1. ORGANIZATIONAL BEHAVIOR
Ace Institute of Management
M-B-A-e Term IV, Spring Trimester 2011
Module 4: The Organization
PowerPoint Compilation by Course Moderator Satish Jung Shahi
Module 4: Organizational Behaviour & Leadership – Ace Institute of Management

2. Institutionalization: A Forerunner of Culture
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3. What Is Organizational Culture?
Characteristics:
Innovation and risk taking
Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
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4. What Is Organizational Culture? (cont’d)
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5. What Is Organizational Culture? (cont’d)
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6. What Is Organizational Culture? (cont’d)
Culture Versus Formalization
A strong culture increases behavioral consistency and can act as a substitute for formalization.
Organizational Culture Versus National Culture
National culture has a greater impact on employees than does their organization’s culture.
Nationals selected to work for foreign companies may be atypical of the local/native population.
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7. What Do Cultures Do? Culture’s Functions:
Defines the boundary between one organization and others.
Conveys a sense of identity for its members.
Facilitates the generation of commitment to something larger than self-interest.
Enhances the stability of the social system.
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8. What Do Cultures Do? Culture as a Liability: Barrier to change
Barrier to diversity
Barrier to acquisitions and mergers
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9. Keeping Culture Alive Selection Top Management Socialization
Concerned with how well the candidates will fit into the organization.
Provides information to candidates about the organization.
Top Management
Senior executives help establish behavioral norms that are adopted by the organization.
Socialization
The process that helps new employees adapt to the organization’s culture.
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10. Stages in the Socialization Process
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11. A Socialization Model 18-2 E X H I B I T
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12. Entry Socialization Options
Formal versus Informal
Individual versus Collective
Fixed versus Variable
Serial versus Random
Investiture versus Divestiture
18-3
E X H I B I T
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13. How Organization Cultures Form
18-4
E X H I B I T
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14. How Employees Learn Culture
Stories
Rituals
Material Symbols
Language
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15. Creating An Ethical Organizational Culture
Characteristics of Organizations that Develop High Ethical Standards
High tolerance for risk
Low to moderate in aggressiveness
Focus on means as well as outcomes
Managerial Practices Promoting an Ethical Culture
Being a visible role model.
Communicating ethical expectations.
Providing ethical training.
Visibly rewarding ethical acts and punishing unethical ones.
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16. Creating a Customer-Responsive Culture
Key Variables Shaping Customer-Responsive Cultures
The types of employees hired by the organization.
Low formalization: the freedom to meet customer service requirements.
Empowering employees with decision-making discretion to please the customer.
Good listening skills to understand customer messages.
Role clarity that allows service employees to act as “boundary spanners.”
Employees who engage in organizational citizenship behaviors.
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17. Creating a Customer-Responsive Culture
Managerial Actions:
Select new employees with personality and attitudes consistent with high service orientation.
Train and socialize current employees to be more customer focused.
Change organizational structure to give employees more control.
Empower employees to make decision about their jobs.
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18. Creating a Customer-Responsive Culture
Managerial Actions (cont’d) :
Lead by conveying a customer-focused vision and demonstrating commitment to customers.
Conduct performance appraisals based on customer-focused employee behaviors.
Provide ongoing recognition for employees who make special efforts to please customers.
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19. Spirituality and Organizational Culture
Characteristics:
Strong sense of purpose
Focus on individual development
Trust and openness
Employee empowerment
Toleration of employee expression
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20. How Organizational Cultures Have an Impact on Performance and Satisfaction
18-7
E X H I B I T
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21. Wrapping-Up Organizational Culture:
Imagine:
We run the management of Yeti Airlines in Nepal. We have made a strategic alliance with Air Arabia and extended our services along the international air route – the license for which was pending with us due to financial crunch despite permission from the Government of Nepal two years ago. As per this alliance, we will be conducting KTM-KUL-KTM direct flights along the Nepal-Malaysia air route. We need to send one of our collegues as our Station Manager in Kualalumpur, Malaysia. Let us choose that colleague and advise him/her about the new workplace.
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22. ORGANIZATIONAL BEHAVIOR
Ace Institute of Management
M-B-A -e Term IV, Spring Trimester 2011
Module 4: The Organization
PowerPoint Compilation by Course Moderator Satish Jung Shahi
Module 4 : Organizational Behaviour & Leadership – Ace Institute of Management

23. Forces for Change 19-1a E X H I B I T
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24. Forces for Change (cont’d)
19-1b
E X H I B I T
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25. Managing Planned Change
Goals of Planned Change:
Improving the ability of the organization to adapt to changes in its environment.
Changing the behavior of individuals and groups in the organization.
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

26. Resistance to Change Forms of Resistance to Change Overt and immediate
Voicing complaints, engaging in job actions
Implicit and deferred
Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism
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27. Sources of Individual Resistance to Change
19-2
E X H I B I T
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28. Sources of Organizational Resistance to Change
19-40
E X H I B I T
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

29. Overcoming Resistance to Change
Tactics for dealing with resistance to change:
Education and communication
Participation
Facilitation and support
Negotiation
Manipulation and cooptation
Coercion
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

30. Lewin’s Three-Step Change Model
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31. Lewin’s Three-Step Change Model
19-5
E X H I B I T
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32. Unfreezing the Status Quo
19-6
E X H I B I T
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

33. Contemporary Change Issues for Today’s Managers: Stimulating Innovation
Sources of Innovation:
Structural variables
Organic structures
Long-tenured management
Slack resources
Interunit communication
Organization’s culture
Human resources
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

34. Contemporary Change Issues for Today’s Managers: Creating a Learning Organization
Characteristics:
Holds a shared vision
Discards old ways of thinking.
Views organization as system of relationships.
Communicates openly.
Works together to achieve shared vision.
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

35. Contemporary Change Issues for Today’s Managers: Knowledge Management (KM)
Why KM is important:
Intellectual assets are as important as physical assets.
When individuals leave, their knowledge and experience goes with them.
A KM system reduces redundancy and makes the organization more efficient.
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

36. Contemporary Change Issues for Today’s Managers: Culture-Bound Organizations
Questions for culture-bound organizations:
Do people believe change is even possible?
How long will it take to bring about change in the organization?
Is resistance to change greater in this organization due to the culture of the society in which it operates?
How will the societal culture affect efforts to implement change?
How will idea champions in this organization go about gathering support for innovation efforts?
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

37. Additional: Theories of “Learning”
1) Classical Conditioning.
- Grew out of experiments to teach dogs to salivate in response to the ringing of a bell, Ivan Pavlov.
- Involves the creation of unconditioned stimulus that creates unconditioned response. Learning a conditioned response involves building up an association between a conditioned stimulus and an unconditioned stimulus.
- E.g.: Malshree Dhun often brings pleasant memories of the festive season.
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

38. Additional: Theories of “Learning” (…cont.)
2) Operant Conditioning.
- Behavior is a function of its consequences.
- People learn to behave to get something they want or to avoid something they don’t want.
- It involves voluntary or learned behavior in contrast to reflexive or unlearned behavior.
- Brought about by B. F. Skinner.
- E.g.: You tend to work overtime if your boss assures and implements his commitment to compensate you in your next performance appraisal.
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

39. Additional: Theories of “Learning” (…cont.)
3) Social Learning.
- Individuals can learn by observing what happens to other people and just by being told about something, as well as by direct experiences.
- Extension of operant conditioning, but also acknowledges the existence of observational learning and the importance of perception in learning.
- Processes: Attention; Retention; Motor Reproduction; and, Reinforcement.
END
© 2003 Prentice Hall Inc. All rights reserved.MBAe OB Fall 2008, Module 4 – Ace Institute of Management

40. Case Study: “Pack Your Bags, You’ve Been Transferred to Kenya”
You have to read this case and answer at least two questions given at the end of the case. Your submission deadline is within this class. This is the final of the seven case studies you have dealt so far. Only top five marks will be considered for your final grading. Each case is worth 6/100 for your final grading.
N0TE: NEXT CLASS IS YOUR FINAL FOR THIS MODULE THIS SEMESTER AND WILL INCLUDE YOUR FINAL GROUP PRESENTATIONS!
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