Organizational Behavior: Management Education

A Misleading Title...

• The field of Organizational Behavior goes beyond marketing and addresses more profound issues.
• OB's objective is to enhance effectiveness and efficiency in individuals within organizations.
• OB has expanded from its psychology origins and is used across many fields.
• Organizational Behavior analyzes the intricacies of organizations and diverse management approaches.
• Chinese management is essential to understand because management approaches differ across countries.
• Relational and critical thinking are emphasized, particularly in organizations, management, and behaviours.
• Behavior primarily focuses on managers and leaders.

Importance in Management Education

• Management education is about shifting from rational to relational and critical thinking.
• It explores organizational themes through contrasting perspectives such as Mainstream and Critical.

Thinking Critically

• This has practical implications for management.
• Aims to identify shortcomings in management thinking.
• Intends to improve the quality of life for employees.
• A main objective is to challenge and refine mainstream perspectives as opposed to replacing them.

Mainstream

• Mainstream's management agenda assumes the priorities and goals of managers.

Functionalities

• This optimizes business functions, including production, finance, marketing, and human resources.
• The goal is to efficiently optimize and combine each function.

Key Principles

• Key principles include efficiency, effectiveness, productivity, progress, and optimization.
• Emphasis is placed on creating positive organizations and pursuing win-win scenarios in management.

Critical Thinking: Challenging the Mainstream Perspective

• Critical thinking questions the origins and implications of mainstream agendas.
• It challenges assumptions of progress and efficiency, and addresses the problem with thinking only positively.
• Often prioritizes management voices while silencing others.

Consequences of the Mainstream Approach

• It impacts power relations within organizations.
• This may lead to alienation vs. emancipation of employees.
• The quality of life at work is impacted.
• Some individuals may significantly benefit while others lose.

Organization

• From an economist's view, organization is optimization.
• From a psychologist's view, organization means group dynamics.
• From a lawyer's view, organization relates to rules, contracts, norms, and regulations.

Organization as a Human Construction

• Organizations exist as human constructs, and have no objective existence.
• Organizations are constructed differently by different people.

Gareth Morgan - "Images of Organization" (1986)

• Over time, organizational thinking has developed new images.
• Human relations within organizations form metaphors on different levels.
• Metaphors comparing familiar concepts help us to understand organizations.
• Certain perspectives can limit alternative views and ways of acting.

Metaphors of Organization

• Machines are characterized by division, specialization, and efficiency.
• Such systems have structured functional separation like departments and roles.
• Organisms involve adaptation to external and internal environments.
• Focus is on whole vs parts, internal-external relationships, and adaptability.
• Cultures are based on collective construction of identity, values, and norms.
• Cultures share modes of thinking and behavior.
• Brains act as systems of knowledge, routines, decisions, memory, and information processing.
• Political systems involve arenas of power, interests, factions, and negotiations.
• Instruments of domination act as systems of control and power relations, leading to alienation.
• Flux and transformation are in a constant state of change.
• These are more visible in times of crisis.
• Uncertainty and decision-making with limited information are key factors.
• Psychic prisons function on organizations, creating limiting mental frameworks.
• Thinking differently within rigid structures can be risky.

The Evolution of Organizational Thinking

• 19th Century - Efficiency & Productivity focused on industrialization, machine-oriented structure, and hierarchy.
• Division of labor and efficiency was key.
• WWII - 1980s - Adaptability & Contingency included organizations adapting as organisms.
• Interdependence and internal-external balance came into play.
• 1980s - Culture & Success Culture viewed organizations as cultures, identity, belonging, and shared values.
• 1980s - Ethics, Social Responsibility & Sustainability placed a growing emphasis on these concepts, such as organizational knowledge, learning, creativity, and innovation.

The Paradoxes of Organizing and Managing

• Mechanistic vs Organic Structures present a paradox.
• Stability vs Change presents a paradox.
• Centralization vs Decentralization presents a paradox.
• Control vs Flexibility presents a paradox.
• Alignment vs Creativity presents a paradox.
• Individual vs Team Orientation presents a paradox.
• The goal is to navigate paradoxes in organizing and managing, rather than solve them.

Questions for Critical Thinking examples

• When is the organic image ideal for understanding organizations?
• When should the mechanistic organization be the preferred solution?
• When do psychic imprisonment phenomena arise?
• What behavioral dynamics are in mechanistic organizations compared to political systems?
• Which organizational images align most with process thinking?
• Where is critical thinking most prevalent in organizational metaphors?
• How does change happen in mechanistic organizations, organisms, and political systems?

Modes of Thinking

• Reality is perceived through our vision.
• However, what is seen only represents a fraction of the whole picture.

The Iceberg of Perception and Organization

• The iceberg is used as a metaphor for perception and organization.
• We see only the visible part of a situation while the majority remains hidden.
• Decision-making tends to only focus on visible elements. i.e underlying processes, dynamics, and influences are often overlooked.
• In competitions, we only see the results, not the unseen efforts, sacrifices, and preparation.
• Success has an invisible network of interactions, failures, and efforts.
• Landscapes act as metaphors for change by appearing to be static and insignificant.
• However, they are in a constant state of evolution.
• Change occurs through processes, for example, the breakdown of rocks by illustrating gradual transformation.

Key Concept: Perception of Movement

• Unchanged appearances do not necessarily mean it is static.
• Transformation and movement can occur, requiring more thought beyond immediate perceptions.

Decision-Making and the Role of Relationships in Organizations

• Decision-making relies on the nature of the relationships.
• It emerges through interactions, shared information, and dependencies.
• Key idea: agetns dynamically shape decisions as they depend on one another.

Beyond Human Interaction: The Role of Technology

• Not just about human relationships, decision-making also involves tools, systems, and technologies.
• Technology is not just a tool, but it shapes how we organize ourselves.
• Human and non-human elements which includes AI, algorithms, and market data play a crucial role.

Two Modes of Thinking: Substance vs. Process

• In understanding organizations, the two main perspectives are substance and process thinking.

Substance Thinking (Static, Fixed View)

• This deals with tangible elements like people, groups, organizations, and societies.
• Knowledge is organized through categories, taxonomies, and typologies.
• To assume homogeneity, certainty, and structured systems.
• Example: Viewing an organization as a fixed structure with defined roles.

Process Thinking (Dynamic, Relational View)

• Focuses on movement, continuous transformation, and relations.
• Emphasizes material heterogeneity, paradox, and ambiguity.
• Organizations are viewed as networks that are fluid and constantly evolving.
• Example: Viewing an organization as a network of constantly shifting interactions.

Organizing vs. Organization

• Organization as a noun refers to a visible structure, often perceived as a fixed entity.
• Organizing as a verb points to a continuous process of negotiation, adaptation, and evolution.
• Critical thinking goes further by analyzing power relations within organizations.

Key Takeaways and Advanced Insights

• Limited perceptions means that only the surface is seen.
• Reality is shaped by deeper mechanisms.
• Organizations are not static and go through constant technological shifts, and interactions.
• Decision-making is relational because it is not just about individuals but also technology, networks, and agents.
• Technology is integral as it actively reshapes how organizations function.
• Thinking in terms of process helps us to understand the fluid nature of organizations better.

The Political Dimension

• Organizations and Conflicts
• Dissimilar objectives often lead to conflicts.
• Organizations operate as political systems and instruments of domination.
• Conflicts can be both positive and negative, while differing management styles can benefit.

Perspectives of Analysis

• Unitary:

• This indicates that conflict is pathological and impacts productivity.

• Conflict must be prevented.

• Management must find the best way to avoid this conflict using principles.

• Pluralist:

• Highlights the formal and informal structure.

• Power has many diverse sources and is politically negotiated.

• Structuralist:

• There is a pattern and inertia.

• Change only happens if there is a problem that you want to initiate.

• Post-structuralist:

• Deconstruct categories are taken for granted by the structuralist perspective such as management, workers and employees.

Tom Burns & George Stalker

• People protect mechanistic organizations.
• Some people are not just members of the company but also a department and group and status.

Andrew Pettigrew Strategies

• Develop norms that deny outsiders.
• Build protective myths and protect the idea that it is a secret to maintain power.
• Control of recruitment and training occurs.

Summary

• A mainstream view is that conflict is pathological.
• The power struggle is a part of organizational life.
• Broader social conflicts are reflected in politics.
• The struggle for power is part of organizational life.
• Conflict is seen as healthy if the organizations have divergent interest groups.
• A crisis prompts change.

Starting Points

• The distribution of power is asymmetrical, so power relations are asymmetrical.
• Gender, age, race, color, national origin, religion, parental and sexual orientation are factors of discrimination.
• Intersectionality: multiple discriminations
• These have to do with power.
• Management must have precautions to avoid any (involuntary) discrimination and mitigate power.

Perspectives on Power

• French & Raven’s mainstream perspectives include these 5 bases of power: reward, coercion, reference, legitimate, and expert.
• Centered upon the individual, managed by Preffer.
• A radical perspective identifies 3 faces of power: visible, hidden, and radical power.
• The least visible power is the hardest to be aware with no alternative reality.

Post-Structuralist power

• The essence of power lies in defining reality for others.
• Those with power regulate through the guise of "truth" by monitoring behavior.

Modern Society-Michel Foucault

• Modern society is a disciplinary society.
• Schools, hospitals, and prisons act as disciplinary mechanisms in modern society.
• There are 3 pillars: Normalisation (gauche), Individualization (droite) and Surveillance (haut).
• Bentham creates a panoptique.
• There are mechanisms to shift focus to psychological control and internalized norms.

Key Concepts of Power

• Central Watchtower (Mirador): A symbol of centralized power and surveillance.
• Constant Visibility: Inmates are always potentially observed, but can't see the observer.
• Uncertainty of Observation: Prisoners are never know knowing if they're being watched.
• Self-Regulation: Inmates internalize control and change their behavior due to potential surveillance.
• Power-Knowledge Relationship: reinforces structures and generates knowledge.
• Beyond Prisons: Foucault extends schools and workplaces.
• Disciplinary Society: Modern social control mechanisms.
• It provides a framework to understand surveillance and illustrates how power operates.

Power

• Power is like a relationship in that it is everywhere in organizations and discourses.
• Power is a dialectical relationship (power-knowledge), and (power-resistance).
• Control and resistance are inseparable in dialectical power relations.
• Knowledge is not neutral, as those in power define what is considered knowledge.
• The systems of knowledge are embedded in power relations.
• Performance and Human Resource (HR) Management are disciplinary or power technologies.

HRM

• Barbara Townley identified HRM as a dividing and distributing tool.
• It includes control activity.
• Specified/measured behaviors are observed to establish objectives in which the individual as a subject and object of power relates to factors such as assessment and interviews.

Why is Motivation needed?

• Motivation is central concern as jobs must motivate and satisfy.
• There is a strong link between motivation, quantity, and the quality of work.
• Motivation is linked to involving employees further.

Background to Need for Motivation

• Fredrick Taylor's Scientific Management in 1911 focused on the "one best way" to perform.
• He separated labor to simplify tasks driven by economic motivation.
• The 1927 Hawthorne Experiments noted that factors beyond physical conditions may influence perfomance.
• Notably, social needs influence work, leading to the human relations movement.

Perspectives

• How does motivation evolve?
• Should it come from within?
• Mainstream focuses on people and efficiency.
• Critical perspectives analyzes how motivations and the self are shaped, as well as if there are gender and power issues.
• Can managers drive motivation and what are the cultural contexts?

Mainstream Approaches

• Content theories unveil truths about motivation, by people like Maslow and Lawrence.
• McGregor is also a noteworthy figure.
• Processes depends on how people think with theories such as Equity, Expectancy, and Goal Setting.

Content Approaches, what motivates us?

• Maslow’s hierarchy consists of (primary) physiological and security needs, as well as (secondary) esteem and self-actualization.
• Douglas McGregor developed Theories X (People are lazy) and Y (People need organization).

Fredrick Herzberg

• Two-Factor Theory: satisfaction depends on (intrinsic factors) achievements, but dissatisfaction depends on (extrinsic factors) salary.
• David McClelland's drives are (power), (achievement), and (affiliation).
• Clayton Alderfer ERG revises Maslow with existence, relatedness, and growth.
• Paul Lawrence & Nitin Nohria has four innate drives.

Process Approaches (How).

• John Stacey Adams equity theory outlines that motivation = input and equity.
• The Victor Vroom Expectancy model is that Performance = Valence x Instrumentality x Expectancy.
• Edwin Locke's, Goal Setting Theory, focuses on goals, and MBO (Management by Objectives), such as specific/achievable ones.
• For example, empowerment or self motivation.

Job Design Principles

• You can maintain a variety by providing autonomy and self-control, as well as professional development.
• Task identity, variety, as well as feedback can help to maintain employee motivation.

Managerial Content in Class

• Key questions include How to design effective teams?, What is the role of psychology?, and What are the dynamics?.
• Teamwork: main ideology
• Not everything is positive and benefits weighed.
• Power reproduces asymetries and control is subtle.

Teams and Groups

• Specific roles and lacks are clear in teams vs groups.
• Belbin's 9 roles include: plant, coordinator, finisher.
• Groups often are creative and help individuals in many ways.
• Groups show signs of development in the shape of (Forming) uncertainty, to (Storming stages), then (Performing product).

Individual Group Thought

• Group behaviors include maintaining and being task oriented as well as considering knowledge.
• Both power and knowledge influence group behavior by having standards that apply to pressure.
• People tend to be creative with thought to be part of a whole and not the nail that stands out.
• Solutions that help include creating a devil's advocate or reducing group size.
• Diversity is key.
• Conflict in teams comes from a difference in management over the team or a desire to have authority.
• Some of the key outcomes desired are higher goals.

Social Influence

• Deutsch & Gerard (1955) identified informational influences of that include comparing and influence.
• Conformity: Solomon Asch
• Milgram: Obedience to authority.
• Focault is key here.

Social Norms

• Biddle and Mutzafer outline the importance of social acceptance.
• Norms include everything from standards to deviance.
• Obedience is authority (Stanley Milgram).
• Authority, Stanley Milgram’s experiments.
• You also get a shift of behavior and opinions when influence within different groups happens.