organisational behaviour
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Organisational Behaviour. Course Content. 100 Marks – 60 marks written exam and 40 marks internal assessment. Introduction to OB Personality Perception Attitude and Values Motivation Concepts Group Behaviour and Group Dynamics Organisational Design Leadership Organisational Development. - PowerPoint PPT PresentationTRANSCRIPT
Course Content100 Marks – 60 marks written exam and 40 marks
internal assessment.Introduction to OBPersonalityPerception Attitude and ValuesMotivation ConceptsGroup Behaviour and Group DynamicsOrganisational DesignLeadershipOrganisational Development
Reference BooksUnderstanding Organisational Behaviour –
Udai Pareekh
Organisational Behaviour - Stephen P. Robbins
Organisational Behaviour – Fred Luthans
Organizational Behaviour- Newstrom
Organizational Behaviour- Uma Sekaran
Course Content100 Marks – 60 marks written exam and 40 marks
internal assessment.Introduction to OBPersonalityPerception Attitude and ValuesMotivation ConceptsGroup Behaviour and Group DynamicsOrganisational DesignLeadershipOrganisational Development
Introduction to OB – Learning Objectives
Define Organisational BehaviourDescribe what Managers doExplain the value of the systematic study of OBList the major challenges and opportunities for
the managers to use OB concepts Identify the contributors made by major
behavioural science discipline to OB
Describe why mangers require a Describe why mangers require a knowledge of OBknowledge of OB
What Managers DO???Planning
Organising
Leading
Controlling
MINTZBER’S MANGERIAL ROLES
Activity 1
Write down 10 roles which makes manager effective and
successful???
Time – 5 Min
Organisational BehaviourOrganisational Behaviour is a field of study that
investigates the impact that individuals, groups, and structure have on behaviour within organisations for the purpose of applying such knowledge towards improving an organisation’s effectiveness.
OB is concerned with the study of what people do in an organisation and how that behaviour affects the performance of the organisation.
It emphasises behaviour as related to concerns such as jobs, , work, absenteeism, employment turnover, productivity, human performance and management.
Activity - 2Write two different incidents when you predicted someone’s behaviour and your prediction was correct and when your prediction was wrong.
Time – 5 Min
Few Questions to Ponder???How many of have attempted to interpret what
you see?How many of you predict behaviour / actions
of others?How many times it was correct and how many
times it was wrong?How well did you know those people whose
behaviour you predicted correctly?How well did you know those people whose
behaviour you predicted wrongly?How many times you felt that behaviour
displayed by others is irrational?
Replacing Intuition with Systematic StudyYou watch what others do and try to explain to
yourself why they have engaged in their behaviour.
Unfortunately our casual or commonsense approach to reading others can often lead to erroneous predictions.
You can improve your ability by replacing your intuitive opinions with a more systematic approach.
Behaviour generally is predictable if we know how the person perceived the situation and what is important o him or her
Replacing Intuition with Systematic StudyThere are differences between individuals
however there are certain fundamental consistencies underlying the behaviour of all individuals that can be identified
These fundamental consistencies are very important because they allow predictability.
Examples
Behaviour is generally predictable and the systematic study of behaviour is a means to making reasonably accurate predictions.
Bases of OBPsychology: The science or study of individual
human behaviour
Sociology: The study of group human behaviour
Social Psychology: Studies influences of people on one another
Anthropology:Study of the human race, and culture
Political Science:Behaviour of individuals in political environment
Bases of OB
Challenges and Opportunities for OBResponding to globalisationManaging workforce diversityImproving quality and productivityResponding to skilled labour shortageImproving customer serviceImproving people skillsEmpowering peopleCoping with ‘Temporariness’Stimulating Innovation and ChangeHelping employees balance work/life conflictsImproving ethical behaviour
OB Model
Individual Level
Group Level
Organisation System Level
OB Model – Individual LevelValuesAttitudePersonality Types and EmotionsPerception and Individual Decision MakingMotivation
Foundation of Group behaviourUnderstanding work teamsCommunicationPower and PoliticsLeadershipConflict and Negotiation
OB Model – Group Level
Organisation StructureOrganisation DesignOrganisation Development
OB Model – Organisation System Level
Activity - 3
Case Study
Course Content100 Marks – 60 marks written exam and 40 marks
internal assessment.Introduction to OBValues and Attitude PersonalityPerceptionMotivation ConceptsGroup Behaviour and Group DynamicsOrganisational DesignLeadershipOrganisational Development
Value – Corporate Value
The Operating philosophies or principles that guide an
organisation’s internal conduct as well as its relationship with its
customers, partners, and shareholders.
AttitudeAttitudes are evaluative statements – either
favorable or unfavorable – concerning objects, people, or situation.
Attitudes reflect how one feels about something.Components of Attitude
Cognitive Component - BeliefAffective Component – Emotion or feelingBehavioural Component
In organisation, Attitudes are important because they affect Job behaviour
Types Of Attitude
Job Satisfaction
Job Involvement
Organisational Commitment
PersonalityDynamic concept describing growth and
development of a person’s whole psychological system .
“Personality is the sum total of ways in which an individual REACTS and INTERACTS with others.”
What Determines The Personality?
HeredityHeredityHeredityHeredity SituationSituationSituationSituationEnvironmentEnvironmentEnvironmentEnvironment
Style ofStyle ofDecision MakingDecision Making Judgmental (J)Judgmental (J)
Perceptive (P)Perceptive (P)
Preference forPreference forDecision MakingDecision Making Thinking (T)Thinking (T)
Feeling (F)Feeling (F)
Type of SocialType of SocialInteractionInteraction Introvert (I)Introvert (I)
Extrovert (E)Extrovert (E)
Preference forPreference forGathering DataGathering Data Intuitive (N)Intuitive (N)
Sensing (S)Sensing (S)
Myers-Briggs Type IndicatorMyers-Briggs Type Indicator
Extroversion Introversion
Interest Orientation
E ITalkative,
Sociable,
Friendly,
Outspoken
Shy,
Reserved,
Quite,
Myers-Briggs Type IndicatorMyers-Briggs Type Indicator
Sensing iNtuition
Information
S NOrganised,
Focus Detail
Require more information
Prefer to interpret from
less information,
Able to take foresee
Myers-Briggs Type IndicatorMyers-Briggs Type Indicator
Thinking FeelingDecision
T FReliability of
logical order – cause and
effect,
Logic and consistency
Priorities based on personal
importance and values,
First look at the people and
special circumstances
Myers-Briggs Type IndicatorMyers-Briggs Type Indicator
Judgment PerceptionEnvironment Orientation
J PPrefer to get things
decided
systematic planning
Less Flexible
Spontaneity
Curious
Stay open to new
information,
Flexible
Myers-Briggs Type IndicatorMyers-Briggs Type Indicator
Extroversion Agreeableness
Conscientiousness
Emotional stability
Openness to Experience
The Big Five Personality Dimensions ExtroversionExtroversion:: Outgoing, talkative, sociable,
assertive
AgreeablenessAgreeableness:: Trusting, good natured, cooperative, soft hearted
ConscientiousnessConscientiousness:: Dependable, responsible, achievement oriented, persistent
Emotional stabilityEmotional stability:: Relaxed, secure, unworried
Openness to experience:Openness to experience: Intellectual, imaginative, curious, broad minded
Major Personality Attributes Influencing OB
Other KeyOther KeyPersonalityPersonalityAttributesAttributes
LocusLocusof Controlof Control
Self-EsteemSelf-Esteem
RiskRiskPropensityPropensity
Type A and Type BType A and Type BPersonalityPersonality
MachiavellianMachiavellianPersonalityPersonality
SelfSelfMonitoringMonitoring
Locus of Control
Internal locus of control:Internal locus of control: belief that one controls key events and consequences in one’s life.
External locus of controlExternal locus of control: One’s life outcomes attributed to environmental factors such as luck or fate.
As per 11th Edition
JOB SUITABILITYINTERNALS
Professional jobs
Managerial jobs
EXTERNALS
Structured jobs
Routine jobs
As per 11th Edition
Characteristics:
• Pragmatic• Maintains emotional distance• Believes that ends can justify the means• Manipulate more• Win more• Persuaded less• Persuade others more
As 11th per Edition
Machiavellianism
Job Suitability
For High Machs
Job requiring bargaining skillsOr that offer substantial rewards for
winning
Self Esteem
The degree to which a person likes or dislikes himself
They believe that they possess the ability they need to succeed at work
And more likely to choose unconventional jobs than people with low self esteem
It is directly related to expectations for success
Two types1. High Self Esteem 2. Low self Esteem
High Self Esteem
They believe that they possess the ability they need to succeed at work
And more likely to choose unconventional jobs than people with low self esteem
They will not be susceptible to the external influences
They are more satisfied with their job
High Self Monitoring
Capable of presenting striking contradictions between their public persona & private self
Capable of putting different “faces” for different audiences
A & B Types of Personality
• Type ‘A’– Suffer high level of
stress– Quantity over
quality– Time
pressure/deadlines– Rarely creative– Poor decision
makers– Behavior is easier
to predict
• Type ‘B’– Difficult to predict
behavior– Good decision
makers– Quality of work– No compromise on
health– Wiser than hasty– Creative /
innovative solutions to same problem
Perception and
Individual Decision Making
TWELFTH EDITION
•People’s behavior is People’s behavior is based on their based on their perception of what perception of what reality is, not on reality is, not on reality itself.reality itself.
• The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important.important.
•People’s behavior is People’s behavior is based on their based on their perception of what perception of what reality is, not on reality is, not on reality itself.reality itself.
• The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important.important.
PerceptionA process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.
Distinctiveness: shows different behaviors in different situations.
Consensus: response is the same as others to same situation.
Consistency: responds in the same way over time.
Distinctiveness: shows different behaviors in different situations.
Consensus: response is the same as others to same situation.
Consistency: responds in the same way over time.
Attribution Theory
When individuals observe behavior, they attempt to determine whether it is internally or externally caused.
Fundamental Attribution Error
The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others.
Self-Serving Bias
The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.
Selective Perception
People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.
Halo Effect
Drawing a general impression about an individual on the basis of a single characteristic
Contrast Effects
Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.
Projection
Attributing one’s own characteristics to other people.
Stereotyping
Judging someone on the basis of one’s perception of the group to which that person belongs.
Specific Applications in OrganizationsEmployment Interview
Perceptual biases of raters affect the accuracy of interviewers’ judgments of applicants.
Performance ExpectationsSelf-fulfilling prophecy: The lower or higher
performance of employees reflects preconceived leader expectations about employee capabilities.
Specific Applications in Organizations (cont’d)Performance Evaluations
Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance.
Employee EffortAssessment of individual effort is a subjective
judgment subject to perceptual distortion and bias.
Perception of the decision
maker
Perception of the decision
maker
Outcomes
ProblemA perceived discrepancy between the current state of affairs and a desired state.
DecisionsChoices made from among alternatives developed from data perceived as relevant.
Steps in the Rational Decision-Making Model
1. Define the problem.
2. Identify the decision criteria.
3. Allocate weights to the criteria.
4. Develop the alternatives.
5. Evaluate the alternatives.
6. Select the best alternative.
5–61
Organizational Constraints on Decision MakersPerformance Evaluation
Evaluation criteria influence the choice of actions.Reward Systems
Decision makers make action choices that are favored by the organization.
Formal RegulationsOrganizational rules and policies limit the
alternative choices of decision makers.System-imposed Time Constraints
Organizations require decisions by specific deadlines.
Historical PrecedentsPast decisions influence current decisions.
Basic MotivationConcepts
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial goal
3. Persistence: how long a person tries
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial goal
3. Persistence: how long a person tries
Motivation
The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.
Hierarchy of Needs Theory
There is a hierarchy of five needs—physiological, safety, social, esteem, and self-actualization; as each need is substantially satisfied, the next need becomes dominant.
Self-Actualization
The drive to become what one is capable of becoming.
Theory X
Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to perform.
Theory Y
Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.
Core Needs
Existence: provision of basic material requirements.
Relatedness: desire for relationships.
Growth: desire for personal development.
Core Needs
Existence: provision of basic material requirements.
Relatedness: desire for relationships.
Growth: desire for personal development.
Concepts:
More than one need can be operative at the same time.
If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases.
Concepts:
More than one need can be operative at the same time.
If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases.
ERG Theory
There are three groups of core needs: existence, relatedness, and growth.
nAch
nPow
nAff
Need for Achievement
The drive to excel, to achieve in relation to a set of standards, to strive to succeed.
Need for Affiliation
The desire for friendly and close personal relationships.
Need for Power
The need to make others behave in a way that they would not have behaved otherwise.
Two-Factor (Motivation-Hygiene) Theory
Intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction.
Hygiene Factors
Factors—such as company policy and administration, supervision, and salary—that, when adequate in a job, placate workers. When factors are adequate, people will not be dissatisfied.
Person compares their outcome/input ratio with others outcome/input ratio.
Inputs refers to the characteristics which individual bring with them to the job
Outcomes refers to what person gets from job in terms of pay, promotions benefits and so on.
Inequity is defined as the perception that persons’ outcome/input ratio is not equal to others outcome/input ratio
Negative Inequity – Under rewarded Positive Inequity – Over rewarded
Distributive Justice
Perceived fairness of the amount and allocation of rewards among individuals.
Procedural Justice
The perceived fairness of the process to determine the distribution of rewards.
Expectancy Theory (Victor Vroom)
The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
Expectancy Theory RelationshipsEffort–Performance Relationship
The probability that exerting a given amount of effort will lead to performance.
Performance–Reward RelationshipThe belief that performing at a particular level
will lead to the attainment of a desired outcome.
Rewards–Personal Goals RelationshipThe degree to which organizational rewards
satisfy an individual’s goals or needs and the attractiveness of potential rewards for the individual.
Team Dynamics
Group(s)
Two or more people who interact and influence each other, are mutually accountable for achieving common goals associated with organisational objectives.
Formal Group
A designated work group defined by the organization’s structure.
Informal Group
A group that is neither formally structured now organizationally determined; appears in response to the need for social contact.
Departmental Teams – Functional teams
Self-Directed Teams
Advisory teams
Task Force (Project) Teams – multi-skilled, temporary teams whose assignment is to solve a problem, realize an opportunity or design a product or service
Skunworks Teams – Usually located away from the organisation, relatively free of its hierarchy. E.g. R & D Dept.
Virtual Teams – Operates across space, time, and organisational boundaries.
Challenges of TeamsProcess Losses
Brook’s Law – E.g.. Apple’s Professional Photography Software Program, Aperture
Social LoafingHow to Minimize Social Loafing
Form Smaller TeamsSpecialize TaskMeasure Individual PerformanceSelection of employees for a team
Group Size
Performance
Expec
ted
Actual (d
ue to lo
afing)
Team Effectiveness
Organisational and Team Environment
Team Design
Team Processes
Organisational and Team Environment
Reward
Communication
Organisational Structure
Organisational Leadership
Physical Space
Team Design Elements Task Characteristics
Task Interdependence – extent to which team members must share information Pooled Interdependence Sequential Interdependence Reciprocal Interdependence
Team SizeTeam Composition
Co-operating – Share resourcesCoordinating – Align work with othersCommunicating – Share informationComforting – Show empathy, Build confidenceConflict Resolving
Team Diversity
Team ProcessesTeam Development
FormingStormingNormingPerformingAdjourning
Team RolesTeam BuildingTeam NormsTeam CohesionTeam Trust
Classes of Norms:•Performance norms
•Appearance norms
•Social arrangement norms
•Allocation of resources norms
Classes of Norms:•Performance norms
•Appearance norms
•Social arrangement norms
•Allocation of resources norms
Increasing group cohesiveness:
1. Make the group smaller.
2. Encourage agreement with group goals.
3. Increase time members spend together.
4. Stimulate competition with other groups.
5. Give rewards to the group, not individuals.
Increasing group cohesiveness:
1. Make the group smaller.
2. Encourage agreement with group goals.
3. Increase time members spend together.
4. Stimulate competition with other groups.
5. Give rewards to the group, not individuals.
Team Decision Making - Constraints
Time Constraints
Production Blocking – Opportune time to speak
Evaluation Apprehension
Groupthink – value consensus at the price of decision quality
Group Polarization or Group Shift
Group / Team Decision Making
StrengthsMore complete
informationIncreased diversity
of viewsHigher quality of
decisions (more accuracy)
Increased acceptance of solutions
WeaknessesMore time
consuming (slower)Increased pressure
to conformDomination by one
or a few membersAmbiguous
responsibility
Team Structure to Improve Decision MakingInteracting
Constructive Conflicts
Brainstorming
Electronic Brainstorming
Nominal Group technique
TWELFTH EDTION
Power and Politics
A BPower
A capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes.
Dependency
B’s relationship to A when A possesses something that B requires.
Coercive PowerA power base dependent on fear.Reward PowerCompliance achieved based on the ability to distribute rewards that others view as valuable
Formal Power
Is established by an individual’s position in an organization; conveys the ability to coerce or reward, from formal authority, or from control of information.
Legitimate Power
The power a person receives as a result of his or her position in the formal hierarchy of an organization.
Information Power
Power that comes from access to and control over information.
Expert Power
Influence based on special skills or knowledge.Referent Power
Influence based on possession by an individual of desirable resources or personal traits.
Charismatic Power
An extension of referent power stemming from an individual’s personality and interpersonal style.
Dependency: The Key To PowerThe General Dependency Postulate
The greater B’s dependency on A, the greater the power A has over B.
Possession/control of scarce organizational resources that others need makes a person powerful.
Access to optional resources (e.g., multiple suppliers) reduces the resource holder’s power.
What Creates DependencyImportance of the resource to the organizationScarcity of the resourceNo substitutability of the resource
Power Tactics: Ways in which individuals translate power bases into specific actions.
Ways of using power tactics
Reason: Use facts and data to make a logical presentation of ideas
Friendliness: Being friendly before making a request
Coalition: Getting the support of other people to back up the request
Bargaining: Use negotiations through exchange of favours.
Assertiveness: Use direct and forceful approach
Higher Authority: Getting support of Higher levels
Sanctions: Preventing promising salary, promotions etc.
Political Behavior
Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization.
Factors That Influence Political Behaviors
Organisational Factors:
Unclear performance evaluation
Low trust
Role ambiguity
High performance pressure
Win-lose approach to reward allocation
Organisational Culture
Individual Factors:
High personal need of getting power
High Machiavellian personality
Perceived Job alternatives
Insecurity
Expectations of success by doing politics
Avoiding Work:
• Buck passing: Transferring Responsibility
• Playing dumb: Showing ignorance and Inability
• Stretching: Prolonging a task
• Stalling: More supportive publicly while actually doing little
Avoiding Work:
• Buck passing: Transferring Responsibility
• Playing dumb: Showing ignorance and Inability
• Stretching: Prolonging a task
• Stalling: More supportive publicly while actually doing little
Avoiding Blame:
• Playing safe: Neutral position in conflict, not showing opinion and expressions
• Justifying: Developing explanations
• Scapegoating: Placing the blame on external factors
• Misrepresenting: Manipulations of information
Avoiding Blame:
• Playing safe: Neutral position in conflict, not showing opinion and expressions
• Justifying: Developing explanations
• Scapegoating: Placing the blame on external factors
• Misrepresenting: Manipulations of information
IM Techniques:
•Conformity
•Excuses
•Apologies
•Self-Promotion
•Flattery
•Favors
IM Techniques:
•Conformity
•Excuses
•Apologies
•Self-Promotion
•Flattery
•Favors
Impression Management
The process by which individuals attempt to control the impression others form of them.
Foundation of Organizational Structure
TWELFTH EDITION
Key Elements:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization
Key Elements:
• Work specialization
• Departmentalization
• Chain of command
• Span of control
• Centralization and decentralization
• Formalization
Organizational Structure
How job tasks are formally divided, grouped, and coordinated.
Division of labor:
•Makes efficient use of employee skills
• Increases employee skills through repetition
•Less between-job downtime increases productivity
•Specialized training is more efficient.
•Allows use of specialized equipment.
Division of labor:
•Makes efficient use of employee skills
• Increases employee skills through repetition
•Less between-job downtime increases productivity
•Specialized training is more efficient.
•Allows use of specialized equipment.
Work Specialization
The degree to which tasks in the organization are subdivided into separate jobs.
Grouping Activities By:
•Function
•Product
•Geography
•Process
•Customer
Grouping Activities By:
•Function
•Product
•Geography
•Process
•Customer
Departmentalization
The basis by which jobs are grouped together.
Chain of Command
The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.
Authority
The rights inherent in a managerial position to give orders and to expect the orders to be obeyed.
Unity of Command
A subordinate should have only one superior to whom he or she is directly responsible.
Narrow Span Drawbacks:
•Expense of additional layers of management.
•Increased complexity of vertical communication.
•Encouragement of overly tight supervision and discouragement of employee autonomy.
Narrow Span Drawbacks:
•Expense of additional layers of management.
•Increased complexity of vertical communication.
•Encouragement of overly tight supervision and discouragement of employee autonomy.
Concept:
Wider spans of management increase organizational efficiency.
Concept:
Wider spans of management increase organizational efficiency.
Span of ControlThe number of subordinates a manager can efficiently and effectively direct.
Centralization
The degree to which decision making is concentrated at a single point in the organization.
Formalization
The degree to which jobs within the organization are standardized.
Decentralization
The degree to which decision making is spread throughout the organization.
A Simple Structure:Jack Gold’s Men’s Store
A Simple Structure:Jack Gold’s Men’s Store
Simple Structure
A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.
Bureaucracy
A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.
Key Elements:
+Gains the advantages of functional and product departmentalization while avoiding their weaknesses.
+Facilitates coordination of complex and interdependent activities.
– Breaks down unity-of-command concept.
Key Elements:
+Gains the advantages of functional and product departmentalization while avoiding their weaknesses.
+Facilitates coordination of complex and interdependent activities.
– Breaks down unity-of-command concept.
Matrix Structure
A structure that creates dual lines of authority and combines functional and product departmentalization.
(Dean)
(Director)
Employee
Mechanistic Model
A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization.
Organic Model
A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.
Innovation StrategyA strategy that emphasizes the introduction of major new products and services.
Imitation StrategyA strategy that seeks to move into new products or new markets only after their viability has already been proven.
Cost-minimization StrategyA strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting.
Strategy Structural Option
Innovation Organic: A loose structure; low specialization, low formalization, decentralized
Cost minimization Mechanistic: Tight control; extensive work specialization, high formalization, high centralization
Imitation Mechanistic and organic: Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings