You and the Organisation

1KM, 2013, IIMIDR

Network of relationships

Ø Organisation: A structured social system consisting of groups and individuals –working together to meet some hope-fullyagreed-upon goals.n Organisation goalsn Product/Deptartment goalsn Personal goals…….

U need to understand the interplay of individual differences & environment in which they operate

Eg, junior doctor in Corporate hospital 2

Source: Perrow 1967

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PERFORMANCE……

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Two dimensions of performance

Effective, but not efficient

Ex: Microsoft in initial years

Effective and efficient

(area of high managerial effectiveness)

Efficient but not effective: Ex: Digital Corpn.

PerformanceEffectivenessHow well are Goals being attained? Means – End Relationship uncertain

Performance efficiencyHow well are resources being used?

Poor

Good

Monitor and control

Engage, encourage

4KM, 2013, IIMIDR

YOUR FUTURE ROLE……

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- Time horizon- Skill - Managing self to managing others- Work values – make time for others

WHAT MANAGERS DO?

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What Managers Do

They get things done through other people.n Management Activities:n Make decisionsn Allocate resourcesn Direct activities of others to attain goals

n Work in an organizationn A consciously coordinated social unit

composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.

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Management Functions

Plan Organize

Lead Control

Managers

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n Discovered ten managerial roles – sets of behaviors in their work

n Separated into three groups:n Interpersonaln Informationaln Decisional

Mintzberg’s Managerial Roles

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Mintzberg’s Managerial Roles: Interpersonal

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Figurehead

LiaisonLeader

Interpersonal Roles11

Mintzberg’s Managerial Roles: Informational

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Monitor

DisseminatorSpokesperson

Informational Roles

12

Mintzberg’s Managerial Roles: Decisional

Decisional Roles

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Entrepreneur

Disturbance handler

Resource allocator

Negotiator

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Essential Management Skillsn Technical Skillsn The ability to apply specialized knowledge or

expertise

n Human Skillsn The ability to work with, understand, and

motivate other people, both individually and in groups

n Conceptual Skillsn The mental ability to analyze and diagnose

complex situations

KM, 2013, IIMIDR 14

Luthans’ Study of Managerial Activities and Managerial Successn Four types of managerial activity:n Traditional Management

n Decision making, planning, and controlling

n Communicationn Exchanging routine information and processing

paperwork

n Human Resource Managementn Motivating, disciplining, managing conflict,

staffing, and training

n Networkingn Socializing, politicking, and interacting with others

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Successful vs. Effective Allocation by Time

Managers who got promoted faster (were successful) did different things than did effective managers (those who did their jobs well)

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DEFINITION……

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Organisation Behavior

Ø As manager you need to be efficient(resource utilisation) and effective (goal achievement)

Ø OB – to understand all aspects of behaviors in three levels of analysis - individual, groups and organisation.

18KM, 2013, IIMIDR

Behavior: The way one acts or conducts oneself in response to stimuli

Shape Behavior

Positive reinforcement principles improves organization functioning

Negative reinforcement principles to discourage undesirable behavior

1. Reward and Recognition schemes, 2. Incentive schemes,3. Various data-based performance improvements

1. Discipline related, 2. Norms, Rules & Regulations3. Convert –ve to +ve reinforcements & benefits

19KM, 2013, IIMIDR

Systematically reinforcing each successive step that moves an individual closer to the desired response (OB modification)

OB matters…..

n If accurately appraise the work of subordinates, company enjoy lower costs and higher productivity.

n People who are satisfied with the way they are treated at work are generally more pleasant to co workers, and are less likely to quit.

n People who are trained carefully to work together in teams are generally happier and more productive than those who are simply thrown together without any organisational support.

n Employees who believe that they have been treated unfairly on the job are more likely to steal and to reject policies of their organisations.

n People who are mistreated by the supervisors are likely to suffer more mental and physical illnesses.

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OB matters…..

n Organisations that treat well with respect to pay/benefits, opportunities, job security, friendliness, fairness, and pride in the company, are twice as profitable as the S&P’s 500 companies.

n……..Cuts across all areas of organisational functioningmotivation communication keep people satisfied make teams function smoothlydesign jobs effectively KM, 2013, IIMIDR 21

OB - evolution

n Scientific management:n Time and motion studies

n Designing jobs as efficiently as possiblen People are like machines (Taylor)

n Human relations movementn Importance of social processes in work settings

(Mayo)n Hawthorne studies: how the design of work

environment affected performancen Tendency for people being studied to behave differently

that they ordinarily would KM, 2013, IIMIDR 22

OB - evolution

n Boring, monotonous, physical labour is drastically reduced

n Decision making is being driven down the organisation as access to information to take decision is at finger tips of mostn To tap employees’ potential to create, judge,

imagine, build relationshipsn Create work that is challenging, meaningful

and interestingn People want to earn but also care about

interpersonal side of work – recognition, relationships, social interaction

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EVIDENCE BASED……

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Four issues….

n Firmly grounded in scientific methodn Interdisciplinary is naturen Basis for enhancing organisational

effectiveness and individual well-beingn Studies individuals, groups and organisations

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Intuition and Systematic Study

• Gut feelings• Individual observation• Common sense

Intuition

• Looks at relationships• Scientific evidence• Predicts behaviors

Systematic Study

(cause-effect)

The two are complementary means of predicting behavior.KM, 2013, IIMIDR 26

An Outgrowth of Systematic Study…

Pose a managerial question

Search for best available evidence

Apply relevant information to case

Evidence-Based Management (EBM)

Basing managerial decisions on the best available scientific evidence

Must think like scientists:

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As Manager, ask questions

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Contributing Disciplines

Psychology

Sociology

Social Psychology

Anthropology

Many behavioral sciences have contributed to the development ofOrganizationalBehavior

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Contributing Disciplines

Psychology

Sociology

Social Psychology

Anthropology

• Learning, motivation, personality, emotions, perception

• Training, leadership effectiveness, job satisfaction

• Individual decision making, performance appraisal, attitude measurement

• Employee selection, work design, and work stress

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• Behavioral change• Attitude change• Communication• Group processes• Group decision

making

• Group dynamics• Work teams• Communication• Power• Conflict• Intergroup behavior

• Organizational culture

• Organizational environment

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Fundamental assumptions

n Dynamic nature of organisation:n Open systems

n Inputs Throughput Outputn Environment Feedback

n Assumes that there is no “one best approach”n Contingency approach – a perspective

suggesting that organisational behavior is affected by a large number of interacting factors. How someone will behave is contingent on many different variables at once.

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Few Absolutes in OB

Contingency Variable (Z)

Independent Variable (X)

Dependent Variable (Y)

In American Culture

Boss Gives “Thumbs Up”

Sign

Understood as Complimenting

In Iranian or Australian Cultures

Boss Gives “Thumbs Up”

Sign

Understood as Insulting - “Up

Yours!”

Situational factors that make the main relationship between two variables change—e.g., the relationship may hold for one condition but not another.

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Types of Study Variables

Independent (X)n The presumed cause of the

change in the dependent variable (Y).

n This is the variable that OB researchers manipulate to observe the changes in Y.

Dependent (Y)n This is the response to X

(the independent variable).n It is what the OB

researchers want to predict or explain.

n The interesting variable!

X Y Predictive Ability

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Eg, Hawthorne studies32

Interesting OB Dependent Variables: work outcome variablesn Productivity

n Transforming inputs to outputs at lowest cost. Includes the concepts of effectiveness (achievement of goals) and efficiency (meeting goals at a low cost).

n Absenteeismn Failure to report to work – a huge cost to employers.

n Turnovern Voluntary and involuntary permanent withdrawal from an

organization.

n Deviant Workplace Behaviorn Voluntary behavior that violates significant organizational

norms and thereby threatens the well-being of the organization and/or any of its members.

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More Interesting OB Dependent Variablesn Organizational Citizenship Behavior (OCB)n Discretionary behavior that is not part of an

employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization (eg, covering for a sick colleague, noticing a flaw in work process).

n Job Satisfactionn A general attitude (not a behavior) toward

one’s job; a positive feeling of one's job resulting from an evaluation of its characteristics.KM, 2013, IIMIDR 34

The Independent VariablesThe independent variable (X) can be at any of these three levels in this model:nIndividualn Biographical characteristics, personality and emotions,

values and attitudes, ability, perception, motivation, individual learning, and individual decision making

nGroupn Communication, group decision making, leadership and trust,

group structure, conflict, power and politics, and work teams

nOrganization Systemn Organizational culture, human resource policies and

practices, and organizational structure and designKM, 2013, IIMIDR 35

VALUES, ATTITUDES AND BEHAVIOR

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Values

Basic convictions on how to conduct yourself or how to live a life that is personally or socially preferable – “How To” live life properly.Viewed as a conception, explicit or implicit, of what an individual or a group regards as desirable, and in terms of which he or they select, from among alternative available modes, the means and ends of action.

Ø Beliefs: what ‘is’ known about the world (eg, life after death, walking under ladder brings ill luck)

Ø Values: what should be and what is desirableKM, 2013, IIMIDR

37

Some issues….

n Stablen Enduringn Significant portion is established in early

years – through socialisationn Some research says that values may be

partly determined by our geneticallytransmitted traits.

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Values

nAttributes of Values:n Content Attribute: says that a mode of conduct or end-

state of existence is importantn Intensity Attribute: just how important that content isnValue Systemn A person’s values rank ordered by intensityn Tends to be relatively constant and consistent

n Eg, freedom, pleasure, self respect, honesty, obedience, equality

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Importance of Values

n Provide understanding of attitudes, motivation, and behaviors

n Eg, you view that pay should be based on performance, but in your orgn, it is based on seniority – disappointment, less output….

n Influence our perception of the world around us

n Eg, tit for tat is the best…………

n Represent interpretations of “right” and “wrong”

n Imply that some behaviors or outcomes are preferred over others

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Classifying Values – Rokeach Value Survey

n Terminal Values (18 items)n Desirable end-states of existence; the goals that a person

would like to achieve during his or her lifetimen Eg, true friendship, a comfortable life

n Instrumental Values (18 items)n Preferable modes of behavior or means of achieving one’s

terminal valuesn Eg, responsible, ambitious

n People in same occupations/categories tend to hold similar values

n But values vary between groupsn Value differences make it difficult for groups to negotiate and

may create conflictKM, 2013, IIMIDR41

Value Differences Between Groups

KM, 2013, IIMIDR

Source: Based on W. C. Frederick and J. Weber, “The Values of Corporate Managers and Their Critics: An Empirical Description and Normative Implications,” in W. C. Frederick and L. E. Preston (eds.) Business Ethics: Research Issues and Empirical Studies (Greenwich, CT: JAI Press, 1990), pp. 123–44.

42

Generational Values

Cohort Entered Workforce

Approximate Current Age

Dominant Work Values

Socialists 1950s to the late 1980s

55+ Hardworking, conservative, conforming; loyalty to the organization; emphasis on a secure life

Liberals Early 1990s to 2000

Mid-40s to mid-60s

Success, achievement, ambition, dislike of authority; loyalty to career

Xers 2000–2005 Late 20s to early 40s

Work/life balance, team-oriented, dislike of rules; want financial success; loyalty to self and relationships

Millennials 2005 to present Early 20s Comfortable with technology, entrepreneurial; high sense of entitlement

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HOFSTEDE’S FRAMEWORK FOR ASSESSING CULTURES

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Values differ….

n Values differ across culturesn This helps to explain and predict behavior of

employees of different countriesn Most widely used n Old, done in 1970s by surveying 116000 IBM

employees in 40 countries

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Hofstede’s Framework: Power DistanceThe extent to which a society accepts that power ininstitutions and organizations is distributed unequally.

• Low distance: Relatively equal power between those with status/wealth and those without status/wealth• High distance: Extremely unequal power distribution between those with status/wealth and those without status/wealth

Eg, IndiaKM, 2013, IIMIDR 46

Hofstede’s Framework: Individualism

n Individualismn The degree to which people prefer to act as

individuals rather than as member of groupsn Collectivismn A tight social framework in which people expect

others in groups of which they are a part to look after them and protect them

n Eg, US, Australia, Britain

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Hofstede’s Framework: Masculinity

n Masculinityn The extent to which the society values work roles

of achievement, power, and control, and where assertiveness and materialism are also valued

n Femininityn The extent to which there is little differentiation

between roles for men and women

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Hofstede’s Framework: Uncertainty Avoidance

The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them

High Uncertainty Avoidance:

Society does not like ambiguous situations and tries to avoid them.

Low Uncertainty Avoidance:

Society does not mind ambiguous situations and embraces them.

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n Long-term Orientationn A national culture attribute that emphasizes the

future, thrift, and persistencen Short-term Orientationn A national culture attribute that emphasizes the

present and the here and now

n Eg, India

Hofstede’s Framework: Time Orientation

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Hofstede’s Framework: Indulgence

n Indulgence– The degree to which it is alright for people to enjoy life, have fun, and fulfill natural human desires

n Restraint– The extent to which there are social norms governing the gratification of basic human desires and behavior

Eg, India (norm bound, restrained in their expression and gratification of basic human desires)

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Hofstede’s Framework: An Assessmentn There are regional differences within countriesn The original data is old and based on only one

companyn Hofstede had to make many judgment calls while

doing the researchn Some results don’t match what is believed to be

true about given countriesn Despite these problems it remains a very popular

framework

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GLOBE Framework for Assessing Culturesn Global Leadership and Organizational Behavior

Effectiveness (GLOBE) research program using data from 825 organisations from 62 countries:n Nine dimensions of national culture

n Similar to Hofstede’s framework with some additional dimensions:n Humane Orientation: how much society rewards

people for being altruistic, generous, and kindn Performance Orientation: how much society

encourages and rewards performance improvement and excellence

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DefinitionsØ Beliefs: what ‘is’ known about the world Ø Values: what should be and what is desirableØ Attitudes: tendency to respond (in readiness) in

a particular way - expressed by evaluating an entity with some degree of favour or disfavourØ Relatively stable clusters of feelings, beliefs and

behavioral intentions towards specific object, person or institution

Ø Expressed through behaviorØ Behaviors: The way one acts or conducts

oneself in response to stimuli 54KM, 2013, IIMIDR

Attitudes

Evaluative statements or judgments concerning objects, people, or eventsThree components of an attitude:

Attitude

Behavioral

Cognitive

Affective

The emotional or feeling segment of an attitude (feeling)

The opinion or belief segment of

an attitude (evaluating) An intention to behave

in a certain way toward someone or something (action)

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I believe that my boss is lazy

I don’t like lazy people

I try to avoid boss when I can

Shades of attitudes

n Prejudice: Negative attitudes towards the members of a specific grous, based solely on the fact that they are members of those groups:n Stereotypingn Discrimination based on race, age, gender,

disabilityn Job satisfaction: attitude towards jobn Organisational commitment – attitude

towards the organisationKM, 2013, IIMIDR 56

Job satisfaction

n Dispositional model:n The conceptualisation proposing that job

satisfaction is a relatively stable disposition of an individual – that is, characteristic that stays with people through situations.n Big Five Model (personality)n Positive affectivity- enthusiasm, confidence,

cheerfulness

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Job satisfaction

n Value theory:n A theory suggesting that job satisfaction depends

primarily on the match between the outcomes of individual value in their jobs and their perceptions about availability of such outcomesn Pay, learning opportunitiesn Job satisfaction surveys – customised approach

n Social information processing modeln A conceptualisation specifying that people adopt

attitudes and behaviors in keeping with the cues provided by others with whom they come to contactn Buddy system, mentoringKM, 2013, IIMIDR 58

Organisational commitment

n The extent to which an individual identifies and is involved with his organisation and/or is unwilling to leave itn Generally independent of job satisfaction

n Continuance commitment – cant leave as cant afford to do so

n Normative commitment – strength of a person’s desire to continue working because he feels obligations from others to remain there

n Affective commitment – The strength of a person’s desire to work for an organisation because he regards it positively and agrees with its goals and valuesKM, 2013, IIMIDR 59

Affective commitment

n Research has shown that:n Performance oriented management practices

lead to high affective commitment and improved financial performance

n Maintenance oriented management practices lead to high continuance commitment and unchanged financial performance

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Does Behavior Always Follow from Attitudes?n Leon Festinger – No, the reverse is sometimes true!n Cognitive Dissonance: Any incompatibility between two

or more attitudes or between behavior and attitudes

n Individuals seek to reduce this uncomfortable gap, or dissonance, to reach stability and consistency

n Consistency is achieved by changing the attitudes, modifying the behaviors, or through rationalization

n Desire to reduce dissonance depends on:§ Importance of elements creating it (eg bribe taking)

§ Degree of individual influence in the situation (eg, it is institutionalised)

§ Rewards involved in dissonance (eg, reward here is great)KM, 2013, IIMIDR

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Cognitive dissonace

n Ways to reduce the same:

n Denialn Avoidancen Change

I believe that MBAs have lot of bookish knowledge but lack in practical use of it….

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Moderating Variables n The most powerful moderators of the attitude-

behavior relationship are:n Importance of the attituden Correspondence to behaviorn Accessibilityn Existence of social pressuresn Personal and direct experience of the attitude

BehaviorPredictAttitudes

Moderating VariablesKM, 2013, IIMIDR 63

Predicting Behavior from Attitudesn Important attitudes have a strong relationship to behavior.n The closer the match between attitude and behavior, the

stronger the relationship:n Specific attitudes predict specific behavior (eg, asking

someone about intention to quit in six months is better predictor of behavior than asking her how satisfied she is on job)

n General attitudes predict general behavior (eg, overall job satisfaction is better predictor of whether the individual is engaged in her job or motivated to contribute)

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Predicting Behavior from Attitudes

n The more frequently expressed an attitude, the better predictor it is (attitudes that our memory can access easily –so talk more about it…if you want to shape your behavior)

n The more tightly related the attitude is to values we hold dear, the stronger the relationship will be to the behavior.

n High social pressures reduce the relationship and may cause dissonance but social pressures to behave in certain ways hold exceptional powers (eg, executives in ENRON).

n Attitudes based on personal experience are stronger predictors. (eg, asking college students if they would like to work for authoratarian supervisor is not likey to predict their actual behavior) KM, 2013, IIMIDR 65