Organisational Behaviour Final Edition

ORGANISATIONAL BEHAVIOUR
1 -ORGANISATIONAL BEHAVIOUR
S.M.NUWAN KRISHANTHA
TABLE OF CONTENT S
Introduction................................................................... ......................3 Organisational structures..................................................................... 3 Different leadership styles..................................................................10 Organisational theories.......................................................................1 4 Different management styles in some organisations .....................10 Impact of changing the leader .......................................................21 Application of different motivational theories...................................24 Usefulness of motivation for managers ........................................28 Groups and group behaviour ........................................................31 Effective team work .....................................................................36 Impact of technology on team functioning........................................37 Conclusion..................................................................... ....................39
Reference....................................................................... ....................40
INTRODUCTION
Every organisation made up of more than one person will need some form of organisational structure. An organisational chart shows the way in which the chain of command works within the organisation. The way in which a company is organised can be illustrated for a packaging company. The company will be owned by shareholders that choose directors to look after their interests. The directors then appoint managers to run the business on a day-to-day basis. In the company structure outlined below: The Managing Director has the major responsibility for running of the company, including setting company targets and keeping an eye on all departments. The Distribution Manager is responsible for controlling the movement of goods in and out of the warehouse, supervising drivers and overseeing the transport of goods to and from the firm. The Production Manager is responsible for keeping a continuous supply of work flowing to all production staff and also for organising manpower to meet the customers' orders. The Sales Manager is responsible for making contact with customers and obtaining orders from those contacts. The Company Accountant controls all the financial dealings of the company and is responsible for producing management accounts and financial reports. Structures Other organisations will have different structures. For example most organisations will have a 3 -ORGANISATIONAL BEHAVIOUR
marketing department responsible for market research and marketing planning. A customer services department will look after customer requirements. A human resources department will be responsible for recruitment and selection of new employees, employee motivation and a range of other people focused activities. In addition there will be a number of cross-functional areas such as administration and Information Technology departments that service the functional areas of the company. These departments will provide back up support and training. Organisations are structured in different ways: 1. by function as described above 2. by regional area - a geographical structure e.g. with a marketing manager North, marketing manager South etc. 3. by product e.g. marketing manager crisps, marketing manager drinks, etc. 4. into work teams, etc. Reporting in organisations often takes place down the line. An employee might be accountable to a supervisor, who is accountable to a junior manager, who is then accountable to a senior manager communication and instructions can then be passed down the line.
FORMAL AND INFORMAL STRUCTURES
Organisations have a formal structure which is the way that the organisation is organised by those with responsibility for managing the organisation. They create the formal structures that enable the organisation to meet its stated objectives. Often these formal structures will be set out on paper in the form of organisational charts. However, in the course of time an informal structure develops in most organisations which is based on the reality of day-to-day interactions between the members of the organisation. This informal structure may be different from that which is set out on paper. Informal structures develop because: people find new ways of doing things which they find easier and save them time patterns of interaction are shaped by friendship groups and other relationships people forget what the formal structures are it is easier to work with informal structures. Sometimes the informal structure may conflict with the formal one. Where this is the case the organisation may become less efficient at meeting its stated objectives. However, in some cases the informal structure may prove to be more efficient at meeting organisational objectives because the formal structure was badly set out. Managers need to learn to work with both formal and informal structures. A flexible manager will realise that elements of the informal structure can be formalised i.e. by adapting the formal structure to incorporate improvements which result from the day-to-day working of the informal structure. Organisation and management structures Managers are people who steer an organisation towards meeting its' objectives. Management has been described as: 'the process of planning, organising, leading and controlling the efforts of organisation 4 -ORGANISATIONAL BEHAVIOUR
members and of using all organisational resource to achieve stated organisational goals.' A manager's job is to maintain control over the way an organisation does things, and at the same time to lead, inspire and direct the people under them. In a company the shareholders will elect a board of directors to represent their interests. A Managing Director will be appointed who has overall responsibility for running the company. The managing director with help from other directors will appoint senior managers to run the company. The type of managers appointed will depend on the structure of the company. Possible structures will include: regional managers when an organisation operates on a regional basis functional managers when an organisation is split up into various functions e.g. human resources, finance, sales etc. departmental managers when an organisation is split up into departments e.g. a school, or a retailing outlet general managers - for example, an office or factory may have a general manager who functional managers report to. Each manager in an organisation is given an area of responsibility. Typically they will have targets and objectives to meet which fit into the organisations overall targets and objectives. Managers are typically responsible for: establishing, prioritising, and making sure that objectives are met establishing a framework for communications, and patterns of work within their area of responsibility e.g. department communicating targets, goals and results to people that work for them motivating employees setting out the administrative arrangements for their area of responsibility creating, monitoring, and making sure that budgets are achieved. A key managerial responsibility is for the management of resources. The sorts of resources that a manager will be responsible for will include: people - directing the activities and looking after people financial - using financial resources in the best possible way for the organisation in line with profit and sales targets. materials - making sure that materials are used in the most productive way with the minimum waste machinery and equipment - using the most appropriate machinery and equipment, and making sure that it is maintained, replaced and updated where necessary time - ensuring efficient use of time buildings - making sure that premises are safe and are being used in the best possible way information - making sure that the organisation uses the most effective information processing technologies. Shareholders are the owners of a company. They hold shares entitling them to a share in the profits 5 -ORGANISATIONAL BEHAVIOUR
and the right to be represented by directors at board meetings. Directors are the elected representatives of shareholders. Executive directors are responsible for ongoing decision making in the business. Non-executive directors provide regular advice to the company but are not directly involved in the day-to-day supervision of the company. BIC is a very large manufacturer of razors, lighter, and pens. Recently it has simplified its operations to run from large super factories that serve large geographical markets. Product distribution is then organised by continent, with country managers reporting to their continental manager. The organisation thus has a matrix structure based on two main lines of communication 1) by product category 2) by geographical region. The matrix structure allows combining the benefits of a strong product expertise, together with strong operational structures per geographic area.
Corporate and organisational culture It is widely recognised that different organisations have distinctive cultures. A commonly used definition of organisational culture is 'the way we see and do things around here'. Through tradition, history and structure, organisations build up their own culture. Culture therefore gives an organisation a sense of identity - 'who we are', 'what we stand for', 'what we do'. It determines, through the organisation's legends, rituals, beliefs, meanings, values, norms and language, the way in which 'things are done around here'. An organisations' culture encapsulates what it has been good at and what has worked in the past. These values can often be accepted without question by long-serving members of an organisation. One of the first things a new employee learns is some of the organisation's legends - perhaps how the founder worked long hours and despised formal educational and training qualifications. Legends can stay with an organisation and become part of the established way of doing things. Perhaps the founder's views about the importance of education and training will stay current; in the course of time there may be a 'culture shift' as new managers move into the organisation and change the old ways. However, a number of legends continue to be important determinants of 'the way we do things around here'. Culture Over time the organisation will develop 'norms' i.e. established (normal) expected behaviour patterns within the organisation. A norm is an established behaviour pattern that is part of a culture. A number of organisational culture types have been identified by researchers. A power culture is one based on the dominance of one or a small number of individuals within an organisation. They make the key decisions for the organisation. This sort of power culture may exist in a small business or part of a larger business. A role culture exists in large hierarchical organisations in which individuals have clear roles 6 -ORGANISATIONAL BEHAVIOUR
(jobs) to perform which are closely specified. Individuals tend to work closely to their job description, and tend to follow the rules rather than to operate in a creative way. In contrast task cultures exist when teams are formed to complete particular tasks. A distinct team culture develops, and because the team is empowered to make decisions, task cultures can be creative. A person culture is the most individualistic form of culture and exists when individuals are fully allowed to express themselves and make decisions for themselves. A person culture can only exist in a very loose form of organisation e.g. an overseas sales person working on their own for a company, allowed to make their own decisions. Culture change involves moving an organisation on from one form of culture to another, usually through a culture change programme.
Culture, communications and engagement of Vodafone The Vodafone Way aligns all Vodafone employees to a common set of values and behaviours. Aiming to be an admired, innovative and customer-focused company operating with speed, simplicity and trust. Maintained high performance benchmark for employee engagement. During the 2010 financial year VODAFONE launched a change programme called The Vodafone Way. The Vodafone Way is about being an admired company in the eyes of customers, shareholders and employees by operating with speed, simplicity and trust. The programme has defined a consistent set of values and behaviours for all Vodafone employees. Many of senior leaders have been through a workshop to embed The Vodafone Way behaviours and these workshops will be extended to all senior leaders during the 2011 financial year. The performance and potential of employees are reviewed against the standards of The Vodafone Way. The Vodafone Way is very much about increasing customer focus. For one day each month senior leaders in every operating country and the Group spend time with customers and customer-facing staff, such as in retail stores or contact centres. Insights from these customer days are used to simplify customer-facing processes and improve customer experiences. Vodafone achieved an overall employee engagement score of 76% which means that they have maintained the high performance benchmark for engagement for the second year in a row. The high performance benchmark is an external measure of best in class organisations that achieve strong financial performance alongside high levels of employee engagement. This achievement demonstrates that people continue to feel proud to work for Vodafone and are committed and willing to give their best. Regular, consistent and open communication is fundamental to ensuring we maintain high levels of employee engagement.people have access to information about Vodafone business through a global Intranet with local translations and content where appropriate. The Chief Executive communicates directly with all of Vodafone employees via regular email and video updates particularly focusing on business performance, strategy and The Vodafone Way. This is reinforced with local CEO 7 -ORGANISATIONAL BEHAVIOUR
communications in all our markets. Relevant performance and change issues are also discussed with employee representatives from operating companies within the European Union, who meet annually with members of the Executive Committee in the Vodafone European Employee Consultative Council. Organisational structure of Vodafone Vodafone continued to optimise the shape and size of our organisation during the 2010 financial year. The majority of operating companies reduced the number of layers from the top to the bottom of their organisation and increased management spans of control, resulting in flatter structures with wider management accountability. Several of Vodafones markets made significant organisation changes in the year: Vodafone UK simplified its organisation structure, primarily in back office functions, resulting in 490 redundancies. In the 2011 financial year the UK will be recruiting for 170 new customer-facing roles and appointing 50 graduates into their graduate programme; 233 redundancies were made across central commercial functions. The majority of these were from the reshaping of the internet services function which included the closure of Wayfinder, Vodafones location based services organisation in Sweden; the formation of the joint venture, Vodafone Hutchison Australia, in June 2009 led to 340 redundancies from Vodafone Australia; Vodafone Ghana continued its change programme reducing employee numbers by 1,331 and recruiting more than 350 Ghanaians into new roles in the business; Vodafone Turkey reviewed its organisation structure to streamline processes and reduce duplication. This resulted in over 300 redundancies. Turkey has reinvested in hiring similar numbers of new talent into key roles and building a graduate recruitment programme; in December 2009 the legal merger of Arcor and Vodafone Germany was finalised and the two organisations have been successfully integrated following the creation of a single executive committee in March 2009. The above organisation changes clearly had significant implications for the employees in these markets. Changes were communicated clearly and transparently. Vodafone offered a range of support to help affected employees find new jobs, for example outplacement services, insights into how to setup their own business and training on interview and resume writing skills. Vodafone aims to treat all employees fairly, ensuring healthy employee relations through open communications and employee consultation. Vodafone reward employees based on their performance, potential and contribution to the success of the business and we aim to provide competitive and fair rates of pay and benefits in every country where we operate. Global short- and long-term incentive plans are offered to leadership and management levels and paid according to individual and company performance. In response to global economic conditions a pay freeze policy was introduced to the senior leadership team in the 2010 financial year. Most operating companies did however award bonuses through global or local plans, with greater emphasis on rewarding strong business and individual performance. In January 2010 we confirmed the closure of Vodafone, UK defined benefit pension scheme for future accruals on 31 March 2010. All UK based employees were invited to join a new, enhanced defined contribution pension scheme, which we believe is now highly competitive in the local market 8 -ORGANISATIONAL BEHAVIOUR
as well as more sustainable longer-term.
Vodafone management structure -source;http://www.vodafone.com/content/index/investors/management/organisation_structure.html The Factors Which Influence Individual Behaviour At Work The major 5 factors that influence individual differences in behavioural patterns are demographic factors, abilities and skills, perception, attitudes and personality. Let us discuss them and they are as follows: Demographic Factors: The demographic factors are socio economic background, education, nationality, race, age, sex, etc. Organisations prefer persons that belong to good socioeconomic background, well educated, young etc. as they are believed to be performing better than the others. The young and dynamic professionals that have good academic background and effective communication skills are always in great demand. The study of demographic factors is significant as it helps managers to pick the suitable candidate for a particular job. Abilities and Skills: The physical capacity of an individual to do something can be termed as ability. Skill can be defined as the ability to act in a way that allows a person to perform well. The individual behaviour and performance is highly influenced by ability and skills. A person can perform well in the organisation if his abilities and skills are matched with the job requirement. The managers plays vital role in matching the abilities and skills of the employees with the particular job requirement. Perception: The cognitive process meant for interpreting the environmental stimuli in a meaningful way is referred to as perception. Every individual on the basis of his/he reference can organize and interpret environmental stimuli. There are many factors that influence the perception of an individual. The study of perception plays important role for the managers. It is important for mangers to create the favourable work environment so that employees perceive them in most favourable way. The employees are likely to perform better if they are going to perceive it in a positive way. Attitude: According to psychologists, attitude can be defined as a tendency to respond favourably or unfavourably to certain objects, persons or situations. The factors such as family, society, culture, peers and organisational factors influence the formation of attitude. 9 -ORGANISATIONAL BEHAVIOUR
The managers in an organisation need to study the variables related to job as to create the work environment in a favourable way that employees are tempted to form a positive attitude towards their respective jobs. The employees can perform better in the organisation if they form a positive attitude. Personality: Personality can be defined as the study of the characteristics and distinctive traits of an individual, the inter-relations between them and the way in which a person responds and adjusts to other people and situations. The several factors that influence the personality of an individual are heredity, family, society, culture and situation. It implies to the fact that individuals differ in their manner while responding to the organizational environment. Personality can be regarded as the most complex aspect of human beings that influences their behaviour in big way. It can be concluded that the study of personality traits offers an opportunity to understand the individuals. It helps them properly in directing their effort and motivating them for the accomplishment of the organisational goal. It refers to the fact that different environmental factors may generate different responses. The study of these responses is very important for the organisation. Every organisation demands a particular type of behaviour from their employees and such behaviours can be discovered through observation, learning, exposure, training, etc.
Different leadership styles
Research and investigation into different management leadership styles has been fragmented and inconsistent. The key to good leadership development is a good knowledge base. Thats why we bring you an in-depth look at 3 key leadership styles that will highlight the benefits and shortfalls commonly associated with each. These styles are autocratic, democratic and bureaucratic. Authoritarian or Autocratic Autocratic leadership is a classical leadership style with the following characteristics: Manager seeks to make as many decisions as possible Manager seeks to have the most authority and control in decision making Manager seeks to retain responsibility rather than utilise complete delegation Consultation with other colleagues in minimal and decision making becomes a solitary process Managers are less concerned with investing their own leadership development, and prefer to simply work on the task at hand. The autocratic leadership style is seen as an old fashioned technique. It has existed as long as managers have commanded subordinates, and is still employed by many leaders across the globe. The reason autocratic leadership survives, even if it is outdated, is because it is intuitive, carries instant benefits, and comes natural to many leaders. Many leaders who start pursuing leadership development are often trying to improve upon their organisations autocratic leadership style. Following on from the merits and drawbacks listed below, the autocratic leadership style is useful in the following work situations: Short term projects with a highly technical, complex or risky element. Work environments where spans of control are wide and hence the manager has little time to devote to each employee. Industries where employees need to perform low-skilled, monotonous and repetitive tasks and 10 -ORGANISATIONAL BEHAVIOUR
generally have low levels of motivation. Projects where the work performed needs to be completed to exact specifications and/or with a tight deadline. Companies that suffer from a high employee turnover, i.e. where time and resources devoted to leadership development would be largely wasted. Although one could argue that a lack of leadership development in the first place caused the high turnover. Benefits of the Autocratic Leadership Despite having many critics, the autocratic leadership styles offer many advantages to managers who use them. These include: Reduced stress due to increased control. Where the manager ultimately has significant legal and personal responsibility for a project, it will comfort them and reduce their stress levels to know that they have control over their fate. A more productive group while the leader is watching. The oversight that an autocratic manager exerts over a team improves their working speed and makes them less likely to slack. This is ideal for poorly motivated employees who have little concern or interest in the quality or speed of work performed. Improved logistics of operations. Having one leader with heavy involvement in many areas makes it more likely that problems are spotted in advance and deadlines met. This makes autocratic leadership ideal for one-off projects with tight deadlines, or complicated work environments where efficient cooperation is key to success. Faster decision making. When only one person makes decisions with minimal consultation, decisions are made quicker, which will allow the management team to respond to changes in the business environment more quickly. Disadvantages of the Autocratic Leadership Short-termistic approach to management. While leading autocratically will enable faster decisions to be made in the short term, by robbing subordinates of the opportunity to gain experience and start on their own leadership development, and learn from their mistakes, the manager is actually de-skilling their workforce which will lead to poorer decisions and productivity in the long run. Manager perceived as having poor leadership skills. While the autocratic style has merits when used in certain environments , autocratic leadership style is easy yet unpopular. Managers with poor leadership skills with often revert to this style by default. Increased workload for the manager. By taking on as much responsibility and involvement as possible, an autocratic leader naturally works at their full capacity, which can lead to long term stress and health problems and could damage working relationships with colleagues. This hyper-focus on work comes at the expense of good leadership development. People dislike being ordered around. They also dislike being shown very little trust and faith. As a result, the autocratic leadership style can result in a demotivated workforce. This results in the paradox that autocratic leadership styles are a good solution for demotivated workers, but in many cases, it is the leadership style alone that demotivates them in the first place. Generation Y employees 11 -ORGANISATIONAL BEHAVIOUR
particularly dislike this style. Teams become dependent upon their leader. After becoming conditioned to receive orders and act upon them perfectly, workers lose initiative and the confidence to make decisions on their own. This results in teams of workers who become useless at running operations if they loose contact with their leader. This is the result of a lack of time dedicated to leadership development on the employees part.
Participative Or Democratic Democratic Leadership is the leadership style that promotes the sharing of responsibility, the exercise of delegation and continual consultation. The style has the following characteristics: Manager seeks consultation on all major issues and decisions. Manager effectively delegate tasks to subordinates and give them full control and responsibility for those tasks. Manager welcomes feedback on the results of initiatives and the work environment. Manager encourages others to become leaders and be involved in leadership development. Democratic leadership is applied to an extent in the manufacturing industry, to allow employees to give their ideas on how processes can become leaner and more efficient. While Fordism is still applied in some factories across the country, truth is that production managers are now really starting to harness the motivational bonuses associated with not treating employees like robots any more. Democratic leadership is effective in professional organisations where the emphasis is clearly on training, professional & leadership development and quality of work performed. Democratic procedures are simply just one cog in the effective leadership mechanisms firms like The Big Four have created over the years. Non profit organisations also tremendously benefit from drawing upon the creative energies of all their staff to bring about cost cutting techniques or fund raising ideas. Creative industries such as advertising and television enjoy a lot of benefits from the free flow of ideas that democratic leadership brings. Benefits Of The Democratic Leadership Style Positive work environment. A culture where junior employees are given fair amount of responsibility and are allowed to challenge themselves is one where employees are more enthused to work and enjoy what they do. Successful initiatives. The process of consultation and feedback naturally results in better decision making and more effective operations. Companies run under democratic leadership tend to run into fewer grave mistake and catastrophes. To put it simply people tell a democratic leader when something is going badly wrong, while employees are encouraged to simply hide it from an autocrat. Creative thinking. The free flow of ideas and positive work environment is the perfect catalyst for creative thinking. To further their leadership education, people often check the online MBA rankings to see whether MBA online is a match for them. The benefits of this arent just relevant for creative industries, because creative thinking is required to solve problems in every single organisation, whatever its nature. Reduction of friction and office politics. By allowing subordinates to use their ideas and even more importantly gain credit for them, you are neatly reducing the amount of tension employees generate with their manager. When autocratic leaders refuse to listen to their workers, or blatantly ignore their ideas, they are effectively asking for people to talk behind their back and attempt to undermine or supersede them. Reduced employee turnover. When employees feel empowered through leadership development, a company will experience lower rates of employee 12 -ORGANISATIONAL BEHAVIOUR
turnover which has numerous benefits. A company that invests in leadership development for its employees, is investing in their future, and this is appreciated by a large majority of the workforce. Disadvantages Of The Democratic Leadership Style Lengthy and boring decision making. Seeking consultation over every decision can lead to a process so slow that it can cause opportunities to be missed, or hazards avoided too late. Danger of pseudo participation. Many managers simply pretend to follow a democratic leadership style simply to score a point in the eyes of their subordinates. Employees are quick to realise when their ideas arent actually valued, and that the manager is merely following procedure in asking for suggestions, but never actually implementing them. In other words, theyre simply exerting autocratic leadership in disguise.
Bureaucratic Leadership The bureaucratic leadership style is concerned with ensuring workers follow rules and procedures accurately and consistently. Bureaucratic leadership normally has the following characteristics: 1. Leaders expect a employees to display a formal, business-like attitude in the workplace and between each other. 2. Managers gain instant authority with their position, because rules demand that employees pay them certain privileges, such as being able to sign off on all major decisions. As a result, leaders suffer from position power. Leadership development becomes pointless, because only titles and roles provide any real control or power. 3. Employees are rewarded for their ability to adhere to the rules and follow procedure perfectly. 4. Bureaucratic systems usually gradually develop over a long period of time, and hence are more commonly found in large & old businesses. Bureaucratic leadership is found in extremely large corporations such as General Electric, Daimler and General Motors. However these cultures have evolved due to the age and size of these companies, and are generally blamed for the slow growth and recent failures at these companies. 1. Governmental bodies often have bureaucratic systems, and while these are often despised by the public, they ensure accountability to the tax payer and fair treatment for all. Excessive form-filling also serves the purpose of passing effort from the government authority (with a tight budget) onto the individual, helping to save costs. 2. Dangerous workplaces such as mines, oil rigs, construction sites and film sets all benefit from the tight control over health and safety that rules offer. Benefits Of The Bureaucratic Leadership Style Increased safety. In dangerous workplaces where procedures save lives, a bureaucratic management style can help enforce health and safety rules. Quality work. Some tasks, such as completing professional work or medical examinations, need to be done in a meticulous fashion to be done correctly. Laziness can result in poor work, and hence one solution is to enforce the rules via the bureaucratic leadership style. Ultimate control. An environment whereby employees are intrinsically motivated to follow rules in order to be promoted and succeed results in the tightest control management can ever assume over a company. This control can be used to cut costs or improve productivity.
Disadvantages Of The Bureaucratic Leadership Style Bureaucratic companies tend to remove as much potential for human error out of the picture as possible. Unfortunately this also has the effect of removing all the enjoyment and reward that comes from deciding how to do a task and accomplishing it. Lack of self-fulfilment. The bureaucratic way of working hampers employees efforts to become successful and independent, because the system becomes too containing. Parkinsons Law. Cyril Northcote Parkinson made the scientific observation that the number of staff in bureaucracies increased by an average of 5%-7% per year irrespective of any variation in the amount of work (if any) to be done.". He explains this growth by two forces: An official wants to multiply subordinates, not rivals Officials make work for each other. Parkinsons findings suggest that bureaucratic leadership encourages inefficiency and waste of internal resources in the long run. Position power obsession. After working in an environment that reinforces the idea that authority is created by rules which in turn support senior positions. Employees become attached to the idea that simply being in a job position creates authority. This can lead to intense office politics, arrogant leaders and little incentive to perform well once an employee has landed a top job. Lack of creativity. It goes without saying that a rule-based culture hinders creativity and encourages workers to simply perform puppet-like work rather than think independently. This may result in a lack of growth in the business due to employees simply not thinking out of the box or looking for new areas to develop. Poor communication. A common feature of a bureaucratic system is a complicated network of communication lines. Managers who dont want to be bothered by junior staff simply create procedures that allow them to avoid communicating with those below them. Go through the formal process, Talk to my secretary and My schedule is full are common rule-based excuses for blocked contact. Barriers to communication can hinder the success of any company. For example, the board may be charging ahead with a doomed product simply because their shop floor workers cannot pass on the message that customers are giving very negative feedback.
Organisational theories
There are several theories which explain the organization and its structure. Classical organization theory includes the scientific management approach, Weber's bureaucratic approach, and administrative theory. The scientific management approach based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. The approach to increased productivity is through mutual trust between management and workers. Taylor (1947) proposed four principles of scientific management: science, not rule-of-thumb scientific selection of the worker management and labour cooperation rather than conflict scientific training of workers
Weber's bureaucratic approach considers the organization as a part of broader society. The organization is based on the principles of: structure specialization predictability and stability 14 -ORGANISATIONAL BEHAVIOUR
rationality democracy Administrative theory propounded by Henry Fayol and is based on several principles of management. In addition, management was considered as a set of planning, organizing, training, commanding and coordinating functions. Neoclassical theory emphasizes individual or group behaviour and human relations in determining productivity. The main features of the neoclassical approach are individual, work group and participatory management. Modern approach to organization Modern theories are based on the concept that the organization is an adaptive system which has to adjust to changes in its environment. Modern theories include the systems approach, the sociotechnical approach, and the contingency or situational approach. The systems approach considers the organization as a system composed of a set of inter-related - and thus mutually dependent - sub-systems. Thus the organization consists of components, linking processes and goals. The socio-technical approachconsiders the organization as composed of a social system, technical system and its environment. These interact among themselves and it is necessary to balance them appropriately for effective functioning of the organization. The contingency or situational approach recognizes that organizational systems are inter-related with their environment and that different environments require different organizational relationships for effective working of the organization. Since scientists constitute the core resource in a research organization, their growth is as important as the growth of the organization. A social organization is characterized by complexity, degrees of interdependence between sub-systems, openness, balance and multiplicity of purposes, functions and objectives. Why should goals be set?Goals are set to increase performance and provide control. How are goals set? Following management by objectives, the process of goal setting involves five steps The importance of goal settings Clarified what people have to do Identifies problems and facilitates solution Reduces ambiguity in work Establishes a relationship between work and organizational achievements Assists individuals to allocate time, efforts and personal resources Provides a sense of accomplishment and contentment Provide control over the people in the organization Measures performance
First, the overall objectives of the organization are set and then an action plan is evolved. The second 15 -ORGANISATIONAL BEHAVIOUR
step is to prepare members in the organization for successful implementation of the action plan. Individual goals are set in the third step. Periodic appraisal and feedback is the fourth step, to ensure smooth implementation of the action plan. Finally, an appraisal of performance by results takes place. The process of goal setting (management by objectives) 1.Setting overall organizational objectives and action plan identifying key result areas identifying measures of performance stating objectives agreement on objectives and goals
2. Develop the organization 3. Set individual objectives 4. Periodic appraisal and feedback 5. Appraisal by results concept of integration and coordination in the organization These are controlling mechanisms for smooth functioning of the organization. Organizational differentiation is the unbundling and re-arranging of the activities. Integration is re-grouping and relinking them. The need for integration arises in the face of environmental complexity, diversity and change. The need for integrationEnvironmental complexity, diversity and change Increase in structural dimensions SpecializationAcross various specialized units - each pursuing individual objectives - to ensure that organizational goals are being pursued Conflict resolutionBetter performance and productivity How is integration achieved? Obviously, the structure of the organization should facilitate proper coordination and integration of different specialized units. What could happen were the organizatio$nal structure not proper? Integration is achieved through vertical coordination along the hierarchy, decision making levels, and span of control . There are several methods to improve integration. These include rules and procedures and professional training. process in the organization, which involves the concept of power, decision making and communication. Power refers to the ability to get an individual or group to do something or to change in some way. Power could emanate from position, economic status, knowledge, performance, personality, physical or ideological traits. power is one of the strongest motives, and affects setting of objectives and availability of resources in an organization.
Power in the organization Power refers to the ability to get an individual or group to do something or to change in some way. Politics is a process to achieve power. Power is inter-related with authority and influence. Bernard (1938) defined authority in terms of 'legitimate power.' Power is considered as an essential element in any human organization so as to engender order and coordinate various activities. Power provides one of the strongest motivations (Galbraith, 1952). It also affects the setting of objectives and the distribution of resources in an organization. The source of power can be positional, economic, knowledge, performance, personality, physical or ideological (Hicks, 1975). Organization-based power refers to the power beyond the range of legitimate authority because of the position which a person has in the organization (Milgram, 1974). This power can be controlled and transferred by the organization. Four categories of organizational power can identified, according to source (French and Raven, 1959): Reward power This refers to the control over rewards desired by others. This is given by persons at a higher level or by decision-makers. Coercive power This is the power to give punishment. This too is given by persons at a higher level or by decision-makers. Expert power This is based on personal skills, knowledge, training, experience, etc. It cannot be transferred by the organization since it is person-specific. Charismatic power This derives from the sensitivity of the owner. This facilitates association with others. In research organizations, as in other organizations, power plays a significant role. It influences the organization's strategies, recruitment of competent scientists, behavioural control system and changes in the organizational structure. Communication in the organization Communication is a basic element in organizational structure and functioning. It is the key mechanism for achieving integration and coordination of the activities of specialized units at different levels in the organization. The communication process consists of seven steps (Shannon and Weaver, 1949): message, encoding, transmitting, receiving, decoding, understanding and feedback. Organizational communication can be horizontal, upward, and downward:
Horizontal (lateral) communication aims at linking related tasks, work units and divisions in the organization. The importance of horizontal communication increases with task specialization and diversity in organizational structure. The need for lateral or horizontal communication was first stressed by Fayol (1949), when he suggested a 'gang plank' between similar hierarchical positions. Downward communication provides information from higher levels to lower levels. Being superiorsubordinate communication, it follows the chain of command through the line of authority. Downward communication can be of four types (Katz and Kahn, 1966): - communication designed to provide job rationale to produce understanding of the task and its relation to other organizational tasks; - communication about organizational procedures and practices; - feedback to the subordinate about his or her performance; and - communication to foster inculcation of organizational goals. Upward communication serves as a control system for the organization.
Upward,downward and horizontal communication in one organisation In an agricultural research organization, a suitable blending of lateral, downward and upward communication is required to effectively coordinate and integrate activities of individual subsystems. The effectiveness of research results greatly depends upon proper communication links among scientists, between scientists and agricultural extension workers, and between extension workers and farmers. In an agricultural research organization, there are several specialized sub-systems which need to be integrated through horizontal communication. Downward communication facilitates transmission of research results to actual users. Upward communication enables flow of information from lowers level to the top level: farmers -->extension workers -->scientists -->research manager--> DG and policy-maker decision making in an organization Decision making is choosing among alternatives. It starts with goal setting in the organization, and entails searching for alternatives, analysing alternatives and choosing criteria. Decisions may pertain to broad policies or plans for the organization, programmes and projects to achieve goals, or operations of programmes and management systems. The process of decision making involves nine steps (Hicks and Gullet, 1975; Anderson 1988): (i) Setting organizational goals. (ii) Establishing performance criteria. (iii) Classifying and defining the problem. 19 -ORGANISATIONAL BEHAVIOUR
(iv) Developing criteria for a successful solution. (v) Generating alternatives. (vi) Comparing alternatives to criteria. (vii) Choosing an alternative. (viii) Implementing the decision. (ix) Monitoring the decision and getting feedback.
Different management styles in organisations Marks and Spencer Marks and Spencer is one of the best known high street retailers in the UK. It has over 450 stores and employs over 65,000 people. It also operates overseas. In the face of more intense competition in the UK retailing sector, Marks and Spencer has had to develop a new strategy. This created a period of change for the retailer, involving a refocusing on core areas of quality, value and service along with innovation and trust. Marks and Spencer developed a promotional campaign based on the slogan 'Your M&S' which helped customers to connect with the business. The process had three key features: developing products that customers want improving stores providing excellent customer service. In turn, this created a need for staff to be trained to cope with new challenges. 20 -ORGANISATIONAL BEHAVIOUR
Organisational structure The changes involved changing the organisational structure to make it flatter. This meant cutting out some layers of management and giving employees at the remaining levels more responsibility. Training The new structure led to a need for more training. Marks and Spencer develops staff from within the organisation. It also recruits managers from outside at three levels: trainee managers who have just passed A-levels university graduates experienced managers from other operations. Each manager requires a number of skills, such as team working, financial skills or leadership. Marks and Spencer uses a profiling system to identify skills gaps. It matches current skills against a matrix of skills required. Where these do not match, training can take place. At the end of every six months, an appraisal takes place to review performance and progress. In discussion with managers, employees identify where they have made improvements in their profile. They then agree on a plan for further development. This helps them to construct a realistic and structured career path. This process creates a cycle of improvement. Training and development All managers can develop their own training profile so that they can target their next role. This means that they can create their own career path. The types of training available include: On-the-job training carried out in the workplace Off-the-job training carried out elsewhere such as at a college. Training is focused on the needs of the organisation, development on the needs of the individual. Benefits Training helps to improve efficiency and also motivates employees to do well. By having well trained and motivated staff, Marks and Spencer has developed a competitive edge over its rivals. The business has recognised that although training has a cost attached to it, it is also an investment for the future.
Management Team Section Managers Trading Managers Personnel Managers Store Managers Night Management Team Employees are better able to manage their own training and development needs by using the cyclical process of appraisal. Through its competencies framework, Marks and Spencer is able to make a precise match between the requirements of a post and the skills of its staff. The success of Marks and Spencer proves that this is an effective process.
Vodafone
Vodafone is the world's leading mobile telecommunications group with operations in 27 countries across 5 continents, as well as 32 partner networks. As on 31 December 2009, Vodafone had 179 million proportionate customers worldwide. Vodafone Group PLC changes to its organisational structure including some new appointments which will be effective from 1 May. The overall objective of the new structure is to focus the business according to different market and customer requirements. There are three key principles to the new structure: * To drive operational benefits and cost reduction from local and regional scale in more mature markets * To drive profitable growth from the company's emerging market portfolio * To position the company to capture new revenue streams by extending its reach into converged and IP services As a result, the operations of the Group will be managed through three new business units: Europe The CEO of this unit will be Michael combus , currently President of Vodafone's business in Japan. It will contain all Vodafone's principal European markets including Germany, Italy, Spain and the UK. Given the high penetration levels and competitive nature of these markets the unit will focus on leveraging its unique regional scale and reducing costs. This unit will also include the global technology and marketing functions. Central Europe, Middle East, Asia Pacific and Affiliates The CEO of this unit will be Nick read , currently Chief Executive of OVS (Other Vodafone Subsidiaries), and will contain the Group's Emerging Markets and other Vodafone operations. It will have a particular focus on profitable growth in emerging markets. These are grouped into three clusters to maximise the benefits of regional focus. This new structure is an important step forward for the Group as it is aligned with Vodafone;s evolving strategy and addresses the different priorities across the Group. It will enable to continue to outperform our competitors as the changes deliver a streamlined and simple structure with a clear focus. By creating three new business units, and with an increased focus on costs, Vodafone is reflecting the different approaches that will be required to continue to succeed, both in terms of Vodafone's existing operations and in capturing new revenue streams for the future.
Vodafone's management structure
MOTIVATIONAL THEORIES AND THE ORGANISATION Impact of changing leadership on individual's motivation
To implement a new organizational vision and strategic organizational change, it has been suggested that organizations should undergo transformational change. By transformational we mean areas in which alteration is likely caused by interaction with environmental forces and will require entirely new behaviour sets from organizational members. For senior teams of organizations, it will require the following of decision strategies that will lead to superior organizational performance. Such 23 -ORGANISATIONAL BEHAVIOUR
strategies might involve creating value by introducing new products, penetrating new markets, introducing eflexible manufacturing capabilities and implementing activity-based costing within a new management control system framework. The basic idea behind strategic organizational change is to provide a clear focus and to help establish the gaps in performance and the areas greatest concern and opportunity for change management ,The success of strategic organizational change will in turn be measured by improving key strategic organizational variables such as market shares, sales volume, earnings per share, stock price, cost reduction and stakeholders (i.e. suppliers, customers, public at large, etc.) satisfaction. The rules and principles governing how people accomplish their jobs in an organization can have profound impact on the latters ability to introduce any type of strategic organizational change. As was stated earlier, the biggest challenge for management is to have their change initiatives supported by the employees of the organization. These change initiatives are likely to encounter serious resistance from various levels in the organization, and especially middle management. At the individual level, it has been argued that the organization members willingness to buy into a culture of change can be facilitated by applying the principles of behaviour modication. These principles, derived from operant conditioning concepts, are not applicable to all behaviour modication attempts. In designing jobs, organizations have to assess individuals capabilities to adapt to change. For example, it has been advanced that the degree to which individuals will translate organizational change initiatives into higher performance achievement (BM) is related to their locus of control. Since internally oriented individuals (internal locus) believe that their own actions determine outcomes, internals are more likely to take an active posture with respect to their environment. Externals (external locus), in contrast, may adopt a passive role. The ability of any organization to motivate individuals, whether they have an external or internal locus of control, to superior levels of performance is closely related to their reward systems. Therefore, strategic organizational change efforts must ascertain that different types of rewards are offered to employees who might have quite a different attitude set towards organizational change. Although it has been suggested that ideal organizational climate would provide opportunities for independence, recognition, and responsibilities (Vecchio and Appelbaum, some employees performance under an organizational change environment might still be motivated by extrinsic job satisfaction factors (e.g. pay, job security, fringe benets, working conditions, explicit working rules,etc.). As pointed out earlier , individuals need control over the job attributes (intrinsic or extrinsic) that will determine how successful they are at reaching their performance objectives. A careful assessment of an individuals ability to controlshort-versus long-term performance, risk taking versus risk aversion, division performance versus total (organizational) performance, maximizing return on investment versus sales growth, and so on is requested
Application of different motivational theories within the work place

There are a number of different views as to what motivates workers. The most commonly held views or theories are discussed below and have been developed over the last 100 years or so. Unfortunately these theories do not all reach the same conclusions. Alignment of aims, purpose and values between staff, teams and organization is the most fundamental aspect of motivation. The better the alignment and personal association with organizational aims, the 24 -ORGANISATIONAL BEHAVIOUR
better the platform for motivation. Where people find it difficult to align and associate with the organizational aims, then most motivational ideas and activities will have a reduced level of success. Motivation is a complex area. It's different for each person. See the personality materials for useful explanation about different motivational needs. Erik Erikson's life stage theory is useful for understanding people's different motivational needs according to lafe stage. And the experiential learning section explains the difference between 'de motivational training', and 'motivational learning', and a guide to facilitating experiential learning activities. Motivational receptiveness and potential in everyone changes from day to day, from situation to situation. Get the alignment and values right, and motivational methods work better. Motivational methods of any sort will not work if people and organisation are not aligned. People are motivated towards something they can relate to and something they can believe in. Times have changed. People want more. You should view the following motivational methods and ideas as structures, activities and building blocks, to be used when you have a solid foundation in place. The foundation is a cohesive alignment of people's needs and values with the aims and purpose of the organization. Refer to the Psychological Contract, and people-organization alignment and motivation. Motivational and inspirational quotes, poems, posters, motivational speakers and stories, team building games and activities, all develop employee motivation for sales and business staff in all kinds of organizations. Motivational and inspirational experiences improve employees' attitudes, confidence and performance. Good leadership demands good people-motivation skills and the use of inspirational techniques. Motivational methods are wide-ranging, from inspirational quotes and poems, to team building games and activities, as ice-breakers, warm-ups and exercises for conferences, workshops, meetings and events, which in themselves can often be helpful for staff motivation too. Motivation is an essential part of life coaching processes and techniques too. Motivated people perform better. McGregor's XY Theory for an example;McGregor's ideas suggest that there are two fundamental approaches to managing people. Many managers tend towards theory x, and generally get poor results. Enlightened managers use theory y, which produces better performance and results, and allows people to grow and develop. theory x ('authoritarian management' style) The average person dislikes work and will avoid it he/she can. Therefore most people must be forced with the threat of punishment to work towards organisational objectives. The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else. theory y ('participative management' style) Effort in work is as natural as work and play. People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. 25 -ORGANISATIONAL BEHAVIOUR
The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilised. People playing games or competing in teams learn about each other, they communicate better and see each other in a new light. Mutual respect grows. See the Johari Window theory for an example. johari window four regions theory what is known by the person about him/herself and is also known by others what is unknown by the person about him/herself but which others know what the person knows about him/herself that others do not know what is unknown by the person about him/herself and is also unknown by others People often enjoy events which include new non-work activities, especially when bosses and superiors take part in the same teams as their junior staff, which also helps cohesiveness and 'can-do' culture. Inspirational quotes, stories and poems all help motivation too. Powerful positive imagery stimulates visualisation in the conscious and sub-conscious brain, which encourages self-motivation, developmental behaviour, confidence and belief. Playing games enables people to experience winning and achieving in a way that their normal work might not. People become motivated to achieve and do better when they have experienced the feelings of success and achievement, regardless of context. When a group or team of people assemble for a conference, or training course, there is always a feeling of uncertainty and discomfort. Even if people know each other, they feel uncomfortable in the new strange situation, because it is different. Mankind has evolved partly because of this awareness to potential threats and fear of the unknown. Games and team building activities relax people, so that they can fully concentrate on the main purpose of the day, whatever it is, rather than spending the morning still wondering what everyone else is thinking. Activities and games are great levellers they break down the barriers, and therefore help develop rapport and relationships.(stress theory ) Taylor's theory Frederick Winslow Taylor (1856 1917) put forward the idea that workers are motivated mainly by pay. His Theory of Scientific Management argued the following: Workers do not naturally enjoy work and so need close supervision and control Therefore managers should break down production into a series of small tasks Workers should then be given appropriate training and tools so they can work as efficiently as possible on one set task. Workers are then paid according to the number of items they produce in a set period of time- piecerate pay. As a result workers are encouraged to work hard and maximise their productivity. Taylors methods were widely adopted as businesses saw the benefits of increased productivity levels and lower unit costs. The most notably advocate was Henry Ford who used them to design the first ever production line, making Ford cars. This was the start of the era of mass production. Taylors approach has close links with the concept of an autocratic management style (managers take all the decisions and simply give orders to those below them) and Macgregors Theory X approach to workers (workers are viewed as lazy and wish to avoid responsibility).
However workers soon came to dislike Taylors approach as they were only given boring, repetitive tasks to carry out and were being treated little better than human machines. Firms could also afford to lay off workers as productivity levels increased. This led to an increase in strikes and other forms of industrial action by dis-satisfied workers. Mayo's theory Elton Mayo (1880 1949) believed that workers are not just concerned with money but could be better motivated by having their social needs met whilst at work (something that Taylor ignored). He introduced the Human Relation School of thought, which focused on managers taking more of an interest in the workers, treating them as people who have worthwhile opinions and realising that workers enjoy interacting together. Mayo conducted a series of experiments at the Hawthorne factory of the Western Electric Company in Chicago. He isolated two groups of women workers and studied the effect on their productivity levels of changing factors such as lighting and working conditions. He expected to see productivity levels decline as lighting or other conditions became progressively worse. What he actually discovered surprised him: whatever the change in lighting or working conditions, the productivity levels of the workers improved or remained the same. From this Mayo concluded that workers are best motivated by: Better communication between managers and workers ( Hawthorne workers were consulted over the experiments and also had the opportunity to give feedback) Greater manager involvement in employees working lives ( Hawthorne workers responded to the increased level of attention they were receiving) Working in groups or teams. ( Hawthorne workers did not previously regularly work in teams) In practice therefore businesses should re-organise production to encourage greater use of team working and introduce personnel departments to encourage greater manager involvement in looking after employees interests. His theory most closely fits in with a paternalistic style of management. Maslow theory Abraham Maslow (1908 1970) along with Frederick Herzberg (1923-) introduced the Neo-Human Relations School in the 1950s, which focused on the psychological needs of employees. Maslow put forward a theory that there are five levels of human needs which employees need to have fulfilled at work. All of the needs are structured into a hierarchy (see below) and only once a lower level of need has been fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied. For example a person who is dying of hunger will be motivated to achieve a basic wage in order to buy food before worrying about having a secure job contract or the respect of others. A business should therefore offer different incentives to workers in order to help them fulfil each need in turn and progress up the hierarchy (see below). Managers should also recognise that workers are not all motivated in the same way and do not all move up the hierarchy at the same pace. They may therefore have to offer a slightly different set of incentives from worker to worker. Herzberg theory 27 -ORGANISATIONAL BEHAVIOUR
Frederick Herzberg (1923-) had close links with Maslow and believed in a two-factor theory of motivation. He argued that there were certain factors that a business could introduce that would directly motivate employees to work harder (Motivators). However there were also factors that would de-motivate an employee if not present but would not in themselves actually motivate employees to work harder (Hygiene factors) Motivators are more concerned with the actual job itself. For instance how interesting the work is and how much opportunity it gives for extra responsibility, recognition and promotion. Hygiene factors are factors which surround the job rather than the job itself. For example a worker will only turn up to work if a business has provided a reasonable level of pay and safe working conditions but these factors will not make him work harder at his job once he is there. Importantly Herzberg viewed pay as a hygiene factor which is in direct contrast to Taylor who viewed pay, and piece-rate in particular Herzberg believed that businesses should motivate employees by adopting a democratic approach to management and by improving the nature and content of the actual job through certain methods. Some of the methods managers could use to achieve this are: Job enlargement workers being given a greater variety of tasks to perform (not necessarily more challenging) which should make the work more interesting. Job enrichment - involves workers being given a wider range of more complex, interesting and challenging tasks surrounding a complete unit of work. This should give a greater sense of achievement. Empowerment means delegating more power to employees to make their own decisions over areas of their working life. All of these ideas contribute to improving motivation, inspiration and performance.
The usefulness of motivational theories for Managers The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines. What will a manager get if he/ she motivates employees ? Motivated employees are needed in our rapidly changing workplaces. Motivated employees help organizations survive. Motivated employees are more productive. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Of all the functions a manager performs, motivating employees is arguably the most complex. 28 -ORGANISATIONAL BEHAVIOUR
lets see how a manager can use the above mentioned motivational theories in a useful way . Get to Know Every Employee It is virtually impossible for a mid-level manager to motivate his/her employees without getting to know them. Whenever starting a new job, all managers should make a point of having a one-on-one meeting with each member of their staff. Managers who do not know what makes each employee tick will find it very difficult to motivate them. Similarly, if the manager does not know an employee's strengths, he will be unlikely to find the right role for them. These one-on-one sessions are a great opportunity to encourage employees to contribute their ideas. Show Respect By Asking Employees For Their Feedback When management doesn't ask employees for feedback, they are in essence saying, "We don't care what you think about how we treat you, and besides, we know what's best for you anyway." In contrast, when management asks employees for feedback about their management style and practices, they communicate respect and concern. In such an atmosphere, employees are more likely to feel committed to their work and the company. Asking for feedback isn't just about communicating respect and concern, though. It's also about finding out what's working, and what isn't. Too often, we assume we know, when we dont. Just as smart companies actively and continuously solicit feedback from their customers to find out how well they are meeting their needs, smart companies actively and continuously solicit this kind of feedback from their internal customers - their employees. Give Employees As Much Control As Possible Over Their Work This strategy is related to the former one. The more control and autonomy employees have over their work, the more they're able to use their minds. The issue of control goes far beyond the intellectual realm, though. Decades of research shows that when people feel they don't have control, their intellectual functioning, interpersonal functioning, and behaviour deteriorate. Feeling out of control creates tremendous stress and, if chronic, leads to the condition called Learned Helplessness, which in turn leads to depression. When employees have a say in their work, and therefore feel in control, they become more energized, enthusiastic, and productive. (Important Note the drive for control is so powerful that if employees aren't given opportunities for positive control, they will find ways of exerting negative control, such as calling in sick, engaging in work slow downs, illegitimately using Short Term Disability, etc.). Challenge them to Improve the Operation One way for managers to make it clear that they welcome input and suggestions is to give each employee a clear mandate in their work requirements to take a hard look at the whole operation and make recommendations for improvements. This sets down a marker that all employees are expected to contribute their ideas. It is equally important to comment on each employee's efforts in this area at evaluation time. Give Employees Who Serve The Customer the Power to Please the Customer When organizations create policies and practices that hamstring the front-line service professionals ability to please the customer, they are virtually guaranteeing a demoralized, cynical workforce. Conversely, if front-line customer service professionals have the power to please the customer, the predominant tone of their interactions is one of appreciation and delighted surprise. This can't help but create a sense of pride and well-being - the emotional foundation of world class customer service.
Customer for a Day Another mechanism manager can use to elicit suggestions is to have each employee be "Customer for a Day." In offices that have customers, whether they be internal or external, it can be quite enlightening to look at the operation from the client's point of view. The most engaged and creative employees (i.e. the "Master Sergeant Romeros" of the operation) will probably identify a long list of things that can be improved to make the customer's experience more comfortable, transparent and efficient. At a minimum, the experience will sensitize employees to any hardships experienced by the customer. (Note: Employees would not really be "Customer" for the whole day. But they should be given sufficient time to go all the way through the process, and then to write up their impressions and suggestions for the supervisor.) Notice when Employees Do Things Right Many managers unwittingly increase their own frustration, while creating a demoralized workforce, by always focusing on employee mistakes. Unfortunately, it's human nature to notice what's wrong more easily than what's right. Since we are all affected by how we are perceived, and since "what gets noticed, gets repeated," giving in to this natural tendency creates a downward spiral of increasing undesirable behaviours and decreasing morale. To prevent this from happening, provide managers with training and coaching about how to become a more consistent "good finder." The Great Idea Award It is also important to find a way to reward or recognize employees whose suggestions help improve the operation. One option is to establish a Great Idea Award and give the recipient a customized certificate. Other options could be to give them a logo item, a cash award or even a day off (It will depend both on what the parent agency permits and what the employee values most). Managers at agencies that offer cash awards to employees who make money -saving suggestions should find out the procedures and use that mechanism whenever appropriate. Don't Force Employees Few things kill the spirit more quickly than mind-numbing work. Give employees the opportunity to think on the job. Encourage them to improve the work processes they're involved in. Not only does it make sense - people who do the work usually have the best ideas about how to do it better - it makes work more enjoyable and interesting. In the customer service field, an excellent - and unfortunately underutilized - way to engage employees' minds, is to turn them into "customer service detectives." Create processes and rewards that encourage them to find out what customers want and then deliver this critical information to key decision-makers. A crucial part of this whole equation is the actual implementation of the great ideas generated by employees. Without follow-through, the organization simply ends up with a long list of unused suggestions-and a lot of frustrated employees. To the extent possible, managers should put the person who suggested a great idea in charge of the actual implementation. The initiator of an innovative idea usually has a sense of ownership and is highly motivated to see their suggestion put into effect. Those managers who try to take the lead on all new initiatives will find themselves overworked and unable to accomplish everything they would like. By delegating the implementation, the managers can give their employees a terrific developmental opportunity, with the manager just needing to provide guidance and support.
GROUPS AND GROUP BEHAVIOUR

There can be different types of groups that might exist most common way of distinguishing between groups is to categorizing the groups into formal or informal groups . Formal groups deliberately created by the organization in order to help the organizational members achieve some of the important the organizational goals. Informal groups I contrast, develop rather spontaneously among an organizations members without any direction from the organizational authorities
different types of groups There are various types of formal groups that are found in an organization. These are, Command group which is determined by the organizational chart depicting the approved formal connections between individuals in an organization. Examples of command group are Director and the faculty members in a business school, school principal and teachers,production manager and supervisors, etc. Task groups comprising some individuals with special interest or expertise, are created bythe organizational authorities to work together in order to complete a specific task. Task groups are often not restricted to the organizational hierarchy and can be cross functional in nature Examples of task group might be people working on a particular project. Standing committee is a permanent committee in an organization to deal with some specific types of problems that may arise more or less on a regular basis. Examples of standing committees include the standing committee in a university to discuss various academic and administrative issues. Task force committee, in contrast a temporary committee formed by organizational members from across various functional areas for a special purpose. Meetings can also come under this category. Various types of informal groups are: Interest groups are formed when a group of employees band together to seek some common objectives, like protesting some organizational policy or joining the union to achieve a higher amount of bonus. Friendship groups develop among the organizational members when they share some common interest like participating in some sports activities or staging the office drama, etc. Reference groups 32 -ORGANISATIONAL BEHAVIOUR
are the groups, with which individuals identify and compare themselves. These could be within the organization when a middle level executive compares himself with the higher level executive and longs for the perks and benefits enjoyed by the latter. The reference group might exist outside the organization as well when an individual compares himself with his batch mates working in other organizations or an ideal group of people helikes to become Group development stages Before the 1960s, it was believed that groups were formed in a specific sequence but it was later realized that they do not follow a standard pattern of development. Established models of group development are the five-stage model and the punctuated equilibrium model. The Five-Stage Model According to the five-stage model of group development, all groups pass through the forming, storming, norming, performing, and adjourning stages. The duration of each stage varies from group to group and some groups do not pass through all the stages. This model became popular in the mid-1960s. Forming This is the initial stage of group formation where members try to identify acceptable behaviour in a group. The members try to mould their behaviour so as be a part of the group. Storming In this stage, disagreements about leadership among members may give rise to other conflicts. By the end of this stage, a relatively clear hierarchy of positions in the group emerges. Norming This stage of group development enhances a sense of camaraderie in members through the development of close relationships. A common set of expectations for behaviour in the group is the outcome of this stage. Performing In this stage, members of the group exhibit committed performance to achieve goals defined in the norming stage. This is the last stage for permanent work groups. Adjourning This is the last stage for temporary groups such as task groups or committees formed to accomplish a certain task. After this stage, the groups cease to exist. While some of the members may feel happy about the accomplishments, others may be depressed that they will lose friends after the group disperses.
5 stages model The effectiveness of groups is supposed to increase through the stages. But this does not always happen and some groups may cease to exist without passing through all the stages while some other may not follow the sequence of stages given in the five stage model. In fact, group effectiveness depends on complex factors. The Punctuated Equilibrium Model As per the punctuated equilibrium model, there are long periods of inactivity combined with brief periods of activity in group formation and its functioning. The periods of activity primarily take place when members realize the time lag and if the project is approaching the deadline. According to this model, the direction for a group is set in the first meeting of the group and is unlikely to change during the first half period of the project. The period of the first half is characterized by inertia. After the first half period, members realize the passage of time and lack of progress. This leads to intensified activity to complete the project. The direction of group is revised and the group works with a passion to complete the project on time and finish all the required tasks. The punctuated equilibrium model gives more attention to complexities of group functioning when compared to the five stage model
Group structure The structure of a group shapes the behaviour of members and performance as a group. Variables such as formal leadership, roles, norms, group status, group size, and composition of group have an influence on the performance of the group. Formal Leadership Work groups can function efficiently under formal leaders like supervisor, project head, or 34 -ORGANISATIONAL BEHAVIOUR
department head. The success or failure of a group depends on the behaviour of the leaders, as members tend to imitate and follow them. Roles Role is the expected pattern of behaviour of an individual in a particular position of society. The employees of an organization play different roles within and outside the organization and understanding their roles helps to understand their behaviour Dimensions such as identity, perception, expectations, and conflict of roles influence the behaviour of individuals. Role identity Role identity results from attitude and behaviour of individuals in different roles. Individuals need to make the necessary changes in behaviour to suit the requirements of an organization. Changes like promotions, demotions, or any other changes in organizations require individuals to identify with the new roles and change and re-change their behaviour accordingly. Role perception Role perception is the view of an individual about accepted behaviour in a particular role. Employees in an organization perceive and interpret the roles by observing the behaviour of other employees. Role expectations How an individual is expected to behave in a particular situation is referred to as role expectation. Employees and employers in organizations have different role expectations from each other. A psychological contract existing between employer and employees is an agreement that sets out expectations on the behaviour of each party in performing various roles in the organization. Role conflict Individuals play different roles in their personal and professional lives. The roles of an individual in the organization may contradict other roles in the organization or with the roles in his/her personal life as the expectations from the roles differ. Norms Norms are set standards for behaviour of individuals. Norms can be formal or informal in organizations. Formal norms are stated in the manuals of the organization while informal norms are unwritten and are not specific. Informal norms of groups in organizations can sometimes be dysfunctional. Some norms are common to most work groups and some work groups have a set of norms specially set for them. Norms pertaining to performance-related processes Norms give an indication of the expected performance levels of employees. Informal norms of groups influence the performance of employees along with their personal motivation levels. Appearance norms Appearance norms include norms to dress up, to appear loyal to the organization along with the group, to be busy, and other formalized and informal norms. Norms pertaining to informal social arrangements These norms control the social interactions of people within organizations. They determine the friends that people make within the organization. Lunch groups in organizations are determined by such norms.
Norms that regulate the allocation of resources These norms direct the allocation of new tools and equipment, assignment of projects, and overtime in organizations. Norms for groups develop over time and can be after-effects of statements by influential members, important actions of a group and its responses, etc. Individuals need to stick to the norms of the group to be acceptable to members. Sometimes, groups can even pressure members to change their behaviour Status Status is the rank or social position given to an individual or group by others. It influences the behaviour of individuals and motivates them. Organizational titles are used to establish status formally. People with high status in organizations have the liberty to deal with the norms of the organization as per their convenience. If there is a difference between ranking by the organization and the perceived ranking of the employee, disequilibrium in status is created. This leads to corrections in behaviour However, members of groups in general, have the approval of others on the rankings given to them. Size The size of a group influences the behaviour of the group at large. According to research results, tasks are completed faster by small groups than by large ones but large groups work better to gather diverse opinions of members. Another research finding is about social loafing according to which an individual puts in less effort when working with others collectively in a group as time gets wasted in socializing. Social loafing may also result when the employee observes that other members of group are lazy and so puts in reduced effort too. If measures for individual performance do not exist, members may not work to increase productivity as the efforts would be counted for the group as a whole. Composition Many group activities have a need for diverse skill sets. If the members of a group have different skills and knowledge levels, they can all work together effectively. Many researches have also proved that even if conflicts arise due to the diverse composition of groups, the performance is good. Demographic factors such as age, gender, educational level, race, etc. influence the performance of a group. People stay together in groups if they have common attributes; otherwise, they prefer to leave the groups as difficulties in communication and /or struggle for power or other conflicts may arise. Therefore, the composition of the group should be balanced so as to reduce the negative effects of diversity. Group Tasks The complexity and interdependence in the tasks of a group influence the performance of the group. When the tasks are complex, the members of a group need to discuss things with each other and share ideas to work better. If the tasks are interdependent, there will be interactions between members of a group. Generally, groups can perform efficiently by reducing conflicts and improving communication. When the tasks of a group are highly uncertain i.e., if the tasks are complex and interdependent, the effectiveness of group performance depends on the quality of communication in the group. Group Processes To understand group behaviour, group processes such as communication patterns, power dynamics, behaviour of the leader, conflict within the group, etc. should be understood clearly. 36 -ORGANISATIONAL BEHAVIOUR
The social loafing concept explains the differences in the performance of groups. Group processes should promote synergy wherein the performance of the group is more than the sum of individual performances. The social facilitation effect has an influence on performance of groups. According to this, there is a difference in the performance of individuals when tasks are performed in private and when performed in front of others. The group processes can be effective if the tasks are planned according to the comfort levels of people. Individuals Performance in Groups Groups are formed with individuals, but the output of the groups is not just the sum-totalof individuals contribution towards the group. The term group synergy refers to the fact the action of two or more group members result in an effect that is different from the individual summation of their contributions. This occurs because of the social facilitation effect which refers to the tendency for performance of an individual group member to improve in response to the presence of other members. However, the group performance is not always guaranteed to improve as often group members are found to exert less individual effort. This is known as social loafing when members are found to enjoy a free ride which tends to increase with groups size Effective team work and success Whether in the workplace, or in sports, or amongst members of a community, effective teamwork can produce extraordinary results. However, that is easier said than done, for, effective teamwork does not happen automatically. There are a number of factors that are required to cohere together, working seamlessly, for an effective team to develop and work. So, what makes an effective team? Well, given below are some of the factors that are vital for building a good team that works successfully: Effective Teamwork is about Good Leadership: One of the most important aspects of effective teamwork is effective leadership. This means that the team leader should have the skills to create and maintain a working culture that is positive. This helps to motivate and even inspire the team members to get involved in creating an environment where there is a positive approach to work, along with high levels of commitment. A good team leader is a person who not only focuses himself/herself on the purpose and direction of the team, but also makes sure that the other members of the team share this focus. A good team leader also has to be able to promote a high level of morale amongst the team members so that they feel supported and valued. This is particularly useful for preventing the bane of most office cultures that of back biting, rumormongering, gossip mongering, and cronyism which can derail the efforts of any teamwork. Effective Teamwork is about Effective Communication: It goes without saying that communication is a vital factor of interpersonal interaction, and the very term teamwork represents interpersonal interaction. Hence, one of the key aspects of effective teamwork is open communication, wherein it enables the members of the team to articulate their feelings, express their plans, share their ideas, and understand each others viewpoints. Grappling with and sorting out the complexities involved in communication is thus one of the challenges of developing and sustaining effective teamwork. Effective Teamwork is about Defining Clear-cut Roles: It is necessary for teams to know clearly what their purpose is, what role each member of the team has to play, what each person is responsible for, what is not within their scope, and the resources they have to achieve their goals. The team leader can enable this by defining the purpose in a clear-cut manner up front. The team, on their part, can help by building processes wherein the roles and scope of each member as well as the team are kept in focus, and avoiding anything that undermines effective 37 -ORGANISATIONAL BEHAVIOUR
teamwork. Effective Teamwork is about Creating Procedures for Conflict Resolution: No matter how good a team may be, conflicts will inevitable occur some time or the other. The best way to counter this is to have structured methods of resolving them. Team members should have a way of expressing their opinions without fear of causing offence to anyone. Direct confrontation can also be allowed in a moderated manner, so that matters that may have been simmering can be aired out and cleared. Instead of ignoring and procrastinating these issues, a hands-on approach that resolves them quickly is better. In fact, it is advisable for the team leader to actually sit with the parties in conflict and work out the differences between them, without taking sides and making sure to remain objective. Eventually, the conflicts can actually be used as a chance to reveal underlying problems that may be in existence within the team. Effective Teamwork is about Setting a Good Example: And finally, effective teamwork can only come about when the team leader sets a good example, which can be emulated by the team members. In order to keep the team committed, positive, and motivated, the team leader himself/herself has to have all these qualities and make it apparent that he/she does. After all, the team leader is the person the team looks to for support, direction and guidance, hence, any cynicism or negativity on his/her part is picked up by the team and is reflected in their teamwork. So, even if it means forcing yourself to, it is important to maintain a supportive and positive attitude always.
Impact of technology on team functioning

Some organisations rely on technology to develop new or advanced products and services. Others use it to streamline the processes they use. Vodafone's approach to technology in developed economies is to provide new features and benefits that customers demand. We expect more and more from mobile communications -email messaging, music downloads and mobile television. Yet, in some parts of the world, many people still do not have access to a mobile phone. Vodafone is using its expertise to provide these developingn markets with the technology to mprove communication in these areas. New technology has an impact on individuals, firms and whole economies. Providing communications opportunities in some parts of Africa, for instance, may be driver for change in both society and the economy in these countries. The use of new technologies can improve and in some cases hinder team functioning.As technology changes teams must update and maintain their knowledge in order to function effectively. Technologies which have improved team functions e-mail mobile phones blackberry groupware computers
email allows asynchronous communication which means team members do not need to be in the same place at the the same time in order to communicate effectively. e-mail also has it's negative aspects in terms of manging e-mail and the misuse of e-mail.
Mobile phones have come a long way from the yuppie bricks of the 1980s and there are now more mobile phones in the UK then there are people. Mobile phones allow teams to communicate even when team members are out of the office, on the road or otherwise unavailable. Sometimes having always access to team members can hinder team functioning. Phone technologies such as blackberry and 3G datacards allow team members to work and communicate remotely and this out in the field or with clients. Groupware enables teams to plan meetings, collaborate, delegate all within a virtual environment which can often be accessed remotely from anywhere in the world. Personal computers allow team members to carry out various tasks and communicate more effectively. Laptop computers allow you to do this anywhere. They are now lighter, more powerful and a longer battery life. Personal Digital Assistants (PDA) now have much of the same functionality as their bigger cousins, but are smaller, more portable and have a longer battery life. Many PDAs now have wifi as standard and some are also phones (and some phones have many PDA features). The use of technology is changing the publishing world too. E-books are becoming more popular. Electronic readers, such as Amazon's Kindle or the Sony Reader, can store hundreds of books. Apple is joining the race by introducing its iSlate. This is expected to have a full-colour touch screen and, in addition to downloading and reading books, the device will allow users to play games, use the internet and watch videos. Printing, shipping and storage costs of traditional books are unnecessary with this new format and this may allow authors to receive greater royalties for their works. With more than half of all books sales predicted to be electronic by 2020, the way we access literature likely to undergo major change.
CONCLUSION An overall model of organizational behaviour can be developed on the basis of three theoretical frameworks. They are the cognitive, behaviourist and social learning frameworks. The cognitive approach gives more credit to people than the other approaches and is based on the expectancy, demand and incentive concepts. Edward Tolman has made significant contributions to this approach. Behaviourist framework focuses on observable behaviours Ivan Pavlov and John B. Watson were the pioneers of the behaviourist theory. They explained human behaviour on the basis of the connection between stimulus and response. The social learning approach incorporates the concepts and principles of both the cognitive and behaviouristic frameworks. In this approach, behaviour is explained as a continuous reciprocal interaction between cognitive, behavioural and environmental determinants. The organization behaviour model (S, O, B, C) has incorporated the best aspects from the three frameworks of human behaviour In this model, the letters S, O, B, C represent situation, organism, behaviour and consequences, respectively.
The ability of organisations to manage change effectively has become more important because of the rapid advances in technology and the increasing uncertainty and risk associated with the business environment. Managing change requires flexibility, good planning, an effective decision making system and an efficient management information system, as well as effective communication systems and channels. Managers must show leadership, have behavioural knowledge, especially with regards to the management of teams, demonstrate analytical skills in basic economic reasoning, be agents of change, proactive rather than reactive; be able to tolerate ambiguity and uncertainty, and understand why change is so often perceived as threatening. The possibility of change tends to provoke resistance among the employees that the change will affect. This is due to a very natural fear and mistrust of the unknown. This resistance will manifest itself in different ways, ranging from outright refusal to cooperate through to a covert undermining of proposals. This mistrust can be best overcome by a deliberate policy of keeping people informed about what is being proposed and getting them involved as far as possible in the discussions and decision making. In modern times, managers confront many challenges and opportunities. The greatest challenges among all of them are the result of environmental changes occurring due to globalization, information technology, total quality, and diversity and ethics. OB models help managers to face these challenges and take appropriate actions. The four models of OB are the autocratic model, the custodial model, the supportive model and the collegial model. The autocratic model is based on power. It works well especially in times of an organizational crisis. The custodial model of OB takes into consideration the security needs of employees. A custodial environment gives a psychological reassurance of economic rewards and benefits. The supportive model of OB seeks to create supportive work environment and motivate employees to perform well on then- job. In the collegial model, the management nurtures a feeling of partnership with its employees, and makes the employees feel themselves as an asset to the organization.
REFERENCE
parkinson law- http://en.wikipedia.org/wiki/Parkinson's_Law Hicks and Gullet, 1975; Anderson 1988 www.vodafone.co.uk http://innovation.vodafone.com/content/index/press/group_press_releases.html? q=Press+release&start=10&perpage=10&area=2011
BPPEARNING MEDIA -ORGANISATIONAL BEHAVIOUR http://corporate.marksandspencer.com/media/press_releases

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ORGANISATIONAL BEHAVIOUR

as well as more sustainable longer-term.

Different leadership styles

Vodafone's management structure

Application of different motivational theories within the work place

GROUPS AND GROUP BEHAVIOUR

Impact of technology on team functioning

BPPEARNING MEDIA -ORGANISATIONAL BEHAVIOUR http://corporate.marksandspencer.com/media/press_releases

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