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Organisational Behaviour

What is Organizational Behavior?

Definition: The study of human behavior, attitudes, and performance in organizations. Value of OB: Helps people attain the competencies needed to become effective employees, team leaders/members, or managers Competency = an interrelated set of abilities, behaviors, attitudes, and knowledge needed by an individual to be effective in most professional and managerial positions

Nortel Networks and OB

Nortel Networks has leveraged the power of organizational behaviour to become one of the worlds leading high technology companies.
D. Chan. Ottawa Citizen

What are Organizations?

Groups of people who work interdependently toward some purpose

Structured patterns of interaction Coordinated tasks Work toward some purpose

D. Chan. Ottawa Citizen

Why Study Organizational Behaviour

Understand organizational events

Influence organizational events

Organizational Behaviour Research

Predict organizational events


Trends: Globalization

New organizational structures Different forms of communication Increases competition, change, mergers, downsizing, stress Need to be more sensitive to cultural differences

Trends: Workforce Diversity

Primary and secondary diversity More women in workforce and professions Different needs of Generation-X and baby-boomers Diversity has advantages, but firms need to adjust

Trends: Employment Relationship

Employability Contingent work Telecommuting Virtual teams

Trends: Information Technology

Affects how employees interact


teams Telecommuting

Affects how organizations are configured


structures issues

Affects how firms relate to customers


Trends: Lots of Teams

Potentially more effective than employees working alone Concern is when to assign tasks to teams rather than to individuals


Trends: Business Ethics

The study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad What is unethical is not always obvious


Elements of Organizational Behavior : The organization's base rests on management's philosophy, values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcome are performance, individual satisfaction, and personal growth and development. All

Models of Organizational Behavior There are four major models or frameworks that organizations operate out of: Autocratic - The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal. Custodial - The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation.

Supportive - The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives.

Collegial - The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and selfdiscipline. The employee need that is met is selfactualization. The performance result is moderate enthusiasm.

Although there are four separate models, almost no organization operates exclusively in one.
There will usually be a predominate one, with one or more areas over-lapping in the other models. The first model, autocratic, has its roots in the industrial revolution.

The managers of this type of organization operate out of McGregor's Theory X. The next three models begin to build on McGregor's Theory Y. They have each evolved over a period of time and there is no one "best" model.

The collegial model should not be thought as the last or best model, but the beginning of a new model or paradigm

Social Systems, Culture, and Individualization :

A social system is a complex set of human relationships interacting in many ways. Within an organization, the social system includes all the people in it and their relationships to each other and to the outside world. The behavior of one member can have an impact, either directly or indirectly, on the behavior of others. Also, the social system does not have exchanges goods, ideas, culture, etc. with the environment around it.

Culture is the conventional behavior of a society that encompasses beliefs, customs, knowledge, and practices. It influences human behavior, even though it seldom enters into their conscious thought. People depend on culture as it gives them stability, security, understanding, and the ability

They fear the system will become unstable, their security will be lost, they will not understand the new process, and they will not know how to respond to the new situations.

Individualization is when employees successfully exert influence on the social system by challenging the culture.

Impact of Individual on an Organisation



Creative Individualism

Socialisat ion Low Low



The chart above (Schein, 1968) shows how individualization affects different organizations:

Organization Development: Organization Development (OD) is the systematic application of behavioral science knowledge at various levels, such as group, inter-group, organization, etc., to bring about planned change. Its objectives is a higher quality of work-life, productivity, adaptability, and effectiveness. It accomplishes this by changing attitudes, behaviors, values, strategies, procedures, and structures so that the organization can adapt to competitive actions, technological advances, and the fast pace of change within the environment. There are seven characteristics of OD:

Humanistic Values: Positive beliefs about the potential of employees (McGregor's Theory Y). Systems Orientation: All parts of the organization, to include structure, technology, and people, must work together. Experiential Learning: The learners' experiences in the training environment should be the kind of human problems they encounter at work. The training should NOT be all theory and lecture. Problem Solving: Problems are identified, data is gathered, corrective action is taken, progress is assessed, and adjustments in the problem solving process are made as needed. This process is known as Action Research. Contingency Orientation: Actions are selected and adapted to

Quality of Work Life : Quality of Work Life (QWL) is the favorableness or unfavorableness of the job environment. Its purpose is to develop jobs and working conditions that are excellent for both the employees and the organization. One of the ways of accomplishing

Job Enrichment and Job Performance

Higher Order

Job Enrichment

Job Enrichment & Enlargement

Accent on Needs Lower Order Few

Routine Job

Job Enlargement
Man y

Variety of task

The benefits of enriching jobs include : Growth of the individual Individuals have better job satisfaction Self-actualization of the individual Better employee performance for the organization Organization gets intrinsically motivated employees Less absenteeism, turnover, and grievances for organization Full use of human resources for society Society gains more effective organizations There are a variety of methods for improving job enrichment: Skill Variety: Perform different tasks that require different skill. This differs from job enlargement which might require the employee to perform more tasks, but require the same set of


Task Identity: Create or perform a complete piece of work. This gives a sense of completion and responsibility for the product. Task Significant: This is the amount of impact that the work has on other people as the employee perceives. Autonomy: This gives employees discretion and control over job related decisions. Feedback: Information that tells workers how well they are performing. It can come directly from the job (task feedback) or verbally form someone else.

Change :
In its simplest form, discontinuity in the work place is "change." Our prefrontal cortex is similar to the RAM memory in a PC -- it is fast and agile computational device that is able to hold multiple threads of logic at once so that we can perform fast calculations. However it has its limits in that it can only hold a handful of concepts at once. In addition, it burns lots of high energy glucose (blood sugar), which is expensive for the body to produce. Thus when given lots of information, such as when a change is required, it has a tendency to overload and being directly linked to the amygdala (the emotional center of the brain) that controls our fight-orflight response, it can cause severe physical and psychological discomfort. Our prefrontal cortex is marvelous for insight when not overloaded. But for normal everyday use, our brain prefers to run off its "harddrive" -- the basal ganglia, which has a much larger storage area and

Organizational Behaviour Anchors

Multidisciplinary anchor Systematic research anchor

Open systems anchor

Organizational Behaviour Anchors

Multiple levels of analysis anchor

Contingency anchor


Learning About Organizational Behavior

What is Organizational Behavior? Seven Foundation Competencies

Managing Self Managing Communication Managing Diversity Managing Ethics Managing Across Cultures Managing Teams Managing Change

Organizations as Open Systems Case Discussion: Robert Princeton at Falls Video 27

Definition of the Managing Self Competency

Involves the ability to assess your own strengths and weaknesses, set and pursue professional and personal goals, balance work and personal life, and engage in new learning (including new or modified skills, behaviors, and attitudes)


Core Abilities of the Managing Self Competency

Understand the personality and attitudes of yourself and others Perceive, appraise, and interpret accurately yourself, others, and the immediate environment Understand and act on your own and others work-related motivations and emotions Assess and establish developmental, personal/life-related, and work-related goals Take responsibility for managing yourself and your career 29

Career Development*

A career is a sequence of work-related positions occupied by a person during a lifetime. Career development involves making decisions about an occupation and engaging in activities to attain career goals. A career plan is an individuals choice of occupation, organization, and career path.


Five Aspects of a Career*

Career success or failure is best determined by the individual, in terms of his/her personal goal achievement No absolute career evaluation standards exist Examine a career subjectively (e.g., values and personality fit) and objectively (e.g., job choices, competencies needed) Make decisions about occupation and pursue activities to attain career goals throughout your lifetime Consider cultural factors as they impact performance and career opportunities 31

Definition of the Managing Communication Competency

Involves the ability to use all the modes of transmitting, understanding, and receiving ideas, thoughts, and feelings, (verbal, listening, nonverbal, written, electronic, etc.) for accurately transferring and exchanging information and emotions


Core Abilities of the Managing Communication Competency

Convey information, ideas, and emotions so they are received as intended Provide constructive feedback Engage in active listening

Use and interpret nonverbal communication effectively

Engage in effective verbal communication Engage in effective written communication

Effectively use electronic communication resources


Definition of the Managing Diversity Competency

Involves the ability to value unique individual and group characteristics, embrace such characteristics as potential sources of organizational strength, and appreciate the uniqueness of each individual


Core Abilities of the Managing Diversity Competency

Foster an environment of inclusion for all Learn from others with different characteristics, experiences, perspectives, and backgrounds Embrace and support diversity Work with others because of their talents and contributions, rather than personal attributes Provide leadership in addressing diversity-based conflicts Apply diversity laws, regulations, and organizational policies related to your position 35

Selected Categories of Diversity*

Primary Categories:

Genetic characteristics that affect a persons self-image and socialization, appear to be unlearned and are difficult to modify

Age, race, ethnicity, gender, physical abilities and qualities, and sexual and affectional orientation

Secondary categories:

Learned characteristics that a person acquires and modifies throughout life

Education, work experience, income, marital status, religious beliefs, geographic location, parental status, behavioral style 36

Definition of the Managing Ethics Competency

Involves the ability to incorporate values and principles that distinguish right from wrong in making decisions and choosing behaviors



Definition: Values and principles that distinguish right from wrong. NOT IN TEXT: Ethics are often based upon laws, organizational policies, social norms, family, religion, and/or personal needs, and may be subject to differing interpretations with problems in proving truth Ethical Dilemma*: A situation in which an individual or team must make a decision that involves multiple values.


Core Abilities of the Managing Ethics Competency

Identify and describe the principles of ethical decision making and behavior Assess the importance of ethical issues in actions Apply laws, regulations, and organizational rules in making decisions and taking action Demonstrate dignity and respect for others Demonstrate honest and open communication limited only by legal, privacy, and competitive considerations 39

Definition of the Managing Across Cultures Competency

Involves the ability to recognize and embrace similarities and differences among nations and cultures and then approach key organizational and strategic issues with an open and curious mind

Culture = the dominant pattern of living, thinking, and believing that is developed and transmitted by people, consciously or unconsciously, to subsequent generations Cultural values = those consciously and subconsciously deeply held beliefs that specify general preferences, behaviors, and define what is right and wrong.

Core Abilities of the Managing Across Cultures Competency

Understand, appreciate, and use cultural factors that can affect behavior Appreciate the influence of work-related values on decisions, preferences, and practices Understand and motivate employees with different values and attitudes Communicate in the local language Deal effectively with extreme conditions in foreign countries Utilize a global mindset (use a worldwide perspective to constantly assess threats or opportunities) 41

Individualism* as a Work-Related Value

Individualism = the tendency of people to look after themselves and their immediate family, which implies a loosely integrated society In cultures that emphasize individualism, people view themselves as independent, unique, and special; value individual goals over group goals; value personal identity, personal achievement, pleasure, and competition; accept interpersonal confrontation; and are less likely to conform to others expectations Such cultures include the United States, Australia, New Zealand and the United Kingdom Example: Stand on your own two feet! 42

Collectivism* as a Work-Related Value

Collectivism = the tendency of people to emphasize their belonging to groups and to look after each other in exchange for loyalty Cultures that emphasize collectivism are characterized by a tight social framework, concern for the common welfare, emotional dependence of individuals on larger social units, a sense of belonging, a desire for harmony, with group goals being viewed as more important than individual goals, and a concern for face-saving Such cultures include Japan, China, Venezuela, and Indonesia Example: The nail that sticks up gets hammered down! 43

Definition of the Managing Teams Competency

Involves the ability to develop, support, facilitate, and lead groups to achieve organizational goals


Core Abilities of the Managing Teams Competency

Determine when and how to use teams Set clear performance goals directly or participatively Define responsibilities and tasks directly or participatively

Show accountability for goal achievement

Use appropriate decision-making methods Effectively manage conflicts

Assess performance and take corrective action as needed


Definition of the Managing Change Competency

Involves the ability to recognize and implement needed adaptations or entirely new transformations in the people, tasks, strategies, structures, or technologies in a persons area of responsibility


Core Abilities of the Managing Change Competency

Apply the other six competencies in pursuit of needed changes Provide leadership in planned change Diagnose pressures for and resistance to change Use the systems model and relevant processes to facilitate change Seek out, learn, share, and apply new knowledge in the pursuit of constant improvement 47

Open Systems Anchor of OB

Feedback Feedback




Subsystem Subsystem



Organizations as Open Systems*

[Not in Text]

Note that organizations are open systems, such that their long term effectiveness is determined by their ability to anticipate, manage, and respond to changes in their environment, with such changes resulting from external forces and/or stakeholders External forces include the labor force, the natural environment, the economy, and different cultures, while stakeholders include shareholders, customers, competitors, suppliers, creditors, governmental agencies and their regulations

Note the impact of these environmental influences on individual, interpersonal, team, and organizational processes; organizations that do not effectively adapt to environmental change will fail