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The basics of organisational behaviour Values Personality and personal traits Exist in people at deeper Relatively permanent set of psychological level psychological characteristics that create, guide and monitor human behaviour Instrumental values Terminal · Ambition values Locus of · Competence control · Achievement · Cleanliness · Courage Machiavellian · Social status personality · Family safety · Intelligence · Equality · Self-control External · Prosperity · Politeness · High mach · etc Internal · Low mach · Wisdom · Search · Friendship · Manipulation · Personal diligently · Eg. Jeffrey Skilling, · Freedom for new · etc Implications of achievement Kenneth Lay · More comfortable knowledge (Enron) global organisation with change · Act quick · Be open-minded · Act quickly to cut · Don’t pre-judge others career losses business customs as · Researches prospective Socially acquired immoral needs · Avoid rationalising employer questionable actions · Search for legitimate ways McCLELLAND to operate within others ethical points of view · Refuse to do business Extroversion and when stakeholders actions introversion violate the law · Conduct business as · External stimulation vs openly and honestly as internal stimulation possible Need for power Job satisfaction Need for achievement Employee work attitudes Need for affiliation Facets of job satisfaction Determinants · Satisfaction with work itself · Satisfaction with pay · Satisfaction with fellow Job involvement · Years in career workers · Expectations · Satisfaction with supervision · Organisational · How much an · Satisfaction with promotion employee identifies determinants Ø Supervision with his / her job Ø Job challenge · Active participation Ø Job clarity in the job Job satisfaction Organisational · Self worth Ø Incentives and performance commitment · Buying into organisational objectives Consequences · Willingness to exert Extrinsic Measurements considerable effort on · Improves resistance and intrinsic behalf of company to job stress rewards · JDI · Desire to remain part of · Mental and physical · Minesota company health satisfaction · Low absenteeism questionnaire · Low employee turnover © Tumelo L Matjekane | 2009 Page 2 of 12 Organisational behaviour
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Stress and well-being at work (Japanese -Karoshi ) Job stress and its components Organisational programmes of wellness and job stress Down sizing? management Stressors · Unfair and · Creates stress · A work life balance demanding · Corporal wellness plans bosses · Un-supporting and abrasive co-workers Reasons HANS SELYE Job security vs · Cost cutting employment · Deregulation General security · Merger-mania adaptation Stress response · Small is beautiful syndrome HOLMAN JENKINS JNR · Mental and physical · The process responses: · Experience and whereby · Distress (negative knowledge humans adjust Individual approaches response) to managing stress to stressors in the environment · Eustress (positive response) A model of causes and consequences of stress Exercise Professional help · Employee Relaxation assistance programmes · Prayer Individual · Meditation differences Opening up Causes of · Perception · Confiding stress · Job experience Diet in others · Locus of control · Type A behaviour · We are what · Adaptive type A we eat! Individual factors Consequences of stress Environmental · Family problems factors · Financial problems · Economic uncertainty · Political uncertainty · Technological Physiological Behavioural symptoms Organisational factors · Productivity level · Headache · Attendance pattern · Hypertension · Quitting the job Micro- · Task demands · Heart disease · Accident environmental · Role demands Psychological · Substance abuse · Interpersonal symptoms · Noise · Organisational structure · Stuffy room · Organisational leader · Sleep disturbances style · Depression, anxiety · Organisational lifestyle · Declines in job stage satisfaction © Tumelo L Matjekane | 2009 Page 3 of 12 Organisational behaviour
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Motivation theory Motivation sustains our behaviour and keeps it systematic and focused Content theory Process theories Abraham Frederick Maslow’s Herzberg’s 2 Goal theory Equity theory hierarchy factor theory · SMART STACY ADAMS Motivation explained The level of experienced · Streching by organising human job satisfaction depends · Agreed · Social comparisons in work settings needs into 5 levels on the availability of · + inequity: more rewards than others hygienes and motivators · - inequity: fewer rewards than others · Physiological · Safety · Belongingness · Esteem Motivators · Self actualisation Intrinsic Expectancy Benevolents Entitled · Status theory · Comfortable · Comfortable Hygienes · Work itself with ratio E.C. TOLMAN which exceeds · Promotion Extrinsic · Challenges · How motivated behaviour occurs that of others · Work environment · Achievement at work · Job security · Professional · How that behaviour can be · Company policies growth channelled and directed Equity · Pay · Responsibility · Explains turnover, absenteeism, sensitives · Peer relations · Recognition career choice... · Supervision · Prefer equity based on original · A satisfied need ceases Environmental formulation to motivate behaviour theory Instrumentality at that need level (+ / -) · Unsatisfied employee Cultural differences in motivation · 1st level = effort needs lead to · 2nd level = results undesirable outcomes · Personal belief that 1st at work · People strive to move level outcomes lead to 2nd level outcomes up the hierarchy Behaviour Modification · Needs are not usually Valance completely satisfy B.F. SKINNER (+ / -) · Unmet needs – more motivating Focuses on observable 1st level and 2nd employee behaviour Personal attractiveness of level outcomes different outcomes Continuous Partial re-enforcements re-enforcements Consequences occur Number of behaviour occurring predictably after each Methods: before re-enforcement relevant behaviour ·+ Re-enforcement ·- Re-enforcement ·Extinction Ratio ·Punishment Interval schedule schedule Reward after given After a certain elapsed time number of behaviours Organisational factors that influence motivation · Role ambiguity Fixed interval Variable interval Fixed ratio Variable ratio · Role conflict · Organisational Constant amount of Consequence Links consequences Based on appraisal system time passes before after variable to given number of average number · Reward system consequence amount of time behaviour of response · Job design system © Tumelo L Matjekane | 2009 Page 4 of 12 Organisational behaviour
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Motivation theory Rewards and Performance Goal setting and reward systems appraisal Management by objectives (MBO) See page 4b Properties of good Performance Management performance appraisal methods by objectives appraisal system · Absolute standards PETER DRUCKER · Validity · Graphics scales Ø Content rating system · An organisational Ø Empirical · Behaviour anchored application of the Ø Construct rating scale (BARS) goal setting theory Ø Convergent · A process which Ø Discriminant develops self · Consistency Errors? control in managers · Stability · Personal bias · Halo effect · Recency error Pillars of · Central tendency MBO · Strictness / leniency errors · Employees perform better · Similarity error when they know what is · Forcing the rating expected of them to match criteria · Most employees prefer Generic self-determination at work MBO steps Goal setting · Skilled workers can be theory motivated by well-timed · Analyse formal and informal · Plan feedback EDWIN LOCKE · Define · Employees prefer intrinsic and extrinsic rewards that · Articulate are consistent with their · Reach mutual performance levels agreement · Informal review and revision · Formal review Goals · End states · Clearly specified difficult goals SMART result in greater performance · Specific improvement than · Measurable easy goals stated Aspects of · Achievable in general terms Goal setting goal setting · Resource based system process · Time specific · Increase motivation and · Environmental issues job performance · Goal setting process · Reduce stress of · Goal attributes conflicting or confusing · Employee intentions expectations · Outcomes · Improve accuracy and validity of performance evaluation © Tumelo L Matjekane | 2009 Page 5 of 12 Organisational behaviour
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Motivation theory (cont) Performance Goal setting and Rewards and appraisal Management by reward systems objectives (MBO) See page 4a See page 4a Distributing rewards in organisations · Performance Classification · Effort · Seniority · Equality · Power and influence Individual and Extrinsic Intrinsic group based reward system Given to the Associated with employee by the firm the job itself Cost savings Profit sharing plans plans Direct compensation Non-financial Reduce labour Depends on health rewards costs of economy · Salary · Performance · Office bonus furnishings · Titles... Indirect compensation Scanlon plan · Given due to employee’s Rucker plan (gains sharing) organisational level · In self directed team · Production committee environment · Screening committee · Measures the difference · Lowering costs and between sales income information innovation from goods produced · Bonus usually 25 - 50% and the cost of material of savings supplies including payroll · Value added by labour Company pay practices · Cafeteria-style fringe benefits · Lump sum pay system · Skill based compensation · Accumulating time off · All salaried team · Open salary information © Tumelo L Matjekane | 2009 Page 6 of 12 Organisational behaviour
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Job design and employee reaction to work The linking of specific task behaviours to jobs, followed by the application of work techniques, equipment and job control procedures to job and its activities Quality of work life (QWL) Job design Horizontal principles increases Vertical job Cross loading training Job Cross training enlargement · Changes which · Skill based · Employees are influence the learning · Increases the trained in different planning and · Employees and number of work specialised work doing components bonuses and activities in a job activities of work rises when · Decrease the extent acquiring new of boredom and skill overspecialisation Job rotation Job rotation · Exposes workers · Decrease boredom Job to a variety of enlargement specialised jobs over time · Changes nature of work by Other approaches eliminating overspecialisation · 4 day work week · Job sharing · Telecommunication Job design and · Flexi time Herzberg’s two factor theory The team approach to job design TAVISTOK INSTITUTE Job range Job depth OF HUMAN RELATIONS Job content · Skill variety · Autonomy · Task identity · Feedback The subjective · Task significance Socio-technical aspects of the · Social opportunities system theory job and the social setting in The amount of which it is discretion which an · Social and interpersonal performed The number of · Operational, equipment employee has to tasks an employee select various job performs procedures to accomplish work Autonomous work groups / self directed teams HACKMAN Likert’s system four organisations vs system 1 © Tumelo L Matjekane | 2009 Page 7 of 12 Organisational behaviour
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Work group dynamics Types of groups Decision making · Work / group · Task / command group in groups · Informal group · Project team Work group structure Delphi · Composition Brainstorming technique · Cohesiveness · Norms · Phillips 66 · Groupthink, for eg · Email and web · Stop and go “Bay of pigs” (Cuba) · Reverse and Vietnam war Group size and brainstorming performance Nominal group Positional technique status · Minimise verbal · Expresses the Group size interaction among amount of and internal members responsibility conflict · Group no larger than 9 people · Conflict increases with size Work group Group size Group size and structure participation · Range of abilities, talents and aptitudes · Contact and duration BRUCE W. TUCKMAN increase with size decrease as group size increases · Forming · Storming · Norming Managing groups · performing Competition and conflict Guidelines for reducing process losses Decision making in teams (participative) · Define the workgroup task / problem carefully · Don’t jump to idea evaluation before idea Intergroup behaviour evaluation has created and performance Managing numerous alternatives The normative decision conflict within · Avoid group think STEERS AND BLACK model and between · Manage the norms of - The Vroom-Yetton-Jago groups the group by making Three prevailing valued rewards group interaction · The 5 forms of decision making: · Avoiding Two contingent on high requirements ØAI: manager takes decision · Accommodating organisational quality group alone · Forcing views on conflict performance ØAII: manager seeks info from · Compromising · Make group level subordinates, then decides · Collaboration rewards contingent on · Interdependence ØCI: manager explains problem to the group’s contribution · Information flow subordinates in 1 to 1 format to work unit success · integration ØCII: manager explains problem to subordinates in group format ØGII: manager explains problem Contemporary to subordinates in group Pathway to effective intergroup format, then makes final decision · Conflict viewed relations based on level of task as useful complexity and uncertainty Traditional deviation from · Rules and procedures · Encourage the status quo · Member exchange suppression · Linking roles of conflict · Task forces · Decoupling © Tumelo L Matjekane | 2009 Page 8 of 12 Organisational behaviour
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Power, politics, leadership, entrepreneurship Entrepreneurship Politics Leadership What is it? · Approved methods and Sources of approved outcomes The creation of · Approved methods and power unapproved outcomes wealth by assuming risk · Idea champion · Unapproved methods through equity, · Sponsor and approved outcomes time or career · Godfather · Unapproved methods Roles of the commitment to · Green house and unapproved outcomes manager add value to a service or product MINTZBERG 5 Myths · Interpersonal Approaches to · Doers not thinkers · Informational leadership · Are born not made How managers · decisional · All you need is money play politics · All you need is luck · Entrepreneurial profile · Whistle blowing · Line vs staff conflict · Sponsorships and coalition building · Insurgency / resisting Power vs auority authority Behavioural Sources of approach power Trait · Reward power approach · Coercive power Using power · Legitimate power ethially BENNIS AND NANUS · Referent power · Expert power · Logical thinking · Punishment used · Persistence traits consistently, uniformly · Empowerment KURT LEWIN and privately · Self control OHIO STATE · Communicate well and UNIVERSITY · Autocratic respect subordinates · Democratic · Initiating · Free reign structure vs consideration Situational How subunits approach gain power · Scarcity · Uncertainty · Centrality How to gain · Absence of Fielder’s substitutes contingency power (personal) theory · Build an image of success House’s path- · Create obligation in others goal theory · Identify with powerful people Least preferred · Giving excellent performance co-worker (LPC) questionnaire · Directive · Limiting access to information · Supportive · Controlling supplies · Participative · Developing a network · Relationship between leader and members · Achievement · Re-organising of the job orientated · Taking risks and being creative · Task structure · Being a knowledge worker · Position of power · Manipulating rules · Controlling personal decisions · Controlling financial resources · Managing your boss Relationship Task orientated orientated © Tumelo L Matjekane | 2009 Page 9 of 12 Organisational behaviour
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Organisational design BURNS AND STALKER A serious of decisions made by managers about the best Mechanistic Organic organisational arrangement to achieve the goals in the strategic plan · Increased division of labour · Less job specialisation · Uniform departments · Increased delegation of authority · Narrow span of control · Low uniformity · Tight rules and policies · Wide span of control Aspects of organisational design The responsive organisation Service orientated organisation TOM PETERS Span of Division control Creating a of labour service driven Achieving a IVANCEVICH · spececialisation & MATTESON organisation responsive organisation · The no. of · Conduct service subordinates that audit · For capturing report to a given · Well conceived competitive advantage Delegation manager strategy for service · Simplify and delayer of authority · Affected by: · Customer oriented Drivers of growth in · Re-assign supporting required contact, front line people – customer service staff · Motivates degree of training needed · Widen span of control · Managers can’t do specialisation · Customer friendly · Differentiated service · Empower workforce all and ability to system often easier and · Create team based · Leads to promotion communicate faster achieved than work system and pay rises differentiated product · “The rule of 100" · Customers demand better quality Departmentalisation · Service improvement strengthen brand Boundary-less loyalty, erect market organisation segment and entry barriers · No distinction between · Bad service drives off leaders and followers Functional Matrix · Flexible and adaptable design customers and departmentalisation lowers profits · Authority boundary · Task boundary Product · Need for · Political boundary Territorial Organisational divisional specialised · Identity boundary design structure design management · Based on · In companies – project manager Change to revenue driven geographic with diversified market value maximisation area product lines perspective · E.g HP Inter-organisation Decentralisation design Coordination · Pushing authority down the and control · Designs that permit Centralisation hierarchy so that decisions one company to work are made close to the origin closely with another · Retention of of the problem A set of mechanisms used authority at top to link the actions of sub- · Strategic alliance · Outsourcing · Conglomerates management units to achieve a pattern of · Use of contract workers desired outcomes · Japanese Keiretsu, · High formalisation · Sophisticated consumer · standardisation Kinyokai, Amakudori · Shareholder demanding high LAWRENCE returns & LORSCH Vertical coordination mechanism tools Horizontal · Teams and task forces coordination · Direct supervision mechanism Process · Standardisation · Direct contact - control Results · Work processes Galbraith control · Outputs · Liaison roles · Standardisation of · Performance appraisal · Cross functional teams task performance · MBO · Management information system · Permanent teams · E.g TQM · Team orientated © Tumelo L Matjekane | 2009 Page 10 of 12 Organisational behaviour
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Organisational culture and change Organisational Culture change Beliefs and values that are Methods of · Environmental understood by employees complexity change in OD · Environmental change See page 9b · Environmental Contributors Developing highly uncertainty adaptive cultures · CE / founder’s role · Socialisation: transmits · The HOME approach: organisational culture Ø History Planned change from one generation Ø Oneness process to the next Ø Membership Ø Exchange R. PASCALE ØRealistic job previews ROBERT ØDebasement and DAILEY indoctrination ØIntensive on the job training Liabilities of Recognising ØAdjust reward and strong culture need for change promotion system ØUse top managers as personal role models · Goals and mission Diagnosis ØRe-enforce the cultures may change, strong with stories about the culture no longer · Multilevel organisation and its relevant (organisational, founder · Strong culture may team, individual) not mix well in M&A Resistance ØUse mentors to develop · Steering younger employees · When culture · Fear committee to legitimises in- · Trying to guide it fighting, secrecy and maintain status empire building quo · Eg. Daimler-Chrysler · Inclusion of these vs Toyota affected can help Selection of change methods Organisational life · Participative Carry over eg Vroom- cycle theory Yetton-Jago · Inception and start up operations · Motivating newly · Rapid growth and market learned behaviours expansion KURT · Bridge the gap between · Steady growth and market maturity LEWIN “learning environment” · Consolidation and decline and “working · Eg. Dell, Google, Apple environment” Evaluate · Eg Motorola university the results · Important to recognise organisational decline and · Quantitative adapt structures accordingly measures · Danger: overconfident and inattentive management team Institutionalisation · Planned change becomes part of operations in Unfreezing Re-freezing spite of managerial · Dissatisfaction · New succession, with old culture Changing processes attrition or and processes adopted and alteration in other · Constructive · Action play become Diffusion organisational destruction implemented permanent aspects · Labour · Training parts of firms WALTON discontent · Decentralisation and cuture · Diffusion not always guaranteed, can be undermined · Eg. Volvo, Shell © Tumelo L Matjekane | 2009 Page 11 of 12 Organisational behaviour
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Organisational culture and change (cont) Methods of Culture change in OD Organisational See page 9a change See page 9a System wide process changes Interpersonal and group · Survey feedback · Collecting questionnaire KURT LEWIN data from employees · Summarise · Feedback to employees Grid organisational · Survey of organisations development T-group procedures ROBERT BLAKE & JANE MOUTON · A pre-packaged OD method Ø Grid seminar Encounter Ø Intra-group development group Ø Inter-group development Team building Support Ø Development of an ideal · Deeper personal programme group strategic model knowledge and Ø Attaining the ideal strategic development · Excellent tool for · Problem-focused model ensuring the fit groups Ø Stabilisation and process between culture, · Unite individuals critique mission, goals and · Provide support strategy · Should be regular process for diagnosing and attacking problems © Tumelo L Matjekane | 2009 Page 12 of 12 Organisational behaviour
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