BANKING UNIVERSITY OF HCMC

FACULTY OF BUSINESS ADMINISTRATION

ORGANIZATIONAL
BEHAVIOR
Major field: Management
Đặng Trương Thanh Nhàn. MBA
HCM City 2018
 LEARNING OBJECTIVES
1. Provide basic knowledge for students to analyze, explain and
predict human behavior and the effects of organizational
behavior while performing tasks in the organization. The study
on organizational behavior is conducted based on three levels:
the individual, the group and the organization.

2. Improve skills in managning and utilizing human resources

efficiently in the organization based on the study of
organizational behavior.
 CONTENTS
1. Overview of organizational behavior

2. Individual processes

3. Work motivation

4. Group processes

5. Managing organzational design, culture

and change

3
 REFERENCES

1. Stephen.P.Robins & Timothy A.Judge (2013).

Organizational Behavior (15ed). Pearson Education,
Prentice Hall.
2. Schermerhorn, Hunt, Osborn & Uhl-Bien (2010).
ORGANIZATIONAL BEHAVIOR 11th
 CHAPTER 5:

ORGANIZATIONAL DESIGN AND CHANGE

1-5
 CONTENTS OF CHAPTER 2
2.1. Demographic Differences
2.2. Ability
2.3. Characteristics
2.4. Value and Attitude
2.5. Perceptual Process
2.6. Organizational culture and change
2.6.1. Organizational culture
2.6.2. Organizational change

1-6
 Organizational context
Organizational
Culture

Organizational Organizational
Structure Behavior

Orgnizational
change

7
 Organizational culture
• Institutionalization: A Forerunner of Culture
• Organizational culture
– A common perception held by the organization’s members;
a system of shared meaning.
– Seven main characteristics:
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability
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 Do organizations have uniform
cultures?
•Culture is a descriptive term: it can act like formalization
•Dominant Culture
Expresses the core values that are shared by a majority of the organization’s
members.
•Subcultures
Minicultures within an organization, typically defined by department designations
and geographical separation.
•Core Values
The primary or dominant values that are accepted throughout the organization.
•Strong Culture
A culture in which the core values are intensely held and widely shared.

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 Culture’s functions
1. Defines the boundary between one organization and
others
2. Convey a sense of identity for its members
3. Facilitates the generation of commitment to something
larger than self-interest
4. Enhances the stability of the social system
5. Serves as a sense-making and control mechanism for
fitting employees in the organization

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 Culture as liability
• Barrier to change
Occurs when the shared values are not in
agreement with neccessary to change rapidly
Barrier to diversity
Strong cultures put considerable pressure on
employees to conform. This can embed
prevalent bias and prejudice
• Barrier to acquisitions and mergers
Most mergers fail due to cultural
incompatibility

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 How culture begins
• Starts from founders’ behaviors:
o Founders hire and keep only employees who think and feel the
same way they do.
o Founders indoctrinate and socialize these employees to their
way of thinking and feeling.
o The founders’ own behavior acts as a role model that
encourages employees to identify with them and thereby
internalize their beliefs, values, and assumptions.

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 Keeping culture alive
• Selection
o Concern with how well the candidates will
fit into the organization
o Provides information to candidates about
the organization
• Top management
o Senior executives help establish
behavioral norms that are adopted by the
organization
• Socialization
o The process that helps new employees
adapt to the organization’s culture
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 Stages in the Socialization Process
• Prearrival
o The period of learning in the socialization process that occurs
before a new employee joins the organization.
• Encounter
o The stage in the socialization process in which a new employee
sees what the organization is really like and confronts the
possibility that expectations and reality may diverge.
• Metamorphosis
o The stage in the socialization process in which a new employee
changes and adjusts to the work, work group, and organization

17-14
 Socialization programs
• Choose suitable alternative options:
o Formal versus informal
o Individual versus collective
o Fixed versus variable
o Serial versus random
o Investiture verson divestiture
• Socialization outcomes:
o Better performence
o Better commitment
o Lower revenue
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 How employees learn culture
• Stories

Anchor the present in the past, provide explanations and legitimacy for current practices

• Rituals

Repetitive sequences of activates that express and reinforce the values of the
organization

• Material symbols

Acceptable attire, office size, opulence of the office furnishings and executive perks that
convey to employees who is important in the organization.

• Language

Jargon and special ways of expressing oneself to indicate membership in the

organization để thể hiện bản thân của mình để biểu thị tư cách thành viên trong tổ chức
17-16
 Create an ethical organizational culture
• Characteristics of organizations that develop high ethical
standards
High tolerance for risk
Low to moderate in aggressiveness
Focus on means as well as outcomes
• Managerial practices promoting an ethical culture
Being a visible role model
Communicating ethical expectations
Providing ethical training
Rewarding ethical acts and punishing unethical ones
Providing protective mechanisms
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 Create a positive organizational culture
• Positve organizational culture
• Building on Employee Strengths
• The key point is explore, share and build the strengths of each
employee
• Rewarding More Than Punishing
• Praise and make employees do the right thing
• Emphasizing Vitality and Growth of the Employee
• Help employees learn and develop in their work and their careers
• Limitations of positive culture: Positive culture may not be suitable
for all organizations or each person in the organzations

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 Spiritual and Organizational culture
• Workplace Spirituality
The recognition that people have an inner life that
nourishes and is nourished by meaningful work that
takes place in the context of the community
NOT for implementing organizational religion
• People try to find the meaning and purpose of their
jobs.

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 Workplace spirituality
• As a counterbalance to the pressures and stress of a turbulent pace of
life and the lack of community many people feel and their increased
need for involvement and connection.
• Formalized religion hasn’t worked for many people.
• Job demands have made the workplace dominant in many people’s
lives, yet they continue to question the meaning of work.
• The desire to integrate personal life values with one’s professional life.
• An increasing number of people are finding that the pursuit of more
material acquisitions leaves them unfulfilled.

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Characteristics of workplace spirituality
• Concerned with helping employees develop and reach their
potentials
• Addressing problems created by work life conflicts.
• Four characteristics of workplace spirituality:
o Strong sense of purpose
o Trust and openness
o Employee empowerment
o Toleration of employee expression

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 Criticisms of spirituality
• What is the scientific foundation?

It is still pending: need more research

• Are spiritual organizations legitimate: do they have the right to impose spiritual
values on their employees?

Spirituality is not about Christianity or any religious values

It is an attempt to help employees find the meaning and values in their work
• Are spirituality and profits compatible

Initial evidence suggest that spirituality can result in greater productivity and
dramatically low turnover.

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 Global implications
• Organizational culture, while strong, cannot ignore local
culture
• Managers should be more culturally sensitive by:
Speaking slowly and in a low tone
Listening more
Avoiding religious and politics discussions

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 Culture as a intervening variable
• Employees form an overall subjective perception of the
organization based on these factors
• This opinion formed affects employee performance and
satisfaction.

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 Summary and managerial
implications
• Strong cultures are difficult for managers to change
• In short term, Strong cultures should be considered fixed
• Recuit new employees that fit organizational culture is
important for motivation, satisfaction, commitment and
turnover.
• Socialization into the corporate culture is vital
• As a manager, your actions as a role model to help create
cultural values of ethics, spirituality and positive culture

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 Organizational structures
• Organizational structures
• How job tasks are formally divided, grouped and coordinated
• Key elements:
o Work specialization
o Departmentalization
o Chain of command
o Span of control
o Centralization and decentralization
o Formalization

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 1. Work specialization
• The degree to which tasks in the organization are subdivided into
separate jobs
• Division of labor
o Makes efficient use of employee skills
o Increases employee skills through repetition
o Less between-job downtime increases productivity
o Specialized training is more efficient
o Allows use of specialized equipment
• Can yield higher economic and performance - but not always

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1. Work specialization

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 2. Departmentalization
• The basis by which jobs are grouped together.
• Grouping activities by:
o Function
o Product
o Geography
o Process
o Customer

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 3. Chain of command
• Authority
The rights inherent in a managerial
position to give orders and to expect the
orders to be obeyed.
• Chain of command
The unbroken line of authority that
extends from the top of the organization to
the lowest echelon and clarifies who
reports to whom.
• Unity of command
A subordinate should have only one
superior to whom he or she is directly
responsible. 16-30
 4. Span of control
• The number of subordinates a manager can effeciently and
effectively direct
Wider spans of management increase organizational
efficiency.
• Narrow span drawbacks:
Expense of additional layers of management
Increased complexity of vertical communication
Encouragement of overly tight supervision and
discouragement of employee autonomy

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5. Centralization and decentralization
• 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.

16-32
 6. Formalization
• The degree to which jobs within the organization are
standardized.
• High formalization
Employees rarely have the full right to decide how to
complete tasks
Many rules and regulations needed to follow
• Low formalization
Job behaviors are unstructured
Employees have the full right to decide
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 Common organization design: Simple
structure
• Simple structure
A structure characterized by a low degree of
departmentalization, wide spans of control, authority
centralized in a single person, and little formalization.

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Common organization design: Bureaucracy
• Bureaucracy
A structure of highly operating routine tasks achieved
through specialization, very formalized rules and
regulations, tasks that are grouped into functional
departments, centralized authority, narrow spans of
control, and decision making that follows the chain of
command.

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 Evaluating the bureaucracy
Strengths Weaknesses
• Functional economies of • Subunit conflicts with
scale organizational goals
• Minimum duplication of • Obsessive concern with
personnel and equipment rules and regulations
• Enhanced • Lack of employee
communication discretion to deal with
• Centralized decision problems
making

16-36
 Common organization design: Matrix
structure
Matrix structure
A structure that creates dual lines of authority and
combines functional and product
departmentalization
Key elements
Gains the advantages of functional and product
departmentalization while avoiding their
weaknesses
Facilitates coordination of complex and
interdependent activities
Breaks down unity-of-command concept

16-37
 New design options: Virtual
organization
o A small, core organization that
outsources its major business
functions
o Highly centralized with little or no
departmentalization
o Provides maximum flexibility
while concentrating on what the
organization does best
o Reduced control over key parts
of the business

16-38
 New design options: Boundaryless
organization
• An organization that seeks to eliminate the chain of
command, have limitless spans of control, and replace
departments with empowered teams
• T-form concepts
o Eliminate vertical (hierarchical) and horizontal
(departmental) internal boundaries
o Breakdown external barriers to customers and suppliers

16-39
 Four reasons why structures differ
Two absolute forms of structures:
Mechanistic Model
A structure characterized by extensive departmentalization, high
formalization, a limited information network, and centralization.
Organic Model
A structure that is flat, uses cross-hierarchical and cross-functional teams,
has low formalization, possesses a comprehensive information network,
and relies on participative decision making.

16-40
 Four reasons why structures differ
1. Strategy
• Innovation strategy
A strategy that emphasizes the introduction of major new products and
services
Organic structure is most fit
• Cost minimization strategy
A strategy that emphasizes tight cost controls, avoidance of
unnecessary innovation or marketing expenses, and price cutting
Mechanistic model is most fit
• Imitation Strategy
A strategy that seeks to move into new products or new markets only
after their viability has already been proven

16-41
 Four reasons why structures differ
2. Size
How the size of an organization affects its structure. As an
organization grows larger, it becomes more mechanistic
3. Technology
How an organization transfers its inputs into outputs
Routine technologies are associated with tall, departmentalized
structures and formalization in organizations
Nonroutine technologies need an organic model
4. Environment
Institutions or forces outside the organization that potentially
affect the organization’s performance
Three key elements: Capacity, Volatility and Complexity
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 Three dimentional model
• Capacity
The degree to which an environment Capacity
can support growth
• Volatility
The degree of instability in the
environement
Complexity Complexity
The degree of heterogeneity and
concentration among environmental
elements

16-43
 Organizational designs and employee
behavior
• Cannot generalize due to the employees’ individual differences
• Research findings
Work specialization contributes to higher employee productivity, but it
reduces job satisfaction.
The benefits of specialization have decreased rapidly as employees seek
more intrinsically rewarding jobs.
The effect of span of control on employee performance is contingent upon
individual differences and abilities, task structures, and other
organizational factors.
Participative decision making in decentralized organizations is positively
related to job satisfaction.
People seek and stay in the organizations that fit their needs.
16-44
 Global implications
• Mechanical culture and organzation
High power distanceculture can be fond of mechanical structure
• Borderless culture and organization
Can be a solution to region differences in global companies
Breaking the culture barrier, especially in strategic alliances
Telecommuting help blur organizational boundaries

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Summary and managerial
implications
o Structures affect both attitudes and behaviors of people
inside them
o Impact of technology
o Make it easier to change structure to fit the needs of
employees and organizations

17-46
Organizational change- Forces for change
•Nature of the workforce
More culture diversity
•Technology
Faster, cheaper, and more mobile
•Economic shocks
Mortgage crisis
•Competition
Global competitions
•Social trends
Retirement of Baby Boomers
•World politics
Economic war between U.S and China
Exhibit 19-1

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 Managing planned change
• Change
Making things different
• Planned change
Activities that are intentional and goal oriented
• Goals of planned change
Improving the ability of the organization to adapt to changes in its environment
Changing the behavior of individuals and groups in the organization
• Change agents
Persons who act as catalysts and assume the responsibility for managing
change activities

19-48
 Resistance to change
Resistance to change apparently is a natural and positive state
Forms of resistance to change:
• Overt and immediate
Voicing complaints, engaging in job actions
• Implicit and deferred
Loss of employee loyalty and motivation, increased errors or
mistakes, increased absenteeism
The delay covers the link between the origin and the reaction

19-49
 Source of resistance to change
• Individual
Habit, security, economic
factors, fear for the
unknown, selective
information processing

19-50
 Source of resistance to change
• Organization
Structural inertia, limited
focus of change, group
inertia, threat to expertise,
threat to established power
relationships and resource
allocations

19-51
 Tactics for dealing with resistance to change
• Education and communication
Display people who are affected by logic behind the change
• Participation
Participating in decision making reduces resistance
• Facilitation and support
Consultation, treatement and training new skills
• Negotiation
Be consistent and fair
• Manipulation and cooptation
Exchange messages to reach an agreement
• Selecting people who accept change
Hire people who like to change in the first place
• Coercion
Intimidating directly and create motivation 19-52
 The politics of change
• Impetus for change is likely to come from outside change
agents, new employees or managers slightly removed
from the main power structure.
• Internal change agents are most threatened by their loss
of status in the organization.
• Long time power holders tend to implement only
incremental change.
• The outcomes of power struggles in the organization will
determind the speed and quality of change.

19-53
 Lewin’s three-step change
• Unfreezing
Change efforts to overcome the pressures of both individual
resistance and group conformity
• Movement
Implement changes
• Refreezing
Stabilizing a change intervention by balancing driving and
restraining forces

19-54
 Lewin: Unfreezing the status quo
• Driving Forces
Forces that direct behavior
away from the status quo
• Restraining Forces
Forces that hinder
movement from the existing
equilibrium

19-55
 Kotter’s eight-step plan
• Are built from Lewin’s Model
• To implement changes:
1. Establish a sense of urgency
2. Form a coalition Unfreezing
3. Create a new vision
4. Communicate the vision
5. Empower others to act on the vision by removing barriers to change
6. Plan for, create, and reward short-term “wins”
Movement
7. Consolidate improvements, reassess changes, and make necessary adjustments
8. Reinforce the changes Refreezing

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 Action Research
A change process based on systematic collection of data and then
selection of a change action based on what the analyzed data
indicates
Process steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research benefits:
o Problem-focused rather than solution-centered
o Heavy employee involvement reduces resistance to change

19-57
 Organizational development
• Organizational Development (OD)
A collection of planned interventions, built on humanistic-
democratic values, that seeks to improve organizational
effectiveness and employee well-being
• OD Values
o Respect for people
o Trust and support
o Power equalization
o Confrontation
o Participation

19-58
 Six OD techniques
1. Sensitivity Training
Training groups (T-groups) that seek to change behavior through
unstructured group interaction.
Provides increased awareness of others and self.
Increases empathy with others, improves listening skills, greater
openness, and increased tolerance for others.
2. Survey Feedback Approach
The use of questionnaires to identify discrepancies among member
perceptions; discussion follows and remedies are suggested.
3. Process Consultation - PC
A consultant gives a client insights into what is going on around the
client, within the client, and between the client and other people;
identifies processes that need improvement.

19-59
4. Team building Six OD techniques
High interaction among team members to increase trust and openness.
5. Intergroup development
OD efforts to change the attitudes, stereotypes, and perceptions that
groups have of each other.
6. Appreciative inquiry
Seeks to identify the unique qualities and special strengths of an
organization, which can then be built on to improve performance.
o Discovery: recalling the strengths of the organization
o Dreaming: speculation on the future of the organization
o Design: finding a common vision
o Destiny: deciding how to fulfill the dream
19-60
 Create a change culture: Innovation
• Stimulating innovation
• Innovation: A new idea applied to initiating or improving a product,
process, or service
• Source of innovation:
o Structural variables: Organic structures
o Long-tenured management
o Slack resources
o Interunit communication
• Idea champion: Individuals actively support innovation

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Create a change culture: Learning
Learning organization
An organization that has developed the continuous capacity to adapt and change
Learning forms
oSingle-Loop: Errors are corrected by changing habits in the past
oDouble-Loop: Errors are corrected by changing habits
Characteristics
•Holds a shared vision
•Discards old ways of thinking
•Views organization as system of relationships
•Communicates openly
•Works together to achieve shared vision
Exhibit 19-6

19-62
 Creating learning organization
• Overcome fundamental problems in traditional organizations:
o Fragmentation
o Competition
o Reactiveness
• Managing a learning organization by:
o Establish a strategy
o Redesign the organization’s structure
o Flatten the organization’s culture and increase cross-functional
activities
o Reshape the organization’s culture
o Chấp nhận những rủi ro và những sai lầm thông minh
19-63
 Managing a learning organization

Establish a strategy

Manage Redesign the structure

learning

Reshape the culture

64
 Work stress
 Stress
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.
 Types of stress
• Challenge stress
Stress associated with workload, pressure to
complete tasks, and time urgency
• Hindrance Stressors
Stress that keeps you from reaching your goals,
such as red tape
Cause greater harm than challenge stressors
19-65
 Demands-Resources Model of Stress
• Demands
Responsibilities, pressures, obligations, and
uncertainties in the workplace
• Resources
Things within an individual’s control that can be used
to resolve demands
Adequate resources help reduce the stressful
nature of demands

19-66
Áp lực công việc

19-67
 Potentional Source of Stress
• Environmental factors
Economic uncertainties of the business cycle
Political uncertainties of political systems
Technological uncertainties of technical innovations
• Organizational factors
Task demands related to the job
Role demands of functioning in an organization
Interpersonal demands created by other employees
• Personal factors
Family and personal relationships
Economic problems from exceeding earning capacity
Personality problems arising from basic disposition
19-68
 Consequences of Stress
• Stressors are additive: high levels of stress can lead to the following
symptoms
• Physiological
Blood pressure, headaches, stroke
• Psychological
Dissatisfaction, tension, anxiety, irritability, boredom, and
procrastination
Greatest when roles are unclear in the presence of
conflicting demands
• Behavioral
Changes in job behaviors, increased smoking or drinking,
different eating habits, rapid speech, fidgeting, sleep
disorders 19-69
 Individual approaches Managning Stress
o Implementing time management
o Increasing physical exercise
o Relaxation training
o Expanding social support network
 Organizational approaches
o Improved personnel selection and job placement
o Training
o Use of realistic goal setting
o Redesigning of jobs
o Increased employee involvement
o Improved organizational communication
o Offering employee sabbaticals
o Establishment of corporate wellness programs 19-70
 Global implications
Organizational change
o Culture varies people’s belief in the possibility of change
o Time orientation will affect implementation of change
o Reliance on tradition can increase resistance to change
o Power distance can modify implementation methods
o Idea champions act differently in different cultures
o Stress
o Job conditions that cause stress vary across cultures
o Stress itself is bad for everyone
o Having friends and family can reduce stress

19-71
 Summary and
Managerial Implications
o Organizations and the individuals within them mustundergo
dynamic change
o Managers are change agents and modifiers of organizational
culture
o Stress can be good or bad for employees
o Despite possible improvements in job performance caused by
stress, such improvements come at the costof increased job
dissatisfaction

17-72