GUIDE

Module Name: ORGANISATIONAL

BEHAVIOUR

Course Code: IPY 26M2

Lecturers: Mr A. QOTOYI
Ms N MABUTYANA
Dr S.N NKANYUZA

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CHAPTER 1

THE NATURE OF ORGANIZATIONAL BEHAVIOUR

Organizational Behaviour (often abbreviated as OB) is a field of study that investigates the
impact that individuals, groups, and structure have on behavior within organizations for the
purpose of applying such knowledge towards improving an organization’s effectiveness.

The meaning of organizational behaviour

Organizational behavior is one of the most complex and perhaps least understood academic
elements of modern general management, but since it concerns the behavior of people within
organizations it is also one of the most central … its concern with individual and group patterns
of behavior makes it an essential element in dealing with the complex behavioral issues thrown
up in the modern business world.

Organizational behavior is concerned with the study of the behavior of people within an
organizational setting. It involves the understanding, prediction and control of human behavior.
Common definitions of organizational behavior (OB) are generally along the lines of: the study
and understanding of individual and group behavior, and patterns of structure in order to help
improve organizational performance and effectiveness.

It is important to emphasize that in most cases the term ‘organizational behaviour’ is, strictly, a
misnomer: rarely do all members of an organization, except perhaps very small organizations,
behave collectively in such a way as to represent the behavior of the organization as a whole. In
practice, we are referring to the behavior of individuals, or sections or groups of people, within
the organization.

Influences on behavior in organizations

These influences can be identified as – the individual, the group, the organization and the
environment.

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The individual – Organizations are made up of their individual members. The individual is a
central feature of organizational behavior and a necessary part of any behavioural situation –
whether acting in isolation or as part of a group.

The group – Groups exist in all organizations and are essential to their working and
performance. The organization is comprised of groups of people and almost everyone in an
organization will be a member of one or more groups. People in groups influence each other in
many ways, and groups may develop their own hierarchies and leaders.

The organization Individuals and groups interact within the structure of the formal organization.
Structure is created by management to establish relationships between individuals and groups, to
provide order and systems and to direct the efforts of the organization into goal-seeking
activities. It is through the formal structure that carry out their organizational activities in order
to achieve aims and objectives.

The environment – The organization functions as part of the broader external environment of
which it is a part. The environment affects the organization through, for example, technological
and scientific development, economic activity, social and cultural influences and governmental
actions. The effects of the operation of the organization within its environment are reflected in
terms of the management of opportunities and risks and the successful achievement of its aims
and objectives.

Contributing disciplines to the OB field

Organizational behavior is an applied behavioural science built upon contributions from a

number of behavioural disciplines. The predominant areas are psychology, sociology, social
psychology, anthropology, and political science.

Psychology – Psychology is the science that seeks to measure, explain, and sometimes change
the behavior of humans and other animals. Psychologists concern themselves with studying and
attempting to understand individual behavior.

Sociology – Whereas psychologists focus their attention on the individual, sociologists study the
social system in which individuals fill their roles. Sociology studies people in relation to their
fellow human beings. Specifically, sociologists have made their greatest contribution to OB

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through their study of group behavior in organizations, particularly formal and complex
organizations.

Social psychology – Social psychology is an area within psychology, blending concepts from
both psychology and sociology. It focuses on the influence of people on one another.

Anthropology – anthropology is the study of societies to learn about human beings and their
activities. Anthropologists’ work on cultures and environments, for instance, has helped us
understand differences in fundamental values, attitudes, and behavior between people in different
countries and within different organizations.

Political science – Political science studies the behavior of individuals and groups within a
political environment. Specific topics of concern here include structuring of conflict, allocation
of power, and how people manipulate power for individual self-interest.

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CHAPTER 2

ORGANIZATIONAL BEHAVIOUR IN A GLOBAL AND DIVERSE CONTEXT

Organizations are constantly subjected to forces for change, to which they have to respond in a
strategic way. These forces for change are either external or internal to the organization, and
they drive change processes in the organization.

Environmental influences

Organizations are constantly subjected to forces for change, to which they have to respond in a
strategic way. These forces for change are either external or internal to the organization, and
they drive the change processes in the organization. Organizations have to deal with these forces
strategically, and this will have an impact at various levels (individual, group and structural) of
the organization.

The first level is the global arena. Forces for change on this level operate globally, for example,
an increase in the oil price by OPEC affects countries all over the world.

The second level refers to the regional and the sub-regional arena. Forces for change on this
level are operative in a specific region (for example, Africa) or sub-region (for example,
Southern Africa), and are characteristic of that region or sub-region. Examples of such forces
are regional wars, drought or famine.

The third level refers to the national and the provincial arena of a country. Pertinent issues,
relevant to the specific country (for example, South Africa) or province (for example, Gauteng)
may influence organizations in specific ways. Issues on this level may refer to demographic
characteristics of the population, for instance education and unemployment levels.

The fourth level refers to internal forces for change. These forces come from within the
organization and manifest on the individual, the team, and the organizational levels.

Forces for change in the global arena

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The world is becoming one large market place, in which boundaries between countries are
becoming increasingly vague and permeable. This phenomenon is often referred to as
globalization. Owing to developments in electronic media, the Internet and information
technology (IT), it is possible (and becoming easier) to trade in different time zones around the
clock. More and more Southern African companies are listing on other stock exchanges to gain
better exposure in the international market. Unfortunately, the benefits of increased exposure
and trade are available mainly to highly skilled people in the upper levels of organizations, and
not to the unskilled and the unemployed.

Globalization is driven mainly by technological inventions. One of the consequences of

globalization is that a country’s economy is opened up to international competition.. Due to
increased international trade and competition, companies’ workforces and the nature of work are
also changing. Workforces are no longer homogeneous in nature, but are becoming increasingly
diverse. Managers are frequently sent to establish business operations in countries with customs
and cultures different from their own. This is referred to as international diversity. Here they
have to operate in different business contexts with ‘other’ economic and political realities.
Expatriate managers often have to deal with a workforce that is not only different in customs and
language, but also in work habits and work values.

The nature of work is also changing. Work becomes increasingly technology- and information
driven, and reliant on computer and information technology.

Forces for change in the regional arena

All over the world it is hard to avoid seeing the influence of multinational (also referred to as
“transnational”) organizations. These are organizations that maintain significant operations in
two or more countries simultaneously. The managers of multinationals are therefore faced with
diverse political systems, laws, and customs. Africa, and especially the Southern African region,
is confronted with complex and daunting challenges on social, political, and economics levels
that will have a direct impact on global participation.

Africa remains marginalized on the political level, ravaged by wars and ruled in some countries
by dictators. There is, however, a continued political commitment in the region by various
African leaders to work collectively towards political stability. They have put in place various

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policies, measures, and strategies to address this problem. Among the policy frameworks are
economic reforms, civil service reforms, broadening democratization processes, promotion of
good governance and increased accountability.

Forces for change in the national arena

Can the complexities and challenges facing South Africa, for example, be separated from
broader international developments? For South Africa to survive in the global arena, efforts will
be required from all its citizens, especially the stakeholders of organizations that deliver the
goods.

South Africa is a developing country, and therefore demographic trends have critical
implications for labour relations and the labour market.

Internal forces for change

The internal forces for change that are operative in an organization, are active at the individual,
the group, and the organizational levels.

Individual level

Contrary to what many people would like to believe, individuals are not alike – they differ in
many respects. Each person brings to the work situation his or her own unique personality,
experience, beliefs, values, attitudes, skills and abilities. These differences have a unique effect
on groups and organizations and on the way in which they operate.

Group level

Organizational groups or teams are constituted in different ways. Task and project teams allow
an organization to operate in a more flexible way and, as a consequence, an organization can be
more responsive to its business environment.

Groups can be more or less diverse (homogeneous or heterogeneous), and this may affect the
efficiency and effectiveness of the group processes such as decision making, leadership, problem
solving and conflict resolution and, consequently, the group’s ultimate performance.

Organizational level

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Many of the changes occurring at the organizational level have a rippling effect on the company.
These changes are normally triggered by changes in strategic intent or other forces for change.
Changes in organizational design, structure, and culture have a major effect on how companies
operate. These changes normally affect interpersonal relationships, authority relationships and,
ultimately, employee and customer attitudes and behavior. Employees may respond favorably
by becoming more committed to and engaged in their organization, and customers may be more

CHAPTER 3

BASIC MOTIVATION CONCEPTS.

Motivation can be defined as the forces that cause people to behave in certain ways. The student
who stays up all night to ensure that his or her semester paper is the best it can be, the
salesperson who works on Saturdays to get ahead, and the doctor who makes follow-up calls to
his or her patients to check on their conditions are all motivated. Of course, the student who
avoids his or her semester paper by spending the day at the bar, and the salesperson who goes
home early to escape a tedious sales call are also motivated – they are simply motivated to
achieve different types of things than the first three. From the manager’s viewpoint the objective
is to motivate people to behave in ways that are in the organization’s best interests.

What is motivation?

The relationship between the organization and its members is governed by what motivates them
to work and the fulfillment they derive from it. The manager needs to know how best to elicit
the co-operation of staff and direct their performance to achieving the goals and objectives of the
organization. The manager must understand the nature of human behavior and how best to
motivate staff so that they work willingly and effectively.

The study of motivation is concerned, basically, with why people behave in a certain way. The
basic underlying question is “why do people do what they do?” In general terms, motivation can
be described as the direction and persistence of action. It is concerned with why people choose a
particular course of action in preference to others, and why they continue with a chosen action,
often over a long period, and in the face of difficulties and problems.

There are four common characteristics which underlie the definition of motivation:

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* Motivation is typified as an individual phenomenon. Every person is unique and all the
major theories of motivation allow for this uniqueness to be demonstrated in one way or another.

* Motivation is described, usually, as intentional. Motivation is assumed to be under the

worker’s control, and behaviours that are influenced by motivation, such as effort expended, are
seen as choices of action.

* Motivation is multifaceted. The two factors of greatest importance are: (i) what gets people
activated (arousal); and (ii) the force of an individual to engage in desired behavior (direction or
choice of behavior).

* The purpose of motivational theories is to predict behavior. Motivation is not the behavior
itself, and it is not performance. Motivation concerns action, and the internal and external forces
which influence a person’s choice of action.

On the basis of these characteristics, we can define motivation as “the degree to which an
individual wants and chooses to engage in certain specified behaviours.

Early theories of motivation

Hierarchy of needs theory

The most well-known theory of motivation is Abraham Maslow’s hierarchy of needs. He

hypothesized that within every human being there exists a hierarchy of five needs. These needs
are:

# Physiological: Includes hunger, thirst, shelter, sexual, and other bodily needs.

# Safety: Includes security and protection from physical and emotional harm.

# Social: Includes affection, belongingness, acceptance, and friendship.

# Esteem: Includes internal esteem factors such as self-respect, autonomy, and achievement; and
external esteem factors such as status, recognition, and attention.

# Self-actualization: The drive to become what one is capable of becoming; includes growth,
achieving one’s potential, and self-fulfillment.

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Maslow separated the five needs into higher and lower orders. Physiological and safety needs
were described as lower-order needs and social, esteem, and self-actualization as higher-order
needs. The differentiation between the two orders was made on the premise that higher-order
needs are satisfied internally (within the person), whereas lower-order needs are predominantly
satisfied externally (by such things as pay, union contracts, and tenure). In fact, the natural
conclusion to be drawn from Maslow’s classification is that in times of economic prosperity,
almost all permanently employed workers have their lower-order needs substantially met. In
Africa where poverty is a serious cause for concern, one could draw the conclusion based on
Maslow’s theory that people who live in abject poverty will primarily be focused on their lower-
order needs (such as food and shelter).

Theory X and Theory Y

Douglas McGregor proposed two distinct views of human beings: one basically negative, labeled
Theory X, and the other basically positive, labeled Y. After viewing the way in which managers
dealt with employees, McGregor concluded that a manager’s view of the nature of human beings
is based on a certain grouping of assumptions and that he or she tends to mould his or her
behavior towards employees according to these assumptions.

Under Theory X, the four assumptions held by managers are:

(a) Employees inherently dislike work and, whenever possible, will attempt to
avoid it.
(b) Since employees dislike work, they must be coerced, controlled, or
threatened with punishment to achieve goals.
(c) Employees will avoid responsibilities and seek formal direction whenever
possible.
(d) Most workers place security above all other factors associated with work
and will display little ambition.

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In contrast to these negative views about the nature of human beings, McGregor listed the four
positive assumptions that he called Theory Y:

(a) Employees can view work as being as natural as rest or play.

(b) People will exercise self-direction and self-control if they are committed
to the objectives.
(c) The average person can learn to accept, even seek, responsibility.
(d) The ability to make innovative decisions is widely dispersed throughout
the population and is not necessarily the sole province of those in
management positions.

McGregor himself held to the belief that Theory Y assumptions were more valid than Theory X.
Therefore, he proposed such ideas as participative decision making, responsible and challenging
jobs, and good group relations as approaches that would maximize an employee’s job
motivation.

contemporary theories of motivation

ERG theory

Clayton Alderfer reworked Maslow’s needs hierarchy to align it more closely with the empirical
research. His revised needs hierarchy is labeled ERG theory.

Alderfer argues that there are three groups of core needs – Existence, Relatedness, and Growth –
hence, the label: ERG theory. The existence group is concerned with providing our basic
material existence requirements. They include the items that Maslow considered to be
physiological and safety needs.

The second group of needs are those of relatedness – the desire we have for maintaining
important interpersonal relationships. These social and status desires require interaction with
others if they are to be satisfied, and they align with Maslow’s social needs and the external
component of Maslow’s esteem needs. Finally, Alderfer isolates growth needs – an intrinsic

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desire for personal development. These include the intrinsic component from Maslow’s esteem
category and the characteristics included under self-actualization.

In contrast to Maslow’s theory, the ERG theory demonstrates that (1) more than one need may
be operative at the same time, and (2) if the gratification of a higher-level need is stifled, the
desire to satisfy a lower-level need increases.

Equity theory

One of the major variables of satisfaction in motivation is perceived equitable rewards. This
leads to consideration of equity theory of motivation.

Equity theory focuses on people’s feelings of how fairly they have been treated in
comparison with the treatment received by others. It is based on exchange theory. People
evaluate their social relationships in the same way as buying or selling an item. People expect
certain outcomes in exchange for certain contributions, or inputs.

Social relationships involve an exchange process. For example, a person may expect
promotion as an outcome of a high level contribution (input) in helping to achieve an important
organizational objective. People also compare their own position with that of others. They
determine the perceived equity of their own position. Their feelings about the equity of the
exchange are affected by the treatment they receive when compared with what happens to other
people.

Most exchanges involve a number of inputs and outcomes. According to equity theory, people
place a weighting on these various inputs and outcomes according to how they perceive their
importance. When the ratio of a person’s total outcomes to total inputs equals the perceived ratio
of other people’s total outcomes to total inputs there is equity.

When there is an unequal comparison of ratios the person experiences a sense of inequity. The
feeling of inequity might arise when an individual’s ratio of outcomes to inputs is either less
than, or greater than, that of other people.

Behaviour as a consequence of inequity:

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A feeling of inequity causes tension, which is an unpleasant experience. The presence of
inequity therefore motivates the person to remove or to reduce the level of tension and the
perceived inequity. The magnitude of perceived inequity determines the level of tension. The
level of tension created determines the strength of motivation. There are six broad types of
possible behavior as consequences of inequity:

(a) Changes to inputs: A person may increase or decrease the level of his or
her inputs, for example through the amount or quality of work,
absenteeism, or working additional hours without pay.
(b) Changes to outcomes: a person may attempt to change outcomes such as
pay, working conditions, status and recognition, without changes to inputs.
(c) Cognitive distortion of inputs and outcomes: In contrast to actual
changes, people may distort, cognitively, their inputs or outcomes to
achieve the same results. Although it is difficult for people to distort facts
about themselves, it is possible, within limits, to distort the utility of those
facts: for example, the belief about how hard they are really working, the
relevance of a particular qualification, or what they can or cannot obtain
with a given level of pay.
(d) Leaving the field: A person may try to find a new situation with a more
favorable balance, for example, by absenteeism, request for a transfer,
resigning from a job or from the organization altogether.
(e) Acting on others: A person may attempt to bring about changes in others,
for example to lower their inputs or accept greater outcomes. Or the
person may cognitively distort the inputs and outcomes of others.
Alternatively, a person may to force others to leave the field.
(f) Changing the object of comparison: This involves changing the reference
group with whom comparison is made. For example, where another
person with a previously similar outcome-input ratio receives greater
outcomes without any apparent increase in contribution, that other person
may be perceived as now belonging to a different level in the organization
structure. The comparison need not necessarily be made with people who

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 have the same inputs and outcomes. The important thing is a similar ratio
of outcomes to inputs.

Motivation: From concept to applications

• Management by objectives (MBO)

Management by objectives (MBO) emphasizes participatively set goals that
are tangible, verifiable, and measurable. It’s not a new idea. In fact, it was
proposed more than 45 years ago as a means of using goals to motivate people
rather than to control them.
MBO’s appeal undoubtedly lies in its emphasis on converting overall
organizational objectives into specific objectives for organizational units and
individual members. MBO operationalizes the concept of objectives by
devising a process by which objectives cascade down through the
organization. In MBO, the organization’s overall objectives are translated
into specific objectives for each succeeding level (that is, divisional,
departmental, and individual) in the organization. But because lower-unit
managers jointly participate in setting their own goals, MBO works from the
“bottom up” as well as from the “top down”. The result is a hierarchy of
objectives that links objectives at one level to those at the next level. And for
the individual employee, MBO provides specific personal performance
objectives.
There are four ingredients common to MBO programmes. These are goal
specificity, participative decision making, an explicit time period, and
performance feedback.

• Employee recognition programmes

Employee recognition programmes can take numerous forms. The best ones
use multiple sources and recognize both individual and group
accomplishments.
Consistent with reinforcement theory, rewarding a behavior with recognition
immediately following that behavior is likely to encourage its repetition.

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 Recognition can take many forms. A manager can personally congratulate an
employee in private for a good job. A manager can send a hand-written note
or an e-mail message acknowledging something positive that the employee
has done. For employees with a strong need for social acceptance, you can
publicly recognize accomplishments. And to enhance group cohesiveness and
motivation, a manager can celebrate team successes. The manager can use
meetings to recognize the contributions and achievements of successful work
teams.

• Employee involvement programmes

Employee involvement has become a convenient catchall term to cover a
variety of techniques. For instance, it encompasses such popular ideas as
employee participation or participative management, workplace democracy,
empowerment, and employee ownership.
Employee involvement can be defined as a participative process that uses the
entire capacity of employees and is designed to encourage increased
commitment to the organisation’s success. The underlying logic is that by
involving workers in those decisions that affect them and by increasing their
autonomy and control over their work lives, employees will become more
motivated, more committed to the organization, more productive, and more
satisfied with their jobs. Examples of employee involvement programmes are
participative management, representative participation, quality circles, and
employee stock ownership plans.

CHAPTER 4

GROUP BEHAVIOUR.

Groups are a pervasive part of modern life. All of us have been – and are – members of many
different groups. There are school groups, work groups, family groups, social groups, religious
groups. There are small groups and large groups, permanent groups and temporary groups,
formal groups and informal groups. Some groups are successful, some are not successful. Some

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groups bring out the best in their members, while others may bring out the worst. There are just
a few of the multitude of ways in which groups may be characterized.

One might think that since groups are so commonplace there would be a generally accepted
definition of the term group. Such is not the case, however. Indeed, there is a wide range of
perspectives from which to view, and thus define, a group. Many behavioural scientists, for
example, see a group in terms of perceptions. That is, people who perceive themselves to be a
group would, from this perspective, constitute a group. Some see a group in terms of
organizational characteristics. From this perspective, a group is an organized system of
individuals who are connected with one another. Still others may see groups in terms of
motivation or need satisfaction. From this perspective, a group is a collection of individuals
whose collective existence satisfies needs.

Each of these perspectives is legitimate. Each focuses on a different aspect of groups, and each
leads to a somewhat different definition of what constitutes a group.

Defining and classifying groups

A group is defined as two or more interacting and interdependent individuals, who get together
to achieve particular objectives. Groups can be either formal or informal.

By formal groups, we mean those defined by the organization’s structure, with designed work
assignments to establish tasks. In formal groups, the behavior of the group is stipulated by and
directed towards organizational goals. Process teams within the people management structure
are seen as formal teams. They are tasked with specific goals and objectives for their particular
process, that is, recruitment, industrial relations, organizational development, and so on.

In contrast, informal groups are alliances that are neither formally structured nor organizationally
determined. These groups are natural formations in the work environment that appear in
response to the need for social contact. An example of an informal group would be three
employees from different departments eating lunch together regularly.

It is possible to sub-classify groups as command, task, interest, or friendship groups. Command

and task groups are dictated by the formal organization, whereas interest and friendship groups
are informal alliances.

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A command group is determined by the organizational chart. It is composed of the individuals
who report directly to a given manager.

Task groups, also determined by the organization, represent those working together to complete
a job. People who may or may not be assigned to common command or task groups may
affiliate to attain a specific objective with which each is concerned. This is an interest group

Groups often develop because the individual members have one or more common characteristics.
We call these formations friendship groups.

Why do people form or join groups?

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. That is, in addition to
conveying status to those outside the group, membership can also give increased feelings of
worth to the group members themselves.

Affiliation – Groups can fulfill social needs. People enjoy the regular interaction as members of
a group. For many people, these on-the-job interactions are their primary source for fulfilling
their needs for affiliation.

Power – What cannot be achieved individually often becomes possible through group action.
There is power (strength) 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 complete a job.
In such instances, management will rely on the use of a formal group.

Stages of group development

Groups generally go through a standardized sequence in their evolution.

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The five-stage group development model

The five-stage group development model characterizes all groups as proceeding through five
distinct stages: forming, storming, norming, performing, and adjourning.

The first stage, forming, is characterized by a great deal of uncertainty about the group’s purpose,
structure, and leadership. This stage is complete when members have begun to think of
themselves as part of a group.

The storming is one of intragroup conflict. Members accept the existence of the group, but there
is resistance to the constraints that the group imposes on individuality. Furthermore, there is
conflict over who will control the group. When this stage is completed, there will be a relatively
clear hierarchy of leadership within the group.

The third stage is one in which close relationships develop and the group demonstrates
cohesiveness. There is now a strong sense of group identity and camaraderie. This norming
stage is complete when the group structure solidifies and the group has assimilated a common set
of expectations of what defines correct member behavior.

The fourth stage is 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 their development. However, for
temporary committees, teams, task forces, and similar groups that have a limited task to perform,
there is an adjourning stage. In this stage, the group prepares for its disbandment. High task
performance is no longer the group’s top priority. Instead, attention is directed towards
wrapping up activities.

Group structure

A working group is not an unorganized mob. It has a clear structure that shapes the behavior of
members and explains and predicts individual and group behavior. Structural variables include
formal leadership, roles, norms, conformity, group status, group size, and composition.

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Formal leadership – Almost every work group has a formal leader. The leader plays an
important role in the group’s success.

Roles – Group members have distinctive roles in their groups. Roles refer to a set of expected
behavior patterns attributed to someone occupying a given position in the group.

Norms – Norms exist in every life situation: not talking loudly in a cinema, employees not
criticizing their bosses in public, families supporting one another. All groups have established
norms, meaning standards of behavior that are shared by the group’s members, and which
provide guidance of what to do or not to do in certain circumstances.

Conformity – Members of groups normally desire acceptance by the group. Because of the
desire for acceptance, the individual is susceptible to conforming to the group’s norms.

Status – Status is a socially defined position or rank given to groups or group members by
others. Many aspects of life and organizational life are ruled by status – there seems to be no
such thing as a statusless or classless society. Status is an important variable in understanding
human behavior, because it is a significant motivator and there are major behavioural
consequences when individuals perceive a disparity between what they believe their status to be
and what others perceive it to be.

Size – Group size affects the group’s overall behavior and depends on what variables play a role.
Smaller groups tend to be faster at completing tasks than larger ones. However, if the group is
engaged in problem-solving, large groups consistently get better results than their smaller
counterparts.

Composition – Most group activities require a variety of skills and knowledge. Given this
requirement, it would be reasonable to conclude that heterogeneous groups (those composed of
dissimilar individuals) would be more likely to have diverse abilities and information and should
be more effective.

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CHAPTER 5

COMMUNICATION.

Communicating, like the process of decision making, pervades everything that all organizational
members – particularly managers - do. The managerial functions of planning, organizing,
leading, and controlling all involve communicative activity. In fact, communication is an
absolute essential element in all organizational processes.

Communication is the glue that holds organizations together. Communication assists

organizational members to accomplish both individual and organizational goals, implement and
respond to organizational change, coordinate organizational activities, and engage in virtually all
organizationally relevant behaviours.

The importance of communication

No group can exist without communication: the transference of meaning among its members. It
is only through transmitting meaning from one person to another that information and ideas can
be conveyed. Communication, however, is more than merely imparting meaning. It must also
be understood. In a group where one member speaks only Zulu and the others cannot speak
Zulu, the individual speaking Zulu will not be fully understood. Therefore, communication must
include both the transference and the understanding of meaning.

An idea, no matter how great, is useless until it is transmitted and understood by others. Perfect
communication, if there were such thing, would exist when a thought or an idea was transmitted
so that the mental picture perceived by the receiver was exactly the same as that envisioned by
the sender.

Functions of communication

Communication serves four major functions within a group or organization: control, motivation,
emotional expression, and information.

Communication acts to control member behavior in several ways. Organizations have authority
hierarchies and formal guidelines that employees are required to follow. When employees, for
instance, are required to first communicate any job-related grievance to their immediate boss, to

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follow their job description, or to comply with company policies, communication is performing a
control function. But informal communication also controls behavior. When work groups tease
or harass a member who produces too much (and makes the rest of the group look bad), they are
informally communicating with, and controlling, the member’s behavior.

Communication fosters motivation by clarifying to employees what is to be done, how well they
are doing, and what can be done to improve performance if it’s below par.

For many employees, their work group is a primary source for social interaction. The
communication that takes place within the group is a fundamental mechanism by which
members show their frustrations and feelings of satisfaction. Communication, therefore,
provides a release for the emotional expression of feelings and for fulfillment of social needs.

The final function that communication performs relates to its role in facilitating decision making.
It provides the information that individuals and groups need to make decisions by transmitting
the data to identify and evaluate alternative choices.

The communication process

Communication can be thought of as a process or flow. Before communication can take place, a
purpose, expressed as a message to be conveyed, is needed. It passes between a source (the
sender) and a receiver. The message is encoded (converted to symbolic form) and is passed by
way of some medium (channel) to the receiver, who retranslates (decodes) the message initiated
by the sender. The result is transference of meaning from one person to another.

The communication process model is made up of seven parts: (1) the communication source, (2)
encoding, (3) the message, (4) the channel, (5) decoding, (6) the receiver, and (7) feedback.

The source initiates a message by encoding a thought. Four conditions have been described that
affect the encoded message: skill, attitudes, knowledge, and the socio-cultural system.

The message is the actual physical product from the source encoding. When we speak, the
speech is the message. When we write, the writing is the message. When we paint, the picture is
the message. When we gesture, the movements of our arms, the expression on our face, are the
message. Our message is affected by the code or group of symbols we use to transfer meaning,

21
the content of the message itself, and the decisions that we make in selecting and arranging both
codes and content.

The channel is the medium through which the message travels. It is selected by the source, who
must determine which channel is formal and which one is informal. Formal channels are
established by the organization and transmit messages that pertain to the job-related activities of
members. They traditionally follow the authority network within the organization. Other forms
of messages, such as personal or social, follow the informal channels in the organization.

The receiver is the object to whom the message is directed. But before the message can be
received, the symbols in it must be translated into a form that can be understood by the receiver.
This is the decoding of the message. Just as the encoder was limited by his or her skills,
attitudes, knowledge, and socio-cultural system, the receiver is equally restricted. Just as the
source must be skilful in writing or speaking, the receiver must be skilful in reading or listening,
and both must be able to reason. One’s knowledge, attitudes, and cultural background influences
one’s ability to receive, just as they do the ability to send.

The final link in the communication process is a feedback loop. If a communication source
decodes the message that he encodes, if the message is put back into his system, we have
feedback. Feedback is the check on how successful we have been in transferring our messages
as originally intended. It determines whether or not understanding has been achieved.

Barriers to effective communication

There are a number of interpersonal and intrapersonal barriers that help to explain why the
message that is decoded by a receiver is often different to that which the sender intended. The
following reviews some of the more prominent barriers to effective communication.

Filtering – Filtering refers to a sender manipulating information so that it will be seen more
favorably by the receiver.

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Selective perception – In selective perception the receiver selectively see and hear based on
their needs, motivations, experience, background, and other personal characteristics. Receivers
also project their interests and expectations into communications as they decode them.

Information overload – Individuals have a finite capacity for processing data. For instance,
research indicates that most of us have difficulty working with more than about seven pieces of
information. When the information we have to work with exceeds our processing capacity, the
result is information overload.

Defensiveness – When people feel that they are being threatened, they tend to react in ways that
reduce their ability to achieve mutual understanding. That is, they become defensive – engaging
in behaviors such as verbally attacking others, making sarcastic remarks, being overly
judgmental, and questioning others’ motives.

Language – Words mean different things to different people. The meaning of words are not in
the words; they are in us. Age, education, and cultural background are three of the more obvious
variables that influence the language a person uses and the definitions he or she gives to words.

Illiteracy – A challenge that is particularly relevant to South Africa, and which has an enormous
impact on communication is the problem of illiteracy. Due to imbalances of the past, a large
number of black South Africans are illiterate and are unable to understand any form of written
communication, for example, company policy documents, employment contracts, pay slips, and
memorandums. Because much of the communication in South Africa organizations is in a
written form, it can lead to people feeling excluded and frustrated.

Current issues in communication

There are four current issues related to communication in organizations. Why do men and
women often have difficulty communicating with each other? What are the implications of the
‘politically correct’ movement on communication in organizations? How can individuals
improve their cross-cultural communications? And how is the electronics changing the way
people communicate with each other in organizations?

Communication barriers between men and women

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According to research men use talk to emphasize status, while women use talk to create
connection. This conclusion, of course, does not apply to every man and woman.

Communication is a continual balancing act, juggling the conflicting needs for intimacy and
independence. Intimacy emphasizes closeness and commonalities. Independence emphasizes
separateness and differences. Women speak and hear a language of connection and intimacy;
men speak and hear a language of status, power, and independence. So, for many men,
conversations are primarily a means to preserve independence and maintain status in a
hierarchical social order. For many women, conversations are negotiations for closeness in
which people try to seek and give confirmation and support.

Men frequently complain that women talk on and on about their problems. Women criticize men
for not listening. Men are often more direct than women in conversation. Women tend to be less
boastful than men. Men often criticize women for seeing to apologize all the time.

“Politically correct” communication

What words do you use to describe a colleague who is wheelchair bound? What terms do you
use in addressing a female customer? How do you communicate with a brand-new client who is
not like you? The right answers can mean the difference between losing a client, an employee, a
lawsuit, a harassment claim, or a job.

Most of us are aware of how our vocabulary has been modified to reflect political correctness.
For instance, most of us have cleansed the words handicapped, blind, and elderly from our
vocabulary – and replaced them with terms like physically challenged, visually impaired, and
senior. We must be sensitive to others’ feelings. Certain words can and do stereotype,
intimidate, and insult individuals.

Cross-cultural communication

Effective communication is difficult under the best of conditions. Cross-cultural factors clearly
create the potential for increased communication problems. In some cases, a gesture that is well
understood and accepted in one culture can be meaningless or lewd in another. For example,
sticking one’s tongue out is regarded as a friendly greeting in Tibet. The same gesture in South
Africa would be considered very rude.

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Cultural barriers

There are four specific problems related to language difficulties in cross-cultural

communications:

First, there are barriers caused by semantics. Words mean different things to different people.
Some words don’t translate between cultures.

Second, there are barriers caused by word connotations. Words imply different things in
different languages.

Third are barriers caused by tone differences? In some cultures, language is formal; in others
it’s informal. In some cultures, the tone changes depending on the context: people speak
differently at home, in social situations, and at work.

Fourth, there are barriers caused by differences among perceptions. People who speak different
languages actually view the world in different ways

Electronic communications

Until the last 15 to 20 years, there very few technological breakthroughs that significantly
affected organizational communications. Early in this century, the telephone dramatically
reduced personal, face-to-face communication. The popularization of the photocopy machine in
the late 1960s was the death knell for carbon paper and made the copying of documents faster
and easier. But beginning in the early 1980s, we’ve been subjected to an onslaught of new
electronic technologies that are largely reshaping the way we communicate in organizations.
These include pagers, facsimile machines, video conferencing, electronic meetings, e-mail,
cellular phones, voice messaging, etc.

Electronic communications no longer make it necessary for you to be at your workstation or desk
to be ‘available’.

Organizational boundaries have become less relevant as a result of electronic communications.

Electronic communications have revolutionirised both the ability to access other people and to
reach them almost instantaneously.

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Improving communication skills

Use multiple channels – When you use multiple channels to convey a message, you improve the
likelihood of clarity for two reasons. First, you may stimulate a number of the receiver’s senses.
A letter and a phone call, for example, provide sight and sound. Second, people have different
abilities to absorb information. Some understand best when a message is in writing. For
instance, they can read and re-read a memo or fax, at their own pace, to fully absorb the intention
of the sender.

Taylor the message to the audience – Different people in the organization have different
information needs. What is important to supervisors may not be so to middle managers. What is
interesting to someone in product planning may be irrelevant to someone in accounting. Jargon
used with one group may be confusing to others.

Empathize with others – In verbal communications, you need to empathize with your listener.
You need to put yourself in their shoes. You need to be sensitive to their needs, perceptions,
attitudes, and emotions. How are they likely to decode the message? When you put yourself in
the other person’s position or situation, you’re more likely to see things from their perspectives –
and then to choose the best communication channel and the proper words to use.

Remember the value of face-to-face communication when dealing with change – In times of
uncertainty and change – which increasingly characterizes today’s work environment –
employees have lots of fears and concerns. Is their job in jeopardy? Will recently announced
restructuring efforts require them to learn new skills or change work groups? Since the
maximum amount of information can be transmitted through face-to-face conversation, this
channel is preferred when messages convey information that is likely to be seen as ambiguous,
threatening, or implying significant change.

Practice active listening – Too many people take listening skills for granted. They confuse
hearing with listening. What’s the difference? Hearing is merely picking up sound vibrations.
Listening is making sense out of what we hear. That is, listening requires paying attention,
interpreting, and remembering sound stimuli. The following behaviour are associated with

26
active listening skills: make eye contact, exhibit affirmative head nods and appropriate facial
expressions, avoid distracting actions or gestures, ask questions, paraphrase, avoid interrupting
the speaker, and don’t over talk.

Match your words and actions – When non-verbal messages contradict official messages as
conveyed in formal communications, people become confused and the official message loses its
focus. Moreover, for managers, inconsistencies can undermine credibility. So make sure that
your verbal and non-verbal messages are aligned.

Use the grapevine – The grapevine is not going away. Astute employees and effective
managers accept its existence and use it. Employees listen to grapevine messages to enhance
formal messages issued by management. And effective managers use the grapevine for
identifying issues that employees consider important and that are likely to create anxiety. The
grapevine also can serve as both a filter and feedback mechanism by highlighting issues that
employees consider relevant and by consciously planting messages that managers want
employees to hear.

Use feedback – Effective communication is a two-way process between sender and receiver.
However, too often, it’s only one way. This is especially true in downward communications. A
top management directive, for instance, is issued in a formal memo. It’s then assumed that
everyone in the organization has read it and that it’s fully understood. In such instances, there
needs to be a mechanism that allows executives to know that the message has been received and
understood.

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CHAPTER 6

LEADERSHIP AND TRUST.

In every group you have belonged – family, sports, social, study, and work – one person
typically was more influential than the others and was probably called a leader. Leaders are
important in a variety of organizational settings. Indeed, organizations would be less efficient
without leaders and, in extreme cases, would be unable to accomplish purposeful goals. For
these and similar reasons, theorists, researchers, and practitioners, have centered their attention
on leadership.

Although leadership is important and has been studied by behavioral scientists for decades, it
remains something of a mystery. Even after thousands of studies, the experts still lack consensus
on exactly what leadership is and how it should be analyzed.

When we talk about the concept of leadership we need to take into consideration five points

(1) Leadership is not the same as management,

(2) Leadership is a complex concept,

(3) Leadership attributes can be developed through experience, training, and analysis,

(4) Leadership effectiveness depends primarily on the fit between the leader, follows, and
situations, and

(5) Leadership is substituted for in various settings and situations – that is, in some situations,
leadership isn’t a significant influence.

What is leadership?

There are many ways of looking at leadership and many interpretations of its meaning.
Leadership might be interpreted in simple terms, such as ‘getting others to follow’ or ‘getting
people to do things willingly’, or interpreted more specifically, for example, as ‘the use of
authority in decision-making’. It may be exercised as an attribute of position, or because of
personal knowledge or wisdom. Leadership might be based on a function of personality, or it

28
can be seen as a behavioural category. It may also be viewed in terms of the role of the leaders
and their ability to achieve effective performance from others.

• Leadership is the ability to influence a group towards the achievement of

goals.
• Leadership involves the process by which one individual influences other
individuals towards the attainment of personal or organizational goals.
• Leadership is also a process of influencing the activities of a group towards
goal setting and goal achievement

Approaches to leadership

The trait approach

The trait approach proposes that leaders are born with innate characteristics allowing them to
wield influence over others. This approach assumes that there are a finite number of individual
traits in effective leaders. According to Invancevich and Matteson (1993) these traits are:
intellectual traits, personality traits and physical traits.

Intelligence traits refer to the dimensions of intelligence associated with effective leadership, for
example, decisiveness, judgmental ability, knowledge and verbal abilities.

Personal traits have the following five dimensions, which correlate with the five-factor theory of
personality: extraversion (a personality dimension describing someone who is sociable, talkative
and assertive), agreeableness (good-nurtured, cooperative and trusting), emotional stability
(calm, enthusiastic, secure), conscientiousness (extent to which an individual is careful,
thorough, responsible, achievement-oriented and persevering), and openness (extent to which an
individual is imaginative, cultured, curious, original, broadminded and artistically sensitive)

Physical traits that may influence effective leadership include age, height, weight and
appearance, but research in this respect has been contradictory.

Behavioural theories

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According to the behavioural approach to leadership, successful leadership depends mainly on
adopting the right behavior, and such behavior can be learned. Regarding leader behavior, a
distinction can be made between two specific leadership styles, that is, job-centred and
employee-centred. The difference between these two styles can be found in the level of
supervision and participation. A job-centred leader practices close supervision (more autocratic
behavior) and uses specified procedures so that subordinates can perform their tasks, while
delegating is exercised regarding decision-making in the case of the employee-centred
(democratic leader)

Situational theories

Any approach to leadership focusing on identifying a style of behavior or a mix of traits that are
effective in all situations may be thought of as a “universalist” theory. Such approaches suggest
that effective leadership depends on the nature of the leadership situation.

Contingency theories

Contingency theories propose that effective group performance depends upon the proper match
between the leader’s style and the degree to which the situation gives control to the leader.

Neocharismatic theories

These theories have three common themes. Firstly, they stress symbolic and emotionally
appealing leader behaviours. Secondly, they attempt to explain how certain leaders are able to
achieve extraordinary levels of follower commitment. And thirdly, they place no emphasis on
theoretical complexity, but look at leadership more in the way that is average “person on the
street” today views the subject.

Contemporary issues in leadership

• Emotional intelligence and leadership

Emotional intelligence has shown to be positively related to job performance at all levels. But it
appears to be especially relevant in jobs that demand a high degree of social interaction. And of
course, that is what leadership is all about. Great leaders demonstrate their emotional

30
intelligence by exhibiting all five of its key components: self-awareness (exhibited by self-
confident, realistic self-assessment and a self-deprecating sense of Humour), self-management
(exhibited by trustworthiness and integrity, comfort with ambiguity and openness to change),
self-motivation (exhibited by a strong drive to achieve, is optimistic and has a high
organizational commitment), empathy (exhibited by expertise in building and retaining talent,
cross-cultural sensitivity and service to clients and customers), and social skills (exhibited by the
ability to lead change, is persuasive and has expertise in building and leading teams).

Team leadership

Leadership is increasingly taking place within a team context. As teams grow in popularity, the
role of the leader in guiding team members takes on greater importance. If we look closer to
home, we will find that the notion of sustainability and the characteristics of good corporate
citizenship can be found within the concept of Ubuntu- African humanism which is generally
regarded as the foundation of sound human relations in African societies. Ubuntu as a concept
relates to elements of team leadership. The concept of Ubuntu is even more valuable in the
context of the transformation that needs to occur in South Africa. This transformation process
should be underpinned by supportiveness, cooperation and solidarity as some of the values that
underpin African society.

The role of the team leader is different from the traditional leadership role performed by first-line
supervisors.

The challenge for most managers is to learn how to become an effective team leader. They have
to learn skills such as patience to share information, to trust others, to give up authority and to
understand when to intervene. Effective team leaders have mastered the difficult balancing act
of knowing when to leave their teams alone and when to intercede. New team leaders may try to
retain too much control at a time when team members need more autonomy, or they may
abandon their teams at times when the teams need support and help.

Team leaders are liaisons with external constituencies. These include upper management, other
internal teams, customers, and suppliers. The leader represents the team to other constituencies,
secures needed resources, clarifies others’ expectations of the team, gathers information from the
outside and shares this information with team members.

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Secondly, team leaders are troubleshooters. When the team has problems and asks for
assistance, team leaders sit in on meetings and help to resolve the problems. This rarely relates
to technical or operational issues because the team members know more about the tasks than
does the team leader. The leader is most likely to contribute by asking penetrating questions,
helping the team talk through problems, and by getting needed resources from external
constituencies.

Thirdly, team leaders are conflict managers. When disagreements surface, they help to process
the conflict. What is the source of the conflict? Who is involved? What are the issues? What
resolution options are available? What are the advantages and disadvantages of each? By
getting team members to address questions such as these, the leader minimizes the disruptive
aspects of intrteam conflicts.

Finally, team leaders are coaches. They clarify expectations and roles, teach, offer support,
cheerlead, and do whatever else is necessary to help team members improve their work
performance.

Moral leadership

In South Africa business ethics are causing great concern considering our history. Reports in the
1990s of corruption, poor social responsibility regarding issues such as AIDS, white collar crime,
and poor ethical standards has become a regular occurrence. South African companies and the
state are losing millions of rands through crimes like theft, fraud, and corruption. Ethics touches
on leadership at a number of junctures. For instance, transformational leaders have been
described by one authority as fostering moral virtue when they tried to change the attitudes and
behaviour of followers. Charisma, too, has an ethical component. Unethical leaders are more
likely to use their charisma to enhance power over followers, directed towards self-serving ends.
Ethical leaders are considered to use their charisma in a socially constructive way to serve others.
There is also the issue of abuse of power by leaders, for example, when they give themselves
large salaries and bonuses while, at the same time, they seek to cut costs by laying off long-time
employees.

Cross-cultural leadership

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Effective leaders don’t use a single style. They adjust their style according to the situation.
National culture certainly is an important situational factor determining which leadership style
will be most effective.

National culture affects leadership style by way of the follower. Leaders cannot choose their
styles at will. They are constrained by the cultural conditions that their followers have come to
expect.

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CHAPTER 7

POWER AND POLITICS.

Power is a pervasive part of the fabric of organizational life. Managers and non-managers use
power. They manipulate power to accomplish goals, and in many cases, to strengthen their own
positions. A person’s success or failure in using or reacting to power is determined largely by
understanding power, knowing how and when to use it, and being able to anticipate its probable
effects.

A concept closely related to power in organizational settings is politics, or political behavior.

Organizational politics can be defined as activities carried out by people to acquire, enhance, and
use power and other resources to obtain their preferred outcomes in a situation where there is
uncertainty or disagreement. Thus, political behavior is the general means by which people
attempt to obtain and use power. Put simply, the goal of such behavior is to get one’s own way
about things.

Definition of power

Power refers to the capacity that A has to influence the behavior of B, so that B acts in
accordance with A’s wishes.

This definition implies a potential that need not be actualized to be effective and a dependency
relationship. Power may exist but not be used. It is, therefore, a capacity or potential. One can
have power but not impose it. Probably the most important aspect of power is that it is a
function of dependency.

Bases of power

Where does power come from? What is it that gives an individual or a group influence over
others?

• Coercive power

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 Coercive power can be defined as being dependent on fear. One reacts to this
power out of fear of the negative results that might occur if one failed to
comply.

• Legitimate power
In formal groups and organizations, the most frequent access to one or more
of the power base is one’s structural position. This is called legitimate power.
It represents the power a person receives as a result of his or her position in
the formal hierarchy of an organization.

• Expert power
Expert power is influence wielded as a result of expertise, special skill, or
knowledge. Expertise has become one of the most powerful sources of
influence as the world has become more technologically oriented.

• Reward power
The opposite of coercive power is reward power. People comply with the
wishes or directives of another because doing so produces positive benefits.

• Referent power
Referent power’s base is identification with a person who has desirable
resources or personal traits. If I admire and identify with you, you can
exercise power over me because I want to please you.
Referent power develops out of admiration of another and a desire to be like
that person. In a sense, then, it is a lot like charisma. If you admire someone
to the point of modeling your behavior and attitudes after him or her, this
person possesses referent power over you. Referent power explains why
celebrities are paid millions of rands to endorse products in commercials.

• Information power

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 People possess information power if they have access to information that
other persons regard as valuable or significant. By controlling the information
or the accessibility to this information, these people create some form of
dependability by positioning themselves centrality or in an important linking-
pin function.

• Connection power
In the case of connection power individuals have direct access to people in
higher positions in the organizational hierarchy or alternatively have access to
people in powerful political positions outside the organization.

Dependency: the key to power

The most important aspect of power is that it a function of dependence. Also related to
dependence, is the avoidance of uncertainty. Thus, being dependent on someone also removes a
lot of uncertainty in important aspects.

Dependency is increased when the resources you control are important, scarce, and non-
substitutable.

Power tactics

Power tactics help us to learn how people translate their power bases into specific actions. There
are seven tactical dimensions or strategies:

* Reason: Use of facts and data to make a logical or rational presentation of ideas.

* Friendliness: Use of flattery, creation of goodwill, acting humble, and being friendly prior to
making a request.

* Coalition: Getting the support of other people in the organization to back up the request.

36
* Bargaining: Use of negotiation through the exchange of benefits or favours.

* Assertiveness: Use of a direct and forceful approach such as demanding compliance with
requests, repeating reminders, ordering individuals to do what is asked, and pointing out that
rules require compliance.

* Higher authority: Gaining the support of higher levels in the organization to back up requests.

* Sanctions: Use of organizationally-derived rewards and punishments such as preventing or

promising a salary increase, threatening to give an unsatisfactory performance evaluation, or
withholding a promotion.

Politics: power in action

When people get together in groups, power will be exerted. People want to carve out a
nichefrom which to exert influence, to earn awards, and to advance their careers. When
employees in organizations convert their power into action, we describe them as being engaged
in politics. Those with good political skills have the ability to use their bases of power
effectively.

Political behavior in organizations can be defined as those activities that are not required as
part of one’s formal role in the organization, but that influence, or attempt to influence, the
distribution of advantages and disadvantages within the organization.

Politics is a fact of life in organizations. People who ignore this fact of life do so at their own
peril. But why, you may wonder, must politics exist? Isn’t it possible for an organization to be
politics free? It’s possible, but unlikely.

Organisations are made up of individuals and groups with different values, goals, and interests.
This sets up the potential for conflict over resources.

Resources in organizations are also limited, which often turns potential conflict into
real conflict

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CHAPTER 8

CONFLICT AND NEGOTIATION.

For any organization to perform effectively, interdependent individuals and groups must
establish working relationships across organizational boundaries, between individuals, and
among groups. Individuals or groups may depend on one another for information, assistance, or
coordinated action. But the fact is that they are interdependent. Such interdependence may
foster cooperation or conflict.

The focus of this section is on conflict that occurs between groups in organizations. Intergroup
problems are not the only type of conflict that can exist in organizations. Conflict between
individuals, however, usually can be more easily resolved through existing mechanisms.
Troublesome employees can be counseled, transferred, terminated, given different work
assignments or schedules, or a variety of other alternatives.

Negotiations are a fact of life. Whether they take place between leaders of superpowers in the
context of arms control deliberations, attorneys in the process of plea-bargaining for their clients,
car buyer and salesperson, supervisor and surbodinate, or parent and child, we are all affected
everyday by negotiations.

Definition of conflict

Conflict can be defined as a process that begins when one party perceives that another party has
negatively affected or is about to negatively affect, something that the first party cares about.

Transitions in conflict thought

It is appropriate to say that there has been “conflict” over the role of conflict in groups and
organizations. One school of thought has argued that conflict must be avoided. – that it indicates
a malfunction within the group. We call this the traditional view Another school of thought, the
human relations view, argues that conflict is a natural and inevitable outcome in any group and
that it need not be evil, but rather has the potential to be a positive force in determining group
performance. The third, and most recent perspective, proposes not only that conflict can be a

38
positive force in a group but explicitly argues that some conflict is necessary for a group to
perform effectively. We label this third school the interactionist approach.

The traditional view

This approach assumed that all conflict was bad. Conflict was viewed negatively, and it was
used synonymously with terms such as violence, destruction and irrationality to reinforce its
negative connotations. Conflict, by definition, was harmful and had to be avoided.

The human relations view

The human relations position argues that conflict was a natural occurrence in all groups and
organizations. Since conflict was inevitable, the human relations school advocated acceptance of
conflict. Proponents rationalized its existence: It cannot be eliminated, and there are even times
when conflict may benefit a group’s performance.

The interactionist view

While the human relations approach accepts conflict, the interactionist approach encourages
conflict on the grounds that a harmonious, peaceful, and cooperative group is prone to becoming
static, apathetic, and non-respobnsive to needs for change and innovation. The major
contribution of the interactionist approach, therefore, is encouraging group leaders to maintain an
ongoing minimum level of conflict – enough to keep the group viable, self-critical, and creative.

12.1 Functional vs. dysfunctional conflict

The interactionist view does not propose that all conflicts are good. Rather, some conflicts
support the goals of the group and improve its performance, these are functional, constructive
forms of conflict. In addition, there are conflicts that hinder group performance; these are
dysfunctional or destructive forms of conflict.

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The conflict process

The conflict process can be seen as comprising five stages: potential opposition or
incompatibility, cognition and personalization, intentions, behavior, and outcomes.

Stage 1: Potential opposition or incompatibility

The first step in the conflict process is the presence of conditions that create opportunities for
conflict. They need not lead directly to conflict.

Stage 2: Cognition and personalization

In this stage the potential for opposition or incompatibility becomes actualized. This condition
can only lead to conflict when one or more of the parties are affected by, and aware of, the
conflict. However, because a conflict is perceived it does not mean that it is personalized.

Stage 3: Intentions

Intentions intervene between people’s perceptions and emotions and their overt behaviours.
These intentions are decisions to act in a given way.

Basically, there are five conflict-handling intentions that can be identified: competing (assertive
and uncooperative), collaborating (assertive and cooperative), avoiding (unassertive and
uncooperative), accommodating (unassertive and cooperative), and compromising (midrange
between assertiveness and cooperativeness).

Stage 4: Behaviour

During this stage conflicts become visible. The behavior stage includes the statements, actions,
and reactions of the conflicting parties. These conflict behaviours are usually overt attempts to
implement each party’s intentions.

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Stage 5: Outcomes

During this stage, the action-reaction interplay between the conflicting parties results in
consequences. These outcomes may be functional in that the conflict results in an improvement
in the group’s performance, or dysfunctional in that it hinders group performance.

Negotiation

Negotiation can be defined as a process in which two or more parties exchange goods or services
and attempt to agree upon the exchange rate for them.

Bargaining strategies

There are two general approaches to negotiation – distributive bargaining and integrative
bargaining.

Distributive bargaining

Probably the most widely cited example of distributive bargaining is in labour-management

negotiations over wages. Typically, labour’s representatives come to the bargaining table
determined to get as much money as possible out of management. Since every cent more that
labour negotiates increases management’s costs, each party bargains aggressively and treats the
other as an opponent who must be defeated.

Integrative bargaining

In contrast to distributive bargaining, integrative bargaining operates under the assumption that
there are one or more settlements that can create a win-win solution. Integrative bargaining
builds long-term relationships and facilitates working together in the future.

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The negotiation process

The negotiation process consists of five steps: preparation and planning, definition of ground
rules, clarification and justification, bargaining and problem-solving, and closure and
implementation.

# Preparation and planning

Before you start negotiating, you need to do your homework. What is the nature of the conflict?
What’s the history leading up to these negotiations? Who is involved and what are their
perceptions of the conflict? What do you want from the negotiations? What are your goals?

# Definition of ground rules

Once you have done your planning and developed a strategy, you are ready to begin defining the
ground rules and procedures with the other party over the negotiation itself. Who will do the
negotiating? Where will it take place? What time constraints, if any, will apply? To what issues
will negotiation be restricted? Will there be a specific procedure to follow if an impasse is
reached? During this phase, the parties will also exchange their initial proposals or demands.

# Clarification and justification

When initial positions have been exchanged, both you and the other party will explain, amplify,
clarify, bolster and justify your original demands. This needn’t be confrontational. Rather, it is
an opportunity for educating and informing each other on the issues, why they are important, and
how each arrived at their initial demands. This is the point where you might want to provide the
other party with any documentation that helps to support your position.

# Bargaining and problem solving

The essence of the negotiation process is the actual give-and-take in trying to come to an
agreement. Both parties will undoubtedly need to make concessions.

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# Closure and implementation

The final step in the negotiation process is formalizing the agreement that has been worked out
and developing any procedures necessary for implementation and monitoring. For major
negotiations – which would include everything from labour-management negotiations, to
bargaining over lease terms, to negotiating a job offer for a senior management position – this
will require hammering out the specifics in a formal contract. However, in most cases closure of
the negotiation process is nothing more than a formal handshake.

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CHAPTER 9

ORGANIZATIONAL CULTURE.

When a person moves from one organization to another, or even from one department to another
in the same organization, he or she senses and experiences differences between the
environments. Attempting to adjust to these different environments involves learning new
values, processing information in new ways, and working within an established set of norms,
customs and rituals. The adaptation to new environments is becoming a common occurrence and
is likely to remain so for some time. Although adaptation is difficult, it can be better understood
by learning about organizational culture

What is organizational culture?

Organisational culture refers to a system of shared meaning held by members, distinguishing the
organization from other organizations. This system of shared meaning is, upon closer
examination, a set of key characteristics that the organization values. Research suggests that
there are seven primary characteristics that, in aggregate, capture the essence of an
organization’s culture.

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

be innovative and take risks.
• Attention to detail. The degree to which employees are expected to exhibit
precision, analysis, and attention to detail.
• Outcome orientation. The degree to which management focuses on results or
outcomes rather than on the techniques and processes used to achieve these
outcomes.
• People orientation. The degree to which management decisions take into
consideration the effect of outcomes on people within the organization.
• Team orientation. The degree to which work activities are organized around
teams rather than individuals.

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 • Aggressiveness. The degree to which people are aggressive and competitive
rather than easy-going.
• Stability. The degree to which organizational activities emphasize
maintaining the status quo in contrast to growth.

What do cultures do?

Functions of culture

Culture performs a number of functions within an organization. Firstly, it has a boundary-

defining role; that is, it creates distinctions between one organization and other organizations.
Secondly, it conveys a sense of identity to organization members. Thirdly, it facilitates
commitment to something larger than individual self-interest. Fourthly, it enhances social
system stability. Culture is the social glue that helps to bind the organization by providing
appropriate standards for what employees should say and do. Finally, culture serves as a
meaningful control mechanism that guides and shapes the attitudes and behaviours of employees.

Culture as a liability

• Barrier to change – Culture is a liability when the shared values do not

conform with those that will further the organization’s effectiveness.
• Barrier to diversity – Appointing new employees who, because of race,
gender, disability, or other differences are not like the majority of the
organization’s members could create a paradox. Management wants new
employees to accept the organization’s core cultural values. Otherwise, these
employees are unlikely to fit in or be accepted.
• Barriers to acquisitions and mergers – Historically, the key factors that
management considered in making acquisition or merger decisions were
related to financial advantages or product synergy. In recent years, cultural
compatibility has become the primary concern. While a favorable financial
statement or product line may initially attract an acquisition candidate,

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 whether the acquisition actually works seems to have more to do with how
well the two organizations’ cultures match up.

Creating and sustaining culture

How a culture begins

Keeping a culture alive – Selection, Top management, and Socialization

How employees learn culture

Stories

Rituals

Material symbols

Language

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CHAPTER 10

ORGANIZATIONAL CHANGE AND STRESS MANAGEMENT

The process by which managers sense and respond to the necessity for change has been the focus
of much research and practical attention in recent years. If managers were able to design perfect
sociotechnical organizations and if the scientific, market, and technological environments were
stable and predictable, there would be no pressure for change. But such is not the case.

Forces for change

Nature of the workplace

* More cultural diversity

* Increase in professionals

* Many new entrants with inadequate skills

Technology

* Faster and cheaper computers

* TQM programmes

* Re-engineering programmes

Economic shocks

* Asian real estate collapse

* Russia devalues the ruble

* Collapse of oil prices

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* Volatility of S. A. rand

Competition

* Global competitors

* Mergers and consolidations

* Growth of internet commerce

Social trends

* Attitude towards smokers

* Delayed marriages by young people

* Popularity of sport utility vehicles

World politics

* Collapse of Soviet Union

* Opening of markets in China

* Black rule of South Africa

Change Management

Change is a powerful factor in organizations. It is as powerful as productivity.

Change occurs because new realities in the workplace or organization replace old ones.

Change means to make things different

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Forms of change

There are two basic forms of change: planned and unplanned change.

Planned change – This occurs when change results from a deliberate decision to alter the
organization.

Unplanned change – Alterations may occur as a result of imposed conditions. Such change
may be unforeseen.

Scope of change

Change has three scopes:

• Incremental change: This is a change of a relatively small scope, such as making a small
modification in a work procedure; it is a change involving minor improvements.
• Strategic change: This is a change on a larger scale, such as restructuring of an
organization.
• Transformational change: This is the most massive scope of change. With this change,
the organization moves to a radically different and, at times, unknown future state.

Resistance to change

Change has to be managed because people generally fear and resist change. They perceive
change as a threat to their self-interest

Change is often resisted because it is perceived as leading to some loss.

Change induces the following fears:

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 • Fear of the unknown – Whether planned or unplanned, change often brings with it a great
deal of uncertainty. It creates anxiety.
• Fear of loss – An impending change generally leads some employees to fear for the
security of their jobs or positions.
• Fear of failure – One of the greatest factors inducing fear of change is fear of failure.
New workplace system arouse a sense of self-doubt about the workers’ ability to interact
with the new systems, especially computers.
• Fear of disrupted relationships – Changes at the workplace may lead to disrupted
interpersonal relationships. Often employees develop meaningful, long-term
interpersonal relationships at the workplace. Introducing changes may affect their
relationships.
• Fear of conflict – Some fear change because it may introduce new situations where
employees may have to deal with different attitudes in the workplace. Conflicts may
result as a consequence of a changed workplace situation; this may lead to conflict
because employees may feel that their concerns and needs no longer receive the attention
they once did.
• Fear of loss of power or influence – One of the greatest fears of organizational change is
the disturbance of the settled balance of power. Those who have power, or have great
influence under the prevailing arrangement, will feel threatened by the prospects of
losing their political advantage or influence with the advent of change.

Managing resistance to change

One key to managing resistance is to plan for it, and to be ready with a variety of strategies to
help employees to negotiate the transition.

Basically there are three key strategies for managing resistance to change. These are:

• Communication
• Participation
• Empathy and support

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What is a learning organization?

Characteristics of a learning organization

• Flat organizational structure

• Open communication
• Empowerment
• Inspired leadership
• Innovation and change
• Shared vision
• Systems approach
• Job satisfaction and commitment
• People oriented
• External focus
• Technology driven
• Learning opportunities
• Action and results focus
• Customer oriented

Managing learning

• Establish a strategy
• Redesign the organisation’s structure
• Reshape the organisation’s culture

Work stress and its management

Stress is a dynamic condition in which an individual is confronted with an opportunity,

constraint, or demand related to what he or she desires and for which the outcome is perceived to
be both uncertain and important. In other words, stress involves the interaction between a person
and the person’s environment.
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Potential sources of stress

* Environmental factors

* Organizational factors

* Individual factors

Consequences of stress

* Physiological symptoms

* Psychological symptoms

* Behavioral symptoms

Managing stress

* Individual approaches

* Organizational approaches

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