The Nature of Organisational Behaviour Management and Organisational Behaviour 7th Edition CHAPTER 2 The Nature of Organisational Behaviour

Learning objectives After completing this chapter you should be able to: explain the meaning and nature of organisational behaviour and provide an introduction to a behavioural approach to management; detail main interrelated influences on behaviour in work organisations and explain the nature of behavioural science; outline contrasting perspectives of organisations and different orientations to work; recognise the importance of management as an integrating activity; assess the nature and importance of the new psychological contract; review the need for a cross-cultural approach and the importance of culture to the study of organisational behaviour; summarise the complex nature of the behaviour of people in work organisations.

The study of organisational behaviour (OB) embraces an understanding of - The behaviour of people The process of management The organisational context of management Organisational processes and the execution of work Interactions with the external environment of which the organisation is part

The meaning of OB OB is a convenient shorthand that refers to the numerous interrelated influences on, and patterns of behaviour of people within organisations Porter, Lawler and Hackman The study and understanding of the individual and group behaviour and patterns of structure in order to help to improve organizational performance and effectiveness Most complex and perhaps least understood academic elements of modern general management The name OB is strictly a misnomer, why?

The meaning of OB Wilson challenges what constitutes OB & questions whether we should be interested only in behaviour that happens within the organisation. She suggests that we need to look outside of what is normally thought of as organisations & how we usually think of work

The meaning of OB Wilson believes that we can gain an insight into organisational life and behaviour by looking at: - what happens in rest & play - emotions & feelings - less organised work - the content in which work is deferred to as men’s work - the meaning of work for the unemployed

Influences on OB Individuals Groups The organisation itself The environment

Individuals Are a central feature of OB Are a necessary part of any behavioural set Bring to the organisation their personality, skills and attributes, values, needs and expectations Can create conflict if their needs and the demands of the organisation are incompatible

Management and the individual Management’s task is to integrate the individual & the organisation, providing a working environment that permits the satisfaction of individual needs & attainment of organisation goals

Groups Exist in all organisations Are essential to organisational working and performance Comprise a range of different individuals Can develop their own hierarchies and leaders

Groups Can have a major influence on behaviour and performance of individual members Have their own structures and functions, role relationships and influences and pressure An understanding of group structure and behaviour complements a knowledge of individual behaviour

The organisation Individuals & groups interact within the structure of the formal organisation Organisational structure is created by management to: - establish a relationship between individuals & groups - provide order and systems to direct efforts of the organisation into goal seeking activities

The organisation The formal structure allows people/groups to carry out organisational activities to achieve aims & objectives Behaviour is affected by patterns of organisational structure

Environment The environment affects the organisation through: technological & scientific development economic activity social & cultural influences government activities

Environment The effects of the operation of the organisation within its environment are reflected in the: management of opportunities & risks successful achievement of organisational aims & objectives

Environment – its rate of change The increasing rate of change in environmental factors highlights the need to study the total organisation & the processes used to adapt to external demands Example: globalisation has placed greater emphasis on organisational processes rather than organisational functions

Contrasting but related approaches Psychological Looks at individuals within the organisation A narrow approach Sociological Looks at human behaviour in society A broader approach

Behavioural science – a multidisciplinary approach A multidisciplinary behavioural science approach can make an important contribution to the field of OB Behavioural science has three main disciplines: - Psychology – personality systems - Sociology – social behaviour - Anthropology – science of mankind & study of human behaviour (cultural systems)

The organisational iceberg One way to recognise why people behave as they do at work is to view an organisation as an iceberg What sinks a ship isn’t always what sailors can see, but what they can’t see Hellriegal, Slocum, & Woodman

The organisational iceberg Figure 2.3 What sinks a ship isn’t always what sailors can see, but what they can’t see. Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing © (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

The organisational iceberg Formal (overt) aspects Customers Technology Formal goals Organisational design Financial resources Physical facilities Rules & regulations Surface competencies & skills

The organisational iceberg Behavioural (covert) aspects Attitudes Communication patterns Informal team processes Personality Conflict Political behaviour Underlying competencies & skills

Challenges of management People, capital, & technology … somewhere within our views or organizations we need to acknowledge the differences between machines and man. … the question of time is crucial, both because we humans operate in time with the past, the present & the future assuming importance’ and because they are phases, sequences of times and rhythms which are essentially human. Gratton

Organisational metaphors Machines Organisms Brains Cultures Morgan Political systems Psychic prisons Flux & transformation Instruments of domination The metaphors are not fixed categories and are not mutually exclusive

Orientations to work Instrumental orientation – individuals view work as a means to an end, there is a calculative or economic involvement with work Bureaucratic orientation – work is defined as a central life issue, there is a sense of obligation to the work of the organisation & positive involvement in terms of a career structure Solidaristic orientation – work situation is viewed in terms of group activities, there is an ego involvement with work groups rather than with the organisation itself, work is more than just a means to an end Goldthorpe et al.

Challenges to work ethics Division of labour – work has been fractured in task and sub divided into special sub tasks Destruction of continuity in employment – individuals are likely to re-enter the job market several times, jobs are no longer for life Herman

The role of management as an integrating activity

The psychological contract The series of mutual expectations & satisfaction of needs arising from the people / organisational relationship Process of giving & receiving by the individual & the organisation Covers a range of expectations of rights and privileges, duties and obligations that do not form part of the formal agreements but still has important influence of people’s behaviour The significant of the contract depends on the extent it is perceived to be fair

Formula for balancing unwritten needs of employees with the needs of the organisation Caring – demonstrating genuine concern for individuals Communicating – really talking about what the company hopes to achieve Listening – hearing not only the words but also what lies behind the words Knowing - those who work for you, their families, personal wishes, desires & ambitions Rewarding – money is not always necessary Stalker

Moral contract Increasing global competition & turbulent change requires a management philosophy grounded in a different moral contract People should not be seen as a corporate asset from which value can be appropriated, but as a responsibility and a resource to be added to This demands more from individuals – to abandon the idea of lifetime employment & embrace the concept of continuous learning & personal development Ghosal et al.

ORGANIZATIONAL PRACTICES

Factors leading to an increase in the global business environment Improvements in international communication facilities International competitive pressures The spread of production methods & other business processes across nations & regions International business activity, e.g. overseas franchising or licensing agreements

Defining & conceptualising culture – A model of culture Figure 2.6 Source: Reproduced with permission from F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture, Second edition, Nicholas Brealey (1999), p.22.

Factors affecting national culture Figure 2.8 Source: Reproduced with permission from Ian Brooks, Organisational Behaviour: Individuals, Groups and Organisation, Second edition, Financial Times Prentice Hall (2003), p.266, with permission from Pearson Education Ltd.

Five dimensions of culture Power distance Uncertainty avoidance Individualism Masculinity Confucian work dynamism

Cultural differences that can affect OB Relationship & rules Individual or collective preferences Type of societies - neutral or emotional societies Diffuse or specific culture Achievement-based societies Time Attitude to the environment Trompenaar