Organizational

Behaviour
HARAR TTI AND BUSINESS
COLLEGE
 Course content
Ch. 1: An overview of organizational behavior
Ch.2: Foundations of OB and learning in an
organization
Ch. 3: Foundation of group behavior
Ch. 4: Concepts of motivation and their application
Ch. 5: Management of organizational conflict
Ch. 6: Stress management
Ch. 7: Culture and diversity
Ch. 8: Power and politics in an organization
Ch. 9: Organizational design and structure
 Organizational
Behaviour
Chapter One
An Overview of
Organization Behavior
 Organizational Behavior
• Organization: is a consciously coordinated
social unit, made up of a group of people,
who work together on common goals on a
relatively continuous basis.

• Behavior: behavior refers to what people do

in the organization, how they perform,
and what their attitudes are.
– Organizational Behavior (OB) is the study of how people
interact within groups in an organizational setting. It
looks at the behavior of individuals, groups, and even
entire organizations.
The aim is to use this knowledge to make organizations
work more effectively.
– Organizational Behaviour is a field of study which has as
its primary interest the understanding of groups or
individuals within organizations and managing them to
work effectively.

– OB involves the study and application of knowledge about

how people act within organizations, as individuals and
within groups what “they think, feel and do in and around
organizations” and it investigates the impact that
individuals, groups and structures have on behaviour
within organizations.
 The Three Basic Units Of
Analysis In OB
OB; investigates how;
individuals, groups, and
structure affect and is
affected by behavior within
organizations.
The 3 level of
analysis
 Individuals,
 Groups,
 Structure.
The individual level includes the characteristics
and behaviors of employees as well as the
thought processes attributed to them, such as:

 Motivation,

 Perception,

 Personalities,

 Attitudes, and

 Values.
The group level analysis looks at the way people
interact. It includes:

 Team dynamics,

 Decisions,

 Power, and Politics

 Conflicts, and

 Leaderships.
At the organization level, we focus on how people
structure their working relations and how
organizations work together with their environment.

 Organizational Design,

 Technology and work processes,

 Jobs, and Work stress

 The organization's policies and practices

 The internal culture;

• There is a causal relationships of two
(dependent and independent) variables in
the Organization.

• Dependent variables are the key factors we

want to explain or predict; and

• Independent variables are the presumed

causes of some change in the dependent
variables.
The primary dependent The major determinants of
variables in OB are: dependent variables are
independent variables at
 Productivity,
 Individual,
 Absenteeism,
 Group, and
 Turnover, and
 Organizational Level.
 Job satisfaction.
• Individual Factors: Physical attributes, Personality, Age,
Perception, Gender Attitude, Marital status Values,
Number of dependants, Ability and experience

• Group Factors: Group dynamics, leadership styles, power,

politics, intergroup relations, levels of conflict.

• Organizational Organizational Design,

Factors:
technology and work processes, and jobs; the organization's
human resource policies and practices (that is, selection
processes, training programs); the internal culture; and
levels of work stress.
 O B and Managers
• The study of organizational behavior can
provide managers with the following practical
advantages:
• Organizational behavior provides managers:
o With a way of systematically thinking
about the behavior of people at work.
o Techniques for dealing with the
problems &
opportunities that commonly occur in a work setting
 Characteristics of OB
• Major characteristics of Organization behavior:
 Interdisciplinary. OB has
interdisciplinary orientation.
 Behavioral Science Foundation.
 Scientific Method Foundation. OB
had inherited the tradition of scientific method
in its investigations from its parent disciplines.
 Three Levels of Analysis. The OB is unique in
its approach to behavior because it encompasses
three levels of analysis
 Contingency Orientation. The term
contingency orientation reflects the need to consider
the situation before drawing conclusions about
behavior.
 There is a distinctly humanistic
orientation. People and their attitudes,
perceptions, learning capacities, feelings and
goals are of major importance.
 Development of Organizational
Behavior

• The major contributors to the theory

of
organizational behavior are :

 Classical schools of management theory,

 Behavioral theory,

 Contingency theory.
 1. Classical Schools of
Management

Classical Approach

Scientific
Bureacratic Administrative
management
Management management
(FredrichTaylor,G
(Max Weber) (Henry Fayol)
antt,Gilbreths)
 A. Scientific Management
• This branch arose because of the need
to increase:
 productivity and
 efficiency.
• Major contributors including :
 Frederick Taylor,
 Henry Gantt, and
 Frank and Lillian Gilbreth.
 B. Administrative School
• The emphasis is on the development of managerial
principles rather than work methods.

• The administrative principles approach focused

on the total organization, whereas
scientific management focused on the
productivity of the individual worker.

• Contributor; Henri Fayol; Management principles.

 C . Bureaucratic Management
Bureaucracy comes from the French
word bureaucratic, and it literally means to rule from a
desk or office.
 The chief advocate of the bureaucratic organization

was Max Weber (1846 – 1920). According to Weber,

bureaucracy is “the exercise of control on the basis of
knowledge”.
 The aim of bureaucracy is to achieve an organization’s

goals in the most efficient way possible.

 2. Behavioral Management
Theory;
• Emphasizes improving management through
the psychological makeup of people.

• The Behavioural approach refers to

management focused on the psychological
and social aspects of work.
• The behavioral approach is sometimes referred to
as the human resources approach because of
the focus on making optimum use of
workers in a positive way, such as making
jobs motivational

• The proponents

 George Elton Mayo; Hawthorne Studies

 Abraham Maslow; Need Hierarchy

 Douglas McGregor.
 3. Modern Approach
 Modern management theories further
indicate improvement, extension, and all
classical andof the
synthesis human relation approaches
the to
management

 Modern management must have the twin

primary objectives of productivity (classical
approach) and satisfaction (human relation
approach)
 Under the modern
management theory, we have the
following streams:-
 The Quantitative/
Management Science Approach(Using
mathematical models, statistics, and algorithms to make decisions )

 The Decision Theory Approach ( Making rational

choices through structured techniques.)

 The Systems Approach and (Viewing the organization

as a whole—an interconnected system.)

 The Contingency Approach Adapting

management practices based on specific situations.)
Disciplines that contributed to OB

• The significant ones are :

 Psychology,

 Sociology,

 Social psychology,

 Anthropology, and

 Political science.
• Psychology's contribution has been mainly at
the individual or micro level of analysis.

• However, the other disciplines have

contributed to the understanding of
macro concepts such as group
processes and organization.
 Organizational Behavior in the
21st Century
• The Realities of the New Workplace; Here
are some of the realities of the new workplace.
 Managing Workforce Diversity
 Responding to Globalization
 Changing workforce
 Consumer expectations are changing
 Changing organizations
 Organizations as a System
• A system is a series of functions or activities within an
organization that work together for the aim of
the organization.
• There are two types of system; those are open and close
system.
• Synergy: refers to instances when the sum of individual
contributions exceeds the simple summation of them.
Thank
You !!!
 Chapter Two
Foundations of OB and learning
in an organization

Foundation of
Individual Behavior
1. Perception
• Perception may be defined as the process
with
which individuals and interpret
detect environmental
stimuli. which individuals
• Perception
organize and
is a process
interpret their sensory
by
impressions in order to give meaning to their
environment.
• Perception is a way of forming impressions about
oneself, other people, and daily life experiences.
 Components of Perception
• There are three components are involved in
perception as listed below:
1. Perceiver : is who receive the stimuli
2. Target: refers to the thing to
be perceived
3. Situation: refers to context (e.g.
timing) the perceiver and the target meet
 Perceptual
Process
The perceptual
process is composed
of the process of:
Receiving,
Selecting,
Organizing,
Interpreting, and
Responding.
 Factors
Influence
Perception
A number of
factors operate
to shape and
sometimes
distort
perception.
Due to experience, Due to social setting,
expectation ….. interest ……
 Attribution Errors
In addition to these three influences, two errors have an
impact on internal versus external determination—the
fundamental attribution error and the self-serving bias.
Fundamental attribution Self-serving bias: refers to
error: is the tendency to the tendency to attribute
underestimate the influence own success to internal
of situational factors and to causation like ability, hard
overestimate the influence of work and self-worth and
personal factors in evaluating the failure, to external
someone else’s behavior. factors like chance or Luck.
For example, if someone cuts you off in traffic, you For instance, if you do well on a test, you might
might think they're a reckless driver (personal trait) attribute it to your intelligence (internal factor).
rather than considering they might be rushing to an However, if you do poorly, you might blame the
emergency (situational factor). difficulty of the test or distractions (external
factors).
 Common Errors While
Judging Others
• Selective perception: The tendency to
selectively interpret what one sees on
the basis of one’s interests, background,
experience, and attitudes. Imagine you're a fan of
a particular sports team. During a game, you might
notice and remember every good move your team
makes and dismiss or forget their mistakes.
 Common Errors While
Judging Others
Halo Effect: refers to judging an individual
based on single characteristics, such as
intellectual ability, sociability and appearance.
Consider a job interview scenario. If the interviewer finds the candidate
to be exceptionally well-dressed and articulate, they might form an
overall positive impression of the candidate's competence, friendliness,
and suitability for the job, even if these traits aren't necessarily related.
This single positive characteristic (appearance) creates a 'halo' effect,
influencing the interviewer's perception of other unrelated traits.
Both of these concepts show how our minds can
sometimes play tricks on us, shaping our perception
based on biases rather than objective reality.
• Projection: You assume a person based on your own
traits and not what he actually possesses.
• Contrast effect: Evaluation of a person’s
characteristics that is affected by comparisons with
other people recently encountered who rank
higher or lower on the same characteristics.
Eg: Performance evaluations: A manager might rate an employee's performance as lower than it actually is if they have recently
evaluated another employee who is a top performer.

• Stereotyping: Judging someone on the basis of one’s

perception of the group to which that person belongs.
(eg: assuming that all members of a certain race or religion are the same.)
• Prejudice: is an unfounded dislike of a person or group
based on their belonging to a particular stereotyped
group.
2. Attitude
• Attitudes are evaluative either
statements or objects,
people, or events.
favorable unfavorable about

• Attitudes are positive or feelings

negative
about objects, people, or events.
• The attitude is the evaluative statements or
judgments concerning objects, people,
or events.
 Characteristics of Attitudes
• An attitude is the predisposition of
the individual psychological structure of
beliefs.

• They tend to persist unless something is done

to change them.

• Attitudes can fall anywhere along a continuum

from very favorable to very unfavorable.
 Component of Attitude
There are three components of attitude.
2. Affective component: the
1. Cognitive
feelings, moods, and emotions
Component:
about some
The thoughts,
opinions, knowledge, specific person, idea, event, or object;
or information held which may be positive, negative or
by the individual neutral. E.g. “I am angry by my paid.
about a specific 3.Behavioral component: the
person, idea, event, predisposition to act on a favorable or
or object; E.g. “My unfavorable evaluation to a specific
pay is low” person, idea, event, or object. E.g. “I’m
going to leave the firm for better pays.”
 Source of
Attitude
Attitudes have many sources:

• Family, •
Society,
• Peer Previous
•
job
groups,
• Coaches, experiences
 Types of Attitude
Most of the research in OB has looked at three job related
attitudes:
1) Job satisfaction: refers to the feelings people have
toward their job.

2) Job involvement; is about how much someone feels

connected to their job, actively engages with it, and
considers their performance vital to their self-worth.

3) Organizational Commitment: is the emotional

attachment people have toward the company they work for.
3. Personality
• Personality is defined as the sum total of ways in
which an individual reacts to and interacts with
others.

• Personality encompasses the relatively stable

feelings, thoughts, and behavioral patterns a person
has.

• Personality is a stable set of characteristics and

tendencies that determine commonalities and
differences in people’s behavior.
 Personality Determinants

Determinant of Personality is
personality refers to determined by :
factors directly and Heredity,
indirectly influenced Environment
to individual (Culture)
behavior. Situation
 Major Personality Attributes
Influencing OB
Locus of control

Locus of Control 1. Internal locus of

control; Those who believe
Locus of control is the
that they control their
degree to which
destinies.
individuals believe that
they can control events 2. External locus of control;
who see their lives as being
affecting them.
controlled by outside forces.
 Machiavellianism
It is the degree to which an individual is pragmatic,
maintains emotional distance, and believes that ends can
justify means.
• High Mach scorers would • Low Mach scorers would
probably be suited for seem to be better
activities such as suited for:
• Selling, negotiating, & • Structured, routine, &
acquiring non-emotional
limited situations
resources.
 Self-esteem (SE)
Self-Esteem refers to the • High SEs
 Ability to succeed
degree to which individuals at work.
like or dislike themselves.  Take more risks in
job selection
Self-esteem is the extent to  More likely to
which an individual believes choose
unconventional jobs.
that he or she is a worthwhile
 Emphasize the
and deserving individual. positive when
confronted with failure.
Self-Monitoring Narcissism

is a personality trait describes a person who

that measures an has a very high sense of

individual’s ability to self-importance, requires

excessive admiration, has
adjust behavior to
a sense of entitlement, and
external, situational
is arrogant.
factors.
 Type A and Type B Personalities

Type As Type Bs
 Are always moving, walking,  Never suffer from a sense
and eating rapidly of time urgency.
 Feel impatient with the rate at  Feel no need to display
which most events take place or discuss their achievements.
 Strive to think or do two or  Play for fun and
more things at once relaxation, rather than to
 Cannot cope with leisure exhibit their superiority at
any cost
time
 Can relax without guilt
 Are obsessed with
Quantity
The Big Five Personality
 Matching Personality and Job
• Personality refers to individual differences in
characteristics pattern of thinking, feeling and behaving
• Vocational interest is an expression of one’s personality,
and that vocational interests could be conceptualized into
six typologies.
• They are Realistic, Investigative, Artistic, Social,
Enterprising and Conventional (called RIASEC in short).
4. Learning
Learning is a relatively permanent change
in knowledge or observable behavior that
results from practice or experience.
 First, learning involves change.

 Second, the change be relatively

must permanent.

 Third, the change is concerned with behavior.

 Finally, some form of experience is

necessary for learning.
 Theories of Learning
• How do we learn? Three theories have
been offered to explain the process by
which we acquire patterns of behavior:

 Classical conditioning,

 Operant conditioning,

 Social learning
1. Classical Conditioning:
Learning by Association
Classical conditioning is the process
by which individuals learn to link the
information from a neutral stimulus
to a stimulus that causes a response.
• In the classical conditioning process, an
unconditioned stimulus (environmental
event) brings out a natural response.
• Then a neutral environmental event, a
called
the
conditioned stimulus, is paired with
unconditioned stimulus that brings out the behavior.
• Eventually, the conditioned stimulus alone brings out
the behavior, which is called a conditional response.
• This theory developed by Pavlov.
• Three sequential stages:
 Stage One; he presented meat (unconditional
stimulus) to the dog. He noticed a great deal of salivation
(unconditional response).
 Stage Two; he only rang up the bell (neutral
stimulus), the dog had no salivation.
 Stage Three; Pavlov was to accompany the offering
of meat to the dog along with ringing up of bell.
• After doing this several times, Pavlov rang up only bell
(without offering of meat to the dog). This time the
dog salivated to the ringing up of bell alone.
 2. Operant Conditioning
• The concept was originated by B.F. Skinner. It is a type of
conditioning in which desired voluntary behaviors leads to
reward or prevent punishment which deals with Response
Stimulus (R-S) connection.

• Operant conditioning argues that behavior is a function of its

consequences. People learn to behave to get something they
want or avoid something they don't want.
 3. Social Learning
• This is a theory that states the learning of People
through observation and imitation of others in a
social context.

• For example, much of what we have learned comes from:

 Teachers, Peers, Watching models-parents,

Motion picture, Television performers, Bosses, and so
forth.
Methods of Shaping Behavior

• There are three ways in which

to shape behavior:
 Reinforcement,

 Punishment,

 Extinction
 Reinforcement
• Reinforcement; is a behavioral shaping method that
increases the frequency of a particular behavior that
it follows.
• There are two types of reinforcements which are:
Positive reinforcement; When a response is followed with
something pleasant, it is called positive reinforcement.
Negative reinforcements; refers to an increase in the
frequency of a behavior following removal of something that
is displeasing (e.g., an undesired situation).
 Punishment
• Punishment is an undesirable consequence of a
particular behavior. Punishment decreases
the frequency of an undesired behavior.
• E.g. A professor who takes off 10 points for each
day a paper is late is using punishment.

Extinction
• Extinction refers to decline in response rate
because of non-reinforcement.
Thank You!!!
Organizational
Behaviour
Chapter Three
Foundation of
Group Behavior
 Teams and Groups
Group: is a collection of individuals with

separate priorities united by their shared

interest.

Team: is a collection of interdependent

people

who join together with a shared goal.

• Not all groups are teams, all teams can be considered
groups.
 Similarities
Both have Norms,
Roles, Cohesiveness
and have similar
stages of formation.

Role ambiguity,
conflict and social
loafing are evident
in both of them.
 Types of Groups
• In general, groups within organizations fall
in two major categories:

Formal groups;

Informal groups;
 •A command group is formed
1. Formal
based on the organizational chart's

Groups formal connections, depicting

approved hierarchy and reporting
A designated work relationships.

group defined by • Task groups are created by

the organization’s organizational authorities to
structure is formal address specific tasks, involving
group. individuals with relevant expertise
or interests.
 Interest Groups: consist of
2. Informal persons who share common

Groups interests.
Friendship Groups: Those
Informal group is a group brought together because they
that is neither formally share one or more common
structured nor characteristics.
organizationally Reference groups: are the

determined; appears in groups, with which individuals

response to the need for identify and compare

themselves.
social contact.
Mella
Tutorials
 Types of Teams
• All teams exist to solve problems. Teams can be
classified in a number of ways based on their
duration and objectives:

1. Problem-solving: teams are formed on a

temporary basis to address a specific
problem that is confronting the organization.
2. Cross-Functional Teams: Comprising members from
different departments or areas, they collaborate on tasks
or projects.
3.Virtual Teams: Leveraging interactive
technology, these teams work together despite physical
separation, utilizing tools like email, instant messaging,
and video conferencing.
4. Ad Hoc Teams: These teams are formed temporarily to
address urgent or short-term needs within the
organization.
 Why do people form and join
groups?

1. The Satisfaction of Needs

• Security: By joining a group, individuals can reduce
the insecurity of standing alone.
• Status: a person’s relative rank, prestige, or standing
in a group.
• Self-Esteem: Self-esteem is a belief about one’s own
worth based on an overall self-evaluation.
2. Proximity and Attraction: Interpersonal interaction
can result in group formation. Two important facets of
interpersonal interaction are proximity and attraction.
3. Power: What cannot be achieved individually often
becomes possible through group action. There is power in
numbers.
4. Goal Achievement: There are times when it takes more
than one person to accomplish a particular task there is a
need to pool talents, knowledge, or power in order to get
a job completed.
Group Development (GD Stages)

There are five

stages in G D
Forming,
Storming,
Norming,
Performing,
Adjourning.
1. Forming: a primary concern
is the initial entry of members to a
group.
• It is characterized by much uncertainty
about the group’s purpose, structure,
and leadership.

• This stage is complete when members have

begun to think of themselves as part of
a group.
2. Storming: is a period of high emotionality
and tension among the group members.

• During this stage, hostility and

infighting
may occur, and group
experiences the many typically changes.
characterized by intra-group conflict. It

• It is marked by interpersonalis conflict as

members compete for leadership and other
roles.
3. Norming: sometimes called initial
integration,

• is the point at which the group really begins

to come together as a coordinated unit.

• It is characterized by close relationship

and cohesiveness. There is now a strong
sense of group identity and friendship.
4. Performing: sometimes called total
integration,

• marks the emergence of a

mature, organized, and well-functioning
group.

• The group structure at this point is

fully functional and accepted.
5. Adjourning: The group prepares
for its disbandment.

• Members shift their attention from task

attention to socio-emotional focus as
they realize that this relationship is ending.
Factors Affecting Group Behaviour

A. External Pressure
 Organization strategy, and Authority structures

 Formal Regulations, and Organizational resources

 Performance evaluation and reward system

 Organizational culture, and Physical work setting

B. Group Tasks; Tasks can be generalized as
either simple or complex.
• Complex tasks are ones that tend to be
novel or non-routine.
• Simple ones are routine and standardized.
• We would hypothesize that the more
complex the task, the more the group
will benefit from discussion among
members on alternative work
methods.
B. Group Member Resources; The resources that have
received the greatest amount of attention are: Abilities
and Personality characteristics.

C . Group Structure; The structural variables include:

Formal leadership, Roles, Norms, Group size,
Status, and Composition of the group.

1. Formal leadership; He/she is typically identified

by titles such as unit/dept manager, supervisor,
foreman, project leader, or the like.
2. Roles; mean a set of expected behavior patterns
attributed to someone occupying a given position.
 Role Identity: When there are certain attitudes
and actual behaviors consistent with a role.
 Role Perception: is one’s view of how one
is supposed to act in a given situation.
 Role Expectations: defined as how others
believe you should act in a given situation.
 Role Conflict: is a situation in which an individual
is confronted by divergent role expectations.
3. Norms; tell members what they ought or ought not
to do under certain circumstances;
• Performance norms: factors like how hard they
should work, how to get the job done, their
output level, appropriate communication
channels.
• Appearance norms: These factors include things like
appropriate dress, loyalty to the workgroup
or organization, etc.
• Social Arrangement Norms: This norm is basically
centered on how we should behave in social settings.
4. Group size: Workgroups can be found in sizes like
large and small.

The impact of size on a group’s performance depends

upon the type of task in which the group is engaged.

• Larger groups are more effective in fact-finding activities.

• Smaller groups are more effective in action-taking tasks.

• Social loafing occurs when individuals within a group hold

back what they contribute to the group’s effort and
performance.
5. Status; can be defined as a social position or rank
given to groups or group members by others. Status may
be formally imposed through organizational titles or
amenities.

6. Composition; Group demography is the degree to

which members of a group share common demographic
attributes such as age, sex, race, educational level or
length of service in the organization, and the impact of
these attributes on turnover”.
7. Group cohesiveness; it is the degree to which
members are attracted to each other and are motivated to
stay in the group.
• Members of cohesive groups have a strong desire to
stay in the group. Attractiveness is a key ingredient
in cohesiveness.
• Cohesiveness can be affected by such factors as
Time spent together, the severity of initiation/
difficulty of entry, group size, external threats, and
previous successes
 Implication for Performance
and Satisfaction
1. Performance; A number of structural factors
show a relationship to performance.

2. Satisfaction; High congruence between a boss

and employee about the perception of
the employee's job shows a significant
association with high employee satisfaction.
 Group Behavior
• Group Dynamics: The interaction that exists among

group members and between groups

that involves both intra-group and inter-group

behavior.
• Intra-group: is the interaction that occurs between group

members.
• Inter-group: occurs between two or more work

groups, social groups work together in an organization.

Thank
You !!!
 Organizational
Behaviour
Chapter Four
Motivation Concepts
and Application
 Motivation
• Motivation represents the forces acting on or
within a person that cause the person to behave
in a specific, goal-directed manner.

• Motivation is the willingness to exert high

levels of effort toward organizational goals,
conditioned by the effort’s ability to satisfy
some individual need.
 Features of Motivations
• There are several characteristics of motivation.

 Motivation is a psychological
phenomenon. It is the inner desire of an
individual to accomplish something more.

 Motivation is a continuous process.

Since need is a continuous phenomenon
if one need is satisfied the other need
emerges.
• Motivation is the result of the person’s thoughts
and expectations.

• Motivational needs are ordered

• It can be two types; Intrinsic vs Extrinsic

• Intrinsic motivation that comes from

within the person, based on
personal enjoyment of any task.
• Extrinsic motivation, which is based on
external rewards such as money, pay and
grades.
 Importance of Motivation
High level of performance: Highly motivated
workers have a sense of belonging for the
organization.
Low employee turnover and absenteeism. Turnover
& absenteeism is caused due to low level of motivation.
Organizational image: It will have a positive impact
on the employees and the image of the organization
will be improved.
 Theories of Motivation
Early Theories Contemporary Theories
They
1. Carrot and Stick 1. ERG theory represent
Approach 2. Equity Theory the current
state of the
2. The hierarchy of 3. Expectancy art in
needs theory, Theory explaining
employee
3. Theories X and 4. Goal setting motivation.
Y, and theory Not B/c of
4. The motivation- Time.
hygiene theory. Etc.
Early Theories of
Motivation
 • It comes from the old story that to
1. Carrot and
make a donkey move one must
Stick put a carrot in front of it and if it

Approach does not move beat it with stick

from behind.
This approach relates • Carrot - money in the form of pay or
the use of rewards and bonuses.
penalties in order to • Stick - fear such as fear of loss of job,

induce desired human loss of income, demotion or some

behavior. other penalty.

 2. Hierarchy of Needs Theory
• Abraham Maslow developed this theory in the 1940s, on
following assumptions.
 First, only unmet needs motivate.
 Second, people’s needs are arranged in order
of importance (hierarchy).
 Third, people will not be motivated to satisfy a
higher- level need unless the lower-level need(s) has
been at least minimally satisfied.
 Finally, Maslow assumed that people have
five classifications of needs.
 3. Theory X And Theory
Y (Douglas McGregor)

Theory X – Pessimistic

and negative

Theory Y- Adopts a

developmental approach/

modern/positive set of

assumptions, optimistic
 4. The Two-factor Theory
(Motivation-hygiene Theory)

It is developed by Hertzberg. Herzberg

concluded that job dissatisfaction and
satisfaction arise from two job sets
factors. separate

1. Hygiene Factors: Dissatisfiers/

Maintenance of

2. Motivators Factors: Satisfier

 Contemporary
Theories of Motivation
 1) E RG Theory
• Developed by Clayton Alderfer.
• ERG theory is a well-known simplification of
the hierarchy into three levels of
needs theory.
 Existence (physiological & safety needs),
 Relatedness (social), and
 Growth (esteem & self-actualization).
• Existence needs: are concerned with sustaining
human existence and survival.
• Relatedness needs: are concerned with relationships
to the social environment.
• Growth needs: are concerned with the development
of potential.
• ERG theory differs from Maslow’s theory in two basic ways.
 First, Alderfer broke needs down into
three categories.
 Second, ERG theory also contains a
frustration- regression dimension.
 2) Equity Theory
• Equity theory proposes that employees are motivated when
their perceived inputs equal outputs.
• Equity theory focuses on people’s feelings of how fairly they
have been treated in comparison with the treatment
received by others.
• A relevant other could be a coworker or group of
employees from the same or different organizations, or even
from a hypothetical situation.
• Motivation is based on the perception of one’s
own outcome/input ratio compared to that
of a similar individual or group, called a
referent.

• Equity; when employees perceive that the

ratios of their inputs (efforts) to their
outcomes (rewards) are equivalent to the
ratios of other similar employees.
 There are four referent comparisons we can use:

1. Self-inside: An employee’s experiences in a different

position inside his/her current organization.
2. Self-outside: An employee’s experiences in a situation
or position outside his/her current organization.
3. Other-inside: Another individual or group of
individuals inside the employee’s organization
4. Other-outside: Another individual or group of
individuals outside the employee’s organization
 3) Expectancy Theory
• It proposes that employees are motivated when they believe

they can accomplish the task and the rewards for doing so are

worth the effort.

• The theory, therefore, focuses on three relationships
 Efforts - Performance relationship: It is related to

the probability perceived by individual that exerting a

given amount of efforts will lead to performance

(Expectancy).
  Performance- Reward Relationship: The degree
to which the individual believes that performing at
a particular level will lead to attainment of
desired outcome (Instrumentality).
 Reward-personal goal relationship: The degree
to which an organizational reword will satisfy
individual needs and its attractiveness for the
individual (Valence).
• Expectancy Theory based on Victor Vroom’s formula:
Motivation = Expectancy x Valence.
 4. Goal Setting Theory
• Goal setting theory is proposed by Edwin
Locke.

• The basic premise of goal theory is that

people’s goals or intentions play
an important part in determining
behavior.

• A goal is “what an individual is trying to

accomplish”
• According to Locke, goal setting motivates in
four ways:

Goals direct attention.

Goals regulate effort.

Goals increase persistence.

 Goals encourage the

development of strategies and action
plans.
 Managerial Approaches for
Improving Motivation
• To motivate employees the
management uses several important ways
such as
 Rewards,
 Job Design,
 Self-leadership,
 Empowerment,
 Performance Feedback
 Alternative Work Arrangements:
1. Reward Systems: Organizations can offer
two
types of rewards: either Intrinsic rewards or
Extrinsic rewards
2. Job Design: Job design is the process of assigning
tasks to a job, including the interdependency of
those tasks with other jobs.
 Job Rotation:
 Job Enlargement:
 Job Enrichment:
3. Self-Leadership: It is the process of
influencing oneself to establish the self-direction,
and self-motivation needed to perform the task.

• The five elements of self-leadership are:

 Personal goal setting,

 Constructive thought patterns,

 Designing natural rewards,

 Self-monitoring, and

 Self-reinforcement.
4. Empowerment: Empowerment means creating conditions
in which employees perceive themselves as competent
and in control of performing meaningful tasks.

5. Performance Feedback: The degree to which

carrying out the work activities required by a job
results in the individual obtaining direct and clear
information about the effectiveness of his or her
performance.

6. Alternative Work Arrangements: Another approach to

motivation is to alter work arrangements with Flextime,
Job sharing, and Telecommuting.
Thank
You!!!
 Organizational
Behaviour
Chapter Five
Conflict Management
 Conflict
• The word conflict is defined here as: the behavior of an
individual or group which purposely sets out to block
or inhibit another individual or group from
achieving its goals.
• Conflict is processes that begin when one party
perceives that another party has negatively affected
or is about to negatively affect something that
the first party cares about.
 Types of Conflict

Conflict may be the pursuit Conflict may be classified

by two different persons or on the basis of its
goals that are incompatible,  Sources
so that gains by one person
 Consequence
must come about at the
expense of the other.  Organizational levels
 1. According to Sources

• Affective Conflict: This occurs when two interacting

social entities, while trying to solve a problem together,

become aware that their feelings and emotions

regarding some or all the issues are incompatible.

• Goal Conflict: This occurs when a preferred outcome

or an end-state of two social entities is inconsistent.

• Substantive Conflict: This occurs when two or
more organizational members disagree on their
task or content issues.
• Conflict of Interest: This is defined as an
inconsistency between two parties in their
preferences for the allocation of a scarce resource.
• Conflict of Values: This occurs when two social
entities differ in their values or ideologies on
certain issue.
 2. According to Level
• On this basis organizational conflict may be
classified as

 Intrapersonal,

 Interpersonal,

 Intra-group, and

 Intergroup.
 • There are three types
I. Intra- of
intrapersonal conflict:
personal A. Approach–approach conflict
= Both positive alternatives
Conflict B. Avoidance–

Intra-personal avoidance conflict =

conflicts arise within Both negative

individuals due to alternatives

frustration, goals, C. Approach–avoidance

conflict
and roles.
= Positive and negative
alternatives
II. Inter-personal Conflict: occurs
between two individuals or between an individual
and a group.

III. Intra-group Conflict: is the conflicts

that occur between group members.

IV. Inter-group Conflict: occurs between

two or more groups in an organization - work
groups, social groups, etc.
 3. According to Consequences
Functional or Dysfunctional

A. Functional Outcomes
• Generally, conflict is constructive when it:
 Stimulates creativity and innovation,
 Improves the quality of decisions,
 Encourages interest among group members,
 Provides the medium through which problems can
aired and tensions released,
 Fosters environment of self-evaluation and change.
 • Among the more undesirable
B. Dysfunctional
consequence are:
Outcomes:  Reduction in group cohesiveness
 Delay in decision making
Uncontrolled opposition which need to be done urgently
 Hostility and
breeds discontent, which
aggression
acts to dissolve
development,
commonalities, and  Increase employee
eventually leads to the turnover,
 Decrease employee
destruction of the group.
satisfaction,
 Increases inefficiencies of
work units.
 Conflicts Nature/ Perspective

• Three perspectives:

 Traditional view.

 Human Relations view,

 Interactionist view.
1. The Traditional/ Unitarist View; The early approach
to conflict assumed that conflict was bad. Conflict, then,
was to be avoided.

2.The Human Relations/ Pluralist View; Argued

that conflict was a natural occurrence in all groups
and organizations and they advocated acceptance of
conflict.

3. The Interactionist/ Radicalist View; The interactions

approach encourages conflict on the grounds.
Cause of Conflict in Organizations

1.Competition 6. Personality Clashes

for resources 7.Differences in
2. Task Value Sets
interdependenc
e 8. Perceptual
Differences
3. Jurisdictional
ambiguity 9. Work Flow
Relationship
4. Status
struggles:
5. Organizational
 The Conflict Process
(Stages of Conflict)
• The conflict process can be thought of
as progressing through five stages:
 Potential opposition,

 Cognition and personalization,

 Intention,

 Behavior,

 Outcomes.
 Stage I: Potential Opposition or
Incompatibility
• The first step in the conflict process • Three general
is the presence of conditions that categories:
create opportunities for conflict to
 Communication,
arise.
• They need not lead directly to  Structure, and

conflict, but one of these conditions 

is necessary if conflict is to arise.
Personal
variables.
 Stage II: Cognition and
Personalization

• The antecedent conditions can lead to conflict only

when one or more of the parties are affected
by, and cognizant of, the conflict.

• However, because a conflict is perceived does not

mean it is personalized. You may be aware that you
and a co-worker are in disagreement.
• It is at the level where conflict is felt, when
individuals become emotionally involved, that
parties experience anxiety, tension, frustration, or
hostility.
• Perceived conflict: is Awareness by one or more
parties of the existence of conditions that
create opportunity for conflict to arise. and
• Felt conflict: is Emotional involvement in a conflict
that creates anxiety, tenseness,
frustration, or hostility.
 Stage III: Intentions
• Intentions intervene between people’s
perceptions and emotions and their overt
behavior.

• They are decisions to act in a given way.

• Using two dimensions cooperativeness (the degree to
which one party attempts to satisfy the other party’s
concerns) and assertiveness (the degree to which one
party attempts to satisfy his or her own concerns) we
can identify five conflict-handling intentions:

Competing (assertive and uncooperative),

Collaborating (assertive and cooperative),
Avoiding (unassertive and uncooperative),
Accommodating (unassertive and cooperative), and
Compromising (midrange on both assertive and
cooperative).
Avoidance; The avoiding style is uncooperative and unassertive. People
exhibiting this style seek to avoid conflict altogether by denying that it is
there.
Accommodation; The accommodating style is cooperative and
unassertive. In this style, the person gives in to what the other side wants,
even if it means giving up one’s personal goals.
Compromise; is a middle-ground style, in which individuals have some
desire to express their own concerns and get their way but still respect the
other person’s goals. In a compromise, each person sacrifices something
valuable to them.
Competition; People exhibiting a competing style want to reach their goal
or get their solution adopted regardless of what others say or how they feel.
Collaboration; The collaborating style is high on both assertiveness and
cooperation. The objective is to find a win–win solution.
 Stage IV: Behavior
• When a member engages in action that
frustrates the attainment of another's goals or
prevents the furthering of the other's interests.

• Overt conflict covers a full range of behaviors,

from subtle, indirect, and highly controlled
forms of interference to direct, aggressive,
violent, and uncontrolled struggle.
• Stage IV is also most conflict-handling
where behaviors are
initiated.
Stage V: Outcomes
• The interplay between the overt conflict behavior
and conflict-handling behaviors results
in consequences.

• Functional Outcomes and Dysfunctional

Outcomes.
Conflict Management Strategies

• A viable strategy for conflict management

begins with an analysis of the conflict
situation and strategy options.

A) Analysis of Conflict Situation;

Managers can analyze a conflict situation by
identifying the following:
• Conflicting parties: The conflict may arise between
individuals, groups, or departments.

• Source of conflict: The conflict may arise from

factors such as differences in value sets,
perception differences, scarcity of
resources, workflow relationship, etc.

• Severity of conflict: The situation may be at a stage

where the manager must deal with it immediately; or
the conflict may be at a moderate level of intensity.
B) Conflict Resolution; Conflict Resolution
Techniques
• Problem solving: Interested parties confront the issue
and cooperatively identify the problem, generate
and weigh alternate solutions and select a solution.

• Super ordinate goal: It’s a technique used to create a

shared goal that cannot be attained without the
cooperation of each of the conflicting parties.
• Expansion of Resources: When a conflict is
caused by the scarcity of a resource – say, funding,
Promotions, and desirable work or working
conditions, etc. the expansion of resource can
create a win-win Situation. Unfortunately, it is often
not possible in practice.

• Avoidance: This strategy calls for a party to

withdraw or ignore the conflict.
• Smoothing: an obliging person neglects his/her own
concern to satisfy the concern of the other party. This
strategy involves playing down differences while
emphasizing commonalties
• Compromise: In this strategy, the parties reach a mutually
acceptable solution in which each gets only part of what he
or she wanted.
• Altering the Human Variable: This strategy calls for using
the behavioral change techniques such as human resources
training to alter attitudes and behaviors that cause conflict.
• Altering the Structural Conflict is
Variable:
resolved through changing the formal
organizational Structure through job redesign,
transfers, etc.

• Resolving conflict through negotiation or third-

party intervention: Although the conflict
handling styles just discussed can be used for
all types of conflict, they primarily targets
interpersonal conflict.
• Briefly, there are three types of third- party interventions.

 Consultation- This is the process where

mandated representatives of group in a conflict
situation meet together in order to resolve their
differences and to reach agreement.

 Mediation- A trusted third party facilitates

the negotiating process and suggests alternatives.

 Arbitration: The arbitrator is delegated the

authority to render a judgment or otherwise resolve the
dispute.
Thank You!!!
 Organizational
Behaviour
Chapter Six

Stress Management
 Stress
Stress is a dynamic condition in which an
individual is confronted with an opportunity,
demand, or resource related to what the
individual desires and for which the outcome
is perceived to be both uncertain and
important.
• Stress is your body’s physiological and behavioral
response to the demands in your environment. Stress
must be understood as a state of tension experienced
by individuals facing extraordinary demands,
constraints, or opportunities.

• Stress is a highly personal experience influenced by

an individual’s personality, abilities, and
perceptions; what is stressful for one person might not
be stressful for another.
• Three key factors determine whether an experience
is likely to result in stress. These factors
are importance, uncertainty, and duration.

 Importance relates to how significant the event

is to the individual.

 Uncertainty refers to a lack of clarity about

what will happen.

 Finally, duration refers how long the

stressful situation exists.
• The study of stress is important for several reasons:
• Stress can have damaging psychological
and physiological effects
• Stress is a major cause of employee
absenteeism and turnover..
• A stressed employee can affect the safety of
other workers or even the public.
• Stress represents a significant cost to organizations.
 Types of Stress
• Eustress: is the positive or “good” stress
that happens during pleasant situations.
It may surprise you, but certain
stressors can lead to positive
outcomes.

• Examples include the excitement of buying a

new home, getting married, or the
feeling you get from a good workout.
• Distress: is the negative or “bad” stress that occurs
when you perceive stress as dangerous,
difficult, unfair, or painful.
• Examples include the loss of a job, death of a loved one,
long-term illness, serious injury, divorce, and depression.

• Acute stress: Acute stress is short-term stress. It can

be Eustress or Distress.
• An example of acute stress is presenting in front of a group
of people
• Chronic stress: Chronic stress lasts for longer
periods of time. This type of stress is due to significant
events, yet also occurs when little stressors
accumulate and you are unable to bounce back from
them.

• Examples of chronic stress include long-term illness,

downsizing, or reorganizing at your workplace, and
long- term marital troubles.
 Sources/ Causes of Stress
• Things that cause stress are
called “stressors.

• Three sets of factors causes stress are-

 Environmental,

 Organizational,

 Individual
 1. Environmental Factors
A.Economic uncertainties: Changes in
the business cycle create economic uncertainties.

B.Political uncertainties: instability of

politics in ones country environment may lead to
anxiety.

C. Technological uncertainty: New innovations

can make an employee's skills and experience
obsolete in a very short period of time. Etc.
 2. Organizational Factors
• Numerous factors within the organization can cause stress. We
have categorized these factors around those demands

 Task demands are factors related to a person's job.

 Interpersonal demands: are pressures created by

other employees. Lack of social support from colleagues and
poor interpersonal relationships can cause considerable
stress, especially among employees with a high social need.
Role demands: relate to pressures placed on if person

as a function of the particular role he or she plays in

the organization.
 Role overload is' experienced when the employee
is expected to do more than time permits.
 Role conflicts create expectations that may be hard
to reconcile or satisfy
 Role ambiguity is created when role expectations
are not clearly understood and the employee is not
sure what he or she is to do.
• Organization structure: Excessive rules and lack of
participation in decisions that affect an employee are
examples of structural variables that might the potential
sources of stress.
• Organizational leadership: represents the managerial
style of the organization's senior executives. Some thief
executive officers create a culture characterized by tension,
fear, and anxiety.
• Organization’s life stag: Organizations go through a cycle.
They're established, grow, mature, and decline. The
establishment and decline stages are particularly stressful.
 3. Individual Factors
• Personal factors that can create stress include
• Family issues: People hold family and
personal relationships, marital difficulties, the
breaking off of a relationship, and discipline
troubles with children are examples of
relationship problems that create stress for
employees.
• Economic problems: created by individuals over
extending their financial resources are another set of
personal troubles that can create stress for employees
and distract their attention from their work.

• Personality: The achievement orientation,

impatience, and perfectionism of individuals with
Type A personalities, for example, often create stress
for them in work settings that others find relatively
stress-free.
 Consequences of Stress
• The effects of stress are many and varied.

• These can the summarized under

three general categories:

• Physiological,

• Psychological, and

• Behavioral symptom.
 Physiological Psychological
Symptoms Symptoms
 Changes In Metabolism, Anxiety

 Increase Heart, Irritability,

Breathing Rates, and Blood

Boredom, and
Pressure,
Procrastination.
 Bring On Headaches,

 Heart Attacks.
 Behavioral Symptoms:
behaviorally related stress symptoms
include changes in
• Productivity,

• Absenteeism, and turnover,

• Changes in eating habits,

• Increased smoking or consumption of alcohol,

• Rapid speech,

• Fidgeting,

• Sleep disorders.
 Moderate Factors
• These are factors that moderate • At least five variables have
the level of stress been found to be
individuals will feel. And relevant moderators
these are related with  Perceptions,
individual differences.  Job experience,
• Individual Differences: What  Social support,
is it that differentiates people  Locus of control,
in terms of their ability to  Hostility.
handle stress?
 Stress Management Strategies
Organizational and Individual Level.

A. Set goals
1. Organizational
B. Redesigning jobs
Approaches; C. Giving identified roles:

Organizations can D. Communication

E. Offer wellness programs
manage stress by
F. Give Employees Autonomy
doing the following
G. Use Telecommuting
things.
F. Flexible work hours
 2. Individual Approaches;

At the individual Helpful practices include

level, stress
 Plan your life
management
 Developing social support
usually focuses
 Physical Fitness
on becoming
more able to  Time Management

cope with stress.  Live a simple Life

 Implications for Performance
and Satisfaction
• Significant amount of research has investigated the stress-
performance relationship.

• The evidence indicates that stress can be either a positive

or a negative influence on employee performance.

• For many people, low to moderate amounts of stress

enable them to perform their jobs better, by
increasing their work intensity, alertness, and ability to
react.
• However, a high level of stress, or even a moderate
level sustained over a long period of time, eventually
takes its toll and performance declines.

• The impact of stress on satisfaction is far more

straightforward.

• Job-related tension tends to decrease general job

satisfaction. "Even though low to moderate
levels of stress may improve job
performance, employees find stress
dissatisfying.
Thank
You!!!
Organizational
Behaviour
Chapter Seven
Culture and
Diversity
 Culture and Cultural Diversity

• Culture refers to values, beliefs, and

customs that exist in a society.

• Culture is also the total way of life and

thinking patterns that are passed
from generations to generation.

• Diversity is Visible and non-

visible
differences.
Six core dimensions of diversity
exist:
 Age,

 Ethnicity,

 Gender,

 Physical Attributes,

 Race,

 Sexual/ Affectional Orientation.

 Characteristics of Culture
• Inclusive: it includes so many elements like
belief, custom, norm, value etc.

• Prescriptive: Culture prescribes the kinds of

behavior considered acceptable in a society.

• Socially shared: It must be shared by members

of a society, thus acting to reinforce culture’s
prescriptive nature.
• Facilitates communication: Thus, within a given group, culture

makes it easier for people to communicate with one another. Yet

culture may also impede communication across groups due to a

lack of shared common cultural values.

• Learned: Culture is not inherited genetically it must be learned

and acquired.
 Socialization or enculturation: occurs when a

person absorbs or learns the culture in which he or she is

raised.
 Acculturation: if a person learns the culture of a

society other than the one in which he or she was raised

• Subjective: People in different cultures often have
different ideas about the same object.

• Enduring: Because culture is shared and passed down

from generation to generation, it is relatively stable
and somewhat permanent.

• Cumulative: Culture is based on hundreds or even

thousands of years of accumulated circumstances.

• Dynamic: Culture is constantly changing; it adapts

itself to new situations and new sources of knowledge.
 Cultural Diversity
• Cultural diversity refers to the difference in culture. To work
well with people from different cultures, you must
first understand your own culture.
• Knowing your own culture will help guard you against two
problems that frequently arise in international dealings.
 Parochialism: assuming that the ways of your culture
are the only ways of doing things.
 Ethnocentrism: assuming that the ways of your
culture are the best ways of doing things.
Four dimensions of culture influence
employee

1. Individualism-Collectivism

2. Power Distance

3. Uncertainty Avoidance

4. Masculinity–Femininity
 1. Individualism-Collectivism

• Individualistic cultures are cultures in which

people define themselves as an individual and
form looser ties with their groups.
• These cultures value
 Autonomy,
 Independence of the person,
 Self-reliance,
 Creativity.
• In collectivistic cultures, people define themselves
as part of a group. Collectivistic societies
emphasize conformity to the group.

• The Japanese saying “the nail that sticks up gets

hammered down” illustrates that being
different from the group is undesirable.

• Collectivist cultures may have a greater preference

for team-based rewards as opposed to
individual- based rewards.
 2. Power Distance

• Power distance refers to the degree to

which the society views an
unequal distribution of power as
acceptable.

• In low power distance cultures,

egalitarianism is the norm.
In high power distance cultures,

 People occupying more

powerful positions viewed as more
powerful and deserving of a higher level
of respect.

 Employees are unlikely to question

the power and authority of their manager,

 Managers used to an authoritarian style

 3. Uncertainty Avoidance
• Uncertainty avoidance refers to the degree
to which people feel threatened
by ambiguous, risky, or unstructured
situations.

• Companies operating in high uncertainty

avoidance cultures also tend to avoid
risky endeavors such as entering foreign
target markets unless the target market is very
large.
Cultures high in uncertainty avoidance:

 Prefer predictable situations and

have low tolerance for ambiguity.

 Employees expect a clear set

of instructions and clarity in
expectations.

 Prefer to avoid risky situations

and attempt to reduce uncertainty.
 4. Masculinity–Femininity
• Masculine cultures are cultures that value
achievement, competitiveness, and acquisition
of money and other material objects.

• Masculine cultures are also characterized by

 Separation of gender roles.

 Men are more likely to be assertive

and competitive compared to women.
• Feminine cultures are cultures that value
maintaining good relationships, caring for the
weak, and emphasizing quality of life.

• In cultures high in femininity such as Norway

and Sweden, work arrangements such as
telecommuting seem to be more popular
compared to cultures higher in masculinity
like Italy and the united kingdom.
 Managing Cultural Diversity

• What can organizations do to manage cultural

diversity?
 Help employees build cultural
intelligence
 Avoid ethnocentrism
 Listen to locals
 Recognize that culture changes
 Do not always assume that culture is
the problem
 Concepts of Organizational
Culture
• Organizational culture is the shared social
knowledge within an organization regarding
the rules, norms, and values that shape the
attitudes and behaviors of its employees.
Seven primary characteristics seem to capture the
essence of an organization’s culture:
• Innovation and risk taking: The degree to which
employees are encouraged to be innovative and
to take risks.
• Outcome orientation: The degree to which
management focuses on results or outcomes rather
than on the techniques and processes used to achieve
them.

• People orientation: The degrees to which

management decisions take into account the
effects of outcomes on people in the
organization.

• Team orientation: The degree to which work is

organized around teams rather than individuals.
• Aggressiveness: The degree to which employees
are aggressive and competitive rather
than easygoing.

• Stability: The degree to which organizational

decisions and actions emphasize maintaining
the status quo in contrast to growth.

• Attention to detail: is the degree to

employees are which to
expected
analysis, and attention to detail exhibit
precision,
Organizational Culture Components

• There are three major components to

any organization’s culture:

 Observable artifacts,

 Espoused values, and

 Basic underlying assumptions.

1. Observable artifacts: Artifacts are the visible
and tangible aspects of an organization that people
hear, see or feel.

• There are six major types of artifacts:

 Symbols,  Stories,

 Physical 

Rituals, structures, 

Ceremonies
2. Espoused values: are the beliefs, philosophies, and
norms that a company explicitly states. Espoused values can
range from published documents, such as a company’s
vision or mission statement, to verbal statements made to
employees by executives and managers

3. Basic underlying assumptions: are the taken-

for granted beliefs and philosophies that are so ingrained
those employees simply act on them rather than questioning
the validity of their behavior in a given situation.
 Function of Organizational Culture

1. It has a boundary-defining role

2. It conveys a sense of identity for organization
members.
3. Culture facilitates the generation of
commitment
4. It enhances social system stability.
5. Culture serves as a sense making and
control mechanism that guides and
shapes the attitudes and behavior of
employees.
Types of Organizational Culture
• The vertical axis reflects the relative
control orientation of an organization, ranging from
 Stable to Flexible.
• The horizontal axis reflects the relative focus
of attention of an organization, ranging from
 Internal functioning to External functioning.
• The extreme corners of the four quadrants represent
four pure types of organizational culture:
 Bureaucratic, Clan, Entrepreneurial, and Market.
 A. Bureaucratic Culture
• An organization that emphasizes rules,
procedures, policies, of command,
decision making has aand
chain bureaucratic culture.
centralized

B. Clan Culture
• Tradition, loyalty, personal commitment, extensive
socialization, teamwork, self-management, and
social influence are attributes of a clan culture.
 C . Entrepreneurial Culture
• Innovation, creativity, risk taking, and
aggressively seeking opportunities illustrate
an entrepreneurial culture.

D. Market Culture
• An emphasis on sales growth, increased market
share, financial stability, and
profitability are attributes of a market culture.
 Globalization and People at Work
• Globalization involves growing
worldwide interdependence of resource
suppliers, product markets, and business
competition.
• To understand the difference in management and
organizational practices among the world’s cultures
we must be familiar with the importance of
 Multinational employers,
 The diversity of multicultural workforces, and
 Expatriate
Thank
You!!!
Organizational
Behaviour
Chapter Eight
Power and Politics
in Organization
 Power
• Power is ability to get others to do what one
wants them to do.

• Power refers to a capacity that A has to

influence the behavior of B so B acts
in accordance with A’s wishes.
 Leadership Vs. Power
• We define leadership as the ability to
influence a group toward the
achievement of a vision or set of goals.

• Leaders use power as a means of attaining

group goals. Leaders achieve goals,
and power is a means of facilitating
their achievement.
 Base and Sources of Power

• Managers derive power from both

organizational and individual

• sources.
These sources are called

1. Position power and

2. Personal power
 1. Position Power
• Three bases of power are available to a
manager solely as a result of his or
her position in the organization:

 Reward,

 Coercive, and

 Legitimate power.
 • In an organizational context the
reward power is shown by:
 Increase in money,
A. Reward  Time off,

Power  Vacation schedules,

 Work assignments,

Reward power is  Favorable

performance
the ability to
appraisals,
apply reward or  Promotions,
remove negative  Interesting work
assignments,
sanctions.
 Friendly colleagues,
 Preferred work shifts
etc.
 • Forms of coercion include:

B. Coercive  Criticisms,
 Terminations,
Power  Reprimands,
 Suspensions,
Coercive power
 Warning letters,
is the ability to
 Negative
apply
performance
punishment.
appraisals,
 Demotions etc.
 • It represents the power a
person receives as a result
C . Legitimate
of his or her position in the
Power formal hierarchy of an

• organization.
Positions of authority
It is the extent to
include coercive and
which a manager can
use the “right of • reward powers.
Legitimate power, however, is

command” to control broader than the power

to coerce and reward.
other people.
 2. Personal Power
• Personal power resides in the individual
and is independent of that
individual’s position.

• There are two bases of personal power:

 Expertise and

 Charisma of the individual.

A. Expert power
• Expert power is influence based on
 Expertise,
 Special skills,
 Knowledge.
B. Referent /charismatic Power
• Referent power develops out of admiration
of another and a desire to be like
that person.
 Power Tactics
• Research has identified distinct
nine influence tactics:

1. Rational persuasion: includes using facts,

data, and logical arguments to try to convince
others that your point of view is the best
alternative.
2. Inspirational appeals: seek to tap into our values,
emotions, and beliefs to gain support for a request or
course of action.

3.Consultation: refers to the influence agent’s

asking others for help in directly influencing or
planning to influence another person or group.

4. Ingratiation: refers to different forms of making

others feel good about themselves..
5. Personal appeal refers to helping another
person because you like them and they asked for your
help.6.Exchange: refers to give-and-take in
which someone does something for you, and
you do something for them in return.

7.Coalition: tactics refer to a group of

individuals working together toward a common goal
to influence others.
8. Pressure: refers to exerting undue influence
on someone to do what you want or else
something undesirable will occur.

9. Legitimating: tactics occur when the appeal is

based on legitimate or position power. This tactic
relies upon compliance with rules, laws, and
regulations.
 Power in Group Coalitions
• Coalitions are clusters of individuals who temporarily
come together to achieve a specific purpose.
• What predictions can we make about coalition formation?
 Coalitions in organizations often seek to maximize their size,
 Coalitions relates to the degree of interdependence
within the organization.
 Finally, coalition formation will be influenced by the
actual tasks that workers do.
 Organizational Politics

• Organizational politics is the processes, the

actions, the behaviors through
which potential power is utilized and
realized.

• Power is a property of system at rest;

politics is the study of power in action.
• There may be legitimate political behavior or
illegitimate political behavior in an organization.

Legitimate political behavior is normal everyday

politics like complaining to supervisor, forming coalitions,
etc.

Illegitimate political behavior is extreme political

behavior that violates the implied rules of the game like
sabotage, speaking bad about the organization.
 Types of Political Activity

• There are variety of political activities in which

people engage.

• Attacking or blaming others: Used when

trying to avoid responsibility for failure.

• Using information: Withholding or distorting

information, particularly to hide
negative information.
• Managing impressions: Bringing positive
attention to one’s self or taking credit for
the positive accomplishments of others.

• Building support for ideas: Making sure that

others will support one’s ideas before they are
presented.

• Praising others: Making important people feel

good.
Building coalitions: Joining with other people to
create a powerful group.

Associating with influential people:

Building support networks.

Creating obligations: Doing favors for others so

they will owe you favors later.
 Factors Contributing to
Political Behavior

• Some are individual

characteristics,

derived from the unique

qualities of the people the

organization employs;

• others are a result of the

organization’s culture or internal

 Political
Mella skill: refers to peoples’ interpersonal style
Tutorials

 Internal locus of control: Individuals believe that

they can make a difference in organizational outcomes.

 Investment in the organization: If a person is

highly
invested in an organization either
emotionally, they care financially or
organization. deeply about the fate of

 Expectations of success: When a the

person expects
that they will be successful in changing an outcome, they
are more likely to engage in political behavior.
• Scarcity of resources: it breeds politics.

• Role Ambiguity: Any type of ambiguity can

relate to greater organizational politics.

• Democratic decision making: Since

many people have a say in the process of
making decisions, there are more people
available to be influenced. Etc.
Thank
You!!!
Organizational
Behaviour
Chapter Nine
Organizational
Design and Structure
 The Essence of Organizational
Design and Structure
• Organization structure is the structural
framework for carrying out the functions
of planning, decision-making,
controlling, communication, motivation, etc.

• It defines how job tasks are formally

divided, grouped, and coordinated.
• Organization structure is the arrangement and
interrelationship of the component parts, and
positions of an organization.

• An organization structure has two dimensions:

 Horizontal dimension: identifies

departments, units, and divisions on the same
level of a management.

 Vertical dimension: refers to the

authority relationships between superiors and
subordinates
• Organizational design is the process of creating,
selecting, or changing the structure of an
organization.
• Generally, managers design an organization’s
structure to achieve one or a combination of the
following important objectives.
 Create new institution for new organization
 Respond to change
 Integrating new elements
 Coordinate the components
 Encouraging flexibility
 Element of the
Organizational
Structure
Managers need to address six key elements
when they design their organization's structure:

 Work specialization,  Span of

control,

 Departmentalization,  Centralization

 Chain of command,  Formalization.

 The Key Question The
Answer Provided

To what degree are activities Work Specialization

subdivided into
separate jobs?
On what basis will jobs be grouped Departmentalization
together?
To whom do individuals and groups Chain Of Command
report?
How many individuals can a manager Span Of Control
efficiently
and effectively direct?
Where does decision-making authority Centralization &
lie?
Decentralization

To what degree will there be rules Formalization

and
regulations to direct employees and
 Key Organization Design
Process /Steps/
• In the process of designing an
organization’s structure, the following
steps are imperative.

• Reviewing existing objectives and

strategies:

• Determining work activities

Classifying and grouping activities: this involves
grouping together of activities in accordance with
 Similarities (homogeneity) of the activities,
 Interdependence,
 Job characteristics or any other grouping criteria.
Assigning work and delegating authority
Designing a hierarchy of relationship: determine the
vertical and horizontal operating relationships of the
organization as a whole.
 Types of Organization
Structure
• Depending on how elements of
organizational structure are arranged
there are two configurations of
organizational structures.

• Mechanistic and Organic Model

Mechanistic structures are similar to
bureaucracies, as they are highly formalized
and centralized.

• Communication tends to follow formal channels,

• Employees are given specific job descriptions
• Rigid and resist change,
• Unsuitable for being innovative and taking
quick action.
• Inhibiting entrepreneurial action
• Discouraging individual initiative of employees.
• Limit individual autonomy and self-
determination,
Organic structures are flexible, decentralized
structures with low levels of formalization.

• Communication lines are more fluid and flexible.

• Employee job descriptions are broader,
• Employees are asked to perform duties based on
their own expertise levels.
• Tend to be related to higher levels of job satisfaction
on the part of employees.
• Conducive to entrepreneurial behavior and
innovativeness.
Mella
Tutorials
 Common Organizational Structure
1. Simple Structure
• A structure characterized by a low degree of
departmentalization, wide spans of control, authority
centralized in a single person, and little formalization.
 Most widely practiced in small businesses
 The strength of the simple structure lies in its simplicity.
It is fast, flexible, inexpensive to maintain,
and accountability is clear.
 2. The Bureaucracy

• The bureaucracy is characterized by

 Highly routine operating tasks achieved
through specialization,
 Much formalized rules and regulations,
 Tasks that are grouped in to functional
departments,
 Centralized authority,
 Narrow spans of control,
 3. The Matrix Structure

• Essentially, the matrix combines two forms of

departmentalization: functional and product.
• The most obvious structural characteristic of the
matrix is that it breaks the unity-of-command concept.
• Employees in the matrix have two bosses their
functional department managers and their product
managers.
• Therefore, the matrix has a dual chain of command.
 New Design Options
• Three such structural designs:
 Team structure,
 Virtual organization,
 Boundary less organization.
A. Team Structure; Team Structure is the use of teams as
the central device to coordinate work activities.
B. The Virtual Organization; Virtual organization is a
small, core organization that outsources major business
functions.
• In structural terms, the virtual organization is highly
centralized, with little or no departmentalization.
C . Boundary less Organization; It is an organization that
is not defined by, or limited to, the horizontal, vertical, or
external boundaries imposed by a predefined structure.
 Technology and Job Design

• The concept of socio-technical systems is

used in organizational behavior to
indicate the importance of integrating
people and technology to create high
performance work systems.
• The following are concepts that show
the relationship between technology and job
design.

 Automation and robotics

 Flexible manufacturing systems

 Electronic office

 The electronic office, or e-office,

 Work-flow and process reengineering

Thank
You!!!