Management and Organisational Behaviour

7th Edition

PART 1 Management and Organisational Behaviour

OHT 2.1

Essential Reading

! Mullins, L. J., Management and Organisational Behaviour; Pitman

Management and Organisational Behaviour

7th Edition

CHAPTER 2

The Nature of Organisational Behaviour

OHT 2.3

OHT 2.4

A. WHAT IS AN ORGANISATION?
! they are composed of individuals and groups; ! they exist in order to try to achieve certain goals; ! they involve specialisation, and require rational co-ordination and control; ! they have some degree of permanence.

OHT 2.5

A Definition
Organisations comprise two or more people engaged in a systematic and coordinated effort, persistently over a period of time, in pursuit of goals which convert resources into goods and/or services which are needed by consumers.

OHT 2.6

A framework of organisational behaviour

OHT 2.7

The Organisation in its Environment

It is usual to consider the environment through a form of analysis known as PEST from the initial letters of the four categories: ! Political ! Economic ! Social ! Technological

OHT 2.8

OHT 2.9

Value and Functions of Goals

Mullins (Management and Organisational Behaviour) provides a succinct summary of the functions of goals, as follows: ! To provide a standard of performance, by focusing on the activities of the organisation and the efforts of its members. ! To provide a basis for planning and management control. ! To provide guidelines for decision-making and the justification for actions taken, reducing uncertainty in decision-making. ! To influence the structure of the organisation and help determine the nature of the technology employed. ! To help to develop commitment from individuals and groups towards the activities of the organisation. ! To give an indication of what the organisation is really like, both for members and the organisations stakeholders. ! To act as a basis for the evaluation of change and the development of the organisation. ! To serve as a basis for the objectives and policies of the organisation.

OHT 2.10

Problems with Goals

Although they serve a key function in organisations, that is not to say that goals are not without their problems. These tend to revolve around three areas: ! difficulties in formulation; ! coping with change; ! goal conflicts between goals, in interpretation and in commitment.

OHT 2.11

Characteristics of Organisational Culture

! The organisations goals particularly its mission statement and the extent to which they are clear, communicated to and embraced by all levels of the organisation. ! The dominant behaviour patterns applying to the interaction within the organisation and between the organisation and its stakeholders (its existing and potential customers, investors, owners, etc.) in respect to both what is expected and whether actual behaviour lives up to these expectations. ! The distribution of authority and decision-making through the organisation basically along a continuum from it being concentrated at the top or spread downwards to teams working close to customers by the empowerment of employees. ! The structure of the organisation is closely related to the distribution of authority and may be easier to identify through the use of organisation charts, etc. ! The nature of leadership which refers to the way in which power and authority is exercised, again along a continuum from authoritarian to democratic. ! The values of the organisation terms of its responsiveness to the needs and aspirations of its own staff and to those of its stakeholders. 14 An Introductions to Organisations Licensed to ABE ! The entrepreneurial spirit of the organisation, as revealed by the degree of enterprise, innovation, competitiveness, flexibility and drive for excellence of the organisation. ! Its receptiveness to embrace change arising from changes in its environment particularly whether it is proactive (anticipating and planning for change) or reactive (coping with change as and when it arises).

OHT 2.12

The study of organisational behaviour (OB) embraces an understanding of -

The behaviour of people The process of management The organisational context of management Organisational processes and the execution of work Interactions with the external environment of which the organisation is part

OHT 2.13

The meaning of OB

OB is a convenient shorthand that refers to the numerous interrelated influences on, and patterns of behaviour of people within organisations

Porter, Lawler and Hackman

OHT 2.14

The meaning of OB

Wilson challenges what constitutes OB & questions whether we should be interested only in behaviour that happens within the organisation. She suggests that we need to look outside of what is normally thought of as organisations & how we usually think of work

OHT 2.15

The meaning of OB

Wilson believes that we can gain an insight into organisational life and behaviour by looking at: - what happens in rest & play - emotions & feelings - less organised work - the content in which work is deferred to as mens work - the meaning of work for the unemployed

OHT 2.16

Influences on OB

Individuals
Groups The organisation itself

The environment

OHT 2.17

Individuals

Are a central feature of OB Are a necessary part of any behavioural set Bring to the organisation their personality, skills and attributes, values, needs and expectations Can create conflict if their needs and the demands of the organisation are incompatible

OHT 2.18

Management and the individual Managements task is to integrate the individual & the organisation, providing a working environment that permits the satisfaction of individual needs & attainment of organisation goals

OHT 2.19

Groups

Exist in all organisations

Are essential to organisational working and performance Comprise a range of different individuals Can develop their own hierarchies and leaders

OHT 2.20

Groups Can have a major influence on behaviour and performance of individual members
Have their own structures and functions, role relationships and influences and pressure An understanding of group structure and behaviour complements a knowledge of individual behaviour

OHT 2.21

The organisation

Individuals & groups interact within the structure of the formal organisation Organisational structure is created by management to: - establish a relationship between individuals & groups - provide order and systems to direct efforts of the organisation into goal seeking activities

OHT 2.22

The organisation The formal structure allows people/groups to carry out organisational activities to achieve aims & objectives
Behaviour is affected by patterns of organisational structure

OHT 2.23

Environment

The environment affects the organisation through: technological & scientific development economic activity social & cultural influences government activities

OHT 2.24

Environment

The effects of the operation of the organisation within its environment are reflected in the: management of opportunities & risks successful achievement of organisational aims & objectives

OHT 2.25

Environment its rate of change

The increasing rate of change in environmental factors highlights the need to study the total organisation & the processes used to adapt to external demands
Example: globalisation has placed greater emphasis on organisational processes rather than organisational functions

OHT 2.26

Contrasting but related approaches

Psychological
Looks at individuals within the organisation A narrow approach

Sociological
Looks at human behaviour in society

A broader approach

OHT 2.27

Behavioural science a multidisciplinary approach

A multidisciplinary behavioural science approach can make an important contribution to the field of OB
Behavioural science has three main disciplines: - Psychology personality systems - Sociology social behaviour - Anthropology science of mankind & study of human behaviour (cultural systems)

OHT 2.28

The organisational iceberg

One way to recognise why people behave as they do at work is to view an organisation as an iceberg What sinks a ship isnt always what sailors can see, but what they cant see
Hellriegal, Slocum, & Woodman

OHT 2.29

Figure 2.3

The organisational iceberg

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

OHT 2.30

Figure 2.3

The organisational iceberg Formal (overt) aspects

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

OHT 2.31

The organisational iceberg Behavioural (covert) aspects

Figure 2.3

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

OHT 2.32

The organisational iceberg Formal (overt) aspects

Customers Technology Formal goals Organisational design Financial resources Physical facilities Rules & regulations Surface competencies & skills

OHT 2.33

The organisational iceberg Behavioural (covert) aspects

Attitudes Communication patterns Informal team processes Personality Conflict Political behaviour Underlying competencies & skills

OHT 2.34

Challenges of management People, capital, & technology

somewhere within our views or organizations we need to acknowledge the differences between machines and man. the question of time is crucial, both because we humans operate in time with the past, the present & the future assuming importance and because they are phases, sequences of times and rhythms which are essentially human.
Gratton

OHT 2.35

Organisational metaphors
Machines Organisms Brains Cultures Political systems Psychic prisons Flux & transformation Instruments of domination

Morgan

The metaphors are not fixed categories and are not mutually exclusive

OHT 2.36

Orientations to work
Instrumental orientation individuals view work as a means to an end, there is a calculative or economic involvement with work
Bureaucratic orientation work is defined as a central life issue, there is a sense of obligation to the work of the organisation & positive involvement in terms of a career structure Solidaristic orientation work situation is viewed in terms of group activities, there is an ego involvement with work groups rather than with the organisation itself, work is more than just a means to an end
Goldthorpe et al.

OHT 2.37

Challenges to work ethics

Division of labour work has been fractured in task and sub divided into special sub tasks

Destruction of continuity in employment individuals are likely to re-enter the job market several times, jobs are no longer for life

Herman

OHT 2.38

Figure 2.4

Management as an integrating activity

OHT 2.39

The psychological contract

The series of mutual expectations & satisfaction of needs arising from the people / organisational relationship

Process of giving & receiving by the individual & the organisation

Covers a range of expectations of rights and privileges, duties and obligations that do not form part of the formal agreements but still has important influence of peoples behaviour The significant of the contract depends on the extent it is perceived to be fair

OHT 2.40

Formula for balancing unwritten needs of employees with the needs of the organisation
Caring demonstrating genuine concern for individuals Communicating really talking about what the company hopes to achieve Listening hearing not only the words but also what lies behind the words Knowing - those who work for you, their families, personal wishes, desires & ambitions Rewarding money is not always necessary
Stalker

OHT 2.41

Moral contract
Increasing global competition & turbulent change requires a management philosophy grounded in a different moral contract
People should not be seen as a corporate asset from which value can be appropriated, but as a responsibility and a resource to be added to This demands more from individuals to abandon the idea of lifetime employment & embrace the concept of continuous learning & personal development
Ghosal et al.

OHT 2.42

Factors leading to an increase in the global business environment

Improvements in international communication facilities International competitive pressures The spread of production methods & other business processes across nations & regions International business activity, e.g. overseas franchising or licensing agreements

OHT 2.43

Figure 2.6

Defining & conceptualising culture A model of culture

Source: Reproduced with permission from F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture, Second edition, Nicholas Brealey (1999), p.22.

OHT 2.44

Figure 2.8

Factors affecting national culture

Source: Reproduced with permission from Ian Brooks, Organisational Behaviour: Individuals, Groups and Organisation, Second edition, Financial Times Prentice Hall (2003), p.266, with permission from Pearson Education Ltd.

OHT 2.45

Five dimensions of culture

Power distance Uncertainty avoidance Individualism Masculinity Confucian work dynamism

OHT 2.46

Cultural differences that can affect OB

Relationship & rules Individual or collective preferences Type of societies - neutral or emotional societies Diffuse or specific culture Achievement-based societies Time Attitude to the environment
Trompenaar

OHT 2.47

The study of organisational behaviour includes an understanding of which of the following: (a) the process of management. (b) organisational processes and the execution of work. (c) interactions with the external environment. (d) all of the above.