1

MGMT 330ORGANIZATIONAL BEHAVIOUR

2

CHAPTER 1THE MEANING AND SCOPE OFORGANIZATIONAL BEHAVIOUR

3

WHAT IS OB?• A study of human behaviour, attitudes and

performance in organization.

• Interaction between individual and organization

• An interdisciplinary – drawing on concepts from social and clinical psychology, sociology, cultural anthropology, industrial engineering and organizational psychology.

4

UNIT OF ANALYSIS

• Individual

• Group

• Organization

5

RELATIONSHIP BETWEEN OB AND MANAGEMENT

• Organizational behaviour:– Interaction between individual and organization

• Management:– A critical element in the economic growth of the

country– Essential in all organized effort– The dynamic, life giving element in every

organization

6

WHY STUDY OB?

• Cherrington identified three main objectives in organizational behaviour:– Explain– Identify– Control

7

CHAPTER 2THE BEGINNINGS OF STUDIES

8

CLASSICAL SCHOOL OF MANAGEMENT• Consists of three streams of thought:– Bureaucratic organization• Max Webber

– Administrative management• How organizations should be managed and structured• Henri Fayol and Chester Bernard

– Scientific management• Application of scientific methods to increase individual

worker’s productivity• Frederick Winslow Taylor, Henri Gant and Frank and

Lillian Gilbreth

9

HAWTHORNE STUDIES

• The Test Room Studies

• Interviewing Studies

• Observational Studies

10

HUMAN RELATIONS SCHOOL

• Abraham Maslow– Motivation theory• Human needs • Human behaviour• Hierarchy of needs

• Douglas Mc Gregor– Theory X and Y

11

EARLY BEHAVIOUR THEORY• Mary Parker Follett– Management is getting things done with and

through other people– Sharing of empowerment through working

together between employer and employee– Conflict solution through integration

• Hugo Munsterberg– Implement psychology approach in organization’s

problem– Psychology study is very relevant in organizational

behaviour

12

DISCIPLINE OF ORGANIZATIONAL BEHAVIOUR

• Psychology

• Sociology

• Political science

• Economy

• Ecology

13

CHALLENGES IN ORGAZATIONAL BEHAVIOUR

• Business and industry towards globalization and international

• Quality is more important

• Society is concern on management ethics

• Increase of diversity among employees

14

CHAPTER 3BEHAVIOURAL THEORIES

OF ORGANIZATION

15

PSYCHOLOGICAL PERSPECTIVE

• Psychology discipline is the most influent discipline in an organization

• Focus on understanding individual’s behaviour• Biographic• Talent• Personality• Learning• Motivation

16

SOCIOLOGICAL PERSPECTIVE

• Focus on group behaviour

• Conflict and counselling

• Communication

17

POLITICAL PERSPECTIVE

• Empowerment and authority are part of political discipline

• Distribution of power

• Direction of attempts to influence:– Upward– Downward– Laterally

18

ECONOMICS PERSPECTIVE

• Economics perspective helps managers to make decision

• Techniques on problem solving

• Decision making:– Individual– Group

19

ECOLOGICAL PERSPECTIVE

• Organization as a sub-system of society

• Environmental factors:– Suppliers– Distributors– Customers– Competitors

20

CHAPTER 4INDIVIDUAL BEHAVIOUR

IN ORGANIZATION

21

ATTITUDES• Reflects an individual’s background and

experiences

• Components of attitudes:– Affective component– Cognitive component– Behavioural component

22

WORK ATTITUDES• Two key work of attitudes:– Job satisfaction– Organizational commitment

• Job satisfaction:– Sources of job satisfaction– Relation to job behaviour

• Organizational commitment:– Sources of commitment– Relation to job behaviour

23

PERCEPTION• The process by which people select, organize,

interpret and respond to information form the world around them

• Basic element in the perceptual process:– Environmental stimuli– Observation– Perceptual selection– Perceptual organization– Interpretation– Response

24

PERCEPTUAL PROCESS• The perceptual process is a sequence of steps

that begins with the environment and leads to our perception of a stimulus and an action in response to the stimulus.

• The process is continual but we do not spend time thinking about the actual process that occurs when we perceive many stimuli that surround us at any moment

25

ENVIRONMENTAL STIMULI• Everything in our environment that has the

potential to be perceived

• Includes anything that can be seen, touched, tasted, smelled, heard, movements of the arms and legs or change in position of the body in relation to objects in the environment

• Objects and people in the immediate environment

26

OBSERVATION• Taste

• Smell

• Hearing

• Sight

• Touch

27

PERCEPTUAL SELECTION• Depends on several factors:– External factors:• Size• Intensity• Contrast• Motion• Repetition• Novelty and familiarity

– Internal factors:• Personality• Learning• Motivation

28

PERCEPTUAL ORGANIZATION

• Perceptual organization– Continuity– Closure– Proximity– Similarity

29

INTERPRETATION

• Perceptual errors– Perceptual defense– Stereotyping– Halo effect– Projection– Expectancy effects

• Attributions– Internal versus external causes– Causes for success and failure

30

RESPONSE

• Convert– Attitudes– Motivations– Feelings

• Overt– Behaviour

31

COGNITIVE DISSONANCE• Being used to describe the feeling of

discomfort that results from holding two conflicting beliefs

• Happens when an individual’s behaviour conflicts with beliefs that are integral to his or her self-identity

• How to reduce?– Focus– Reduce– Change

32

PERSONALITY TRAITS/ TYPES

• Heredity

• Experience

• Environment

• Situation

33

PERSONALITY TRAITS THAT INFLUENCE ORGANIZATIONAL BEHAVIOUR

• Locus of control

• Goal orientation

• Authoritarianism

• Machiavellianism

• Self-esteem

34

CHAPTER 5GROUP BEHAVIOUR IN ORGANIZATION

35

WHAT IS A GROUP?

• Members who share goals, communicate with one another over a period of time

• Group classification:– Formal group– Informal group

36

FORMAL AND INFORMAL GROUPS• Formal groups– Functional group– Task group:• Permanent task group• Temporary task group

• Informal groups– Interest group– Friendship group

37

WHY PEOPLE JOIN GROUPS?

• Generating ideas

• Networking

• Task completion– Accuracy– Speed– Creativity– Cost

38

GROUP NORMS AND DYNAMICS

• Behavioural norms– Rules of behavioural that are shared by members– Main function is to regulate and standardize the

behaviours viewed as important to members

• Performance norms– Exists when three criteria have been met:• Standard of appropriate behaviour• Members must agree on the standard• Members must aware that group support the standard

39

ROLE AND ROLE EXPECTATIONS• Role– Cluster of tasks and behaviours that a person

should perform• Role expectation – What are you expected to do depending on what

role you obtain• Example– If you are a police officer, then as your role as a

police officer you would expected to protect the country

40

GROUP MEMBER ROLES• Task-oriented role– Involves facilitating and coordinating work-related

decision making– Initiating, seeking information, giving information,

coordinating and evaluating

• Relation-oriented role– Involves building team-centered feelings and social

interactions– Encouraging, harmonizing, encouraging,

expressing,following

41

GROUP MEMBER ROLES• Self-oriented role– Involves the person’s self-centered behaviours

that are at the expense of the team or group– Blocking progress, seeking recognition,

dominating, avoiding

42

INFORMAL ORGANIZATION AND ITS IMPACT

• Informal organization is defined by the patterns, behaviours and interactions that stem from personal rather than official relationship

• Emphasis is on people and their relationships

• Workers may create an informal group to go bowling, form a union, discuss work challenges

43

EFFECT OF DIVERSITY ON GROUP PERFORMANCE

• Poses a threat to the organization’s effective functioning

• Expressed discomfort with the dominant group’s values

• Members of the group want to become like the dominant

• Positive multiculturalism

44

CHAPTER 6ORGANIZATIONAL STRUCTURE AND

ITS IMPACT ON OB

45

WHAT IS ORGANIZATION?

• Organizations are formed so that people who share a common set of values or interest can work together towards achieving common objective

• Elements of organization:– People– Objectives– Structure

46

WHAT IS ORGANIZATION?• Amitai Etzioni – Organization is a social unit or human grouping,

structured for the purpose of attaining specific goals

• Stoner– Organization is a pattern of relationships through

which people under direction of managers pursue their common goals

47

WHAT IS ORGANIZATION?• Vision

• Mission

• Strategy

• Planning– Short term– Long term

48

ORGANIZATIONAL STRUCTURE

• Distribution and segregation of work

• Organizational chart

• Key factors in organizational structure– Environmental factors– Strategic factors– Technological factors– Integrative framework

49

ORGANIZATIONAL STRUCTURE

• Environmental factors– Suppliers– Distributors– Competitors– Customers

• Strategic factors– Low cost– Differentiation– Focused

50

ORGANIZATIONAL STRUCTURE• Technological factors– Technology– Task interdependence• Pooled interdependence• Sequential interdependence• Reciprocal interdependence

• Integrative framework

51

MECHANISTIC STRUCTURE

• Individuals and functions will behave in predictable ways

• Characteristic of mechanistic structure– Formal rules and regulations– Centralization of decision making– Defined job responsibilities– Rigid hierarchy of authority

52

IMPACT OF MECHANISTIC STRUCTURE ON ORGANIZATIONAL BEHAVIOUR

• Tightly control the behaviour of employees

• Employees follow extensive impersonal rules and procedures in making decisions

• Each employee’s job involves specified area of expertise

• Employees are appointed and not elected

53

ORGANIC STRUCTURE

• Characteristic of organic structure– Low to moderate use of formal rules and

regulations– Decentralized and shared decision making– Broadly defined job responsibilities– Flexible authority structure with fewer levels in

the hierarchy– Job specialization is low

54

IMPACT OF ORGANIC STRUCTURE ON ORGANIZATIONAL BEHAVIOUR

• Emphasizes employee competence rather than employee’s formal position in the hierarchy

• Flexible hierarchy and empowers employees to make decision

55

NEW FORMS OF ORGANIZATION

• Functional design– Involves creation of positions, teams and

departments on the basis of specialized activities• Place design– Involves establishing an organization’s primary

units geographically• Product design– Involves the establishment of self-contained units,

each capable of developing, producing, marketing and distributing its own goods or services

56

NEW FORMS OF ORGANIZATION• Multidivisional design– Tasks are organized by division on the basis of

product/geographic markets• Multinational design– Produce and sell products/services in two or more

countries• Network design– Focuses on sharing authority, responsibility and

resources • Virtual design– Coordinate and link people from many different

locations

57

CHAPTER 7UNDERSTANDING WORK TEAMS

58

STAGES OF TEAM DEVELOPMENT• Forming stage

• Storming stage

• Norming stage

• Performing stage

• Adjourning stage

59

FORMING STAGE• Focus on:– Defining or understanding goals– Developing procedures

• Involves getting acquainted and understanding leadership and other member roles

• Deal with members’ feelings

60

STORMING STAGE• Manage conflict among members

• This stage may be shortened or can be avoided if members use a team-building process from the beginning

• Involves development of decision-making, interpersonal and technical capabilities

61

NORMING STAGE• Sharing of information, acceptance of

different options

• Team members set rules by which the team will operate

• Developing of cooperation and sense of shared responsibility

62

PERFORMING STAGE• Team members show how effectively and

efficiently they can achieve results together

• The roles of individual members are accepted and understood

• At this stage, teams may differ:– Continue to learn and develop from their

experiences– May perform only the level needed for survival

63

ADJOURNING STAGE• Termination of work behaviours and

disengagement from social behaviours

• Normally happens when team has achieved their goals

• A problem-solving or a cross-functional team will investigate and report on specific issue within 6 months

64

DIFFERENCE BETWEEN GROUPS AND TEAMS

• A group is two or more individuals who come into personal and meaningful contact on a continuing basis

• Example: departments, divisions and business units

• Teams are much smaller than organizational groups

65

TYPES OF TEAMS• Functional teams

• Problem-solving teams

• Cross-functional teams

• Self-managed teams

• Virtual teams

66

FUNCTIONAL TEAMS• Include individuals who work together daily

on similar tasks

• Exist within functional departments:– Marketing– Production– Finance– Human resource

67

PROBLEM-SOLVING TEAMS• Focus on specific issues in their areas of

responsibility, develop potential solutions and empowered to take action within defined limits

• Members are employees from a specific department who meet at least once or twice a week for an hour or two

68

CROSS-FUNCTIONAL TEAMS• Bring together people from various work areas

to identify and solve mutual problems

• Effective in situations that require innovation, speed and focus on responding to customer needs

• Members from several specialties or functions and deal with problems

69

SELF-MANAGED TEAMS

• Consist of employees who must work together effectively daily to manufacture an entire product or service to customers

• The teams are empowered (potency, meaningfulness, autonomy and impact)

70

VIRTUAL TEAMS• A group of individuals who collaborate

through various information technologies on one or more projects while being at two or more locations

• Work primarily across distance, time and organizational boundaries

71

BUILDING HIGH-PERFORMANCE TEAMS

• Clear goals• Clear communication• Clear role• Members’ behaviour• Proper decision-making procedure• Involvement by all members• Rules and regulations of the team• Know the complete process of a team

72

WHY TEAMS FAIL?

• Conflict exist

• Lack of resources

• Different personality, experience and value

• Unsuitable goals

73

CHAPTER 8LEADERSHIP AS INFLUENCING THE

BEHAVIOUR OF OTHERS

74

MANAGERS AND LEADERS• Managers:– Direct the work of others and is responsible for

the results– Effective managers bring a degree of order and

consistency to the work for their employees• Leaders:– Exhibits the attributes of leadership (ideas, vision,

values, influencing others and making decisions)– Do no perform management functions (planning,

organizing, leading and controling)

75

TYPES OF LEADERS• Transactional leaders– Involves motivating and directing followers

through contingent reward-based practices– Three components to achieve performance goals• Contingent rewards• Active management by exception• Passive management by exception

• Charismatic leaders– Emphasizes shared vision and values– Promotes shared identity– Exhibits desired behaviours– Reflects strength

76

TYPES OF LEADERS• Transformational leaders– Anticipating future trends – Inspiring followers to understand and embrace a

new vision of possibilities – Developing others to be leaders or better leaders– Building organization or group into a community

of challenged and rewarded learners

77

LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR

• Hersey and Blanchard’s Situational Model– Based on the amount of relationship and task

behaviour that a leader provides to subordinates in a situation

– The amount of relationship and task behaviour is based on the readiness of the followers to perform needed tasks

78

HERSEY AND BLANCHARD’S SITUATIONAL MODEL

Participating Style Selling Style

Delegating Style Telling Style

High

Low High

Low

Task Behaviour

Rela

tions

hip

Beha

viou

r

79

LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR

• Vroom-Jago Leadership Model– Developed by Victor Vroom, in collaboration with

Phillip Yetton and later Arthur Jago– Focuses on the leadership role in decision-making

situations– Prescribers a leader’s choices among five

leadership styles based on seven situational factors, recognizing the time requirements and costs associated with each style

80

VROOM-JAGO LEADERSHIP MODEL

81

LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR

• Theory X and Theory Y– Developed by Douglas McGregor in 1957– Theory X is a composite of propositions and

underlying beliefs that take a command and control view of management based on a negative view of human nature

– Theory Y is a composite of propositions and beliefs that take a leadership and empowering view of management based on a positive view of human nature

82

LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR

• Managerial Grid – Developed by Robert Blake and Jane Mouton– Identifies five leadership styles that combine

different degrees of concern for production and concern for people• Impoverished style• Country club• Produce or perish• Middle of the road• Team

83

BLAKE MOUTON MANAGERIAL GRID

LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR

LEADERSHIP STYLES AND THEIR IMPACT ON ORGANIZATIONAL BEHAVIOUR

86

BEHAVIOURAL APPROACH TO LEADERSHIP AND AUTHORITY

• Visionary

• Trustworthy

• Considerate

• Confident

• Thoughtful

• Charismatic and ethical

87

CHANGING LEADERSHIP REQUIREMENTS• Assess current leadership talent• Create leadership strategy• Review and align talent management system• Develop comprehensive approach to

leadership development• Offer specific courses in leadership • Provide individual coaching • Assist senior leadership in combining

organizational change and leadership development