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ORGANIZATIONAL BEHAVIOR

MBA 622

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CHAPTER ONE

AN OVER VIEW OF ORGANIZATIONAL BEHAVIOR

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What is an Organization?
 An organization is a consciously coordinated social
unit, made up of a group of people, who work
together on common goals on a relatively continuous
basis.

 Examples

 Manufacturing organization

 Service organizations

 Schools

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Cont’d
 Hospitals

 Churches

 Military units

 Retail stores

 Police departments

 Volunteer organizations

 local, provincial, and federal government agencies.

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Cont’d
According to B. Hiriyappa (2009)- An Organization is defined as:

 A deliberate arrangement of people to accomplish specific purpose.

 It has the following Common Characteristics

 Have a distinct purpose (goal)

 Composed of people

 Have a deliberate structure

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Cont’d
 Organization is the form of human association for the attainment of
a common purpose . . . the framework of every group moving toward
a common objective.

 It refers to the complete body, with all its correlated functions.... It

refers to the coordination of all these [functions] as they cooperate
for the common purpose.

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Organizations as a system
 A system is a whole made up of parts.

 Each part can affect the way other parts work and the way all parts work
together will determine how well the system works.

 Systems thinking emphasize on linkages and relationships and flows.

 It emphasizes that any given employee or unit or activity is part of a larger

entity.

 The entities/units working together are justified by the results they

produce.

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Cont’d

 In order to proactively adapt to the demands of a rapidly changing

environment, all system components must be managed properly

 The components are:

 Inputs

 processes/transformation process,

 Outputs, and

 Feedback.

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Cont’d

 Organizations can be viewed as open systems that obtain

resource inputs from the environment and transform them into
outputs that are returned to the environment in the form of
finished goods or services.

 As long as the environment/organization relationship is good,

organization will survive and prosper over the long run.

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Organization and environment relationships

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What is organizational behavior?

 Organizational behavior (often abbreviated as OB) is a field of study
that investigates how individuals, groups, and structure affect and are
affected by behavior within organizations.

 Behavior- refers to what people do in the organization, how they

perform, or how the act and react.

 OB is frequently applied to address workplace issues such as

absenteeism, turnover, productivity, motivation, working in groups, and
job satisfaction.

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Cont’d
 Organizational Behavior- is concerned with the study of what people
do in an organization and how that behavior affects the
performance of the organization.

 Organizational behavior is the study of human behavior in the

workplace, the interaction between people and the organization with
the intent to understand and predict human behavior.

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Cont’d

 OB is the study and application of knowledge about human behavior

related to other elements of an organization such as structure,

technology and social systems (LM Prasad).

 Organizational behavior- is a systematic study of the actions and

attitudes that people exhibit within organizations (Stephen P Robins)

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Organizational behavior model (OB Model)

 A model is an abstraction of reality, a simplified representation

of some real world phenomenon.

 OB model possesses three types of variables at three levels

of analysis

 The Variables: inputs, processes, and outcomes

 Levels of analysis: individual, group, and

organizational/system.
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Fig. 1.1 Basic OB Model

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Cont’d
 The model proceeds from left to right, with inputs leading to
processes and processes leading to outcomes.
Inputs
 Inputs are the variables like personality, group structure, and
organizational culture that lead to processes.
 Process

 Processes are actions that individuals, groups, and

organizations engage in as a result of inputs and that lead to certain
outcomes.
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Cont’d
 Outcomes

 Outcomes are the key variables that you want to explain or

predict, and that are affected by some other variables.

 Attitudes and Stress- Employee attitudes are the evaluations

employees make, ranging from positive to negative, about objects,
people, or events.

 Stress is an unpleasant psychological process that occurs in response to

environmental pressures.

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Cont’d

 Task Performance- The combination of effectiveness and

efficiency at doing tasks

 Citizenship Behavior -The discretionary behavior that is not part

of an employee’s formal job requirements, and that contributes to
the psychological and social environment of the workplace.

 Withdrawal behavior -is the set of actions that employees take to

separate themselves from the organization. E.g. showing up late or
failing to attend meetings , absenteeism, turnover.
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Cont’d
 Group cohesion- is the extent to which members of a group support
and validate one another at work. In other words, a cohesive group is
one that sticks together.
 Group functioning -refers to the quantity and quality of a group’s
work output.
 An effectively functioning group is one that stays focused on a core
task and achieves its ends as specified.

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Cont’d

 Productivity- is achieving goals by transforming inputs into

outputs at the lowest cost.

 Thus productivity requires both effectiveness (achieving goals)

and efficiency ( doing at low cost).

 Organizational survival- indicates organizational ability to exist

and grow over the long term.

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Complementing Intuition with Systematic Study

 The use of common sense (intuition or gut feelings) approach to
read/predict people behavior may not be always correct.

 If we make all decisions with intuition or gut instinct, we’re likely

working with incomplete information—like making an investment
decision with only half the data.

 Hence Heavy Reliance on intuition is worse because we tend to

overestimate the accuracy of what we think we know.

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Cont’d
 However, we can improve our predictive ability by supplementing
intuition with a systematic approach.

 Systematic approach- belief that behavior is not random.

 It can be predicted accurately.

 Systematic approach involves looking at relationships, attempting to

attribute causes and effects, and basing our conclusions on scientific
evidence—that is, on data gathered under controlled conditions and
measured and interpreted in a reasonably rigorous manner.

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A review of a manager’s job and its relation to the study of OB

 Management functions

 The major functions of management: planning, organizing, leading,

and controlling.

 Planning—Defining goals, setting specific performance objectives,

and identify the actions needed to achieve them.

 Organizing—Creating work structures and systems, and arranging

resources to accomplish goals and objectives.

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Cont’d

 Leading—Instilling enthusiasm/passion by communicating with

others, motivating them to work hard, and maintaining good

interpersonal relations.

 Controlling—Ensuring that things go well by monitoring

performance and taking corrective action as necessary

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Management Roles
 Beyond the major functions managers are expected to perform three sets of roles on a
daily basis

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The characteristics of OB

 According to Ivancevich et al (2008) the following are some of the

characteristics of organizational behavior

1. It is a way of thinking about individuals, groups and organizations.

2. It is multidisciplinary – it uses principles, models, theories and methods

from other disciplines.

3. Humanistic orientation – people and their attitudes, perceptions, learning

capacities, feelings and goals are of major importance.

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Cont’d

4. It is performance-orientated – it deals with the factors affecting

performance and how it can be improved.

5. Uses scientific method in studying variables and their relationships.

6. It is applications-orientated concerned with providing useful answers to

questions which arise when managing organizations

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The development of OB & contributing disciplines

 Organizational behavior is an applied behavioral science built on

contributions from the following discipline

 Psychology- seeks to measure, explain, and sometimes change the

behavior of humans and other animals.

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Cont’d
 Social Psychology- is a branch of psychology, blends concepts from both
psychology and sociology to focus on peoples’ influence on one another.

 One major study area is change —how to implement it and how to reduce
barriers to its acceptance.

 Sociology- While psychology focuses on the individual, sociology studies

people in relation to their social environment or culture.

 Sociologists have contributed to OB through their study of group behavior in

organizations, particularly formal and complex organizations.

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Cont’d

 Anthropology-is the study of societies to learn about human beings and

their activities.

 Anthropologists’ work on cultures and environments has helped us

understand differences in fundamental values, attitudes, and behavior

between people in different countries and within different organizations.

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Cont’d
 Political Science - helped us understand how differences in preferences

and interests lead to conflict and power struggles between groups within
organizations.

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Management and organizational behavior in the 21st century

 Today organizations are facing dramatic changes than ever before.

 In order to overcome the challenges using the concepts of OB is a good

opportunity for managers

 The most critical issues confronting managers for which OB offers

solutions or at least give insights are the following:

 Improving quality and Productivity

 Improving People Skills,

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Cont’d
 Managing Work Force Diversity,

 Responding to Globalization,

 Empowering People

 Stimulating Innovation and Change,

 Coping with “temporariness“- Workers must continually update

their knowledge and skills to perform new job requirements

 Improving Ethical Behavior

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CHAPTER TWO

FOUNDATION OF INDIVIDUAL BEHAVIOR

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Introduction
 The outcomes of an organization depend partly on how its individual
members behave.

 Thus, it is important to understand individual behavior.

 A manger has to deal with a large number of people inside as well as

outside his organization

 Inside his organization, he interacts with his subordinates, peers, and

superiors.

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Cont’d

 He has to get things done through and with his subordinate, seek
the cooperation and support of his peers for his job performance,
and constructively respond to the initiatives of his superiors.

 In relation to his subordinates, it is his responsibility as a leader to

influence their behavior so as to optimize their contribution to the
organization, and minimize their dysfunctional and negative
behavior.

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Cont’d
 Outside the boundaries of his organization, he has to deal with a large
number of people including customers, suppliers, competitors, legislators,
public officials, etc.

 His success as a manager significantly depends on his ability to get the

desired responses from the people with whom he deals.

 Thus in order to achieve his ends with and through others, he must
understand why people behave as they do, why they act, react, and respond
the way they do.

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Perception
 The study of perception is important because people’s behavior is based
on their perception of what reality is, not on reality itself.

 What we perceive can be substantially different from objective reality.

 Employees may view the organization as a grate place to work (good

pay, responsible management, good working condition, etc.) but the
reality as we all know is not the same.

 The world as it is perceived is the world that is behaviorally important.

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Cont’d

 Perception- is a process by which individuals organize and

interpret their sensory impression in order to give meaning to

their environment.

 It is the process through which people receive, organize, and

interpret information from their environment.

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Factors that influence Perception

 A number of factors operate to shape and sometimes distort perception.

 These factors can reside in the:

1. Perceiver

2. Object or target being perceived

3. Context of the situation in which the perception is made

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Cont’d
 Factors in the Perceiver

 When an individual looks at the object and attempts to interpret the same,
what he or she sees is influenced by his personal characteristics.

 Attitude- which may be positive or negative can influence perception.

 For Example, Some employees may feel that the current working
environment is good while others feel that the same environment is not
suitable for work.

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Cont’d
 Motive- is unsatisfied needs.

 It exserts considérable influence on perception.

 Boss who is insecure, perceives subordinate who does well as threat to his
position.

 Interest- is persons liking for a particular thing in an individual.

 Some people get attracted to eyes of a girl because he has interest in the

eyes while other person may be interested in hair style.

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Cont’d

 Past experience- Object or events that have not been experienced

before are more noticeable and creates an interest.

 Expectations- can distort one’s perception in what one sees and what
one expects to see

 For example, power hungry police officer to be strict regardless of

his actual traits.

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Factors in the target

 Similarity- people group similar objects together and perceive them as

common group. For example, Blacks, Whites

 Size- very small or very large people tend to be perceived differently and

more readily than average-sized people

 Motion- moving objects are perceived differently from stationary objects.

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Cont’d

 Novelty (Newness)- of a situation affects its perception

 People get attracted to new things

 Background- stimuli that stands out against the background (contrast)

will receive attention

 What do you see? Faces or a vase?

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Cont’d
 Proximity- nearer objects will be perceived more

 Sound- whispering or shouting stands out from ordinary conversation

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Factors in the situation

 The context in which we see objects or events is important

 The time at which we see an object or event can influence our attention

 Location- an individual will behave with his boss differently at a social

function than in the office.

 Social setting- it might be entirely appropriate to wear shorts and T-

shirts in a social setting, but not appropriate in a work setting

 Your interpretation of the same clothes will vary with the context.

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Common errors in perception

 Selective Perception: People selectively interpret what they see based on
their attitude, interest, background and experience.

 Halo Effect: Halo effect refers to judging an individual based on single

characteristics, such as intellectual ability, sociability and appearance.

 Projection: You assume a person based on your own traits and not what
he actually Possesses.

 If you were hard working and dependable you would expect others to be
so.

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Cont’d
 Contrast Effect: We do not evaluate a person in isolation. Our reaction to one person is
relative to the other.

 During selection process, interviewer selects a particular person for a particular job not
because he fulfils all requirements but he is generally selected in relation to the other
candidates.

 Stereotyping: In order to simplify matters, we often tend to classify people and events
into already known categories.

 Example, For police person, it is generally believed that they are tough and law abiding
which may not be true.

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Attribution theory
 Attribution- refers to the way we explain the causes of our own as well
as other people’s behaviours and achievements, and understand why
people do what they do

 involves forming beliefs about the causes of behaviour or events.

 Attribution theory aids in: understanding the causes of a certain event,

assess responsibility for the outcomes of the event, and to recommend
appropriate remedial actions

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Cont’d
 It tells as whether one’s behaviour has been internally or externally
caused.

 Internal causes- believed to be under the personal control of the

individual.
 Factors like effort or ability

 Example: Abebe's performance is poor because of ability

 External causes- are factors outside a person

 Factors like luck, a lack of resources, or other people

 Abebe's performance is poor b/c the machine is old

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Rules for Determining Attribution

 Three factors determine the internal or external causation:

distinctiveness, consensus, and consistency.

 Distinctiveness- whether an individual displays different behaviour

in different situations.

 Consensus- whether everyone behaves the same way under similar

situation

 Consistency- Does the person respond the same way over time?

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Examples
 Assume that Melat is a manufacturer working on machine

 If she produced poor quality product on different machines (low

distinctiveness)- the behaviour is caused internally (internal attribution)
 If she makes good-quality products on other machines (high
distinctiveness)- the behaviour is caused externally
 If other employee Abebe, produced good quality product on the same
machine (low consensus)- the behaviour is caused internally
 If Abebe make poor-quality products on the same machine with Melat
(high consensus)- the behaviour is caused externally

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Cont’d

 If Melat consistently produced poor quality product on the same

machine over time (high consistency)- the behaviour is caused
internally

 If she didn’t have consistent record of poor quality product over

time( low consistency)- the behaviour is externally caused

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Summary of the key elements of attribution theory

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Attribution errors

 Attribution errors/biases impact whether a particular behaviour is

internal VS External

 Such errors include:

 Fundamental attribution error- the tendency to underestimate the

influence of situational factors and to overestimate the influence of
personal factors in evaluating someone else’s behaviour.

 Eg. Occur when the manager attribute the poor performance of an

employee to the employees laziness rather than unproductive machine

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Cont’d

 Self-serving bias- the tendency to deny personal responsibility for

performance problems but to accept personal responsibility for
performance success.

 we take credit for our successes and blame others or the situation for
our mistakes.

 The managerial implications of attribution theory is that the way we

perceive behaviour influences our response

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The link between Perception and individual decision Making

 Decision- involves making choices among many alternatives

 Occurs as a reaction to a problem.

 A problem may be considered a discrepancy between the current state of

affairs and a desired state

 This discrepancy requires us to consider alternative courses of action

 The way individuals make decisions and the quality of their choices are
largely influenced by their perceptions.

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Cont’d

 Most problems don’t come neatly labeled “problem.”

 One person’s problem may become satisfactory state of affairs for

another person’s.

 2% production deviation my be a serious problem for one manager but

acceptable for others

 Some information sources and the information is relevant to make

decision for some managers but not for others

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Cont’d

 Awareness that a problem exists and that a decision might or might not
be needed is a perceptual issue.

 Perceptual process also influences the final outcome of the decision

 perceptual distortions often surface and can bias analysis and

conclusions.

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Decision Making Models

1. Rational Decision Making- Involves a systematic, step-by step process

for making decisions

 characterized by making consistent, value-maximizing choices within

specified constraints.

 Based on the following assumption

 decision maker has complete information,

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Cont’d

 is able to identify all the relevant options in an unbiased manner, and

 chooses the option with the highest utility.

 Most decisions in the real world don’t follow the rational model b/c
of different limitations

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Steps in Rational decision making model

 Involves the following steps
1. Define the problem.

2. Identify the decision criteria.

3. Allocate weights to the criteria.

4. Develop the alternatives.

5. Evaluate the alternatives.

6. Select the best alternative.

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Cont’d

2. Bonded rationality and satisfising

 Bounded rationality- means that people have limits, or boundaries, on

how rational they can be.

 The organization is complex, but due to limited time and ability,

managers will process only limited amount of information with which to
make decisions.

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Cont’d

 Bounded rationality – is a simplified process of making decisions

by perceiving and interpreting the essential features of problems
without capturing their complexity.

 Because managers lack the time or cognitive ability to process

complete information about complex decisions, they must satisfice.

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Cont’d

 Satisficing- decision makers choose the first solution alternative that

satisfies minimal decision criteria.

 Rather than pursuing all alternatives to identify the single solution

that will maximize economic returns, managers will opt for the first

solution that appears to solve the problem even if better solutions are

presumed to exist.

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Cont’d

3. Intuitive decision making- an unconscious process created out

of distilled experience.

 Occurs outside conscious thought; relies on holistic associations,

or links between disparate pieces of information.

 It is based on years of practice and hands-on experience that

enable managers to identify solutions without going through

painstaking computations.

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Cont’d

 When people build a depth of experience and knowledge in a

particular area, the right decision often comes quickly and
effortlessly

 For example, firefighters make decisions by recognizing what is

typical or abnormal about a fire, based on their experience

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Errors in decision Making

 Overconfidence Bias - being overconfident about our abilities and

the abilities of others

 Some people think they know more than they do, and this affects

their planning/preparation to solve the problem that may arise

 Anchoring bias- is a tendency to fixate on initial information

and fail to adequately adjust for subsequent information.

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Cont’d

 Confirmation bias- The tendency to seek out information that reaffirms

past choices and to discount information that contradicts past judgments.

 We seek sources most likely to tell us what we want to hear,

 we give too much weight to supporting information and

 too little weight to contradictory information .

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Cont’d
 Availability bias- The tendency to base our judgments on readily
available information.

 Readily available information and our previous direct experience

with similar information has a strong impact on our decision
making.

 More people are afraid of flying than driving in a car.

 Because the media give more attention to air accidents, we tend to

overstate the risk of flying and understate the risk of driving.

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Cont’d

 Escalation of commitment- An increased commitment to a

previous decision despite negative information.

 Staying with a decision even if there is clear evidence that it is wrong

 Example

 Consider a friend who has been dating someone for several years.

Although he admits things aren’t going too well, he says he is still going
to marry her. His justification: “I have invested a lot in the relationship!

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Cont’d
 Randomness error- the tendency to believe we can predict the outcome
of random events

 Happens when we try to create meaning out of random event based on

false information or superstition.

 Example if a manager says I never make important decisions on

Friday 13th he is committing random error.

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Cont’d

 Risk aversion -The tendency to prefer a sure gain of a moderate amount

over a riskier outcome, even if the riskier outcome might have a higher
expected payoff.

 Hindsight bias- The tendency to believe falsely, after an outcome of an

event is actually known, that one would have accurately predicted that
outcome.

 Because, we fool ourselves into thinking we knew more about an event

before it happened it restricts our ability to learn from the past.

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ATTITUDE

 Attitudes- are evaluative statements—either favorable or unfavorable—

about objects, people, or events.

 They reflect how we feel about something.

 When I say “I like my job,” I am expressing my attitude about work.

 “Attitudes are learned predispositions towards aspects of an environment.

 They are positively or negatively directed towards certain people, services

or institutions”.

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Components of attitude

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Cont’d
Cognitive Component

 Cognitive Component of Attitude refers to opinion or belief part of

attitude.

 A description of or belief in the way things are

 The statement “My pay is low” is the cognitive component of an

attitude

 It sets the stage for the more critical part of an attitude—its affective
component
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Cont’d

Affective Component

 Affective Component of Attitude refers to the emotional aspect of

attitude. A statement “I am angry over how little I’m paid.” This
statement reflects affective component.

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Cont’d
Behavioral Component

 refers to the behavioral part of attitude.

 If we have a positive attitude for a particular object, it is likely to be

translated into a particular type of behavior, such as buying or procuring
that object

 The statement “I’m going to look for another job that pays better” shows
behavioral component.

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Example of how the three components of attitude are related

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Cont’d
 The figure in the previous slide illustrates how an employee develop
attitude toward his supervisor.

 The employee thought he deserved the promotion (cognition),

 he strongly dislikes his supervisor (affect), and

 he is looking for another job (behavior).

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Types of Job attitudes

 Most OB researches have looked at three types attitudes: job satisfaction,
job involvement, and organizational commitment.

 Job satisfaction- describes a positive feeling about a job, resulting from

an evaluation of its characteristics.

 A person with a high level of job satisfaction holds positive feelings about
his or her job, while a person with a low level holds negative feelings.

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The Effect of Job Satisfaction on Employee Performance

 Job Satisfaction and Productivity

Satisfied workers are more productive and more productive workers are more

satisfied!

Worker productivity is higher in organizations with more satisfied workers.

 Job Satisfaction and Absenteeism

Satisfied employees have fewer avoidable absences.

 Job Satisfaction and Turnover

Satisfied employees are less likely to quit.

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Cont’d
Organizations take actions to retain high performers and to weed out

lower performers.

 Job Satisfaction and OCBs

 Satisfied employees who feel fairly treated by and are trusting of the

organization are more willing to engage in behaviors that go beyond the

normal expectations of their job.

 Job Satisfaction and Customer Satisfaction

 Satisfied workers provide better customer service

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Cont’d

• Satisfied employees increase customer satisfaction because:

 They are more friendly, upbeat (positive), and responsive.

 They are less likely to turnover, which helps build long-term

customer relationships.

 They are experienced.

• Dissatisfied customers increase employee job dissatisfaction.

AMU 2022 87

Cont’d
 Job involvement- the degree to which people identify psychologically
with their job, actively involved in it and consider their perceived
performance level is important to self-worth

 High level job involvement will reduce absence and lower resignation
rates in an organization.

 organizational commitment – the extent to which an employee

identifies him/her self with a particular organization and its goals and
wishes to remain as a member.
AMU 2022 88

44
 12/18/2022

Cont’d
 Strong organizational commitment entails:

Strong belief in/acceptance of an organization’s goals and values in an

organization.

Willingness to exert considerable effort on behalf of the organization.

 Strong desire to maintain membership in the organization.

 Higher commitment is negatively related to absenteeism and turnover, and

positively related to productivity in an organization.

AMU 2022 89

Cont’d
 Organizational commitment depends on:
 Personality.

 Meaningfulness of the work being performed.

 Organizational climate.

 Leader behaviour.

 Organizational culture.

  Psychological contracts-  represent an individual’s perception about the

reciprocal exchange between him- or herself and another party.

AMU 2022 90

45
 12/18/2022

Cont’d

 In addition to the aforementioned type of attitude OB deals with the

following types of attitudes

 Perceived organizational support (POS)- the degree to which

employees believe the organization values their contribution and cares
about their well-being

 For example, an employee believes his organization would

accommodate him if he had a child care problem or would forgive an
honest mistake on his part.

AMU 2022 91

Cont’d

 People perceive their organization as supportive when rewards are

deemed fair, when employees have a voice in decisions, and when
they see their supervisors as supportive.

 Employees with strong POS perceptions have been found more likely to
have higher levels of organizational citizenship behaviors, lower levels of
tardiness, and better customer services.

AMU 2022 92

46
 12/18/2022

Cont’d
 Employee engagement- an individual’s involvement with, satisfaction with,
and enthusiasm/passion for the work she/he does.

 the harnessing (attachment) of organization members’ selves to their work

roles.

 engaged people employ and express themselves physically, cognitively, and

emotionally during role performance

 engaged employees “give their all” at work.

AMU 2022 93

Cont’d

 Highly engaged employees have a passion for their work and feel a deep
connection to their company.

 Disengaged employees have essentially checked out—putting time but

not energy or attention into their work.

AMU 2022 94

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Attitude and consistency

 Attitude of an individual is not visible but is reflected through his behavior

as a mirror of his attitude.

 People seek consistency among their attitudes or between attitude and

behavior.

 They seek to reconcile their attitudes and align their attitudes with
behavior so that it is rational and consistent.

 If there is inconsistency between attitude and behavior, outside forces act

upon an individual, which leads to attaining of equilibrium state, thus
consistency is achieved.
AMU 2022 95

Cont’d
 For example an individual may buy an old car while praising the new
model.

 Reconciliation like, ‘why invest more for a new model’, or ‘the old model is
as efficient as the new one, because the same had been sparingly used’.

 Such feelings are expressed to reconcile the attitude (praising New car) and
behavior (Buying the old model) to achieve consistency between them. i.e.
Attitude and behavior

AMU 2022 96

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Source of attitude
 Attitudes, are acquired from parents, teachers, and peer group
members.

 We are born with certain genetic predispositions.

 Then, in our early years, we begin modeling our attitudes after those we
admire, respect, or may be even fear.

 We observe the way family and friends behave, and we shape our
attitudes and behavior to align with theirs.

 People also imitate the attitudes of popular individuals and those they
admire and respect.
AMU 2022 97

Values
 Values-Ways of behaving or end states that are desirable to a person or to
a group
 They are relatively stable, evaluative beliefs that guide our preferences for
outcomes or courses of action in a variety of situations.
 Values contain a judgmental element because they carry an individual’s
ideas about what is right, good, or desirable.
 They have both content and intensity attributes.

 The content attribute says a mode of conduct or end-state of existence

is important.

AMU 2022 98

49
 12/18/2022

Cont’d
 The intensity attribute specifies how important it is.

 When we rank values in terms of intensity, we obtain that person’s value

system.

 value system- A hierarchy based on a ranking of an individual’s values in

terms of their intensity.

 Values are relatively stable and enduring.

 Many values we hold are established in our early years—by parents,

teachers, friends, and others
AMU 2022 99

Cont’d

 Personal values influence:

 Managers/Leaders action like staffing, manager-subordinate

relationship, reward system and all other behaviours in
organization.

 It also influence ethical choices to be made

 When there are no clear rules for dealing with specific ethical problems,
we tend to respond to each situation on an individual basis depending
on our values at that time.

AMU 2022 100

50
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Types of values

 Terminal vs instrumental values

 Terminal values- Reflect our long-term life goals and may include
prosperity, happiness, a secure family, and a sense of accomplishment

 Terminal values can change over time depending on our experiences and
accomplishments.

 When someone's prosperity goal is reached , family may become most

important.

AMU 2022 101

Cont’d

 Instrumental values- Our preferred means of achieving our terminal

values or our preferred ways of behaving

 Intrinsic vs extrinsic work values

 Intrinsic work values- Relate to the work itself

 Some employees need challenging work that lets them learn new things

 Extrinsic values- Relate to the outcomes of doing work

 Employees who work to earn money or to have health benefits , having

high status in the company, recognition for quality work

AMU 2022 102

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Conflicts among Values

 Intrapersonal value conflict- Conflict between the instrumental

value of ambition and the terminal value of happiness

 This conflict is internal to an individual

 Value conflict influence employee attitudes, retention, job

satisfaction, and job performance.

AMU 2022 103

Cont’d

 Interpersonal value conflicts-Occur when two different people

hold conflicting values

 They are the cause of personality clashes and other disagreements.

 Example: if one employee value individual rewards and the other value
group recognition, they may clash on how to peruse the same task

 The differences in value lead to differences in work styles, work

preferences, and reactions to announcements or events.

AMU 2022 104

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 12/18/2022

Cont’d

 Individual–organization value conflict- When an employee’s

values conflict with the values of the organization

 Lower individual–organization value conflict leads to greater job

satisfaction, higher performance, lower stress, and greater job

commitment.

AMU 2022 105

Personality
 Personality- A Relatively stable and distinctive (unique) patterns of
behavior that characterize an individual and his or her reactions to the
environment

 refers to the sum total of ways in which an individual reacts and

interacts with others.

 It is the distinctive and relatively enduring way of thinking, feeling, and

acting for a particular individual.

 We estimate an individual’s personality by what he or she says and does.

AMU 2022 106

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Determinants of Personality
 Personality is determined by heredity, environment (culture) and
situation under which an individual works.
 Heredity- Heredity is transmitted through genes, which determine
hormone balance, which later determine physique (body) and
subsequently the personality.
 Heredity- refers to acquiring from parents certain biological, physical
and psychological commonalities, which are further reflected in
physical stature, facial attractiveness, sex, temperament, muscle
composition and even reflect.
AMU 2022 107

Cont’d
 They often decide energy level
 These factors determine how a person in an organization would display
his reactions in a particular situation
 Environment- Every individual is born and brought up in a particular
environment.
 Environment leaves an imprint on the personality of an individual.
 Doctors son preferring his father’s profession and a child of a soldier
entering into defense Services.
 Environment should be viewed from the point of view of norms, ethics
and value that are observed and the attitude displayed by the social
group.

AMU 2022 108

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Cont’d
 These factors actually formulate the culture of the society from which the
organizations draw their human resource requirements.

 Situation- Individual has to interact with number of problems in a given

situation, which does not remain constant.

 It is subject to change and hence fluid in nature.

 Therefore there is a need to recognize the person-situation interaction.

 A strong situation can overwhelm the effects of individual personalities

by providing strong cues for appropriate behavior
AMU 2022 109

Major personality attributes influencing OB

 Some of the most important personality attributes that will determine how
one will behave in an organization includes the following.

 Myers Briggs personality type indicator (“MBTI”)

 Developed by Isabel Briggs Myers and Katharine Cook Briggs (1897–

1979)

 identifies and classifies differences in personal styles

 Personality types are based on differences in 4 areas

AMU 2022 110

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Where you focus your attention

Extrovert (E) Introvert (I)

Focus attention on the Focus attention on the inner
outside world – people world – ideas and
and things impressions
The way you take in information
Intuition (N)
Sensing (S)
Take in information Get information from patterns,
through the senses; focus see the big picture and focus on
on the present future possibilities

The way you make decisions

Thinking (T) Feeling (F)

Make decisions using logic, Make decisions on values and

objective analysis subjective person-focused factors
How you deal with the outside world
Judging (J) Perceiving (P)
Planned, organized approach Flexible, spontaneous
AMU 2022 approach 111

Extraversion(E)
• Focus on the external environment;
direct energy outward;
• Prefer communicating by talking and working
out
ideas by talking them through;
• Learns best through discussions;
• Sociable and expressive;
•Takes initiative in work and relationships
Introversion(I)
• Focus on ideas and experience; direct energy inward;
• Prefers to communicate through writing and work
out ideas through reflection;
• Learns best by thinking and contemplation;
• Private and self-contained;
• Takes initiative when situation is important to them
• Enjoys working alone without interruptions

Intuition(N)
Sensing(S)
• Takes in information by focusing on the big
• Prefers real, tangible information;
picture;
• Notices specifics and focus on practical •Imaginative and verbally creative; follows
realities; inspiration
• Factual • Moves quickly to conclusions and follows hunch;
• Develops understanding through practical • Prefers clarification of ideas before use
applications • Focuses on possibilities
• Focus on immediate issues

AMU 2022 112

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 12/18/2022

cont’d
Thinking(T)
• Looks at the logical consequences
of actions;
• Examines pros and cons of
approaches objectively;
• Energized by critique and analysis;
• Desires to find a standard to apply
in all situations; reasonable and fair
Feeling (F)
• Focuses on how others may be affected by
decisions by mentally placing themselves into
situations;
• Guided by personal values;
• Energized by appreciating and supporting
others;
• Strives for harmony and positive interactions

Judging(J)
• Planned, ordered, and structured in
approach;
• Systematic and methodical;
• Prefers to have things settled,
• Likes to make plans and schedules;
• Energized by getting things done and
settled;
• Prefers to avoid last-minute stress
Perceiving(P)
• Spontaneous (impulsive)and adaptable in
orientation;
prefers flexibility in work
• Leaves things open as long a s possible;
• Open to last minute options and changes;
• Energized by resourcefulness and adapting
present demands
• Focuses on enjoying the process

•The possible combinations of the above preferences result in sixteen

personality types. Please refer your references about the details of
these types AMU 2022 113

The Big five Personality traits

 Based on standardized personality test score , individuals personality can

be categorized in to five

1. Extraversion- captures our comfort level with relationships.

 Extraverts -tend to be expressive, assertive (self confident), and

sociable.

 Introverts- tend to be reserved, timid (shy), and quiet.

2. Agreeableness- A tendency to be compassionate (kind)and cooperative

rather than suspicious and antagonistic towards others.
AMU 2022 114

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 12/18/2022

Cont’d
• Highly agreeable people are cooperative, warm, and trusting.

• People who score low on agreeableness are cold, disagreeable, and

antagonistic

3. Conscientiousness- It is a measure of reliability.

 A highly conscientious person is responsible, organized, dependable,

careful, self-disciplined, and persistent.

 Those who score low on this dimension are easily distracted,

disorganized, and unreliable.

AMU 2022 115

Cont’d
4. Emotional stability (neuroticism)- deals with person’s ability to withstand stress.

 People with positive emotional stability tend to be calm, self-confident, and secure.

 Those with high negative scores tend to be nervous, anxious, depressed, and
insecure.

 5. Openness to experience- addresses range of interests and fascination with novelty.

 Extremely open people are creative, curious, and artistically sensitive.

 Those at the other end of the category are conventional and find comfort in the
familiar issues.

AMU 2022 116

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Personal Conception Traits

 The personal conception traits represent the way individuals tend to think
about their social and physical setting as well as their major beliefs and
personal orientation concerning a range of issues.

 Locus of Control -The extent to which a person feels able to control his or
her own life is concerned with a person’s internal and external orientation.

 People have conceptions about whether events are controlled primarily by

themselves, which indicates an internal orientation, or by outside forces,
such as their social and physical environment, which indicates an external
orientation.
AMU 2022 117

Cont’d

 Those who have internal locus of control, they believe that, they are

the masters of their own fate and ready to control themselves.

 • Those who have external locus of control, they see themselves as

pawn of fate and believe that what happens to them in their lives is

due to luck or factors which are beyond their control.

AMU 2022 118

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Machiavellianism

 Niccolo Machivelli introduced theory of Machivellianism.

 The theory refers to degree to which an individual is

pragmatic(straightforeward thinking about things than using
principles and theories) and maintains emotional distance with co-
workers while accomplishing any task.

 A person who practices this theory believes in “end justifies means.”

 In any organization people can be classified as having high

Machivellianism or low Machivellianism tendencies.
AMU 2022 119

Cont’d
 A person having High Machivellianism (H Mach) generally displays variety of
personality traits like manipulation(exploitation), win more, persuade others
to do a work while they do not get persuaded by others
 They generally flourish in face-to-face situation where there are minimum
rules and have enough space for maneuver.
 They have high bargaining skills and believe in giving substantial rewards to
their subordinates on accomplishment of tasks.
 They are highly productive.
 Machivelli believed in one doctrine, that a work must be finished whatever be
the means..
AMU 2022 120

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 12/18/2022

Cont’d

 Low Machs tend to accept direction imposed by others in loosely

structured situations; they work hard to do well in highly structured ones.

 For example, we might expect that, where the situation permitted, a high
Mach would do or say whatever it took to get his or her way.

 In contrast, a low Mach would tend to be much more strongly guided by

ethical considerations and would be less likely to lie or cheat .

AMU 2022 121

Self-monitoring
 Self-monitoring- reflects a person’s ability to adjust his or her behavior
to external, situational (environmental) factors.

 High self-monitoring individuals are sensitive to external cues and tend

to behave differently in different situations.

 High self-monitors are closely attuned(adjusted) to the behavior of

others and conform more readily than do low self-monitors.

 Thus, they appear flexible and may be especially good at responding to

the kinds of situational contingencies emphasized throughout

AMU 2022 122

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 12/18/2022

Cont’d
 High self-monitors- are good at changing their leadership behavior to fit
subordinates with high or low experience, tasks with high or low structure, and so
on.

 Low self-monitor- act regardless of the situation, so they rarely conform to the
norms of the social setting.

 Less sensitive to social cues, and less likely to change their behavior from one
situation to another.

 LSMs prefer to be seen as they really are, and they behave so as to express internal
attitudes and dispositions.

AMU 2022 123

Emotional Adjustment Traits

 The emotional adjustment traits measure how much an individual

experiences emotional distress or displays unacceptable acts.

 In this regard the most important traits for OB are the Type A and Type B
orientation.

 Type A Personality

 People having Type A personality are always moving, walking and eating
rapidly.

 They feel impatient with the speed at which the events take place.
AMU 2022 124

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 12/18/2022

Cont’d

 They always strive to do two or three thing at any one time and
cannot cope with leisure.

 They are generally obsessed with work involved with numbers.

 Type A's demonstrate their competitiveness by working long hours

 They make poor decisions because they make them too fast.

 They are also rarely creative, Because of their concern with quantity
and speed

AMU 2022 125

Type B personality

 People possessing Type B personality never suffer from sense of urgency

and take thing as it comes coolly.

 They do not discuss achievement and leave it to the superiors to identify it.

 People having B type of personality play for fun and relaxation rather than
to show off.

 These people have the tendency to relax without guilt.

AMU 2022 126

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Are Type A's or Type B's more successful in organizations?

 In spite of the hard work of Type A's, the Type B's are the ones who
appear to make it to the top.

 Great salespersons are usually Type A's; senior executives are usually
Type B's. Because Type A's trade off quality of effort for quantity.

 Promotions in corporate and professional organizations "usually go to

those who are wise rather than to those who are merely hasty, to those
who are tactful rather than to those who are hostile, and to those who
are creative rather than to those who are merely agile in competitive
strife.” AMU 2022 127

Self-concept
 Self-concept- is the view individuals have of themselves as physical,
social, and spiritual or moral beings.

 It is a way of recognizing oneself as a distinct human being.

 A person’s self-concept is greatly influenced by his or her culture.

 For example, Americans tend to disclose much more about themselves than
do the English; that is, Americans’ self-concept is more assertive and
talkative.

AMU 2022 128

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Cont’d
 The two related aspects of the self-concept are self-esteem and self-
efficacy.

 Self-esteem- is a belief about one’s own worth based on an overall self-

evaluation.

 People with high self-esteem see themselves as capable, worthwhile, and

acceptable and tend to have few doubts about themselves.

 The opposite is true of a person with low in self-esteem

AMU 2022 129

Cont’d

 Self-efficacy- sometimes called the “effectance motive,” is a more

specific version of self-esteem

 It is an individual’s belief about the likelihood of successfully completing

a specific task.

 You could be high in self-esteem, yet have a feeling of low self-efficacy

about performing a certain task, such as public speaking.

AMU 2022 130

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Person–Job Fit

 The effort to match job requirements with personality characteristics

is best articulated in John Holland’s personality–job fit theory .

 Holland presents six personality types and proposes that

satisfaction and the propensity to leave a position depend on how well
individuals match their personalities to a job.

AMU 2022 131

Cont’d
 The key points of this model are that

1. There is intrinsic differences in personality among individuals,

2. There are different types of jobs, and

3. People in jobs congruent with their personality should be more

satisfied and less likely to voluntarily resign than people in
incongruent jobs.

AMU 2022 132

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AMU 2022 133

Learning
 “Learning is a relatively permanent change in behavior that occurs as a
result of experience”(Stephen P. Robbins)

 “Learning is the process of having one’s behavior modified, more or less

permanently, by what he does and the consequences of his action, or by
what he observes”. (Munn N.L)

AMU 2022 134

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Learning theories

1. Classical Conditioning (behaviorist theory)

 Developed by Psychologist Ivan Pavlov
 Learning can take place based on stimulus – response (SR) connections.

 Pavlov carried out this experiment in three sequential stages.

 In stage one, he presented meat (unconditional stimulus i. e. naturally, and

automatically triggers a response) to the dog.
 He noticed a great deal of salivation (unconditional response).

 In stage two he only rang up the bell (neutral stimulus), the dog had no
salivation.
AMU 2022 135

Cont’d
 In stage three, Pavlov was to accompany the offering of meat to the
dog along with ringing up of bell.

 After doing this several times, Pavlov rang up only bell (without
offering of meat to the dog).

 This time the dog salivated to the ringing up of bell alone.

 Pavlov concluded that the dog has become classically conditioned to

salivate (response) to the sound of the bell (stimulus).

AMU 2022 136

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Cont’d
 This stimulus – response connection (S-R) can be applied in management.

 when a CEO visits an organization, individuals put on a good dress,

window panes are cleaned and floors are washed.

 What one has to do is to just say that the Top Boss is visiting.

 You will find that all above work is undertaken (response) without any
instructions.

AMU 2022 137

Cont’d
2. Operant Conditioning
 Originated by B.F. Skinner.
 Concerned with Response—Stimulus (R-S) connection
 Behavior is a function of consequences
 Focus on learning as a consequence of behavior
 It is voluntary in nature.
 Behavior is learned and is not a matter of reflex (impulse).
 People learn to behave to get something they want or avoid
something they don't want.
 Operant behavior means voluntary or learned behavior in contrast to
reflexive or unlearned behavior.
AMU 2022 138

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 12/18/2022

Cont’d

 Creating pleasing consequences to follow specific forms of behavior,

will increase the frequency of that behavior

 Individual would work hard(R) because he knows that he would be able

to get praise, or even promotion (S).

 Operant Conditioning has greater impact on learning as compared to

Classical Conditioning.

AMU 2022 139

Cont’d

3. Social Learning

 deals with learning process based on direct observation and experience.

 In social learning people observe, alter and even construct a particular

environment to fit in the social behavioral pattern.

 Individuals learn a great deal from watching attractive models and they copy their
behavior and display the same.

 Children copy the behavior of their parents, adults, and copy cinema
actors/actresses in various styles.

AMU 2022 140

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 12/18/2022

Cont’d

 Social learning is practiced in organizations by observing various cultural,

and social practices.

AMU 2022 141

Application of reinforcement to shape behavior

 Management of human resource plays a dominant role in the growth of an
organization.

 Various material inputs in the organization can be put to its optimum

utilization if the employees display positive attitude towards organizational
systems, processes, activities and have an appropriate interpersonal
behavior.

 This is possible if a manager is able to identify human requirements (needs)

and try to satisfy them in an unambiguous manner.

AMU 2022 142

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 12/18/2022

Cont’d
 This can be achieved by applying re-inforcement to individuals in the
course of their performance.
 If a cleaner keeps the workshop floor neat and clean at all the times, he
should be awarded so that he continues to display the same behavior.
 There are four types of re-enforcement namely Positive, Negative,
Punishment and Extinction.
 Positive and negative re-enforcement seeks to achieve a desirable
behavior , while punishment and extinction prevents undesirable
behavior.

AMU 2022 143

Cont’d
 Positive Re-enforcement- Providing reward for a particular desired
behavior.

 Negative Re-enforcement- given for displaying behavior by terminating

undesired consequences.

 E.g. following instructions on training, abiding by safety regulations,

assisting employees in performance of their duty are the forms of negative
reinforcement.

 Because employees would follow instructions to avoid negative

consequence of undesired behavior.
AMU 2022 144

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Cont’d
 Punishment

 Punishment is awarded to an individual for undesired consequences of behavior.

 It is a method of decreasing frequency of occurrence of unpleasant behavior

 used by organizations for corrective or modification of individual behavior

 Punishment acts as deterrence to other individuals and prevent them from

doing an undesired act.

 Punishment must be awarded with due care and made public so that it acts
as deterrence

AMU 2022 145

Cont’d
 Following points should be kept in mind while applying punishment

 Authority- Authority who is entitled to award punishment must be

specified and notified to all concerned.

 Process- All employees should know the process of punishment.

 If required this should be included in training program so that awareness

is brought about.

 Show Cause- Individual must be given opportunity to justify his actions.

 No arbitrary decision should be taken.

AMU 2022 146

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Cont’d
 Board for Inquiry- An impartial body of persons should be formed to
investigate each event to decide whether the punishment is required to be
awarded.

 The gravity of the offence, the probable scale of punishment and the
individuals involved in the commission of an act should be identified.

 Time Bound- All actions must be time bound and individual must be
awarded punishment in time

 Gravity (severity)- Punishment must be commensurate with the gravity of

the offence.
AMU 2022 147

Cont’d
 Extinction- Extinction refers to withdrawing of re-enforcement or
reward so that the happening becomes less frequent and ultimately dies
off.

 Eliminating any re-enforcement is called extinction.

 The method involves withdrawing positive reinforcement granted earlier.

 For example students are given extra coaching for higher performance.

 Over a period of time this positive re-enforcement leads to students

increased dependency on coaching by a teacher.

AMU 2022 148

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 12/18/2022

Cont’d
 So if this facility (re-enforcement) is withdrawn, it is with the aim of
modifying behavior by extinction, so that the students form the habit of
self-study and therefore the learning takes place that leads to behavior
modification in a group.

AMU 2022 149

CHAPTER THREE

FOUNDATION OF GOUP BEHAVIOUR

“Coming together is a beginning, keeping together is progress,

working together is a success” Henry Ford

150

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Introduction

 We all belong to groups based on our occupations,

race, gender, and many other categories.

 Being part of a group can greatly influence how

people behave

 The impact could be positive or negative—or both.

151

Defining and classifying group

 A group- is a collection of two or more people

regularly working together to achieve common goals.

 In a true group, members are mutually dependent on

one another to achieve common goals, and they
interact with one another regularly to pursue those
goals over a sustained period of time.

152

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Formal Vs informal group

 Formal group- is defined by the organization’s structure, with

designated work assignments and tasks.

 The behavior of the group is stipulated by and directed towards

organizational goals.

 An example is the work unit headed by a manager and consisting of one

or more direct reports

153

Cont’d
 Formal groups may be permanent or temporary.
Permanent work groups/command groups
 Refers to departments in the vertical structure on
organization charts (e.g., market research
department, production department etc.)
 Such groups can vary in size from very small
departments or teams of just a few people to large
divisions employing a hundred or more people.
 In all cases, permanent work groups are officially
created to perform a specific function on an ongoing
basis.

154

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Cont’d

 They continue to exist until a decision is made to change

or reconfigure the organization for some reason.

 Temporary work groups -are task groups created to solve

a problem or perform a defined task.

 They often disband (disperse) once the assigned purpose

or task has been accomplished.

 Examples are temporary committees and task forces

organized to perform certain activities

155

Cont’d
 Informal group- is neither formally structured nor organizationally
determined.

 Informal groups are natural formations in the work environment that

appear in response to the need for social contact.

 Three employees from different departments who regularly have lunch or

coffee together are an informal group

156

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Cont’d

 Through their network of interpersonal relationships, they have the

potential to speed up the work flow as people assist each other in ways
that formal lines of authority fail to provide.

 They also help individuals satisfy needs that are thwarted (dissatisfied) or
otherwise left unmet in a formal group.

157

Why do people form groups

 People join group for several reasons. Some of the reasons could be:

Personal need for affiliation- we need some amount of social contact

and this need will be met in relationship formed in group

 Many individuals find their work satisfying in part because it provides

them with affiliation and identity in work.

158

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Cont’d

Security - By joining a group, individuals can reduce the insecurity of

standing alone.

 People feel stronger, have fewer self-doubts, and are more resistant to
threats when they are part of a group.

 Status- Inclusion in a group that is viewed as important by others

provides recognition and status for its members.

 Self-Esteem- Groups can provide people with feelings of self-worth.

159

Cont’d
Power- What cannot be achieved individually becomes
possible through group action.
 There is power in numbers.

Goal Achievement- There are times when it takes more

than one person to accomplish a particular task
there is a need to pool talents, knowledge, or power in
order to get a job completed.
 In such instances, management will rely on the use of a
formal group
160

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Stages of group development

 Groups generally pass through a predictable sequence in their evolution.

 Group development follows five stage model

 Stage 1: Forming

 Members’ sharing information about themselves and getting to know

one another
 characterized by a great deal of uncertainty about the group’s purpose,
structure, and leadership.

161

Cont’d
 Members “test the waters” to determine what types of behaviors are
acceptable.

 This stage is complete when members have begun to think of themselves

as part of a group.

162

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Cont’d

 Stage 2: Storming

 Members accept the existence of the group but resist the constraints it
imposes on individuality.

 There is conflict over who will control the group.

 When this stage is complete, there will be a relatively clear hierarchy of

leadership within the group.

163

Cont’d
 Stage 3: Norming

 The group structure solidifies and the group has assimilated a common
set of expectations of what defines correct member behavior.

 close relationship develops and the group demonstrates cohesiveness.

164

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Cont’d

 Stage 4: Performing

 The structure at this point is fully functional and accepted.

 Group energy has moved from getting to know and understand each other
to performing the task at hand.

 For permanent work groups, performing is the last stage in development

 However, temporary committees and task forces uses adjourning stage

for wrapping up activities

165

Cont’d
 Stage 5: Adjourning

 Occurs as the group members prepare for

disengagement (disconnection) as the group nears
successful completion of its goals.

 Some group members are upbeat (happy), basking

(enjoying) in the group’s accomplishments.

 Others may be depressed over the loss of friendships

gained during the work group’s life
166

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Group properties
1. Roles- A function/behaviour expected of someone
occupying a given position in a group.
 Individuals play different roles on the job and off the
job
 Some roles are compatible and others may be
conflicting
 Different groups impose different role requirements
on individuals.
 Individuals behaviour vary with their roles
167

Cont’d
 When roles are unclear or conflicting, performance problems can occur.

 Groups experience problems that are caused by difficulties in defining

and managing the roles of members.

168

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Cont’d

 Role perception- An individual’s view of how they are supposed to act

in a given situation.

 We get role perceptions from stimuli all around us—for example,

friends, family, books, films, television and etc.

 Role expectations- How others believe a person should act in a given

situation.

169

Cont’d
 A football coach may be seen as aggressive,

dynamic, and inspiring to the players.

 Role expectations can be seen through the perspective

of the psychological contract

 Psychological contract: unwritten agreement that

exists between employees and employers.

 Role ambiguity- occurs when someone is uncertain

about what is expected of him or her
170

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Cont’d
 Role overload- occurs when too much work is expected
of the individual.

 Role underload- occurs when too little work is expected

of the individual.

 Role conflict- Occurs when someone is unable to respond

to role expectations that conflict with one another.

 It results in tension, dissatisfaction and poor

performance

171

Cont’d
 Types of role conflict

1. Intrasender role conflict- occurs when the same person sends

conflicting expectations.

 Example: Asking employees to do something that needs rule violation

and at the same time trying to enforce rule.

2. Intersender role conflict- occurs when different people send

conflicting and mutually exclusive expectations.

172

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Cont’d

3. Person–role conflict- occurs when one’s personal values and needs

come into conflict with role expectations.

4. Interrole conflict- occurs when the expectations of two or more roles

held by the same individual become incompatible, such as the conflict
between work and family demands.

 It is role incompatibility

173

Cont’d
2. Norms- Acceptable standards of behaviour within a group that are
shared by the group’s members.

 It express what they ought to do and ought not to do under certain

circumstances.

3. Status- a socially defined position or rank given to groups or group

members by others.

174

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Cont’d
 What determine status?
 The power a person wields over others- people
who control resource and group outcome have high
status.
 A person’s ability to contribute to a group’s
goals- those who contribute more to the success of
the group have high status.
 Personal characteristics- Someone whose
personal characteristics are positively valued by the
group (good looks, intelligence, money, or a
friendly personality) have high status.

175

Cont’d
 Impact of status

 High-status individuals may be more likely to

deviate from norms than low status individual.
 High-status people resist conformity pressures
more than their lower-status peers.
 People who seek to attain higher status in a group
tend to become more assertive in their interaction
 Lower-status members tend to participate less
actively in group discussions
176

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Cont’d

4. Group Size and Dynamics

 Size of a group affect the group’s overall behaviour?

 If the goal is fact-finding or idea-generating larger groups are more

effective.

 Smaller groups of about seven members are better at doing

something productive.

177

Cont’d
 Group dynamics-the forces operating in groups that affect the ways
members work together.

 It a set of behavioural and psychological processes that occur within a

group or between groups.

 Social loafing is one aspect of group dynamics

 It is the tendency for individuals to expend less effort when working

collectively than when working individually.

178

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Cont’d
 Ways to prevent social loafing:
1. Set group goals, so the group has a common purpose to strive toward
2. increase intergroup competition, which focuses on the shared group
outcome
3. engage in peer evaluations
4. select members who have high motivation and prefer to work in groups
5. Base group rewards in part on each member’s unique contributions.

179

Cont’d
5. Group cohesiveness- The shared bond driving group members to work
together and to stay in the group.

 Group cohesiveness is high if:

 Members spent a great deal of time together,

 group’s size is small

 Group purpose facilitates high interaction,

 external threats have brought members close together.

180

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Cont’d

 Cohesiveness affects group productivity.

 Cohesive group’s having performance-related norms (like quality,

cooperation) are more productive than less cohesive group

 But if cohesiveness is high and performance norms are low, productivity

will be low.

 If cohesiveness is low and performance norms are high, productivity

increases, but less than in the high-cohesiveness/high-norms situation.

181

Cont’d
 When cohesiveness and performance-related norms are both low,
productivity tends to fall into the low-to-moderate range.

182

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Cont’d
 How to encourage group cohesiveness?

1. Make the group smaller,

2. Encourage agreement with group goals

3. Increase the time members spend together

4. Increase the group’s status and the perceived difficulty of attaining

membership- cohesion increases when entry to the group is restricted or
become difficult
5. Stimulate competition with other groups
183

Cont’d
6. Give rewards to the group rather than to individual members
7. Physically isolate the group- in this case, members have no one to
associate with, to talk to, or to depend upon than each other.

184

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Cont’d
6. Group diversity- The extent to which members of a group are similar
to, or different from, one another.
 Group diversity have benefits and costs

 It increase group conflict, especially in the early stages of a group’s

tenure
 On the other hand it provides an opportunity to solve problems in
unique ways because diverse groups deliberate longer, share more
information, and make fewer errors.

185

Group decision making

 Strength of group decision making

 Groups generate more complete information and knowledge- members

bring more input into the decision process

 Increased diversity of views

 Increased acceptance of a solution

186

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Cont’d

 Weaknesses of group decision

 conformity pressures

 Group discussion can be dominated by one or a few members.

 Group decisions suffer from ambiguous responsibility

 Consume more time

187

What is effective group

 Effective group is the one that achieves its task performance with the
required quantity, quality at the right time.

 An effective group is one whose members believe that their

participation and experiences are positive and meet important
personal needs.

 members are sufficiently satisfied to continue working well together on

an ongoing basis and/or to look forward to working together again at
some future point in time
188

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Work team
 A work group- is a group that interacts primarily to share information and
make decisions to help each member perform within his or her area of
responsibility.
 their performance is merely the summation of each group member’s individual
contribution.
 A work team, on the other hand generates positive synergy through
coordinated effort.
 The individual efforts result in a level of performance greater than the sum of
those individual inputs
189

Cont’d
 Teams- are interdependent collection of at least two individuals who
share a common goal and share accountability for their outcomes.

 A team is a small number of people with complementary skills who are

committed to a common purpose, performance goals, and approach
for which they hold themselves mutually accountable.”

190

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Cont’d

 Teams exist to fulfil some purpose

 Team members are held together by their

interdependence and need for collaboration to
achieve common goals.

 team members influence each other

 All teams are groups but groups are not necessarily

teams.

191

work groups Vs work team

192

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Types of teams

193

Cont’d
1. Problem-Solving Teams

 Composed of 5 to 12 employees from the same department

 For example permanent team in manufacturing plan that meet at
regular time interval to discuss ways of improving quality, efficiency,
and the work environment.
 They rarely have the authority to unilaterally implement any of
their suggestions.
 Only makes recommendations
194

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Cont’d

2. Self-managed work teams

 Created not only to solve problems but implement solutions and take
responsibility for outcomes

 are groups of employees (typically 10 to 15 in number) who perform

highly related or interdependent jobs and take on many of the
responsibilities of their supervisors.

195

Cont’d
 Teams that set their own goals and pursue them in
ways decided by the team

 They can perform planning and scheduling work,

assigning tasks to members, making operating
decisions, taking action on problems, and working
with suppliers and customers.

 They can select their own members and evaluate each

other’s performance
196

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Cont’d
3. Cross-functional teams

 Made up of employees from the same hierarchical

level but different work areas, who come together to
accomplish a task.

 Cross-functional teams are an effective means of

allowing people from diverse areas within or even
between organizations to exchange information, develop
new ideas, solve problems, and coordinate complex
projects 197

Cont’d
4. Virtual Team

 Teams use computer technology to unite physically dispersed members

and achieve a common goal.

 They collaborate online—using communication links such as wide-area

networks, videoconferencing, or e-mail whether they’re a room away or
continents apart.

198

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Team effectiveness
 Team effectiveness can be measured through:

 Team productivity

 Managers rating of team performance

 aggregate measures of member satisfaction.

 There are three major variables that influence team effectiveness

 contextual variables

 process variables

 composition
199

Cont’d
Determinants of team effectiveness

200

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Conflict Management

 What is conflict?

 Conflict is a process that begins when one party

perceives that another party has negatively affected
something that the first party cares about.

 Conflict is a disagreement between two or more

individuals or groups, with each individual or group
trying to gain acceptance of its views or objective
over others.
201

Types conflict
a) Based on their effect

 Functional conflict- Conflict that supports the goals of the group and
improves its performance.

 Dysfunctional conflict- Conflict that hinders group performance.

202

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 12/18/2022

Cont’d

b) Based on disagreement, or what the conflict is about.

 Task conflict- Conflict over content and goals of the work.

 Relationship conflict- arises from differences between individuals or

groups

 May result from personal differences in motivation, aspirations, or

personality.

203

Cont’d
 Process conflict- Conflict over how work gets done,
who is responsible for what?

c) Based on locus or the framework within which

the conflict occurs

 dyadic conflict- Conflict that occurs between two

people.

204

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 12/18/2022

Cont’d

 Intragroup conflict- Conflict that occurs within a group or team.

 Intergroup conflict- Conflict between different groups or teams.

205

Sources of conflict

206

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 12/18/2022

The conflict Process

 Stage I: Potential Opposition or Incompatibility

 appearance of conditions, causes or sources that

create opportunities for conflict.

 The condition may be: communication issue,

structure, personal variable (like emotion,

personality)

207

Cont’d
 Stage II: Cognition and Personalization
 If condition in stage I negatively affect what the other party cares about

 In this case the potential for opposition or incompatibility becomes

actualized in the second stage.

 Awareness of disagreement does not mean it is personalized

208

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Cont’d

 Perceived conflict- Awareness by one or more parties of the existence of

conditions that create opportunities for conflict to arise

 Felt conflict- Emotional involvement in a conflict that creates anxiety,

tenseness, frustration, or hostility.

209

Cont’d
 Stage III: Intentions

 decisions to act in a particular way.

 The decision depends on how we perceive the intension of the other

party.

 Conflict-handling intentions fall along two dimensions.

 These two dimensions are assertiveness and cooperativeness

210

105
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Cont’d

 Assertiveness- the degree to which one party attempts to satisfy his or

her own concerns

 Cooperativeness- the degree to which one party attempts to satisfy the

other party’s concerns

 Based on these two dimensions, there are five conflict-handling

intentions:

211

Cont’d

212

106
 12/18/2022

Cont’d
 Competing- assertive and uncooperative

 A desire to satisfy one’s interests, regardless of the impact on the other

party to the conflict
 Collaborating- assertive and cooperative

 A situation in which the parties in a conflict desires to satisfy fully the

concerns of all parties.
 A win–win solution that allows both parties’ goals to be completely
achieved,
213

Cont’d
 Avoiding- unassertive and uncooperative

 The desire to withdraw from or suppress a conflict.

 Trying to ignore a conflict and keeping away from others with whom

you disagree.

 Accommodating- unassertive and cooperative

 The willingness of one party in a conflict to place the negotiation

partner’s interests above their own.

214

107
 12/18/2022

Cont’d

 Sacrificing to maintain the relationship.

 Supporting someone else’s opinion despite your reservations about.

 Compromising- midrange on both assertiveness and cooperativeness

 A situation in which each party to a conflict is willing to give up

something to resolve the conflict.

215

Cont’d
 Each accept a solution with incomplete satisfaction of both parties’
concerns.

 each party intends to give up something.

216

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 12/18/2022

Cont’d

 Stage IV: Behaviour

 conflicting parties use statements, actions, and reactions as overt

(observable) attempts to implement their own intentions.

217

Cont’d
 Stage V: Outcomes

 The action–reaction interplay between conflicting parties creates

consequences.

 Outcomes may be functional if the conflict improves the group’s

performance, or dysfunctional if it hinders performance.

218

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Summary of conflict handling process

219

Conflict resolution techniques

220

110
 12/18/2022

CHAPTER FOUR

ORGANIZATIONAL DYNAMICS

221

Organizational culture
 When people join an organization, they bring with
them the values and beliefs they have been taught.

 However, these values and beliefs are insufficient for

helping the individual succeed in the organization.
 According to (Joanne Martin) as individuals come
into contact with organizations, they come into
contact with:
 dress norms

 stories people tell about what goes on

222

111
 12/18/2022

Cont’d

 the organization’s formal rules and procedures

 its formal codes of behavior

 rituals (ceremonies)

 Tasks and pay systems

 jokes and so on.

 These elements are some of the manifestations of organizational

culture

223

Definition of organizational culture

 According to (Edgar Schein) organizational culture is
a pattern of basic assumptions which are invented,
discovered, or developed by a given group as it learns
to cope with its problems of external adaptation and
internal integration—that has worked well enough to
be considered valuable and, therefore, to be taught to
new members as the correct way to perceive, think,
and feel in relation to those problems.
224

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Cont’d

 According to (Robbins ) organizational culture refers to a system of

shared meaning held by members that distinguishes the organization from
other organizations.

 Organizational culture is the system of shared actions, values, and beliefs

that develops within an organization and guides the behavior of its
members.

225

Cont’d

 There are ‘Seven primary characteristics that seem to capture the

essence of an organization’s culture.

1. Innovation and risk taking-The degree to which employees are

encouraged to be innovative and take risks.

2. Attention to detail- The degree to which employees are expected to

exhibit precision, analysis, and attention to detail.

226

113
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Cont’d
3.Outcome orientation-The degree to which
management focuses on results or outcomes rather
than on the techniques and processes used to achieve
them.

4.People orientation. The degree to which management

decisions take into consideration the effect of
outcomes on people within the organization.

227

Cont’d
5. Team orientation- The degree to which work
activities are organized around teams rather than
individuals.

6. Aggressiveness-The degree to which people are

aggressive and competitive rather than easy going.

7. Stability-The degree to which organizational

activities emphasize maintaining the status quo in
contrast to growth.
228

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Types of culture based on competing value framework

 Developed by Quinn and Cameron
 They identified that measures of organizational effectiveness varied along
two fundamental dimensions or axes.
1. Whether an organization focuses its attention and efforts on internal
dynamics and employees, or outward to its external environment and its
customers and shareholders.

 Inward focus Outward focus

229

Cont’d

2. Whether organization’s prefer control and stability

over Flexibility and discretion.

 Stability Flexibility

 Combining these two axes creates four types of

organizational culture, each with different core
values.

230

115
 12/18/2022

Cont’d

231

Cont’d

1. The Clan- has an internal focus and values flexibility.

 Encourage collaboration, trust, and support among employees.

 employee-focused and strives to instil cohesion through consensus and

job satisfaction

 commitment through employee involvement and development.

232

116
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Cont’d

2. The Adhocracy- organization with less structure and bureaucracy

 adaptable, creative, and fast to respond to changes in the marketplace.

 A culture based on change

 empower employees to take risks, think outside the box, and

experiment with new ways of getting things done.

233

Cont’d
3. The Market- have a strong external focus and value stability and
control.
 Competition is their strategic thrust.
 Strong desire to deliver results and accomplish goals, and
because:
 they are focused on the external environment,
 customers and profits take precedence over employee
development and satisfaction.
 Managers’ major goal is to improve productivity, profits, and
 customer satisfaction.

234

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Cont’d

4. The Hierarchy- internal focus, which produces a more formalized and

structured work environment, and values stability and control over
flexibility.

 Focus on development of reliable internal processes, the extensive use

of measurement, and the implementation of a variety of control

mechanisms.

235

Cont’d

 Effectiveness is likely to be measured in terms of efficiency, timeliness,

quality, safety, and reliability in producing and delivering products and
services.

 According to the competing values framework, the various cultures

differ regarding how they influence organizational outcomes.

236

118
 12/18/2022

Cont’d

237

Exercise

 Read about other classification of organizational culture based on the

following frameworks:

 Organizational Culture Inventory

238

119
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Dominant culture and subculture

 A dominant culture- expresses the core values a
majority of members share and that give the
organization its distinct personality.
 Core values- The primary or dominant values that are
accepted throughout the organization.
 Subcultures are unique patterns of values and
philosophies within a group that are consistent with
the dominant culture of the larger organization or
social system.
239

Levels of organizational culture

 Three levels of cultural analysis in organizations are:

observable culture, shared values, and common
assumptions

 Observable culture-“the way we do things.”

 we develop methods and teaches new members

 Includes unique stories, ceremonies, and corporate

rituals that make up the history of a successful work
group.
240

120
 12/18/2022

Cont’d

 Stories- Accounts of past events that illustrate and transmit deeper

cultural norms and values

 Ceremonies- special events in which organization members celebrate

 planned displays of organizational culture, conducted specifically for

the benefit of an audience

241

Cont’d
 Rituals- Actions that are repeated regularly to reinforce cultural norms
and values
 programmed routines of daily organizational life
 Examples
 how visitors are greeted,

 how often senior executives visit subordinates,

 how people communicate with each other

242

121
 12/18/2022

Cont’d

 Shared values- indicate the way members or he

organization act and interact.
 Espoused value VS enacted value

 Espoused values- the values that corporate leaders

hope will eventually become the organization’s culture,
or at least the values they want others to believe guide
the organization’s decisions and actions
 The preferred values and norms explicitly stated by the
organization
243

Cont’d

 Enacted values- They are values put into practice.

 Values are enacted when they actually guide and influence decisions

and behaviour.

 They are values and norms that employees exhibit based on their

observations of what actually goes on in the organization

244

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Cont’d

 Common assumptions- the taken-for-granted truths that collections of

corporate members share as a result of their joint experience.

 taken for granted over time that they become the core of the company’s
culture

245

Strong VS Weak Cultures

 Strong culture- A culture in which the core values are intensely held and
widely shared.

 The more members who accept the core values and the greater their
commitment, the stronger the culture and the greater its influence on
member behaviour.

 A strong culture directly affect organizational outcomes, because it

demonstrates high agreement about what the organization represents.

246

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Functions of culture
1. Defines the boundary between one organization
and others
2. Conveys a sense of identity for its members

3. Facilitates the generation of commitment to

something larger than self-interest
4. Enhances the stability of the social system

5. Serves as a control mechanism for fitting

employees in the organization

247

Culture as a Liability

 Barrier to change

 Occurs when culture’s values are not aligned with the values necessary for rapid

change

 Barrier to diversity

 Strong cultures put considerable pressure on employees to conform, which may

lead to institutionalized bias

 Barrier to acquisitions and mergers

 Incompatible cultures can affect successful acquisition and merger

248

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How Culture Begins

 Organizational culture stems from the actions of the founders:

 It happens in three ways

 Founders hire and keep only employees who think and feel the same

way they do.

 Founders indoctrinate (train) and socialize these employees to their

way of thinking and feeling.

249

Cont’d

 The founders’ own behaviour acts as a role model that encourages

employees to identify with them and thereby internalize their beliefs,
values, and assumptions.

 When the organization succeeds, the founders’ personalities become

embedded in the culture.

250

125
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Cont’d

 The figure indicates:

 The original culture originates from the founder
 Influence the hiring/selection criteria as the organization grows
251

Cont’d

 Socialization process continue to match employee value

with that of organization
 Socialization success depends on top management
commitment to socialization program
 Top management signals what is valued, what is
acceptable behaviour or not
 Then the culture becomes linked and entrenched within
the organizational structures and systems, and is
perpetuated by leadership.
252

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Keeping Culture Alive

 Selection

 Helps to identify how well the candidates fit into

the organization

 Helps to determining the value fit between the

applicant and the organization.

 Top Management

 Senior executives help establish behavioral norms

that are adopted by the organization

253

Cont’d
 Socialization

 A process that enables new employees to acquire the

social knowledge and necessary skills in order to
adapt to the organization’s culture.

254

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Cont’d

 Prearrival

 The period of learning prior to a new employee

joining the organization

 individual arrives with a set of values, attitudes,

and expectations about both the work and the

organization.
 for example, a business school, socialize students to
the attitudes and behaviours that companies desire
in future employees.
255

Cont’d

 Encounter

 When the new employee enter the organization and see what the
organization really looks like and confronts whether the expectations and
reality may match/ differ

 Metamorphosis

 When the new employee changes and adjusts to the work, work group,
and organization

256

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Socialization Program Options

Formal versus Informal

 Formal -by separating from normal work setting

 Example: organizing formal training

 Informal -by directly putting employee on normal work setting

Individual versus Collective

 Individual socialization- Socializing employee individually

 Collective- socializing employee by grouping them

257

Cont’d

Serial versus Random

 Serial - use of role models who train and encourage the newcomer.

 Random- role models are deliberately withheld and employees are

left on their own to figure things out.

258

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Cont’d
Investiture versus Divestiture

 Investiture - assumes that the newcomer’s qualities

and qualifications are the necessary ingredients for

job success, so these qualities and qualifications are
confirmed and supported.

 Divestiture- socialization tries to strip (remove)

away certain characteristics of the recruit.

259

Socialization Outcomes

Higher productivity

Greater commitment

Lower turnover

260

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How Employees Learn Culture

 Organizational cultures are derived from the founder and are sustained through
managerial action.

 Employees learn culture through:

 Stories

 Anchor the present into the past and provide explanations and legitimacy for

current practices

 Rituals

 Repetitive sequences of activities that express and reinforce the key values of the

organization
261

Cont’d
 Material Symbols

 Acceptable attire, office size, opulence of the office

furnishings, and executive perks that convey to

employees who is important in the organization

 Language

 Jargon and special ways of expressing one’s self to

indicate membership in the organization

262

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Creating an Ethical Organizational Culture

 Managerial Practices Promoting an Ethical Culture

 Being a visible role model

 Communicating ethical expectations

 Providing ethical training

 Rewarding ethical acts and punishing unethical ones

 Providing protective mechanisms

263

Creating a Positive Organizational Culture

 Positive Organizational Culture is a culture that:

 Builds on employee strengths

 Focus on discovering, sharing, and building on the strengths of

individual employees

264

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Cont’d

 Rewards more than it punishes

 Articulating praise and “catching employees doing something

right”

 Emphasizes individual vitality and growth

 Helping employees learn and grow in their jobs and careers

265

Organizational change and change management

 No company today is in a stable environment.

 Companies that change appropriately can continue as viable businesses.

 Those that do not make the right changes:

 lose their ability to compete,

 cease to exist by going out of business, or

 get gobbled up by a more successful organization.

266

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Cont’d

 Change –occur when things become different from

the way they were.

 Change agents- Persons who act as catalysts and

assume the responsibility for managing change
activities.

 Change agents can be managers or nonmanagers,

current or new employees, or outside consultants.

267

Forces for change

 There are six different forces that stimulate change

 Nature of the workforce- factors like

 cultural diversity

 Aging population

 Increased immigration and outsourcing

268

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Cont’d
 Technology

 Faster, cheaper, and more mobile computers and

handheld devices
 Emergence and growth of social-networking sites

 Economic shocks

 Rise and fall of global market

 Financial sector collapse

 Global recession
269

Cont’d

 Competition

 Global competitors

 Mergers and consolidations

 Increased government regulation of commerce

 Social trends

 Increased environmental awareness

 The rise of green practice

 Liberalization of attitude towards marriage

270

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Cont’d

 World politics

 The rise in power and influence of countries

 Rising health care costs

 Negative social attitudes towards some business and executives

 Opening of new markets worldwide

 Grater scrutiny of financial sectors

271

Planned change

 Planned change- Change activities that are intentional and goal-oriented.

 It is an intentional, and goal-oriented activity

 Planned change has the following goals:

 It seeks to improve the ability of the organization to adapt to changes

in its environment.

 It seeks to change employee behaviour.

272

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Resistance to change

 We often see change as threatening.

 There are two different sources of resistance to change

 Individual sources- reside in human characteristics such as perceptions,

personalities, and needs. Organizational sources- reside in the structural
makeup of organizations themselves.

273

Individual sources

 Habit-To cope with life’s complexities, we rely on habits or programmed

responses.

 But when confronted with change, this tendency to respond in our

accustomed ways becomes a source of resistance.

 Security- People with a high need for security are likely to resist change
because it threatens their feelings of safety.

274

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Cont’d

 Economic factors- when pay is closely tied to productivity and people

fear that they won’t be able to perform the new tasks to their previous
standards, Fear of the unknown-Change creates ambiguity and
uncertainty for the unknown.

275

Cont’d

 Selective information processing- Individuals are guilty of selectively

processing information in order to keep their perceptions intact.

 They hear what they want to hear, and they ignore information that
challenges the world they’ve created.

276

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Organizational Sources

 Structural inertia- to produce stability organizations have built-in

mechanisms such as their selection processes and formalized regulations.

 When an organization is confronted with change, this structural inertia

acts as a counterbalance to sustain stability.

277

Cont’d

 Limited focus of change- Organizations consist of a number of

interdependent subsystems.

 One can’t be changed without affecting the others.

 So limited changes in subsystems tend to be nullified by the larger

system.

 Group inertia- Even if individuals want to change their behaviour, group

norms may act as a constraint.

278

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Cont’d

 Threat to expertise- Changes in organizational patterns may threaten the

expertise of specialized groups.

 Threat to established power relationships-Any redistribution of

decision-making authority can threaten long-established power
relationships within the organization.

279

Overcoming Resistance to Change

 Eight tactics can help change agents deal with resistance to change.

 Communication- communicating the rationale for change reduces

resistance

 Participation- It’s difficult to resist a change decision in which we’ve

participated.

 Building Support and Commitment- having commitment towards

organization reduce resistance to change

280

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Cont’d

 Motivating and supporting employee through out the change reduces

their resistance

 Develop Positive Relationships- People are more willing to accept

changes if they trust the managers implementing them and see them as
legitimate

281

Cont’d
 Implementing Changes Fairly- people accept change if they
see the reason for the change, are kept informed about its
progress, and perceive its implementation as consistent and
fair.
 Manipulation and Co-potation
 Manipulation- covert (secret) influence attempts.

 Twisting facts to make them more attractive

 withholding information
 creating false rumours to get employees to accept change

282

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Cont’d

 Example of manipulation

 threatens employees to close a manufacturing plant while the threat is

actually unfounded
 Cooptation

 combines manipulation and participation

 It seeks to buy off the leaders of a resistance group by:

 giving them a key role,

 seeking their advice and to get their endorsement.

283

Cont’d

 Selecting people who accept change

 ability to accept and adapt easily to change is related to personality

 some people are simply more receptive to change.

 So organizations can facilitate change by selecting people predisposed to

accept change

 it is also possible to select teams that are more adaptable to change.

284

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Cont’d

 Coercion

 Application of direct threats or force on the resisters.

 Example

 threatening employees with transfers,

 blocked promotions,

 negative performance evaluations, and

 poor letters of recommendation

285

Change management process

 Lewin’s Three-Step Model of the Change Process

 Kurt Lewin believe that organization change happens in three steps

1. Unfreezing the status quo

2. Movement to a desired end state, and

3. Refreezing the new change to make it permanent

286

143
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Cont’d

 Status quo- is an equilibrium state

 Driving forces- forces that direct behaviour away from the status quo.

287

Cont’d

 Restraining forces- Forces that hinder movement from the existing

equilibrium.

 To move from equilibrium we need to overcome the pressures of both

individual resistance and group conformity

 This is done at unfreezing stage

 Unfreezing happens in one of three ways:

288

144
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Cont’d

a) Increase the driving forces, that direct behaviour away from the status
quo

b) Decrease restraining forces, which hinder movement away from

equilibrium

c) combine the first two approaches.

 Once the movement stage begins, keep the momentum going.

289

Cont’d

 When change has been implemented, the new situation must be refrozen
so it can be sustained over time.

 The objective of refreezing, is to stabilize the new situation by balancing

the driving and restraining forces.

 Without refreezing stage, change will be short-lived and employees will

attempt to revert to the previous equilibrium state.

290

145
 12/18/2022

Cont’d

291

Cont’d
 Kotter’s Eight-Step Plan

 Built on Lewin’s three-step model to create a more

detailed approach for implementing change.
 He identified common mistakes managers make when
trying to initiate change
 Managers fail to create:

 a sense of urgency about the need for change

 a coalition for managing the change process

292

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Cont’d

 fail to crate a vision for change

 fail to communicate effectively about it and/or to anchor the changes

into the organization’s culture.

 fail to remove obstacles that could impede the vision’s achievement

 fail to provide short-term and achievable goals.

 they declare victory too soon.

293

Cont’d
 Kotter established eight sequential steps to overcome these problems and
implement change successfully.

294

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Cont’d

 Other change management approaches include the following and

incorporated in the next chapter (chapter five)

 Organizational development approach

 Action research

295

CHAPTER FIVE

ORGANIZATIONAL DEVELOPMENT

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What is organizational development?

 Organizational development (OD)- A collection of planned change

interventions/methods, built on humanistic–democratic values, that seeks
to improve organizational effectiveness and employee well-being.

 Organization development (OD)- is a comprehensive approach to

planned change that is designed to improve the overall effectiveness of
organizations.

297

Cont’d
 OD is the application of behavioural science knowledge to improve an
organization’s ability to cope with change in its external
environment and to increase its internal problem-solving
capabilities.
 Organizational development (OD)- is a collection of social
psychology methods employed to improve organizational
effectiveness and employee well-being.
 Theories of OB are applied in organizational settings through OD
interventions.
298

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Cont’d

 OD uses proven methods for developing external adaptation and internal

integration.

 OD seeks to achieve change in such a way that the organization’s

members become more active and confident in maintaining the culture
and long run organization effectiveness.

 OD program’s success in this regard rests with on assumptions, values

and action research foundations.

299

Underlying Assumptions Of OD
 OD has underlying assumptions about individuals, groups, and
organizations.
1. Individual level assumptions

 Respect for people and their capabilities

 Most people are capable of taking responsibility for their own actions

 Most people make positive contributions to organizational performance

 Supportive and challenging work environment to realize individual

needs for growth and development

300

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 12/18/2022

Cont’d

2. Group level assumptions

 Groups can be good for both people and organizations

 Effective groups can be created by people working in collaboration to

meet individual and organizational needs.

301

Cont’d
3. organizational level assumptions
 See organization as a system of interdependent parts and changes in one
part of the organization will affect other parts as well.

 organizational structures and jobs should be designed to meet the needs

of individuals, groups, and the organization.

302

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Shared Values and Principles Underlying OD

 OD offers a systematic approach to planned change that which addresses

two main goals:
 outcome goals (mainly issues of external adaptation), and

 process goals (mainly issues of internal integration).

 Outcome goals- focus on improvements in task performance by

improving external adaptation capabilities.
 focus on what is actually accomplished through individual and group
efforts.
303

Cont’d
 Process goals- include achieving improvements in such things as
communication, interaction, and decision making among an
organization’s members.

 Focus on how well people work together, and they stress improving

internal integration

 To realize the outcome and process goals OD help organization in

applying the following values:

304

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OD values……Cont’d

1. Creating an open problem-solving climate throughout an organization

2. Supplementing formal authority with that of knowledge and competence

3. Moving decision making to points where relevant information is available

4. Building trust and maximizing collaboration among individuals and groups

5. Increasing the sense of organizational “ownership” among members

6. Allowing people to exercise self-direction and self-control at work

305

Cont’d

 Organization development is designed to improve the contributions of

individual members in achieving the organizational goals, and

 It seeks to do so in ways that respect the organization’s members as

mature adults who need and deserve high-quality experiences in their
working lives.

306

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Action Research Foundations of OD

 OD depends on action research

 Action research- a process of systematically collecting data on an

organization, feeding it back to the members for action planning, and
evaluating results by collecting and reflecting on more data after the
planned actions have been taken.

 It is a data-based and collaborative approach to problem solving and

organizational assessment.

307

Cont’d

 Action research sequence

 Identification of performance gaps

 Data collection

 Data feed back

 Data analysis

 Action planning

 Action implementation

 Result evaluation
308

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Action research cycle of OD

309

OD diagnostic framework and intervention techniques

 The frameworks suggests that organizational effectiveness must be
seen from organizational, group and individual perspective.

310

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Organizational Development Interventions

 Organization development interventions- are activities initiated to

support planned change and improve work effectiveness.

 Major OD interventions can be categorized with respect to their major

impact on:

 the organization,

 the group, and

 the individual level action

311

Cont’d
 Organization wide Interventions- they are designed to improve
organizational effectiveness

 An effective organization is one that achieves:

 major performance objectives

 maintaining a high quality of work life for its members.

312

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Cont’d

 Organization wide interventions includes the following

 Survey feedback

 Involves collection of data via questionnaire from representative

sample of organizational members.

 present the data, or fed back to the members.

 engage in a collaborative process to interpreting the data

 develop action plans in response

313

Cont’d
 A confrontation meeting

 A meeting to determine how an organization may be improved and

start action toward improvement

 The meeting should involve OD facilitators, a representative sample

employees, and top management

 Participants asked to suggest alternative strategies for improvement

 Through further discussion tentative action for implementation will be

identified and endorsed by to p management
314

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Cont’d

 Structural redesign

 involves realigning the structure of the organization or major subsystems

to improve performance.

 It includes examining the best fit between structure, technology, and

environment.

315

Cont’d
 Design collateral organization structure- a small-group designed to
engage in creative problem solving

 created by pulling a representative set of members out of the formal

organization structure

 The group engage in periodic problem-solving sessions.

 The collateral, or “parallel,” structures are temporary and exist only

to supplement the activities of the formal structure.

316

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Cont’d
 Group and Intergroup Interventions

 designed to improve group effectiveness

 The major interventions include:

 Team building- involves gathering information and examining how

the group functions and how it may function better.
 Process consultation- focus on improving group functioning

 Focus on “processes” through which members of a group work

with one another.
317

Cont’d

 Concerned with helping a group function better on such things as:

 Norms

 cohesiveness

 decision-making methods

 communication

 Conflict management, and

 task and maintenance activities

318

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 12/18/2022

Cont’d

 Intergroup team building- Focus on how two or more groups improve

their working relationships with one another.

 OD practitioner engages the groups or their representatives in activities

that increase awareness of how each group perceives the other.

 collaborative problem solving can improve coordination between the

groups and encourage more mutual support of one another as important
components in the total organization.

319

Cont’d

 Individual Interventions- Focus task performance and job satisfaction to

improve individual effectiveness in the workplace

 Include the following interventions:

 Role negotiation- a means of clarifying what individuals expect to give

and receive of one another in their working relationship.

 Job redesign- the process of creating long-term congruence between

individual goals and organizational career opportunities.

320

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Cont’d

 It involves the following approach

 Analysing the core characteristics of a job or group of jobs,

 Analysing the needs and capabilities of workers in those jobs,

 Taking action to adjust the core job characteristics either to enrich or

to simplify the jobs to best match individual preferences.

321

Cont’d
 Career planning- creating opportunities for individuals to work with
their managers or staff experts from the personnel or human resources
department on career issues.

 Involves

 Mapping career goals

 Assess personal development needs, and

 planning short-term and long-term career moves

322

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Organizational development process

323

162