Organizational Behavior People, Processes, Structures Pfeffer’s 7 People-Centered Practices Job security (to eliminate fear of layoffs). Careful hiring (emphasizing a good fit with the company culture). Power to the people (via decentralization and self-managed teams). Generous pay for performance. Lots of training. Less emphasis on status (to build a “we” feeling). Trust building (through the sharing of critical information). Organizational Behavior Skills Exhibited by an Effective Manager 1. Clarifies goals and objectives for everyone involved 2. Encourages participation, upward communication, and suggestions 3. Plans and organizes for an orderly work flow 4. Has technical and administrative expertise to answer organization-related questions 5. Facilitates work through team building, training, coaching and support 6. Provides feedback honestly and constructively Organizational Behavior Skills Exhibited by an Effective Manager 7. Keeps things moving by relying on schedules, deadlines, and helpful reminders 8. Controls details without being over-bearing 9. Applies reasonable pressure for goal accomplishment 10. Empowers and delegates key duties to others while maintaining goal clarity and commitment 11. Recognizes good performance with rewards and positive reinforcement Organizational Behavior Ethics at Work Key Issues: 1. What about loyalty and commitment to the organization in the age of “Me, Inc.?” 2. Under the new employment contract, what do you owe the company and what does the company owe you? Organizational Behavior Evolution of the 21st-Century Manager Past Managers Order giver, privileged elite, manipulator, controller Future Managers Facilitator, team member, teacher, advocate, sponsor Learning & long Knowledge Periodic learning, narrow Continuous life- specialist learning, generalist with multiple specialties Compensation Criteria Time, effort, rank Skills, results Cultural Orientation Mono-cultural, monolingual Multicultural, multilingual Primary Role Organizational Behavior Evolution of the 21st-Century Manager Past Managers Formal authority Future Managers Knowledge (technical interpersonal) View of People Potential problem Primary resource Primary Communications Pattern Vertical Multidirectional Decision-Making Style Limited input for individual decisions Broad-based input for joint decisions Ethical Considerations Afterthought Forethought Primary Source of Influence Organizational Behavior Evolution of the 21st-Century Manager (continued) Past Managers Future Managers Nature of Interpersonal Relationships Competitive (win-lose) Cooperative (win- win) Handling of Power and Key Information Hoard Share Approach to Change Resist Facilitate Organizational Behavior Learning About OB Through Theory, Research, and Practice Research Theory Most complete information for better understanding and managing organizational behavior Practice Organizational Behavior Learning About OB From Theory A good theoretical model: Defines key terms. Constructs a conceptual framework that explains how important factors are interrelated. (Graphic models.) Provides a departure point for research and practical application. Organizational Behavior Learning About OB From Research Five Sources of OB Research Insights (a Priority Listing): Meta-analyses Field studies Laboratory studies Sample surveys Case studies Organizational Behavior Three Uses Of OB Research Findings Instrumental Use (Direct practical application) Conceptual Use (General conceptual enlightenment) Symbolic Use (Verify or legitimize existing positions) A Topical Model for What Lies Ahead Organizational Behavior External Environment (Cultural Context) Organization (Structure, Culture, Change) Understanding and managing individual behavior Managers responsible for achieving organizational results with and through others Understanding and managing group and social processes Understanding and managing organizational processes and problems Organizational effectiveness through continuous improvement Organizational Behavior Chapter 1 Key Issues • • • • What is OB? What is the contingency approach to management? Levels of analysis: individual, group, organizational What is managing and why is managing in the US different than managing in another country, such as Germany? • Perspectives of effectiveness: individual, group, and organizational; what are causes? How do managers contribute to effectiveness? • Compare goal, systems, and multiple-constituency approaches to effectiveness Organizational Behavior Organizational Culture “The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.” - Edgar Schein Organizational Behavior Embedding Organizational Culture • Formal statements of organizational philosophy, mission, vision, values, and materials used for recruiting, selection and socialization • The design of physical space, work environments, and buildings • Slogans, language, acronyms, and sayings • Deliberate role modeling, training programs, teaching and coaching by managers and supervisors • Explicit rewards, status symbols (e.g., titles), and promotion criteria • Stories, legends, and myths about key people and events Organizational Behavior Embedding Organizational Culture (Continued) The organizational activities, processes, or outcomes that leaders pay attention to, measure, and control Leader reactions to critical incidents and organizational crises The workflow and organizational structure Organizational systems and procedures Organizational goals and the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people Organizational Behavior SCHEIN’S THREE LAYER ORGANIZATIONAL MODEL Examples of cultural attributes Documents Physical layouts Furnishings Language Jargon Work ethics Commitment Helping others Management equity Competency counts Artifacts & creations Visible but often not decipherable Values Greater level of awareness Basic assumptions Taken for granted Organizational Behavior Cooke & Colleagues’ Model Shared Norms and Behavioral Expectations Constructive Cultural Styles PassiveDefensive Cultural Styles AggressiveDefensive Cultural Styles SelfActualizing Approval Oppositional Affiliative Conventional Power Humanistic Dependent Competitive Achievement Avoidance Perfectionistic Organizational Behavior Types of Organizational Culture Type of Culture Normative Belief Characteristics Constructive Achievement Goal and achievement oriented Constructive Self-actualizing Value self-development and creativity Constructive Humanisticencouraging Participative, employee centered, and supportive Constructive Affiliative High priority on constructive interpersonal relationships, and focus on work group satisfaction Organizational Behavior Types of Organizational Culture (continued) Type of Culture Normative Belief AggressiveDefensive Oppositional Confrontation and negativism rewarded AggressiveDefensive Power Non-participative, take charge of subordinates, and responsive to superiors AggressiveDefensive Competitive Winning is values and a win-lose approach is used AggressiveDefensive Perfectionist Perfectionist, persistent, and hard working Characteristics Organizational Behavior Types of Organizational Culture (continued) Type of Culture Normative Belief Characteristics PassiveDefensive Approval Avoid conflict, strive to be liked by others, and approval oriented PassiveDefensive Conventional Conservative, bureaucratic, and people follow the rules PassiveDefensive Dependent Nonparticipative, centralized decision making, and employees do what they are told PassiveDefensive Avoidance Negative reward system and avoid accountability Organizational Behavior Outcomes of Culture Constructive Cultures associated with: Satisfaction Role clarity Empowerment Retention Performance Stability Organizational Identity Share core values Defensive Cultures associated with: Turnover Role ambiguity Dissatisfaction Poor morale Resistance What is your department and organization culture? How do you change the culture? Organizational Behavior Developing an Adaptive Culture Early business leaders create an implement a business vision and strategy that fits the business environment well. Firm succeeds. Business leaders emphasize the importance of constituencies and leadership in creating the success. A strong culture emerges with a core that emphasizes service to customers, stockholders, and employees, as well as the importance of leadership. Subsequent top managers work to preserve the adaptive core of the culture. They demonstrate greater commitment to its basic principles than any specific business strategy or practice. Organizational Behavior A Model of Organizational Socialization Phases 1. Anticipatory socialization Learning that occurs prior to joining the organization Fit Person to Culture Acquire Information Perceptual and Social Processes • Anticipating realities about the organization and the new job • Anticipating organization’s need for one’s skills and abilities • Anticipating organization’s sensitivity to one’s needs and values Organizational Behavior A Model of Organizational Socialization (cont.) Phases 2. Encounter Values, skills and attitudes start to shift as new recruit discovers what the organization is truly like Gain on the job experience Perceptual and Social Processes • Managing lifestyleversus-work conflicts • Managing intergroup role conflicts • Seeking role definition and clarity • Becoming familiar with task and group dynamics Organizational Behavior A Model of Organizational Socialization (cont.) Phases 3. Change and acquisition Recruit masters skills and roles and adjusts to work group’s values and norms Perceptual and Social Processes • Competing role demands are resolved • Critical tasks are mastered • Group norms and values are internalized •Reward and recognize Organizational Behavior A Model of Organizational Socialization (continued) Outsider 1. Anticipatory socialization Phases 2. Encounter 3. Change and acquisition Behavioral Outcomes • Performs role assignments • Remains with organization • Spontaneously innovates and cooperates Socialized Insider – Congruence Affective Outcomes • Generally satisfied • Internally motivated to work • High job involvement Organizational Behavior Socialization & Culture • Anticipatory socialization – realism and congruence; selection and placement programs focus on objective aspects of job and organization. Career paths – lateral and downward. • Accommodation socialization – orientation programs, training programs, performance evaluations, challenging work, demanding and fair supervisors • Role management socialization – satisfaction and turnover are related to socialization. Must consistently and fairly handle conflicts, flexible work assignments, person-oriented managers. Organizational Behavior Mentoring The process of forming and maintaining an intensive and lasting developmental relationship between a senior person (the mentor) and a junior person. Functions of Mentoring Career Functions - Sponsorship - Exposure and visibility - Coaching - Protection - Challenging assignments Psychosocial Functions - Role modeling - Acceptance and confirmation - Counseling - Friendship Organizational Behavior Phases of the Mentor Relationship Phase Initiation Cultivation Definition A period of six months to a year during which time the relationship gets started and begins to have importance for both managers. A period of two to five years during which time the range of career and psychosocial functions provided expand to a maximum. Separation A period of six months to two years after a significant change in the structural role relationship and/or in the emotional experience of the relationship. Redefinition An indefinite period after the separation phase, during which time the relationship is ended or takes on significantly different characteristics, making it a more peerlike friendship. Organizational Behavior A Model of Ethical Behavior in the Workplace Cultural Influences - Family - Education -Religion - Media/entertainment Organizational Influences - Ethical codes - Organizational culture - Role models - Perceived pressure for results - Rewards/punishment system Political/legal/ economic influences Individual - Personality - Values - Moral principles - History of reinforcement - Gender Ethical behavior Organizational Behavior The Four Layers of Diversity Functional Level/ Classification Geographic Location Mgmt. Status Marital Status Parental Status Age Income Work Content/ Field Personal Habits Race Personality Appearance Union Affiliation Sexual Orientation Ethnicity Work Experience Physical Ability Recreational Habits Division/ Dept./ Unit/ Group Religion Educational Background Work Location Seniority Source: L Gardenswartz and A Rowe, Diverse Teams at Work: Capitalizing on the Power of Diversity (New York: McGraw-Hill, 1994), p. 33 Organizational Behavior Workforce Demographics Percent Entrants 1996-2006 Percent Leavers 1996-2006 Total Men Women 100 50.4 49.6 100 55.9 44.1 White Non-Hispanic 61.0 68.5 African-American 15.6 20.2 Hispanic 14.9 5.2 Asian and Other Races 8.4 6.1 Organizational Behavior Implications of Increasing Diversity 1 Progressive human resource programs needed to attract and retain the best workers 2 Educational mismatches create lack of skilled entry-level workers and underemployed college graduates 3 Organizations contribute resources to resolving educational problems in the U.S. 4 Career plateaus increases for younger workers 5 Managerial initiatives are needed to adapt to an aging workforce Organizational Behavior Potential* Competitive Advantages of Managing Diversity • • • • • Lower Costs and Improved Employee Attitudes Improved Recruiting Efforts Increased Sales and Market Share Increased Creativity and Innovation Increased Group Problem-Solving and Productivity *Note that these advantages depend on other factors Organizational Behavior Specific Diversity Initiatives • Accountability Practices • Development Practices • Recruitment Practices - Pertain to treating diverse employees fairly - Create administrative procedures aimed at integrating diverse employees into management ranks - Pertain to preparing diverse employees for greater responsibility and advancement - Training programs, networks and support groups, and mentoring are frequently used - Pertain to attracting qualified diverse employees at all levels Organizational Behavior Barriers and Challenges to Managing Diversity Inaccurate stereotypes and prejudice Ethnocentrism Poor career planning Unsupportive and hostile work environment Lack of political savvy by diverse workers Balancing career and family issues Fears of reverse discrimination Diversity not seen as a priority Outdated performance appraisal and reward systems Resistance to change