OB Lecture Notes: Perception, Decision-Making & Culture

***[Lecture 3]*** **Learning Objectives** - Understand the perceptual process and why is it important in organisations - Understand how we use perceptions to make judgements at work - Appreciate why are we poor at making judgements about ourselves (attribution error, "unskilled and...

***[Lecture 3]*** **Learning Objectives** - Understand the perceptual process and why is it important in organisations - Understand how we use perceptions to make judgements at work - Appreciate why are we poor at making judgements about ourselves (attribution error, "unskilled and unaware") - Understand how we use perceptions to make decisions (heuristics, satisficing) - Understand that management decisions are rarely (if ever) rational **What is perception? Why is it important?** - Perception: process of organising and interpreting sensory data to make sense of your position vis-à-vis the environment; - Basis for behaviour - Impacts our cognitive and emotional responses ("Social Cognition") **Seeing is Believing..** - "Theory of Mind" -\> our own conception of how others think & how their thoughts influence their behaviour  - Influence our thoughts, judgments & behaviour - Theory of mind influenced by culture & experience (background, education, social upbringing etc.) - Must consider psychological and social limits alongside physiological - Ratification - Multi-stability - The limits of perception **The Limits of Perception** - Not very good a dealing with complexity and ambiguity - TF; perceptions often become (unconsciously) fixed **[Self-Perceptions: Unskilled and Unaware of it]** **Self-Concept** - Self-beliefs and self-evaluations **The Double Curse** - Narrow TOM reduces ability to recognise setbacks & TF; improve **Findings from Dunning et. al (2003)** - Students' exam performance predictions: - **[Perception of Others: Passing Judgement on Others]** **Why it's Important** - In organisations we are constantly expected to: - - - **Attribution Theory** - Behaviour has motivations - Attributing other's behaviour to internal or external factors **Significance of Attribution Errors** - The self-serving nature of attribution errors: - **Significances of Other Biases of "Shortcuts" in Organisations** - The Contrast Effect -- If you want to look attractive, stand next to someone unattractive! **Biases and Other Sources of Error** - *Stereotyping*: assigning traits based on one's social category. - *Confirmation Bias*: seeing what confirms our assumptions and suits our desired course of action - *The Halo Effect*: assuming if someone is good/bad at one thing, they are good/bad at everything - *Anchoring*: using the first piece of information we come across as the comparison for subsequent experiences (Kahneman & Tversky) - *Availability*: basing judgments on readily available information - *Escalation of commitment*: increased commitment to a previous decision in spite of negative information - *Non-Decision Making*: relying on taken-for-granted conventions to make the decision for us **Some Organisational Impacts of Biases** - Recruitment & Selection (interviews) - Performance Management -- overestimating the performance of above average performers and underestimating the performance of below average performers **[Perception and Decision-Making]** **Herbert Simon and Bounded Rationality** - limited information processing capabilities prevent (truly) rational decision-making - Simon suggests that decisions are made on the basis of being able to satisfy certain minimum standards (decision-making is always a social process) **Bounded Rationality** - Decisions are based on incomplete information from a combination of facts and socially-originated values (information that exists in a social context) **Example: Nuclear Power - Yes of No?** - The planet is warming due to CO2 emissions (facts and values) - We need to reduce our CO2 emissions to mitigate the effects of warming (values or facts?) - We need to do this without unduly disturbing our economic system (values) - What are the alternatives to fossil fuels? (only a limited number of practical options) - Nuclear power already exists and is "carbon neutral" (a satisficing decision) **Different Types of Decision-Making Rules** - Heuristics = "rules of thumb" or institutionalised decision rules (e.g., crossing the road) - Formal decision-making rules (e.g., "first look left, then look right") - Experiential decision-making rules (e.g., how fast traffic travels) - Culturally-based decision-making rules (e.g., Do other road users obey the rules?; "jay-walking," **The Importance of Rules of Thumb** - Often use heuristics in management decision-making - Trusting one's "gut instinct" is a combination of formal, experiential, and cultural rules **So What?** - There are limits to perception, which can introduce bias into our judgements and decisions - Decisions are never completely rational (according to the rules of rational decision-making theory) - BUT, by being aware of limitations, biases, etc. we can reduce their negative impact and make better decisions **Key Learning Points** Perceptions form the basis for much behavior in organisations. - There are constraints (psychological, physiological and social) on our perception - These are likely to introduce bias to our judgments about others - This can introduce significant problems into organisational life (e.g., performance measurement, rewards, etc.) - One of the most important biases is in the area of self-perception ("unskilled and unaware of it") - Management decision-making is rarely (if ever) "rational": the importance of bounded rationality and heuristics ***[Lecture 4]*** **Learning Objectives** - Understand what happens when people gather together in groups - Understand why a team isn't just any old group of people - Understand what makes a team effective or ineffective in an organisation? - Understand what we mean by "Distributed Leadership" in the context of teamwork **The Rise and Rise of Teamwork** - Organisational advantages of teamwork; - - - - **The Influence of Group Membership** - Helps develop sense of identity (acquire beliefs, attitudes, values, and characteristic behaviours through social interaction) - Form a social setting where we can exert influence on others (e.g., exhortation, demonstration, coercion, bribery, shame, etc.). - Satisfy needs (social affiliation, common purpose, recognition, etc.) **The Formal and Informal Group Settings** - Groups are ubiquitous in organisations and exert an important influence over the conduct of group members - Groups can be formal or informal (i.e. Human Relations School) - - **What Are Group Dynamics?** - In OB \'group\' takes on a specific meaning...  - - - **Teams vs Groups** Groups Teams --------------------------------- ------------------------------- ----------------------------- Information May be shared Shared and acted on Contribution to Organisation Little awareness Clear understanding Interdependence between Members May recognise Understand value of synergy Externally Imposed Objective Lacking (no specific purpose) Clear objective **Team Effectiveness Model** A diagram of a team Description automatically generated **Team Design** - Task characteristics (ie. complexity) - Team Size -\> process losses, coordination - Team Composition -\> requirement of various skills/knowledge/who is affected by team's work/task **Team States** - Norms: Do we have a shared understanding of how to work together? - Cohesion: Do we identify with the team? What's the quality of relationships? - Team efficacy: Do we believe we can accomplish the task? - Trust: Can we rely on each other? Is it safe to experiment and take risks? **The Process of Team Development** - Teams are dynamic social settings --- form and disband, membership changes etc. - Team values and behavioural norms need to be established quickly & taught to new team members **Tuckman's Model of Team Development**  A diagram of a staircase Description automatically generated **Individual to Team Consciousness**  **Gersick's Punctuated Equilibrium Model** - The punctuated equilibrium model for group development for two groups A diagram of a process Description automatically generated **Group Dynamics: Task & Maintenance** - Group dynamics in this way divide team activities into two generic types: - - **Downsides of Teamwork** - "Groupthink" - Social Loafing - -- The "Ringelmann Effect" - Free-riding - Cultural differences -- "Individualism" vs "Collectivism" **The Ringelmann Effect** **Leadership in Teams** - Traditional conceptions of leadership are not always compatible with teamwork - This led Barry (1991) to develop the concept of "Distributed Leadership." - Importantly, all these leadership qualities are unlikely to be found in one person, and must be shared throughout the team - Different kinds of teams require different kinds of leadership at different times **Distributed Leadership** - There are four types of leadership that must be exercised for a team to be successful: 1. ENVISIONING -- Creating a strong vision of the purpose of the team that can easily be translated into a set of values (maintenance) 2. ORGANISING -- Providing structure through a focus on details, deadlines, and structures (task & maintenance) 3. SPANNING -- Networking, gathering information, championing the team in the rest of the organisation, dealing with outsiders, preventing the team from becoming isolated, etc.; importantly, the spanning leader may have to coordinate the team's activities with the rest of the organisation (task & maintenance) 4. SOCIAL - Negotiation, conflict resolution, "surfacing" problems, confronting anti-social behaviour (maintenance)  ***[Lecture 5]*** **Learning Objectives** - Understand the link between values, attitudes, and behaviour - Develop an appreciation of the importance of job satisfaction as a key attitude at work - Develop an understanding of culture as a system of shared values, attitudes and behaviour **Values, Attitudes, Behaviours** - Values -\> Attitudes -\> Behaviour **Values** - Values are enduring personal beliefs about what is important or valuable - Expression of the "right way" to behave to support a preferred set of social arrangements (e.g. social or moral values such as honesty, fairness) - Values can be characterised in terms of their: - Intensity (e.g. level of significance / importance) - Content (e.g., terminal or instrumental values) **From Values to Attitudes** - Values: - Provide the normative basis for attitudes (i.e., criteria against which we judge the object, person or event and form an attitude about it) - Attitudes: - Evaluative statement about an object, person or event - A persistent tendency to feel and behave in a particular way towards something - Attitudes are characterised by their persistence, valance and direction **From Attitudes to Behaviours** - Attitudes include three components that are theoretically distinct but in reality difficult to separate: - Emotional Component - Positive or negative feeling e.g., good/bad, like/dislike - Behavioural Component - When we hold an attitude we tend to act consistently in a certain way - Informational Component - Judgments about the object, person, event based on our values and beliefs - For example: - Emotional Component - I like / dislike my job - Behavioural Component - I will / will not seek alternative employment - Informational Component - It does / doesn't provide me with the opportunity to do interesting and meaningful work - For example: - Emotional Component - I don't like my job - Behavioural Component - I'm going to speak with my boss to change to a day shift. If this is unsuccessful I will search for a new job - Informational Component - Nightshifts interfere with my family life & I dislike anything that hurts my family **The Functions of Attitudes** - For example: - Attitudes can help predict behaviour at work - Employee attitudes can be changed , but there can be barriers to changing our attitudes such as: - prior commitments (formal knowledge/informal knowledge) - insufficient information - There are ways to change attitudes such as: - providing more information - involving dissatisfied people to improve the situation **Job Satisfaction: A Multidimensional Attitude** - A positive emotional response resulting from the appraisal of one's job or job experience - Represents several related attitudes towards: - Job content - Pay - Career path - Supervision - Co-workers - Influenced by personal values (e.g., autonomy, money, competence, social interaction, etc.) **Job Satisfaction** - Antecedents; (values) - Work Itself - Pay - Promotion - Supervision - Co-workers I \\/ Job Satisfaction (attitude) I \\/ - Outcomes; (behaviour) - \+ Productivity - \+ Positive Citizenship - \+ Better mental and physical health - \- Absenteeism - \- Turnover **Outcomes of Job Satisfaction** - Job satisfaction is also correlated with management practices, notably: - 'Human Relations' approaches to work organisation - Training - Greater input to decisions (discretion, autonomy) - This illustrates the fact that attitudes influence behaviour AND management can influence attitudes **Organisational Culture: Shared Values, Attitudes, Behaviours** - Organisational culture is a shared understanding or set of beliefs about how people should behave in an organisation - A system of shared values, attitudes and behaviours is the 'bedrock' of culture; the "glue" that holds an organisation together - Importantly, culture is a characteristic of groups, not individuals - Although the way individuals behave (i.e. interact, make decisions, communicate...) is shaped by culture - If a sufficient number of people hold the same values over a long enough time then it can be called a "culture" - Culture can exist at several levels (e.g. team, departmental, organisational and national levels) - Culture is historical, associated with stability, defines how things "ought to be " (ie normative/moral) and is one source of people's identity **Influence of Anthropology on OB** - Edward Hall (1950s); - Culture as "The Silent Language" - Culture provides the rules that govern the way we interact with each other (e.g. timekeeping, personal space) - Developed the idea of HIGH-CONTEXT & LOW-CONTEXT cultures **Geert Hofstede -- Social Psychologist** - He demonstrated nations differ in terms of their basic values and attitudes (i.e. preferences for particular ways of behaving that support a preferred set of social arrangements **Dimensions of National Culture (Hofstede, 1980)** - *High vs. Low Power Distance*: Extent to which people accept the unequal distribution of power - *Individualist vs. Collectivist*: Degree to which people prefer to work individually or in groups - *Masculinity vs. Femininity*: Tendency towards achievement, status vs. care for others, quality of life - *High vs. Low Uncertainty Avoidance*: Preference for structured situations, low ambiguity vs. unstructured situations with high ambiguity - *Long vs. short termism*: Tendency for thrift, perseverance vs. respect for tradition, fulfilling social obligations, and protecting one\'s \'face' - *Restraint versus Indulgence*: normative repression, duty vs. satisfaction, pleasure **Why should we care?** - If we want to work effectively, particularly managing staff, we need to understand what shapes behaviour - In part it is a function of social pressures - But it is also shaped by individual values and - attitudes that affect behaviour - Collective values form the basis for culture, which is expressed in the form of characteristic attitudes and behaviours of group members - Most of us will work across cultures so we need to understand the impact of- culture on behaviour ***[Lecture 6]*** **Learning Objectives** - Understand what motivates people in organisations (content theories of motivation) and appreciate why it's important - Understand how motivation occurs (process theories of motivation) - Demonstrate how theories of motivation translate to practical policies such as pay structures and job design **Why is Motivation Important?** - Humans are "intentional" beings -- the internal world of the mind is directed to outside matters - Intentional behaviour is an important feature of several disciplines -- especially business ethics / law and economics - Theories of motivation form the basis for practical interventions in organisations designed to encourage desirable behaviours and discourage undesirable behaviours **What is Motivation?** - Motivation is the degree of effort and persistence directed towards a goal - Effort - The amount of physical and cognitive (mental) effort put into achieving a work related goal (i.e., how hard you try) - Direction - Persistent effort directed towards legitimate goal (i.e., organisational / shared goal) - Persistence - Level of persistence in application of effort to achieve a work related goal (i.e., how long you try despite adversity) **[Content Theories of Motivation]** **Need Theories of Motivation** - Motivation is a process that starts with 1. physiological or psychological deficiency or need that 2. activates a behaviour or drive that is 3. aimed at a goal or incentive - Needs - (e.g., physiological, psychological wants or desires) - Behaviours - (e.g., drive to acquire the goal) - Incentives - (e.g., the goal) **Maslow's Need Hierarchy** - Maslow argued that: - Human actions are motivated by certain universal needs that cluster into five main categories - This assumes an escalating degree of conscious intent -- we pursue a need if we think it is in deficit but, once satisfied, we move on to pursue another need (the "progression" principle) - Needs can be arranged in a hierarchy of importance **Legacy of Maslow's Need Hierarchy** - Content theories lack explanatory power regarding complexities of work motivation - Little evidence of "progression" principle. People will forego lower order needs to pursue higher order ones - But, has had an enduring influence on our understanding of motivation (e.g., Seligman's Positive Psychology Movement) - Provides us with an attractive and appealing idea of how things should be - Crucial influence on our ideas about intrinsic and extrinsic rewards in organisations (e.g. useful for job design) **'Learned or Acquired Needs Model** - People vary in their needs for: - Achievement (Individual responsibility; challenging but achievable goals; clear feedback) - Affiliation (Interpersonal relationships; opportunities to communicate; desire social approval, avoid conflict, support others) - Power (exercise control over environment and others; benefit themselves or group; seek leadership) **[Process Theories of Motivation]** **Expectancy Theory (Vroom, 1964)** - Motivation is determined by the outcomes that people expect to occur as a result of their work activities - People will be motivated to perform in work activities they find attractive (lead to favourable outcomes) and feel they can accomplish. The attractiveness of various work activities depends on the extent to which they lead to favorable personal consequences. - If rewards are not attractive and/or if people feel that they cannot accomplish the activities that lead to rewards, their effort will decrease - Different individuals will perceive different outcomes as more or less desirable (e.g., pay vs. job security): different things will motivate different people. - Effective Motivational force = EP x PO x V - EP = expectancy that extra effort will lead to improved performance - PO = belief that improved performance will lead to a positive outcome (instrumentality) - V = valence (i.e., desirability) for the individual of the expected outcome - Organisational culture is a shared understanding or set of beliefs about how people should behave in an organisation - A system of shared values, attitudes and behaviours is the 'bedrock' of culture; the "glue" that holds an organisation together - Importantly, culture is a characteristic of groups, not individuals - Although the way individuals behave (i.e. interact, make decisions, communicate...) is shaped by culture **Equity Theory (Adams, 1963)** - We compare the effort we invest in a job with the reward we receive (an exchange relationship) - Individuals are motivated to maintain an equitable exchange relationship - We make comparisons with others with similar levels of skill who are doing similar jobs - We come up with a ratio that expresses the comparative equity of effort and reward: - Example: Jim and I have the same qualifications and both have 5 years work experience; Jim makes \$100,000 p.a. but I only make \$60,000... wait a moment, that's not fair! - Inputs; - Characteristics and behaviors a person brings to an exchange relationship - Person defines the relevant or important inputs - Outcomes; - What the person gets from the exchange relationship - Person decides positive and negative character of outcomes **Equity Theory: State of Inequity** **Response to Perceived Inequity** - Perceived inequity -\> Tension within the individual -\> Motivation to reduce tension -\> Inequity Response **How do we respond to inequity?** - Perceptually distort our own effort and reward - Perceptually distort the efforts and rewards of the comparison person - Choose another comparison person - Alter our effort or seek to alter our reward - Move to another job! - Note: Collectivist cultures tend to favour reward allocation based on equality (same reward irrespective of productivity) rather than equity **Practical Implications of Expectancy & Equity Theories** - Tie rewards to performance - Preferably tie them to performance close in time - Use valued rewards (valence) - Watch equity and fairness of the distribution of rewards - Incentive: looks to the future (getting your needs met) - Reward: looks to the past (rewarding prior performance) **Intrinsic Vs. Extrinsic Motivation** - *Intrinsic* -- motivation that stems from the direct relationship between the worker and the task, e.g. feeling of competence, challenge, achievement, making a difference - *Extrinsic* -- motivation that stems from the environment external to the task, e.g. Comes from others such as public recognition, bonus payment **Money and Motivation?** - Money has a 'use' value: what can it buy? - Person A -- makes \$30,000 a year and receives a \$5,000 a year increase - Person B -- makes 150,000 a year and receives a \$5,000 a year increase - Is the \$5,000 a year going to mean the same? - "The love of money is not only one of the strongest moving forces of human life, but money is, in many cases, desired in and of itself." John Stuart Mill, English Philosopher, 1806-1873 - BUT money carries many different meanings... - Security - Freedom - Autonomy - Achievement - Recognition - Status - Self-worth - Respect from others - If money was "off the table", what else could you use to motivate people? **Using Job Design to Motivate People at Work** - The generation of any product or service involves the performance of tasks - Job design involves the combination of tasks into jobs - Principles of Human Relations and job design: - Jobs that have variety, are autonomous, provide feedback, significance for others, and is a complete task are intrinsically motivating, especially when employees are "empowered" - Jobs that are designed according to principles of human relations (breadth/variety and depth/autonomy) are good motivators  **Using Job Design to Motivate People at Work** - Principles of Scientific Management and job design: - Jobs that are designed according to the principles of scientific management (narrow, shallow, low autonomy etc.) appear to be poor motivators - Jobs that are designed according to principles of human relations (breadth, depth, autonomy etc.) are good motivators  **Using Empowerment to Motivate People at Work** - Psychological empowerment dimensions: - Competence - Meaning - Self- determination - Impact - Organisational/social structural characteristics that facilitate empowerment: - Clear vision and challenge - Openness and teamwork - Boundaries - discipline and control - Information sharing - Support and a sense of security **Key Learning Points** - Motivation is a key element of much of our understanding of work behaviour - Theories of motivation concern both what motivates people (humanistic content theories) as well as how they are motivated (cognitive process theories). - Together humanistic and cognitive process theories have important managerial implications for the design and implementation of reward schemes - To enhance intrinsic motivation managers can focus on job design and empowerment ***[Lecture 7]*** **Learning Objectives** - Understand the nature and causes of conflict - Interpersonal conflicts vs Intraorganisational conflicts - Types of conflict (task, process, relationship) - Understanding conflict as a process - Understand how conflict can be managed through processes of negotiation **The Nature of Conflict: What is it?** - Involves two or more parties - Can be overt (i.e., parties are aware of conflict) or covert (i.e., parties are unaware of conflict) but our interest is primarily in overt conflict - One or both parties perceive that the other party or parties has had a negative impact on their interests (or is about to) - Varies in terms of its intensity and importance, as well as the significance of outcomes **What Causes it? Where does it come from?** - Interests: all individuals and groups have interests, although they may not be the same interests! (i.e., not necessarily a "zero-sum" game; people value different rewards; importance of values & culture) - Perceptions: when there is a perceived clash of interests this creates conflict - The immediate causes of conflict with others can be interpersonal or structural (intraorganizational) **Interpersonal Conflicts** +-----------------------------------+-----------------------------------+ | **Causes** | **Examples of potential actions** | +===================================+===================================+ | **Incompatible goals and values | -Encourage perspective-taking: | | (perception)** | try and understand other's point | | | of view | | | | | | -Search for common ground | | | (superordinate goals/shared | | | interests) | +-----------------------------------+-----------------------------------+ | **Communication** | -Develop skills in how to | | | communicate to avoid | | | defensiveness & escalation | | | | | | -Focus on issues/behaviour, not | | | people | | | | | | -Be aware of own emotions and | | | communication style | +-----------------------------------+-----------------------------------+ | **Negative workplace behaviour** | -Practise respectful treatment | | | towards others and be clear you | | | expect it from others | | | | | | -Organisations can send clear | | | messages about what behaviour | | | will not be tolerated (but this | | | needs to be reinforced) | +-----------------------------------+-----------------------------------+ **Intraorganisational Conflicts** +-----------------------------------+-----------------------------------+ | **Causes** | **Potential actions** | +===================================+===================================+ | **Differentiation (incompatible | -Work design (cross-functional | | goals, training, values at a | teams) | | group level)** | | | | -Search for common ground | | | | | | -Emphasise superordinate (shared) | | | goals | +-----------------------------------+-----------------------------------+ | **Interdependence** | -Redesign work to reduce | | | sequential interdependence | | | | | | -Create buffers | +-----------------------------------+-----------------------------------+ | **Scarce resources** | -Increase resources? | | | | | | -Calculate the cost of conflict | | | | | | -Adopt a more cooperative way of | | | allocating resources | +-----------------------------------+-----------------------------------+ | **Ambiguity** | -Clarify rules and procedures | | | | | | -Clarify roles and | | | responsibilities | +-----------------------------------+-----------------------------------+ **Is Conflict Necessarily a Bad Thing?** - "Unitarist" view -- conflict is dysfunctional and avoidable (e.g., Elton Mayo) - Interactionist view -- conflict can be functional OR dysfunctional, and functional conflict should be encouraged, which leads to... - Focused- or Managed-conflict view -- there are some specific cases where conflict can be beneficial (e.g., teamwork, facilitating discussion) **Types of Conflict in Teams** - Task conflict -- "What": differences arise over the legitimacy of a task itself (low to moderate levels can be productive) - Process conflict -- "How": differences arise over how to achieve a task (low levels can be productive) - Relationship conflict -- "Who": mostly destructive **So, Can Conflict be Eliminated?** - The roots of conflict -- actual and perceived threats to interests -- are perennial - History shows us that conflict is a constant feature of all human societies - In organisations, there will always be conflicts arising from interpersonal and structural issues - Thus, there will always be task, process, and relationship conflict - Individual and group differences in values and culture will always exist - Conflict can be managed to some extent (e.g., via negotiation), but it cannot be eliminated entirely **[The Conflict Process]** **A Model of the Conflict Process** - A theoretical model of the process through which conflict takes place - Not all conflicts follow this path, but the model provides a useful way of thinking about conflict as a process - Five stages (potential opposition, cognition and personalisation, conflict handling styles, behaviour, outcome) **Stage One: Potential Opposition** - One or more causes present; provides the potential for overt conflict to emerge - The presence of one or more causes is a necessary, but not sufficient, condition for conflict to emerge - Usually, something has to trigger the conflict ("crossing the line") **Stage Two: Cognition and Personalisation** - If the conditions in stage one threaten the interests of one or more parties, conflict becomes a reality - but need not go any further unless... - Cognition / perception: one or more parties becomes aware of the conflict - but need not go any further unless... - Personalisation / felt conflict: one or more parties experiences conflict - which can lead to intentions... **Stage Three: Conflict Handling Styles** - When a situation is perceived and felt to be conflict, parties to the conflict may form intentions to do something about it - Different conflict handling styles/approaches; - Forcing: I will pursue my own interests regardless of the costs to the other party - Problem-solving: we will seek mutually acceptable outcomes - Avoiding: I can't deal with this - Yielding: I will sacrifice some of my own interests for the sake of the other party - Compromising: we will both sacrifice some of our interests **Conflict Handling Styles** - Cooperativeness - Assertiveness - Low - High - High - Yielding - Problem Solving - Compromising - Forcing - Avoiding **Which Conflict Handling Style?** - Considerations: - How important is the issue to me? - Is this relationship long or short term? - How important is the relationship to me? - Do I know and trust the other party? - How much time, skills and power do I have? - Is the issue emotionally charged? - What style does the other party adopt? - What possible ramifications does this conflict/negotiation have? **Stage Four: Behaviour** - Behaviours can emphasise either: - Conflict resolution; or - Conflict intensification - Behaviours will be informed by - \(a) intentions/ conflict handling style adopted - \(b) (b) the level of conflict **Resolution and Intensification Tactics** - Resolution; - Problem solving - Superordinate goals - Expansion of resources - Avoidance - Smoothing - Compromise - Intensification; - Communication - Bringing in outsiders - Appointing a devil's advocate **Stage Five: Outcomes** - Potential functional outcomes; - Brings into the open problems that have been ignored previously - Challenges 'groupthink' - Encourages new ideas, facilitating innovation and change - May improve decision quality by forcing people to challenge their assumptions - Potential dysfunctional outcomes; - Negative emotions and stress - Reduces communication required for coordination, i.e., leads to inefficiency - Destroys group cohesion **[Managing Conflict Through Negotiation]** **The Negotiation Situation** - Two or more parties (individuals or groups) - Conflict of interest between them, i.e., What one wants is not necessarily what the other wants - Belief that it is possible to get a better deal by influencing the outcome, rather than simply taking what's on offer - The parties prefer to search for agreement, rather than giving in, breaking off the relationship and falling back on BATNA (i.e., the Best Alternative to a Negotiated Agreement) **Prepare for your Negotiation** - What do you want? - What's your best possible outcome? (target point) - What's the least you would accept? (resistance point) - What information can you gather on the other party and their interests? - Who's going to make the first offer? - Can you mix high and low value items? **Best Alternative to a Negotiated Agreement** - Example Negotiated Situation & BANTA: Selling a car - If you have firm offer from one dealer to trade in your car for \$1,000, then this is your BATNA when you negotiate with other potential purchasers - BATNA determines at what point you can walk away from the negotiation - You might take it over an offer of \$1,100 in 30 days (what if it falls through and your original offer lapses?) - Another dealer may offer you \$1,500 against the price of a new car (but it's not the make or model you set out to buy) (Adapted from Lewicki 1994) **Distributive Vs. Integrative Bargaining** **Bargaining Characteristic ** **Distributive Bargaining ** **Integrative Bargaining** -------------------------------- ----------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- **Goal** Get as much of pie as possible Expand pie so both parties are satisfied **Motivation** Win -- lose Win - win **Focus** Position (I can't go beyond this point on this issue) Interests (Can you explain why this issue is so important to you)  **Interests** Opposed  Congruent **Information Sharing** Low (sharing information will only allow the other party to take advantage) High (sharing information will allow each party to find ways to satisfy interests of each party) **Duration of Relationship** Short term  Long term **Key Learning Points** - Conflict arises when one or more parties perceives that another party has negatively affected or is about to negatively affect their interests - Conflict can never be completely eliminated but it can be managed - Its outcomes can be functional or dysfunctional - A common way of managing conflict is negotiation - Negotiation can involve either distributive or integrative bargaining strategies ***[Lecture 8]*** **Learning Objectives** - Understand "Macro" OB vs "Micro" OB - Understand what we mean by ethics - Identify various forms of unethical and ethical behavior in organisations - Understand the causes and consequences of unethical behaviour in organisations - Understand individual and organisational factors that motivate ethical behaviour - Exam preparation: examinable micro and macro topics and cases **Levels of Analysis in OB** **What Do We Mean By Ethics?** - Ethics is a branch of philosophy which considers questions about morality -- what is right and what is wrong -- and how we should behave - What is considered ethical varies over time, location and culture - The boundaries of ethical behaviour are elastic - But there is broad agreement that some behaviours are simply not ethical in the contexts of organisations - Behaviour that is inconsistent with ethical norms, values and beliefs is considered unethical **Types of Unethical Behaviour in Organisations** - Unlawful behaviour - Behaviour that damages the organisation; putting own interests ahead of an organisations - Corruption / nepotism - Lying / cheating / stealing - Discrimination, bullying and abuse - Sexual harassment and abuse - Failure to accept responsibility for consequences of action - Tolerating / encouraging an unethical culture - Behaviour that reaches some minimum moral standards such as honesty or obeying the law - Behaviour that exceeds moral minimums such as charitable giving, reporting unethical behaviour and 'whistle-blowing' - Such behaviour can be interpersonally difficult (i.e. if one has to challenge a peer or superior) and personally risky (risking marginalisation in a group or even job loss) **What Are The Causes of Unethical Behaviour?** - If we can understand the causes of unethical behaviour, we may be in a position to avoid it - Different scholars have focused on different causes - Both personal factors and organisational factors can contribute to unethical behaviour - Personal factors contributing to unethical behaviour include: - Greed / self-interest - Hubris / ego - Personality traits (narcissism, machiavellianism, psychopathy) - Moral disengagement and exclusion - Cognitive biases - Structural factors causing unethical behaviour include: - Excessive power in the hands of a person or group - Rewards linked to unethical behaviour - Low costs of unethical behaviour - Unethical norms - Shareholder orientation - Complexity - Lack of resources - Lack of transparency **What Are The Consequences of Unethical Behaviour?** - In extreme cases, unethical behaviour destroys organisations - It can end long and successful careers - Encourages unethical behaviour in others - Damages the health and wellbeing of other organisational members and stakeholders - Damages the environment (climate change) - Associated with negative attitudes and low motivation of others - Negatively impacts retention of employees, the development of effective networks and investment **What Can Individuals Do?** - Scholars have identified a number of personal factors that provide the motivation and capacity for ethical decision-making: - Moral awareness (sensitivity to ethical issues) - Moral identity (importance of moral traits to self-concept) - Moral efficacy (confidence in ethical decision-making) - Moral courage (perseverance despite adversity) - Affect (e.g. empathy) - Perspective taking "stepping into another personal shoes" - Moral reasoning (e.g. principles, justice, consequences) **What Can Organisations Do?** - The factors that lead to unethical behaviour suggest that it cannot ever be removed entirely. - Indeed, it appears to be a perennial problem, but there are some things which can reduce it and mitigate its negative consequences: - Formal elements: ethics codes and polices, communications, training, monitoring systems, rewards linked to ethical behaviour, penalties for unethical behaviour. - Informal elements: ethical leadership (role-modelling ethical behaviour), ethical culture, perception of fairness. **Key Learning Points** - Ethics concerns questions of what is moral or good - Unethical behaviour breaches ethical norms - Ethical behaviour meets or exceeds ethical norms - Unethical behaviour can be caused by personal and organisational characteristics - It can have serious consequences for individuals, organisations and society - It can never be removed entirely from organisational life, but individuals and organisations can take steps to reduce it ***[Lecture 9]*** **Learning Objectives** - Organisational change is a constant - Organisations operate in a dynamic environment - Understanding how to interpret and respond to factors that drive and resist change is an essential management skill - Wherever your career takes you, you will be expected to plan and implement change **Why study change?** - Organisational change is a constant - Organisations operate in a dynamic environment - Understanding how to interpret and respond to factors that drive and resist change is an essential management skill - Wherever your career takes you, you will be expected to plan and implement change **Model of Organisational Change** **Forces Initiating Change: External and Internal** - External Forces: - Socio-cultural factors: shifts in market tastes / preferences - Technological factors: digital technology, R&D intensity - Economic factors: inflation, income levels - Political and legal factors: standards on safety, environment, labor practices - Internal Forces: - Performance outcomes: employee absenteeism, - shareholder activism - Internal processes: ineffective decision-making, cumbersome procedures - New management philosophy culture / vision - New strategies: objectives, products, markets, businesses **Role of the Change Agent** - Change Agent will: - Identify and interpret forces causing the change - Diagnose the problem (what needs to change) - Decide objectives - Generate solutions (what type of interventions are needed) - Champion the change (communicate vision) - Implement change (unfreeze \> change \> refreeze) - Monitor, review results & get feedback (determine effectiveness) **What Needs Change?** - Power: Perhaps your company has too much top-down decision-making? - Communication: Perhaps your company is withholding important information from its employees? - Culture: Perhaps your company has fallen prey to greed? - Strategy: Perhaps your company has fallen behind technologically? **Types of Intervention: Evolutionary and Revolutionary** **Evolutionary** **Revolutionary** ------------------------------------------------------ -------- ---------------------------------------------------------------------------- Stays relatively stable **←→** Seeks new equilibrium Changes individual parts or departments Transforms entire organisation Makes the most of existing structure and management Creates new structure and management Incrementally changes existing production technology Adopts radically new production technology Improves existing products Introduces path breaking new productsIntroduces path breaking new products **Types of Intervention: Unplanned and Planned** **Lewin's Three-Step Model** **Overcoming Resistance to Change** - Championing Change: - Learning and Communication: reduce misinformation - Involvement and Participation: enhance commitment, increase quality of change decision - Facilitation, Support, Stress Management: reduce anxiety and fear - Negotiation: reduce and overcome conflict - More forceful ways: - Manipulation and co-optation: make change more appealing - Coercion: enforce change - Realigning Staff Profiles: dismiss resistors, hire adopters of change **Refreezing: Supporting Permanent Change** - Reward allocation system: rewards that meet expectations and are aligned to new priorities - Transformational leadership: person with power and authority to provide legitimacy for the change - Coalitions, social networks: in-group members accept and support the change - Effective transmission of new information: people need to know what is expected of them - Diffusion in the change effort: wide spread change carries greater legitimacy **Santa Rosa Systems Division** - Provides a case study of change that demonstrates: - What makes organisational change difficult - Why change initially failed - Why it later succeeded - How to plan and manage change - Shows how a systematic analysis can identify mistakes: Six Silent Killers - Shows how mistakes can be rectified by applying the theory: Organisational Fitness Profiling (OFP) **Six Silent Killers (Beer & Eisenstat, 2000)** - Common mistakes in managing change: 1. 2. 3. 4. 5. 6. **Interventions For Change** -------------------------------------------------------------- --------------------------------------------------------------------------- **Six Silent Killers** **Organisational Fitness Profiling** Management style is either too top down or too laissez faire Engage leadership Unclear strategy/conflicting priorities  Compelling business direction Ineffective senior management team  Effective management team Poor vertical communication Open dialogue Poor horizontal coordination  Coordination Inadequate skills at lower levels  Lower-down Leadership **Managing Change at SRSD** **Six Silent Killers ** **Organisational Fitness Profiling** Management style is either too top down or too laissez faire Partnership forged to include upper and lower levels Unclear strategy/conflicting priorities  Top management develops a common business direction Ineffective senior management team  Top team is involved in change process Poor vertical communication Dialogue is established at lower levels about strategy and barriers Poor horizontal coordination New roles, responsibilities and structures to get people to work together Inadequate skills at lower levels  Skills developed at lower levels via coaching, training, etc. **Key Learning Points** - Organisations operate in a dynamic environment requiring organisations to change - Change can be caused by internal and external factors - Change is a process that requires a change agent who plans and implements and assesses the change - Change can occur in an evolutionary, revolutionary planned and unplanned way - Resistance to change needs to be managed - Organisational Fitness Profiling can help organisation turn Silent Killers into organisational strengths ***[Lecture 10]*** **Learning Objectives** - Understand how to identify an organisation's culture - Understand three theories of culture: - integrationist; - differentiationist; - and critical - Identify organisational culture in practice **We Didn't Use to Care About Culture...** - After the Second World War, managers emphasized economics, operations research, quantitative methods in improving efficiency and effectiveness of organisations - By the 1980s: - Where were the people? - Japanese companies with "strong" cultures were very successful at this time - Managing Culture for Excellence (Peters & Waterman) - A "strong" culture meant a more profitable company - Flurry of research on organisational culture as a way to understand people in organisations **Now We Do Care About Culture...** - Enron - -- The largest bankruptcy in US at the time - -- A culture of "arrogance and greed" - British Petroleum(BP) - -- Explosion on the Deepwater Horizon oil rig - -- A "lax safety culture" - News of the World - -- Phone hacking scandal, Leveson inquiry - -- A "culture of fear" and of "cover up" - Enron - -- 4,000 lost jobs and life savings in pension fund - -- 85,000 jobs lost at Arthur Andersen - -- Skilling jailed for 24 years; Lay died - British Petroleum(BP) - -- Total costs now reaching up to \$38bn - -- CEO Tony Hayward lost his job - -- Government trying to prove gross negligence -- will increase damages -  News of the World - -- Tabloid closed; two editors facing criminal charges - -- Entire company (NI) is under investigation - -- James Murdoch stood down as chairman of News International **Even In Australia** - Australian Defence Force - -- A culture of abuse in the military that led to a series of sex scandals - -- 7 reviews leading to culture change plan - Reserve Bank of Canada - -- A culture of bribery and shady dealings - -- Whistle-blower sacked - -- Did Governor Glenn Stevens know? - Department of Human Services, Victoria - -- Culture of bureaucrats covering up abuse - -- An external review of senior public servants - -- Victorian government trying to find the whistleblowers **Why Culture is Important For You** - Applying for and accepting a job - Being promoted or relocated - Managing or undergoing change esp. mergers and acquisitions - Working in a dysfunctional culture - Whistle-blowing **What is Organisational Culture** - The way we do things around here.... - The "customary and traditional way of thinking and doing things which is shared to a greater or lesser degree by all members and which new members must learn... in order to be accepted into the services of the firm" (Jacques, 1952: 251) **Culture as Shared Meaning** - Shared understandings or meanings about the organisation, its purpose, its members and how they should behave - Relates to values, beliefs, assumptions - Which are reflected in patterns in physical artifacts, language use, symbols, rituals, practices that have evolved over time **How Do We Identify Culture** **Observable Symbols** - Logos, uniforms - Rituals and ceremonies - Performances with beginnings and endings - Well defined roles for the participants and obvious symbolic content - How do you find them? - Deliberate; meant to be observed and meaning usually clear - Can be 'hijacked' or 'subverted' **Physical Layout** - Dress codes, décor, furniture, offices etc. - Physical appearance and attire - How do you find them? - -- Easy to observe by walking around but their meaning can be difficult to interpret **Communication Patterns** - Jargon, acronyms, - Metaphors, nicknames, etc. - Special words or phrases, known only to organisational \'insiders\' - Frequently used, often unconsciously so, and widely shared - How do you find them? - Can listen to the way people talk although may need some interpretation **Stories** - Legends, myths, anecdotes, jokes, etc. - Well-known, shared and passed on by organisational members - Drawn from the organisation\'s past, and often about other members - How do you find them? - Need to talk to different people but check whether they support or challenge the culture; stories and jokes are often a form of resistance **Practices and Behaviours** - How does the organisation regularly do the things that it has to do - Work late/weekends, hold meetings, have coffee breaks - Informal and formal - How do you find them? - Have to "hang around" (ethnographic studies) but the meaning may not be immediately obvious **Values, Beliefs, Assumptions, Feelings** - May be deeply held but people are unaware of how they affect behaviour - May be "espoused" rather than "in use" i.e., stated but not enacted - How do we find them? - -- Ask questions but may not get useful answers because people are unaware; say what they think you want to hear; keep them private. **Culture as Self-reinforcing** - Beliefs and assumptions that form our concepts of "reality" - Influences how we perceive events and how we interpret them - We take beliefs and assumptions for granted -- often only notice them when we move to a different culture **Integrationist Theory of Culture** - Organisations have uniform cultures - A single, uniform strong culture is better - An organisation's culture influences its effectiveness (functionalist) - Provides a common set of values to enable members to work together; reduces need for formal rules - Culture is reproduced; organisation is stable - Culture enables the organisation to survive in the environment in which it operates **Culture and Effectiveness** - The "pattern of basic assumptions that a given group has invented, discovered or developed in learning to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and... taught to new members as the way to perceive, think and feel in relation to problems" **External Adaptation** - Consensus on: - How organisation operates in its environment - Specific goals - Means to accomplish those goals - Criteria for measuring results i.e. whether goals are achieved - Repair strategies -- what to do when things go wrong - Consensus on: - How organisation operates in its environment - Specific goals - Means to accomplish those goals - Criteria for measuring results i.e. whether goals are achieved - Repair strategies -- what to do when things go wrong **Internal Integration** - Consensus on: - Common language - Core values - Boundaries -- who's inside vs. outside - Criteria for the allocation of status, power and authority - Criteria for friendships and relationships - Criteria for allocation of resources **Using Integrationist Theory** - Look for a dominant culture - Widely shared understandings - Consensus throughout the organisation - Individuals with strong organisational commitment - Clear organisational boundaries between who's inside and what's outside - Top down control of culture by leaders - The culture is seen as helping the organisation to function and to be profitable **Managing an Integrationist Culture** - Managers "engineer" create the right type of culture via: - Founders - Selection - Leadership - Socialization - Rewards and punishments - To improve organisational effectiveness - But... - No theoretical basis or empirical evidence for a relationship between culture and performance - Failure of many "excellent" companies especially when market conditions change -- strong cultures may not change easily - Successful companies do not always have strong, integrationist cultures - When strong, integrationist cultures are found, they can be dysfunctional **Differentiationist Theory** - Organisation is a cluster of sub-cultures related to particular challenge, task, responsibility of a unit or group - Consensus is found not at organisational level but in sub- cultures - Relations among sub-cultures can be complementary, conflicting or independent - Boundary between "inside" and "outside" is permeable - Example: University of Melbourne; - Different Faculties have different sub-cultures - Different Departments have different sub-cultures - Different Areas have different sub-cultures **Managing Differentiationist Sub-Cultures** - Middle managers should manage culture - Deans and Department Heads rather than VC - Leaders of research teams - Boundary between "inside" and "outside" is permeable - Research funders, practitioners, professional associations, researchers in other universities - Still sees management of culture as possible and desirable; still functionalist **Critical Theory of Culture** - Both integrationist and differentiationist theories are functional i.e., look at culture from management's point of view - Critical theory takes a different approach -- looks at how employees are affected - Focuses on the way in which power is embedded in culture - Especially interested in how strong culture is a way to control employees **Different Theories of Culture** - Integrationist theory - There is be one unified culture, which should be managed centrally - Differentiationist theory - We can expect multiple sub-cultures, each of which should be managed differently - Critical theory - Culture is a way of exercising control over employees; it should be resisted **Comparing the Theories: Integrationist** - Strengths: - Patterns are easy to look for - Convergence may lead to commitment - Some successful companies have strong cultures - Can be managed top- down - Weaknesses: - Patterns may not tell the whole story - Convergence can be dysfunctional - A strong culture may not bring success - Not all organisations are appropriate for a single uniform culture **Comparing the Theories: Differentiationist** - Strengths: - Emphasizes commitment to the work group - It may be more meaningful for individual experience - It allows for adaptation - Allows more scope for middle managers to manage culture - Weaknesses: - Not clear how different subcultures are supposed to fit together - There may be conflicts among sub-cultures - Movement between sub- units may become difficult - Balkanization; sub- cultures work for self interest rather than common interest **Comparing the Theories: Critical** - Strengths: - Considers negative effects - Shows the hidden ways in which culture affects individuals - Not having a culture or sub-culture is not necessarily "bad" - Weaknesses: - Not everyone perceives the same culture negatively - Some control is inevitable - Cultural controls may be less oppressive than other controls **Key Learning Points** - The Theory - What culture is and how to identify it - Three theories of culture: integrationist; differentiation; critical - The Practice - How to identify the organisation's culture - How to apply the theories to an organisation - How to understand the different things they each reveal ***[Lecture 11]*** **Learning Objectives** - Understand the basic (transmission) communication model (i.e., the encoding, decoding, feedback process) - Recognise how distortion impacts communication - Appreciate the differences between two theories of communication: - Part A. Functional (assumes a rational communicator can craft the optimal message) - Part B. Meaning-centered (assumes that all human interaction communicates a message) - Understand that managers can use metaphors to create meaning and legitimize associated management practices **The Transmission Model of Communication** **Communication is Difficult: Levels of Complexity in Organisations** - One-on-one:is complicated enough! - Teams: are more difficult - Organisations: are very complex! **Part A: Functional Perspectives** - Functional perspective on communication suggests a rational knock-on effect in communication... **Functional Theories of Communication** - Organisations are rational information processing systems - Distortion can be identified and eliminated by correctly identifying: 1. The function of the message 2. What network to use 3. What channel to use 4. What direction to send the message 5. How much and how often to send the message - If a manager has a problem with organisational communication it is because the message was not well designed or not transmitted properly **1. Functional Design: What is the Message's Function?** - Organising - -- Is it about getting people to do things and establishing rules, regulations, policies, etc. - Relationships - -- Is it about establishing relationships between people - Change - -- Is it about learning, problem-solving and adaption - Design your message to fit the function **2. Networks: What Networks Should I Use?** - Networks can be formal, informal, technological - A manager needs to accurately identify the networks they are targetting? - Networks are always "leaky" (i.e., communication via one network can leak into another network) - The grapevine is an important network! **3. Channel: What Channels Should I Use?** **Communication Mode** **Richness ** **Spontaneity ** **Time Commitment** ------------------------- --------------- ------------------ --------------------- Written memos Low  Moderate Moderate E-mail Low High Moderate Phone Moderate High Moderate Written reports Moderate Low High Face-to-face, scheduled High Low High Face-to face, hall talk High High Moderate Video-conferencing High Low High **3. Channel: Choosing the Right Channel?** - Notify everyone in your department (25 people) of the day, time and venue for a meeting - Coordinate two close colleagues to set up a meeting - Provide information on discounted health club facilities offered to employees by the hotel next door - Give negative feedback to a member of your department on their performance - Ask your boss for a raise. **4. Direction: To Whom Should I Direct My Message?** - Horizontal - -- e.g., a colleague - Upward - -- e.g., your boss - Downward - -- e.g., your subordinates - External - -- e.g., the media or your customers **5. Frequency and Load: What is too much & too little information?** - How many messages does it take to get the message across? - How detailed does the message need to be? **Advantages of Functional Theories** - Logical approach to communication - Identifies key aspects of the communication process where things can go wrong - Helps managers choose between different ways of crafting their message - But... - Assumes too much rationality; doesn't deal well with organisational complexity **Disadvantages of Functional Theories** - Functional Theories say... - Communication process starts when sender intentionally encodes and transmits a message, which receiver decodes - Communication means messages and meanings are "passed on" - Communication is completed when the recipient "receives" the same content that the sender wants to give - But... - Communication can take place intentionally or unintentionally, even without deliberately creating and passing on a message - Meanings are not "passed on" but rather "shared"; we interact based on these shared meanings - Communication has effects far beyond the receiver getting the "what" of my message **Part B: Meaning Centred Perspectives** - Meaning centred perspectives suggest that people make their own meaning out of communication with others... **Meaning Centred Theories: Assumptions** - Communication is not simply about transmitting messages on a one-off basis - All human interaction is communicative whether intended or not - Individuals and groups are constantly communicating and on this basis shared understandings / meanings develop - These shared meanings shape our experience of what we believe the organisation is / what it represents - People act on the basis of the meaning they make out of situations (what they see and hear), and whether they share those meanings - Communication is not simply about transmitting messages on a one-off basis - All human interaction is communicative whether intended or not - Individuals and groups are constantly communicating and on this basis shared understandings / meanings develop - These shared meanings shape our experience of what we believe the organisation is / what it represents - People act on the basis of the meaning they make out of situations (what they see and hear), and whether they share those meanings **All Interaction in an Organisation Communicates a Message** - Everything in the organisation communicate a message! - In organisations, the way we: - Organise and make decisions; - Use power to influence others; - Socialise people (i.e., create culture); - What we say and how we say (e.g., managers using particular metaphors) - Says something about the organisation **All Interaction in an Organisation Communicates a Message** - What decisions we make, how we make decisions (e.g., centralised, vs. participative) communicates a message - How we use power (e.g., autocratic vs. democratic) to influence others communicates a message (i.e., enforcing rules vs. empowerment) - How we socialise new members (e.g., conformity vs. compliance) communicates something about the organisation, in particular, its organisational culture - What we say and how we say it communicates a message (e.g., using metaphors, role modelling, telling stories, writing a mission or vision statement, making speeches) - This diagram demonstrates that multiple factors interact to create meaning for people; Communication is not simply what we say... **Using Language (Metaphors) to Communicate a Message** - The use of metaphors demonstrates how managers can use language to shape how others think and, consequently, how they act - A metaphor is a figure of speech containing an implied comparison or association - Managers can use metaphors to: - -- Change the way we think and act as individuals - -- Legitimise organisational practices (i.e., organising & decision-making, power & influence, socialisation and culture) **Metaphor \#1 The Machine Metaphor** - Using a 'machine' metaphor legitimises specific organisational practices (see diagram) - Associations: - Fix and maintain - Change agent = mechanic - Find experts to fix the problem; maybe change the organisation or retrain the operators **Metaphor \#2 The Developmental Metaphor** - Using a 'developmental' metaphor legitimises specific organisational practices (see diagram) - Associations: - Build and develop - Change agent = coach - Build on foundations; develop people **Metaphor \#3 The Transitional Metaphor** - Using a 'transitional' metaphor legitimises specific organisational practices (see diagram) - Associations: - Move and relocate - Change agent = explorer, guide - Need to move on; take a journey, leave old ways behind; find someone to take us there **Metaphor \#4 The Transformational Metaphor** - Using a 'transformational' metaphor legitimises specific organisational practices (see diagram) - Associations; - Liberate and recreate - Change agent = visionary, creator - Rethink the business; reinvent ourselves; find some to create a new vision **Comparing the Theories** - Meaning-Centred; - - - - - - Functional; - - - - - - **Key Learning Points** - The Theory - - - The Practice - -