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Organizational Behavior - systematic study of the actions and attitudes that people exhibit within organizations The field of OB seeks to replace intuitive explanations with systematic study
Goals of Organisational Behaviour
Explain, predict, and control human behavior
Why Do We Study OB?
learn about yourself and how to deal with others • You are part of an organization now, and will continue to be a part of various organizations • Organizations are increasingly expecting individuals to be able to work in teams, at least some of the time • Some of you may want to be managers or entrepreneurs
What Is an Organization?
A consciously coordinated social unit, composed of a group of people, which functions on a relatively continuous basis to achieve a common goal or set of goals.
Determinants of Employee Performance
Productivity Absenteeism Turnover organizational behaviour is a field of study that investigates the impact that individuals, groups and structure have on behaviour withinorganizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. Systematic study - the use of scientific evidence gathered under controlled conditions and measured and interpreted in a reasonably rigorous manner to attribute cause and effect
Challenges Facing the Workplace •Organizational Level • Productivity • Developing Effective Employees • Global Competition • Managing in the Global Village Group Level • Working With Others • Workforce DiversityIndividual Level • Job Satisfaction • Empowerment • Behaving Ethically .
and change behavior Sociology studies people in relation to their fellow human beings Social psychology focuses on the influence of people on one another Anthropology is the study of societies to learn about human beings and their activities Political science is the study of the behavior of individuals and groups within a political environment .explain.Contributing Disciplines Psychology seeks to measure.
Responding to Globalization Increased Foreign Assignments Working with People from Different Cultures Coping with Anti-Capitalism Backlash Overseeing Movement of Jobs to Countries with Low-cost Labor .
OB Insights Improving People Skills Improving Customer Service Empowering People Working in Networked Organizations Stimulating Innovation and Change Coping with “Temporariness” Helping Employees Balance Work/Life Conflicts Declining Employee Loyalty Improving Ethical Behavior .
Definition of Learning A relatively permanent change in behaviour (or behaviour tendency) that occurs as a result of a person’s interaction with the environment .
How Learning Occurs Classical Conditioning Bell No Response Unconditioned Stimulus (Food) During Conditioning Conditioned Stimulus (Bell) Unconditioned Response (Salivation) Unconditioned Stimulus (Food) Unconditioned Response (Salvation) Conditioned Response (Salivation) Conditioned Stimulus (Bell) .
Operant Conditioning .
Contingencies of Reinforcement Consequence is introduced Behaviour increases/ maintained Positive reinforcement No consequence Consequence is removed Negative reinforcement Behaviour decreases Punishment Extinction Punishment .
Schedules of Reinforcement Behaviours 1 2 3 4 5 6 7 8 9 Continuous Fixed ratio Variable ratio Time (Days) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Fixed interval Variable interval .
Kolb’s Experiential Learning Model Concrete experience Active experimentation Reflective observation Abstract conceptualization .
Developing a Learning Orientation Value the generation of new knowledge Reward experimentation Recognize mistakes as part of learning Encourage employees to take reasonable risks .
complex and stressful problem’. with immediate relevance to the company – Concrete experience – Learning meetings – Team conceptualizes and applies a solution to a problem .Action Learning Experiential learning in which employees are involved in a ‘real. usually in teams.
Learning and OB Stimulus generalization in Organizations Stimulus discrimination in Organizations Learning and Training Learning Through Training Employee Indiscipline .
What is Personality? .
Personality Determinants Heredity Environment Situation Family Social .
Personality Traits The Big Five Model .
The Myers-Briggs Type Indicator
Personality Types Personality Types ••Extroverted or Introverted (E Extroverted or Introverted (E or I) or I) ••Sensing or Intuitive (S or N) Sensing or Intuitive (S or N) ••Thinking or Feeling (T or F) Thinking or Feeling (T or F) ••Perceiving or Judging (P or J) Perceiving or Judging (P or J)
OTHER PERSONALITY TRAITS
Self - Esteem
Locus of Control Personality Traits Machiavellism
Self - Monitoring
Type A Type B Personality
Major Personality Attributes Influencing OB
Locus of control Machiavellianism Self-esteem Self-monitoring Propensity for risk taking Type A personality
Locus of Control .
Machiavellianism Conditions Favoring High Machs Conditions Favoring High Machs ••Direct interaction Direct interaction ••Minimal rules and regulations Minimal rules and regulations ••Distracting emotions Distracting emotions .
Self-Esteem and Self-Monitoring .
Risk Propensity – Aligning managers’ risk-taking propensity to job requirements should be beneficial to organizations. Low Risk-taking Managers – Are slower to make decisions. – Use less information to make decisions.Risk-Taking High Risk-taking Managers – Make quicker decisions. – Exist in larger organizations with stable environments. – Operate in smaller and more entrepreneurial organizations. . – Require more information before making decisions.
Personality Types .
Achieving Personality-Job Fit Holland’s Typology of Personality and Congruent Occupation s .
.OB Applications of Understanding Emotions Ability and Selection – Emotions affect employee effectiveness. Leadership – Emotions are important to acceptance of messages from organizational leaders. Motivation – Emotional commitment to work and high motivation are strongly linked. Decision Making – Emotions are an important part of the decision-making process in organizations.
OB Applications of Understanding Emotions Interpersonal Conflict – Conflict in the workplace and individual emotions are strongly intertwined. Productivity failures Property theft and destruction Political actions Personal aggression . Deviant Workplace Behaviors – Negative emotions can lead to employee deviance in the form of actions that violate established norms and threaten the organization and its members.
3. Intensity: how hard a person tries 2. 2. Direction: toward beneficial goal Direction: toward beneficial goal Persistence: how long a person tries Persistence: how long a person tries . 3. Intensity: how hard a person tries 1.Defining Motivation Key Elements Key Elements 1.
commitment Flatter organizations – Fewer supervisors to monitor performance . restructuring – Damaged trust.Challenges of Motivating Employees Changing workforce – Younger employees have different needs – Diverse workforce Layoffs.
Needs Hierarchy Theory Needs Hierarchy Theory SelfActualization Esteem Belongingness Safety Physiological Maslow arranged five needs in a hierarchy Satisfaction-progression process People who experience self-actualization desire more rather than less of this need Not much support for Maslow’s theory .
Theory X and Theory Y (Douglas McGregor) .
Holland’s Typology of Personality and Congruent Occupations .
Two-Factor Theory (Frederick Herzberg) .
Factors characterizing events on the job that led to extreme job dissatisfaction Factors characterizing events on the job that led to extreme job satisfaction Comparison of Satisfiers and Dissatisfiers .
Contrasting Views of Satisfaction and Dissatisfaction Presence Absence .
ERG Theory ( Alderfer) Needs Hierarchy Theory SelfActualization Esteem Belongingness Safety Existence Physiological Relatedness ERG Theory Growth Alderfer’s model has three sets of needs Adds frustrationregression process to Maslow’s model Somewhat more research support than Maslow’s theory .
Innate Drives Theory Drive to Acquire • Need to take/keep objects and experiences • Basis of hierarchy and status • Need to form relationships and social commitments • Basis of social identity • Need to satisfy curiosity and resolve conflicting information • Basis of self-actualization • Need to protect ourselves • A reactive (not proactive) drive • Basis of fight or flight Drive to Bond Drive to Learn Drive to Defend .
Innate Drives and Motivation Emotional brain centre relies on innate drives to assign emotional markers to incoming information Emotional markers influence rational thoughts and become the conscious sources of motivation .
feedback. not innate Need for achievement – desire for challenging and somewhat risky goals. and avoid conflict – try to project a favourable self-image Need for power – desire to control one’s environment – personalized versus socialized power . recognition Need for affiliation – desire to seek approval.Learned Needs Theory Some needs are learned. conform.
Implications of Needs-based Theories Organizations need to support employees to achieve a balance of their innate needs People have different needs at different times Offer employees a choice of rewards Do not rely too heavily on financial rewards .
Expectancy Theory .
provide coaching and feedback Increasing the P-to-O expectancy – Measure performance accurately. resources. explain how rewards are based on past performance. minimize countervalent outcomes . clarify roles. individualize rewards. provide examples Increasing outcome valences – Use valued rewards. clarify outcomes. selection.Expectancy Theory in Practice Increasing the E-to-P expectancy – training.
Effective Goal Setting Specific Relevant Challenging Commitment Participation Feedback Task Effort Task Performance .
Characteristics of Effective Feedback Specific Credible Relevant Effective Feedback Sufficiently frequent Timely .
Multisource (360-degree) Feedback Supervisor Customer Project leader Co-worker Evaluated Employee Co-worker Subordinate Subordinate Subordinate .
not on reality is. . not on reality itself. reality itself. important. and Why Is It Important? ••People’s behavior is People’s behavior is based on their based on their perception of what perception of what reality is. ••The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important.What Is Perception.
Perceptual Process Model Environmental Stimuli Feeling Hearing Seeing Smelling Tasting Selective Attention Organization and Interpretation Emotions and Behaviours .
intensity. novelty Perceptual context Characteristics of the perceiver – attitudes – perceptual defense – expectations -. motion. repetition.Selective Attention Characteristics of the object – size.condition us to expect events .
Factors That Influence Perception EXHIBIT 5-1 .
situations. . Consensus: response is the same as others to same Consensus: response is the same as others to same situation. situation.Person Perception: Making Judgments About Others Distinctiveness: shows different behaviors in different Distinctiveness: shows different behaviors in different situations. Consistency: responds in the same way over time. Consistency: responds in the same way over time.
Attribution Theory .
Errors and Biases in Attributions Errors and Biases in Attributions (cont’d) .
Errors and Biases in Attributions .
Frequently Used Shortcuts in Judging Others .
Stereotyping Process of assigning traits to people based on their membership in a social category – Categorical thinking – Strong need to understand and anticipate others’ behaviour – Enhances our self-perception and social identity Minimizing Stereotyping Biases Diversity awareness training – educate employees about the benefits of diversity and dispel myths Meaningful interaction – Contact hypothesis Decision-making accountability – use objective criteria in decision-making .
Specific Applications in Organizations Employment Interview – Perceptual biases affect the accuracy of interviewers’ judgments of applicants. . Performance Evaluations – Appraisals are subjective perceptions of performance. Employee Effort – Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias. Performance Expectations – Self-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities.
Other Perceptual Errors Primacy – first impressions – most recent information dominates perceptions – one trait forms a general impression – believing other people are similar to you Recency Halo Projection .
and situation of others – Cognitive and emotional component Self-awareness – Awareness of your values.Improving Perceptions Empathy – Sensitivity to the feelings. thoughts. beliefs and prejudices – Applying Johari Window .
.Conflict Defined The process in which one party perceives that its interests are being opposed or negatively affected by another party.
The Conflict Process Conflict Perceptions Sources of Conflict Conflict Emotions Manifest Conflict Conflict Outcomes Conflict Escalation Cycle .
not parties – Helps recognize problems. Socioemotional Conflict Task-related conflict – Conflict is aimed at issue. identify solutions. and understand the issues better – Potentially healthy and valuable Socioemotional conflict – Conflict viewed as a personal attack – Introduces perceptual biases – Distorts information processing .Task vs.
Organizational Conflict Outcomes Conflict Management – Interventions that alter the level and form of conflict for organizational effectiveness Constructive Conflict – Encourages people to learn about other points of view .
job dissatisfaction.Organizational Conflict Outcomes Potential benefits – Improves decision making – Strengthens team dynamics Dysfunctional outcomes – Diverts energy and resources – Weakens knowledge management – Increases frustration. stress. turnover and absenteeism .
Sources of Conflict Incompatible Goals • One party’s goals perceived to interfere with other’s goals Differentiation • Different values/beliefs • Explains cross-cultural and generational conflict • Conflict increases with interdependence • Higher risk that parties interfere with each other more Task Interdependence .
threatens goals • Without rules. people rely on politics Communication Problems • Increases stereotyping • Reduces motivation to communicate • Escalates conflict when arrogant .Sources of Conflict (con’t) Scarce Resources • Motivates competition for the resource Ambiguous Rules • Creates uncertainty.
Conflict Management Styles High Forcing Problem-Solving Assertiveness Compromising Avoiding Low Yielding Cooperativeness High .
and regions Other ways to reduce differentiation: – Common dress code/status – Common work experience Better Communication/Understanding Employees understand and appreciate each other’s views through communication – Informal gatherings – Formal dialogue sessions – Teambuilding activities . departments.Conflict resolution Emphasizing Superordinate Goals Emphasizing common objectives rather than conflicting sub-goals Reduces goal incompatibility and differentiation Reducing Differentiation Remove sources of different values and beliefs Move employees around to different jobs.
Other Ways to Manage Conflict
Reduce Task Interdependence
– Dividing shared resources – Combine tasks – Use buffers
– Duplicate resources
Clarify Rules and Procedures
– Clarify resource distribution – Change interdependence
Situational Influences on Negotiation
Location Physical Setting Time Passage and Deadlines Audience
Effective Negotiator Behaviours
Preparation and Goal Setting Gathering Information Communicating Effectively Making Concessions
Types of Third Party Intervention High Mediation Inquisition Level of Process Control Arbitration Low Level of Outcome Control High .
Organizational Culture Defined The basic pattern of shared assumptions. and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization. . values.
The Basic Functions of Organizational Culture Organizational Culture/basic functions Provides a sense of identity for members Enhances commitment to the organization’s mission Clairifies and reinforces standards of behavior .
What Is Organizational Culture? .
What Is Organizational Culture? Culture Versus Formalization – A strong culture increases behavioral consistency and can act as a substitute for formalization. – Nationals selected to work for foreign companies may be atypical of the local/native population. Organizational Culture Versus National Culture – National culture has a greater impact on employees than does their organization’s culture. .
Defines the boundary between one organization and others. . 2. 4. 4. Enhances the stability of the social system. Facilitates the generation of commitment to 3. 2. 3.What Do Cultures Do? Culture’s Functions: Culture’s Functions: 1. Defines the boundary between one 1. Enhances the stability of the social system. Facilitates the generation of commitment to something larger than self-interest. Conveys aasense of identity for its members. Conveys sense of identity for its members. organization and others. something larger than self-interest.
Barrier to acquisitions and 3. Barrier to diversity 3. Barrier to change 1. Barrier to acquisitions and mergers mergers . Barrier to diversity 2. Barrier to change 2.What Do Cultures Do? Culture as a Liability: Culture as a Liability: 1.
Core Organizational Values Reflected in Culture •Sensitivity to needs of customers and employees •Freedom to initiate new ideas •Willingness to tolerate taking risks •Openness to communication options .
Elements of Organizational Culture
Artifacts of Organizational Culture
Physical Structures Language Rituals and Ceremonies Stories and Legends
Beliefs Values Assumptions
Artifacts: Stories and Legends
Social prescriptions of desired (undesired) behaviour Provides a realistic human side to expectations Most effective stories and legends:
– – – – Describe real people Assumed to be true Known throughout the organization Are prescriptive
Artifacts: Rituals and Ceremonies
– programmed routines – (eg., how visitors are greeted)
– planned activities for an audience – (eg., award ceremonies)
Whirlpool’s “PowerPoint culture” . etc. describe customers.Artifacts: Organizational Language Words used to address people. Container Store’s “Being Gumby” Language also found in subcultures – eg. Leaders use phrases and special vocabulary as cultural symbols – eg.
office size.may shape and reflect culture Office design conveys cultural meaning – Furniture. wall hangings .Artifacts: Physical Structures and Symbols Building structure -.
Organizational Culture .
The Process of Innovation Stage 1 Setting the Agenda Stage 2 Setting the Stage Stage 3 Producing the Ideas Stage 4 Testing and Implementing the Ideas Stage 5 Progress End End Success Outcome Assessment Failure Motivation Individual or Team Productivity Resources Skills .
more customer focused. •• Change organizational structure to give Change organizational structure to give employees more control. •• Empower employees to make decision about Empower employees to make decision about their jobs. their jobs.Creating a Customer-Responsive Culture Managerial Actions: Managerial Actions: •• Select new employees with personality and Select new employees with personality and attitudes consistent with high service attitudes consistent with high service orientation. . employees more control. •• Train and socialize current employees to be Train and socialize current employees to be more customer focused. orientation.
make special efforts to please customers. and demonstrating commitment to customers. •• Provide ongoing recognition for employees who Provide ongoing recognition for employees who make special efforts to please customers. customer-focused employee behaviors. •• Conduct performance appraisals based on Conduct performance appraisals based on customer-focused employee behaviors.Creating a Customer-Responsive Culture Managerial Actions (cont’d) :: Managerial Actions (cont’d) •• Lead by conveying a customer-focused vision Lead by conveying a customer-focused vision and demonstrating commitment to customers. .
Top Management – Senior executives help establish behavioral norms that are adopted by the organization. – Provides information to candidates about the organization. Socialization – The process that helps new employees adapt to the organization’s culture.Keeping Culture Alive Selection – Concerned with how well the candidates will fit into the organization. .
Stages in the Socialization Process .
How Organization Cultures Form .
How Employees Learn Culture •• Stories Stories •• Rituals Rituals •• Material Symbols Material Symbols •• Language Language .
Spirituality and Organizational Culture Characteristics: Characteristics: • • Strong sense of Strong sense of purpose purpose • • Focus on individual Focus on individual development development • • Trust and openness Trust and openness • • Employee Employee empowerment empowerment • • Toleration of employee Toleration of employee expression expression .
Theories of leadership. Consider leading softly is more effective than armour plated command and control. Just the qualities you need to be a strong leader”.“Vulnerable Sensitive. Honest about your weakness. . Warren G Bennis Today’s Presentation is aimed at: Discussing the necessity of leadership. Harvard Business Review “Failing Organisations are usually over-managed and under-led”. Identifying differences between Manager and Leader. Understanding and finding implications of different leadership styles.
Essentially a process of influencing. Chester Barnard It implies: – – – – – It is a continuous process. Keith Davis “Leadership is the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals”. .“Leadership is the ability to persuade others to seek defined objectives enthusiastically. Functioning of a common goals determines leader follower relationship. A continuous motivation process. It is the human factor which binds a group together and motivates it towards goals”. Koontz “Leadership is the quality of behaviour of individuals whereby they guide people or their activities in organising efforts”. Basically a personal quality.
Developing Team Work. Counselling People. Building Morale. . Securing Group Effectiveness.NECESSITY Motivating Employees. Creating Confidence.
Ultra-utilization of power.STYLES OF LEADERSHIP Autocratic Leadership Participative Leadership Free-rein Leadership Autocratic Leadership Authoritarian. Types of Autocratic Leadership Strict Autocrat Benevolent Autocrat Incompetent Autocrat . directive or nomothetic style. Result may be negative leadership.
Decentralised decision . consultative or ideographic style. policy . Manager only maintains a contact. Team building and goal sharing.Participative Leadership Democratic.making process. Consultation and participation of subordinates. Manager’s only contribution in framing programmes and limitation. Free-rein Leadership Super democratic style. Policy of no intervention.
Contingency Theories. Leadership-participation Theory. LMX Theory. Situational Theories. Behavioural Theories. Leadership Theories .Trait Theories. Path-Goal Theory.
LEADERSHIP AS A CONTINUUM Leadership in a practical world is between two extremes of autocratic and free-rein. asks groups to make decision . Tannenbaum and Schmidt proposed a continuum moving from authoritarian leadership behaviour to Autocratic Free-rein free-rein. (subordinate centered leadership) Use of authority by the Manager Area of freedom for subordinates Manager takes decisions and announces Manager presents ideas and invities suggestions Manager presents problems. gets suggestions and makes decisions Manager permits subordinates of function within limits defined by superior (boss centered leadership) Manager sells decisions Manager presents tentative decision subject to change Manager defines limits.
Managers achieve results by directing the activities of others. leadership determines whether the ladder s leaning against the right wall”. 2. Manager manages things. . 2. Manager enjoys formal designated authority. Management’s efficiency lies in climbing the ladder of success. and leaders are people who do the right thing. Managers hold formal position. Leader leads people. LEADERSHIP Warren Bennis and Burt Nanus MANAGEMENT 1. 3. 1. Manager engenders fear. 3. Leader can use his/her informal influence. Leader inspires enthusiasm. Leaders create a vision and inspire others to achieve this vision. 4.DIFFERENCES BETWEEN MANAGER AND LEADER “Managers are people who do things right. 4. Leader processes nonsanctioned influences ability. 5. 5.
Complaints. and Criticism Setting Goals Focus and Discipline Achieving Balance Creating a Positive Mental Attitude Learningnot to worry The Power of Enthusiasm . Praise.Way to Effective Leadership Finding the Leader in You Starting to Communicate Motivating People Expressing Genuine Interest in others Seeing Things from the Other Person’s point of view Listening to Learn Teaming up for Tomorrow Respecting the dignity of others Recognition. and Rewards Handling Mistakes.
R.Organisational Change “Organisational Change is the process by which organisations move from their present state to some desired future state to increase their effectiveness” Gareth. Jones Org Level Forces Org structure Org Cultureion Org Strategy & Over Determination Sources of Change Individual Level Forces Cognitive Biases Uncertainty Fear of Loss Selective Perception Habit Logical Reasons Group level Forces Group Norms Group Cohesiveness Groupthink Sub Unit Level Forces Differences in Orientation Power & Conflict .
physical setting and people . employees or consultants Change agents can change structure. continuous and radical Change Agents: Can be managers or non managers.Planned & Unplanned Change Planned change are the activities that are intentional and goal oriented First order change – Linear and Continuous Second order change – that is multidimensional multilevel. technology.
Force Field Analysis Model Desired Conditions Restraining Forces Restraining Forces Driving Forces Restraining Forces Current Conditions Driving Forces Driving Forces Before Change During Change After Change .
Resistance to Change Nature of the Workforce Technology Forces for Change Economic Shocks Competition Social Trends World Politics .
not contrived Customer-driven change – Adverse consequences for firm – Human element energizes employees .Creating an Urgency for Change Inform employees about driving forces Most difficult when organization is doing well Must be real.
Minimizing Resistance to Change Communication Highest priority and first strategy for change Improves urgency to change Reduces uncertainty (fear of unknown) Problems -.time consuming and costly .
timeconsuming.Minimizing Resistance to Change Communication Training Employee Involvement Increases ownership of change Helps saving face and reducing fear of unknown Includes task forces. search conferences Problems -. potential conflict .
Minimizing Resistance to Change Communication
Training Employee Involvement Stress Management
When communication, training, and involvement do not resolve stress Potential benefits
– More motivation to change – Less fear of unknown – Fewer direct costs
Problems -- timeconsuming, expensive, doesn’t help everyone
Minimizing Resistance to Change Communication
Training Employee Involvement Stress Management Negotiation
When people clearly lose something and won’t otherwise support change Influence by exchange-reduces direct costs Problems
– Expensive – Increases compliance, not commitment
Minimizing Resistance to Change Communication
Training Employee Involvement Stress Management Negotiation Coercion
When all else fails Assertive influence Firing people -- radical form of “unlearning” Problems
– Reduces trust – May create more subtle resistance
Refreezing the Desired Conditions Realigning organizational systems and team dynamics with the desired changes – Alter rewards to reinforce new behaviours – Feedback systems Help employees learn how they are doing Provide support for the new behaviour patterns .
Strategic Vision & Change Need a vision of the desired future state Minimizes employee fear of the unknown Clarifies role perceptions .
Change Agents Anyone who possesses enough knowledge and power to guide and facilitate the change effort Change agents apply transformational leadership – – – – Help develop a vision Communicate the vision Act consistently with the vision Build commitment to the vision .
Successfully Diffusing Change Successful pilot project Receives visibility Top management support Labour union involvement Diffusion strategy described clearly Pilot project people moved to other areas .
Action Research Philosophy Change needs both action and research focus Action orientation – Solve problems and change the organizational system Research orientation – Concepts guide the change – Data needed to diagnose problem. identify intervention. evaluate change .
Action Research Process Establish ClientConsultant Relations Diagnose Need for Change IntroAduce Change Evaluate/ Stabilize Change Disengage Consultant’s Services .
Reframes relationships around the positive rather than being problem oriented Courtesy of Amanda Trotsen-Bloom .Appreciative Inquiry Philosophy Directs the group’s attention away from its own problems and focuses participants on the group’s potential and positive elements.
Appreciative Inquiry Process Discovery Dreaming Forming ideas about “what might be” Designing Engaging in dialogue about “what should be” Delivering Developing objectives about “what will be” Discovering the best of “what is” .
Parallel Learning Structure Philosophy Highly participative social structures Members representative across the formal hierarchy Sufficiently free from firm’s constraints Develop solutions for organizational change which are then applied back into the larger organization .
Parallel Learning Structures Parallel Structure Organization .
Cross-Cultural and Ethical Concerns Cross-Cultural Concerns – Linear and open conflict assumptions different from values in some cultures Ethical Concerns – Privacy rights of individuals – Management power – Individuals’ self-esteem – Consultant’s role .
Essence of social behaviour Proemics f. Non Verbal c. Provides Information d.Communication Communication may be understood as the process of exchanging information and understanding between people Significance: a. Written Para language . Control member behaviour b. Verbal Kinesics b. Role in knowledge management Types of Communication: a. Fosters motivation c. Changing people’s attitudes e.
e.Organisational Communication a. d. c. b. b. Factors Influencing Organisational Communication Formal channel of communication Authority structure Job specialisation Information ownership Downward communication Upward communication Lateral communication Diagonal communiaction External communication Communication Flows a. . c. d.
Communication Networks Wheel Network A Chain Network A A Y Network B B C C D All Channel Network A B D E B C D E A E E Circle Network E B D C D C .
Chain System b. c. Gatekeepers Liasons Isolates Cosmopolites Informal Communication ( Grapevine ) a. Cluster System c. d. b. Gossip Sustem .Communication Roles a.
Communication Process Source Message Encoding Message Channel Message Decoding Message F E E D B A C K Reciever .
Sender Related Barriers: Communication Goals Communication Skills Interpersonal Sensitivity Differing frames of reference Improper Diction Inconsistent Non – Verbal Signals Fear Sender Credibility Receiver Related Barriers Selective & Poor Listening Evaluating the Source Perceptions Lack of responsive feedback Meta communication Communication Barriers .
Setting communication goals b. Information Overload c. Jargon b. Using appropriate language c. Using face to face communication f. Murphy’s Law of Communication Overcoming the Barriers: Sender’s Responsibility a. Communication Climate e. Improving Coommunicator’s Credibility e. Time Pressure d. Noise f.Situation Related Barriers: a. Encouraging feedback . Using empathic communication d. Mechanical Failure h. Distance g.
Using picture Receiver's Responsibility: a. Bias and pre judgment viii. Developing trusting climate i. Physiological Limitation iii. Avoiding evaluative judgement xi. Effective Listening ( Barriers to effective listening ): ii.g. Inadequate background information iv. Influence from emotions x. Using a correct amount of redundancy h. Selective expectation vi. Providing responsive feedback .Selective perception ix. Fear of being influenced or persuaded vii. Selective memory v.
Motorola and Eastman kodak functioning in more than 50 countries Most assets owned by different nationalities Trade volume growing since WW II from $51 Billion to $415 Billion in 1972 and since then $18 trillion till recent times . Honda.International OB Trends in International Business International joint ventures. BP. Multinational mergers & Acquisitions and global strategic alliances More earning from international business than domestic ABB. Siemens.
Cultural Similarities & Differences Cultural Norms. stories and rituals vary from nation to nation Arabs Japanese Americans Freedom Independence Self – Reliance Equality Individualism Competition Efficiency Time Directness Openness Aggressiveness Informality Future Orientation Risk – Taking Creativity Self Accomplishment Winning Money Material Possessions Privacy Belongingness Group Harmony Collectiveness Age / Seniority Group Consensus Cooperation Quality Patience Indirectness Go Between Interpersonal Hierarchy Continuation Conservative Information Group Achievement Success Relationship Harmony with Nature Networking Family Security Family Harmony Parental Guidance Age Authority Compromise Devotion Very Patient Indirectness Hospitality Friendship Formal/Admiration Past & Present Religious Belief Tradition Social Recognition Reputation Friendship Belongingness Family Network . Values. cultural symbols.
Cultural Clusters Anglo Australia Canada Ireland New zealand South Africa UK USA Latin American Argentina Chile Columbia Mexico Peru Venezuela Latin European Belgium France Italy Portugal Spain Near Eastern Greece Iran Turkey Portugal Spain Arab Abu Dhabi Bahrain Kuwait Oman Saudi Arabia UAE Far Eastern Hong Kong Indonesia Malaysia Philippines Singapore Taiwan Thailand Vietnam Nordic Denmark Finland Norway Sweden Germanic Austria Germany Switzerland Independent Brazil India Israel Japan .
HR Practices • Hourly Wage rates in Mexico plays little role as it is mandatory for the employers to pay wages for 365 days • In Aus and Brazil employees get 1 month leave for one yr of work • In Japan seniority is the basis of promotions and performance • In UK maternity leave is 40 weeks 18 of these paid •In sweden 87% of companies HR managers are on board of directors .
can be great source of energy and organizational effectiveness . and other material things • Cultural Diversity – Source of energy . money. and have certain beliefs and institutions that try to avoid these • Individualism – is the tendency of people to look after themselves and their family • Masculinity – refers to a situation in which the dominant values in a society are success.Hofstede’s Cultural Dimension • Power Distance – is the extent to which less powerful members of institutions of and organizations accept that power is distributed unequally • Uncertainty Avoidance – is the extent to which people feel threatened by ambiguous situations.
Fringe Benefits Japanese Persuasion. Nationalistic. Functional Group activities Group Harmony Arab Coaching. Admiration Individual Status. Social Status Annual Bonus. Risk Taking Material Possession. Company Success Individual Contribution Group Identity. Friendliness Independence. Space. Money Opportunity Group Participation. Parenthood Of parents \ parenthood Religion. Promotion Gift for self\family Family affair. Class\ society. Decision Making. Reputation. Time. Belong Ing to group Salary. salary increase Demotion . Achievement. Profit – Sharing Loss of Job Out of Group Competition. Personal attention.Motivation Across Cultures American •Management Styles • Control • Emotional Appeal •Recognition •Material Awards •Threats •Cultural Values Leadership. Family security. Commission. Religion. Freedom Group harmony. Social Services.
Denmark more than 80% of employees belong to trade unions In Germany a minimum 18 days paid annual leave is mandatory In India MNC employees are paid more for identical work Distinction in salaries in different industries for identical works Huge gaps between employees of organized and unorganized sectors Distinction between salaries of public and private sector organizations In Govt. Taiwan Korean & Japanese workers expect bonuses twice a year In. Singapore.Compensation Across Cultures Japanese get paid more than three times the wages of other Asian countries like Korea. sector salary gaps between different departments .
Assignments Choice Customize Core Competitive Cash Performance Based Employability Work Challenges Stock Purchase Flexible Schedules Base /Bonus Tax Deferral Benefit Choices MNC Pay Schedules Base/ Bonus Mix Phases of Cultural Adjustment Phase 1 – Expatriate experiences range of emotions Phase 2 – Crisis / Shock leading to negative appraisals Phase 3 .Psychological adjustment for the expatriate Phase 4 – Adjustment to the new environment .
4.Emotional Intelligence individual & social 1. 2. 3. Leadership across Cultures National Context Culture influences Worker needs and expectations Self Awareness Self Regulation Motivation Empathy Social Skills National Context Cultural Influences Worker Needs & Expectations Subordinate Characteristics Needs Achievement Motivation Subordinate Motivation Leader Behaviors &Traits Work Setting Outcomes Performance Satisfaction Nature of tasks Organizational structure Nature of work group National Context culture and educational training define leader preferences for behaviors and traits National Context Cultural institutions Influence organizations and group structures . 5.
Leadership Across Cultures Universalism in Leadership Articulates a Vision Breaks from the Status Quo Provides goals and a plan Gives meaning or a purpose to goals Takes risks Is motivated to lead Builds a power base Demonstrates high ethical and moral standards Multicultural Teams Token Teams – One member from one culture Bicultural Teams – Members from two cultures Multicultural Teams – Members from three or more cultures Task – related selection Establishing a vision Equalizing Managing Culturally Diverse Teams .
Negotiating Globally When to Negotiate Strategy Value of Relationship Commitment Exchange Very Important Important Sufficiently Low Power Distribution Time Available Yours/Theirs High Very Low Negot iate High Bargain Take it or Leave it Low Un Important Un Important Very Low Low Very High .
Steps in International Negotiations Step 1 Preparation Step 2 Building the Relati ship Step 3 Exchange of Infor mation and first offer Step 4 Persuasion Step 5 Concessions Step 6 Agreement Negotiating Tactics •Promise • Threat • Recommendation • Warning •Reward • Punishment • Normative Appeal • Commitment • Self – Disclosure • Question • Command .
smile. battling of eyelid. . and silence 2.Communicating Across Cultures 1. 3. kiss. voice. Language and Culture High & Low Context Languages – in which people state things directly and explicitly are low context language and indirectly and implicitly is high context language Use of Interpreters Non – Verbal Communication – facial gestures. intonation. physical distance. handshake.