Organizational Behavior UNIT 1
Reading material by Prof. Feza Tabassum Azmi
OB is a field of study that investigates the impact that individuals, groups, and structures have on
behaviors within organizations, and to use this knowledge to improve an organization’s overall efficiency
and effectiveness.
Essentially all managers are people managers and people (soft) skills are most important.
VIRO Framework: Resources should be valuable, inimitable, rare and original.
People are the most important assets.
Importance of OB- Effective Versus Successful Managerial Activities (Fred Luthans)
1. Traditional management
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Decision making, planning, and controlling
2. Communication
•
Exchanging information , interacting, listening and getting to know people
3. Human resource management
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Staffing, training, compensating, motivating, disciplining
4. Networking
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Socializing, politicking, developing contacts and public relations
Three Core Processes for Effectiveness
Sumantra Ghoshal and Christopher Bartlett opined that effective managers cultivate three processes
aimed at creating change through people:
 The Entrepreneurial Process: Motivating employees to run business as if they own them
(creating intrapreneurs).
 The Competence-Building Process: Fostering learning, collaboration and talent management.
 The Renewal Process: Challenging old assumptions and reinventing/rethinking the business
model and the basic way of functioning.
All these processes are built around people. They emphasize the importance of people management and
OB.
How Effective Managers Get the Job Done
All managers need to learn the “behavioural side of management”:
 Motivating people
 Recognizing accomplishments of subordinates
 Accepting a certain degree of opposition
 Helping subordinates assess strengths & weaknesses
 Passing on learning & knowledge
 Balancing workplace challenges and conflicts
 Maintaining co-opetition
 Pointing out problems and shortcomings amicably
New Age Organizations
Due to increasing uncertainty and turbulence in the business environment, modern-day organizations
are:
 Lean Organizations
 Flat and decentralized
 Boundaryless and team-based
 Empowered employees
 Flexi work, flexi time, flexi place
 Transparent & open
 Changing and learning
 Quality conscious & customer centric
 Knowledge & intellectual capital based
 Responsive, adaptive and agile
Basic OB Model
Three Levels of Analysis
The Independent Variables
The factors responsible for some change in the dependent
variable.
Independent
Variables
Individual-Level
Variables
Group-Level
Variables
Independent Variables
Individual-Level Variables: Person-specific characteristics
 Biographical characteristics
 Education and Learning
 Values and Attitudes
 Personality and Emotions
 Perception
 Motivation
Group –Level Variables: Group characteristics
 Communication
 Conflict and cooperation
 Power and politics
 Group structure and work teams
 Group decision-making
 Leadership and trust
Organization-Level Variables: Organizational characteristics
 Organization structure and design
 Organization culture
 HRM policies
Organization
System-Level
Variables
Dependent Variables
Productivity: A performance measure that includes effectiveness and efficiency.
Absenteeism: The failure to report to work.
Employee Turnover: The permanent withdrawal/quitting from an organization.
Effectiveness: Achievement of goals.
Efficiency: The ratio of output to the input required to achieve it.
Job satisfaction: The degree of contentment that an employee derives from his/her work.
Organizational citizenship behavior (OCB): Behavior that is not part of an employee’s formal job
requirements, but that promotes the effective functioning of the organization e.g. courteousness,
ethical responsibilities, helping nature etc.
Role of Contingency Variables
Contingency Model of OB
Contingency variables: There are few absolutes in OB
Situational/contingency factors: variables that moderate the
relationship between two or more other variables.
x
Contingency
Variables
Process Levels in the OB model
 The Person: Existential Processes
 Interpersonal: Empathic Processes
 The Role: Coping Processes
 The Group: Building Processes
 The Intergroup: Collaborative Processes
 The Organization: Growth Processes
 The Organization-Environment Interface: Influence Processes
 The Community: Social Awareness Processes
 The Society: Value Processes
y
Original OB vs. International OB
 Original OB thought developed in the US and was dominated by American principles of
capitalism, individualism and achievement.
 Original OB theorists emphasized only on the individual factors while the group was ignored.
 US OB research emulates natural sciences (cause and effect relation). OB is now understood as a
far more complex process due to the influence of culture.
The role of culture serves as a context for OB
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Each country has its own culture, values, traditions, beliefs, practices, customs and ideologies.
These differences in culture affect how people behave in organizations.
Hofstede has pointed out the strong influence of national cultures on OB.
International OB deals with behavioral issues related to different cultures for MNCs.
Thus necessitating a move from US theories to International OB.
Why International orientation to OB?
 To understand the dynamics of MNCs
 To understand international workforce dynamics
 To understand the internal functioning of organizations
 To develop new strategies to deal with people problems
 To understand and compare cultures
 To develop techniques to deal with culture differences
International OB: Convergence Vs Divergence
Convergence of Cultures
 Emergence of borderless world
 Global citizens, global products, global markets
 Cultures are getting alike internationally
 MacDonaldization (convergence of lifestyle)
Divergence of Cultures
 External/International Culture
 Internal/National Culture
 Regional/Sub-cultures
Culture is multifaceted, dynamic and complex making it all the more difficult to understand and
interpret behaviors.
Challenges and Opportunities for OB
1. Culture Awareness
OB challenges involve working with people from different cultures
Assimilating cultural similarities and differences
Culture analysis involves two divergent themes:
 Culture Universals: There are certain common cultural practices and values across the world.
 Culture Differentials: Most values and practices, however, differ across the world. Differentials
involve cross-cultural evaluation e.g. religious festivals, communication style, behaviour, societal
traditions.
Edward Hall’s High-Context (V.S) Low-Context Cultures:
High context refers to societies where people have close personalized connections over a long period of
time.
Low context refers to societies where people tend to have many connections but of shorter duration or
for some specific reason.
High Context Culture
•
•
•
•
•
Less verbally explicit communication
Less written/formal information
Long term bonds, relationships
Strong boundaries between “member” vs “outsider”
Decisions and activities focus around personal face-to-face relationships
Low Context Culture
• Rule oriented, people play by external rules
• More knowledge is codified
•
Interpersonal connections of shorter duration
• Contractual relationships
• Decisions and activities focus on business
2. Responding to Globalization
Organizations are no longer constrained by national borders. With the emergence of global village and
borderless world, manager’s job is also changing. Globalization is both a challenge and an opportunity
– Increased foreign assignments
– Increased mobility
– International work values
3. Managing Diversity
Organizations today have a more diverse workforce in terms of gender, age, race, nationality, ethnicity
which is a challenge–
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–
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Diversity enhances creativity, flexibility and responsiveness
One has to value differences and replace melting-pot assumption
Accommodating individual differences is important
Differentiating not discriminating is the key
–
Customizing training, communication, benefits etc.
Changing US Demographics
 Increase in Female Workers (nearly 50% today)
 More females in colleges than men
 Ageing Baby boomers
 Shortage of young workers
 Rising migrant population
Changing Indian Demographics
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Young age population (demographic dividend)
Rise in female workers in urban areas
Rise in student-population ratio
Decline in agricultural workforce
Major rise in employment in service sector
This reflects increasing diversity in demographics. This diversity gets reflected at the workplace.
4. Improving Quality and Productivity
– Quality consciousness
– Redefining jobs and retraining
5. Responding to the Labor Flight and mobility
– Controlling attrition rates and job hopping
– Providing promotions and rewarding loyalty
6. Improving Customer Service
– Importance of customer experience & service quality
– Building customer-responsive cultures
Other Challenges
 Improving People Skills
 Empowering People
 Stimulating Innovation and Change
 Coping with uncertainty
 Working in networked organizations
 Helping employees with Work-Life balance
 Improving Ethical Behavior
Unit 2- Personality
Notes by
Prof Feza Tabassum Azmi
What is Personality?
Latin ‘per sonare’ which means ‘to speak through’. The sum
total of ways in which an individual reacts and interacts with
others. It is often described in terms of some measurable
traits.
According to Ruch, personality includes:
 External appearance and behaviour
 Internal awareness of self
Organization of external and internal traits
Personality Determinants
Biological Factors:
Heredity: Physical, mental and emotional traits are often
inherited. Genetics may account for 50% of differences.
Brain: Structure of brain determines personality.
Physical Feature: External appearance & characteristics
Environment: Family, school, friends, social groups, and
other cultural influences shape our personality’s
socialization and identification process.
Situation: One person’s personality may change in
different situations. For instance, a child may behave
differently in school than when he is at home. So situation
also influences what traits we exhibit.
Personality Traits
Enduring characteristics that describe an
individual’s behavior. Popular traits could be shy,
aggressive, submissive, lazy, ambitious, loyal etc.
Traits are bricks that make the personality house.
The more consistent the characteristics, the more
important that trait is in defining personality.
 Traits can help in employee selection, matching
people to jobs, and in guiding career decisions.
The Myers-Briggs Type Indicator and Big Five
Model are two dominant frameworks for identifying
and classifying traits.
The Myers-Briggs Type Indicator (MBTI)
A
personality-assessment
instrument
used
in
organizations. It uses questions to ask people how they
behave in particular situations and taps four
traits/characteristics and classifies people into 1 of 16
personality types.
Personality Traits
• Extrovert (outgoing) vs. Introvert (shy): E or I
• Sensing (practical) vs. Intuitive (sensitive): S or N
• Thinking (reasoning) vs. Feeling (emotional): T or F
• Judging (systematic) vs. Perceiving (flexible): J or P
Implications
Different combinations of the four traits may arise e.g.
INTJs are visionaries.
A survey of 13 successful businessmen of the world,
revealed that all 13 were intuitive thinkers.
MBTI is a popular tool with organizations
Valuable tool for assessing personality, increasing
self-awareness, and providing career guidance.
However, there is no link between MBTI results and
job performance
The Big Five is a more popular instrument than MBTI.
The Big Five Model of Personality Dimensions
Extroversion
Outgoing, sociable, gregarious, and assertive
Agreeableness
Good-natured, cooperative, and trusting.
Conscientiousness
Responsible, reliable, dependable, persistent, and organized.
Emotional Stability
Calm, self-confident, secure, positive
Openness to Experiment
Imaginative, artistic, sensitive and intellectual
Implications
Big Five provides a unifying personality framework
Research has linked these traits with performance
The trait that was found to have maximum impact on
performance in varied occupational groups was
conscientiousness. These people also exhibited high
level of sincerity, job efforts, job knowledge and OCB
Emotional stability had least impact on performance.
Other traits were also linked to performance but their
impact varied among different occupations.
Extroversion was important to sales people,
agreeableness was important for HR people. Openness
was important for R & D.
Major Personality Attributes Influencing OB
 Locus of control
 Machiavellianism
 Self-esteem
 Self-monitoring
 Ambiguity tolerance/Risk taking
 Personality types (A-B)
Locus of Control
The degree to which people believe
they are masters of their own fate.
Internals
Individuals who believe that they
control their fate and what
happens to them.
Externals
Individuals who believe that
what happens to them is
controlled by outside forces
such as luck or chance.
Locus of Control
Externals are less satisfied with their jobs, have
high absenteeism rates and are less involved in
their jobs.
Internals are more motivated and willing to work
Internals attribute organizational outcomes to
their own actions
 Internals are suited for jobs that require
initiative, innovation & independence (product
development).
Externals are compliant and follow instructions,
hence suited for jobs that are systematic, wellstructured and routine (accounting).
Machiavellianism
Degree to which an individual is pragmatic, maintains
emotional distance, and believes that ends can justify means.
Effective in manipulating situations, influencing and persuading
others. Often resort to tricks and clever ploys to get things
done. They are smart communicators.
Conditions Favoring High Machs:
• Direct interaction (face to face)
• Minimal rules and regulations (improvisation)
• Other person is easily emotionally distracted
Successful in sales, marketing and negotiation jobs.
Ethical underpinnings of Machiavellian approach ???
4–11
Self-Esteem (SE)
Individuals’ degree of liking or disliking themselves.
Individual’s regard and respect for oneself.
SE is directly related to expectations for success
High SEs are confident and believe in their abilities
They are ready to take risky and unconventional jobs
They are less susceptible to external influences
They are more satisfied with their jobs than low SEs
Low SEs are dependent on other’s approval and
instructions. Believe in conforming and complying
Low SEs are more concerned with pleasing others and
taking popular stands.
Self-Monitoring (SM)
An individuals ability to adjust his/her behavior to external,
situational factors.
 High SM individuals adapt well to different situations, are
sensitive to external cues and adjust accordingly. They may
hide true emotions. May act diplomatically sometimes.
 Low SM individuals tend to display true emotions and
cannot disguise
 High SMs show higher performance, get promotions
faster and emerge as leaders. But have lesser commitment
and are more mobile with careers.
Successful in managerial positions that require playing
multiple roles
Ambiguity Tolerance (Risk-Taking)
 High Risk-taking Managers
– Make quicker decisions
– Use less information to make decisions
– Operate in flexible and more entrepreneurial organizations
 Low Risk-taking Managers
– Are slower to make decisions
– Require more information before making decisions
– Exist in stable environments
Risk Propensity (RP)
– Aligning managers’ risk-taking propensity to job
requirements is beneficial to organizations.
– Marketing jobs may require High RP, accountant may do
well with low RP.
A-B Personality Types
Type A: workaholics, achievement-driven
 strive to think or do two or more things at once
 are always time-pressed-cannot afford leisure time
 are obsessed with numbers, measuring their success in
terms of how many or how much
 they set lot of deadlines and often suffer from stress
 feel impatient with the speed of events
 may be seen moving, walking, and eating while working
 are laborious and plan out things in details
 they are sincere, consistent and self-motivated
 Suited for jobs that require long hours and details
A-B Personality Types
Type B: Happy-go-lucky
 never suffer from a sense of time urgency or impatience
 Believe in fun and relaxation, are easily satisfied
 Can relax without guilt, sometimes are complacent
 Do not suffer much from stress
 Are less consistent in behaviour
 Do not display their achievements or accomplishments
 But they may be creative and may come up with unique
solutions to unique problems
 Given necessary motivation, they may sometimes prove
themselves
Proactive/Reactive Types
Proactive Personality
Identifies opportunities, shows initiative, takes action,
and perseveres until meaningful change occurs.
Creates positive change in the environment, regardless
or even in spite of constraints or obstacles.
They succeed as leaders and change agents
They have drive and entrepreneurial passion
Have high rate of career success
Develop contacts, seek information and influence others
Suited for marketing, PR, strategic decision-making
Achieving Personality Fit
Personality-Job Fit
Theory (Holland)
Identifies six personality
types and proposes that
the fit between personality
type and occupational
environment determines
satisfaction and turnover.
Personality Types
• Realistic
• Investigative
• Social
• Conventional
• Enterprising
• Artistic
Holland’s
Typology of
Personality
and
Congruent
Occupations
Relationships
among
Occupational
Personality
Types
Person-Organization Fit
Attention has recently shifted to person-organization fit.
Since today’s jobs are fluid and ever-changing, matching
people to organizations is more important. If the fit is not
there, people start leaving the organization. Better fit
leads to higher satisfaction and performance.
Extroverts fit better with aggressive and team-oriented
cultures.
Agreeable people match better with less-aggressive
and supportive cultures
 Experimentative people fit better in cultures that
promote innovation
Psychoanalytic Theory: Sigmund Freud, Carl Jung
Man is motivated by an subconscious framework of 3 forces:
Id: Source of energy that seeks gratification of desires &
instincts like thirst, hunger and material pleasures.
Ego: The id may be unchecked if ego does not control it
through intellect & reason. The ego is the conscious part of
human personality. The two are always in conflict.
Super Ego: Ego is aided by super ego. It represents societal
or personal norms (conscience) that provides values to ego.
Application: The theory gives an insight into behaviour and
personality. It may be used to understand which force
dominates in an employee. Accordingly, managers may mould
employee behaviours. Some employees are self-regulated.
They have a moral ego force. For some employees, superego
in the form of organizational values/ethics, moral standards or
peer pressure etc. may be imposed to redirect behaviours.
Socio-Psychological Theory: Adler, Fromm
Interdependence of individual and society. Socio-psychological
variables (e.g. social context, social relationships, interpersonal
orientation) shape personality.
Behaviour is conscious- it results from the need to interact with
others in society. This interaction could be of three types:
 Compliant: Move towards others
 Aggressive: Move against others
 Detached: Move away from others
Application: The theory offers explanations of personality in
terms of how people behave with others. It may help managers
understand employees’ personalities. This may help in deciding
what kinds of tasks and jobs suit different employees. Some
people are good team workers while some take up individual
assignments better.
Trait Factor Theory: Allport, Cattell
Trait theory talks about continuity of personality- an
individual’s personality is composed of traits.
Traits predict personality
Traits can be inferred from behavioural indicators
Allport has identified common traits (which can be used to
compare people) and unique traits (personal predispositions)
Cattell has identified surface traits (those that lie at the
surface and are easily discernible-overt) and source traits
(those that are more hidden and ingrained-covert)
Application: The theory has contributed personality tests for
behavioural sciences. Managers may relate personality with
behaviours. It helps in predicting how people will behave in
different situations.
Self Theory: Carl Rogers, Maslow, Herzberg
Treats the organism as a whole and emphasizes the totality
and interrelatedness of behaviour. Four concepts of self:
Self-image: How one sees oneself, self-image or identity.
Ideal Self: The way one would like to be or want to be.
Looking glass-self: One’s understanding & perception of
what others think about him from cues that others give.
Real Self: What one really is and not one’s perception.
A person constantly re-evaluates himself in light of other’s
feedback and changes his self-image. He tries to constantly
improve his self-concept.
Application: People with different self-concepts need
different managerial interventions. People with weak selfimage may be counselled to boost their confidence. People
with strong self-image like to take up challenges.
Emotions
and
Moods
- Prof Feza Tabassum Azmi
Emotions and MoodsWhy are they important in OB?
 Emotions and moods are critical factors in
employee behavior
 The “myth of rationality”
 Extreme emotions and moods of any kind are
disruptive to organizations.
– Original OB focus was solely on the effects of strong
negative emotions and moods that interfered with
individual and organizational efficiency.
 Moods and Emotions mutually influence each
other
What Are Emotions and Moods?
Affect
A broad range of feelings that people experience
Emotions
Moods
Intense feelings that are
directed at someone or
something
Caused by something
Expressed (overt) and
action-oriented
Feelings that tend to
be less intense than
emotions and that lack
a contextual stimulus
 No specific cause
Not always expressed
(covert) and cognitive
4
–
3
Emotion Continuum
The closer any two emotions are to each other on the
continuum, the more likely people are to confuse them.
Felt vs. Displayed Emotions
Felt Emotions
An individual’s actual emotions
Displayed Emotions
Emotions that are shown
Emotional dissonance- Inconsistencies
between the emotions we feel and the
emotions we display.
Emotional Labor- A situation in which
an
employee
expresses
organizationally desired emotions
Aspects of Emotions
 Biology of Emotions
– Originate in the brain
 Intensity of Emotions
– Personality
– Context e.g. Job requirements
 Frequency and Duration of Emotions
– Some emotions may be frequently exhibited
– Most emotions don’t last long
 Functions of Emotions
– Critical for rational thinking
– Help in communication and work
– Positive emotions enhance performance
Sources of Emotions and Moods
 Personality
 Day and Time of the Week
 Weather
 Stress
 Social Activities
 Sleep
 Exercise
 Age
 Gender
Gender and Emotions
 Women
– Experience emotions more intensely
– Display emotions more frequently
– Are more comfortable in expressing emotions
– Are better at reading others’ emotions
 Men
– Believe that displaying emotions is inconsistent with
the male image
– Are innately less able to read and to identify with
others’ emotions
– Have less need to seek social approval by showing
positive emotions
Emotional Intelligence EQ
 Self-awareness = Know how you feel
 Self-management = Manage your impulses
 Self-motivation = Motivate yourself and persist
 Empathy = Sense and understand what others feel
 Social Skills = Handle emotions of others
Research Findings: High performers have
high EI scores, not high IQ scores.
 Humour
 Gossip
 Friendship
 Politics
 Selfishness
 Satisfaction, Happiness
Organizational Behaviour Unit 2: Perception
Reading material by Prof. Feza Tabassum Azmi
A process by which individuals select, organize and interpret their sensory impressions in order to
give meaning to their environment.
Managers need to sharpen their perceptual skills so as to correctly understand people, events and
situations.
• People’s behavior is based on their perception of what reality is, not on reality itself.
• Perception is one’s interpretation of reality.
Perception Model/Process
Size
Contrast
Novelty
Input/Stimuli
Objects
Events
People
Characteristics of Stimuli
Appearance
Intensity
Repetition
Motion
Status
Perception Process
Select Organize
Characteristics of Situation
Location (Physical/Social)
Organizational
Timing
Roles
Interpret
Output
Values
Attitudes
Behavior
Characteristics of Perceiver
Needs & Motives
Self-concept
Past experience
Psychological state
Personality
Input: All stimuli that we receive from the environment
Process: Transforming inputs into outputs
Select- Choosing which stimuli to receive and which to avoid (selective perception)
Organize- A cognitive process of arranging inputs in a logical manner to extract meaning out of them
Figure & Ground: organize information that stands out
 Grouping: Clubbing individual stimuli into patterns
 Simplifying: Focusing on main issues, ignoring others
 Closure: Filling in missing pieces of data
 Interpret- Making sense out of the stimuli
Output: The outcome of perception process-values, attitudes, behaviours. The lesser the biases in
perception, the better the perception of the “reality” helping us make correct judgments.
Characteristics of Stimuli
Size : We may notice a very big or a small letter
Appearance: Strange clothing of the speaker
Intensity: Strong or bold colours
Contrast: Something in sharp difference
Repetition: Something written written repeatedly
For class discussion by Dr. Feza Tabassum Azmi
Motion: Body language, gestures, movement etc.
Novelty: Use of novel and unique ideas
Status: The position/role of the person
Characteristics of Situation
Location: The place at which something is being perceived
Organizational: Characteristics and nature of the organization
Timing: The time of the date when perception is taking place
Roles: The role that one is into
Characteristics of Perceiver
Needs and Motives: People perceive things based on their objectives/motive
Self-Concept: If a person thinks he knows more than others, he is less likely to pay attention to others.
Past Experience: If employees know through past experience that boss may reprimand them for not
paying attention in a meeting, they are likely to be more attentive and alert in the meeting.
Psychological State: If a student is worried/not well, he may not listen to the teacher in class
Personality: A serious/sincere student is more likely to pay attention and make efforts to perceive
things correctly.
Perception: Making Judgments About Others
Attribution Theory
When individuals observe behavior, they attempt to determine whether it is internally or externally
caused.
 Distinctiveness: shows different behaviors in different situations.
 Consensus: response is the same as others to same situation.
 Consistency: responds in the same way over time.
Fundamental Attribution Error: The tendency to underestimate the influence of external factors and
overestimate the influence of internal factors when making judgments about the behavior of others.
Self-Serving Bias: The tendency for individuals to attribute their own successes to internal factors
while putting the blame for failures on external factors.
Frequently Used Shortcuts/Errors in Perception
Selective Perception
People selectively interpret what they see on the basis of their interests, background, experience, and
attitudes.
Selective perception allows us to “speed read” others and jump to wrong conclusions.
A teacher may notice a late comer one day but not another the second day.
For class discussion by Dr. Feza Tabassum Azmi
Halo Effect
Drawing a general impression about an individual on the basis of a single characteristic. If some
employee is poor in communication, we may think he is not an effective worker
Contrast Effects
Evaluation of a person’s characteristics that are affected by comparisons with other people recently
encountered who rank higher or lower on the same characteristics. In an interview your performance
may be judged by who came before you.
Projection
Attributing one’s own characteristics to other people. They tend to think that most people are like
them. If one is ethical, he would expect others to be the same.
Stereotyping
Judging someone on the basis of one’s perception of the group to which that person belongs. e.g.
people of a certain region are like this, young people are non-sincere, older people are wise, women
are poor managers, men can’t look after children
Specific Applications in Organizations
 Employment Interview: Perceptual biases of raters affect the accuracy of interviewers’
judgments of applicants.
 Performance Expectations: Self-fulfilling prophecy (pygmalion effect): The performance of
employees reflects leaders’ expectations about capabilities.
 Ethnic Profiling: A form of stereotyping in which a group of individuals is singled out—
typically on the basis of race or ethnicity.
 Performance Evaluations: Appraisals are often the subjective (judgmental) perceptions of
appraisers of another employee’s job performance.
 Employee Effort: Assessment of individual effort is a subjective judgment subject to
perceptual distortion and bias.
Honing Perceptual Skills: Johari Window-Joe Luft and Harry Ingham
Honing Perceptual Skills: Johari Window-Joe Luft and Harry Ingham
 Perceiving Oneself Correctly: Removing blind areas is very important
 One can overcome the blind spots by getting feedback from others
and using it to improve one’s self-concept.
 Closely monitoring one’s public area is crucial
 One should tactically use one’s private area as this is your strength
 One should also try to convert one’s dark areas into a private area
Others Know
Others Don’t Know
I Know
I don’t Know
Public Area
“Open Self”
Blind Area
“Blind Self
Private Area
“Hidden Self”
Dark Area
“Undisclosed
Self”
Honing Perceptual Skills
 Being Empathic
 Having Positive Attitudes and being objective
 Avoiding biases-stereotypes, halo, projection
 Communicating regularly and getting feedback
For class discussion by Dr. Feza Tabassum Azmi
 Avoiding attributions and generalizations
 Trying to study underlying causes of behaviours
 Avoiding jumping to conclusions & being conscious of selective perception
For class discussion by Dr. Feza Tabassum Azmi
OB Unit 3: Motivation
Motives: Latin word movere (to move). An inner state that energizes, activates and directs the behaviour.
Motivation: While motives are energizers of action, motivation is the actual action. The processes that account
for an individual’s intensity, direction, and persistence of effort toward attaining a goal.
Key Elements
1. Intensity: how hard a person tries
2. Direction: towards beneficial goal
3. Persistence: how long a person tries
Theories of Motivation
Content or Need theories: Look at the motives or needs in individuals that influence behaviour. Maslow,
McGregor, Alderfer, McLelland.
Process or Cognitive theories: Look into the dynamic processes of how people assess work situations and make
decisions cognitively as to what work behaviour they should engage in. Adams, Vroom, Porter & Lawler
Reinforcement theories: Look at behaviour as a response of individuals to the stimuli they are exposed to. By
changing the stimuli in the environment, the behaviour of people can be altered.
Maslow’s Hierarchy of Needs Theory
There is a hierarchy of five needs present in all individuals —physiological, safety, social, esteem, and selfactualization; as each need is substantially satisfied, the next need becomes dominant. It is a deprivationgratification approach to need satisfaction.
Lower-Order Needs
Needs that are satisfied externally; physiological and safety needs.
Higher-Order Needs
Needs that are satisfied internally; social, esteem, and self-actualization needs.
For class discussion (Dr. Feza T. Azmi)
Theory X and Theory Y (Douglas McGregor)
Theory X
Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to
perform.
Theory Y
Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise selfdirection and self-control when committed to a goal.
Two-Factor (Motivation-Hygiene)Theory by Frederick Herzberg: Intrinsic (motivation) factors are related to
job satisfaction, while extrinsic factors (hygiene) are associated with dissatisfaction.
Hygiene Factors: Extrinsic factors e.g. company policy and administration, supervision, and salary—that, when
adequate in a job, pacify workers. When these factors are not present, people will be dissatisfied.
Motivation Factors: Intrinsic factors e.g. advancement, recognition, responsibility, achievement. When they are
present, it leads to satisfaction and hence motivation.
ERG Theory: Clayton Alderfer
There are three groups of core needs: existence, relatedness, and growth.
Core Needs
¾ Existence: provision of basic material requirements.
¾ Relatedness: desire for relationships.
¾ Growth: desire for personal development.
Clubbed Maslow’s 5 needs into three.
¾ More than one need can be operative at the same time.
¾ If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases.
For class discussion (Dr. Feza T. Azmi)
David McClelland’s Theory of Needs
Achievement: The drive to excel, to achieve, to strive to succeed. They look for challenges, autonomy,
responsibility, individual achievement
Power: The need to make others behave in a particular way (personal power – satisfy own need for power and
institutional power-keep organizational goals and interests supreme)
Affiliation: The desire for friendly and personal relations. Will perform better in jobs that give support, teamwork,
friendly relations
Adam’s Equity Theory
Individuals compare their job inputs and outcomes with those of others and then try to eliminate any
inequities (motivation).
Referent Comparisons:
Self-inside: An employee’s experience in same organization
Self-outside: An employee’s experience in another organization
Other-inside: Another person in same organization
Other-outside: Another person in another organization
Reactions/Choices for dealing with inequity:
1. Change inputs (slack off)
2. Change outcomes (increase output)
3. Distort/change perceptions of self
4. Distort/change perceptions of others
5. Choose a different referent person
6. Leave the field (quit the job)
For class discussion (Dr. Feza T. Azmi)
Distributive Justice: Perceived fairness of the amount and allocation of rewards among individuals. This
affects job satisfaction.
Procedural Justice: The perceived fairness of the process to determine the distribution of rewards. This
affects organizational commitment, trust and intention to quit.
Thus organizations should ensue both types of justice. Communicating how performance was evaluated
and how rewards were decided helps build trust. Procedural justice may sometimes offset the
dissatisfaction caused by distributive justice. Thus equity helps in motivating employees to perform
better.
Expectancy Theory (Victor Vroom)
The strength of a tendency to act in a certain way depends on the strength of an expectation that the act
will be followed by a given outcome and on the attractiveness of that outcome to the individual.
¾ Effort–Performance Relationship (Expectancy)
–
The probability that exerting a given amount of effort will lead to performance. Motivation is
high if relationship is high.
¾ Performance–Reward Relationship (Instrumentality)
–
The belief that performing at a particular level will lead to the attainment of a desired outcome.
Motivation is high if relationship is high.
¾ Rewards–Personal Goals Relationship (Valence)
–
The degree to which organizational rewards satisfy an individual’s goals or needs and the
attractiveness of potential rewards for the individual. Motivation is high if relationship is high.
Motivation (Force) is the actual effort put up by a person.
Motivation= (E)X(I)X(V)
¾ The three have a multiplicative rather than additive effect on the actions of an individual. No individual
cognitively goes through all the calculations and probabilities, but this process goes on intuitively in the
minds of individual regarding how much effort one must put.
¾ The theory explains the rationale behind companies adopting variable incentive schemes, performancelinked-pay, cafeteria benefits etc.
¾ It also explains why merit based pay (mainly private sector) are more motivating than seniority based pay
(mainly public sector)
For class discussion (Dr. Feza T. Azmi)
Porter and Lawler’s Model
1
Valence
5
7
Ability
& Traits
Intrinsic
rewards
10
Equity
3
4
9
Effort
Performance
Satisfaction
2
6
8
Expectancy &
Instrumentality
Role
Perception
Extrinsic
rewards
1. Put the right person in job (match abilities & traits to suit the requirements of the job)
2. Explain to employees their roles for clear role perceptions
3. Explain clearly the performance targets expected
4. Make sure that rewards are valued by employees
If high levels of motivation are to be induced, managers should ensure that employees perceive a direct link
between performance and rewards.
Goal-Setting Theory (Edwin Locke)
Intention to work towards a goal is a source of motivation & performance. Goals act as motivators if they have 3
characteristics:
¾ Specificity: Goals that are set in clear terms and are not vague.
¾ Challenging/difficult: Slightly difficult goals are more challenging.
¾ Participation and acceptance: If individuals participate in setting their own goals, the goals have more
acceptability.
¾ Feedback: People do better if they get feedback on their progress.
Factors influencing the goals–performance relationship:
Goal commitment (high), self-efficacy (high), task characteristics (simple, clear, independent) and national culture
(More relevant in Western context).
For class discussion (Dr. Feza T. Azmi)
Management by Objectives
MBO is a technique used by managers to motivate employees to perform well by using the goal-setting theory.
Managers can make effective use of MBO if:
•
•
•
•
•
they focus on specific goals
goals are set together with subordinates
goals have a plan of action
managers give useful feedback on progress
give suitable rewards on goal attainment
Self- efficacy Theory of Motivation
SE is a person’s belief about his or her chances of success. It indicates an individuals’ level of confidence in
oneself. It is a specific dimension of self-esteem.
It arises from a person’s past experiences with his performance and well as others’ conviction in him.
High self-efficacy is strongly related to performance & success.
High self-efficacy individuals handle physical and mental tasks more ably and are less susceptible to anxiety,
depression, psychological disorders etc.
Low self-efficacy is related with learned helplessness, the belief that one has no control on one’s success.
Self-Efficacy Model and its Mechanism
Sources of self-efficacy
Feedback
High
Experience
Behaviour
models
SelfEfficacy
Beliefs
Persuasion
Physical &
emotional
state
Low
Behaviour
ƒ Be active
ƒManage the situation
ƒSet goals
ƒPlan, prepare, practice
ƒTry hard, persevere
ƒSolve problems
ƒLearn from failures
ƒVisualize success
ƒLimit stress
ƒBe passive
ƒAvoid difficult tasks
ƒHave weak aspirations
ƒHave low commitment
ƒDon’t even try
ƒ Become discouraged
ƒQuit the task
ƒThink of excuses
ƒDevelop stress
For class discussion (Dr. Feza T. Azmi)
Results
Success
Failure
Implications of SE theory
¾
¾
¾
¾
¾
Hiring: Interview questions can be designed to probe a person’s self-efficacy
Job design: Designing challenging and autonomous tasks
Training: improving self-efficacy through coaching and counseling
Rewards: Recognizing achievements to boost self-efficacy
Leadership development: Building leadership skills by encouraging people with high self-efficacy
Reinforcement Theory
Goal-setting theory assumes an individuals’ purpose directs his actions (cognitive). The present theory assumes
that reinforcement leads to action or that behavior is a function of its consequences (behavioural). The theory does
not explain what initiates behaviour but it explains what controls behaviour. Behaviour may be changed by
reinforcement.
Behavior is environmentally caused.
Behavior can be modified (reinforced) by providing (controlling) consequences.
Reinforced behavior tends to be repeated.
Motivational Techniques for Indian Settings
¾ Jobs are rather restricted in India allowing little motivation
¾ Organizations allow little scope for higher order needs
¾
Cultural values place importance on seniority rather than merit which results in demotivation
¾
Most organizations also lack a sound appraisal system
¾
Indian labour is still seen as indifferent, lazy, lethargic, non sincere and lacking high self-efficacy and
motivation.
¾ Indian workers rate low on commitment, loyalty, ethics
However, things are improving. The profile of Indian workers and Indian managers is changing fast. The rational
economic man concept is no longer valid.
¾ Theory X was more popular in India. But recent developments in management styles have made Indian
managers shift to Theory Y.
¾ While lower level workers in India are still struggling to fulfil lower order needs, those in managerial
positions have higher order needs to satisfy.
¾ Adam’s and Vroom’s theory have great implications for Indian workers.
¾ MBOs have not been very successful in India in the past.
¾ Monetary rewards are still cherished
¾ Non-monetary rewards like recognition, career opportunities
¾ Involving staff in generating ideas
¾ Designing non-monotonous, challenging jobs
¾ Giving freedom and autonomy
For class discussion (Dr. Feza T. Azmi)
¾
¾
¾
¾
¾
¾
¾
Recognizing and fulfilling needs
Recognizing and rewarding merit rather than just seniority
Promoting individual growth and talent
Setting motivating goals in participation
Developing reliable appraisal and equitable reward systems
Being fair and objective
Making clear what is valued in organizations
Learning
Any relatively permanent change in behavior that occurs as a result of experience. In order to explain and
predict behaviour in organizations, we need to understand how people learn.
Learning
•
Involves change (favourable or unfavourable)
•
Is relatively permanent
•
Is concerned with behaviour
•
Is acquired through experience
Classical Conditioning: Ivan Pavlov
A type of conditioning in which an individual responds to a stimulus that would not ordinarily produce such a
response. Experiment to teach a dog to salivate in response to ringing of a bell.
•
Unconditioned stimulus: meat
•
Unconditioned response: salivation (natural response to meat alone)
•
Conditioned stimulus: bell with meat (artificial stimulus)
•
Conditioned response: salivation (the bell produced a response even when presented alone
Learning a conditioned response involves building an association between an unconditioned stimulus and
a conditioned stimulus.
Classical conditioning is passive.
We react to a specific event. It explains simple reflexive and subconsciously learned behaviour rather than
voluntary and consciously learned behaviour.
Operant Conditioning Theory: B F Skinner
A type of conditioning in which desired voluntary behavior leads to a reward or prevents a punishment.
Behaviour is a function of its consequences.
For class discussion (Dr. Feza T. Azmi)
Reinforcement (creating pleasant consequences) strengthens a behaviour and increases its chances of getting
repeated.
If behaviour is not positively reinforced, its probability of getting repeated decreases.
We learn to behave in certain ways based on our past experience of the consequences of that behaviour.
Social-Learning Theory: A Bandura
People can learn through observation of others as well as direct experience. Much of what we have learned has
come from watching others- parents, teachers, friends etc. People respond in response to their model’s behaviour.
•
Attentional processes: Influence of models who are attractive, important, related and available
•
Retention processes: Influence of models whose actions can be recalled easily
•
Motor reproduction processes: Influence of models whose actions can be adopted
•
Reinforcement processes: Influence of models whose actions will lead to positive rewards or
reinforcement
Cognitive Learning Theory
Learning occurs by cognitive and analytical thinking about a situation and by synthesizing facts about it. Such
learning is very close to problem solving.
Cognitive Learning Theory
Learning occurs by cognitive and analytical thinking
about a situation and by synthesizing facts about it.
Such learning is very close to problem solving.
Kolb Model
1
Concrete
experience
2
Observation
& Reflection
4
Testing of
hypothesis
in future
3
Formation of
abstract
concept &
generalization
For class discussion (Dr. Feza T. Azmi)
The Learning Cycle
Concrete experience: Person goes for a job interview and gets rejected
Observation & reflection: In reflecting back, the person feels that he gave confusing answers
Generalization: He concludes that in interviews one should give clear-headed rather than confusing answers
Testing in future: In the next interview he tries out the above learned idea
¾ Learning is more than a stimulus-response process. It involves conscious thinking and analysis.
¾
Learning is a highly individualized and internal process.
¾ Learning is a continuous process.
¾ As learning process is cyclical, it is possible to begin new learning at any stage.
¾
New experiences invalidate the old. So forgetting also takes place along with learning.
Shaping Behavior: A Managerial Tool
Attempt to mould individuals by guiding their learning in graduated steps
Systematically reinforcing each successive step that moves an individual closer to the desired response.
Reinforcement helps in shaping behaviours by making people learn what is desired.
Reinforcement is successive steps helps create responses that get closer to the desired response/behaviour.
Shaping is thus an important managerial tool
For class discussion (Dr. Feza T. Azmi)
OB Unit 4: Group
Two or more individuals interacting and interdependent, who have come together to achieve particular objectives.
Formal Group: A designated work group defined by the organization’s structure.
Informal Group: A group that is neither formally structured nor organizationally determined; appears in
response to the need for social contact.
Command Group: A group composed of the individuals who report directly to a given manager.
Task Group: Those working together to complete a job or task.
Interest Group: Those working together to attain a specific objective with which each is concerned.
Friendship Group: Those brought together because they share one or more common characteristics.
Why People Join Groups
•
Security
•
Status
•
Self-esteem
•
Affiliation
•
Power
•
Goal Achievement
The Five-Stage Model of Group Development
Forming Stage: The first stage in group development, characterized by much uncertainty. Members “test the
water” to see what types of behaviours are acceptable. This stage is complete when members begin to think of
themselves as part of the group.
Storming Stage: The second stage in group development, characterized by intragroup conflict. There is
acceptance of the group but conflict over who will control the group. This stage is complete when there is some
hierarchy of leadership.
Norming Stage: The third stage in group development, characterized by close relationships and cohesiveness.
There is now a sense of group identity and camaraderie. This stage is complete when group structure and common
behaviour evolves.
Performing Stage: The fourth stage in group development, when the group is fully functional. Group energy has
evolved to perform
Adjourning Stage: The final stage in group development for temporary groups, characterized by concern with
wrapping up activities rather than performance. Some are upbeat about the groups accomplishments. Some, a
little sad over the groups disbandment.
For class discussion (Dr. Feza T. Azmi)
An Alternative Model: Temporary Groups with Deadlines
Punctuated-Equilibrium Model
Temporary groups go through transitions between inertia and activity.
Sequence of actions:
1. Setting group direction
2. First phase of inertia
3. Half-way point transition
4. Major changes
5. Second phase of inertia
6. Accelerated activity
Group Structure Properties I – Roles
Role Expectations
How others believe a person should act in a given situation.
Psychological Contract
An unwritten agreement that sets out what management expects from the employee and vice versa.
Role Conflict
A situation in which an individual is confronted by divergent role expectations.
Norms
Acceptable standards of behavior within a group that are shared by the group’s members.
Classes of Norms:
•
Performance norms
•
Appearance norms
•
Social arrangement norms
•
Allocation of resources norms
Hawthorne Studies
¾ A series of studies undertaken by Elton Mayo at Western Electric Company’s Hawthorne Works in
Chicago between 1924 and 1932.
¾ Research Conclusions:
For class discussion (Dr. Feza T. Azmi)
¾ Worker behavior and sentiments were closely related.
¾ Group influences (norms) were significant in affecting individual behavior.
¾ Norms were highly effective in establishing individual worker output.
¾ Money was less a factor in determining worker output than were group standards, sentiments, and
security.
Conformity
¾ Adjusting one’s behavior to align with the norms of the group.
Reference Groups
¾ Important groups to which individuals belong or hope to belong and with whose norms individuals are
likely to conform.
Deviant Workplace Behavior/workplace incivility
¾ Antisocial actions by organizational members that intentionally violate established norms and result in
negative consequences for the organization, its members, or both.
Typology of Deviant Workplace Behavior
Category
Examples
Production
Leaving early
Intentionally working slowly
Wasting resources
Property
Sabotage
Damage
Stealing from the organization
Political
Showing favoritism
Gossiping and spreading rumors
Blaming coworkers
Personal Aggression
Sexual harassment/lying/
Verbal abuse
Stealing from coworkers
Source: Adapted from S.L. Robinson, and R.J. Bennett. “A Typology of Deviant Workplace Behaviors:
A Multidimensional Scaling Study,” Academy of Management Journal, April 1995, p. 565.
For class discussion (Dr. Feza T. Azmi)
Group Structure Properties III - Status
Status: A socially defined position or rank given to groups or
group members by others. Groups develop some features to
differentiate themselves from others and develop status.
Freedom to
deviate from
norms
Individual
Power
Individual
Contribution
Group Member
Status
Individual
Characteristics
Freedom to
assert
Freedom to be
different
Group Structure Properties IV – Size
Size affects group’s overall behaviour and performance. Large groups are better at fact-finding, decision-making
and brainstorming. Small groups are better at completing tasks.
•
Odd number groups do better than even.
•
Groups of 7 or 9 perform better overall than larger or smaller groups.
Social Loafing: The tendency for individuals to expend less effort when working collectively than when working
individually (Ringelmann experiment). It challenges the logic of synergy.
For class discussion (Dr. Feza T. Azmi)
Overall group performance increases with group size, but addition of each new member has diminishing returns
on productivity.
Causes of Social Loafing:
¾
Belief that others are not putting their fair share.
¾ Dispersion of responsibility (no clear input-output-reward relation)
¾
Tendency to become free riders
How to Prevent Social Loafing:
¾
Have clear group and individual goals/targets
¾ Promote co-opetition
¾ Promote healthy inter-group competition
¾ Promote dialogue, team spirit, motivation
¾ Have a dynamic and popular group leader
¾ Engage in peer evaluation of the group
¾ Identify and reward individual effort in groups too
Group Structure Properties V – Composition
Group Demography: The degree to which members of a group share a common demographic attribute,
such as age, gender, race, educational level, or length of service in the organization, and the impact of this
attribute on turnover.
Cohorts: Individuals who, as part of a group, hold a common attribute.
Relationship Between Group Cohesiveness, Performance Norms, and Productivity
Cohesiveness: Degree to which group members identify with and are attached with each other and are motivated
to stay in the group.
Cohesiveness=> productivity
For class discussion (Dr. Feza T. Azmi)
Increasing group cohesiveness:
1. Make the group smaller.
2. Encourage agreement with group goals.
3. Increase the time that members spend together.
4. Increase group status and admission difficultly.
5. Stimulate competition with other groups.
6. Give rewards to the group.
7. Physically isolate the group.
Group Decision-Making Tasks
¾ Decision-making
–
Large groups facilitate the pooling of information about complex tasks.
–
Smaller groups are better suited to coordinating and facilitating the implementation of complex
tasks.
–
Simple, routine standardized tasks reduce the requirement of group processes.
Effectiveness Vs Efficiency
¾
Group decisions are more accurate, creative and acceptable-hence high in effectiveness.
¾ Individual decisions are faster-hence high in efficiency
Strengths
¾ More complete information
¾ Increased diversity of views
¾ Higher quality of decisions (more accuracy)
¾ Increased acceptance of solutions
Weaknesses
¾ More time consuming (slower)
¾ Increased pressure to conform
¾ Domination by one or a few members
¾ Ambiguous responsibility
For class discussion (Dr. Feza T. Azmi)
Groupthink: Phenomenon in which the norm for consensus overrides the realistic appraisal of alternative
course of action. Group pressures for conformity deter independent thinking.
Consensus overrides the realistic appraisal of alternate courses of action.
Groupshift: A change in risk between the group’s decision and the individual decision that members
within the group would make; can be either toward conservatism or greater risk.
The members tend to exaggerate their initial position-conservatives become more cautious and aggressive
people become more risk-seeking. Generally it has been seen that groups become more risk-seeking
because of group support and freedom from individual accountability
Symptoms Of The Groupthink Phenomenon
¾ Group members rationalize any chage to the personal assumptions they have made.
¾ Members apply direct pressures on those who express doubts about shared views.
¾ Members suppress, withhold or modify their true feelings to stick to the group norm
¾ Members who have doubts or differing points of view keep silent about misgivings.
¾ There appears to be an illusion of unanimity.
How to Reduce Groupthink Phenomenon
¾ Group size should not be very large.
¾ Leaders should be impartial and considerate.
¾ Encourage at least one member to play the devil’s advocate- to offer an alternate point of view.
¾ Leaders should actively seek opinion of each member
¾ Leader should not state his view in the early stages
¾ Weigh the pros and cons of all decisions
Group Decision-Making Techniques
Interacting Groups: Typical groups, in which the members interact with each other face-to-face.
Nominal Group Technique: Individual members meet face-to-face to pool their judgments in a systematic but
independent fashion.
¾
Members meet as a group but separately write down their ideas/solutions
¾ They present their ideas one by one
¾ Each idea is discussed in detail
For class discussion (Dr. Feza T. Azmi)
¾ Rank-ordering of ideas is done
¾ The idea with the highest score becomes the group decision
Brainstorming: An idea-generation process that specifically encourages any and all alternatives, while
withholding any criticism of those alternatives.
¾
About 6-8 members discuss an issue and present novel, unique ideas (freewheeling)
¾
Moderator notes down all ideas
¾ Ideas are discussed and decisions taken.
Electronic Meeting
¾ A meeting in which members interact on computers, allowing for anonymity of comments and
aggregation of votes.
Evaluating Group Effectiveness
Details and figures/tables have to be seen from text book (Robbins)
//////////////
For class discussion (Dr. Feza T. Azmi)
OB Unit 5: Leadership
Leadership: The ability to influence a group towards the achievement of goals.
Management: Use of authority inherent in designated formal rank to obtain compliance from organizational
members.
Traits Theories of Leadership
Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.
Leadership Traits:
•
Ambition and energy
•
The desire to lead
•
Honest and integrity
•
Self-confidence
•
Intelligence
•
High self-monitoring
•
Job-relevant knowledge
Limitations of Trait Theories
•
No universal traits found that predict leadership in all situations.
•
Traits predict behavior better in “weak” than “strong” situations.
•
Unclear evidence of the cause and effect of relationship of leadership and traits.
•
Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.
Behavioral Theories of Leadership
Theories proposing that specific behaviors differentiate leaders from nonleaders.
•
Trait theory: Leaders are born, not made.
•
Behavioral theory: Leadership behaviours can be taught.
For class discussion (Dr. Feza T. Azmi)
Behavioural Theory-Ohio State Studies
Dimensions of Leader Behaviour
Initiating Structure: The extent to which a leader is likely to structure his or her role and those of subordinates
in the search for goal attainment. High IS leaders emphasize meeting goals performance targets etc.
Consideration: The extent to which a leader is likely to have job relationships characterized by mutual trust,
respect for subordinate’s ideas, and regard for their feelings. Such leaders are people-oriented, emphasize
cooperation and consensus-building.
Leaders high in IS and consideration tend to achieve high employee performance and satisfaction.
University of Michigan Studies
Dimensions of Leader Behaviour
Employee-Oriented Leader: Emphasizing interpersonal relations; taking a personal interest in the needs of
employees and accepting individual differences among members.
Production-Oriented Leader: One who emphasizes technical or task aspects of the job.
Employee oriented leaders were associated with high employee productivity and job satisfaction.
The
Managerial/
Leadership
Grid
(Blake and Mouton)
For class discussion (Dr. Feza T. Azmi)
Scandinavian Studies
Researchers in Finland and Sweden question whether there are only two dimensions that capture the essence of
leadership behavior. Their premise is that in a changing world, effective leaders would exhibit developmentoriented behavior.
Development-Oriented Leader: One who values experimentation, seeking new ideas, and generating and
implementing change.
Development-oriented behavior is more directly related to employee effectiveness and satisfaction.
Summary of Behavioural Studies
Although behavioural theories talk about successful leadership behaviours, many a times their propositions are
not found to be true.
They have ignored situational factors in determining success.
Contingency theories assert the importance of situational factors in determining leadership success.
Contingency Theories
Fiedler’s Contingency Model: The theory that effective group performance depends on a match between a
leader’s style of interaction and the degree to which the situation gives control and influence to the leader.
Identifying Leadership Styles: Key factor in leadership success is one’s leadership style.
Least Preferred Co-Worker (LPC) Questionnaire: An instrument that purports to measure whether a person is
task- or relationship-oriented. It asks respondents to describe one person they least enjoyed working with on a
scale of 1-8 using various contrasting adjectives. If the least preferred person is rated very low-the respondents’
leadership style is task-oriented, otherwise relationship-oriented.
Defining the Situation: Three factors that determine situation
Leader-Member Relations: The degree of confidence, trust, and respect subordinates have in their leader (goodpoor).
Task Structure: The degree to which the job assignments are procedurized/structured (high-low).
Position Power: Influence derived from one’s formal position in the organization; includes power to hire, fire,
discipline, promote, and give salary increases (strong-weak).
Based on the three variables, leaders can face 8 different situations. Task-oriented leaders are more successful in
very favourable and very unfavourable situations and relationship-oriented leaders are successful in moderate
situations.
For class discussion (Dr. Feza T. Azmi)
Findings from Fiedler Model
Given this model,
¾ leaders need to be matched with situations.
¾ Change leaders to suit situation (have several leaders )
¾ Change situation to match leaders
The model is supported by various research studies.
Yet, there are practical problems in implementing the model.
It is quite complex and difficult to apply.
There are difficulties in measuring both leadership style and situational factors.
Cognitive Resource Theory: Fiedler & Garcia
Stress can unfavorably affect a situation and that intelligence and experience can lessen the influence of stress on
the leader.
•
A leader’s intellectual abilities correlate positively with performance under low stress and negatively
under high stress- intelligent leaders perform better under low stress.
•
A leader’s experiences correlate negatively with performance under low stress and positively under high
stress- experienced leaders perform better under high stress.
For class discussion (Dr. Feza T. Azmi)
Hersey & Blanchard Situational Leadership Theory
A contingency theory that focuses on followers’ readinessability & willingness to work.
Leader’s effectiveness
depends on matching his style to followers’ readiness
(intuitive appeal of the theory).
Unable and
Unwilling
Unable but
Willing
Able and
Unwilling
Able and
Willing
Follower readiness:
ability and willingness
Leader: decreasing need
for support and supervision
Directive
High Task and Relationship
Orientations
Supportive
Participative
Monitoring
Leader–Member Exchange (LMX) Theory
Leaders use different styles with different people. They create in-groups (favourites/trusted followers- who get
more attention and receive special privileges) and out-groups (less-favoured/ less-trusted/less privileged).
Subordinates are chosen for in-group status if they have similar characteristics as leader or if they are competent.
These followers will have higher performance ratings, less turnover, and greater job satisfaction. The theory
draws from the idea of ‘self-fulfilling prophesy’ or Pygmalion effect. LMX theory has ample research evidence.
Leader-Member Exchange Theory
For class discussion (Dr. Feza T. Azmi)
Path-Goal Theory
¾ It is the leader’s job to assist followers in attaining goals and to provide them the direction and support to
ensure that their goals are compatible with organizational goals.
¾ Effective leaders clarify the path for followers and also remove roadblocks. There are 4 types of leader
behaviour:
ƒ
Directive: lets followers know what is expected of them, schedules work and gives guidance
ƒ
Supportive: is friendly and shows concern for needs
ƒ
Participative: consults before making a suggestion
ƒ
Achievement-oriented: sets challenging goals and expects high performances.
A leader can display any or all of these behaviours. A leaders behaviour depends on 2 contingency variables:
environmental factors and subordinate related factors.
The Path-Goal Theory
Path-Goal Theory
¾ Directive leaders are more successful when task structures are ambiguous and employee abilities are high
¾ Supportive leaders are more successful when tasks are well structured and employees abilities are low.
¾ Participative leaders are more successful in work groups and when employees have internal locus of
control.
¾ Achievement-oriented are also successful when tasks are unstructured and employees have external locus
of control.
The theory has empirical support but it may fail if leader does not identify the right contingency variable
operating at a time.
For class discussion (Dr. Feza T. Azmi)
Leader-Participation Model (Vroom & Yetton)
¾ A leadership theory that related leadership behaviour and participation in decision-making.
¾ It provides a set of rules to determine the form and amount of participative decision making in different
situations.
¾
Leaders may make decisions themselves or involve their followers participation. This depends on 12
contingency variables.
¾
The model has received encouraging response although it has been criticized for its overall complexity
and lack of practical applicability.
Contingency Variables in the Leader-Participation Model
1. Importance of the decision
2. Importance of obtaining follower commitment to the decision
3. Whether the leader has sufficient information to make decision
4. How well structured the problem is
5. Whether an autocratic decision would receive follower commitment
6. Whether followers “buy into” the organization’s goals
7. Whether there is likely to be conflict among followers
8. Whether followers have the necessary information to make decision
9. Time constraints on the leader that may limit follower involvement
10. If costs to bring geographically dispersed members is justified
11. Importance to the leader of minimizing the time to make the decision
12. Importance of using participation as a tool for developing follower decision skills
For class discussion (Dr. Feza T. Azmi)
Organizational Culture
Institutionalization: A Forerunner of Culture
Institutionalization: When an organization takes on
a life of its own, becomes valued for itself, has a
personality and thus, acquires immortality.
Culture: Institutionalization leads to strengthening
of culture. It produces a common understanding
about what is the appropriate behaviour.
What Is Organizational Culture?
Organizational culture is a set of beliefs
and values that members of an organization
share in common.
A
common
perception
held
by
organization’s members; a set of key
characteristics that the organization values.
This is the identity of an organization. It is a
description of an organization’s character.
What Is Organizational Culture?
The manifestation of corporate culture in an organization:
Shared things (e.g. the way people dress)
Shared sayings (e.g. "let's make things better")
Shared actions (e.g. a service-oriented approach)
Shared feelings (e.g. 'hard work will be rewarded')
These shared assumptions can help to decipher the
composition of the corporate culture of any organization.
What Culture Does?
Culture’s Functions:
1. Defines the boundary between one organization and
others.
2. Conveys a sense of identity to its members.
3. Facilitates the generation of commitment to
something larger than self-interest.
4. Enhances the stability of the social system.
5. Serves as a sense-making and control mechanism
for fitting employees in the organization.
Do Organizations Have Uniform Cultures?
Dominant Culture: Expresses the core values that are shared
by a majority of the organization’s members.
Subcultures: Minicultures within an organization, typically
defined by departments, divisions or geographical sections.
Core Values: The primary or dominant values that are accepted
throughout the organization.
 Peripheral Values: additional values of each department or unit e.g.
AMU’s culture and then culture of each department
Organizational Culture Versus National Culture: National
culture many a times has a greater impact on employees than
organization’s culture.
When people from different nationalities work together, they
should be ready to adopt the organization’s culture.
Do Organizations Have Uniform Cultures?
Characteristics of Strong Cultures
 Strong organizational vision
Clear set of principles and ideals
Values are shared widely
Strong affiliation to traditions
 Sense of pride, commitment and loyalty
Employees are valued assets
Harmonious relationship
Willingness to change, experiment, innovate and excel
Creativity and entrepreneurship
Open communication, interaction and sharing.
Do Organizations Have Uniform Cultures?
Characteristics of Weak Cultures
 Lack of organizational vision
Existence of many subcultures
Few shared values
Traditions are rare and undefined
Employees do not have pride, commitment and loyalty
Employees are just wage earners
Politicized organizational environment
Hostility to change
Promotion of bureaucracy over entrepreneurship
Lack of open communication, interaction and sharing.
Do Organizations Have Uniform Cultures?
Success factors in a Strong Culture
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
Culture as a Liability
1. Barrier to change
2. Barrier to diversity
3. Barrier to mergers and acquisitions
Factors that Lead to Forming of Culture
Ideology of the founder or an influential leader
 Value systems of senior managers and leaders
 Commitment of all members to organizational values
Culture Versus Formalization
A strong culture increases behavioral consistency and
leads to formalization.
The stronger the culture, the lesser the need to control
behaviours through formal rules.
How Organization Cultures Form
Creating Culture: How Culture Begins
Founders of an organization pass on their values
and vision to the organization.
 Founders hire and keep only employees who
think and feel the same way they do.
 Founders socialize these employees with their
way of thinking and feeling.
 The founders’ behavior serves as a role model
that encourages employees to replicate their
beliefs, values, and assumptions.
Creating Culture: Keeping Culture Alive
 Top Management
– Senior executives help establish behavioral norms
that filter down and are adopted by others.
 Recruitment & Selection
– Focuses on how well the candidates will fit into the
organization’s culture.
– Provides information to candidates about what is
valued in the organization.
 Socialization
– The process that helps new employees adapt to
the organization’s culture.
Socialization Model
Creating Culture: Stages in Socialization
Pre-arrival Stage: The period of learning in the
socialization process that occurs before a new employee
joins the organization (B-school training, summer
placement, Recruitment stage/ads etc.)
Encounter Stage: The stage in the socialization process in
which a new employee sees what the organization is really
like and confronts the possibility that expectations and
reality may diverge.
Metamorphosis Stage: The stage in the socialization
process in which a new employee changes and adjusts to
the work, work group, and organization.
Metamorphosis Stage: Socialization Process
• Formal (orientation or training programs) versus
Informal (friendly get-togethers):
• Individual (separate) versus Collective (in-groups)
• Fixed (time-bound, probations) versus Variable
(gradual readiness)
• Serial (role models, mentoring, understudy) versus
Random (flexible)
• Investiture (building good qualities)
Divestiture (removing bad qualities)
versus
How Culture becomes Institutionalized
• Stories: A narration of events that inform about the
company’s glorious past and its achievements
(Infosys-stories of Narayanamurthy-biographies etc.)
• Rituals: Traditions that express and reinforce the key
values (Wal-Mart’s company chant in the morning)
• Material Symbols: Layout of offices, furniture,
uniforms, company vehicles etc. speak about its
value system (Facebook- open workspaces)
• Language: Typical words, dialect or terminologies
used by members of an organization that speaks of
their culture (Infi, Infosians, Wiproites, IBMer)
How Organizational Cultures Affects Performance
and Satisfaction
OB Unit 5: Change & Stress
Change: Making things different.
Planned Change: Activities that are intentional and goal oriented.
Change Agents: Persons who act as catalysts and assume the responsibility for managing change activities.
Goals of Planned Change:
Improving the ability of the organization to adapt to changes in its environment.
Changing the behavior of individuals and groups in the organization.
Forces for Change:
Nature of the workforce: More cultural diversity, Aging population, changing profile of workers
Technology : Faster, cheaper, and more mobile computers, networks, Internet, e-commerce
Economic shocks: Rise and fall of dot-com stocks , economic crisis
Competition : Global competitors, Mergers and consolidations, changing customer profile
Social trends: Internet chat rooms, retirement of Baby Boomers, rise in “big box” retailers
World politics: opening of markets in communist countries, war on terrorism following 9/11/01 etc.
Forms of Resistance to Change
–
Overt, explicit and immediate: Voicing complaints, engaging in negative job actions, workslowdowns etc. (easier to manage)
–
Covert, Implicit and deferred: Loss of employee loyalty and motivation, increased errors or
mistakes, increased absenteeism & turnover (more subtle, gradual and hence difficult to
manage)
Sources of Individual Resistance to Change
¾
¾
¾
¾
¾
Selective information processing
Habit
Fear of the unknown
Economic factors
Security
Sources of Organizational Resistance to Change
¾
¾
¾
¾
¾
¾
Structural inertia
Group inertia
Resources
Threat to established power
Limited focus
Threat to expertise
For class discussion (Dr. Feza T. Azmi)
Overcoming Resistance to Change: Tactics
•
Education and communication: explaining the logic and benefits of change
•
Participation: involving everyone in decisions related to change
•
Facilitation and support: Providing counseling, training and resources to meet change
•
Negotiation: quid pro quo i.e. promising some rewards, benefits or incentives in return
•
Manipulation and cooptition: Using a ploy to bring change or making leaders of resistance groups
partners in change
•
Coercion: Using threats, force or withdrawing benefits
The Politics of Change
¾ Impetus for change is likely to come from outside change agents.
¾ Internal change agents are most threatened by their loss of status in the organization (people in
senior established power positions.
¾ Long-time power holders tend to implement only incremental change.
¾ The outcomes of power struggles in the organization will determine the speed and quality of
change.
Lewin’s Three-Step Change Model
Unfreezing the status quo: Change efforts to overcome the pressures of resistance.
¾ Decreasing Restraining Forces: Forces that hinder movement from the existing equilibrium.
¾ Increasing Driving Forces: Forces that direct behavior away from the status quo.
Movement to a new state: Implementing change
Refreezing the change: Stabilizing change intervention through formal and informal reinforcement.
Kotter’s Eight-Step Plan for Implementing Change
1. Establish a sense of urgency for why change is needed.
2. Form a coalition with enough power to lead the change.
3. Create a new vision to direct the change.
4. Communicate the vision throughout the organization.
5. Empower others by removing barriers & encouraging risk taking
6. Plan for and reward short-term “wins” that support change.
7. Consolidate improvements, reassess & make adjustments
For class discussion (Dr. Feza T. Azmi)
8. Reinforce the changes by demonstrating the relationship between new behaviors and organizational
success.
The theory partially draws on Lewin’s model
Steps 1-4: similar to unfreezing stage
Steps 5-7: movement stage
Step 8: Refreezing stage
///////////
Stress- Too Much Work, Too Little Time
With companies downsizing workers, those who remain find their jobs are demanding increasing amounts
of time and energy. A national sample of U.S. employees finds that they:
Feel overworked
54%
Are overwhelmed by workload
Lack time for reflection
55%
59%
Don’t have time to complete tasks 56%
Must multi-task too much 45%
Stress: A dynamic 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.
Constraints: Forces that prevent individuals from doing what they desire.
Demands: The loss of something desired.
Potential Sources of Stress
¾ Environmental Factors
– Economic uncertainties of the business cycle
– Political uncertainties of political systems
– Technological uncertainties of technical innovations
– Terrorism and threats to physical safety and security
¾ Organizational Factors
– Task demands related to the job
– Role demands of functioning in an organization
– Interpersonal demands created by other employees
For class discussion (Dr. Feza T. Azmi)
– Organizational structure (rules and regulations)
– Organizational leadership (managerial style)
– Organization’s life stage (growth, stability, or decline)
¾ Individual Factors
– Family and personal relationships
– Economic problems from exceeding earning capacity
– Personality problems arising for basic disposition
¾ Individual Differences (moderating factors)
– Perceptual variations of how reality will affect the individual’s future.
– Greater job experience moderates stress effects.
– Social support buffers job stress.
– Internal locus of control lowers perceived job stress.
– Strong feelings of self-efficacy reduce reactions to job stress.
Model of Stress
Inverted-U Relationship between Stress and Job Performance
Forms of Stress:
¾ Eustress: Positive stress (some amount of stress is desirable and acceptable for work to get done)
¾ Distress: Negative stress (overstressed conditions are detrimental to work)
For class discussion (Dr. Feza T. Azmi)
Managing Stress
¾ Individual Approaches
–
Implementing time management
–
Increasing physical exercise
–
Relaxation training
–
Expanding social support network
–
Managing personal and work life
¾ Organizational Approaches
–
Improved personnel selection and job placement
–
Training
–
Use of realistic goal setting
–
Redesigning of jobs
–
Increased employee involvement
–
Improved organizational communication
–
Offering employee sabbaticals
–
Recreation
–
Establishment of corporate wellness programs
–
Work-life balance
For class discussion (Dr. Feza T. Azmi)