MGMT 330 ORGANIZATIONAL BEHAVIOUR

MGMT 330 ORGANIZATIONAL BEHAVIOUR

CHAPTER 1 THE MEANING AND SCOPE OF ORGANIZATIONAL BEHAVIOUR

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.

UNIT OF ANALYSIS Individual Group Organization

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

WHY STUDY OB? Cherrington identified three main objectives in organizational behaviour: Explain Identify Control

CHAPTER 2 THE BEGINNINGS OF STUDIES

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

HAWTHORNE STUDIES The Test Room Studies Interviewing Studies
Observational Studies

HUMAN RELATIONS SCHOOL
Abraham Maslow Motivation theory Human needs Human behaviour Hierarchy of needs Douglas Mc Gregor Theory X and Y

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

DISCIPLINE OF ORGANIZATIONAL BEHAVIOUR
Psychology Sociology Political science Economy Ecology

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

CHAPTER 3 BEHAVIOURAL THEORIES OF ORGANIZATION

PSYCHOLOGICAL PERSPECTIVE
Psychology discipline is the most influent discipline in an organization Focus on understanding individual’s behaviour Biographic Talent Personality Learning Motivation

SOCIOLOGICAL PERSPECTIVE
Focus on group behaviour Conflict and counselling Communication

POLITICAL PERSPECTIVE
Empowerment and authority are part of political discipline Distribution of power Direction of attempts to influence: Upward Downward Laterally

ECONOMICS PERSPECTIVE
Economics perspective helps managers to make decision Techniques on problem solving Decision making: Individual Group

ECOLOGICAL PERSPECTIVE
Organization as a sub-system of society Environmental factors: Suppliers Distributors Customers Competitors

CHAPTER 4 INDIVIDUAL BEHAVIOUR IN ORGANIZATION

ATTITUDES Reflects an individual’s background and experiences
Components of attitudes: Affective component Cognitive component Behavioural component

WORK ATTITUDES Two key work attitudes: Job satisfaction:
Organizational commitment Job satisfaction: Sources of job satisfaction Relation to job behaviour Organizational commitment: Sources of commitment

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

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

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 people in the immediate environment

OBSERVATION Taste Smell Hearing Sight Touch

PERCEPTUAL SELECTION Depends on several factors: External factors:
Size Intensity Contrast Motion Repetition Novelty and familiarity Internal factors: Personality Learning Motivation

PERCEPTUAL ORGANIZATION
Continuity Closure Proximity Similarity

INTERPRETATION Perceptual errors Attributions Perceptual defense
Stereotyping Halo effect Projection Expectancy effects Attributions Internal versus external causes Causes for success and failure

RESPONSE Convert Attitudes Motivations Feelings Overt Behaviour

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

PERSONALITY TRAITS/ TYPES
Heredity Experience Environment Situation

PERSONALITY TRAITS THAT INFLUENCE ORGANIZATIONAL BEHAVIOUR
Locus of control Goal orientation Authoritarianism Machiavellianism Self-esteem

CHAPTER 5 GROUP BEHAVIOUR IN ORGANIZATION

WHAT IS A GROUP? Members who share goals, communicate with one another over a period of time Group classification: Formal group Informal group

FORMAL AND INFORMAL GROUPS
Functional group Task group: Permanent task group Temporary task group Informal groups Interest group Friendship group

WHY PEOPLE JOIN GROUPS? Generating ideas Networking Task completion
Accuracy Speed Creativity Cost

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

ROLE AND ROLE EXPECTATIONS
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

GROUP MEMBER ROLES Task-oriented role Relation-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 members, harmonizing, encouraging participation, expressing, following

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

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

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

CHAPTER 6 ORGANIZATIONAL STRUCTURE AND ITS IMPACT ON OB

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

WHAT IS ORGANIZATION? Amitai Etzioni Stoner
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

WHAT IS ORGANIZATION? Vision Mission Strategy Planning Short term
Long term

ORGANIZATIONAL STRUCTURE
Distribution and segregation of work Organizational chart Key factors in organizational structure Environmental factors Strategic factors Technological factors Integrative framework

Environmental factors Suppliers Distributors Competitors Customers Strategic factors Low cost Differentiation Focused

Technological factors Technology Task interdependence Pooled interdependence Sequential interdependence Reciprocal interdependence Integrative framework

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

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

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

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

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

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 locations

CHAPTER 7 UNDERSTANDING WORK TEAMS

STAGES OF TEAM DEVELOPMENT
Forming stage Storming stage Norming stage Performing stage Adjourning stage

FORMING STAGE Focus on:
Defining or understanding goals Developing procedures Involves getting acquainted and understanding leadership and other member roles Deal with members’ feelings

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

NORMING STAGE Sharing of information, acceptance of different options
Team members set rules by which the team will operate Developing of cooperation and sense of shared responsibility

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

ADJOURNING STAGE Termination of work behaviours and disengagement from social behaviours 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

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

TYPES OF TEAMS Functional teams Problem-solving teams
Cross-functional teams Self-managed teams Virtual teams

FUNCTIONAL TEAMS Include individuals who work together daily on similar tasks Exist within functional departments: Marketing Production Finance Human resource

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

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

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)

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

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

WHY TEAMS FAIL? Conflict exist Lack of resources
Different personality, experience and value Unsuitable goals

CHAPTER 8 LEADERSHIP AS INFLUENCING THE BEHAVIOUR OF OTHERS

MANAGERS AND LEADERS Managers: Leaders:
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)

TYPES OF LEADERS Transactional leaders Charismatic 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

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

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

HERSEY AND BLANCHARD’S SITUATIONAL MODEL
Participating Style Selling Style Delegating Style Telling Style High Relationship Behaviour Low Low High Task 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

VROOM-JAGO LEADERSHIP MODEL

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

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

BLAKE MOUTON MANAGERIAL GRID

BEHAVIOURAL APPROACH TO LEADERSHIP AND AUTHORITY
Visionary Trustworthy Considerate Confident Thoughtful Charismatic and ethical

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

CHAPTER 9 COMMUNICATION AS THE LIFE BLOOD OF THE ORGANIZATION

WHAT IS COMMUNICATION? Exchange of information and ideas to create understanding between two parties Not limited to only verbal communication

IMPORTANCE OF COMMUNICATION TO ORGANIZATION
To carry out the thoughts and visions of an organization to the people To convey directions and provide synchronization Through phone, fax, , letter, website, social networking websites More crucial when we are on a mission or need to fulfill a goal

COMMUNICATION FLOWS IN ORGANIZATION
Downward channels Upward channels Horizontal channels Grapevine External networking

COMMUNICATION PROCESS
Sender (encoder) Sender is the source of information and the initiator of the communication process Encoding is the process of translating thoughts or feelings into a medium (writing, visual or spoken) that conveys the meaning intended Five principles of communication: Relevancy Simplicity Organization Repetition Focus

Receiver (decoder) Receiver is the person who receives and decodes the sender’s message Decoding is translating messages into a form that has meaning to the receiver

Sender has an idea Sender encodes the idea Sender transmits the message to the sender Receiver gets the message Receiver decodes the message Receiver sends feedback Noise

TYPES OF COMMUNICATION
Interpersonal Formal and informal Internal and external Non-verbal Active listening

GRAPEVINE Organization’s informal communication system Main features:
Exist in every organization Difficult to eliminate or control Spontaneous in nature Travels very fast Types of chains Single-strand chain Cluster chain Gossip chain

COMMUNICATIONS NETWORKS AND THEIR EFFECTIVENESS
Star network Y network Chain network Circle network All-channel network

COMMUNICATIONS NETWORKS AND THEIR EFFECTIVENESS
Factor TYPE OF COMMUNICATION NETWORK Star Y Chain Circle All-Channel Degree of centralization Very high High Moderate Low Very low Leadership predictability Average group satisfaction Range in individual member satisfaction

COMMON BARRIERS TO EFFECTIVE COMMUNICATION
Noise Semantics Language routines Lying and distortion Perceptual differences Language differences Filtering of information Poor listening Information overload

CROSS-CULTURAL COMMUNICATION
Open communication Dialogue Crisis communication Feedback

HOW TO IMPROVE COMMUNICATION
Understand the communication process Able to talk and listen Respect the receiver Establish rapport

CHAPTER 10 UNDERSTANDING DECISION-MAKING BEHAVIOUR

DECISION-MAKING (HEART OF MANAGEMENT)
Conscious process of making choices among one or more alternatives for getting the desired outcome Includes defining problems, gathering information, generating alternatives and choosing a course of action

RATIONAL DECISION-MAKING PROCESS
Identify the problem or opportunity Think of alternative solutions Evaluate alternatives and select solution Implement and evaluate solution chosen

NON-RATIONAL DECISION-MAKING PROCESS
Problem not clearly defined Knowledge is limited to possible alternatives Choice of a satisfying alternative Managerial action

LIMITS TO RATIONALITY Satisficing Limited search
Inadequate information and control

DECISION MAKING PROCESS
Define and diagnose the problem Set goals Search for alternative solutions Compare and evaluate alternative solutions Choose among alternative solutions Implement the solution selected Follow up and control the results

DECISION PREMISES Factual premises Value premises

PARTICIPATION IN DECISION-MAKING
Known as participative management Lighten the burden of the manager Makes the employees feel accepted and appreciated Will increase motivation, innovation and performance

PARTICIPATION IN DECISION-MAKING
Factors that can help participative management: Top management is continually involved Middle and supervisory managers are supportive Employees trust managers Employees are ready Employees do not work in interdependent jobs Participative management is implemented with TQM

BUILDING DECISION-MAKING SKILLS
Create a constructive environment Generate good alternatives Explore these alternatives Choose the best alternatives Check your decision Communicate your decision and take action

CHAPTER 11 MOTIVATION PEOPLE FOR INCREASED PRODUCTIVITY

WHY MOTIVATE? Motivation is a psychological state that exist whenever internal and / or external forces stimulate, direct or maintain behaviours By understanding employee motivation, managers can increase productive behaviours, enables managers to decrease disruptive behaviours such as tardiness, theft and loafing Motivating employees are important to ensure a productive and harmonious work environment Can affect organizational climate

HOW TO MOTIVATE? Through job design Through performance expectations
Motivator factors Hygiene factors Through performance expectations Expectancy model Through equity

STICK AND CARROT APPROACH
Idiom that refers to a policy of offering a combination of rewards and punishment to induce behaviour Sometimes it takes both a carrot (goal) and a stick (motivator) to overcome procrastination and get the job done Most people, rewards work better than penalties

MANIPULATING WORKERS Most managers engage in some form of manipulation to get employees to do their best An employer may use inappropriate manipulation to coerce an employee into doing something he doesn’t want to do by threatening or implying some manner of punishment Example: threats, fear, bribery, pressure, deceit, charm

EXTRINSIC MOTIVATORS Factors external to the job
Includes company policy and administration, technical supervision, salary, fringe benefits, working conditions and interpersonal relations These factors are associated with an individual’s negative feelings about job and are related to the environment in which the job is performed

INTRINSIC MOTIVATORS Directly related to the job and are largely internal to the individual Includes the work itself, recognition, advancement and responsibility These positive feelings are associated with the individual’s experiences of achievement, recognition and responsibility

WORK DESIGN Determined by factors that cannot be easily changed without changing the technology or the structure of an entire work unit Enriched jobs are more motivating than jobs that are narrow in scope Example: Job enlargement Job enrichment Team management

REWARDS SYSTEM The ability of rewards to motivate individuals or team depends on six factors: Availability Timeliness Performance contingency Durability Equity Visibility

MANAGERS’ PERCEPTION High internal work motivation
High-quality work performance High satisfaction with the work Low absenteeism and turnover

SATISFIER AND DISSTISFIER
Herzberg’s Two-Factor Theory Relationship between job satisfaction and motivation is a complicated one He discovered that the presence of a particular job characteristic, such as responsibility might increase job satisfaction Lack of responsibility didn’t necessarily produce dissatisfaction Hygiene factors Motivator factors

MASLOW’S HIERARCHY OF NEEDS
Abraham H. Maslow suggested that people have a complex set of exceptionally strong needs, which can be arranged in a hierarchy Five types of needs: Physiological Security Affiliation Esteem Self-actualization

EXPECTANCY THEORY Work effort is directed toward behaviour that is believed to produce desired outcomes Effort is employee’s actual exertion of energy and motivation Three concepts of effort level: Expectancy Instrumentality Valence

CHAPTER 12 UNDERSTANDING ORGANIZATIONAL CONFLICT AND POLITICS

ORGANIZATIONAL CONFLICT
Conflict refers to a process in which one party perceives that its interests are being opposed or negatively affected by another party Negative outcomes: Loss of skilled employees Sabotage Low quality of work Positive outcomes: Creative alternatives Increased motivation and commitment

ORGANIZATIONAL POLITICS
When employees are in group, there will be an individual who will practice power to influence others in the group Influence tactics to gain power that others perceive to be self-serving behaviour to gain self-interests Can be minimized by providing clear rules for resource allocation

WHY CONTROL ORGANIZATIONAL CONFLICT AND POLITICS?
Organizational control comprises formal policies, rules, procedures and records for preventing or correcting deviations form plans and for achieving desired goals Power in conflict management Reward power Coercive power Legitimate power Expert power Referent power

INSTRUMENTS OF CONTROL
Preventive Control Mechanisms intended to reduce errors and thereby minimize the need for corrective action Corrective Control Mechanisms intended to reduce or eliminate unwanted behaviours or results and thereby achieve conformity with the organization’s regulations and standards

CORRECTIVE CONTROL MODEL
Define the system Identify key characteristics Set standards Collect information Make comparisons If okay, continue If deviations, next step Diagnose and correct problems

CHAPTER 13 ORGANIZATIONAL RESISTANCE TO CHANGE

NEED FOR ORGANIZATIONAL CHANGE
Organizational change refers to any transformation in the design or functioning of an organization Degree of change Radical change Occurs when organizations make major innovations in the ways they do business Incremental change An ongoing process of evolution over time, during which many small adjustments occur routinely

NEED FOR ORGANIZATIONAL CHANGE
Timing of change Reactive change Occurs when an organization is forced to change in response to some event in the external or internal environment Anticipatory change Occurs when managers make organizational modifications based on forecasts of upcoming events or early in the cycle of a new trend

CHANGE PROCESS Assess the environment Determine the performance gap
Diagnose organizational problems Articulate and communicate a vision for the future Develop and implement an action plan Anticipate resistance and take action to reduce it The monitor changes

RESISTANCE OF CHANGE Individual resistance Perceptions Personality
Habit Threats to power and influence Fear of the unknown Economic reasons

RESISTANCE OF CHANGE Organizational resistance Organization design
Organizational culture Resource limitations Fixed investments Inter-organizational agreements

MAKING CHANGES IN THE ORGANIZATION
Individuals Teams Leadership Organizational systems Reward systems Organization design Culture

ORGANIZATIONAL DEVELOPMENT
Management of change and development of organization Comprehensive approach to planned change that is aimed at improving the overall effectiveness of organization Three methods of OD: Focus group Survey feedback Team building

CHAPTER 14 IMPACT OF CHANGING ENVIRONMENT ON ORGANIZATIONAL BEHAVIOUR

IMPORTANCE OF CULTURE Culture is the unique pattern of shared assumptions, values and norms that shape the socialization, symbols, language, narratives and practices of a group of people Elements of a culture Assumptions Values and norms Socialization Symbols Language Narratives Practices

IMPACT OF TECHNOLOGY AND INFORMATION AGE
Technological change Involves incremental adjustments or radical innovations that affect work-flows, production methods, materials and information system Information technology Comprises complex networks of computers, telecommunications systems and remote-controlled devices

INCREASED CONCERN WITH QUALITY
Quality control process Inputs Transformation operations Outputs Importance of quality Positive company image Lower costs and higher market share Decreased liability

ENVIRONMENT OF UNCERTAINTY
Uncertainty avoidance is the extent to which members of a culture rely on social norms, procedures and organizations to avoid ambiguity, unpredictability and risk With high uncertainty avoidance, individuals seek orderliness, consistency, structure, formalized procedures and laws to cover situations in their daily lives

IMPORTANCE OF ETHICS AND SOCIAL RESPONSIBILITY
Ethics is a set of values and rules that define right and wrong conduct These values and rules indicate when behaviour is acceptable and when it is unacceptable Four basic forces that influence the ethical conduct of individuals and organizations Cultural forces, legal and regulatory forces, organizational forces, individual forces

IMPORTANCE OF ETHICS AND SOCIAL RESPONSIBILITY
Social responsibility holds that managers and other employees have obligations to identifiable groups that are affected by or can affect the achievement of an organization’s goals Protecting the natural environment Finding win-win solutions Evaluating social performance

MANAGING DIVERSITY Categories of diversity Changing workforce Gender
Primary categories Secondary categories Changing workforce Gender Race and ethnicity Age

CHAPTER 15 MANAGING INDIVIDUAL STRESS

NATURE OF STRESS Stress is the excitement, feeling of anxiety and physical tension that occurs when the demand placed on an individual are thought to exceed his ability to cope Stressor is the physical or psychological demands from the environment that cause stress Stressor create stress or potential for stress when an individual perceives them as representing a demand that may exceed that person’s ability to respond

PERSONALITY AND STRESS
Many personality traits are related to stress Example: Individuals with low self-esteem is more likely to experience stress in demanding work situations than is a person with high self-esteem Individuals with high internal locus of control may take more effective action, more quickly in coping with a sudden emergency than might individuals with high external locus of control

SOURCES OF STRESS Workload Job conditions Role conflict and ambiguity
Career development Interpersonal relations

EFFECTS OF STRESS Impacts on health Impacts on performance
Impacts on job burnout

MANAGING STRESS Individual initiatives Organizational initiatives
Control the sources of stress Be able to cope with stress Organizational initiatives Reducing work stressors Modifying behaviours Creating wellness programs

CHAPTER 16 CULTIVATING ORGANIZATIONAL CULTURE

DYNAMICS OF ORGANIZATIONAL CULTURE
- represents a complex pattern of beliefs, expectations, ideas, values, attitudes and behaviors shared by members of organization - includes: - routine ways of communicating - norms shared by individuals and teams

DYNAMICS OF ORGANIZATIONAL CULTURE
- includes: - dominant values held by organization - philosophy that guides management - rules for getting along in organization - feeling in the organization

HOW CULTURES EMERGE Top management Behaviours
Agrees on shared assumptions of human behaviour Develops a shared vision of cultural values Behaviours Employees behave in ways that are consistent with shared values and assumptions

HOW CULTURES EMERGE Results Culture Financial performance Market share
Employee commitment Culture Strong culture emerges Traditions are maintained Socialization practices for new employees

TYPES OF ORGANIZATIONAL CULTURE
Bureaucratic culture Clan culture Entrepreneurial culture Market culture

BUREAUCRATIC CULTURE Values formality, rules, standard operating procedures and hierarchical coordination Its members highly value standardized goods and customer service Managers view their roles as being good coordinators, organizers and enforces of written rules and standards

CLAN CULTURE Tradition, loyalty, personal commitment, extensive socialization, teamwork, self-management and social influence Its members recognize an obligation beyond the simple exchange of labour for a salary Members have strong sense of identification and recognize their common fate in organization

ENTREPRENEURIAL CULTURE
High levels of risk taking, dynamism and creativity Commitment to experimentation, innovation and being on the leading edge Not only quickly react to changes in the environment but it creates change Provide new and unique products and rapid growth

MARKET CULTURE Achievement of measurable and demanding goals, especially those that are financial and market-based (sales growth, profitability and market share) Hard-driving competitiveness and a profit orientation prevail throughout the organization Relationship between individual and organization is contractual

ETHICAL BEHAVIOUR AND ORGANIZATIONAL CULTURE
Impact of culture Organizational culture involves a complex interplay of formal and informal systems that may support either ethical or unethical behaviour. An important concept linking organizational culture to ethical behaviour is principled organizational dissent, by which individuals in an organization protest, on ethical grounds, some practice or policy

ETHICAL BEHAVIOUR AND ORGANIZATIONAL CULTURE
Whistle-blowing Disclosure by current of former employees of illegal, immoral or illegitimate organizational practices to people or organizations that may be able to change the practice The whistle-blower lacks the power to change the undesirable practice directly and so appeals to other either inside or outside the organization

FOSTERING CULTURAL DIVERSITY
Challenges Characteristics of effective diversity culture Managers and employees must understand that a diverse workforce will embody different perspectives and approaches to work Managers must recognize learning opportunities and challenges Organizational culture must create an expectation of high standards of performance and ethics Organizational culture must stimulate personal development Organizational culture must encourage openness

SOCIALIZATION OF NEW EMPLOYEES
Organizational socialization is the systematic process by which an organization brings new employees into its culture. Steps in socialization Careful selection Challenging early work assignments Training to develop capabilities with culture Rewards that sustain culture Adoption of cultural value policies Ritual, taboos, rites and stories to reinforce culture Role model to sustain culture

MGMT 330 ORGANIZATIONAL BEHAVIOUR

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