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PYC1502/Unit 7: Organisational and work psychology/OER2022

Unit 7: Organisational and work psychology

Learning objectives
• define organisational and work psychology.
• understand the theories of motivation in the workplace.
• understand diversity and how it can be managed in an organisational setting.
• explain the theories of leadership and leadership styles.
• explain work ethics and work values.

7.1 Introduction
Organisational and work psychology is an academic subject and a profession which focuses on
human behaviour related to organisations, work and productivity. It applies psychological
principles to the workplace. The workplace is one of the primary settings of adult life, and work is
an inseparable part of our lives. Through work, people can fulfill a major part of their needs. Work
is also necessary for us to develop. The fact that work has attracted relatively more research
attention than other life domains, it can be explained by the key role that work plays in social life,
not only as the primary source of income, but also as a base for social participation, social status,
consumption, health, family life, and so on.

This unit introduces you to the field of organisational and work psychology. It defines the field of
interest and then traces its development through various approaches. The theories of work
motivation are discussed, followed by the discussion on diversity in organisations. Organisational
aspects such as culture, authority, politics, and conflict form part of the discussion.

7.2 Defining organisational/work psychology

Organisational or work psychology is defined as an applied division of psychology concerned


with the study of human behaviour related to work, organisations and productivity. Organisational
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or work psychology is directed at the behaviour of individuals, groups and organisations in the
work situation (Rothmann & Cooper, 2008). In particular, organisational or work psychology is
interested in how the relationships among employees affect those employees and the
performance of a business. This includes studying worker satisfaction, motivation, and
commitment. This field also studies management, leadership, and organisational culture, as well
as how organizational structures, management and leadership styles, social norms, and role
expectations affect individual behaviour.

7.3 The development of the field of organisational and work psychology

Various approaches and theories contributed to the development of the field of organisational and
work psychology and its identity. When the Industrial Revolution started during the nineteenth
century, relatively large numbers of people started working together voluntarily in manager-
subordinate relationships. The Industrial Revolution brought much technological change to the
workplace. During this era, the emphasis was more on the job itself rather than the person
performing the job. Hence, the engineers focused on the development of efficient machines. They
argued that if the are machines used, then the production of goods could be improved, and that
greater efficiency would follow. However, problems related to efficiency led the engineers to start
considering the people who would operate the machines. This, in turn, led to the implementation
of time and motion studies. Through these studies, attempts were made to design jobs so that
they could be performed in the most efficient manner (Rothmann & Cooper, 2008). Early
contributions such as the scientific management stressed the efficient performance according to
economic principles. Classical organisation theory was concerned with the effective organisation
of people. The human relations movement paid attention to aspects such as human needs,
attitudes, motives and relationships (Rothmann & Cooper, 2008).

7.3.1 Scientific management

The scientific management developed by Frederick W. Taylor, is the approach to organisational


and work psychology that is concerned with maximizing efficiency and getting the highest possible
production out of employees. This approach emphasised the design of the jobs to ensure that
work tasks were planned in a systematic manner. The scientific management believed that
employees were to be carefully selected and trained for their jobs. Taylor also realised that
motivation in work settings was very important. During this period, managers saw their job as
increasing efficiency and were less interested in the well-being of workers (Furnham, 1997). This
type of organisation emphasises management oriented and production-centered perspective of
organisational communication. This approach believes that organisations should be run like
machines and that worker must do labour while the responsibility of the managers is to do the
thinking. Taylor’s ideas greatly influenced the management practices and business thinking of his
time. His ideas facilitated job specialisation and mass production. However, labour unions
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opposed his ideas, because the goal of scientific management was to get more output from the
employees. Some governments thought that the implementation of Taylor’s ideas would lead to
the dehumanisation of the workplace and to workers becoming robots (Rothmann & Cooper,
2008).

7.3.2 Classical organisation theory

The classical organisation theory was concerned with the question as to how large numbers of
workers and managers could be effectively organised into an overall organisational structure. The
main idea of the classical perspectives of organisational communication is that organisations are
similar to machines. Hence, if you have a well-built and well-managed machine, then you will
have a very productive and effective organisation. The assumption is that each employee is part
of a large machine, which is the organisation. If one part fails, then the entire machine fails. In this
regard, Max Weber believed that a bureaucratic form of organisational structure would work for
all types of organisations (Rothmann & Cooper, 2008). Early in the 1900s, Hugo Munsterberg,
one of the founding fathers of organisational and work psychology, argued that the field of
psychology could provide important insights into areas such as the selection of new employees,
and the motivation of employees. At the same time Mary Parker Follett argued that organisations
should strive harder to meet their employees’ human needs and that management should become
more democratic in its dealings with employees (Moorhead & Griffin, 1989).

7.3.3 The human relations movement

The human relations movement paid attention to aspects such as human needs, attitudes,
motives and relationships. This approach believed that people respond primarily to their social
environment, motivation depends more on social needs than on economic needs, and satisfied
employees work harder than dissatisfied workers (Moorhead & Griffin, 1989). The importance of
the human relations movement can be explained in terms of Douglas McGregor’s (1960 theory X
and theory Y). Theory Y represents an optimistic and a positive view of human nature. Theory X
represents a negative and pessimistic view of human nature (Rothmann & Cooper, 2008).

The human relations movement has received some criticisms. For instance, a happy (satisfied)
worker is not necessarily a productive worker. In some instances, it might turn out that because
a worker is productive, he or she might be satisfied. In some instances, this movement led
managers to believe that workers wanted them to act as mothers/fathers towards the workers.
This practice is known as paternalism. Many of the assumptions of the human relations
movement were also rather simplistic and situation-specific (Rothmann & Cooper, 2008).

7.3.4 New developments

More recent developments also contributed to the field of organisational and work psychology.
These are listed below.
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■ Interest in organisational transformation. Organisational transformation is a multi-dimensional,


multi-level, qualitative, discontinuous and radical organisation change.

■ Interest in organisational culture. Efforts to define, measure and change organisational culture
have become more sophisticated. Schein (1985; in Rothmann & Cooper, 2008) has done much
work on organisational culture and has devised interventions to help leaders and employees
identify those cultural assumptions which will assist the organisation in attaining its goals.

■ Interest in the learning organisation. It is clear that some organisations learn better than others.
A learning organisation is an organisation which has developed the continuous capacity to adapt
and change (Rothmann & Cooper, 2008).

■ Interest in teams. The current interest in teams was caused by the pressure on organisations
to improve quality, to become more flexible, and to enhance employee morale (Rothmann &
Cooper, 2008).

■ Total quality management. This is a company-wide effort seeking to install and make a
permanent climate where employees continuously improve their ability to provide valuable
products and services to customers (Rothmann & Cooper, 2008).

Before you continue with this unit, do the following activity:

Activity 1: Complete the following statement by filling in the missing word.

In the development of the field of organisational and work psychology, the . . . was concerned
with maximising efficiency and getting the highest possible production out of employees.

A. new development approach


B. classical organisational theory
C. Scientific management approach
D. human relations movement

Answer: There are four contributions that led to the development of organisational and work
psychology, and each contribution emphasised a different part of organisational behaviour and
processes. The scientific management approach was concerned with maximizing efficiency and
getting the highest possible production out of employees. Therefore, option C is the correct
answer.
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7.4 Theories of motivation

Contemporary work motivation theories can be classified into two broad categories namely; the
content theories and the process theories. These theories are depicted in figure 8.1 below.

THEORIES OF MOTIVATION

Content theories Process theories

-Hierarchy of needs theory -Equity theory

-Motivation-hygiene theory -Expectancy theory

-McClleland’s theory of needs -Goal-setting theory

Figure 7.1: Theories of motivation. (Own construction, 2021).

7.4.1 The content theories of motivation in organisations

The content theories of work motivation focus on: (i) determining what motivates people at work,
(ii) identifying needs and drives and how these are prioritised by individuals; and (iii) the types of
incentives or goals that people strive to attain in order to be satisfied and perform well. Thus, they
focus on the causes that motivate individuals (Rothmann & Cooper, 2008). The theories are
discussed below.

• The Hierarchy of needs theory

Maslow (1971) developed a theory that arranged human needs in a hierarchical order of
importance. The most important needs appear at the bottom of the hierarchy. Once a particular
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level of need is satisfied, it no longer serves as a motivation and the next level of needs becomes
important. The following needs are distinguished:

Figure 7.2: Maslow’s hierarchy of needs theory. (https://www.simplypsychology.org/maslow.html).

- Physiological needs: this level of needs comprises the most basic human needs such as
hunger, thirst, sleep, and so on.

- Safety/security needs: they involve the protection from physical danger and economic
instability. This involves stable working conditions, the provision made for illness, disability
and old age by contributing toward medical, insurance and pension schemes.

- Belonging/love needs: refer to the need to affiliate with other people. They involve the need
to have friends, to be loved by others and to be accepted by other people. The social group
in which the individual is a member plays a very important role in satisfying these needs.

- Esteem/ego needs: refer to the needs related to a person’s self-value and self-respect (e.g.
achievement, independence and freedom). Esteem needs also involve the reputation or
prestige that others ascribe to the person (e.g. status, recognition and respect).

- Self-actualisation needs. These are found at the top of the hierarchy of needs and are
associated with the desire to become all that one is capable of being. These are needs that
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essentially equates to achieving one’s full potential and can only be realised when needs
lower on the pyramid have been met. To Maslow and humanistic theorists, self-actualisation
reflects the humanistic emphasis on positive aspects of human nature.

Figure 7.3: Money can be used to satisfy various needs as distinguished by Maslow.
Source: https://www.sapeople.com/wp-content/uploads/2018/07/Screen-Shot-2018-07-05-at-08.30.11.png

Maslow’s theory has been subjected to much research in the discipline of psychology, with some
research using the theory to understand organisations and their functioning. In cases where it has
been researched in organisations, the data gathered does not seem to strongly support the
theory. There seems to be an overlap between the different categories of needs. It is also possible
that many of people’s different needs may be partially satisfied and partially unsatisfied at the
same time (Rothmann & Cooper, 2008).

• The Motivation-hygiene theory

Frederick Herzberg’s (1959) theory attempts to determine what do people want from their jobs.
The theory postulates that job factors such as achievement, recognition, responsibility,
advancement and growth, are consistently related to job satisfaction. He called these factors
motivators. Job factors that tended to be consistently related to job dissatisfaction were company
policy and administration, supervision, interpersonal relations with supervisor, work conditions,
salary, factors in personal life, status and job security. He called these hygiene factors.

Factors such as a good pay, good supervision, and a pleasant work environment are important
factors that can prevent employees from becoming dissatisfied. In practice, then, one should
attend to both the motivators and the hygiene factors to keep employees motivated and satisfied
(Rothmann & Cooper, 2008). The theory also emphasises personal growth as a motivating factor
in the workplace. Criticism directed at the theory is that the procedure which Herzberg used had
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methodological limitations. When things are going well, people tend to take credit for themselves,
and then blame failure on the external environment. Furthermore, the theory provides an
explanation of job satisfaction rather than work motivation (Robbins, 1996).

• McClelland’s theory of needs

McClelland (1987) conducted extensive research on the needs for power, affiliation and
achievement. Figure 8.4 below depicts his theory of needs.

Figure 7.4: McClelland’s theory of needs. (Source: https://s-media-cache-


ak0.pinimg.com/736x/6c/aa/37/6caa37d8d74314c1db2a9d883a70ffec--yen-theory.jpg)

-The need for power: this need is characterised by a desire to have impact, to be influential and
to have control over one’s environment. Individuals high in the need for power enjoy being in
charge. They prefer to be in competitive and status-oriented situations and tend to be more
concerned with prestige and gaining influence over others (McClelland,1987).

-The need for affiliation: it relates to the desire to form strong interpersonal ties and to get close
(on a psychological basis) to other people. It is a need for human companionship, and to be liked
and accepted by others. People with this type of need tend to strive for friendship, prefer co-
operative situations rather than the competitive ones. Moreover, they desire relationships
involving a high degree of mutual understanding (McClelland,1987).

-The need for achievement: people with this need set themselves goals which are neither too
easy nor too difficult, but challenging, so that a person should make use of his or her abilities.
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Also, such people tend to be preoccupied with work, even when away from the work situation.
They also tend to take personal responsibility for getting things done (McClelland, 1987).

7.4.2 The process theories of motivation in organisations

The process theories of motivation are concerned with the mental (thinking) processes that
individuals engage in when choosing between different courses of action to satisfy their needs
(Rothmann & Cooper, 2008). Some of these theories are discussed below.

• Equity theory

When employees work for an organisation, they basically exchange their services for pay and
other benefits. Adams’ (1963) equity theory is based on the premise of fairness and that people
want to be treated fairly (equitably). Equity is defined as the belief that a person is being treated
fairly in relation to others, and inequity is the belief that a person is being treated unfairly in relation
to others. In other words, inequity is perceived whenever people believe that the rewards they
receive for their work are unfair (or less) compared to the rewards other people are getting for the
same job (Moorhead & Griffin, 1989).

Individuals compare themselves with other people or situations to decide whether they have been
treated equitably. This comparison is based on the input the person makes in relation to the
outcome received. This ratio (outcomes to inputs) is compared to what the person sees as the
ratio of outcomes to inputs of the people or situations they compare themselves with (Rothmann
& Cooper, 2008).

What is rather complicated about the equity theory is the role of the specific reference person or
situation that the individual compares himself or herself to. The comparison others may be co-
workers in the group, workers elsewhere in the same organisation, and even people employed
by other organisations. According to Adams (1963), these comparisons can result in any of three
states of inequity:

Overpayment inequity - it occurs when a person’s outcome-input ratio is greater than the
corresponding ratio of the comparison person or situation. When overpayment is perceived, such
a person will tend to feel guilty.

Underpayment inequity - this occurs when a person’s outcome-input ratio is less than the
corresponding ratio of the comparison person. When underpayment is perceived, such a person
will tend to feel angry.
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Equitable payment - it occurs when a person’s outcome-input ratio is equal to the corresponding
ratio of the comparison person. When the equitable payment is perceived, a feeling of satisfaction
occurs (Rothmann & Cooper, 2008).

• Expectancy theory

Vroom’s (1964) expectancy theory is about people’s expectations and how these expectations
influence their behaviour in organisational settings. According to this theory, motivation is the
result of three different types of beliefs (or expectancy factors) that people have and each of these
factors implies a certain relationship. These factors are:

-Expectancy (E): is a person’s belief that working hard will result in the achievement of a desired
level of task performance (effort–performance expectancy). People with high effort-performance
expectancy believe that the harder they work, the more they will accomplish. Conversely, a person
might be willing to work hard, but might not have the necessary skills or training, or has to work
with faulty equipment. In this case such a person is more likely to hold a very low effort-
performance expectancy (Rothmann & Cooper, 2008).

-Instrumentality (I): this relates to a person’s belief that successful performance will be rewarded
(performance-outcome expectancy). If a person performs at a high level, his or her motivation is
more likely to decrease if that performance is not suitably rewarded by the organisation. In this
case, the person is more likely to hold a low belief that high performance is instrumental in bringing
rewards. Normally, this happens when a person has reached the top of the salary scale, and no
further advancement opportunities exist for him or her (Rothmann & Cooper, 2008).

-Valence (V): it refers to the degree to which organisational rewards satisfy an individual’s
personal goals or needs. Thus, this reflects the value a person assigns to the possible rewards
and other work-related outcomes (rewards-personal goal expectancy). For example, if a person
wants a promotion as a reward for performance but only receives a bonus, such a person is more
likely to hold a low rewards-personal goal belief and the motivation is more likely to decrease.

According to the theory, motivation is not equal to job performance, but is one of several factors
which influence job performance. Skills, abilities, and role perceptions also play an important role
in job performance (Rothmann & Cooper, 2008).

• Goal-setting theory

Locke and Latham (2002) provided a well-developed goal-setting theory of motivation that
emphasises the important relationship between goals and task performance. Based on hundreds
of studies, the major finding of goal setting is that individuals who are provided with specific,
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difficult but attainable goals perform better than those given easy, non-specific, or no goals at all.
At the same time, however, the individuals must have sufficient ability, accept the goals, and
receive feedback related to performance (Lunenburg, 2011). Goals motivate people to develop
strategies that will enable them to perform at the required goal levels. Accomplishing the goal can
lead to satisfaction and further motivation, or frustration and lower motivation if the goal is not
accomplished. Figure 8.5 shows a simplified view of goal-setting theory.

Figure 7.5: A model of Goal-setting theory. (Source: https://tinyurl.com/mwa5bz3c)

Goals have a pervasive influence on employee behaviour and performance in organisations and
management practice. Goals affect performance through four mechanisms, namely:

- they direct attention and effort to goal-relevant activities and away from goal-irrelevant
activities

- they have an energising function

- they affect persistence and,

- they affect action indirectly by leading to arousal, discovery and or use of task-relevant
knowledge and strategies (Locke & Latham (2002).

Moderators of the goal-performance relationship include the following:

- Goal commitment: the goal-performance relationship is strongest when people are


committed to goals. Workers tend to be committed to goals when they regard them as
important and when their levels of self-efficacy are high.

- Feedback: for goals to be effective, people need summary feedback that reveals progress
in relation to their goals.
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- Task complexity: goal effects are dependent upon the ability to discover appropriate task
strategies (Rothmann & Cooper, 2008).

Under the right conditions, goal setting can be a powerful technique for motivating organisation
members. Specific goals (often quantified) let the members know what to reach for and allow
them to measure their own progress. These specific goals help bring about other desirable
organisational goals, such as reducing absenteeism, tardiness, and turnover (Locke & Latham,
2002).

GROUP ACTIVITY
In a discussion on myUnisa with your e-tutor and peers, explain which theory you regard
as the best in terms of work motivation and provide examples where necessary.

NB: Please note that it is compulsory for you to have this discussion.

7.5 Diversity and its dimensions in organisations

Diversity refers to the multitude of individual differences and similarities that exist among people.
It includes the mixture of many dimensions which make people unique and different from each
other (Thomas, 1996). Diversity has primary and secondary dimensions.

• Primary dimensions of diversity refer to human differences which affect the early
socialisation of individuals and have a powerful and sustained impact throughout their
lives. Primary dimensions include gender, ethnicity, race, mental and physical abilities,
sexual orientation and age (Rothmann & Cooper, 2008).

• Secondary dimensions of diversity refer to personal characteristics that include an element


of personal choice. These dimensions are less visible to others, and their power to
influence individuals’ lives is less constant and more individualised. Secondary
dimensions include education, language, religion, income, experience, geographic
location, organisational role and communication style (Rothmann & Cooper, 2008).
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Figure 7.6: The workforce of organisations is increasingly becoming diverse.


(https://hbswk.hbs.edu/PublishingImages/heskett-jan-2021-1280x720-SOCIALv2.jpg).

7.5.1 Valuing diversity and managing diversity

There is a difference between valuing diversity and managing diversity. Valuing diversity refers
to the awareness, recognition, understanding, and appreciation of human differences (Thomas,
1996). Valuing diversity takes place through training and development of workers to improve
interpersonal relationships among diverse groups (Nemetz & Christensen, 1996).

Managing diversity entails enabling people to perform to their maximum potential by changing an
organisation’s culture and infrastructure to allow people to be productive (Rothmann & Cooper,
2008). Managing diversity is different from affirmative action. Managing diversity focuses on
maximising the ability of all employees to contribute to organisational goals. Affirmative action
focuses on specific groups because of historical discrimination, such as people of colour and
women. Affirmative action emphasises legal necessity and social responsibility; managing
diversity emphasises business necessity. While managing diversity is also concerned with under-
representation of women and people of colour in the workforce, it is more inclusive and
acknowledges that diversity must work for everyone (Rothmann & Cooper, 2008).

7.5.2 Importance of diversity management

Diversity management is important because it enables organisations to grow and be sustainable


in an increasingly competitive marketplace (Agars & Kotke, 2005). According to Rothmann and
Copper (2008), the most important reasons for managing diversity at work include:

A diverse workforce - more women are entering the workforce and people of colour represent a
growing share of the workforce. There is a mismatch between the educational attainment and
occupational requirements of occupations, the workforce is ageing, more people with disabilities
are entering the labour market, and sexual orientation and political views can also create tensions
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in the workplace. All these elements should be effectively managed for the organisations to
succeed.

The service economy - the interpersonal nature of service transactions makes similarities
between employee and customer more important. As the population in general becomes more
diverse, employees who can communicate most efficiently with those clients become a business
advantage.

Globalisation - globalisation has increased the contact with clients and co-workers from other
countries. An understanding of cultural differences can not only facilitate communication but can
also avoid potentially embarrassing situations.

The changing labor market - since the labor market is ever-changing, employers are now
developing new recruiting strategies to target older employees, minorities, and immigrants. They
are developing more flexible benefits packages (more flexible hours, working from home, etc.) to
accommodate the new diversity in the work force.

Before you continue with this unit, do the following activity:

Activity 2: Imagine that you are the new CEO of a company that provides services to a
multilingual, diverse country such as South Africa. You have recently established offices in South
Africa, and you want to employ the local people to work with the targeted communities. The main
challenge you are facing is the diverse nature of South African workforce. As the CEO, explain
what strategies or approaches you are going to implement to deal with the challenge of diversity
in your organisation.

Answer: One of the striking features about South Africa is its diversity in terms of races, cultures,
religions, and languages. Your answer should consider the impact that diversity may have on
achieving your organisational goals. You should also consider how such diversity can be
managed or controlled so that it does not escalate into conflict within your organisation.

7.6 Motivation and job satisfaction in the workplace

Motivation [in the workplace] is a set of energetic forces that originate both within and outside an
individual to initiate work-related behaviour and to determine the direction, intensity and duration
thereof (Latham & Pinder, 2005). Job satisfaction can be defined as an evaluative state that
expresses contentment with, and positive feelings about one’s job. It includes cognitive, affective,
and behavioral aspects. In short, job satisfaction is the result of employees’ perception of how
well their job provides those things that are viewed as important. Job satisfaction is associated
with numerous organisational outcomes, such as higher commitment, greater job involvement,
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improved performance, better organisational citizenship, and also with lower levels of turnover,
and less absenteeism (Rothmann & Cooper, 2008).

7.6.1 Factors influencing job satisfaction

There are a number of factors that seem to promote job satisfaction. The work itself seems to be
related to job satisfaction, especially interesting and challenging work, and work which provides
status to the employee. Pay seems to be a major factor in job satisfaction, because the money
helps an individual to satisfy a number of needs, including the higher-level needs. Promotional
opportunities also seem to contribute to job satisfaction. Worker-centredness and participation
are the two dimensions of supervision that seem to increase job satisfaction in the workplace
(Luthans, 1992). Working conditions seem to have a modest effect on job satisfaction. If working
conditions are good, there would be less job satisfaction problems. If they are poor, there would
be more problems. An employee’s needs and aspirations can affect job satisfaction. If a person
wants to be in a high-status position, gaining such a position would probably enhance the level of
job satisfaction. The instrumental benefits of the job, or the extent to which the job enables the
employee to achieve other ends also play an important role in job satisfaction (Rothmann &
cooper, 2008).

7.6.2 The consequences of job satisfaction and job dissatisfaction

It seems there is a moderate inverse relationship between job satisfaction and turnover as high
job satisfaction does seem to help to keep turnover low (Luthans, 1992). However, if there is high
job dissatisfaction, turnover is more likely to be high as well. The reason for this moderate
relationship is that other factors (e.g., the state of the economy) play a role in an employee’s
decision to keep or quit the job. There is also an inverse relationship between satisfaction and
absenteeism. That is, when employees are highly satisfied, they tend to be less absent from work;
when they are highly dissatisfied, they tend to be more absent from work. Again, there are other
factors which influence this relationship. One such factor might be the degree to which an
employee feels that his or her work is important. If a person feels that his or her work is important,
he or she will be less likely to be absent from work (Luthans, 1992).

7.7 Organisational culture


As employees work together, specific procedures are followed, problems are handled in certain
ways, and decisions are made and in time, these procedures and ways become the accepted
way in which such actions are performed. Therefore, organisational culture can be defined as
the internal consistent pattern of affirmations, confirmations and limitations which lead people to
act, judge and justify themselves according to sanctioned ways (Weick, 1985). Organisational
culture simply explains ‘how things are done around here.’ The organisational culture could have
an inhibiting or facilitating effect on the group behaviour. Group effectiveness can be promoted if
the current organisation culture is supportive of innovation and shared expectations of success
(Rothmann & Cooper, 2008).
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7.7.1 Components of organisational culture


Rothmann and Cooper (2008) mentioned the following four components of organisational culture:

Assumptions

Artefacts ORGANISATIONAL Values and


CULTURE beliefs

Behavioral
norms

Figure 7.7: Components of organisational culture. (Own construction, 2021).

o Assumptions- describe what is important and how problems in the organisation are resolved.
These assumptions could be studied through intensive observation, focused questions and
intensive self-analysis. Normally, people are unaware of these assumptions.

o Values and beliefs- describe the things which are important for organisation members.
Values and beliefs can be studied by using interviews, observation and questionnaires.

o Behavioral norms- these are unwritten behavioral rules that people are aware of. These
norms prescribe how people should behave in specific situations.

o Artefacts- refer to creations that are visual manifestations of other cultural levels. Artefacts
include the observable behaviour of employees, dress, structures, systems, policies,
procedures, rules, records, annual reports and physical layout of the organisation. It is,
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however, difficult to judge artefacts accurately as they are not necessarily a reliable indicator
of how people behave (Rothmann & Cooper, 2008).

7.8 Organisational strategy and authority structures


An organisational strategy outlines the organisation’s goals and the means for attaining these
goals. It might direct the organisation towards reducing costs, improving quality, expanding
market share or shrinking the size of the total operation. The organisation’s strategy may influence
the power of various work groups, which will determine the resources which the organisation’s
top management is willing to allocate to it for performing the tasks. The communication of the
mission of the organisation is especially important for work teams where its’ work is closely related
to those of other work units. Group members will be more motivated to strive for group goals if
they accept them. Resistance and self-oriented behaviour arises if group members do not accept
the goals (Rothmann & Cooper, 2008).

Organisations have authority structures which define who reports to whom, who makes
decisions, and what decisions individuals or groups are allowed to make. This structure
determines where a given work group is placed in the organisation’s hierarchy, the formal leader
of the group, and formal relationships between groups. While a work group might be led by
someone who emerges informally from within the group, the formally designated leader
(appointed by management) has authority which others in the group do not have. The informal
relationships in an organisation may undermine the formal structure. For example, the personal
relationship between the director of an organisation and the manager of one department (of a
specific division) may undermine the formal authority of the head of the division (Rothmann &
Cooper, 2008).

7.9 Organisational politics


Organisational politics refer to actions not officially approved by an organisation taken to influence
others in order to meet one’s personal goals. Organisational politics involves placing one’s self
interests above the interests of the organisation. This element of using power to foster one’s own
interests distinguishes organisational politics from uses of power which are approved and
accepted by organisations. Political activity is more likely to occur in the face of ambiguity. When
there are clear-cut rules about what to do, it is unlikely that people would abuse their power by
taking political action. Organisational politics would be more active at higher levels in the
organisation (Baron & Greenberg, 1990). The following political tactics are used most often in
organisations:

7.9.1 Blaming and attacking others- This is one of the most popular political tactics in
organisations. This manifests in looking for a scapegoat - someone who could take the blame for
some failure.
PYC1502/Unit 7: Organisational and work psychology/OER2022

7.9.2 Controlling access to information- Controlling who knows and does not know certain things
is one of the most important ways of exercising power in organisations.

7.9.3 Cultivating a favorable impression- Another way to enhance organisational control is to


ensure that the impression one makes would be favorable.

7.9.4 Developing a base of support- To be successful in influencing others, individuals


sometimes gain the support of others in the organisation. This includes lobbying for ideas before
they are officially presented and ensuring that others are committed to them in advance.

7.9.5 Aligning oneself with powerful people- One way of dealing with power is by connecting
oneself with other people who are powerful in the organisation (Rothmann & Cooper, 2008).

7.10 Organisational conflict


Conflict is defined as a process which begins when one party perceives that another party has
negatively affected, or is about to negatively affect, something the first party cares about. Conflict
is common in most modern organisations. Its effects are too costly to ignore. Opposing
(incompatible) interests lie at the bottom of organisational conflict. Yet conflict involves more than
this. Disputes sometimes erupt in situations where the interests of the two sides are not clearly
opposed, while in other cases conflict fails to develop despite the existence of deep divisions
between opposing parties. There must also be some form of interaction for conflict to exist.
Functional conflict is a constructive form of conflict which supports the goals of the group and
improves its performance. Dysfunctional conflict is a destructive form of conflict which hinders
group performance. The criterion that differentiates functional from dysfunctional conflict is group
or organisational performance. Conflict would be functional if it furthers the objectives of the
group. According to Robbins (1996), the conflict process has five stages.

7.10.1 Stages of organisational conflict process

Stage 1: Potential opposition or incompatibility. The first stage involves the presence of
conditions that create opportunities for conflict to arise. These conditions include communication,
structure, and personal variables. Semantic differences and misunderstandings may create
opportunities for conflict. Differences between individual value systems and personality
characteristics may be sources of conflict. Individuals who are highly authoritarian and dogmatic,
and who demonstrate low self-esteem lead to potential conflict.

Stage 2: Cognition and personalisation. If the conditions in stage 1 lead to conflict, then the
potential for opposition becomes actualised in this stage. The conditions can only lead to conflict
when one or more of the parties are affected by, and aware of the conflict. It is at the felt level,
when individuals become emotionally involved, that parties experience anxiety, tension,
frustration and hostility leading to potential conflict.
PYC1502/Unit 7: Organisational and work psychology/OER2022

Stage 3: Intentions. Intentions intervene between people’s perceptions and emotions and their
overt behaviour. These intentions are decisions to act in a given way. This stage is important
because individuals have to infer the other’s intent in order to know how to respond to their
behaviour. Conflicts are often escalated because one party attributes the wrong intentions to the
other.

Stage 4: Behaviour. Conflict becomes visible during this stage. This stage includes the
statements, actions and reactions made by the conflicting parties. These conflict behaviours are
usually overt attempts to implement each party’s intentions. The following techniques can be used
to manage the conflict during this stage: a) problem-solving meetings between conflicting parties;
b) goal-setting where the cooperation of everyone is needed; c) expanding the resources which
create the conflict; d) withdrawing or avoiding the conflict; e) playing down the differences while
emphasising common interests; f) compromising; g) using formal authority to solve the conflict;
h) training people to alter their attitudes and behaviour; i) altering the structural variables.

Stage 5: Outcomes. Outcomes of conflict can be two ways: (i) Functional conflict can improve
the performance. It may also improve the quality of decisions, stimulates creativity and innovation,
encourages interest among group members and provides the medium through which problems
can be aired and tension released. Better and more innovative decisions will result from situations
where there is some conflict. (ii) Dysfunctional conflict may hinder performance. Uncontrolled
opposition breeds discontent, which acts to dissolve common ties and eventually leads to the
destruction of the group. Dysfunctional conflict may retard communication, reduce group
cohesiveness and cause subordination of group goals to the primacy of infighting between
members (Rothmann & Cooper, 2008).

7.11 Leadership in organisations


Leadership is the process whereby one individual influences other group members towards the
attainment of defined group or organisational goals. The source of this influence may be formal,
thus, a person may assume a leadership role because of the position he or she holds in the
organisation. However, not all managers are leaders and not all leaders are managers.
Leadership is therefore, concerned with building cohesive and goal-oriented teams. Leadership
is persuasion, not domination (Rothmann & cooper, 2008).

There are various reasons why leadership is important. Hogan and Kaiser (2005) give the
following reasons why leadership really matters:

-Leadership solves the problem of organising collective effort. Good leadership leads to
organisational success, as well as financial and social well-being of people.

-Bad leaders cause misery for people who are subject to their domain.
PYC1502/Unit 7: Organisational and work psychology/OER2022

-Several patterns of leadership behaviour are associated with subordinates’ performance and
satisfaction. Reactions to inept leadership include turnover, insubordination, industrial sabotage
and malingering.

7.11.1 Theories of leadership


Leadership is one of the widely studied and ever-advancing concepts. Leadership research has
historically evolved across three eras - trait, behaviour, and contingency and they are also
considered as three approaches to leadership. However, there are many more new developments
which are coming up (Sudha et al., 2016). This section explores some of these theories.

• Trait theories

In the early twentieth century there were many strong advocates of the trait theories of
leadership. The tendency to describe people in terms of traits has a long history. Throughout
history many people believed that leaders are born, not made, and that great leaders are
discovered, not developed. The implication of the trait theories is that it is possible to select the
right person to assume formal positions in groups and organisations. Traits of leaders may act as
a moderating variable in determining leadership behaviour (Zaleznik, 1993). In certain
combinations, personality traits may account for about 35 per cent of the variance in leadership
behaviour (Bass, 1998).

However, the trait approach is not very successful in explaining leadership because; (i) it
overlooks the needs of followers; (ii) it fails to clarify the relative importance of various traits; (iii)
it fails to separate the cause from the effect - (for example; are leaders self-confident or does
success as a leader build self-confidence) and (iv) it ignores the situational factors that may
influence leadership (Rothmann & cooper, 2008).

• Behavioral theories

The behavioral theories focus on specific behaviour that effective leaders exhibit that might
differentiate them from ineffective leaders. The implication of behavioural theories is that the
behaviour of individuals should be studied in order to identify leaders, and that it is possible to
train leaders. Although the behavioural theories are criticised for the fact that they do not consider
the situation in which leadership occurs, they added valuable insights to the field of leadership
(Rothmann & cooper, 2008).

• Contingency theories

The success in leadership is more complex than isolating few traits or preferable behaviour.
Fiedler (1967) developed the first comprehensive contingency theory of leadership. The theory
suggests that leadership performance can be understood in relation to the context in which it
occurs, and that success is achieved when there is a good leader-situation match. In
PYC1502/Unit 7: Organisational and work psychology/OER2022

organisations, contingency theories emphasise the fit between organisational processes and the
characteristics of the situation. Situational variables include the degree of structure in the task
performed, the quality of leader-member relations and the maturity of followers (Robbins, 1996).
Furthermore, the theory states that effective group performance depends on the match between
the leader’s style of interacting with subordinates and the degree to which the situation allows
control. This means that an individual’s leadership style is a key factor in leadership success.
According to the theory there are two ways to improve leader effectiveness: (i) change the leader
to fit the situation; (ii) change the situation to fit the leader (Rothmann & Cooper, 2008).

7.11.2 Leadership styles


You will remember that we discussed types of leadership styles in unit 5. In this section we briefly
discuss some of the leadership styles discussed in unit 5, however, in this unit we discuss
leadership styles pertaining to the organisational context. In other words, this section is an
extension of the section which discussed patterns of leadership in unit 5. As previously stated,
there are various leadership styles that leaders tend to exhibit. This section looks at some of these
leadership styles.

Charismatic leadership style: The model of Conger and Kanungo (1987) proposes that
charismatic leadership is an attributional phenomenon founded on subordinate perceptions of the
leader’s behaviour. Subordinates observe and interpret leader behaviour and traits as
expressions of charisma. Charismatic behaviours and traits need not always be present to an
identical degree in every charismatic leader and their relative importance will vary with the
situation. Followers make attributions of heroic or extraordinary leadership abilities when they
observe certain behaviour.

Figure 7.8: The former president of South Africa, Nelson Mandela and Dr. Martin Luther King Jr. are the
examples of charismatic leaders. (Alexander Joe/AFP/Getty Images; www1.cuny.edu).
PYC1502/Unit 7: Organisational and work psychology/OER2022

Conger and Kanungo (1998) identified the following behavioral characteristics of a charismatic
leaders:

-Self-confidence - they have complete confidence in their judgement and abilities.


-A vision - they have an idealised goal, which proposes a future better than the status quo.
-Ability to articulate the vision - they are able to clarify and state the vision in terms which are
understandable to others.
-Strong convictions about the vision - they are perceived as being strongly committed and willing
to take on high personal risk and engage in self-sacrifice to achieve their vision.
-Behaviour which is out of the ordinary - they engage in behaviour which is perceived as novel,
unconventional and counter to the norms.
-Perceived as a change agent - charismatic leaders are perceived as agents of radical change
rather than as caretakers of the status quo.
-Environmental sensitivity - they are able to make realistic assessments of the environmental
constraints and resources needed to bring about change.

Conger and Kanungo (1998) proposed that charismatic leadership may not always be needed to
achieve high levels of employee performance. It may be most appropriate when the follower’s
task has an ideological component. That is probably the reason why charismatic leaders are likely
to surface in politics, wartime, religion and when a business firm is transforming (Rothmann &
Cooper, 2008).

Transformational leadership style: Transformational leadership is associated with most


positive connotations where behavioural facets such as motivation, emotional connect and sense
of efficacy are contributory factors and has significant impact on performance and other
organizational outcomes (Sudha et al., 2016). Bass (1998) defined transformational leadership in
terms of how the leaders affects followers, who are intended to trust, admire and respect the
leader. He identified three ways in which leaders transform followers, namely: (i) increasing their
awareness of task importance and value, (ii) getting them to focus first on team or organisational
goals, rather than their own interests; and (iii) activating their higher-order needs.
Transformational leaders may achieve organisational goals through methods such as coaching
and mentoring (Rothmann & Cooper, 2008). Therefore, transformational leadership style is based
on mutual admiration with common vision, and creative exchange of ideas (Sudha et al., 2016).

Transformational leaders inspire followers to transcend their own self-interests for the good of the
organisation and they have an extraordinary effect on their followers. They pay attention to the
concerns and development needs of individual followers, and they are able to excite, arouse and
inspire followers to put out extra effort to achieve group goals. Research indicates that
transformational leadership is more strongly correlated, with lower turnover rates, higher
productivity rates and higher employee satisfaction (Rothmann & Cooper, 2008).
PYC1502/Unit 7: Organisational and work psychology/OER2022

Transactional leadership style: Transactional leadership style operates as a kind of social


exchange between the leaders and the followers. It is a kind of leadership in which compliance
from the follower is obtained through the use of reward and punishment. The focus of this style is
to supervise, organise and perform individually as well as a group. The leader closely monitors
the work of the followers and ensures that he/she follows the prescribed paths (Sudha et al.,
2016). Transactional leaders guide or motivate their followers in the direction of the established
goal by clarifying role and task requirements (Rothmann & Cooper, 2008).
Click on the below link to watch a video on the differences between Transactional and
Transformational leadership styles:
https://www.bing.com/videos/search?q=Video+explaining+the+different+leadership+styles&&vie
w=detail&mid=232DF9CE26E7506EA2EF232DF9CE26E7506EA2EF&&FORM=VDRVRV

Laissez-faire leadership style: Laissez-faire leadership style has been explained as one that
abdicates responsibilities and avoids making decisions or a failure of taking a managing
responsibility. This style has been found to be less effective compared to the transformational and
transactional leadership styles. This type of leadership style is poor, ineffective and highly
dissatisfying for followers (Sudha et al., 2016).

7.12 Work ethics and work values

Work ethics is a multidimensional construct consisting of a constellation of attitudes and beliefs


pertaining to work behaviour. Beliefs and attitudes which are often included in the study of work
ethics include work centrality, self-reliance, hard work, attitudes towards leisure, wasted time,
morality, and the delay of gratification (Real et al., 2010). Thus, employees’ work ethics may be
regarded as the overall framework from which work values emanate, which, in turn, influences
individuals’ behaviour at work. According to Fox (2006, in Sobayeni, 2015), ethical behaviour
forms the foundation or basis of all managerial actions. That is, for managerial actions to achieve
their intended outcomes, ethical behaviour has to be prioritised.

Schwartz (1992) defined [work] values as desirable states, objects, goals, or behaviours,
transcending specific situations and applied as normative standards to judge and to choose
among alternative modes of behaviour. This definition suggests that values are relevant to the
workplace, as the workplace may be regarded as a situation in which an individual operates, and
where values are applied in order to guide adequate behaviour (Sobayeni, 2015). Due to
individual differences, what is perceived as important or valuable to one individual may not be
important to another individual (Schwartz, 2006). For example, one employee may value job
security, and another employee may value reward, and ultimately these values will influence their
behaviour at work (Sobayeni, 2015).
PYC1502/Unit 7: Organisational and work psychology/OER2022

Work values occupy a specific domain within the context of people's lives. They govern the
importance placed on work and work-related aspects by individuals (and groups of people) within
the context of the entirety of their lives. Research on work values indicates that such values are
derived from the same basic value systems which guide individuals through the various facets of
their lives. In this sense, they are a specific subset of general life values; and so, are influenced
by intrinsic and extrinsic factors (Pryce, 2014).

• Intrinsic (or cognitive) work values - apply to inherent psychological satisfactions of working,
such as interesting, challenging and/or varied work and intellectual stimulation.

• Extrinsic (or instrumental) work values - refer to more tangible aspects of work, such as pay,
benefits, autonomy, leave and job security.

These other work values are often subsumed under intrinsic or psychological work values.

Social work values - refer to the relations with co-workers, supervisors and other people.

Altruistic (or humanity) work values - pertain to the desire to help others and to be involved in
work which benefits the society.

Prestige work values - apply to status, influence, and power (Pryce, 2014).

7.12.1 Characteristics of [work] values

According to Pryce (2014), the characteristics of work values can be summarised as follows:

-Values are enduring beliefs and they are developed over a lifetime: They are firmly held opinions
that individuals embrace, which guide their life and their decision making.

-Values are learned as the individual develops and matures: Various events, significant others
(parents, friends, etc.) and culture influence an individual’s values.

-Values are a motivational construct: they are inherent elements that push the individual to attain
certain goals. For example, if an individual values power and achievement, they will be motivated
to work hard to achieve power in the workplace.

-Values transcend particular actions and situations: Thus, are also applicable to other actions and
situations.

-Values are guidelines: they guide an individual’s judgement of behaviour, people, and actions.
PYC1502/Unit 7: Organisational and work psychology/OER2022

GROUP ACTIVITY
In a discussion on myUnisa with your e-tutor and peers, discuss work ethics/ values
and explain which ethics/values you regard as important in the workplace.

NB: Please note that it is compulsory for you to have this discussion.

Summary
The field of organisational and work psychology has evolved over many years. This has led to the
developments of many aspects related to work and organisations. It is undeniable that work plays
an important part of our lives. It accords status and enables us to fulfil many of our needs. Theories
of motivation paved a way to our understanding of why people work and how they become
motivated to do so. Therefore, the field of organisational and work psychology has greatly
improved our understanding of human behavior in the work context and performance that
enhances organisational success.
PYC1502/Unit 7: Organisational and work psychology/OER2022

Glossary

Authority structures - are the structures that define who reports to whom, who makes decisions,
and what decisions individuals or groups are allowed to make.

Behavioural theories - a group of theories that focus on specific behaviour that effective leaders
exhibit that might differentiate them from other leaders.

Charismatic leadership style - proposes that charismatic leadership is an attributional


phenomenon founded on subordinate perceptions of the leader’s behaviour. Subordinates
observe and interpret leader behaviour and traits as expressions of charisma.

Classical organisation theory - a theory that focuses at how large number of workers and
managers could be effectively organised into an overall organisational structure.

Content theories - they focus on what motivates people at work, identifying needs and drives,
and the types of incentives or goals that people strive to attain. Thus, they focus on the causes
that motivate individuals.

Contingency theories - they emphasise the fit between organisational processes and the
characteristics of the situation.

Diversity - refers to the multitude of individual differences and similarities that exist among
people. It includes the mixture of many dimensions which make people unique and different from
each other.

Dysfunctional conflict - is a destructive form of conflict which hinders group performance in


organisations.

Equity theory - is based on the premise of fairness and that people want to be treated fairly
(equitably).

Expectancy theory - is about people’s expectations and how these expectations influence their
behaviour.

Functional conflict - is a constructive form of conflict which supports the goals of the group and
improves its performance.

Goal-setting theory - a theory that emphasises the important relationship between goals and
task performance.

Hierarchy of needs theory - Maslow’s theory that arranged human needs in a hierarchical
order of importance. The most important needs appear at the bottom of the hierarchy.

Human relations movement - the movement concerned with aspects such as human needs,
attitudes, motives and relationships.
PYC1502/Unit 7: Organisational and work psychology/OER2022

Hygiene factors - refer to factors (such company policy, supervision, low salary, and job
insecurity) that lead to job satisfaction/dissatisfaction in the workplace.

Job satisfaction - is an evaluative state that expresses contentment with, and positive feelings
about one’s job.

Leadership - is the process whereby one individual influences other group members towards
the attainment of group or organisational goals.

Managing diversity - entails enabling people to perform to their maximum potential by changing
an organisation’s culture and infrastructure to allow people to be productive.

McClelland’s theory of needs - a theory that focuses on the needs for power, affiliation and
achievement as motivators for human behaviour.

Motivation - is a set of energetic forces that originate both within and outside an individual to
initiate behaviour and to determine the direction, intensity and duration thereof.

Motivation-hygiene theory - the theory that postulates that motivators and hygiene factors are
responsible for motivation in the work context.

Motivators - these are factors such as achievement, recognition, responsibility, advancement


and growth, that tend to improve job satisfaction.

Conflict (organisational) - is as a process which begins when one party perceives that another
party has negatively affected, or is about to negatively affect, something the first party cares about.

Organisational culture - is the internal consistent pattern of affirmations, confirmations and


limitations which lead people to act, judge and justify themselves according to sanctioned ways.

Organisational or work psychology - is an applied division of psychology concerned with the


study of human behaviour related to work, organisations and productivity.

Organisational politics - refer to actions not officially approved by an organisation taken to


influence others in order to meet one’s personal goals.

Organisational strategy - it outlines the organisation’s goals and the means for attaining those
goals.

Process theories - these are theories concerned with the mental (thinking) processes that
individuals engage in when choosing between different courses of action to satisfy their needs.

Scientific management - is the approach to organisational and work psychology that is


concerned with maximising efficiency and getting the highest possible production out of
employees.

Trait theories - a group of theories that looks at the traits of leaders as moderating variables in
determining leadership behaviour.
PYC1502/Unit 7: Organisational and work psychology/OER2022

Transactional leadership style - a leadership style whereby the leader guides or motivates the
followers in the direction of the established goal by clarifying role and task requirements.

Transformational leadership style - is defined in terms of how the leader affects followers, who
are intended to trust, admire and respect the leader.

Valuing diversity - refers to the awareness, recognition, understanding, and appreciation of


human differences.

Work ethics - is a multidimensional construct consisting of a constellation of attitudes and


beliefs pertaining to work behaviour.

Work values - are the desirable states, objects, goals, or behaviours, transcending specific
situations and applied as normative standards to judge and to choose among alternative modes
of behaviour.
PYC1502/Unit 7: Organisational and work psychology/OER2022

References

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