University of Lusaka Organisational Behaviour Lecture 1 – Introduction to Organisational Behaviour Topic Outline 1. Introducing the basic concept of Organisational Behaviour 2. Key elements of Organisational Behaviour 3. Framework for Organisational Behaviour 4. Basic Approaches of Organisational behavior 5. Contributing Disciplines to Organisational Behaviour 6. Emerging Trends in Organisational Behaviour 7. Characteristics and Traits of Effective Organisations OB Disciplines and their Contributions Behaviour Science Contribution Unit of Analysis Psychology Learning, Motivating, Personality, Individual Emotions, Perception, Training, Leadership Effectiveness, Values, Recruitment Sociology Group Dynamics, Work Teams, Group Communication, Power/ Conflict, Change Social Psychology Behaviour Change, Attitude Change, Communication, Group processes, Group Decision Making Anthropology Comparative Values Comparative Attitudes Cross Cultural Cultures Organisation Political Science Conflict / Power, Influence Tactics Power and Ethics, Political Strategies Cross cultural analysis, values and morals Group Organisation Group Organizational Behaviour Organizational behaviour is the study of what people think, feel and do in and around organizations. Organizational behaviour is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations. 2-4 Organizational Behaviour Organisational Behavior is concerned with the study of the behaviour of the people within an organizational setting. It involves the understanding, prediction and the control of human behaviour. (Laurie J. Mullins) Behaviour refers to what people do in organization, what their attitudes are, how they perform 2-5 Definitions – Organisational Behaviour . Stephen P Robbins A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization's effectiveness. OB "studies three determinants of behavior in organizations: individuals, groups, and structure. In addition, OB applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively" Field of Organisational Behaviour Organizational behaviour (OB) is the study of what people think, feel, and do in and around organizations. OB scholars systematically study individual, team, and structural characteristics that influence behaviour within organizations. By saying that organizational behaviour is a field of study, we mean that scholars have been accumulating a distinct knowledge about behaviour within organizations—a knowledge base that is the foundation of this course. Why Study Organisational Behaviour The main reason for studying organizational behaviour is that most of us work in organizations, so we need to understand, predict, and influence the behaviours of others in organizational settings . Marketing students learn marketing concepts and computer science students learn about circuitry and software code. But all of us need organizational behaviour knowledge to address people issues when we try to apply marketing, computer science, and other ideas. Influencing organizational events It’s nice to understand and predict organizational events, but most of us want to influence the environment in which we live. Whether you are a marketing specialist or a computer programmer, you need to know how to communicate effectively with others, manage conflict, make better decisions, build commitment to your ideas, help work teams operate more effectively, and so on. OB knowledge will help you to influence organizational events. Key Elements of Organisational Behaviour There are basically 4 elements which are studied under the term “Organisational Behaviour”. People People refer to different employees working in organisations. These peoples work as either individually or in groups and make up the whole working structure of the organisation. These are very important factor and as there is no alternative available in place of its employees for the companies. Employees help in achieving the objectives of the organisations. They need to managed and treated properly. Managers are required to properly study and understand the nature of their different employees. It will help in developing better employee and employer relations. Productivity will eventually improve by properly understanding this element. Structure Structure is related to the roles and relationship of different individuals working in an organization. It is important that the roles and responsibility of each individual working in an organization should be defined clearly. It avoids any confusion and leads to better efficiency of peoples working there. It enables the proper division of whole work and allocating right work to the right person. Employees, when getting work as per their skill, achieve better efficiency and help in the attainment of goals in a better way. Therefore, the structure has an important role in developing the proper employer and employee relation network. Technology Technology is the one with the help of which employees are able to perform their task effectively. In its absences, it is difficult for employees to work with bare hands. Technology makes the task and work of people easy. It includes different machines, methods, tools and resources. The requirement of technology depends upon the nature of work to be done and scale of operations. Technology has an important role in improving the work quality and reducing the cost of production. However, the usage of technology puts certain restrictions on the freedom of people working. It requires different terms and conditions to be followed. Environment Environment is a crucial part of organisation behaviour. There are two types of environment within which organisation exist that is the internal environment and external environment. Organisation can’t exist alone and is a part of large system containing numerous elements like society, family, government and other organisations. Internal environment refers to organisation culture, its structure and its resources. Whereas the external environment includes various political, social, economic, cultural and technological factors. All these factors have different influence on the working of the organisation and need to be studied properly Basic Approaches of Organisational Behaviour i). An Interdisciplinary Approach: It is integrating many disciplines. It integrates social sciences and other disciplines that can contribute to the Organizational Behavior. It draws from these disciplines any ideas that will improve the relationships between people and organization. Organizations must have people, and people working toward goals must have organizations, so it is desirable to treat the two as a working unit. ii) Scientific Management Approach: The fundamental concern of the scientific management school was to increase the efficiency of the worker basically through good job design and appropriate training of the workers. Taylor is the father of the scientific management movement and he developed many ideas to increase organizational efficiency. Taylor showed that through proper job design, worker selection, employee training and incentives, productivity can be increased. The scientific management school advocated that efficiency can be attained by finding the right methods to get the job done, through specialization on the job, by planning and scheduling, by using standard operating mechanisms, establishing standard times to do the job, by proper selection and training of personnel and through wage incentives. iii). A Human Resources (Supportive) Approach: It is developmental approach concerned with the growth and development of people towards higher levels of competency creativity and fulfillment, because people are the central resource in any organization and any society. It helps people grow in selfcontrol and responsibility and then it tries to create a climate in which all employees may contribute to the limits of their improved abilities It is assumed that expanded capabilities and opportunities for people will lead directly to improvements in operating effectiveness. Work satisfaction will be a direct result when employees make fuller use of their capabilities. Essentially, the human resources approach means that better people achieve better results. iv) A Contingency Approach: Contingency theorist argues that the external environment and several aspects of the internal environment govern the structure of the organization and the process of management. Effective management will vary in different situations depending on the individual and groups in the organization, the nature of jobs, technology, the type of environment facing the organization and its structure. For example, if the employees are highly matured and willing to take more responsibility, the managers can follow delegating style and give full freedom to their employees. v) A Systems Approach: This implies that organizations consists of many interrelated and inter dependent elements affecting one another in order to achieve the overall results. Conceptually a system implies that there are a multitude of variables in organization and that each of them affects all the others in complex relationships. An event that appears to affect one individual or one department actually may have significant influences elsewhere in the organization. Contributing Disciplines to OB "Organizational behavior is an applied behavioural science that is built upon contributions from a number of behavioral disciplines. The predominant areas are psychology, sociology, social psychology, anthropology, and political science. As we shall learn, psychology's contributions have been mainly at the individual or micro level of analysis, while the other four disciplines have contributed to our understanding of macro concepts such as group processes and organization" 1. Psychology "Psychologists concern This Science that seeks to measure, explain, and sometimes change the behavior of humans and other animals. themselves with studying and attempting to understand individual behavior. Those who have contributed and continue to add to the knowledge of OB are learning theorists, personality theorists, counselling psychologists, and, most important, industrial and organizational psychologists" 2. Sociology This Discipline studies people in relation to their fellow human beings. "Whereas psychologists focus their attention on the individual, sociologists study the social system in which individuals fill their roles; that is, sociology studies people in relation to their fellow human beings" 3. Social Psychology An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another. An area within psychology, blending concepts from both psychology and sociology” 4. Anthropology This is a study of societies to learn about human beings and their activities. "Anthropologists' work on cultures and environments, for instance, has helped us understand differences in fundamental values, attitudes, and behavior among people in different countries and within different organizations" 5. Political Science The study of the behavior of individuals and groups within a political environment. “Specific topics of concern here include structuring of conflict, allocation of power, and how people manipulate power for individual self-interest” OB Disciplines and their Contributions Behaviour Science Contribution Unit of Analysis Psychology Learning, Motivating, Personality, Individual Emotions, Perception, Training, Leadership Effectiveness, Values, Recruitment Sociology Group Dynamics, Work Teams, Group Communication, Power/ Conflict, Change Social Psychology Behaviour Change, Attitude Change, Communication, Group processes, Group Decision Making Anthropology Comparative Values Comparative Attitudes Cross Cultural Cultures Organisation Political Science Conflict / Power, Influence Tactics Power and Ethics, Political Strategies Cross cultural analysis, values and morals Group Organisation Group Emerging Trends in Organisational Behaviour There has never been a better time to learn about organizational behaviour. The pace of change is accelerating, and most of the transformation is occurring in the workplace. Emerging Trends in organisational behaviour issues discussed in this course are: Globalization, Changing workforce, Emerging employment relationships, Information technology, Work teams, and Business ethics Globalisation Globalization occurs when an organization extends its activities to other parts of the world, actively participates in other markets, and competes against organizations located in other countries. Nortel Networks, a Canadian company, is a case in point. The Canadian company’s main competitors are Cisco Systems and Lucent Technologies in the US, Alcatel in France, Ericsson in Sweden, and Siemens in Germany. Nortel operates in a global economy and employs people in almost every part of the planet. “I’ve got 75,000 employees all around the world,” explains Nortel CEO John Roth. “As head of a global corporation who happens to reside in Canada, I have global obligations, not Canadian obligations.” Implications for OB Globalization is related to several organizational behaviour issues—some good, some not so good. Globalization requires new organizational structures and different forms of communication to extend around the planet. It often creates new career opportunities and potentially brings in new knowledge to improve the organization’s competitive advantage. However, globalization also increases competition, which leads to continuous change and restructuring. This sometimes results in downsizing (layoffs and other forms of workforce reduction), mergers, and other events that produce stress and dissatisfaction among employees. Applying OB Concepts Globalization also affects how we apply organizational behaviour concepts and practices. For the past 40 years, OB scholars have warned that organizational practices in one country may not be applicable elsewhere because of cultural and historical differences. We cannot assume that work teams, employee involvement, share options, or other organizational behaviour practices that work in Canada will work as well in Europe, Asia, or other parts of the world. This doesn’t mean that we have to reinvent organizational behaviour. Rather, globalization emphasizes the need to recognize the contingencies of effective OB practices in different cultures The Changing Workforce You don’t have to visit a global organization to find employees from diverse backgrounds. Most companies operating exclusively within developed countries , ie US, Canada or UK have a multicultural workforce because of the country’s increasing demographic diversity. The primary categories—gender, ethnicity, age, race, and mental/physical qualities—represent personal characteristics that influence an individual’s socialization and self-identity. The secondary dimensions are those features that we learn or have some control over throughout our lives, such as education, marital status, religion, and work experience. Implications for Organisational Behaviour Diversity presents both opportunities and challenges within organizations. It can become a competitive advantage by improving decision making and team performance on complex tasks. For many businesses, a diverse workforce is also necessary to provide better customer service in the global marketplace. “We go out of our way to recruit from a melting pot of nationalities,” says an executive at Amadeus, a developer of worldwide airline reservation software located near Nice, France. “We believe that our product is superior because of the different cultures of the people developing it.” Workforce diversity also brings new challenges. For instance, women have represented a large portion of the workforce for the past two decades, yet they are still underrepresented in senior positions. Diversity issues such as perceptual distortions and organizational politics largely explain this discrepancy. Diversity also influences team development and the potential for conflict among employees Organizations need to address these potential problems and adapt to emerging workforce needs. Emerging Employment Relationship After more than 100 years of relative stability, employment relationships are being redefined. Replacing the job-for-life contract is a “new deal” called employability. Employees perform a variety of work activities rather than hold specific jobs, and they continuously learn skills that will keep them employed. Corporate leaders claim that employability is necessary so organizations can adapt to the rapidly changing business environment. What is Employability Employability is the “new deal” employment relationship in which the job is viewed as a temporary event, so employees are expected to keep pace with changing competency requirements and shift to new projects as demand requires. What is Contingent Work Another employment shift is the increasing percentage of the workforce in contingent work. This includes any job in which the individual does not have an explicit or implicit contract for long-term employment, or one in which the minimum hours of work can vary in a non-systematic way. According to Statistics from Canada, more than 12 percent of the Canadian workforce is employed in some sort of “nonpermanent” work arrangement. Some experts predict that this trend will continue. “We are moving into the age of contractualization where everyone is their own boss,” claims one consultant, who argues that the concept of “employee” is a throwback to Industrial Revolution servitude Telecommunting Another dramatic change in the employment relationship is telecommuting (also called teleworking)—working from home or another location away from the office, usually with a computer connection to the office. More than 1.5 million Canadians are already telecommuters. As we move from an industrial economy to a knowledge-based economy, the number of people who take the information highway to work each day will continue to increase. Moreover, technology has untethered some employees so completely from the employer’s physical workspace that clients and co-workers are oblivious to their true locations. Telecommuting poses a number of organizational behaviour challenges.37 Employers that previously evaluated employees for their “face time”—the amount of time they were physically in the workplace—need to develop outcome-based measures of performance. Employees accustomed to direct supervision need to learn how to manage themselves through selfleadership Information Technology and OB Information technology is shaking up organizations and forcing OB scholars to re-examine their concepts in light of these revolutionary changes. We have already noted how this technology has given rise to virtual teams and telecommuting, and has made it possible for small businesses such as Ryan & Deslauriers to compete in the global marketplace. More generally, information technology challenges traditional business logic regarding how employees interact, how organizations are configured, and how they relate to customers. Teams, Teams and More Teams Organizational behaviour scholars have long argued that teams can be more effective than individuals working alone in many situations. Diverse work groups can potentially resolve complex problems more creatively than if those team members had worked individually. Moreover, by giving teams direct responsibility for coordination and control of work activities, companies can increase responsiveness and remove unnecessary layers of management. However, teams are not appropriate in every situation. Business Ethics Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and whether outcomes are good or bad. We rely on our ethical values to determine “the right thing to do.” One of the dilemmas organizational leaders face is that the distinction between ethical and unethical behaviour is not black and white. Instead, it depends on several factors, such as the person’s reason for engaging in the behaviour, specific conditions in that culture, the influence of external factors on the behaviour, and so forth. Emerging Trends in Organisational Behaviour Emerging trends in organisational behaviour Organizations have witnessed a great development from the olden times particularly in respect of structure, operations and people. There is a considerable change in the crossculture environment, influence of MNCs, growth in the technical know-how and quality management which has provided different environment in the modern organizations. Characteristics of an Effective Organisation Effective companies stay in operation longer and make more profits compared with business counterparts. Modeling the strategies of these organizations helps your small business succeed, even when you can't operate on the same scale or volume. Studies of effective organizations isolate groups of key traits easily adopted by your small business. Training sessions for your management and staff allow modeling of these traits and teach your workers how to incorporate the characteristics into daily business operations. Corporate Responsibility Effective companies have clear records of corporate responsibility. This work includes charity and environmental service and allows staff the opportunity to do community volunteering. Some small firms use corporate responsibility as a method to enhance the firm's public reputation, but effective organizations instead integrate community work as part of the core mission of the business Projects demonstrating corporate responsibility include recycling business waste, training and intern partnerships with local schools, donations to the needy and providing volunteers and goods during natural disasters. Developing partnerships with community agencies helps focus small business efforts and offers an established network for your company's volunteerism. Clear Direction Creating a mission statement and a list of corporate goals establishes a clear direction for your firm. Effective businesses have a clear corporate direction understood by the staff and clients. Targeting key business officers to present your company message to staff and the public helps workers understand the chain of operations and helps workers view your organization as a cohesive group with a unified message. Open Communication Effective businesses use open communication channels on all levels of operations. Industry Week defines an open communication culture as a business operation "in which information flows freely and is easily accessible to both insiders and to the public at large." Allowing open communication of nonconfidential information creates a work climate encouraging participation by your management, workers and clients. Member Empowerment "Member empowerment" is a term used to describe the employee perception of the role the staff plays in the organization. The ability to "determine work roles, accomplish meaningful work, and influence important decisions," according to a white paper on organization management, defines the elements of employee empowerment. Effective organizations use empowerment to create a cohesive work environment. Enhancing this feeling for your small business staff includes using teamwork, open communication channels and performance rewards to recognize excellence and promote production. Examples of rewards include awards of company stock, trophies, allowing bonus time away from work, and priority desk and parking lot assignments Teamwork Effective organizations use teamwork as a basis for complex decisions. Teamwork efforts in successful businesses include partnerships on all levels, from management staff through entry-level workers. Teamwork on the small business level brings multiple views to your projects, develops your staff's communication skills and creates an environment of cooperation. Working with a variety of other employees also allows your workers an opportunity to experience diversity on a personal level. The most effective use of teamwork incorporates group work as an essential part of project development.