Organizational Theory & Behaviour PDF

Organisational Theory & Behaviour How are these related to public service? How similar or different are public and private organizations? ◦ Public and private organizations are fundamentally different ◦ public interests vs private interests ◦ leaders of public organiz...

Organisational Theory & Behaviour How are these related to public service? How similar or different are public and private organizations? ◦ Public and private organizations are fundamentally different ◦ public interests vs private interests ◦ leaders of public organizations are accountable to citizens and voters ◦ public organizations require a greater emphasis on openness,transparency,equal treatment,impartiality and predictability ◦ Are there similarities? ◦ Size ◦ Tasks ◦ Technology ◦ Can we study them together? Public, private, or both? Source: Christensen et.al, 2007 Definition It is the field of study that investigates the impact of individuals, groups and structure on behaviour in the organisation for the purpose of applying such knowledge towards improving organizational effectiveness It is a systematic study of the behaviour and attitudes of both individuals and groups within the organisations Concerns itself with the scientific study or the behavioral process which occurs in work settings” Focuses on understanding and explaining individual and group behaviours in organisations It is concerned with what people do in an organisation and how that behaviour affects performance The understanding, prediction and management of human behaviour in the organisations More micro than macro OB is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within an organization. OB focuses on improving productivity, reducing absenteeism and turnover, and increasing employee job satisfaction and organizational commitment. OB uses systematic study to improve predictions of behaviour. Organizational Theory Focuses on the organisation as the unit of analysis. Organizational attributes such as goals, technology and culture are the subject of study. Organizational theory often uses an across-organizational approach or macro perspective in gathering new knowledge. Human Resources Management Attempts to apply the principles of the behavioral sciences in the workplace While OB is somewhat more concept oriented, HRM is more concerned with applied techniques and behavioral technology. HRM tries to provide a link between the individual and the organisation by designing and implementing systems to attract, develop and motivate individuals within the organisation OT OB Emphasis on the scientific study of behavioral Focuses largely on organizational and phenomena at individual and group level environmental phenomena Level of analysis -Micro/theory oriented Level of analysis - Macro/theory oriented HRM Focuses on the application of behavioral knowledge in selecting, placing, and training personal Level of analysis - Micro/application oriented field of study OB looks at consistencies ◦ What is common about behaviour, and helps predictability? OB is more than common sense ◦ Systematic study, based on scientific evidence OB has few absolutes OB takes a contingency approach ◦ Considers behaviour in context Contributing Disciplines to the OB Field Psychology Sociology Social Psychology Anthropology Political Science Contributing Disciplines to the OB Field Contributing Disciplines to the OB Field (cont’d) Contributing Disciplines to the OB Field (cont’d) Contributing Disciplines to the OB Field (cont’d) Exhibit 1-4 The Layers of OB The Organization Change Organizational culture Decision making The Group Leadership Power and politics Negotiation Conflict Communication The Individual Groups and teams Motivating self and others Emotions Values and attitudes Perception Personalit y Framing the Study of OB The field of Organisational Behaviour (Organisational culture etc) Understanding and managing individual behaviour (Individual differences at work, perception, motivation etc) Group behaviour and interpersonal influence (Managing conflict and negotiations, power and politics etc) Organisational processes (Leadership, Decision-making, communication) Organisational design, change, and innovation (Organisational structure and design, managing organisational change) Evolution of Organisational Behaviour Scientific Management Approach Hawthorne Studies Systems Theory Scientific Management Develop a science of each element of an employee’s work, which replaces the old rule-of- thumb method Scientifically select and then train, teach, and develop the worker, whereas in the past a worker chose the work to do and was self-trained Heartily cooperate to ensure that all work is done in accordance with the principles of science Strive for an almost equal division of work and responsibility between management and nonmanagers The Hawthorne Studies Participatory decision making and decentralization Indidividual and group needs Provoked many managers and academics to focus on employees’ needs, attitudes, and behaviours Western Electric’s Hawthorne plant outside Chicago-effects of illumination on workers’ output Discovered something more than pay incentives improve workers’ output within the work groups Workers felt important and increased their productivity because someone was observing and studying them at work Economic rewards did not totally explain worker behaviour. Workers were observant, complied with norms, and respected informal structure of their group. Systems Theory Systems theory-organization is a managed system that changes inputs into outputs. Inputs Process Outputs Environment Internally- see how and why people within organizations perform their individual and group tasks Externally- relate the transactions of organizations with other organizations and institutions All organizations acquire resources from the outside environment of which they are part of Then, they provide goods and services demanded by the larger environment Managers must deal simultaneously with internal and external aspects of organizational behaviour The flow of inputs and outputs is the basic starting point in describing the organization An organization is an element of a larger system, the environment. With the passage of time, every organization takes, processes, and returns resources to the environment Evidence-based Management 1. The best available scientific evidence—for example, research published on OB 2. The best available organizational evidence—for example, interviews or surveys completed by people in an organization 3. The best available experiential evidence—for example, the intuition of the leader and his or her expert opinions 4. Organizational values and stakeholders’ concerns—for example, stock price or groups that focus on whether the organization employs environmentally friendly practices Critical thinking “Critical thinking calls for persistent effort to examine any belief or supposed form of knowledge in the light of evidence that supports it and the further conclusions to which it tends. 1. the elements of thought (reasoning); 2. the intellectual standards that applied to the elements of reasoning; and 3. the intellectual traits associated with a cultivated critical thinker that result from the consistent and disciplined application of the intellectual standards to the elements of thought Elements of critical thinking Rationality- Rely on reason rather than emotion, require evidence, ignore no known evidence, and follow evidence where it leads, are concerned more with finding the best explanation than being right, analyzing apparent confusion, and asking questions Self-awareness- Weigh the influences of motives and bias, recognize our own assumptions, prejudices, biases, or point of view Honesty-Recognize emotional impulses, selfish motives, nefarious purposes, or other modes of self- deception Open-mindedness- Evaluate all reasonable inferences, consider a variety of possible viewpoints or perspectives, remain open to alternative interpretations, accept a new explanation, model, or paradigm because it explains the evidence better, is simpler, or has fewer inconsistencies or covers more data, accept new priorities in response to a reevaluation of the evidence or reassessment of our real interests, do not reject unpopular views out of hand Elements of critical thinking Discipline- Precise, meticulous, comprehensive, and exhaustive, resist manipulation and irrational appeals, avoid snap judgments Judgment- Recognize the relevance and/or merit of alternative assumptions and perspectives, recognize the extent and weight of evidence Critical thinkers are by nature skeptical. Critical thinkers do not take an egotistical view of the world. 5 errors in solving problem 1. Picking the wrong stakeholders by not paying attention to who really cares about the problem; 2. Selecting too narrow a set of options by overlooking better, more creative options; 3. Phrasing a problem incorrectly by failing to consider at least one “technical” and one “human” variation in stating a problem; 4. Setting the boundaries of a problem too narrowly by ignoring the system the problem is embedded in; and 5. Failing to think systemically by ignoring the connection between parts of the problem and its whole.  SOLVING PROBLEMS USING EBM What businesses are we in? What businesses should we be in? What is our mission? What should our mission be? Who are our prime customers? Who should our customers be? How should we react to a major crisis, especially if we are, or are perceived to be, at fault? How will the outside world perceive our actions? Will others perceive the situation as we do? Are our products and services ethical? Environmental Forces Reshaping Management Practice Power of human resources- Organisation’s ability to get things done on the way it wants them to be done Globalism-Networks that interconnect countries, institutions, and people Diverse workforce- Demographic wise-race, age group, orientation, gender Speed of change- Smartphones, tablets, social networking sites. Shrinking space and distance Psychological contract- Expectation from employer and employee Technology- Processes that convert raw materials or intellectual capital into products or services Challenges facing organisations 1. Improving quality and productivity More and more managers are confronted with the challenge of having to improve their organisations productivity and the quality of their products and services. In improving quality and productivity, they are implementing programmes like TQM and Business Process Reengineering (BPR) 2. Improving people skills/interpersonal skills OB gives the manager the opportunity to completely exercise insight in behaviour, how to alter the behaviour and generally improve interpersonal skills The subject matter of OB helps both practicing managers as well as potential managers to develop skills that can be used on the job Challenges facing organisations (cont…) 3. Managing workforce diversity Workforce diversity has important implication for management – managers will need to shift their philosophy form treating everyone alike to recognizing differences and responding to them in ways that will ensure employee retention and greater productivity. 4. Responding to Globalization The world today is continuous becoming global village. Organisations no longer constraint themselves to national boarders. OB provides us with fundamental concepts to enable us focus on how cultural differences might require managers to modify their managerial practices Challenges facing organisations (cont…) 5. Empowering people Managers are empowering employees; they are putting employees of what to do. They have to learn how to give up control and employees have to learn how to take up responsibility for their work. 6. Stimulating innovativeness and change This implies that today successful organisations must foster innovation and master the art of change, or they become extinct. Victory will go to organisation that maintain flexibility, continually improve quality and beating competition in the market place  Challenges facing organisations (cont…) 7. Coping with temporariness Today change is an ongoing activity for most managers. Managing in the past could be characterized by long periods of stability, interrupted occasionally by short periods of change. But managing today could be described as long period of on going change, interrupted occasionally by short periods of stability The world that most managers and employees face today is that of permanent temporariness. There is permanent change in the jobs themselves, so workers need to continuously update their knowledge and skills to perform new jobs requirements Today managers and employees must learn to cope with temporariness. They have to live with flexibility and unpredictability.  Challenges facing organisations (cont…) 8. Dealing with employees’ loyalty Today, organisations seek to be lean, and mean by closing down operations, moving to low cost regions, closing the less profitable branches, and eliminating entire levels of managing and replacing permanent employees with temporary ones. These kinds of changes result in a decline of employee loyally. Employees perceive that their employers are less committed to them and as a result, they result to being committed to their employer The manager therefore is to devise ways to motivate workers who feel less committed to their employers, but at the same time maintain organizational global competitiveness  Challenges facing organisations (cont…) 9. Improving Ethical Behaviours Organisations today are characterized by cut backs, expectations of improving workers productivity and tough competition in the market place. Due to there pressures, employees feel pressured to cut corners, break roles, and engage in other forms of questionable practices could also be contracted to give guidance to employees Today managers need to create an ethically healthy climate, living by example, for employees where they can do their work productively and confront minimal degree of ambiguity regarding what constitutes right and wrong behaviour. Example Key Findings 1 in 5 employers will allow workers to choose where they want to work 45% of employers say employee productivity decreased while working from home 4 in 10 employers want all employees to be vaccinated against COVID-19 before returning to their workplace Basic Organisational Behaviour Models Autocratic Custodial System System Collegial Characteristics Autocratic Custodial Supportive Collegial System 1. Basis of Power Economic Leadership Partnership Partnership model resources 2. Managerial Authority Money Support Teamwork Teamwork orientation 3. Employee Dependence on Dependence on Participation Self-discipline Self-motivation psychological boss organisation result 4. Employee Subsistence Security Status and Self- Highest order needs met recognition actualisation of needs 5. Performance Minimum Passive Awakened Moderate Full enthusiasm result cooperation drives enthusiasm Case study- Group Behaviour and Interpersonal Influence Farah spent two and half years as a support staff in the busiest branch of a ministry. During that time, she developed close personal friendships among her co-workers. These friendships extended off the job as well. Farah and her friends were the top team in the Ministry’s bowling league. Two months ago, Farah was promoted to be the supervisor. She was excited about the new challenge but was a little surprised that she received the promotion since some other likely candidates in the branch had been with the ministry longer. She began the job with a great deal of optimism and believed her friends would be genuinely happy for her and supportive of her efforts. However, since she became supervisor, things haven’t seemed quite the same. Farah can’t spend nearly as much time with her friends because she is often away from the branch attending management meetings at the main office. A computer training course she must attend two evenings a week has caused her to miss the last social gatherings , and she senses that some of her friends have been acting a little differently toward her recently. Recently, Farah said “ I didn’t know that being part of the management team could make that much difference. Frankly, I never really thought about it. I guess I was naïve. I’m seeing a totally different perspective on the operations of the ministry and have to deal with problems I never knew about” Her promotion has made her a member of more than one group. A member of her old group of friends at the lower level, and also a member of the management team.  PSCI 4344 ORGANIZATIONAL MANAGEMENT A Short History of Organizational Behavior The Greek philosopher PlatoThe Greek philosopher Plato wrote about the essence of leadership. AristotleThe Greek philosopher Plato wrote about the essence of leadership. Aristotle addressed the topic of persuasive communication. The writings of the Chinese philosopher Confucius in 500 BC are beginning to influence contemporary thinking about ethics and leadership. The writings of 16th century Italian philosopher Niccolò Machiavelli laid the foundation for contemporary work on organizational power and politics. 2 In 1776, Adam Smith advocated a new form of organizational structure based on the division of labour. One hundred years later, German sociologist Max Weber wrote about rational organizations and initiated discussion of charismatic leadership. 3 Soon after, Frederick Winslow Taylor Soon after, Frederick Winslow Taylor introduced the systematic use of goal setting and rewards to motivate employees. In the 1920s, Australian- born Harvard professor Elton Mayo and his colleagues conducted productivity studies at Western Electric's Hawthorne plant in the United States. They discovered the importance of formal and informal group dynamics in the workplace, resulting in a dramatic shift towards the ‘human relations’ school of thought. 4 Though it traces its roots back to Max Weber and earlier, organizational studies is generally considered to have begun as an academic discipline with the advent of scientific management in the 1890s, with Taylorism representing the peak of this movement. Proponents of scientific management held that rationalizing the organization with precise sets of instructions and time-motion studies would lead to increased productivity. Studies of different compensation systems were carried out. 5 After the First World War, the focus of organizational studies shifted to analysis of how human factors and psychology affected organizations, a transformation propelled by the identification of the Hawthorne Effect. This Human Relations Movement focused on teams, motivation, and the actualization of the goals of individuals within organizations. Prominent early scholars included Chester Barnard, Henri Fayol Frederick Herzberg, Abraham Maslow, David McClelland, and Victor Vroom.  The Second World War further shifted the field, as the invention of large-scale logistics and operations research. The Second World War further shifted the field, as the invention of large-scale logistics and operations research led to a renewed interest in rationalist approaches to the study of organizations. Interest grew in theory and methods native to the sciences, including systems theory, the study of organizations with a complexity theory perspective. Influential work was done by Herbert Alexander Simon and James G. March. The Second World War further shifted the field, as the invention of large-scale logistics and operations research led to a renewed interest in rationalist approaches to the study of organizations. Interest grew in theory and methods native to the sciences, including systems theory, the study of organizations with a complexity theory perspective and complexity strategy. Influential work was done by Herbert Alexander Simon and James G. March and the so-called "Carnegie School" of organizational behavior. 7  In the 1960s and 1970s, the field was strongly influenced by social psychologyIn the 1960s and 1970s, the field was strongly influenced by social psychology and the emphasis in academic study was on quantitative researchIn the 1960s and 1970s, the field was strongly influenced by social psychology and the emphasis in academic study was on quantitative research. An explosion of theorizing, much of it at Stanford University and Carnegie Mellon, produced Bounded Rationality. In the 1960s and 1970s, the field was strongly influenced by social psychology and the emphasis in academic study was on quantitative research. An explosion of theorizing, much of it at Stanford University and Carnegie Mellon, produced Bounded Rationality, Informal Organization, Contingency Theory, Resource Dependence, Institutional Theory among many others. Starting in the 1980s, cultural explanations of organizations and change became an important part of study. Qualitative methods of study became more acceptable, informed by anthropology. Starting in the 1980s, cultural explanations of organizations and change became an important part of study. Qualitative methods of study became more acceptable, informed by anthropology, psychology. A leading scholar was Karl Weick 8  Frederick Winslow Taylor (1856–1915) was the first person who attempted to study human behavior at work using a systematic approach. Taylor studied human characteristics, social environment, task, physical environment, capacity, speed, durability, cost and their interaction with each other. His overall objective was to reduce and/or remove human variability. 9  Taylor worked to achieve his goal of making work behaviors stable and predictable so that maximum output could be achieved. He relied strongly upon monetary incentive systems, believing that humans are primarily motivated by money. He faced some strong criticism, including being accused of telling managers to treat workers as machines without minds, but his work was very productive and laid many foundation principles for modern management studies. 00 10 An Introduction… Frederick Winslow Taylor (20 March 1856–21 March 1915), widely known as F. W. Taylor, was an American mechanical engineer who sought to improve industrial efficiency. He is regarded as the father of scientific management, and was one of the first management consultants. PRINCIPLES OF TAYLOR: Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. Scientifically select, train, and develop each employee rather than passively leaving them to train Cooperate with the workers to ensure that the scientifically developed methods are being followed. themselves. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks. According to Taylor, Management should :- establish specific work targets pay workers for the tasks and goals met, and provide regular feedback.  The main elements of his theory were:- 1.Management is a true science. The solution to the problem of determining fair work standards and practices could be discovered by experimentation and observation. From this, it follows, that there is "one right way" for work to be performed. 2. The selection of workers is a science. Taylor's "first class worker" was someone suitable for the job. It was management's role to determine the kind of work for which an employee was most suited, and to hire and assign workers accordingly. 3.Workers are to be developed and trained. It is management's task to not only engineer a job that can be performed efficiently, but management is responsible for training the worker as to how the work is to be performed and for updating practices as better ones are developed. This standardizes how the work is performed in the best way. 4. Scientific management is a collaboration of workers and managers. Managers are not responsible for execution of work, but they are responsible for how the work is done. Planning, scheduling, methods, and training are functions of the manager. Taylor's scientific management consisted of four principles: 1.Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. 2.Scientifically select, train, and develop each employee rather than passively leaving them to train themselves. 3.Provide "Detailed instruction and supervision of each worker in the performance of that worker's discrete task" (Montgomery 1997: 250). 4.Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks  These principles were implemented in many factories, often increasing productivity by a factor of three or more. Henry Ford applied Taylor's principles in his automobile factories, and families even began to perform their household tasks based on the results of time and motion studies. His framework for organization was: Clear delineation of authority responsibility separation of planning from operations incentive schemes for workers management by exception task specialization PROBLEMS DUE TO TAYLORISM: 1) It lead to some unscrupolous practices like Rate Cutting. 2) In 1911-12, the US House of Representatives passed a law banning use of stopwatches. 3) It assumes that human beings are like machines and workers are satisfied by money alone.  Taylor's impact has been so great because he developed a concept of work design, work- measurement, production control and other functions, that completely changed the nature of industry. Before scientific management, such departments as work study, personnel, maintenance and quality control did not exist. What was more, his methods proved to be very successful.  The Hawthorne Studies Hawthorne Works of the Western Electric Company near Chicago; 1924-1932 – these studies mark the starting point of the field of Organisational Behaviour Initiated as an attempt to investigate how characteristics of the work setting affect employee fatigue and performance (i.e., lighting). Found that productivity increased regardless of whether illumination was raised or lowered. 00 23 Started in 1924– to examine the relationship between light intensity and employee productivity – a test group and a control group were used – the test group initially did not show any increase or decrease in output in proportion to the increase/decrease in illumination. The control group with unchanged illumination increased output by the same amount overall by the test group. Subsequent phases brought the level of light down to moonlight intensity: the workers could barely see what they were doing, but productivity increased. The results baffled the researchers. Obviously, something besides the level of illumination was causing the change in productivity – the complex human variable. 00 24 The serendipitous results of these experiments provided the impetus for the further study of human behaviour in the work place. Subsequent phase – relay room, where operators assembled relay switches – test specific variables, such as length of workday, rest breaks, and method of payment. – basically the same results – each test period yielded higher productivity than the earlier one. Even when the workers were subjected to the original conditions of experiment, productivity increased–that was causing the change in the output. 00 25  Conclusion – the independent variables (rest pauses, etc.,) were not by themselves causing the change in the dependent variable (output). Something was still not being controlled. The bank wiring room study: the bank wirers were placed in a separate test room. No experimental changes during the study – an observer and an interviewer gathered objective data – department’s regular supervisors were used to maintain order and control. 00 26 Findings were opposite to relay room experiments – output was restricted – informal group norm was lower than management’s – social pressures used to gain compliance with group norms. The incentive system dictated that the more a worker produced, the more money he would earn – Also, the best producers will be laid off last – In spite of this output was restricted. Social ostracism, ridicule, and name-calling were the major sanctions used by the group to enforce this restriction. In some cases, actual physical pressure in the form of a game called ‘binging’ was applied. In this, a worker will be hit as hard as possible, with the privilege of returning one ‘bing’ or hit. Forcing rate- busters play the game was an effective sanction. Group pressures more effective than management incentives 00 27  Implications Workers’ preference to work in the relay room, because of: i. Small group ii. Type of supervision iii Earnings iv Novelty of the situation v. Interest in the experiment vi attention received in the test room The last 3 associated with “Hawthorne Effect” – special attention paid to 00them 28  summary Factors influencing behavior: – Attention from researchers – Manager’s leadership approach – Work group norms The “Hawthorne Effect” 00 29  Mary Parker Follett Management must consider the human side Employees should be involved in job analysis Person with the knowledge should be in control of the work process regardless of position Cross-functioning teams used to accomplish projects 00 30  Douglas McGregor: Theory X and Theory Y Theory X Theory Y Average employee is lazy, Employees will do what is dislikes work, and will try to good for the organization do as little as possible when committed Manager’s task is to Manager’s task is create a supervise closely and work setting that control employees through encourages commitment to reward and punishment organizational goals and provides opportunities for employees to be exercise initiative 00 31  At first employees were considered a cost, then Human Resources, and now are becoming widely recognised as ‘human capital’ (what you know – education, experience, skills). Investing in this capital results in desired performance outcomes such as increased productivity and customer satisfaction. Even going beyond human capital are more recently recognised as ‘social capital’ ( who you know – networks, connections, friends), and ‘positive psychological capital’ ( who you are – confidence, hope, optimism, resiliency and more importantly who you can become, i.e., one’s possible authentic self). 00 32  Growing research evidence that employees’ psychological capital is positively related to their performance and desired attitudes. As the ultimate ‘techie’ Bill Gates observed; “the inventory, the value of my company, walks out the door every evening.” 00 33 “Because management is always about people, its essence is dealing with human nature. Since human nature seems to have been extremely stable over recorded history, the essence of management has been extremely stable over recorded history, the essence of management has been and will be equally stable over time.” Geert Hofstede – International Management scholar 00 34  Challenges to Management Today’s challenges to management: - a turbulent economy - dangerous geopolitics At the organisation’s level: - understanding global competition - diversity - ethical problems 00 35 The nature of work and the work place itself, the traditional employment contract, and the composition of the workforce are all dramatically changing – yet human behaviour is still to be understood in full. Although the problems with human organisations and the solutions over the ages have not changed much, the emphasis and surrounding environmental context have changed. 00 36  E.g., In the 1980s and 90smanagers were preoccupied with restructuring their organisations to improve productivity and meet the competitive challenges in the international market place and quality expectations of customers. – the resulting ‘lean and mean’ organisations offered some short run benefits in terms of lowered costs and improved productivity, instead of making significant changes to meet the changing environment, most organisations continued with more of the same. 00 37  E.g., one analysis of Fortune 500 firms between 1995 and 2005 found – the most prominent initiatives were; - restructuring (downsizing), - cost reduction programmes, - globalising supply chains, - creating shared services, and, - Six Sigma (almost perfect). Top management compensation was primarily tied to stock options and thus to the firm’s stock price – led to high risk mergers, acquisitions, and a highly regulated winner-take-all environment. 00 38 e.g., the head of the nearly century-old investment house Merryl Lynch bet his firm – and ultimately lost – on the sub-prime financial market and out- sized leverage – a whopping $160 mln severance package on exit. This type of behaviour and many other social, economic and geopolitical factors led to the stock market crash in 2008 – most of the focus had been on financial markets, massive unemployment, impact on those not laid off, the remaining employees has been slighted. 00 39  An expert on corporate psychology noted: “After years of downsizing, outsourcing, and a cavalier attitude that treats employees as costs rather than assets, most of today’s workers have concluded that the company no longer values them. So they, in turn, no longer feel engaged in their work or committed to the company.” The turmoil has left employees hurt and fearful, feeling very vulnerable – the single most prominent thought of people all over the world is “I want a good job.” 00 40  The Head of Gallup, at the end of the survey, said: “Work is crucial to every adult human because work holds within it the soul of the relationship of one citizen to one government and one country.” Ideal time for meeting challenges in HRM. “A crisis is a terrible thing to waste.” - Jim Collins The time has come not only to recognise and appreciate the importance of human resources, but also to use recent history as a catalyst for paradigmatic change in the way we understand and use HRs. – What is a “paradigm” shift? Not just keeping up with incremental change, but a new way of thinking about and managing HRs in today’s 00 41 dramatically changed work place.  Paradigm Shift The term comes from the Gk word ‘paradeigma,’ meaning, “ a model, pattern or example.” Introduced by philosophy-of-science historian Thomas Kuhn, paradigm now means a broad model, a framework, a way of thinking or a scheme for understanding reality – the rules , defines the boundaries and tells one how to behave within those boundaries to be successful – impact of globalisation, - work force consisting of post war increase in population, Gen Xers (born in the late 60s and 70s ), and people with inadequate literacy skills from disadvantaged areas, and techies 00 raised on computers has 42 led to a paradigm shift.  E.g., James Brian Quinn refers to the ‘Intelligent enterprise’ as the new paradigm – “ the organisation of enterprises and effective strategies will depend more on development and deployment of intellectual resources than on the management of physical assets.” 00 43  A new set of challenges and required ways of thinking. For today’s and tomorrow’s organisations and management to be successful, there are new rules with different boundaries – require new and different behaviour inside the boundaries for organisations and management to be successful. Paradigm shifts have invalidated the advantages of certain firms, e.g., almost all auto, financial and retail firms, in recent years and created new opportunities for others. (e.g., Google). 00 44  Paradigm effect A situation in which those in the existing paradigm may not even see the changes that are occurring, let alone reason and draw logical inferences and perceptions about changes. – explains why there is considerable resistance to change and why it is difficult to move from old management paradigm to the new. There is discontinuous change in the shift to the new paradigm. 00 45  As one author put it: “ The depth of change required demands that those charged with charting a passage through hurricane like seas do more than run up a new set of sails. What is involved equates to a quantum shift in, not just learning, but how we learn, not just doing things differently, but questioning whether we should be doing many of the things we currently believe in, at all; not just in drawing together more information, but in questioning how we know what it is (we think) we know.” 00 46  PERSONALITY AND PERSON- ENVIRONMENT FIT Define personality and discuss the role of heredity Benefits and limitations of using Myers-Briggs Type Indicator in organizations List and explain the 5 factors in the Big Five theory of personality Summarize the elements of psychological capital Explain the effects of positive and negative core self-evaluations Compare and contrast person-organization fit and person-job fit  The Right Stuff at the Wrong Time? On July 1, 2013, Mark Pincus, the founder and CEO of Zynga, resigned as CEO of the Internet gaming company and announced that he had “fired himself.” The Internet gaming company was a rising star due to the success of the innovative game Words With Friends but experienced difficulties maintaining market share following its IPO in December 2011. Pincus hired Don Mattick, former head of Microsoft’s Xbox division, to replace him. While Pincus remained at Zynga as chairman and chief product officer, the organization needed a different type of leadership style to address the persistent company problems of a company culture that was widely viewed as toxic with employees quitting in droves. Research conducted by Noam Wasserman, who studied founder–CEO succession, concluded that founders often find it difficult to remain as CEO as the company grows and the organization grows and adds employees. A different leadership skill set is needed to manage others, and 80% of the time the founder is not able to make the adjustment to leader of a larger and more complex organization. For example, he or she may keep the original management team on board and be reluctant to make changes to ensure long-term market success and continued growth. The technical guru with the brilliant idea for an Internet start-up like Pincus might not have the right personality for the demands of leading a large organization, which include leadership and political skills. However, in 2015, Pincus returned to Zynga after 2 years of lackluster stock performance under Mattick. To survive against competitors like King (Candy Crush), Zynga needed to become nimble and innovative again. Some questioned whether Pincus’s leadership style could change. And after only 11 months, Pincus again stepped down as CEO in March 2016 after its stocks got slammed under his watch. It seems that Pincus had the right personality and risk-taking traits for a start-up but had difficulty leading a larger organization. From this example, it is clear that understanding personality is essential for being an effective leader. Personality Personality and other individual differences are relatively stable over life course “Regularities in feeling, thought, and action that are characteristic of an individual” Linked to social behaviour at work-work habits, interaction with co-workers Personality (and most individual differences) are not like other areas of organizational behaviour in which managers can influence the outcomes through intervention Individual differences are aspects that has to be understood Have to work with rather than change The Role of Hereditary Are personality traits inborn or learned? Minnesota twin studies- twins (monozygotic and dizygotic) born in Minnesota from 1936-1955 were asked to join a registry. 80% of the surviving intact pairs were located and recruited for various psychological studies. Some were reared apart for various reasons such as adoption. 1. 50% of the variation in occupational choice- hereditary 2. 40% of the variance in values related to work motivation-hereditary, 60%- environment (and measurement error) Psychologists have developed inventories (personality tests) to assess personality differences that are useful for training programs on conflict resolution and team building  Myers-Briggs? The Myers-Briggs Type Indicator (MBTI) is the most often administered personality test to nonpsychiatric populations Over 2 million people take the MBTI every year. Because it was developed and normed on “well people,” it has been a popular approach with organizations and is used by Hallmark, GE, and many other large organizations in their leadership training and development programs. 16 personality “types”-ENTP, INTJ, ESTJ Introversion Extraversion Sensing Intuition Thinking Feeling Judging Perceiving Limitations It’s popular but it is not scientific and backed by evidence (lack of reliability and validity) Should not be used for recruitment or hiring The best use is for conflict resolution or team building-management training programs and classrooms Enable people to discuss personality differences in their approach to works Big Five Personality Theory Not as well-known as MBTI but scientifically supported Personalities could be summarized using five factors: Openness, conscientiousness, extraversion, agreeableness, and neuroticism (OCEAN) TRAIT DESCRIPTION Openness Being curious, original, intellectual, creative, and open to new ideas Conscientiousness Being organized systematic, punctual, achievement-oriented, and dependable Extraversion Being outgoing, talkative, sociable, and enjoying social situations Agreeableness Being affable, tolerant, sensitive, trusting, kind, and warm Neuroticism Being anxious, irritable, temperamental, and moody Big Five Personality Theory Openness-willingness to embrace new ideas and new situations Conscientiousness- a person who follows through and get things done Extraversion- outgoing, talkative, sociable, and enjoy social situations Agreeableness- being a nice person in general Neuroticism- tendency to be anxious or moody (often referred also by its opposite: mood stability) Research uses the Big Five Personality Theory to predict job performance and results indicate that the conscientiousness dimension best predicts performance on the job Conscientiousness is related to job satisfaction, income, and higher occupational status (e.g being an executive, business owners, professionals) Extraversion also has moderate but significant relationship to performance, particularly in sales Big Five Personality Theory Openness-willingness to embrace new ideas and new situations Conscientiousness- a person who follows through and get things done Extraversion- outgoing, talkative, sociable, and enjoy social situations Agreeableness- being a nice person in general Neuroticism- tendency to be anxious or moody (often referred also by its opposite: mood stability) Big Five Personality Theory Research uses the Big Five Personality Theory to predict job performance and results indicate that the conscientiousness dimension best predicts performance on the job Conscientiousness is related to job satisfaction, income, and higher occupational status (e.g being an executive, business owners, professionals) Extraversion also has a moderate but significant relationship to performance, particularly in sales Emotional stability relates to the ability to cope with stress Those with a higher level of openness adjust better to organizational change Personality Traits and Health Research Cardiologists identified a link between personality trait called Type A behaviour and cardiovascular diseases Observe patterns of patients’ behaviour in the waiting room- some sat patiently reading magazines, others sit on the edge of the seats and got up frequently Questions: Do you feel guilty if you use spare time to relax? Do you need to win in order to derive enjoyment from games and sports? Do you generally move, walk, and eat rapidly? Do you often try to do more than one thing at a time?  TYPE C TYPE D TYPE A TYPE B Nice, hardworking The distressed Competitive, aggressive Relaxed, easy-going people who try to personality appease others Combination of 70% of men Type A negative affect (“I feel had coronary heart unhappy) and social diseases inhibition (“I am Association between unable to express myself”) Type A (particularly Rate of recovery is hostility) and heart Clear association between lower for heart disease certain personality traits and disease patients with Example: Do you get higher risk of disease, Type D personality irritated easily? Are suppressed immune system “Type D patients are also at increased risk you bossy and functioning, and slower for psychological domineering? recovery from illnesses distress, psychosocial Type A behaviour (i.e. risks factors, impaired stress energized) quality of life, and exhibited in samples of seem to benefit less from medical and women also invasive treatment”  Personality Types Being able to express your emotion reflect “healthy” Type A Important for people with Type A personality to talk to another person about the stress they are experiencing “Hardy” personality (e.g. letting stress roll off your back rather than ruminating on your problems) has been shown to reduce the potential for personality type to affect health Social support from family, friends, and coworkers can alleviate some of the detrimental effects of personality traits on health Machiavellianism Refers to a person who believes that “end justify the means” Niccolo Machiavelli-The Prince-strategies for gaining and holding onto power in the 16th century. People can be manipulated and that it is permissible to so to realize their goals Mach-a complex set of characteristics: a tendency to distrust others, a willingness to engage in amoral manipulation, a desire to accumulate status for oneself, and a desire to maintain interpersonal control Mach involve behaviours as well as internal beliefs and motivations Positive long-term relationship with task performance- High Mach employees’ performance improved over time-need time to learn the organization’s political system and work themselves into power networks High Mach behaviour is linked to workplace bullying and abusive supervision Supervisors perceive they have more power than the employees  Machiavellianism Individuals perceive they are in rivalry situation-high Mach behaviour increased, falsely inflated own performance, deceive rival for self-gain High Mach personality may engage in unethical behaviour to achieve their goal The Dark Triad Combination of personality traits-Machiavellianism, narcissism, and psychopathy. Narcissism-expression of grandiosity, entitlement, dominance, and superiority Short term- charming, pleasant Long term- Difficulty to trust others and fail to develop effective working relationship Psycopathy- impulsivity and thrill seeking+low empathy and anxiety Lack feelings of guilt, impulsive, immediate gratification Dark Triad personality+exercise of power at work Psycopathy+Machiavellianism→hard tactics (threats and manipulation) Machiavellianism+narcissism→soft tactics (charm, ingratiation, giving compliments) Men are more likely to use hard tactics The Dark Triad Narcissism positively related to salary Machiavellianism positively related to leadership position and career satisfaction Psychopathy was negatively related to all career outcomes Dark Triad as a combination did not predict career satisfaction and success, individual traits may have a relationship to higher salary Self-monitoring Chameleon-like personality- highly adaptable Sensitive to the cues they see in every situation they are in and adapt their behaviour accordingly “ Self-observation and self-control guided by situational cues to social appropriateness” Low self-monitors are true to themselves- do not take cues to change their behaviour from social situations. Consistent in the display of feelings and attitudes regardless of the situation. i.e. A person who gives honest feedback even if it’s hurtful High self-monitors-pay more attention to the actions of others and adjust to fit the situation i.e. withhold negative feedback to allow the other person to “save face” High self-monitors-higher performance ratings and become leader, but lower organizational commitment Better working relationship with bosses than low self-monitors-explain the higher performance ratings Achieve more rapid career mobility since they are able to attain central positions in the powerful networks Self-monitoring Chameleon-like personality- highly adaptable Sensitive to the cues they see in every situation they are in and adapt their behaviour accordingly “ Self-observation and self-control guided by situational cues to social appropriateness” Low self-monitors are true to themselves- do not take cues to change their behaviour from social situations. Consistent in the display of feelings and attitudes regardless of the situation. i.e. A person who gives honest feedback even if it’s hurtful High self-monitors-pay more attention to the actions of others and adjust to fit the situation i.e. withhold negative feedback to allow the other person to “save face” High self-monitors-higher performance ratings and become leader, but lower organizational commitment Better working relationship with bosses than low self-monitors-explain the higher performance ratings Achieve more rapid career mobility since they are able to attain central positions in the powerful networks Risk Taking Risk-taking and risk-averse Risk-taking personality- “any purposive activity that entails novelty or danger sufficient to create anxiety in most people. Risk-taking can be either physical or social, or a combination of the two” Rock-climbers-physical risk, firefighters-social and physical risk, entrepreneur-social risk takers Survey from 77 countries- risk-taking declines across life span, as you age, you take fewer risks Countries that face hardship (social unrest, economic strife)-risk does not decline as people get older Resources are scarce, people must continue to assume risk to compete for resources Psychological Capital Positive organizational behaviour (POB) “ the study and application of positive-oriented human resource strengths and psychological capacities that can be measured, developed, and effectively managed for performance improvement in workplace” PsyCAP-positively related to employee empowerment and engagement Qualities that represent the value of individual differences at the workplace. Focus on “who you are” and “who you becoming” than “what you know” and “who you know”  Dimensions of Positive Psychological Capital The four elements predict job performance and satisfaction PsyCap predicts performance Training and interventions may increase PsyCap PsyCap are relatively stable but can change While emotions and moods change frequently, positive Luthans, F and Youssef CM, Investing in People for Competitive emotions enhanced the role of Advantage PsyCap in explaining why employees are less cynical and showed more citizenship during organizational change Person-Environment Fit When an individual’s personality is aligned with their environment, results in job satisfaction, organizational commitment, better performance on the job, and less likely to quit. PE fit- Person-Organization (PO)- match between the person and the organization Person-Job (PJ)- match between the person ad the job Person-Organization Fit The match between a person’s individual values and the organization they work for Often used in recruitment- employees who “fit in” with the organizational culture Applicants that embrace their organizational culture and values, job candidates are most likely to be interested in working for an organization with aligned values (trust, attractive) Better communication among employees, increased predictability, interpersonal attraction, trust in the organization (key component to explain +ve outcome of PO) Employees feel a sense of psychological ownership-sense of belonging, feel safe, positive, and comfortable Person-Job Fit The lack of fit between the person and the job- relates to higher job burnout and physical symptoms Job characteristics are aligned with employees’ personalities, motivations, and abilities PJ fit includes fir with the work group and the supervisor Two forms: Demands-Abilities (DA)-compatibility between the employee’s knowledge, skills, and abilities and the demands of the job (not too easy or too difficult) Needs-Supplies (NS)- to which extent the job supplies the employee’s needs. Whether the job fulfils the employee’s needs for interesting work and a sense of meaning in their work  John Holland’s Personality-Job Fit Theory Match between personality traits and job demands significantly predicts job performance PJ fit job knowledge relates to lower turnover intentions Personality aligned with work- increases goal direction, vigor, and persistence resulting in high motivation Holland, J.L, Making vocational choices: A theory of vocational personalities and work environments  Activity: Fitting in Somewhere Great Select a small, medium, or large organization you would like to work for and explain why you would be a good fit there (person-organization fit). Glassdoor's Best Places to Work List Revealed | Glassdoor Blog 100++ Most Preferred Graduate Employers To Work For in Malaysia (graduateschoiceaward.com) What would be your ideal position in this organization? Explain why this would be a good fit for you (person-job fit) Why did you select the organization that you would like to work for? What factors did you consider after doing your research on what working there would be like? Why did you select the job that you would like to hold? Did you consider factors other than how you would fit in there such as location, pay, or benefits? Which personality traits do you feel most important regarding how well you would fit in the organization and job you selected? Use the BIG 5 PERSONALITY TRAITS to justify the answer Interpersonal relation U N DE RSTANDING I N T ERPERSONAL R E L ATION T HE JOHA R I WI N DOW S OL I CI TING A N D G I V I NG F E E DBACK Understanding interpersonal relationship Managers need to understand that in supervising individuals, work groups, conducting team building , applying new approaches in management and other activities need effective interpersonal relation. They need to develop an accurate interpersonal perception of oneself and one’s ability to communicate with other effectively. Johari window is a model that explains how managers can improve their interpersonal relationship with others Johari window The Johari window was named after the first names of its inventors , Joseph Luft and Harry Igham. It is one of the most powerful models describing the process of interpersonal relationship. the model explores the importance of self and one’s ability to communicate with others effectively. This model divides information about an individual into four ‘windows’. 1. open 2. blind 3. hidden 4. unknown It is also based on whether the person own values, belief and experience are known to him and to others.  1. Open/ arena This quadrant is known as the public/ arena. This pane contains information about a person which is known to him and others. Due to open exchange of information between a person and others, the information is public and available to everyone. All of the information necessary to carry on effective communication is known to both the communicators and the receivers. For example both managers and subordinates maybe aware he does not like to be near people who smoke cigarettes. Both parties share identical feelings, data, perceptions and skills. The arena is the most desirable domain for building an effective and on-going relationship which increases in size as the level of trust increases between individuals. 2. Blindspot The blindspot, contains information about a person which the person itself does not know but other people knows about it. For example, perhaps in an on-going communication between a and b , a might notice that b eye contact seem to be lacking. A might not say anything , since he does not want to embarrass B. a draws his own inference b is insincere. Blindspot can limit interpersonal effectiveness because person may be unaware of their own potential contribution and detrimental characteristics. 3. Hidden/ facade Hidden area in the pane contains information about a person which he knows but other people do not know. This information is hidden from other people because for fear of if the information is disclosed to other, they might reject, attack, embarrass or hurt other person. Information is sometimes purposely hidden from other people so that it can be used to manipulate and control others. The information such as personal secrets, experiences or organization’s private and confidential data are included in this area. For example you may hide your past bad experience out of fear of embarrassment. 4. Unknown The last pane contains information about that neither a person nor other people around him knows about it. This unknown area represent intrapersonal dynamics, early childhood memories, latent potentialities, and unrecognized resources. The internal boundaries of this pane change depending on the amount of feedback sought and received The information in this quadrants moves from one pane to another as the level of mutual trust and the exchange of feedback varies in the group. As a consequence of this movement, the size and shape of the panes within windows will vary. Feedback and disclosure The main objective of the Johari window is to increase the size of the open/ arena pane. This can be achieved by reducing the hidden area through disclosure- informing others about your own belief, feeling and experiences that may influence the work relationship. The open area also increases through feedback from others about your behavior. Feedback may reduce the blind area. Finally, the combination of disclosure and feedback reveals the information in the unknown area. Johari Window Activity Use the given adjectives to describe yourself (Choose 5 only!) Use the same adjectives and evaluate your partner Compare the list with the list you prepared yourself, and the list prepared by your partner Fill in the Johari Window panes Where an adjective appears on both lists, place it in the Arena Quadrant. If an adjective appears on the individual’s list, but not on the group’s, place it in the Mask Quadrant. When an adjective appears on the group’s list, but not on the individual’s, put it in the Blind Spots quadrant. Any adjective that appeared on neither list can go in the Unknown Quadrant. FEEDBACK 1. feedback solicitation Feedback solicitation is when we actively encourage the other party to provide personal reaction to our behavior, concerns, values and attributes. This will enable us to expand our arena by reducing the blind area when other people inform us about things that we do not realize. 2. self-disclosure Self-disclosure happens when we reveal our feeling and share our concern and values with other people. By sharing more information with others, we increase our arena and reduce our hidden. 3. provision of feedback Arena can be increased when other people provide their personal assement and reaction to our behavior, concerns, values and attributes. Provision of feedback may reduce blind area 4. Facilitation of self-disclosure In facilitation of disclosure, other people actively encourage us to reveal our personal feelings, emotion, concern, values and attributes. Benefits/ rewards of feedback and disclosure. Some of the benefits of feedback and disclosure are 1. satisfaction of each other ‘s social needs through greater depth of personal understanding of both parties’ gain. 2. better group decision through increase awareness and emphasis on the group roles played by each party 3. reduction of interpersonal tension. Managers and subordinates not only share information but they will also start to develop ways to overcome their differences. 4. an increase opportunities for personal development due to ability to overcome weaknesses. Better working relationship. 5. more harmonious interpersonal relationship due to better understanding of each other. It lowers employees’ absenteeism, grievances, and turnover rate. 6. Reduction of interpersonal conflict. Guidelines in providing effective feedback 1. the feedback should be constructive/objective. Not judgmental in nature. 2. it should be directed to specific behavior 3. it should be focused on behavior controllable by the recipient. 4. it should be directed towards important and relevant behavior 5. feedback should be immediately given after a key behavior occurs.  Organizational culture Elements of organizational culture  Definition Organizational culture Consists of the values and assumptions shared within an organization. -It defines what is important and unimportant in the organization and consequently direct everyone in the organization towards the ‘right way’ of doing things. -it is like organization DNA.  It can represent certain predefined policies which guide employees and gives them a sense of direction It decides the way employees interact with each other. It brings employees on a common platform Culture may influence perception It distinguishes one organization from other organization ELEMENTS OF CULTURE (1) the content or what is deemed important (e.g., teamwork, accountability, innovation) (2) the consensus or how widely shared norms are held across people in the organization (3) the intensity of feelings about the importance of the norm (e.g., are people willing to sanction others for violating culture norms?)  Physical structures Stories and legends Languages Rituals and ceremonies Shared values Conscious beliefs Organizational Shared Assumptions Evaluate what is good and wrong Non-conscious, taken for Culture granted. Ideal proto-type of behavior Elements of organizational culture 1. Values Evaluative beliefs that guides our preferences for outcomes or course of actions in a variety of situations. -shared values are values that people within the organization have in common and placed near the top hierarchy of values..  2. Shared assumptions A deeper elements that become the essence of corporate culture - Are nonconscious, taken for granted perceptions or ideal behavior that are considered the correct way to think towards problems and opportunities. - -could not be done simply through observing employees. Needs to analyzing their decisions DIMENSIONS OF CULTURE 1. Innovation and risk taking. 2. Attention to detail. 3. Outcome orientation. 4. People orientation. 5. Team orientation. 6. Aggressiveness (easygoingness reversed). 7. Stability  NETFLIX Netflix’s Organizational Culture: An “Unusual Employee Culture” Netflix Inc.’s corporate culture is based on a core philosophy that prioritizes people. The corporation addresses the needs of its human resources to ensure that its online business processes are effective and profitable. This organizational culture contributes to the streaming company’s employee morale, effectiveness, and overall human resource development. The following are the main traits that characterize Netflix’s corporate culture: 1. Independent decision-making (Autonomy) 2. Open, broad, and deliberate information sharing (Communication) 3. Extraordinary candidness (Attitude) 4. Focus on high effectiveness (Productivity and Effectiveness) 5. Rule avoidance (Rules and Organizational Rigidity) Hofstede’s Cultural Onion Types of culture Dominant culture Subculture Counter culture  Organizational subculture which consist of the core values of the dominant culture and additional values unique to the subculture. Subcultures form when a group of people within an organization share a situation, problem, or experience that is unique to them. Areas of differentiation that can cause subcultures to form in organizations include geographical separation, departmental designations, functional specialty, tenure, and identity.  Strong culture The organizational core values are intensely held and widely shared: Have a great influence on employees behavior Increase cohesiveness Low employees turnover  National Culture and Organizational Culture National culture has a strong influence on organizational culture However, the values of the founders of companies and key leaders also have influence on organizational culture National culture constrains organizational culture, partially  High-context cultures rely heavily on situational cues for meaning when perceiving and communicating with others. For example, in a high-context culture, a person may need to get to know a negotiating partner as a person before proceeding to business. Low-context cultures- written and spoken words carry the burden of shared meanings. So when negotiating with a person from a low-context culture, you can expect that the person will want to see a written formal agreement early in the process as a reference. Employees bring their national culture values to work every day, and understanding them is essential to succeed as a leader.  Cultural Tightness This research found the 33 cultures studied varied concerning tightness– looseness. Tight cultures had more social controls and were more likely to be autocratic. For instance, they were also more likely to have more rules and laws Examples of tight cultures are India, Malaysia, and Pakistan. Examples of relatively loose cultures are Hungary, Israel, and Ukraine. The United States had a score of 5.1, a bit below the overall average score of 6.5 across all respondents from all cultures. Researchers found that tightness is positively related to perceptions that autonomous leadership is effective and negatively related to perceptions that team-oriented leadership is effective. Employees in tight cultures prefer independent leaders who do not rely on others, perhaps because they prefer decisiveness. Tight cultures did not view charismatic leadership as effective, compared with loose cultures.  Creating an ethical organizational culture A strong culture with high-risk- tolerance Low -to -moderate aggressiveness and focuses on means as well as the outcomes. Manager must play a visible role Communicate ethical expectation Reward ethical behavior Provide protective mechanism CULTURAL VALUES  CULTURAL VALUES Power distance—deference to authority (e.g., the United States is low, China is high) Collectivism–individualism—group orientation (e.g., the United States is low, Russia is high) Uncertainty avoidance—risk aversion (e.g., the United States is low, France is high) Relationship orientation (masculinity–femininity)—a focus on people over material things (e.g., the United States is low and the Netherlands is high on femininity/relationship orientation) Confucian dynamism (long-term orientation)—a focus on the future rather than the past and present (e.g., the United States is low, Japan is high) Indulgence—how much each individual lacks control of their desires and impulses compared with its opposite of restraint (being repressed) (e.g., China is low, the United States is high).  4 Organizational Culture Adaptability Involvement Mission Consistency Denison Model of Organizational Culture MISSION: Do we know where we are going? ADAPTABILITY : Are we responding to the marketplace/ external environment? INVOLVEMENT : Are our people aligned and engaged? CONSISTENCY: Do we have the values, systems and processes in place to create leverage?  Mission and consistency are most related to profitability. Adaptability and mission are the best predictors of sales growth. Adaptability and involvement best predict innovation These organizational culture values appear relevant to all cultures; however, they are expressed differently in each culture For example, a study involving surveys from 179 foreign- owned firms operating in Russia and case studies found that all four values matter, but adaptability was most important for Russian organizations. Another study related the 4 Denison culture values to knowledge management in the Khorasan Province in Iran. This study found that all four cultural values contributed significantly to knowledge management (using knowledge to solve problems and make decisions). While what constitutes a strong culture may vary, research suggests that having a strong organizational culture makes a difference in organizational effectiveness in all cultural contexts.  Relationship between Organizational Culture Organizational Structure and Performance Strong culture theory assumes that if managers and employees within an organization are fully committed to collective principles, customs and morals this will result in positive outcomes in the organization. The theory suggests that there is a relationship between strong corporate culture and organization performance or profits. – Denison (1984) states the point as follows; “the ‘strength’ of ‘corporate culture’ is directly correlated with the level of profits in a company”.  Some researchers argue that high performance within an organization leads to the birth of strong culture. The argument is that, if an organization is performing well, there will be collective principles, customs and morals within the organization. A particular way of ‘how we do thing around here’ will be developed and there will be less disagreement to how ‘things are done’.. This culture proves to be more than just a product of high performance but also a critical element that leads and contributes to the organizational success.  Once an organization has made a decision on how it expects its employees to act in the workplace, what employee attitude it expects, what it wants its employees to achieve, it can then implement its structure and promote the growth of culture morals and customs to achieve these anticipated boldness, manners and objectives. Structure does not only lead to increased organizational capabilities, but also the processes that result in increased performance  Barrier to change Culture is slow to change even in a dynamic environment Barrier to diversity Culture seeks to minimize diversity Culture embed prevalent bias and prejudice Barrier to acquisition and merger The ultimate source of organization culture is its founder Founder create culture in three ways -by hiring and keeping employee who think and feel the same way they do -Indoctrinating and socializing those employee they way of thinking and feeling -acting as a role model and encouraging employees to identify with them -Selections- seek out those who fit in Top management : Establish norm and behavior by their action Socialization: help new employees to adapt  Organizational Socialization The process an organization utilizes to ensure that new members acquire the necessary attitudes, behaviors, knowledge, and skills to become productive organizational members Organizational anticipatory socialization- the process an individual goes through to find an organization to join. Organizational anticipatory socialization has two basic processes: recruiting and selection. Andrew Greenberg  Entry and Assimilation Preentry stage First, the types of messages a new employee receives from the organization prior to starting work could include realistic job previews in which the members of the organization attempt to clarify what the job will be like. These might be different than what was discussed in the hiring process and may be either positive or negative surprises. Second, new employees are typically concerned about how they are seen by existing organizational members and engage in impression management —the process (either conscious or unconscious) where an individual deliberately attempts to influence the perceptions and opinions of others. For example, the new hire might mention the rankings of their university to enhance the perceptions of their qualifications for the job. Third, current organizational members form perceptions of the new hire and consider how well they will fit in. These perceptions may result in unrealistic expectations, so it’s important to seek feedback in a new job to correct misconceptions.  Entry and Assimilation Entry stage The new member begins to assimilate within the organizational culture. During the entry period, new employees begin to understand the organization’s culture and work expectations. This may include a formal orientation program to help the new employee learn the rules and expectations of the organization—the explicit dictates that govern employee behavior within the organization. For example, an orientation program may include a session on the ethical code of the organization. Onboarding is the process of welcoming and orienting new organizational members to facilitate their adjustment to the organization, its culture, and its practices. It refers to the process of facilitating new members’ adjustment to the organization and its culture Expectations regarding what the psychosocial contract is with the organization, and this influences the degree to which they view onboarding processes (such as an orientation training program) as being valuable The informal expectations about how new employees should behave within the organization are “unwritten rules” that govern how new employees should act. For example, employees maybe expected to eat lunch at their desk while working, but this is not specifically written down anywhere.  This Photo by Unknown Author is licensed under CC B Metamorphosis A person transforms from a new employee to an established contributor who is valued and trusted by other members of the organization. Metamorphosis completes the socialization process—the new employee is comfortable with the organization, their boss, and their work group. They have internalized the organizational culture and understand their job as well as the rules, procedures, and norms. Expectations are clear regarding what good performance means in the organization. Successful metamorphosis positively affects job performance, job satisfaction, and commitment to the organization. There is a lower chance that the person will look for another job or quit. Most often, this transition occurs over a long period. However, the process may start over again (pre-entry and assimilation to metamorphosis) if a person gets a promotion to a new role in the organization.  Culture is transmitted through 1. Stories: provide explanation 2. Rituals: reinforce key values 3. Material symbols: convey importance 4. Language: segregate others  Storytelling is the sharing of knowledge and experiences through narrative and anecdotes to communicate lessons, complex ideas, concepts, and causal connections Stories Stories are important because they aid comprehension and suggest a causal order for events. They convey shared meanings and values representing the organizational culture and guide behavior This Photo by Unknown Author is licensed under CC BY-NC-ND  Rituals Rituals are defined as “a form of social action in which a group’s values and identity are publicly demonstrated or enacted in a stylized manner, within the context of a specific occasion or event Rituals reinforce the cultural values of the organization by providing a tangible way for employees to see the values espoused Another example is the Grammy Awards, a ritual that reinforces the cultural values of the National Academy of Recording Arts and Sciences through performances, emotionally charged awards, legitimacy of artists, and creating links among the members  Symbol Symbols represent the sharing of knowledge through access and exposure to images, diagrams, or objects that represent or illustrate a cultural value or an idea. Examples include a map of a city, the alien emoji, or a corporate logo Symbols are important to organizations—they are not accidental; they are planned to communicate what the organizational culture represents Material symbols are office size and whether or not the office has a window. The C-suite offices may be located on the top floor of the building to reinforce the idea that these individuals have attained the highest level in the organization. Symbols include how a leader is expected to dress at work. For example, while it may not be written down as a policy, new managers may be expected to wear navy blue or gray suits. Example of the power of symbols comes from the CEO of a hospital who wanted to reinforce the value of transparency in the organization. He had an open-door policy where anyone in the organization could come in and talk to him about their concerns. He created a symbol by having the doors of his office removed from their hinges and then hung up inside the lobby of the hospital so that everyone in the organization would see them and be reminded of his message every single day they walked in and out of the building. This symbol of his transparency was more effective than sending out an e-mail to communicate his open-door policy with the same message  Language Employees may communicate using culture- specific language, jargon, or acronyms that can be confusing to a new employee. These terms and usage may be unique to the organization and represent the organizational culture and how it is transmitted to newcomers. The language used to refer to employees reflects underlying values. For example, some organizations have stopped using the term employees in favor of team members. Another example is how employees at Disneyland are trained to refer to customers as “guests.” Rides are referred to as “attractions.” This Photo by Unknown Author is licensed under CC BY Disneyland is divided into “backstage,” “on- stage,” and “staging” regions.54 The language used by Disneyland employees demonstrates its core values of valuing guests and providing a “magical experience” for them as part of its strong organizational culture.  Organizational Climate Shared perceptions of the way things are around here. “Organizational climate is the level of agreement in perceptions about the organization and work environment among employees.” While the analysis of culture relies on understanding an organization’s fundamental assumptions, climate research is concerned with representing employees’ shared perceptions of values in a static way as states that they experience at a point in time Culture is viewed as evolving and is studied from a sociology or anthropology viewpoint. Climate can be altered through management interventions. The difference between culture and climate is that culture is an evolved context and climate is a situation that employees are in. Culture results in climate by reinforcing the shared perceptions employees have about what is valued.  Climcult Perspective Climate and culture working together to influence how people experience their work environment Elements: – A global climate or culture for well-being – Strategy focused on policies, practices, procedures, and behaviors expected and rewarded – Processes focused on policies, practices, procedures, and behaviors that are expected and rewarded – Socialization practices through which values and beliefs for strategy and processes are transmitted – Myths and stories used for transmitting those same beliefs and values  Climcult Perspective Combining survey measures of climate and culture to gain a more complete view of how people describe their organization’s values and their work experiences. For example, a measure of the climate for quality would have measures of how followers view their leader’s support for quality initiatives (climate). Culture items would be added to reflect how the leader tells stories about things that went wrong when quality standards were not adhered to (culture). Climate focuses on perceptions, and culture focuses on the underlying assumptions and values. Both are important to understand the influence of organizational culture on employee behavior. Dimensions of Organizational Climate Affective facet-people involvement, interpersonal or social relations Cognitive facet- psychological involvement; self-knowledge and development Instrumental facet-task involvement and processes  Affective facet Participation: Perceived influence in a process of joint decision-making; Participation in setting goals and policies Warmth: Perceived feelings of good fellowship in the workgroup; prevalence of friendly, informal social groups; perceived helpfulness of supervisors and coworkers; emphasis on mutual support Social rewards: Praise from others used to reward work, rewards based on effort and time spent on work; formal recognition and awards based on ability and effort Cooperation: Perceived helpfulness of supervisors and coworkers; emphasis on mutual support  Cognitive facet Growth: Perceived emphasis on personal growth and development on job; emphasis on skill improvement Innovation: Perceived emphasis on innovation and creativity in work Autonomy: Perceived freedom to be own boss; plan and control over work Intrinsic rewards: Formal recognition and awards based on ability and effort  Instrumental facet Hierarchy: Perceived emphasis on going through channels; locus of authority in supervisory personnel Structure: Perception of formality and constraint in the organization; orderly environment; emphasis on rules, regulations, and procedures Extrinsic rewards: Extrinsic rewards of pay, assignments, and advancement based on ability and time spent on work Achievement: Perception of challenge, demand for work, and continuous improvement of performance  Ethical Climate Leader moral development (i.e., the capacity for ethical reasoning) influences ethical climate, employee job satisfaction, and turnover intentions. This effect is stronger for younger organizations. Research suggests the following five aspects of ethical climates: – Caring. “Our major concern is always what is best for the other person.” – Law and Code. “People are expected to comply with the law and professional standards over and above other considerations.” – Rules. “Everyone is expected to stick by company rules and procedures. – Instrumental. “In this company, people are mostly out for themselves.” – Independence. “Each person in this company decides for themselves what is right and wrong.”  Ethical Climate Organizations have distinct types of ethical climates, and the ethical climate is shaped by norms, bureaucracy, and the history of the organization Ethical climate made a difference in terms of the effects of ethical leadership and employee misconduct. Employees responded more to their leaders’ ethical behaviors when the climate supported ethics A strong ethical organizational climate was associated with fewer sickness absences. Ethical organizational culture plays a significant role in enhancing employee well-being measured as sickness absence. Emphasizing an ethical climate may be an important factor in preventing sickness absence at work. A meta-analysis of 42 studies of ethical climate found caring climates were related to job satisfaction and organizational commitment, whereas instrumental climates were negatively related to these outcomes Three aspects of climate (affective, cognitive, and instrumental) significantly and positively impacted job performance, psychological well-being, and withdrawal (e.g., turnover intentions) through their impact on organizational commitment and job satisfaction  Emotions and Moods Illustrate with examples differences between emotions and moods Summarize affective events theory with example Explain how affective climate (+ve and –ve) of a work group relates to team conflict Demonstrate understanding of emotional labor by providing examples that require “surface acting£ and “deep acting” Discuss the case for training in emotional intelligence in the workplace Explain how +ve and –ve emotions can spread from one individual to a group through the emotional contagion process Explain affective neuroscience and provide organizational example  DOES LACK OF SLEEP MAKE YOU GRUMPY? Stayed up late and everything goes wrong the next day? Stuck in the traffic and you become easily annoyed with your classmates? Due to our own emotions and moods than other people Lack of sleep has a dramatic influence on emotions Research- when people are sleep-deprived they feel more irritable, angry, and hostile. Loss of sleep is associated with feeling more depressed. Sleep deprivation- people acting more emotionally-especially when something doesn’t go well for them. Sleep loss leads to increased negative mood and a reduction in the ability to regulate anger due to biochemical changes in the brain. Small changes in normal nightly sleep inhibit the ability to regulate emotions at work the next day  DOES LACK OF SLEEP MAKE YOU GRUMPY? Research has found that sleep loss results in lower self-control and higher workplace deviance Lack of sleep by managers led them to be more likely to abuse their followers Insomnia related to lower job satisfaction Use of smartphones late at night rather than sleeping soundly resulted in lower work engagement the next day  EMOTIONS AND MOODS AT WORK Emotions and moods were largely ignored in early OB literature Assume that employees left their feelings at home when they came to work in the morning Expectation for people at work to be logical, detached, and rational decision makers. Range of feelings Showing one’s feelings or caring about the feelings of others attributed to weakness and not sound leadership Mid 80s-90s-organizational researchers began studying the effects of emotions and moods in behaviour in organizations “The affective revolution” 5  Affect- the range of feelings that employees experience at work (OB context) -Emotions and moods State affect- feelings experienced in short term, fluctuate over time Trait affect-stable individual differences Emotions- triggered by specific events and are brief but intense enough to disrupt Emotions a person’s thinking (lasting only seconds or minutes) and Moods Some emotions are internal- pride and love Some emerge in relationships with others- shame, guilt Moods-general feeling states that are not related to specific event, but they are not intense enough to interrupt regular thought patterns or work Emotions are more fleeting than moods Moods-not typically caused by a person or something that happens to us Emotions-directed to another person or situation  Affect Mood Emotions Adapted from Watson, D. Mood and Temperament  Integrates personality, emotions, and moods- consider the impact of the work environment and events that may trigger emotional reactions (+ve and –ve) Areas in the work environment- job characteristics (boring or interesting?), job demands (i