productively use diversity.
5. They value fun and excitement in the workplace.
Critical Thinking

 It is a manner of thinking that objectively analyzes and evaluates gathered information to come up with relevant
results.
 It involves logic, curiosity and skepticism to have a distinction between important and irrelevant information.
Creativity and Innovation in Organizations

 Creativity and innovations are vital factors that set organizations apart. These create opportunities for
organizations to excel in their respective businesses, and adapt to or even generate new demands from the public.
Process of Innovation
1. Idea generation and mobilization. 4. Commercialization.
2. Advocacy and screening. 5. Diffusion and implementation.
3. Experimentation.
Balancing Exploration and Exploitation

 Peppers (2017), An organization is often more focused on its short-term survival as it prefers to exploit its known
sources of income. However, organizations who are more open to explore new information and adapt to new ideas
tend to persevere and survive in the long run.
 Thus, the balance between exploitation and exploration can be considered as tantamount to the business’s balance
of operations and innovations.
ORGANIZATIONAL CULTURE

 Is the set of shared values, beliefs, and norms that influences worker’s behavior towards others. These values and
beliefs are often embodied by members as they stay longer in the organization. They may use such in performing
their tasks and dealing with other stakeholders.
Spreading Organizational Culture to its Members
Socialization

 Is the process of understanding the values and behaviors presented by current members that is essential for
adapting into an organization.
Culture

 As employees observe how their leaders behave, how they implement managerial tasks, and what they prioritize,
they gain certain concepts of organizational culture.
Managing Organizational Culture
1. Incentives and punishment. 4. Create an ethical committee with ethics officers.
2. Fail organizational structure. 5. Have a strong board of directors.
3. Just and equitable human resource procedures.
Module 12 (Organizational Change and Development)
Organizational Change

 Is the movement of an organization away from its current state and toward some desired future state to increase its
effectiveness (George and Jones, 2012).
 Organizations must adapt to change since it is the only constant thing in this world. The organization's survival
and effectiveness in the long run depends on its adaptability to change.
Forces for Change
1. Competitive Forces. Is pushes organizations to effectively improve themselves and create competitive advantage
over competitors.
2. Economic, Political and Global Forces. It challenge organizations to be flexible and creative with their ways to
meet the demands of their domestic and international consumers.
3. Demographic and Social Forces. The diverse demographic characteristics of the workforce have motivated
organizations to expand their policies to cover all emerging social issues.
4. Ethical Forces. Organization’s regulations on ethics and whom employees can approach when they have ethical
dilemmas or other ethical concerns in the organization.
Hindrances to Change
Organizational

 Power and Conflict

 Difference in Functional Orientations
 Mechanistic Structures
 Organizational Culture
Group

 Group Norms
 Group Cohesiveness
 Groupthink and
 Escalation of Commitment
Individual

 Uncertainty and Insecurity

 Selective Perception and Retention
 Habit
Managing Organizational Change

 Mullins (2010) also identified some actions to be taken to effectively manage change in the organization. These
are as follows:
1. Create a sense of urgency among relevant people, whatever the nature or size of the organization.
2. Build a guiding team with the credibility, skills, connections, reputations and formal authority to provide change
leadership.
3. Create visions which are sensible, clear and uplifting, and sets of strategies.
4. Communicate the vision and strategy in order to induce understanding and commitment.
5. Empower action and remove obstacles that stop people acting on the vision.
6. Produce short-term wins that help to provide credibility, resources and momentum to the overall effort.
7. Don’t let up but maintain the momentum, consolidate early changes and create wave after wave of change.
8. Make change stick by nurturing a new culture and developing group norms of behavior and shared values.
Steps in Action Research
1. Diagnosis of the Organization
2. Determining the desired future state
3. Implementing action
4. Evaluating the action
5. Institutionalizing action research
ORGANIZATIONAL DEVELOPMENT

 Is a complex strategy composed of a series of techniques and methods for managers to use in action research
programs so that their organization can better adapt to various changes in its environment.
 OD aims to improve the effectiveness of the organization and allow employees to reach their full potentials and
goals.
ORGANIZATIONAL DEVELOPMENT MODEL

Organization Development Interventions

Relationship Techniques Structural Techniques
1. T-group Training 1. Job Redesign
2. Teambuilding 2. Management by Objectives
3. Survey Feedback 3. Supplemental Organizational Processes