Organizational Behavior Anubha Maurya COURSE CONTENT • 1. CONTEXT OF ORGANIZATIONAL BEHAVIOUR • Meaning and significance of OB; contributing disciplines; basic assumptions & characteristics • New context of O.B.: Historical evolution • Challenges and opportunities for O.B.: Emerging issues • Framework for O.B. 2 ORGANIZATIONAL ENVIRONMENT • External environment • Organization- environment relationship • Linking environments and organization • Internal environment 2-2 • 3. ORGANIZATION BEHAVIOUR AND FOUNDATION COMPETENCIES • Self competency • Communication competency • Diversity competency • Across culture competency • Teams competency • Change competency • 4. INDIVIDUAL PROCESSES – 1: PERSONALITY • Meaning; person situation debate; psychological contracts; ability and aptitude • Differences in personality; Heredity, learning, culture as determinants • Personality traits and dimensions: Approaches to understanding the traits • Psychological solving behaviours • Personality traits 2-3 • 5. INDIVIDUAL PROCESSES – 2: PERCEPTION • The concept and need for studying • Perceptual organization • Perceptual interpretation • Attribution process • Perceiving others • Comparison of own perception with others’ estimation • 6. INDIVIDUAL PROCESSES – 3: LEARNINGS AND REINFORCEMENT • Meaning and importance; barriers; approaches • Cognitive and programmed learnings • Sense making • Learning styles 2-4 • Reinforcement: Positive; negative; contingencies of reinforcement; schedules of reinforcement • Behavior and its modification • Transfer of learning through training • 7. INDIVIDUAL PROCESSES – ATTITUDES AND VALUES • Meaning and scope; attitude and behaviour • Work attitude • Belief & trust • Attitudes and values • 8. INDIVIDUAL PROCESSES – WORK MOTIVATION • Meaning; process; need performance link • General model; motivation and performance • Content model of motivation • Process models of motivation • Motivation by comparison • Applications of motivation • Reward system • Behaviour modification; job design and redesign • Motivation by employment 2-5 • • • • • • • • • • • • 9 INDIVIDUAL PROCESS : WORK STRESS Meaning, nature and types Cause of stress; contributing factors Consequences Management of stress 10. ORGANIZATIONAL DECISION MAKING Nature of decision making Decision making and managerial process Problems in decision making process Improving decision making Models of individual decision making Employee reactions to organizational decision 2-6 making The Evolution of Management Thought McGraw-Hill/Irwin Contemporary Management, 5/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. The Evolution of Management Theory Figure 2.1 2-8 Job Specialization and the Division of Labor Adam Smith (18th century economist) – Observed that firms manufactured pins in one of two different ways: - Craft-style—each worker did all steps. - Production—each worker specialized in one step. 2-9 First Management Issues of Industry • How do we efficiently organize people at work with these new technologies of production and large markets? • How do we hire, pay, and coordinate people at work to gain productivity? • How do we do all of these to create economic wealth (profit)? 2-10 The Beginning of Management – Pay? • 1886 – Henry Towne, Pres. of Yale and Town Manufacturing Co., “The Engineer as Economist:” How do we relate work to increasing economic development? • Gain sharing” or “Towne Plan” – Link profits to worker’s pay: Wage rate + performance incentive– All savings in costs were shared with workers. • Halsey Plan: Sharing profits does not work. Bosses hide profits. Pay people on basis of a wage + 1/3rd pay incentive for higher productivity. • 1938 – Fair Labor Standards Act set min. wage at 25¢/hr 2-11 Frederick Taylor – Cont. • • • • Biography: Wealthy Philadelphia 1905 – wrote Shop Management 1909-14: Lecturer at Harvard Management consultant – US Navy and Army • 1911- Wrote Scientific Management 2-12 F.W. Taylor and Scientific Management Scientific Management The systematic study of the relationships between people and tasks for the purpose of redesigning the work process to increase efficiency. 2-13 Four Principles of Scientific Management 1) Study the way workers perform their tasks, gather all the informal job knowledge that workers possess and experiment with ways of improving how tasks are performed • Time-and-motion study • In 1895- proposed a Piece Rate System: – Observe & Analyze – set the “standard” for job (use Time and Motion studies) – – Pay workers for meeting/exceeding standard Pay individual worker – not everyone, or group/department, or the “job” = pay according to individual value to business What Adam Smith had done for markets, Taylor does for the firm – place wealth creation squarely on the individual worker who is managed, rewarded for effort. 2-14 Four Principles of Scientific Management 2) Codify the new methods of performing tasks into written rules and standard operating procedures 2-15 Four Principles of Scientific Management 3) Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures 2-16 Four Principles of Scientific Management 4) Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level 2-17 Problems with Scientific Management • Managers frequently implemented only the increased output side of Taylor’s plan. – Workers did not share in the increased output. • Specialized jobs became very boring, dull. – Workers ended up distrusting the Scientific Management method. • Workers could purposely “under-perform.” – Management responded with increased use of machines and conveyors belts. 2-18 Question? What is the process by which a division of labor occurs as different workers specialize in specific tasks over time? A. Job Diversification B. Job Sterilization C. Job Specification D. Job Specialization 2-19 2Administrative Management Theory • Administrative Management – The study of how to create an organizational structure that leads to high efficiency and effectiveness. 2-20 Administrative Management Theory Max Weber –Developed the principles of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness. 2-21 Weber’s Principles of Bureaucracy Figure 2.2 2-22 Weber’s Principles of Bureaucracy 1) A manager’s formal authority derives from the position he holds in the organization. 2) People should occupy positions because of their performance, not because of their social standing or personal contacts. 2-23 Weber’s Principles of Bureaucracy 3) The extent of each position’s formal authority and task responsibilities and it’s relationship to other positions should be clearly specified. 4) Authority can be exercised effectively when positions are arranged hierarchically, so employees know whom to report to and who reports to them. 2-24 Weber’s Principles of Bureaucracy 5) Managers must create a well-defined system of rules, standard operating procedures, and norms so they can effectively control behavior . 2-25 14 - Rules, SOPs and Norms • Rules – formal written instructions that specify actions to be taken under different circumstances to achieve specific goals • Standard Operating Procedures (SOPs) – specific sets of written instructions about how to perform a certain aspect of a task • Norms – unwritten, informal codes of conduct that prescribe how people should act in particular situations 2-26 Fayol’s Principles of Management • Division of Labor: allows for job specialization. – jobs can have too much specialization leading to poor quality and worker dissatisfaction. • Authority and Responsibility – both formal and informal authority resulting from special expertise. • Unity of Command – Employees should have only one boss. 2-27 Fayol’s Principles of Management • Line of Authority – A clear chain of command from top to bottom of the firm. • Centralization – The degree to which authority rests at the top of the organization. • Unity of Direction – A single plan of action to guide the organization. 2-28 Fayol’s Principles of Management • Equity - The provision of justice and the fair and impartial treatment of all employees. • Order - The arrangement of employees where they will be of the most value to the organization and to provide career opportunities. • Initiative - The fostering of creativity and innovation by encouraging employees to act on their own. 2-29 Fayol’s Principles of Management • Discipline – Obedient, applied, respectful employees are necessary for the organization to function. • Remuneration of Personnel – An equitable uniform payment system that motivates contributes to organizational success. 2-30 Fayol’s Principles of Management • Stability of Tenure of Personnel – Long-term employment is important for the development of skills that improve the organization’s performance. • Subordination of Individual Interest to the Common Interest – The interest of the organization takes precedence over that of the individual employee. 2-31 Fayol’s Principles of Management Esprit de corps – Comradeship (amity), shared enthusiasm foster devotion to the common cause (organization). 2-32 Discussion Question? Which of the following is the most important aspect of Fayol’s principles of management? A. B. C. D. Division of Labor Unity of Command Remuneration of Personnel Esprit de corps 2-33 3Behavioral Management Theory Behavioral Management – The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals. 2-34 Behavioral Management Mary Parker Follett – Concerned that Taylor ignored the human side of the organization • Suggested workers help in analyzing their jobs • If workers have relevant knowledge of the task, then they should control the task 2-35 The Hawthorne Studies Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932. 2-36 The “Hawthorne Experiments” wereDirection a series of The Hawthorne Studies: New studies into worker productivity performed at the Cicero plant beginning in 1924 and ceasing in 1932, initially conducted by the National Research Council and later by Western Electric and Harvard University Illumination Studies, 1924 -1927: Does Use of Electric Lights Increase Productivity? Hypothesis: Increased illumination is correlated with higher productivity. Finding: No relationship “Hawthorne effect” or "halo effect“ – Researcher affects outcome (bias) 2-37 2nd Hawthorne Experiment Relay Assembly Test Room Experiments, 1927-1929 Harvard research team set up experiment with 5 females from Relay Assembly area to test impact of incentives and work conditions on worker fatigue There is no conclusive evidence that these affected fatigue or productivity. Productivity and worker satisfaction increase when conditions are improved and made worse. 2-38 3rd Hawthorne Experiment • Mica-Splitting Test group, 1928 – 1930 Relationship between work conditions and productivity, by maintaining a piecerate incentive system and varying work conditions • Productivity increased by about 15% and researchers concluded that productivity was affected by non-pay considerations • Conclusion: social dynamics were the basis 2-39 Hawthorne Interviews • Plant-wide Interview program, 1928-1931 1. Western Electric implemented a plantwide survey of employees to record their concerns and grievances. From 1928 to 1930, 21,000 employees were interviewed. • 2. Data supported the research conclusion that work improved when supervisors began to pay attention to employees, 2-40 Hawthorne : Final Experiment • Bank Wiring Observation group, 1931-1932 – The final test studying 14 male workers in the Bank Wiring factory to study the dynamics of the group when incentive pay was introduced. There was no effect. Why? Work group established a work “norm” – a shared expectation about how much work should be performed in a day and stuck to it, regardless of pay. The conclusion: informal groups operate in the work environment to manage behavior. 2-41 Hawthorne Experiments - Importance • Changed perspective in management from Taylor’s engineering approach to a social sciences approach, leading to "Human Relations" approach and, later, "Organization Behavior" approach: • Engineering approach subordinated to social sciences • Managers = leaders, motivators, communicators • At one time major contributors to Management theory worked on Hawthorne experiments. • Elton Mayo - “Human Relations” approach (to 1950’s). Mayo’s views lead to the construction of manager as a leader. 2-42 The Hawthorne Studies • Demonstrated the importance of understanding how the feelings, thoughts, and behavior of work-group members and managers affect performance 2-43 Question? What theory assumes the average worker is lazy, dislikes work and will do as little as possible? A. Theory X B. Theory Y C. Theory Z D. Theory QZ 2-44 McGregor: Theory X, Theory Y Theory Y: – Work is as natural as play or rest- not disliked.. – Workers will exercise self-direction and self-control – Meeting goals is satisfying and motivating. . – Workers seek responsibility. ... – Workers will be creative and are willing to do more. Theory X: – The average human inherently dislikes to work, So, people must be coerced, controlled, directed. – Workers prefer this – but want security. – The average worker is only partially utilized. 2-45 Theory X and Theory Y Douglas McGregor proposed the two different sets of assumptions about workers. – Theory X assumes the average worker is lazy, dislikes work and will do as little as possible. • Workers have little ambition and wish to avoid responsibility • Managers must closely supervise and control through reward and punishment. 2-46 Theory X and Theory Y – Theory Y assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work. • Managers should allow workers greater latitude, and create an organization to stimulate the workers. 2-47 Theory X vs. Theory Y Figure 2.3 2-48 William G. Ouchi • An American professor and author in the field of business management • He was a pioneer in introducing interactional leadership theory in his application of Japanese-style management to corporate America. • Studied the differences between Japanese and American companies and management styles • Born 1943 • Honolulu, Hawaii • He earned a B.A. from Williams College (1965), an MBA from Stanford University (1967) and a Ph.D. in Business Administration from the University of Chicago (1972). 2-49 2-50 Development of Theory z • Has been called a sociological description of the humanistic organizations advocated by management pioneers such as Elton Mayo, Chris Argyris, Rensis Likert, and Douglas McGregor. • In the 1970s and 1980s, many United States industries lost market share to international competitors, particularly Japanese companies. • Concerns about the competitiveness of U. S. companies led some to examine Japanese management practices for clues to the success enjoyed by many of their industries. This led to many articles and books purporting to explain the success of Japanese companies. • It was in this atmosphere that Theory Z was introduced into the management lexicon. 2-51 • Theory Z: How American Management Can Meet the Japanese Challenge – His first book in 1981 summarized his observations. It currently ranks as the seventh most widely held book of the 12 million titles held in 4000 U.S. libraries. 2-52 Differences between American and Japanese Management Practices American Organizations Short-term employment Japanese Organizations Lifetime employment Slow evaluation & Rapid evaluation & promotion promotion Specialized career paths Non specialized career paths Individual decision making Individual responsibility Explicit control mechanisms Segmented concern for employee as an employee Collective decision Collective responsibility making Implicit control mechanisms Holistic concern for employee as a person 2-53 Characteristics of Theory Z • • • • • consensus decision making guarantee of lifetime employment job security slower promotions quality circles • establishment of strong bonds of responsibility between superiors and subordinates fitting employees to their jobs • a holistic concern for the workers 2-54 Comparison & Contrast of Theories X, Y & Z Management Concept Douglas McGregor William Ouchi (Theory X & Y) (Theory Z) Either being unwilling or unmotivated to work, or being self motivated towards work. Threats and Believes that people are disciplinary action are innately self motivated to not thought to be used more only do their work, but also Motivation effectively in this are loyal towards the situation, although company, and want to make monetary rewards can also the company succeed. be a prime motivator to make workers produce 2-55 more. Comparison & Contrast of Theories X, Y & Z Management Concept Douglas McGregor (Theory X & Y) William Ouchi (Theory Z) Leadership Theory X leaders would be more authoritarian, while Theory Y leaders would be more participative. But in both cases it seems that the managers would still retain a great deal of control. Theory Z managers would have to have a great deal of trust that their workers could make sound decisions. Therefore, this type of leader is more likely to act as "coach", and let the workers make most of the decisions. 2-56 Comparison & Contrast of Theories X, Y & Z Management Concept Douglas McGregor (Theory X & Y) William Ouchi (Theory Z) Power & Authority As mentioned above, McGregor's managers, in both cases, would seem to keep most of the power and authority. In the case of Theory Y, the manager would take suggestions from workers, but would keep the power to implement the decision. The manager's ability to exercise power and authority comes from the worker's trusting management to take care of them, and allow them to do their jobs. The workers have a great deal of input and weight in the decision making process. 2-57 Comparison & Contrast of Theories X, Y & Z Management Concept Conflict Douglas McGregor (Theory X & Y) William Ouchi (Theory Z) This type of manager might be Conflict in the Theory Z arena more likely to exercise a great would involve a great deal of deal of "Power" based conflict discussion, collaboration, and resolution style, especially with negotiation. The workers would be the Theory X workers. Theory Y the ones solving the conflicts, workers might be given the while the managers would play opportunity to exert "Negotiating" more of a "third party arbitrator" strategies to solve their own role. differences. 2-58 4Management Science Approach • Post World War II – British use of mathematics, Operations Research, in military operations find applications in US post war industrial development. • Quantitative management — use of mathematic models, linear programming, simulation systems and chaos theory to solve management problems. • Operations management —techniques used to analyze all aspects of the production system. 2-59 Management Science Approach- Cont. • Total Quality Management (TQM) — analyzing input, conversion, and output to increase product quality. • Management Information Systems (MIS) — provides information vital for effective decision making 2-60 Management Science Theory • Contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services. 2-61 5Organizational Environment Theory Organizational Environment – The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources 2-62 The Open-Systems View Open System – A system that takes resources for its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by customers. 2-63 The Open-Systems View – Inputs: the acquisition of external resources to produce goods and services – Conversion: transforms the inputs into outputs of finished goods and services. – Output: the release of finished goods and services to its external environment. 2-64 Systems Approach 2-65 Figure 2.4 2-66 Closed System • A self-contained system that is not affected by changes in its external environment. • Likely to experience entropy and lose its ability to control itself 2-67 Systems • Synergy – the performance gains that result from the combined actions of individuals and departments – Possible only in an organized system 2-68 Contingency Theory • “There is no one best way to organize” • The idea that the organizational structures and control systems manager choose depend on—are contingent on— characteristics of the external environment in which the organization operates. 2-69 Contingency Theory Figure 2.5 2-70 Contingency Approach • There is no “one best way.” • Organizing (and other) decisions that match the demands of the environment provide adaptation. 2-71 Type of Structure Mechanistic Structure – Authority is centralized at the top. – Emphasis is on strict discipline and order – Employees are closely monitored and managed. – Can be very efficient in a stable environment. 2-72 Type of Structure Organic Structure – Authority is decentralized throughout the organization. – Departments are encouraged to take a cross-departmental or functional perspective – Works best when environment is unstable and rapidly changing 2-73 Movie Example? How are the workers viewed in Metropolis? How do the workers feel about going to work each day? 2-74 Organizational Behaviour • . . . a field of study that investigates the impact that individuals, groups and structure have on behaviour within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. What is organizational behavior and why is it important? Organizational behavior. – Study of individuals and groups in organizations. – Emphasizes high performance organizations. – Occurs in a global context. – Dimensions of individual and group behavior. – Nature of organizations. – Core processes. 2-76 Organizational Behavior • Definition: The study of human behavior, attitudes, and performance in organizations. • Attitude means approach, manner, outlook • Value of OB: Helps people attain the competencies needed to become effective employees, team leaders/members, or managers • Competency = an interrelated set of abilities, behaviors, attitudes, and knowledge needed by an individual to be effective in most professional and managerial positions 2-77 Effective Vs Successful Manager Average Successful Effective Managers Managers Managers Traditional 32% 13% 19% mgmt Communic 29% 28% 44% ation HRM 20% 11% 26% (DM, P, C) (M, S, T) Networkin 19% g 48% 11% 2-78 So-”What does a manager do?” It depends on where they are in the organization: Level Activities Top Direction/goals. Allocate resources. Set standards. Middle Integrate knowledge. Balance shortterm with Long term goals. Develop people. Frontline Secure resources and Opportunities. Manage performance and improvements. Skill 2-79 What do Top Managers Do? Myth Fact Work is reflective and involve systematic planning. Work is action oriented, stressed immediate response, and work was Varied. No Regular Duties Duties are ritual and ceremonial, negotiations, and processing soft information Relies on formal MIS for Favor verbal, immediate decision-making information – even informal, soft data which is processed into coherent picture Management is a Science Relies on judgment and intuition to Make decisions 2-80 Roles of Top Manager- Mintzberg 1. Interpersonal Roles: – Figurehead – represents organization and it’s authority – Leader – has power to make things happen – Liaison – makes contacts with peers and other managers 2. Informational Roles: – Gathers and processes information – Monitor – scan environment for relevant cues – Disseminator – passes selected information to those who need to know – Spokesperson – informs outsiders 2-81 Roles of Top Managers –Cont. 3. Decisional Roles: – Entrepreneur – searches for new idea to implement, keeps mental track of their progress – Disturbance handler – tries to keep conflicts in balance and arbitrates conflict – Resource allocator – decides who gets what (resources and power); personal basis of decision-making 4. The Integrated Job of Manager: – Implication for new manager – requirement for networks of information – Implication for Team Managers – requirement for information sharing 2-82 What is the nature of managerial work? HENRY MINTZBERG MODEL Managerial roles. – Interpersonal roles. • Figurehead. (Diploma, tour in plant) • Leader. (Handling subordinates) • Liaison. (Acknowledgement of mails,external work – Informational roles. • Monitor (Internal External Info) • Disseminator. (Forward) • Spokesperson. (Board meeting) 2-83 What is the nature of managerial work? – Decisional roles. • Entrepreneur. (Strategy and review) • Disturbance handler. (Strategy and review) • Resource allocator. (Scheduling, budgeting) • Negotiator. (Contract Negotiation) 2-84 What is the nature of managerial work? Managerial networks. – Task networks. • Specific job-related contacts. – Career networks. • Career guidance and opportunity resources. – Social networks. • Trustworthy friends and peers. 2-85 What is the nature of managerial work? ROBERT KATZ Managerial skills and competencies. – A skill is an ability to translate knowledge into action that results in a desired performance. – Categories of skills: • Technical.( Ability to apply special knowledge) • Human.( Ability to work with, understand and motivate people) • Conceptual. Mental ability to analyze 2-86 What is the nature of managerial work? Managerial skills and competencies — cont. – Technical skills are relatively more important at entry levels. – Human skills are consistently important across all managerial levels. – Conceptual skills are relatively more important at top management levels. 2-87 What is the nature of managerial work? Managerial skills and competencies— cont. – Technical skills. • An ability to perform specialized tasks. • Derives from knowledge of expertise gained from education or experience. • Proficiency at using select methods, processes, and procedures to accomplish tasks. 2-88 What is the nature of managerial work? Managerial skills and competencies — cont. – Human skills. • An ability to work well with other people. • Emerges as a spirit of trust, enthusiasm, • • • • and genuine involvement in interpersonal relationships. Self-awareness. Capacity for understanding and empathizing. Engages in persuasive communication. Deals successfully with conflicts. 2-89 What is the nature of managerial work? Managerial skills and competencies — cont. – Conceptual skills. • An ability to see and understand how the system works, and how the parts are interrelated. • Used to: – Identify problems and opportunities. – Gather and interpret relevant information. – Make good problem-solving decisions. 2-90 Effective Employees • Absenteeism – Failure to report to work • Turnover – Voluntary and involuntary permanent withdrawal from the organization • Organizational citizenship behaviour – Discretionary behaviour that is not part of an employee’s formal job requirements, but is helpful to the organization 2-91 Productivity • Productivity – A performance measure including effectiveness and efficiency • Effectiveness – Achievement of goals • Efficiency – The ratio of effective work output to the input required to produce the work 2-92 Challenges Facing the Workplace Organizational Level • • • • Productivity Developing Effective Employees Global Competition Managing in the Global Village Group Level • Working With Others • Workforce Diversity Workplace Individual Level • Job Satisfaction • Empowerment • Behaving Ethically 2-93 Contributing Disciplines to the OB Field • • • • • Psychology Sociology Social Psychology Anthropology Political Science 2-94 Toward an OB Discipline Behavioural science Psychology Sociology Contribution Learning Motivation Perception Training Leadership effectiveness Job satisfaction Individual decision making Performance appraisal Attitude measurement Employee selection Work design Work stress Output Individual Group dynamics Work teams Communication Power Conflict Intergroup behaviour Formal organization theory Organizational technology Organizational change Organizational culture Social psychology Unit of analysis Group Study of Organizational Behaviour Behavioural change Attitude change Communication Group processes Group decision making Comparative values Comparative attitudes Cross-cultural analysis Organization system Anthropology Organizational culture Organizational environment Political science Conflict Intraorganizational politics Power 2-95 Beyond Common Sense • Systematic Study – Looking at relationships, attempting to attribute causes and effects and drawing conclusions based on scientific evidence • Behaviour is generally predictable • There are differences between individuals • There are fundamental consistencies • There are rules (written & unwritten) in almost every setting 2-96 Summary and Implications • OB is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within an organization. • OB focuses on improving productivity, reducing absenteeism and turnover, and increasing employee job satisfaction and organizational commitment. • OB uses systematic study to improve predictions of behaviour. Exhibit 1-5 Competing Values Framework External Focus Internal Focus Flexibility Control Competing Values Framework • Internal-External Dimension – inwardly toward employee needs and concerns and/or production processes and internal systems or – outwardly, toward such factors as the marketplace, government regulations, and the changing social, environmental, and technological conditions of the future • Flexibility-Control Dimension – flexible and dynamic, allowing more teamwork and participation; seeking new opportunities for products and services or – controlling or stable, maintaining the status quo and exhibiting less change Skills in the New Workplace Flexibility Innovator Broker Facilitator Monitor Producer Coordinator Control Director External Focus Internal Focus Mentor Skills in the New Workplace Flexibility •Understanding yourself and others •Interpersonal communication •Developing subordinates MENTOR •Team building •Participative decision making FACILITATOR •Conflict management Internal MONITOR •Receiving and organizing info •Evaluating routine info COORDINATOR •Responding to •Planning routine info •Organizing •Controlling •Living with change •Creative thinking •Managing change INNOVATOR BROKER PRODUCER DIRECTOR •Building and maintaining a power base •Negotiating agreement and commitment •Negotiating and selling ideas External •Personal productivity and motivation •Motivating others •Time and stress management •Taking initiative •Goal setting •Delegating effectively Control Source: R.E. Quinn. Beyond Rational Management. San Francisco: Jossey-Bass Inc., 1988, p. 48. 2-101 How Companies are Changing “Cool” companies “Old” companies •Think casual Fridays are pitiful •Believe titles are obsolete •Don't impose on employees' personal time •Allow staff to come and go as they please •Offer all employees stock options •Let employees make decisions •Offer assistance with childcare •Have minimal bureaucracy • Believe casual days are progressive • Charge employees for parks and incentives • Hold events on employee time • Have flex time: but only between 7:30 a.m. and 6:30 p.m. • Hide financial results from their employees • Encourage employee input - but rarely act on it • Employ rigid hierarchies • Stop at “open door” policies 2-102 What is the nature of managerial work? Managers: – Perform jobs that involve directly supporting the work efforts of others. – Help other people get important things done in timely, high-quality, and satisfying ways. – Assume roles such as coordinator, coach, or team leader. 2-103 How do ethics influence human behavior in organizations? Ethical behavior. – “Good” and “right” as opposed to “bad” or “wrong” in a particular setting. – Ways of thinking about ethical behavior. • Utilitarian view. • Individualism view. • Moral rights view. • Justice view. 2-104 How do ethics influence human behavior in organizations? Ethical dilemmas in the workplace. – Nature of an ethical dilemma. – Ethical dilemmas occur in relationships with: • Superiors. • Subordinates. • Customers. • Competitors. • Suppliers. • Regulators. 2-105 How do ethics influence human behavior in organizations? Ethical dilemmas in the workplace — cont. – Rationalizations for unethical behavior: • Pretending the behavior is not really unethical or illegal. • Saying the behavior is really in the organization’s or person’s best interest. • Assuming the behavior is acceptable if others don’t find out about it. • Presuming that superiors will support and protect you. 2-106 How do ethics influence human behavior in organizations? Organizational social responsibility. – The obligation of organizations to behave in ethical and moral ways as institutions of the broader society. – Managers should commit organizations to: • Pursuit of high productivity. • Corporate social responsibility. 2-107 How do ethics influence human behavior in organizations? Work and the quality of life. – Quality of work life (QWL). • The overall quality of human experience in the workplace. – QWL commitment reflects an endorsement of Theory Y assumptions. – Work-life balance. • Job demands should fit personal life and nonwork responsibilities. 2-108 THEORY Z • Ouchi, Theory Z focused on increasing employee loyalty to the company by providing a job for life with a strong focus on the well-being of the employee, both on and off the job. According to Ouchi, Theory Z management tends to promote stable employment, high productivity, and high employee morale and satisfaction 2-109