Unit 5 Understanding Organizational Dynamics of Behavior PDF

UNIT 5 UNDERSTANDING ORGANIZATIONAL DYNAMICS OF BEHAVIOR  Conflict and Negotiation Understanding Power and Organizational Politics Organizational Culture Basic Theories of Leadership Behavioral theories Fiedler model, LMX theory, Path-goal theory Contemporary Issues...

UNIT 5 UNDERSTANDING ORGANIZATIONAL DYNAMICS OF BEHAVIOR  Conflict and Negotiation Understanding Power and Organizational Politics Organizational Culture Basic Theories of Leadership Behavioral theories Fiedler model, LMX theory, Path-goal theory Contemporary Issues in Leadership Practice. Case Study Conflict A process that begins when one party perceives that another party has negatively affected or is about to negatively affect something that the first party cares about. Conflict describes the point in ongoing activity when interactions become disagreement. Conflict arises in organizations over the following issues: 1. Incompatibility of goals 2. Differences in interpretations of facts 3. Disagreements over Behavioural expectations Types of Conflicts 1. Based on the effects of conflicts i. Functional Conflict: Conflict that supports the goals of the group and improves its performance. ii. Dysfunctional Conflict: Conflict that hinders group performance. 2. Based on the types of disagreement. iii. Task Conflict: Conflict over content and goals of work. iv. Relationship Conflict: Conflict based on interpersonal relationship. v. Process Conflict: Conflict over how work gets done. 3. Based on the loci or framework within which conflict occurs vi. Dyadic Conflict: Conflict between two people vii. Intragroup Conflict: Conflict that occurs within a group or a team viii. Intergroup Conflict: Conflict between different groups and teams. The Conflict Process Stage-1 Potential Opposition or Incompatibility i. Communication: Misunderstandings, and “noise” ii. Structure: Size and specialization of jobs, Leadership styles (close or participative), Reward systems (win-lose) iii. Personal Variables: Differing individual value systems, Personality types Stage 2: Cognition and personalization Perceived Conflict: Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise Felt Conflict: Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility. Stage 3: Intentions Decision to act in a certain way. Conflict handing intentions can be falling in two dimensions i. Assertiveness: Attempting to satisfy one’s own concerns. ii. Cooperativeness: Attempting to satisfy the other party’s concerns. The five conflict handling situation are as follow: 1. Competing: A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict. 2. Collaborating: A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties 3. Avoiding: The desire to withdraw from or suppress a conflict. 4. Accommodating: The willingness of one party in a conflict to place the opponent’s interests above his or her own. 5. Compromising: A situation in which each party to a conflict is willing to give up something Stage 4: Behavior Conflict Management Theuse of resolution and stimulation techniques to achieve the desired level of conflict. Stage 5: Outcomes Functional Outcomes from Conflict Increased group performance Improved quality of decisions Stimulation of creativity and innovation Encouragement of interest and curiosity Provision of a medium for problem-solving Creation of an environment for self-evaluation and change Creating Functional Conflict Reward dissent and punish conflict avoiders.  Dysfunctional Outcomes from Conflict Development of discontent Reduced group effectiveness Retarded communication Reduced group cohesiveness Infighting among group members overcomes group goals Negotiations A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. We use negotiations and bargaining interchangeably. BATNA: The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement. Bargaining Strategies Two approaches of negotiations: 1. Distributive Bargaining and 2. Integrative Bargaining. 1. Distributive Bargaining: Negotiation that seeks to divide up a fixed amount of resources; a win- lose situation.  Eg: Bargaining to lower the price of a thing in market.  The identifying features is that it operates under zero-sum conditions- ie., any gain I make is at your expense and vice a versa. 1. Integrative Bargaining: Negotiation that seeks one or more settlements that can create a win- win solution.  Eg: f you do that, I'll pay you 50 percent of the price up front, and the rest over just two years." This is an example of integrative negotiation. The situation has changed from a "win-lose" (a dollar you win is a dollar they lose, and vice versa) to a "win-win" (a better dollar deal for both parties).  Integrative bargaining assumes that one or more of the possible settlements can create a win-win solution. The Negotiation Process 1. Preparation and Planning: Do the homework. The what’s. who’s, where’s as well as the goal of negotiation. 2. Definition of ground rule: Who will negotiate? Where will it will take place? etc.. 3. Clarification and Justification: Explain, clarify and justify the stand parties have taken 4. Bargaining and Problem Solving: In this stage both the parties bargain and come to a concession. 5. Closure and Implementation: Final step where the formalization of agreement and development of the procedures necessary to implement it is done. Power Thecapacity, discretion and means to enforce one’s will over others. Most important aspect of power is dependence Dependence is the extent to which people depend or rely upon a powerful person. Bases of Power The bases or sources of power are of two types: 1. Formal Power and 2. Personal Power 1. Formal Power: It is based on an individual’s position in an organization. They are further classified as follows i. Coercive Power: A power base that depends on fear of the negative results from falling to comply. ii. Reward Power: Compliance achieved based on the ability to distribute rewards that others view as valuable. iii. Legitimate Power: The power a person receives as a result of his or her position in the formal hierarchy of an organization. 2. Personal Power: This power comes from individual unique characteristics. They are further classified as follows i. Expert Power: Influence based on special skills or knowledge ii. Referent Power: Influence based on identification with a person who has desirable resources or personal traits.  Out of all the fives powers, researches have found out the personal powers are most effective.  Both expert and referent power are positively related to employees’ satisfaction with supervision, their organizational commitment, and their performance, whereas reward and legitimate power seem to be unrelated to these outcomes. Coercive power—actually can backfire in that it is negatively related to employee satisfaction and commitment. Dependence: The Key to Power Power is a function of dependance.  General Dependence Postulate:  The greater the dependency the more the power.  When ones posses anything ones require that only they control, one make others dependent and so one gain power.  But if something is plentiful, possessing it will not increase power.  Independence reduces the power others can wield. What Creates Dependency? Dependency increases when the resource one control are important, scarce and non-substitutable Power tactics The ways in which individuals translate power bases into specific actions. The following are the influence tactics 1. Legitimacy: Relying on your authority position or saying a request accords with organizational policies or rules. 2. Rational persuasion: Presenting logical arguments and factual evidence to demonstrate a request is reasonable. 3. Inspirational appeals: Developing emotional commitment by appealing to a target’s values, needs, hopes, and aspirations. 4. Consultation: Increasing the target’s support by involving him or her in deciding how you will accomplish your plan. 5. Exchange: Rewarding the target with benefits or favors in exchange for following a request. 6. Personal appeals: Asking for compliance based on friendship or loyalty. 7. Ingratiation: Using flattery, praise, or friendly behavior prior to making a request. 8. Pressure: Using warnings, repeated demands, and threats. 9. Coalitions: Enlisting the aid or support of others to persuade the target to agree. Use of Power Tactics: From Most to Least Popular Politics: Power in Action PoliticalBehavior: Activities that are not required as part of a person’s formal role in the organization but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization. Factors That Influence Political Behavior Employee Response to Organizational Political Organizational Culture A system of shared meaning held by an organization’s members that distinguishes the organization from others. Primary characteristics of organizational culture are as follows: 1. Innovation and risk taking: The degree to which employees are encouraged to be innovative and take risks. 2. Attention to detail: The degree to which employees are expected to exhibit precision, analysis, and attention to detail. 3. Outcome orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them. 4. People orientation: The degree to which management decisions take into consideration the effect of outcomes on people within the organization. 5. Team orientation: The degree to which work activities are organized around teams rather than individuals. 6. Aggressiveness: The degree to which people are aggressive and competitive rather than easygoing. 7. Stability: The degree to which organizational activities emphasize maintaining the status quo in contrast to growth. Each of these characteristic exists on a continuum from low to high.  Anothercommon cultural framework groups organization into four types, each with its won assumptions, beliefs, values, material symbols and even criteria for effectiveness. 1. The Clan: A culture based on human affiliation. Employees value attachment, collaboration, trust and support. 2. The Adhocracy: A culture based on change. Employee value growth, variety, attention to details, stimulation and autonomy. 3. The Market: A culture based on achievement. Employees value communication, competence and competition. 4. The Hierarchy: A culture based on stability. Employees value communication, formalization and routine. Do Organizations Have Uniform Cultures? Organizational Culture represents a perception that organization’s members share. Core values and dominate values are accepted throughout organization. Dominant culture: A culture that expresses the core values that are shared by a majority of the organization’s members. Core values: The primary or dominant values that are accepted throughout the organization. Subcultures: Mini cultures within an organization, typically defined by department designations and geographical separation. Strong culture: A culture in which the core values are intensely held and widely shared. How Employees Learn Culture Culture is transmit in employees in following ways 1. Stories: People learn about the culture from the stories of their founders, rule braking, rage to riches successes, work force reductions, relocation of employees, reaction to the past mistakes. 2. Rituals: Repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important and which are expendable. 3. Symbols: Physical objects, or artifacts, that symbolize values, beliefs, or assumptions inherent in the organization’s culture. 4. Language: Unique terms describe equipment, officers, key individuals, supplies and customers can help in forming organization culture. Creating and Sustaining Culture The ultimate source of Organization culture are its founders The founders create culture by three ways 1. By hiring and keeping those who think and feel the same way they do 2. Indoctrinating and socializing those employees to their way of thinking and feeling 3. Acting as a role model and encouraging employees to identify with them How Organizational Culture are Formed? Keeping the Culture Alive Three forces play a particularly important part in sustaining a culture 1. Selection: Identify and hire those individuals who fit with the culture of the organization. 2. Top management: Actions of top management affect the culture. They set the norms through word and behavior. 3. Socialization: A process that enables new employees to acquire the social knowledge and necessary skills in order to adapt to the organization’s culture.  Socialization has three stages 1. Prearrival stage: The period of learning in the socialization process that occurs before a new employee joins the organization. 2. Encounter stage: The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations are reality may diverge. 3. Metamorphosis stage: The stage in the socialization process in which a new employee changes and adjusts to the job, work group and organizations. What do Cultures do? Cultures define the boundary ie., it creates distinction between organizations. It conveys a sense of identity for organization members. It facilitates commitment to something larger than individual self- interest. It enhances stability of the social system. Culture as a Liability Barrier to Change: Culture become a liability when shared values don’t agree with those that further the organization's effectiveness. Consistencyof behavior an asset in stable environment, may then burden the organization and make it difficult to response to changes. Ex: Blockbuster, they had the culture of physical store and renting DVDs and resisted to change to online streaming.  Barriers to Diversity: Hiring new employees who differ from the majority in race, age, gender, disability, or other characteristics create a paradox. Management wants new employees to accept the organization’s core cultural values. But at the same time, they want to support the differences that these employees bring to the workplace. Strong cultures put considerable pressure on employees to conform. They limit the range of values and styles that are acceptable. Ex:Google’s culture emphasized hiring people who fit a specific mold—young, analytical, and tech-focused—leading to a lack of diversity. Over time, Google faced criticism and took steps to improve inclusion by adjusting hiring practices and supporting a more diverse workforce.  Barriers to Acquisition and Mergers: Cultural compatibility has become the primary concern. Whether the acquisition actually works seems to have more to do with how well the two organizations’ cultures match up. Ex:Microsoft’s acquisition of Nokia's mobile division faltered due to differences in organizational cultures. Nokia’s engineering-focused culture clashed with Microsoft’s software-centric approach, leading to poor integration and the eventual sale of Nokia’s mobile business. LEADERSHIP Leadership The ability to influence a group toward the achievement of vision or set of goals. Leaders can emerge from within a group as well as by formal appointment. Non-sanctioned leadership- The ability to influence that arises outside of the formal structure of the organization is often mor important than formal influence. Early theories of Leadership They are two types 1. Trait theories: Leaders are born, not made. 2. Behavioral Theories: Leadership can be taught Trait Theories Trait theories of leadership are theories that consider personal qualities and characteristics that differentiate leaders from nonleaders. Certain trait for leaders are as follows 1. Ambition and energy 2. The ambition to lead 3. Honesty and integrity 4. Self-confidence 5. Intelligence 6. Job-relevant knowledge. Limitation of Trait theories No universal traits that predict leadership in all situations. Traits predict behavior better in “weak” than “strong” situations. Unclearevidence of the cause and effect of relationship of leadership and traits. Betterpredictor of the appearance of leadership than distinguishing effective and ineffective leaders. Behavioral Theories Theories proposing that specific behaviors differentiate leaders from nonleaders. These theories of leadership are based upon the belief that great leaders are made, not born. Rooted in behaviorism, this leadership theory focuses on the actions of leaders not on mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation. The behavior approach says that anyone who adopts the appropriate behavior can be a good leader. 1. Ohio State Studies: Described two dimension of leader behavior * Initiating Structure: The extent to which leaders define and structure their roles and those of their subordinates in pursuit of goal attainment. A leader high in initiating structure is someone who assigns followers particular takes, set standards of performance and emphasizes deadline. * Consideration: The extent to which a leader has job relationships that are characterized by mutual trust, respect of the subordinate’s idea and regard for their feelings. A leader high in consideration helps the employees with personal problems, is friendly and approachable, treat all employee as equals and express appreciation and supports (people-oriented). 2. University of Michigan Studies: Has two dimension of leadership effectiveness * Employee-oriented leader: A leader who emphasizes interpersonal relations, takes a personal interest in the needs of employees, and accepts individual differences among members. This is similar to consideration aspect of Ohio State studies * Production-oriented leader: A leader who emphasizes on the technical or task aspects of the job. This is similar to Initiating structure dimension of Ohio State studies. Contingency Theories Contingency theory suggests that the effectiveness of a leader's style depends on context and situation rather than a one-size-fits- all approach. A good leader must, therefore, remain flexible and adapt their approach as required. Two basic types 1. Fiedler Contingency Model 2. Path-goal Theory 1. Fiedler Model Fred Fiedler developed the first comprehensive contingency model for leadership. Thetheory that effective group depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader. LPC(least Preferred Coworker) questionnaire identifies whether a person in task-oriented or relationship-oriented by asking respondents to think of all the coworkers they have been and describe the one they least enjoyed working with. Low LPC (unfavorable terms) means respondent is primary interested in the task. High LPC (favorable terms) means respondent is more relationship oriednted.  After finding the score, a fit is to be found between organizational situational leadership style to have effective leadership. These can be described as three contingency or situation at had i. Leader-member relations: The degree of confidence, trust and respect that subordinates have in leader ii. Task structure: The degree to which job assignments are regimented (that is structured or unstructured) iii. Position power: Influence derived from one’s formal structural position in the organization; includes the power to hire, fire, discipline, promote and give salary increases. Combining the three contingency dimensions yields eight possible situations in which leaders can find themselves  TheFiedler model proposes matching an individual’s LPC score and these eight situations to achieve maximum leadership effectiveness. Fiedlerconcluded that task-oriented leaders perform better in situations very favorable to them and very unfavorable. Relationship-oriented leaders, however, perform better in moderately favorable situations— categories Ingeneral to obtain effective leadership style match leaders—in terms of their LPC scores—with the type of situation—in terms of leader– member relationships, task structure, and position power— for which they were best suited. Findings from the Fiedler Model 2. Path-Goal Theory Developed by Robert House. A theory that states that it is the leader’s job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization. The theory predicts the following i. Directive leadership yields greater satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out. ii. Supportive leadership results in high performance and satisfaction when employees are performing structured tasks. iii. Directive leadership is likely to be perceived as redundant among employees with high ability or considerable experience. Contemporary Theories of Leadership Built on the foundation to establish new ways leaders can emerge, influence and guide their employees and organization. 1. Leader-Member Exchange (LMX) Theory  A theory that suggests (1) leaders and followers have unique relationships that vary in quality and (2) these followers comprise ingroups and outgroups; subordinates with ingroup status will likely have higher performance ratings, less turnover, and greater job satisfaction.  Ingroup: A group that a person identifies with and considers themselves a member of. In-group members tend to have positive views of each other and may give each other preferential treatment.  Out-group: A group that a person doesn't identify with and may view as fundamentally different from themselves. Contemporary Issues in Leadership