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Organization Behaviour

Introduction

2 Learning
Definition: any permanent change in behaviour

that occurs as a result of experience (Robbins) A relatively permanent change in knowledge or behavior that results from practice or experience (Jones) A process through which individuals change their behaviour based on their experiences in a situation (Hitt)

Learning
Relatively permanent change in capabilities

Process of behavior change based on positive or

negative experiences Occurs only when changes in behavior happen Driven by experience with a particular situation

Theories of learning
Classical conditioning
Where an individual responds to a stimulus that

would not ordinarily produce such a response Learning that takes place when the learner recognizes the connection between an unconditioned stimulus and a conditioned stimulus.

Stimulus
Unconditioned Stimulus: Anything that

produces an unconditioned response.


Conditioned Stimulus: A neutral stimulus that,

as a result of being paired with an unconditioned stimulus, elicits a response.

Response
Unconditioned Response: A response that

occurs naturally in the presence of a given stimulus.


Conditioned Response: A response that is

called forth by a previously neutral stimulus (the conditioned stimulus.)

Theories of learning-contd
Operant Conditioning:
A type of conditioning in which desired voluntary

behaviour leads to a reward or prevents a punishment (Robbins) Learning that takes place when the learner recognizes the connection between a behavior and its consequences (Jones)

Operant conditioning: an explanation for

consequence based learning that assumes that learning results from simple conditioning and that higher mental functioning is irrelevant

Operant Conditioning
Reinforcement based

Behavior is learned as a function of its consequence


Roots in the late 1800s with animals Learning results from simple conditioning, not from

higher mental functioning

Theories of learning-contd
Social learning theory
It is an extension of operant conditioning-as it

assumes that behaviour is a function of consequences-it also acknowledges the existence of observational learning and the importance of perception in learning The view that individuals can learn through observation and experience

Social learning theory


An explanation for consequence based learning

that acknowledges the higher mental functioning of human beings and the role that such functioning can play in learning A learning theory that takes into account the fact that thoughts and feelings influence learning.

Social Learning
Humans can observe others in a situation and learn

from what they see No direct experience to a specific situation is needed to understand the behavior and its consequences Learning can result from higher mental functioning

Contingencies of Reinforcement
The Situation Behavioral Response Consequences of the Behavior

Positive consequences, or removal of negative ones, reinforces behavioral response

New Response to the Situation

Aversive consequences lead to avoidance of the same behavioral response, or to new responses to similar situations in the future

Adapted from Exhibit 4-1: Effects of Reinforcing Consequences on Learning New Behaviors

Positive Reinforcement
A reinforcement contingency in which a behavior

is followed by a positive consequence, thereby increasing the likelihood that the behavior will be repeated in the same or similar situations Administering positive consequences to workers who perform the desired behavior.

Negative Reinforcement
A reinforcement contingency in which a behavior

is followed by the absence of a previously encountered negative consequence; thereby increasing the likelihood that the behavior will be repeated in the same or similar situations Removing negative consequences to workers who perform the desired behavior.

Punishment
A reinforcement contingency in which a behavior

is followed by a negative consequence, thereby reducing the likelihood that the behavior will be repeated in the same or similar situations Administering negative consequences to workers who perform the undesirable behavior.

Punishment Guidelines
Use only if necessary Deliver as quickly as possible after

the undesired event Focus on specific behaviors that have been made clear to the recipient Deliver in an objective, impersonal fashion Listen to the person before taking action

Extinction
A reinforcement contingency in which a behavior

is followed by the absence of a previously encountered positive consequence; thereby reducing the likelihood that the behavior will be repeated in the same or similar situations Removing whatever is currently reinforcing the undesirable behavior.

Schedules of Reinforcement
Continuous schedulereinforcement follows

each instance of desired behavior Intermittent schedulereinforcement does not follow each instance of desired behavior
Fixed intervalreinforcement based on fixed unit of

lapsed time Variable intervalreinforcement based on varying lapses of time Fixed ratioreinforcement based on consistent number of instances of the desired behavior Variable ratioreinforcement after desired behavior has occurred a variable number of times
Adapted from Exhibit 4-2: Schedules of Reinforcement

Schedules of Reinforcement
Continuous reinforcement: A reinforcement

schedule in which a reward occurs after each instance of a behaviour or set of behaviours Reinforcing a desired behaviour each time it is demonstrated

Schedules of Reinforcement
Intermittent reinforcement: A reinforcement

schedule in which a reward does not occur after each instance of a behaviour or set of behaviours reinforcing a desired behaviour often enough to make that behaviour worth repeating but not every time that it is demonstrated

Intermittent Schedules
Fixed interval
Spacing rewards at uniform time intervals

Variable interval
Distributing rewards in time so that reinforcements are

unpredictable

Fixed ratio
after a constant number of responses are given a reward is

initiated

Variable ratio
When reward varies relative to the behaviour of the individual

OB Mod
The systematic application of the principles of operant conditioning for teaching and managing important organizational behaviors. The application of reinforcement concepts to individuals in the work setting

Organizational Behavior Mod


Also known as performance management, a formal procedure that focuses on improving task performance through positive reinforcement of desired behaviors and elimination of undesired behaviors

The Basic Steps of O.B. Mod.


Identify the behavior to be learned.

Measure the frequency of the behavior.


Perform a functional analysis. Develop and apply a strategy. Measure the frequency of the behavior.

OB Mod
A formal procedure focused on improving task performance through positive reinforcement of desired behaviors and extinction of undesired behaviors
Exhibit 4-3 Shaping Behavior Through OB Modification

OB Mod Part 1

Adapted from Exhibit 4-3: Shaping Behavior Through OB Modification

OB Mod Part 2

Adapted from Exhibit 4-3: Shaping Behavior Through OB Modification

OB Mod Part 3

Adapted from Exhibit 4-3: Shaping Behavior Through OB Modification

Advanced Learning Concepts


Limited opportunities to observe the

consequences of an action Unclear feedback Learning from failure

Low Probability-High Consequence Events


Experiencing a particular situation only once or

not at all limits the opportunity to try different approaches (behaviors and consequences) for dealing with it If an approach cannot be used multiple times, one cannot learn the likelihood of positive or negative consequences of the approach Consequently people exposed to low probabilityhigh consequence events may have faulty learning

Unclear Feedback
Situations often involve multiple consequences,

such that one cannot clearly infer how the individual consequences affect behavior Simulation may be an approach for separating out the effects of the consequences on the behavior
A representation of a real system that allows

associates and managers to try various actions and receive feedback on the consequences of those actions

Causal Relationships at a Sports Club

Exhibit 4-4 Casual Relationships at a Sports Club

Intelligent Failure
Intelligent failures that result in learning are the

result of certain kinds of actions


1. Actions are thoughtfully planned.
2. Actions have a reasonable chance of producing a

successful outcome. 3. Actions are typically modest in scale, to avoid putting the entire firm or substantial parts of it at risk. 4. Actions are executed and evaluated in a speedy fashion, since delayed feedback makes learning more difficult. 5. Actions are limited to domains that are familiar enough to allow proper understanding of the effects of the actions.

Perception
A process that involves sensing various aspects

of a person, task, or event and forming impressions based on selected inputs. The process by which individuals select, organize, and interpret the input from their senses. Schemas, motivational state, and mood all play a part in perception.

Perception
Three basic stages:

Sensing various characteristics

Selecting facts
Organizing into useful concepts

Three Stages of Perception


Perception: A process that involves sensing

various aspects of a person, task, or event and forming impressions based on selected facts
1

Sensing

Stage 1: Sensing various characteristics of a person, task, or event Touch Sight Smell Taste Hearing

Three Stages of Perception


Perception: A process that involves sensing

various aspects of a person, task, or event and forming impressions based on selected facts
1

Sensing
2

Selecting

Stage 2: Selecting from the data those facts that will be used to form the perception Selective or biased perception? Accurate perception requires selection of all relevant data

Three Stages of Perception


Perception: A process that involves sensing

various aspects of a person, task, or event and forming impressions based on selected facts
1

Sensing
2

Selecting
3

Organizing

Stage 3: Organizing the selected data into useful concepts pertaining to the object or person Concepts help individuals predict the consequences of their behaviors Formation of everyday concepts help people deal successfully with problems

Perception
Perceiver: The person trying to interpret some observation that he or she has just made. Target: Whatever the perceiver is trying to make sense of. Situation: The context in which the perception takes place.

Characteristics of the Perceiver That Affect Perception

Perceptions of People
Nature of Perceiver

Nature of Situation

Perceptions of People
Nature of Perceiver Familiarity with Person Feeling Toward Person General Emotion State Perception of the Person Problems in Person Perception Logical Error Halo Effect Projecting Stereotyping

Nature of the Situation


General Nature of the Other Person Apparent Intentions of the Other Person Consequences of the Interaction
Adapted from Exhibit 4-5 Person Perception

Perceptions of People
Nature of Perceiver Familiarity with the Other Person Feelings Toward the Other Person General Emotion State Perception of the Person Problems in Person Perception Implicit Theories Halo Effect Projecting Stereotyping

Nature of the Situation


General Nature of the Other Person Apparent Intentions of the Other Person Consequences of the Interaction
Adapted from Exhibit 4-5: Person Perception

Problems in Perception
Logical error
Individual forms an impression of a person on the

basis of only one or two central characteristics


Halo effect
Individual assesses a person positively or

negatively in all situations based on an existing general assessment of the person

Problems in Perception
Projecting
individual assumes that others share his or her

values and beliefs


Stereotyping
Individual has preconceived ideas about a group

and assumes that all members of that group share the same characteristics

Contrast Effects
The perceivers perceptions of others distort the perceivers perception of a target. For example, a managers perception of an average subordinate is likely to be lower if that subordinate is in a group with very high performers rather than in a group with very low performers.

Halo Effect
The perceivers general impression of a target distorts his or her perception of the target on specific dimensions. For example, a subordinate who has made a good overall impression on a supervisor is rated as performing high-quality work and always meeting deadlines even when work is flawed.

Other
Projection

Stereotyping

Attribution Theory
A group of theories that describe how people

explain the causes of behavior. Internal Attribution assigns the cause of behavior to some characteristic of the person.
For example, ability, personality or motivation.

External Attribution assigns the cause of

behavior to factors external to the person.


For example, task difficulty or luck.

Attributions of Causality
Attributions affected by perceptions of Consistency Consensus Distinctiveness Internal attributions
Personality Attitudes Abilities

External attributions
Organizational resources Luck Uncontrollable

influences

Attributions of Causality
High Distinctiveness Low High Individual Behavior

External Internal

External
Internal

Consensus

Low

High Consistency Low

Internal External

Adapted from Exhibit 4-6 Attribution Theory

Attributions of Success and Failure


Fundamental attribution error
Perception problem in which an individual is too

likely to attribute the behavior of others to internal rather than external causes
Self-serving bias
Perception problem in which an individual is too

likely to attribute the failure of others to internal causes and the successes of others to external causes

Task Perception
Perceptions of ones job has important

implications for behavior and outcomes Task perceptions have been linked to mood, intrinsic motivation and job performance Perceptions of tasks develop through subjective and sometimes idiosyncratic processes

Attributions of Causality
External-Internal Attribution

Success and Failure

Internal-External Attribution
Consistency

Consensus

Distinctiveness

Attributions of Causality
Distinctiveness

High

External Internal External Internal

Low High Individual Behavior Consensus Low High Consistency Low

Internal
External

Adapted from Exhibit 4.6 Attribution Theory

Attributions of Success and Failure


Fundamental Attribution Error

Self-Serving Bias

Attributional Biases
Fundamental attribution error - the tendency to

overattribute behavior to internal rather than external causes when judging others.

Attributional Biases
Actor-observer effect - the tendency to attribute

the behavior of others to internal causes and to attribute ones own behavior to external causes. Self-serving attribution - the tendency to take credit for successes and avoid blame for failures.

Shortcuts in judging others


Selective perception

Task Perception
Perceptions of tasks develop through subjective

and sometimes idiosyncratic processes Intelligence, age and gender influence perception of tasks Levels of satisfaction play a role

3 Personality
Definition: the sum total of the ways in which an

individual reacts and interacts with others The pattern of relatively enduring ways in which a person feels, thinks, and behaves. Based on:
Environment Heredity

Fundamentals of Personality
A stable set of characteristics representing internal properties of an individual, which are reflected in behavioral tendencies across a variety of situations. Three basic beliefs:

Relatively enduring Major determinants of ones behavior Influence ones behavior across wide variety of
situations Not all in agreement. Some believe personalities can experience changes and we may behave differently from situation to situation.

Personality traits are individual psychological

characteristics that are relatively enduring introversion, for example, will probably remain for a long time.

Personality traits are major determinants of ones

behavior introverted person will likely be withdrawn and exhibit non-assertive behavior. Personality traits influence ones behavior across a wide variety of situations an introverted person will be withdrawn and non-assertive at a party, in class, in sports activities, and at work.

Personality
Personality
A stable set of characteristics representing internal

properties of an individual, which are reflected in behavioral tendencies across a variety of situations
Relatively enduring

Major determinants of ones behavior


Influence ones behavior across wide variety of situations

Determinants of Personality Development


Heredity
Study of identical twins
Assessments of newborns Genes

Environment
Social exposures Physiological forces Socioeconomic factors

Determinants of Personality
Nature: Biological heritage, and genetic makeup.

Nurture: Life experiences.


Environment
Social exposures Physiological forces Socioeconomic factors

The Interaction of Personality and Situational Factors

Personality Traits
Enduring characteristics that describe an

individuals behaviour

The Big Five Model


Extroversion

Conscientiousness
Agreeableness Neuroticism Openness to Experience

Big Five Personality Traits


Extraversion Conscientiousness

Personality
Openness to Experience

Agreeableness

Emotional Stability
Adapted from Exhibit 5-1: The Big Five Personality Traits

Big Five Personality Traits

Extraversion

Conscientiousness

Personality

Openness to experience Emotional stability

Agreeableness

Adapted from: Exhibit 5.1 The Big Five Personality Traits

Big Five Personality Traits


Extraversion
Outgoing and derives energy from being around

people
Conscientiousness
Focuses on goals and works toward them in

disciplined manner
Agreeableness
Easygoing and tolerant

Big Five Personality Traits


Emotional stability
Easily copes with stressful situations or heavy

demands
Openness to experience
Seeks new experiences and thinks creatively about

the future

Extroversion
The tendency to experience positive

emotional states and feel good about oneself and the world around one; also called positive affectivity. Specific traits include positive emotions, gregariousness, and warmth The degree to which an individual is outgoing and derives energy from being around people enjoys being around other people, is warm to others, speaks up in group settings, maintains a vigorous pace, likes excitement, and is cheerful.

Conscientiousness
The extent to which a person is careful,

scrupulous, and persevering. Specific traits include competence, order and self-discipline. The degree to which an individual focuses on goals and works toward them in a disciplined way feels capable, is organized, is reliable, possesses a drive for success, focuses on completing tasks, and thinks before acting

Agreeableness
The tendency to get along well with others.

Specific traits include trust,

straightforwardness and tender-mindedness. The degree to which an individual is easygoing and tolerant believes in the honesty of others, is straightforward, is willing to help others, tends to yield under conflict, exhibits humility, and is sensitive to the feelings of others

Neuroticism/ Emotional stability


The tendency to experience negative

emotional states and view oneself and the world around one negatively; also called negative affectivity. Specific traits include anxiety, selfconsciousness, and vulnerability. The degree to which an individual easily handles stressful situations and heavy demands is relaxed, is slow to feel anger, rarely becomes discouraged, rarely becomes embarrassed, resists unhealthy urges associated with addictions, and handles crises well

Openness to Experience
The extent to which a person is original, has

broad interests, and is willing to take risks. The extent to which a person is original, has broad interests, and is willing to take risks. The degree to which an individual seeks new experiences and thinks creatively about the future has a vivid imagination, has an appreciation for art and beauty, values and respects self and others, prefers variety to routine, has broad intellectual curiosity, and is open to re-examining closely held values

Cognitive and Motivational Properties of Personality


Cognitive Properties
Perceptual and thought processes Affect how one typically processes information

Motivational Properties
Stable differences Energize and maintain overt behaviors

Cognitive and Motivational Properties of Personality


Authoritarianism Locus of Control

Self-Monitoring

Cognitive and Motivational Concepts


Achievement Motivation Approval Motivation

Adapted from Exhibit 5-3: Cognitive and Motivational Concepts of Personality

Cognitive Concepts
Locus of control degree to which an

individual attributes control of events to self or to external factors Authoritarianism degree to which an individual believes in conventional values, obedience to authority, and legitimacy of power differences in society Self-Monitoring degree to which an individual attempts to present the image he or she thinks others want to see in a given situation

Cognitive Concepts
Locus of control
Tendency to attribute the cause or control of events

to either
Oneself Factors in the external environment

Internals believe they can control what happens to

them Externals believe what happens to them is more a matter of luck or fate, rather than their own behavior

Locus of Control
External Locus of Control: describes people

who believe that fate, luck, or outside forces are responsible for what happens to them. Internal Locus of Control: describes people who believe that ability, effort, or their own actions determine what happens to them.

Cognitive Concepts
Authoritarianism
Degree to which an individual believes in Conventional values Obedience to authority Legitimacy of power differences in society People scoring high on authoritarianism may be

effective leaders in jobs requiring managers to make most decisions and where there are many rules governing behavior

Cognitive Concepts
Self-monitoring
Degree to which people attempt to present the

image they think others want to see in the given situation High-self monitors want to be seen as others want them to be Low self monitors want to be seen as themselves, not as others want them to be

Cognitive Concepts
Self-Monitoring: The extent to which people try

to control the way they present themselves to others. Proactive personality: people who identify opportunities, show initiative, take action, and persevere until meaningful change occurs

Motivational Concepts
Approval Motivation degree to which an

individual is concerned about presenting self in a socially desirable way in evaluative situations Achievement Motivation degree to which an individual desires to perform in terms of a standard of excellence or to succeed in competitive situations

Motivational Concepts
Approval motivation
Concerned about presenting one-self in a socially

desirable way in evaluative situations Persons high in approval motivation tend to


Be concerned about the approval of others Conform and get along Respond to personality tests in socially desirable ways (may

fake their answers according to perceived desirability)

Motivational Concepts
Achievement motivation
The need for achievement (n-Ach)
Desire to perform in terms of a standard of

excellence Desire to succeed in competitive situations Persons high in the need to achieve
Set goals Accept responsibility for both success and failure Focus on task excellence rather than on power

Major Attributes
Core self evaluation: degree to which individuals

like or dislike themselves, whether they see themselves as capable and effective, and whether they feel they are in control. Self-Esteem: The extent to which people have pride in themselves and their capabilities.

Type A Personality: A person who has an intense desire to achieve, is extremely competitive, and has a strong sense of urgency. Type B Personality: A person who tends to be easygoing and relaxed.

Individual Behaviour
Ability: The mental or physical capacity to do something.
Physical Ability Cognitive (intellectual) Ability

Physical ability
Strength factors
Dynamic strength Trunk strength-abdominal muscles Static strength-force against external objects Explosive strength

Physical ability
Flexibility factors
Extent-movement front and back Dynamic-rapidity

Other
Body co-ordination; balance and stamina

Ability-job fit
Employee performance is enhanced when there

is a high body-job fit

Other (biographical) characteristics


Age

Gender
Race Tenure

Intelligence
General mental ability to develop and understand concepts, particularly those that are more abstract and complex.

Intelligence
What is it?
Number aptitude
Verbal comprehension Perceptual speed Spatial visualization Deductive reasoning Inductive reasoning Memory

General mental ability used in complex information processing

Intelligence
Intelligence Number aptitude Verbal comprehension Preceptual speed Spatial visualisation

Deductive reasoning
Inductive reasoning Memory

Verbal Comprehension
Number Aptitude Areas of Perceptual Speed

Intelligence
Memory

Spatial Visualization
Deductive Reasoning

Inductive Reasoning

Number aptitude the ability to handle

mathematics Verbal comprehension the ability to understand written and spoken words Perceptual speed the ability to process visual data quickly Spatial visualization the ability to imagine a different physical configuration for example, to imagine how a room would look with the furniture rearranged

Deductive reasoning the ability to draw a

conclusion or make a choice that logically follows from existing assumptions and data Inductive reasoning the ability to identify, after observing specific cases or instances, the general rules that govern a process or that explain an outcome for example, to identify the general factors that play a role in a successful product launch after observing one product launch in a single company Memory the ability to store and recall previous experiences

Attitudes
A persistent tendency to feel and behave in a

favorable or unfavorable way toward a specific person, object, or idea. Work Attitudes: Collections of feelings, beliefs, and thoughts about how to behave in ones job and organization.

Attitudes
A persistent tendency to feel and behave in a favorable or unfavorable way toward a specific person, object, or idea.

Important Conclusions
Reasonably stable Directed toward some person, object or idea Relates to ones behavior toward that object
or person

People tend to behave in ways that are


consistent with their feelings

Behaviors are also influenced by


motivational forces and situational factors

Influence of Attitudes on Behavior


Object, Person, or Idea
Attitude Toward Object, Person, or Idea

Behavior Toward Object, Person, or Idea

Other Influences

Adapted from Exhibit 5-5: Influence of Attitudes on Behavior

Essential Elements of Attitudes

Cognitive

Affective

Behavioral

Cognitive - Facts we have gathered and

considered about the object, person, or idea Affective - Feelings one has about the object or person Behavioral - Intention to act in certain ways toward the object of the attitude

Components of Work Attitudes


Affective Component: How a worker feels

about work. Cognitive Component: What a worker believes to be true about work. Behavioral Component: What a worker thinks about how to behave at work.

Formation of Attitudes
Learning Self-Perceptions

Need for Consistency

Learning - experience and interaction with the

object of the attitude that results in rewards or punishments Self-perceptions - observations of ones own behavior Need for consistency - preference for ones attitudes to be consistent with one another

Self-perception theory
Argues that attitudes are used, after the fact, to

make sense of an action that has already occurred.

Formation of Consistent Attitudes


Accounting

Dan

Dans new colleague

Formation of a consistent work attitude


Exhibit 5-6: Formation of Consistent Attitudes

Dan likes accounting and has a favorable attitude

towards accounting. Dan works with a new person who dislikes accounting. Dan may form a negative attitude about his new colleague and towards those who dont like accounting.

Important Workplace Attitudes

Job Satisfaction

Organizational Commitment

Major job attitudes


Job satisfaction: a positive feeling about ones job

resulting from an evaluation of its characteristics Job involvement: the degree to which a person identifies with a job, actively participates in it, and considers performance important to self-worth Organisational commitment

Job satisfaction: Consequences


Exit

Voice
Loyalty Neglect/apathy

Job satisfaction: Consequences


Satisfaction and performance

Satisfaction and OCB


Satisfaction and customer Satisfaction and absenteeism Satisfaction and turnover

Organisational commitment
The degree to which an employee identifies with

a particular organization and its goals and wishes to maintain membership in the organisation
Affective commitment: emotional attachment Continuance commitment: perceived economic

value Normative commitment: an obligation to remain with the organisation for moral or ethical reasons

Reasons for Commitment


Normative Commitment Affective Commitment Continuance Commitment

Attitude Change
Persuasive communication

Attitude Change
Cognitive dissonance: any incompatibility between

two or more attitudes or between behaviour and attitudes Does behaviour always follow for attitudes? mediating variables:
Importance of the attitude Specificity Accessibility Social pressures Direct experience

Persuasive Communication
Message Communicator Situation Target

Qualities For Attitude Change



Communicators overall credibility Trust of the intentions of the communicator Similar interests or goals Attractiveness of the communicator

Sometimes it is the message

Cognitive Dissonance
An uneasy feeling produced when a person behaves in

a manner inconsistent with an existing attitude Three key conditions for change:

The behavior must be substantially inconsistent


with the attitude The inconsistent behavior must cause harm or have a negative consequence for others The inconsistent behavior must be voluntary and not forced

Values
Abstract ideals related to proper life goals and

methods for reaching those goals More general than attitudes Not related to specific objects or situations Abstract ideals May underlie groups of attitudes

Types of Values

Means values
(Behaviors one ought to use)
Ambition and hard work Open-mindedness Cheerfulness Competence Cleanliness and others

End values
(Personal goals one ought to have)
Prosperity Stimulating, active life Achievement World peace Harmony in nature and art and others

Types of Personal Values

Exhibit 5-7

Types of Personal Values

End (Goal) Values Prosperity Stimulating, active life Achievement World peace Harmony in nature and art Equality Personal and family security Freedom Happiness

Means (Behavior) Values Ambition and hard work Open-mindedness Competence Cheerfulness Cleanliness Courageousness Forgiving nature Helpfulness Honesty

Adapted from Exhibit 5-6 Formation of Consistent Attitudes

Types of Personal Values

Exhibit 5-7

Types of Personal Values

End (Goal) Values Inner peace Mature love National security Pleasure and enjoyment Religion and salvation Self-respect Social respect Friendship Wisdom

Means (Behavior) Values Imagination Independence and self-reliance Intelligence Rationality Affection and love Obedience and respect Courtesy Responsibility Self-discipline

Adapted from Exhibit 5-6 Formation of Consistent Attitudes

Values
Hofstedes Model of National Culture
Individualism versus Collectivism Power Distance Achievement versus Nurturing Orientation

(masculinity vs. femininity) Uncertainty Avoidance Long-Term versus Short-Term Orientation

Hofstedes Model
Individualism - values individual achievement,

freedom, and competition. Collectivism - values group harmony, cohesiveness, and consensus. Power Distance - the degree to which a country accepts the fact that power in institutions and organisations is distributed unequally.

Hofstedes Model
Achievement Orientation - valuing assertiveness,

performance, success, and competition.


Nurturing Orientation - valuing quality of life, warm

personal relationships, and service and care for the weak.

Hofstedes Model
Uncertainty Avoidance - degree of tolerance for

uncertainty and willingness to take risks.


Long-Term Orientation - valuing thrift in saving and

persistence in achieving goals. Short-Term Orientation - valuing personal stability and living for the present.

Hofstedes Model
Example -- United States vs India

US
Power Distance Individualism Achievement Orientation Uncertainty Avoidance Long-Term Orientation

Ind.

Low High High Low Low

High Low High Low High

4,5 Motivation

What is motivation?
Processes that account for an individuals intensity, direction and persistence of effort in toward attaining a goal.

Focus here on organisational goals


Intensity, direction persistence

What is Motivation?

Forces coming from within a person that account for the willful direction, intensity, and persistence of the persons efforts toward achieving specific goals, where achievement is not due solely to ability or to environmental factors

Definition
The psychological forces that determine the direction of a persons behavior in an organization, a persons level of effort, and a persons level of persistence.

Definition-contd.
Direction of Behavior - Which behaviors does a

person choose to perform in an organization? Level of Effort - How hard does a person work to perform a chosen behavior? Level of Persistence - When faced with obstacles, roadblocks, and stone walls, how hard does a person keep trying to perform a chosen behavior successfully?

Equation
Persons level of performance is a function (f) of both ability and motivation:
Performance = f (Ability x Motivation)

Environmental factors also play a role

Theories of Motivation
Content Theories
Maslows need hierarchy

Alderfers ERG theory


McClellands need theory Herzbergs two-factor theory

Process Theories
Expectancy theory Equity theory Goal-setting theory

Need Theories
A group of content theories about work motivation

that focus on workers needs as the sources of motivation. These theories attempt to explain what motivates workers.

Maslow
Best known theory of motivation in management

circles Hierarchy of five needs:


Physiological Safety Social or Belongingness Esteem Self-Actualisation

Lower order needs and higher order needs

Maslows Need Hierarchy


SelfActualization Esteem Needs

Social and Belongingness Needs


Safety Needs

Physiological Needs

Maslow-contd.
Physiological Needs
Basic needs for things such as food, water and

shelter that must be met for survival


Safety Needs
Needs for security, stability and a safe environment

Belongingness Needs
Needs for social interaction, friendship, affection

and love

Maslow-contd.
Esteem needs
The needs to feel good about oneself and ones

capabilities, to be respected by others, and to achieve recognition and appreciation


Self-Actualisation needs

The needs to achieve ones full potential as a human being

Alderfer
Core needs:
Existence (similar to Maslows physiological and

safety) Relatedness (Maslows social and esteem) Growth (self-actualisation and development)
No rigid hierarchy
Both Maslow and Alderfer are intuitively

appealing but empirical support low

ERG Theory
Existence Needs Relatedness Needs Growth Needs

Satisfaction and Progression


Frustration and Regression

ERG Theory
People are motivated by three hierarchically

ordered types of needs: existence needs (E), relatedness needs (R), and growth needs (G). Usually people must satisfy needs at the lower levels before being strongly motivated by higherlevel needs. However, frustration at higher levels can lead people to be motivated by lower-level needs

Comparison of Two Theories


SelfActualization Esteem Needs Social and Belongingness Needs Relatedness Needs Growth Needs

Safety Needs
Existence Needs Physiological Needs Maslows Need Hierarchy Alderfers ERG Theory

Adapted from Exhibit 6-1: Maslows Need Hierarchy and Alderfers ERG Theory Compared

MacGregor: Th. X and Th. Y


Theory X assumptions:
Employees dislike work, wish to avoid it So they must be coerced to work Employees will avoid responsibilities and seek

direction Place security as main concern and have little ambition

MacGregor-contd.
Theory Y assumptions:
Work is as natural as rest or play People will exercise self-direction if they are

committed to the objectives The average person can learn to accept responsibility The ability to make innovative decisions is dispersed throughout the organisation-it is no monopoly of management

McClellands Needs Theory


Need for achievement Need for power Need for affiliation

People with a high need for achievement -

Prefer to set their own goals. Set goals of moderate difficulty that are achievable. Like to solve problems rather than leave the results to chance. Are more interested in achieving the goal than in the associated rewards. Prefer situations in which they receive regular, concrete feedback on their performance. Are positive thinkers who find workable solutions to lifes hurdles and challenges. Take a strong personal responsibility for their work.

People with a high need for affiliation - Have a

strong desire to be liked and to stay on good terms with most other people. Tend not to make good managers because they often treat different people in different ways (for example, may apply inconsistent rules). Are more concerned with initiating and maintaining personal relationships than with focusing on the task at hand.

People with a high need for institutional

power - Are concerned about the functioning of the organization and have a desire to serve others. Are controlled in their exercise of power. People with a high need for personal power - Desire to influence others for their own personal gain. Are more impulsive in exercising power. Show little concern for other people. Are focused on obtaining symbols of prestige and status (such as big offices).

Best known: n-ach


Have the desire to do things better Seek situations where they can set moderately

challenging goals; receive feedback; assume personal responsibility

McClelland-contd.
Comments
Some evidence that high achievers are successful

in entrepreneurial activities; but may not be good managers Needs for affiliation and power may also be related: best managers are high in n-Pow and low in n-Aff Can N-ach be trained? Or is it entirely due to early childhood experiences?

Conclusion
People with a high need for institutional power are

particularly good at
Increasing morale
Creating clear expectations Getting others to work for the good of the

organization
Effective managers have both a high need for

achievement and a high need for institutional power

Two-Factor Theory
Emphasizes two sets of rewards or outcomes

those related to job satisfaction and those related to job dissatisfaction The two sets are not opposite ends of the same continuum but are independent states Job factors leading to satisfaction are different from those leading to dissatisfaction, and vice versa

Herzberg: Two-factor theory


Also called Motivation-Hygiene Theory
Herzberg asked people to describe in detail

situations when they felt very good and when they felt very bad about their jobs Found different factors for good and bad Not satisfaction vs. dissatisfaction, but satisfaction vs. no satisfaction and no dissatisfaction vs. dissatisfaction

Motivators also called satisfiers, lead to greater

job satisfaction Hygiene factors also call dissatisfiers, when absent or missing lead to job dissatisfaction

Two-Factor Theory
Motivators
When increased, lead to greater satisfaction

Hygiene Factors
When deficient, lead to greater dissatisfaction

Achievement Recognition

Responsibility
Opportunity for advancement or promotion

Pay Technical supervision

Working conditions
Company policies and procedures relationships with others

Challenging work Potential for personal


growth

Interpersonal Status Security

Herzberg-contd.
Sources of satisfaction (descending order)
Achievement Recognition Work itself Responsibility

Advancement
Growth

Herzberg-contd.
Sources of Dissatisfaction (descending)
Company policy and administration Supervision; relationship with supervisors Work conditions Salary

Relationship with peers; subordinates


Status Security

Herzberg-contd.
Criticisms of Herzberg:
Assumes a positive relationship between

satisfaction and productivity Unreliable methodology


All the above theories (Maslow, Alderfer,

Herzberg) are intuitively appealing but not backed up by hard data


All the above theories are part of

management folklore; hence their importance

Process Theories
Expectancy Equity

Goal-Setting

Expectancy Theory
A process theory about work motivation that

focuses on how workers make choices among alternative behaviors and levels of effort.

Expectancy theory Vrooms theory that suggests

motivation is a function of an individuals expectancy that a given amount of effort will lead to a particular level of performance, instrumentality judgments (perceived connections) that indicate performance will lead to certain outcomes, and the valence (value) of outcomes.

Expectancy Theory-contd.
Key terms:
Valence: the desirability of an outcome Instrumentality: a perception about the extent to

which performance of one or more behaviours will lead to the attainment of a particular outcome. Expectancy: a perception about the extent to which effort will result in a certain level of performance.

Expectancy - subjective probability that effort will

lead to performance Instrumentality - subjective probability that a given level of performance will lead to certain outcomes Valence - An Individuals expected satisfaction associated with each outcome resulting from performance

Expectancy Theory
Effort-performance:
Do individuals believe that their inputs will result in a

given level of performance?


Performance-reward:
Do individuals believe that performance at this level will

lead to obtaining outcomes they desire?

Expectancy Theory
MF = E x (I x V)
MF = Motivational Force I = Instrumentality E = Expectancy V = Valence
V1

I1

Outcome
V2 Outcome

MF =

Effort

Performance

I2 I3

V3
Outcome

Adapted from Exhibit 6-2: Expectancy Theory

Expectancy Theory
To increase motivation
Heighten expectancy by increasing associates beliefs

that exerting effort will lead to higher levels of performance Increase instrumentalities by clearly linking high performance to outcomes Increase valence by providing outcomes that are highly valued

Expectancy Theory-contd.

Equity Theory
A process theory about work motivation that

focuses on workers perceptions of the fairness of their work outcomes and inputs. (J. Stacy Adams)
According to this theory what is important is the way

a worker perceives his outcome/input ratio compared to that of another person Outcome/input ratio is the relationship between what a worker gets from a job and what he contributes to the job

Equity Theory-contd.
Two basic types of inequity
Overpayment inequity: when a person perceives

that their outcome/input ratio is greater than the ratio of the referent Underpayment equity: exists when a person perceives that their outcome/input ratio is less than the ratio of the referent

Equity Theory-contd.
Ways to restore equity:
Workers change their inputs or outcomes Change their referents inputs or outcomes Change their perceptions of inputs and outcomes Workers change their referent

Workers leave the organisation or force the referent

to leave

Equity Theory-contd.
Implications:
Because inputs are likely to vary across workers

outcomes should also vary. Do not give all workers at a given level or holding the same title the same level of outcomes unless their inputs are identical Distribute outcomes to workers based on their inputs to their jobs and the organisation. Strive to maintain equity for maximum motivation

Equity Theory-contd.
Implications:
Because inputs are likely to vary across workers

outcomes should also vary. Do not give all workers at a given level or holding the same title the same level of outcomes unless their inputs are identical Distribute outcomes to workers based on their inputs to their jobs. Strive to maintain equity for maximum motivation

Equity Theory-contd.
Because it is perception of equity that drives

motivation, frequently monitor and assess workers perceptions about relevant outcomes and inputs Realise that failure to recognise above average levels of inputs has major motivational consequences

Equity Theory-contd.
Equity theory focuses on distributive justice but

attention now on organisational justice, that is overall perception on what is fair in the workplace.
Procedural justice: the perceived fairness of the

procedures used to make decisions about distribution of outcomes The extent to which managers explain their decisions to workers determine perceptions of fairness

Equity Theory
Motivation is based on a persons assessment of the ratio of the outcomes received (pay, status) for inputs on the job (effort, ability) compared to the same ratio for a comparison other
My Outcomes My inputs Others Outcomes

vs.

Others Inputs

Equity Theory
Perceived inequity, employees may:
Increase or decrease inputs

Change their outcomes


Distort perceptions of inputs and/or outcomes Distort perceptions of others inputs and/or outcomes

Change the referent others


Leave the organization

Reactions to Inequity
Sensitives pay a great deal of attention to outcome-input ratios, motivated to resolve any inequity favorable or unfavorable Benevolents tolerant of inequity that is unfavorable but not comfortable with inequity that favors them Entitleds do not tolerate unfavorable inequity but are comfortable with inequity that favors them

Reactions to Equity
Feelings of equity frequently lead to outcome satisfaction and job satisfaction, organizational commitment, and organizational citizenship behaviors. Organizational Citizenship an associates willingness to engage in organizationally important behaviors that go beyond prescribed job duties helping co-workers, expending extra effort, etc.

Distributive Justice
A form of justice that relates to perceptions of fairness in outcomes. Often tied to perceptions of inequity.

Procedural Justice
The degree to which people think the procedures used to determine outcomes are fair. Some rules:
Based on accurate information
Procedures free from bias Procedures applied consistently Voice in the decision process Formal grievance procedures

Ethical code Treated with respect

Procedural Justice

Given reasons for decisions

Goal-Setting Theory
Challenging and specific goals increase human performance because they affect attention, effort, and persistence. To be effective, managers should address:

Goal difficulty Goal specificity Goal commitment Participation in setting goals Feedback

Goal difficulty how difficult should the performance goal


be. Should the goal be easy, moderately difficult, or very difficult to achieve? Goal specificity how specific should the expected outcome be (e.g. number of parts assembled), or can goals be more loosely defined (do your best)? Goal commitment what will make associates commit to goals? Participation in setting goals how important is it for associates to have input in selecting the goals and levels of performance to be achieved? If important, how should they be involved? Feedback to what extent should associates be informed of their progress as they work toward the performance goals?

Factors Affecting Goal Commitment


Factors Increasing the Desirability of Attaining a Given Goal Factors Increasing the Perceived Ability of Attaining a Given Goal

Adapted From Exhibit 6-3: Factors Affecting Goal Commitment

Conclusions
Feedback on performance, even in the absence of established goals, is likely to have a positive effect on motivation. Feedback is especially important when performance goals exist and when they are relatively difficult to achieve.

Goal-setting Theory
A theory that focuses on identifying the types of

goals that are most effective in producing high levels of motivation and performance and why goals have these effects.
Locke argued that intentions to work towards a goal

are a major source of motivation Specific goals produce a higher level of effort Intentions articulated in terms of difficult and specific goals are a motivating force

Implications for Management


Be sure that a workers goals are specific and

difficult, whether set by you, by the worker, or by both of you. Express confidence in your subordinates abilities to attain their goals, and give subordinates regular feedback on the extent of goal attainment.

Implications-contd.
When workers are performing difficult and

complex tasks that involve learning, do not set goals until the workers gain some mastery over the task.

Making Visible Change


Motivate employees by:
Providing a well-defined career path

Providing valued rewards and benefits Setting specific, challenging goals Providing support to help build client base Avoiding layoffs of associates Engaging associates in a variety of organizational decisions

Experiencing Strategic OB

Motivating Associates: Integration of Theory


Motivation Practices
Motivation Theories
Maslow ERG McClelland Herzberg

Find Rewards

Tie to Performance

Redesign Jobs

Provide Feedback

Clarify Goals

X
X X

X
X X

X
X X

Expectancy
Equity Goal Setting

X
X

X
X

X
X

X
X

Adapted from Exhibit 6-4: Motivation Factors Resulting from Motivation Theories

Motivating Associates: Integration of Theory


Find meaningful individual rewards

Tie rewards to performance


Redesign jobs job enlargement and job

enrichment Provide feedback Clarify expectations and goals some use MBO

Job Enrichment
Richard Hackman

Skill Variety

Task Identity

Task Significance
Greg Oldham

Autonomy

Feedback

Connecting People in the Workplace


Deloitte recommends:
Design physical space that fosters connections Build an organizational cushion of time and space Cultivate communities Stimulate rich networks of high-quality relationships Provide collaboration tools

Thoughts?

Experiencing Strategic OB

Provide Feedback
Feedback is most effective when provided in

conjunction with goals Feedback should be repeated and provided at regular intervals Feedback should contain information about how associates can improve their performance Feedback should come from a credible source Feedback should focus on the performance, not the person

5a Stress
The experience of opportunities or threats that

people perceive as important and also perceive they might not be able to handle or deal with effectively. A condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important

Workplace Stress Defined


Stress a feeling of tension that occurs when

a person assesses that a given situation is about to exceed his or her ability to cope and consequently will endanger his or her wellbeing. Job stress - the feeling that ones capabilities, resources, or needs do not match the demands of the job. Acute stress a short-term stress reaction to an immediate threat Chronic stress a long-term stress reaction resulting from ongoing situations

Potential Sources of Stress


Personal Stressors

Job-related Stressors
Group- and Organization-related Stressors Stressors Arising out of Work-Life Linkages

Personal Stressors
Getting married

Getting divorced
Death of a close friend/relative Buying a home Moving Serious illness

Job-related Stressors
Role Conflict

Role Ambiguity
Work Overload Work Under-load Promotions Demotions-sidelining Challenging Job Assignments

Group and Organization-related Stressors


Misunderstandings

Conflict
Interpersonal Disagreements Uncomfortable Working Conditions

Work-Life Linkage Stressors


Work Life - Personal Life Role Conflict

Family Responsibilities
Work Requests in Violation of Personal Values

Consequences

Managing Stress
Individual Approaches

Organizational approaches
Problem-focused coping: the steps people take

to deal directly with and act on the source of stress. Emotion-focused coping: the steps people take to deal with and control their stressful feelings and emotions.

Problem-Focused Coping Strategies for Individuals


Time Management

Getting Help From a Mentor


Role Negotiation

(The process through which workers actively try to change their roles in order to reduce role conflict, role ambiguity, overload, or underload.)

Emotion-Focused Coping Strategies for Individuals


Exercise

Meditation
Social Support Clinical Counseling Nonfunctional Strategies

Problem-Focused Coping Strategies for Organizations


Job Redesign and Rotation

Reduction of Uncertainty
Job Security Company Day Care Flexible Work Schedules and Job Sharing

Emotion-Focused Coping Strategies for Organizations


On-Site Exercise Facilities

Organizational Support
Employee Assistance Programs Personal Days and Sabbaticals

Coping Strategies

6 Group
Group: two or more individuals who have come

together to achieve particular objectives Formal group: a designated work group defined by an organisations structure

Informal group: a group that is neither formally

structured nor nor organisationally determined; such a group appears in response to the to the need for social contact Command group: a group composed of individuals who report directly to a given manager

Groups
Task group: people working together to complete

a job task Interest group: People working together to attain a specific objective with which each is concerned Friendship group: Peole brought together because they share one or more common characteristics

Group - Two or more interdependent

individuals who influence one another through social interaction. Team - Two or more people, with work roles that require them to be interdependent, who operate within a larger social system (the organization), performing tasks relevant to the organizations mission, with consequences that affect others inside and outside the organization, and who have membership that is identifiable to those on the team and those not on the team.

Formal groups - Groups to which members

are formally assigned Informal groups - Groups formed spontaneously by people who share interests, values, or identities Identity groups - Groups based on the social identities of members Virtual teams - Teams in which members work together but are separated by time, distance, or organizational structure

Develop a virtual team charter that describes

everyones roles, the decision-making process, and the goals of the team project. This makes it clear who is supposed to be doing what and to what end. Provide reports on project progress when people are working apart, they may lose track of how the entire project is progressing and what contributions others are making. Set up communication rules such as blackout times when, due to time-zone differences, everyone is not available. These rules should also include acceptable time periods for responding to other inquiries and requests.

Humanize everyone on the team share

pictures and personal information do this early on. Create a social networking site so people can chat off the job. Handle serious conflicts face-to-face Have as much face-to-face communication as possible Reward positive team behavior and celebrate team success when most interaction takes place electronically, it is easy to forget about congratulating others for a job well done. Take time to celebrate the teams successes.

Production teams groups of associates who

produce tangible products Service teams groups of associates who engage in repeated transactions with customers Management teams groups of senior-level managers who coordinate the activities of their respective units Project teams groups of associates (often from different functional areas or organizational units) who temporarily serve as teams to complete a specific project Advisory teams groups of associates formed to advise the organization on certain issues

Knowledge Criteria reflect the degree to which the

team continually increases its performance capabilities. Teams are more effective when they share knowledge and understanding. Affective Criteria address the question of whether team members have a fulfilling and satisfying team experience. One important faction is the affective tone or general emotional state of the team. Outcome Criteria refer to the quantity and quality of the teams output or to the extent to which the teams output is acceptable to clients. Should reflect synergy. Is the Team Needed? does the project really need a team or would one person be preferred?

Type of task Diversity works best when tasks

require innovation and creativity. Outcome Diversity may have a positive effect on performance but a negative effect on members reactions to the team and subsequent behaviors, such as turnover. Time Diversity can have negative effects in the short run but positive effects in the long run. Type of diversity If team members are diverse on factors that lead them to have different performance goals or levels of commitment to the team, or to form subgroups, the relationship between diversity and performance will be negative.

The relationship between members personalities

and team performance can be quite strong, but the exact relationship depends on the type of task that the team is trying to accomplish. Researchers have several ways of determining the personality of the team; however, all methods are based on aggregating individuals scores.

The personality traits that have important effects

on team performance include agreeableness (the ability to get along with others and cooperate) and emotional stability (the tendency to experience positive rather than negative emotions).

Also, the greater the degree of

conscientiousness among team members, the higher the teams performance tends to be. This is particularly true when the teams task involves planning and performance rather than creativity. It appears that agreeable team members contribute to team performance by fulfilling team maintenance roles, whereas conscientious team members perform critical task roles.

Team-level extraversion and openness to

experience are positively related only to performance on decision-making and creative tasks.

There is no one ideal number of team members for all

situations. Many studies have examined the relationship of team size and team performance, and two lines of thought have emerged. The first suggests that the relationship between team size and team performance is shaped like an inverted U. Thus, as teams become larger, the diversity of skills, talents, ideas, and individual associate inputs into the task is greater, leading to improved performance. However, as the number of team members increases, the need for cooperation and coordination also increases. At some point, the effort that goes into managing the team will outweigh the benefits of having more members, and team performance will begin to decline.

Other researchers, however, have found that

performance increases linearly with team size without ever showing a downturn. This linear relationship most likely results when a team avoids the problems associated with too many members, such as social loafing, poor coordination, and worsening communication. Thus, the relationship between team size and team performance depends on other factors, such as the task or the environment.

Divisible tasks tasks that can be separated into

subcomponents Unitary tasks tasks that cannot be divided and must be performed by an individual Maximization tasks tasks with a quantity goal Optimization tasks tasks with a quality goal Additive tasks those in which individual inputs are simply added together Compensatory tasks those in which members individual performances are averaged together to arrive at the teams overall performance Disjunctive tasks those in which teams must work together to develop a single, agreed upon product or solution Conjunctive tasks those in which all members must perform their individual tasks to arrive at the teams overall performance

Cohesion refers to members attraction to the team. Interpersonal cohesion team members liking or attraction to other team members. Task cohesion team members attraction and commitment to the tasks and goals of the team. Conflict behaviors or beliefs of a team member that are unacceptable to other team members. More detail in Chapter 12. Personal conflicts team members simply do not like each other. Substantive conflicts occurs when a team member disagrees with anothers task-related ideas or analysis of the teams problems or plans. Procedural conflicts occur when team members disagree about policies and procedures. Social facilitation the presence of others improves an individuals performance. Social loafing a phenomenon wherein people put forth less effort when they work in teams than when they work alone. Communication sharing information in order to coordinate productive efforts. Can be both formal and informal.

Forming (Orientation) - Members become

familiar with each other Storming (Conflict) - Disagreement and tension among members Norming (Structure) - Cohesiveness and roles develop Performing (Work) - High task and goal orientation Adjourning (Dissolution) - Task completion and termination of roles

Group: Stages of development


Five stage group development: The five distinct

stages groups go through: forming, storming, norming, performing and adjourning Forming: the first stage in group development, characterised by much uncertainty

Storming stage: the second stage characterized

by intra-group conflict Norming stage:Third stage characterised by close relationships and cohesiveness Performing stage: Now the group is fully functional Adjourning stage: characterised by concern with wrapping up activities rather than task performance

Punctuated Equilibrium Model (PEM) a

model of group development that suggests that groups do not go through linear stages but that group formation depends on the task at hand and the deadlines for that task.

Top Management Support Explicit vision and strategic plan - Serves as the

basis for determining desirable team outcomes. Results-oriented measurement of outcomes Expects all leaders in organization to do same. Actively include associates at all levels in decision-making process - All decisions that affect associates also affect team performance. Make explicit decision about using teams - Tie the decision to business objectives. Actively manage and review support systems for teams - Problems in teams such as needed resources will be revealed in review.

Support Systems Technology - Teams must have access to technology for performing

their tasks, including tools and computer software. Information systems - Teams often need more (or less) information than they possess. It is crucial to provide a user friendly information system. Selection of team members - Tailor the staffing process to the type of team. Conduct teamwork analysis to identify the knowledge, skills, and abilities needed for both task work and team work. Consider political issues and who is to do the assessment of potential team members. Training - Team-building training generally focuses on four different types of skills: (1) goal-setting skills; (2) interpersonal skills; (3) problemsolving skills; and (4) role-clarification skills. Rewards - If people are to work together effectively as a team, they must be rewarded as a team, in addition to individual rewards. Team reward systems may include profit-sharing plans. Leadership - Successful team leaders perform three roles: (1) team liaison; (2) direction setting; and (3) team operational coordinator.

Group properties 1
Roles: a set of expected behaviour patterns

attributed to someone occupying a given position in a social unit


Role identity: ceratain attitudes and behaviours

consistent with a role Role perception: an individuals view of how he or she is supposed to act in a given situation

Role expectations: how others believe a person

should act in a given situation; psychological contract role conflict: A situation in which an individual is confronted by divergent role expectations
Zimbardos experiment

Group properties-2 Norms


Hawthorne studies

Norms: acceptable standards of behaviour within

a group that are shared by the groups members Conformity


Asch studies

Group properties-3 Status


Status: Socially defined position or rank given to

members by others Determinants: The power a person wields over others a persons ability to contribute to a groups goals An individuals personal characteristics

Group property 4 Size


Social loafing: free rider

Group property 5 Cohesiveness


A cohesive group is not a productive group

Group decision making


Strengths: Groups generate more complete

information and knowledge Weaknesses: conformity, domination by few, ambiguous responsibility Group think: norm for consensus overrides the realistic appraisal of alternative courses of action Group shift change in decision risk of individual as a member of a group

Teams
Work group: a group that interacts with primarily

to share information and to make decisions to help each group member to perform Work team: a group whose individual efforts result in a performance that is greater than the um of the individual inputs

Types of teams
Problem solving teams

Self-managed work-teams
Cross functional teams Virtual teams

Types of teams
Problem solving teams Groups of 5 to 12

employees from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment Self-managed work teams: Groups of 10 to 15 people who take on responsibilities of their former supervisors

Types of teams
Cross functional teams: employees from about

the same hierarchical level, but from different work areas, who come together to accomplish a task Virtual teams: teams that use computer technology to tie together physically dispersed members in order to achieve a common goal.

Creating effective teams


Context:
Adequate resources Leadership and structure Climate of trust Performance evaluation and reward systems

Creating effective teams


Composition
Abilities of members Personality Allocating roles Diversity

Size of teams
Member flexibility Member preferences

Creating effective teams


Work design
Autonomy Skill variety Task identity Task significance

Creating effective teams


Process
Common purpose Specific goals Team efficacy Conflict levels

Social loafing

Individuals to team players


Selection

Training
Rewards

Team building and team based work


TBW emphasizes on

the need for building effectively successful organizations based on teams

Chapter 11

Groups and Teams


Michael A. Hitt C. Chet Miller Adrienne Colella
Slides by Ralph R. Braithwaite
11-1

Implications
Determine what outcomes your followers are

trying to obtain from their jobs, and make sure that you have as much control as possible over those outcomes. Distribute desired outcomes to your subordinates when they attain their work goals and perform at a high level.

Implications-contd.
Raise your followers expectations by clarifying

how they can attain their work goals, removing obstacles that hamper goal attainment and high performance, and expressing confidence in their ability to succeed. Tailor your leadership behaviors to the characteristics of your subordinates and to the situation.

Implications-contd.
When determining how much to allow your

subordinates to participate in decision making, consider the decision to be made, the subordinates involved, and the information you need to make a good decision.

Implications-contd.
Realize that participation in decision making can

contribute to your subordinates growth and development on the job but can also be timeconsuming. Develop high-quality relationships with as many of your subordinates as possible - that is, have a big in-group and a small out-group.

7 Leadership: Basics
Leadership: The exercise of influence by one

member of a group or organization over other members to help the group or organization achieve its goals. Leader: An individual who is able to influence group or organizational members to help the group or organization achieve its goals.

The Nature of Leadership


The process of providing general direction and influencing individuals or groups to achieve goals.

Leadership-contd.
Leadership is the ability to influence a group

toward the attainment of goals


Group: Two or more individuals who are

interacting and interdependent and who have come together to achieve particular objectives

Leadership: Basics-contd.
Trait Approach

Behavioural Approach
Fiedlers Contingency Model Situational Theory Leader-Member Exchange Theory Path-Goal Theory Vroom and Yetton Model

Trait Theory of Leadership


Concept that certain traits help make people effective leaders. Early research suggested that the traits fell into three categories: Physical Characteristics Personality Characteristics

Some Criticism

Abilities

Physical characteristics such as height and

appearance Personality characteristics such as self-esteem and dominance Abilities such as intelligence and verbal fluency Criticized because the methodology used to identify traits was poor, list of traits associated with leadership grew so large it became meaningless, the results of the research were inconsistent, and no leadership trait was found to relate consistently to unit or organizational performance and different situations seemed to require different traits.

Trait theories
Intelligence Task-Relevant Knowledge Dominance Self-Confidence Energy/Activity Levels

Tolerance for Stress


Integrity and Honesty Emotional Maturity/Emotional intelligence

Traits Associated with Leadership


Energy Appearance Intelligence Judgment Verbal fluency Achievement drive Adaptability Aggressiveness Enthusiasm Extroversion Initiative Insightfulness Integrity Persistence Self-confidence Sense of humor Tolerance for stress Interpersonal skills Prestige Tact

Adapted from Exhibit 8-1: Common Traits Associated with Leadership

Six Core Traits of Leadership


Drive

Leadership Motivation

Integrity

SelfConfidence

Cognitive Ability

Knowledge of the Domain

Drive Ambition, persistence, tenacity, initiative Leadership motivation - Desire to lead, influence others,

assume responsibility, and gain power; two types - socialized power motive, personalized power motive Integrity Truthfulness, honesty, maintain consistency between what they say and what they do Self-confidence - Confident in their actions and show that confidence to others, learn from their mistakes, react positively to stress, even-tempered, display appropriate emotions Cognitive ability - High degree of intelligence, process complex information, deal with changing environments Knowledge of the domain - Knowledge of business in which they are engaged, make better decisions, anticipate future problems, understand implications of their actions

Trait theories-contd.
Personality traits

Adaptability Adjustment (normal) Assertiveness; Dominance Emotional balance and control Originality and creativity Self-confidence Independence (non-conformer) Personal integrity

Trait theories-contd.
Abilities
Intelligence Judgement and decisiveness Knowledge Fluency

Trait theories-contd.
Social skills
Ability to enlist co-operation Administrative ability Cooperativeness Popularity and prestige

Sociability
Tact and diplomacy

Trait theories: criticisms


For at least some traits, it is not clear which

comes first, being in a leadership position or possessing the trait in question.


The trait approach provides little guidance

concerning what advice or training to give current or soon-to-be leaders.

Behavioural Theories
These focus on what a leader actually does Early behavioural theory (Iowa; Lewin, et al)
Authoritarian: L. makes decision alone and tells

subordinates what they are to do Democratic: L. actively involves subordinates in the decision making process, sharing problems with them, soliciting their inputs and sharing the authority for taking decisions

Lewin, Lippitt and White


Laissez-faire: the leader avoids making a decision

whenever possible and leaves it to subordinates to make individual decisions on their own. Leader is withdrawn.

Behavioral Theories of Leadership


University of Michigan Studies Ohio State University Studies

Behavioural Theories: U Mich


Basically one dimension (polar opposites)
Employee oriented: the leader is concerned about

the welfare and development of subordinates, etc. Production oriented leaders emphasize planning, goal setting and meeting schedules. They follow a close style of supervision.

U. of Michigan-contd.
Employee centered:
Concern with subordinate welfare and development Two-way communication with subordinates Supportive and non-punitive Responsibility and authority delegated to

subordinates

U. of Michigan-contd.
Production centered
Concern with planning, goal-setting and meeting

schedules. Gives explicit instructions and makes use of power Evaluative of subordinates Stresses production

Job-centered leadership style a behavioral

leadership style that emphasizes employee tasks and the methods used to accomplish them Employee-centered leadership style - a behavioral leadership style that emphasizes employees personal needs and development of interpersonal relationships

University of Michigan Studies


Job-Centered Leadership Style
Employee tasks

Methods for accomplishment

Employee-Centered Leadership Style


Employees personal needs Development of interpersonal relationships

Behavioural Theories: OSU


Two Dimensions (seen as independent)
Consideration: Behaviour indicating that a leader

trusts, respects, and values good relationships with his or her followers. Initiating Structure: Behaviour that a leader engages in to make sure that work gets done and subordinates perform their jobs acceptably (task oriented)

OSU-contd.
Considerate:
Friendliness Consults with subordinates Recognises subordinates Open communication

Supportiveness
Represents subordinate interests to higher

authorities

OSU-contd.
Initiating structure:
Planning Coordinating Directing Problem-solving

Clarifying subordinate roles


Criticizing poor work Pressurizing subordinates

Ohio State University Studies


Consideration
Leaders express friendship Develop mutual trust and respect Strong interpersonal relationships with staff

Initiating Structure
Well defined patterns of organization and

communication Define procedures Delineate relationships with staff Emphasize goals and deadlines Assign tasks and identify performance expectations

Consideration - a behavioral leadership style

demonstrated by leaders who express friendship, develop mutual trust and respect, and have strong interpersonal relationships with those being led Initiating structure - a behavioral leadership style demonstrated by leaders who establish well-defined patterns of organization and communication, define procedures, and delineate their relationships with those being led

Behavioral Theories of Leadership


High

Consideration

A
(Employee-Centered Style)

C
(Job-Centered Style) High Initiating Structure

Low

Adapted from Exhibit 8-2: Comparison of Consideration and Initiating Structure with EmployeeCentered and Job-Centered Concepts

Behavioural theories-concl.
These researches shifted focus from the kind of

person the leader is (trait theories) to what the leader does. They discovered some underlying themes or dimensions and the similarity of themes in these three research traditions is remarkable.

Behavioral Theories of Leadership


The Managerial Grid
Concern for people One of the two dimensions of leadership behavior of the managerial grid; similar to the behavioral styles of consideration and employee-centered leadership Concern for production One of the two dimensions of leadership behavior of the managerial grid; similar to the behavioral styles of initiating structure and job-centered leadership

The Managerial Grid


The best leadership style High Concern 9 8
9,9 style

Concern for People

6
5 4 3 2 Low Concern 1

Grid Training helps leaders 8, 7 move to a style high in both style Concern for people 2, 6 style Concern for production

4,3 style

1 2 3 Low Concern

8 9 High Concern

Concern for Production


Adapted from Exhibit 8-3: Blake and Moutons Managerial Grid

Contingency theories
These theories claim that the most effective

leader behaviour is contingent on the characteristics of the situation So we would want to fit the leader to the situation

Fiedlers Theory of Leadership


Effectiveness depends on leaders

behavioral style and the situation Leader style measured by the LPC (least preferred co-worker) scale Situational favorableness assessed by three things:
Leader-member relations Task structure Position power

Fiedlers Contingency Theory


The theory that leader effectiveness is

determined by both the personal characteristics of leaders and by the situation in which leaders find themselves. Devised a questionnaire called the Least Preferred Co-worker or LPC to determine whether a person is relationship-oriented or task-oriented.

Fiedler-contd.
A person is asked to think about and grade a

least preferred co-worker-someone with whom he has worked with or works with now It is found that some people grade the least preferred co-worker positively, (high LPC scorers) whereas others have a more negative impression.

Fiedler-contd.
According to Fiedler high LPC scorers are those

who are motivated towards close interpersonal relations (democratic, employee centered, considerate) Low LPC scorers are the opposite (authoritarian etc.)

Fiedlers LPC Scale


Esteem for Least Preferred Co-Worker
Cooperative

___:___:___:___:___:___:___:___
8 7 6 5 4 3 2 1

Uncooperative

Friendly

___:___:___:___:___:___:___:___
8 7 6 5 4 3 2 1

Unfriendly

Low LPC Score


Negative adjectives Task-oriented leader (task achievement needs first)

High LPC Score


More positive adjectives Relationship-oriented leader (interpersonal
relationship needs first)

Situational Characteristics
Leader-Member Relations
The degree to which a leader is respected, accepted, and

had friendly interpersonal relationships with followers


Task Structure
The degree to which tasks are broken down into easily

understood steps or parts


Position Power
The degree to which a leader can reward, punish,

promote, or demote individuals in the unit or organization

Fiedler's Situational Characteristics


Leader-Member Relations - The relationship

between a leader and his or her followers. Task Structure - The extent to which the work to be performed by a group is clearly defined. Position Power - The amount of formal authority a leader has.

Fiedler-contd.
These situational characteristics are arranged in a

hierarchy of importance Leader-Member Relations most imp. Next comes Task Structure Finally Position Power Situations range from very favourable for leader to very unfavourable

Fiedlers Contingency Theory of Leadership Effectiveness

Adapted from Exhibit 8-3: Fiedlers Contingency Model of Leadership Effectiveness

Fiedler-contd.
An evaluation of the three situational

characteristics will suggest that either a relationship-oriented leadership style or a task-oriented leadership style is best depending upon circumstances.

Fiedler-contd.
Task oriented style:
Best in the two extreme situations (I,II VIII)

Relationship-Oriented Leadership Style:


Best in the middle situations (III to VII)

Assign task-oriented leaders to very unfavourable

or to very favourable situations. Assign relationship-oriented leaders to moderately favourable situations.

Fiedler-contd.
If you or one of your subordinates is a

relationship-oriented leader in a very unfavourable situation, try to increase the favourability of the situation by improving leadermember relations, increasing task structure by clarifying goals or ways to achieve goals, or raising levels of position power.

Path-Goal Leadership Theory


Leadership Style Contingency Factors
Outcomes

Path-goal leadership theory a theory of

leadership based on expectancy concepts from the study of motivation, which suggests that leader effectiveness depends on the degree to which a leader enhances the performance expectancies and valences of his or her employees.

Leader Effectiveness
Leadership can effect employees expectancies and valences in several ways:
Assign tasks that have high value (valence) Support employees efforts (effort performance

expectancy) Tie rewards to goal accomplishment (performancereward instrumentality)

Path-Goal Leadership Theory


Leader Behaviors Situational Factors

Directive Leadership Supportive Leadership Achievement-Oriented


Leadership

Subordinate

Characteristics Work Environment Characteristics Effectiveness of leader behavior depends on these situational factors

Participative Leadership

Leader Behaviors: Directive Leadership Leadership behavior characterized by

implementing guidelines, providing information on what is expected, setting definite performance standards, ensuring individuals follow rules Supportive Leadership - Leadership behavior characterized by friendliness and concern for individuals well-being, welfare, and needs Achievement-Oriented Leadership - Leadership behavior characterized by setting challenging goals and seeking to improve performance Participative Leadership - Leadership behavior characterized by sharing information, consulting with those who are led, and emphasizing group decision-making Situational Factors: Subordinate Characteristics Needs, Locus of control, Experience, Ability Work Environment Characteristics - Task structure, Interpersonal relations in the group, Role conflict, Role clarity

Interaction of Leader Behavior and Situational Factors


Locus of Control Need for Affiliation Need for Security

Participative, Directive or Supportive Leaders

Need for Growth

Employee with Internal Locus of Control Participative Leader Employee with External Locus of Control Directive Leader Employee with High Need for Affiliation Supportive Leader Employee with High Need for Security Directive Leader Structured Task Work Environment Supportive Leader Unstructured Task Work Environment Directive Leader Employee with High Growth Need Strength Complex Task Work Environment Participative and Achievement Oriented Leader Employee with Low Growth Need Strength Complex Task Work Environment Directive Leader Employee with High Growth Need Strength Simple Task Work Environment Supportive Leader Employee with Low Growth Need Strength Simple Task Work Environment Supportive Leader

Interaction of Leader Behavior and Situational Factors


Situational Factors
Subordinate Characteristics
Internal locus of control External locus of control High need for affiliation High need for security

Characteristics of the Work Environment

Effective Leader Behaviors


Participative Directive Supportive Directive Supportive Directive Participative/ Achievement oriented Directive Supportive Supportive

Strengths
High growth need Low growth need High growth need Low growth need

Structured task Unstructured task Complex task Complex task Simple task Simple task

Adapted from Exhibit 8-4: Interaction of Leader Behavior and Situational Factors

Path-Goal Theory
A theory which describes how leaders can

motivate their followers to achieve group and organizational goals and clarifies the kinds of behaviours leaders can engage in to motivate followers.

Path-Goal Theory-contd.
It argues that the leader can influence the

satisfaction, motivation and performance of subordinates by:


Providing the subordinates with rewards Making attainment of these rewards contingent

upon the accomplishment of performance goals Helping subordinates to obtain rewards by clarifying the path to these goals

Path-Goal Theory-contd.
Effective leaders motivate their followers to

achieve group and organizational goals.


Effective leaders make sure that they have

control over outcomes their subordinates desire.

Path-Goal Theory-contd.
Effective leaders reward subordinates for

performing at a high level or achieving their work goals by giving them desired outcomes.
Effective leaders raise their subordinates beliefs

about their ability to achieve their work goals and perform at a high level.

Path-Goal Theory-contd.
In determining how to treat their subordinates and

what behaviours to engage in, effective leaders take into account their subordinates characteristics and the type of work they do. Effective style is one which complements the subordinates situation by providing direction and assistance

Path-Goal Theory-contd.
To achieve above the leader has to indulge in

different types of behaviour:


Directive Behaviour Supportive Behaviour Participative Behaviour

Achievement-Oriented Behaviour (this emphasises

excellence in the performance of subordinates)

Leadership: Contemporary Issues


Transactional Leadership

Charismatic Leadership
Transformational Leadership Authentic Leadership Gender and Leadership

Transactional Leadership
Leadership that motivates followers by

exchanging rewards for high performance and noticing and reprimanding subordinates for mistakes and substandard performance.

Transactional Leadership
A leadership approach that is based on the exchange relationship between followers and leaders. It is characterized by contingent behavior and active management-by-exception behavior. It is the degree to which leaders provide what followers want in response to good performance.

Four Characteristics of Transactional Leaders


Understand what followers want to receive
from their work, and attempt to give them what they desire, contingent on performance

Clarify links between performance and reward Exchange rewards and promises of rewards
for specified performance levels

Respond to the interests of followers only if


the followers are performing satisfactorily

Transactional Leadership
Contingent Reward Behavior
Clarify performance expectations

Reward followers when expectations are met

Active Management-by-Exception Behavior


Clarifies minimal performance standards Punishes when standards are not met

Consistently Monitors Performance

Transformational Leadership
Leadership that inspires followers to trust the

leader, perform behaviours that contribute to the achievement of organizational goals, and perform at a high level.

Transformational Leadership

A leadership approach that involves motivating followers to do more than expected, to continuously develop and grow, to increase self-confidence, and to place the interests of the unit or organization before their own. Involves charisma, intellectual stimulation, and individual consideration.

Transformational Leaders Do Three Things


Increase followers awareness of the importance of pursuing a vision or mission and the strategy required Encourage followers to place the interests of the unit, organization, or larger collective before their own personal interests Raise followers aspirations so they continuously try to develop and improve themselves while striving for higher levels of accomplishment

Characteristics
Intellectual Stimulation

Charisma

Individual Consideration

Charismatic Leader
A self-confident, enthusiastic leader able to win

followers respect and support for his or her vision of how good things could be.

Charismatic Leader-contd.
1.

2.

The behavioural components of Charismatic Leadership are interrelated and as such they form a constellation of components Leaders are charismatic when their vision is highly discrepant from the status quo yet remains within the latitude of acceptance for their followers

Charismatic Leader-contd.
3.

4.

Charismatic leaders may take high personal risks, incur high costs and engage in selfsacrifice to achieve a shared vision Charismatic leaders demonstrate expertise in transcending the existing order through use of unconventional or extraordinary means

Charismatic Leader-contd.
5.

Charismatic leaders engage in behaviours that are novel, unconventional and counternormative, and as such involve high personal risk or high probability of hurting their own self interest.

Charismatic Leader-contd.
6.

7.

Charismatic leaders engage in realistic assessments of the environmental resources and constraints affecting the realization of their visions. Charismatic leaders portray the status quo as negative or intolerable and the future vision as the most attractive and attainable alternative.

Charismatic Leader-contd.
8.

Charismatic leaders articulate their motivation to lead through assertive behaviour and expression of self confidence, expertise, unconventionality and concern for followers needs.

Charismatic Leader-contd.
9.

Charismatic leaders influence on their followers stems from the use of personal idiosyncratic power (expert power and referent power) rather than the use of position power (legal, coercive and reward power)

Charismatic Leader-contd.
10. Charismatic leaders exert idiosyncratic

personal power over their followers through entrepreneurial and exemplary behaviour rather than through consensus seeking or directive behaviour.

Charismatic Leader-contd.
11. Charismatic leaders act as reformers or agents

of radical changes and their charisma fades when they act as administrators (caretaker role) or managers (nudging role)

Charismatic Leader-contd.
12. Contextual factors that cause potential

followers to be disenchanted with the prevailing social order or cause followers to experience psychological distress, although not necessary for the emergence of charismatic leaders facilitate such emergence.

Charismatic Leader-contd.
13. Under conditions of relative social tranquility

and lack of psychological distress among followers the actions by a leader that foster or support an attribution of charisma facilitate the emergence of that leader as a charismatic leader. From Conger and Kanungo

Charismatic Leaders Inspire emotion and passion in followers



Get followers to identify with the leader Display confidence Communicate and live up to organizational values Optimistic and enthusiastic

Charisma

Intellectual Stimulation

Intellectual Stimulation

Increase the followers focus on problems and


develop new ways to solve them Reexamine assumptions Seek out different views Work to be innovative

Individual Consideration

Support and develop followers to improve selfconfidence and a desire to improve performance Provide individualized attention to followers Focus on followers strengths Act as teachers and coaches

Individual Consideration

Common Behaviors

Articulate clear, appealing vision Communicate the vision Delegate significant authority and responsibility Eliminate unnecessary bureaucratic restraints Provide coaching, training and developmental experiences Encourage open sharing of ideas and concerns Encourage participative decision making Promote cooperation and teamwork

Modify structure to promote key values and objectives

Transformational Leadership

The Effects

Transformational Leadership

Charisma Intellectual Stimulation Individual Consideration

Outcomes
Individual Outcomes Unit/Organization Outcomes

Transactional Leadership
Contingent Reward Behavior Active Management by Exception

Dynamism of the task/organizational environment

Adapted from Exhibit 8-5: The Effects of Transformational and Transactional Leadership

Authentic Leadership
They know who they are, know what they believe

in and value, and act on those values candidly and openly. They are ethical and inspire trust

Authentic Leaders

Guided by values that focus on doing

Thoughts?

whats right for their constituencies Try to act in accordance with their values Remain transparent Walk the talk Place equal weight on getting the task accomplished and developing associates Continuously develop themselves Have developed values and personal strengths they need to deal with ambiguous ethical issues
Experiencing Strategic OB

Trust
A positive expectation that the other will not

behave opportunistically
Positive expectation assumes knowledge and

familiarity Opportunistically refers to the inherent risk and vulnerability in any trusting relationship

What is trust?
Integrity:
honesty and truthfulness

Competence:
Technical and interpersonal knowledge and skills

Consistency:
Reliability, predictability and good judgment in

handling situations

What is trust?-contd.
Loyalty
Willingness to protect another person

Openness
Will the person give you the full truth

Types of Trust
Deterrence-based
Based on fear of reprisal if trust is violated

Knowledge-based
When one has adequate information about the

other to be able to predict his behaviour


Identification-based
Emotional connection: parties understand the

others intentions and appreciate their wants

Contemporary leadership roles


Team leadership

Mentoring: a senior employee who sponsors

supports and trains a junior Self leadership: a senior employee who sponsors and supports a less experienced employee

Challenges to the concept


Leadership as attribution

The idea that leadership is an attribution that

people make about other individuals Substitutes and neutralizers


Substitutes: make leaders unnecessary Neutralizers: makes it impossible for leader

behaviour to make any difference

8 What is Communication?
The sharing of information between two or more people to achieve a common understanding about an object or situation. Success occurs when the person receiving the message understands it in the way the sender intended.

This is a problem with communication from time to time.

Communication Process
Encoded Message Received Message

Sent Message Sender

Receiver

Communication Medium

Received Feedback

Feedback
Decoded Message

Adapted from Exhibit 9-1: Sent Message

Sender the person who wishes to communicate a message Receiver the person with whom the sender wishes to

communicate Encoding the process whereby a sender translates the information he or she wishes to send into a message Communication medium or channel the manner in which a message is conveyed Decoding the process whereby a receiver perceives a sent message and interprets its meaning Feedback the process whereby a receiver encodes the message received and sends it back to the original sender

Organizational Communication
Patterns of communication at the organizational level

formal and informal Purpose to facilitate achievement of organizational goals Involves the use of communication networks, policies, and structures

Communication
Two-way Communication communication that includes feedback and an exchange of information between two or more parties One-way Communication communication that does not include feedback

Communication within Organizations


Organizational communication
Patterns of communication at the organizational

level Purpose is to facilitate achievement of organizational goals Involves the use of


Communication networks Policies Structures

Communication Networks
Y Network Centralized Networks All Connected Network

Wheel Network
Circle Network Decentralized Networks

Adapted from Exhibit 9-2: Communication Networks

Centralized networks all communications pass

through a central point or points so that each member of the network communicates with only a small number of others the Y and the Wheel Decentralized networks many people or units can communicate with many others the Circle and the All-Connected

Direction of Organizational Communication


Downward Horizontal Upward
Manager

360 Feedback
Peers Customers

Direct Reports

Direction of Organizational Communication


Downward
From supervisor to subordinate Job instructions Information on organization policies Performance feedback Inform associates about the organizations goals and changes

Direction of Organizational Communication


Upward
From subordinate to supervisor Grievance procedures Departmental meetings Participation in decisions And others Upward communication may be necessary to Monitor the effectiveness of decisions Provide information Maintain associate morale Ensure that jobs are being done properly

Direction of Organizational Communication


Horizontal (lateral)
Between associates at the same level Facilitates coordination among organizational units May arise from integrating positions (boundary-

spanning positions) 360-degree performance feedback

360 Degree Feedback feedback and

appraisals from a variety of levels peers, subordinates, and supervisors. Sometimes the feedback will also come from customers, clients, suppliers, and others who have contact with the individual. One problem that some subordinates have experienced is retaliation by their supervisors; another problem is that peers may be politically motivated to either overrate or underrate their co-workers.

Interpersonal Communication
Direct verbal or nonverbal interaction between

two or more active participants


Formal vs. informal issues Informal includes spontaneous interactions Informal may reach more associates Informal can help build cohesion and friendship among associates Informal may include untrue rumors and gossip

Communication Media

Richness describes the amount of information a medium can convey. Richness depends on:
The availability of feedback The use of multiple cues The use of effective language

The extent to which the communication has a

personal focus

Communication Media
Richest
Equivocal Messages Face-to-face Telephone Electronic messaging Personal written text Formal written text Formal numerical text

Least Rich

Equivocal messages are those that can be

interpreted in multiple ways

Nonverbal Communication
Communication that takes place without using language, such as facial expressions or body language

Body Language

Paralanguage

Gestures

Lying? Attitude
9-417

Body language (kinesics) - Facial expressions,


Use of hands, arms, legs and posture

Paralanguage (How something is said) - Tone


and pitch of voice, Use of silence

Gestures - Hand signals, Shrugging ones


shoulders

9-418

Barriers to Effective Communication


Individual

Organizational

9-419

Organizational barriers information overload,


noise, time pressures, breakdown in the communication network, information distortion, and cross-cultural barriers

Individual barriers differing perceptual bases,


semantic differences, consideration of selfinterest, personal space, and poor listening skills

9-420

Organizational Barriers
Information Overload Time Pressures Specialty Area Jargon Noise Network Breakdowns Information Distortion

Cross-Cultural Barriers
9-421

Information Overload
receiving more information than can be reasonably processed. Occurs for
several reasons First, organizations face higher levels of uncertainty because of escalating change and turbulence in the external environment, so they obtain more information to reduce the uncertainty. Second, the increasing complexity of tasks and organization structures creates a need for more information. Again, organizations employ more specialists to provide the needed information, placing greater information-processing burdens on organizational members. Third, ongoing developments in technology small mobile computers, the Internet, intranets, the growing number of large organizational databases increase the amount of information available to associates and managers. One way in which organizations are trying to deal with the overload caused by electronic messaging and e-mail is by adopting newer, web-based interactive technologies for internal communications. These include blogs, wiki sites, and social networking sites. With this technology, messages are all posted in one place, avoiding redundancy. Also, new anti-spam software has helped businesses cut down on the cost of unwanted e-mail.

9-422

Noise
Anything that disrupts communication or distorts the
message. Noise can be either an organizational-level barrier or an individual-level barrier. It may occur at any step in the communication process or within any element, and it may occur in many forms. Often, it is unintentional, as when two parties have different perceptions of a message. But at times noise may be intentional. Other examples of noise include language barriers (especially in international firms), interruptions, emotions, and attitudes.

9-423

Time Pressures
In most organizations work needs to be done
under deadlines, which create time pressures and constrain an individuals ability to communicate. When people are under time pressure, they sometimes do not carefully develop a message before sending it. In addition, the pressure of a deadline often does not allow for time to receive feedback, so the sender may not know whether the receiver accurately perceived the message.

9-424

Network Breakdowns
Breakdowns in the communication network frequently
occur in large organizations because so much information flows through those networks. Many things can interfere with the flow mail can be misplaced, messages may not be received by those targeted, and people can forget to relay pieces of information. Larger organizations have more problems because messages must flow through more people, increasing the probability that the message will be transmitted inaccurately at some point. One other factor that can cause communication network breakdowns is the architecture of the work environment.

9-425

Specialty Area Jargon


One problem in large, complex organizations
concerns the proliferation of specialists. Specialists are highly knowledgeable within their own fields but frequently have limited understanding of other fields. In addition, they often have their own language, or jargon. It may be difficult for two specialists in different fields to communicate effectively with one another because they use different terminology.

9-426

Information Distortion
It is common for information to be distorted, either
intentionally or unintentionally. Unintentional distortion can occur because of various problems, such as time pressures, or because of perceptual differences. However, intentional distortion often occurs because of competition between work units in an organization. Departments frequently have to compete for scarce resources in their operating budgets. Suppression or distortion of information can (and does) also occur when an associate has more information than his or her supervisor.

9-427

Cross-Cultural Barriers
Cross-cultural barriers occur for two general reasons:
lack of language fluency and lack of cultural fluency. Even though English is becoming an international language for business, the potential for language barriers continues to exist in cross-cultural communications. Language fluency is one dimension of what is known as cultural fluency the ability to identify, understand, and apply cultural differences that influence communication. Language fluency is necessary for cultural fluency but is not itself enough. Cultural fluency can affect many dimensions of organizational behavior, including negotiating styles, nonverbal behavior, personal space, and the use of symbols.

9-428

Individual Barriers
Differing Perceptions Semantic Differences

Status Differences

Consideration of Self-interest

Personal Space

Poor Listening Skills


9-429

Differing Perceptions
One of the most common communication
failures occurs when the sender has one perception of a message and the receiver has another. Differing perceptions are caused by differing frames of reference. Our expectations or frames of reference can influence how we recall and interpret information.

9-430

Semantic Differences
Semantics refers to the meaning people attach to
symbols, such as words and gestures. Because the same words may have different meanings to different people, semantic differences can create communication problems. One reason for semantic differences relates to the proliferation of specialists in organizations. Specialists tend to develop their own jargon; such terminology may have little meaning to a person outside the specialists field.

9-431

Status Differences
can result from both organizational and individual
factors. Organizations create status differences through titles, offices, and support resources, but individuals attribute meaning to these differences. Status differences can lead to problems of source credibility and can create problems that block upward communication (and thus feedback). To be effective communicators, managers must overcome the status difference that exists between them and the associates reporting to them.

9-432

Consideration of Self-Interest
Often, information provided by a person is used to
assess his or her performance. For example, it is not uncommon for firms to request information from managers about their units performance. Data such as forecasts of future activity, performance standards, and recommendations on capital budgets are often used in determining the managers compensation. Research shows that where data accuracy cannot be independently verified, managers sometimes provide information that is in their own self-interest. Although this does not necessarily mean they intentionally distort information, they may provide incomplete data, selecting only information that is in their own best interests.

9-433

Personal Space
All of us have a personal space surrounding our
bodies. When someone enters that space, we feel uncomfortable. The size of the personal space differs somewhat among individuals; it also differs by gender and across cultures. Women seem to have smaller personal spaces than men. Similarly, the typical personal space in some cultures (such as some European and South American cultures) is smaller than that in other cultures (such as the United States).

9-434

Poor Listening Skills


A frequent problem in communication rests not with the sender but with
the receiver. The receiver must listen in order to hear and understand the senders message, just as the sender must listen to feedback from the receiver. Managers spend more than 50 percent of their time in verbal communication, and some researchers estimate that they spend as much as 85 percent of this time talking. This does not leave much time for listening and receiving feedback. Perhaps more importantly, it has been estimated that managers listen with only about 25 percent efficiency. Therefore, they hear and understand only 25 percent of what is communicated to them verbally. This can lead the speaker to become annoyed and discouraged, thus leaving a bad impression of the listener. Poor listening is not conducive to high-involvement management, because it breaks down the communication process and will limit information sharing.

9-435

Communication Audit
Analysis of an organizations internal and external communication to assess communication practices and capabilities and determine needs
Recommended Audit Methodology

Hold a planning meeting approach and commitment Conduct interviews with top management Collect, inventory, and analyze material Conduct associate interviews

Prepare and administer a questionnaire to measure attitudes toward communication Communicate survey results
9-436

Communication Climates
Associates perceptions regarding the quality of communications within the organization.

Mutual Trust

Credibility

Feedback

9-437

Communication Climates
Organizations can overcome communication barriers by
establishing mutual trust between senders and receivers, communication credibility is present, and feedback is encouraged. Managers also should encourage a free flow of downward, upward, and horizontal communication. People must be comfortable in communicating their ideas openly and in asking questions when they do not understand or they want to know more. Information should be available and understandable. People in organizational units should be allowed to develop their own communication systems independently for an effective communication culture.
9-438

Individual Actions

Know your audience Select an appropriate communication medium Encourage feedback Regulate information flow and timing Listen actively

9-439

Know your audience


communicate with others as if you were
communicating with yourself. To communicate effectively, people must know their audience, including the audiences experience, frames of references, and motivations.

9-440

Select an appropriate communication medium


when messages are important or complex, use of
rich media, such as face-to-face communication, is necessary. Also, when dealing with important and/or complex information, it is best to use several forms of communication for example, by following a face-to-face communication with an e-mail message summarizing the discussion.

9-441

Encourage feedback
Communication is a two-way process. To ensure that the
received message is interpreted as intended, feedback from the recipient is necessary. Some guidelines that individuals can use to obtain feedback include asking recipients to repeat what they have heard, promoting and cultivating feedback, but not trying to force it, rewarding those who provide feedback and using the feedback received and responding to feedback, indicating whether it is correct. In other words, obtaining feedback, using it, and then feeding it back to recipients.

9-442

Regulate information flow and timing


Regulating the flow of information can help to alleviate communication
problems. Regulating flow involves discarding information of marginal importance and conveying only significant information. That is, do not pass on irrelevant information, or else important messages may be buried by information overload or noise. The proper timing of messages is also important. Sometimes people are more likely to be receptive to a message and to perceive it accurately than at other times. Thus, if you have an important message to send, you should not send it when recipients are about to leave work, are fully engaged in some other task, or are receiving other communication. Listen actively poor listening skills are a common barrier to effective communication. People tend to hear and understand only around 25 percent of what is communicated to them verbally. Listening is not a passive, naturally occurring activity. People must actively and consciously listen to others in order to be effective communicators.
9-443

Steps to Effective Listening


Listen empathetically Hear before evaluating
Listen to the whole message

Pay attention

Stop talking

Send feedback

Adapted from Exhibit 9-5: Steps to Effective Listening

9-444

Steps to Effective Listening


1. Stop talking. Often, we talk more than we
should without giving the other person a chance to respond. If we are thinking about what we will say when we talk, we cannot focus attention on the person we wish to listen to. Do not interrupt.

2. Pay attention. Do not allow yourself to be


distracted by thinking about something else. Often, we need to make an active effort to pay attention when others are speaking.

9-445

Steps to Effective Listening


3. Listen empathetically. Try to take the
speakers perspective. Mirror the speakers body language and give him or her nonjudgmental encouragement to speak.

4. Hear before evaluating. Do not draw premature


conclusions or look for points of disagreement. Listen to what the person has to say before jumping to conclusions or judgment.

9-446

Steps to Effective Listening


5. Listen to the whole message. Look for
consistency between the verbal and the nonverbal messages. Try to assess the persons feelings or intentions, as well as just facts.

6. Send feedback. In order to make sure that you


have heard correctly, paraphrase what was heard and repeat it to the person you were listening to.

9-447

8a Decision making

Dawn Ostroffs Decision Making at the CW Television Network


What are your thoughts about Ostroffs decision-making
process regarding programming at the new network?

Given the nature of the decisions needed, did she used the
knowledge and wisdom of her advisors wisely? What are your thoughts about the creative and somewhat risky tactics that were adopted? the future?

Dawn Ostroff Do you think the network will survive and be successful in

Exploring Behavior in Action

Knowledge Objectives
1. Describe the fundamentals of decision making, including

2.
3.

4.
5. 6. 7.

the basic steps and the need to balance ideal and satisfactory decisions. Discuss four important decision-making styles, emphasizing the effectiveness of each one. Explain the role of risk-taking propensity and reference points. Define cognitive bias and explain the effects of common types of cognitive bias on decision making. Discuss common pitfalls of group decision making. Describe key group decision-making techniques. Explain the factors managers should consider in determining the level of associate involvement in managerial decisions.

Fundamentals of Decision Making


Decisions are choices of actions from among multiple feasible alternatives. Making decisions is one of the primary activities of senior managers.

Decisions are also made by managers at all levels and by associates in high-involvement organizations.

Decision-Making Process
Define the Problem

Identify Criteria

Gather and Evaluate Data


Feedback List and Evaluate Alternatives

Select Best Alternative

Implement and Follow Up

Adapted from Exhibit 10-1: The Decision-Making Process

Optimal versus Satisfactory Decisions


Optimal decision Satisficing decision

Decision-Making Styles
Individuals predispositions can affect decision process at two critical stages
Gathering (Perceiving) of Information
Sensing style Intuition style

Carl Jung

Evaluating (Judging) of Alternatives


Thinking style Feeling style

Define the Problem Identify Criteria

Decision-Making Styles
Perceptual Influences
Sensing Using the five senses to identify factual details Intuition

Feedback

Gather and Evaluate Information

Using abstractions and describing the big picture

Judgmental Influences

List and Evaluate Alternatives Select Best Alternative Implement and Follow Up

Objective analysis, rational procedures Thinking

Subjective values with emotional and personal factors Feeling

Adapted from Exhibit 10-2: Influence of Decision Styles

Gathering Information
Sensing
A decision style focused on gathering concrete information directly through the senses, with an emphasis on practical and realistic ideas.

Intuition
A decision style focused on developing abstractions and figurative examples for use in decision making, with an emphasis on imagination and possibilities.

Intuition Style
Valuable when:

A high level of ambiguity exists Few or no precedents exist Facts are limited Facts dont clearly indicate which way to go Time is limited and there is pressure to make the right decision Several plausible alternative solutions exist with good arguments for each

Evaluating Alternatives
Thinking
A decision style focused on objective evaluation and systematic analysis.

Feeling
A decision style focused on subjective evaluation and the emotional reactions of others.

Managerial Advice

Nurturing Alternative Decision Styles


What are your thoughts about the comment that many accountants believe that more data is better and they hide behind a mass of data? What are your thoughts that some marketers have blind spots when it comes to having to do data analysis? What are you thoughts about the Six Thinking Hats concept of Edward de Bono?

Edward de Bono

Degree of Acceptable Risk


Risk exists when the outcome of a chosen course of

action is not certain Risk-taking propensity (Willingness to take chances)

Reference Point

Cognitive Biases
Confirmation bias
Seeking information that confirms early beliefs and ideas
Cognitive Biases

Ease of recall bias


Relying too much on information that is easy to recall from memory Mental shortcuts involving simplified ways of thinking

Sunk-cost bias
Not treating past investments (time, effort, money) as sunkcosts when deciding to continue an investment

Anchoring bias
Emphasizing too much the first piece of information encountered

Mount Everest Expeditions


What role do sunk costs play in many decisions? Why would someone like Rob Hall ignore his predetermined turnaround time? Have you experienced the perils of sunk cost in your work or personal lives? Give examples.

George Mallory (R) and Andrew Irvine


Experiencing Strategic OB

Rob Hall

Sir Edmund Hillary (L) and Tenzing Norgay

Group Decision Making


Some members may arrive with their own expectations,

problem definitions, and pre-determined solutions Some members may have given more thought to the decision situation and what is to be accomplished Focus of the team leader may be in developing a collaborative team rather than developing individual decision making skills

Decision-Making Process
Common Information Bias Groupthink Diversitybased Infighting

Risky Shift

Brainstorming

Group Decision Making

Devils Advocacy

Nominal Group Technique

Delphi Technique

Dialectical Inquiry

Adapted from Exhibit 10-3: Group Decision-Making Phenomena Pitfalls and Techniques

Group Decision-Making Pitfalls


Groupthink

Common Information Bias

DiversityBased Infighting

Risky Shift

Brainstorming

Nominal Group Technique

Delphi Technique

Dialectical Inquiry

Devils Advocacy

Vroom-Yetton Method
Victor Vroom Philip Yetton

Requires managers to diagnose the problem situation and then determine the extent to which associates will be involved in the decision-making process. The involvement depends on the probable effect participation will have on:

the expected quality of the decision the acceptance or commitment needed from associates to
implement the solution

the amount of time available (and needed) to make the


decision.

Who Should Decide?


Level of Associate Involvement in Decision
Low High

AI

AII

CI

CII

GII

AI Manager solves problem or makes decision alone AII Manager requests information but not alternatives CI Manager explains problem individually but makes decision alone CII Manager explains problem to group, gets suggestions, makes decision alone GII Manager explains problem to group, facilitates problem solving, implements decision supported by the group

Adapted from Exhibit 10-4: Managerial Approaches to Associate Involvement in Decision Making

Vroom-Yetton Method
Questions asked to determine level of associate involvement in decision making
A. Is there a quality requirement such that one solution is likely to be

B. C. D. E.

F.
G.

more rational than another solution, or will any number of solutions work reasonably well? Do I have sufficient information to make a high-quality decision? Is the problem structured (do I know the question to ask and where to look for relevant information)? Is acceptance of the decision by associates critical to effective implementation? If I were to make the decision by myself, is it reasonably certain that it would be accepted by my associates? Do the associates share the organizational goals to be attained in solving this problem? Is conflict among associates likely in preferred solutions?

Adapted from Exhibit 10-5: Decision Tree Method

Vroom-Yetton Method
A B C D E
1-AI Yes

F
2-AI 3-GII

No Yes No Problem No Yes Yes Yes Yes No Yes No

No
4-AI Yes No No Yes 10-AII 9-AII 5-AI Yes 6-GII 7-CII Yes

No

No 8-CI

No

Yes No

Yes No

11-CII Yes No

12_GII

Decision points Recommended strategies


Adapted from Exhibit 10-5: Decision Tree Method

14-CII

13-CII

Vroom-Yetton Model and the Civil War


What are your thoughts regarding the application of the Vroom-Yetton Model to the Civil War battles discussed in the text?

How could you use this model to fight some of your battles in your life?

Experiencing Strategic OB

Value of Individual vs. Group Decision Making


Important considerations for judging the overall value of group decision vs. individual decision making include:
Time Cost

Nature of the Problem

Satisfaction and Commitment

Personal Growth

Group Decision Making


Advantages
Can accumulate more knowledge and facts and generate better alternatives. Often display superior judgment when evaluating alternatives. Involvement in decisions leads to a higher level of acceptance and satisfaction. Can result in growth for members of the group.

Disadvantages
Take more time to reach decisions than do individuals. Social interactions may lead to premature compromise. Often dominated by one or two decision leaders. Managers may rely too much on group decisions lose their own skills.

Adapted from Exhibit 10-6: Advantages and Disadvantages of Group Decision Making

The Strategic Lens


1. You are a manager of a unit with 25 associates. You have just been informed that you must lay off 20% of the associates in your unit. What process will you follow to make the decision and implement it? If you made a decision that your manager told you was important for the organization and later you learned that you made an error in that decision, what actions would you take? Assume that others will not notice the error for some time. You make decisions on a daily basis. Do you find it difficult to make decisions, especially those of importance? What can you do to improve your decision-making abilities?

2.

3.

9 Conflict and Power


Conflict: The process in which one party

perceives that its interests are being opposed or negatively affected by another party

The Nature of Conflict

Dysfunctional Conflict

Functional Conflict

Conflict

Types of Conflict
Dysfunctional conflict - Conflict that is

detrimental to organizational goals and objectives. Functional conflict - Conflict that is beneficial to organizational goals and objectives.

Effects of Conflict
Effects on Individuals Effects on Behavior

Effects on Interpersonal Relationships

Adapted from Exhibit 12-1: Effects of Conflict

Effects on Individuals
Anger

Hostility
Frustration

Stress
Guilt Low job satisfaction Embarrassment

Effects on Behavior
Reduced motivation and productivity Avoidance of other party Emotional venting Threats Aggression (psychological or physical)

Quitting
Absenteeism Biased perceptions Stereotyped thinking Increased commitment to ones position Demonizing others

Effects of Types of Conflict on Task Performance High


Substantive Conflict Task Performance Personal Conflict

Procedural Conflict

Low Low Degree of Conflict High


Adapted from Exhibit 12-2: The Effects of Different Types of Conflict on Task Performance

Functional Consequences
Improved Problem Solving
Facilitation of Change Enhanced Morale and Cohesion

Potential Benefits of Conflict

Stimulation of Creativity

Spontaneity in Communication

Types of Conflict
Personal Conflict Substantive Conflict

Procedural Conflict

Causes of Conflict
Structural Factors History Communication

Conflict

Individual Characteristics

Cognitive Factors

Conflict Outcomes
High Win-Lose Win-Win

Compromise

Lose-Lose Low

Lose-Win High

Degree of Satisfaction of Party Bs Concern

Adapted from Exhibit 12-3: Possible Conflict Outcomes

Responses to Conflict
High Competing Collaborating

Compromising

Avoiding Low

Accommodating Cooperativeness High

Negotiation
A process by which parties with different preferences and interests attempt to agree on a solution.

Negotiation Strategies
Distributive Bargaining

Integrative Bargaining

10 Organizational Change and Development


Polaroid introduced instant photography to the market. They were one of the top 50 companies in the U.S. But they, like many others, were slow to change. What would you have done differently if you were a senior manager at Polaroid? Can you think of any other companies that were too slow to change and suffered the consequences?

Why is change so difficult to manage?

Pressures for Change


Aspirations Life-Cycle Forces Growing International Interdependence

Technological Advances

Introduction or Removal of Government Regulations

Pressure for Change


Changes in Demographics Changes in Societal Values Shifting Political Dynamics

Adapted from Exhibit 14-1: Internal and External Pressures for Organizational Change

Aspiration-Performance Discrepancies
Gaps between what an individual, unit, or organization

wants to achieve and what it is actually achieving. Three important factors in the role of aspirations
Past aspirations Past performance Comparison with others

Life-Cycle Forces
Natural and predictable pressures that build as an organization grows and that must be addressed if the organization is to continue to grow.

Integrative Life-Cycle Model


Entrepreneurial Stage
Need for stability and structure

Need for additional people

Collectivity Stage

Formalization and Control Stage


Need for balance

Elaboration Stage
Adapted from Exhibit 14-2: Integrative Life-Cycle Model

External Pressures for Change


Technological advances Shifting political dynamics

Introduction and removal of government regulations

Changes in demographics

Changes in societal values

Growing international interdependence

Managerial Advice

Companies Responses to Pressures for Green Policies and Practices

Are companies becoming more green for reasons other than the bottomline? Give some examples. What is your organization doing to become more green? What are you doing personally? Should becoming green be a choice or is legislation needed to make it happen?

Planned Change
A process involving deliberate efforts to move an organization or a unit from its current undesirable state to a new, more desirable state
Awakening Energizing Unfreezing

Mobilizing

Envisioning

Moving

Reinforcing

Enabling

Refreezing

Process of Planned Change


Kurt Lewin
Unfreezing Moving Refreezing

Provide rationale
for change Create minor levels of guilt/anxiety about not changing Create sense of psychological safety concerning change

Provide information
that suspects proposed changes Bring about actual shifts in behavior

Implement new
evaluation systems Create minor levels of guilt/anxiety about not changing Implement new hiring and promotion systems

Adapted from Exhibit 14-3: Process of Planned Change

Coca-Cola Is Finding a New Fizz


Coca-Cola is changing its culture, and also adapting its product line to better satisfy the demand of customers. What are your thoughts about the steps they are taking regarding these changes? Neville Isdell Do you think the new innovations and changes will Sandy have Douglas a positive or a negative impact on their existing brands? Why? What other changes would you suggest to help them remain competitive?

Experiencing Strategic OB

Sources of Failure
1.
2.

Managers and associates should not expect all change activities to occur sequentially. A team of change leaders, rather than a single individual, should guide an organization through a major change effort.

In addition to size, four factors to consider when forming change teams:

Position Power
John Kotter

Informal Credibility Proven Leadership

Expertise

Speed of Change
Urgency Degree of support

Criteria to Consider

Amount and complexity of change

Competitive environment
Knowledge and skills available Financial and other resources

Style of Change
Non-participatory top down, leaders design the change and plan its implementation

Participatory change leaders seek the ideas and advice of associates and then use many of those ideas. Criteria for evaluating the degree to which the participatory style should be used:
Degree of Support Referent and Expert Power of Leaders

Urgency

Resistance to Change
Effort to block new ways of doing things

Four Factors
Lack of understanding Different assessments

Self-interest

Low tolerance for change

British Airways: The Yin and Yang of Organizational Change


Do you think there was any incentive for British Airways to change prior to deregulation? Why do you think the changes were effective? Given the problems faced by all the major airlines at the time, why do you think there was still so much resistance to the changes?

What other changes would you recommend at this time?

Willie Walsh

Experiencing Strategic OB

The DADA syndrome


Denial ignore possible or current change Anger individuals facing unwanted change
become angry about the change

Depression individuals experience


emotional lows

Acceptance individuals embrace the


reality of the situation and make the best of it

Organization Development (OD)


A planned, organization-wide, continuous process designed to improve communication, problem solving, and learning through the application of behavioral science knowledge
Roots in humanistic psychology Grounded in values of individual empowerment and

interpersonal cooperation Fully consistent with the high-involvement management approach

Basic Organization Development Model


Diagnosis of Situation

Feedback

Introduction of interventions

Progress Monitoring
Adapted from Exhibit 14-4: Basic Organization Development Model

Organization Development Interventions


Organization Development

Relationship Techniques

Structural Techniques

T-group Training Team Building Survey Feedback

Job Redesign Management by Objectives Supplemental Organizational Processes

Adapted from Exhibit 14-5: Organization Development Interventions

Relationship Techniques
T-group Training

Team Building

Survey Feedback

Team Building Tips


Get the right people together for a large block of uninterrupted time to work on high-priority problems or opportunities that they have identified and have them work in ways that are structured to enhance the likelihood of realistic solutions and action plans, which are then implemented enthusiastically and followed up to assess actual versus expected results.

Job Redesign

Structural Techniques

Management by Objectives (MBO)

Supplemental Organizational Processes

Organizational Learning
Exploitative Learning Exploratory Learning

Organization Development Across Cultures


Flexibility

Ethnocentric Attitude and Stereotyping

Knowledge of Specific Cultures Interpersonal Sensitivity

The Strategic Lens


1. 2. 3. Why do organizations need to make changes on a regular basis? What are the major causes of these changes? Why is it so difficult for people to change their behavior, even when they know it is important to do so? If you were in a managerial position and believed that a major change in your units structure was needed, what actions would you take to ensure that the change was made effectively?

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