MGMT 330
ORGANIZATIONAL BEHAVIOUR
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CHAPTER 1
THE MEANING AND SCOPE OF
ORGANIZATIONAL BEHAVIOUR
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WHAT IS OB?
• A study of human behaviour, attitudes and
performance in organization.
• Interaction between individual and organization
• An interdisciplinary – drawing on concepts from
social and clinical psychology, sociology, cultural
anthropology, industrial engineering and
organizational psychology.
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UNIT OF ANALYSIS
• Individual
• Group
• Organization
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RELATIONSHIP BETWEEN
OB AND MANAGEMENT
• Organizational behaviour:
– Interaction between individual and organization
• Management:
– A critical element in the economic growth of the
country
– Essential in all organized effort
– The dynamic, life giving element in every
organization
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WHY STUDY OB?
• Cherrington identified three main objectives
in organizational behaviour:
– Explain
– Identify
– Control
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CHAPTER 2
THE BEGINNINGS OF STUDIES
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CLASSICAL SCHOOL OF MANAGEMENT
• Consists of three streams of thought:
– Bureaucratic organization
• Max Webber
– Administrative management
• How organizations should be managed and structured
• Henri Fayol and Chester Bernard
– Scientific management
• Application of scientific methods to increase individual
worker’s productivity
• Frederick Winslow Taylor, Henri Gant and Frank and
Lillian Gilbreth
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HAWTHORNE STUDIES
• The Test Room Studies
• Interviewing Studies
• Observational Studies
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HUMAN RELATIONS SCHOOL
• Abraham Maslow
– Motivation theory
• Human needs
• Human behaviour
• Hierarchy of needs
• Douglas Mc Gregor
– Theory X and Y
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EARLY BEHAVIOUR THEORY
• Mary Parker Follett
– Management is getting things done with and
through other people
– Sharing of empowerment through working
together between employer and employee
– Conflict solution through integration
• Hugo Munsterberg
– Implement psychology approach in organization’s
problem
– Psychology study is very relevant in organizational
behaviour
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DISCIPLINE OF
ORGANIZATIONAL BEHAVIOUR
• Psychology
• Sociology
• Political science
• Economy
• Ecology
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CHALLENGES IN
ORGAZATIONAL BEHAVIOUR
• Business and industry towards globalization
and international
• Quality is more important
• Society is concern on management ethics
• Increase of diversity among employees
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CHAPTER 3
BEHAVIOURAL THEORIES
OF ORGANIZATION
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PSYCHOLOGICAL PERSPECTIVE
• Psychology discipline is the most influent
discipline in an organization
• Focus on understanding individual’s behaviour
• Biographic
• Talent
• Personality
• Learning
• Motivation
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SOCIOLOGICAL PERSPECTIVE
• Focus on group behaviour
• Conflict and counselling
• Communication
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POLITICAL PERSPECTIVE
• Empowerment and authority are part of
political discipline
• Distribution of power
• Direction of attempts to influence:
– Upward
– Downward
– Laterally
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ECONOMICS PERSPECTIVE
• Economics perspective helps managers to
make decision
• Techniques on problem solving
• Decision making:
– Individual
– Group
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ECOLOGICAL PERSPECTIVE
• Organization as a sub-system of society
• Environmental factors:
– Suppliers
– Distributors
– Customers
– Competitors
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CHAPTER 4
INDIVIDUAL BEHAVIOUR
IN ORGANIZATION
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ATTITUDES
• Reflects an individual’s background and
experiences
• Components of attitudes:
– Affective component
– Cognitive component
– Behavioural component
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WORK ATTITUDES
• Two key work of attitudes:
– Job satisfaction
– Organizational commitment
• Job satisfaction:
– Sources of job satisfaction
– Relation to job behaviour
• Organizational commitment:
– Sources of commitment
– Relation to job behaviour
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PERCEPTION
• The process by which people select, organize,
interpret and respond to information form the
world around them
• Basic element in the perceptual process:
– Environmental stimuli
– Observation
– Perceptual selection
– Perceptual organization
– Interpretation
– Response
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PERCEPTUAL PROCESS
• The perceptual process is a sequence of steps
that begins with the environment and leads to
our perception of a stimulus and an action in
response to the stimulus.
• The process is continual but we do not spend
time thinking about the actual process that
occurs when we perceive many stimuli that
surround us at any moment
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ENVIRONMENTAL STIMULI
• Everything in our environment that has the
potential to be perceived
• Includes anything that can be seen, touched,
tasted, smelled, heard,
movements of
the arms and legs or change in position of the
body in relation to objects in the environment
• Objects and
environment
people
in
the
immediate
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OBSERVATION
• Taste
• Smell
• Hearing
• Sight
• Touch
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PERCEPTUAL SELECTION
• Depends on several factors:
– External factors:
•
•
•
•
•
•
Size
Intensity
Contrast
Motion
Repetition
Novelty and familiarity
– Internal factors:
• Personality
• Learning
• Motivation
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PERCEPTUAL ORGANIZATION
• Perceptual organization
– Continuity
– Closure
– Proximity
– Similarity
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INTERPRETATION
• Perceptual errors
– Perceptual defense
– Stereotyping
– Halo effect
– Projection
– Expectancy effects
• Attributions
– Internal versus external causes
– Causes for success and failure
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RESPONSE
• Convert
– Attitudes
– Motivations
– Feelings
• Overt
– Behaviour
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COGNITIVE DISSONANCE
• Being used to describe the feeling of
discomfort that results from holding two
conflicting beliefs
• Happens when an individual’s behaviour
conflicts with beliefs that are integral to his or
her self-identity
• How to reduce?
– Focus
– Reduce
– Change
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PERSONALITY TRAITS/ TYPES
• Heredity
• Experience
• Environment
• Situation
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PERSONALITY TRAITS THAT INFLUENCE
ORGANIZATIONAL BEHAVIOUR
• Locus of control
• Goal orientation
• Authoritarianism
• Machiavellianism
• Self-esteem
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CHAPTER 5
GROUP BEHAVIOUR
IN ORGANIZATION
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WHAT IS A GROUP?
• Members who share goals, communicate with
one another over a period of time
• Group classification:
– Formal group
– Informal group
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FORMAL AND INFORMAL GROUPS
• Formal groups
– Functional group
– Task group:
• Permanent task group
• Temporary task group
• Informal groups
– Interest group
– Friendship group
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WHY PEOPLE JOIN GROUPS?
• Generating ideas
• Networking
• Task completion
– Accuracy
– Speed
– Creativity
– Cost
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GROUP NORMS AND DYNAMICS
• Behavioural norms
– Rules of behavioural that are shared by members
– Main function is to regulate and standardize the
behaviours viewed as important to members
• Performance norms
– Exists when three criteria have been met:
• Standard of appropriate behaviour
• Members must agree on the standard
• Members must aware that group support the standard
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ROLE AND ROLE EXPECTATIONS
• Role
– Cluster of tasks and behaviours that a person
should perform
• Role expectation
– What are you expected to do depending on what
role you obtain
• Example
– If you are a police officer, then as your role as a
police officer you would expected to protect the
country
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GROUP MEMBER ROLES
• Task-oriented role
– Involves facilitating and coordinating work-related
decision making
– Initiating, seeking information, giving information,
coordinating and evaluating
• Relation-oriented role
– Involves building team-centered feelings and social
interactions
– Encouraging,
harmonizing,
encouraging,
expressing,following
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GROUP MEMBER ROLES
• Self-oriented role
– Involves the person’s self-centered behaviours
that are at the expense of the team or group
– Blocking
progress,
seeking
recognition,
dominating, avoiding
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INFORMAL ORGANIZATION
AND ITS IMPACT
• Informal organization is defined by the
patterns, behaviours and interactions that stem
from personal rather than official relationship
• Emphasis is on people and their relationships
• Workers may create an informal group to go
bowling, form a union, discuss work challenges
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EFFECT OF DIVERSITY
ON GROUP PERFORMANCE
• Poses a threat to the organization’s effective
functioning
• Expressed discomfort with the dominant
group’s values
• Members of the group want to become like
the dominant
• Positive multiculturalism
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CHAPTER 6
ORGANIZATIONAL STRUCTURE AND
ITS IMPACT ON OB
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WHAT IS ORGANIZATION?
• Organizations are formed so that people who
share a common set of values or interest can
work together towards achieving common
objective
• Elements of organization:
– People
– Objectives
– Structure
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WHAT IS ORGANIZATION?
• Amitai Etzioni
– Organization is a social unit or human grouping,
structured for the purpose of attaining specific
goals
• Stoner
– Organization is a pattern of relationships through
which people under direction of managers pursue
their common goals
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WHAT IS ORGANIZATION?
• Vision
• Mission
• Strategy
• Planning
– Short term
– Long term
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ORGANIZATIONAL STRUCTURE
• Distribution and segregation of work
• Organizational chart
• Key factors in organizational structure
– Environmental factors
– Strategic factors
– Technological factors
– Integrative framework
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ORGANIZATIONAL STRUCTURE
• Environmental factors
– Suppliers
– Distributors
– Competitors
– Customers
• Strategic factors
– Low cost
– Differentiation
– Focused
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ORGANIZATIONAL STRUCTURE
• Technological factors
– Technology
– Task interdependence
• Pooled interdependence
• Sequential interdependence
• Reciprocal interdependence
• Integrative framework
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MECHANISTIC STRUCTURE
• Individuals and functions will behave in
predictable ways
• Characteristic of mechanistic structure
– Formal rules and regulations
– Centralization of decision making
– Defined job responsibilities
– Rigid hierarchy of authority
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IMPACT OF MECHANISTIC STRUCTURE
ON ORGANIZATIONAL BEHAVIOUR
• Tightly control the behaviour of employees
• Employees follow extensive impersonal rules
and procedures in making decisions
• Each employee’s job involves specified area of
expertise
• Employees are appointed and not elected
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ORGANIC STRUCTURE
• Characteristic of organic structure
– Low to moderate use of formal rules and
regulations
– Decentralized and shared decision making
– Broadly defined job responsibilities
– Flexible authority structure with fewer levels in
the hierarchy
– Job specialization is low
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IMPACT OF ORGANIC STRUCTURE ON
ORGANIZATIONAL BEHAVIOUR
• Emphasizes employee competence rather
than employee’s formal position in the
hierarchy
• Flexible hierarchy and empowers employees
to make decision
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NEW FORMS OF ORGANIZATION
• Functional design
– Involves
creation of positions, teams and
departments on the basis of specialized activities
• Place design
– Involves establishing an organization’s primary
units geographically
• Product design
– Involves the establishment of self-contained units,
each capable of developing, producing, marketing
and distributing its own goods or services
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NEW FORMS OF ORGANIZATION
• Multidivisional design
– Tasks are organized by division on the basis of
product/geographic markets
• Multinational design
– Produce and sell products/services in two or more
countries
• Network design
– Focuses on sharing authority, responsibility and
resources
• Virtual design
– Coordinate and link people from many different
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locations
CHAPTER 7
UNDERSTANDING WORK TEAMS
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STAGES OF TEAM DEVELOPMENT
• Forming stage
• Storming stage
• Norming stage
• Performing stage
• Adjourning stage
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FORMING STAGE
• Focus on:
– Defining or understanding goals
– Developing procedures
• Involves
getting
acquainted
and
understanding leadership and other member
roles
• Deal with members’ feelings
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STORMING STAGE
• Manage conflict among members
• This stage may be shortened or can be
avoided if members use a team-building
process from the beginning
• Involves development of decision-making,
interpersonal and technical capabilities
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NORMING STAGE
• Sharing of information,
different options
acceptance
of
• Team members set rules by which the team
will operate
• Developing of cooperation and sense of
shared responsibility
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PERFORMING STAGE
• Team members show how effectively and
efficiently they can achieve results together
• The roles of individual members are accepted
and understood
• At this stage, teams may differ:
– Continue to learn and develop from their
experiences
– May perform only the level needed for survival 62
ADJOURNING STAGE
• Termination of work behaviours
disengagement from social behaviours
and
• Normally happens when team has achieved
their goals
• A problem-solving or a cross-functional team
will investigate and report on specific issue
within 6 months
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DIFFERENCE BETWEEN
GROUPS AND TEAMS
• A group is two or more individuals who come
into personal and meaningful contact on a
continuing basis
• Example: departments, divisions and business
units
• Teams are much smaller than organizational
groups
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TYPES OF TEAMS
• Functional teams
• Problem-solving teams
• Cross-functional teams
• Self-managed teams
• Virtual teams
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FUNCTIONAL TEAMS
• Include individuals who work together daily
on similar tasks
• Exist within functional departments:
– Marketing
– Production
– Finance
– Human resource
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PROBLEM-SOLVING TEAMS
• Focus on specific issues in their areas of
responsibility, develop potential solutions and
empowered to take action within defined
limits
• Members are employees from a specific
department who meet at least once or twice a
week for an hour or two
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CROSS-FUNCTIONAL TEAMS
• Bring together people from various work areas
to identify and solve mutual problems
• Effective in situations that require innovation,
speed and focus on responding to customer
needs
• Members from several specialties or functions
and deal with problems
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SELF-MANAGED TEAMS
• Consist of employees who must work together
effectively daily to manufacture an entire
product or service to customers
• The teams are empowered (potency,
meaningfulness, autonomy and impact)
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VIRTUAL TEAMS
• A group of individuals who collaborate
through various information technologies on
one or more projects while being at two or
more locations
• Work primarily across distance, time and
organizational boundaries
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BUILDING HIGH-PERFORMANCE TEAMS
•
•
•
•
•
•
•
•
Clear goals
Clear communication
Clear role
Members’ behaviour
Proper decision-making procedure
Involvement by all members
Rules and regulations of the team
Know the complete process of a team
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WHY TEAMS FAIL?
• Conflict exist
• Lack of resources
• Different personality, experience and value
• Unsuitable goals
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CHAPTER 8
LEADERSHIP AS INFLUENCING THE
BEHAVIOUR OF OTHERS
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MANAGERS AND LEADERS
• Managers:
– Direct the work of others and is responsible for
the results
– Effective managers bring a degree of order and
consistency to the work for their employees
• Leaders:
– Exhibits the attributes of leadership (ideas, vision,
values, influencing others and making decisions)
– Do no perform management functions (planning,
organizing, leading and controling)
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TYPES OF LEADERS
• Transactional leaders
– Involves motivating and directing followers
through contingent reward-based practices
– Three components to achieve performance goals
• Contingent rewards
• Active management by exception
• Passive management by exception
• Charismatic leaders
– Emphasizes shared vision and values
– Promotes shared identity
– Exhibits desired behaviours
– Reflects strength
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TYPES OF LEADERS
• Transformational leaders
– Anticipating future trends
– Inspiring followers to understand and embrace a
new vision of possibilities
– Developing others to be leaders or better leaders
– Building organization or group into a community
of challenged and rewarded learners
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LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
• Hersey and Blanchard’s Situational Model
– Based on the amount of relationship and task
behaviour that a leader provides to subordinates
in a situation
– The amount of relationship and task behaviour is
based on the readiness of the followers to
perform needed tasks
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HERSEY AND BLANCHARD’S
SITUATIONAL MODEL
Relationship Behaviour
High
Participating Style
Selling Style
Delegating Style
Telling Style
Low
Low
High
Task Behaviour
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LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
• Vroom-Jago Leadership Model
– Developed by Victor Vroom, in collaboration with
Phillip Yetton and later Arthur Jago
– Focuses on the leadership role in decision-making
situations
– Prescribers a leader’s choices among five
leadership styles based on seven situational
factors, recognizing the time requirements and
costs associated with each style
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VROOM-JAGO LEADERSHIP MODEL
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LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
• Theory X and Theory Y
– Developed by Douglas McGregor in 1957
– Theory X is a composite of propositions and
underlying beliefs that take a command and
control view of management based on a negative
view of human nature
– Theory Y is a composite of propositions and
beliefs that take a leadership and empowering
view of management based on a positive view of
human nature
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LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
• Managerial Grid
– Developed by Robert Blake and Jane Mouton
– Identifies five leadership styles that combine
different degrees of concern for production and
concern for people
•
•
•
•
•
Impoverished style
Country club
Produce or perish
Middle of the road
Team
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BLAKE MOUTON MANAGERIAL GRID
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LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
LEADERSHIP STYLES AND THEIR IMPACT
ON ORGANIZATIONAL BEHAVIOUR
BEHAVIOURAL APPROACH TO
LEADERSHIP AND AUTHORITY
• Visionary
• Confident
• Trustworthy
• Thoughtful
• Considerate
• Charismatic
ethical
and
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CHANGING LEADERSHIP REQUIREMENTS
•
•
•
•
Assess current leadership talent
Create leadership strategy
Review and align talent management system
Develop
comprehensive
approach
to
leadership development
• Offer specific courses in leadership
• Provide individual coaching
• Assist senior leadership in combining
organizational
change
and
leadership
development
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