Organizational Behavior
Organizational Behavior
Organizational Behavior
Definition - A
field of study that investigates -the impact that individuals, groups and structure have -on behavior within organizations -for the purpose of applying such knowledge toward improving an organizations effectiveness.
SCOPE OF OB
Contingency Anchor
MODELS OF OB MODELS OF OB
Autocratic Custodial Supportive Collaborative S-O-B-C
Supportive
Leadership Support
Collegial
Partnership Teamwork
Basis of Model Power Managerial Orientation Employee Orientation Employee Psychological Results Authority Obedience
Dependence on Dependence on Participation boss boss Security Passive co-operation Status and recognition
Self actualization
LEARNING
DEFINITION
Any relatively permanent change in behaviour that occurs as a result of experience. Our definition has several components that deserve clarification: Learning involves change. The change must be relatively permanent. Our definition is concerned with behaviour. Learning takes place when there is a change in action.
THEORIES OF LEARNING
Classical Conditioning: A type of conditioning in which individual responds to some stimulus that would not ordinarily produce that response. Operant Conditioning: A type of conditioning in which desired voluntary behaviour leads to a reward or prevents a punishment. Social-learning theory: People can learn through observation and direct experiences. (1)Attention-> (2)retention-> (3)behavioral reproduction-> (4)rehearsal/ retrieval of cues (5) Reinforcement
Theories of Learning
Classical Conditioning
Theory by Ivan Pavlov Individual responds to a stimulus that would not ordinarily produce such a response.
Operant Conditioning
Social Learning
Also referred to as observational learning. Emphasizes on the ability of an individual by observing others. Enhances the self efficiency of the learner.
SHAPING BEHAVIOUR
Systematically reinforcing each successive step that moves an individual closer to the desired response. Methods of shaping behaviour: Positive reinforcement. Negative reinforcement. Punishment. Extinction.
Following a response with something pleasant is called positive reinforcement. Following a response by the termination or withdrawal of something unpleasant is called as negative reinforcement. Punishment is causing unpleasant conditions in an attempt to eliminate an undesirable behaviour. Extinction eliminating any reinforcement that is maintaining a behaviour, is called extinction.
SCHEDULE OF REINFORCEMENT
Applying
Processi ng
Generalizi ng
LEARNING STYLES
Concrete experiences- excited by new activity experienced and share it with others. Reflective observers- objective observation, reflection, discussion, generalization Abstract conceptualizers- rely on logic and rational analysis. Active experimenters- pragmatic, try things out.
LEARNING PROCESS
The various elementsa.The training/ teaching organizationcalled the endosystem, has its own culture and dynamics. Main function is- to maximize motivation for learning by creating a culture and a climate
concerned with the mechanics. Main function is to help assimilation and stabilization of learning through practice and application
Important person, main representative of the influence system because of the impact made through behavior, values & competence Most important element, makes use of the other system. Main function is development & effective use of processes
MOTIVATION
Motivation starts with a physiological or psychological deficiency or need that activates a behaviour or a drive that is aimed at a goal or an incentive.
Motivation is derived from the Latin word movere, to move.
Motivation is a process that accounts for individuals (1)INTENSITY (2) DIRECTION (3)PERSISTENCE of efforts towards attaining goals Intensity is concerned with how hard a person tries. This is the element we most focus on when we talk about motivation. How ever high intensity is unlikely to lead to favorable job performance outcomes unless the efforts are channeled in the direction that benefits the organization. Finally motivation has a persistence dimension. This is a measure of how long a person can maintain his efforts. Motivated people stay with the task long enough to achieve their goals.
HIERARCHY OF NEEDS THEORY : There is a hierarchy of five needs Physiological, safety, social, self-esteem, and self actualization; as each need is satisfied, the next need becomes dominant.
1. Physiological: includes hunger, thirst, shelter and other body needs. 2. Safety: includes security and protection from physical and emotional harm. 3. Social: Includes affection, belongingness, acceptance and friendship. 4. Esteem: includes internal esteem factors such as self respect, autonomy, and achievements; and external esteem factors such as status recognition and attention. 5. Self-actualization: the drive to become what one is capable of becoming; includes growth, achieving ones potential and self-fulfillment.
In contrast to these negative views about the nature of human beings, McGregor listed four positive assumptions that are called THEORY Y: 1. employees can view work as natural as rest or play. 2. People will exercise self-direction and self-control if they are committed to the objectives. 3. The average person can learn to accept, even seek responsibilities. 4. The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management positions.
Feedback
Moderate risk
Goal setting theory presupposes that the individual is committed to the goal; that is, is determined not to lower or abandon the goal. This is most likely to occur when goals are made public, when the individual has an internal locus of control, and when the goal is self-set rather than assigned. Self efficacy refers to the individuals belief that he or she is capable of performing the task. The higher is your self-efficacy, the more confidence you have in your ability to succeed in a tasks. Individual goal setting doesn't work equally well on all tasks,. The evidence suggests that goals seem to have a more
substantial effect on performance when tasks are simple rather then complex, well learned rather then novel, independent rather then interdependent. On interdependent tasks, group goals are preferable. Goal setting theory is culture bound.
REINFORCEMENT THEORY
A counterpoint to goal-setting theory is reinforcement theory. The former is a cognitive approach, proposing that an individuals purpose directs his or her action. In reinforcement theory, we have a behaviorist approach, which argues that reinforcement conditions behavior.
Autonomy
Experienced responsibility for outcomes of works Knowledge of the actual results of the work activities Employee growthneed strength
Feedback
Expectancy Theory (Victor Vroom) The strength of a tendency to act in a certain way- depends on the
strength of an expectation -that the act will be followed by a given outcome- and on the attractiveness of that outcome to the individual.
1 2 3
Individual effort
Individual performance
Organizationa l Rewards
Personal goals
1. Effort-performance relationship: the probability perceived by the individual that exerting a given amount of effort will lead to performance. 2. Performance-reward relationship: the degree to which the individual perceives that performing at a particular level will lead to the attainment of desired rewards. 3. Rewards-personal goals relationship: the degree to which organizational rewards satisfy an individuals personal goals or needs and the attractiveness of those potential rewards for the individual.
Expectancy theory states Motivation (M), expectancy (E), instrumentality (I), and valence (V) are related to one another in a multiplicative fashion:
M=ExIxV
If either E, I, or V is low, motivation will be low.
Performance
Motivatio n
Opportuni ty
PERCEPTION
Definition
Perception is a process/ by which individuals organize and interpret their sensory impressions/ in order to give meaning to their environment
It is a unique interpretation of the situation not an exact recording of it The word "perception" comes from the Latin words perceptio, percipio, and means "receiving, collecting, action of taking possession, apprehension with the mind or senses
Examples of Perception
YELLOW BLUE ORANGE BLACK RED GREEN PURPLE YELLOW RED ORANGE GREEN BLACK BLUE RED PURPLE GREEN BLUE ORANGE
And NOW???
STIMULUS OR SITUATION External environment Sensory Stimulation Physical Environment Office Factory Floor Climate etc. Sociocultural Environment Management styles Management Values.
PERSON
PERCEPTUAL SELECTIVITY
Numerous stimuli are constantly confronting everyone. The principles of perceptual selectivity explain how and why people select only a very few stimuli at a given time.
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. . . . . .
. . . . . .
. . . . . .
PERCEPTUAL ORGANIZATION
Once the information from the situation is received because of perceptual organization the person will perceive organized patterns of stimuli and identifiable whole objects.
The persons perceptual process organizes the incoming information into a meaningful whole.
1.
Figure Ground: Perceived objects stand out as separable from their ground background. Perceptual Grouping: Tendency to group several stimuli together into a recognizable pattern. Similarity Proximity Closure Perceptual Constancy: This permits the individual to have some constancy in a tremendously variable and highly complex world. Perceptual Context: It gives meaning and value to simple stimuli in the environment.
2. 3.
4.
Perception
Shortcuts used in Judging others Selective perception Halo Effect Contrast Effects Projection Stereotyping Specific Applications in organizations Employment Interview Performance Expectations ( self fulfilling prophecy ) Performance Evaluation Employee Effort
Attribution Theory
A person tries to determine whether another persons behavior is caused by internal or external factors.
FACTORS
Internal under the personal control of an individual External situation forces a particular
1. Distinctiveness- Refers to whether an individuals displays different behavior in different situation. 2. Consensus- If everyone who faces similar situation responds in a same way, we can say that a behavior shows consensus 3. Consistency- It means that the person display same behavior over the period of time
Projection Attributing ones own characteristics to other people. Selective perception People selectively interpret what they see on the basis of their interest, background, experience, and attitudes. Stereotyping Judging someone on the basis of ones perception of the group to which that person belongs.
Halo effect Drawing a general positive impression about an individual on the basis of a single characteristic. Contrast effect Evaluating a persons characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics. Horn effect Drawing a general negative impression about an individual on the basis of a single characteristic.
Impression Impression management management is the process by which people attempt to manage or control
the perceptions others form of them. Two separate components of IM are : Impression motivation Impression Construction Five factors of Impression Construction are: Self concept Desired and undesired identity images Role constraints Targets values Current social image
Personality
INTERPERSONAL RELATIONSHIPS
DEFINITION The most frequently used definition of personality was produced by Gordon All port nearly 60 years ago.
He said personality is the dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to his environment. For our purposes you should think of personality as the sum total of ways in which an individual reacts and interacts with others. This is most often described in terms of measurable personality traits that a person exhibits.
heredity
Personality Determinants
environment
situation
SELF CONCEPT
THE BIG 5 MODEL : While the MBTI may lack valid supporting evidence, that cant be said for the five-factor model of personality more typically called the BIG FIVE. In recent years, an impressive body of research supports that five basic personality dimensions underlie all others. The Big five factors are: (ACE2O) Extraversion: Sociable, talkative, assertive Agreeableness: Good-natured, cooperative and trusting Conscientiousness: Responsible, dependable, persistent and achievement oriented. Emotional stability: Calm, enthusiastic, secure (positive) to tense, nervous, depressed and insecure (negative) Openness to experience: Imaginative, artistically sensitive and intellectual
PERSONALITY
Exroverts 2 basic processes Perception Sensing thinking intuiting judgement feeling introverts
Based on his basic elements of human psyche, a mother-daughter team(MyersBriggs) developed a 100-item instrument popularly called MBTI(Myers- Briggs type indicator ). MBTI is most widely used instrument for personality analysis. Sixteen personality types are generated by the instrument (a person can be of any type). These 16 types are based on a combination of four basic elements of psyche.
Sources of energy Extroversion(E) Introversion(I) Collecting information Sensing(S) Intuiting(N) Decision-making Thinking(T) Feeling(F) Understanding the world Judging(J) Perceiving(P)
-Outgoing; speaks, then thinks. Relates more easily to outer world of people and things than to inner world of ideas. -Reflective; thinks, then speaks. Relates more easily to inner world of ideas than to outer world of people. -Practical, concrete. Would work with known facts than look for possibilities and relationships. -Theoretical, abstract. Would look for possibilities and relationships than work with the known facts. -Analytical(head). Relies more on interpersonal analysis and logic than on personal values. -Subjective(heart). Relies on personal values than on impersonal analysis and logic. Structured, organized. Likes a planned and orderly way of life rather than a flexible, spontaneous way. -Flexible, spontaneous. Likes a flexible, spontaneous way rather than a planned and orderly way of life. -
COMBINING THESE FOUR ASPECTS, WE GET THE FOLLOWING SIXTEEN TYPES OF PERSONALITY. EACH TYPE HAS ITS OWN DYNAMICS.
ISTJ
ISTP
ESTP
INTP
ENTP
ISFJ
ESFJ
INFJ
ENFJ
ISFP
ESFP
INFP
ENFP
There are a number of specific personality attributes that have potential for predicting behavior exhibited at work. Among them, some of the most important facets include: 1. Locus of control 2. Need patterns and Achievement Orientation 3. Introversion and Extroversion 4. Authoritarianism and Dogmatism 5. Machiavellianism 6. Self-esteem 7. Self-monitoring 8. Tolerance for ambiguity 9. Risk-taking 10. Work-ethic orientation 11. Type A and Type B personality patterns
Johari Window
a en nce t m
st E
en hm lis ab t
G ro w ? th
Maintenanc e?
Declin e Stagnation ?
Explorati on
Low
Age
Needs
15
20
25
Tr ia
30
Ad v
35
40
45
50
55
60
65
Identity
Intimacy
Generatively
Integrity
Ericksons stage / (Success & Failure to meet requirements of stage brings): 1. Infancy (upto 1 year) Basic Trust Vs. Mistrust (Result of neglect, deprivation of love etc) 2. Early Childhood (1 3yrs) Autonomy ( child views self as a person in his own right) Vs. Shame & doubt (feels inadequate, doubts self, curtails learning basic skills like walking, talking, wants to hide inadequacies etc)
3.
Play age (4 7yrs) Initiative (reality testing, imitates, lively imagination etc) vs. Guilt (lacks spontaniety, suspicions, infantile jealousy etc)
4.
School age (6 11 yrs) Industry (develops scholastic & social competencies, has sense of duties etc.) Inferiority (poor work habits, avoids strong competition, feels mediocracy etc)
5.
Adolescence (12 20yrs) Ego identity (role experimenter, ideological commitment etc) vs. Role confusion
6.
Young adulthood (20 24 yrs) Intimacy (capacity to commit self to others, attitude of care respect & responsibility towards another ) Vs. Isolation (avoids intimacy, feeling of social emptiness, seeks purely formal interpersonal relationships)
7. Middle adulthood (25- 65yrs) General activity (productive & creative, establishes & guides the next generation etc) Stagnation (unproductive, feeling of hopelessness & meaninglessness etc)
8.
Late adulthood (old age) Integrity (fully satisfied, death not feared, wisdom of old age comes into being) Vs. Despair (feels shortage of time, finds no meaning in life, has lost faith in self and others , wants 2nd chance of life-cycle, fears death, often depressed etc)
ATTITUDE
92
Cognition a description or belief in the way things are Affect emotional or feeling segment Behavior intention to behave in a particular manner
Personality - Attitude & Emotion 93
Cognition
A statement like my pay is less is a description The aspect of description or belief is the cognitive component of attitude An employees description of supervisor at work is example of Cognitive component
94
Affect
Cognitive component sets stage for Affective component This is the Emotional & Feeling segment of Attitude An employees description such as Im upset on how I was behaved with is a reflection of the same
95
Behavior
This is the intention to behave in a certain manner The behavior can be towards someone or some issue Behavioral component is little detached from the other two components, as it might get personally biased An eg. Im going to look for another job that pays better
96
Exhibit 3.1
Cognitive = Evaluation
My supervisor gave a promotion to my Co-worker who deserved it less than me
Affective = Feeling
I dislike my supervisor
Behavioral = Action
Id complain about my supervisor to anyone who would listen
97
98
Job Satisfaction it describes a positive feeling about a job, resulting from an evaluation of its characteristics Job Involvement this measures the degree people identify jobs performance to their own self worth Organizational Commitment a state where employee identifies with the job, organization and its goal and commits himself to it
Personality - Attitude & Emotion 99
JOB SATISFACTION
100
102
104
EXIT
Active & constructive attempt to improve conditions Suggest improvements Discuss problems Undertake union forms
VOICE
Destructive
Constructive
Passively allow conditions to worsen Chronic absenteeism or lateness Reduced effort Increased Error rate
NEGLECT
Patiently allow conditions to improve Speaking for organization against criticism Trusting the organization & its management to do right things
LOYALTY
Passive
106
Early 1930s & 1940s, an idea that happy workers were productive workers was drawn by researchers at Western Electrics In 1980s, research suggested that relationship between Job satisfaction & Job performance was not high More recently, a review of 300 studies says that relationship is now considered at a moderate high
Personality - Attitude & Emotion 107
Productive workers are likely to be happier as productivity leads to satisfaction If one does a good job, one intrinsically feels good about it Higher productivity should increase recognition, pay levels, likelihood of promotion
108
Global Concept?
People from different countries and from different cultures form judgments of job satisfaction For eg. Pay is positively, however relatively weakly, related to job satisfaction Even though different in cultures, the similar factor are responsible for the cause of Job satisfaction
Personality - Attitude & Emotion 109
111
112
EMOTIONS
BASIC EMOTIONS
Rene Descartes, identified six basic emotions-
Wonder Love Hatred Desire Joy Sadness All others composed of above emotions. Some philosophers Disagreed.
STRUCTURE OF MOODS
HIGH NEGATIVE EFFECT
Tense Nervou s Stresse d Upset Sad Depresse d Bored Content Serene Relaxed Fatigue d Calm Alert Excited Elated Happy
FUNCTIONS OF EMOTIONS
Rationality or Irrationality Serve as Motivators Serve a Purpose
PHILEAS GAGE CASE
Time of Day
EMOTIONAL LABOUR
Every job demands emotional labour. Emotional dissonance Felt Emotions vs. Displayed Emotions Surface Acting vs. Deep Acting
EMOTIONAL INTELLIGENCE
A Persons ability to
Be self aware Detect emotions in others Manage emotional cues & information
EMOTIONAL INTELLIGENCE
CASE FOR EI Intuitive appeal Predicts Criteria that matter Biologically Based CASE AGAINST EI Too vague a concept Cant be measured Validity is a suspect
CUSTOMER SERVICE
OB APPLICATIONS
CREATIVITY
LEADERSHIP
Leadership and management are two terms that are often confused. What is the difference between them? John Kotter of Harvard Business School argues that management is about coping with complexity. Leadership in contrast is about coping with change. Leadership is the ability to influence a group towards achievement of goals.
Meaning
Theories of leadership
TRAITS THEORY: The media has long been the believer in Traits Theory of Leadership- differentiating leaders from nonleaders by focusing on personal quality and characteristics. After numerous studies and analysis, about the best thing that could be said was that the following seven traits seemed to differentiate leaders from non-leaders: 1. Ambition and energy 2. The desire to lead 3. Honesty and integrity 4. Self-confidence 5. Intelligence 6. High self-monitoring 7. Job relevant knowledge
But the power of these traits to predict leadership continue to be modest. A breakthrough, of sort, came when researchers began organizing traits around The Big Five Personality framework. Based on latest findings, the two conclusions are possible: First, the traits can predict leadership Second, traits do better jobs at predicting the emergence of leaders and appearance of leaders than in actually distinguishing between effective and ineffective leaders.
Behavioral theories
The failure of early traits studies led researchers in the late 1940s through the 1960s to go in a different direction. They began looking at the behavior exhibited by specific leaders. They wondered if there was something different in the way effective leaders behave. We look at four different behavioral theories. Lets consider the practical implications of the behavioral approach. Traits theories assumed that leaders are born rather than made. On the other hand, if there were specific behaviors that identified leaders, than we could teach leadership.
Consideration is described as the extent to which a person is likely to have job relationships that are characterized by mutual trust, respect for employees ideas, and regard for their feelings. He or she shows concern for followers comfort, well-being, status and satisfaction. A leader high in consideration could be described as one who helps employees with personal problems, is friendly and approachable, and treats all employees as equal.
Scandinavian studies
Researchers in Sweden and Finland began reassessing whether there are only two dimensions that capture the essence of leadership behaviour. Their basic premises is that in a changing world, effective leaders would exhibit development-oriented behaviour. These leaders are those who value experimentation, seek new ideas, and generate and implement change.
CONTINGENCY THEORIES
Predicting leadership success is more complex than isolating a few traits or preferable behavior. The relationship style and effectiveness suggested that under condition a, style x would be appropriate, whereas style y will be more suitable to condition b, and style z for condition c. Several approaches to isolating key situational variables have proven much more successful than others, and, as a result, have gained wider recognition. We shall consider The Fiedler Model, Hersey Blanchards situational theory, leader member exchange theory and the path-goal theory.
The Fiedler contingency model proposes that effective group performance depends upon proper match between the leaders style and degree to which the situation gives control to the leader. Identifying Leadership Style Fiedler believes that the key factor in leadership success is the individuals basic leadership style. So he begins by trying to find out what that basic style is. Fielder created least preferred coworker(LPC) questionnaire for this purpose; it purports to measure whether a person is taskor relationship-oriented. Fiedler assumes that an individuals leadership style is fixed. This is important because it means that if the situation requires a task-oriented leader and a person in that leadership position is relationship-oriented, either the situation has to be modified or the leader replaced if optimal effectiveness is to be achieved.
Fiedler Model
Defining The Situation Fiedler has identified three contingency dimensions/variables that, he argues, defines the key situational factors that determine leadership effectiveness. These are leader member relations, task structure, and position power. They are defined as follows: 1.Leader-member relations: the degree to which members have confidence, trust, and respect in their leader. 2.Task structure: the degree to which job assignments are procedurized (i.e. structured or unstructured). 3.Position power: the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases. The next step in this model is to evaluate the situation in terms of these three contingency variables. Leadermember relation are either good or poor, task structure is either high or low, and position power is either strong or weak.
Fiedler stated better the leader member relation, the more highly structured the job, and stronger the position power, the more control the leader has. He says that task-oriented leaders perform better in situation of high and low control, while relationship-oriented leaders perform best in moderate control situations.
Paul Hersey and Ken Blanchard have developed a leadership model that has gained a strong following among management development specialists. Situational leadership is a contingency theory that focuses on the followers. Successful leadership is achieved by selecting the right leadership style, which Hersey and Blanchard argue is contingent on the level of the follower's readiness. SLT essentially views the leader-follower relationship as analogous to that between a parent and a child. Just as a parent needs to relinquish control as a child becomes more mature and responsible, so too should leaders. Hersey and Blanchard identify four specific leader behaviourfrom highly directive to highly laissez-faire. The most effective behaviour depends on a followers ability and motivation. So SLT says if a follower is unable and unwilling to do a task, the leader needs to give clear and specific directions; if followers are unable and willing, the leader needs to display high task orientation to compensate for the followers lack of ability and high relationship orientation to get the follower to buy into the leaders desires; if followers are able and unwilling, the leader needs to use a supportive and participative style; and if the employee is both able and willing, the leader doesnt need to do much.
High
RELATIONSHIP BEHAVIOUR
Supportive behaviour
leg a g tin
ng lli Te
Low Low
Turn over Provide responsibiliti specific es for instructions decisions and closely and supervised implementat performance ion Follower readiness
De
High
Subordinat eA
Path-Goal Theory
The theory that it is the leaders job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that the goals are compatible with the overall objectives of the group or organization The essence of path-goal theory is that its the leaders job to The Theory provide followers with the information, support, or other resources necessary for them to achieve their goals. The term path-goal is derived from the belief that effective leaders clarify the path to help their followers get from where they are to the achievements of their work goals and to make the journey along the path easier by reducing roadblocks. Leader Behaviour House identified four leadership behaviors. The directive leader lets followers know what is expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks. The supportive leader is friendly and shows concern for the needs of followers .The participative leader consults with followers and uses their suggestions before making a decisions. The achievement leader sets challenging goals and expects followers to perform at their highest level. In contrast to Fiedler, House assumes that leaders are flexible and that the same leader can display any or all of these behaviors depending on the situations.
Contingency Variables And Predictions Path-goal theory proposes two classes of situational or contingency variables that moderate the leadership behaviouroutcome relationshipthose in the environment that are outside the control of the employee (task structure, the formal authority system, and the work group) and those that are part of the personal characteristics of the employee (locus of control, experience, and perceived ability). The following are illustrations of predictions based on path-goal theory: Directive leadership leads to greater satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out. Supportive leadership results in high employee performance and satisfaction when employees are performing structured tasks. Directive leadership is likely to be perceived as redundant among employees with high perceived ability or with considerable experience. Employees with an internal locus of control will be more satisfied with a participative style. Achievement-oriented leadership will increase employees expectancies that effort will lead to high performance when tasks are ambiguously structured.
Charismatic Leadership
Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviour. The leader conveys, through words and action, a new set of values. Finally, the charismatic leader makes self-sacrifices and engages in unconventional behaviour.
4. 5.
Transformation Leadership
Transitional leaders: leaders who guide or motivate their followers in the direction of established goals by clarifying the role and task requirements. Transformational leaders: leaders who inspire followers to transcend their own self-interests and who are capable of having a profound and extraordinary effect on followers.
CHANGE
CHANGE MANAGEMENT
They always say time changes things, but you actually have to change them yourself
What is CHANGE?
To make or become different, give or begin to have a different form. Dissatisfaction with the old and belief in the new. Process of growth, decline and transformation within the organization. Movement from one state of being to another. It need not be voluntary, desired or planned. It need not be physical movement Movement in mindset.
CHANGE is.
Change + Manageme nt
Change management is a structured approach to the change in individuals, teams, organizations and societies that enables the transition from a current state to a desired future state. Change management is an aspect of management focusing on ensuring that the firm responds to the everdynamic environment in which it operates.
LAW OF CHANGE
Change has been there since humans existence. Change is necessary, challenging, continuous Today, the magnitude and pace of change is very high. More turbulence in the environment. Turbulent environment stresses on the importance of Managing Change.
Importance
Political Changes
Globalization
And more..
Changing customer preferences. Changing demographics. Organizational restructuring. Economic changes, social trends
Change can be conceived as: Change as continuous and intrinsic. Change as extrinsic and discontinuous. Change can be patterned and predictable, or can be complex and unpredictable
TRANSITION PROCESS
Organizational Change arises from:The development of new products. The entry of new competition. Changes in consumer tastes & preferences. Changes in the cultural, political, economic, legal and social framework. Changes in technology leading to technological obsolescence or new product opportunities.
External forces:
Contd.
Customer demand Globalization & Competition Cost of inputs Legislation New technology Ethics Political
Types of Change
Happened Change. Reactive Change. Anticipatory Change. Planned Change. Incremental Change. Operational change. Strategic change.
Contd.
Directional Change. Fundamental Change. Total Change. Transformational change. Revolutionary change. Recreation
Perspectives on Change
Contingency Perspective. Resource Dependence Perspective. Population-ecology Perspective. Institutional Perspective.
STRATEGIC CHANGES
Deals with broad, long-term and organization-wide issues. It is about moving to a future state that has been defined generally in terms of strategic vision and scope. It will cover the purpose and mission of the organization, its corporate philosophy. This overall definition leads to specification of competitive position and strategic goals. Strategic changes takes place within the context of external competitive, economic and social environment, and the organizations internal resources, capabilities culture, structure and system. Strategic change, however should not be treated simplistically as a linear process of getting from A to B which can be planned and executed as a logical sequence of events.
OPERATIONAL CHANGE
Operational changes relates to new system, procedure, structures or technology which will have an immediate effect on working arrangements within a part of the organization.
BARRIERS TO CHANGE
Organizational barriers to change
Structural inertia Existing power structures Resistance from work groups Failure of previous change initiatives
RESISTANCE TO CHANGE
Four basic reasons why change is resisted ( Kotter and Schlesinger)
Parochial self interest Individuals are more concerned with the implications for themselves
Misunderstanding
Communications problems , Inadequate information
CHANGE PROCESS
1. 2. 3. 4. 5.
Assemble a change management. Establish a new direction for the organization. Prepare the organization for change. Set-up change teams to implement change. Align structure, systems and resources to support change 6. Identify and remove roadblocks to change. 7. Absorb changes into the culture of the organization
Change Process
Organizational Change
Unfreezing
Changing
Refreezing
Status Quo
Driving Forces Time
2. Changing through cognitive restructuring: helping to see, judge, feel, react to things differently based on a new point of view obtained through a. Identifying with a new role model, mentor b. Scanning the environment for new, relevant information. 3. Refreezing : helping to integrate the new point of view into a. The total personality and self concept. b. Significant relationship.
CHANGE- MODEL
Kubler Rosss transition cycle (change model)
1. 2. 3. 4. 5. Denial Anger Bargaining Depression Acceptance
Beckhards model
According to Beckhard, a change programme should incorporate the following process: Setting goals and defining the future state or organizational conditions desired after the change; Diagnosing the present condition in relation to these goals. Defining the transition state activities and commitments required to meet the future state. Developing strategies and action plans for managing this transition in the light of an analysis of the factors likely to affect the introduction of change
Thurely described the following five approaches to manage change: 1. Directive : this is done by exercise of managerial power without consultation. 2. Bargained : this approach is to recognize that power is shared. 3. Hearts and mind : this is normative approach, it seeks commitment and shared vision but does not necessarily include involvement and participation. 4. Analytical : a theoretical approach to change the process using model such as those described above. 5. Action based : this recognizes that the way managers behave in practice bears little resemblance to the analytical, theoretical model.
Thurelys model
Incremental
Radical
Expected
Unexpected
Contd.
Focus on the good aspects of a new idea rather than on potential problems. Share risks. Build upon ideas. Do not make your judgment on ideas and suggestions too early. And again: let your employees participate in all phases of the change process. Build commitment!!!
CONFLICT MANAGEMENT
Definition Of Conflict
A Process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about
ORGANISATION
GROUP
INDIVIDUAL
Traditional View
Was consistent during 1930s & 1940s Conflict was viewed negatively Synonym with violence, destruction & irrationality All conflict was harmful and must be avoided
Traditional View....
It was a dysfunctional outcome of Poor Communication Lack of openness Lack of trust between people
It Encouraged Conflict Conflict act as a encouragement force Conflicts are A positive force in a group Absolutely necessary for a group to perform effectively
AREAS OF CONFLICT
Task conflict relate to the content and goal of the work Relationship conflict focus on interpersonal relationship Process conflict focus on how the work get done
Functional conflict increase the performance of a group Also known as constructive forms of conflict Dysfunctional group hinder the performance of a group Also known as Destructive forms of conflict
Stage IV Behavior
Stage V Outcomes
Perceived Conflict
Conflict handling Intentions Kilman model Competing Collaborating Avoiding Accommodating Compromising
Felt Conflict
Communication
The potential for conflict increases when either too little or too much communication takes place Increase in communication is functional up to a point, whereupon it is possible to overcommunicate, with a resultant increase in the potential for conflict
Structure
The larger the group and the more specialized its activities, the greater the likelihood of conflict Diversity of goals among groups is also a major source of conflict Reward systems are found to create conflict when one members gain is at anothers expense
Personal Variables
It includes : Personality Emotions Values
Stage 3: Intentions
Intentions Decisions to act in a given way Cooperativeness: Attempting to satisfy the other partys concerns Assertiveness: Attempting to satisfy ones own concerns
Accomodatin g
Avoiding
Intentions
Competing : A desire to satisfy ones interests, regardless of the impact on the other party to the conflict Collaborating : A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties
Intentions
Avoiding : The desire to withdraw from or suppress a conflict Accommodating : The willingness of one party in a conflict to place the opponents interests above his or her own Compromising : A situation in which each party to a conflict is willing to give up something
RANK 1 2 2 3 4 5 6 7 8
Tips for managers whose employees are having personality conflict 1. Follow company policies for diversity and anti-discrimination etc. 2. Investigate and document conflict. 3. If in appropriate take corrective action (e.g. feedback) 4. If necessary ,attempt informal dispute resolution. 5. Refer to human resource specialist in your organisation
Agreement : Try for equitable and fair agreements that last. Desired outcomes of Stronger Relationships: Build bridges of goodwill and trust for future. Learning : Greater self awareness and creative problem solving.
conflicts
Stage 4: Behavior
A dynamic process. Conflict becomes visible. Includes the statements,actions,and reactions. Stimulus quality separate from intentions.
Annihilatory conflict
Conflict-intensity continuum
overt efforts to destroy the Aggressive physical attacks Threats and Ultimatums Assertive verbal attack overt questioning or challenging
No Conflict
Conflict-Stimulation Techniques
Communication messages Bringing in outsiders Adding employees to a group Making structural changes to disrupt Ambiguous or threatening
Designating a critic
STAGE 5 : OUTCOMES
THE ACTION- REACTION INTERPLAY BETWEEN THE CONFLICTING PARTIES RESULTS IN CONSTRUCTIVE : CONSEQUENCES. 1. Conflicts is constructive when it improves the quality of decisions,
simulates creativity and innovation. 2. It encourages interest and curiosity among group members.
DYSFUNCTIONAL : 1. Uncontrolled opposition breeds discontent, which acts to dissolve common ties, and eventually leads to destruction of the group. 2. It reduces group effectiveness. 3. Retarding of communication 4. Reduction in group cohesiveness 5. It may potentially threaten the groups existence.
Negotiation
A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate of them. Approaches to Negotiation Distributive Bargaining Integrative Bargaining
Distributive Bargaining
Negotiation that seeks to divide up a fixed amount of resources; a win/lose situation. Based on fixed, opposing viewpoints (positions) and tends to result in compromise or no agreement at all.
Integrative Bargaining
Negotiation that seeks one or more settlements that can create a win/win situation. Potentially gives every party what they want.
Negotiation Process
Summary
Conflict management is responsibility of all. Understanding your style can assist in working with others. All styles have their place but Collabaration is best for most work situations.
Negotiation
Negotiation
A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.
Bargaining Strategies
Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation. Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win solution.
solving
Issues in Negotiation
The Role of Personality Traits in Negotiation
Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes.
Third-Party Negotiations
Mediator A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives. Arbitrator A third party to a negotiation who has the authority to dictate an agreement.
Consultant
An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis.
Organizational Culture
Definition : Basic assumptions, values and Norms drive Practices and behaviors. A common perception held by organizations members: a system of shared meaning: Robbins.
A pattern of basic assumptions
Invented, discovered, or developed by a group As it learns to cope With its problems of external adaptation and internal integration That has worked well enough To be considered valuable and therefore, to be taught to new members As the correct way to perceive, think, and feel in relation to those problems
Subcultures :
Mini culture within an organization, typically defined by the department, designation and geographical separations.
Characteristics Observed Behavioral regularities Norms Dominant Values Philosophy Rules Organizational Climate Innovation and Risk taking Attention to Detail Outcome Orientation Team Orientation Aggressiveness Stability
Functions
Boundary Defining Role Sense of Identity for Organization Members Facilitates Commitment to something larger than ones Individual self Interest Enhances Social System Stability Serves as a Sense Making & Control Mechanism that Guides & Shapes the Attitude & Behaviour of the Employees.
CULTURE
ORGANIZATION
strengt h
DESELECT
REINFORCING FOLKLORE
REWARDS & CONTROL SYSTEMS ARE METICULOUSLY REFINED TO REINFORCE BEHAVIOUR THAT IS DEEMED PIVOTAL TO SUCCESS IN THE MARKET PLACE
Strategic Focus
Adaptability Culture
Mission Culture
Clan Culture
Bureaucrat ic Culture
Internal
Learning Organization
Peter Senge popularized the term They have five characteristics in common: 1.Develop personal mastery 2.Use mental models 3.Build a shared vision 4. understand the power of team learning 5.Use systems thinking
PRESENCE OF TENSION:
- GAP BETWEEN VISION & REALITY - QUESTIONING/INQUIRY - CHALLENGING STATUS QUO - CRITICAL REFLECTION
LEARNING ORGANIZATION
CULTURE FACILITATING LEARNING: SYSTEMS THINKING:
-SHARED VISION - HOLISTIC THINKING - OPENNESS
- SUGGESTIONS
- TEAMWORK - EMPOWERMENT - EMPATHY
MANAGERS MUST:
Be receptive to new ideas. Overcome desire to Closely Control Operations. Teach their people to look at things differently. Develop systemic thinking. Develop creativity among personnel: - Personnel Flexibility. - Willingness to take risks/ accept failure. Develop a sense of personal efficacy.
Rewarding more than punishing Catch employees doing the right things. Apart from extrinsic awards like pay, focus on smaller awards like praise. Failing to praise can become a silent killer.
Spirituality: It recognizes that people have inner life that is nourished by meaning full work. Organization recognizes that people have Mind & Spirit. Seek to find meaning and purpose in work. Awareness of Spirituality helps to understand behavior of employees.
Reasons For Growing Interest in Spirituality: Increase in need for involvement and connection. To counter feeling of emptiness and lack of faith. Job demand makes workplace dominant in many peoples lives. Desire to integrate personal life to professional life. Material acquisition does not guarantee happiness.
Characteristics Of Spiritual Org.: Strong sense of purpose. Trust and Respect. Humanistic work practices. Toleration of employee expression.
Benefits Of Spirituality: Improved Productivity. Employees satisfaction. Increase creativity, Team Performance and Organisation Commitment. Example:- Southwest Airlines.
GLOBAL IMPLICATIONS
IMPACT OF CULTURE
EAST Custom of treating employees as a family Taking care of there needs and problems beyond workplace Setups a bond between people and company
WEST BOSS can reach out to subordinates for knowledge Subordinates can question the boss Follow analytical , critical style of interaction Team decision
STRATEGIC ALLIANCES
NEC Corp, Boeing ,Apple Computers Have strategic alliances , joint partnership with companies Organizations and companies joint projects AT&T,receive bonus S/W engineers from india work for silicon valley companies
ORGANIZATION STRUCTURES
Key Design Questions and Answers for Designing the Proper Organization Structure
The Key Question By
1. To what degree are articles subdivided into separate jobs? 2. On what basis will jobs be grouped together? 3. To whom do individuals and groups report? 4. How many individuals can a manager efficiently and effectively direct? 5. Where does decision-making authority lie? 6. To what degree will there be rules and regulations to direct employees and managers?
Span of Control The number of subordinates a manager can efficiently and effectively direct.
Concept: Concept: Wider spans of management increase Wider spans of management increase organizational efficiency. organizational efficiency. Narrow Span Drawbacks: Narrow Span Drawbacks: Expenseof additional layers of management. Expense of additional layers of management. Increasedcomplexity of vertical communication. Increased complexity of vertical communication. Encouragementof overly tight supervision and Encouragement of overly tight supervision and discouragement of employee autonomy. discouragement of employee autonomy.
Centralization
The degree to which decision making is concentrated at a single point in the organization. Decentralization The degree to which decision making is spread throughout the organization. Formalization The degree to which jobs within the organization are standardized.
The Bureaucracy
Strengths Weaknesses
Functional economies of scale Minimum duplication of personnel and equipment Enhanced communication Centralized decision making
Subunit conflicts with organizational goals Obsessive concern with rules and regulations Lack of employee
+ Gains the advantages of functional and product + Gains the advantages of functional and product
departmentalization while avoiding their departmentalization while avoiding their weaknesses. weaknesses.
interdependent activities. interdependent activities. Breaks down unity-of-command concept. Breaks down unity-of-command concept.
(Director)
(Dean)
Employee
Breaksdown departmental barriers. Breaks down departmental barriers. Decentralizesdecision making to the team level. Decentralizes decision making to the team level. Requiresemployees to be generalists as well as Requires employees to be generalists as well as specialists. specialists. Createsa flexible bureaucracy. Creates a flexible bureaucracy.
(Contd)
Virtual Organization A small, core organization that outsources its major business functions. Highly centralized with little or no departmentalization. Concepts: Concepts:
Advantage: Provides maximum flexibility while Advantage: Provides maximum flexibility while concentrating on what the organization does concentrating on what the organization does best. best. Disadvantage: Reduced control over key parts of Disadvantage: Reduced control over key parts of the business. the business.
STRATEGY
Innovation
Cost minimization
Imitation
STRESS
Definition of Stress
According to Fred Luthans : An adaptive response to an external situation that results in physical, psychological and/or behavioral deviations for organizational participants. According to Robbins : Stress is a dynamic condition in which an individual is confronted with an opportunity, constraint or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.
Sources of Stress
The sources of stress come from both, outside and inside of an organization, from the groups of employees and are influenced by and from employees themselves. The potential sources of stress can be listed as follows:
Extra-organizational Organizational Group Individual.
Extra-Organizational
Societal/technological change The family Relocation Economic and financial conditions Race, class and gender Local conditions
Organizational
Administrative policies and strategies. Organizational structure and design. Organizational processes. Working conditions.
Group Stressors
Lack of group cohesiveness. Lack of social support. Inter-personal and inter-group conflict.
Individual Stressors
Personality Life and career changes Life trauma
Effects of Stress
Stress is the wear and tear our bodies experience as we adjust to our continually changing environment. It has physical and emotional effects on us and creates positive or negative feelings. As a positive influence, stress can help compel us to perform an action which results in new awareness As a negative influence it can result in feeling of rejection, anger and depression.
Effects of stress can be categorized as: Mental (how the mind works) Physical (how the body works) Behavioral (the things we do) Cognitive (the way we think and concentrate)
Stress is a combination of responses in the body. Stress can be short-term (acute) or chronic, acute stress is the fight to flight response.
Management of Stress
There are three options:1.Prevention and control 2.Escapism 3.Adaption
STRESS
DYSFUNCTION AL COPING
DEFENSIVE COPING
DIRECT COPING
Dysfunctional Coping
Individuals might become alcoholic, overweight, chain-smokers, or drug addicts. They also run the risk of becoming accident prone. Individuals exhibit coronary diseaseprone behavior patterns.
Defensive Coping
It involves mental or physical escape from the stressful situation. Some common and important defense mechanisms are REPRESSION, REGRESSION, RATIONALIZATION, (cognitive reframing of ones perception all good sons will obey mom) DIRECT AGGRESSION, DISPLACEMENT.
Direct Coping
It involves self awareness in order to avoid the harmful and far reaching consequences of stress. The process involves introspection, identification of problem, determination of a solution by considering available alternatives and choosing an action accordingly.
Contd..
Job Design- it involves enriching job either by improving job content factors or by improving core job characteristics. Selection and Placement Sabbaticals
PowerIntroduction
Power has been described as the last dirty word. It is easier for most of us to talk about money than it is to talk about power. People who have it deny it, people who want it try not to appear to be seeking it, and those who are good at getting it are secretive about how they got it. Power is a natural process in any group or organization. As such, you need to know how its acquired and exercised if youre going to fully understand organizational behavior.
Contd..
Although you may have heard the phrase that power corrupts, and absolute power corrupts absolutely power is not always bad Its a reality of organizational life and its not going to go away. Moreover by learning how power works in organizations, you will be better able to use the knowledge to help you be a more effective manager.
Definition of Power
Power refers to a capacity that A has to influence the behavior of B, so that B acts in accordance with As wishes. This definition implies a potential that need not be actualized to be effective and a dependency relationship. Power may exist but not be used. It is, therefore, a capacity or potential. One can have power but not impose it.
Dependency
Dependency is Bs relationship to A when A possesses something that B requires. Probably the most important aspect of power is that it is a function of dependency. The greater Bs dependency on A, the greater As power in the importance that B places on the alternative(s) that A controls.
2. 3.
Sources of Power
Formal power- based on an individuals position in an organization. It can come from the ability to coerce or reward, from formal authority, or from control of information. Coercive power-it is dependent on fear. Reward power-compliance achieved based on the ability to distribute rewards that others view as valuable. Legitimate power- power received as a result of position in formal hierarchy of an organization. Information power-it comes from access to and control over information.
Contd
Personal power- it comes from an individuals unique characteristics. Expert power- it is influence based on special skills or knowledge. Referent power- it is influence based on possession by an individual of desirable resources or personal traits. Charismatic power-is an extension of referent power stemming from an individuals personality and interpersonal style.
Importance:
If no body wants what you have got, its not going to create dependency. To create dependency therefore ,the thing(s) you control must be perceived as being important.
Scarcity
If something is plentiful possession of it will not increase power. a resource needs to be perceived as scarce to create dependency. This can help to explain how low ranking members in an organization who have important knowledge not available to high ranking members gain power over the high ranking members. the scarcity dependency relationship can further be seen in the power of occupational categories.
Non Substitutability
The more that a resource has no viable substitutes, the more power, that control over that resource provides.
Power tactics
Power tactics are ways in which individuals translate power bases into specific actions. Seven tactical dimensions or strategies: 1. Reason. 2. Friendliness. 3. Coalition 4. Bargaining 5. Assertiveness 6. Higher authority 7. Sanctions.
Contd
The managers expectations of success guide his/her choice of tactics. When past experience indicates high probability of success, managers use simple request to gain compliance. When success is less practicable, managers are more tempted to use assertiveness and sanctions to achieve their objectives.
Political Behaviour
Definition: activities that are not required as a part of ones formal role in the organization, but that influence, or attempts to influence the distribution of advantages and disadvantages within the organization Legitimate political behavior: normal everyday politics Illegitimate political behavior: Extreme political behavior that violates the implied rules of the game.
Reality of Politics
Politics is a fact of life in organizations, people who ignore this do so at their own peril. But why you may wonder, must politics exist? Isn't it possible for an organization to be politics free? Its possible but most unlikely. Organizations are made of individuals and groups with different values goals an interest setting up the potential for conflict over resources. Resources in organizations are also limited, which often turns potential conflict into real conflict. Further more, whether true or not, gains by one individual or group are often perceived at the expense of others. These forces create a competition among members for the organizations limited resources.
Contd
May be the most important factor leading to politics within organizations is the realization that most of the facts that are used to allocate the limited resources are open to interpretation. what, for instance is good performance? What is an adequate improvement? Finally because most decisions have to be made in a climate of ambiguity-where facts are rarely fully objective ,and thus are open to interpretation-people within organizations will use whatever influence they can to taint the facts to support their goals and interests. That of course, creates the activities we call POLITICKING.
Organizational factors
Zero-sum reward practices Democratic decision making High performance pressure Self serving senior managers
Increased anxiety
Increased turnover
Reduced performance
Contd
In addition to the above, several interesting qualifiers have been noted: First, the politics-performance relationship appears to be moderated by an individuals understanding of the how's and whys of organizational politics. When both politics and understanding are high, performance is likely to increase because the individual will see politics as an opportunity Second, when politics is seen as a threat and consistently responded to with defensiveness, negative outcomes are almost sure to surface eventually. When people perceive politics as a threat rather than as an opportunity they often respond with Defensive behavior - reactive and protective behavior to avoid action, blame or change
Defensive Behavior
Defensive behavior are often associated with negative feelings towards the job and work environment. In the short run, employees may find that defensiveness protects their self interest. But in the long run, it wears them down. People who consistently rely on defensiveness find that, eventually, it is the only way they know how to behave. At that point, they lose the trust and the support of their piers, bosses, employees and clients.