Organisation Behaviour and Performance

STUDY PACK
ON
ORGANISATIONAL BEHAVIOUR
AND PERFORMANCE
PROFESSIONAL EXAMINATION I
1
STUDY PACK ON
ORGANISATIONAL BEHAVIOUR AND

PERFORMANCE
PROFESSIONAL EXAMINATION I
@CIPM 2018
THIRD EDITION
CHARTERED INSTITUTE OF PERSONNEL
MANAGEMENT OF NIGERIA
CIPM House, 1 CIPM Avenue, Off Obafemi Awolowo Way,

Opposite Lagos State Secretariat, Alausa, Ikeja, Lagos.
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All rights reserved, no part of this publication may be reproduced,stored in

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mechanical, photocoping or otherwise without permission of CIPM
NIGERIA.
2
FOREWORD
This third edition of our study pack has been made available for the use
of our professional students to assist them in effectively accomplishing
their HR professional goal as dictated by the Institute from time to time.
The text is meant not only for Chartered Institute of Personnel

Management of Nigeria (CIPM) students, but also for researchers, HR
practitioners and organisations embarking on the promotion of human
capital development in its entirety. It has therefore been written not
only in a manner that users can pass CIPM professional examinations
without tears, but also to provide HR professional practitioners further
education, learning and development references.
Each chapter in the text has been logically arranged to sufficiently

cover all the various sections of this subject in the CIPM examination
syllabus in order to enhance systematic learning and understanding of
the students. The document, a product of in-depth study and research is
both practical and original. We have ensured that topics and sub-topics
are based on the syllabus and on contemporary HR best practices.
Although concerted effort has been made to ensure that the text is up to
date in matters relating to theories and practice of contemporary issues
in HR, we still advise and encourage students to complement the study
text with other relevant literature materials because of the elastic scope
and dynamics of the HR profession.
Thank you and have a productive preparation as you navigate through

the process of becoming a professional in Human Resources
Management
Ajibola Ponnle.
REGISTRAR/CEO
ACKNOWLEDGEMENT
3
On behalf of the President and the entire membership of the Chartered
Institute of Personnel Management of Nigeria (CIPM), we
acknowledge the intellectual prowess of Dr. Augustine Agugua in
writing this well researched text for Organisational Behaviour and
Performance. The meticulous work of our reviewer, Dr. Olufemi A.
Akintayo has not gone unnoticed and is hereby acknowledged for the
thorough review of this publication.
We also commend and appreciate the efforts of members of the

Education Committee of the Institute for their unflinching support.
Finally, we appreciate the contributions of the National Secretariat staff

competently led by the Registrar/CEO, Mrs. Ajibola Ponnle and the
project team, Dr. Charles Ugwu, Mrs. Nkiru Ikwuegbuenyi, Miss
Charity Nwaigbo, Mrs. Livina Onukuba and Miss Opeoluwa Ojo.
TABLE OF CONTENTS
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Chapter 1:
The concept of Organisational behaviour 1
1.0 Learning Objectives 1
1.1 Introduction 1
1.2 Essential Attributes/Elements of an Organisation 2
1.3 History of Organisational Behaviour 3
1.4 Relationship between Organisational Behaviour
and other Disciplines. 4
1.5 Organisational Behaviour in Practice 11
1.6 Challenges of Organisational Behaviour Concepts for 12
Managers
1.7 Elements of Total Quality Management
Total Quality management (TQM) 20
1.8 Workforce Diversity 23
1.9 Benefits of Workplace Diversity 24
1.10 challenges of diversity in the workplace 25
1.11 Recommended Approaches to Issues on Diversity in
the Workplace include: 27
Chapter Summary 28
Reference 29
Review Questions 31
Chapter 2:
Critical Issues Facing the Workforce 37
2.1 Introduction 37
Chapter Summary 39
References 40
Review Questions 41
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Chapter 3
Leadership in Modern Oragnisations 45
3.1 Introduction 45
3.2 Learning vs. Managing 45
3.3 Transactional vs. Transformational Leadership 48
Chapter Summary 52
References 53
Review Questions 54
Chapter 4
Understanding Corporate Culture 58
4.0 Leaning Objectives 58
4.1 Introduction 58
4.2 Corporate Culture 60
4.3 Exploring Corporate Culture and Management 64
Models
4.4 Components of Corporate Culture 71
4.5 Corporate Communication 72
4.6 The Communication Process 74
4.7 Responsibilities of Corporate Communication 78
4.8 Issues in Communication 78
4.9 Opinion and Image Surveys 83
4.10 Actual Behaviour and Decisions 84
Chapter Summary 86
References 87
Review Questions 87
Chapter 5
Managerial Style 89
5.0 Leaning Objectives 89
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5.1 Introduction 89
5.2 Personality Characteristic 90
5.3 Career Paths 91
5.4 Leadership Styles 98
5.4.1 Leadership Theories 100
5.4.2 Leadership Styles 109
5.5 Managing the Work Environment 112
5.6 Qualities of an Effective Team Leader 113
Chapter Summary 115
References 116
Review Questions 117
Chapter 6
Workplace Value 119
6.1 Introduction 119
6.2 Dominant Value in Today’s Workforce 119
6.3 Job Satisfaction and Productivity 121
6.4 Theory of Cognitive Dissonance 125
6.5 Attribution Theory 128
Chapter Summary 131
Chapter 7
Foundation of Group Behaviour 138
7.2 Classification of Groups 140
7.3 Why do People Join Groups? 146
7.4 Factors that Govern Formation of Groups 148
7.5 Stages of Group Development 149
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7.6 Analysis of Group Interaction 150
7.7 The Concept of Roles 150
7.7.1 Exploring the Concept of Roles in an Organisation 151
7.8 Workgroup Behaviour 158
7.8.1 Group Structure, Process and Tasks 160
7.8.2 Disadvantages of Strong Cohesive Groups 163
7.9 Group Decision-Making 164
7.9.1 The Individual Versus the Group 164
7.10 Group Decision Making Techniques 165
7.11 Selecting the Best Group Decision-Making
Technique 171
Chapter Summary 172
References 173
Chapter 8
Foundation of Organisations 178
8.1 Organisational Structure 178
8.2 Types of Organisational Structure 180
8.3 Organisational Structure and Performance
Measurement 184
8.4 Organisation Design 187
8.5 Work Design and Technology 187
8.5.1 Techniques of Work Design 188
8.5.2 Technology and Organisational Behaviour 189
8.6 Foundation of Human Resources Policies and
Practice 190
8.7 Importance of Human Resource Policies 192
8.8 Factors that Influence Human Resource Policies
of an Organisation 193
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8.9 Performance Evaluation 194
8.10 Training and Career Development 195
8.10.1 Steps in Training Exercise 196
8.10.2 Types of Training 196
8.11 Management of Diversity in Organisation 197
8.11.1 The Paradox of Diversity 200
8.12 The Meaning of Workforce Diversity 201
8.13 Globilisation and Diversity 202
Chapter Summary 203
References 204
Chapter 9
Organisational Dynamics and Change 208
9.2 Forces Influences Change 209
9.3 Types of Organisational Change 213
9.4 Areas of Focus during Change 214
9.5 Managing Planned Change 215
9.6 Goals of Planned Change 215
9.7 Two Views of Change 217
9.8 Resistance to Change 219
9.8.1 Sources of Resistance 220
9.8.2 Organisational Resistance 221
9.9 Overcoming Resistance to Change 223
9.9.1 Change Agents 226
9.10 Contemporary Issues in Organisational Change 228
9.11 Understanding Stress 229
9.11.1 Symptoms of Stress 230
9.11.2 Sources of Stress 233
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9.12 Consequences of Stress 238
Chapter Summary 241
References 242
Chapter 10
Future Trends in Organisational Behaviour and
Performance 248
10.2 Challenges and Opportunities in Organisational
Behaviour and Performance 248
10.3 Responding to Globilisation 251
10.4 Improving Quality and Productivity 253
10.5 Improving People Skills 254
10.6 Empowering People 255
10.7 Global Village and the International Challenge 256
10.8 Individual Biases 257
10.9 The Kluckhohn-Strodtbeck Framework 259
10.10 The Hofstede Framework of Cultural Diversity 263
Chapter Summary 267
Reference 268
Practice Questions (Objectives) 273
CHAPTER 1
THE CONCEPT OF ORGANISATIONAL BEHAVIOUR
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1.0 LEARNING OBJECTIVES
After reading this chapter, students should be able to:
1. Define the concepts of organisation and organisational
behaviour
2. Understand the essential attributes of an organisation
3. Trace the historical developments and schools of thought
leading up to the field of
4. Organisational behaviour today
5. Explain the relationship between organisational behaviour and
other disciplines
6. Identify the challenges of organisational behaviour concept for
managers
7. Know the challenges of diversity in the workplace
1.1. INTRODUCTION
An organisation is the collection of two or more people who come
together and use resources to achieve stipulated objectives and goals. It
is a social unit of people that is structured and managed to meet a need
or to pursue collective goals. All organisations have a management
structure that determines relationships between the different activities
and the members, and subdivides and assigns roles, responsibilities,
and authority to carry out different tasks, this is why it is seen as a social
entity that has a collective goal and is linked to an external
environment. Management scholars believe that for organisations to
attain efficiency, it must be structured from the point of view of
relationships, power, objectives, roles, activities, communications and
other factors that exist when persons work together.
1.2. ESSENTIAL ATTRIBUTES/ELEMENTS OF AN
ORGANISATION.
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- Structure: it depicts component parts of the organisation. It also
depicts chains of communication, and also shows how
organisational resources are distributed.
- Participants/social actors: this includes employees, consultants,
technicians, etc. that is those who work with and for the
organisation.
- Technology: an organisation needs some form of technology to
carry out its activities.
- Environment: it includes both internal and external factors that
affect the operation of the organisation.
- Management: it is a group of people who have the responsibility to
control and direct the activities of the organisation. It involves using
the resources of the organisation wisely to achieve its goals.
The above elements are necessary conditions for organisations to

thrive, more so with the interplay between the people within it and the
structure. From this stance, Chester Barnard recognized that individuals
behave differently when acting in their organisational role than when
acting separately from the organisation; this has however informed the
concept and discipline of organisational behaviour. Organisational
behaviour researchers study the behaviour of individuals primarily in
their organisational roles. One of the main goals of organisational
behaviour is to revitalize organisational theory and develop a better
conceptualisation of organisational life. Organisational behaviour is the
study of human behaviour in organisational settings, the interface
between human behaviour and the organisation, and the organisation
itself. Organisational Behaviour can be categorised in at least three
ways, including the study of (a) individuals in organisations (micro-
level), (b) work groups (meso-level), and (c) how organisations behave
(macro-level).
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1.3. HISTORY OF ORGANISATIONAL BEHAVIOUR
While Organisational Behaviour as a field of academic study wasn’t
fully recognised by the American Psychological Association until the
1970’s, it’s roots go back to the late 1920’s when the Hawthorne
Electric Company set up a series of experiments designed to discern
how changes in environment and design changed the productivity of
their employees. Their various studies, conducted between the years of
1924 and 1933, were broad and meticulously measured over large
periods of time. The studies included the effect of various types of
breaks (lots of small breaks, a few long ones, etc.) on productivity,
productivity in isolation, and productivity in varying levels of light. The
most famous finding resulting from the Hawthorne Studies is what is
now called the Hawthorne Effect, which is the change in behaviour of
a test subject when they know they’re being observed.
To focus on that one finding, some have argued, is to ignore a wider set
of studies that would become credited for the development of
organisational behaviour as a field of study and the human
resources profession as we now know it. The idea of looking
scientifically at behaviour and productivity in the workplace with the
goal of increasing the amount and quality of work an employee can get
done, along with the idea that workers were not interchangeable
resources but were instead unique in terms of their psychology and
potential fit with a company. These ideas were radically new when
Hawthorne first began the studies, and they helped create a field of
study and an entire professional field.
Organisational behaviour has focused on various different topics of

study. In part, because of the Second World War, during the 1940’s the
field focused on logistics and management science. During this period
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the emphasis was on using mathematical modelling and statistical
analysis to find the best answers for complex problems. Studies by the
Carnegie – or freshwater – School economics in the 1950’s and 1960’s
furthered these rationalist approaches to decision making problems.
In the 1970’s, theories of contingency and institutions, as well as

organisational ecology, resource dependence, and bounded rationality
came to the fore as the field focused more on quantitative research.
These findings and sets of theories helped organizations better
understand how to improve business structure and decision
making. Since the 1970’s, a good deal of the work being done in the
field of organisational behaviour has been on cultural components of
organisations, including topics such as race, class, gender roles, and
cultural relativism and their roles on group building and productivity.
These studies, a part of a shift in focus in the field towards qualitative
research, and among other things, take into account the ways in which
identity and background can inform decision making.
1.4 RELATIONSHIP BETWEEN ORGANISATIONAL

BEHAVIOUR AND OTHER DISCIPLINES.
Organisational behaviour is an interdisciplinary approach as it has
borrowed concepts, theories, models and practices of physical sciences
as well as social sciences. The main features of organisational
behaviour are primarily based on behavioural sciences. The
organisational behaviour is studied in relation to psychology,
sociology, political science, anthropology, economics, science,
technology and environmental sciences. OB is, in fact, called an applied
behavioural science.
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The relationship of OB with other fields of study is depicted in the
following diagram
Source: Diksha (2016)
1. PSYCHOLOGY:
The term ‘psychology’ is derived from the Greek World ‘Psyche’
which means ‘soul’ or ‘spirit’. Organisational behaviour studies human
behaviour which is concerned mainly with the psychology of the
people. Psychology, especially, industrial or organisational psychology
is the greatest contributor to the field of organisational behaviour.
Psychologists study behaviour and industrial or organisational
psychologists deal specifically with the behaviour of people in
organisational settings. Psychology as a science, measures, explains
and suggests the appropriate human behaviour. Individual behaviour is
governed by perception, learning and personality. Industrial
psychology understands people’s behaviour at work, particularly under
different working conditions, stress, conflicts and other related
behaviour of employees. Job satisfaction, performance appraisal and
reward systems are measured and directed with the use of
psychological theories and models (Akintayo, 2012, 2015).
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Group behaviour in the organisations is studied, researched and
moulded with the use of theories of Social Psychology. The
communication system in the organisation, attitudes of employees,
their needs etc. as a subject of social psychology have a great influence
on behaviour. Thus, many of the concepts which interest Psychologists
e.g. learning, motivation etc. are also central to the students of
organisational behaviour. We can conclude that the contribution of
psychology in the field of organisational behaviour is quite significant.
2. SOCIOLOGY:
Sociology also has a major impact on the study of organisational
behaviour. Sociology makes use of scientific methods in accumulating
knowledge about the social behaviour of the groups. Sociologists study
social systems such as a family, an occupational class, a mob or an
organisation. It specifically studies, social groups, social behaviour,
society, customs, institutions, social classes, status, social mobility,
prestige etc.
It studies the behaviour of the people in the society in relation to their

fellow human beings. Sociology contributes to organisational
behaviour through its contribution to the study of interpersonal
dynamics like leadership, group dynamics, communication etc.
Socialisation is accepted for moulding the behaviour of people where
the capacities of individuals to learn and respond to social systems,
values, norms and social roles are accelerated and appreciated. The
attitudes and behavioural patterns of individuals and groups are greatly
influenced by socialisation.
3. ANTHROPOLOGY:
Anthropology is concerned with the interactions between people and
their environment, especially their cultural environment. Culture is a
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major influence on the structure of organisations as well as on the
behaviour of people within organisations. ‘Anthropo’ is a Greek word
which means ‘man’ and ‘logy’ means ‘Science’. Aristotle defined
anthropology as a science of man’s self-understanding. It particularly
studies civilization, forms of cultures and their impact on individuals
and groups, biological features of man and evolutionary pattern, speech
and relationship among languages.
Anthropology contributes in understanding the cultural effects on

organisational behaviour, effects of value systems, norms, sentiments,
cohesion and interaction. Socialization involves spreading of values
and missions of organisation among employees. Anthropology
influences the employees’ behaviour through motivation, interaction,
goal setting, decision making, coordinating and controlling.
4. POLITICAL SCIENCE:
In recent times, political science has also started interesting the
organisational behaviourists. Political Science is usually, thought of as
the study of political systems. But political scientists are interested in
how and why people acquire power, political behaviour, decision
making, conflict, the behaviour of interest groups and coalition
formation. These are also major areas of interest in organisational
behaviour. Political parties and Government directly intervene in many
activities of the organisation. Specific principles of political science are
observed in organisational behaviour for delegation of authority and
responsibility, conflict resolution and stress management.
In organisations, people strive for power and leadership recognition.

Political Science helps in the management of men in an effective and
efficient manner. Political perspectives and government policies are
thoroughly analysed for moulding and modifying the behaviour of
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people, because they greatly influence the organisation. The law and
order of the country influence the people at work.
5. ECONOMICS:
Economists study the production, distribution and consumption of
goods and services. Students of organisational behaviour share the
economist’s interest in such areas as labour market dynamics,
productivity, human resource planning and forecasting, and cost benefit
analysis. The economic conditions of a country have long lasting
impact on organizational behaviour. If psychological and economic
expectations of employee are met, they are satisfied and become high
performers. Economic systems include financial, commercial and
industrial activities which have greater influences on the behaviour of
the people. The consumption pattern in society monitors the behaviour
of employees. Consumption oriented society witnesses a different
employee behaviour from that of a production oriented society.
6. SCIENCE:
Science is systematized knowledge. The scientific methods attempt to
produce information that is objective in the sense that it is certifiable
and independent of a person’s opinions or preferences. Scientific
method is the backbone of organisational behaviour. Organisational
behaviour is based on the systematized study of facts, behaviour, their
relationships and predictions. New scientific methods viz. observation
of facts and behaviour, explanation of facts and relationships and
coming to conclusion thereon have become important bases of the
study of organisational behaviour. The cause and effect relationship is
also established in organisational behaviour like that of science. The
verification of the relationship and its quantification has added to the
importance of organisational behaviour.
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It becomes relatively easy to predict and mould the people at work. A
researcher, in the field of OB investigates new facts, tests theories,
hypothesis and models. Personal bias, superfluous conclusions and
whimsical approaches are avoided in the study. A systematized form of
inquiry is used for the study of various problems.
7. TECHNOLOGY:
The level of technological development affects the behaviour of the
employees. Modern age is the age of computerization. It has come
within the framework of the model of organisational behaviour. The
study of technological development is becoming essential for
understanding the organisational behaviour, because people are
influenced by the technological development. Human behaviour
relations and environments develop as a result of technological
innovations.
Technology changes consumer behaviour, production activities,

distribution, and storage activities. To cope up with the technological
development people have to become educated and/or technically
skilled. They should have to be responsibility conscious and
development oriented. Unskilled or irresponsible will have no place in
the modern innovative age. Thus, technological development leads to
effective work behaviour, improved organisational culture and helpful
work environment.
8. ENGINEERING:
Engineering also influences the study of organisational behaviour.
Some topics are common to engineering as well as organisational
behaviour e.g. work measurement, productivity measurement, work
flow analysis, work design, job design and labour relations. In fact,
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organisational behaviour is dependent on engineering for these
technical jobs.
9. MEDICINE:
Nowadays, medicine has also come in connection with the study of
human behaviour at work. Stress is becoming a very common problem
in the organisations as well as in the people working in the
organisations. Research shows that controlling the causes and
consequences of stress in and out of organisational settings, is
important for the well-being of the individual as well as the
organisations. Medicine helps in the control of stress as well as stress
related problems.
Thus, it can be concluded that organisational behaviour has an

interdisciplinary focus. It draws from a variety of other fields and
attempts to describe behaviour as opposed to prescribing how
behaviour can be changed in consistent and predictable ways.
1.5. ORGANISATIONAL BEHAVIOUR IN PRACTICE

Findings from organisational behaviour’s body of research can be used
by executives and Human Relations professionals to better understand
a business culture, how that culture may facilitate or hinder
productivity and employee retention, and how to best evaluate
candidates skill set and personality during the hiring process.
The application of theory and knowledge from the field of

organisational behaviour can be broken down into sections of
Personality, Job Satisfaction and Reward Management, Leadership,
Authority, Power, and Politics. There is rarely one correct way to assess
the right way to manage any of these things, but Organisational
Behaviour research can provide a set of guidelines and topics to follow.
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• Personality, essentially a series patterned behaviour, plays a
large role in the way a person interacts with groups and
produces work. Knowing a person’s personality, either through
a series of tests, or through conversation can give a better idea
of whether they’re a fit for the environment they’d be hired
into, and how best to motivate that person.
• Theories around job satisfaction vary widely, but some argue
that a satisfying job consists of a solid reward system,
compelling work, good supervisors, and satisfactory working
conditions.
• Leadership, what it looks like and where it is derived from is a
rich topic of debate and study within the field of organizational
behaviour. When one views it connected to management, it can
be either broad, focused, centralized or de-centralized,
decision-oriented, intrinsic in a person’s personality or a result
of a place of authority.
• Power, authority, and politics all operate inter-dependently in
a workplace. Understanding the appropriate ways, as agreed
upon by a workplace rules and general ethical guidelines, in
which these elements are exhibited and used are key
components to running a cohesive business.
1.6. CHALLENGES OF ORGANISATIONAL BEHAVIOUR

CONCEPTS FOR MANAGERS
1. MANAGERIAL CHALLENGES:
(i) Work Force Diversity:
One of the most common and important challenges currently facing
organisations is dealing with people who are different. This challenge
is termed as work force diversity. Organisations are becoming
increasingly cosmopolitan. They are becoming more diverse in terms
of religion, race and ethnicity, for example. Work force diversity, in
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fact, encompasses anything which varies from the so called norms. In
the modern workplace, one can find a Brahmin working alongside a
Muslim, an untouchable or a Sikh.
Diversity in the workplace may feature the physically impaired,

lesbians, gays, elderly or others who are different in some way or the
other. In earlier times, managers used to take a melting pot approach to
differences in organisations assuming that people who were different
would somehow automatically want to assimilate. Moreover,
employees who did not fit the traditional profile were usually in the
minority, and for that reason, ignored by most organizations.
Managers must be seen to respect diversity. They have to shift their

philosophy from treating everyone alike to recognizing differences and
responding to those differences in a way that will ensure employee
retention and greater productivity while at the same time not
discriminating. An increasingly diverse workforce presents both
opportunities and challenges for the organisations.
Diversity can become a competitive advantage in the following
ways:
- Diversity can become a competitive advantage by improving
the decision making and team performance on complex tasks.
- A diverse workforce is sometimes essential to provide better
customer service in the global market place.
- Workforce diversity brings new challenges with respect to
communication, team dynamics and interpersonal conflict.
- Diversity, if properly managed, can increase creativity and
innovation in organisations.
If diversity is not properly managed it can lead to high employee

turnover, more difficult communication and more interpersonal
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conflicts. It can raise concerns about work place discrimination and
harassment. Employers thus, need to adjust to emerging workforce
composition by replacing command and control leadership with
empowerment giving more freedom and power to the employees.
(ii) Changing Workplace Demographics
The major challenge from changing demographics of workforce relates
to the following:
- Dual Career Couples:
This is a situation where both partners are actively pursuing
professional careers. Organisations had been used to physical
relocation of employees. Employees moving through organisational
ranks to upper level positions need experience in variety of roles in
different organisational units. Job change and physical relocation have
been used by organisation for developing talent among employees.
However, the dual career couples limit the individual flexibility in
accepting such assignments. This hinders the organisational flexibility
in acquiring and developing talent.
- Growing number of youngsters:

Another form of diversity comes from younger people entering the
workforce. Generation-X employees are on an average about 25 years
of age. These employees bring new ways of thinking about the world
of work and preferred employment relationships. The young employees
are ambitious, enthusiastic, and innovative. Their personal needs have
to be handled with circumspection. These people do not live to work
but work to live, choosing a life that they want to have rather than just
bringing home a pay check.
- Gender factor:
Women used to have very traditional careers in earlier times like
nurses, teachers, secretaries etc. Gradually they moved into professions
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previously dominated by males e.g. law, medicine, and engineering.
Nowadays, they are becoming more experienced and moving into civil
services, engineering, information technology etc. Many blue collar
jobs are being increasingly sought by women. On the other hand, more
and more men are entering into professions previously dominated by
women e.g. catering, nursing, cooking, fashion and textile designing
etc. These developments have their own implications for human
resource managers in organisations.
2. WORK PLACE ISSUES AND CHALLENGES:

Work place issues and challenges also have behavioural implications
and the issues are as follow:
- Employee Privacy:
Employers, nowadays, have started to encroach into the private lives of
the employees. Managers need to be very sensitive to this issue since
this trend creates resentment among employees.
- Employee Rights:
A concern related to employee privacy is employee rights. In this
context, controversies involve issues associated with job ownership and
individual rights while at work. Issues have also surfaced regarding
uniform dress codes, right to marry within the organisation, etc. These
issues tend to be controversial as more and more organisations limit or
ban certain activities.
- Unionism:
In the recent years, the general trend regarding union membership has
been steadily declining. As a result, organisations carry the burden of
providing the services to the employees which were previously
provided by the unions. Organisations need to take extra precautions to
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ensure that workers are treated fairly; otherwise, union membership
will start increasing once again. Unionism has started increasing in
other areas ranging from professional to technical to white collar jobs
- Changed Employee Expectations:
Employee expectations are also changing with change in work force
demographics. Traditional motivators like job security, attractive pay
package, additional perquisites may not attract or retain today’s
workforce. Nowadays, employees demand empowerment and expect
equality of status with the management. Authoritative leadership is
giving way to participative leadership, and employee influence and
involvement, along with mechanisms for upward communications.
Flexible timings, opportunities to work from home, leading by example
are the more recent trends. Today’s average worker demands better
treatment, challenging jobs and career advancement.
3. ORGANISATIONAL CHALLENGES
Managers have to face a large number of challenges at the
organisational level. The major ones are as follows:
- Improving Quality and Productivity:
Due to the advent of globalization, privatisation and liberalisation,
organisations are exposed to competition. In such a scenario, managers
have to think seriously about improving quality and productivity. To
achieve this target, managers are implementing initiatives like Total
Quality Management and Reengineering programmes.
Total quality Management (TQM) is a philosophy of management for
attainment of customer satisfaction through the continuous
improvement of all organisational processes. TQM has implication for
OB because it requires employees to rethink what they do and become
more involved in work place decisions. Reengineering means radically
rethinking and redesigning those processes by which we create value
for customers and do work. It requires a reconsideration of how the
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organisation is structured and how work gets done. This is if managers
decide to start re-engineering from the scratch.
Managers nowadays must understand that any effort to improve the

organisational quality and productivity in order to succeed must include
the employees. Since employees are major force in carrying out the
changes, they should participate actively in planning those changes
also. OB offers important insights into helping the manager’s work
through these changes.
- Managing Technology and Innovations

In today’s competitive environment a significant challenge confronting
the managers is the set of issues involving the management of
technology, innovations and changes. Success will come only to those
organisations that maintain their flexibility, continually improve their
quality, and outpace their competitors with innovative products and
services. An organization’s employees can be the impetus for
innovation and change but they can be a major stumbling block. The
challenge for managers is to stimulate employee creativity and
tolerance for change. The field of OB provides a wealth of ideas and
techniques to facilitate realisation of goals.
- Coping with Temporariness

Although managers are constantly compelled to adapt new realities in
the business environment, today change is a constant challenge for
them. Too often, the young generation feels that the concept of
continuous improvement means constant change. Managers face a
stage of permanent temporariness. The nature of the jobs that the
workers perform changes so fast that the workers have to continuously
update their knowledge and skills to be able to perform new job
requirements. The organisations are also in a state of flux as they have
26
to continuously reorganise their various divisions, sell off poorly
performing businesses, and down size operations.
Today managers and employees must learn to live with temporariness.
They have to learn to cope with spontaneity, flexibility and
unpredictability. The study of OB can help in providing important
insights into helping one overcome resistance to change and how best
to create an organisational culture that thrives on change.
- Ethical Behaviour:
A very important organisational challenge relates to ethical behaviours
and social responsibility. It is the duty of today’s managers to create an
ethically healthy climate for their employees, where they can do their
work productively and with respect for socially approved business
practices. Social responsibility is the organisational obligation to
protect and contribute to the social environment in which it functions.
Both concepts have become very significant in recent years.
Organisational leadership, organisational culture and group norms are
important organisational behaviour concepts which are relevant in
managing challenges emanating from ethical behaviour.
4. GLOBAL CHALLENGES:
Global challenges are another important set of concerns for today’s
managers. The global issues relate to the followings:
- Managing Global Environment

Organisations are no longer constrained by national borders.
Internationalisation of business has transformed the world into a global
village. Managers have to cope with unfamiliar laws, languages,
practices, attitudes, management styles, ethics, etc. HR function must
change to acquire a global perspective. Managers have to be flexible
and proactive if they are to face these challenges.
27
- Managing Cultural Diversity
Today’s managers have to learn to cope with people from different
cultures. Globalisation affects the managers in two ways. If they are
transferred to another country, they will have to manage a workforce
that is likely to be very different in needs, aspirations and attitudes. If
they are in their own country they have to work with people from other
countries with different cultural backgrounds. Hence, to work
effectively with these people, one has to understand their culture and
learn to adapt management styles to these different cultures.
5. ENVIRONMENTAL CHALLENGES
Every organisation exists within an external environment. The
organisation, thus, must adapt itself through continuous interaction
with the environment. The environment is dynamic and is continuously
changing. So the adaption process of organisations must also be
dynamic and sensitive. Members of the organisation must be
responsive to a large number of environmental challenges. The
organisation must understand its responsibility to the environment and
should be willing to interact with the environment, only then will it be
able to survive in the long run.
The following are the specific environmental challenges an
organisation should be aware of:
- Ecology
Responsibility of business towards society includes concern for
ecology. Ecology is concerned with the relationship of living things
with their environment. Every organisation must face the challenge to
maintain and even raise the bar of ecological standards.
- Air, Water and Soil Pollution
28
The general understanding nowadays is that development should be
sustainable in the long run and every project should strive to mitigate
the direct harm to the environment resulting from the development
measures.
- Personnel Policies
Personnel policies of the organisation should not be discriminatory
towards any particular caste, creed, religion, sex or nationality. There
should be equal pay for equal work.
- Consumerism
Concerns about consumerism have elicited calls for a revised
marketing concept. The original marketing concept has to be broadened
to include the societal marketing concept. Societal marketing concept
is based on the idea that long term consumer welfare is also important.
- Research and Development

To effectively cope with global challenges, the organisation must
undertake technical and scientific research.
- International Policies
While doing a business on international scale, international policies
pose a major challenge. The organisation has to keep in mind the
legislations and specific policies of various countries where it does
business.
- National Economic Policies

Due to the rising inflationary trends in the economy, there is always
governmental pressure on the organisations to reduce prices and
increase the wages. To balance between these two is a very challenging
task.
29
1.7. ELEMENTS OF TOTAL QUALITY MANAGEMENT
Total Quality Management(TQM) consists of organization-wide
efforts to establish and preserve a climate in which an organization
continuously improves its ability to deliver high-quality products and
services to customers. While there is no widely agreed-upon approach,
TQM efforts typically draw heavily on the previously developed tools
and techniques of quality control.
According to the International organisation for standardisation"TQM is

a management approach of an organisation centred on quality, based
on the participation of all its members and aiming at long term success
through customer satisfaction and benefits to all members of the
organisation and society. In a TQM effort, all members of an
organisation participate in improving processes, products, services, and
the culture in which they work. In a nutshell, total quality management
can be summarised as a management system for a customer-focused
organisation that involves all employees in continuous improvement. It
uses strategy, data, and effective communications to integrate quality
into the culture and activities of the organisation. Many of these
concepts are present in modern Quality Management Systems, the
successor to TQM.
Here are the 8 principles of total quality management according to
American Society for Quality (2016).
1. Customer-focused
The customer ultimately determines the level of quality. No matter
what an organisation does to foster quality improvement—training
employees, integrating quality into the design process, upgrading
computers or software, or buying new measuring tools—the customer
determines whether the efforts are worthwhile.
30
2. Total employee involvement
All employees participate in working towards common goals. Total
employee commitment can only be achieved after fear has been driven
from the workplace, when empowerment has occurred, and
management has provided the proper environment. High-performance
work systems integrate continuous improvement efforts with normal
business operations. Self-managed work teams are one form of
empowerment.
3. Process-centred
A fundamental part of TQM is a focus on process thinking. A process
is a series of steps that take inputs from suppliers (internal or external)
and transforms them into outputs that are delivered to customers (again,
either internal or external). The steps required to carry out the process
are defined, and performance measures are continuously monitored in
order to detect unexpected variation.
4. Integrated system
Although an organisation may consist of many different functional
specialties often organised into vertically structured departments, it is
the horizontal processes within these functions that are the focus of
TQM.
• Micro-processes add up to larger processes, and all processes
aggregate into the business processes required for defining and
implementing strategy. Everyone must understand the vision,
mission, and guiding principles as well as the quality policies,
objectives, and critical processes of the organisation. Business
performance must be monitored and communicated
continuously.
31
• An integrated business system: every organisation has a unique
work culture, and it is virtually impossible to achieve
excellence in its products and services unless a good quality
culture has been fostered. Thus, an integrated system connects
business improvement elements in an attempt to continually
improve and exceed the expectations of customers, employees,
and other stakeholders.
32
5. Strategic and Systematic Approach
A critical part of the management of quality is the strategic and
systematic approach to achieving an organisation’s vision, mission, and
goals. This process, called strategic planning or strategic management,
includes the formulation of a strategic plan that integrates quality as a
core component.
6. Continual improvement
A major thrust of TQM is continual process improvement. Continual
improvement drives an organisation to be both analytical and creative
in finding ways to become more competitive and more effective at
meeting stakeholders’ expectations.
7. Fact-based Decision Making

In order to know how well an organisation is performing, data on
performance measures are necessary. TQM requires that an
organisation continually collect and analyse data in order to improve
decision making accuracy, achieve consensus, and allow prediction
based on past history.
8. Communications
During times of organisational change, as well as part of day-to-day
operation, effective communications plays a large part in maintaining
morale and in motivating employees at all levels. Communications
involve strategies, method, and timeliness.
1.8. WORKFORCE DIVERSITY

Workplace diversity refers to the variety of differences between people
in an organisation. That sounds simple, but diversity encompasses race,
gender, ethnic group, age, personality, cognitive style, tenure,
organisational function, education, background and more. Diversity not
33
only involves how people perceive themselves, but how they perceive
others. Those perceptions affect their interactions. For a widely diverse
workforce to function effectively as an organisation, human resources
professionals need to deal effectively with issues having to do with
communication, adaptability and change. Diversity will increase
significantly in the coming years. Successful organisations recognise
the need for immediate action and are ready and willing to spend
resources on managing diversity in the workplace now.
1.9. BENEFITS OF WORKPLACE DIVERSITY

An organisation’s success and competitiveness depends upon its ability
to embrace diversity and realize the benefits. When organisations
actively assess their handling of workplace diversity issues, develop
and implement diversity plans, multiple benefits are reported. Such
benefits include:
- Increased Adaptability
Organisations employing a diverse workforce can supply a greater
variety of solutions to problems in service, sourcing, and allocation of
resources. Employees from diverse backgrounds bring individual
talents and experiences in suggesting ideas that are flexible in adapting
to fluctuating markets and customer demands.
- Broader Service Range

A diverse collection of skills and experiences (e.g. languages, cultural
understanding) allows a company to provide service to customers on a
global basis.
- Variety of Viewpoints
34
A diverse workforce that feels comfortable communicating varying
points of view provides a larger pool of ideas and experiences. The
organisation can draw from that pool to meet business strategy needs
and the needs of customers more effectively.
- More Effective Execution

Companies that encourage diversity in the workplace inspire all of their
employees to perform to their highest ability. Company-wide strategies
can then be executed; resulting in higher productivity, profit, and return
on investment.
1.10. CHALLENGES OF DIVERSITY IN THE WORKPLACE

- Communication
Perceptual, cultural and language barriers need to be overcome for
diversity programs to succeed. Ineffective communication of key
objectives results in confusion, lack of teamwork, and low morale.
- Resistance to change
There are always employees who will refuse to accept the fact that the
social and cultural makeup of their workplace is changing. The we’ve-
always-done-it-this-way mentality silences new ideas and inhibits
progress.
- Implementation of Diversity in the Workplace Policies

This can be the overriding challenge to all diversity advocates. Armed
with the results of employee assessments and research data, they must
build and implement a customized strategy to maximize the effects of
diversity in the workplace for their particular organisation.
- Successful Management of Diversity in the Workplace.
35
Diversity training alone is not sufficient for your organisation’s
diversity management plan. A strategy must be created and
implemented to create a culture of diversity that permeates every
department and function of the organisation.
- Discrimination
This occurs when someone is denied opportunities on the basis of a
personal characteristic that has no bearing on job performance.
Discrimination causes great harm and is illegal in most cases.
It is natural that tensions will arise among individuals in a diverse
workforce, so it's important for employers to have diversity
management policies in place. Most large organisations have taken
steps to promote diversity awareness and understanding. These
diversity initiatives contribute to a positive work environment that is
free from discrimination. Let us look at some of the specific issues that
arise among the diverse groups in the workforce.
- Race and Ethnicity.

Racial and ethnic minorities may have different perspectives, customs,
or approaches to communication in the workplace. These differences
can pose challenges for organizations that seek harmonious employee
relations. Such challenges can be addressed through appropriate
training and education.
- Gender.
Women have long struggled to obtain equal pay for comparable work
and to remove the glass ceiling, an invisible barrier that keeps women
and other minorities out of the top managerial ranks. Women also face
gender discrimination and sexual harassment, i.e. sexual advances or
other unwelcome conduct of a sexual nature. Although much progress
36
has been made to prevent such conduct, there is still a need for training
and education.
- Age.
Today's diverse workforce reflects generational differences and
differing perspectives about the relationship between age and ability or
professional worth. While complaints about age discrimination are not
as prevalent as complaints about gender and racial discrimination,
managers must still promote awareness and understanding of age
differences in the workforce.
- Religion
Religious diversity in the workplace may raise issues of freedom of
expression, and these issues and can lead to conflicts over employee
leave for religious observances. Religious discrimination suits are on
the rise, so this is another important area for managers’ attention.
1.11. RECOMMENDED APPROACHES TO ISSUES ON

DIVERSITY IN THE WORKPLACE INCLUDE:
- Ward off resistance to change with inclusion. - Involve every
employee in formulating and executing diversity initiatives in
your workplace.
- Foster an attitude of openness in your organization. -

Encourage employees to express their ideas and opinions and
give fair treatment to all inputs.
- Promote diversity in leadership positions. - This practice

provides visibility and realizes the benefits of diversity in the
workplace.
37
- Utilize diversity training. - Use it as a tool to shape your
diversity policy.
- Launch a customizable employee satisfaction survey that

provides comprehensive reporting. - Use the results to build
and implement successful diversity in the workplace policies.
In conclusion, as the economy becomes increasingly global, our

workforce becomes increasingly diverse. Organisational success and
competitiveness will depend on the ability to manage diversity in the
workplace effectively. Evaluate your organisation’s diversity policies
and plan for the future, starting today.
CHAPTER SUMMARY
The chapter discussed the attributes of an organisation, the history of
Organisational Behaviour, relationship between Organisational
Behaviour and other disciplines, organisational behaviour in practice,
challenges of organisational behaviour concepts for managers,
elements of total quality management, workplace diversity, benefits of
workplace diversity, challenges of diversity in the workplace and
finally the recommended approaches to issues ofdiversity in the
workplace solutions.
38
REFERENCES
Akintayo, O. A (2012).The Role of Managers in Organisations.
International journal of Socio-economic development and
strategic studies.
Vol 5, No 1. Pp 3 – 28.
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Nigeria.
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Managing People and Organisations(5th edition). Boston.
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39
Price, B (1989). ‘Frank and Lillian Gilbreth and the Manufacture and
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American Psychological Association.
Taylor, F. W. (1911).The Principles of Scientific Management, New
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from the humanities, including theater, literature, music, and
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Wagner, J. A., & Hollenbeck, J. R. (2010).Organisational Behaviour:

Securing Competitive Advantage. New York: Routledge.
Weber, M. (1993).The Protestant Ethic and the Spirit of Capitalism(T.
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Weber, Max. The Theory of Social and Economic
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40
REVIEW QUESTIONS
QUESTION 1
A. What is organisational behaviour?
B. What are management functions?
C. List and discuss management roles?
D. Discuss what managers do?
E. What are the challenges and opportunities for organisational
behaviour?
F. What are the major personalities attributes influencing
organisational behaviour?
G. What are the frequently used short cuts in judging others?
H. Discuss the steps in the rational decision making model.
I. What is an ESOP (Employee Stock Ownership Plans)? How
might it positively influence employee motivation?
J. Why do people join groups?
SOLUTION TO QUESTION 1
(a) Organisational behaviour is a field of study that investigates the
impact that individuals, groups and structure have on behaviour
within organisation for the purpose of applying such knowledge
towards improving an organisation's effectiveness.
(b) Management functions are the act of:

i. Planning: A process that includes defining goals,
establishing strategy and developing plans to coordinate
activities.
ii. Organising: Determining what tasks are to be done, who
is to do them, how the tasks are to be grouped, who
reports to whom, and where decisions are to be made.
41
iii. Leading: A function that includes motivating
employees, directing others, selecting the most effective
communication channels and resolving conflicts and
iv. Controlling: Monitoring activities to ensure they are

being accomplished as a planned and correcting any
significant deviations.
(c) Management roles:

i. Interpersonal roles
ii. Information roles
iii. Decision role
(d) Managers get things done through other people. They make
decisions, allocate resources and direct the activities of others
to attain goals.
(e) (i) Responding to globalisation.

(ii) Managing workforce diversity.
(iv) Improving customer service.
(v) Empowering people.
(vi) Coping with temporariness.
(f) Major personality attributes influencing organisational

behaviour are:
(i) Locus of control
(ii) Machiavellianism
(iii) Risk taking
(v) Types A and B personalities
42
(g) Frequently used shortcuts in judging others are:
(i) Selective perception.
(ii) Hallo effect.
(iii) Contrast effects.
(iv) Projection.
(v) Stereotyping.
(h) Steps in the rational decision-making model:

(i) Define the problem, (ii) identify the decision criteria,
(iii) allocate weighs to the criteria, (iv) develop the
alternatives, (v) evaluate the alternatives and (vi) select
the best alternative.
(i) ESOPs are company established benefit plans in which

employees acquire stock as part of their benefits. It positively
influences employee motivation because it increases employee
job satisfaction and sense of ownership,
(j) People join groups for: (i) Security (ii) Status (iii) Self-esteem
(iv) Affiliation, (v) Power and (vi) Goal achievement
QUESTION 2
(a) There is no important issue in business organisation that can escape
having behaviour
implications. Why is it important for executives in both public and
private organisations to acquire knowledge of organisational
behaviour?
(b) Organisational behaviour encompasses thinking and research from

various disciplines Explain.
43
(c) Highlight the components of organisational behaviour.
a). Organisational behaviour can be described as a field of study
that attempts to investigate the impact of individuals, groups
and structure on behaviour within organisation for the purpose
of understanding, predicting and controlling such behaviour,
and achieving organisational effectiveness.
It is important for executives in both private and public organisations
to acquire the knowledge of organisational behaviour for the following
reasons:
- understand behaviour in the organisation.
- formulate and implement strategy effectively.
- manage the group effectively.
- manage change effectively.
- resolve leadership problems in work situation.
- cope with management of conflict.
- cope with stressful situation.
- communicate effectively.
There are many disciplines that make up organisational behaviour as

follows:
- Psychology:- It is the scientific study of behaviour.
- Sociology: It is the scientific study of society, including its
structures, functions
and processes.
- Social Psychology: This focuses on interpersonal behaviour.
- Anthropology: It is the science of man and its activities.
Anthropology could be
either physical anthropology or cultural anthropology.
44
Components of organisational behaviour include:
- The individual
- The Group
- Organisation as a total system.
The individual component is based on the assumption that the smallest
unit of an organisation remains the individual.
The Group: Behaviour is well appreciated, when viewed as a group
than when it is assessed on an individual basis.
Organisation as a total system: The organisation can be viewed as the
highest unit. The behaviour of an organisation is greater than behaviour
of each group within the organisation
QUESTION 3
Section B Answer question 2 and any other three questions from this
section
Question 2 (Compulsory)
Chukwu is a cashier at JustriteSupermarket. Each day he faces long
queues, time pressure, complaint from customers about high prices, and
cash register errors, but these events did not trouble him. He enjoyed
meeting people. On the other hand, Tunde, a cashier at an adjourning
counter, has difficulty with the complaint and pressure he receives. He
began to make mistakes and get into arguments. He seemed nervous.
Finally, he asked for transfer to another part of the store.
(i) Identify the personality of Tunde and Chukwu
(ii) Highlight the characteristics of each type of personality.
i) Chukwu has Type B personality
ii) Tuned has Type A personality
Characteristics of Type B personality
45
This type of personality:
▪ Does not suffer from a sense of time urgency
▪ Does not feel the need to discuss their achievement unless
demanded by the situation.
▪ Can relax without any sense of guilt
▪ Not interested in exhibiting their superiority at any cost
Type A personality Characteristics

This type of personality:
▪ Always like to do more two or more thing at once
▪ Find it difficult to cope with leisure time
▪ Are observed with number
▪ Very important with the rate at which most events taken place.
46
CHAPTER 2
CRITICAL ISSUES FACING THE WORKFORCE:
MANAGERS VS ETHICAL ISSUES

After reading this chapter, students should:
1. Be exposed to issues relating to ethics in organisation
2. Understand how managers should mediate between employees
and ethical matters
3. Learn how to manage organisational problems in a way that
confer dignity on members of staff.
2.1. INTRODUCTION
With the changing demographics of today’s workplace, the role of the
manager is ever evolving and the demands on their all-encompassing
role ever increasing. Managers are now facing a multitude of
challenges; trying to maintain high levels of productivity in a
competitive business climate and ensuring their workforce is engaged
and healthy. Traditionally, managers were required to plan, organise,
coordinate and achieve specific goals. However, due to the changing
work environment, they are now also required to be inspirational
leaders and obtain the most from their people. Good communication
and motivation skills, the ability to bring out the best in people and
promoting staff engagement are just some of the skills necessary to
progress as a manager today. Not only are managers expected to be
great leaders, there are also a number of other challenges they face.
1. Supporting Employees
When having to address issues such as staff behaviour, poor performing
staff members or staff reviews, managers should be able to lean on
someone for support and advice. The first step is often just to stop,
47
listen and understand the situation. Something managers can
sometimes forget when they find themselves in difficult situations.
Managers think they need to have all the answers and at times are
unsure of how to listen and communicate about behaviour (Akintayo,
2009a). Organisations may offer an independent service to give
guidance and support to help empower managers which is a particularly
useful tool for providing additional support to managers in demanding
situations.
2. Managing Organisational Changes

Restructuring and redundancy is a difficult and stressful time for all
concerned with employees often faced with new and challenging tasks.
Redundancy is one of the toughest changes an organisation has to
manage. Not only are the effects felt by the employees being made
redundant, but also by employees who are staying. Managers making
the difficult decisions and delivering the news to employees can benefit
from talking through different approaches. Managers can seek the
support of a consultancy team to assist through this time and discuss
how to communicate and motivate the employees who are staying. It is
vital that managers explain why a role is being made redundant, what
the consequences for the members of staff member are, and the
immediate next steps being taken to handle the transition.
3. Maximising Wellbeing
Today’s managers are expected to nurture and train staff and bring out
the best in all employees and they often need to acquire these extra
skills to be able to do so. With one in five people likely to experience a
mental health issue in their lifetime, managers increasingly have to
manage employees who are experiencing mental health concerns.
There are a number of tailored workplace programs available that can
educate a manager on how to support and maximise individual and
48
workplace wellbeing. Remember, you need to invest in the wellbeing
of your staff to maximise productivity.
4. Improve Communication Skills

In today’s competitive landscape, workplace conflict is unfortunately
inevitable as the pressure of getting the job done can create tension
between co-workers and management. Conflict must be properly
managed to reduce the risk of escalation and strong communication
skills are the most effective tool to do so. Understanding causes and
types of conflict can help choose the best approach. Communicating
effectively is essential to negotiating and managing conflict. A quick
intervention can help reduce staff turnover, productivity loss and
absenteeism (Akintayo, 2009b).
5. Leading Through a Crisis

Effective crisis management can be vital in today’s business
environment; a company’s reputation may depend on it. As crises such
as workplace accidents and natural disasters are not frequent
occurrences, managers may be unaware how best to manage the
emotional impact of these situation if they occur. Critical incidents are
usually overwhelming for everyone and knowing the right things to say
and do will help employees to recover and cope more quickly. This is
helpful in restoring calm and reducing the longer term impact on
workers and helping return the workplace to its pre-crisis state as soon
as possible. Effective intervention is always best and will ensure a
quick return to usual productivity levels.
CHAPTER SUMMARY
The chapter discussed how to support employees, managing
organisational changes, maximising wellbeing, improvement of
workers communication skills and finally leading through crisis.
49
REFERENCES
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Communication Styles
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50
REVIEW QUESTIONS
QUESTION 1
A New File Cabinet
Jane Hall, Director of Market Research for the Summertime Fabrics
Company looked out of her office to see why her secretary had not
responded to the telephone - flashing signal. She was surprised to see
three executives hovering around the secretary, obviously discussing
some matter of great importance. After three-quarters of an hour had
elapsed, the men left and Miss Hall was able to call her secretary. When
asked what the commotion was about, this is the story the secretary
told:
Since we have expanded the use of our sales office
customer questionnaires, I am beginning to accumulate
them in droves. They no longer fit in the file cabinets we
have in the office, so I asked Mr Frank, the office
Manager, if I could have another file. He said he would
call purchasing and request that a new one be ordered.
Apparently they told him they could not authorise the
purchase without the approval of the Systems and
Procedures Department. Mr Frank then called them and
they sent Mr Otto over with a slide rule and lots of tables
that tell you what shapes and sizes are most efficient for
storing things. As Mr Otto and Mr Frank were
interviewing me on just what items I wanted to keep in
the files, their size and how often I would be using them,
Mr Helpton came down from Purchasing. He said that
frequently the most scientific file either was not readily
available or was much higher in cost and he usually
found it moved matters along if he could get the Systems
people to compromise on a unit they regularly order from
a reliable supplier.
51
Mr Frank stayed in the conversation because he said that
while he did not want his budget to be charged with any
fancy, unnecessary equipment, he wanted me to have the
right cabinet now, when I needed it, it took the three of
them the good part of an hour to come to an agreement
on what kind of file I should have.
What organisation problems do you see here?

What is their source?
What organisation changes could be introduced that would eliminate or
minimise this type of situation?
(a) The organisation problems here are planning and inadequate
amenities
(b) The source is lack of organizational structure, clear division of

labour and budget and
budgeting control.
(c) The organisation changes to be introduced are introduced are

individual employees
submitting the requirements to be coordinated by a central
division and also should be in the yearly budget.
QUESTION 2:
Organisational politics is often criticized as been detrimental to men-
ale, a contributor to inferior performance and the genesis of negative
feedback in the forms of backstabbing and finger pointing. However,
organisational politics can be constructive.
52
(a) What are the things that each one of us can do to enhance the
constructive nature of political interactions with bosses, peers
or subordinates?
(b) What are the sources of politics and political behaviour in

organisations?
(c) What are the strategies for managing the politics and paradoxes
associated with organisational change programs?
(a) (i) Create reciprocal obligations by providing constructive
feedback, expressing sympathy or concern, or inquiring
about a family situation.
(ii) Be aware of others' job responsibilities so that assistance
can be given when appropriate.
(iii) Present alternative solution when problems and issues are
being discussed
(iv) Let others know the bad news that you have to share
before they hear it from someone else.
(v) Understand the other party's preferred means of
communication.
(b) Political Activity can result from:

(i) Lack of organisational vision and mission
(ii) Unclear organisational goals
(iii) Poorly defined performance standards and
measures
(iv) Poorly coordinated organisational units and work
teams
(v) Poor planning of major change programs
53
(c) (i) Everyone must have a voice, but cynics must be silenced
(ii) Without taking their eyes off the horizon, leaders must
watch where they step
(iii) Change is scary, but people volunteer for dangerous tasks
only when they feel
54
CHAPTER 3
LEADERSHIP IN MODERN ORGANISATIONS
After reading this chapter, students would be exposed to:
1. Critical functions of management as they inform the sharp contrast
between leading and managing.
2. Different forms of leadership in organisations with their respective

pros and cons.
3. Salient issues that can make or mar leadership and how such issues
can be managed
3.1. INTRODUCTION
Leadership is crucial to any successful organisation. Robbins & Judge
(2009: 419) explained that leadership is the ability to influence a group
toward the achievement of a vision or set of goals.” This definition
implies that leadership provides direction without which the attainment
of group objectives would be difficult if not impossible, regardless of
the resources at the disposal of the organisation. Leadership is a
dynamic process, influenced by the changing requirements of the task,
the nature of the group itself and the personality of the individual
members (Cole, 2000: 334).
3.2. LEADING VS. MANAGING

Leadership is just one of the many assets a successful manager must
possess. Care must be taken in distinguishing between the two
concepts. The main aim of a manager is to maximise the output of the
organisation through administrative implementation. To achieve this,
managers must undertake the following functions as explained in
Robbins & Judge (2009:41):
55
• Planning – this is the process of defining goals, establishing
strategy, and developing plans to coordinate activities.
• Organising – this process involves what is to be done, who is to
do them, how the tasks are to be grouped, who reports to whom,
and where decisions are to be made.
• Leading – this function includes motivating employees,
directing others, selecting the most effective communication
channels, and resolving conflicts.
• Controlling – this entails monitoring activities to ensure that they
are carried out according to plan and then taking steps to correct
significant deviations.
As shown above, leadership is just one important component of a

manager’s skills; a manager cannot just be a leader, he also needs
formal authority to be effective. The points below illustrate ways in
which leadership is different from managing.
Differences in Perspectives
Managers think incrementally, whilst leaders think radically.
"Managers do things right, while leaders do the right things." This
means that managers do things by the book and follow company policy;
while leaders follow their own intuition, which may be of more benefit
to the company. A leader is more emotional than a manager. "Men are
governed by their emotions rather than their intelligence." This
quotation illustrates why teams choose to follow leaders.
Leaders stand out by being different. They question assumptions and

are suspicious of tradition. They seek out the truth and make decisions
based on facts, not prejudice. They have a preference for innovation.
56
Subordinate as a Leader
Often with small groups, it is not the manager who emerges as the
leader. In many cases, it is a subordinate member with specific talents
who leads the group in a certain direction. Leaders must let vision,
strategies, goals, and values are the guide-post for action and
behaviour rather than attempting to control others.
When a natural leader emerges in a group containing a manager,

conflict may arise if they have different views. When a manager sees
the group looking towards someone else for leadership, he may feel his
authority is being questioned.
Loyalty
Groups are often more loyal to a leader than a manager. This loyalty is
created by the leader taking responsibility in areas such as:
• Taking the blame when things go wrong.
• Celebrating group achievements, even minor ones.
• Giving credit where it is due.
The leader must take a point of highlighting the successes within a
team, using charts or graphs, with little presentations and fun ideas.
Leaders are observant and sensitive people. They know their team and
develop mutual confidence within it.
The Leader Is Followed; the Manager Rules

A leader is someone who people naturally choose to follow, whereas a
manager must be obeyed. A manager may only have obtained his
position of authority through time and loyalty given to the company,
not as a result of his leadership qualities. A leader may have no
organisational skills, but his vision unites people behind him.
57
Management Knows How It Works
Management usually consists of people who are experienced in their
field, and who have worked their way up the company. A manager
knows how each layer of the system works and may also possess a good
technical knowledge. A leader can be a new arrival to a company who
has bold, fresh, new ideas but might not have experience or wisdom.
Managing and leading are two different ways of organising people. The
manager uses a formal, rational method; the leader uses passion and
stirs emotions.
3.3. TRANSACTIONAL VS. TRANSFORMATIONAL

LEADERSHIP
Bernard Bass and colleagues developed the idea of two different types
of leadership, transactional that involves exchange of labour for
rewards and transformational which is based on concern for employees,
intellectual stimulation, and providing a group vision.
Understanding the difference between transactional and
transformational leadership is vital in getting the whole concept of
transformational leadership theory. As a starting point, let us review
our everyday life. In general, a relationship between two people is
based on the level of exchange between them. Exchange need not be
money or material; it can be anything. The more exchange they have,
the stronger the relation.
A manager expects more productivity from employees in order to give

good rewards. A relationship in which people give something in
exchange for another is described as ‘transactional.’ In politics, leaders
announce benefits in their agenda in exchange for the votes of the
citizens. In business, leaders announce rewards in turn to encourage
productivity. These relations are all about requirements, conditions and
58
rewards (or punishment). Leaders who manifest this kind of
relationship are called ‘Transactional Leaders’.
Sometimes people do things for others without expecting any kind of

reward, for instance, mom’s dedicated service to her child. A mother
doesn’t expect anything from the child and the service she provides in
raising the child is unconditional, dedicated, committed. The mother
plays a major role in shaping the child life. This type of relation is
described as ‘transformational’. Transformational leaders are often
self-sacrificing, work toward a common goal with followers; put
followers in front and develop them. They inspire followers to
transcend their own self-interests in achieving superior results
(Akintayo, 2007)
Initial studies portrayed transactional Leadership and transformational

Leadership as mutually exclusive, but Bass viewed the transactional &
transformational leaderships as the extremes of a continuum rather than
exact opposites. The transformational leadership style is
complementary to the transactional style and likely to be ineffective in
the total absence of a transactional relationship between leaders and
subordinates.
The following table shows the difference between transactional and

transformation leadership.
TRANSACTIONAL TRANSFORMATIONAL
LEADERSHIP LEADERSHIP
*Leadership are aware of the * Leaders arouse emotions in their
link between the effort and followers which motivates them to
reward act beyond the framework of what
59
may be described as exchange
relations
*Leadership is responsive and * Leaders motivate followers to
its basic orientation is dealing work for goals that go beyond self-
with present issues interest
* Leaders rely on standard * Leadership is proactive and
forms of inducement, reward, forms new expectations in
punishment and sanction to followers
control followers
* Leaders motivate followers * Leaders are distinguished by
by setting goals and promising their capacity to inspire and
rewards for desired provide individualized
performance consideration, intellectual
stimulation and idealized influence
to their followers
* Leadership depends on the * Leaders create learning
leader’s power to reinforce opportunities for their followers
subordinates for their and stimulate followers to solve
successful completion of the problems
bargain.
* Leaders possess good visioning,
rhetorical and management skills,
to develop strong emotional bonds
with followers
In conclusion, leaders emerge from within the structure of the informal

organization. Their personal qualities, the demands of the situation, or
a combination of these and other factors attract followers who accept
their leadership within one or several overlay structures. Instead of the
60
authority of position held by an appointed head or chief, the emergent
leader wields influence or power. Influence is the ability of a person to
gain co-operation from others by means of persuasion or control over
rewards. Power is a stronger form of influence because it reflects a
person's ability to enforce action through the control of a means of
punishment.
A leader is a person who influences a group of people towards a specific

result. It is not dependent on title or formal authority. (Elevos,
paraphrased from Leaders, Bennis, and Leadership Presence, Halpern
&Lubar.) Ogbonnia (2007) defines an effective leader "as an individual
with the capacity to consistently succeed in a given condition and be
viewed as meeting the expectations of an organization or society."
Leaders are recognized by their capacity for caring for others, clear
communication, and a commitment to persist. An individual who is
appointed to a managerial position has the right to command and
enforce obedience by virtue of the authority of their position.
However, she or he must possess adequate personal attributes to match

this authority, because authority is only potentially available to
him/her. In the absence of sufficient personal competence, a manager
may be confronted by an emergent leader who can challenge her/his
role in the organisation and reduce it to that of a figurehead. However,
only authority of position has the backing of formal sanctions. It
follows that whoever wields personal influence and power can
legitimize this only by gaining a formal position in the hierarchy, with
commensurate authority. Leadership can be defined as one's ability to
get others to willingly follow. Every organisation needs leaders at every
level.
61
CHAPTER SUMMARY
The chapter discussed leading versus managing, the differences
between transactional and transformational leadership and in
conclusion the global trend makes it inevitable to have visionary
leaders in organisations
62
REFERENCES
Akintayo, O. A (2007).Gender and Leadership.African Journal of
Technology Policy.
(Journal African Du Prinscipe De La Technologie) Vol
2, No. 1. pp 165-191.
Comparison studies of different transformational authors-Bass,

Cacioppe, Gronn,
Huges .et.al, Propper&Zakkai by VanishaBalgobind in “
The impact of Transformational Leadership on
Subordinate
Job Satisfaction” dissertation work-June 2002
Cole G. A. (2000) Personnel Management (4th edition) New York:
Gosport, Ashford Colour Press
Eneanya, A. (2009) Principles and Practice of Personnel
Administration in Nigeria Lagos: Concept Publications
Lyman W. Porter & Gregory A. Bigley: Motivation and Leadership at
work.(6th edition) New York: McGraw-Hill, 1996
Robbins, S. & Judge, T (2009) Organizational Behavior (13th edition)
New Jersey: Pearson Education International
Transformational Leadership by Colonel Mark A. Hormrig 21 Dec
2001. Retrieved from
http://leadeship.au.af.mil/documents/homrig.htm as on Aug
1st, 2008
63
REVIEW QUESTIONS
QUESTION 1
Dr. Pam Pam was the administrator of Life gate community hospital.
The controller, Mr. Nightingale reports directly to him and he directs
the financial affairs of the hospital. Nightingale general attitude was to
be a tight fisted guardian of funds. He was rigid in attitude, not wanting
to approve any action that was a departure from routine or a variance
from policy. The differing attitudes of two men had led to conflicts in
the past, and on two occasions. Pam Pam had warned, ‘if you cannot
follow my order, Nightingale I am going to fire you’.
Required:
(i) Discuss how contingency model of leadership applies to
leadership styles of Dr. Pam Pam and Mr. Nightingale.
(ii) Analyze the peculiar characteristics of the two leaders.
(i) Fiedler contingency model (Fred Fiedler 1964) developed the
first comprehensive contingency model for leadership. He
proposed that organizational performance is dependent upon
the leaders' style of interacting with the subordinates and the
situational favourableness.
Fiedler studies led him to conclude that leaders practiced one
of two styles namely.
- Task-oriented leadership
- Relationship oriented leadership\
Dr. Pam Pam in this situation could be described as a leader
who has adopted a style that favour his personality.
Mr. Nightingale on the other hand is a type of leader that
believe in following procedures and rules. He is a type of leader
that favour good leader member relations.
64
In short Fiedler concluded that the better the manager-
subordinate relations the more
highly structured the job, the strong the position power and the
more control or influence the leader has.
(ii) The peculiar characteristics of the two leaders

- Mr. Pam Pam does not believe in - observing rules and
policies
- Mr. Nightingale always prefers to observe the rules and
policy of the
- Organisation Pam Pam is a task structured leads unlike
Nightingale.
- Pam Pam does not have regard for other people's opinion.
- Pam Pam believes in master-servant relationship.
Candidate may also discuss other characteristics.
QUESTION 2
INSPIRING OTHERS - THE LANGUAGE OF LEADERSHIP
While strategic vision is considered an integral part of effective
leadership, the leader's ability to communicate the vision is crucial. The
era of dictator management is being replaced by inspirational
leadership. There are some important keys to being an effective
transformational leader. The first element is to have a meaningful
organisational vision. Next, the language of leadership must be able to
generate acceptance and accomplishment of the mission.
Getting the message across requires a mission centred around

intrinsically appealing goals with culturally important meanings. Four
messages need to be communicated. These include the significance of
the mission, why the mission exists, key antagonists, and why it will
succeed.
65
In describing the goals, important corporate values should be
emphasized through the use of stories, analogies and metaphors. The
message should remain simple and the important tenets should be
repeated. In all communications, genuine emotions should be used to
emphasize importance. The leader must be perceived as being credible
and having expertise on the subject. The language of leadership must
not be used to screen out problems or make goals seem more possible
than they really are.
(a) Effective followers are team members who partner with
organizational leaders to create the organization's vision and to
implement strategies and goals.
Effective followers have the following competencies:
(i) Ability to self-manage
(ii) Organisational commitment
(iii) Integrity, credibility and honesty
(iv) Competence and focus
(v) Versatility
(vi) Job and task ownership
(b) Behaviour-focused strategies are:

(i) Self observation
(ii) Self-set goals
(iii) Management of cues
(iv) Rehearsal
(v) Self-reward
(vi) Self-punishment/criticism
Cognitive-focused strategies are:

(i) Build natural rewards into tasks
66
(ii) Focus thinking on natural rewards
(iii) Establish effective thought patterns
(c) Contemporary leadership competencies draw on classical

leadership roles. Their importance has increased because
markets and competition are continually changing,
organizations are becoming increasingly complex and
workforces are becoming better educated and more
experienced.
Contemporary leadership competencies include:
• Visioning
• Trust through empowerment
• Self-understanding through positive self-concept and
• Meaning through communication
67
CHAPTER 4
UNDERSTANDING CORPORATE CULTURE
4.0. LEARNING OBJECTIVES

1. Discuss culture as a superset and organisational culture and corporate
culture as subsets
2. Understand how some elements of organisational culture influence

the managers’ decision and their relational dynamism with other
members of staff and neighbouring communities
3. Discuss theories of organisational culture and their relevance to

contemporary understanding of organisational behaviour
4. Understand roles and types of communication in organisational
formation
4.1. INTRODUCTION
Culture is the habitual way of doing things that is passed on from
generation to generation within a society. Culture is manifest in the
norms, values, beliefs, and certain expectations around which the
society is organised. Organisations also have a culture, that is, a way of
doing things with which employees are supposed to identify and also
reflect in their work habits. This culture is also known as corporate
culture.
However, corporate culture is a set of characteristics that define a

business. It involves employee attitudes, standards (policies and
procedures), and rites and rituals. The culture of a company is
connected to the characteristics found in the surrounding society, but it
also has some traits, such as hierarchy system, that are unique to the
68
organization. It can be negative, neutral, or positive and although some
businesses portray corporate culture as static, in most cases, it changes
over time. This culture encompasses values and behaviours that
contribute to the unique social and psychological environment of an
organisation. According to Needle (2004),organisational culture
represents the collective values, beliefs and principles of organisational
members and is a product of such factors as history, product, market,
technology, strategy, type of employees, management style, and
national culture; culture includes the organisation's vision, values,
norms, systems, symbols, language, assumptions, beliefs, and habits.
Business executive Rosauer (2013) developed what he refers to as an

actionable definition of organisational culture, where he asserts that
organisational culture is an emergence; an extremely complex
incalculable state that results from the combination of a few simple
ingredients. In his Three Bell Curves: Business Culture Decoded,
Rosauer outlines the three manageable ingredients that guide the
culture of any business.
Ingredient #1 - Employee (focus on engagement)

Ingredient #2 - The Work (focus on eliminating waste increasing value)
waste
Ingredient #3 - The Customer (focus on likelihood of referral).

The purpose of the Three Bell Curves methodology is to bring
leadership, their employees, the work and the customer together to
focus without distraction, leading to an improvement in culture and
brand.
69
Ravasi and Schultz (2006) wrote that organisational culture is a set of
shared assumptions that guide what happens in organisations by
defining appropriate behaviour for various situations. It is also the
pattern of such collective behaviours and assumptions that are taught
to new organisational members as a way of perceiving and, even,
thinking and feeling. Thus, organisational culture affects the way
people and groups interact with each other, with clients, and with
stakeholders. In addition, organisational culture may affect how much
employees identify with an organisation.
This chapter will further discuss ways in which employees get to be

socialised into an organisation’s culture; how the impact of this culture
on employees and the organisation is measured in terms of actual
behaviour and decisions.
4.2. CORPORATE CULTURE

In tune with dictates of the democratic culture which also inform
industrial democracies, Hall et al (1982:189) gave an insight into what
it takes to show leadership in the new industrial era as it informs the
corporate culture. According to them, the corporate climber must have
or find a heart. In their view the industrial leader is driven, not to build
or preside over empires, but to organise winning teams, to be excited
by the chance to cut deals and to gamble. The new industrial leader is
not as hardhearted as the autocratic empire builder, nor is he as
dependent on the company as the organisation man. But he is more
detached and emotionally inaccessible than either. Above all, he
recognises that his work develops his head but not his heart.
In a study that spanned over six years, Hall et al (1982), set out to find
what motivates managers of corporations - what mix of ambition,
70
greed, scientific interest, or idealism are at work. How are managers
moulded by their work? What is the quality of their lives? What type
of person reaches the top (and which of them falls by the wayside)? In
their study investigating the aforementioned questions, Hall et al (1982)
established that the corporation is populated by four types of characters
as follows:
1. THE CRAFTSMAN: The craftsman in the view of Hall et al
(1982) holds traditional values, including the work ethic, respect for
people, concern for quality, and thrift. The view of craftsman
concerning work emphasised and interest in the process of making
something; in other words, he enjoys creating things. He views
others, co-workers as well as superiors, in the light of whether they
assist him in accomplishment of his craftsman-like job.
Many of the managers in the great corporate laboratories, such as
the Radio Mbaise fame and most entrepreneurs in the industrial city
of Aba, are craftsmen by character. Their virtues are admired by
everyone. Yet they are so absorbed in perfecting their own creations
even to the exclusion of broader corporate goals, that they are unable
to lead complex and changing organisations.
2. THE JUNGLE FIGHTER: Here we have a corporate manager

imbued with the lust for power. He experiences life and work as a
jungle where the rule is ‘eat or be eaten’, and the winners destroy
the losers. Here the observation goes that a major part of his psychic
resources are budgeted for his internal department of defence.
Jungle fighters tend to see their peers as either accomplices or
enemies, and their subordinates as objects to be used. Instances are
like what goes on in drugs industry of the Onitsha market, and the
Carnegie and FordCorporations of the United States.
Just like Vilfredo Pareto’s formulations, there are two types of
jungle fighters - lions and foxes. The lions are the conquerors who,
71
when successful, may build an empire. In the corporate world of
large industries, the day of the lions are seen to be virtually ended,
(hence the talk about post-Fordism in the current dispensation of
industrialism). On the other hand, the foxes are noted to make their
nest in the corporate hierarchy and move ahead by stealth and
politicking. The most gifted foxes are seen to rise rapidly in the
system by making use of their entrepreneurial skills. But in each
case they end up being eventually destroyed by those they had used
or betrayed as can be said of the Abiola dynasty or industries.
3. THE COMPANY MAN is known to base his sense of identity on

being part of the proactive organisation. At his weakest, he is known
to be fearful and submissive, seeking security even more than
success. At the strongest, he is concerned with the humane side of
the company, interested in the feelings of the people around him,
and committed to maintaining corporate integrity. In this realm, the
most creative company men often sustain an atmosphere of
cooperation and stimulation, but they tend to lack the daring to lead
highly competitive and innovative organisations. This can be said
of the growing but lacklustre operatives of Chief Pascal Dozie’s
leadership of such organizations as Diamond bank and MTN at its
early stage. The Otedolas, Dantatas, Dangotes and the
Iwuanyanwus, with pathological inclinations for government
patronage and protectiveness, also fall into this category.
4. THE GAMESMAN: This is a person who sees business as life in

general, and the career particular, in terms of options and
possibilities, as if he were playing a game. He likes to take
calculated risks and is fascinated by techniques and new methods.
The contest excites and hypes him up, and he communicates his
enthusiasm, energizing his peers and subordinates like the
72
quarterback on a football game. Unlike the jungle fighter, the
gamesman does not continue to build an empire or to pile up riches,
but to gain fame, glory, exhilaration of victory. His main goal is to
be known as a winner; his deepest fear is to be labelled as a loser.
Wale Adenuga’s conglomerate, Ibeto industries, the Coscharis
group and their likes, fall into this category.
The deeper one peers into the corporate world of today, the more
frequently one encounters the gamesman as the new corporate leader.
Operating in a kind of mixture rather than an ideal or pure type, the
gamesman often combines the traits of the gamesman with some
attributes of the company man. He is the team player who identifies
closely with the corporation. The gamesman reaches the top in a process
of social (in contrast to natural) selection. In other words, the companies
that excel tend to be run by people who are well adapted to fulfil the
requirements of the market and technology, and who create an
atmosphere that encourages productive work. Such executives, in turn,
are seen to stimulate traits in their subordinates that are useful to work,
while discouraging those that are unnecessary or that impede it. The
movement to the top also refines the character of the executive.
From the foregoing, therefore, there emerges a graphic image of the

corporate culture missed in psycho-structure. As pointed out by Hall et
al. (1982), any organization of work – industrial, service, blue or white
collar – can be described as a “psycho-structure” that selects and moulds
character. One difference between the psycho-structure of the modern
corporation and that of the factory is the finesse of fit required between
work and character. Managers must have character closely attuned to
the “brain work” they perform. Only a minimal fit is required to perform
simplified, repetitive tasks in a factory.
73
The gamesman’s character, which might seem a collection of near
paradoxes, in the views of Hall et al (1982), can best be understood in
terms of its adaptation to the requirements of the organization. The
gamesman is cooperative but competitive; detached and playful but
compulsively driven to succeed; a team player, but a would-be
superstar; a team leader, but often a rebel of sorts against bureaucratic
hierarchy; fair and unprejudiced, but contemptuous of weakness; tough
and dominating, but not destructive.
In conclusion, we observe that competitions and innovation in modern
business require these games-like attitudes; and of all the character
types, only the gamesman is seen to be emotionally attuned to the
environment.
4.3. EXPLORING CORPORATE CULTURE AND

MANAGEMENT MODELS
Several methods have been used to classify corporate culture. While
there is no single "type" of corporate culture – it varies widely from one
organisation to the other – commonalities do exist and some researchers
have developed models to describe different indicators of
organisational cultures. Some of them are described below:
1. HOFSTEDE’S CULTURAL DIMENSIONS MODEL
Hofstede(1980) looked for differences between over 160, 000 IBM
employees in 50 different countries and three regions of the world, in
an attempt to find aspects of culture that might influence business
behaviour. He suggested things about cultural differences existing in
regions and nations, and the importance of international awareness and
multiculturalism for their own cultural introspection. Cultural
differences reflect differences in thinking and social action, and even
in "mental programs", a term Hofstede uses for predictable behaviour.
Hofstede relates culture to ethnic and regional groups, but also
74
organizations, professional, family, social and subcultural groups,
national political systems and legislation, etc.
Hofstede suggests the need for changing "mental programs" with

changing behaviour first, which will lead to value change. Though
certain groups like Jews and Gypsies have maintained their identity
through centuries, their values show adaptation to the dominant cultural
environment.
Hofstede demonstrated that there are national and regional cultural

groupings that affect the behaviour of organiations and identified four
dimensions of culture (later five) in his study of national cultures:
• Power distance– Different societies find different solutions

regarding social inequality. Although invisible, inside
organizations power inequality of the "boss-subordinate
relationships" is functional and according to Hofstede reflects
the way inequality is addressed in the society. "According to
Mulder's Power Distance Reduction theory subordinates will
try to reduce the power distance between themselves and their
bosses and bosses will try to maintain or enlarge it", but there
is also a degree to which a society expects there to be
differences in the levels of power. A high score suggests that
there is an expectation that some individuals wield larger
amounts of power than others. A low score reflects the view
that all people should have equal rights.
• Uncertainty avoidance is the way of coping with uncertainty

about the future. Society generally does that with technology,
75
law and religion (though different societies have different ways
of addressing it), and according to Hofstede, organisations deal
with it with technology, law and rituals, or in two ways –
rational and non-rational, with rituals being the non-rational.
Hofstede listed some of the rituals as the memos and reports,
some parts of the accounting system, a large part of the
planning and control systems, and the nomination of experts.
• Individualism vs. collectivism –Hofstede raises the idea that

society's expectations of individualism/collectivism will be
reflected by the employee inside the organization. Collectivist
societies will have more emotional dependence on members in
their organisations; when in equilibrium, an organization is
expected to show responsibility to members. Extreme
individualism is seen in the US. In fact, collectivism in the US
is seen as "bad". Other cultures and societies than the US will
therefore seek to resolve social and organisational problems in
ways different from American ways. Hofstede says that a
capitalist market economy fosters individualism and
competition, and depends on it, but individualism is also
related to the development of the middle class. Some people
and cultures might have both high individualism and high
collectivism. For example, someone who highly values duty to
his or her group does not necessarily give a low priority to
personal freedom and self-sufficiency.
76
• Masculinity vs. femininity – reflects whether a certain society
is predominantly male or female in terms of cultural values,
gender roles and power relations.
• Long- Versus Short-Term Orientation – Societies with a short-

term orientation generally have a strong concern with
establishing the absolute Truth. They are normative in their
thinking. They exhibit great respect for traditions, a relatively
small propensity to save for the future, and a focus on
achieving quick results. In societies with a long-term
orientation, people believe that truth depends very much on
situation, context and time. They show an ability to adapt
traditions to changed conditions, a strong propensity to save
and invest, thriftiness, and perseverance in achieving results.
These dimensions refer to the effect of national cultures on

management, and can be used to adapt policies to local needs.
2. O'REILLY, CHATMAN, AND CALDWELL’S

ORGANISATIONAL CULTURAL PROFILE (OCP)
O'Reilly, Chatman& Caldwell (1991) developed a model based on the
belief that cultures can be distinguished by values that are reinforced
within organisations. Their Organisational Cultural Profile (OCP) is a
self-reporting tool which makes distinctions according to eight
categories – Innovation, Supportiveness, Stability, Respect for People,
Outcome Orientation, Attention to Detail, Team Orientation, and
Aggressiveness. The model is also suited to measure how
organisational culture affects organisational performance, as it
measures most efficient persons suited to an organisation and as such
organisations can be termed as having good organisational culture.
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Employee values are measured against organisational values to predict
employee intentions to stay, and turnover. This is done through an
instrument like Organisational Culture Profile (OCP) to measure
employee commitment.
3. DANIEL DENISON’S MODEL

Daniel Denison's model (1990) asserts that organisational culture can
be described by four general dimensions – Mission, Adaptability,
Involvement and Consistency. Each of these general dimensions is
further described by the following three sub-dimensions:
• Mission – Strategic Direction and Intent, Goals and Objectives
and Vision
• Adaptability – Creating Change, Customer Focus and
Organisational Learning
• Involvement – Empowerment, Team Orientation and
Capability Development
• Consistency – Core Values, Agreement,
Coordination/Integration
Denison's model also allows cultures to be described broadly as

externally or internally focused as well as flexible versus stable. The
model has been typically used to diagnose cultural problems in
organisations.
4. DEAL AND KENNEDY’S MODEL

Deal and Kennedy created a model of culture that is based on 4 different
types of organisations. They each focus on how quickly the
organisation receives feedback, the way members are rewarded, and the
level of risks taken:
i. Work-hard, play-hard culture: This has rapid
feedback/reward and low risk resulting in: Stress coming from
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quantity of work rather than uncertainty. High-speed action
leading to high-speed recreation. Examples: Restaurants,
software companies.
ii. Tough-guy macho culture: This has rapid feedback/reward

and high risk, resulting in the following: Stress coming from
high risk and potential loss/gain of reward. Focus on the
present rather than the longer-term future. Examples: police,
surgeons, sports.
iii. Process culture: This has slow feedback/reward and low risk,
resulting in the following: Low stress, plodding work, comfort
and security. Stress that comes from internal politics and
stupidity of the system. Development of bureaucracies and
other ways of maintaining the status quo. Focus on security of
the past and of the future. Examples: banks, insurance
companies.
iv. Bet-the-company culture: This has slow feedback/reward and

high risk, resulting in the following: Stress coming from high
risk and delay before knowing if actions have paid off. The
long view is taken, but then much work is put into making sure
things happen as planned. Examples: aircraft manufacturers,
oil companies
5. GERRY JOHNSON’S MODEL

Gerry Johnson (1988) described a cultural web, identifying a number
of elements that can be used to describe or influence organisational
culture:
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• The paradigm: What the organisation is about, what it does,
its mission, its values.
• Control systems: The processes in place to monitor what is
going on. Role cultures would have vast rule-books. There
would be more reliance on individualism in a power culture.
• Organisational structures: Reporting lines, hierarchies, and
the way that work flows through the business.
• Power structures: Who makes the decisions, how widely
spread is power, and on what is power based?
• Symbols: These include organisational logos and designs, but
also extend to symbols of power such as parking spaces and
executive washrooms.
• Rituals and routines: Management meetings, board reports
and so on may become more habitual than necessary.
• Stories and myths: build up about people and events, and
convey a message about what is valued within the organisation.
These elements may overlap. Power structures may depend on control
systems, which may exploit the very rituals that generate stories which
may not be true.
6. CHARLES HANDY’S MODEL

Charles Handy (1976) popularized Roger Harrison (1972)’swork of
linking organisational structure to organisational culture. The described
four types of culture are:
1. Power culture: concentrates power among a small group or a
central figure and its control is radiating from its centre like a
web. Power cultures need only a few rules and little
bureaucracy but swift in decisions can ensue.
2. Role culture: authorities are delegated as such within a highly-

defined structure. These organisations form hierarchical
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bureaucracies, where power derives from the personal position
and rarely from an expert power. Control is made by
procedures (which are highly valued), strict roles descriptions
and authority definitions. These organisations have consistent
systems and are very predictable. This culture is often
represented by a "Roman Building" having pillars. These
pillars represent the functional departments.
3. Task culture: teams are formed to solve particular problems.

Power is derived from the team with the expertise to execute
against a task. This culture uses a small team approach, where
people are highly skilled and specialised in their own area of
expertise. Additionally, these cultures often feature the
multiple reporting lines seen in a matrix structure.
4. Person culture: formed where all individuals believe

themselves superior to the organisation. It can become difficult
for such organisations to continue to operate, since the concept
of an organisation suggests that a group of like-minded
individuals pursue organisational goals. However some
professional partnerships operate well as person cultures,
because each partner brings a particular expertise and clientele
to the firm.
4.4 COMPONENTS OF CORPORATE CULTURE

1. Vision: A great culture starts with a vision or mission
statement. When they are deeply authentic and
prominently displayed, good vision statements can even
help orient customers, suppliers, and other stakeholders.
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2. Values: A company's values are the core of its culture.
While a vision articulates a company's purpose, values
offer a set of guidelines on the behaviours and mindsets
needed to achieve that vision.
3. Practices: Values are of little importance unless they are

enshrined in a company's practices.
4. People: No company can build a coherent culture
without people who either share its core values or
possess the willingness and ability to embrace those
values.
5. Narrative: Any organisation has a unique history a
unique story. And the ability to unearth that history and
craft it into a narrative is a core element of culture
creation.
6. Place: Whether geography, architecture, or aesthetic
design, place impacts the values and behaviours of
people in a workplace.
4.5. CORPORATE COMMUNICATION

The term 'communication,' has to do with conveying messages to
others. It is both a process (how do we communicate?) and a content
(what do we communicate?). In organisational behaviour,
communication connotes the use of symbols to transfer meaning of
information (Kelly, 1994:587). Akintolu (2008) states that the
instruments of communication include language, signs, body posture,
and gestures
Communication is the way management gets its job done.

Communication is important in transmitting what can be described as
the dominant culture which embodies the core values of the
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organisation to its employees or subunits. In the process of
communication, a message goes from the sender to the receiver by the
use of symbols, language and signs: the goal is either to change
behaviour, obtain information or to persuade and ensure understanding.
Corporate communication is a set of activities involved in managing

and orchestrating all internal and external communications aimed at
creating favourable point of view among stakeholders on which the
company depends. It is the messages issued by a corporate
organisation, body, or institute to its audiences, such as employees,
media, channel partners and the general public. Organizations aim to
communicate the same message to all its stakeholders, to transmit
coherence, credibility and ethic. Corporate communications help
organizations explain their mission and combine its many visions and
values into a cohesive message to stakeholders. The concept of
corporate communication could be seen as an integrative
communication structure linking stakeholders to the organisation.
Three principal clusters of task-planning and communication form the

backbone of business and the activity of business organizations. These
include management communication, marketing communication, and
organisational communication.
• Management communication takes place between management

and its internal and external audiences. To support
management communication, organisations rely heavily on
specialists in marketing communication and organisational
communication.
• Marketing communication gets the bulk of the budgets in most
organisations, and consists of product advertising, direct mail,
personal selling, and sponsorship activities.
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• Organisational communication consist of specialists in public
relations, public affairs, investor relations, environmental
communications, corporate advertising, and employee
communication.
4.6. THE COMMUNICATION PROCESS.
The communication process refers to ‘the steps between a source
and a receiver that result in transference and understanding of
meaning’. It can be illustrated as shown below in the adaptations from
Robbins & Judge, (2009: 387):
Sender Receiver
Message Encodin Message Message

channel received
to be sent g decodin
messag g
e
Feedback
It can adopt any of these approaches:

(a) The information approach or theory;
(b) The interpersonal approach; and
(c) The organisational approach
a) The Information Approach

This is concerned primarily with the transmission aspects of the
communication process. Specifically, the transmission consists of
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encoder (sender) and decoder (receiver) in terms of both their
functional roles and their contribution to the achievement of a given
objective. In other words, this approach is interested only in whether a
transmitted message is received or not.
b) Interpersonal Approach
This is the opposite of the information theory. The interpersonal
communication approach is behaviourally oriented. The focus is on
transferring information from one person to another and then effecting
behavioural change. It incorporates the psychological process
(perception, learning and motivation) on the one hand, and language on
the other. Listening sensitivity and non-verbal communication (body
language) are closely associated with this approach.
There must be both a sender and a receiver in order for interpersonal

communication to take place. The sender is obviously important to
communication; but so is the receiver who gives feedback to the sender.
The feedback must contain specific information. In this way, it helps
the sender to know what must be done to correct the situation.
c) The Organisational Approach
Communication within the organisational context often incorporates
the information and interpersonal approaches. It has two dimensions: i)
vertical and ii) horizontal.
i. Vertical Communication
Vertical communication can again be either downward or upward.
(a) The Downward System

This is portrayed as superior-subordinate communication. This could
be when top management communicates company policy to the rest of
the staff; a manager instructs line workers as to how to carry some
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tasks, etc. Here the emphasis is on the information being transmitted.
The subordinates may or may not be apprised of the rationale behind
the instruction, and their opinions are rarely, if ever, sought.
Downward communication does not need to be accurate, or accepted

by subordinates. For example, the salaries of chief executive officers
(CEOs) are often regarded as extreme (Newsweek September 13, 2010,
p. 25). This may offend junior workers who are often told why they
cannot get what the CEOs are being paid. So companies may not always
tell employees the truth in this regard. Also downward communication
needs not always be acceptable to the workers. It is usually the type that
is simply described as “order from above.”
This type of orientation promotes an authoritative atmosphere which

tends to inhibit the effectiveness of communication. Communicating
the rationale of the instruction or policy to employees can be, if
properly handled, greatly beneficial to the organisation. Downward
communication can face certain problems, such as being lost, distorted,
misinterpreted or ignored by organisational members.
b) The Upward System

Subordinates initiate this kind of communication. Its object can include
giving back a report back to superiors about a task that was assigned;
expressing a grievance, or effecting some kind of feedback. It is a
feature of the participative management style. The upward
communication system can be made more effective in an organization,
through:
▪ Grievance Procedure: This allows employees to make appeals
upwards beyond the immediate supervisor.
▪ Open-Door Policy: This is where the supervisor is approachable
and open for suggestion.
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▪ Counselling Questionnaire: This is confidential counselling.
▪ Exit Interview: This is for those who leave the organisation
▪ Participative techniques: This is the involvement of employees in
decision-making at junior board levels and management
committees.
(ii) The Horizontal (Interactive) Communication System

When an organisation becomes large, horizontal communication is the
most important medium. The horizontal flows of information (even in
a matrix structure) are only part of the communication process that
takes place across the organisation. Communication with peers can be
beneficial to the organisation if it is meant to support task co-ordination
to achieve overall goals. The following are reasons for adopting
interactive communication:
▪ Task Co-ordination: The departmental heads may meet monthly to
discuss how each department is contributing to the system's goals.
▪ Problem Solving: Members of a department may assemble to
discuss how they will handle a threatened budget cut in which case
they may employ brainstorming techniques.
▪ Information Sharing: Members of one department may meet with
the members of another department to give some new data.
▪ Conflict Resolution: Members of one department may meet to
discuss a conflict inherent in the department or between
departments. It is because classical structures have failed to meet
the needs of interactive communication that informal organisations
and groups contact one another on such issues.
4.7. RESPONSIBILITIES OF CORPORATE

COMMUNICATION
Major responsibilities of corporate communication includes the need
87
• to promote the profile of the company behind the brand.
• to minimize discrepancies between the company's desired
identity and brand features
• to delegate tasks in communication
• to formulate and execute effective procedures to make
decisions on communication matters
• to mobilize internal and external support for corporate
objectives
• to coordinate with international business firms
4.8. ISSUES IN COMMUNICATION

1. How We Communicate
Eneanya (2009:104-105) notes that executives have six general
methods of communicating up and down the line. These include:
▪ Direct verbal communication;
▪ Indirect verbal communication;
▪ Writing;
▪ Reports;
▪ Meeting Briefings; and
▪ Non-verbal Communication
(a) Direct Verbal Communication: In direct verbal communication,

the speaker can be in communication with one person or many people,
but at each stage, there can be interference which can distort or change
it. When an instrument is to be used to transmit messages,
communication is subject to distortion, especially when translation is
involved. The "instrument may be a mechanical object, such as
telephone, or the voice of a messenger. The latter is probably the .least
reliable as the thoughts of the human "instrument" are also involved.
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(b) Writing: Those who manage others will be required to
communicate in writing in addition to using of verbal communication.
A well written, easily understood, document is a permanent record of
the writer's thoughts, findings or requests. Assembled and arranged to
appeal to the reader, it can be invaluable. Communication in writing
can be presented in many different forms.
(c) Reports: A report can be in form of daily or long-term reports of a

patient's progress in medical care. It can be used as a legal document
and must be clear and unequivocal. Reports are provided to investigate
the standard of care, to report on progress or to make a case for more
resources. There are also statistical reports.
(d) Meetings (or Team) Briefings: These are an excellent means of

discussing work procedures, introducing changes, or resolving other
work-related issues.
(e) Non- Verbal Communication - Body Language: Before an

exchange of words takes place, the two people engaged in the exchange
will have made a rough assessment of each other by categorising
themselves into stereotypical sets. This assessment continues during
the subsequent verbal exchange and may confirm or change the initial
assessment. Stereotyping may be useful in that it enables an observer
to form an opinion and thus decide on a course of argument. It may
have negative consequence in that it sometimes hinders an objective
judgment of the other person, and thus prevent them from seeing
evidence that counteracts an initial assessment.
Body language includes ways in which we use gestures to our
disposition. When we frown, smile, nod, wink, and so on, we give the
other person an idea of our opinion. Body language may be misleading,
however. Gestures may have culture-specific meanings. For example,
89
thumbs-up has different meanings in different cultures (Schaeffer,
2005: 55).
2. Why We Communicate
Communication is needed:
i) To establish and disseminate the goals of an organisation;
ii) To develop plans for their achievement;
iii) To organize human and other resources in the most effective
and efficient way;
iv) To select, develop and appraise members of the organization;
and
v) To control performances.
3. How to Conduct Effective Communication

Communication can be effectively conducted in the following ways:
i. Wherever possible, use face-to-face communication, particularly
when a difficult message is being transmitted.
ii. It is usually helpful to reinforce verbal communication by written
communication.
iii. Make sure the message has been clearly understood. Do not say
"do you understand?" Say instead, "Can we go over what I have
just told you in case I have left anything out."
iv. Consider the personality of the listener and tailor the style of the
message to suit him or her.
4. Forms of Communication
There are different ways of communicating among which are:
(a) Oral: This is applicable to one-on-one communication, for example
small groups, committees, larger meetings, telephone training sessions
among others. For personal or individual issues, face-to-face
communication is the best, possibly preceded by a letter to alert the
other person. For work procedures or to introduce changes or resolve a
90
work related problem, meeting is preferable. Spoken communication
can be effective if well planned, sympathetically conducted, and
limited to ten people.
(b) Written: are letters, memos, notes, reports, research studies, notice
boards, texts on a computer screen. Written communication, being one
way, does not allow the recipient much opportunity to reply. Where a
large volume of information has to be conveyed, the written form
allows the reader to assimilate at his or her own pace. However, the
writer has to ask himself whether his audience is as interests correctly,
you will be conveying your own understanding and sensitivity to them.1
Communication is a vital part of any manager's work. A manager is, in

fact, at the hub of a communication network. He communicates to his
boss and other supervisors (upward communication). He communicates
with work peers and colleagues in other departments (horizontal
communication). He communicates downward to staff/subordinates
and other junior staff. Each contact made by a. manager requires a
different form of communication.
What a manager says to his boss, the language in which it is couched,
where and how it is conveyed, will differ from what he does to
subordinates or to other colleagues. To perform this variety of roles, he
needs to be able to express himself clearly; to be both a good mixer and
a good listener; to be aware, supportive, persuasive, above all, to be fair
and open, and to be prepared to talk to everyone in his network. In other
words, he must be able to manage the complex web of communication
that surrounds him. This is to avoid communication failure. Failure in
managerial communication often comes from the managers (senders).
1
What does this statement mean?
91
7. Communication in the Nigeria’s Civil Service
In the Nigerian civil service communication is carried out in the
following ways:
a) Circulars
b) Office Notices or Instructions
c) Correspondence (Letters)
d) Minutes of Meetings
e) Memoranda.
f) Executive Briefs
6. Communication Channels
The general principle of official channels of communication is for
officers to make their submission to their next superior officer, unless
otherwise stated. Where a directive is given by a higher authority,
submissions are made to him through officers of intermediate status.
This is to enable the higher authority benefit from the useful comments
made by such intermediate officers. Minutes sent through official
channels place the most senior officer's title first followed by other
officers in descending order of status, using the word "through," for
example, “Permanent Secretary,” through “the Director,” “Deputy
Director,” and so on. Papers routed upwards through official channels
are routed back in the same way to enable intermediate officers get
acquainted with decisions reached by the higher authority.
Other channels of communication are as follows:
a) Overseas Correspondence:
b) Cables and Telegrams:
c) Information and Communication Technology (ICT)
4.9 OPINION AND IMAGE SURVEYS

Opinion and image surveys are useful research instruments adopted by
organisations to judge attitudes and also to assess the possible effect of
92
the introduction of certain measures. The results of employee surveys
are particularly practical forms of upward vertical communication in
organisations. This kind of communication produces what is described
as a survey feedback which is “the use of questionnaires to identify
discrepancies among member perceptions; discussion follows, and
remedies are suggested” (Robbins & Judge, 2009: 665).
Since questionnaires are often forms of systematic questioning, they

provide a means of predicting the perceptions of employees, and
perhaps what changes they would like to see effected in an
organisation. Surveys are also of great value since managers cannot
possibly work on the oral responses of all the employees on a particular
matter. By analysing and drawing conclusions from the questionnaires,
though, they can formulate policies which are more likely to produce
desired results.
Judicious use of surveys can save managers valuable time in boardroom

meetings as to how certain policies might affect the work force.
However, surveys may also produce a feeling of participation in
decision-making on the part of the workers, and thereby motivate them.
This creates the impression of a democratic organisational culture.
According to Riggio (2003:328), democratic decision making is “a
strategy by which decisions are made by group members based on
majority voting.”
Implementing decisions on the basis of survey findings may not always

come to acting by the rule of numbers. A skilful questionnaire design
can help the managers answer crucial questions like “are people
listening?” can decision making, interpersonal relations, or job
assignments be improved?”, and so on. (Robbins & Judge, 2009: 664).
93
In this way, opinion and image surveys become very valuable in
managing organisational change, no matter how potentially difficult.
We may illustrate this with the case of an organisation that is
considering whether in meeting a certain production target, employees
in a particularly unit should be asked to work longer hours during the
normal workweek or be asked to come to work during the weekend.
The majority might indicate a certain option and have their way, so to
speak. Thoughtful mangers, though, would look for ways to formulate
a policy that would address the concerns of the minority to the extent
possible. In this way, all the employees feel a sense of belonging.
4.10. ACTUAL BEHAVIOUR AND DECISIONS

Actual behaviour and decisions reflect corporate culture in the sense
that it makes clear whether the managers really value the opinions of
the employees. Of course, mangers cannot always seek the opinion of
the employees in every matter. That might amount to abdication of
responsibility. The managers can always conclude that if a policy
failed, the failure can be blamed on the employees since the majority
wanted that policy anyway.
What managers will actually do even when the opinion of the

employees is unambiguous will depend on a whole range of factors.
For example, we cannot always expect an organisation to automatically
accede to workers’ demands for pay raises, or improved job design – a
whole set of variables may have to reviewed in order to bring that
about, including government policy with which the organisation must
comply.
To make matters clearer, Ajani (2008) identified four perspectives of

organisational behaviour. The three major perspectives are examined
below in the light of organisational behaviour and decisions:
94
• Systems Perspective – this perspective views an organisation as a
system that receives inputs from the external environment, and then
uses these inputs to adjust to the external environment in terms of
products, services, profit or losses, etc. If an organisation has to react
to a governmental demand of higher taxes, it may be able to very
little in meeting employees’ demands that impose financial
obligations.
• The Contingency Perspective – this perspective looks at the

relationship between two variables in terms of its effects on others.
An organisation might feel that an adjustment in job design may
require some far-reaching changes of the factory floor which the
company may not be ready to implement meanwhile.
• Interactionalism– this perspective, according to Ajani (2008)

contends that “simple cause and effect descriptions of organisational
phenomena are not enough.” This perspective is crucial in that it
factors in attitudes, perceptions, and so on. It calls on the managers,
for example, to consider whether an action is financial feasible or
not but on its possible effect on the employees. This is important
because the workers will ultimately decide what happens to the
organisation.
All these perspectives certainly have their merits. The point being made
is that if the dominant organisational culture is one that stresses the
importance of the employee, communication will be clear and
unambiguous, and the feedback process will genuinely seek to
understand employees’ feelings and react to it to the extent possible.
CHAPTER SUMMARY
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The chapter discussed corporate culture, exploring corporate culture
and management models, components of corporate culture, corporate
communication, the communication process, responsibilities of
corporate communication, issues in communication, opinion and image
surveys and finally on actual behaviour and decisions
REFERENCES
Akintolu, P. (2006) “Effective Communication as the Key to Success
in any Life Endeavour” in Business day, November 02,
2006.
Eneanya, A. (2009) Principles and Practice of Public Personnel
Hall, D.T., Bowen D.D. Lewicki, R.J. & Hall, F.S. (1982) Experiences
in Management and Organisational Behaviour New York: John
Wiley and Sons, Inc.
Newsweek (2010) “Stuffing their Pockets” September 13
96
Robbins, S. & Judge, T (2009) Organizational Behaviour (13th edition)
Schaeffer, R. (2005) Sociology (9th edition) New York: McGraw-Hill
Higher Education
REVIEW QUESTIONS
QUESTION 1
Ezeogwu was employed to work with the food service department of a
community hospital. The job for which he was employed required that
he works two days a week from 5am to 2pm. The other three days, he
will work from 8:30am to 5:30pm.
When he was employed, there was no information about the early work
schedule. He felt sure that if the early work schedule had been
mentioned to him, he would have heard it and, with that condition, he
would not have taken the job.
(i) Explain the communication problem in this situation.
(ii) How do you think the problem can be resolved?
(i) There are number of factors that could lead to
communication problems in the situation:
• Distortion or omission of information by sender.
• Overload i.e. too much information
• Perception bias, i.e. the receiver (Mr Ezeogwu) may
have heard what he wanted to hear.
• The information may have been misunderstood and
misinterpreted.
97
• Other factors could be personal barriers i.e. those
problems arising from differences in social racial and
educational backgrounds.
• Semantic barriers. This may arise from limitation in
symbols which we communicate.
(ii) The communication problems with Ezeogwu could be
resolved through the following methods
• By conducting communication in a conducive
environment.
• Good planning.
• Avoid the language barrier by reinforcing words with
gestures.
• Emotions should be controlled rationally.
• Ezeogwu should also listen actively, this would help in
the search for meaning.
CHAPTER 5
MANAGERIAL STYLES

1. Know the personality characteristics of individuals
2. Explain different styles of management and factors that
inform each style.
3. Understand the ways by which each organisation support their
employees towards career development.
98
4. Describe the various theories of leadership with respect to the
merits and weaknesses.
5. Know how to manage the work environment
6. Describe the qualities of an effective team leader
5.1. INTRODUCTION
Management styles are the methods of leadership that an administrator
usually employs when running a business. Depending on business
circumstances, a manager might need to employ more than one
management style in a more or less formal way to achieve the highest
degree of effectiveness in their role. A variety of management styles
exist, such as autocratic, paternalistic, laissez-faire, democratic,
informal, participatory, supervisory, etc., and a particular style might
be more suitable for a certain type of business or employee group than
another.
While the technical competence of an individual is crucial to the

effective discharge of his responsibility, his personal temperament is a
key component of his relationship with both his superiors and his
subordinates. This personal disposition could determine his career
progression and his path through the organisation, and this might
eventually become manifest in his leadership style when he becomes a
manager.
In this chapter, we will examine three important factors that can help
us understand managerial style. They are:
• Personality Characteristics
• Career Paths
• Leadership Styles
5.2. PERSONALITY CHARACTERISTICS
99
Personality characteristics that significantly bear upon individuals
include, but are not limited to,
• Achievement- Doing one's best in objective or difficult tasks and
achieving recognition
• Deference- Being agreeable to accepting the leadership of others
and avoiding unconventionality
• Orderliness- Organising one's work and habits and planning
ahead systematically
• Exhibition- Behaving so as to attract attention to one's self by
appearance, speech, and manner
• Autonomy- Doing as one chooses independently of others'
opinions and avoiding conformity
• Affiliation- Participating in friendships, sharing things with
friends, and forming attachments to them
• Sensitiveness- Analysing motives and putting oneself in other
people's shoes in order to understand their behaviour
• Neediness- Seeking encouragement and support from others and
appreciating being aided when in need
• Dominance- Being a leader who supervises or wields influence
over others
• Abasement - Feeling oneself blameworthy and inferior to others
and experiencing timidity
• Nurturance- Assisting those less fortunate and giving moral
support to others
• Change- Participating in new activities and fashions and liking
novelty in one's life
• Endurance- Remaining with a task until it is completed and
being able to work without being distracted
• Heterosexuality- Engaging in social activities with the opposite
gender and being interested in related matters
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It should be noted that these qualities are never all present in any one
individual in equal measure. People manifest these qualities to different
degrees. This illustrates the need for managers to be team players. Thus
they can work effectively with superiors or subordinates who exhibit
qualities different from theirs.
5.3. CAREER PATHS

What is a career path? Career path is the process used by an employee
to chart a course within an organisation for his or her career growth and
career development. Career path involves understanding what
knowledge, skills, personal characteristics, and experience are required
for an employee to progress his or her career laterally, or through access
to promotions and/or departmental transfers.
Important for career path is a personal development plan which details
all the positive changes an employee would like to make in their work,
character, and personality. It might include what the individual wishes
to improve, change, or achieve in their personal life (Business day,
September 14, 2010, p. 42).
Hence, career path requires an employee to take an honest look at his
or her career goals, skills, needed knowledge, experience, and personal
characteristics. It also requires the employee to make a plan to obtain
what is necessary in each of these areas to carry out his or her career
path. With a written career path plan, the employee can approach
Human Resources and his or her supervisor for assistance in making
the plan happen.
In organisations that have a formal process for career path in place, such
as performance development planning (PDP), the employee receives
some support and assistance in his or her efforts to develop a career
path. The performance appraisal, in some organizations, is also an
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opportunity for career path. Career path is also perceived in
organisations with a formal process, as having institutional support.
The process below shows how organisations can support employees in
their efforts to develop and pursue a career path.
Process
The recruitment process intended to be followed will be as detailed
below:
a) Sourcing: Source points will primarily include:
• Proprietary Database
• Specific and Targeted Head Hunting
• Referencing and Networking
b) Screening and Assessment: Resumes will be screened and short

listed based on the requirements from the client and the short listed
candidates will be assessed for the opening by identifying their
specific skills and background, interest in the opportunity, location
preferences and other essential information required before
submitting to the client.
c) Delivery & Follow up: Validated resumes will be submitted to the

client. Post submission will follow up with the client as well as
candidates for feedbacks and facilitation of the recruitment and
selection process. Our process will be an ongoing relationship
management throughout the entire cycle and beyond the selection
and joining process.
A classic example relating personality characteristics and vocational or

career inclinations is the work of Holland on personality and career
types which follows immediately.
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John Holland’s Theory of Career Choice
Holland, (1985) hypothesized that students whose personality types
match their academic and living environment will have higher level of
satisfaction than those whose personality types do not match their
environment. In the view of Holland, each academic major creates its
unique environment with different levels of competitiveness, classroom
size, faculty to student ratios, expectations, reputations, learning
formats and career opportunities. According to Holland, most persons
can be categorized as one of six personality types: realistic,
investigative, artistic, social, enterprising, and conventional. Each
environment is dominated by a given personality type, and typified by
physical settings posing special problems and stresses. In addition
Holland asserted that people search for environments which allow them
to exercise their skills and abilities, express their attitudes and values,
and take on agreeable problems and roles.
Further, the search for environments is carried on at different levels of

consciousness and over a long period of time. To a lesser extent,
environments select people through recruitments and friendships.
Finally, Hollands assumed that a person’s behaviour is determined by
an interaction between their personality and the characteristics of their
environment.
These assumptions are supplemented by several secondary

assumptions that can be applied to a person and an environment.
Consistency within a person or an environment occurs when the
primary elements of the personality or environment are similar.
Differentiation refers to environments or persons which are dominated
by a single type. In Holland’s study, it was determined that all
environments were differentiated. Congruence occurs when the
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person’s type matches the environmental type. Incongruence occurs
when the opportunities and rewards provided by an environment are
not understood by the individual.
Principally, Holland's theory can be summarised in six statements:

1. In our culture, most person are one of six personality types:
Realistic, Investigative, Artistic, Social, Enterprising, and
Conventional.
2. People of the same personality tend to "flock together." For
example, Artistic people are attracted to making friends and
working with Artistic people.
3. People of the same personality type working together in a job
create a work environment that fits their type. For example,
when Artistic persons are together on a job, they create a work
environment that rewards creative thinking and behaviour -- an
Artistic environment.
4. There are six basic types of work environments: Realistic,
Investigative, Artistic, Social, Enterprising, and Conventional.
5. People who choose to work in an environment similar to their
personality type are more likely to be successful and satisfied:
For example, Artistic persons are more likely to be successful
and satisfied if they choose a job that has an Artistic
environment, like choosing to be a dance teacher in a dancing
school -- an environment "dominated" by Artistic type people
where creative abilities and expression are highly valued as
shown below.
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6. How you act and feel at work depends to a large extent on your
workplace environment. If you are working with people who
have a personality type like yours, you will be able to do many
of the things they can do, and you will feel most comfortable
with them. How is this related to the scores you receive on the
Career Key?
7. It means that you probably should choose an occupation whose
type is the same as, or similar to, your personality type. For
example, imagine that your highest score on the Career Key is
for the Realistic type. Looking at the table below, you can see
that the most compatible job environment is Realistic. This
would suggest that you choose from the jobs that are in the
Realistic group. Or, you might choose from the jobs that fall in
the Investigative or Conventional category.
Compatible Work Environments

Your Personality Type Most Compatible
Realistic Realistic Investigative & Conventional
Investigative Investigative Realistic & Artistic
Artistic Artistic Investigative & Social
Social Social Artistic & Enterprising
Enterprising Enterprising Social & Conventional
Conventional Conventional Enterprising & Realistic
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Most people, in reality, are a combination of types -- like Realistic-
Investigative, or Artistic Social. Therefore, you will probably want to
consider occupations in more than one category.
At this point, it has become obvious that as personalities differ so do
jobs. In this wise, efforts has been made to match the proper
personalities with the proper jobs; hence we have the personality job-
fit theory of the six-personality-types model. This model states that an
employee's satisfaction with, and propensity to leave his job depends
on the degree to which the individual's personality matches his or her
occupational environment. The six major personality types as identified
in the works of J.L.
Holland can be categorise alongside their personality types, and sample

occupation as shown below:
Holland's Typology of Personality and Sample Occupations
S/N TYPE Personality Sample
Characteristics Occupations
1 REALISTIC: Shy, genuine, Mechanic,
Prefers physical persistent, stable, drill press
activities that conforming, practical operator,
require skill, assembly line
strength and worker,
coordination. farmer.
2 INVESTIGATIVE: Analytical, original, Biologist,
Prefers activities curious, independent. economist,
involving, thinking, mathematician
organizing and , news
understanding. reporter.
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3 SOCIAL: Prefers Sociable, friendly, Social worker,
activities that cooperative, teacher,
involve helping and understanding. counsellor,
developing others clinical
psychologist.
4 CONVENTIONAL Conforming, Accountant,
: Prefers rule, efficient, practical, corporate
regulated, orderly unimaginative and manager, bank
and unambiguous inflexible teller, file
activities. clerk.
5 ENTERPRISING: Self-Confident, Lawyer, real
Prefers verbal Ambitious, energetic, estate agent,
activities where domineering. public
there are relations
opportunities to specialist,
others and attain business
manager etc.
6 ARTISTIC: prefers Imaginative, Painter,
ambiguous and disorderly, idealistic, musician,
unsystematic emotional, writer, interior
activities that allow impractical. decorator.
creative expression
A further insight into the theory shows that satisfaction is highest and
turnover lowest where people in conventional jobs, their personality
and occupation are in agreement. Social individuals should be in
social jobs and conventional people in conventional jobs etc. The key
points of this model are that:
1. There do appear to be intrinsic personality differences among
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individuals;
2. There are different types of jobs; and
3. People in job environments congruent with their personality
type should be more satisfied and less likely to resign
voluntarily than people in incongruent jobs.
In summary, a person is most likely to choose a satisfying job if the
person chooses one that fits the personality type.
5.4. LEADERSHIP STYLES

The concept of leadership has been written about and researched more
than any other concept in human literature. Throughout history, it has
been recognized that leadership determines the failure or success of any
project. Leadership is the art or process of influencing people so that
they will strive willingly towards the achievement of group goals.
Leadership involves managing the performances of team members. It
is a sub-class of management, which in itself performs the functions of
creating, planning, organising, motivating, communicating and
controlling. Included within these functions is the necessity to lead and
give direction. Effective leadership gives direction to the efforts of all
workers in accomplishing organisational goals. Hence, leadership is
indispensable if an organisation is to be successful.
In looking at leadership, certain traits or qualities are used to define the

concept that makes it possible to distinguish leaders from non-leaders.
In this sense, Schresheim, et al (1978) defined leadership as “a social
influence process in which the leader seeks the voluntary participation
of subordinates in an effort to reach organisational objectives.
Tannembaun and Massarilg (1968), defined leadership as
“interpersonal influence towards the attainment of specific goals in
specific situations” the foregoing viewpoints, though not totally
sacrosanct shows that leadership is a social influence existing in a group
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process and it is aimed at the achievement of the groups objectives of
goals.
At this point, it becomes necessary for us to point out that, indeed

certain qualities go with leadership which distinguishes leaders from
non-leaders. This makes it possible to understand the categorisations
that distinguish such personalities as Dr. Nnamdi, Chief
ObafemiAwolowo, AlhajiAhmadu Bello alongside others like
AlhajiShehuShagari, Sir Ernest Shonekan, Dr Goodluck Jonathan etc.
In a similar vein, Nigerians also ruminates over the qualities associated
with such other individuals as Major Gen J.T. AguiyiIronsi, Gen
YakubuGowon, Gen. Muritala Mohammed, Gen MuhammaduBuhari,
Gen Ibrahim Babangida, Chief OlusegunObasanjo, and Chief
ChukwuemekaOdumegwuOjukwu. The key question which people
ruminate over regarding all these people borders on how omissions or
commissions emanating from their personality dispositions informed
the kind of influence they exercised over Nigerian people as it has
variously impacted on the historical march of the Nigerian nation either
positively or negatively. Some have exercised positive influences
depending on how people viewed their leadership qualities. It is in the
above light that we take a step further in this discourse by looking at
some leadership theories.
5.4.1. Leadership Theories

In discussing leadership theorises, there are basically, three major types
of which the Trait Theory is one of them .The others are Behavioural
Styles Theory, and the Situational Theory all of which were well
discussed by Asika (in Ejiogu et al, 1995:98-115). However, our focus
in this section is not exhaustive of theories of leadership, hence students
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are advised to read up other categories of leadership for a well-rounded
viewpoint.
Indeed, there are several distinct theoretical bases for leadership,
among which are:
(i) The trait theory;
(ii) The exchange theory;
(iii) The contingency theory;
(iv) The path-goal theory;
(v) The social learning theory; and
(vi) The behavioural theory (Sharkansky, 1978:4).
The Trait Approach

This approach generally considers the qualities of effective leadership.
Traits like intelligence, diplomacy, decisiveness, analytical ability,
competence, humility, integrity, positivity, etc., are seen as critical for
successful leadership. The trait theory has provided some descriptive
insight into what constitutes the quality of good leadership in an
organization.
In discussing the Trait Theory of Leadership, the point to be made is
that at its pupal stage, studies of leadership were premised on the notion
that leaders were born with certain characteristics or innate qualities
which we shall regard here as trait .What comes out clearly then is the
point that trait theory centre on the individual leaders personality and
characteristics that differentiates him from his followers. In this sense,
many past studies of leadership identified several traits believed to be
associated with successful or effective leadership.
Stogdill and Mannas (1948) identified five personality traits that are
seen to differentiate leaders from non-leaders. The personality traits
identified by them included
(a) intelligence
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(b) Dominance activity
(c) Self Confidence
(d) Level of Energy and activity,
(e) Task relevant knowledge.
Among all the traits mentioned above, intelligence was noted to have
the strongest correlations with leadership, and therefore the ability to
predict leadership strongly. The rest were noted to exhibit weak
correlation with leadership. However, in what seemed to be an
indictment of the style or procedure used by Stogdill and Mannas
(1948) arriving at their conclusions, Robert Lord and his associates in
1986 adopted a new approach in their study of leadership traits, and
came out with new conclusions. In the views of Lord and his group
(1986) most past studies on leadership failed to distinguish between
leadership ability and leadership effectiveness.
In view of the pitfall stated above, Lord and his associates in their study
tried to effect an improvement on previous studies of leadership traits
and thus came out with the observation that intelligence; dominance
and masculinity have strong correlation with leadership ability or what
is seen as good leadership. This perspective received greater
illumination from the study by Warren Bennis (1984) whose work
actually shifted attention from leadership ability to leadership
effectiveness. From an analysis of what he considered to be the traits
of 90 effective leaders, Bennis identified what was noted as four
competencies of effective leadership to include:
a) Management of attention which is the ability of the leaders to
attract and win the attention of others through their vision of,
and strong commitment to, organisational objectives.
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b) Management of meaning which entails a strong
communication ability through which a leader sells his or her
vision and ideas to the followers.
c) Management of trust, which connotes the ability of the leaders
to generate trust from their followers and manage it well.
d) Management of self which connotes a very strong self structure
and an appropriate apprehension about, or fear of failure.
From the above perspectives, one way of differentiating between

leaders and non-leaders is the relative strength or weakness of their
notion of Self Identity and Self Structure. Leaders are imbued with
definite approach to issues, exhibit Self-Confidence, and are not easily
influenced by outside pressures, (Asika, 1995:100).
The Exchange Theory

This theory emphasises that leadership is an exchange process between
the leader and followers. In other words, subordinates affect their
leaders' behaviour just as leaders’ behaviour affects subordinates. For
example, group productivity has a greater impact on leadership style
than leadership style has on group productivity.
The Contingency Theory

This approach sees leadership and its effectiveness or otherwise as
being affected by situations, such as:
(a) The Organisation: history, ownership, size, culture;
(b) The Staff'mind-set, age bracket, competence, willingness to
take risks;
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(c) The Task: technical, routine, complex, etc.
(d) The External Environment: laws, technology, population and
government, etc.
The Path-Goal Theory

The path-goal theory attempts to explain the impact that the leaders
behaviour has on the subordinates motivation, satisfaction and
performance. This can be achieved by the leader as follows:
a. Recognising and/or arousing subordinates' needs for outcomes
over which the leader has some control;
b. Increasing personal payoffs to subordinates for work-goal
attainment;
c. Making the path to those payoffs easier to travel by coaching
and direction;
d. Helping subordinates clarify expectancies;
e. Reducing frustrating barriers; and
f. Increasing the opportunities for personal satisfaction
contingent on effective performance.
By doing the above, the leader attempts to make the path to

subordinate's goals as smooth as possible. Moreover, to accomplish this
path-goal facilitation, the leader must use an appropriate style
contingent on the situational variables present.
The Social Learning Theory

The focus of a social learning is on the interactive nature of leadership.
In this approach, the leader and his subordinate have a negotiable
interactive relationship and are consciously aware of how they can
modify (influence) each other's behaviour by giving or holding back
desired rewards. This approach can be summarized as follows:
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i. The leader becomes acquainted with the macro and micro
variables that control his/her own behaviour.
ii. The leader works with the subordinate to discover the
personalised set of behavioural contingencies that regulate the
subordinate's behaviour.
iii. The leader and his subordinate jointly attempt to discover ways
in which they can manage their individual behaviour to
produce more mutually reinforcing and organizational
productive outcomes.
The Behavioural Theory

This approach concentrates on what leaders do, or fail to do especially
as it relates to workers and their work. Two major areas of leadership
behaviour have been identified. The first is based on the use of authority
by managers. This is often called task-oriented style: Is the leader
obsessed with work only? The second area investigates the concern
managers have for people: Is the leader only after staff welfare? This is
called the people-centred style. Does he pay attention to both variables
- task and people's welfare? Of course, behaviour is influenced both by
the leader's traits and environmental factors (Akintayo, 2014).
Indeed, behavioural theories as listed earlier in this pack constitute

another cadre of leadership theories which owed their emergence to the
noted inadequacies of trait theories in explaining any relationship
between personality traits and leadership effectiveness. One of such
noted failures as identified in Stogdill and Manna’s leadership trait
theory was that correlations found to exist between perceived
individual leadership abilities and the individual traits were wrongly
interpreted as correlations between leadership effectiveness and traits.
Also, the outcome of the Hawthorne studies which emphasized socio-
behavioural capacities of employees as determining group productivity,
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led to studies of possible linkage between leader’s behavioural styles
and group effectiveness, and the identification of three main leader
behavioural styles which included Democratic, Authoritarian, and
Laissez-Faire styles.
In due course, many other studies on leader behavioural styles emerged.

At this point, the focus of research moved away from emphasis on
leadership traits to the study of group behaviour. The desire now
became finding out what makes or could facilitate the survival of a
group and the attainment of their present goals or aims. Within this
realm of endeavour, the definition of leadership now centred on “all
those members” acts that aid in the development of the group and
accomplishment of the group’s task,” (Asika, 1995:100-101).
Part of the out outcome of such studies showed that leadership may be
performed by more than one group member. Also, the studies viewed
leadership as a quality that an individual may display or does not
display at all. Succinctly put, that leadership may be possessed in
varying degrees by group members.
Some of the earlier studies in tune with the foregoing, that is, on earlier
behavioural and group maintenance, attempted to isolate some of the
major group task and maintenance behaviours. Subsequently, those
behaviours that were found to be responsible member for moving
groups toward group task problems resolution included the following
procedures:
a. Classification of issues at hand
b. Summarising the contribution of members, and
c. Proposing new ideas and suggestions from members.
On another vein, those members’ behaviour that was adjudged to be
responsible for group maintenance and resolution of internal group
problems included:
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i. Adequate consideration of minority views;
ii. Constantly open channels of communication;
iii. Creation of avenues for expressing members feelings; and
iv. Avenues for mediating in group conflicts.
Through the behavioural theory, researchers have come up with
different classifications of managerial leadership styles.
For instance, studies on behavioural styles of leadership, such as the
ones by Lippit and White, identified three distinct behaviour styles of
leadership which affected productivity and member morale. Those
behaviour styles included Democratic, Autocratic (Authoritarian), and
Laissez-Faire styles of leadership, which are briefly discussed below:
A. DEMOCRATIC LEADERS
Leaders who demonstrate democratic traits are seen to encourage group
members to participate in decision-making. They also look forward to
having suggestions and flow of information from members, and they
avoid the act of selectively praising group members. Such leaders do
not display rigidness in the exercise of their powers.
B. AUTOCRATIC OR AUTHORITARIAN LEADERS:

Under the Autocratic style of leadership, we encounter a display of high
handedness and rigidity in their exercise of power and authority over
group members. Also, there is an excessive close supervision of group
members while at work which is laced with selective praise and
punishment of individual members as the occasion arises.
C. LAISSEZ-FAIRE LEADERSHIP STYLE

Under this form of leadership style, the leader is seen to isolate himself
from his superior and subordinates alike. He does not perform his
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normal leadership functions unless when specifically required to do so.
He does not have the initiative to praise or punish group members as
the occasion warrants.
The summary outcome of the studies is the understanding that the

behaviour and performance of group members differ substantially
under different leadership styles. In this sense, it is observed that
Democratic style enhances greater group cohesion and productivity
than the Laissez-Faire approach. In the same vein, the Autocratic
leadership style results in greater productivity than the Democratic
style but produces less quality output than the Democratic style. Also,
discontentment among members is noted to be highest under the
Autocratic style of leadership.
The further implication of the foregoing observations is that in the

absence of the leaders, productivity drops significantly under the
Autocratic style, and is seen to drop, slightly under a Democratic
leadership.
Democratic leadership is noted to record the least rate of absenteeism,
job termination and dropouts; it also records the least level of hostility,
aggressiveness, scape-goatism and apathy, all of which were seen to be
at their highest levels under the autocratic style of leadership.
However, submissiveness and a sense of dependency were noted to be

experienced more in autocratic leadership than in either the Democratic
or Laissez-Faire styles of leadership (Asika 1995:102).Below is a table
illustrating the three classical styles of leader behaviour by Krietnber,
(1986:463).
Authoritarian Democratic Laissez-faire
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Nature Leader retains all Leader delegates a Leader
authority and great deal of delegates a
responsibility. authority while great deal of
retaining ultimate authority while
Leaders assign responsibility. retaining
people to clearly Work is divided ultimate
defined tasks. and assigned on the responsibility.
Primarily a basis of Group
downward flow of participatory members are
communication. decision making. told to work
Active two-way things out
flow of upward and themselves and
downward do the best
communication they can.
Leader Primarily
denies horizontal
responsibility and communication
abdicates authority among peers
to group.
Primary Stresses prompt Enhances personal Permits self-

Strength orderly and commitment starters to do
predictable through things as they
performance. participation see fit without
leader
interference.
Primary Approach tends to Democratic process Group may
weakness stifle individual is time-consuming drift aimlessly
initiative in the absence
of direction
from leader
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Further discussions on leadership styles might be useful at this point as
it follows immediately.
5.4.2 Leadership Styles

White and Ronald (1953), identified three leadership styles - autocratic,
laissez-faire and democratic. Later studies expanded it to six which are
derived from different emotional, intelligence and competency settings,
which work best in particular situations and affect the organizational
climate in different ways (Coleman, 2000).
The six leadership styles enunciated by Coleman (2000) are:
(a) The Coercive Style

This "do what I say" approach can be very effective in a turnaround
situation, when there is a natural disaster, in crisis or when working
with problem employees. In most cases, coercive leadership has been
observed to inhibit the organization's flexibility and dampen employee'
motivation.
(b) The Authoritative Style

An authoritative leader takes a "come-with-me" approach. He states the
overall goal but gives people the freedom to choose their own means of
achieving it. This style works especially well when a business is adrift.
It is also effective when changes require a new vision or when a clear
direction is needed. However, it is less effective when the leader is
working with a team of experts who are more experienced than he is.
(c) The Affiliative Style
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The hallmark of an affiliative leader is a "people-come-first" attitude.
This style is particularly useful for building team harmony or increasing
morale especially team spirit, in a team, or to motivate people during
stressful situations. Its focus on praise can, however, allow poor
performance to go uncorrected. Affiliative leaders rarely offer advice,
thus they often leave employees in a quandary..
(d) The Democratic Style

This style impacts on the organisational climate, and it is not as high-
profile as one imagines. By giving workers a voice in decision-making,
democratic leaders build organizational flexibility and responsiveness,
and help generate fresh ideas. The style helps to build buy-in or
consensus or to get input from valuable employees. Sometimes
however, the price is endless meetings and confused employees who
feel leaderless.
(e) The Pace-Setting Style

A leader who sets high performance standards and exemplifies them
himself has a very positive impact on employees who are self-
motivated and highly competent. It is useful if the manager wants to get
quick results from a highly motivated and competent team. But other
employees tend to feel overwhelmed by such a leader's demands for
excellence - and to resent his tendency to take over a situation.
(f) The Coaching Style

This style focuses more on personal development than on immediate
work related-tasks. It works well when employees are already aware of
their weaknesses and want to improve performances or develop long-
term strengths or whenthey are resistant to changing their ways.
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(g) The Laissez-Faire Style
The leader in this style allows his subordinates to determine their own
direction and function without his involvement. He has no confidence
in his ability to lead and this makes it impossible for him to set goals
for the organisation. The leadership role is, therefore, performed by
anybody within the group that is willing to accept it. Since there is no
clear leader, productivity is generally low. This type of leadership
situation gives subordinates little or no interest in the way and manner
they perform their day-to-day duties, which eventually gives rise to low
morale and no teamwork co-ordination.
In leadership, the style that may be adopted by a leader depends on the
situation. The more styles a leader has mastered, the better. However,
being able to switch over from one style to another as situations dictate
is the best approach, so that if a style does not work, he can change it
before it is too late. It is important though that the leader should first
analyse the causes of failure. Such approach optimises business
performance.
5.5. MANAGING THE WORK ENVIRONMENT

Effective leadership entails managing the work environment so that
workers are motivated to work well as a team. Tampoe (1993: 49-45)
identified three primary motivators, other than money, that make
workers work well namely: personal growth, operational autonomy and
task achievement. Managers must therefore create business challenges
and personal development opportunities to satisfy these motivators.
They must provide positive feedback and create a sense of community.
Managing People's Knowledge (Talents)
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Leadership is more than management. It is about vision creating the
future and motivating others to succeed. Effective managers help their
organisations to succeed through exploitation of knowledge or talents.
Skyrme and Amidon (1997), shows that leaders who manage people's
knowledge effectively are:
a) Challenging: They challenge the status quo.
b) Visionary and inspiring: They have a vision of how knowledge
could transform their enterprise.
c) Clear in Communication: They have simple message,
reiterated in many different ways; they are example to inspire.
d) Involved: They participate in teams, network extensive, build
relations and attract support.
e) Leaders by example: They get involved personally and start
experiments.
f) Learners: They have a thirst for new knowledge; they lean
from both successes and failures.
Team Management and Networking

Leadership entails providing direction for a team – providing vivid
pictures of what the team is trying to achieve. This involves managing
the performance of team members in the form of series of tasks relating
to the internal dynamics of the group. These tasks include:
a. Reaching agreement on and communicating performance
expectations and standards;
b. Keeping performance on track;
c. Attending to the needs of team members;
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d. Resolving all issues (viz competition over vested interests, petty
rivalries, personality clashes etc.), this might be a threat to cause a
division among team members in the course of doing their work.
An effective leader is expected to serve as a bridge between one team

and another within and outside the organisation. He is expected to
manage the flow of information, resources and support to the team from
other teams and vice versa, to enhance cohesiveness and networking.
Networking of information for peoples' knowledge development is a
key success factor for organisational performance. In a study by
Luthans (1998:127-132), managers' over a four year period, successful
managers were found to have spent 48% of their time networking,
compared to other managers who did not, whose figure was only 8%.
As companies globalise and visualise, key capabilities are nurtured and
developed as employees work across international borders through
networking.
5.6. QUALITIES OF AN EFFECTIVE TEAM LEADER

An effective team leader is very essential for organisational
performance. Such leader is expected to have these qualities:
a. Technical Competence: A leader must possess technical
competence to a level that would enable subordinates respect and
recognise the standard of work required by his team.
b. Work Context: He should endeavour to acquire a thorough
understanding of the context in which the work of the team is being
carried out. This involves knowledge of the environment as well as
the circumstances surrounding the tasks at hand.
c. Acquaintance with Team Members: He needs to understand and
show concern for the needs and sensitivities of team members.
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d. Team Spirit: He needs to build team spirit and maintain internal
cohesion of the team.
e. Inspiration: He must continually seek ways to inspire the team.
f. Leadership by Example: He should need to lead by example and
not by precepts.
g. Authority: A team leader has to rely less on coercive power
inherent in office as a manager and focus more on achieving
compliance which comes from the respect and acceptance that team
members have come to have for leaders. .
h. Trust and Confidence: The team leader must engender trust and
confidence not only in his abilities, but in sense of fairness and
justice. He must have deep conviction and commitment of what he
does. In addition, he should have a strong belief in the vision of the
team or group and an unshakeable confidence and trust that the
team will realize its vision.
i. Sound Judgment: The leader must have the ability to appraise
situations thoroughly and not be afraid to confront facts that are
uncomfortable.
j. Support and Communication: The leader must communicate at
times of great impatience and sense of urgency. He must be
approachable; open to new idea: and supportive of his team even
in times of difficulty.
In conclusion, in this globalisation era in which companies and
organisations compete with the rest of the world, it is imperative for the
leader to inspire a shared vision with the workers, which will foster
collaboration. This will encourage individual contribution leading to
organisational success.
CHAPTER SUMMARY
124
The chapter discussed the personality characteristics of individuals,
career paths, leadership styles and theories, managing the work
environment and finally the qualities of an effective team leader
125
REFERENCES
Akintayo, O. A (2014).Basic Principles of psychology Lagos: Institute
of Security Nigeria
Coleman, D. (2000). "Leadership that Gets Results."Harvard Business

Review, March-April.
Cole, G. A. (2000) Personnel Management (4th edition) New York

Gosport: Ashford Colour Press.
Eneanya, A. (2009) Principles and Practice of Public Personnel

"Leadership and Management Styles".Journal of the Institute of

Chartered Secretaries and Administrators of Nigeria(ICSAN).
October, 2002, No.9
Luthans F. (1998), "Successful vs Effective Managers.'Academy of

Management Executive, 2 ( 2).
Sharkanshy I. (1978), Public Administration: Policy Making in

Government Agencies (4th ed). Chicago: Rand Mcnally
College Publishing.
Skyme, D. J. & D. M. Amidon (1997)."Knowledge Leadership:

Creating the Knowledge-Based Business". Business
Intelligence, Chapter 3.
Tampoe, M. (1993)."Motivating Knowledge Workers."Long Range

Planning, 26 (3).
White, R. & L. Ronald (1953). "Leader Behaviour and Member

Reactions in Three Social Climates."Group Dynamics. Illinois:
Row Peterson.
126
REVIEW QUESTIONS
QUESTION 1
(a) (i) Discuss stress management's role in terms of a
"health}' fit".
(ii) What are the guidelines for managing excessive stress
and examples of each?
(b) What can a manager do to take charge of his or her personal

career? Give five examples
(c ) How does managers impact corporate social responsibility?

Why is this important?
A (i) A "healthy fit" between the individual, the work environment
and the amount of job stress is one that stimulates productivity
without damaging health. It is achieved through effective stress
management.
(ii) Students' answers on guidelines will vary but they should

choose from the following list;
• Control the situation-avoid unrealistic deadlines and know
your limits.
• Use the management techniques - set realistic goals and plan
and manage your day.
• Pace yourself- plan your day on a flexible basis and do not try
to do more than one thing at a time.
• Open up to others - freely discuss problems, fears and
frustrations with someone close to you.
127
• Exercise and relax - engage in regular non-competitive activity
and practice relaxation techniques.
(B) Students' answers will vary, but they should come from the
following list:
(i) Establish a personal career plan
(ii) Take and maintain a personal skills inventory
(iii) Set specific personal development objectives
(iv) Maintain a career oriented dialogue with higher level
managers
(v) Take advantage of all training and development
opportunities.
(vi) Evaluate and constructively modify personal
development efforts over time.
(C) Managers are the people who make decisions that guide the
behaviour of
organizations. As such they are in positions to impact the
organization and should ensure that their personal ethical
frameworks extend to the organisation as a whole. Managers
must act as role models for other organizational members.
Additionally, they must take the lead in committing the
organisation to behave in moral and ethical ways in their quest
for high productivity.
128
CHAPTER 6
WORKPLACE VALUES

1. Understand values relating to workplace in modern times
2. Discuss the nexus of job satisfaction and productivity
3. Understand the theory of cognitive dissonance
4. To discuss attribution theory
6.1. INTRODUCTION
This chapter will expose you to different phenomena related to
organisational behaviour. The chapter discusses individual values in
organisation and makes it clear that while individuals have their own
values relating to their job, organisations also have values which
supersede those of the individual worker. The chapter also addresses
organisational ethics. It was stated that the law serves as a guide to
organisations when setting out their values so that they don’t face
backlashes. Furthermore, the chapter deals with the relationship
between satisfaction and productivity/job performance. The theory of
cognitive dissonance and attribution theory will also be discussed.
6.2. DOMINANT VALUES IN TODAY’S WORKFORCE

To put simply, values are specific guidelines for behaviour. Values
guide us regarding what is wrong or right. Workplace values are
guiding principles that you hold tenaciously about your work. Those
principles are the platforms or foundations that help you choose
between what is wrong and what is right. Note that as individuals may
have their own values relating, organisations also have values which
serve as guidelines as to how individuals should behave in the
129
organisation. Individual worker’s values relating to their work may
include:
1. Punctuality to work
2. Being honest with other members of staff
3. Respecting management’s rules and policies
4. Being compassionate at work
5. Being tolerant and so on
Workplace values, that is, the values of an organisation may include:

1. Accountability
2. Meeting deadlines
3. Achievement
4. Responsibility
5. Being a good leader in teamwork and so on
It is important to emphasise that in today’s organisations, stakeholders

do consider the legal aspect before setting certain values. Lagan and
Moran (2004) have set out that:
To date, the business world has largely depended on the law to set its
ethical course. It is still common for business leaders to say that if their
actions meet legal requirements then they must be okay. This is despite
the fact that the legal systems in many countries remain
underdeveloped and far removed from the democratic principles
adhered to in western societies. Even in Western societies, companies
which set ethical accountabilities solely on what is legal have been
exposed to a public backlash and loss of corporate reputation, when
found to be out of step with society’s changing values.
Such was the experience of the leisurewear industry: high profile

companies such as Nike, Gap and Reebok came under public attack for
their association with sweatshop conditions and child labour; while
130
they had flaunted no local laws themselves, their sub-contractors had
recruited child labourers. In Australia, the media frenzy that
accompanied the James Hardy Industry Group’s perceived failure to
fund its asbestos claimants adequately brought home to many
Australian Boards the critical dimension of managing relationship
obligations beyond legal accountabilities.
Legal compliance is only the base line of business ethical

accountability. Business ethical integrity is closer to what is sometimes
referred to as the spirit of the law. It encapsulates the ideal state that the
law is seeking to promote – the higher ground. As such, it encourages
the highest possible standards of behaviour, rather than a minimalist
compliance orientation to avoid legal prosecution. An ethical
perspective has the protection of people and the environment against
unnecessary harm and exploitation as its goal. It encompasses notions
of accountability and responsibility to others because, as humans, we
all have innate rights even if these are not yet spelled out in local laws.
6.3. JOB SATISFACTION AND PRODUCTIVITY

Job satisfaction simply explains attitude of employees toward their job.
In other words, it describes the level of happiness of employees in
fulfilling their desires and needs at the work. Hence, it is the pleasurable
feeling that result from an employee perception of achieving the desire
level of needs. Job satisfaction as an intangible variable could be
expressed or observed via emotional feelings. In other words, it hinges
on the inward expression and attitude of individual employee with
respect to a particular job. For instance, an employee’s satisfaction is
high if the job provides expected psychological or physiological needs.
However, satisfaction is said to be low if the job does not fulfil the
psychological or physiological needs (Cook, 2008).
131
Job satisfaction is also considered to be dispositional in nature (Staw
and Rose, 1985).It was discovered from the dispositional perspective
that assessing personal traits can give clear indication in the forecast of
job satisfaction. Disposition considers how personal characteristics can
influence the level of job satisfaction and individual genetic makeup
has been identified as a factor. Arvey et al. (1989) conducted a study to
support the genetic makeup component of job satisfaction in their study
of monozygotic or identical twins not reared together. They concluded
that identical twins even reared at a distance from each other or not in
the same environment still tend to have quiet significant similar level
of satisfaction. This is attributed to their genetic makeup component.
Moreover, there is evidence by House et al. (1996) that difference in an
employee’s job satisfaction level can partly be traced to differences in
their disposition or temperament.
Various schools of thought have in diverse ways tried to explain the

meaning of job satisfaction. Locke (1976) states that job satisfaction is
a pleasurable or positive emotional state resulting from the appraisal of
one‘s job or job experience. Spector (1997) defines job satisfaction as
an extent to which people like or dislike their jobs. Other authors
consider job satisfaction as the attitudes people have toward their job
(Ivancervich et al., 2005). In this direction, Mankoe (2002) states that
job satisfaction is a set of feelings which employees have about their
work. For example Smith et al. (1969), view job satisfaction as
―feelings or affective responses to facets of the (workplace) situation.
This definition of job satisfaction is an emotional reaction of employees
in relation to the aspects of their job and response(s) they experience at
the workplace. It describes how happy employees are with the facets of
their job. This to some extent connotes that, a satisfied worker is the
one who is contented with the facets of his or her job.
132
Similarly, Locke (1976) posits that job satisfaction can be
conceptualised as a state of happiness that arises from an evaluation of
one‘s job or experiences. This conceptualization considers both affect
(feeling) and cognition (thinking). The cognition aspect considers
opinions and beliefs of the job while the affect component on the other
hand consists of feelings and emotions relative to the job (Cook, 2008).
Job satisfaction plays significant role in both personal interests and

organisation success and therefore valuable to study for multiple
reasons. In recognising the role of job satisfaction, experts are of the
view that it can interrupt labour behaviour and influence work
productivity and is, therefore, a valid object of study (George and
Jones, 2008). This is in line with the belief that happier workers are
more productive. Nevertheless, job satisfaction contributes immensely
to organisations in the following dimensions. Improved job satisfaction
encourages productivity and has inherent humanitarian value (Smith et.
al., 1969); in addition, job satisfaction directly impacts the level of
employee commitment and absenteeism at the workplace (Alamdar et
al., 2012). Besides, job satisfaction ensures that counterproductive
work behaviours are minimized (Dalal, 2005). Furthermore, job
satisfaction is so significant that its absence generates lethargy and
reduces employee level of commitment (Levinson, 1998).
Besides, Organ and Ryan (1995) found that job satisfaction enhances
organisational citizenship behaviours. Moreover, it enhances employee
retention level and avoids the cost of hiring new ones. Similarly,
Gazioglu and Tansel (2002) posit that employee turnover rate is
influenced by their satisfaction level at the workplace. Dissatisfaction
retards progress of businesses through increase in cost of recruitment,
selection and training employees.
133
In modern competitive market, it is the vision of every organisation to
attain high performance through productivity and efficiency. However,
the attainment of this vision requires highly satisfied workforce as they
endeavour to extend more effort to performance and work harder to
achieve result. Similarly, the overall performance of an organisation is
dependent on resourceful and successful individual performance. In
explaining the effect of job satisfaction on performance, Cummings
(1970) came out with three major points of view that, satisfaction
causes performance, performance causes satisfaction and reward
causes both satisfaction and performance.
Mirvis and Lawler (1977) concluded by their findings on the effect of

job satisfaction on performance among bank tellers in terms of cash
shortages that, satisfied workers are less likely to show shortages and
less likely to quit their jobs. In consonance with this, Kornhanuser and
Sharp (1976) asset that job satisfaction positively affects performance.
In the Western electrical studies (1966), the proof from the Relay
Assembly test room revealed that increased in employee productivity
is attributable in part to increase in job satisfaction.
Lawler and Porter (1967) suggest that satisfaction affects effort of

employees. They explain increased satisfaction from performance
possibility helps to increase expectations of performance leading to
reward. Satisfaction and productivity have critical links to affect each
other. Effort leads to effective performance which eventually leads to
satisfaction but the kind of reward system under which employees
operate ultimately affects satisfaction and performance. Curral et al.
(2005) also found that the output and productivity of an organisation is
evaluated against the performance of its employees and therefore better
performance of employees demands high level of job satisfaction.
Nanda and Browne (1997) after examining employee performance
134
indicators at the hiring stage found that employees’ level of satisfaction
and motivation affects their level of performance. In line with this
argument, Meyer (1999) confirms that low level of job satisfaction
negatively affects employees’ commitment which eventually hinders
achievement of organisational objectives and performance. Therefore,
to retain higher performers requires attractive packages and today‘s
competitive world demands that organisations maintain higher
performance to stay competitive in the market (Frye, 2004).
6.4 THEORY OF COGNITIVE DISSONANCE

The theory of cognitive dissonance was propounded by Leon Festinger.
The central proposition of Festinger’s theory is that if a person holds
two cognitions that are inconsistent with one another, he will
experience the pressure of an aversive motivational state called
cognitive dissonance, a pressure which he will seek to remove, among
other ways, by altering one of the two dissonant cognitions (Bem,
1967). If we wish to analyse the hypothesis stated above in detail, it is
essential to define several basic concepts. A cognition (also called a
cognitive element) may be broadly defined as any belief, opinion,
attitude, perception, or piece of knowledge about anything - about other
persons, objects, issues, oneself, and so on.
Littlejohn and Foss (2005) define a cognitive system as "a complex,

interacting set of beliefs, attitudes, and values that affect and are
affected by behaviour". Festinger considered the need to avoid
dissonance to be just as basic as the need for safety or the need to satisfy
hunger (Griffin, 2006). Psychologists define a drive as any internal
source of motivation that impels an organism to pursue a goal or to
satisfy a need, such as sex, hunger, or self-preservation. The distressing
(aversive) mental state termed cognitive dissonance is therefore
conceptualized as an aversive drive.
135
Cognitive dissonance theory is based on three fundamental
assumptions.
(a) Humans are sensitive to inconsistencies between actions and
beliefs: according to the theory, we all recognise, at some level,
when we are acting in a way that is inconsistent with our
beliefs/attitudes/opinions. In effect, there is a built in alarm that
goes off when we notice such an inconsistency, whether we like it
or not. For example, if you have a belief that it is wrong to cheat,
yet you find yourself cheating on a test, you will notice and be
affected by this inconsistency.
(b) Recognition of this inconsistency will cause dissonance, and will

motivate an individual to resolve the dissonance: once you
recognise that you have violated one of your principles, according
to this theory, you won’t just say “oh well”. You will feel some sort
of mental anguish about this. The degree of dissonance, of course,
will vary with the importance of your belief/attitude/principle and
with the degree of inconsistency between your behaviour and this
belief. In any case, according to the theory, the greater the
dissonance the more you will be motivated to resolve it.
(c) Dissonance will be resolved in one of three basic ways:

(i) Change beliefs: perhaps the simplest way to resolve dissonance
between actions and beliefs is simply to change your beliefs.
You could, of course, just decide that cheating is okay. This
would take care of any dissonance. However, if the belief is
fundamental and important to you such a course of action is
unlikely. Moreover, our basic beliefs and attitudes are pretty
stable, and people don’t just go around changing basic
beliefs/attitudes/opinions all the time, since we rely a lot on our
136
world view in predicting events and organizing our thoughts.
Therefore, though this is the simplest option for resolving
dissonance, it’s probably not the most common.
(ii) Change actions: a second option would be to make sure that you
never do this action again. It is widely recognized that guilt and
anxiety can be motivators for changing behaviour. So, you may
say to yourself that you will never cheat on a test again, and this
may aid in resolving the dissonance. However, aversive
conditioning (i.e., guilt/anxiety) can often be a pretty poor way
of learning, especially if you can train yourself not to feel these
things. In addition, you may really have benefited in some way
from the action that is inconsistent with your beliefs. So, the trick
would be to get rid of this feeling without changing your beliefs
or your actions, and this leads us to the third, and probably most
common, method of resolution.
(iii) Change perception of action: a third and more complex method

of resolution is to change the way you view/remember/perceive
your action. In other words, you would “rationalize” your
actions. For example, you might decide that the test you cheated
on was for a dumb class that you didn’t need anyway. Or you
may say to yourself that everyone cheats so why not you? In
other words, you think about your action in a different manner
or context so that it no longer appears to be inconsistent with
your actions. If you reflect on this series of mental gymnastics
for a moment you will probably recognize why cognitive
dissonance has come to be so popular. If you’re like me, you
notice such post-hoc re-conceptualizations (rationalizations) of
behaviour on the part of others all the time, though it’s not so
common to see it in one’s self
137
6.5. ATTRIBUTION THEORY
Attribution theory is a topic within the field of social psychology which
seeks to explain the cognitive process whereby individuals make
explanatory inferences regarding the causes of events. Heider (1958)
was among the first to analyse the process of attribution. Heider
distinguished between two general categories of explanation, internal
and external. Internal attributions implicate characteristics of the
individual (such as ability, attitudes, personality, mood, and effort) for
having caused a particular behaviour, whereas external attributions
implicate external factors (such as the task, other people, or luck) for
causing an event or outcome to occur. While Heider established that
successes and failures are interpreted by an individual within this causal
framework, Weiner (1986) added an additional dimension to causal
interpretation when he proposed that the stability of the cause is also
included in individual’s explanations of outcomes.
The distinction between stable, non-variable causes (such as innate

ability for internal attributions and inherent task difficulty for external
attributions) and unstable, variable causes (such as effort and luck
respectively) was combined with Heider’s internal/external dimension
to form a basis for classifying the performance attributions made by
individuals.
Following the emergence of two-dimensional attribution theory, many

studies have been conducted which observed patterns governing the
type of attribution which individuals tend to make in given situations.
Three phenomena which are commonly observed when studying
attributions are the actor-observer bias, the fundamental attribution
error, and the self-serving bias. The actor-observer bias is the
phenomenon where the perceived cause of an event follows from the
138
particular perspective of the explainer. An observer of an individual’s
behaviour displays a tendency to attribute the causes of that behaviour
to internal characteristics of the actor whereas the person carrying out
the act in question explains their own behaviour as having resulted from
external circumstances (Jones &Nisbett 1972). The fundamental
attribution error refers to a general bias on the part of an observer,
whereby individuals tend to explain the behaviour of others in terms of
internal factors to a greater extent than situational factors. This bias is
also manifested in explanations for group behaviour, and in this context
is termed the ultimate attribution error.
Finally, self-serving bias is a common pattern of explanation for

personal success or failure and refers to the tendency for individuals to
explain success as internally derived and failure as resulting from
external, situational factors. These three patterns of attribution type
exhibit fallacious and biased reasoning inaction (Akintayo, 2014).
In 1967, Harold Kelley attempted to explain the cognitive process by

which people generate internal or external explanations with his
tripartite attribution cube. Kelley first postulated that attributions arise
through the use of the principle of co-variation. This principle of
inferential logic holds that the cause of an event must be present when
the event occurs and absent when the event fails to occur. Kelley
proposed that individuals observe three types of covariant data when
assessing the causal origin of behavioural events. Consensus,
consistency, and distinctiveness are all considered when interpreting
the cause of a behaviour. Consensus refers to whether others behave
identically in the given situation. Consistency refers to whether the
individual behaves identically from case to case in the given situation.
139
Distinctiveness refers to whether the individual behaves identically
when the given situation is changed. In other words, distinctiveness
describes whether the behaviour is unique to the particular
circumstance or manifests across a wide variety of circumstances.
Kelley proposed that the levels of these three behavioural co-variables
provide the informational basis or assessing the behaviour of a person.
Kelley’s attribution cube predicts that if consensus is perceived as high
(everybody behaves this way in this scenario), consistency is perceived
as high (the individual always behaves this way in this given scenario),
and distinctiveness is perceived as high (the behaviour is unique and
distinct to the given scenario), then the circumstances of an event will
be attributed as having caused the action.
On the other hand, the cube predicts that if consistency is high (the
individual always behaves this way in this scenario) while both
consensus and distinctiveness are low (nobody else acts this way in this
scenario, and he always acts like this regardless of the scenario), then
the traits of the individual will be implicated as having caused an event.
Other combinations of behaviourally covariant information result in
ambiguity as to the locus of causation in the mind of the observer who
is attempting to interpret whether external social circumstances or
internal traits caused a particular behaviour to occur.
Weiner’s theory is generally used to interpret achievement-related

attributions while Kelley’s cube is used to interpret the informational
basis of social attributions.However, these two approaches are not
mutually exclusive. Kelley’s informational perspective is compatible
with Weiner’s dimensional approach (Martinko 1998). The consensus,
consistency, and distinctiveness information of Kelley’s model
provides a basis for external/internal, stable/unstable, and
global/specific attributions within Weiner’s performance explanation
140
model (Martinko 1998). The sound predictions of this synthesized
theory of attribution provide evidence that Weiner and Kelley were
describing two compatible aspects of a common underlying process of
attribution which is employed universally (Martinko 1998).
CHAPTER SUMMARY
The chapter discussed the dominant values in today’s workforce, job
satisfaction and productivity, theory of cognitive dissonance and
attribution theory.
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Cook, L. A. (2008).Job Satisfaction and Performance: Is the
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REVIEWQUESTIONS
QUESTION 1
GOALS HELP EMPLOYEES EXPERIENCE JOB
SATISFACTION
Why are employees satisfied with their jobs? It seems that the best
predictor of job satisfaction appears to be the perceived probability of
attaining goals at work. Also, people are more satisfied when they
perceive more positive and fewer negative goals in their work
environment. Thus, it is important for managers to help employees
distinguish between positive and negative goals, for not all goals affect
satisfaction in the same way.
144
A recent study demonstrated that employees were satisfied with their
jobs Alien they had high goal commitment, perceived high chances of
success in attaining their goals and had few negative goals in their job
situation. The study further found that two indices of goal clarity;
knowing the means for goal attainment and having specific deadlines
for goal attainment were also related to employees' satisfaction. The
result of the study suggest that the goal dimensions which are important
for performance and motivation may also be responsible for job
satisfaction.
Required
Discuss goal setting theory.
What are the research findings on goal setting?
Discuss the relationship between motivation and reward systems.
(a) To be motivating, goals must be S. M. A. R. T.
- S - Specific: goals must target specific and identifiable areas
for improvement
- M - Measurable: goals should be quantified
- A - Assignable: goals must be understood, capable of being
implemented and acceptable to those implementing them
- R - Realistic: there must be sufficient resources and time to
ensure proper implementation of the goal
- T - Time-related: there must be specified times for
accomplishing the goal
(b) Research on goal setting indicates that:

- Difficult goals can lead to higher performance levels
- Specific goals generally lead to higher performance
145
- Feedback increases the positive effects of setting difficult,
specific goals
- Jointly set goals between managers and subordinates lead to
greater goal
- Acceptance and commitment.
- High effort-performance expectancy and high self-
efficiency enhance goal
- commitment and lead to goal performance
- Employees increase goal-setting activities after successes and
reduce them after failures.
QUESTION 2
How do you think employers in the public sector in Nigeria could be
motivated in view of the prevailing economic situation?
In view of the prevalent economic situation in Nigeria, Civil servants
can be motivated as follows:
- Full appreciation of work done
- Feeling of participation
- Job security
- Good salary
- There should be an interesting and challenging job.
- Opportunity for growth and advancement
- Good and favourable working condition
- Rewards should also be linked with performance.
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CHAPTER 7
FOUNDATION OF GROUP BEHAVIOUR

1. Understand group behaviour, different types of groups and group
processes.
2. Know the rationale for joining groups and factors to be
considered before forming groups.
3. Know the stages of group development.
4. Know the concept of role and its dynamic forms in organisational
settings.
5. Understand teamwork and variables contributing to the
performance of members in group tasks.
6. Understand the advantages /disadvantages of individual/group
decision making.
7.1. INTRODUCTION:
A group is defined as two or more people who share a feeling of unity
and are bound together in relatively stable patterns of social interaction.
A group can be defined as two or more people, interacting and
interdependent, who have come together to achieve particular
objectives (Bamgboye, 2000). Group can also be described as a state of
mind, a mental construct, model or image at varying degrees of
awareness. In this case, a group is not a tangible thing; instead we
fabricate it in the process of social interaction by grouping people
together in social units. So, such things as clichés, parties and
organisations are mental constructs that represent groups of people
bound together to represent certain interests.
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In other words, groups are products of social definitions based on sex
or shared ideas. They are human constructed realities that are
conceptualized by humans who attribute real substance to them and
treat them as real.
We perpetuate groups when we fashion and create an existence beyond
the life span of the individuals who founded the group. In a nutshell
though, a group is defined as two or more individuals, interacting and
interdependent, who come together to achieve particular objectives.
Groups have functions for which they are formed, these functions can
fall into two or more categories:
1) The achievement of some specific group goal or goals.
2) The maintenance or strengthening of the group itself.
In every group, a behaviour expectation falls within these functions.

This type of behaviour and expectation exhibited by the group vary in
accordance to group expectations.
Indeed, group behaviour is critical to organisational behaviour because
a group, according to McShane& Von Glinow (2008: 258), is “two or
more people with a unifying relationship” while Kreitner&Kinicki
(2004: 635) define an organisation as a “system of consciously
coordinated activities of two or more people.” From the definitions
above, it is clear that an organisation is like a group which operates on
the basis of a “system of consciously coordinated activities.”
This chapter will examine the foundations of observable actions among

members of an organisation especially from the point of view of group
structure and processes. We shall also look at how leadership affects
group behaviour.
7.2. CLASSIFICATION OF GROUPS
Groups may be classified as either formal or informal.
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1. FORMAL GROUP
A formal group is one in which the members are unified by specific
goals, clearly spelled out instructions and work processes in which the
function of each employee can be identified. Examples of formal
groups include a company in which the duties of managers, employees
are clearly defined and everyone sees how these contribute to the
attainment of overall organisational goals; a school establishment in
which the principal, teachers and even students all know their
responsibilities etc.
Formal groups help in achieving goals without any difficulty. They

facilitate coordination of activities and help in forming logical
relationship among people and positions. They create group unity.
Leonard R Sayles has subdivided formal group into command group
and task group.
(a) Command Group:

Command group consists of subordinates who are directly responsible
to a supervisor. Command groups are structured by the organisation.
The subordinates working in enforcement department of a town
planning authority are reporting to and directly responsible to the
enforcement officer. This group is responsible for removal of
encroachment on public land. There is a specific department
established for the purpose and is busy throughout with its activities.
(b) Task Group:

Task group is formed to complete a project. This type of group is also
known as task force. The job of the group is to complete the task within
allotted time period. If one task is completed they are allotted new task
to work with. Project teams, quality circles, audit teams are the
examples of task group.
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2. INFORMAL GROUP
An informal group is one where the members are simply unified by the
natural human need for interaction with others. Achumba (1995) notes
that, man is by nature gregarious, that is, sociable, companionable, and
fond of the company of others. Informal groups are usually not
structured, and may not have specific rules guiding behaviour. The
groups are natural formations in the work system that appears in
response to the needs for social contact (Bamgboye, 2001). Informal
groups include friendship groups like three employees of an
establishment who regularly come out to have lunch together, or
interest groups – “people working together to attain a specific objective
with which each is concerned” - e.g. employees who band together to
protest the unfair treatment of a colleague, protest unfair work
conditions etc. (Robbins & Judge, 2009: 318).
The distinctions may not necessarily be definite. An informal group can

also at times act like a formal group. For example, a group of friends
may decide to get involved in some kind of arrangement where they
contribute money and establish some rules as to how this money may
be used. For instance, they may give out loans to each other in times of
need and state clearly how this loan should be repaid.
Informal groups are of the following types:

(a) Interest Group:
A group of employees coming together for attaining a common
purpose. Employees coming together for payment of bonus increase in
salary, medical benefits and other facilities are the examples of interest
group. The people with common interest come together.
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(b) Membership Group:
A group of persons belonging to the same profession knowing each
other e.g. teachers of the same faculty in the university.
(c) Friendship Group:

A group outside the plant or office, having similar views, tastes,
opinions, belonging to same age group. They form clubs and
associations based on the friendship.
(d) Reference Group:

It is a primary group where people shape their ideas, beliefs, values etc.
They want support from the group. Family is an important reference
group. A team of players playing a game is a reference group.
OTHER CLASSIFICATION OF GROUPS

According to Fiedler (1967), there are three types of groups in an
organization.
1. INTERACTING GROUP: this is a type of group in which the
ability of one man to perform his job may depend upon the fact
that another has completed his share of task. It is only when
stage one has been completed that you move into the next
stage. E.g. an assembly plant where the work of coupling
passes through so many stages.
2. CO-ACTING GROUP: this is designed so that each of the

group members does his job relatively independently of the
other team members.
3. COUNTERACTING GROUP: this consists of individuals
who are working together for the purpose of negotiating and
reconciling conflicting opinions and purposes. This type of
groups is illustrated by a labour-management negotiation team.
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UNDERSTANDING WORK TEAMS
Work teams occupy a pivotal role in what has been described as a
management transformation, paradigm shift, and corporate renaissance
(Kanter, 1983). In this management revolution, Peters (1988) advised
that organisations use "multi-function teams for all development
activities" and "organize every function into ten- to thirty-person,
largely self-managing teams". Tornatzky (1986) pointed to new
technologies that allow small work groups to take responsibility for
whole products. Hackman (1986) predicted that, "organisations in the
future will rely heavily on member self-management". Building blocks
of such organisations are self-regulating work teams. Butfar from being
revolutionary, work groups are traditional;"the problem before us is not
to invent more tools, but to use the ones we have" (Kanter, 1983).
Kozlowski and Bell (2001) noted that in modern times, teams are
embedded in an open yet bounded system composed of multiple levels.
This broader system sets top-down constraints on team functioning.
Simultaneously, team responses are complex bottom-up phenomena
that emerge over time from individual cognition, affect, behaviour, and
interactions among members within the team context (Kozlowski &
Klein, 2000). Based on this perspective, we assert that four conceptual
issues are critical in efforts to investigate and understand work teams:
(i) task or workflow interdependence,
(ii) contextual creation and constraint,
(iii) multilevel influences, and
(iv) temporal dynamics.
We briefly introduce these issues below and use them as a basis to

identify both the strengths and limitations of extant research.
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The centrality of task interdependence is one issue that clearly
distinguishes the work teams and small group literature. In the
organisational literature, technology, and the tasks it entails, denotes
the means by which system inputs are transformed or converted to
outputs; technology is not equipment or support systems (e.g., McGrath
& Hollingshead, 1994). Technology and its associated tasks create a
structure that determines the flow of work and linkage across team
members. Interactions among work team members are substantially
influenced by this workflow structure, which links individual inputs,
outcomes, and goals.
Thus, it has a critical influence on team processes essential to team

effectiveness. In contrast, laboratory tasks in small group research are
often pooled or additive, thereby minimising the necessity for task-
driven interaction among team members (McGrath, 1997). From an
organisational systems perspective, the task workflow sets interaction
requirements and constraints that must be considered in team theory,
research, and practice.
Teams are embedded in an organisational context and the team itself

enacts a context for team members. The broader organisational context
characterized by technology, structure, leadership, culture, and climate
constrains teams and influences their responses. However, teams also
represent a proximal context for the individuals who compose them.
Team members operate in a bounded interactive context that they in
part create by virtue of their attributes, interactions, and responses.
Team-level normative expectations, shared perceptions, and
compatible knowledge are generated by and emerge from individual
interactions. Dynamic team processes in part create contextual
structure that constrains subsequent team processes. Thus, the team
context is a joint product of both top-down and bottom-up influences.
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Organisations, teams, and individuals are bound together in a
multilevel system. Teams don’t behave, individuals do; but they do so
in ways that create team level phenomena. Individuals are nested within
teams, and teams in turn are linked to and nested in a larger multilevel
system. This hierarchical nesting and coupling, which is characteristic
of organisational systems, necessitates the use of multiple levels;
individual, team, and the higher-level context; in efforts to understand
and investigate team phenomena. However, many of the theoretical,
measurement, and data analytic issues relevant to a multi level
perspective on teams are often neglected in research and practice.
These issues are especially important when researchers try to attribute

individual characteristics to the team collective (e.g., team ability, team
personality, team learning). Such generalisations necessitate precise
multilevel theory and analyses to ensure the meaningfulness of the
collective team-level constructs (Kozlowski & Klein,
2000).Unfortunately, there are many examples of such generalisations
that lack the standing of true constructs.
Finally, time is an important characteristic of work teams (McGrath,

1990). Teams have a developmental lifespan; they form, mature, and
evolve over time. Team constructs and phenomena are not static. Many,
indeed, most team level phenomena (e.g., collective efficacy, mental
models, performance) emerge upwards from the individual to the team
level and unfold via complex temporal dynamics that include not only
linear, but also cyclical, and episodic aspects. Although time is
explicitly recognised in models of team development, it is largely
neglected in many other areas of team research; yet time is relevant to
virtually all team phenomena. It is impossible to understand team
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effectiveness without paying attention to the processes that unfold over
time to yield it.
7.3. WHY DO PEOPLE JOIN GROUPS?

A number of reasons have been suggested bordering on both
performance and social processes as to the reasons why individuals
form into groups, both formal and informal. They include:
1) SECURITY: This function connotes that the group may
provide protection for its membership as group members
collaborate to protect their interests from outside pressures or
threats. 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.
2) STATUS: Membership of a group provides the individual with

a sense of belonging. Especially, a group that is viewed as
important by others provides recognition and status for its
members both within and outside the group.
3) SELF-ESTEEM: Closely related to the status function is the

fact that 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.
4) AFFILIATION: This means that groups can fulfil social

needs. Groups provide companionship and a source of mutual
understanding and support from colleagues. People enjoy the
regular interaction that comes with group membership. For
most people, these on-the-job interactions are their primary
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source for fulfilling their needs for affiliation. This can help in
solving work problems, and also to mitigate stressful or
demanding working conditions.
5) POWER: It is a truism that certain tasks can be performed only

through the combined efforts of a number of individuals
working together. Thus what cannot be achieved individually
often becomes possible through group action in the sense that
there is power in numbers.
6) GOAL ACHIEVEMENT: Related to the power function is

the fact that oftentimes, to accomplish a task requires pooling
talents, knowledge, or power in order to get a job completed.
The variety of experience and expertise among members of the
group provides a synergetic effect, which can be applied to the
increasingly complex problems of modern organisations. In
such realisations, management rely on the use of a formal
group.
7.4. FACTORS THAT GOVERN FORMATION OF GROUPS

1. Personal Traits: The first and foremost factor that governs
formation of group is personal traits. People join groups because they
find commonality of interests, beliefs, values and attitudes. People of
common beliefs, interests, values and attitudes come together and form
group. The group fosters their interests and beliefs. The interaction with
the people of similar values, beliefs, attitudes becomes easier. They feel
at home with the other members of the group. Chances of conflict are
reduced when the members share the same ideology.
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Political parties are formed on the same principles. The people come
together and form group because of security and affiliation needs. They
feel secured after joining the group. Employees form unions to be
secured from the threat of termination and other such dangers of facing
unemployment. They feel safe after joining group.
2. Identical Objective: The people with similar objectives have strong

feeling to come together and form groups. Executives pick up people
and assign them activities in sales or marketing or advertising. This
enables people to come together and interact and they share the burden
of each other while working together. They know each other well and
having the same objectives, they can easily come together to form a
group.
3. Emerging Leadership: People form groups with a potent will of

emerging leaders of the group. 2 When people come together they
choose someone to lead them. The leader gets to be accepted by the
people; they follow him because they feel that he will safeguard their
interests. The leaders get authority from their followers. The leader thus
assumes power. He emerges because of group. The groups are formed
and people join groups who want to be leaders or can automatically
emerge as leaders. The role of leaders is quite significant and important
to the members of group.
4. Interaction: People get opportunity to interact in a group and they
join it or come together and form it. Through interaction social
relationship is developed. The need for interaction is very strong among
people. A desire to have an interaction is a powerful reason to form a
group.
2
Unclear.
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7.5. STAGES OF GROUP DEVELOPMENT
The formation of a group (or team) passes through what has been
described as the Five-Stage Model. According to McShane& Von
Glinow (2008: 268 – 270) and Robbins & Judge (2009: 320), these
stages are:
• Forming – this is the stage when the potential group members begin
to assess the possible nature of the group in terms of structure,
purpose, size, etc. At this stage, according to McShane& Von
Glinow, they may defer to the existing authority of a formal or
informal leader who “must provide an initial set of rules and
structures for the interaction.”
• Storming – here the group members begin to consider the possible

implications of group membership and possibly assign roles and
responsibilities to positions. For example, the group will need
money to run its operations. How much should each member
contribute? How are the contributed funds to be administered? Who
runs what office? This stage may bring about considerable
interpersonal conflict.
• Norming –at this stage, some sense of group identity has emerged
as most of the issues in the storming stage would have been
resolved. Now it is time to codify the rules and procedures such that
they now become binding as expected behaviour. Sanctions may
also be established as a deterrent.
• Performing – here the group has come to life. “The structure at this
point is fully functional and accepted. Group energy has moved
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from getting to know and understand each other to performing the
task at hand” (Robbins & Judge, 2009).
• Adjourning – the adjourning stage is one where the group begins to

prepare for its own end. High performance is no longer required;
team members only seek to tidy up, as it were. Group members are
left to reflect on what went well and what went badly.
7.6. ANALYSING GROUP INTERACTION

The review of certain group concepts will demonstrate the fact that
groups are different from unorganised mobs. They have a structure that
shapes the behaviour of their members. The concepts are
7.7. THE CONCEPT OF ROLES

In order that the organisation can achieve its goals and objectives, the
work of individual members must be linked into coherent patterns of
activities and relationships. This is achieved through the role structure
of the organisation. A role is the expected pattern of behaviours
associated with members occupying a particular position within the
structure of the organisation. It also describes how a person perceives
their own situation. The concept of 'role' is important to the functioning
of groups and for an understanding of group process and behaviour. It
is through role differentiation that the structure of the work group and
relationships among its members are established. Some form of
structure is necessary for teamwork and co operation. The concept of
roles helps to clarify the structure and to define the pattern of complex
relationships within the group. The role, or roles, that the individual
plays within the group is influenced by a combination of:
(i) SITUATIONAL FACTORS - Such as the requirements of the
task, the style of leadership, position in the communication
network; and
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(ii) PERSONAL FACTORS - These includes values, attitudes,
motivation, ability and personality.
The Formal Organisational Relationships (line-staff or lateral) can be

seen as forms of role relationships. These individual authority
relationships determine the pattern of interaction with other roles.
7.7.1. EXPLORING THE CONCEPT OF ROLES IN AN

ORGANISATION
1. ROLE SET: In addition to the role relationships with
members of their own group- peers, superiors, sub-ordinates-
the individual will have a number of role related relationships
with outsiders such as members of other work groups, trade
union officials, suppliers, consumers. This is regarded, as a
person's 'role-set'. The role-set comprises the range of
associations or contacts with which the individual has
meaningful interactions in connections with the Performance
of their role.
2. ROLE INCONGRUENCE: Another important feature of role

relationship is the concept of 'role incongruence'. This arises
when a member of staff is perceived as having a high and
responsible position in one respect but a low standing in
another respect. Difficulties with role incongruence can arise
from the nature of groupings and formal relationships within
the structure of the organisation. A number of work-related
relationships in this wise can be seen in a Doctor - Nurse, or
Senior Manager's P.A relationship which can give rise to a
potential imbalance of authority and responsibility.
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Difficulties with role incongruence can also arise in line-staff
relationships. For instance, a relatively junior member of the
personnel department informing a senior departmental
manager, that a certain proposed action is contrary to the
policies of the organisation. Another situation can also arise
where a person establishes him or herself in the role of 'gate
keeper' to the boss- e.g. where a comparatively junior Personal
Assistant (PA) passes on the manager's instructions to one of
the manager's more senior subordinates or where the Personal
Assistant attempts to block a more senior member of staff
having access to the manager i.e. Maj. Mustapha standing
between Abacha and Lt. Gen. Diya.
3. ROLE EXPECTATION: Many role expectations are

prescribed formally and indicate what the person is expected to
do and their duties and obligations. Formal role prescriptions
provide guidelines for expected behaviours and maybe more
prevalent in a ' mechanistic' organisation. Examples include
contracts of employment, rules and regulations, standards,
policy decisions, job descriptions, or directives from superiors.
However not all role expectations are prescribed formally.
These are certain patterns of behaviour, which all though not
specified formally will nonetheless be expected of members.
These .informal Role Expectations may be imposed by the
group itself or at least communicated to a person by other
members of the group. Examples include general conduct,
mutual support to communicating, dress and appearance.
On the other hand, some members may have the opportunity to

determine their own role expectations, where, for example,
formal expectations are specified loosely or only in very
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general terms. Opportunities for self- established roles are
more likely in senior positions, but also occur within certain
professional, technical or scientific groups, or where there is a
demand or creativity or artistic flair. Such opportunities may
be greater within an 'organic' organisation and will also be
influenced by the style of leadership adopted such as where a
laissez-faire approach is adopted.
4. ROLE CONFLICT: Role conflict as a theme focuses

attention on aspects of behaviour existing independently of an
individual's personality. Patterns of behaviour result from both
the role and the personality. Role conflict arises from
inadequate or inappropriate role definition. In practice, the
manner in which a person actually behaves may not be
consistent with their expected pattern of behaviours. This
inconsistency may be a result of role conflict. Role conflict
occurs in the following dimensions:
i. Role incompatibility;
ii. Role ambiguity;
iii. Role overload
iv. Role under load.
These are all problem areas associated with the creation of role
expectations.
5. ROLE INCOMPATIBILITY: Arises when a person faces a

situation in which simultaneous different or contradictory
expectations create inconsistency. Compliance with one set of
expectations makes it difficult or impossible to comply with
other expectations. Here the two role expectations are in
conflict. An example is the dilemma a supervisor might find
him or herself in addressing opposing expectations of both
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workers and management on him. Also a woman faces a
similar situation when she combines occupational career
expectations with roles as a housewife.
6. ROLE AMBIGUITY: This occurs when there is lack of

clarity as to the precise 3 requirements of the role, and the
person is unsure of what to do. The person's own perception of
their role may differ from the expectations of others. This
implies that enough information is not available for the
adequate performance of the role. Role ambiguity may result
from a lack of formally prescribed expectations. It is likely to
arise in large, diverse groups or at times of constant change. i.e.
uncertainty beclouding such issues as method of performing
tasks, extent of authority and responsibility, standard of work
etc.
7. ROLE OVERLOAD: Role overload is when a person faces

too many separate roles or too great a variety of expectations.
The person is unable to satisfactorily meet all expectations and
some must be neglected in order to satisfy others. This leads to
a conflict of priority. Role overload is seen in terms of the total
role-set, and implies that the person has too many separate roles
to handle.
8. ROLE UNDERLOAD: Role under load arises when the

prescribed role expectations fall short of the person's own
perception of their role. The person may feel their role is not
3
I feel this word should be removed. Role requirements are rarely precise.
People are often content with a general understanding of what a role
entails.
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demanding enough and that they have the capacity to undertake
a larger or more varied role, or an increased member of roles.
Role under load may arise, for example, when a new member
of staff is first appointed, or from the initial effects of
delegation.
9. THE NORMS CONCEPT: Norms mean acceptable

standards of behaviour within a group that are shared by the
group's members. For instance, group norms might determine
appropriate dress with which group members eat lunch, and
friendship on and off the job.
10. GROUP COHESIVENESS: Cohesiveness means the degree

to which members are attracted to each other and are motivated
to stay in the group. Indeed social interaction is a natural
feature of human behaviour but ensuring harmonious working
relationships and effective teamwork is not an easy task. The
manager's main concern is that members of a work group co-
operate in order to achieve the results expected of them.
Despite noted disadvantages of cohesive groups, they may
result in greater interaction between members, mutual help and
social satisfaction, lower turnover and absenteeism, and higher
production.
Co-operation among members is likely to be greater in a united,

cohesive group. Membership of a cohesive group can be a
rewarding experience for the individual, can contribute to the
promotion of morale and aid the release of creativity and
energy. Members of a high-morale group are more likely to
think of themselves as a group, and work together effectively.
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Strong and cohesive work groups can, therefore have
beneficial effects for the organisation. It has been observed that
groups differ in their cohesiveness depending on the reasons
that forged the cohesiveness in the first place. For instance, a
workgroupmay be cohesive because it’s members have spent a
great deal of time together, it’s small size facilitates higher
interaction, or external threats have brought its members closer
together. Cohesiveness is important because it has been found
to be related to the group's productivity.
There are some factors that affect cohesiveness of group. They are as
under:
1. Group Formation Factors: The factors which are responsible

for group formation such as common interests, shared goals,
etc. serve as the base for cohesiveness.
2. Interaction: Interaction between the group members makes

the group more cohesive.
3. Difficulty in Membership: Some groups take great care in

selecting their members and making admission to them very
difficult. Difficulty in getting membership increases
cohesiveness of group. Such groups are valued by members
and they feel proud of being members.
4. Success: Success of individual or shared objectives by the

members fuels pride about the success resulting in greater
cohesion of the group.
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5. Threat: When members of group feel threatened from any
source, external in particular, this increases cohesiveness.
6. Size of Group: Size of the group affects its cohesiveness.

Increased size of group decreases its cohesiveness and vice
versa. Small size of group facilitates more interaction among
the group members, hence more cohesiveness.
7. Continued Membership: Membership of the group is

continued by its members for a longer period of time increases
cohesiveness of group. New members do not get membership
easily because of opposition from the old members.
8. Attitude and Values: Cohesiveness of group increases

because of shared attitude and values. Everyone gets attracted
towards the people having identical attitudes, values and
beliefs. The sense of security and safety develops with the
likeminded people.
7.8. WORKGROUP BEHAVIOUR

Individuals form groups. They live, move and work in groups. Groups
are important. They influence work and work behaviour. They cannot
be ignored. They exert significant influence on the organisation. They
are inseparable from and useful to the organisation. They form
foundation of human resources. The study of group behaviour is
important. Individual and group behaviour differs from each other.
Group behaviour affects productivity (Akintayo, 2009, 2010)
The importance of group behaviour has been realized from time to time.
Elton Mayo and his associates way back in 1920 conducted the famous
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Hawthorne experiments and came to know that group behaviour has
major impact on productivity. Human resources comprise individuals,
and individuals move in groups. Every manager must possess the
knowledge of group behaviour along with individual behaviour. He
must understand group psychology. He should understand individual
behaviour in the context of group behaviour. Individual behaviour is
influenced by the group behaviour. Workgroup is often influenced by
factors such as
a) SIZE OF GROUP: Here the question addressed is: Does the
size of a group affect the group's overall behaviour? The
answer is said to be on the affirmative. As a group increases in
size, problems arise with communications and co-ordination.
Large groups are more difficult to handle and require a high
level of supervision. Absenteeism also tends to be higher in
larger groups. When a group becomes too large it may split into
smaller units and friction may develop between the sub-groups.
Thus it is inferred that smaller groups are faster at completing
tasks than are larger ones.
One of the important findings related to the size of a group' is

the concept of SOCIAL LOAFING. Social loafing is the
tendency for individuals to expend less effort when working
collectively than when working individually. A common
stereotype about groups, challenged by this theory, is the
notion that team spirit spurs individual effort and enhances the
group's overall productivity. A German psychologist,
Ringlemann, compared the results of individual and group
performance on a rope-pulling task. Workers were asked to
pull as hard as they could on a rope, performing the task first
individually and then with others in groups of varying size. A
meter measured the strength of each pull. Although the total
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amount of force did increase with the size of the work group,
the effort expended by each individual member decreased with
the result that the total group effort was less than the expected
sum of the individual contributions. Replications of
Ringlemann’s experiment have proven to have generally been
supportive of the original findings.
Group size is inversely related to individual performance.

Explanations can be offered for the social loafing effect. First
is that it may be due to a belief that others in the group are not
carrying their fair share such that if you see others as lazy or
inept, you can re-establish equity by reducing your effort.
Another explanation is the dispersion of responsibility.
Because the results of the group cannot be attributed to any
single person, the relationship between an individual's input
and the group's output is clouded. In such situations,
individuals may be tempted to become "free riders" and coast
on the group's efforts.
(b) COMPATIBILITY OF THE MEMBERS: Described in

some quarters as composition, the view here is that the more
homogenous or less heterogeneous the group in terms of such
features as shared backgrounds, interests, attitudes and values
of its members, the easier it is usually to promote cohesiveness.
Variations in other individual differences or heterogeneous
groups in terms of gender, personalities, opinions, abilities,
skills, and perspectives connotes an increased probability that
the group will possess the needed characteristics to complete
its tasks effectively. On the other hand, such differences may
be the cause of disruption and conflict. Conflict can arise in
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homogeneous group where members are in competition with
each other.
c) PERMANENCE OF GROUP MEMBER: It takes time to

develop good spirit and relationship. Cohesiveness is said to be
more likely when members of a group are together for a
reasonable length of time and changes occur only slowly. A
frequent turnover of members is likely to have an adverse
effect on morale, and on the cohesiveness of the group.
7.8.1. GROUP STRUCTURE, PROCESSES AND TASKS

Group behaviour within the work environment is influenced by
1. THE WORK ENVIRONMENT
This is a function of:
(a) THE NATURE OF THE TASK: Where workers are
involved in similar work, share a common task or face the same
problems this may assist cohesiveness. The nature of the task
may serve to bring people together when it is necessary for
them to communicate and interact regularly with each other in
the performance of their duties, for example, members of a
research and development team. On the other hand, where a
task demands a series of relatively separate operations or
discrete activities i.e. on a machine paced assembly line it is
more difficult to develop cohesiveness.
(b) PHYSICAL SETTING: Where members of a group work in

the same location or in close physical proximity to each other
this will generally help cohesiveness. However, this is not
always the case. For example, in large open-plan offices staff
tend to segregate themselves from colleagues and create
169
barriers by the strategic siting of such items as filing cabinets,
bookcases or indoor plants.
(c) COMMUNICATIONS: The more easily members can

communicate freely with each other, the greater the likelihood
of group cohesiveness.
Communication is affected by the work environment, the
nature of the task and technology. Difficulties in
communication can arise with production systems where
workers are stationed continuously at a particular point with
limited freedom of movement.
Even when opportunities exist for interaction with colleagues,

physical conditions may limit effective communication. For
example, the technological layout and high level of noise with
some assembly line work can limit contact between workers.
Restrictions on opportunities for social interaction can hamper
internal group unity.
(d) TECHNOLOGY: The nature of technology and the manner

in which work is carried out has an important effect on
cohesiveness, and relates closely to the nature of the task,
physical setting and communications. Where the nature of the
work process involves a craft of skill-based 'technology' there
is a higher likelihood of group cohesiveness. However, with
machine-paced assembly line work it is more difficult to
develop cohesiveness.
2. ORGANISATIONAL FACTORS:
A) MANAGEMENT AND LEADERSHIP: The form of
management and style of leadership adopted will influence the
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relationship between the group and organisation, and is a
determinant of group cohesiveness. In other words,
cohesiveness will be affected by such things as the manner in
which the manager gives guidance and encouragement to the
group, offers help and support, provides opportunities for
participation, attempts to resolve conflicts, and gives attention
to both employee relations and task problems.
B) PERSONNEL POLICIES AND PROCEDURES: It is

believed that cohesiveness is more feasible within the group if
personnel policies and procedures are well developed and
perceived to ensure equitable treatment of all members.
C) SUCCESS: The more successful the group, the more cohesive

it is likely to be; and cohesive groups are more likely to be
successful. Success is usually a strong motivational influence
on the level of work performance. Success or reward as a
positive motivator can be perceived by group members in a
number of ways. For example, the satisfactory completion of a
task through co-operative action; praise from management; a
feeling of high status; achievement in competition with other
groups; benefits gained, such as high wage payments from a
group bonus incentive scheme.
D) EXTERNAL THREAT: Cohesiveness can be enhanced by
members cooperating with one another when faced with a
common external threat, such as changes in their method of
work, or the appointment of a new manager. Conflicts between
groups will also tend to increase the cohesiveness of each
group and the boundaries of the group become drawn more
clearly.
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7.8.2. DISADVANTAGES OF STRONG COHESIVE GROUPS
Strong and cohesive groups are said to pose potential disadvantages for
management partly because cohesive groups do not necessarily
produce a higher level of output. Performance varies with the extent to
which the group accepts or rejects the goals of the organisation.
Furthermore, with a very high level of cohesiveness and attention to
social activities, there may even be a fall in output.
The level of production is likely to conform to a standard acceptable as

a norm by the group and may result in maintaining either a high or a
restricted level of output. Individual differences in personality mean
that people make a contribution to the work of the organisation in
different ways and this influences the extent to which they wish to be
committed to a group or team culture. People also have a greater or
lesser need for personal space and their own sense of individual
identity.
Once a group has become fully developed and has achieved

cohesiveness, it is more difficult for the manager to successfully change
the attitudes and behaviour of the group. It is important that the
manager should attempt to influence the group during the forming stage
when members are establishing guidelines and standards and their own
norms of acceptable behaviour. When a group has become fully
developed and established its own culture, it is more difficult to change
the attitudes and behaviour of its members.
7.9. GROUP DECISION-MAKING

"Two heads are better than one" is a statement that has attained an
axiomatic standing today that in most situations, many decisions in
organisations are made by groups, teams, or committees. This makes
manifest the need to review group decision-making. However a
172
comparison of the individual and group in decision making might be
useful here.
7.9.1. THE INDIVIDUAL VERSUS THE GROUP

SPEED is one major advantage associated with individual decision-
making. An individual does not convene a meeting or engage in the
review of alternative courses of action.
Also ACCOUNTABILITY ranks in favour of individual decision-
making as you know who made the decision and therefore who is
responsible for the decisions outcome.
Thirdly, individual decisions convey consistent values. Group

decisions can suffer from intra-group power tussles as can be
exemplified in the decision-making process in the Nigerian legislature.
Decisions can vary by as much as 180 degrees from one session to the
next, reflecting the make-up of members and their ability to influence
their peers on any specific issue.
On its own strengths, groups generate more complete information and

knowledge. By aggregating the resources of several individuals, groups
bring more input into the decision process. Added to input, groups can
also bring heterogeneity to the decision process. They offer increased
diversity of views, so more approaches and alternatives can be
considered. So groups generate higher-quality decisions.
Finally, groups lead to increased acceptance of a solution. Many

decisions fail after the final choice is made because people don't accept
the solution. Group members, who participated in making a decision,
are more likely to enthusiastically support the decision and encourage
others to accept it. When both processes are compared (individual vs.
group), depending on the situation there are times when decisions are
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best handled by either of the processes. Overall, whether individuals or
groups should make a decision essentially comes down to weighing
effectiveness against efficiency.
In terms of effectiveness, groups are superior. They generate more

alternatives, more creative, more accurate, and produce higher-quality
decision than do individuals. Group’s efficiency suffers because they
consume more time and resources to achieve their solution.
7.10. GROUP DECISION MAKING TECHNIQUES

At this point we take a look at two important themes in group decision
making: concepts of group think and group shift
1. GROUP THINK
This is a phenomenon that occurs when group members become so
enamoured of seeking concurrence that the norm for consensus
overrides the realistic appraisal of alternative courses of action and the
full expression of deviant, minority, or unpopular views. It describes a
deterioration in an individual's mental efficiency', reality testing and
moral judgment as a result of group pressures. Also it is described as a
decision making process between a high cohesive group in which the
members are so pre-occupied with maintaining group consensus that
their critical abilities becomes ineffective.
Symptoms of Groupthink syndrome include the following:

1) Group members rationalize any resistance to the assumptions
they have made;
2) Members pressure any doubters to support the course of action
favoured by the majority;
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3) To give the appearance of group consensus, doubters keep
silent about misgivings and even minimise to themselves the
importance of their doubts and
4) The group interprets members' silence as a 'yes' vote for the
majority.
Jamis further identified eight characteristics of group think:

1) ILLUSION OF INVULNERABILITY: People acting on the
wave of initial successes are stimulated into further urge for
adventures.
2) SHARED STEREOTYPES: Here opposing views or

opponents are contemplated from point of view of
oversimplification and stereotyped ideological terms.
3) MORALITY: Groupthink victims look upon themselves as

highly moral agents of good against evil.
4) RATIONALISATION: Groupthink phenomena is propped

up by victims by coating their viewpoints in high sounding
words that portrays any line of action being decided upon in
positive lights i.e. invading Liberia because Liberians want
Nigerians to help and push out Charles Taylor's dictatorial
tendencies. The federal troops fought against Biafra to save the
minority regions from Igbo domination.
5) ILLUSION OF UNANIMITY: Although some advisers

might have doubts over a given line of action, no one will
express such doubts in order not to appear as undermining the
group's cohesiveness.
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6) CONFORMITY PRESSURES: This is closely associated
with illusion of unanimity. Individuals who have misgivings
arc reluctant to express them lest they incur the disapproval of
other group members
7) SELF-CENSORSHIP: Under the influence of group-think,

the cohesiveness of the group becomes such an overriding
consideration that individuals censor their divergent opinions.
8) MIND-GUARD: Within highly cohesive groups one or more

individuals generally emerge who undertake psychologically
to protect the group's integrity and unanimity by stifling
dissent. In effect, they become self-appointed mind-guards.
When group-think occurs, there are noted decision-making
deficiencies such as: incomplete assessment of the problem,
poor information search, selective bias in processing
information, limited development of alternatives, incomplete
assessment of alternatives, failure to examine risks of preferred
choice, and failure to reappraise initially rejected alternatives.
Symptoms of groupthink deficiencies have been noted in some U.S.

government decisions including the Bay of Pigs fiasco in 1961, the
escalation of the Vietnam War, the failed Iran hostage rescue mission
in the late 1970s, the invasion of North Korea in the 1950s, etc.
AVOIDING GROUPTHINK
The question to address here first is: Are all groups equally prone to
groupthink? The answer is No. Five variables have been identified to
influence groupthink symptoms. They include:
176
-The group's cohesiveness, its leader's behaviour, its insulation from
outsiders, time pressures, and failure to follow methodical decision-
making procedures.
Taking the above variables into consideration, efforts to minimize the

effect of groupthink deficiencies should therefore entail the following:
1) Cohesiveness can be an asset because highly cohesive groups
have more discussion and bring out more information than do
loose groups. Cohesiveness can also discourage dissent, so
managers should be wary when working with cohesive groups.
2) Managers should strive for an open leadership style. This

includes encouraging member participation, refraining from
stating one’s opinion at the beginning of the meeting,
encouraging divergent opinions (devil's advocate) from all
group members, and emphasizing the importance of reaching a
wise decision.
3) Also managers should avoid allowing the group to detach itself

from external sources. Insulated groups tend to lose
perspective and objectivity. Adequate information should be
sought and obtained. All warning signals from rivals should be
acknowledged and looked into.
4) Managers need to downplay time constraints. When group

members feel severe time pressures to reach a decision, they
resort to shortcuts. This inevitably lead to false or superficial
consensus.
5) Furthermore, Managers should encourage the use of

methodical decision making procedures. Following a rational
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decision-making process will promote constructive criticism
and a full analysis of decision options. This can involve the
following:
a) The leader to assign the role of critical evaluator to each
member, encouraging the group to give high priority to
erring objections and doubts;
b) The organisation should routinely establish several
independent learning and evaluation groups to work on
the same policy each carrying out its evaluations under a
different leader.
c) One or more qualified members within the organisation
who are not core members of the policy making group
should be invited to each meeting and be encouraged to
challenge the views of each member.
2. GROUP SHIFT
Comparisons of group decisions with the individual decisions of
members within the group might be used to address the question: How
does decision making in a group affect the decision? In some cases, it
is noted that the group decisions are more cautious than the individual
decisions. More often, the shift is toward greater risk, hence the risky
shift and cautious shift hypotheses.
From the study, it was deduced that what happen in groups is that
discussions lead to a significant shift in the positions of members
toward a more extreme position in the direction toward which they were
already leaning before the discussion. So conservative types become
more cautious and the more aggressive types take on more risk. The
group discussion tends to exaggerate the initial position.
178
The group shift is viewed as a special case of groupthink. The decision
of the group reflects the dominant decision-making norm that develops
during the group's discussion. Whether the shift in the group's decision
is toward greater caution or more risk depends on the dominant pre-
discussion norm. On the greater occurrence of the shift toward risk, it
has been suggested that the discussion creates familiarizations among
the members. As they become more comfortable with each other, they
also become bolder and daring. The most plausible explanation given
for the shift toward risk is that the group diffuses responsibility. Group
decisions free any single member from accountability for the group's
final choice. Greater risk can be taken because even if the decision fails,
no one member can be held wholly responsible.
So as a manager, it is necessary to recognise that group decisions

exaggerate the initial position of the individual members, that the shift
has been shown more often to be toward greater risk, "and that whether
a group will shift toward greater risk or caution is a function of the
members' pre-discussion inclinations
7.11. SELECTING THE BEST GROUP DECISION-MAKING

TECHNIQUE
Group decision making commonly takes place in face-to-face
interacting groups. But from our understanding of the groupthink
phenomenon, we know that interacting groups often censor themselves
and put pressure on individual members toward conformity of opinion.
In this wise, brainstorming, the nominal group technique, and
electronic meetings have been proposed as ways to reduce many of the
problems inherent in the traditional interacting group.
1. BRAIN STORMING
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Brain storming is meant to overcome pressures for conformity in the
interacting group that retard the development of creative alternatives.
This is done by utilizing an idea-generation process that specifically
encourages any and all alternatives, while withholding any criticism of
those alternatives. In a typical brainstorming session, half a dozen to a
dozen people sit around a table. The group leader states the problem in
a clear manner so it is understood by all participants. Members then
"freewheel" as many alternatives as they can in a given length of time.
No criticism is allowed, and all the alternatives are recorded for later
discussion and analysis; judgments of the most bizarre suggestions are
withheld until later, to encourage group members to "think the
unusual". In other words, brainstorming is merely a process of
generating ideas.
2. NOMINAL GROUP TECHNIQUE

The nominal group restricts discussion or interpersonal communication
during the decision making process, hence the term nominal group
technique. Group members are all physically present, as in a traditional
committee meeting, but the members are required to operate
independently. The chief advantage of this technique is that it permits
the group to meet formally but does not restrict independent thinking,
as often happens in the traditional interacting group.
3. ELECTRONIC MEETING
This is the most current approach to group decision making which
blends the nominal group technique with sophisticated computer
technology called the electronic meeting. When the technology is put
in place, issues are presented to participants and they type their
responses onto their computer screen. Individual comments, as well as
aggregate votes, are displayed on a projection screen in the room. The
180
major advantages of electronic meeting are anonymity, honesty, and
speed. Participants can anonymously type any message they want, and
it flashes on the screen for all to see at the push of a button on the
participant's keyboard. It also allows people to be honest without
fearing reprisals. And it is fast, because chitchat is eliminated,
discussions don't digress, and many participants can "talk" at once
without stepping on one another's toes.
CHAPTER SUMMARY
The chapter discussed classification of groups, why people join groups,
factors that govern formation of groups, stages of group development,
group interaction, the concept of roles in organisations, workgroup
behaviour, group structure, processes and tasks, disadvantages of
strong cohesive groups, individual/group decision making and group
decision making techniques.
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and Asika, (eds.), Readings in Organisational Behaviour in
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Multilevel theory, research, and methods in organisations:
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Organisations. Cornell University.
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REVIEW QUESTION 1
Group emphasizes commonality, explain your understanding of any
four among the following to explain group behaviour in a typical
manufacturing industry:
(i) Group cohesiveness
(ii) Groupthink
(iii) Team work
(iv) Committee
183
(v) Conformity
Group can be defined as two or more persons who are interacting with
one another in such a manner that each person influences or is
influenced by each other person.
Group can also be described as a number of people who interact with
one another and are psychologically aware of one another.
The features of any group include the following:-
• A group endure usually for a reasonable period
• A group has a common goal
• A group has developed at least a rudimentary group structure
Group Cohesiveness
This is deemed as that group property which is inferred from the
number and strength of mutual positive attitude among members of a
group. The more the values of the group are shared, the more cohesive
the group is likely to be, cohesiveness of the group will be greater if
changes in the membership of the group occur less or not at all.
Groupthink
This can be described as a determination of mental efficiency, reality
testing and moral judgment that results form in group pressures.
Team work
A team work can be defined as a cooperative small group in regular
contact that is engaged in coordinated action and whose members
contribute responsibly and enthusiastically to the task. The team work
makes the work easier and generally improves job satisfaction.
184
Committee
Committee comprises of a number of people that offer function
collectively for a common goal to which they are committed.
Committees are used in the accomplishment or organizational goal and
sub-goals.
Conformity
Conformity can be defined as a change in a person's opinion or r as a
result of real or imagines pressure from another person or group. In
common rise, it carries some negative connotation, a conformist is seen
as weak, a follower without an independent mind.
QUESTION 2
(a) Describe a work group experiencing performance problems
and the team building steps you as a manager would use to
address those problems.
(b) Adebayo Ezekiel is the manager of a group of editors at a small
publishing house His group must decide whether to accept a
particular book for publication and how to market it. The
book's topic is very controversial, but it has the potential for
making a huge profit for the company.
(i) Describe three of the ways in which this group might make the
decision.
(ii) What would be the consequences of each method in terms of

quality and acceptance of the final decision?
(a) Students should describe a situation with the following
elements:
185
(i) someone notices that a group problem exists.
(ii) members work together to gather and analyse data
relating to the problem.
(iii) the data is interpreted by the group and action plans are
made.
(iv) action plans for constructive change are implemented.
(v) results are evaluated.
(b) Students should choose from the following methods:

(i) Decision by lack of response: the final decision would
not have been critically evaluated and is not likely to
have a high acceptance rate.
(ii) Decision by authority rule: very time efficient but
quality is affected by whether the authority has enough
information; approach may not be accepted by group
members.
(iii) Decision by minority: only the minority group would
be satisfied and the decision may not be accepted by
group members.
CHAPTER 8
FOUNDATIONS OF ORGANISATIONS

1. Discuss organisational structure, types of organisational
structures and respective strengths and weaknesses of each
type.
2. Understand the nexus of organisation structure and
performance measurement at individual and group levels.
186
3. Discuss the relevance of work design and how it is affected
by technology.
4. Understand organisational policies and their roles in the
attainment of organisational objectives.
5. Understand performance evaluation
6. Discuss training steps, types and career development
7. Understand management of diversity in organisations locally
and internationally
8.1. ORGANISATIONAL STRUCTURE

The point to take proper note of in this section is the understanding that,
depending on their nature and functions, organisations have different
structures, and that these structures have a bearing on employee
attitudes and behaviour. An organisation means a formal structure of
planned coordination, involving two or more people, in order to achieve
a common goal. It is characterized by authority relationships and some
degree of labour activities.
An organisation structure then is noted to be a means to help

management achieve its objectives. Since objectives are mainly derived
from an organizations overall strategy, it is logical then that strategy
and structure should be closely linked. Hence, the observation that
structure of organisations follow strategy. It is in this sense that some
people take organisational structure to mean how job tasks are formally
divided, grouped and coordinated. In this wise, there are six key
elements that inform manager’s design of organizations structure which
include work specialisation, departmentalisation, chain of command,
span of control, centralisation/decentralisation and formalisation.
The variations in organisation structure as they might obtain in respect

of the aforementioned key elements are seen to range from highly
187
structured and standardised bureaucracy to a loose and amorphous,
boundary less organisations. This gives rise to two extreme models of
organisational structure: the mechanistic and the organic models. The
mechanistic model is synonymous with what is noted of modern day
bureaucracy which has extensive departmentalisation, high
formalisation, a limited information network (mostly downward
communication), and little participation by low-level members in
decision making.
At the other extreme is the organic model. This model is known to be

equally synonymous with what is regarded as the boundary less
organisation. It is flat in nomenclature, uses cross-hierarchical, and
cross-functional teams, has low formalisation, possesses a
comprehensive information network (using lateral and upward
communication as well as downward communication) and involves
high employee participation in decision making (Robbins, 1997).
8.2. TYPES OF ORGANISATIONAL STRUCTURE

1. FUNCTIONAL STRUCTURE
Functional structure is set up so that each portion of the organisation is
grouped according to its purpose. In this type of organisation, for
example, there may be a marketing department, a sales department and
a production department. It is a structure that consists of activities such
as coordination, supervision and task allocation. The organisational
structure determines how the organisation performs or operates. The
term organisational structure refers to how the people in an organisation
are grouped according to what they do and to whom they report. One
traditional way of organising people is by function. Some common
functions within an organisation include production, marketing, human
resources, and accounting.
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This organising of specialisation leads to operational efficiency where
employees become specialists within their own realm of expertise. The
most typical problem with a functional organisational structure,
however, is that communication within the company can be rather rigid,
making the organisation slow and inflexible. Therefore, lateral
communication between functions becomes very important, so that
information is disseminated, not only vertically, but also horizontally
within the organisation. Communication in organisations with
functional organisational structures can be rigid because of the
standardised ways of operation and the high degree of formalisation.
As a whole, a functional organisation is best suited as a producer of

standardised goods and services at large volume and low cost.
Coordination and specialisation of tasks are centralized in a functional
structure, which makes producing a limited amount of products or
services efficient and predictable. Moreover, efficiencies can further be
realised as functional organisations integrate their activities vertically
so that products are sold and distributed quickly and at low cost. For
instance, a small business could make components used in production
of its products instead of buying them.
Even though functional units often perform with a high level of
efficiency, their level of cooperation with each other is sometimes
compromised. Such groups may have difficulty working well with each
other as they may be territorial and unwilling to cooperate. The
occurrence of infighting among units may cause delays, reduced
commitment due to competing interests, and wasted time, making
projects fall behind schedule. This ultimately can bring down
production levels overall, and the company-wide employee
commitment toward meeting organisational goals.
189
2. DIVISIONAL STRUCTURE
Divisional structure typically is used in larger companies that operate
in a wide geographic area or that have separate smaller organisations
within the umbrella group to cover different types of products or market
areas. For example, an automaker may have divisions such as engine
parts, body, electrical, and so on. The divisional structure or product
structure consists of self-contained divisions. A division is a collection
of functions which produce a product. It also utilizes a plan to compete
and operate as a separate business or profit centre. According to
Zainbooks.com, divisional structure in America is seen as the second
most common structure for organisation today.
The advantage of divisional structure is that it uses delegated authority

so the performance can be directly measured with each group. This
results in managers performing better and high employee morale.
Another advantage of using divisional structure is that it is more
efficient in coordinating work between different divisions, and there is
more flexibility to respond when there is a change in the market. Also,
a company will have a simpler process if they need to change the size
of the business by either adding or removing divisions. When divisional
structure is utilized more specialisation can occur within the groups.
When divisional structure is organised by product, the customer has
their own advantages especially when only a few services or products
are offered which differ greatly. When using divisional structures that
are organised by either markets or geographic areas they generally have
similar function and are located in different regions or markets. This
allows business decisions and activities coordinated locally.
The disadvantage of the divisional structure is that it can breed
unhealthy rivalries among divisions. This type of structure may
increase costs by requiring more qualified managers for each division.
190
Also, there is usually an over-emphasis on divisional more than
organisational goals which results in duplication of resources and
efforts like staff services, facilities, and personnel.
3. MATRIX
The third main type of organisational structure, called the matrix
structure, is a hybrid of divisional and functional structure. Typically
used in large multinational companies, the matrix structure allows for
the benefits of functional and divisional structures to exist in one
organisation.
The matrix structure group employees operate by both function and

product. This structure can combine the best of both separate structures.
A matrix organisation frequently uses teams of employees to
accomplish work, in order to take advantage of the strengths, as well as
make up for the weaknesses, of functional and decentralised forms. An
example would be a company that produces two products, "product a"
and "product b". Using the matrix structure, this company would
organize functions within the company as follows: "product a" sales
department, "product a" customer service department, "product a"
accounting, "product b" sales department, "product b" customer service
department, "product b" accounting department.
• Weak/Functional Matrix: A project manager with only

limited authority is assigned to oversee the cross- functional
aspects of the project. The functional managers maintain
control over their resources and project areas.
• Balanced/Functional Matrix: A project manager is assigned
to oversee the project. Power is shared equally between the
project manager and the functional managers. It brings the best
aspects of functional and projectile organisations. However,
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this is the most difficult system to maintain as the sharing of
power is a delicate proposition.
• Strong/Project Matrix: A project manager is primarily
responsible for the project. Functional managers provide
technical expertise and assign resources as needed.
Matrix structure is only one of the three major structures. The other two
are Functional and Project structure. Matrix management is more
dynamic than functional management in that it is a combination of all
the other structures and allows team members to share information
more readily across task boundaries. It also allows for specialisation
that can increase depth of knowledge in a specific sector or segment.
There are both advantages and disadvantages of the matrix structure.

One of the disadvantages is an increased complexity of the chain of
command. This occurs because of the differentiation between
functional managers and project managers, which can be confusing for
employees to understand who is next in the chain of command. An
additional disadvantage of the matrix structure is higher manager to
worker ratio that results in conflicting loyalties of employees.
However the matrix structure also has significant advantages that make
it valuable for companies to use. The matrix structure improves upon
the “silo” critique of functional management in that it diminishes the
vertical structure of functional management and creates a more
horizontal structure which allows the spread of information across task
boundaries to happen much quicker. Moreover, matrix structure allows
for specialisation that can increase depth of knowledge & allows
individuals to be chosen according to project needs. This correlation
between individuals and project needs is what produces the concept of
maximising strengths and minimising weaknesses.
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8.3. ORGANISATIONAL STRUCTURE AND PERFORMANCE
MEASUREMENT
Organisational structure defines the supervisory relationships,
departmental structure and workflow within a company. Performance
management involves the systematic improvement of individual and
team performance through goal-setting and regular performance
reviews. Performance management systems and policies can be greatly
influenced by a company's organisational structure, and organisational
performance goals can help to shape a company's structure, as well.
Understanding the interplay between these two concepts can help you
to design the most effective performance management systems for your
organisational structure.
Structure and Performance

Organisational structure focuses on the layout of departments and job
roles in a company in the context of reporting relationships. A
company's structure can be drawn as a top-down flowchart, with each
connected node representing a different position in the company that
reports to the position above it and possibly supervises the positions
directly below it. Since performance management revolves around the
relationships between supervisors and their subordinates,
organisational structure can provide guidance on which positions
should include responsibility for monitoring and reviewing the
performance of people in other positions (Akintayo, 2008a).
Reporting Relationships and Performance Reviews

Organisational structure delineates who reports to and receives
instructions from whom. This in turn affects the ways in which
performance reviews are handled. If your organisational structure
features a tall hierarchy, for example, individuals are likely to work
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closely with a departmental supervisor who helps them to set
performance goals and performs an annual review of progress toward
those goals at least once per year. If you have a flatter hierarchy, on the
other hand, performance goals are more likely to be set by employees
themselves, while 360-degree feedback is more likely to be used to
monitor individuals' progress. Design performance review policies
around the structure of reporting relationships in your company to make
individual performance feedback more relevant to organisational goals.
Team vs. Individual Performance

Organisational structure can influence whether performance-
management systems focus on individual or team performance.
Traditional departmental structures with redundant job roles can lend
themselves well to individual performance reviews. In an accounting
department with five accounts-receivable clerks, for example, it would
be more logical to review each clerk's individual performance and
contributions to the department than review the team as a whole. In
organisational structures featuring close-knit, cross-functional teams,
on the other hand, it can be more meaningful to assess performance for
the group as a whole. In a team-oriented structure, managers must
choose between using team performance to make decisions on
individual compensation or to combine individual and group
considerations to ensure fairness to top performers.
Remote vs. In-House Employees

The distribution of in-house and remote job roles in a company is
defined by organisational structure, and it can impact a few practical
considerations in performance management. In many cases, remote or
work-at-home employees can find themselves at a disadvantage in
performance reviews. It can be challenging to accurately track how
much overtime a remote employee puts into a special project, for
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example. Remote employees can find fewer opportunities to help
others, provide strategic input in meetings, coach new employees and
contribute to team cohesiveness -- all of which can influence the
outcomes of performance reviews. Remote employees can also struggle
to keep up with new administrative policies as they evolve in the office,
which can tarnish others' perception of quality in their work. If you
employ a large number of remote employees, design your performance
review policies to work around these disadvantages by focusing on
individual goals related to individual job roles.
8.4. ORGANISATION DESIGN

Organisational design is the process of constructing and adjusting an
organisation's structure to achieve its goals. Organisational structure is
the linking of departments and jobs within an organisation. The
contextual variables that influence organisational design are size,
technology, environment, and strategy and goals. An organisational
design is a process for improving the probability that an organisation
will be successful. More specifically, Organisation design is a formal,
guided process for integrating the people, information and technology
of an organisation. It is used to match the form of the organisation as
closely as possible to the purpose(s) the organisation seeks to achieve.
Through the design process, organisations act to improve the
probability that the collective efforts of members will be successful.
Typically, design is approached as an internal change under the
guidance of an external facilitator. Managers and members work
together to define the needs of the organisation then create systems to
meet those needs most effectively. The facilitator assures that a
systematic process is followed and encourages creative thinking.
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8.5. WORK DESIGN AND TECHNOLOGY
Work design is a core function of human resource management and it
is related to the specification of contents, methods and relationship of
jobs in order to satisfy technological and organisational requirements
as well as the social and personal requirements of the job holder. Its
principles are geared towards how the nature of a person's job affects
their attitudes and behaviour at work, particularly relating to
characteristics such as skill variety and autonomy. The aim of a work
design is to improve job satisfaction, to improve through-put, to
improve quality and to reduce employee problems (e.g., grievances,
absenteeism). In this regard, technology has created numerous
opportunities for businesses to increase their overall success. Although
the explosive technology growth has increased productivity and
advancement, it has also created changes in organisations.
8.5.1. TECHNIQUES OF WORK DESIGN

1. Job rotation
Job rotation is a job design method which is able to enhance
motivation, develop workers' outlook, increase productivity, improve
the organisation's performance on various levels by its multi-skilled
workers, and provides new opportunities to improve the attitude,
thought, capabilities and skills of workers. Job rotation is also process
by which employees laterally mobilize and serve their tasks in different
organisational levels; when an individual experiences different posts
and responsibilities in an organisation, ability increases to evaluate his
capabilities in the organisation.
2. Job Enlargement
Hulin and Blood (1968)define job enlargement as the process of
allowing individual workers to determine their own pace (within
limits), to serve as their own inspectors by giving them responsibility
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for quality control, to repair their own mistakes, to be responsible for
their own machine set-up and repair, and to attain choice of method.
Frederick Hertzberg referred to the addition of interrelated tasks as
'horizontal job loading'.
3. Job enrichment
Job enrichment increases the employees’ autonomy over the planning
and execution of their own work. Job enrichment has the same
motivational advantages of job enlargement, however it has the added
benefit of granting workers autonomy. Frederick Herzberg viewed job
enrichment as 'vertical job loading' because it also includes tasks
formerly performed by someone at a higher level where planning and
control are involved.
8.5.2. TECHNOLOGY AND ORGANISATIONAL

BEHAVIOUR
Imagine going to work, only to discover that you have been
disconnected from all your ICT connections.would not have access to
any cell phones, computers, email, voicemail or other forms of
technology. Your day would consist of using a typewriter to complete
orders, and you would communicate through a landline phone. This
was a typical work day not that long ago.
Mobile phones, tablets, all-in-one desktops and sophisticated software

are just some of the radical changes that have affected organisations in
the last ten years. Although the explosive technology growth has
increased productivity and advancement, it has also created changes in
worker requirements, employee expectations and workplace changes.
The relationship between work design from the point of view of
organisational behaviour and technology can be explained with the
following:
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1. Worker Requirements
Today's companies have different worker requirements. They require
highly skilled workers who can learn quickly. Technology is now
evolving daily, and workers must be able to improve their skill with
minimal training. In order to find these highly sought-after employees,
companies have to widen their net by considering a diverse population.
Technology is even providing the abilities for disabled individuals to
work from home or contractors to be located overseas.
Companies expect that individuals will be lifelong learners and that

education does not distract them from their job. Technology-mediated
online courses and degrees will be expected to quickly improve
knowledge.
Lastly, companies do not look to hire lifelong employees. They need
employees who can respond quickly to changes in production due to
technology. Temporary, contract or consultants will be the choice of
employers due to their flexibility. In addition, these workers will have
a blurred line between work and family life due to the technological
pressures. They are now expected to be available twenty four hours a
day via their mobile phones and laptops.
2. Employee Expectations
Technology has also created increased employee expectations.
Employees want sophisticated training and elite working conditions.
Worker productivity hinges on the implementation and training of the
latest technology.
8.6. FOUNDATION OF HUMAN RESOURCES POLICIES

AND PRACTICE
The overall organisation planning and coordination of human resources
in an organisation is often referred to as the personnel or Human
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Resources management. This means the process of determining the
workforce and the means of keeping them satisfied. The determination
of work force here is a specialist's analysis to discover and answer the
questions that bothers on, and has to do with who fits into what and at
what stage of the process in the organization. This important
management prerequisite must be arranged in such a way that
organisations' goals and objectives are achieved as planned.
This foundation has to start from the calibre of individual personnel
that constitute the personnel management. Sequel to this, their
individual professionalism and specialty determines the form of
strategic methods of corporate planning of which the achievement of'
organisations goals and objectives depend upon.
Policy, foundationally, according to Fajana (2002), is a

"predetermined, selected course of action established as a guide toward
achieving desired goals and objectives. It is used to determine relatively
simple but important administrative procedures"
In general, the organisations policies can be categorised into two,
namely:
(i) General policy and
(ii) Specific or individual policy
• Though the policy of an organisation varies based on the
degree of size and complexity, formalisation and nature of
business, the origination begins with the basic streamlining of
the routine services of the organisation. Which may include:
• Preparation of job design and job evaluation for respective
positions
• Recruitment and selection of new work force
• Placement, development and training of staff
• Administration of staff welfare and other benefits
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• Administration of workers record
• Negotiation of workers working conditions, discipline and
general terms of employment with workers union
representatives.
• Advisory on health and safety matters
• Formation and agreeing of policy guiding personnel
• Advisory on employee promotion, transfer, demotion
dismissals
• Advisory on industrial law and statutory requirements and its
implications
• Trade union policy
• Wages and salaries administration
• Management of conflict / Dispute
• Appraisal.
• Retirement planning. Amongst others.
8.7. IMPORTANCE OF HUMAN RESOURCE POLICIES

1. They provide clear communication between the organization
2. They form a basis for treating all employees equitably.
3. They are a set of guidelines for supervisors and managers.
4. They create a basis for developing the employee’s handbook.
5. They establish a basis for regularly reviewing possible changes

affecting employees.
6. They form a context for supervisor training programs and

employee orientation programs.
200
7. They help the managers at various levels of decision making to
take decisions without the consulting their superiors.
Subordinates are more willing to accept responsibility because
policies indicate what is expected of them and they can quote a
written policy to justify their action.
8. It ensures long term welfare of employees and makes for good

employee relationship as favouritism and discrimination are
reduced. Well-established policies ensure uniform and
consistent treatment of all employees throughout the
organization.
9. It lays down the guidelines pursued in the organisation and

thereby minimizes the personal bias of managers.
10. It ensures prompt action for taking decisions because the

policies serve as standards to be followed. They prevent the
wastage of time and energy involved in repeated analyses for
solving problems of a similar nature.
11. It establishes consistency in the application of the policies over

a period of time so that each one in the organisation gets a fair
and just treatment. Employees know what action to expect in
circumstances covered by the policies. Policies set patterns of
behaviour and permit employees to work more confidently.
8.8. FACTORS THAT INFLUENCE HUMAN RESOURCE

POLICIES OF AN ORGANISATION.
1. National Laws: The various labour laws and legislation pertaining
to labour have to be taken into consideration. Policies should be
conformity with the laws of the country otherwise they are bound
to cause problems for the organisation.
201
2. Social values and customs: Social values and customs have to be
respected; otherwise the employees may be offended. Thus, the
values and customs of all communities should be taken into
accounts while framing policies.
3. Management philosophy and values: Management philosophy and

values influence its action on matters concerning the employees.
Therefore, without a clear broad philosophy and set values, it would be
difficult for the employees to understand management.
4. Financial impact: HR policies cost money, which will reflect in the

price of the product. Thus, the prices set the absolute limit to
organisation's HR policies.
8.9. PERFORMANCE EVALUATION

This is generally and commonly known as appraisal.
Employee appraisal otherwise called merit rating entails a periodical
assessment of individual employee, regarding their performance on the
job. This mechanism is designed to provide a glaring picture of
individuals' performance differences between work-force.
For appraisal to be effective and useful to meet the need of which it was
meant for, such as monitoring staff development and progress in skill
development, it should be free from partiality, inconsistency and bias.
Responsibility for Appraisal

This addresses the agitation of who is to appraise whom. For purposes
of fairness, some organisation will normally apply two or more of the
following methods of appraisal:
• A superior rating subordinates
• Subordinates rating superior
• Superior and subordinates rating their colleagues e.g. factory
202
supervisor vs. office supervisor.
• Subordinates rating themselves
• Superiors rating themselves
• Review of a superior rating of a subordinate by a senior person
The workers appraisal criteria especially for junior workers differ from
that of the managers, however, for obvious reasons; the rating criteria
may include the following:
(a) Punctuality
(b) Quality of work done
(c) Degree of initiative
(d) Dependability'
(e) Job knowledge and skilfulness
(f) Attitude to work
(g) Attitude towards colleagues and task group
(h) Attitude towards the organisation as a whole
Management appraisal criteria may include the following:
(a) Attitudes towards the organisation (b) Leadership qualities
(c) Degree of initiative
(d) Analytical competence
(e) Group behaviour
(f) Co-cooperativeness
(g) Persuasiveness
(h) Industrious outlook.
8.10. TRAINING AND CAREER DEVELOPMENT
203
Training and retraining of work force is a continuous exercise required
for the development of workforce both for organisational needs and
career advancement of individual personnel. Training may also be to
provide special skill, knowledge and other relevant attributes that can
be developed through learning (Akintayo, 2008b).
Training is an organized actions aimed at equipping an individual with
a particular skill or knowledge required to do a particular job e.g. skill
development.
8.10.1. STEPS IN TRAINING EXERCISE

An organisation’s training programmes can be planned, executed and
evaluated on the basis of the following steps:
• Determine the training need of - Individual employee
• Departmental level
• Organization level
• Establish who should be responsible for training programme
• Classify training into either external or internal
• Draw up training programme to include training objectives,
training methods and training sequences
• Appraisal of the training programme through feedback and
performance evaluation of the trained personnel
8.10.2. TYPES OF TRAINING

The following types of trainings are prominent in organisations:
(i) Job Training: this is a training programme designed to provide
the trainee the opportunity to actively practice the job under
intensive supervision until such skill required for satisfactory
performance on the job is acquired. This form of training is
mostly used in the manufacturing process where development
or impact of training can immediately be felt. The procedure in
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this form of training is that, the instructor introduces the trainee
to the job and afterward he or she is allowed to perform the
same operation with close supervision.
(ii) Craft or apprentice training: this training is carried out on the
job. It is very useful where proficiency can be developed only
after a relatively long period of instruction under expert. In
craft or apprentice training, the younger worker is assigned as
an assistant to skilled craftsman where upon the trainee learns
by watching and part taking in active operation.
(iii) Vestibule Training: this is a kind of an introductory approach

whereby training is done at simulated work area such that both
trainee and instructor are availed necessary opportunity to
concentrate on the training programme.
(iv) Operative training: this is commonly used for both blue collar
a clerical jobbers. Examples of these are evening lessons and
part time studies often pursued by employees, but sponsored
by their employers to supplement their basic learning process
on the job.
Other forms of training includes: Professional training, managerial

training, foreman training, junior / senior management training
In all of these, career development aims at increasing individual skill
and potential in his / her career pattern. The concept of staff
development through training is the manifestation of individual growth
on his job.
8.11. MANAGEMENT OF DIVERSITY IN

ORGANISATIONS.
205
In every modern organisational setting, it is definite that there will be
workers from diverse backgrounds especially in a multi-cultural society
like Nigeria. In some public service organisations for example, it is
expected that federal character be taken into consideration which
means that there will be people from different cultural background. The
level of diversity in organisations is expected to increase with the
number of staff strength ceteris paribus. The level of diversity may be
higher in transnational or multinational organisation where members of
staff have differential nationalities.
So when diversity occurs, we are left with the problem of adaptation,

endurance and integration. For example, how does a manager ensure
that his over 500 staff- apparently from different ethnic, religious and
national backgrounds- work together and relate in a way that improves
productivity in the organisation, and improve in self and skills
development? In reality, human beings by nature tend to relate with
“their own people” than with members of out-group, with implications
for the cohesion of the organisation. So how can managers ensure that
workers lose sight of their co-workers’ differences and work towards
organisational development? How can managers themselves ensure
that they are not being manipulated or pushed by cultural sentiments in
allocation and distribution of privileges and opportunities to members
of staff?
Management of diversity in organisations is also crucial because

bureaucracies-whether public service or private service- deal with
clients whom are from different social groups. So the extent to which
organisations and their members of staff are able to embrace and exploit
diversity with the outside world is associated with our well such
organisations will gain ground and be well known.
206
From the foregoing, one may be thinking that organisational diversity
is a problem that needs to be managed, but this is not the case as
diversity has a lot of benefits. Firstly, organisational diversity helps to
have a wide range of ideas. Because there are people from different
origins, ideas emanate from different perspectives so that in the end,
there will be a wide range of ideas from which the organisations can
choose; the different ideas may also be synthesised for better results.
Secondly, organisational diversity should supposedly bring about
cordial intergroup relations. In the process of work, members of staff
tend to know more about one other and the rationale for their actions,
so this exposes workers to the uniqueness in the history of different
groups across the universe. Thirdly, organisational diversity helps to
close the wide gap between different groups. In the process of
recruiting people from different backgrounds into an organisation, the
wide gap closes and the people tend to see themselves as equal rather
than being superior to other people.
As beneficial as organisational diversity may be, it is also a usual source

of downfall for organisations who fail to manage it or make exploit the
phenomenon. Counter-ideologies is one of the issues may arise from
organisational diversity; sometimes, it is usually accompanied by
ideological hegemony/domination of feelings of ideological
superiority. This happens when a particular group of people who share
similar backgrounds in organisations feel and think that their own ways
of reasoning is the best and superior to every other thoughts or ideas in
the organisation. Organisational diversity may bring about the downfall
of an organisation in the area of incentives. Some groups may feel that
the distribution of incentives and other opportunities is tilted to one end
in favour of those who share cultural background with the manager or
other top executives. Plots to reduce productivity at the detriment of the
organisation may begin from there.
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Thus, the tips below are useful in managing diversity in organisations.
The tips are:
1. Sensitivity: Managers should be sensitive to all their activities
and dealing and dealing in the organisation. The degree to
which they interact with members of their own group should
not be apparently different from the degree to which they
mingle or relate with members of other groups so that the latter
will not begin to have some feelings of marginalisation.
2. Similar quota in recruitment: The number of one group in

an organisation should not be significantly different from
others.If,for instance, group A has 73 members and group B,
just 4, that sends a signal to members of group B that they are
in the minority. Beware that feelings of marginalisation and
intimidation are dangerous and counter-productive.
3. Open criteria for rewards: Every member of staff should be

aware of the criteria by which workers are promoted and
rewarded so that they will understand why worker A is
promoted before worker B.
4. Establishing diversity programmes: Management of

organisations should begin to set up diversity programmes
which should aim at promoting unity and embracement of out-
groups’ values in the organisation.
8.11.1. THE PARADOX OF DIVERSITY

A contemporary challenge for managers of today is in socialising new
employees who, because of race, gender, ethnic, or other differences,
are not like the majority of the organisations members. This situation
208
creates what we call the paradox of diversity. Management wants new
employees to accept the organisation's core cultural values. Otherwise,
these employees are unlikely to fit in or be accepted. But at the same
time, management wants to openly acknowledge and demonstrate
support for the differences that these employees bring to the work
place. Strong cultures put considerable pressure on employees to
conform. They limit the range of values and styles that are acceptable.
Obviously, this creates a dilemma.
Organisations hire diverse individuals because of the alternative views

these people can bring to work place, yet these diverse behaviours and
strengths are likely to diminish in strong cultures as people attempt to
fit in. Management’s challenges in this paradox of diversity are to
balance two conflicting goals: Get employees to accept the
organisations dominant values and encourage the acceptance of
differences. Too much attention to investiture rites is likely to create
employees who are misfits. On the other hand, too much emphasis on
divestiture rites may eliminate those unique strengths that people of
different backgrounds bring to the organization. The term used to
describe this challenge is work force diversity.
8.12. THE MEANING OF WORKFORCE DIVERSITY

Organisations adapting to people who are different in what is described
as work force diversity means that organisations are becoming more
heterogeneous in terms of gender, race, and ethnicity. But, as hinted
earlier, the term encompasses anyone who varies from the "norm". In
addition to the more obvious groups differentiated by gender and ethnic
or racial backgrounds, the term also includes the physically disabled,
gays, lesbians and the elderly. The "melting pot" approach to
differences in organisations was initially advocated on the assumption
that people who were different would somehow automatically want to
209
assimilate. But it is now recognized that employees don't set aside their
cultural values and lifestyle preferences when they come to work. The
challenge for organisations, therefore, is to make themselves more
accommodating to diverse groups of people by addressing their
different lifestyles, family needs and work styles. The "melting - pot"
assumption is being replaced by one that recognizes and values
differences. Work force diversity has important implications for
management practice. Managers will need to shift 'their philosophy
from treating everyone alike to, recognising differences and responding
to those differences in a way that will ensure employee retention and
greater productivity - while, at the same time not discriminating.
Diversity, if positively managed, can increase creativity and innovation
in organisations as well as improve decision makings by providing
different perspectives on problems. When diversity is not managed
properly, there is potential for higher turnover, more difficult
communication and more interpersonal conflicts.
8.13. GLOBALISATION AND DIVERSITY

The point is made that management is no longer constrained by national
borders in the sense that the world has become a global village. Thus
managers have to become capable of working with people from
different cultures, Globalisation is said to affect a manager's people
skills in at least two ways. First, as a manager, you are increasingly
likely to find yourself in a foreign assignment. Once there, you will
have to manage a work force that is likely to be very different in needs,
aspirations and attitudes from the ones you were used to back home.
Second, even in your own country, you are going to find yourself
working with bosses, peers and subordinates who were born and raised
in different cultures. What motivates you may not motivate them, your
style of communication may be straightforward and open, but they may
find this style uncomfortable and threatening. To work effectively with
210
these people, you will need to understand their culture, how it has
shaped them and how to adapt your management style to their
differences. At this point a need arises for the provision of some
frameworks for understanding differences among national cultures
which might require managers to modify their practices.
CHAPTER SUMMARY
The chapter discussed organisational structure and types,
organisational structure and performance measurement, organisational
design, work design and technology, work design techniques,
foundation of human resources policies and practice, importance of
human resources policies, factors that influence human resources
practices in organisations, performance evaluation, training and career
development, steps in training exercise, types of training, management
of diversity in organisations, meaning and paradox of diversity and
globalisation and diversity
211
REFERENCES
Akintayo, O. A (2008a).Performance Appraisal (As a means of keeping
workers effective
in organisations). African Journal of Technology Policy.Vol 4, No. 1.
pp 90-127.
Akintayo, O. A (2008b).Training and development (ensuring workers
effectiveness in organisations).
West African Journal of Management and Liberal Studies.Vol.1, No.
1. pp 133-160.
Hodson, R. & Sullivan, T. (1995) The Social Organisation of Work (2nd
edition) California: Wadsworth Publishing Company
McShane, S. & Von Glinow, M. (2008) Organizational Behaviour (4th
Robbins, S. P. (1997). Essentials of Organisational Behaviour (5th
Edition) New Jersey: Prentice Hall Inc.
212
REVIEW QUESTIONS
QUESTION 1
(a) Mention some forms of organisational support
Show how a lack of organisational support for teaching might
inhibit the otherwise capable and motivated instructor from
doing a good job in the classroom. I
(b) Mention and defend a list of competency characteristics that
might be associated with high performance as a market
researcher, a personnel specialist and an assembly line worker.
(a) Forms of organisational support include
- Proper equipment
- Proper tools
- Available technical advice
- Appropriate technologies
- Appropriate structures
- Adequate goals and
- Objectives and job design
There are many others and you should only be rigorous to ensure that
students are not reaching over into areas of individual attributes or work
effort in responding to the question. It is interesting to have students
assess organisational support for a college instructor. Some of the
support we are sometimes missing includes inadequate classroom
space, missing includes inadequate classroom space, the lack of media
equipment when needed or many of the other obstacles which you
surely have had to face on occasion.
213
(b) This can go a number of ways. Mainly press students to defend their
choices and establish why a particular characteristic would truly be
differentiating for persons in each job.
They should show good reasoning that is logical and defensible, not
just "off-hand" thoughts. They should have a "defensive" argument not
subject to discrimination complaints.
QUESTION 2
Tony was discussing organisation socialisation of new employees with
his first-line supervisors. He explains that when they are interviewing
people they need to be careful to explain both the upside and downside
of the job for which they are hiring. The company has received some
bad publicity lately from some very public quits after one week of work
by a large number of new employees who found the work to be much
more demanding than they were told it was.
Tony explained that while most people have information about a

company before they come to work, they really do not learn the
organisational culture, company expectations, etc., until they are
working there. As a consequence, Tony wants a formal orientation
programme during the first two weeks of employment and an initiation
dinner party at the end of six months for all new hires to recognise their
adjustment and success with the company.
Required
(a) Discuss the tool the first line supervisors could use to minimize
the problem the company recently had with new employee
quits.
214
(b) What stage of socialisation is Tony referring to when he talks
about people having information on the company before they
come to work?
(c) The recognition/initiation party Tony is suggesting would

mark the end of which stage of socialisation?
(a) The Student discussion should centre on realistic job previews
(b) The stage of socialisation that Tony is referring to when he talks

about people having information on the company before they come
to work is getting in. The Student is expected to discuss in full this
stage of getting in
(c) The recognition/initiation party would mark the settling in stage of

socialisation. The student is expected to explain in detail this stage
with all the necessary factors associated.
CHAPTER 9
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ORGANISATIONAL DYNAMICS AND CHANGE

1. Understand the concept of change with emphasis on the alteration
in organisational context
2. Know the internal and external determinants of organisational
change
3. Understand the types of change in organisations and aspects of
concentration during planned or deliberate change
4. Make you understand how to formulate objectives of a planned
change and how to embark on the processes involved in such
change
5. Know the change agents and how to overcome resistance to change
6. Understand work stress, symptoms, sources and consequences
9.1. INTRODUCTION
Change refers to any alteration that occurs in total work environment.
Generally people are accustomed to a well-established way of life and
any variation in or deviation from that life may be called a change.
Change may be very simple just like to shift the location of an office or
it may be a more complex technological change which may even
threaten the very existence of some people in the organisation.
Organisational change is an essential concept to understand in our

complex world. It is both the process in which an organisation changes
its structure, strategies, operational methods, technologies, or
organisational culture to affect change within the organisation and the
216
effects of these changes on the organisation. Organisational change can
be continuous or occur for distinct periods of time. The study of
organisational change is interdisciplinary in nature and draws from the
fields of Psychology, Sociology, Political Science, Economics, and
Management.
Organisational change is a fundamental strategy for ensuring that a

public organisation remains relevant in a changing environment. An
organisation that is able to manage change well will maintain its
productivity and relevance over time. An organisation that is not able
to change will become increasingly dysfunctional, unproductive and
irrelevant. An organisation in which change is not managed well will
suffer greater costs-in terms of finances, opportunity, productivity and
reputation-than necessary when trying to change.
9.2. FORCES INFLUENCING CHANGE

There are a number of factors both internal and external which affect
organisational functioning. Any change in these factors necessitates
change in an organization. The more important factors are as follows:
A. INTERNAL FORCES
Internal forces are too many and it is very difficult to list them
comprehensively. However, major internal causes are explained as
follows:
1. Change in Managerial Personnel: Change in managerial personnel
is another force which brings about change in organisation. Old
managers are replaced by new managers. The change is caused by
promotion, retirement, transfer or dismissal. Each manager brings his
own ideas and way of working in the organisation. The informal
relationships change because of changes in managerial personnel.
Sometimes, even though there is no change in personnel, these are
217
changes in the behaviour of people. As a result, the organisation has to
change accordingly.
2. Deficiencies in Existing Management Structure: Sometimes

changes are necessary because of some deficiencies in the existing
organisational structure, arrangement and processes. These deficiencies
may be in the form of unmanageable span of management, larger
number of managerial levels, lack of co-ordination among various
departments, obstacles in communication, multiplicity of committees,
lack of uniformity in policy decisions, lack of cooperation between line
and staff and so on. However, the need for change in such cases goes
unrecognised until some major crisis occurs.
3. To Avoid Developing Inertia: In many cases, organisational

changes take place just to avoid developing inertia or inflexibility.
Conscious managers take into account this view that organisation
should be dynamic because any single method is not the best tool of
management every time. Thus, changes are incorporated so that the
personnel develop liking for change and there is no unnecessary,
resistance when major changes in the organization are brought about.
4. Nature of the work force: Instances in this regard includes tendency

towards more cultural diversity, increase in professionals as well as
many new entrants with inadequate skills. The point here is that almost
every organisation has to adjust to a multicultural environment. Human
resource policies and practices have to change in order to attract and
keep this more diverse work force. In today's global economy
competitors are so likely to come from across the ocean as from across
town. Heightened competition also makes it necessary for established
organisations to defend themselves against both traditional competitors
218
who develop new products and services and small entrepreneurial firms
with innovative offerings.
Successful organisations will be the ones that can change in response

to the competition. They'll be fast on their feet, capable of developing
new products rapidly and getting them to market quickly. They'll rely
on short production runs, short product cycles arid an ongoing stream
of new products. In other words, they will be flexible. They will require
an equally flexible and responsive work force that can adapt to rapidly
and even radically changing conditions.
B. EXTERNAL FORCES
External environment affects the organisations both directly and
indirectly. The organisations do not have any control over the variables
in such an environment. Accordingly, the organisation cannot change
the environment but must change them to align with the environment.
Factors that drive change are:
1. Technology: Technology is the major external force which calls for
change. The adoption of new technology such as computers,
telecommunication systems and flexible manufacturing operations has
profound impact on the organisations that adopt them.
The substitution of computer control for direct supervision is resulting

in wider spans of control for managers and flatter organizations.
Sophisticated information technology is also making organizations
more responsive. Both the organizations and their employees will have
to become more adaptable. Many jobs will be reshaped. Individuals
who do routine, specialised and narrow jobs will be replaced by
workers who can perform multiple tastes and actively participate in
decision making. Managements will have to increase their investment
in training and education of the employees because employees' skills
219
are becoming obsolete more quickly. Japanese firms have progressed
rapidly because they are very fast in adopting new technological
innovations.
2. Marketing Conditions: Marketing conditions are no more static.

They are in the process of rapid change as the needs, desires and
expectations of the customers change rapidly and frequently.
Moreover, there is tough competition in the market as the market is
flooded with new products and innovations every day. New methods of
advertising are used to influence the customers. Today the concept of
consumerism has gained considerable importance and thus, the
consumers are treated as the kings.
3. Social Changes: Social and cultural environment also suggest some

changes that the organisations have to adjust for. There are a lot of
social changes due to spread of education, knowledge and a lot of
government efforts. Social equality – equal opportunities to women,
equal pay for equal work– has posed new challenges for the
management. The management has to follow certain social norms in
shaping its employment, marketing and other policies.
4. Political Forces: Political environment within and outside the

country have an important impact on business especially the
transnational corporations. The interference of the government in
business has increased tremendously in most of the countries. The
corporate sector is regulated by a lot of laws and regulations. The
organisations do not have any control over the political and legal forces,
but they have to adapt to meet the pressure of these forces. In our
country, the new economic, policy has liberalised the economy to a
large extent. Many of the regulatory laws have been amended to reduce
the interference of the Government in business. An organisation is also
220
affected by the world politics. Some of the changes in the world politics
which have affected business all over the world are e.g., the
reunification of Germany, Iraq's invasion of Kuwait and the break of
Soviet Union.
9.3. TYPES OF ORGANISATIONAL CHANGE

Organisational change is the process of moving from established to new
ways of thinking, behaving or working. There are three main types of
organisational change. Each requires different types of effort and
leadership actions, and each carries different risks:
• Developmental: improvement, refinement or enhancement of

what already exists.
• Transitional change: moving from an old to a new state with
activities oriented towards creating the new and ‘switching off’
the old. This type of change lends itself to a planned project
approach. Most change management literature focuses on this
type of change.
• Transformational: fundamental changes in strategy, identity,
worldview, mind-set, culture; changes in ‘who we are’ and
‘what we do’. This is sometimes referred to as discontinuous
or disruptive change. With this type of change, while the
imperative for change is clear at the start, the end point and full
impact of the change are less so. Clarity only emerges as a
product of the change activities, which, themselves, will be
non-linear.
Transformational change is often the hardest to achieve because it

requires staff to change aspects of who they are. It also requires leaders
to change their own identity, worldview and mind-set. Many people,
including organisational leaders, have little willingness (or incentive)
221
to adopt radically different ways of making sense of, and interacting
with, the world around them. And yet this is exactly what is required
during transformational change.
9.4. AREAS OF FOCUS DURING CHANGE

Organisational leaders and managers need to keep a focus on three
interdependent but equally important areas during an organisational
change project:
1. Content: what, specifically, is to change in the organisation.
This includes processes, strategy, structure, technology, habits,
ways of thinking, and/or culture (values and identity).
2. Process: how change will occur in the organisation.
Considerations about process include who will direct and be
accountable for aspects of the change, the speed of change,
communication about the change, and monitoring change
success.
3. People: the role that human dynamics will play in achieving
successful outcomes (or otherwise) from the change, as well as
the impact that the changes will have on human dynamics.
Particular consideration needs to be given to the emotional
impacts of change and the behavioural responses prompted by
change.
Organisational leaders often focus on what needs to change (content).

Sometimes the focus on the ‘what’ come at the expense of considering
how the change will happen (process) and, especially, the emotional
side of change (human dynamics). The leadership bias towards content,
and ‘blindness’ to process and human dynamics, is one of the major
reasons why organisational change initiatives fail, stall, or become
more difficult than they need to be.
222
9.5. MANAGING PLANNED CHANGE
To brace up to the challenges of the automobile world, a hypothetical
motor manufacturing company is planning for the construction of an
up-to-date African bus. In view of this project, it might decide to install
state-of-the-art robotics. One area that would receive the new
equipment might be quality control. This entails that sophisticated
computer controlled equipment would be put in place to significantly
improve the company's ability to find and correct defects. Since the new
equipment would dramatically change the jobs of the people working
in the quality control area, and since management anticipates
considerable employee resistance to the new equipment, executives
should develop a programme to help people become familiar with the
equipment and to deal with any anxieties they might be feeling.
The above scenario is an example of change-being concerned with
making things different. Principally, the situation is better described as
planned change. In most situations, things just happen and individuals
react to it. That is not planned change, a situation where some
organizations treat all change as an accidental occurrence as in the
distressed bank scenario that occurred in Nigeria in the not-too distant
past (Akintayo, 2008b). However we are concerned with change
activities that are proactive and purposeful. Thus we address change as
an intentional, goal- oriented activity.
9.6. GOALS OF PLANNED CHANGE

Essentially, there are two goals under consideration. The first one is
that it seeks to improve the ability of the organisation to adapt to
changes in its environment. Secondly, it seeks to change employee
behaviour. If an organisation is to survive, it must respond to changes
in its environment. When competitors introduce new products or
services, government agencies enact new laws; important sources of
supply go out of business, or similar environmental changes take place,
223
the organisation needs to adapt. Efforts to introduce work teams,
decentralized decision making and new organisational cultures are
examples of planned change activities directed at responding to
changes in the environment. Since an organisations success or failure
is essentially due to the things that employees do or fail to do, planned
change also is concerned with changing the behaviour of individuals
and groups within the organisation. In this regards there are several
techniques that organisations use to get people to behave differently in
the tasks they perform and in their interaction with others.
A further issue to address is the question: who in the organisation is

responsible' for managing change activities? The answer to this is
change agents. Change agents can be managers or non-managers,
employees of the organisation or outside consultants.
For major change efforts, internal management often hires- the services
of outside consultants to provide advice and assistance. Because they
are from outside, they can offer an objective perspective often
unavailable to insiders. Outside consultants, however are
disadvantaged because they usually have an inadequate understanding
of the organisations history, culture, operating procedures, and
personnel. Outside consultants also may be prone to initiating more
drastic changes - which can be a benefit or a disadvantage - because
they do not have to live with the repercussions after the change is
implemented. In contrast, internal staff specialists or managers, when
acting as change agents, may be more thoughtful (and possibly
cautious) because they must live with the consequences of their actions.
9.7. TWO VIEWS ON CHANGE

To some people change in organisations entails that once in a while a
stormy situation arises which the manager needs to make appropriate
adjustments to implementing change in organisations should therefore
224
be seen as a response to a break in the status quo and needed only in
occasional situations.
Another viewpoint sees change in organisations as a natural state,
therefore managing change is a continual process. Both viewpoints are
described as the “calm water simile” and the “white-water rapids"
simile respectively.
1. The "Calm Waters" Simile

The "Calm - waters" simile is classically illustrated in Kurt Lewin's
three-step description of the change process. According to Lewin,
successful change requires unfreezing the status quo, changing to a new
state and refreezing the new change to make it permanent. The status
quo can be considered an equilibrium state. Moving from this
equilibrium requires unfreezing, which can be achieved in one of three
ways:
i. The driving forces, which direct behaviour away from the
status quo, can be increased
ii. The restraining forces, which hinder movement from the
existing equilibrium, can be decreased.
iii. The two approaches can be combined
Once unfreezing has been accomplished, the change itself can be

implemented. However, the mere introduction of change does not
ensure that it will take hold. The new situation therefore needs to be
refrozen so it can be sustained over time. The objective of refreezing
then is to stabilize the new situation by balancing the driving and
restraining forces. It is to be noted that Lewin's three-step process treats
change as a break in the organisation's equilibrium state. The status quo
has been disturbed and change is necessary to establish a new
equilibrium state. In periods of relative calm, this view might have been
appropriate for most organisations, but the point is that "calm waters"
225
no longer define the kind of seas that current managers have to
negotiate.
2. The "White-Water Rapids" Simile

The "white-water rapids~' simile realistically allies with uncertain and'
dynamic environments. It is also consistent with the dynamics
associated with going from an industrial society to a world dominated
by information 'and ideas. For instance university education in Nigeria
is, one characterised by unpredictability as it concerns the 'academic
time-table and unpredictability of the lecturers’ moods, sentiments and
tendencies. To succeed in this setting therefore as a student, one has to
be incredibly flexible and able to respond quickly to every changing
condition. Students who are over structured, rigid or slow on their feet
wouldn't survive.
In the above sense, a growing number of managers have come to

appreciate the fact that stability and predictability does not exist. The
managers equally understand that disruptions in the status quo are only
occasional Nor are disruptions in the status quo only occasional and
temporary, followed by a return to calm waters. Many of today’s
managers face constant change, bordering on chaos. Thus they have
been forced to a situation of being governed by rules that are created as
the game progresses.
Few organisations today can treat change as the 'occasional disturbance

in an otherwise peaceful world, and any that does do so at great risk.
Too much is changing too fast for any organisation or its managers to
be complacent.
9.8. RESISTANCE TO CHANGE
226
It is one of the fundamental findings of OB studies that organisations
and their members resist change. In a way, this resistance is seen as
positive. To start with, it provides a degree of stability and
predictability to behaviour. If there weren't some resistance,
organisational behaviour would take on characteristics of chaotic
randomness. Resistance to change can also be a source of functional
conflict. Thus resistance to a reorganisation plan or a change in a
product line can stimulate a healthy debate over the merits of the idea
and result in a better decision. On the negative side, resistance to
change is noted to hinder adaptation and progress.
Resistance to change can assume various forms. It can be overt,

implicit, immediate or deferred. It is easiest for management to deal
with resistance when it is over and immediate. For instance, a proposed
change can lead employees to respond by voicing complaint, engaging
in a work slowdown, threatening to go on strike, and so on. The greater
challenge is however encountered in managing resistance that is
implicit or deferred. Implicit resistance efforts are subtle such as loss
of loyalty to the organisation, loss of motivation to work, increased
errors or mistakes, increased absenteeism due to "sickness" and so on.
And these are very difficult to recognise. Similarly, deferred actions
cloud the link between the source of the resistance and the reaction to
it. Thus a change may produce what appears to be only a minimal
reaction at the time it is initiated but surfaces weeks, months or even
years later. Reactions to change can build up and then explode in some
response that seems totally out of proportion to the change action it
follows. The resistance, of course, has merely been deferred and
stockpiled, what' surfaces is a response to an accumulation of changes.
9.8.1. SOURCES OF RESISTANCE
227
This has been categorized into individual and organisational sources
though in real operations, both are noted to overlap often.
Individual Resistance: Individual sources of resistance to change is

noted to reside in basic human characteristics such as perceptions,
personalities and needs Five reasons have been identified as being the
reasons why individuals may resist change. They include habit,
security, economic factors, and fear of the unknown and selective
information processing.
Habit: As human beings, individuals are creatures of and in the welter

of life's complexities; they need to consider the full range of options for
the hundreds of decisions that they have to make every day. To cope
with this complexity, individuals rely on habits or programmed
responses. Thus when people are confronted with change, this tendency
to respond in their accustomed ways becomes a source of resistance.
Security People who have high need for security are likely to resist
change because it threatens their" feeling of safety. For instance when
a manufacturing firm announces that it may layoff some of their staff
for logistic reasons, many employees at these firms may fear that their
jobs are in jeopardy.
Economic Factors: Concern that changes will lower one’s income may
result to resistance to change. Changes in job tasks or established work
routines also can arouse economic fears if people are concerned they
won't be able to perform the new tasks or routines to their previous
standards, especially when pay is closely tied to productivity.
Fear of the Unknown: Changes substitute ambiguity and uncertainty

of the known. Regardless of how much one may dislike attending
university education, at least one would know what is expected of
228
him/her when one leaves college and get into the employment market,
regardless of how one want to get out of university, he/ she has to trade
the known for "the unknown.
Employees in organisations hold the same dislike for uncertainty. If for
instance, the introduction of TQM requires that production workers
learn statistical process control techniques, some may fear they might
not be able to do so. They may therefore develop a negative attitude
toward TQM or manifest dysfunctional behaviour if required to use
statistical techniques.
Selective Information Processing: It has been noted that individuals

shape their world through their perceptions. Once they have created this
world, they resist changing it. So individuals are said to be guilty of
selectively processing information in order to keep their perceptions
intact. They hear what they want to hear. They ignore information that
challenges the world they have created. Production workers faced with
the introduction of TQM in all organisation may ignore the arguments
their bosses make in explaining why knowledge of computer is
necessary or the potential benefits the change will provide them.
9.8.2. ORGANISATIONAL RESISTANCE

Organisation by their nature, are seen to be characteristically
conservative. They actively resist change. Understandably, government
agencies want to continue doing what they have been used to for years,
whether the need for their service changes or remains the same. For
instance, changing church doctrines requires great persistence and
patience. Educational institutions, which exist to open minds and
challenge established doctrines, are themselves extremely resistant to
change. There are six noted major sources of organisation resistance.
They include:
229
Structural Inertia: Here it is noted that organisations have in built
mechanisms that produce stability. For example, the selection process
systematically selects certain people in and certain people out. Training
and other socialisation techniques reinforce specific role requirements
and skills. Formalisation provides job descriptions, rules and
procedures for employees to follow. People hired into an organisation
are chosen for fit; they are then shaped and directed to behave in certain
ways. When an organisation is confronted with change, this structural
inertia acts as a counter balance to sustain stability.
Limited focus of Change: Organisations are made up of

interdependent subsystems. You can't change one without affecting the
others. For example, if management change the technological processes
without simultaneously modifying the organisation's structure to
match, the change in technology is not likely to be accepted. So, limited
changes in subsystems tend to get nullified by the larger system.
Group Inertia: The point is made that even if individuals want to
change their behaviour, group norms may act as a constraint. An
individual union member, for instance, may be willing to accept
changes in his job suggested by management. But it union norms
dictate resisting any unilateral change made by management, he is
likely to resist.
Threat to Expertise: Changes in organisational patterns may threaten

the expertise of specialised groups. The introduction of decentralised
personal computers which allow managers to gain access to
information directly from a company’s main frame, is an example of a
change that was strongly resisted by many information systems
department at the earlier phase. This was because decentralised end-
user computer was a threat to the specialized skills held by those in the
centralised information systems departments.
230
Threat to Establishment Power Relations: It is observed that any
redistribution of decision making authority to threaten long power
relationships within an organisation. Introduction of participative
decision making or autonomous work teams are examples of changes
that often are seen as threats to the power of supervisors and middle
managers.
Threat to Established Resource Allocations: Groups in an

organisation that control sizeable resources often see change as a threat.
They tend to be content, with the way things are. In other words, those
who most benefit from the current of resources are often threatened by
changes that may affect future allocations.
9.9. OVERCOMING RESISTANCE TO CHANGE

Six methods have been suggested for use by change agents in dealing
with resistance to change. They include:
Education and Communication: Here, the view is that resistance can
be reduced through communicating with employees to help them see
the logic of a change. This tactic basically assumes that the source of
resistance lies in misinformation or poor communication. For instance,
if employees receive the full facts and get any misunderstandings
cleared up, resistance will subside. Employees can be educated through
one-on-one discussions, memos, group presentations or reports. This
procedure works provided that the source of resistance is inadequate
communication and that management employee relations are
characterised by mutual trust and credibility. If those conditions do not
exist, the change is unlikely to succeed. In addition, the time and effort
that this tactic involves must be considered against its advantages,
particularly when the change' affects a large number of people.
231
Participation: The view is held that it is difficult for individuals to
resist a change decision in which they participated. Before a change is
made, those opposed can be brought into the decision process. If the
participants have the expertise to make meaningful contributions, their
involvement can reduce resistance, ensure commitment and increase
the quality of the change decision. Against these advantages are the
negative connotations which include a potential for a poor solution and
great time consumption.
Facilitation and Support: Change agents can offer a range of

supportive efforts to reduce resistance. When employee fear and
anxiety are high, employee counselling, and therapy, new skills training
or a short paid leave of absence may facilitate adjustment. The
drawback of this tactic is that, like education and participation, it is
time-consuming. It is also expensive, and its implementation offers no
assurance of success.
Negotiation: Another way for the change agent to deal with potential
resistance to change is to exchange something of value for a lessening
of the resistance. For instance, if only a few powerful individuals are
resisting, a specific reward package can be negotiated that will meet
their individual needs. Negotiation as a tactics may be necessary when
resistance comes from a powerful source. Yet one cannot wish for it
because of its potentially high costs. In addition there is the risk that,
once a change agent negotiates to avoid resistance, he or she is open to
the possibility of being blackmailed by other individuals in positions of
power.
Manipulation and Co-optation: Manipulation refers to covert

attempts to influence. Twisting and distorting facts to make then appear
more attractive, withholding undesirable information or creating false
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rumours to get employees to accept a change are all examples of
manipulation. If corporate management threatens to close down a
particular manufacturing plant unless that plant's employees accept an
across-the-board pay cut, but the threat is actually not carried out,
management at this point is using manipulation. Co-optation on the
other hand, is a form of both manipulation and participation. It seeks to
buy off the leaders of a resistance group by giving them a key role in
the change decision. The leader’s advice is sought, not to seek a better
decision, but to get their endorsement.
Both manipulation and co-optation are relatively inexpensive and easy

ways to gain the support of the adversaries, but the tactics can backfire
if the targets become aware they are being tricked or used. Once they
discover this, the change agents credibility may drop to zero.
Coercion: Coercion is the application of direct threats or force on the

resisters. If the corporate management are really determined to close
the manufacturing plant unless the employees accept a pay cut, then
coercion would be the label attached to their change of tactics. Other
examples of coercion include threats of transfer, loss of promotions,
negative performance evaluations or a poor letter of recommendation.
The advantages and drawbacks of coercion are approximately the same
as those mentioned for manipulation and co-optation.
9.9.1. CHANGE AGENTS

The complex nature of change makes it possible for people to identify
various factors that can influence the course of change in any given
setting. Thus on account of the inevitable and universal nature of
change, certain factors have been identified as being capable of
facilitating change. They include:
• Movement through the life cycle
233
• Differing personality/physiological potentials
• Socialisation experiences
• Changing physical and social environment
• The ubiquity of non-conformity, and
• The failure to achieve ideal values (Agugua, 2003)
Taking a theoretical approach to the aforementioned, some people give

prominence to resource and material variables as well as technological
factors as being prime movers of change. However, there is another
group, who may be regarded as idealistic theorists who highlight the
independent role of ideas, values, and ethics or belief systems as the
major factors that bring about change. One of the major proponents of
this latter view was Max Weber who argued that the major
characteristic of modern societies is the increasing “rationalisation of
life”.
By rationalisation, Weber meant the replacement of old ways or

patterns of doing things (traditional action) with calculable rules and
bureaucratic procedures (rational action). Other manifestations of
rationalisation include the displacement of religion by science, and the
substitution of elite status based on birth by one based on training and
expertise. This view is partly a departure from the Marxists perspective
which emphasises the material essence of life. Thus, for the Marxists,
ideas and belief systems are reflections of material realities (Gosling et
al, 2005:105-106).
From the foregoing, one can understand why, across various societies,
the manner and attitude with which people receive and perceive change
vary. In folk societies, where we usually find greater endorsement of
traditional authority, there tends to be a general resistance to change.
234
On the other hand, in urban-industrial societies change is regarded as
an everyday fact of life, socially desirable for its own sake.
Principally then, technology has been identified as a major factor that

causes change. For instance, technological effect on institutional
settings has been identified in such issues as the introduction of power-
driven machinery, with monumental effects on the economy and the
society. These same developments and the associated spread of
household technology have been noted to have affected the family. For
instance, sex roles have changed and middle-class wives go out to work
in increasing numbers.
Also, development in science has affected various religious beliefs. In

the same manner, industrialization has affected government in such a
way that governments are now required to organize for the protection
of the sick, the unemployed, the old, etc. Also values and attitudes have
changed as noted of such issues as alienation. Social inventions such as
the trade union have also had a marked influence on wages and working
hours, which in turn have affected the leisure industry as people now
have more money to spend (Friedenfels, 1998:234-235).
However, at the operational level of organisational management, the
principal question to address is: who in organisations is responsible for
managing change activities.
The answer to the question is change agents. Change agents can be

managers, employees of the organisation or external consultants. For
major change efforts, internal management often hires the services of
external consultants to provide advice and assistance. Because they are
from outside the organisation, they can offer an objective perspective
often unavailable to insiders. External consultants, however, are
disadvantaged because they usually have an inadequate understanding
235
of the organisation’s history, culture, operating procedures, and
personnel. External consultants also may be prone to initiating more
drastic changes, which can be a benefit or a disadvantage – because
they do not have to live with the repercussions after the change is
implemented. In contrast, internal staff, specialists or managers, when
acting as change agents, may be more thoughtful (and possibly
cautious), because they must live with the consequences of their actions
(Mullins, 1999).
9.10. CONTEMPORARY ISSUES IN ORGANISATIONAL

CHANGE: WORK STRESS.
A discourse on the issue of change connotes the fact that in some
quarters, change creates stress. Hence the question: How do managers
reduce stress among an organisation’s staff? Also, in view of the
pervasive nature of the phrase "innovate or die", the next question to be
addressed is: what can managers do to help their organisations become
more innovative? The need arises then to address the two concepts of
stress and innovation.
A healthy job is likely to be one where the pressures on employees are
appropriate in relation to their abilities and resources, to the amount of
control they have over their work, and to the support they receive from
people who matter to them. As health is not merely the absence of
disease or infirmity but a positive state of complete physical, mental
and social well-being (WHO, 1986), a healthy working environment is
one in which there is not only an absence of harmful conditions but an
abundance of health-promoting ones.
These may include continuous assessment of risks to health, the

provision of appropriate information and training on health issues and
the availability of health promoting organisational support practices
and structures. A healthy work environment is one in which staff have
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made health and health promotion a priority and part of their working
lives.
9.11. UNDERSTANDING STRESS

Stress has been defined in different ways over the years. Originally, it
was conceived of as pressure from the environment, then as strain
within the person. The generally accepted definition today is one of
interaction between the situation and the individual. It is the
psychological and physical state that results when the resources of the
individual are not sufficient to cope with the demands and pressures of
the situation. Thus, stress is more likely in some situations than others
and in some individuals than others. Stress can undermine the
achievement of goals, both for individuals and for organisations.
Stress can also be noted as the physiological reaction caused by the
perception of aversive or threatening situation. Ordinarily people refer
to stress as the pressure people feel in life on their jobs, and in their
ability to cope with environmental pressures which can adversely affect
one’s performance on the job.
From Fred Luthans (1989), came the view that “stress is an adaptive
response to an external situation that results in physical, psychological,
and or behavioural deviations for organizational participants.
According to Gbadamosi (1995:208), the antecedents of stress and
other aversive elements, in the work environment (physical and
psychological) are called “stressors”. In this sense, a stressor is seen as
a circumstance that puts a strain on a worker’s physical conditions, as
well as emotional or cognitive processes, e.g excessive heat or noise
can pose some degree of stress for employers.
Stress is perceived as a dynamic condition in which an individual’s is

confronted with an opportunity constraint or demand related to what he
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or she desires and for which the outcome is perceived to be both
uncertain and important. Although stress is often discussed in a
negative context, it also has a positive value particularly when it is seen
to have a potential for gain in prodding one to achieve a superior
performance in a critical situation. However, stress is more often
associated with constraint and demands. A constraint prevents one from
doing what one desires, while demands refer to the loss of something
desired. For instance when one undergoes the annual appraisal at work
the person feels stressed because he/she confronts opportunity,
constraints and demands. A good performance review may lead to a
promotion, greater responsibilities and a higher salary. But a poor
review may prevent one from getting the promotion. An extremely poor
appraisal may cause one to be fired.
9.11.1. SYMPTOMS OF STRESS

Stress shows itself in a number of ways. For example, an employee who
is experiencing a high level of stress may develop high blood pressure,
ulcers, irritability, difficulty in making routine decision, loss of
appetite,' accident proneness etc. The symptoms are subsumed under
three categories: physiological, psychological and behavioural. Earlier
attention directed at the study of stress from the physiological angle led
to the conclusion that stress could create changes in metabolism,
increase heart and breathing rates, increase blood pressure, cause head-
aches and induce heart attacks.
However there is the view that the line between stress and particular
physiological symptoms is not clear. The inability to pair stress with
particular symptoms is attributed to the complexity of the symptoms
and the difficulty in measuring them objectively. It is noted though that
physiological symptoms have the least direct relevance to managers.
The psychological symptoms are rather accorded greater importance.
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Stress, it is noted can cause dissatisfaction. Thus job-related stress can
cause job-related dissatisfaction. Besides the primacy of job-related
stress in causing job dissatisfaction, job-related stress also manifests in
other psychological forms viz; tension, anxiety, irritability, boredom
and procrastinations. Behavioural stress symptoms include changes in
productivity, absence and turnover as well as changes in eating habits,
increased smoking or consumption of alcohol, rapid speech, fidgeting
and sleep disorders.
Reducing Stress - Stress is not wholly dysfunctional nor can it be totally

eliminated from a person’s life. However on the need to review stress
reduction techniques, the emphasis is on stress that is dysfunctional.
From point of view of organisational factors, any attempt to lower

stress levels should begin with employee selection. Management need
to make sure that an employee’s ability matches the requirements of the
job. An objective job preview during the selection process will also
lessen stress by reducing ambiguity, increasing organisational
communications and keeping ambiguity-induced stress to a minimum.
Similarly, a goal-setting programme will clarify job responsibilities and
provide clear performance objectives. Job redesign is a further way to
reduce stress. If stress is traced to boredom or work overload, jobs
should be redesigned to increase challenges or reduce the work load.
Stresses that arise from an employee's personal life are noted to create
two problems. First, it is difficult for the manager to directly control;
second, there are ethical considerations. The question to address at this
point is: does the manager have any right to intrude in the employee’s
personal life? Suggestively it is posited that if a manager believes it is
ethical and the employee is receptive, the manager can consider some
approaches: Employee counselling is seen to provide stress relief. The
point is those employees often want to talk to someone about their
239
problems. Hence it is advised that the organisation through
its'managers, in-house personnel counsellors or free or low-cost
external professional help can meet there demand. For employees
whose personal life suffer from a lack of planning and organisation that
produces stress, the offering of a time management programme may
prove beneficial in helping them sort out their priorities. Furthermore,
organisations can sponsor physical activity programmes (Akintayo,
2008a).
Large organisations employ physical fitness specialists who provide

employees with exercise advices; teach relaxation techniques and show
individual employees physical activities that can help keep stress levels
low.
9.11.2. SOURCES OF STRESS

A very important work on the sources of stress was that by Gbadamosi
(1995) who categorised the major causes of stress into four major levels
as follows:
• Outside the organisation
• Within the organisation
• Groups which influence the individual
• The individuals themselves
1. OUTSIDE THE ORGANISATION: In the views of

Gbadamosi (1995), situational of environmental conditions
impose severe demands on individuals as a result of their roles
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and responsibilities. Instance of stressors from the external
environment includes:
• Modernization and urbanisation
• Rapid socio-economic and technological changes
• Family
• Transfer and relocations
• Changes in economic and financial conditions like higher level
of poverty
• Residential and community conditions
• Race, class, sex, ethnic of religious group discrimination, etc.
2. WITHIN THE ORGANISATION: Stress conditions within

the organisation which have both individual and group
dimensions include:
• OCCUPATIONAL DEMAND: This connotes that jobs by
their very nature are stress inducing. This understanding
explains why in some organisations, like the university system
in Nigeria, workers are paid hazard allowance which varies
from one section to the other based on the level of stress
associated with such sections.
• MANAGEMENT OF OTHERS: The observation here is that

in every organisation an individual may have responsibility for
human and material resources. In this sense, managers who
may primarily have to control people are seen to have a heavy
burden. This is based on the view that human beings are
perhaps, the most difficult resources of an organisation to
control. This being seen as widely divergent, various means
have to be devised to motivate, reward, punish, as well as listen
to their grievance, and so on.
241
• OPPORTUNITY TO PARTICIPATE IN DECISION
MAKING: Here, it is noted that lack of opportunity to
participate in decision making especially as it affects the
person can be frustrating and may create a sense of alienation
in the employee.
• UNFAIR PERFORMANCE EVALUATION: The point is

made here that if one’s career growth and upward mobility is
adversely affected owing to unfair performance evaluation, this
can be stress inducing.
• STRUCTURAL CHANGES IN THE ORGANISATION:

Structural changes may be seen to occur at the level of
hierarchical structure of authority and lines of responsibility. It
can also be as a result of fundamental changes like mergers and
acquisitions.
At this point, the schema by Brief Schuler and Van Sell (1981) provides
useful, illustration of the organisational causes of stress as shown in the
figure below:
POLICIES
Unfair, arbitrary performance reviews, pay
disparities
Inflexible rules
Rotating procedures
Frequent relocation unrealistic job descriptions
STRUCTURES
Centralisation: lack of participation in decision
making
Little opportunity for advancement
A great amount of formalisation
High degree of specialisation, interdependence
Job 242
of department stress
Line-staff conflicts
PHYSICAL CONDITIONS
Source: Adapted from Arthur P. Brief, Randall S. and Mary Van Sell. Managing Job
Stress. Little, Brown , 1981 pp.66..
3. GROUP CAUSES OF STRESS: An individual is said to be
influenced by the type of group to which he or she belongs.
Depending on the nature or type of influence emanating from
the group, such influence may constitute major sources of
stress for the individual as outlined by Gbadamosi (1995:212)
as follows:
• Lack of social support as the case of being isolated: This view
is strongly supported by Emile Durkheim’s work on suicide
and his subsequent distinction between mechanical and organic
solidarity. While mechanical solidarity is associated with
strong instance of support and germane solidarity, organic
solidarity is seen to be weak in such support indeed, support,
encouragement, and comfort of others assists in minimizing the
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effect of stress on people, even as they occur among
organizational members.
• Cohesiveness of employees: This is seen to be very useful in

stress reduction among people. The view here is that isolated
task assignment, supervisory aloofness and their likes can be
stress inducing. The inference then is that the more cohesive a
group is the better the chances of minimizing stress among the
members.
• Conflict: The point made here is that all forms of conflict can
be stress inducing. This is regardless of whether the conflict is
between persons, or groups or even within the individual as it
might have to do with frustration, (Gbadamosi, 1995:212)
4. THE INDIVIDUAL LEVEL OF STRESS: At the individual

level, stress is seen to be mostly underscored. The reasons
adduced for this is owing to the fact that all the other stressors
addressed earlier eventually manifest at the individual level,
and some of the most noted individual stressors include:
• Traumatic emotional experiences as may be noted in such
cases as sense of failure (e.g. in examinations), death of
beloved ones, loss of jobs, etc.
• Longstanding emotional tension or anxiety as might occur in

the face of marital instability (separation or divorce), illness
involving self, spouse or child, etc.
• Daily tension at work: Here it is observed that most people

experience some margins of pressure of work owing to
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variations in coping capability in such situation and
circumstances.
• Life events, especially when they are negative in their

consequence. In some cases, it might have to do with aging
while for others it may be as a result of such other issues as
marriage, jail term, widowhood, sexual difficulties, retirement
and retrenchment, etc.
• Frustration: This has to do with inability to satisfy an extant

motive after persistent trials
• Stress owing to conflicting demand: Conflicting demand is

another term for this kind of role conflict whether in or out of
job. An instance may include the president of a religious
people, who equally leads a social club where they drink and
socialise as part of their routine.
• Stress owing to uncertainty: This is equally referred to as role

ambiguity. It is seen to occur when an individual faces
uncertainty over several matters relating to his or her job. This
creates a scenario of unclear or ambiguous roles.
• Role under load or overload: This is seen to occur when an
individual is involved in too many activities or too little
activity. Both scenarios are noted to be major sources of stress.
• Direct physically induced stress: In this type of situation, one

get involved in strenuous activities like long distance driving,
long distance races, long treks, over indulgence in sexual
activities or exposure to extreme heat, extreme cold or high
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level of noise, all of which could be stressful (Gbadamosi,
1995:212-213).
9.12. CONSEQUENCES OF STRESS

The illustrations by Gbadamosi (1995) on the nature of stress in
organization proved to be quite instructive in our understanding of the
effects and consequences of stress in organisation as well. Derivatives
from his work to this effect can be explained at three levels: the
physiological, psychological and the overtly behavioural.
In line with the foregoing, it has been observed that stress tends to have
profound effects on job performance of individuals and their aging
process. For instance, on job performance while it is accepted that low
levels of stress or mild stress can enhance job performance, it is equally
noted that performance usually decline when stress rises to high levels.
Also, on aging, stresses have been shown to be related to aging in two

ways: firstly, older people do not seem to tolerate stress as well as
younger people. Secondly, stresses have been noted to accelerate the
aging process. Based on the foregoing background, it becomes
necessary to address the various reactions of people to stress as they
occur at the three levels analysis as hinted earlier on.
1. The physiological and health associated symptoms:

Physical illness or ill health associated with stress is regarded as
psycho- physiological disorders or psychosomatic disorders. It is noted
that a significant percentage of all physical illness are partly caused by
stress. In this sense, Akinkugbe (1980) has posited that increases in
such diseases as hypertension, stroke and sudden death in developing
countries like Nigeria are as the result of rapid industrial and
technological changes.
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Summarily, some of the physical symptoms associated with high stress
conditions include:
• high blood pressure
• increase in respiration
• stomach ulcers
• heart diseases owing to high level of cholesterol
• arthritis
• asthmatic problems
• headaches
• chronic pulmonary tuberculosis
• skin rashes
• sudden death
Furthermore, it is noted that prolonged stress can suppress the immune
system, thereby increasing a person’s susceptibility to infections or
illness.
2. Stress And The Psychological Or Mental States

Normal psychological or mental states associated with stress are noted
to include: fear, anxiety, tension, depression, nervousness, irritability
and boredom. These feelings are said to have effects on the individual
in the following ways:
a. Chronic worry
b. Frequent mood changes
c. Lowered self esteem
d. Resentment of supervision
e. Inability to concentrate, relax or a take decisions
f. Job dissatisfaction
g. Uncooperative attitude
h. Feelings of inability to cope
i. Emotional instability.
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3. Stress And Overt Manifestation Or Behaviour At Work
With regard to overt behaviour of individuals at work, stress is seen to
have temporary or long range effects depending on how long the coping
mannerisms or reaction of the individual in this sense. Direct overt
behaviours associated with stress include:
• Over eating or under eating
• Sleeplessness
• Increased smoking
• Excessive use of alcohol
• Drug abuse
• Digestive problems
• Absenteeism
• Tardiness
• Increased job accident
• Frequent turnover behaviour. In other words, stress is
associated with poor and declining employee performance as it
has to do with their morale and commitment. All the
implications aforementioned therefore have serious
implications for the management of human resources in
organizations.
CHAPTER SUMMARY
The chapter discussed the forces that influences change, types of
organisational change, areas of focus during change, managing planned
change, goals of planned change, two views of change, sources of
resistance, overcoming resistance to change, change agents, work
stress, understanding stress, symptoms, sources and consequences of
change.
248
REFERENCES
Akintayo, O. A (2008a).Stress at work and its management.
African Journal of Technology Policy.Vol 3, No. 1. pp 49-82.
Akintayo, O. A (2008b).Organisational change and development.
African Journal of Technology Policy.Vol 3, No. 1. pp 93-123.
Agugua, A. O. (2003). Social Change in Nigeria since Independence,
in Osuntokun, Aworawo and Masajuwa, (eds). History, Lagos:
Frankad Publishers.
Anderson D & LA Anderson, ‘Conscious Change Leadership:
Achieving Breakthrough Results‘, Leader to Leader, Fall
2011, pp. 51-58.
Friedenfels, R, (1998). Social Change: An Anthology. New York:
General Hall, Inc.
Gosling, R. & Taylor, S. (2005). Principles of Sociology. London:
London School of Economics, (with the Department of
Sociology, LSE).
249
Mullins, L. J. (1999). Management and Organisational Behaviour. (5th
edition) New Jersey: Prentice Hall Int. Inc.
Taylor, S., Peplau, L., & Sears, D. (2006) Social Psychology (12th
edition) New Delhi: Pearson Education
REVIEW QUESTIONS
QUESTION 1
(a) Some changes in organizations are unplanned, whereas others
result from strategic plans. Give examples of each variety of
change and explain their implications for organisations
functioning.
(b) Suppose you are a top executive at a large organisation about to

undertake an ambitiousrestructuring that involves massive changes
in job responsibilities for most employees. Explain why people
might resist such changes and how to overcome this resistance.
(c) Overall, how effective is organisational development in improving

organizational functioning? With respect to what factors does it
work or not work?
250
(a) Students can offer a variety of examples. Unplanned changes;
increasing employment forces a company to change its
recruiting and compensation policies in order to attract
workers from a tight labour market. Planned change; a firm
changes its market focus or product line in order to capitalize
on new demographic trends after studying the trends and
planning the change.
Students may also discuss the degree of change involved. First-
order change is continuous in nature and involves no major
shifts in how an organisation operates and is known as first-
order change. Changes of this type are apparent in the
deliberate, incremental modifications. Second-order change
refers to more radical change to major shifts involving many
different levels of the organisation and many different aspect
of business.
(b) Organisational scientists recognize that resistance to change

stems from both individual and organisational variables. The
individual variables include:
Economic insecurity- as changes on the job may threaten
one's livelihood - either by loss of job or by reduced pay - some
resistance to change is inevitable.
Fear of the unknown - disrupting well-established,

comfortable patterns creates unfamiliar conditions; a state of
affairs that often is rejected.
Threats to social relationships - many organizational changes

(e.g. reassignment of job responsibilities) threaten the integrity
of friendship groups, which provide valuable social rewards.
251
Habit - The prospect of changing how jobs are done challenges
people to develop new skills, which clearly are more difficult
than continuing to perform the job as it originally was learned.
Failure to recognize the need for change - unless employees

can recognize and fully appreciate the need for change in an
organization, any vested interests they may have in keeping
things the same may over power their willingness to accept
change.
(c) OD techniques require a considerable amount of time, money
and effort. But, does OD really work? Most of the relevant
studies show the effects of these various interventions to be
beneficial mostly in the area of improving organizational
functioning.
• OD interventions tend to be more effective among blue-collar
employees than among white-collar employees
• The beneficial effects can be enhanced by using a combination
of several techniques (e..., four or more together) instead of any
single one
• The effectiveness also depends on the degree of support these
techniques receive from top management. The more these
programs are supported from the top, the
more successful they tend to be.
• The effective of OD techniques depend in part, on the extent to
which the values the techniques is based on match the
underlying values of the national in which it is employed.
QUESTION 2
(a) Choose one of the following planned change strategies: forced,
coercion, rational persuasion, or shared power. Define the strategy and
252
discuss its implications for the planned change process. What does the
choice of that particular strategy say about the change agent's view of
behaviour and motivation?
• (b) List three of the reasons people resists change. What
can a change agent do to minimize and deal with resistance?
Should a change agent view resistance as something to be
overcome in order for the change to be successful?
SOLUTION 2
(a) Students' answers will vary but should include the elements
highlighted under each of the following strategies.
(i) forced-coercion: This strategy uses legitimacy, rewards,

punishments and the formal authority of the change agent's
position to "command" the change. People respond mainly out
of the fear of punishment or desire for reward. Compliance is
usually temporary. The change agent using force-coercion
tends to believe that people are basically motivated by self-
interest and personal gains and losses.
(ii) Rational persuasion: This strategy employs spiritual support,

special knowledge and rational argument. Expert power is
mobilized to convince people that the change is beneficial. Use
of rational persuasion result in a longer lasting and more
internalized change than force-coercion. The change agent
using this strategy believes that people are inherently rational
and logical.
(b) Students' answers will vary but the reasons for resistance and
the responses to it should be chosen from the following list:
253
(i) Fear of the unknown: offer information and encouragement
(ii) Need for security: clarify intentions and methods
(iii) No felt need to change: demonstrate the problem or

opportunity
(iv) Vested interests threatened: enlist key people in change

planning
(v) Contrasting interpretations: disseminate valid information and
facilitate group sharing
(vi) Poor timing: delay change and await a better time
(vii) Lack of resources: provide supporting resources and reduce

performance expectations
It is better to view resistance to change as feedback that can be used

constructively by the astute change agent.
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CHAPTER 10
FUTURE TRENDS IN ORGANISATIONAL BEHAVIOUR AND
PERFORMANCE

1. Know the challenges and opportunities in organisational
behaviour and performance
2. Understand the role of globalisation in organisational
dynamism and how to cope with latent consequences of
globalisation.
3. Know how to improve quality and productivity
4. Understand how to improve people’s skills and how to
empower people
5. Discuss the framework of cultural diversity
10.1. INTRODUCTION
In this concluding chapter, we shall examine future trends in
organisational behaviour and performance. Pertinent to understand are
the origins of these trends and the challenges and opportunities they
present. This is especially important in the light of the internet
revolution, and the subsequent phenomenon of globalisation which is
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redefining our understanding of the world of work. We shall also
discuss how to get employees ready and empower them for this new
phase of organisational behaviour and performance assessment.
10.2. CHALLENGES AND OPPORTUNITIES IN

ORGANISATIONAL BEHAVIOUR AND
PERFORMANCE
First, it is important to understand the effect of the emergence of the
information technology age occasioned by the worldwide
interconnectivity of computers and electronic systems so called the
internet. The internet has now facilitated the sharing of information
across the world, and reduced the need for physical contact such that
organisations can create what are called virtual work teams. According
to McShane and Von Glinow (2008: 291), the members of virtual teams
“operate across space, time and organisational boundaries and are
linked through information technologies to achieve organisational
goals.” (Robbins and Judge, 2009: 360, 377)
This is the essence of work aspect of globalisation which Schaeffer

(2005: 30) defines as “the worldwide integration of government
policies, cultures, social movements, and financial markets through
trade, and the exchange of ideas.” In effect globalisation reduces the
entire planet into a single neighbourhood where people can carry on
their daily affairs with one another as if they lived together in a physical
neighbourhood. On account of globalisation, it has become so easy for
companies to access products and services from other countries and
even moves entire operations across national borders.
The Challenge of Organisational Behaviour and Performance

The challenges of this kind of work culture are enormous both for
organisations and for employees. For example, describing the ethics of
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this new work culture, a report says that schedules aren’t 9 to 5, they
span time zones. Increasingly, workers are no longer measured by how
much they show up, but are measured by how much they produce;
colleagues can be either within or outside the organisation; and
companies that fail to respond to this new way of work will simply lose
out (Business day, 5 October, 2010, p. 37).
Also, to maintain competitiveness, organisations are finding that

instead of taking on all tasks by themselves, they can more profitably
outsource some of their processes, sometimes by locating quality
resources offshore. For example, on account of quality information
technology graduates in India, that country at a time captured 80% of
global information technology research and development outsourcing
jobs. (Newsweek, September 10, 2007, pp. 28-29)
Another challenge for organisations is to hire competent staff (Business
day, 12 October, 2010, p. 37). For this reason, staff recruitment is now
a whole new enterprise which is the business of human resources (HR)
consulting firms. This new kind of enterprise saves companies the need
to maintain large HR departments which can cut into their profit
margins.
For employees, the major challenge of this new age of work is to keep
developing themselves so that they continue to take up jobs that open
up in the industry. Part of the problem of unemployment stems from
the inability of graduates to secure jobs in the industry since they lack
the requisite skills (Business day, 10 August, 2010, p. 37).
• The Opportunities of the New Work Culture

The opportunities of the emerging work culture include the fact that
companies can now work more effectively and innovatively, using
257
fewer staff. For example, Robbins and Judge (2009: 564-565) describe
some firms as virtual organisations. They define a virtual organisation
as “a small, core organisation that outsources major business
functions.” They explain that a virtual company owns no factory, no
permanent large staff, etc. They are more or less facilitators.
Evidently, a virtual organisation is simply an organisation that

identifies a need somewhere, and arranges for that need to be filled by
another company. In this way, virtual firms save the real transacting
organisations a large bureaucracy, time consuming negotiations,
elaborate and complex structures; and they introduce much more
flexibility into business.
In the light of the kind of challenges and opportunities that arise in the
new business culture, performance is evaluated as stated above, much
less in terms of whether an employee shows up in some office, but more
importantly, in terms of how much he contributes to the volume of
transactions of the organisation he works for. Employees and
organisations alike will also be appraised in terms of how adaptable
they are to changes, readily and how they can locate themselves in the
worldwide network of ideas.
10.3. RESPONDING TO GLOBALISATION

We can best understand the responses of organisations to globalisation
when we proceed from the prospects and challenges of globalisation as
noted above.
• Managing Diversity
First, as organisations, multinational corporations have to work across
many national boundaries, they invariably become more diverse in their
workforce. International immigration also ensures that even within a
national border, an organisation will have to contend with diversity. For
258
this reason, managers have to take decisions that reflect sensitivity to
cultural differences; they also have to flexible if they are to effectively
manage cultural differences (McShane and Von Glinow, 2008: 24).
The imperative of managing workplace diversity is highlighted by the
fact that the notion of the workplace as a melting pot of cultures is no
longer tenable. People still carry their cultural beliefs and practices
along with them everywhere they go (Robbins and Judge, 2009: 51).
• Changing Structure
Companies have also needed to change their structure from the
traditional pyramid-like structure with its time-consuming bureaucracy
to flatter, more efficient, structures that are better suited for an era
where decisions quickly have to be taken if valuable time is not to be
lost. This implies less formalisation, wider spans of control, and
decentralisation. A good example is the proposed unbundling of the
Power Holding Company of Nigeria (PHCN) into different companies
– generation, transmission, distribution - to make it more responsive to
the power needs of Nigeria (This Day January 29, 2012, p. 30).
• Recruitment of Competent Staff

Training and retraining of staff have always been necessary for all
companies; many companies take new managers through management-
trainee programmes to make new management-cadre staff fit to work
in their organisations. As the need for qualified employees intensifies
in the era of globalisation, some Nigerian companies have had to look
outside the shores of Nigeria to important openings in their
organisations (The Nigerian Tribune, February 6, 2007, pp.31-32).
Some organisations are now giving a whole new expression to the drive
for quality employees. According to a special report on education
published in the Newsweek September 20, 2010, pp. 40-42, “big
259
companies are now setting up university campuses all over the world
to help produce the kinds of employees they most need.”
10.4. IMPROVING QUALITY AND PRODUCTIVITY

In view of the challenges and prospects of the emerging international
business culture, improving quality and productivity will mean that
organisations will continue to look for ways to
• Source for the best talent and then seek to retain these talents with
a view to building teams that last – they will have to look for ways
to motivate their staff so as to get the best from the employees, and
also reduce turnover. They can achieve this through imaginative
work design, friendly work environment, and of course, attractive
remuneration. Constantly having to work with a new set of
employees could hinder long-term planning and reduce competitive
ability in a continually evolving work environment.
• Continually expose their staff to global best practices – the use of

the internet and strategic cooperation with other organisations can
help in this regard. Paying for interactive sessions with
representatives of domestic market leaders and international experts
is also helpful. Staff should also be sent for periodic training, and
the organisations’ learning and development curricula continually
updated.
• Try to secure raw materials at the most competitive prices – a very

imaginative example can be seen in the case of the Boeing 787.
Although Boeing is an American company, to make the 787, it
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sourced material from ten countries (Newsweek May 15/22, 2006,
pp. 34-36). In some cases, to maintain their comparative production
advantages, they (Boeing) concentrate on their core interests. Most
firms now outsource most human resources functions like
recruitment, hygiene, canteen, etc.
In all companies are constantly seeking to find their place and make the
most of the knowledge economy – one in which information is shared
with the people who are best placed to execute given tasks. This
emphasises the need for a high level of networking of ideas between
organisations.
10.5. IMPROVING PEOPLE’S SKILLS

This is key to an organisation’s survival in the globalised work
environment. Improving people’s skills can be achieved by training the
workers, allowing them hands-on experience, and then exposing them
to have appropriate mentoring to provide guidance.
Training
Training serves many important functions. Depending on its goal, it
may be designed to improve an employee’s skill on the job; improve
interpersonal relations; prepare the employees for future responsibility.
In all, training increases the employee’s capabilities and mentally
prepares them to take on challenges. It can also make anticipate
problems that may not have been specifically mentioned during the
training session.
Hands-on Experience
Allowing an employee to acquire hands-on experience enables him/her
to develop confidence. When the employees put what they have learnt
to use and see the positive results of the training, they will be eager to
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demonstrate to their superiors that the time and money spent on that
training session was worthwhile. A machine operator can only show
how much he learnt from a training session if he actually has the
opportunity to operate a machine.
Mentoring
A mentor is “a senior employee who sponsors a less experienced
employee, called a protégé” (Robbins and Judge, 2009:463). Mentors
can be stabilising factors for protégés in that they help to build the
latter’s career by coaching them to develop skills, and then by also
building them up mentally. By providing an excellent personal
example, the mentor provides a firm foundation for the protégé’s ability
to work with others in the organisation.
These are some of the ways that organisations can improve the skill of
their employees, and this way the organisations acquire greater
capability to operate in the international business environment.
10.6. EMPOWERING PEOPLE

Empowerment, according to McShane and Von Glinow (2008: 183) is
“a psychological concept in which people experience more self-
determination, meaning, competence, and impact regarding their role
in the organisation.” Kreitner and Kinicki (2004: 568) define it as
“sharing varying degrees of power with low level employees to tap their
full potential.” It follows that empowerment means giving power to
employees in order to enhance their capacity to function within the
organisational setting.
Employee empowerment will become ever more important as

organisations respond to work in the emerging global economy. To
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demonstrate the truth of this assertion, we will expand the four
dimensions of empowerment by McShane and Von Glinow.
• Self-determination – This dimension gives the employees the
feeling of independence and discretion within the broad context of
the organisation’s goals. Self-determination means that employees
are simply told what to do, but not necessarily constantly monitored
as to how they accomplish this task. Only employees who have this
kind of freedom can be innovative since they would not need
someone’s approval for every action they take.
• Meaning – “Employees who feel empowered care about their work

and believe that what they do is important” (McShane and Von
Glinow, 2008: 183). This dimension to empowerment because
meaningful work is in itself a form of motivation for employees.
• Competence – “Empowered people that are confident about their

ability to perform the work well and have a capacity to grow with
new challenges” (McShane and Von Glinow, 2008: 183).
• Impact – “Empowered employees view themselves as active

participants in the organisation; that is their decisions and actions
have an influence on the company’s success” (McShane and Von
Glinow, 2008: 183). This dimension is made possible by delegation,
i.e. granting the employee “decision-making authority to people at
lower levels” (Kreitner and Kinicki, 2004: 571). When the
employee sees that the decision he makes in his little corner has a
wider organisational effect, he/she developes a sense of belonging
in the employee.
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10.7. GLOBAL VILLAGE AND THE INTERNATIONAL
CHALLENGE
Various features abound to buttress the fact that the world has become
a global village. Transportation and communication capabilities such
as supersonic jets, international telephone and computer networks and'
worldwide news broadcast via satellite - make it easier to talk with or
visit people on other continents than it was for people a century ago.
Distance and national boundaries are rapidly disappearing as major
barriers to business transactions. With the advent of the global village,
identifying the "home country" of a company and its product has
become increasingly difficult. "The reality of the global village' is
clearly demonstrated by the growing impact of multi-national
corporations and the rise of regional cooperative arrangements between
countries.
A global economy presents challenges to managers that they never had

to confront when their operations were confined within national
borders. They face different legal and political systems. They confront
different economic climates and tax policies. But they also must deal
with varying national cultures-the primary values and practices that
characterize particular countries - many of which are nothing like those
in which they have spent their entire lives. At this point let us look at
why managers often find managing people in foreign lands very
difficult in what can be addressed as biases.
10.8. INDIVIDUAL BIASES

Some individuals, coming from some ethnic groups are noted to be
suffering particularly from parochialism; that is, they view the world
solely through their own eyes and perspective. People with a parochial
perspective do not recognize that other people have different ways of
living and working. For instance it is not uncommon for certain sections
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of Nigerians to speak three or four languages, while other sections are
entirely monolingual. Such monolingual problems also affect the
English and Americans, the reason probably being the huge domestic
market in the home front and the reality that English has become the
international business language in many parts of the world.
Also, some people of certain nationalities stand accused of

ethnocentrism or holding ethnocentric views. Such people believe that
their cultural values and customs are superior to all others. In the case
of Americans, this belief may further explain why Americans donot
learn foreign languages. Many think their language is superior and that
it is the rest of the world's responsibility to learn their language e.g.
English.
Parochialism and ethnocentrism may not be debilitating in a society

that accounts for over 75% of its gross domestic product (GDP). But it
is a "life – threatening disease" today, when firms in a given entity
produce only about 22% of its GDP. Thus unless managers of firms in
various countries conquer their parochialism and ethnocentrism, they
will not be able to take full advantage of global opportunities.
From the point of view of increased human contact and technological
advancement, some people hold the view that it may be naive to think
that cultural differences are very important. If they are, they are so in
the near term. In the long run, the global village will become a single
homogenous culture - that is, a world melting pot in which cross -
cultural differences will all but disappear.
Now the question to address is this: Are national cultures becoming

more homogeneous? In, answer, it is observed that at one level they
are. Research demonstrates that organizational strategies, structures
and technologies are becoming more alike, but there are still differences
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among people within organizations in different cultures. National
cultures continue to be a powerful force in explaining a large proportion
of organizational behaviour. Thus research result in 40 countries has it
that national culture explained approximately fifty percent of the
differences in employees' attitude and behaviour.
The argument then is that if nations are becoming more homogenous,

we could take a culture-free approach to organisational behaviour. But
such an approach does not appear to be justified presently for the
following reasons:
1. There are differences in OB across national cultures

2. These differences explain a large portion of the variability in
attitudes and behaviours
3. Presently and for some time to come these differences are not
decreasing at any significant rate. Thus the view is held that
despite the tremendous increase in cross-cultural
communication, there continue to be country-specific
traditions and customs that shape the attitudes and behaviour
of people.
However, although foreign cultures are difficult to fathom, there is an
expanding body of research that informs us on how cultures vary and
key differences between them. Two of such are Klucknohn-Strodtbeck
framework and Hofstede model.
10.9. THE KLUCKHOHN –STRODTBECK FRAMEWORK

Kluckhohn-Strodtbeck framework for analyzing variations among
cultures identifies six basic cultural dimensions: relationship to
environment, time orientation, nature of people, activity orientation,
and focus of responsibility and conception of space.
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Relationship to the Environment: Here the principal considerations
include: Whether people are subjugated in their environment, in
harmony with it, or able to dominate it? For instance in most part of the
Middle East, people see life as essentially preordained. When things
happen, they attribute it to “Gods will”. In contrast, Americans believe
that they can control nature. Thus, they can budget billions of dollar a
year on cancer research because they think that the cause of cancer can
be identified, a cure found and the disease eradicated
These differences in perspectives toward the environment influence
organisational practices. Thus, in a subjugation society, goal setting is
not likely to be very popular. Why set goals if you believe people can't
do much towards achieving them? In a harmonious society, goals are
likely to be used, but deviations are expected and penalties for failing
to reach the goals are likely to be minimal. In a domination society,
goals are widely applied. People are expected to achieve their goals,
and the penalties for failure tend to be quite high.
Time Orientation: The issues considered here are: Does the culture
focus on the past, present or future? The point is that societies differ on
the value placed on time. For instance, Western cultures perceive time
as a scarce resource. "Time is money" and must be used efficiently.
Americans focus on the present and the near future, thus they have a
short-term orientation in performance appraisals. In typical American
organizations, people are evaluated every six months or a year. The
Japanese, on the contrary, take a longer-term view as is also reflected
in their performance appraisals; Japanese workers are often given ten
years or more to prove their worth. Some other cultures still have a
different approach to time: they focus on the past. And in this realm,
Italians are noted to follow traditions and seek to preserve historical
practices. Knowledge of a cultures time orientation can provide insights
into the importance of deadlines, whether long-term planning is widely
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practiced, the length of job assignments, and what constitutes lateness.
It also explain peoples attitude towards keeping appointments.
Nature of People: "Here the question to address is: Does a culture view
people as good, evil or some mix of these two? In many developing
nations like Nigeria, people see themselves as basically honest and
trustworthy. It is stated that North Koreans on the other hand, take a
rather evil view of human nature, North Americans take a middle range
position. They see people as basically good but are always on guard so
as not to be taken advantage of.
The point to note is that a culture’s view on the nature of people

influences the Dominant leadership style of managers in a given
society. a more autocratic style is likely to rule in countries that focus
on the evil aspects of people. Participatory or laissez-faire style should
appeal to countries that emphasize trusting values. In mixed cultures,
leadership is likely to emphasize participation but provide close
controls that can quickly identify deviations.
Activity Orientation: Some cultures are noted to emphasize doing or

action. They stress accomplishments. Some cultures emphasize being
or living for the moment. These cultures stress experiencing life and
seeking immediate gratification of desires. Still other cultures focus on
controlling and people restrain their desires by detaching themselves
from objects.
North Americans are noted to live in doing-oriented societies. They

work hard and expect to be rewarded with promotions, raises, and other
forms of recognition for their accomplishments. Mexicans on the other
hand are seen as being-oriented. The pace is slower and people value
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enjoying the moment. The French represent a controlling orientation.
Their own emphasis is on rationality and logic.
An understanding of a cultures activity can give one insights into how
people approach work and leisure, how they make decisions, or the
criteria they use for allocating rewards. For instance, in cultures with
dominant being orientation, decisions are likely to be emotional. On the
contrary, doing cultures are likely to emphasize pragmatism, and in
controlling cultures, rationality in decision making is emphasized.
Focus of Responsibility: Cultures can be classified according to

where responsibility lies for the welfare of others .Americans, for
instance are highly individualistic. They use personal characteristics
and achievements to define themselves. They believe that it is a
person’s responsibility is to take care of him or herself .Countries like
Israel and Malaysia are said to focus more on the group .Thus in an
Israeli Kibbutzin, people share chores and rewards. Emphasis is on
harmony, unity and loyalty. The British and French follow another
orientation by relying on hierarchical relationships. Hierarchical
societies tend to be aristocratic.
The dimension of culture has implications for the design of jobs,

approaches to decision making communication patterns, rewards
systems and selection practices in organization. For instance, selection
in individualistic societies emphasizes personal accomplishments .In
groups societies, working well with others is likely to be primary
importance .In hierarchical societies, selection decisions are made on
the basis of a candidate’s social ranking.
Conception of Space: This relates to the ownership of space with the

implication that some cultures are very open and conduct business in
public. At the other end are cultures that place a great deal of emphasis
269
on keeping things private. Many societies mix the two and operate a
middle range pattern
In the above view, it is stated that Japanese organizations reflect the

public nature of their society, hence there are few private offices.
Managers and operative employees work in the same room, and no
partitions separate the desks. On the other hand, North American firms
in reflecting their cultural values use offices and privacy to reflect
status. Important meetings are held behind closed doors. In societies
that have a mixed orientation, there is a blend of the private and the
public. For instance, there might be a large office where walls are only
five or six feet high, thus creating limited privacy". These differences
in the conception of space are known to have obvious implications for
organisational concerns such as job design and communication.
10.10. THE HOFSTEDE FRAMEWORK OF CULTURAL

DIVERSITY
Geert Hofstede did a fairly comprehensive analysis of cultural
diversity which contrasted the earlier organisational studies. Such
earlier studies either included a limited number of countries or analysed
different companies in different countries where as Hofstedes analysis
surveyed more than 116,000 employees in 40 countries who all worked
for the same multinational corporation. By his huge data base, Hofstede
confirmed that national culture had a major impact on employees'
work-related values and attitudes. It explained more of the differences
than did age, sex, profession or position in the organization. More
importantly, Hofstede found that managers and employees vary on four
dimensions of national culture:
1 Individualism vs collectivism;
2. `Power distance,
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3. Uncertainty avoidance and
4. Masculinity vsfeminity
1. Individualism Vs Collectivism-: Individualism refers to a
loosely knit social framework in which people are supposed to
look after their own interests and those of their immediate
family. An individualist’s society allows individuals a large
amount of freedom. Collectivism in contrast, is characterized
by a light social framework in which people expect others in
their group (such as an organization) to look after them and
protect them when they are in trouble. In exchange they feel
that they owe absolute loyalty to the group.
Hofstede found that the degree of individualism in a country is
closely related to that country's wealth. Rich countries as in the
Western World mostly are very collectivistic.
2. Power Distance: People naturally vary in terms of physical

and intellectual abilities. This variation in turn, creates
differences in wealth and power. How does a society deal with
these inequalities? Hofstede used the term power distance as a
measure of the extent to which a society accepts the fact that
power in institutions and organisations is distributed unequally.
A high power distance society accepts wide differences in
power in organisations. Employees show a great deal of respect
for those in authority. Titles, rank and status carry a lot of
weight. When negotiating in high power distance countries
companies find that it helps to send representatives with titles
at least as high as that of those with whom they are bargaining.
Countries high in power distance include the Philippines,
Venezuela and India. In contrast a low power distance society
plays down inequalities as much as possible. Superiors still
have authority but employees are not fearful or in awe of the
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boss. Denmark, Israel and Austria are examples of countries
with low power distance scores.
3. Uncertainty Avoidance: Here we observe that we live in a

world of uncertainty. The future is largely unknown. Societies
respond to this uncertainty in different ways. Some socialize
their members into accepting it with equanimity. People in
such societies are more or less comfortable with risks. They are
also relatively tolerant of behaviour and opinions that differ
from their own because they don't feel threatened by then.
Hofstede described such societies as having low uncertainty
avoidance. That is, people feel relatively secure. Countries that
fall into this category include Singapore, Switzerland and
Denmark.
A society high in uncertainty avoidance is characterized by a

high level of anxiety among its people, which manifests itself
in nervousness, stress and aggressiveness. Because people feel
threatened by uncertainty and ambiguity in these societies,
mechanisms are created to provide security and reduce risk.
Their organisations are likely to have formal rules, there will
be little tolerance for deviant ideas and behaviours and
members will strive to believe in absolute truths. Not
surprisingly, in organisations in countries with high uncertainty
avoidance, employees demonstrate relatively low job mobility
and life time employment is a widely practiced policy.
Countries in this category include Japan, Portugal and Greece.
4. Masculinity Vs Feminity: By drawing a dichotomy between

masculine and feminine traits Hofstede argues that some
societies allow both men and women to take many different
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roles. Others insist that people behave according to rigid sex
roles. When societies make a sharp division between male and
female activities, Hofstede claims "the distribution is always
such that men take more assertive and dominant roles and
women the more service - oriented and caring roles". Under the
category of masculinity, he puts societies that emphasise
assertiveness and the acquisition of money and material things,
while deemphasizing caring for others.
In contrast, under the category of feminist, he puts societies that

emphasize relationships, concern for others and the overall quality of
life. Where feminist dominates, members put human relationships
before money and are concerned with the quality of life, preserving the
environment and helping others. Hofstede found Japan to be the most
masculine country. In, Japan almost all women are expected to stay
home and take care 'of children. At the other extreme, the Nordic
countries and the Netherlands are found to be the most feminine.' There
it is common to see men staying home as house husbands while their
wives work and working men are offered paternity leave to take care of
newborn children.
In conclusion, it is pertinent to point out that an understanding of

differences between cultures should be particularly valuable for
managers who plan on living and working in other countries or those
who manage people whose cultural background are different from their
own. Now the question arises: As a manager, how should one use the
information provided in this section? First, determine from what
country the person comes from whose behaviour you are trying to
understand. Second, evaluate the country of that person's origin using
one or both of the cultural differences frameworks presented in this
section. Third, compare the national culture in question against the data
273
of your country and identify relevant differences. Finally, modify the
application of concepts to reflect any differences.
CHAPTER SUMMARY
The chapter discussed the challenges and opportunities in
organisational behaviour and performance, how to respond to
globalisation, how to improve quality and productivity, improving
peoples skills, empowering people, global village and the international
challenge, individual biases and Hofstede framework of cultural
diversity
274
REFERENCES
Business day (2010) “Workplace Experts Finger Conventional
Teaching Methods for Skills Gap 10 August (2010) “When
Smart Work Ethics Displace Hard Work” 5 October
(2010) “Character, Competence – Key Determinants in Hiring
Process” 12 October
News week (2006) “A Boeing of Asia?” May 15/May 22 (2007)
“Bottom to Best” September 12 (2010) “Corporate Learning”
September 20
Schaefer, R. T. (2005) Sociology (9th edition) New York: McGraw Hill
The Nigerian Tribune (2007) “Imperative of Managing World Class
Universities” February 6
This Day (2012) “End of the Road for PHCN” January 29
275
REVIEW QUESTIONS
QUESTION 1
WHAT MOTIVATES EASTERN EUROPEAN JOB
RECRUITS?
Eastern Europe is an area in which rapidly changing social and political
environments have produced rocky economic conditions. A recent
survey of 1,100 students graduating from business and engineering
programs in Poland, the Czech Republic and Hungary provides some
insight into their motivations.
• Money is important; 43 percent indicated they sought
competitive salaries
• 52 percent, however said that they wanted a working
environment of people with whomthey could enjoy socializing
• One-fifth tone-quarter of the students surveyed indicated that
they were motivated to findjobs that would enhance their
careers notably to specialize in their area of interest
• The opportunity to perform a wide variety of tasks was of
interest to 20 percent.
These findings illustrate two important points:

(i) Many of the same things that motivate employees in one part
of the world would also motivate people in other parts of the
world,
(ii) Money is only one of several motivating factors and not
necessarily the most important one
(a) Relate the findings in this case to Nigerian organizations
(b) Define motivation and its components
(c) Is motivation and job performance synonymous
276
QUESTION 2
A (i) Define Organisational Development (OD) and discuss its
two major goals,
(ii) How can OD help organisations and members achieve
these goals?
B. Choose and discuss one intervention from each of the

following:
(i) Organisation
(ii) Group and
(iii) Individual levels
(c) What are the six major trends in the manager's
changing environment?
Pick three and describe the significance of each
SOLUTION 2
A (i) Organisation development is the application of behavioural
science knowledge in a long - range effort to improve an organisation's
ability to cope with change in its external environment and to increase
its internal problem-solving capabilities.
Organisation development is concerned with process goals which focus
on how well people work together and outcome goals which focus on
what is actually accomplished through individual and group efforts.
(ii) Organisation Development can help organisations better achieve

their process and outcome goals by:
• Creating an open problem-solving climate
• Supplementing formal authority with knowledge and
competence
277
• Moving decision making to where relevant information is
located
• Building trust and maximizing collaboration
• Increasing organizational "ownership"
• Allowing people to exercise self-direction and self-control at
work.
B) Students' answers will vary but they should choose one of the
following from each category:
(i) Organisation Interventions
• Survey feedback
• Confrontation meeting
• Structural redesign
• Collateral organisation
• Management by objectives
(ii) Group Interventions
• Team building
• Process consultation
• Intergroup team building
• Individual Interventions
• Sensitivity training
• Management training
• Role negotiation
• Job redesign
• Career planning
i) The Focus on Productivity. Concern for performance efficiency

and effectiveness has led to the need for value added managers.
278
ii) The Global Economy: An increased competitiveness in pursuing
commercial opportunities around the world, as well as an
increasing number of domestic workers employed locally by
foreign employers. Additionally, there is a growing recognition of
learning from management techniques of other cultures.
iii) Developments in information technologies: The continued

emergence of computer technologies has and will continue to
impact all aspects of operations.
iv) New ways of organizing: To facilitate the bringing of people and

technology together in high performance systems.
v) Changing demographics and workforce diversity: There are

several factors including the availability of skilled workers, the
decline in workers aged 16 - 24, the increase of workers over 35,
the composition of new entrants to the workforce, as well as the
forecast of where jobs will be available.
vi) Human rights in the workplace: Human rights and social justice
are increasingly valued in the workplace and managers will face
new challenges such as self-determination, employee rights,
security, equal employment opportunity and equity of earnings.
279
PRACTICE QUESTIONS (OBJECTIVES)
1. An enduring and consistent aspect that cause us to resemble
others in same ways and to be totally different and unique in other
ways is called …………………………
2. A managers influence on subordinates which is based on ability
to initiate some form of punishment is called
………………………………………..
3. The first theory to recognize human factor as predominant in the
study of organization was propounded
by…………………………….
4. When employers are organized based on common interest rather
than deliberate design, can be referred to as
…………………………..
Please carefully read each question below and choose the best
option as required:
5. Who is credited with developing the bureaucratic form of
organizational structure?
A. Henry Fayol
B. Max Weber
C. LyndallUrwick
D. Henry Gantt
E. Mary Parker Follett
6. Organizational behaviour has drawn useful knowledge from

several other disciplines,
such as:
A. political science, economics, sociology
B. anthropology, mathematics, political science
C. sociology, psychology, physiology
D. economics, mathematics, political science
280
E. engineering, psychology, statistics
7. Which of the following perspectives have become increasingly

influential in the field
of organizational behaviour?
A. the systems approach and the contingency initiative
B. the interdisciplinary view and the interactional view
C. the systems approach, the contingency perspective and the
interactional view
D. the contingency perspective and the interdisciplinary
approach
E. the segmentation perspective, the systems approach and
the contingency view
8. The ERG theory assumes that if a person becomes frustrated trying

to satisfy a higher level of need, he or she
A. adopts a new direction for fulfilling the need
B. moves on to a higher level needs -
C. moves back to the previous dominant level of needs
D. reconsiders the importance of the need
E. seeks reinforcement from others
Match the appropriate meaning for each of the theories words in

Questions 9-13
9. Theory X means……………………………….
10. Theory Y means……………………………….
11. Equity Theory means……………………………….
12. Commitment means……………………………….
13. Turnover means……………………………….
281
A. The extent to which people are personally interested in seeing
that a goal is reached
B. Theory hypothesizing that people compare their own input-to-
outcome ratio to that of a comparison other
C. Occurs when people leave the organization
D. People do not like work
E. People are internally motivated to reach objectives to which
they are committed
Carefully read each question below and choose the best option as
required:
14. Which of the following is not an organizational stressor?
A. Unhealthy working conditions
B. Social support
C. Role demands
D. Task demands
E. Security
F.
15. _________________occurs when an employee is given a large
volume of work to do
A. Stress
B. Overload
C. Burnout
D. Physical demand
E. Dissatisfaction
16. What lies between certainty and uncertainty in making

decisions
A. Guesswork
B. Risk
C. Problem solving
282
D. Decision rules
E. Coin tossing
17. Which of the following is not an internal source of individual

need satisfaction?
A. Activities of the group
B. Goals of the group
C. Cohesiveness of the group
D. Social affiliation
E. Interpersonal attraction
18. Which of the following is not one of Mintzberg's major ways

that tasks are coordinated?
A. Mutual adjustment
B. Standardization of process
C. Standardization of worker skills
D. Standardization of supervision
E. Standardization of outputs
19. After James filed a discrimination complaint, he felt that his

case was not handled properly and that lie was not given a fair
hearing. His resulting complaint had a
negative impact on employees' morale and the organization's
Culture. This most
closely reflects.
A. Procedural justice
B. B. Equity in the workplace
C. Equal opportunity employment
D. Legal issues in business
E. None of the above
283
Match the appropriate word for each of the meaning in questions
20 — 24
20. Ethics
21. Leading
22. Planning
23 Autonomy
24. Esteem
A. Charting a course for a desired future state
B. Beliefs about right and wrong
C. Motivation and group dynamics
D. Need for a positive self-image
E. Need to break away from restraints
Please carefully read each question below and choose the best
option as required:
25. Keeping activities within an organization on track toward goal
attainment is an example of the _________________
management function.
a) Controlling
b) Organizing
c) Leading
d) Planning
e) Monitoring
26. In contrast to Maslow theory, H.A. Murray’s manifest needs

theory assumes that
(a) People can be characterized in terms of a set of needs
that serves to motivate behaviour
(b) A verity of needs operate at any given time.
284
(c) The mechanisms by which needs operate are more
dependent
(d) Needs are unlearned
27. Which of the following is not excuse by managers to avoid

formally appraising the performance of employees who work
for them?
(a) “It takes too much time”
(b) “ I am qualified to judge others”
(c) “The form we use is bad”
(d) “no one does it to me”
(e) “It is so painful”
28. ________________ occurs when an employee is given a large

volume of work to do
(a) Stress
(b) Overload
(c) Burnout
(d) Physical demand
(e) Dissatisfaction
29. The decision making conditions of certainty, uncertainty and

risk come into play during the _______________________
phase
30. It is only when _______________ is part of an official

organizational role that it becomes authority.
(a) Cooperation
(b) Responsibility
(c) Awareness
285
(d) Feedback
(e) Power
Carefully read each question below and choose the best option as
required:
31. Work diversity can be described as adapting to one of the
following
A. People who have different background, in terms of race,
gender, ethnic differences.
B. Diversification of different units of production
C. Managing differences in language
D. Coping with people of various nationals at work
E. All of the above
32. Role ambiguity occurs as a result of one of the following

(A) Lack of clarity as to the precise requirement of the role
(B) Clarity of perception of individual roles
(C) Uncertainty beclouding issues as methods of
performing task
(D) When there is role overload
(E) A&C
33. The rational decision making model can be described as one of

the following
(A) Scientific approach to decision making
(B) Behavioural approach to decision making
(C) Structural approach to decision making
(D) Technological approach to decision making
(E) Environmental approach to decision making
286
34. Adams (1965) equity theory is basically concerned with
explaining what individuals
considered being equitable and one of the following
(A) Reactions to being in the situation they perceive as
thorough
(B) Reactions to being in the situation they perceive as
unfair
(C) Function of a person's expectation about the
relationship among his effort
(D) The desire to control others
(E) Products of how much one wants something.
Fill in the gaps with the appropriate words from the alphabets
lettered A-E
Pamela is surprised at the amount of motivational energy her recent
‘pep talk’ seems to have created in her staff. They seem to be very
concerned about making her happy and making good impression on
her. As she ponders their reaction, she concludes that her emphasis on
helping her employees develop their potential is really paying off. An
employee approaches her and asks if their team could create a team T-
shirt and wear it on casual dress pay. Pamela agrees. Finally, Pamela
decided the company ought to do more to recognize employee
accomplishments, so she proposes a company wide recognition /
awards programme.
35. Pamela is surprised by the motivational element of
………………………
36. Pamela’s emphasis focuses on which level of Alderfer’s
hierarchy? ……………………
37. The employee’s request is an example of the desire to meet
………………………
A. Relatedness needs
287
B. Safety
C. Arousal
D. Direction
E. Growth
38. The right to command others is known as

A. Management
B. Division of labour
C. Authority
D. Synergy
E. The manager’s challenge
39. The right of self-determination includes

A. Job enrichment
B. Comparable worth
C. Individual privacy
D. Job enlargement
E. Job rotation
40. Which of these is a basis for position power?

A. expertise
B. knowledge
C. rewards
D. judgment
E. referent
41. A work group

A. is created by formal authority
B. transforms resource inputs into product outputs
288
C. provides the opportunity to become more broadly
included in workplace affairs
D. achieves high levels of task performance and human
resource maintenance
E. is created by formal authority and transforms resource
inputs into product outputs
Fill in the gaps with the appropriate words

42. The purpose of organizational behaviour as a field of study is
to predict and control behaviour and applying such knowledge
towards achieving …………………
(A) Organizational stability
(B) Organizational effectiveness
(C) Deductive effectiveness
(D) Group decision making
(E) None of the above
43. Organization comprises of two or more people and they exist

on a
(A) Legendary basis
(B) Continuous basis
(C) Short term basis
(D) All of the above
(F) None of the above
44. Occupational prestige is the importance attached to a

profession based on required of such occupation.
(A) Length of training
(B) Life expectancy
(C) Income expectation
(D) None of the above
(E) All of the above
289
45. The skills necessary to accomplish specific tasks in
organizations are called
(A) Technical skills
(B) Interpersonal skills
(C) Conceptual skills
(D) Diagnostic skills
(E) Time management skills
46. What is the most basic purpose of performance measurement?

(A) To allocate rewards
(B) To develop training and development programs
(C) To provide information about work behaviours
(D) To plan human resource needs
(E) To give employees feedback
47. When cohesiveness and norms are congruent with

organizational goals, productivity is the highest
(A) high, highly
(B) low, not
(C) high, not
(D) low, highly
(E) present, highly
48. One of the following is not a key element of organizational

behaviour
(A) People, structure, strategy
(B) People, structure and technology
(C) Structure, integrity, synergy
(D) People, structure, technology
(E) People, structure, technology and environment
290
49. Drawing a general impression about a person based on the
occurrence of a single characteristics is called -------------------
(A) Halo effect

(B) Stereotype
(C) Relational method
(D) Performance evaluation
50. ……………… is bound to occur when an individual is

confronted with difficulty of reconciling two or more divergent
expectation.
(A) Role conflict
(B) Role strain
(C) Role expectation
(D) Role ambiguity.
291
SOLUTIONS
1. Personality
2. Coercive power
3. Mary Parker Follet
4. Informal group
5. B
6. A
7. C
8. C
9. D
10. E
11. B
12. A
13. C
14. B
15. B
16. B
17. C
18. D
19. A
20. B
21. C
22. A
23. E
24. D
25. A
26. B
27. B
28. B
29. A
30. E
292
31. A
32. E
33. B
34. A
35. Arousal
36. Growth
37. A
38. C
39. A
40. C
41. E
42. B
43. B
44. A
45. A
46. C
47. A
48. E
49. A
50. A
293

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STUDY PACK

ORGANISATIONAL BEHAVIOUR AND

CIPM House, 1 CIPM Avenue, Off Obafemi Awolowo Way,

All rights reserved, no part of this publication may be reproduced,stored in

The text is meant not only for Chartered Institute of Personnel

Each chapter in the text has been logically arranged to sufficiently

Thank you and have a productive preparation as you navigate through

We also commend and appreciate the efforts of members of the

Finally, we appreciate the contributions of the National Secretariat staff

The above elements are necessary conditions for organisations to

Organisational behaviour has focused on various different topics of

In the 1970’s, theories of contingency and institutions, as well as

1.4 RELATIONSHIP BETWEEN ORGANISATIONAL

Source: Diksha (2016)

It studies the behaviour of the people in the society in relation to their

Anthropology contributes in understanding the cultural effects on

In organisations, people strive for power and leadership recognition.

Technology changes consumer behaviour, production activities,

Thus, it can be concluded that organisational behaviour has an

1.5. ORGANISATIONAL BEHAVIOUR IN PRACTICE

The application of theory and knowledge from the field of

1.6. CHALLENGES OF ORGANISATIONAL BEHAVIOUR

Diversity in the workplace may feature the physically impaired,

Managers must be seen to respect diversity. They have to shift their

If diversity is not properly managed it can lead to high employee

- Growing number of youngsters:

2. WORK PLACE ISSUES AND CHALLENGES:

Managers nowadays must understand that any effort to improve the

- Managing Technology and Innovations

- Coping with Temporariness

- Managing Global Environment

- Air, Water and Soil Pollution

- Research and Development

- National Economic Policies

According to the International organisation for standardisation"TQM is

7. Fact-based Decision Making

1.8. WORKFORCE DIVERSITY

1.9. BENEFITS OF WORKPLACE DIVERSITY

- Broader Service Range

- More Effective Execution

1.10. CHALLENGES OF DIVERSITY IN THE WORKPLACE

- Implementation of Diversity in the Workplace Policies

- Successful Management of Diversity in the Workplace.

- Race and Ethnicity.

1.11. RECOMMENDED APPROACHES TO ISSUES ON

- Foster an attitude of openness in your organization. -

- Promote diversity in leadership positions. - This practice

- Launch a customizable employee satisfaction survey that

In conclusion, as the economy becomes increasingly global, our

Moorhead, G., & Griffin, R. W. (1995).Organisational Behaviour:

Wagner, J. A., & Hollenbeck, J. R. (2010).Organisational Behaviour:

(b) Management functions are the act of:

iv. Controlling: Monitoring activities to ensure they are

(c) Management roles:

(e) (i) Responding to globalisation.

(f) Major personality attributes influencing organisational

(h) Steps in the rational decision-making model:

(i) ESOPs are company established benefit plans in which

(b) Organisational behaviour encompasses thinking and research from

There are many disciplines that make up organisational behaviour as

Characteristics of Type B personality

Type A personality Characteristics

2.0 LEARNING OBJECTIVES