Management and Organisational BehaviourManagement and Organisational Behaviour

7th Edition7th Edition

CHAPTER 2CHAPTER 2

The Nature of Organisational The Nature of Organisational BehaviourBehaviour

Learning objectivesLearning objectives• After completing this chapter you should be able to: After completing this chapter you should be able to: • explain the meaning and nature of organisational behaviour and explain the meaning and nature of organisational behaviour and

provide an introduction to a behavioural approach to management; provide an introduction to a behavioural approach to management; • detail main interrelated influences on behaviour in work detail main interrelated influences on behaviour in work

organisations and explain the nature of behavioural science; organisations and explain the nature of behavioural science; • outline contrasting perspectives of organisations and different outline contrasting perspectives of organisations and different

orientations to work; orientations to work; • recognise the importance of management as an integrating activity; recognise the importance of management as an integrating activity; • assess the nature and importance of the new psychological assess the nature and importance of the new psychological

contract; contract; • review the need for a cross-cultural approach and the importance of review the need for a cross-cultural approach and the importance of

culture to the study of organisational behaviour; culture to the study of organisational behaviour; • summarise the complex nature of the behaviour of people in work summarise the complex nature of the behaviour of people in work

organisations. organisations.

The study of organisational The study of organisational behaviour (OB) embraces an behaviour (OB) embraces an

understanding of -understanding of -• The behaviour of peopleThe behaviour of people• The process of managementThe process of management• The organisational context of managementThe organisational context of management• Organisational processes and the execution of Organisational processes and the execution of

workwork• Interactions with the external environment of Interactions with the external environment of

which the organisation is partwhich the organisation is part

The meaning of OBThe meaning of OBOB is a convenient shorthand that refers to the numerous interrelated OB is a convenient shorthand that refers to the numerous interrelated

influences on, and patterns of behaviour of people within influences on, and patterns of behaviour of people within organisationsorganisations

Porter, Lawler and HackmanPorter, Lawler and Hackman

The study and understanding of the individual and group behaviour The study and understanding of the individual and group behaviour and patterns of structure in order to help to improve organizational and patterns of structure in order to help to improve organizational performance and effectivenessperformance and effectiveness

Most complex and perhaps least understood academic elements of Most complex and perhaps least understood academic elements of modern general managementmodern general management

The name OB is strictly a misnomer, why?The name OB is strictly a misnomer, why?

The meaning of OBThe meaning of OB

WilsonWilson challenges what constitutes OB & questions challenges what constitutes OB & questions whether we should be interested only in behaviour that whether we should be interested only in behaviour that happens happens withinwithin the organisation. She suggests that we the organisation. She suggests that we need to look outside of what is normally thought of as need to look outside of what is normally thought of as organisations & how we usually think of workorganisations & how we usually think of work

The meaning of OBThe meaning of OB

WilsonWilson believes that we can gain an insight into believes that we can gain an insight into organisational life and behaviour by looking at:organisational life and behaviour by looking at:

- what happens in rest & play- what happens in rest & play

- emotions & feelings- emotions & feelings

- less organised work- less organised work

- the content in which work is deferred to as men’s - the content in which work is deferred to as men’s workwork

- the meaning of work for the unemployed- the meaning of work for the unemployed

Influences on OBInfluences on OB

• IndividualsIndividuals

• GroupsGroups

• The organisation itselfThe organisation itself

• The environmentThe environment

IndividualsIndividuals

• Are a central feature of OBAre a central feature of OB• Are a necessary part of any behavioural setAre a necessary part of any behavioural set• Bring to the organisation their personality, skills Bring to the organisation their personality, skills

and attributes, values, needs and expectationsand attributes, values, needs and expectations• Can create conflict if their needs and the Can create conflict if their needs and the

demands of the organisation are incompatibledemands of the organisation are incompatible

Management and the individualManagement and the individual

Management’s task is to integrate the individual & Management’s task is to integrate the individual & the organisation, providing a working the organisation, providing a working environment that permits the satisfaction of environment that permits the satisfaction of individual needs & attainment of organisation individual needs & attainment of organisation goalsgoals

GroupsGroups

• Exist in all organisationsExist in all organisations

• Are essential to organisational working and Are essential to organisational working and performanceperformance

• Comprise a range of different individualsComprise a range of different individuals

• Can develop their own hierarchies and leadersCan develop their own hierarchies and leaders

GroupsGroups

• Can have a major influence on behaviour and Can have a major influence on behaviour and performance of individual membersperformance of individual members

• Have their own structures and functions, role Have their own structures and functions, role relationships and influences and pressurerelationships and influences and pressure

An understanding of group structure and behaviour An understanding of group structure and behaviour complements a knowledge of individual complements a knowledge of individual behaviourbehaviour

The organisationThe organisation

• Individuals & groups interact within the Individuals & groups interact within the structure of the formal organisationstructure of the formal organisation

• Organisational structure is created by Organisational structure is created by management to:management to:

- establish a relationship between individuals & - establish a relationship between individuals & groupsgroups

- provide order and systems to direct efforts of - provide order and systems to direct efforts of the organisation into goal seeking activitiesthe organisation into goal seeking activities

The organisationThe organisation

• The formal structure allows people/groups to The formal structure allows people/groups to carry out organisational activities to achieve carry out organisational activities to achieve aims & objectivesaims & objectives

• Behaviour is affected by patterns of Behaviour is affected by patterns of organisational structureorganisational structure

EnvironmentEnvironment

The environment affects the organisation through:The environment affects the organisation through:

• technological & scientific developmenttechnological & scientific development• economic activityeconomic activity• social & cultural influencessocial & cultural influences• government activitiesgovernment activities

EnvironmentEnvironment

The effects of the operation of the organisation The effects of the operation of the organisation within its environment are reflected in the:within its environment are reflected in the:

• management of opportunities & risksmanagement of opportunities & risks

• successful achievement of organisational aims successful achievement of organisational aims & objectives& objectives

Environment – its rate of changeEnvironment – its rate of change

The increasing rate of change in environmental The increasing rate of change in environmental factors highlights the need to study the total factors highlights the need to study the total organisation & the processes used to adapt to organisation & the processes used to adapt to external demandsexternal demands

Example: globalisation has placed greater emphasis on Example: globalisation has placed greater emphasis on organisational processes rather than organisational organisational processes rather than organisational functionsfunctions

Contrasting but related approachesContrasting but related approaches

PsychologicalPsychological

Looks at individuals Looks at individuals within the within the organisationorganisation

A narrow approachA narrow approach

SociologicalSociological

Looks at human behaviour Looks at human behaviour in society in society

A broader approachA broader approach

Behavioural science – a Behavioural science – a multidisciplinary approachmultidisciplinary approach

• A multidisciplinary behavioural science approach can A multidisciplinary behavioural science approach can make an important contribution to the field of OBmake an important contribution to the field of OB

• Behavioural science has three main disciplines:Behavioural science has three main disciplines:

- - PsychologyPsychology – personality systems – personality systems

- - SociologySociology – social behaviour – social behaviour

- - AnthropologyAnthropology – science of mankind & – science of mankind & study of human behaviour (cultural study of human behaviour (cultural systems) systems)

The organisational icebergThe organisational iceberg

One way to recognise why people behave as One way to recognise why people behave as they do at work is to view an organisation as they do at work is to view an organisation as an icebergan iceberg

What sinks a ship isn’t always what sailors can What sinks a ship isn’t always what sailors can see, but what they can’t seesee, but what they can’t see

Hellriegal, Slocum, & WoodmanHellriegal, Slocum, & Woodman

The organisational icebergThe organisational iceberg

SourceSource: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, : Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, OOrganizational Behavior, rganizational Behavior, Eighth edition, South-Western Publishing © (1998), p.6. Reprinted with the permission of South-Eighth edition, South-Western Publishing © (1998), p.6. Reprinted with the permission of South-

Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.Western, a division of Thomson Learning: www.thomsonrights.com. Fax 800 730 2215.

Figure 2.3

What sinks a ship isn’t always What sinks a ship isn’t always what sailors can see, but what what sailors can see, but what they can’t see.they can’t see.

The organisational icebergThe organisational icebergFormal (overt) aspectsFormal (overt) aspects

• CustomersCustomers• TechnologyTechnology• Formal goalsFormal goals• Organisational designOrganisational design• Financial resourcesFinancial resources• Physical facilitiesPhysical facilities• Rules & regulationsRules & regulations• Surface competencies & skillsSurface competencies & skills

The organisational icebergThe organisational icebergBehavioural (covert) aspectsBehavioural (covert) aspects

• AttitudesAttitudes• Communication patternsCommunication patterns• Informal team processesInformal team processes• PersonalityPersonality• ConflictConflict• Political behaviourPolitical behaviour• Underlying competencies & skillsUnderlying competencies & skills

Challenges of managementChallenges of managementPeople, capital, & technologyPeople, capital, & technology

… … somewhere within our views or organizations we need to somewhere within our views or organizations we need to acknowledge the differences between machines and acknowledge the differences between machines and man.man.

… … the question of time is crucial, both because wethe question of time is crucial, both because we humans humans operate in time with the past, the present & the future operate in time with the past, the present & the future assuming importance’ and because they are phases, assuming importance’ and because they are phases, sequences of times and rhythms which are essentially sequences of times and rhythms which are essentially human.human.

GrattonGratton

Organisational metaphorsOrganisational metaphors

• MachinesMachines• OrganismsOrganisms• BrainsBrains• CulturesCultures

MorganMorgan

• Political systemsPolitical systems• Psychic prisonsPsychic prisons• Flux & transformationFlux & transformation• Instruments of dominationInstruments of domination

The metaphors are not fixed categories and are not mutually exclusive

Orientations to workOrientations to work• Instrumental orientationInstrumental orientation – individuals view work as a means to an – individuals view work as a means to an

end, there is a calculative or economic involvement with workend, there is a calculative or economic involvement with work

• Bureaucratic orientationBureaucratic orientation – work is defined as a central life issue, – work is defined as a central life issue, there is a sense of obligation to the work of the organisation & positive there is a sense of obligation to the work of the organisation & positive involvement in terms of a career structureinvolvement in terms of a career structure

• Solidaristic orientationSolidaristic orientation – work situation is viewed in terms of group – work situation is viewed in terms of group activities, there is an ego involvement with work groups rather than activities, there is an ego involvement with work groups rather than with the organisation itself, work is more than just a means to an end with the organisation itself, work is more than just a means to an end

Goldthorpe Goldthorpe et al.et al.

Challenges to work ethicsChallenges to work ethics

• Division of labour – work has been fractured in task and sub divided Division of labour – work has been fractured in task and sub divided into special sub tasksinto special sub tasks

• Destruction of continuity in employment – individuals are likely to re-Destruction of continuity in employment – individuals are likely to re-enter the job market several times, jobs are no longer for lifeenter the job market several times, jobs are no longer for life

HermanHerman

The role of management as an integrating activityThe role of management as an integrating activity

The psychological contractThe psychological contract

• The series of mutual expectations & satisfaction of The series of mutual expectations & satisfaction of needs arising from the people / organisational needs arising from the people / organisational relationshiprelationship

• Process of giving & receiving by the individual & the Process of giving & receiving by the individual & the organisationorganisation

• Covers a range of expectations of rights and Covers a range of expectations of rights and privileges, duties and obligations that do not form privileges, duties and obligations that do not form part of the formal agreements but still has important part of the formal agreements but still has important influence of people’s behaviourinfluence of people’s behaviour

• The significant of the contract depends on the extent The significant of the contract depends on the extent it is perceived to be fair it is perceived to be fair

Formula for balancing unwritten Formula for balancing unwritten needs of employees with the needs needs of employees with the needs

of the organisationof the organisation• CaringCaring – demonstrating genuine concern for – demonstrating genuine concern for

individualsindividuals• CommunicatingCommunicating – really talking about what the – really talking about what the

company hopes to achievecompany hopes to achieve• ListeningListening – hearing not only the words but also – hearing not only the words but also

what lies behind the wordswhat lies behind the words• KnowingKnowing - those who work for you, their families, - those who work for you, their families,

personal wishes, desires & ambitionspersonal wishes, desires & ambitions• RewardingRewarding – money is not always necessary – money is not always necessary

StalkerStalker

Moral contractMoral contract• Increasing global competition & turbulent change Increasing global competition & turbulent change

requires a management philosophy grounded in a requires a management philosophy grounded in a different moral contractdifferent moral contract

• People should not be seen as a corporate asset People should not be seen as a corporate asset from which value can be appropriated, but as a from which value can be appropriated, but as a responsibility and a resource to be added toresponsibility and a resource to be added to

• This demands more from individuals – to abandon This demands more from individuals – to abandon the idea of lifetime employment & embrace the the idea of lifetime employment & embrace the concept of continuous learning & personal concept of continuous learning & personal developmentdevelopment

Ghosal Ghosal et al.et al.

ORGANIZATIONAL PRACTICESORGANIZATIONAL PRACTICES

Factors leading to an increase in Factors leading to an increase in the global business environmentthe global business environment

• Improvements in international Improvements in international communication facilitiescommunication facilities

• International competitive pressuresInternational competitive pressures• The spread of production methods & other The spread of production methods & other

business processes across nations & business processes across nations & regionsregions

• International business activity, e.g. overseas International business activity, e.g. overseas franchising or licensing agreementsfranchising or licensing agreements

Defining & conceptualising Defining & conceptualising culture –culture –

A model of cultureA model of culture

Source: Reproduced with permission from F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture, Second edition, Nicholas Brealey (1999), p.22.

Figure 2.6Figure 2.6

Factors affecting national cultureFactors affecting national culture

Source: Reproduced with permission from Ian Brooks, Organisational Behaviour: Individuals, Groups and Organisation, Second edition, Financial Times Prentice Hall (2003), p.266, with permission from Pearson Education Ltd.

Figure 2.8Figure 2.8

Five dimensions of cultureFive dimensions of culture

• Power distancePower distance

• Uncertainty avoidanceUncertainty avoidance

• IndividualismIndividualism

• MasculinityMasculinity

• Confucian work dynamismConfucian work dynamism

Cultural differences that can affect Cultural differences that can affect OBOB

• Relationship & rulesRelationship & rules• Individual or collective preferencesIndividual or collective preferences• Type of societies - neutral or emotional Type of societies - neutral or emotional

societiessocieties• Diffuse or specific cultureDiffuse or specific culture• Achievement-based societiesAchievement-based societies• TimeTime• Attitude to the environmentAttitude to the environment

TrompenaarTrompenaar