Introduction to Organizational Behavior

Organizational Behavior - systematic study of the actions

and attitudes that people exhibit within organizations
The field of OB seeks to replace intuitive explanations
with systematic study

Goals of Organisational Behaviour

Explain, predict, and control human behavior

Why Do We Study OB?

To

learn about yourself and how to deal with others

You are part of an organization now, and will continue to be
a part of various organizations
Organizations are increasingly expecting
individuals to be able to work in teams, at least
some of the time
Some of you may want to be managers or
entrepreneurs

What Is an Organization?
A consciously coordinated social unit, composed of a group
of people, which functions on a relatively continuous basis
to achieve a common goal or set of goals.

Determinants of Employee Performance

Productivity
Absenteeism
Turnover
organizational behaviour is a field of study that investigates
the impact that individuals, groups and structure have on
behaviour withinorganizations, for the purpose of applying
such knowledge toward improving an organizations
effectiveness.
Systematic study - the use of scientific evidence gathered
under controlled conditions and measured and interpreted in
a reasonably rigorous manner to attribute cause and effect

Challenges Facing the Workplace

Organizational Level
Productivity
Developing Effective Employees
Global Competition
Managing in the Global Village Group Level
Working With Others
Workforce DiversityIndividual Level
Job Satisfaction
Empowerment
Behaving Ethically

Contributing Disciplines
Psychology seeks to
measure,explain,
and change
behavior

Sociology studies
people in relation to their
fellow human beings

Social psychology
focuses on the
influence of people
on one another
Anthropology is the
study of societies
to learn about human
beings and their activities

Political science is the

study of the
behavior of individuals
and groups within
a political environment

Responding to Globalization
Increased Foreign Assignments
Working with People from Different
Cultures
Coping with Anti-Capitalism Backlash
Overseeing Movement of Jobs to
Countries with Low-cost Labor

OB Insights
Improving People Skills
Improving Customer Service
Empowering People
Working in Networked Organizations
Stimulating Innovation and Change
Coping with Temporariness
Helping Employees Balance Work/Life
Conflicts
Declining Employee Loyalty
Improving Ethical Behavior

Definition of Learning
A relatively permanent change
in behaviour (or behaviour
tendency) that occurs as a
result of a persons interaction
with the environment

How Learning Occurs

Classical Conditioning
No Response

Bell

Unconditioned
Response
(Salivation)

Unconditioned Stimulus
(Food)
During
Conditioning
Conditioned Stimulus
(Bell)

Conditioned Stimulus
(Bell)

Unconditioned
Stimulus
(Food)
Unconditioned
Response (Salvation)
Conditioned Response
(Salivation)

Operant Conditioning

Contingencies of
Reinforcement
Consequence
is introduced
Behaviour
increases/
maintained

Positive
reinforcement

Behaviour
decreases

Punishment

No
consequence

Consequence
is removed
Negative
reinforcement

Extinction

Punishment

Schedules of Reinforcement
Behaviours
1

Continuous
Fixed ratio
Variable ratio
Time (Days)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Fixed interval
Variable interval

Kolbs Experiential Learning

Model
Concrete
experience

Active
experimentation

Reflective
observation

Abstract
conceptualization

Developing a Learning
Orientation
Value the generation of new
knowledge
Reward experimentation
Recognize mistakes as part of
learning
Encourage employees to take
reasonable risks

Action Learning
Experiential learning in which
employees are involved in a real,
complex and stressful problem,
usually in teams, with immediate
relevance to the company
Concrete experience
Learning meetings
Team conceptualizes and applies a
solution to a problem

Learning and OB
Stimulus generalization in Organizations
Stimulus discrimination in Organizations
Learning and Training
Learning Through Training
Employee Indiscipline

What is Personality?

Personality Determinants
Heredity
Environment
Situation
Family
Social

Personality Traits
The
TheBig
BigFive
FiveModel
Model

The
The Myers-Briggs
Myers-Briggs Type
Type Indicator
Indicator

Personality
PersonalityTypes
Types
Extroverted
Extrovertedor
orIntroverted
Introverted(E
(E
or
orI)I)
Sensing
Sensingor
orIntuitive
Intuitive(S
(Sor
orN)
N)
Thinking
Thinkingor
orFeeling
Feeling(T
(Tor
orF)
F)
Perceiving
Perceivingor
orJudging
Judging(P
(Por
orJ)
J)

OTHER PERSONALITY TRAITS

Achievement
Orientation

Authoritarianism

Self - Esteem

Locus of Control

Risk -Taking
Personality
Traits

Machiavellism

Self - Monitoring

Introversion
Extroversion

Type A Type B
Personality

Major
Major Personality
PersonalityAttributes
Attributes Influencing
Influencing OB
OB

Locus of control
Machiavellianism
Self-esteem
Self-monitoring
Propensity for risk taking
Type A personality

Locus
Locus of
of Control
Control

Machiavellianism
Machiavellianism

Conditions
ConditionsFavoring
FavoringHigh
HighMachs
Machs
Direct
Directinteraction
interaction
Minimal
Minimalrules
rulesand
andregulations
regulations
Distracting
Distractingemotions
emotions

Self-Esteem
Self-Esteem and
and Self-Monitoring
Self-Monitoring

Risk-Taking
Risk-Taking
High Risk-taking Managers
Make quicker decisions.
Use less information to make decisions.
Operate in smaller and more entrepreneurial
organizations.
Low Risk-taking Managers
Are slower to make decisions.
Require more information before making decisions.
Exist in larger organizations with stable environments.
Risk Propensity
Aligning managers risk-taking propensity to job
requirements should be beneficial to organizations.

Personality
Personality Types
Types

Achieving
Achieving Personality-Job
Personality-Job Fit
Fit
Hollands
Hollands
Typology
Typologyof
of
Personality
Personality
and
and
Congruent
Congruent
Occupation
Occupation
ss

OB
OB Applications
Applications of
of Understanding
Understanding Emotions
Emotions
Ability and Selection
Emotions affect employee effectiveness.

Decision Making
Emotions are an important part of the
decision-making process in organizations.

Motivation
Emotional commitment to work and high
motivation are strongly linked.

Leadership
Emotions are important to acceptance of
messages from organizational leaders.

OB
OB Applications
Applications of
of Understanding
Understanding Emotions
Emotions
Interpersonal Conflict
Conflict in the workplace and individual
emotions are strongly intertwined.

Deviant Workplace Behaviors

Negative emotions can lead to employee
deviance in the form of actions that violate
established norms and threaten the
organization and its members.
Productivity failures
Property theft and destruction
Political actions
Personal aggression

Defining
Defining Motivation
Motivation

Key
KeyElements
Elements
1.1. Intensity:
Intensity:how
howhard
hardaaperson
persontries
tries
2.2.
3.3.

Direction:
Direction:toward
towardbeneficial
beneficialgoal
goal
Persistence:
Persistence:how
howlong
longaaperson
persontries
tries

Challenges of Motivating
Employees
Changing workforce
Younger employees have different
needs
Diverse workforce

Layoffs, restructuring
Damaged trust, commitment

Flatter organizations
Fewer supervisors to monitor
performance

Needs Hierarchy Theory

Needs Hierarchy
Theory
SelfActualization
Esteem
Belongingness
Safety
Physiological

Maslow arranged five

needs in a hierarchy
Satisfaction-progression
process
People who experience
self-actualization desire
more rather than less of this
need
Not much support for
Maslows theory

Theory
Theory XX and
and Theory
Theory YY (Douglas
(Douglas McGregor)
McGregor)

Hollands
Typology of
Personality
and Congruent
Occupations

Two-Factor
Two-Factor Theory
Theory (Frederick
(Frederick Herzberg)
Herzberg)

Factors characterizing events

on the job that led to extreme
job dissatisfaction

Factors characterizing events

on the job that led to extreme
job satisfaction

Comparison
Comparisonof
of
Satisfiers
and
Satisfiers and
Dissatisfiers
Dissatisfiers

Contrasting
Contrasting Views
Views of
of Satisfaction
Satisfaction
and
and Dissatisfaction
Dissatisfaction

Presence

Absence

ERG Theory ( Alderfer)

Needs Hierarchy
Theory
SelfActualization

ERG
Theory

Growth

Esteem
Belongingness

Relatedness

Safety
Existence
Physiological

Alderfers model has

three sets of needs
Adds frustrationregression process to
Maslows model
Somewhat more
research support than
Maslows theory

Innate Drives Theory

Drive to Acquire

Need to take/keep objects and

experiences
Basis of hierarchy and status

Drive to Bond

Need to form relationships and

social commitments
Basis of social identity

Drive to Learn

Need to satisfy curiosity and

resolve conflicting information
Basis of self-actualization

Drive to Defend

Need to protect ourselves

A reactive (not proactive) drive
Basis of fight or flight

Innate Drives and Motivation

Emotional brain centre relies on
innate drives to assign emotional
markers to incoming information
Emotional markers influence
rational thoughts and become the
conscious sources of motivation

Learned Needs Theory

Some needs are learned, not innate
Need for achievement
desire for challenging and somewhat risky
goals, feedback, recognition

Need for affiliation

desire to seek approval, conform, and avoid
conflict
try to project a favourable self-image

Need for power

desire to control ones environment
personalized versus socialized power

Implications of Needs-based
Theories
Organizations need to support
employees to achieve a balance of
their innate needs
People have different needs at
different times
Offer employees a choice of
rewards
Do not rely too heavily on financial
rewards

Expectancy
Expectancy Theory
Theory

Expectancy Theory in
Practice
Increasing the E-to-P expectancy
training, selection, resources, clarify roles,
provide coaching and feedback

Increasing the P-to-O expectancy

Measure performance accurately, clarify
outcomes, explain how rewards are based
on past performance, provide examples

Increasing outcome valences

Use valued rewards, individualize rewards,
minimize countervalent outcomes

Effective Goal Setting

Specific
Relevant
Challenging
Commitment
Participation
Feedback

Task
Effort

Task
Performance

Characteristics of Effective
Feedback
Specific
Credible

Effective
Feedback

Sufficiently
frequent

Relevant

Timely

Multisource (360-degree)
Feedback
Supervisor
Customer

Co-worker

Evaluated
Employee

Subordinate

Project
leader

Co-worker

Subordinate
Subordinate

What
What Is
Is Perception,
Perception, and
and Why
Why Is
Is ItIt Important?
Important?
Peoples
Peoplesbehavior
behavior isis
based
based on
on their
their
perception
perception of
of what
what
reality
reality is,
is, not
not on
on
reality
reality itself.
itself.
The
The world
world as
as itit isis
perceived
perceived isis the
the world
world
that
that isis behaviorally
behaviorally
important.
important.

Perceptual Process Model

Environmental Stimuli
Feeling

Hearing

Seeing

Smelling

Selective Attention
Organization and
Interpretation
Emotions and
Behaviours

Tasting

Selective Attention
Characteristics of the object
size, intensity, motion, repetition,
novelty

Perceptual context
Characteristics of the perceiver
attitudes
perceptual defense
expectations -- condition us to expect
events

Factors
FactorsThat
That
Influence
Influence
Perception
Perception

EXHIBIT

5-1

Person
Person Perception:
Perception: Making
Making Judgments
Judgments About
About
Others
Others

Distinctiveness:
Distinctiveness:shows
showsdifferent
differentbehaviors
behaviorsinindifferent
different
situations.
situations.
Consensus:
Consensus:response
responseisisthe
thesame
sameas
asothers
othersto
tosame
same
situation.
situation.
Consistency:
Consistency:responds
respondsininthe
thesame
sameway
wayover
overtime.
time.

Attribution
Attribution Theory
Theory

Errors
Errors and
and Biases
Biases in
in Attributions
Attributions

Errors
Errors and
and Biases
Biases in
in Attributions
Attributions (contd)
(contd)

Errors
Errors and
and Biases
Biases in
in Attributions
Attributions

Frequently
Frequently Used
Used Shortcuts
Shortcuts in
in Judging
Judging Others
Others

Stereotyping
Process of assigning traits to people based on their
membership in a social category
Categorical thinking
Strong need to understand and anticipate others behaviour
Enhances our self-perception and social identity

Minimizing Stereotyping Biases

Diversity awareness training
educate employees about the benefits of diversity and
dispel myths
Meaningful interaction
Contact hypothesis
Decision-making accountability
use objective criteria in decision-making

Specific
Specific Applications
Applications in
in Organizations
Organizations
Employment Interview
Perceptual biases affect the accuracy of interviewers
judgments of applicants.
Performance Expectations
Self-fulfilling prophecy (pygmalion effect): The lower or
higher performance of employees reflects preconceived
leader expectations about employee capabilities.
Performance Evaluations
Appraisals are subjective perceptions of performance.
Employee Effort
Assessment of individual effort is a subjective judgment
subject to perceptual distortion and bias.

Other Perceptual Errors

Primacy

first impressions

Recency

most recent information dominates

perceptions

Halo

one trait forms a general impression

Projection

believing other people are similar to

you

Improving Perceptions
Empathy
Sensitivity to the feelings, thoughts,
and situation of others
Cognitive and emotional component

Self-awareness
Awareness of your values, beliefs and
prejudices
Applying Johari Window

Conflict Defined
The process in which one party
perceives that its interests are being
opposed or negatively affected by
another party.

Conflict

The Conflict Process

Conflict
Perceptions
Sources of
Conflict

Manifest
Conflict
Conflict
Emotions

Conflict
Escalation Cycle

Conflict
Outcomes

Task vs. Socioemotional

Conflict
Task-related conflict
Conflict is aimed at issue, not parties
Helps recognize problems, identify
solutions, and understand the issues
better
Potentially healthy and valuable

Socioemotional conflict
Conflict viewed as a personal attack
Introduces perceptual biases
Distorts information processing

Organizational Conflict
Outcomes
Conflict Management
Interventions that alter the level and
form of conflict for organizational
effectiveness

Constructive Conflict
Encourages people to learn about
other points of view

Organizational Conflict
Outcomes
Potential benefits
Improves decision making
Strengthens team dynamics

Dysfunctional outcomes
Diverts energy and resources
Weakens knowledge management
Increases frustration, job
dissatisfaction, stress, turnover and
absenteeism

Sources of Conflict
Incompatible
Goals

One partys goals perceived to

interfere with others goals

Differentiation

Different values/beliefs
Explains cross-cultural and
generational conflict

Task
Interdependence

Conflict increases with

interdependence
Higher risk that parties interfere with
each other
more

Sources of Conflict (cont)

Scarce
Resources

Motivates competition for the resource

Ambiguous Rules

Creates uncertainty, threatens goals

Without rules, people rely on politics

Communication
Problems

Increases stereotyping
Reduces motivation to communicate
Escalates conflict when arrogant

Conflict Management Styles

Forcing

Assertiveness

High

Problem-Solving

Compromising

Avoiding
Low

Yielding

Cooperativeness

High

Conflict resolution
Emphasizing Superordinate Goals
Emphasizing common objectives rather than conflicting sub-goals
Reduces goal incompatibility and differentiation

Reducing Differentiation
Remove sources of different values and beliefs
Move employees around to different jobs, departments, and regions
Other ways to reduce differentiation:
Common dress code/status
Common work experience

Better Communication/Understanding
Employees understand and appreciate each others views through communication
Informal gatherings
Formal dialogue sessions
Teambuilding activities

Other Ways to Manage Conflict

Reduce Task Interdependence
Dividing shared resources
Combine tasks
Use buffers

Increase Resources

Duplicate resources

Clarify Rules and Procedures

Clarify resource distribution
Change interdependence

Situational Influences on
Negotiation
Location
Physical
Setting
Time Passage
and Deadlines
Audience

Effective Negotiator
Behaviours
Preparation and
Goal Setting
Gathering
Information
Communicating
Effectively
Making Concessions

Types of Third Party

Intervention
High

Mediation

Inquisition

Level of
Process
Control
Arbitration
Low

Level of Outcome Control

High

Organizational Culture Defined

The basic pattern of shared assumptions,
values, and beliefs considered to be the
correct way of thinking about and acting
on problems and opportunities facing the
organization.

The Basic Functions of

Organizational Culture
Organizational
Culture/basic functions

Provides a
sense of
identity for
members

Enhances
commitment
to the
organizations
mission

Clairifies
and
reinforces
standards
of behavior

What
What Is
Is Organizational
Organizational Culture?
Culture?

What
What Is
Is Organizational
Organizational Culture?
Culture?
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 organizations
culture.
Nationals selected to work for foreign
companies may be atypical of the
local/native population.

What
What Do
Do Cultures
Cultures Do?
Do?
Cultures
CulturesFunctions:
Functions:
1.1. Defines
Definesthe
theboundary
boundarybetween
betweenone
one
organization
organizationand
andothers.
others.
2.2. Conveys
Conveysaasense
senseof
ofidentity
identityfor
forits
itsmembers.
members.
3.3. Facilitates
Facilitatesthe
thegeneration
generationof
ofcommitment
commitmentto
to
something
somethinglarger
largerthan
thanself-interest.
self-interest.
4.4. Enhances
Enhancesthe
thestability
stabilityof
ofthe
thesocial
socialsystem.
system.

What
What Do
Do Cultures
Cultures Do?
Do?
Culture
Cultureas
asaaLiability:
Liability:
1.1. Barrier
Barrierto
tochange
change
2.2. Barrier
Barrierto
todiversity
diversity
3.3. Barrier
Barrierto
toacquisitions
acquisitionsand
and
mergers
mergers

Core Organizational Values

Reflected in Culture
Sensitivity to needs of customers and employees
Freedom to initiate new ideas
Willingness to tolerate taking risks
Openness to communication options

Elements of Organizational
Culture
Artifacts of
Organizational
Culture

Physical Structures
Language
Rituals and
Ceremonies
Stories and Legends

Organizational
Culture

Beliefs
Values
Assumptions

Artifacts: Stories and Legends

Social prescriptions of desired
(undesired) behaviour
Provides a realistic human side to
expectations
Most effective stories and legends:

Describe real people

Assumed to be true
Known throughout the organization
Are prescriptive

Artifacts: Rituals and

Ceremonies
Rituals
programmed routines
(eg., how visitors are greeted)

Ceremonies
planned activities for an audience
(eg., award ceremonies)

Artifacts: Organizational
Language
Words used to address people,
describe customers, etc.
Leaders use phrases and special
vocabulary as cultural symbols
eg. Container Stores Being Gumby

Language also found in

subcultures
eg. Whirlpools PowerPoint culture

Artifacts: Physical Structures and

Symbols
Building structure -- may shape
and reflect culture
Office design conveys cultural
meaning
Furniture, office size, wall hangings

Organizational
Organizational Culture
Culture

The Process of Innovation

Stage 1

Stage 2

Stage 3

Stage 4

Setting
the
Agenda

Setting
the
Stage

Producing
the
Ideas

Testing and
Implementing
the Ideas

Motivation

Individual
or Team
Productivity
Resources
Skills

Stage 5

Progress

Success
Outcome
Assessment
Failure

End
End

Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture
Managerial
ManagerialActions:
Actions:
Select
Selectnew
newemployees
employeeswith
withpersonality
personalityand
and
attitudes
attitudesconsistent
consistentwith
withhigh
highservice
service
orientation.
orientation.
Train
Trainand
andsocialize
socializecurrent
currentemployees
employeesto
tobe
be
more
morecustomer
customerfocused.
focused.
Change
Changeorganizational
organizationalstructure
structureto
togive
give
employees
employeesmore
morecontrol.
control.
Empower
Empoweremployees
employeesto
tomake
makedecision
decisionabout
about
their
theirjobs.
jobs.

Creating
Creating aa Customer-Responsive
Customer-Responsive Culture
Culture
Managerial
ManagerialActions
Actions(contd)
(contd)::
Lead
Leadby
byconveying
conveyingaacustomer-focused
customer-focusedvision
vision
and
anddemonstrating
demonstratingcommitment
commitmentto
tocustomers.
customers.
Conduct
Conductperformance
performanceappraisals
appraisalsbased
basedon
on
customer-focused
customer-focusedemployee
employeebehaviors.
behaviors.
Provide
Provideongoing
ongoingrecognition
recognitionfor
foremployees
employeeswho
who
make
makespecial
specialefforts
effortsto
toplease
pleasecustomers.
customers.

Keeping
Keeping Culture
Culture Alive
Alive

Selection

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 organizations culture.

Stages
Stages in
in the
the Socialization
Socialization Process
Process

How
How Organization
Organization Cultures
Cultures Form
Form

How
How Employees
Employees Learn
Learn Culture
Culture

Stories
Stories
Rituals
Rituals
Material
MaterialSymbols
Symbols
Language
Language

Spirituality
Spirituality and
and Organizational
Organizational Culture
Culture

Characteristics:
Characteristics:
Strong
Strongsense
senseof
of
purpose
purpose
Focus
Focuson
onindividual
individual
development
development
Trust
Trustand
andopenness
openness
Employee
Employee
empowerment
empowerment
Toleration
Tolerationof
ofemployee
employee
expression
expression

Vulnerable Sensitive. Honest about your weakness.

Just the qualities you need to be a strong leader.
Consider leading softly is more effective than armour
plated command and control.
Harvard Business Review
Failing Organisations are usually over-managed and
under-led. Warren G Bennis
Todays Presentation is aimed at:
Discussing the necessity of leadership.
Understanding and finding implications of different
leadership styles.
Identifying differences between Manager and Leader.
Theories of leadership.

Leadership is the ability to persuade others to seek

defined objectives enthusiastically. It is the human factor
which binds a group together and motivates it towards
goals. Keith Davis
Leadership is the art or process of influencing people so
that they will strive willingly and enthusiastically towards
the achievement of group goals. Koontz
Leadership is the quality of behaviour of individuals
whereby they guide people or their activities in organising
efforts. Chester Barnard

It implies:

It is a continuous process.
Essentially a process of influencing.
Basically a personal quality.
A continuous motivation process.
Functioning of a common goals determines leader follower relationship.

NECESSITY
Motivating Employees.
Creating Confidence.
Building Morale.
Developing Team Work.
Securing Group Effectiveness.
Counselling People.

STYLES OF LEADERSHIP
Autocratic Leadership
Participative Leadership
Free-rein Leadership

Autocratic Leadership
Authoritarian, directive or nomothetic style.
Ultra-utilization of power.
Result may be negative leadership.

Types of Autocratic Leadership

Strict Autocrat
Benevolent Autocrat
Incompetent Autocrat

Participative Leadership
Democratic, consultative or ideographic style.
Team building and goal sharing.
Consultation and participation of subordinates.
Decentralised decision - making process.

Free-rein Leadership
Super democratic style.
Policy of no intervention.
Managers only contribution in framing
programmes and limitation.
Manager only maintains a contact.

policy

Leadership Theories

Trait Theories.
Behavioural Theories.
Contingency Theories.
Situational Theories.
LMX Theory.
Leadership-participation Theory.
Path-Goal Theory.

LEADERSHIP AS A CONTINUUM
Leadership in a practical world is between two
extremes of autocratic and free-rein.
Tannenbaum and Schmidt proposed a continuum
moving from authoritarian leadership behaviour to
Autocratic
Free-rein
free-rein.

(boss centered
leadership)

(subordinate centered
leadership)

Use of authority by the

Manager
Area of freedom for
subordinates
Manager takes
decisions and
announces

Manager presents ideas

and invities suggestions

Manager sells
decisions

Manager presents
problems, gets
suggestions and
makes decisions

Manager presents
tentative decision
subject to change

Manager permits
subordinates of
function within limits
defined by superior

Manager defines
limits, asks groups to
make decision

DIFFERENCES BETWEEN MANAGER AND LEADER

Managers are people who do things right, and leaders are
people who do the right thing. Managements efficiency lies
in climbing the ladder of success, leadership determines
whether the ladder s leaning against the right wall.

Warren Bennis and Burt Nanus

LEADERSHIP
1. Leader leads people.
2. Leader can use
his/her
informal influence.
3. Leaders create a vision and
inspire others to achieve this
vision.
4. Leader
processes
nonsanctioned influences ability.
5. Leader inspires enthusiasm.

MANAGEMENT
1. Manager manages things.
2. Managers
hold
formal
position.
3. Managers achieve results by
directing the activities of
others.
4. Manager
enjoys
formal
designated authority.
5. Manager engenders fear.

Way to Effective Leadership

Finding the Leader in You
Starting to Communicate
Motivating People
Expressing Genuine Interest in others
Seeing Things from the Other Persons point of view
Listening to Learn
Teaming up for Tomorrow
Respecting the dignity of others
Recognition, Praise, and Rewards
Handling Mistakes, Complaints, and Criticism
Setting Goals
Focus and Discipline
Achieving Balance
Creating a Positive Mental Attitude
Learningnot to worry
The Power of Enthusiasm

Organisational Change
Organisational Change is the process by which
organisations move from their present state to some
desired future state to increase their effectiveness
Gareth. R. Jones
Org Level Forces
Org structure
Org Cultureion
Org Strategy &
Over Determination

Group level Forces

Group Norms
Group Cohesiveness
Groupthink

Sources of
Change

Sub Unit Level Forces

Differences in Orientation
Power & Conflict

Individual Level Forces

Cognitive Biases
Uncertainty
Fear of Loss
Selective Perception
Habit
Logical Reasons

Planned & Unplanned Change

Planned change are the activities that are
intentional and goal oriented
First order change Linear and Continuous
Second order change that is multidimensional
multilevel, continuous and radical
Change Agents: Can be managers or non
managers, employees or consultants
Change agents can change structure,
technology, physical setting and people

Force Field Analysis Model

Desired
Conditions

Restraining
Forces

Restraining
Forces

Current
Conditions

Driving
Forces

Restraining
Forces

Driving
Forces
Driving
Forces

Before
Change

During
Change

After
Change

Resistance to Change
Nature of the Workforce
Technology

Forces for
Change

Economic Shocks
Competition
Social Trends
World Politics

Creating an Urgency for

Change
Inform employees about driving forces
Most difficult when organization is doing
well
Must be real, not contrived
Customer-driven change
Adverse consequences for firm
Human element energizes employees

Minimizing Resistance to
Change
Communication

Highest priority and

first strategy for change
Improves urgency to
change
Reduces uncertainty
(fear of unknown)
Problems -- time
consuming and costly

Minimizing Resistance to
Change
Communication
Training
Employee
Involvement

Increases ownership of
change
Helps saving face and
reducing fear of unknown
Includes task forces,
search conferences
Problems -- timeconsuming, potential
conflict

Minimizing Resistance to
Change
Communication
Training
Employee
Involvement
Stress
Management

When communication,
training, and involvement
do not resolve stress
Potential benefits

More motivation to change

Less fear of unknown
Fewer direct costs

Problems -- timeconsuming, expensive,

doesnt help everyone

Minimizing Resistance to
Change
Communication
Training
Employee
Involvement
Stress
Management
Negotiation

When people clearly lose

something and wont
otherwise support change
Influence by exchange-reduces direct costs
Problems
Expensive
Increases compliance, not
commitment

Minimizing Resistance to
Change
Communication
Training
Employee
Involvement
Stress
Management
Negotiation
Coercion

When all else fails

Assertive influence
Firing people -- radical
form of unlearning
Problems
Reduces trust
May create more subtle
resistance

Refreezing the Desired

Conditions
Realigning organizational systems and
team dynamics with the desired changes
Alter rewards to reinforce new behaviours
Feedback systems
Help employees learn how they are doing
Provide support for the new behaviour
patterns

Strategic Vision & Change

Need a vision of the
desired future state
Minimizes employee fear
of the unknown
Clarifies role perceptions

Change Agents
Anyone who possesses
enough knowledge and
power to guide and facilitate
the change effort
Change agents apply
transformational leadership

Help develop a vision

Communicate the vision
Act consistently with the vision
Build commitment to the vision

Successfully Diffusing Change

Successful pilot project
Receives visibility
Top management support
Labour union involvement
Diffusion strategy described clearly
Pilot project people moved to other areas

Action Research Philosophy

Change needs both action and
research focus
Action orientation
Solve problems and change the
organizational system

Research orientation
Concepts guide the change
Data needed to diagnose problem,
identify intervention, evaluate change

Action Research Process

Establish
ClientConsultant
Relations

Diagnose
Need for
Change

IntroAduce
Change

Evaluate/
Stabilize
Change
Disengage
Consultants
Services

Appreciative Inquiry Philosophy

Directs the groups attention
away from its own problems
and focuses participants on
the groups potential and
positive elements.
Reframes relationships
around the positive rather
than being problem oriented

Courtesy of Amanda Trotsen-Bloom

Appreciative Inquiry Process

Discovery

Dreaming

Designing

Delivering

Discovering
the best of
what is

Forming
ideas about
what might
be

Engaging in
dialogue
about what
should be

Developing
objectives
about what
will be

Parallel Learning Structure

Philosophy
Highly participative social structures
Members representative across the formal
hierarchy
Sufficiently free from firms constraints
Develop solutions for organizational
change which are then applied back into
the larger organization

Parallel Learning Structures

Parallel
Structure

Organization

Cross-Cultural and Ethical

Concerns
Cross-Cultural Concerns
Linear and open conflict assumptions different
from values in some cultures

Ethical Concerns
Privacy rights of individuals
Management power
Individuals self-esteem
Consultants role

Communication
Communication may be understood as the process of
exchanging information and understanding between
people
Significance:
a.
Control member behaviour
b.
Fosters motivation
c.
Provides Information
d.
Changing peoples attitudes
e.
Essence of social behaviour
Proemics
f.
Role in knowledge management
Types of Communication:
a.
Verbal
Kinesics
b.
Non Verbal
c.
Written
Para language

Organisational Communication
a.
b.
c.
d.

Factors Influencing Organisational Communication

Formal channel of communication
Authority structure
Job specialisation
Information ownership

Communication Flows
a.
b.
c.
d.
e.

Downward communication
Upward communication
Lateral communication
Diagonal communiaction
External communication

Communication Networks
A

Y Network

Chain Network
A
A

Wheel Network

C
All Channel Network
A
B

Circle Network

Communication Roles
a.
b.
c.
d.

Gatekeepers
Liasons
Isolates
Cosmopolites

Informal Communication ( Grapevine )

a. Chain System
b. Cluster System
c. Gossip Sustem

Communication Process
Source
Message

Encoding
Message

Channel
Message

Decoding
Message

Reciever

F
E
E
D
B
A
C
K

Communication Barriers

Sender Related Barriers:

Communication Goals
Communication Skills
Interpersonal Sensitivity
Differing frames of reference
Improper Diction
Inconsistent Non Verbal Signals
Fear
Sender Credibility
Receiver Related Barriers
Selective & Poor Listening
Evaluating the Source
Perceptions
Lack of responsive feedback
Meta communication

Situation Related Barriers:

a. Jargon
b. Information Overload
c. Time Pressure
d. Communication Climate
e. Noise
f. Distance
g. Mechanical Failure
h. Murphys Law of Communication

Overcoming the Barriers:

Senders Responsibility
a. Setting communication goals
b. Using appropriate language
c. Using empathic communication
d. Improving Coommunicators Credibility
e. Using face to face communication
f. Encouraging feedback

g. Using a correct amount of redundancy

h. Developing trusting climate
i. Using picture
Receiver's Responsibility:
a. Effective Listening ( Barriers to effective listening ):
i. Physiological Limitation
ii. Inadequate background information
iii. Selective memory
iv. Selective expectation
v. Fear of being influenced or persuaded
vi. Bias and pre judgment
vii. Selective perception
viii.Influence from emotions
ix. Avoiding evaluative judgement
x. Providing responsive feedback

International OB
Trends in International Business
International joint ventures, Multinational mergers &

Acquisitions and global strategic alliances

More earning from international business than domestic
ABB, Honda, BP, Siemens, Motorola and Eastman kodak
functioning in more than 50 countries
Most assets owned by different nationalities
Trade volume growing since WW II from $51 Billion to $415
Billion in 1972 and since then $18 trillion till recent times

Cultural Similarities & Differences

Cultural Norms, Values, cultural symbols, stories and rituals
vary from nation to nation
Arabs
Japanese
Americans
Freedom
Independence
Self Reliance
Equality
Individualism
Competition
Efficiency
Time
Directness
Openness
Aggressiveness
Informality
Future Orientation
Risk Taking
Creativity
Self Accomplishment
Winning
Money
Material Possessions
Privacy

Belongingness
Group Harmony
Collectiveness
Age / Seniority
Group Consensus
Cooperation
Quality
Patience
Indirectness
Go Between
Interpersonal
Hierarchy
Continuation
Conservative
Information
Group Achievement
Success
Relationship
Harmony with Nature
Networking

Family Security
Family Harmony
Parental Guidance
Age
Authority
Compromise
Devotion
Very Patient
Indirectness
Hospitality
Friendship
Formal/Admiration
Past & Present
Religious Belief
Tradition
Social Recognition
Reputation
Friendship
Belongingness
Family Network

Cultural Clusters
Anglo
Australia
Canada
Ireland
New zealand
South Africa
UK
USA

Nordic
Denmark
Finland
Norway
Sweden

Germanic
Austria
Germany
Switzerland

Latin American
Argentina
Chile
Columbia
Mexico
Peru
Venezuela
Latin European
Belgium
France
Italy
Portugal
Spain
Near Eastern
Greece
Iran
Turkey
Portugal
Spain

Arab
Abu Dhabi
Bahrain
Kuwait
Oman
Saudi Arabia
UAE

Far Eastern
Hong Kong
Indonesia
Malaysia
Philippines
Singapore
Taiwan
Thailand
Vietnam

Independent
Brazil
India
Israel Japan

HR Practices
Hourly Wage rates in Mexico plays little role as it is
mandatory for the employers to pay wages for 365 days
In Aus and Brazil employees get 1 month leave for one yr of
work
In Japan seniority is the basis of promotions and
performance
In UK maternity leave is 40 weeks 18 of these paid
In sweden 87% of companies HR managers are on board of
directors

Hofstedes Cultural Dimension

Power Distance is the extent to which less powerful
members of institutions of and organizations accept that
power is distributed unequally
Uncertainty Avoidance is the extent to which people feel
threatened by ambiguous situations, and have certain beliefs
and institutions that try to avoid these
Individualism is the tendency of people to look after
themselves and their family
Masculinity refers to a situation in which the dominant
values in a society are success, money, and other material
things
Cultural Diversity Source of energy - can be great source
of energy and organizational effectiveness

Motivation Across Cultures

American
Management Styles

Leadership, Friendliness

Control

Independence, Decision
Making, Space, Time,
Money

Emotional Appeal

Opportunity

Recognition

Individual Contribution

Material Awards

Salary, Commission,
Profit Sharing

Threats

Japanese
Persuasion,
Functional
Group activities
Group Harmony

Group Participation;
Company Success
Group Identity, Belong
Ing to group
Annual Bonus, Social
Services, Fringe
Benefits

Arab
Coaching, Personal
attention, Parenthood
Of parents \
parenthood
Religion, Nationalistic,
Admiration
Individual Status,
Class\ society,
Promotion
Gift for self\family
Family affair, salary
increase
Demotion

Loss of Job
Out of Group

Cultural Values

Competition; Risk Taking

Material Possession;
Freedom

Group harmony,
Achievement,

Reputation, Family
security, Religion,
Social Status

Compensation Across Cultures

Japanese get paid more than three times the wages of other Asian
countries like Korea, Singapore, Taiwan
Korean & Japanese workers expect bonuses twice a year
In, Denmark more than 80% of employees belong to trade unions
In Germany a minimum 18 days paid annual leave is mandatory

In India
MNC employees are paid more for identical work
Distinction in salaries in different industries for identical works
Huge gaps between employees of organized and unorganized sectors
Distinction between salaries of public and private sector organizations
In Govt. sector salary gaps between different departments

Assignments

Choice
Customize

Stock
Purchase

Core
Flexible
Schedules

Tax
Deferral

Competitive Cash
Performance Based
Employability
Work Challenges

Benefit Choices

MNC Pay Schedules

Base /Bonus

Base/ Bonus
Mix

Phases of Cultural Adjustment

Phase 1 Expatriate experiences range of emotions
Phase 2 Crisis / Shock leading to negative appraisals
Phase 3 - Psychological adjustment for the expatriate
Phase 4 Adjustment to the new environment

Leadership across Cultures

Emotional Intelligence individual & social

1.
2.
3.
4.
5.

Self Awareness
Self Regulation
Motivation
Empathy
Social Skills

Subordinate Motivation

National Context
Culture influences
Worker needs and
expectations

National Context
Cultural Influences
Worker Needs &
Expectations

Subordinate
Characteristics
Needs
Achievement
Motivation

Leader Behaviors
&Traits

Work Setting
Outcomes
Performance
Satisfaction

Nature of tasks
Organizational structure
Nature of work group

National Context
Cultural institutions
Influence organizations
and group structures

National Context
culture and
educational training
define leader
preferences for
behaviors and
traits

Leadership Across Cultures

Universalism in Leadership
Articulates a Vision
Breaks from the Status Quo
Provides goals and a plan
Gives meaning or a purpose to goals
Takes risks
Is motivated to lead
Builds a power base
Demonstrates high ethical and moral standards

Multicultural Teams

Token Teams One member from one culture

Bicultural Teams Members from two cultures
Multicultural Teams Members from three or more cultures

Managing Culturally Diverse Teams

Task related selection

Establishing a vision
Equalizing

Negotiating Globally
When to Negotiate
Strategy

Negot
iate

High

Value of Relationship
Commitment
Exchange
Very
Important

Power
Distribution
Time
Available Yours/Theirs

Important

Sufficiently
Low

High

Very
Low

Un
Important

Very
Low

Low

Very
High

Bargain

Take it
or
Leave it

Low

Un
Important

Steps in International Negotiations

Step 1
Preparation
Step 2
Building the Relati
ship
Step 3
Exchange of Infor
mation and first offer
Step 4
Persuasion
Step 5
Concessions
Step 6
Agreement

Negotiating Tactics
Promise
Threat
Recommendation
Warning
Reward
Punishment
Normative Appeal
Commitment
Self Disclosure
Question
Command

Communicating Across Cultures

1.

2.
3.

Language and Culture

High & Low Context Languages in which people state
things directly and explicitly are low context language
and indirectly and implicitly is high context language
Use of Interpreters
Non Verbal Communication facial gestures, voice,
intonation, physical distance, smile, battling of eyelid,
kiss, handshake, and silence