Third EditionThird Edition

Dr. Wasim Al-Habil.Dr. Wasim Al-Habil.

Chapter 6 . . . . . . . . . . . . . . . . . . . . . . Chapter 6 . . . . . . . . . . . . . . . . . . . . . . Organizational BehaviorOrganizational Behavior

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Chapter SixChapter Six

Organizational BehaviorOrganizational Behavior

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Key TopicsKey Topics

Definition of Organization Behavior (OB)Definition of Organization Behavior (OB) Organizational DevelopmentOrganizational Development The Impact of Bureaucratic Structure on The Impact of Bureaucratic Structure on

Behavior Behavior Motivation TheoriesMotivation Theories

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““The study of organizational The study of organizational

behavior comprises those aspects behavior comprises those aspects

of the behavioral sciences that of the behavioral sciences that

focus on the understanding of focus on the understanding of

human behavior in organizationshuman behavior in organizations”.”.

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MacGregor’s Assumptions about MacGregor’s Assumptions about HBHB

In 1960, MacGregor’s In 1960, MacGregor’s Human Side of EnterpriseHuman Side of Enterprise was built around the following assumptions:was built around the following assumptions:

1.1. Organizations are created to serve human ends.Organizations are created to serve human ends.2.2. Organizations and people need each otherOrganizations and people need each other3.3. When the fit between the needs of the individual When the fit between the needs of the individual

and the organization is poor, one or both will and the organization is poor, one or both will suffer.suffer.

4.4. A good fit between individuals and organizations A good fit between individuals and organizations benefits both because people gain meaningful and benefits both because people gain meaningful and satisfying work and organizations receive the satisfying work and organizations receive the talent and energy they need to thrive.talent and energy they need to thrive.

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Luddites & HBLuddites & HB

Luddites is originally English workers in the early 19Luddites is originally English workers in the early 19thth century who destroyed new textile machinery that was century who destroyed new textile machinery that was displacing them in factories; now the term, after the displacing them in factories; now the term, after the legendry Ned Ludd refers to anyone who sabotage legendry Ned Ludd refers to anyone who sabotage hightech equipment to protect jobs.hightech equipment to protect jobs.

Their principles of working were founded on:Their principles of working were founded on:

1.1. Minimize fear of change by involving people at all levels.Minimize fear of change by involving people at all levels.2.2. Minimize the negative impacts of the change on groups of Minimize the negative impacts of the change on groups of

workers at risk.workers at risk.3.3. Co-opt informal and formal leaders, especially those who Co-opt informal and formal leaders, especially those who

might become antagonistic.might become antagonistic.4.4. Find alternatives for employees who do not see the Find alternatives for employees who do not see the

changes as consistent with their personal goals.changes as consistent with their personal goals.

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Group Dynamic and OBGroup Dynamic and OB

Learning Curve:Learning Curve: The time it takes to achieve optimal efficiency in performing a The time it takes to achieve optimal efficiency in performing a task. When workers repeatedly do a new task, the amount of labor per unit of task. When workers repeatedly do a new task, the amount of labor per unit of output initially decreases according to pattern that can be plotted as a curve on output initially decreases according to pattern that can be plotted as a curve on graph.graph.

Reinforcement:Reinforcement: An inducement to perform in a particular manner. Positive An inducement to perform in a particular manner. Positive reinforcement occurs when an individual receives a desired reward that is reinforcement occurs when an individual receives a desired reward that is contingent upon some prescribed behavior. Negative reinforcement occurs contingent upon some prescribed behavior. Negative reinforcement occurs when an individual works to avoid an undesirable outcome.when an individual works to avoid an undesirable outcome.

Turnover:Turnover: The rate at which employees leave an organization – usually The rate at which employees leave an organization – usually expressed as a percentage of all workers who resign or are fired each year.expressed as a percentage of all workers who resign or are fired each year.

Nepotism:Nepotism: Any practice by which officeholders award positions to members of Any practice by which officeholders award positions to members of their immediate family or friends or relatives.their immediate family or friends or relatives.

Organization Chart:Organization Chart: The visual representation of the structure of an The visual representation of the structure of an organization, usually in the form of a diagram.organization, usually in the form of a diagram.

Groupthink:Groupthink: Blind following to a person at higher rank in work environment or Blind following to a person at higher rank in work environment or organization.organization.

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Formal & Informal Groups in OBFormal & Informal Groups in OB

Formal groups:Formal groups: Groups are officially created Groups are officially created by a larger organization, usually for the by a larger organization, usually for the purpose of accomplishing tasks.purpose of accomplishing tasks.

There are two basic types of formal groups:There are two basic types of formal groups:

1.1. Commanded groups are specified in a formal Commanded groups are specified in a formal organization chart.organization chart.

2.2. Task groups are formally sanctioned job-Task groups are formally sanctioned job-oriented units with short lives.oriented units with short lives.

Informal groups:Informal groups: Groups are made up of Groups are made up of individuals who have spontaneously individuals who have spontaneously developed relationships and pattern of developed relationships and pattern of interactions in work situations.interactions in work situations.

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Organization Development Organization Development (OD)(OD)

Change or Die is the fact that stands behind Change or Die is the fact that stands behind organizational development.organizational development.

OD is planned organizational change as organizations OD is planned organizational change as organizations exist in a dynamic environment both internally and exist in a dynamic environment both internally and externally to which they must respond or become externally to which they must respond or become ineffectual.ineffectual.

OD is not a philosophy. It is an approach or strategy for OD is not a philosophy. It is an approach or strategy for increasing organizational effectiveness.increasing organizational effectiveness.

As a process, it has no value biases , but it is usually As a process, it has no value biases , but it is usually associated with the idea that effectiveness is found by associated with the idea that effectiveness is found by integrating the individual’s desire for growth with integrating the individual’s desire for growth with organizational goals.organizational goals.

There is no universal OD model that can easily plugged There is no universal OD model that can easily plugged into a troubled organization.into a troubled organization.

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Some OD ConceptsSome OD Concepts

Intervention:Intervention: The entering of an outsider into an orgoing system of The entering of an outsider into an orgoing system of relationships, such as a n organization, to help make it perform better.relationships, such as a n organization, to help make it perform better.

Process consultation:Process consultation: The interventionist activities of an organization The interventionist activities of an organization development advisor.development advisor.

Job Enlargement:Job Enlargement: Adding additional but similar duties to a job. Adding additional but similar duties to a job.

Job Enrichment:Job Enrichment: Adding differing kinds of duties so that the work is Adding differing kinds of duties so that the work is both at a higher level and more personally satisfying. both at a higher level and more personally satisfying.

Psychological ownership:Psychological ownership: Emotional involvement with, and Emotional involvement with, and commitment to, an intangible something such as an organizational commitment to, an intangible something such as an organizational reform effort.reform effort.

T-Group:T-Group: It is a training group designed to provide maximum possible It is a training group designed to provide maximum possible opportunity for the individuals to expose their behavior, give and opportunity for the individuals to expose their behavior, give and receive feedbacks, experiment with the new behavior, and develop receive feedbacks, experiment with the new behavior, and develop everlasting awareness and acceptance of self and others.everlasting awareness and acceptance of self and others.

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Hawthorne Studies & OBHawthorne Studies & OB

Studies of Roethlisberger and Studies of Roethlisberger and Mayo (1927 - 1932) of the Mayo (1927 - 1932) of the Hawthorne Plant of the Western Hawthorne Plant of the Western Electric Company in Chicago is Electric Company in Chicago is traditionally a case study which traditionally a case study which has affected the organizational has affected the organizational behavior. behavior.

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Action Plan as a tool of Action Plan as a tool of ODOD Action research involves the following:Action research involves the following:

1.1. Collecting organizational diagnostic data Collecting organizational diagnostic data through written questioners and interviews.through written questioners and interviews.

2.2. Systematically feeding back information to the Systematically feeding back information to the organization members who provided input.organization members who provided input.

3.3. Discussing what the information means to Discussing what the information means to members and its implications for the members and its implications for the organization.organization.

4.4. Jointly developing an improvement planJointly developing an improvement plan5.5. Repeating all of the above as needed.Repeating all of the above as needed.

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Limitations of Bureaucracy & Limitations of Bureaucracy & OBOB

Bureaucracy has many advantages including order, Bureaucracy has many advantages including order, predictability, stability, professionalism, and consistency predictability, stability, professionalism, and consistency but …but …

Bureaucracy lacks responsiveness to changing Bureaucracy lacks responsiveness to changing conditions.conditions.

Bureaucracy is excessive and imposes and tight control.Bureaucracy is excessive and imposes and tight control. Bureaucracy has the seeds of their own incompetence Bureaucracy has the seeds of their own incompetence

(Dysfunctional).(Dysfunctional). Bureaucracy is impersonal and dehumanizing. Bureaucracy is impersonal and dehumanizing.

(please, return back to the attached article about (please, return back to the attached article about bureaucracy on my website).bureaucracy on my website).

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What is Motivation?What is Motivation?

Why do some companies have enthusiastic employees who Why do some companies have enthusiastic employees who work as cohesive, productive teams while other firms suffer work as cohesive, productive teams while other firms suffer

from high rates of dissatisfaction, burnout, and turnover? The from high rates of dissatisfaction, burnout, and turnover? The secret is motivation (Domeyer, 2001, p. 32).secret is motivation (Domeyer, 2001, p. 32).

The word “motivation” comes from the Latin root word The word “motivation” comes from the Latin root word movere, which means “to move” (Nelson, 1996, p.71).movere, which means “to move” (Nelson, 1996, p.71).

Motivation is “the willingness to exert high levels of effort to Motivation is “the willingness to exert high levels of effort to reach organizational goals as conditioned by that effort’s reach organizational goals as conditioned by that effort’s

ability to satisfy some individual need” (Robbins and Coulter, ability to satisfy some individual need” (Robbins and Coulter, 1999, p. 50). 1999, p. 50).

Motivating is the ability to get people to embrace a common Motivating is the ability to get people to embrace a common purpose, to implement a vision, requiring a kind of listening, purpose, to implement a vision, requiring a kind of listening,

to learn what moves people and to communicate in a way to learn what moves people and to communicate in a way that inspires people (Maccoby, 2001, p. 58). that inspires people (Maccoby, 2001, p. 58).

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The Needs Hierarchy TheoryThe Needs Hierarchy Theory

The Needs Hierarchy Theory is The Needs Hierarchy Theory is grounded on:grounded on:

1.1. Physiological needsPhysiological needs2.2. Safety needsSafety needs

3.3. Love or affiliation needsLove or affiliation needs4.4. Esteem needsEsteem needs

5.5. Self-actualizationSelf-actualization

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Herzberg’s Motivation-Hygiene Herzberg’s Motivation-Hygiene TheoryTheory

Herzberg’s motivation-hygiene theory is that intrinsic factors are related Herzberg’s motivation-hygiene theory is that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated to job satisfaction and motivation, whereas extrinsic factors are associated

with job dissatisfaction. with job dissatisfaction.

Motivation factors include (1) responsibility, (2) achievement, (3) Motivation factors include (1) responsibility, (2) achievement, (3) recognition, (4) advancement, and (5) the work itself.recognition, (4) advancement, and (5) the work itself.

These factors relate to the content of the job and what the employee These factors relate to the content of the job and what the employee actually does on the job. actually does on the job.

Motivation factors lead to positive mental health and challenge people to Motivation factors lead to positive mental health and challenge people to grow, contribute to the work environment, and invest themselves in the grow, contribute to the work environment, and invest themselves in the

organization. organization.

The absence of these factors leads to the lack of satisfaction, not to The absence of these factors leads to the lack of satisfaction, not to dissatisfaction. dissatisfaction.

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Herzberg’s Motivation-Hygiene Herzberg’s Motivation-Hygiene TheoryTheory

Herzberg’s motivation-hygiene theory is that intrinsic factors are related Herzberg’s motivation-hygiene theory is that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated to job satisfaction and motivation, whereas extrinsic factors are associated

with job dissatisfaction. with job dissatisfaction.

job dissatisfaction occurs when the hygiene factors are either not present job dissatisfaction occurs when the hygiene factors are either not present or not good enough. The hygiene factors include (1) company policy and or not good enough. The hygiene factors include (1) company policy and

administration, (2) supervision, (3) interpersonal relations with one’s administration, (2) supervision, (3) interpersonal relations with one’s supervisor, (4) working conditions,(5) salary, (6) status, and (7) security. supervisor, (4) working conditions,(5) salary, (6) status, and (7) security.

These factors relate to the context of the job and may be considered These factors relate to the context of the job and may be considered support factors. When hygiene factors are excellent, employees are not support factors. When hygiene factors are excellent, employees are not dissatisfied, and complaints about these contextual considerations are dissatisfied, and complaints about these contextual considerations are

reduced. reduced.

When hygiene factors are poor or absent, the person complains about When hygiene factors are poor or absent, the person complains about “poor supervision,” “poor medical benefits,” or whatever the hygiene “poor supervision,” “poor medical benefits,” or whatever the hygiene

factors is that is poor. Employees experience a deficit and are dissatisfied factors is that is poor. Employees experience a deficit and are dissatisfied when the hygiene factors are not present (Nelson & Quick, p. 75). when the hygiene factors are not present (Nelson & Quick, p. 75).

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Expectancy TheoryExpectancy Theory

It includes variables or elements and relationships:It includes variables or elements and relationships:

1.1. Expectancy or effort-performance linkage is the probability perceived by Expectancy or effort-performance linkage is the probability perceived by the individual that exerting a given amount of effort will lead to a certain the individual that exerting a given amount of effort will lead to a certain level of performance.level of performance.

2.2. Instrumentality or performance-reward linkage is the degree to which the Instrumentality or performance-reward linkage is the degree to which the individual believes that performing at a particular level is instrumental in individual believes that performing at a particular level is instrumental in leading to the attainment of a desired outcome.leading to the attainment of a desired outcome.

3.3. Valence or attractiveness of reward is the importance that the individual Valence or attractiveness of reward is the importance that the individual places on the potential outcome or reward that can be achieved on the places on the potential outcome or reward that can be achieved on the job. Valence considers both the goals and needs of the individual (Nelson job. Valence considers both the goals and needs of the individual (Nelson & Quick, pp. 82-82).& Quick, pp. 82-82).

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Theory X and Theory YTheory X and Theory Y

Douglas McGregor, through his 1960 book Douglas McGregor, through his 1960 book The Human Side of EnterpriseThe Human Side of Enterprise, , talked about the Theory X and Theory Y.talked about the Theory X and Theory Y.

Theory XTheory X is founded on the following assumptions: is founded on the following assumptions:1.1. The average human being has inherent dislike of work.The average human being has inherent dislike of work.2.2. Most people must be coerced or threatened with punishment to get them Most people must be coerced or threatened with punishment to get them

work.work.3.3. People prefer to be directed and wish to avoid responsibility.People prefer to be directed and wish to avoid responsibility.

Theory YTheory Y is founded on the following assumptions: is founded on the following assumptions:1.1. The expenditure of physical and mental effort in work is as natural as play The expenditure of physical and mental effort in work is as natural as play

or rest.or rest.2.2. A person will exercise self-direction and self-control in the services of A person will exercise self-direction and self-control in the services of

objectives to which he is committed.objectives to which he is committed.3.3. Avoidance of responsibility, lack of ambition, and emphasis on security are Avoidance of responsibility, lack of ambition, and emphasis on security are

consequences of experience, not inherent human characteristics.consequences of experience, not inherent human characteristics.4.4. The capacity to exercise a relatively high degree of imagination ingenuity, The capacity to exercise a relatively high degree of imagination ingenuity,

and creativity in the solution of organizational problems is widely and creativity in the solution of organizational problems is widely distributed in the population.distributed in the population.

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Postmodernism & TechnocracyPostmodernism & Technocracy

Postmodernism:Postmodernism: The belief that constant The belief that constant change is a new fact of life for large change is a new fact of life for large organizations that are living on the edge, organizations that are living on the edge, on the boundary, between order and on the boundary, between order and chaos.chaos.

Technocracy:Technocracy: A contraction of “technical” A contraction of “technical” and “bureaucracy,” which refers to the and “bureaucracy,” which refers to the high-tech organizational environments of high-tech organizational environments of the postmodern world.the postmodern world.

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The Core Themes of The Core Themes of PostmodernismPostmodernism

William Bergquist has identified four core themes of William Bergquist has identified four core themes of postmodernism:postmodernism:

1.1. Objectivism versus constructivism:Objectivism versus constructivism: It assumes that there is It assumes that there is an objective reality that can be discovered. Constructivism an objective reality that can be discovered. Constructivism means that human beings construct our social realities and means that human beings construct our social realities and believes.believes.

2.2. Language as a reality:Language as a reality: Language is more than means of Language is more than means of communicating information about reality.communicating information about reality.

3.3. Globalization and segmentalism:Globalization and segmentalism: Our world has become Our world has become progressively more global, while ate the same time progressively more global, while ate the same time becoming progressively more segmented and becoming progressively more segmented and differentiated.differentiated.

4.4. Fragmented and inconsistent images:Fragmented and inconsistent images: Human beings often Human beings often are tricked that they have experienced depth or virtual are tricked that they have experienced depth or virtual reality when in fact they have seen only the surface.reality when in fact they have seen only the surface.

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A Feminist PerspectiveA Feminist Perspective

US Women constituted 24% of all public officials and US Women constituted 24% of all public officials and administration in 1970.administration in 1970.

US Women constituted 59% of all public officials and US Women constituted 59% of all public officials and administration in 1990.administration in 1990.

Research demonstrated that women have different styles and Research demonstrated that women have different styles and techniques in the field of management and administration than techniques in the field of management and administration than men.men.

At least four sets of gendered processes perpetuate the male At least four sets of gendered processes perpetuate the male reality of organization:reality of organization:

1.1. Gender division that produce gender pattering of jobs.Gender division that produce gender pattering of jobs.2.2. Creation of masculine organizational symbols and images.Creation of masculine organizational symbols and images.3.3. Interaction characterized by dominance and subordination.Interaction characterized by dominance and subordination.4.4. The internal mental work of individuals as they consciously The internal mental work of individuals as they consciously

construct their understandings of the organization’s gendered construct their understandings of the organization’s gendered structure of work and demands for gender-appropriate structure of work and demands for gender-appropriate behaviors and attitudes.behaviors and attitudes.

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ReviewReview