Organisation Behaviour ppt.

Introduction to Organizational Behavior

Organizational Behavior - systematic study of the actions and attitudes that people exhibit within organizations

The field of OB seeks to replace intuitive explanations with systematic study

Goals of Organisational Behaviour

Explain, predict, and control human behavior

Why Do We Study OB?

• To learn about yourself and how to deal with others• You are part of an organization now, and will continue to be a part of various organizations• Organizations are increasingly expectingindividuals to be able to work in teams, at leastsome of the time• Some of you may want to be managers orentrepreneurs

What Is an Organization?

A consciously coordinated social unit, composed of a group of people, which functions on a relatively continuous basisto achieve a common goal or set of goals.

Determinants of Employee PerformanceProductivityAbsenteeismTurnover

organizational behaviour is a field of study that investigates the impact that individuals, groups and structure have on behaviour withinorganizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

Systematic study - the use of scientific evidence gathered under controlled conditions and measured and interpreted in a reasonably rigorous manner to attribute cause and effect

Challenges Facing the Workplace

•Organizational Level• Productivity• Developing Effective Employees• Global Competition• Managing in the Global Village Group Level• Working With Others• Workforce DiversityIndividual Level• Job Satisfaction• Empowerment• Behaving Ethically

Psychology seeks to measure,explain,

and change behavior

Sociology studies people in relation to their

fellow human beings

Social psychologyfocuses on the

influence of peopleon one another

Anthropology is the study of societies

to learn about human beings and their activities

Political science is the study of the

behavior of individuals and groups within

a political environment

Contributing DisciplinesContributing Disciplines

Responding to GlobalizationResponding to Globalization

Increased Foreign AssignmentsIncreased Foreign Assignments

Working with People from Different Working with People from Different CulturesCultures

Coping with Anti-Capitalism BacklashCoping with Anti-Capitalism Backlash

Overseeing Movement of Jobs to Overseeing Movement of Jobs to Countries with Low-cost Labor Countries with Low-cost Labor

OB InsightsOB Insights

Improving People SkillsImproving People Skills

Improving Customer ServiceImproving Customer Service

Empowering PeopleEmpowering People

Working in Networked OrganizationsWorking in Networked Organizations

Stimulating Innovation and ChangeStimulating Innovation and Change

Coping with “Temporariness”Coping with “Temporariness”

Helping Employees Balance Work/Life Helping Employees Balance Work/Life ConflictsConflicts

Declining Employee LoyaltyDeclining Employee Loyalty

Improving Ethical BehaviorImproving Ethical Behavior

Definition of LearningDefinition of LearningDefinition of LearningDefinition of Learning

A relatively permanent change A relatively permanent change

in behaviour (or behaviour in behaviour (or behaviour

tendency) that occurs as a tendency) that occurs as a

result of a person’s interaction result of a person’s interaction

with the environmentwith the environment

How Learning Occurs

Classical Conditioning

Bell No Response

Unconditioned Stimulus(Food)

Unconditioned Response(Salivation)

DuringConditioning

Conditioned Stimulus(Bell)

Unconditioned Stimulus

(Food)

Unconditioned Response (Salvation)

Conditioned Response(Salivation)

Conditioned Stimulus(Bell)

Operant Conditioning

Contingencies of Contingencies of ReinforcementReinforcement

Contingencies of Contingencies of ReinforcementReinforcement

Behaviourincreases/maintained

Behaviourdecreases

Consequenceis introduced

Consequenceis removed

PunishmentPunishment

PositivePositivereinforcementreinforcement

ExtinctionExtinction PunishmentPunishment

NegativeNegativereinforcementreinforcement

Noconsequence

Schedules of ReinforcementSchedules of ReinforcementSchedules of ReinforcementSchedules of Reinforcement Behaviours

1 2 3 4 5 6 7 8 9

Continuous

Fixed ratio

Variable ratio

Fixed interval

Time (Days)1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Variable interval

Kolb’s Experiential Learning Kolb’s Experiential Learning ModelModel

Kolb’s Experiential Learning Kolb’s Experiential Learning ModelModel

ConcreteConcreteexperienceexperience

ReflectiveReflectiveobservationobservation

AbstractAbstractconceptualizationconceptualization

ActiveActiveexperimentationexperimentation

Developing a Learning Developing a Learning OrientationOrientation

Developing a Learning Developing a Learning OrientationOrientation

Value the generation of new Value the generation of new knowledgeknowledge

Reward experimentationReward experimentation

Recognize mistakes as part of Recognize mistakes as part of learninglearning

Encourage employees to take Encourage employees to take reasonable risksreasonable risks

Action LearningAction LearningAction LearningAction Learning

Experiential learning in which Experiential learning in which employees are involved in a ‘real, employees are involved in a ‘real, complex and stressful problem’, complex and stressful problem’, usually in teams, with immediate usually in teams, with immediate relevance to the companyrelevance to the company

– Concrete experienceConcrete experience– Learning meetingsLearning meetings– Team conceptualizes and applies a Team conceptualizes and applies a

solution to a problemsolution to a problem

Learning and OB

Stimulus generalization in Organizations

Stimulus discrimination in Organizations

Learning and Training

Learning Through Training

Employee Indiscipline

What is Personality?

Personality DeterminantsHeredityEnvironmentSituationFamilySocial

Personality Traits

The Big Five ModelThe Big Five ModelThe Big Five ModelThe Big Five Model

The Myers-Briggs Type IndicatorThe Myers-Briggs Type IndicatorThe Myers-Briggs Type IndicatorThe Myers-Briggs Type Indicator

Personality Types

• Extroverted or Introverted (E or I)

• Sensing or Intuitive (S or N)

• Thinking or Feeling (T or F)

• Perceiving or Judging (P or J)

Personality Types

• Extroverted or Introverted (E or I)

• Sensing or Intuitive (S or N)

• Thinking or Feeling (T or F)

• Perceiving or Judging (P or J)

Authoritarianism

Locus of Control

Machiavellism

Introversion Extroversion

AchievementOrientation

Self - Esteem

Risk -Taking

Self - Monitoring

Type A Type BPersonality

OTHER PERSONALITY TRAITS

PersonalityTraits

Major Personality Attributes Influencing OBMajor Personality Attributes Influencing OBMajor Personality Attributes Influencing OBMajor Personality Attributes Influencing OB

Locus of controlLocus of control

MachiavellianismMachiavellianism

Self-esteemSelf-esteem

Self-monitoringSelf-monitoring

Propensity for risk takingPropensity for risk taking

Type A personalityType A personality

Locus of ControlLocus of ControlLocus of ControlLocus of Control

MachiavellianismMachiavellianismMachiavellianismMachiavellianism

Conditions Favoring High Machs

• Direct interaction

• Minimal rules and regulations

• Distracting emotions

Conditions Favoring High Machs

• Direct interaction

• Minimal rules and regulations

• Distracting emotions

Self-Esteem and Self-MonitoringSelf-Esteem and Self-MonitoringSelf-Esteem and Self-MonitoringSelf-Esteem and Self-Monitoring

Risk-TakingRisk-TakingRisk-TakingRisk-TakingHigh Risk-taking ManagersHigh Risk-taking Managers– Make quicker decisions.Make quicker decisions.– Use less information to make decisions.Use less information to make decisions.– Operate in smaller and more entrepreneurial Operate in smaller and more entrepreneurial

organizations.organizations.

Low Risk-taking ManagersLow Risk-taking Managers– Are slower to make decisions.Are slower to make decisions.– Require more information before making decisions.Require more information before making decisions.– Exist in larger organizations with stable environments.Exist in larger organizations with stable environments.

Risk PropensityRisk Propensity– Aligning managers’ risk-taking propensity to job Aligning managers’ risk-taking propensity to job

requirements should be beneficial to organizations.requirements should be beneficial to organizations.

Personality TypesPersonality TypesPersonality TypesPersonality Types

Achieving Personality-Job FitAchieving Personality-Job FitAchieving Personality-Job FitAchieving Personality-Job Fit

Holland’s Holland’s Typology of Typology of PersonalityPersonality

andandCongruent Congruent OccupationOccupation

ss


andandCongruent Congruent OccupationOccupation

ss

OB Applications of Understanding EmotionsOB Applications of Understanding EmotionsOB Applications of Understanding EmotionsOB Applications of Understanding Emotions

Ability and SelectionAbility and Selection– Emotions affect employee effectiveness.Emotions affect employee effectiveness.

Decision MakingDecision Making– Emotions are an important part of the Emotions are an important part of the

decision-making process in organizations.decision-making process in organizations.

MotivationMotivation– Emotional commitment to work and high Emotional commitment to work and high

motivation are strongly linked.motivation are strongly linked.

LeadershipLeadership– Emotions are important to acceptance of Emotions are important to acceptance of

messages from organizational leaders.messages from organizational leaders.

OB Applications of Understanding EmotionsOB Applications of Understanding EmotionsOB Applications of Understanding EmotionsOB Applications of Understanding Emotions

Interpersonal ConflictInterpersonal Conflict– Conflict in the workplace and individual Conflict in the workplace and individual

emotions are strongly intertwined.emotions are strongly intertwined.

Deviant Workplace BehaviorsDeviant Workplace Behaviors– Negative emotions can lead to employee Negative emotions can lead to employee

deviance in the form of actions that violate deviance in the form of actions that violate established norms and threaten the established norms and threaten the organization and its members.organization and its members.

Productivity failuresProductivity failures

Property theft and destructionProperty theft and destruction

Political actionsPolitical actions

Personal aggressionPersonal aggression

Defining MotivationDefining MotivationDefining MotivationDefining Motivation

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Key Elements

1. Intensity: how hard a person tries

2. Direction: toward beneficial goal

3. Persistence: how long a person tries

Challenges of Motivating Challenges of Motivating EmployeesEmployees

Challenges of Motivating Challenges of Motivating EmployeesEmployees

Changing workforceChanging workforce– Younger employees have different Younger employees have different

needsneeds– Diverse workforce Diverse workforce

Layoffs, restructuringLayoffs, restructuring– Damaged trust, commitmentDamaged trust, commitment

Flatter organizationsFlatter organizations– Fewer supervisors to monitor Fewer supervisors to monitor

performanceperformance

Needs HierarchyTheory

Needs Hierarchy TheoryNeeds Hierarchy TheoryNeeds Hierarchy TheoryNeeds Hierarchy Theory

Self-Actualization

EsteemEsteem

BelongingnessBelongingness

SafetySafety

PhysiologicalPhysiological

Maslow arranged five Maslow arranged five needs in a hierarchyneeds in a hierarchySatisfaction-progression Satisfaction-progression processprocessPeople who experience People who experience self-actualization desire self-actualization desire more rather than less of this more rather than less of this needneedNot much support for Not much support for Maslow’s theoryMaslow’s theory

Theory X and Theory Y (Douglas McGregor)Theory X and Theory Y (Douglas McGregor)Theory X and Theory Y (Douglas McGregor)Theory X and Theory Y (Douglas McGregor)


and Congruent and Congruent OccupationsOccupations

Two-Factor Theory (Frederick Herzberg)Two-Factor Theory (Frederick Herzberg)Two-Factor Theory (Frederick Herzberg)Two-Factor Theory (Frederick Herzberg)

Comparison of Comparison of Satisfiers and Satisfiers and DissatisfiersDissatisfiers

Comparison of Comparison of Satisfiers and Satisfiers and DissatisfiersDissatisfiers

Factors characterizing events on the job that led to extreme job dissatisfaction

Factors characterizing events on the job that led to extreme job satisfaction

Contrasting Views of SatisfactionContrasting Views of Satisfactionand Dissatisfactionand Dissatisfaction

Contrasting Views of SatisfactionContrasting Views of Satisfactionand Dissatisfactionand Dissatisfaction

Presence Absence

ERGTheory

Needs HierarchyTheory

ERG Theory ( Alderfer)ERG Theory ( Alderfer)ERG Theory ( Alderfer)ERG Theory ( Alderfer)

Self-Actualization

EsteemEsteem

BelongingnessBelongingness

SafetySafety

PhysiologicalPhysiological

Growth

RelatednessRelatedness

ExistenceExistence

Alderfer’s model has Alderfer’s model has three sets of needsthree sets of needs

Adds frustration-Adds frustration-regression process to regression process to Maslow’s modelMaslow’s model

Somewhat more Somewhat more research support than research support than Maslow’s theoryMaslow’s theory

Innate Drives TheoryInnate Drives TheoryInnate Drives TheoryInnate Drives Theory

Drive to BondDrive to Bond

Drive to LearnDrive to Learn

• Need to form relationships and social commitments• Basis of social identity

• Need to satisfy curiosity and resolve conflicting information• Basis of self-actualization

Drive to DefendDrive to Defend• Need to protect ourselves• A reactive (not proactive) drive• Basis of fight or flight

Drive to AcquireDrive to Acquire• Need to take/keep objects and experiences• Basis of hierarchy and status

Innate Drives and MotivationInnate Drives and MotivationInnate Drives and MotivationInnate Drives and Motivation

Emotional brain centre relies on Emotional brain centre relies on innate drives to assign emotional innate drives to assign emotional markers to incoming informationmarkers to incoming information

Emotional markers influence Emotional markers influence rational thoughts and become the rational thoughts and become the conscious sources of motivationconscious sources of motivation

Learned Needs TheoryLearned Needs TheoryLearned Needs TheoryLearned Needs Theory

Some needs are learned, not innateSome needs are learned, not innateNeed for achievementNeed for achievement– desire for challenging and somewhat risky desire for challenging and somewhat risky

goals, feedback, recognitiongoals, feedback, recognition

Need for affiliationNeed for affiliation– desire to seek approval, conform, and avoid desire to seek approval, conform, and avoid

conflict conflict – try to project a favourable self-imagetry to project a favourable self-image

Need for powerNeed for power– desire to control one’s environmentdesire to control one’s environment– personalized versus socialized powerpersonalized versus socialized power

Implications of Needs-based Implications of Needs-based TheoriesTheories

Implications of Needs-based Implications of Needs-based TheoriesTheories

Organizations need to support Organizations need to support employees to achieve a balance of employees to achieve a balance of their innate needstheir innate needsPeople have different needs at People have different needs at different timesdifferent timesOffer employees a choice of Offer employees a choice of rewardsrewardsDo not rely too heavily on financial Do not rely too heavily on financial rewardsrewards

Expectancy TheoryExpectancy TheoryExpectancy TheoryExpectancy Theory

Expectancy Theory in Expectancy Theory in PracticePractice

Expectancy Theory in Expectancy Theory in PracticePractice

Increasing the E-to-P expectancyIncreasing the E-to-P expectancy– training, selection, resources, clarify roles, training, selection, resources, clarify roles,

provide coaching and feedbackprovide coaching and feedback

Increasing the P-to-O expectancyIncreasing the P-to-O expectancy– Measure performance accurately, clarify Measure performance accurately, clarify

outcomes, explain how rewards are based outcomes, explain how rewards are based on past performance, provide exampleson past performance, provide examples

Increasing outcome valencesIncreasing outcome valences– Use valued rewards, individualize rewards, Use valued rewards, individualize rewards,

minimize countervalent outcomesminimize countervalent outcomes

Effective Goal SettingEffective Goal SettingEffective Goal SettingEffective Goal Setting

SpecificSpecific

RelevantRelevant

ChallengingChallengingTaskTaskEffortEffort

TaskTaskPerformancePerformance

FeedbackFeedback

ParticipationParticipation

CommitmentCommitment

Characteristics of Effective Characteristics of Effective FeedbackFeedback

Characteristics of Effective Characteristics of Effective FeedbackFeedback

EffectiveEffectiveFeedbackFeedback

SpecificSpecific

RelevantRelevant

TimelyTimely

CredibleCredible

SufficientlySufficientlyfrequentfrequent

Multisource (360-degree) Multisource (360-degree) FeedbackFeedback

Multisource (360-degree) Multisource (360-degree) FeedbackFeedback

EvaluatedEmployee

Co-workerCo-worker

CustomerCustomer

SubordinateSubordinate

ProjectProjectleaderleader

SupervisorSupervisor

Co-workerCo-worker



What Is Perception, and Why Is It Important?What Is Perception, and Why Is It Important?What Is Perception, and Why Is It Important?What Is Perception, and Why Is It Important?

•People’s behavior is People’s behavior is based on their based on their perception of what perception of what reality is, not on reality is, not on reality itself.reality itself.

•The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important.important.

•People’s behavior is People’s behavior is based on their based on their perception of what perception of what reality is, not on reality is, not on reality itself.reality itself.

•The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important.important.

Emotions andEmotions andBehavioursBehaviours

Organization andOrganization andInterpretationInterpretation

Selective AttentionSelective Attention

Perceptual Process ModelPerceptual Process ModelPerceptual Process ModelPerceptual Process Model

Feeling Hearing Seeing Smelling TastingFeeling Hearing Seeing Smelling Tasting

Environmental StimuliEnvironmental Stimuli

Selective AttentionSelective AttentionSelective AttentionSelective Attention

Characteristics of the objectCharacteristics of the object– size, intensity, motion, repetition, size, intensity, motion, repetition,

noveltynovelty

Perceptual contextPerceptual context

Characteristics of the perceiverCharacteristics of the perceiver– attitudesattitudes– perceptual defenseperceptual defense– expectations -- condition us to expect expectations -- condition us to expect

events events

Factors ThatFactors ThatInfluence Influence

PerceptionPerception

Factors ThatFactors ThatInfluence Influence

PerceptionPerception

E X H I B I T 5-1

Person Perception: Making Judgments About Person Perception: Making Judgments About OthersOthers

Person Perception: Making Judgments About Person Perception: Making Judgments About OthersOthers

Distinctiveness: shows different behaviors in different situations.

Consensus: response is the same as others to same situation.

Consistency: responds in the same way over time.

Distinctiveness: shows different behaviors in different situations.

Consensus: response is the same as others to same situation.

Consistency: responds in the same way over time.

Attribution TheoryAttribution TheoryAttribution TheoryAttribution Theory

Errors and Biases in AttributionsErrors and Biases in AttributionsErrors and Biases in AttributionsErrors and Biases in Attributions

Errors and Biases in Attributions (cont’d)Errors and Biases in Attributions (cont’d)Errors and Biases in Attributions (cont’d)Errors and Biases in Attributions (cont’d)

Errors and Biases in AttributionsErrors and Biases in AttributionsErrors and Biases in AttributionsErrors and Biases in Attributions

Frequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging Others

StereotypingStereotypingStereotypingStereotyping

Process of assigning traits to people based on their Process of assigning traits to people based on their membership in a social categorymembership in a social category

– Categorical thinkingCategorical thinking

– Strong need to understand and anticipate others’ behaviourStrong need to understand and anticipate others’ behaviour

– Enhances our self-perception and social identityEnhances our self-perception and social identity

Minimizing Stereotyping BiasesMinimizing Stereotyping BiasesMinimizing Stereotyping BiasesMinimizing Stereotyping Biases

Diversity awareness trainingDiversity awareness training

– educate employees about the benefits of diversity and educate employees about the benefits of diversity and dispel mythsdispel myths

Meaningful interactionMeaningful interaction

– Contact hypothesisContact hypothesis

Decision-making accountabilityDecision-making accountability

– use objective criteria in decision-makinguse objective criteria in decision-making

Specific Applications in OrganizationsSpecific Applications in OrganizationsSpecific Applications in OrganizationsSpecific Applications in Organizations

Employment InterviewEmployment Interview– Perceptual biases affect the accuracy of interviewers’ Perceptual biases affect the accuracy of interviewers’

judgments of applicants.judgments of applicants.

Performance ExpectationsPerformance Expectations– Self-fulfilling prophecy (Self-fulfilling prophecy (pygmalion effectpygmalion effect): The lower or ): The lower or

higher performance of employees reflects preconceived higher performance of employees reflects preconceived leader expectations about employee capabilities.leader expectations about employee capabilities.

Performance EvaluationsPerformance Evaluations– Appraisals are subjective perceptions of performance.Appraisals are subjective perceptions of performance.

Employee EffortEmployee Effort– Assessment of individual effort is a subjective judgment Assessment of individual effort is a subjective judgment

subject to perceptual distortion and bias.subject to perceptual distortion and bias.

Other Perceptual ErrorsOther Perceptual ErrorsOther Perceptual ErrorsOther Perceptual Errors

PrimacyPrimacy– first impressionsfirst impressions

RecencyRecency– most recent information dominates most recent information dominates

perceptionsperceptions

HaloHalo– one trait forms a general impressionone trait forms a general impression

ProjectionProjection– believing other people are similar to believing other people are similar to

youyou

Improving PerceptionsImproving PerceptionsImproving PerceptionsImproving Perceptions

EmpathyEmpathy– Sensitivity to the feelings, thoughts, Sensitivity to the feelings, thoughts,

and situation of othersand situation of others– Cognitive and emotional componentCognitive and emotional component

Self-awarenessSelf-awareness– Awareness of your values, beliefs and Awareness of your values, beliefs and

prejudicesprejudices– Applying Johari WindowApplying Johari Window

Conflict DefinedConflict DefinedConflict DefinedConflict Defined

The process in which one party The process in which one party

perceives that its interests are being perceives that its interests are being

opposed or negatively affected by opposed or negatively affected by

another party.another party.

ConflictConflict

The Conflict ProcessThe Conflict ProcessThe Conflict ProcessThe Conflict Process

Sources ofSources ofConflictConflict

ManifestManifestConflictConflict

ConflictConflictOutcomesOutcomes

ConflictPerceptions

ConflictEmotions

Conflict Escalation Cycle

Task vs. Socioemotional Task vs. Socioemotional ConflictConflict

Task vs. Socioemotional Task vs. Socioemotional ConflictConflict

Task-related conflictTask-related conflict– Conflict is aimed at issue, not partiesConflict is aimed at issue, not parties– Helps recognize problems, identify Helps recognize problems, identify

solutions, and understand the issues solutions, and understand the issues betterbetter

– Potentially healthy and valuablePotentially healthy and valuable

Socioemotional conflictSocioemotional conflict– Conflict viewed as a personal attackConflict viewed as a personal attack– Introduces perceptual biasesIntroduces perceptual biases– Distorts information processingDistorts information processing

Organizational Conflict Organizational Conflict OutcomesOutcomes


Conflict ManagementConflict Management– Interventions that alter the level and Interventions that alter the level and

form of conflict for organizational form of conflict for organizational effectivenesseffectiveness

Constructive ConflictConstructive Conflict– Encourages people to learn about Encourages people to learn about

other points of viewother points of view



Potential benefitsPotential benefits– Improves decision makingImproves decision making– Strengthens team dynamicsStrengthens team dynamics

Dysfunctional outcomesDysfunctional outcomes– Diverts energy and resourcesDiverts energy and resources– Weakens knowledge management Weakens knowledge management – Increases frustration, job Increases frustration, job

dissatisfaction, stress, turnover and dissatisfaction, stress, turnover and absenteeismabsenteeism

Sources of ConflictSources of ConflictSources of ConflictSources of Conflict

DifferentiationDifferentiation

Task Task InterdependenceInterdependence

• Different values/beliefs• Explains cross-cultural and

generational conflict

• Conflict increases with interdependence

• Higher risk that parties interfere with each other

IncompatibleIncompatibleGoalsGoals

• One party’s goals perceived to interfere with other’s goals

more

Sources of Conflict Sources of Conflict (con’t)(con’t)Sources of Conflict Sources of Conflict (con’t)(con’t)

Ambiguous RulesAmbiguous Rules

Communication Communication ProblemsProblems

• Creates uncertainty, threatens goals• Without rules, people rely on politics

• Increases stereotyping • Reduces motivation to communicate• Escalates conflict when arrogant

Scarce Scarce ResourcesResources

• Motivates competition for the resource

Ass

erti

ven

ess

Cooperativeness

ForcingForcing Problem-SolvingProblem-Solving

CompromisingCompromising

AvoidingAvoiding YieldingYielding

High

Low High

Conflict Management StylesConflict Management StylesConflict Management StylesConflict Management Styles

Conflict resolutionConflict resolutionEmphasizing Superordinate GoalsEmphasizing Superordinate Goals Emphasizing common objectives rather than conflicting sub-goalsEmphasizing common objectives rather than conflicting sub-goals

Reduces goal incompatibility and differentiationReduces goal incompatibility and differentiation

Reducing DifferentiationReducing DifferentiationRemove sources of different values and beliefsRemove sources of different values and beliefs

Move employees around to different jobs, departments, and regionsMove employees around to different jobs, departments, and regions

Other ways to reduce differentiation:Other ways to reduce differentiation:– Common dress code/statusCommon dress code/status– Common work experienceCommon work experience

Better Communication/UnderstandingBetter Communication/UnderstandingEmployees understand and appreciate each other’s views through Employees understand and appreciate each other’s views through

communicationcommunication

– Informal gatheringsInformal gatherings

– Formal dialogue sessionsFormal dialogue sessions

– Teambuilding activitiesTeambuilding activities

Other Ways to Manage ConflictOther Ways to Manage Conflict

Reduce Task InterdependenceReduce Task Interdependence– Dividing shared resourcesDividing shared resources– Combine tasksCombine tasks– Use buffersUse buffers

Increase ResourcesIncrease Resources– Duplicate resourcesDuplicate resources

Clarify Rules and ProceduresClarify Rules and Procedures– Clarify resource distributionClarify resource distribution– Change interdependenceChange interdependence

Situational Influences on Situational Influences on NegotiationNegotiation

Situational Influences on Situational Influences on NegotiationNegotiation

LocationLocation

Physical Physical SettingSetting

Time Passage Time Passage and Deadlinesand Deadlines

AudienceAudience

Effective Negotiator Effective Negotiator BehavioursBehaviours

Effective Negotiator Effective Negotiator BehavioursBehaviours

Preparation and Preparation and Goal SettingGoal Setting

Gathering Gathering InformationInformation

Communicating Communicating EffectivelyEffectively

Making ConcessionsMaking Concessions

Types of Third Party Types of Third Party InterventionIntervention

Types of Third Party Types of Third Party InterventionIntervention

MediationMediation

ArbitrationArbitration

InquisitionInquisition

Level ofProcess Control

Level of Outcome Control

High

HighLow

Organizational Culture DefinedOrganizational Culture DefinedOrganizational Culture DefinedOrganizational Culture Defined

The basic pattern of shared assumptions, The basic pattern of shared assumptions,

values, and beliefs considered to be the values, and beliefs considered to be the

correct way of thinking about and acting correct way of thinking about and acting

on problems and opportunities facing the on problems and opportunities facing the

organization.organization.

The Basic Functions of The Basic Functions of Organizational CultureOrganizational Culture

OrganizationalCulture/basic functions

Provides asense of

identity formembers

Enhancescommitment

to the organization’s

mission

Clairifiesand

reinforcesstandards

of behavior

What Is Organizational Culture? What Is Organizational Culture? What Is Organizational Culture? What Is Organizational Culture?

What Is Organizational Culture? What Is Organizational Culture? What Is Organizational Culture? What Is Organizational Culture?

Culture Versus FormalizationCulture Versus Formalization– A strong culture increases behavioral A strong culture increases behavioral

consistency and can act as a substitute consistency and can act as a substitute for formalization.for formalization.

Organizational Culture Versus National Organizational Culture Versus National CultureCulture– National culture has a greater impact on National culture has a greater impact on

employees than does their organization’s employees than does their organization’s culture.culture.

– Nationals selected to work for foreign Nationals selected to work for foreign companies may be atypical of the companies may be atypical of the local/native population.local/native population.

What Do Cultures Do?What Do Cultures Do?What Do Cultures Do?What Do Cultures Do?

Culture’s Functions:

1. Defines the boundary between one organization and others.

2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to something larger than self-interest.

4. Enhances the stability of the social system.

Culture’s Functions:

1. Defines the boundary between one organization and others.

2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to something larger than self-interest.

4. Enhances the stability of the social system.

What Do Cultures Do?What Do Cultures Do?What Do Cultures Do?What Do Cultures Do?

Culture as a Liability:

1. Barrier to change

2. Barrier to diversity

3. Barrier to acquisitions and mergers

Culture as a Liability:

1. Barrier to change

2. Barrier to diversity

3. Barrier to acquisitions and mergers

Core Organizational Values Core Organizational Values Reflected in CultureReflected in Culture

•Sensitivity to needs of customers and employees

•Freedom to initiate new ideas

•Willingness to tolerate taking risks

•Openness to communication options

Physical StructuresPhysical Structures

LanguageLanguage

Rituals and Rituals and

CeremoniesCeremonies

Stories and LegendsStories and Legends

BeliefsBeliefs

ValuesValues

AssumptionsAssumptions

Artifacts ofOrganizationalCulture

OrganizationalOrganizationalCultureCulture

Elements of Organizational Elements of Organizational CultureCulture

Elements of Organizational Elements of Organizational CultureCulture

Artifacts: Stories and LegendsArtifacts: Stories and LegendsArtifacts: Stories and LegendsArtifacts: Stories and Legends

Social prescriptions of desired Social prescriptions of desired (undesired) behaviour(undesired) behaviour

Provides a realistic human side to Provides a realistic human side to expectationsexpectations

Most effective stories and legends:Most effective stories and legends:– Describe real people Describe real people – Assumed to be trueAssumed to be true– Known throughout the organizationKnown throughout the organization– Are prescriptiveAre prescriptive

Artifacts: Rituals and Artifacts: Rituals and CeremoniesCeremonies

Artifacts: Rituals and Artifacts: Rituals and CeremoniesCeremonies

RitualsRituals– programmed routines programmed routines – (eg., how visitors are greeted)(eg., how visitors are greeted)

CeremoniesCeremonies– planned activities for an audienceplanned activities for an audience– (eg., award ceremonies)(eg., award ceremonies)

Artifacts: Organizational Artifacts: Organizational LanguageLanguage

Artifacts: Organizational Artifacts: Organizational LanguageLanguage

Words used to address people, Words used to address people, describe customers, etc.describe customers, etc.

Leaders use phrases and special Leaders use phrases and special vocabulary as cultural symbols vocabulary as cultural symbols – eg. Container Store’s “Being Gumby”eg. Container Store’s “Being Gumby”

Language also found in subculturesLanguage also found in subcultures– eg. Whirlpool’s “PowerPoint culture”eg. Whirlpool’s “PowerPoint culture”

Artifacts: Physical Structures and Artifacts: Physical Structures and SymbolsSymbols

Artifacts: Physical Structures and Artifacts: Physical Structures and SymbolsSymbols

Building structure -- may shape Building structure -- may shape and reflect cultureand reflect culture

Office design conveys cultural Office design conveys cultural meaningmeaning– Furniture, office size, wall hangingsFurniture, office size, wall hangings

Organizational CultureOrganizational Culture Organizational CultureOrganizational Culture

The Process of InnovationThe Process of Innovation

Stage 1

Settingthe

Agenda

Stage 2

Settingthe

Stage

Stage 3

Producingthe

Ideas

Stage 4

Testing andImplementing

the Ideas

Stage 5

OutcomeAssessment

End

EndSuccess

Failure

Progress

Motivation

Individualor Team

Productivity

Resources

Skills

Creating a Customer-Responsive CultureCreating a Customer-Responsive CultureCreating a Customer-Responsive CultureCreating a Customer-Responsive Culture

Managerial Actions:

• Select new employees with personality and attitudes consistent with high service orientation.

• Train and socialize current employees to be more customer focused.

• Change organizational structure to give employees more control.

• Empower employees to make decision about their jobs.

Managerial Actions:

• Select new employees with personality and attitudes consistent with high service orientation.

• Train and socialize current employees to be more customer focused.

• Change organizational structure to give employees more control.

• Empower employees to make decision about their jobs.

Creating a Customer-Responsive CultureCreating a Customer-Responsive CultureCreating a Customer-Responsive CultureCreating a Customer-Responsive Culture

Managerial Actions (cont’d) :

• Lead by conveying a customer-focused vision and demonstrating commitment to customers.

• Conduct performance appraisals based on customer-focused employee behaviors.

• Provide ongoing recognition for employees who make special efforts to please customers.

Managerial Actions (cont’d) :

• Lead by conveying a customer-focused vision and demonstrating commitment to customers.

• Conduct performance appraisals based on customer-focused employee behaviors.

• Provide ongoing recognition for employees who make special efforts to please customers.

Keeping Culture AliveKeeping Culture AliveKeeping Culture AliveKeeping Culture AliveSelectionSelection– Concerned with how well the candidates Concerned with how well the candidates

will fit into the organization.will fit into the organization.– Provides information to candidates about Provides information to candidates about

the organization.the organization.

Top ManagementTop Management– Senior executives help establish behavioral Senior executives help establish behavioral

norms that are adopted by the norms that are adopted by the organization.organization.

SocializationSocialization– The process that helps new employees The process that helps new employees

adapt to the organization’s culture.adapt to the organization’s culture.

Stages in the Socialization ProcessStages in the Socialization ProcessStages in the Socialization ProcessStages in the Socialization Process

How Organization Cultures FormHow Organization Cultures FormHow Organization Cultures FormHow Organization Cultures Form

How Employees Learn CultureHow Employees Learn CultureHow Employees Learn CultureHow Employees Learn Culture

• Stories

• Rituals

• Material Symbols

• Language

• Stories

• Rituals

• Material Symbols

• Language

Spirituality and Organizational CultureSpirituality and Organizational CultureSpirituality and Organizational CultureSpirituality and Organizational Culture

Characteristics:• Strong sense of

purpose

• Focus on individual development

• Trust and openness

• Employee empowerment

• Toleration of employee expression

Characteristics:• Strong sense of

purpose

• Focus on individual development

• Trust and openness

• Employee empowerment

• Toleration of employee expression

““Vulnerable Sensitive. Honest about your weakness. Vulnerable Sensitive. Honest about your weakness. Just the qualities you need to be a strong leader”.Just the qualities you need to be a strong leader”.Consider leading softly is more effective than armour Consider leading softly is more effective than armour plated command and control.plated command and control.

Harvard Business ReviewHarvard Business Review““Failing Organisations are usually over-managed and Failing Organisations are usually over-managed and

under-led”. under-led”. Warren G BennisWarren G BennisToday’s Presentation is aimed at:Today’s Presentation is aimed at:

Discussing the necessity of leadership.Discussing the necessity of leadership.Understanding and finding implications of different Understanding and finding implications of different leadership styles.leadership styles.Identifying differences between Manager and Leader.Identifying differences between Manager and Leader.Theories of leadership.Theories of leadership.

““Leadership is the ability to persuade others to seek Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards which binds a group together and motivates it towards goals”. goals”. Keith DavisKeith Davis““Leadership is the art or process of influencing people so Leadership is the art or process of influencing people so that they will strive willingly and enthusiastically towards that they will strive willingly and enthusiastically towards the achievement of group goals”.the achievement of group goals”. KoontzKoontz““Leadership is the quality of behaviour of individuals Leadership is the quality of behaviour of individuals whereby they guide people or their activities in organising whereby they guide people or their activities in organising efforts”.efforts”. Chester BarnardChester Barnard

It implies:It implies:– It is a continuous process.It is a continuous process.– Essentially a process of influencing.Essentially a process of influencing.– Basically a personal quality.Basically a personal quality.– A continuous motivation process.A continuous motivation process.– Functioning of a common goals determines leader follower relationship.Functioning of a common goals determines leader follower relationship.

NECESSITYNECESSITY

Motivating Employees.Motivating Employees.

Creating Confidence.Creating Confidence.

Building Morale.Building Morale.

Developing Team Work.Developing Team Work.

Securing Group Effectiveness.Securing Group Effectiveness.

Counselling People.Counselling People.

STYLES OF LEADERSHIPSTYLES OF LEADERSHIP

Autocratic LeadershipAutocratic LeadershipParticipative LeadershipParticipative LeadershipFree-rein LeadershipFree-rein Leadership

Autocratic LeadershipAutocratic Leadership

Authoritarian, directive or nomothetic style.Authoritarian, directive or nomothetic style.Ultra-utilization of power.Ultra-utilization of power.Result may be negative leadership.Result may be negative leadership.

Types of Autocratic LeadershipTypes of Autocratic Leadership

Strict AutocratStrict AutocratBenevolent AutocratBenevolent AutocratIncompetent AutocratIncompetent Autocrat

Participative LeadershipParticipative Leadership

Democratic, consultative or ideographic style.Democratic, consultative or ideographic style.

Team building and goal sharing.Team building and goal sharing.

Consultation and participation of subordinates.Consultation and participation of subordinates.

Decentralised decision - making process.Decentralised decision - making process.

Free-rein LeadershipFree-rein Leadership

Super democratic style.Super democratic style.

Policy of no intervention.Policy of no intervention.

Manager’s only contribution in framing policy Manager’s only contribution in framing policy programmes and limitation.programmes and limitation.

Manager only maintains a contact.Manager only maintains a contact.

Leadership TheoriesLeadership TheoriesTrait Theories.Trait Theories.

Behavioural Theories.Behavioural Theories.

Contingency Theories.Contingency Theories.

Situational Theories.Situational Theories.

LMX Theory.LMX Theory.

Leadership-participation Theory.Leadership-participation Theory.

Path-Goal Theory.Path-Goal Theory.

LEADERSHIP AS A CONTINUUMLEADERSHIP AS A CONTINUUM

Leadership in a practical world is between two Leadership in a practical world is between two extremes of autocratic and free-rein.extremes of autocratic and free-rein.Tannenbaum and Schmidt proposed a continuum Tannenbaum and Schmidt proposed a continuum moving from authoritarian leadership behaviour to moving from authoritarian leadership behaviour to free-rein.free-rein.

Manager takes decisions and

announces

Manager presents ideas and invities suggestions

Manager presents problems, gets

suggestions and makes decisions

Manager permits subordinates of

function within limits defined by superior

Manager sells decisions

Manager presents tentative decision subject to change

Manager defines limits, asks groups to

make decision

Use of authority by the Manager

Area of freedom for subordinates

Autocratic

(boss centered leadership)

Free-rein

(subordinate centered leadership)

DIFFERENCES BETWEEN MANAGER DIFFERENCES BETWEEN MANAGER AND LEADERAND LEADER

““Managers are people who do things right, and leaders are Managers are people who do things right, and leaders are people who do the right thing. Management’s efficiency lies people who do the right thing. Management’s efficiency lies

in climbing the ladder of success, leadership determines in climbing the ladder of success, leadership determines whether the ladder s leaning against the right wall”.whether the ladder s leaning against the right wall”.

Warren Bennis and Burt NanusWarren Bennis and Burt NanusLEADERSHIP MANAGEMENT

1. Leader leads people.2. Leader can use his/her

informal influence.

3. Leaders create a vision andinspire others to achieve thisvision.

4. Leader processes non-sanctioned influences ability.

5. Leader inspires enthusiasm.

1. Manager manages things.2. Managers hold formal

position.

3. Managers achieve results bydirecting the activities ofothers.

4. Manager enjoys formaldesignated authority.

5. Manager engenders fear.

Way to Effective LeadershipWay to Effective LeadershipFinding the Leader in YouFinding the Leader in You Starting to CommunicateStarting to Communicate Motivating PeopleMotivating People Expressing Genuine Interest in othersExpressing Genuine Interest in others Seeing Things from the Other Person’s point of viewSeeing Things from the Other Person’s point of view Listening to LearnListening to Learn Teaming up for TomorrowTeaming up for Tomorrow Respecting the dignity of othersRespecting the dignity of others Recognition, Praise, and RewardsRecognition, Praise, and Rewards Handling Mistakes, Complaints, and CriticismHandling Mistakes, Complaints, and Criticism Setting GoalsSetting Goals Focus and DisciplineFocus and DisciplineAchieving BalanceAchieving BalanceCreating a Positive Mental AttitudeCreating a Positive Mental AttitudeLearningnot to worryLearningnot to worryThe Power of EnthusiasmThe Power of Enthusiasm

Organisational ChangeOrganisational Change““Organisational Change is the process by which Organisational Change is the process by which organisations move from their present state to some organisations move from their present state to some desired future state to increase their effectiveness”desired future state to increase their effectiveness”

Gareth. R. JonesGareth. R. Jones

Sources of Change

Org Level ForcesOrg structure

Org CultureionOrg Strategy &

Over Determination

Individual Level ForcesCognitive Biases

UncertaintyFear of Loss

Selective PerceptionHabit

Logical Reasons

Group level ForcesGroup Norms

Group CohesivenessGroupthink

Sub Unit Level ForcesDifferences in Orientation

Power & Conflict

Planned & Unplanned ChangePlanned & Unplanned ChangePlanned change are the activities that are Planned change are the activities that are intentional and goal oriented intentional and goal oriented

First order change – Linear and ContinuousFirst order change – Linear and Continuous

Second order change – that is multidimensionalSecond order change – that is multidimensional

multilevel, continuous and radicalmultilevel, continuous and radical

Change Agents: Can be managers or non Change Agents: Can be managers or non managers, employees or consultantsmanagers, employees or consultants

Change agents can change structure, Change agents can change structure, technology, physical setting and peopletechnology, physical setting and people

DesiredConditions

CurrentConditions

BeforeChange

AfterChange

DrivingForces

RestrainingForces

Force Field Analysis ModelForce Field Analysis Model

DuringChange

DrivingForces

RestrainingForces Driving

Forces

RestrainingForces

Forces forForces forChangeChangeForces forForces forChangeChange

Resistance to ChangeResistance to Change

Nature of the WorkforceNature of the Workforce

TechnologyTechnology

Economic ShocksEconomic Shocks

CompetitionCompetition

Social TrendsSocial Trends

World PoliticsWorld Politics

Creating an Urgency for Creating an Urgency for ChangeChange

Inform employees about driving forcesInform employees about driving forces

Most difficult when organization is doing Most difficult when organization is doing well well

Must be real, not contrivedMust be real, not contrived

Customer-driven changeCustomer-driven change– Adverse consequences for firmAdverse consequences for firm– Human element energizes employeesHuman element energizes employees

CommunicationCommunication Highest priority and first Highest priority and first strategy for changestrategy for change

Improves urgency to Improves urgency to changechange

Reduces uncertainty Reduces uncertainty (fear of unknown)(fear of unknown)

Problems -- time Problems -- time consuming and costlyconsuming and costly

Minimizing Resistance to Minimizing Resistance to ChangeChange

CommunicationCommunication Increases ownership of Increases ownership of changechange

Helps saving face and Helps saving face and reducing fear of unknownreducing fear of unknown

Includes task forces, Includes task forces, search conferencessearch conferences

Problems -- time-Problems -- time-consuming, potential consuming, potential conflictconflict


TrainingTraining

Employee Employee InvolvementInvolvement

CommunicationCommunication When communication, When communication, training, and involvement training, and involvement do not resolve stressdo not resolve stress

Potential benefitsPotential benefits–More motivation to changeMore motivation to change–Less fear of unknownLess fear of unknown–Fewer direct costsFewer direct costs

Problems -- time-Problems -- time-consuming, expensive, consuming, expensive, doesn’t help everyonedoesn’t help everyone


TrainingTraining


Stress Stress ManagementManagement

CommunicationCommunication

When people clearly lose When people clearly lose something and won’t something and won’t otherwise support changeotherwise support change

Influence by exchange-- Influence by exchange-- reduces direct costsreduces direct costs

ProblemsProblems–ExpensiveExpensive– Increases compliance, not Increases compliance, not

commitmentcommitment


TrainingTraining



Negotiation

CommunicationCommunication

When all else failsWhen all else fails

Assertive influenceAssertive influence

Firing people -- radical Firing people -- radical form of “unlearning”form of “unlearning”

ProblemsProblems–Reduces trustReduces trust–May create more subtle May create more subtle

resistanceresistance


TrainingTraining



Negotiation

Coercion

Refreezing the Desired Refreezing the Desired ConditionsConditions

Realigning organizational systems and Realigning organizational systems and team dynamics with the desired changesteam dynamics with the desired changes

– Alter rewards to reinforce new behavioursAlter rewards to reinforce new behaviours

– Feedback systemsFeedback systems

Help employees learn how they are doingHelp employees learn how they are doing

Provide support for the new behaviour Provide support for the new behaviour patternspatterns

Strategic Vision & ChangeStrategic Vision & Change

Need a vision of the Need a vision of the desired future statedesired future state

Minimizes employee fear Minimizes employee fear of the unknown of the unknown

Clarifies role perceptions Clarifies role perceptions

Change AgentsChange AgentsAnyone who possesses Anyone who possesses enough knowledge and enough knowledge and power to guide and facilitate power to guide and facilitate the change effortthe change effort

Change agents apply Change agents apply transformational leadershiptransformational leadership– Help develop a visionHelp develop a vision

– Communicate the visionCommunicate the vision

– Act consistently with the visionAct consistently with the vision

– Build commitment to the visionBuild commitment to the vision

Successfully Diffusing ChangeSuccessfully Diffusing Change

Successful pilot projectSuccessful pilot projectReceives visibilityReceives visibilityTop management supportTop management supportLabour union involvementLabour union involvementDiffusion strategy described clearlyDiffusion strategy described clearlyPilot project people moved to other areasPilot project people moved to other areas

Action Research PhilosophyAction Research PhilosophyChange needs both action and Change needs both action and research focusresearch focusAction orientationAction orientation– Solve problems and change the Solve problems and change the

organizational systemorganizational system

Research orientationResearch orientation– Concepts guide the changeConcepts guide the change– Data needed to diagnose problem, Data needed to diagnose problem,

identify intervention, evaluate changeidentify intervention, evaluate change

EstablishEstablishClient-Client-

ConsultantConsultantRelationsRelations

DisengageDisengageConsultant’sConsultant’s

ServicesServices

Action Research ProcessAction Research Process

DiagnoseDiagnoseNeed forNeed forChangeChange

IntroAduceIntroAduceChangeChange

Evaluate/Evaluate/StabilizeStabilizeChangeChange

Appreciative Inquiry PhilosophyAppreciative Inquiry Philosophy

Directs the group’s attention Directs the group’s attention

away from its own problems away from its own problems

and focuses participants on and focuses participants on

the group’s potential and the group’s potential and

positive elements.positive elements.

Reframes relationships Reframes relationships

around the positive rather around the positive rather

than being problem orientedthan being problem oriented Courtesy of Amanda Trotsen-Bloom

Appreciative Inquiry ProcessAppreciative Inquiry Process

DiscoveryDiscovery

Discovering Discovering the best of the best of “what is”“what is”

DreamingDreaming

Forming Forming ideas about ideas about “what might “what might

be”be”

DesigningDesigning

Engaging in Engaging in dialogue dialogue

about “what about “what should be”should be”

DeliveringDelivering

Developing Developing objectives objectives

about “what about “what will be”will be”

Parallel Learning Structure Parallel Learning Structure PhilosophyPhilosophy

Highly participative social structures Highly participative social structures

Members representative across the formal Members representative across the formal hierarchyhierarchy

Sufficiently free from firm’s constraintsSufficiently free from firm’s constraints

Develop solutions for organizational Develop solutions for organizational change which are then applied back into change which are then applied back into the larger organizationthe larger organization

OrganizationParallel

Structure

Parallel Learning StructuresParallel Learning Structures

Cross-Cultural and Ethical Cross-Cultural and Ethical Concerns Concerns

Cross-Cultural ConcernsCross-Cultural Concerns– Linear and open conflict assumptions different Linear and open conflict assumptions different

from values in some culturesfrom values in some cultures

Ethical ConcernsEthical Concerns– Privacy rights of individualsPrivacy rights of individuals– Management powerManagement power– Individuals’ self-esteemIndividuals’ self-esteem– Consultant’s roleConsultant’s role

CommunicationCommunication Communication may be understood as the process of Communication may be understood as the process of

exchanging information and understanding between exchanging information and understanding between peoplepeople

Significance:Significance:a.a. Control member behaviourControl member behaviourb.b. Fosters motivationFosters motivationc.c. Provides InformationProvides Informationd.d. Changing people’s attitudesChanging people’s attitudese.e. Essence of social behaviourEssence of social behaviourf.f. Role in knowledge managementRole in knowledge managementTypes of Communication:Types of Communication:a.a. VerbalVerbalb.b. Non Verbal Non Verbal c.c. WrittenWritten

Proemics

Kinesics

Para language

Organisational CommunicationOrganisational CommunicationFactors Influencing Organisational CommunicationFactors Influencing Organisational Communication

a.a. Formal channel of communicationFormal channel of communication

b.b. Authority structureAuthority structure

c.c. Job specialisationJob specialisation

d.d. Information ownershipInformation ownership

Communication FlowsCommunication Flowsa.a. Downward communicationDownward communication

b.b. Upward communicationUpward communication

c.c. Lateral communicationLateral communication

d.d. Diagonal communiactionDiagonal communiaction

e.e. External communicationExternal communication

Communication NetworksCommunication NetworksWheel NetworkWheel Network

A

B

C

D EB

C

D

E

AChain Network

C

A B

D

E

D C

BE

A

D C

E B

A

Y Network

All Channel Network

Circle Network

Communication Rolesa. Gatekeepersb. Liasonsc. Isolatesd. Cosmopolites

Informal Communication ( Grapevine )a. Chain Systemb. Cluster Systemc. Gossip Sustem

Communication ProcessCommunication Process

Channel

Decoding

Reciever

Encoding

Source

Message

Message

Message

Message

FEEDBACK

Communication BarriersCommunication BarriersSender Related Barriers:Sender Related Barriers:

Communication GoalsCommunication GoalsCommunication SkillsCommunication SkillsInterpersonal SensitivityInterpersonal SensitivityDiffering frames of referenceDiffering frames of referenceImproper DictionImproper DictionInconsistent Non – Verbal SignalsInconsistent Non – Verbal SignalsFearFearSender CredibilitySender Credibility

Receiver Related BarriersReceiver Related BarriersSelective & Poor ListeningSelective & Poor ListeningEvaluating the SourceEvaluating the SourcePerceptionsPerceptionsLack of responsive feedbackLack of responsive feedbackMeta communicationMeta communication

Situation Related Barriers:a. Jargonb. Information Overloadc. Time Pressured. Communication Climatee. Noise f. Distanceg. Mechanical Failureh. Murphy’s Law of Communication

Overcoming the Barriers:Sender’s Responsibilitya. Setting communication goalsb. Using appropriate languagec. Using empathic communicationd. Improving Coommunicator’s Credibilitye. Using face to face communicationf. Encouraging feedback

g. Using a correct amount of redundancyh. Developing trusting climatei. Using picture

Receiver's Responsibility:a. Effective Listening ( Barriers to effective listening ):i. Physiological Limitationii. Inadequate background informationiii. Selective memoryiv. Selective expectationv. Fear of being influenced or persuadedvi. Bias and pre judgmentvii. Selective perceptionviii.Influence from emotionsix. Avoiding evaluative judgementx. Providing responsive feedback

International OBInternational OB

Trends in International BusinessTrends in International Business International joint ventures, Multinational mergers & International joint ventures, Multinational mergers & Acquisitions and global strategic alliancesAcquisitions and global strategic alliances More earning from international business than domesticMore earning from international business than domesticABB, Honda, BP, Siemens, Motorola and Eastman kodak ABB, Honda, BP, Siemens, Motorola and Eastman kodak functioning in more than 50 countriesfunctioning in more than 50 countries Most assets owned by different nationalitiesMost assets owned by different nationalities Trade volume growing since WW II from $51 Billion to $415 Trade volume growing since WW II from $51 Billion to $415 Billion in 1972 and since then $18 trillion till recent timesBillion in 1972 and since then $18 trillion till recent times

Cultural Similarities & DifferencesCultural Norms, Values, cultural symbols, stories and rituals vary from nation to nation

AmericansFreedomIndependenceSelf – RelianceEqualityIndividualismCompetitionEfficiencyTimeDirectnessOpennessAggressivenessInformalityFuture OrientationRisk – TakingCreativitySelf AccomplishmentWinningMoneyMaterial PossessionsPrivacy

JapaneseBelongingnessGroup HarmonyCollectivenessAge / SeniorityGroup ConsensusCooperationQualityPatienceIndirectnessGo BetweenInterpersonalHierarchyContinuationConservativeInformationGroup AchievementSuccess RelationshipHarmony with NatureNetworking

ArabsFamily SecurityFamily HarmonyParental GuidanceAgeAuthorityCompromiseDevotionVery PatientIndirectnessHospitalityFriendshipFormal/AdmirationPast & PresentReligious BeliefTraditionSocial RecognitionReputationFriendshipBelongingnessFamily Network

Cultural Clusters

AngloAustralia CanadaIrelandNew zealandSouth AfricaUKUSA

NordicDenmarkFinlandNorwaySweden

GermanicAustriaGermanySwitzerland

Latin AmericanArgentina ChileColumbiaMexicoPeruVenezuela

Latin EuropeanBelgiumFranceItalyPortugalSpain

Near EasternGreeceIranTurkeyPortugalSpain

ArabAbu DhabiBahrainKuwaitOmanSaudi ArabiaUAE

Far EasternHong KongIndonesiaMalaysiaPhilippinesSingaporeTaiwanThailandVietnam

IndependentBrazilIndiaIsrael Japan

HR Practices

• Hourly Wage rates in Mexico plays little role as it is mandatory for the employers to pay wages for 365 days• In Aus and Brazil employees get 1 month leave for one yr of work• In Japan seniority is the basis of promotions and performance• In UK maternity leave is 40 weeks 18 of these paid •In sweden 87% of companies HR managers are on board of directors

Hofstede’s Cultural Dimension

• Power Distance – is the extent to which less powerful members of institutions of and organizations accept that power is distributed unequally• Uncertainty Avoidance – is the extent to which people feel threatened by ambiguous situations, and have certain beliefs and institutions that try to avoid these• Individualism – is the tendency of people to look after themselves and their family• Masculinity – refers to a situation in which the dominant values in a society are success, money, and other material things• Cultural Diversity – Source of energy - can be great source of energy and organizational effectiveness

Motivation Across CulturesMotivation Across Cultures

•Management Styles

• Control

• Emotional Appeal

•Recognition

•Material Awards

•Threats

•Cultural Values

American

Leadership, Friendliness

Independence, DecisionMaking, Space, Time, Money

Opportunity

Individual Contribution

Salary, Commission, Profit – Sharing

Loss of Job

Competition; Risk TakingMaterial Possession; Freedom

Japanese

Persuasion, FunctionalGroup activities

Group Harmony

Group Participation;Company Success

Group Identity, BelongIng to group

Annual Bonus, SocialServices, Fringe Benefits

Out of Group

Group harmony, Achievement,Belonging

Arab

Coaching, Personal attention, Parenthood

Of parents \ parenthood

Religion, Nationalistic,Admiration

Individual Status, Class\ society, Promotion

Gift for self\familyFamily affair, salary increase

Demotion

Reputation, Family security, Religion, Social Status

Compensation Across CulturesCompensation Across Cultures

Japanese get paid more than three times the wages of other Asian Japanese get paid more than three times the wages of other Asian countries like Korea, Singapore, Taiwancountries like Korea, Singapore, Taiwan

Korean & Japanese workers expect bonuses twice a yearKorean & Japanese workers expect bonuses twice a year

In, Denmark more than 80% of employees belong to trade unionsIn, Denmark more than 80% of employees belong to trade unions

In Germany a minimum 18 days paid annual leave is mandatoryIn Germany a minimum 18 days paid annual leave is mandatory

In IndiaIn IndiaMNC employees are paid more for identical workMNC employees are paid more for identical work

Distinction in salaries in different industries for identical worksDistinction in salaries in different industries for identical works

Huge gaps between employees of organized and unorganized sectorsHuge gaps between employees of organized and unorganized sectors

Distinction between salaries of public and private sector organizationsDistinction between salaries of public and private sector organizations

In Govt. sector salary gaps between different departmentsIn Govt. sector salary gaps between different departments

CoreCompetitive Cash

Performance BasedEmployability

Work Challenges

Customize

Flexible Schedules

Benefit Choices

Base /Bonus

ChoiceAssignments

Tax Deferral

Base/ BonusMix

StockPurchase

MNC Pay Schedules

Phases of Cultural AdjustmentPhase 1 – Expatriate experiences range of emotionsPhase 2 – Crisis / Shock leading to negative appraisalsPhase 3 - Psychological adjustment for the expatriatePhase 4 – Adjustment to the new environment

Leadership across CulturesLeadership across CulturesEmotional Intelligence individual & socialEmotional Intelligence individual & social

1.1. Self AwarenessSelf Awareness

2.2. Self RegulationSelf Regulation

3.3. MotivationMotivation

4.4. EmpathyEmpathy

5.5. Social SkillsSocial Skills

National ContextCultural InfluencesWorker Needs &

Expectations

National ContextCulture influencesWorker needs and

expectations

Subordinate Motivation

National ContextCultural institutions

Influence organizationsand group structures

National Contextculture and

educational trainingdefine leader

preferences for behaviors and

traits

Work SettingNature of tasks

Organizational structureNature of work group

Subordinate Characteristics

NeedsAchievement

Motivation

OutcomesPerformanceSatisfaction

Leader Behaviors &Traits

Leadership Across CulturesLeadership Across CulturesUniversalism in LeadershipUniversalism in Leadership Articulates a Vision Articulates a Vision Breaks from the Status QuoBreaks from the Status Quo Provides goals and a planProvides goals and a plan Gives meaning or a purpose to goalsGives meaning or a purpose to goals Takes risksTakes risks Is motivated to leadIs motivated to leadBuilds a power baseBuilds a power base Demonstrates high ethical and moral standardsDemonstrates high ethical and moral standards

Multicultural TeamsMulticultural Teams Token Teams – One member from one cultureToken Teams – One member from one culture Bicultural Teams – Members from two culturesBicultural Teams – Members from two cultures Multicultural Teams – Members from three or more culturesMulticultural Teams – Members from three or more cultures

Managing Culturally Diverse TeamsManaging Culturally Diverse Teams Task – related selectionTask – related selection Establishing a visionEstablishing a vision Equalizing Equalizing

Negotiating GloballyNegotiating Globally

High VeryImportant Important

SufficientlyLow High Very

Low

VeryHigh

LowVeryLow

UnImportant

UnImportant

Low

Negotiate

Bargain

Take itor

Leave it

Value of ExchangeStrategy Relationship Commitment Time

Available

PowerDistribution

Yours/Theirs

When to Negotiate

Step 1Preparation

Step 2Building the Relati

ship

Step 3Exchange of Infor

mation and first offer

Step 4Persuasion

Step 5Concessions

Step 6Agreement

Steps in International Negotiations

Negotiating Tactics•Promise• Threat• Recommendation• Warning•Reward• Punishment• Normative Appeal• Commitment• Self – Disclosure• Question• Command

Communicating Across CulturesCommunicating Across Cultures Language and CultureLanguage and Culture1.1. High & Low Context Languages – in which people state High & Low Context Languages – in which people state

things directly and explicitly are low context language things directly and explicitly are low context language and indirectly and implicitly is high context languageand indirectly and implicitly is high context language

2.2. Use of Interpreters Use of Interpreters

3.3. Non – Verbal Communication – facial gestures, voice, Non – Verbal Communication – facial gestures, voice, intonation, physical distance, smile, battling of eyelid, intonation, physical distance, smile, battling of eyelid, kiss, handshake, and silencekiss, handshake, and silence

Organisation Behaviour ppt.

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