Theories of Organizational Behavior Session 1: What is Organizational Behavior? 8. April 2015 Today’s Agenda • Student Introductions • Course Introduction • What is Organizational Behavior? 2 8. April 2015 Theories of OB: Logistics • 4 hours of classroom sessions per week • 7 weeks of classes from March 1 – April 19 • Schedule: Thursdays from 13:30 – 17:00 • Location: Extranef 118 • Website: https://www.hec.unil.ch/docs/jdietz/cours/275/ • Login and password: TOB2012 • Contact: o Instructor: Professor Joerg Dietz; joerg.dietz@unil.ch o (Assistant: Celia Chui; celia.chui@unil.ch) o Office hours: by appointment (email first) 3 8. April 2015 Objectives • Getting initial insights into fundamental theories of organizational behaviour •What falls under the domain of organizational behaviour? •What are some academic views on the behaviour and motivations of people in organizations? •What is the purpose of organizations? • Focuses on principles of behavior in organizations •Can help students to develop their personal “management philosophy,” •Does NOT intend to offer “action plans” or “action scripts” on solving specific organizational problems • Make you reflect on your assumptions about organizations and their members (“scientific mindfulness”) 4 8. April 2015 Course Requirements You will be evaluated based on: • Your class contribution (20% of final grade) • Class Presentation (20% of final grade) • Written Assignments (60% of final grade) Assignments Deadlines Weekly reflection papers A day before class Interview and Paper April 2 at noon Thought paper or conceptual research paper April 27 at noon • Detailed instructions for assignments on course syllabus • Email all assignments to jorg.dietz@unil.ch before the deadline. Late submissions will be assigned a grade of 1 • Students who fail the course must again hand in the written assignments. 5 8. April 2015 1st Assignment: Metaphors of Organizations Organizations as machines Organizations as organisms Sarah Organizations as brains Organizations as cultures Nicolas Organizations as political systems Manuel Organizations as psychic prisons Doris Organizations as flux and transformation Organizations as instruments of domination The book “Images of Organization” is available for scanning in my office. Several chapters may have been scanned before. Why Do We Need to Define OB (or any professional field)? • Definitions are a function of their purpose • Definition are a point of orientation – Definitions of fields provide direction – Definitions provide identities (internal/external) – Definitions legitimize Who cares? • Novices versus old-timers • Internal versus external What is an Organization? “collections of social entities (such as teams and work groups) that (a)share broad goals, boundaries, and activity systems and (b)have sovereign powers granted by the state (i.e., are treated as unitary actors that make transactions, can sue, and can be sued)” (Molloy et al., 2011) Rafaeli (1997): Organization and Membership Perspective Description Who is in? Who is out? Physical or temporal relationships “I am a member because I am in the building” Resident employees, instore customers, Home-office employees, org. without buildings Contractual relationships “I am a member because I have a contract with the organization” Employees, customers, suppliers Ex-members, prospective members Hierarchical relationships “I am a member because I appear in the organization chart” Employees Networks of organizations (outsourcing), professional loyalties Production relationship “I am a member because I participate in the org.’s production process.” Core employees, co-producing customers Peripheral employees, sub-contractors Cultural Relationship “I am a member because I feel part of the culture.” ? ? Rafaeli (1997): Membership and Boundaries • Multiple definitions of membership and boundaries • Membership is a matter of degree (one can be more or less of a member) • People have multiple memberships: memberships from one domain spill over into other domains • Organizational boundaries are fluid and permeable What are Levels of Analysis? What is the studied unit? E.g., People, groups, organizations 1. What are the antecedents of individual job performance? Why do some indivdiuals perform better than others? 2. What are the antecedents of a team’s performance? Why do some teams perform better than others? 3. What are the antecedents of an organization’s performance? Why do some organizations perform better than others? 4. What is the relationship between individiual, team, and organizational performance? What is Organizational Behavior? Challenges • Businesses do not have a Department of Organizational Behavior … but neither do they have a Department of Economics • Organizations do not have behave, people do • OB covers a wide range of topics: Is it fuzzy? • OB skills are soft skills … but how are soft skills different from hard skills? • What does OB uniquely contribute (relative to other disciplines)? 12 Opportunities • Business do have leaders, team leader, organizational changes specialists, HR managers, and management trainees • People behave differently in organizations than they do outside or organizations • “Good” OB research uses rigorous methods (e.g., experiments, statistical analyses • Is the organizational context unique? 8. April 2015 Examples of OB Topics • individual differences in abilities, personality, and other characteristics; • testing and personnel selection; • performance measurement and management; • training, learning, and skill acquisition; • work motivation; • job attitudes, affect, and emotions; • leadership; • team development, processes, and effectiveness; • career development; • work–family interface; • work stress, health, and well-being; • positive and negative work behaviors; • diversity and cross-cultural differences in work behavior and attitudes; • technology and work systems; • expertise and knowledge management; • creativity, innovation, and adaptation; • and organizational design, change, and interventions Source: Journal of Applied Psychology 13 23 fevrier 2010 What is OB? Porter’s Historical Perspective or It Just Happened That Way • Personnel administration as a precursor • Whyte (1956): “Organization man” • Chris Argyris (1957): first use of the term “OB” • Hal Leavitt (1963): “Social Science of Organizations” • More books in the 1960s • Departments of Organizational Behavior in the U.S in the late 1960s (faculty from various disciplines) • 1970s: Academy of Management What is OB? Porter’s Take on Today • Multidisciplinary, but not necessarily interdisciplinary • HR/I-O Psychology – Micro OB – Macro OB Strategy • Breadth and diversity of the field are exciting Recommendations: • Emphasize the big O (ORGANIZATION) • Large-scale efforts • Meso studies (integrate micro and macro OB) • Integrate perspectives Macro-OB Variables • Primarily considered a property of organizations • structural - spans of control, chains of command, hierarchical differentiation, formalization, standardization, decentralization, organizational subunits, looseness of coupling, power distributions, demographic distributions • technologies, tasks, workflows • attributes of external environments • functional organizational practices and policies Source: House, Rousseau, Thomas-Hunt, 1995 Micro-OB Mainly (but not exclusively) studied at the individual level of analysis • recruiting, selection, job design, organizational socialization, performance appraisal, management development, • • • • • top management team behavior, organizational citizenship, superior-subordinate relationships, conformity to formal authority, organizational boundary spanning, coordination, integration, organizational learning and sensemaking processes, organizational problem-solving, conflict and decision-making • organizationally induced stress, • relevant individual dispositions: achievement and power motivation, authoritarianism, affective orientation, dominance, attraction and power motivation, roles, machiavellianism, tolerance for bureaucratic control and susceptibility to conformity pressures. Source: House, Rousseau, Thomas-Hunt, 1995 Studies in the Meso Paradigm • Macro typically does long term observations of firms and studies characteristics and situations • Micro looks at people and why they do what they do • Meso looks at at least two levels and how they interact Level of the service unit Climate for Service Level of the individual customer EmployeeCustomer Contact Customer Satisfaction Why Meso? Macro meets Micro Clear recognition of levels in organizations Unique organizational issues that span levels of analysis (e.g., conformity in hierarchies) Model specification (complex phenomena require complex models) and integration Homologous (e.g., escalation) phenomena and non-homologous phenomena (performance) Molloy et al. (2011): Economics, Psychology, Sociology Economics 1 3 2 Psychology 4 Sociology 1: Decision theories (e.g., Prospect theory: Kahneman & Tversky, 1979) 2: Evolution of entrepreneurial firms (e.g., Aldrich, 2006) 3: Evolutionary economics (e.g., Nelson & Winter, 1982) 4: Mentoring development networks (e.g., Higgins & Kram, 2000) Heath and Sitkin: Alternate Definitions o B Behavior Not unique B Ob Behavior in Organizing Context Fake uniqueness Unique (relabelling) Not important, but… What is Organizing? • Weick, K. (1979). The social psychology of organizing • Weick, K.E., Sutcliffe, K.M., & Obstfeld, D. 2005. Sensemaking and organizing. Organization Science, 16(4), 409-421. Ongoing updating Ecological Change Enactment Retrospect extracted cues Selection Identity plausibility Retention Feedback of identity on Examples: selection and enactment -Reactions to crises and accidents -Complex interactive processes -High performance organization What is Organizational Behavior? My Description • Organizational Behavior is a field of study that investigates the cognitions, emotions, and behaviors of individuals in teams and organizations. It also investigates the impact of team variables and organizational characteristics on cognitions, emotions and behaviors, as well as the processes in the emergence, functioning, and demise of teams and organizations. • Practitioners can consult research in organizational behaviour to find answers to questions about, for example, job performance, leadership, team management, decision making, fair treatment in the workplace, the effectiveness of HR policies, as well as organizational cultures, climates, designs and the process of organizational change. • Within the domain of organizational behaviour, micro-OB, meso-OB, and macro-OB can be distinguished. • Micro-OB research focuses on understanding individuals (e.g., why and how they perform their jobs and under what conditions employees and leaders trust each other) • Macro-OB focuses on organizational-level characteristics, such as the emergence of power distributions. • Meso-OB considers phenomena at more than two levels (e.g., the individual and organizational levels), such as the influence of organizational-level culture on individual performance. • Researchers of organizational behaviour employ both quantitative (statistical) and qualitative methods (e.g., case studies, interviews), whereby quantitative articles outnumber qualitative articles across journals. 23 8. April 2015 HR/industrial-org. psychology Power distributions, Coupling Strategy Org. design, Org. cahnge Trust, Identity, Conformity, Sensemaking Macro-OB Meso Psychology Work attitudes, Leadership, Teams Selection etc., Performance management Micro-OB Resource-based view of the firm, Economic views (e.g., transaction cost theory) Psychology (I/O and social), anthropology Sociology Sociology, Economics Methodological focus, outcome focus, individual, experimental, quantitative Theoretical focus, process/outcome focus, individual, experiment to case study, quantitative/ qualitative, Theoretical focus, process focus, business unit, survey to case study, qualitative/ quantitative, Theoretical focus, business unit, industry, survey to case study to modeling, quantiative/qualitative Department of Psychology (I/O group) Department of Pychology, Business School (OB Dep.) Business School (OB, OT), Department of Sociology Business School (Strategy, General Management) Journal of Applied Psychology, Personnel Psychology, Organizational Behavior and Human Decision Processes Academy of Management Journal, Academy of Management Review, Organization Science (qualititative), Journal of Organizational Behavior Administrative Science Quarterly, AMJ, AMR, OS Strategic Management Journal, AMJ, AMR, OS What is Organizational Behavior? My Description • Organizational Behavior is a multi-disciplinary field of study that draws theories and findings from psychology (in particular, industrial-organizational psychology and social psychology), sociology including organizational sociology, anthropology, and economics. A sister-discipline of micro-OB is industrial-organizational psychology, while macro-OB intersects with strategy research. Departments of Organizational Behavior are almost exclusively sub-units of business schools or faculties of business and economics. • Academic outlets for organizational behaviour are, in particular for micro-OB, the Journal of Applied Psychology, Personnel Psychology, and Organizational Behavior and Human Decision Processes. Journals that publish work in micro-OB, meso-OB, and macro-OB include the Academy of Management Journal, Academy of Management Review, Administrative Science Quarterly, and Organization Science. Qualitative articles are more likely to be found in Organization Science and Administrative Science Quarterly. The preferred journals of organizational behaviour researchers vary greatly by their specific topics and often cross-over into more psychological, sociological, or economic journals. • Practitioner outlets for organizational behaviour include the Harvard Business Review, Academy of Management Perspectives, and MIT Sloan Management Review. 25 8. April 2015 Next class… • What explains human behaviour: Economic, sociological, and psychological approaches? • In-class debate: Prostitution – Prepare by reading the articles assigned for the debate before the class. You will be assigned to either a) psychological/sociological or b) economic perspective Klein and Kozlowski (2000): How to Do Meso Constructs 1. Global properties: • function, team size • Easy measurement 2. Shared properties: • • Held in common by team members (attitudes, beliefs, cognitions, affect Need to justify theoretically and statistically aggregation to the unit (team, organization, etc.) level 3. Configural properties • Patterns of variability (or homogeneity) Klein and Kozlowski (2000): When is a Property Shared Theoretical Justification Statistical Justification Klein and Kozlowski (2000): How to Do Meso Models 1. Single level: • all at the same level, e.g., self-efficacy causes job performance 2. Cross level: • Direct cross-level effects • Moderated cross-level effects 3. Homologous multi-level • Self-efficacy causes job performance • Team-efficacy causes team performance