ORGANIZATIONAL
BEHAVIOR
Course Objectives
• Identify and describe key issues in
organizational behavior at the individual,
group and organizational level
• Place these issues in organizational and
societal contexts
• Develop academic research analysis,
reflection, and critical thinking skills
Structure of the course
• Why study OB
– Introduction to the course
– What is OB
– Predicting organisational outcomes
• Individuals in organisations
– Individual behaviour
– Personality and learning
– Motivation
Structure of the course
• Groups in organizations
– Group dynamics and team building
– Leadership
– Power and Politics
• The organizational system
– Organizational Culture
– Organizational change and development
– The future of organizational behavior
OB Objectives
• On successfully completing this module students
will be able to
– Define the field of organizational behaviour
– Discuss the major challenges and opportunities for
managers using organisational behaviour concepts
– Discuss why managers require knowledge of OB
– Discuss the importance to managers of productivity,
performance, job satisfaction, work practices,
absenteeism and job turnover is important to
managers.
Some Definitions
• Managers are individuals who
achieve goals through other people.
• An organisation is a consciously
coordinated social unit, composed
of two or more people, that functions
on a relatively continuous basis to
achieve a common goal or set goals
• Planning
• Organising
• Leading
• Controlling
Mintzberg’s
Managerial Roles
Interpersonal roles (leading*):
– Figurehead, leader, liaison
• Information roles (Administering*):
– Monitor, disseminator, spokesperson
• Decisional roles (Fixing*):
– Entrepreneur, disturbance handler, resource allocator,
negotiator
* terms used by Handy (1985:363)
What is Organisational Behaviour
OB is a field of study that investigates the
impact that individuals, groups and structure
have on behaviour within organisations, for
the purpose of applying such knowledge
towards improving an organisation’s
effectiveness.
We all study peoples behavior
• We observe, sense, listen, ask and read
• We learn from the experiences of others
• We make generalizations to predict and explain
the behavior of others
• Organisational behaviour is attempts to replace
‘intuition’ with a systematic study that looks at
cause and effect relationships
Challenges & Opportunities for OB
• Improving people skills
• Improving quality and productivity
• Managing workforce diversity
• Responding to globalisation
• Empowering people
• Coping with ‘temporariness’
• Stimulating innovation and change
• Emergence of the e-organisation
• Improving ethical behaviour
Behavioural
Science
Psychology
Sociology
Contribution
Anthropology
Output
(examples)
Motivation & learning
Personality& perception
Leadership effectiveness
Job satisfaction & job design
Individual decision making
Attitude measurement
Work stress
Group dynamics
Communication
Power& conflict
Formal organisation theory
Organisational change
Organisational culture
Social
Psychology
Unit of Analysis
Individual
Group
Behavioral change
Communication
Group processes & decisions
Comparative attitudes
Organisational culture
Political
Science
Intra-organisational politics
Organisational
System
Study of
Organisational
Behaviour
Organisation systems level
Group level
Individual level
A response that is affected by
an independent variable.
The presumed cause of some
change in the dependant variable.
Independent variables in
Organisational Behavior
Individual level
– biographical characteristics, personal characteristics; inherent
emotional framework, values and attitudes & basic ability levels
– Perception, individual decision making, learning, motivation
• Group level
– Dynamics of group behavior, communication,leadership,power and
politics, intergroup relations & between group conflict
• Organisational Level
– Internal organisational culture, organisational structure, work
processes, jobs & HR policy and practices
Dependent variables in OB
–
–
–
–
–
Productivity
Absenteeism
Turnover
Job satisfaction
Organisational citizenship
VAD 314 Organizational Behavior
Organizational Behavior and
Organizational Performance
Productivity
• This is a measure of performance
effectiveness (achievement of
goals) and performance efficiency
(the ratio of inputs to output). This is
the major concern of organizational
behavior.
Absenteeism
• This is the failure attend work.
Unexpected absences can disrupt
the work of the organization, and
reduce quality and quantity of
output. This in turn affects the
organization’s effectiveness and
efficiency, which lowers productivity.
Employee Turnover
• This is a measure of voluntary or
involuntary permanent withdrawal from
the organization. A high turnover rate can
mean increased direct costs (recruitment,
selection, training) and lower productivity,
through disruption of work processes.
Job Satisfaction
• This is the general attitude that
employees have towards their job. It is
the difference between the rewards
employees receive, and the rewards they
believe they should receive. These
rewards can be tangible (such as pay
and benefits) or intangible (such as status
and challenge). There is some evidence
that satisfied employees are more
productive.
Job Satisfaction
•
•
•
•
•
Mentally challenging work
Equitable rewards
Supportive working conditions
Supportive fellow employees
Personality-job fit
Organizational Citizenship
• Discretionary behavior that is not part of the job
requirements, but promotes the effective
functioning of the organization, e.g.
– Making constructive statement about the organization
or work group
– Helping others in the team
– Volunteering for extra job activities
– Avoiding unnecessary conflicts
– Respecting the spirit of the rules and regulations
– Tolerating the occasional work related imposition
Effect of Job Satisfaction on Employee
Performance
• Satisfaction & Productivity
– Happy employee = a productive employee?
•
•
•
•
Little evidence to support a causal link
Correlations low
Outside factors also have an impact: job market
Arguably, rewarding performance (pay, promotion ,
recognition) improves productivity, and more these rewards also
increase satisfaction
Effect of Job Satisfaction on Employee
Performance
• Satisfaction & Absenteeism
• E.g. Sick leave policies
– Consistent negative relationship between
satisfaction and absenteeism, but the correlations
are not high
– Dissatisfied employees are more likely to miss work
but other factors have an impact on the relationship
Effect of Job Satisfaction on Employee
Performance
• Satisfaction & Turnover
• Consistent negative relationships,
• Higher level of correlation than for absenteeism
•
•
•
•
•
•
Economic factors
Promotion opportunities
Stress
Non-work issues
Stability
Personality
Effect of Job Satisfaction on Employee
Performance
• Job satisfaction and organizational citizenship
behavior
– Logically should be linked
– Modest overall relationship between job satisfaction
and OCB
– Relationship depends on perception of fairness (of
the organizations policies procedures etc)
Employee Responses to Dissatisfaction
• Exit
– Dissatisfaction expressed by behavior directed towards leaving
the organization
• Voice
– Dissatisfaction expressed by active and constructive attempts
to improve conditions
• Loyalty
– Dissatisfaction by passively waiting for conditions to improve
• Neglect
– Dissatisfaction expressed by allowing conditions to worsen
Organizational Commitment
• Positive emotional attachment held by
employees towards their work
– Strong belief in, & acceptance of, the organization’s
goals & values by the individual
– Employee’s commitment & willingness to exert
consistent & sustainable effort for the organization
– Lower turnover & less absenteeism
VAD 314 Organizational Behavior
The Individual in the Organisation
What Is Perception?
A process by which individuals organise and
interpret their sensory impressions in order to
give meaning to their environment
What one perceives may be substantially different
from reality !
Factors that Influence Perception
Factors in the perceiver
• Attitudes
• Motives
• Interests
• Experience
• Expectations
Factors in the situation
• Time
• Work setting
• Social setting
Perception
Factors in the target
• Novelty
• Motion
• Sounds
• Size
• Background
• Proximity
Attribution Theory
• Attempt to explain the ways we judge people, based on the
meaning we attribute to their behaviour
• Causes of behaviour can be
– External (situation or environment)
– Internal (believed to be under the personal control of the
individual)
• Whether attribution is internal or external depends on
– Distinctiveness
– Consensus
– Consistency
Attribution Theory – determining how
people explain or attribute the causes of an
individual’s behaviour
High
External
Distinctiveness
Low
Internal
High
External
Individual
Behaviour
Consensus
Low
Internal
High
External
Consistency
Low
Internal
Shortcuts to Judging Others
•
Selective Perception
– People selectively interpret what they see based on their interests, background,
experience, and attitudes.
•
Projection
– Attributing one’s own characteristics to other people.
•
Stereotyping
– Judging someone on the basis of the perception of the group to which that person
belongs.
•
Halo Effect
–
•
Drawing a general impression about an individual based on a single characteristic.
Contrast Effects
– The evaluation of a person may be affected by comparing him or her to others who
rank higher or lower than the individual on the same characteristics
Judgments are important in
organisations.
•
•
•
•
•
Employment interview
Performance expectations
Performance evaluation
Employee effort
Employee loyalty
Evaluative statements or judgements
concerning objects, people or events.
Components
• Cognitive - Opinion or belief segment
• Affective - Emotional or feeling segment
• Behavioural - Intention to behave in a
certain way toward someone or something.
Attitudes
• Attitudes are evaluative statements
concerning objects, people or event
• Attitudes (like values) come from parents,
teachers, peer group members etc.
• Attitudes are less stable than values.
• Attitudes can directly effect work behaviour
Types of Job
Related Attitudes
 Job Satisfaction
 Job Involvement
 Organisational Commitment
Job satisfaction
• An individual’s general attitude toward his/her job.
– A high level of job satisfaction equals positive attitudes
toward the job and vice versa.
• Employee attitudes and job satisfaction are
frequently used interchangeably.
Job involvement
• The measure of the degree to which a person
identifies psychologically with his/her job and
considers his/her perceived performance level
important to self-worth.
– High levels of job involvement
– Fewer absences and lower resignation rates
• More consistently predicts turnover than
absenteeism
Organisational Commitment
An effective and emotional attachment held by
employees towards their work.
Factors
Belief in & acceptance of
organisational goals.
Willingness to exert
considerable & sustained
effort for organisation
COMMITMENT
Desire to continue
to be part of the organisation
Organizational commitment
• Negative relationships between organizational commitment and both
absenteeism and turnover.
– Organizational commitment is a better indicator of turnover than
the job satisfaction is
– It is a more global and enduring response to the organization as a
whole than is job satisfaction.
• As employment becomes less permanent (casuals, contracts
etc.) organisational commitment may now be less important
than in the past
– May be being replaced by occupational commitment
Any incompatibility between two
or more attitudes or between
behaviour and attitudes.
Emotions
 Affect – a broad range of feelings that people
experience
 Emotions – intense feelings that are
directed to someone or something
 Moods – less intense than emotions, and lack a
contextual stimulus
Emotional Dimensions
Variety
6 universal emotions:
anger, fear, happiness, disgust & surprise
Intensity
Frequency & duration
Values
Basic convictions that a specific mode of
conduct or end-state of existence is
personally or socially preferable to an
opposite previous converse mode of
conduct or end-state convictions.
Values in the Rokeach Value Survey
examples
Terminal values
Instrumental values
A comfortable life
Ambitious
An exciting life
Broad minded
A sense of accomplishment
Capable
A world of peace
Cheerful
A world of beauty
Clean
Equality
Courageous
Family security
Forgiving
Freedom
Helpful
Happiness
Honest
Inner harmony
Imaginative
Mean Value Rankings
Executives
Terminal
1. Self-respect
2. Family Security
3. Freedom
4. A sense of accomplishment
5. Happiness
Instrumental
1. Honest
2. Responsible
3. Capable
4. Ambitious
5. Independent
Activists
Terminal
1. Equality
2. A world at peace
3. Family Security
4.Self-Respect
5. Freedom
Instrumental
1. Honest
2. Helpful
3. Courageous
4. Responsible
5. Capable
Today’s Dominant Work Values
Stage
Current Age
Dominant Work Values
1. Protestant
55-75
Hard work, conservative,
loyalty to organisation
2. Existential
45-55
Quality of Life, nonconforming
seeks autonomy, loyalty to self
3. Pragmatic
35 – 45
Success, achievement, ambition
4. Generation X
Under 35
Flexibility, job satisfaction,
balanced lifestyle, loyalty to
relationships
VAD 314 Organizational Behaviour
Personality and Learning
Objectives
• Personality and Learning
– Describe the main dimensions of personality
– Identify important dimensions of self-concept relevant
to work
– Describe the ‘big five’ personality characteristics
– Define the key biographical characteristics that relate
to work behaviour
– Discuss how individuals learn in organisations
– Discuss how behaviour can be shaped
Personality
• The consistent psychological patterns within an
individual that affect the way they interact with
others and the situations they encounter.
Personality
determinants
Perceptions
Attitudes
Emotions
Personality
Self-concept
& selfdevelopment
Personality
traits
Work behaviours
Job satisfaction
Commitment
Motivation
Etc.
Personality determinants

Heredity

Environment

Situation
Dimensions of Self-Concept
• Self-Esteem
• Self-Control
– Locus of Control
• Self-Efficiency
• Self Monitoring
• Emotional-Intelligence
SELF ESTEEM
AN INDIVIDUAL’S DEGREE OF LIKE OR DISLIKE
FOR THEMSELF.
HIGH SE’S:
• Believe they have greater ability.
• Are less likely to be influenced by
They also -
• Take more risks in job selection.
• Choose more unconventional jobs.
SELF - MONITORING
Personality trait that represents an
individual’s ability to adjust their behaviour
to external situational factors.
CHANGING WHEN YOU NEED TO!
Self Efficacy
• A belief in your own capability to perform
a specific task.
• Magnitude – level of difficulty
• Strength – how strongly they believe
it
• Generality – the degree generalised across
situations
Locus of control
– degree of self control
• Internals – believe that they control what
happens to them
• Externals – believe that what happens to
them is controlled by outside forces such as
luck or change
EXTERNAL VERSUS INTERNALS
PEOPLE who rate as “EXTERNALS” tend to;
 BE LESS SATISFIED WITH THEIR JOBS
 HAVE A HIGHER ABSEENTEESIM RATES
 MORE ALIENATED FROM WORK SETTINGS AND LESS INVOLVED
IN THEIR JOBS.
……………………….than “INTERNALS”
Emotional Intelligence
A person’s ability to be aware of, manage and use
emotions appropriately in dealing with people in
different situations
Five Main Skills
1. Self awareness of one’s own emotions
2. Managing feelings appropriately
3. Motivating oneself for a worthwhile goal
4 Empathy and understanding for others feelings
5. Able to interrelate well and work with others
Levels of Self Development
The experience of ‘self’ and how it relates to
and is integrated with the external world.
Three Broad Levels
Pre-egoic
Egoic
Transpersonal
Possibly 5 – 14 specific
stages of ego development
& trans-ego development
within these 3 levels;
eg. Emotional –impulsive
Shadow,
Rational ego
Integrated ego, etc.
The ‘Big Five’ Personality Traits
•
•
•
•
•
Extroversion
Agreeableness
Conscientiousness
Emotional stability
Openness to experience
Other Personality Traits
– relevant to the workplace
• Risk taking – willingness to take risks
• Machiavellianism – pursuing self-interest
• Type A/B personality
– Type A – aggressively involved in an incessant
struggle to achieve more in less & less time
MACHIAVELLIANISM
is the degree to which an individual is
pragmatic, maintains emotional distance and
believes that ends can justify means
HIGH - MACHS
Manipulate more, win more, are persuaded less
& have greater influence over other people
“IF IT WORKS, USE IT”
PROTECTION AGAINST HIGH MACHS
1. EXPOSE THEM TO OTHERS.
• Broken promises & lies.
• Manipulative strategies.
2. PAY ATTENTION TO WHAT THEY DO, NOT WHAT THEY SAY.
• Actions speak louder than words.
3. AVOID SITUATIONS THAT GIVE HIGH MACHS THE EDGE.
• Don’t make hasty decisions.
• Don’t take them on one-to-one.
• Invite others
Biographical Characteristics that Influence
Work Behaviour
• Age
• Gender
• Marital Status
• Seniority
• Physical Abilities
Learning
Definition: any relatively permanent change in
behaviour that occurs as a result of
experience
Theories:
Classical conditioning
Operant conditioning
Social learning
Shaping the Behavior of Others
• Positive reinforcement
• Negative reinforcement
• Punishment
• Extinction
Schedules of Reinforcement
• Intermittent reinforcement
• Desired behaviour reinforced enough to make behaviour worth
repeating but not every time demonstrated
• Fixed-interval schedule
• Rewards are spaced at uniform time intervals
• Variable-interval schedule
• Rewards distributed in time so reinforcements are unpredictable
• Fixed-ratio schedule
• Rewards are initiated after a fixed number of responses
• Variable-ratio schedule
• Reward varied relative to behaviour of the individual
Behavior Modification
OB Mod
–
The application of reinforcement concepts to
individuals in the work setting
•
•
•
•
•
Identifying critical behaviors
Developing baseline data
Identifying behavioral consequences
Developing & implementing intervention strategy
Evaluating performance improvement
Organization applications
•
•
•
•
•
•
Lotteries to reduce absenteeism
Well pay vs sick pay
Employee discipline
Developing training programs
Creating mentoring programs
Self management
VAD 314 Organizational Behaviour
Leadership
Objectives
• On completion of this topic you should be able
to:
– Describe the nature of leadership
– Distinguish between management and leadership
– Summarise the conclusions and limitations of trait and
behavioural theories
– Describe the contingency, situational and path-goal
theories of leadership
– Explain the value of transactional and transformational
leadership
– Describe eight characteristics of the best leadership
development processes
Leadership
The ability to influence and develop
individuals and teams to achieve goals that
contribute to a worthwhile purpose.
Management & Leadership
Managers who are
not leaders
Leaders who are
not managers
Managers who
are also leaders
Leadership
Creates change, often dramatic change & helps the
organisation adapt to the changing environment.
 Direction Setting
– Creates a vision of the future for a product, activity or
organization
 Aligns People & Systems
– Communicates the vision and strategies through words &
deeds so that relevant people understand and accept direction
 Motivates and Inspires
– Energising individuals so that they achieve the vision despite
bureaucratic constraints
Management
Creates consistent and orderly results.
Helps an organization run efficiently,
on-time and on-budget
 Planning and Budgeting
– Establish detailed steps and timetables for achieving
specific results
 Organising and Staffing
– Creating the structure of jobs needed to implement the
plan
 Controlling
– Monitoring results, spotting deviations and making
corrections
Are There Born Leaders?
The Biological Basis of Leadership
• Serotonin –
• improves sociability, controls aggression,
• reduces overreaction to petty, irrelevant stresses
– Studies
• Leader monkeys had higher levels of serotonin
• Humans
–
–
–
–
Positive relation on scores of Leadership Ability
Positive relationship of performance to serotonin
University leaders had highest level of serotonin
Increases in people who practise meditation
Are There Born Leaders?
Trait Theory
• Leaders have certain traits, e.g.
–
–
–
–
–
–
–
–
Honesty and Integrity
Intelligence
Self – Confidence
Emotional maturity
Stress tolerance
Task – relevant knowledge
Ambition and high energy
Desire to lead
• Research suggest that traits contribute les than 10% of
what makes a successful leader
Do Leaders share the same Characteristics?
Charismatic Leadership
–
–
–
–
–
–
–
Self – confidence
Vision
Ability to articulate the vision
Strong convictions about the vision
Behavior that is out of the ordinary
Perceived as being a change agent
Environment sensitivity
Charismatic Leadership
INSPIRATION
Displays empathy
Dramatises mission
AWE
Projects self-assurance
Enhances image
EMPOWERMENT
EXCEPTIONALLY
HIGH EFFORT
HIGH COMMITMENT
WILLPOWER TO
TAKE RISK
Awareness of follower competency
Opportunities to experience success
Follower beliefs related
to leader behaviour
Follower behaviour
Do Leaders Emerge?
Emotional Intelligence
• Evidence that emotional intelligence predicts leadership who can
become a successful leader
• Self – awareness
• Self – management
• Self – motivation
• Empathy
• Social skills
Behavioral Theories
– Theories identifying behaviors that differentiate
effective from ineffective leaders.
• Ohio State studies
• The University of Michigan studies
• The Managerial Grid
The Ohio State Studies
– Ohio State studies (late 1940s)
– Sought to identify independent dimensions of
leader behavior
– Two categories
• Initiating structure
• Consideration
Ohio State Studies Dimensions
– Initiating structure - the extent to which a
leader defines and structures his or her role and
those of subordinates to attain goals
– Consideration - the extent to which a person
has job relationships characterized by mutual
trust, respect for subordinates’ ideas and regard
for their feelings
The University of Michigan Studies
– Employee-orientated - emphasized
interpersonal relations, took a personal interest
in the needs of subordinates and accepted
individual differences
– Production-orientated - emphasized the
technical or task aspects of job, concerned with
accomplishing tasks, regarded group members
as a means to that end
Managerial Grid
Concern for people
(1,9) Country Club
Management
(9,9) Team
Management
(5,5) Middle of the
Road Management
(1,1) Impoverished
Management
1
2
3
(9,1) Task
Management
4
5
6
Concern for production
7
8
9
Weakness of Behavioural Models
– Behavioural Models ignore the
context:
• Situational Factors that influence
leadership performance
Contingency and Situational theories
– Effectiveness depends on a match between the
leader’s style and situational factors
Fiedler’s Model
– Effective groups depend on a
proper match between a leader’s
style of interacting with
subordinates and the degree to
which the situation gives control
and influence to the leader.
Fiedler’s Situational Factors
– Leader – member relations
• Degree of confidence, trust & respects
subordinates have in their leader
– Task structure
•
Degree the job assignments are procedurised.
– Position power
•
Degree of influence a leader has on power variables: hiring,
firing, discipline, promotion & salary increases
Fiedler's LPC Scale
– Leader’s style
• Relationship-oriented leader is concerned with
people
• Task-oriented leader is primarily motivated by task
accomplishment
– The least-preferred co-worker (LPC) questionnaire is
used to measure whether a person is task or relationship
orientated.
Performance
Fiedler’ Model
Good
Task-oriented
Relationship-oriented
Poor
Favourable
Moderate
Unfavourable
Hersey and Blanchard’s
Situational Theory
• Subordinates vary in their maturity level
• People have low task maturity due to
– Limited skills
– Lack of training
– Insecurity
• The leader should evaluate subordinates and adopt the appropriate
style
• Validity of the model
– Very ‘popular’ model
– Widely used I organisations (e.g. Management Training)
– Empirical support is weak
High
R
E
L
A
T
I
O
N
S
H
I
P
S
u
p
p
o
r
T
i
v
e
B
e
h
The situational model
Low
relationship
and
low task
Selling
High task
and
low
relationship
Participating
Delegating
Low
High
relationship
and
low task
High task
and
high
relationship
Telling
High
TASK (Directive Behavior)
High
M4
Moderate
M3
M2
Maturity of followers
Low
M1
Path-Goal Theory
Leader’s role help subordinates along the path to the goal
• Leader behaviour is motivational to the degree it
• Makes subordinate need satisfaction contingent on effective
performance
• Provides the coaching guidance, support and rewards that are
necessary for effective performance
• Leader behaviour can be
–
–
–
–
Directive
Supportive
Participative
Achievement oriented
• Leader behaviour is moderated by
– Environmental contingency factors
– Subordinate contingency factors
Path – Goal Theory
Environmental Contingency Factors:
•Task structure
•Formal authority system
•Work Group
Leader behavior:
•Directive
•Participative
•Supportive
•Achievement Oriented
Outcomes
•Performance
•Satisfaction
Subordinate Contingency Factors:
•Locus of control
•Experience
•Perceived ability
Predictions in path goal theory
Transactional & Transformational
Leadership
• Transactional Leaders
– Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and task
requirements.
• Transformational Leaders
– Leaders who provide individualised consideration and
intellectual stimulation, and who possess charisma.
Effective Leadership
Transformational Ability
• Motivating vision
• Simulates followers to think
• Individual consideration
Situational skills
• Able to vary style (directive and supportive) to fit:
• Follower’s motivation and competence
• Task urgency
• Power
• Leader – follower relations
• Ability to achieve subordinates goals
• Type of decision needed
Behavioral style
•Able to be task-&-people-orientated
•Men more task-and-goal-directed
•Women more facilitative and relationship-directed
Personality
• Honesty and integrity
• Intellectual intelligence
• Emotional intelligence
• Self-monitoring
Self-efficiency
Energy and ambition
Charisma
Desire to lead
Biological
Chemical factors such as
serotonin and testosterone
Best Practice Leadership Development








Closely aligned with and used to support corporate strategy.
Senior leaders lead the leadership development program.
Leadership competencies are defined for successful leaders in
the organisation.
It’s best to grow your own.
Needs action learning.
Linked to an organisation’s succession planning.
A two-way process: senior-level support and provides
executives with results that they need.
Assess, evaluate, measure for value added.
VAD 314 Organisational Behaviour
Organisational Culture
Learning Objectives
•
•
•
•
•
Define common characteristics of organisational culture
Contrast strong and weak cultures
Hofstede’s four cultural dimensions
Functional and dysfunctional effects of organisational culture on
people
Identify factors which determine and maintain organisational culture
•
•
•
•
Discuss the impact of religions on culture
Describe the main factors on organisation’s culture
Outline varoius socialisation alternatives
Describe how culture is transmitted
What is Organisational Culture?
• A common perception held by the
organisation's members; a system of shared
meaning.
ORGANIZATIONAL CULTURE
•Organizational Culture is the shared norms and values that guide an
individuals behavior in an organization. It is influenced by
 Observed behavioral regularities
 Norms
 Dominant Values
 Philosophy
 Rules
 Organizational climate
ORGANIZATIONAL CULTURAL
STRENGTH
• The strength of a culture is determined by
• Sharedness: the degree to which the organizational
members have the same core values: rewards and new
employee orientation influence this factor.
• Intensity: the degree of organizational member
commitment to the values; reward influences this factor.
Culture Is a Descriptive Term
• Culture is composed of perceptions;
• How employees see their organisation
Key Characteristics Defining an
Organisation’s Culture
•
•
•
•
•
•
•
Innovation & risk taking
Attention to detail
Outcomes orientation
People orientation
Team orientation
Aggressiveness
Stability
•
Values
Hofstede’s Four Cultural Dimensions
•
•
•
•
Individualism versus Collectivism
Power Distance
Uncertainty Avoidance
Quantity versus Quality of Life
HOFSTEDE’S FOUR CULTURAL DIMENSIONS
Individualism
vs.
A loose social framework that emphasises
people caring for themselves and their
immediate family
High Power Distance
A tight social framework in which
people expect others to look after them
and protect them
vs.
People in society tend to accept that power in
institutions and organisations is distributed
unequally
High Uncertainty Avoidance
Dominant societal values are assertiveness,
acquisition of money and things, and not caring
about others and the overall quality of life
Low Power Distance
People in society downplay the
inequities that exist within institutions
and organisations
vs.
The society feels threatened by uncertain and
ambiguous situations and tries to avoid them
Masculinity
Collectivism
Low Uncertainty Avoidance
The society sees uncertainty as a
challenge and opportunity
vs.
Femininity
Dominant societal values are
relationships, concern for others and
overall quality of life
* Using the word masculinity and feminity to describe these values is inherently sexist. Clearly both males and
females can and do possess these values.
Hofstede’s Four Dimensions
Country
Individual/Co Power
llective
Distance
Uncertainty
Avoidance
Quality
Of life
Australia
Individual
Small
Moderate
Strong
England
Individual
Moderate
Low
Strong
Singapore
Collective
Large
Low
Moderate
Sweden
Inidvidual
Small
Low
Weak
USA
Individual
Small
Low
Strong
Culture's Functions
• Boundary defining role
• Sense of identity for organisation members
• Facilitates the generation of commitment to
something larger than individual self interest
• Enhances social system stability
• Sense making & control mechanism that guides
and shapes attitudes & behaviours of employees
Culture as a Liability
• When shared values do not contribute to
organisational effectiveness
• Barrier to change
• Barrier to diversity
• Barrier to acquisition and mergers
Maintaining Culture
• Selection
• Top management
• Socialisation
A Socialisation Model
Outcomes
Productivity
Prearrival
Encounter
Metamorphosis
Commitment
Turnover
Socialisation Process
How Employees Learn Culture
•
•
•
•
Stories
Rituals
Material symbols
Language
They did
that?
How Organisational Cultures
Form
Top
management
Philosophy
of
organisation’s
founders
Selection
criteria
Organisation
culture
Socialisation
Cultural Types
Unilever, Heinieken
Sociability
High
Low
Hewlett Packard,
Johnson & Johnson
Networked
Communal
Fragmented
Mercenary
Universities, Law firms
Low
Mars, Campbell Soup
Komatsu
High
Solidarity
How Organisational Cultures Affect
Performance & Satisfaction
Objective factors
• Member identity
• Group emphasis
• People focus
• Unit integration
• Control
• Risk tolerance
• Reward criteria
• Conflict tolerance
• Means-ends orientation
• Open-system focus
Perceived
as
Organisational
Hi
Performance
Lo
Satisfaction
culture
VAD 314 Organizational Behavior
Organizational Development
Objectives
• Identify the major forces for change
• Contrast first-order and second-order changes
• Summarize the resistance to change
• Emotional responses to change
• Organizational development and it’s values
• OD interventions
• Seven steps necessary to implement a change program
• Research on organizational change and development
Forces for Change
• Nature of the workforce
–
More cultural diversity
• Technology
– Faster and cheaper computers
• Economic shocks
– Asian financial markets crisis
•
Competition
– Global competitors
• Social trends
– Attitudes towards alternate lifestyle choices
• World Politics
– Collapse of the army’s control of Indonesia and the liberation of East
Timor
First and Second Order Change
• First-Order Change
– Linear and continuous change
• Second Order Change
– Change that is multidimensional, multilevel,
discontinuous and radical
Individual Resistance to Change
Selective Information
Processing
Habit
Individual
Resistance
Fear of the
unknown
Economic Factors
Security
Organizational Resistance to Change
Threat to established
Resource allocations
Threat to established
power relationships
Threat to
enterprise
Structural inertia
Organizational
Resistance
Unlimited
focus of change
Group inertia
Emotional Responses to Change
• The change grid
– The four stages emotional phases people
experience when going through change
•
•
•
•
Phase 1: denial
Phase 2: resistance
Phase 3: exploration
Phase 4: commitment
Emotional Reaction Change Cycle
Deny
Resist
Commit
Explore
Lewin’s three-step model
Unfreezing
Movement
Refreezing
Force Field Analysis
- Unfreezing the Status Quo
New ideal position
Desired
State
Restraining
Forces
Status
Quo
Driving Forces
Time
Organizational Development
•
A collection of planned-change interventions,
built on humanistic-democratic values, that
improves effectiveness & employee well being.
–
–
–
–
–
–
Values.
Respect for people.
Trust and support.
Power equalization.
Confrontation.
Participation.
OD Interventions
•
•
•
•
•
Group feedback sessions
Survey feedback
Process consultation
Team building
Intergroup development
•
•
•
•
•
•
•
Changing Attitudes
Through Persuasive Messages
Establish your credibility
Use a positive, tactful tone
Make your presentation clear
Present strong evidence to support your position
Tailor your argument to the listener
Use logic
Use emotional appeals
Successful Change
= What’s Needed?
Pressure
for
Change
+
+
+
+
Clear
Shared
Vision
Actionable
First
Steps
Capacity
for
Change
Model
the
Way
Change
+
Reinforce
&
Solidify
Change
+
Evaluate
&
Improve
Symptoms When Elements
Are Missing
Missing
+
Clear+ Shared
Vision
+
Pressure
for Change
Missing
+
Pressure
for Change
Clear Shared
Vision
+
+
Capacity
For
Change
+
+
+ Actionable
+
Capacity For
Change
+
Model +
The Way
+
+
Actionable
First Steps
Model
The Way
+
+
Missing
+
+
First Steps
Actionable
First Steps
+
Model
The Way
+
= and
Evaluate
Improve
Evaluate and
Improve
Reinforce
and Solidify
Change+
Evaluate and
Improve
=
+
Model
The Way +
Reinforce
and Solidify
+
Change
Evaluate and
Improve
=
Missing +
Reinforce
+
and Solidify
Change
Evaluate
= and
Improve
+
Missing
=
Evaluate and
Improve
Reinforce
and Solidify
Change
Missing
+
Missing
Pressure
for Change
Clear+ Shared
Vision
+
Capacity
For
Change
+ Actionable +
First Steps
Pressure
for Change
+
Clear Shared
Vision
Capacity For
Change
Actionable
First Steps
Model
The Way
Pressure
for Change
Clear Shared
Vision
Capacity For
Change
Actionable
First Steps
Model
The Way
+
+
A Quick Start
That Fizzles
=
+
Capacity For
+Change
Bottom of
the Box
=
+
Clear Shared
Vision
+
+
+
Reinforce
and Solidify
Change
+
Pressure
for Change
+
+
Reinforce
+
and Solidify
Change
Anxiety,
Frustration
Haphazard Efforts,
False Starts
Cynicism &
Distrust
Go Back to
Old Ways
Skeptical and
Stagnate
Contemporary Change Issues
•
•
•
•
•
Innovation
Creating a learning organization
Cultural aspects of change
Do change programs produce change?
Evaluating change