Mella Tutorials

Organizational
Behaviour
Compiled By: Melaku Beshaw
(Mella Tutorials)
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Organizational
Behaviour
Chapter One
An Overview of
Organization Behavior
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Organizational Behavior
• Organization: is a consciously coordinated
social unit, made up of a group of people,
who work together on common goals on a
relatively continuous basis.

• Behavior: behavior refers to what people do

in the organization, how they perform, and
what their attitudes are.
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Organizational Behaviour is a field of study which has

as its primary interest the understanding of groups or
individuals within organizations and managing them
to work effectively.
OB involves the study and application of knowledge about
how people act within organizations, as individuals and within
groups what “they think, feel and do in and around
organizations” and it investigates the impact that
individuals, groups and structures have on behaviour
within organizations.
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The Three Basic Units Of

Analysis In OB
OB; investigates how;
individuals, groups, and
structure affect and is
affected by behavior within
organizations.
The 3 level of analysis
 Individuals,
 Groups,
 Structure.
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The individual level includes the characteristics

and behaviors of employees as well as the
thought processes attributed to them, such as:

 Motivation,

 Perception,

 Personalities,

 Attitudes, and

 Values.
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The group level analysis looks at the way people

interact. It includes:

 Team dynamics,

 Decisions,

 Power, and Politics

 Conflicts, and

 Leaderships.
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At the organization level, we focus on how people

structure their working relations and how
organizations work together with their environment.

 Organizational Design,

 Technology and work processes,

 Jobs, and Work stress

 The organization's policies and practices

 The internal culture;

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• There is a causal relationships of two

(dependent and independent) variables in the
Organization.

• Dependent variables are the key factors we

want to explain or predict; and

• Independent variables are the presumed

causes of some change in the dependent
variables.
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The primary dependent The major determinants of

variables in OB are: dependent variables are
independent variables at
 Productivity,
 Individual,
 Absenteeism,
 Group, and
 Turnover, and
 Organizational Level.
 Job satisfaction.
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• Individual Factors: Physical attributes, Personality, Age,

Perception, Gender Attitude, Marital status Values, Number
of dependants, Ability and experience

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

politics, intergroup relations, levels of conflict.

• Organizational Factors: Organizational Design,

technology and work processes, and jobs; the organization's
human resource policies and practices (that is, selection
processes, training programs); the internal culture; and
levels of work stress.
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OB and Managers
• The study of organizational behavior can provide
managers with the following practical advantages:
• Organizational behavior provides managers:
o With a way of systematically thinking about the
behavior of people at work.
o Techniques for dealing with the problems &
opportunities that commonly occur in a work setting
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Characteristics of OB
• Major characteristics of Organization behavior:
 Interdisciplinary. OB has interdisciplinary
orientation.
 Behavioral Science Foundation.
 Scientific Method Foundation. OB had
inherited the tradition of scientific method in its
investigations from its parent disciplines.
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 Three Levels of Analysis. The OB is unique in its

approach to behavior because it encompasses three
levels of analysis
 Contingency Orientation. The term contingency
orientation reflects the need to consider the situation
before drawing conclusions about behavior.
 There is a distinctly humanistic orientation.
People and their attitudes, perceptions, learning
capacities, feelings and goals are of major
importance.
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Development of Organizational
Behavior

• The major contributors to the theory of

organizational behavior are :

 Classical schools of management theory,

 Behavioral theory,

 Contingency theory.
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1. Classical Schools of
Management

Classical Approach

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

• The administrative principles approach focused

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

• Contributor; Henri Fayol; Management principles.

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C. Bureaucratic Management
 Bureaucracy comes from the French word
bureaucratic, and it literally means to rule from a desk
or office.
The chief advocate of the bureaucratic organization
was Max Weber (1846 – 1920). According to Weber,
bureaucracy is “the exercise of control on the basis of
knowledge”.
The aim of bureaucracy is to achieve an organization’s
goals in the most efficient way possible.
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2. Behavioral Management
Theory;
• Emphasizes improving management through
the psychological makeup of people.

• The Behavioural approach refers to

management focused on the psychological
and social aspects of work.
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• The behavioral approach is sometimes referred to

as the human resources approach because of the
focus on making optimum use of workers in a
positive way, such as making jobs motivational

• The proponents

 George Elton Mayo; Hawthorne Studies

 Abraham Maslow; Need Hierarchy

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

 Modern management must have the twin primary

objectives of productivity (classical approach) and
satisfaction (human relation approach)
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 Under the modern management

theory, we have the following streams:-

 The Quantitative/ Management

Science Approach

 The Decision Theory Approach

 The Systems Approach and

 The Contingency Approach

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Disciplines that contributed to OB

• The significant ones are :

 Psychology,

 Sociology,

 Social psychology,

 Anthropology, and

 Political science.
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• Psychology's contribution has been mainly at

the individual or micro level of analysis.

• However, the other disciplines have

contributed to the understanding of macro
concepts such as group processes and
organization.
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Organizational Behavior in the

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

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Organizational
Behaviour
Chapter Two
Foundation of
Individual Behavior
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1. Perception
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• Perception may be defined as the process with

which individuals detect and interpret
environmental stimuli.
• Perception is a process by which individuals
organize and interpret their sensory
impressions in order to give meaning to their
environment.
• Perception is a way of forming impressions about
oneself, other people, and daily life experiences.
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Components of Perception
• There are three components are involved in
perception as listed below:
1. Perceiver : is who receive the stimuli
2. Target: refers to the thing to be
perceived
3. Situation: refers to context (e.g. timing)
the perceiver and the target meet
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Perceptual
Process
The perceptual
process is composed
of the process of:
Receiving,
Selecting,
Organizing,
Interpreting, and
Responding.
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Factors
Influence
Perception
A number of
factors operate
to shape and
sometimes
distort
perception.
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Attribution Errors
In addition to these three influences, two errors have an
impact on internal versus external determination—the
fundamental attribution error and the self-serving bias.
Fundamental attribution Self-serving bias: refers to
error: is the tendency to the tendency to attribute
underestimate the influence own success to internal
of situational factors and to causation like ability, hard
overestimate the influence of work and self-worth and
personal factors in evaluating the failure, to external
someone else’s behavior. factors like chance or Luck.
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Common Errors While

Judging Others
• Selective perception: The tendency to
selectively interpret what one sees on the
basis of one’s interests, background, experience,
and attitudes.
• Halo Effect: refers to judging an individual
based on single characteristics, such as
intellectual ability, sociability and appearance.
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• Projection: You assume a person based on your

own traits and not what he actually possesses.
• Contrast effect: Evaluation of a person’s
characteristics that is affected by comparisons
with other people recently encountered who rank
higher or lower on the same characteristics.
• Stereotyping: Judging someone on the basis of
one’s perception of the group to which that person
belongs.
• Prejudice: is an unfounded dislike of a person or
group based on their belonging to a particular
stereotyped group.
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2. Attitude
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• Attitudes are evaluative statements either

favorable or unfavorable about objects,
people, or events.

• Attitudes are positive or negative feelings

about objects, people, or events.

• The attitude is the evaluative statements or

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

• They tend to persist unless something is done

to change them.

• Attitudes can fall anywhere along a continuum

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

• Family, • Society,

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

2) Job involvement; is about how much someone feels

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

3) Organizational Commitment: is the emotional

attachment people have toward the company they work for.
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3. Personality
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• Personality is defined as the sum total of ways in

which an individual reacts to and interacts with
others.

• Personality encompasses the relatively stable

feelings, thoughts, and behavioral patterns a person
has.

• Personality is a stable set of characteristics and

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

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

Influencing OB

Locus of Control 1. Internal locus of control;

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

is a personality trait describes a person who

that measures an has a very high sense of

individual’s ability to self-importance, requires

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

Type As Type Bs
 Are always moving, walking,  Never suffer from a sense of
and eating rapidly time urgency.
 Feel impatient with the rate at  Feel no need to display or
which most events take place discuss their achievements.
 Strive to think or do two or  Play for fun and relaxation,
more things at once rather than to exhibit their
superiority at any cost
 Cannot cope with leisure time
 Can relax without guilt
 Are obsessed with Quantity
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The Big Five Personality

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Matching Personality and Job

• Personality refers to individual differences in
characteristics pattern of thinking, feeling and behaving
• Vocational interest is an expression of one’s personality,
and that vocational interests could be conceptualized into
six typologies.
• They are Realistic, Investigative, Artistic, Social,
Enterprising and Conventional (called RIASEC in short).
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4. Learning
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Learning is a relatively permanent change

in knowledge or observable behavior that
results from practice or experience.
 First, learning involves change.

 Second, the change must be relatively

permanent.

 Third, the change is concerned with behavior.

 Finally, some form of experience is necessary

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

 Classical conditioning,

 Operant conditioning,

 Social learning
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1. Classical Conditioning:
Learning by Association
Classical conditioning is the process
by which individuals learn to link the
information from a neutral stimulus
to a stimulus that causes a response.
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• In the classical conditioning process, an

unconditioned stimulus (environmental event)
brings out a natural response.
• Then a neutral environmental event, called a
conditioned stimulus, is paired with the
unconditioned stimulus that brings out the behavior.
• Eventually, the conditioned stimulus alone brings out
the behavior, which is called a conditional response.
• This theory developed by Pavlov.
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• Three sequential stages:

 Stage One; he presented meat (unconditional stimulus) to
the dog. He noticed a great deal of salivation (unconditional
response).
 Stage Two; he only rang up the bell (neutral stimulus), the
dog had no salivation.
 Stage Three; Pavlov was to accompany the offering of meat
to the dog along with ringing up of bell.
• After doing this several times, Pavlov rang up only bell
(without offering of meat to the dog). This time the dog
salivated to the ringing up of bell alone.
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2. Operant Conditioning
• The concept was originated by B.F. Skinner. It is a type of
conditioning in which desired voluntary behaviors leads to
reward or prevent punishment which deals with Response
Stimulus (R-S) connection.

• Operant conditioning argues that behavior is a function of its

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

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

 Teachers, Peers, Watching models-parents, Motion

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

• There are three ways in which to

shape behavior:

 Reinforcement,

 Punishment,

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

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

Group: is a collection of individuals with

separate priorities united by their shared

interest.

Team: is a collection of interdependent people

who join together with a shared goal.

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

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

Formal groups;

Informal groups;
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• A command group is formed

1. Formal
based on the organizational chart's

Groups formal connections, depicting

approved hierarchy and reporting
A designated work relationships.
group defined by • Task groups are created by
the organization’s organizational authorities to
structure is formal address specific tasks, involving
group. individuals with relevant expertise
or interests.
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Interest Groups: consist of

2. Informal persons who share common

Groups interests.
Friendship Groups: Those
Informal group is a group brought together because they
that is neither formally share one or more common
structured nor characteristics.
organizationally Reference groups: are the
determined; appears in groups, with which individuals

response to the need for identify and compare

social contact. themselves.

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

1. Problem-solving: teams are formed on a

temporary basis to address a specific
problem that is confronting the organization.
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2. Cross-Functional Teams: Comprising members from

different departments or areas, they collaborate on tasks
or projects.
3. Virtual Teams: Leveraging interactive technology,
these teams work together despite physical separation,
utilizing tools like email, instant messaging, and video
conferencing.
4. Ad Hoc Teams: These teams are formed temporarily to
address urgent or short-term needs within the
organization.
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Why do people form and join

groups?

1. The Satisfaction of Needs

• Security: By joining a group, individuals can reduce
the insecurity of standing alone.
• Status: a person’s relative rank, prestige, or standing
in a group.
• Self-Esteem: Self-esteem is a belief about one’s own
worth based on an overall self-evaluation.
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2. Proximity and Attraction: Interpersonal interaction

can result in group formation. Two important facets of
interpersonal interaction are proximity and attraction.
3. Power: What cannot be achieved individually often
becomes possible through group action. There is power in
numbers.
4. Goal Achievement: There are times when it takes more
than one person to accomplish a particular task there is a
need to pool talents, knowledge, or power in order to get
a job completed.
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Group Development (GD Stages)

There are five

stages in GD
Forming,
Storming,
Norming,
Performing,
Adjourning.
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1. Forming: a primary concern is the initial

entry of members to a group.

• It is characterized by much uncertainty

about the group’s purpose, structure, and
leadership.

• This stage is complete when members have

begun to think of themselves as part of a
group.
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2. Storming: is a period of high emotionality

and tension among the group members.

• During this stage, hostility and infighting

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

• It is marked by interpersonal conflict as

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

integration,

• is the point at which the group really begins

to come together as a coordinated unit.

• It is characterized by close relationship and

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

integration,

• marks the emergence of a mature,

organized, and well-functioning group.

• The group structure at this point is fully

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

disbandment.

• Members shift their attention from task

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

A. External Pressure

 Organization strategy, and Authority structures

 Formal Regulations, and Organizational resources

 Performance evaluation and reward system

 Organizational culture, and Physical work setting

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B. Group Tasks; Tasks can be generalized as

either simple or complex.
• Complex tasks are ones that tend to be
novel or non-routine.
• Simple ones are routine and standardized.
• We would hypothesize that the more
complex the task, the more the group will
benefit from discussion among members on
alternative work methods.
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B. Group Member Resources; The resources that have

received the greatest amount of attention are: Abilities
and Personality characteristics.

C. Group Structure; The structural variables include:

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

1. Formal leadership; He/she is typically identified

by titles such as unit/dept manager, supervisor,
foreman, project leader, or the like.
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2. Roles; mean a set of expected behavior patterns

attributed to someone occupying a given position.
 Role Identity: When there are certain attitudes and
actual behaviors consistent with a role.
 Role Perception: is one’s view of how one is
supposed to act in a given situation.
 Role Expectations: defined as how others believe
you should act in a given situation.
 Role Conflict: is a situation in which an individual is
confronted by divergent role expectations.
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3. Norms; tell members what they ought or ought not

to do under certain circumstances;
• Performance norms: factors like how hard they
should work, how to get the job done, their output
level, appropriate communication channels.
• Appearance norms: These factors include things like
appropriate dress, loyalty to the workgroup or
organization, etc.
• Social Arrangement Norms: This norm is basically
centered on how we should behave in social settings.
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4. Group size: Workgroups can be found in sizes like

large and small.

The impact of size on a group’s performance depends

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

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

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

• Social loafing occurs when individuals within a group hold

back what they contribute to the group’s effort and
performance.
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5. Status; can be defined as a social position or rank

given to groups or group members by others. Status may
be formally imposed through organizational titles or
amenities.

6. Composition; Group demography is the degree to

which members of a group share common demographic
attributes such as age, sex, race, educational level or
length of service in the organization, and the impact of
these attributes on turnover”.
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7. Group cohesiveness; it is the degree to which

members are attracted to each other and are motivated to
stay in the group.
• Members of cohesive groups have a strong desire to
stay in the group. Attractiveness is a key ingredient in
cohesiveness.
• Cohesiveness can be affected by such factors as
Time spent together, the severity of initiation/
difficulty of entry, group size, external threats, and
previous successes
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Implication for Performance

and Satisfaction
1. Performance; A number of structural factors
show a relationship to performance.

2. Satisfaction; High congruence between a boss

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

group members and between groups that involves

both intra-group and inter-group behavior.

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

members.

• Inter-group: occurs between two or more work groups,

social groups work together in an organization.

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Thank You !!!

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

• Motivation is the willingness to exert high

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

 Motivation is a psychological phenomenon.

It is the inner desire of an individual to
accomplish something more.

 Motivation is a continuous process. Since

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

expectations.

• Motivational needs are ordered

• It can be two types; Intrinsic vs Extrinsic

• Intrinsic motivation that comes from within the

person, based on personal enjoyment of any task.

• Extrinsic motivation, which is based on external

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

1. Carrot and
make a donkey move one must
Stick put a carrot in front of it and if it

Approach does not move beat it with stick

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

behavior. other penalty.

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2. Hierarchy of Needs Theory

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

(Douglas McGregor)

Theory X – Pessimistic

and negative

Theory Y- Adopts a

developmental approach/

modern/positive set of

assumptions, optimistic
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4. The Two-factor Theory

(Motivation-hygiene Theory)

It is developed by Hertzberg. Herzberg

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

1. Hygiene Factors: Dissatisfiers/ Maintenance

2. Motivators Factors: Satisfier

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Contemporary
Theories of Motivation
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1) ERG Theory
• Developed by Clayton Alderfer.
• ERG theory is a well-known simplification of
the hierarchy into three levels of needs
theory.
 Existence (physiological & safety needs),
 Relatedness (social), and
 Growth (esteem & self-actualization).
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• Existence needs: are concerned with sustaining human

existence and survival.
• Relatedness needs: are concerned with relationships to
the social environment.
• Growth needs: are concerned with the development of
potential.
• ERG theory differs from Maslow’s theory in two basic ways.
 First, Alderfer broke needs down into three
categories.
 Second, ERG theory also contains a frustration-
regression dimension.
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2) Equity Theory
• Equity theory proposes that employees are motivated when
their perceived inputs equal outputs.
• Equity theory focuses on people’s feelings of how fairly they
have been treated in comparison with the treatment
received by others.
• A relevant other could be a coworker or group of
employees from the same or different organizations, or even
from a hypothetical situation.
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• Motivation is based on the perception of one’s

own outcome/input ratio compared to that of a
similar individual or group, called a referent.

• Equity; when employees perceive that the

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

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

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

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

worth the effort.

• The theory, therefore, focuses on three relationships

 Efforts - Performance relationship: It is related to the

probability perceived by individual that exerting a given

amount of efforts will lead to performance (Expectancy).

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 Performance- Reward Relationship: The degree to

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

• Goal setting theory is proposed by Edwin
Locke.

• The basic premise of goal theory is that

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

• A goal is “what an individual is trying to

accomplish”
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• According to Locke, goal setting motivates in

four ways:

Goals direct attention.

Goals regulate effort.

Goals increase persistence.

Goals encourage the development of

strategies and action plans.
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Managerial Approaches for

Improving Motivation
• To motivate employees the management
uses several important ways such as
 Rewards,
 Job Design,
 Self-leadership,
 Empowerment,
 Performance Feedback
 Alternative Work Arrangements:
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1. Reward Systems: Organizations can offer two

types of rewards: either Intrinsic rewards or
Extrinsic rewards
2. Job Design: Job design is the process of assigning
tasks to a job, including the interdependency of
those tasks with other jobs.
 Job Rotation:
 Job Enlargement:
 Job Enrichment:
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3. Self-Leadership: It is the process of

influencing oneself to establish the self-direction,
and self-motivation needed to perform the task.

• The five elements of self-leadership are:

 Personal goal setting,

 Constructive thought patterns,

 Designing natural rewards,

 Self-monitoring, and

 Self-reinforcement.
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4. Empowerment: Empowerment means creating conditions

in which employees perceive themselves as competent
and in control of performing meaningful tasks.

5. Performance Feedback: The degree to which carrying

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

6. Alternative Work Arrangements: Another approach to

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

Conflict may be the pursuit Conflict may be classified

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

• Affective Conflict: This occurs when two interacting

social entities, while trying to solve a problem together,

become aware that their feelings and emotions

regarding some or all the issues are incompatible.

• Goal Conflict: This occurs when a preferred outcome

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

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• Substantive Conflict: This occurs when two or

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

 Intrapersonal,

 Interpersonal,

 Intra-group, and

 Intergroup.
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• There are three types of

I. Intra-
intrapersonal conflict:

personal A. Approach–approach conflict

= Both positive alternatives
Conflict B. Avoidance–avoidance

Intra-personal conflict = Both negative

conflicts arise within alternatives

individuals due to C. Approach–avoidance conflict

frustration, goals, = Positive and negative

and roles. alternatives

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II. Inter-personal Conflict: occurs

between two individuals or between an individual
and a group.

III. Intra-group Conflict: is the conflicts

that occur between group members.

IV. Inter-group Conflict: occurs between

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

A. Functional Outcomes
• Generally, conflict is constructive when it:
 Stimulates creativity and innovation,
 Improves the quality of decisions,
 Encourages interest among group members,
 Provides the medium through which problems can aired
and tensions released,
 Fosters environment of self-evaluation and change.
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• Among the more undesirable

B. Dysfunctional
consequence are:
Outcomes:  Reduction in group cohesiveness
 Delay in decision making which
Uncontrolled opposition need to be done urgently
breeds discontent, which  Hostility and aggression
development,
acts to dissolve
 Increase employee turnover,
commonalities, and
 Decrease employee satisfaction,
eventually leads to the  Increases inefficiencies of work
destruction of the group. units.
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Conflicts Nature/ Perspective

• Three perspectives:

 Traditional view.

 Human Relations view,

 Interactionist view.
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1. The Traditional/ Unitarist View; The early approach

to conflict assumed that conflict was bad. Conflict, then,
was to be avoided.

2. The Human Relations/ Pluralist View; Argued that

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

3. The Interactionist/ Radicalist View; The interactions

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

1. Competition for 6. Personality Clashes

resources 7. Differences in Value
2. Task interdependence Sets
3. Jurisdictional ambiguity 8. Perceptual Differences
4. Status struggles: 9. Work Flow Relationship
5. Organizational Change
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The Conflict Process

(Stages of Conflict)
• The conflict process can be thought of as
progressing through five stages:
 Potential opposition,

 Cognition and personalization,

 Intention,

 Behavior,

 Outcomes.
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Stage I: Potential Opposition or

Incompatibility
• The first step in the conflict process • Three general
is the presence of conditions that categories:
create opportunities for conflict to
 Communication,
arise.
• They need not lead directly to  Structure, and
conflict, but one of these conditions  Personal
is necessary if conflict is to arise.
variables.
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Stage II: Cognition and

Personalization

• The antecedent conditions can lead to conflict only

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

• However, because a conflict is perceived does not

mean it is personalized. You may be aware that you
and a co-worker are in disagreement.
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• It is at the level where conflict is felt, when

individuals become emotionally involved, that parties
experience anxiety, tension, frustration, or hostility.

• Perceived conflict: is Awareness by one or more

parties of the existence of conditions that create
opportunity for conflict to arise. and

• Felt conflict: is Emotional involvement in a conflict

that creates anxiety, tenseness, frustration, or
hostility.
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Stage III: Intentions

• Intentions intervene between people’s
perceptions and emotions and their overt
behavior.

• They are decisions to act in a given way.

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• Using two dimensions cooperativeness (the degree to

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

Competing (assertive and uncooperative),

Collaborating (assertive and cooperative),
Avoiding (unassertive and uncooperative),
Accommodating (unassertive and cooperative), and
Compromising (midrange on both assertive and cooperative).
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The avoiding style is uncooperative and unassertive. People
Tutorials

exhibiting this style seek to avoid conflict altogether by denying that it is

there.
Accommodation; The accommodating style is cooperative and
unassertive. In this style, the person gives in to what the other side wants,
even if it means giving up one’s personal goals.
Compromise; is a middle-ground style, in which individuals have some
desire to express their own concerns and get their way but still respect the
other person’s goals. In a compromise, each person sacrifices something
valuable to them.
Competition; People exhibiting a competing style want to reach their goal
or get their solution adopted regardless of what others say or how they feel.
Collaboration; The collaborating style is high on both assertiveness and
cooperation. The objective is to find a win–win solution.
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Stage IV: Behavior

• When a member engages in action that
frustrates the attainment of another's goals or
prevents the furthering of the other's interests.

• Overt conflict covers a full range of behaviors,

from subtle, indirect, and highly controlled
forms of interference to direct, aggressive,
violent, and uncontrolled struggle.
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• Stage IV is also where most conflict-handling

behaviors are initiated.

Stage V: Outcomes
• The interplay between the overt conflict behavior
and conflict-handling behaviors results in
consequences.

• Functional Outcomes and Dysfunctional

Outcomes.
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Conflict Management Strategies

• A viable strategy for conflict management

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

A) Analysis of Conflict Situation;

Managers can analyze a conflict situation by
identifying the following:
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• Conflicting parties: The conflict may arise between

individuals, groups, or departments.

• Source of conflict: The conflict may arise from

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

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

where the manager must deal with it immediately; or
the conflict may be at a moderate level of intensity.
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B) Conflict Resolution; Conflict Resolution

Techniques

• Problem solving: Interested parties confront the issue

and cooperatively identify the problem, generate and
weigh alternate solutions and select a solution.

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

shared goal that cannot be attained without the
cooperation of each of the conflicting parties.
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• Expansion of Resources: When a conflict is

caused by the scarcity of a resource – say, funding,
Promotions, and desirable work or working
conditions, etc. the expansion of resource can
create a win-win Situation. Unfortunately, it is often
not possible in practice.

• Avoidance: This strategy calls for a party to

withdraw or ignore the conflict.
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• Smoothing: an obliging person neglects his/her own

concern to satisfy the concern of the other party. This
strategy involves playing down differences while
emphasizing commonalties
• Compromise: In this strategy, the parties reach a mutually
acceptable solution in which each gets only part of what he
or she wanted.
• Altering the Human Variable: This strategy calls for using
the behavioral change techniques such as human resources
training to alter attitudes and behaviors that cause conflict.
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• Altering the Structural Variable: Conflict is

resolved through changing the formal
organizational Structure through job redesign,
transfers, etc.

• Resolving conflict through negotiation or third-

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

 Consultation- This is the process where mandated

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

 Mediation- A trusted third party facilitates the

negotiating process and suggests alternatives.

 Arbitration: The arbitrator is delegated the authority to

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

Stress Management
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Stress
Stress is a dynamic condition in which an
individual is confronted with an opportunity,
demand, or resource related to what the
individual desires and for which the outcome
is perceived to be both uncertain and
important.
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• Stress is your body’s physiological and behavioral

response to the demands in your environment. Stress
must be understood as a state of tension experienced
by individuals facing extraordinary demands,
constraints, or opportunities.

• Stress is a highly personal experience influenced by

an individual’s personality, abilities, and perceptions;
what is stressful for one person might not be stressful
for another.
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• Three key factors determine whether an experience

is likely to result in stress. These factors are
importance, uncertainty, and duration.

 Importance relates to how significant the event is

to the individual.

 Uncertainty refers to a lack of clarity about what

will happen.

 Finally, duration refers how long the stressful

situation exists.
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• The study of stress is important for several reasons:

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

• Examples include the excitement of buying a

new home, getting married, or the feeling you
get from a good workout.
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• Distress: is the negative or “bad” stress that occurs

when you perceive stress as dangerous, difficult,
unfair, or painful.
• Examples include the loss of a job, death of a loved one,
long-term illness, serious injury, divorce, and depression.

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

be Eustress or Distress.
• An example of acute stress is presenting in front of a group
of people
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• Chronic stress: Chronic stress lasts for longer

periods of time. This type of stress is due to significant
events, yet also occurs when little stressors
accumulate and you are unable to bounce back from
them.

• Examples of chronic stress include long-term illness,

downsizing, or reorganizing at your workplace, and long-
term marital troubles.
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Sources/ Causes of Stress

• Things that cause stress are called
“stressors.

• Three sets of factors causes stress are-

 Environmental,

 Organizational,

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

B. Political uncertainties: instability of politics

in ones country environment may lead to anxiety.

C. Technological uncertainty: New innovations

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

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

 Interpersonal demands: are pressures created by other

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

as a function of the particular role he or she plays in
the organization.
 Role overload is' experienced when the employee
is expected to do more than time permits.
 Role conflicts create expectations that may be hard
to reconcile or satisfy
 Role ambiguity is created when role expectations
are not clearly understood and the employee is not
sure what he or she is to do.
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• Organization structure: Excessive rules and lack of

participation in decisions that affect an employee are
examples of structural variables that might the potential
sources of stress.
• Organizational leadership: represents the managerial
style of the organization's senior executives. Some thief
executive officers create a culture characterized by tension,
fear, and anxiety.
• Organization’s life stag: Organizations go through a cycle.
They're established, grow, mature, and decline. The
establishment and decline stages are particularly stressful.
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3. Individual Factors
• Personal factors that can create stress include
• Family issues: People hold family and
personal relationships, marital difficulties, the
breaking off of a relationship, and discipline
troubles with children are examples of
relationship problems that create stress for
employees.
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• Economic problems: created by individuals over

extending their financial resources are another set of
personal troubles that can create stress for employees
and distract their attention from their work.

• Personality: The achievement orientation,

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

• These can the summarized under three

general categories:

• Physiological,

• Psychological, and

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

 Increase Heart, Breathing Irritability,

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

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

• Absenteeism, and turnover,

• Changes in eating habits,

• Increased smoking or consumption of alcohol,

• Rapid speech,

• Fidgeting,

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

Organizational and Individual Level.

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

Organizations can D. Communication

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

At the individual Helpful practices include

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

cope with stress.  Live a simple Life

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Implications for Performance

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

• The evidence indicates that stress can be either a positive

or a negative influence on employee performance.

• For many people, low to moderate amounts of stress

enable them to perform their jobs better, by increasing
their work intensity, alertness, and ability to react.
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• However, a high level of stress, or even a moderate

level sustained over a long period of time, eventually
takes its toll and performance declines.

• The impact of stress on satisfaction is far more

straightforward.

• Job-related tension tends to decrease general job

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

• Culture refers to values, beliefs, and

customs that exist in a society.

• Culture is also the total way of life and

thinking patterns that are passed from
generations to generation.

• Diversity is Visible and non-visible

differences.
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Six core dimensions of diversity

exist:
 Age,

 Ethnicity,

 Gender,

 Physical Attributes,

 Race,

 Sexual/ Affectional Orientation.

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

• Prescriptive: Culture prescribes the kinds of

behavior considered acceptable in a society.

• Socially shared: It must be shared by members

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

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

culture may also impede communication across groups due to a

lack of shared common cultural values.

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

and acquired.

 Socialization or enculturation: occurs when a person

absorbs or learns the culture in which he or she is raised.

 Acculturation: if a person learns the culture of a society

other than the one in which he or she was raised

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• Subjective: People in different cultures often have

different ideas about the same object.

• Enduring: Because culture is shared and passed down

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

• Cumulative: Culture is based on hundreds or even

thousands of years of accumulated circumstances.

• Dynamic: Culture is constantly changing; it adapts

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

employee

1. Individualism-Collectivism

2. Power Distance

3. Uncertainty Avoidance

4. Masculinity–Femininity
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1. Individualism-Collectivism

• Individualistic cultures are cultures in which

people define themselves as an individual and
form looser ties with their groups.
• These cultures value
 Autonomy,
 Independence of the person,
 Self-reliance,
 Creativity.
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• In collectivistic cultures, people define themselves

as part of a group. Collectivistic societies emphasize
conformity to the group.

• The Japanese saying “the nail that sticks up gets

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

• Collectivist cultures may have a greater preference

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

• Power distance refers to the degree to

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

• In low power distance cultures,

egalitarianism is the norm.
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In high power distance cultures,

 People occupying more powerful

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

 Employees are unlikely to question the

power and authority of their manager,

 Managers used to an authoritarian style

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

• Companies operating in high uncertainty

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

 Prefer predictable situations and have

low tolerance for ambiguity.

 Employees expect a clear set of

instructions and clarity in expectations.

 Prefer to avoid risky situations and

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

• Masculine cultures are also characterized by

 Separation of gender roles.

 Men are more likely to be assertive and

competitive compared to women.
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• Feminine cultures are cultures that value

maintaining good relationships, caring for the
weak, and emphasizing quality of life.

• In cultures high in femininity such as Norway

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

• What can organizations do to manage cultural

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

management focuses on results or outcomes rather
than on the techniques and processes used to achieve
them.

• People orientation: The degrees to which

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

• Team orientation: The degree to which work is

organized around teams rather than individuals.
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• Aggressiveness: The degree to which employees

are aggressive and competitive rather than
easygoing.

• Stability: The degree to which organizational

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

• Attention to detail: is the degree to which

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

• There are three major components to any

organization’s culture:

 Observable artifacts,

 Espoused values, and

 Basic underlying assumptions.

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1. Observable artifacts: Artifacts are the visible

and tangible aspects of an organization that people
hear, see or feel.

• There are six major types of artifacts:

 Symbols,  Stories,

 Physical  Rituals,
structures,  Ceremonies
 Language,
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2. Espoused values: are the beliefs, philosophies, and

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

3. Basic underlying assumptions: are the taken-

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

1. It has a boundary-defining role

2. It conveys a sense of identity for organization
members.
3. Culture facilitates the generation of
commitment
4. It enhances social system stability.
5. Culture serves as a sense making and control
mechanism that guides and shapes the
attitudes and behavior of employees.
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Types of Organizational Culture

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• The vertical axis reflects the relative control

orientation of an organization, ranging from
 Stable to Flexible.
• The horizontal axis reflects the relative focus of
attention of an organization, ranging from
 Internal functioning to External functioning.
• The extreme corners of the four quadrants represent
four pure types of organizational culture:
 Bureaucratic, Clan, Entrepreneurial, and Market.
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A. Bureaucratic Culture

• An organization that emphasizes rules, policies,

procedures, chain of command, and centralized
decision making has a bureaucratic culture.

B. Clan Culture

• Tradition, loyalty, personal commitment, extensive

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

D. Market Culture
• An emphasis on sales growth, increased market
share, financial stability, and profitability
are attributes of a market culture.
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Globalization and People at Work

• Globalization involves growing worldwide
interdependence of resource suppliers, product markets,
and business competition.
• To understand the difference in management and
organizational practices among the world’s cultures we
must be familiar with the importance of
 Multinational employers,
 The diversity of multicultural workforces, and
 Expatriate
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Thank You!!!
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Organizational
Behaviour
Chapter Eight
Power and Politics
in Organization
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Power
• Power is ability to get others to do what one
wants them to do.

• Power refers to a capacity that A has to

influence the behavior of B so B acts in
accordance with A’s wishes.
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Leadership Vs. Power

• We define leadership as the ability to
influence a group toward the achievement
of a vision or set of goals.

• Leaders use power as a means of attaining

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

• Managers derive power from both

organizational and individual sources.

• These sources are called

1. Position power and

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

 Reward,

 Coercive, and

 Legitimate power.
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• In an organizational context the

reward power is shown by:
 Increase in money,
A. Reward
 Time off,
Power  Vacation schedules,
 Work assignments,
Reward power is  Favorable performance
appraisals,
the ability to
 Promotions,
apply reward or  Interesting work assignments,
remove negative  Friendly colleagues,

sanctions.  Preferred work shifts etc.

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• Forms of coercion include:

B. Coercive  Criticisms,
 Terminations,
Power
 Reprimands,

Coercive power  Suspensions,

 Warning letters,
is the ability to
 Negative performance
apply
appraisals,
punishment.
 Demotions etc.
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• It represents the power a

person receives as a result of
C. Legitimate
his or her position in the formal
Power hierarchy of an organization.

• Positions of authority include

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

command” to control broader than the power to

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

• There are two bases of personal power:

 Expertise and

 Charisma of the individual.

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

1. Rational persuasion: includes using facts,

data, and logical arguments to try to convince
others that your point of view is the best
alternative.
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2. Inspirational appeals: seek to tap into our values,

emotions, and beliefs to gain support for a request or
course of action.

3. Consultation: refers to the influence agent’s asking

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

4. Ingratiation: refers to different forms of making

others feel good about themselves..
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5. Personal appeal refers to helping another person

because you like them and they asked for your help.

6. Exchange: refers to give-and-take in which

someone does something for you, and you do
something for them in return.

7. Coalition: tactics refer to a group of individuals

working together toward a common goal to influence
others.
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8. Pressure: refers to exerting undue influence

on someone to do what you want or else
something undesirable will occur.

9. Legitimating: tactics occur when the appeal is

based on legitimate or position power. This tactic
relies upon compliance with rules, laws, and
regulations.
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Power in Group Coalitions

• Coalitions are clusters of individuals who temporarily come
together to achieve a specific purpose.
• What predictions can we make about coalition formation?
Coalitions in organizations often seek to maximize their size,
Coalitions relates to the degree of interdependence within
the organization.
Finally, coalition formation will be influenced by the actual
tasks that workers do.
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Organizational Politics

• Organizational politics is the processes, the

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

• Power is a property of system at rest;

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

illegitimate political behavior in an organization.

 Legitimate political behavior is normal everyday

politics like complaining to supervisor, forming coalitions,
etc.

 Illegitimate political behavior is extreme political

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

• There are variety of political activities in which

people engage.

• Attacking or blaming others: Used when

trying to avoid responsibility for failure.

• Using information: Withholding or distorting

information, particularly to hide negative
information.
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• Managing impressions: Bringing positive

attention to one’s self or taking credit for the
positive accomplishments of others.

• Building support for ideas: Making sure that

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

• Praising others: Making important people feel

good.
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Building coalitions: Joining with other people to

create a powerful group.

Associating with influential people: Building

support networks.

Creating obligations: Doing favors for others so

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

• Some are individual characteristics,

derived from the unique qualities of the

people the organization employs;

• others are a result of the organization’s

culture or internal environment.

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 Political skill: refers to peoples’ interpersonal style
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 Internal locus of control: Individuals believe that they

can make a difference in organizational outcomes.

 Investment in the organization: If a person is highly

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

 Expectations of success: When a person expects that

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

• Role Ambiguity: Any type of ambiguity can

relate to greater organizational politics.

• Democratic decision making: Since many

people have a say in the process of making
decisions, there are more people available to
be influenced. Etc.
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Thank You!!!
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Organizational
Behaviour
Chapter Nine
Organizational
Design and Structure
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The Essence of Organizational

Design and Structure

• Organization structure is the structural

framework for carrying out the functions of
planning, decision-making, controlling,
communication, motivation, etc.

• It defines how job tasks are formally

divided, grouped, and coordinated.
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• Organization structure is the arrangement and

interrelationship of the component parts, and
positions of an organization.

• An organization structure has two dimensions:

 Horizontal dimension: identifies departments,

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

 Vertical dimension: refers to the authority

relationships between superiors and subordinates
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• Organizational design is the process of creating,

selecting, or changing the structure of an organization.
• Generally, managers design an organization’s
structure to achieve one or a combination of the
following important objectives.
 Create new institution for new organization
 Respond to change
 Integrating new elements
 Coordinate the components
 Encouraging flexibility
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Element of the Organizational

Structure
Managers need to address six key elements
when they design their organization's structure:

 Work specialization,  Span of control,

 Departmentalization,  Centralization

 Chain of command,  Formalization.

 The Key Question The Answer Provided
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To what degree are activities subdivided into Work Specialization

separate jobs?

On what basis will jobs be grouped together? Departmentalization

To whom do individuals and groups report? Chain Of Command

How many individuals can a manager efficiently Span Of Control
and effectively direct?

Where does decision-making authority lie? Centralization &

Decentralization

To what degree will there be rules and Formalization

regulations to direct employees and managers?
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Key Organization Design

Process /Steps/
• In the process of designing an
organization’s structure, the following steps
are imperative.

• Reviewing existing objectives and

strategies:

• Determining work activities

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Classifying and grouping activities: this involves

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

• Mechanistic and Organic Model

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Mechanistic structures are similar to

bureaucracies, as they are highly formalized
and centralized.

• Communication tends to follow formal channels,

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

structures with low levels of formalization.

• Communication lines are more fluid and flexible.

• Employee job descriptions are broader,
• Employees are asked to perform duties based on
their own expertise levels.
• Tend to be related to higher levels of job satisfaction
on the part of employees.
• Conducive to entrepreneurial behavior and
innovativeness.
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Common Organizational Structure

1. Simple Structure

• A structure characterized by a low degree of

departmentalization, wide spans of control, authority
centralized in a single person, and little formalization.
 Most widely practiced in small businesses
 The strength of the simple structure lies in its simplicity.
 It is fast, flexible, inexpensive to maintain, and
accountability is clear.
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2. The Bureaucracy

• The bureaucracy is characterized by

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

• Essentially, the matrix combines two forms of

departmentalization: functional and product.
• The most obvious structural characteristic of the
matrix is that it breaks the unity-of-command concept.
• Employees in the matrix have two bosses their
functional department managers and their product
managers.
• Therefore, the matrix has a dual chain of command.
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New Design Options

• Three such structural designs:

 Team structure,
 Virtual organization,
 Boundary less organization.
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A. Team Structure; Team Structure is the use of teams as

the central device to coordinate work activities.
B. The Virtual Organization; Virtual organization is a
small, core organization that outsources major business
functions.
• In structural terms, the virtual organization is highly
centralized, with little or no departmentalization.
C. Boundary less Organization; It is an organization that
is not defined by, or limited to, the horizontal, vertical, or
external boundaries imposed by a predefined structure.
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Technology and Job Design

• The concept of socio-technical systems is

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

relationship between technology and job design.

 Automation and robotics

 Flexible manufacturing systems

 Electronic office

 The electronic office, or e-office,

 Work-flow and process reengineering

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You Tube Link

https://www.youtube.com/playlist?list=PL
5SvRn1ByFvtUm_WpzKmK606N0fXCxm3R

Telegram Channel

https://t.me/mella_tutorials
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Thank You!!!