Management and Organisational Behaviour
7th Edition
PART 1
Management and
Organisational
Behaviour
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
Management and Organisational Behaviour
7th Edition
CHAPTER 2
The Nature of Organisational
Behaviour
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.2
The study of organisational behaviour (OB)
embraces an understanding of -
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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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.3
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.4
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.5
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 men’s
work
- the meaning of work for the unemployed
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.6
Influences on OB
• Individuals
• Groups
• The organisation itself
• The environment
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.7
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.8
Management and the individual
Management’s task is to integrate the individual &
the organisation, providing a working
environment that permits the satisfaction of
individual needs & attainment of organisation
goals
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.9
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.10
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.11
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.12
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.13
Environment
The environment affects the organisation through:
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technological & scientific development
economic activity
social & cultural influences
government activities
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.14
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.15
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.16
Contrasting but related approaches
Psychological
Sociological
Looks at individuals
within the
organisation
Looks at human
behaviour in society
A narrow approach
A broader approach
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.17
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)
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.18
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 isn’t always what sailors can
see, but what they can’t see
Hellriegal, Slocum, & Woodman
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.19
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.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.20
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.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.21
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.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.22
The organisational iceberg
Formal (overt) aspects
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Customers
Technology
Formal goals
Organisational design
Financial resources
Physical facilities
Rules & regulations
Surface competencies & skills
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.23
The organisational iceberg
Behavioural (covert) aspects
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Attitudes
Communication patterns
Informal team processes
Personality
Conflict
Political behaviour
Underlying competencies & skills
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.24
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.25
Organisational metaphors
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Machines
Organisms
Brains
Cultures
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Political systems
Psychic prisons
Flux & transformation
Instruments of domination
Morgan
The metaphors are not fixed categories and are not
mutually exclusive
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.26
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.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.27
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.28
Figure 2.4
Management as an integrating activity
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.29
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 people’s behaviour
• The significant of the contract depends on the extent
it is perceived to be fair
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.30
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.31
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.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.32
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.33
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.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.34
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.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.35
Five dimensions of culture
• Power distance
• Uncertainty avoidance
• Individualism
• Masculinity
• Confucian work dynamism
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 2.36
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
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005