PSIKOLOGI ORGANISASIPERTEMUAN 14 & 15

Matakuliah : L0064 / Psikologi Industri & Organisasi 1Tahun : 2007 / 2008

Learning ObjectivesAfter reading this chapter, you will be able to1. Contrast classic and modern organizational styles2. Describe the nature of total-quality-management

(TQM) programs and why some programs fail3. Explain the nature of worker participation

programs, and quality control programs4. Describe the organizational development (OD)

process5. Understand the socialization of new employees and

also new members of labor unions6. Describe the affect of organizational culture and

informal groups on behavior7. Explain how computer technology has impacted

organizational structure and work procedures

Bureaucracy

• A formal, orderly, and rational approach to organizing business enterprises

• Proposed by Max Weber to correct the inequities, favoritism, and cruelty during the Industrial Revolution

• System devised to function like a machine, unaffected by the whims of owners

• First organization chart created in 1850’s by Daniel McCallum for the New York & Erie Railroad

Bureaucracy

• Characteristics of a bureaucracy– Decentralization into component parts and

operations– Operations linked in a fixed rank order of control– The concept of division of labor simplified and

specialized jobs– Responsibility and authority delegated

downward– Communications flowed upward through same

channels– Employees cut off from contact with other levels

and sectors of the organization

Bureaucracy• Problems with bureaucracies

– Human needs and values are often ignored– Human motivations tend not to be recognized– Employees have no identity or control over

their work– “Ideal” employees are docile, passive,

dependent, and childlike– Decision making is centralized– Workers are isolated from management– New developments are viewed as threats

Participatory Democracy• The modern organizational style is a high-

involvement participatory approach• Concerned with employees’ intellectual,

emotional, and motivational characteristics• Participatory decision and policy making• Application of McGregor’s Theory Y

philosophy

Participatory Democracy• Basic assumptions about people,

participation, and performance– Human relations - people should be treated fairly

and with respect– Human resources - people are a valuable resource– High involvement - people can be trusted to make

important decisions about the management of their work

• “Taking charge” - the work behavior stimulated by high-involvement management

Total Quality Management(TQM)

• TQM refers to participative management programs characterized by increased employee involvement and responsibility

• Quality-of-worklife (QWL) programs restructure job and management requirements to enhance worker participation– Quality control circles - small groups of workers

meet to solve problems relating to production– Self-managing work groups - a work team controls

all aspects of the job– Virtual self-managing work groups - linked

electronically

Why QWL Programs Fail• When employees don’t understand the increased

demands of the redesigned job (e.g., Volvo)• Some workers don’t desire to participate in

decision making and may need more rather than less supervision

• Some managers are uncomfortable releasing control

• Top management and union officials must embrace the program

• Diversity and contingent workforces present challenges for inclusion

Self-Managing Work Groups• Employee groups that allow team members to

manage, control and monitor all facets of their work, including– Hiring– Training– Recruiting– When to take rest breaks

Self-Managing Work Groups• Characteristics (Hackman, 1986)

– Employees assume responsibility and accountability

– Employees monitor their own performance and seek feedback

– Employees manage their performance and take corrective action

– Employees seek resources when needed– Employees help each other to improve

performance

Self-Managing Work Groups• Requirements

– Mature employees and responsible, supportive managers

– Clear direction from the organization– A support staff to provide technical expertise– Adequate material resources

• Disadvantages– Conversion to the process is difficult, expensive, and

time consuming– It takes a while to become effective

Virtual Self-Managing Work Groups• Virtual team members may work in

geographically separate locations, but meet via Desktop Videoconferencing Systems (DVCS)– Recreates face-to-face interactions

• Research is sparse• Communication and ensuring timely attendance

are critical to providing team members the opportunity to participate

Organizational Change• Employee participation programs call for radical

changes - and resistance to change is to be expected

• Organizational development (OD) involves techniques for introducing large scale changes

• The process is carried out by change agents who diagnose problems, devise strategies, and implement interventions

Organizational Change• External factors relating to overcoming

resistance to change– Providing explanations about policy change has

beneficial effects– Openness to change is positively affected by the

amount of information received from management

– Greater trust in management is related to employee beliefs that they had ample opportunity to participate, and the reasons for change were adequately communicated by management

Organizational Change• Personality factors related to overcoming

resistance to change– People who score high in risk tolerance and self-

concept, including locus of control, positive affectivity, self-esteem, and self-efficacy, cope with change better

• When properly introduced, change can have a long-lasting positive effects (e.g., Seashore & Bowers, 1970)

Organizational Development (OD)

• OD is the study and implementation of planned total organizational change

• Techniques include sensitivity training, role playing, group discussion, survey feedback, team building, and job enrichment

• OD consultants, or change agents, work with groups to implement change and develop group confidence and effectiveness– Outside agents generally able to provide more

objective assessment of organizational needs

Organizational Development (OD)• OD is an on-going process

– Assessment and diagnosis– Feedback– Development of recommended strategies– Implementation (intervention)– Evaluation and feedback

• Implementation must begin with top management

• Job satisfaction may be negatively correlated with OD, while productivity is positively related

Socialization of New Employees

• Socialization is the adjustment process by which new employees learn their role in the organizational hierarchy, the company’s values, and the behaviors considered acceptable by their work group

Socialization of New Employees• Employees high in extroversion and openness

to new experiences demonstrated higher proactive socialization behaviors

• Newcomers high in self-efficacy held higher expectations about how well they would perform their new job

• Socialization is quicker when there is interaction between old and new employees

Socialization of New Employees• Role ambiguity - when job

responsibilities are unstructured or poorly defined

• Role conflict - when there is disparity between job demands and the employee’s personal standards– High levels of role conflict and role

ambiguity are related to low satisfaction, dissatisfaction with the supervisor, low organizational commitment, and high turnover

Socialization of New Employees• Resocialization occurs every time one joins a

different organization with new rites of passage, or.r even transfers to a different unit within the same organization

• Feedback from peers and especially supervisors is important during the socialization and resocialization process

Organizational Culture• Organizational Culture is the pattern of

beliefs, values, and expectations that guide the behavior of the organization’s members and manifested in company and industry practices

• Organization climate is what we see when we observe the functioning of a company

– Researchers often use climate and culture interchangeably due to fundamental similarities

– Others argue that climate is the surface manifestation of culture

Person-Organization Fit• Person-organization (P-O) fit is the

degree of congruence between an employee’s values and the organization’s values

• Enhanced by how closely the values of the newcomer agree with those of their supervisor

• Similar personalities also enhance P-O fit– Applicants are attracted to organizations whose structure,

mission and attitudes they seem comfortable with

Labor Unions• Labor unions help define a company’s culture• Socialization of new union members is similar to

the process of becoming acclimated to a new organization

• A review of pay scales indicated that union workers made up to 33% more and had better and safer working conditions than non-union workers in similar jobs

Declining Union Membership

• In 1945, more than 35% of U.S. workforce belonged to unions – Percentage had fallen to 12.9% by 2003

• Unions initially resisted quality of worklife programs because they were seen as eroding union loyalty

• The greater the threat of job loss, the greater the union commitment

Union Grievances• Specified in union contracts, the grievance

process establishes a formal mechanism for worker complaints

• Highly cohesive work groups also file more grievances

• Supervisors who are low in consideration behaviors are the targets of more grievances

• When a complaint is resolved in favor of the worker, the process is seen as fair, but when resolved in favor of management, relations suffer

Informal Groups• Informal groups develop within every

organization and have tremendous power to shape employee attitudes, behavior, and productivity

• Hawthorne studies provided empirical evidence of informal work groups– The Relay Assembly Group established its own

standards of productivity which were lower than those set by management

Social Loafing• The idea that people do not work as hard

in a group as they do when working alone• Social loafing is more likely to occur when

– Individual outputs cannot be evaluated– Tasks are not meaningful or personally

involving– Working with strangers– Co-workers are expected to perform well

on the task– Work groups are less cohesive

Group Cohesiveness• Group cohesiveness is the degree of

closeness within the group• A group’s affective tone influences its

work performance• The greater the cohesiveness, the greater

the group’s power over its members and the greater the pressure to conform

• Wage-incentive systems that reward individual rather than team performance increase competition and lower cohesion

Computer Technology

• Creates the need for greater coordination and integration of the company’s basic units

• Requires greater formalization of work procedures which reduces opportunities for individuality in structuring and organizing work

• May result in decentralization, giving more decision making authority to the computer operator

Computer Technology

• May result in operators who know more about equipment capabilities than their supervisors, thus disrupting traditional working relationships

• Changes procedures for meetings (e.g., virtual meetings), disrupting traditional lines of communication

• Reduces the opportunity for personal interaction and weakens cohesiveness

Internet Addiction• Excessive Internet use can lead to a form

of addiction (see www.netaddiction.com)• Employer monitoring of computer usage

has a disruptive effect on the employee-employer relationship

• An AMA study reports 78% of companies monitor employees’ behavior on the job

• Many companies discipline employees for online abuse

Key Terms• Bureaucracy• Change agents• Group cohesiveness• Organizational

culture• Organizational

Development (OD)

• Person-organization (P-O) fit

• Self-managing work groups

• Social loafing• Socialization• Total quality

management (TQM)