organizational relations

8/8/2019 Organizational Relations

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Kiran Organizational Relations

1. Individual Behavior

Concepts of needs, goals, attitudes, belief and values

Needs

- Deficiencies in human being that triggers behavior

- Individuals engage in behavior to satisfy needs for tension reduction

- Number of motivation theories have been based on needs

o Hierarchy of need theory (Maslow)

o Achievement motivation theory (McClelland)

o ERG theory (Alderfer)

Goals

Attitude- Evaluative statement or judgment concerning objects, people or events: favorable or

unfavorable

- Mechanism through which people express their feelings

- Formed by variety of forces personal values, experience, and our personalities

- Contains three components:

o Cognitive: opinion, belief, knowledge a person presumes to have about something

o Affective: feeling towards something, similar to emotion

o Behavioral: intention to behave in a certain way towards something

Belief

- Descriptive thought that an individual holds about something based on knowledge, opinion and

faith

- Acquired from parents, teacher, friends and reference group

- Influence individual behavior by acting as a foundation upon which people structure their life

- Beliefs are developed by cultural environment or functional factors (need, demand, emotions)

Values

- Basic conviction of an individual as to what is right, good or desirable

- Contains element of judgment and tend to be relatively stable and enduring

- Can be classified as:

o Terminal values: refers to desirable end state of existence

o Instrumental values: preferable modes of behavior

Perception

A process by which individuals organize and interpret their sensory impressions in order to give meaning

to their environment -Robbins




Characteristics of a perceiver

- Attitudes

- Motives

- Emotions

- Interests

- Experience

- Expectations

Characteristics of perceived

- Novelty

- Motion, sound, size

- Background

- Proximity

- Similarity

Attribution Theory

- How people explain the cause of behavior internal (person) or external (environment)

- This explanation/determination depends on:

o Distinctiveness: whether individual displays different behavior in different situation

o Consensus: whether everyone in similar situation respond in a same way

o Consistency: whether the person responds in a same way over time

- There are two attribution errors:

o Fundamental Attribution error: underestimate external factor and overestimate

internal factor while judging others behavior

o Self-serving bias: attribute own success to internal factors and failure to external factors

Halo effect

drawing general impression of an individual based on a single

Stereotyping

judging someone based on the perception of the group or community s/he belongs to

Contrast effect

evaluation of a persons characteristics in comparison with other people recently encountered

Ethnocentrism

Ethnocentrism is judging or comparing others based on ones own culture, values and standard

Personality

- Sum total of ways in which an individual reacts and interacts with others

- Relatively stable sets of psychological and behavioral attributes that distinguish one person from

another




Determinants of personality

y Heredity

y Socio-Cultural Factors

y Situational Factors

K ey Personality attributesLocus of control The degree to which an individual believe they are the masters of their own fate

Self efficacy Deciding how capable one is to perform a given task

Authoritarianism Belief in having a reasonably high authority in the organization

Machiavellianism Refers to gain power and control over others

Self esteem The degree to which one considers to be deserving and worthwhile

Risk propensity The degree to which an individual is willing to take risks

Big Five personality

y Agreeableness ability to get along with others

y Conscientiousness how reliable a person is?

y Negative emotionality ability to withstand stress, emotionally stable or not?y Extraversion ones comfort level with relationships

y Openness interest and acceptance of new ideas

Matching personality and jobs

- Based on theory of John Holland

- Matching individuals personality characteristics and the occupational requirements

- Six personality type and their congruent occupations

o Realistic mechanic, operator, farmer

o Investigative biologist, economist, news reporter

o

Social teacher, social worker, counseloro Conventional accountant, corporate manager, file clerk

o Enterprising lawyer, small business manager, real-estate agents

o Artistic painter, musician, writer, interior designer

Motivation

- Set of forces that lead a people to behave in a certain way

- Individuals willingness to exert effort to achieve the achieve goals

Process of Motivation

Unsatisfied

Needs

Tension_____

Physical

Psychological

Social

Actions to satisfy

Needs

Goal Accomplishment

Needs satisfied

Feedback




Theories of motivation

- Need Based Theories

o Hierarchy of needs theory (Abraham Maslow)

o Motivation hygiene theory (FredrickHerzberg)

o ERG Theory (Clayton Alderfer)

o McClelland Theory of needs (David McClelland)

- Process Based theories

o Equity Theory (J. Stacy Adams)

o Expectancy Theory (Victor Vroom)

o Reinforcement Theory (Skinner)

Motivation techniques and Programs

y Management By Objectives (MBO) technique of self control of performance of employee

through goal setting

y Employee Involvement Programs physical and mental involvement of employees in decision

makingo Delegation, participative management, work teams

y Skill based pay plans competency based pay plan where company pay for employees range,

depth and types of knowledge, skills and behaviors

y Flexible benefit programs allow each employee to put together a benefit package tailored to

suit their needs, individualize the rewards

Current issues in motivation and Implication for manager

y Professional employees

y Temporary employees

y

Low-skilled service workersy Employees doing highly repetitive tasks

y Diverse workforce

2. Interpersonal and Group Behavior

Group

- Two or more than two individuals, interacting and interdependent, who have come together to

achieve particular objectives

Types of Group

y Formal Group

o Command Group

o Task Group

y Informal Group

o Interest Group

o Friendship group




Reasons for joining Group

y Need Satisfaction

o Security

o Affiliation

o Esteem

o Power

y Goal achievement

y Socialization

y Communication

y Identity

Stages of Group Development

y Forming

y Storming

y Norming

y Performing

y Adjourning

Group Structure

Role

- Position related behavior expected from individual

- Can be:

o Task oriented role

o Relationship oriented role

- R

ole factors influencing group behavior:o Role identity, role perception, role expectations, role conflict, psychological contract

Norms

- Acceptable standards of behavior shared by members within a group

- Informal rules of behavior

- Classification:

o Performance norms

o Appearance norms

o Social arrangement norms

o Resource allocation norms

- Conformity is process of adjusting ones behavior to align with the norms of the group

Status

- Socially defined rank given to group members by others

- Relative standing in the group

- Embodies status symbol and status equity

o Status symbol: titles, company car, personal secretary, exclusive membership




o Status equity: perception of equity in a group hierarchy

Contingency variables affecting group behavior

Group Cohesiveness

-

Degree to which the group members are attracted to each other and are motivated to stay inthe group

- Sources of group cohesiveness:

o Frequent interaction

o External threats

o Difficulty in entry into a group

o Cooperative atmosphere

o Shred Goals, Attitudes and Values

o Small size

- Increasing group Cohesiveness

o

Member similaritieso Group Success

o Group size

o More interaction

o Increased status

o External Competition

o Group Reward

o Attitudes and values

Work Teams

-

A cooperative group where individual efforts results in positive synergy through coordinatedefforts

- Yields higher output without any increase in inputs from organization

Types of Work teams

y Problem Solving teams

y Cross Functional teams

y Virtual teams

y Self managed teams




3. Leadership

- Ability to influence the group towards the achievement of a vision or a set of goals

- Influences goal achievement and empowers people to take actions to reach goals

Leadership Theories

Trait theories of leadership

- Theories that consider personal qualities and characteristics that differentiate leaders from non

leaders

- Some common differentiating traits are:

o Drive

o Desire to lead

o Honesty and Integrity

o Self Confidence

o Intelligence

o Job related Knowledge

- Limitations:

o no universal trait that is applicable in all situation

o traits always do not distinguish leaders from non leaders

o little value in predicting behavior

Team EffectivenessContext

AdequateResource

Leadership andstructure

Climate of trust

Performanceevaluation andreward system

Composition

Abilities of members

Personality

Allocating Roles

Diversity

Size of teams

Member flexibility

Member

preference

Work Design

Autonomy

Skill Variety

Task Identity

Task Significance

Process

Common purpose

Specific goals

Team efficacy

conflict levels

Social loafing




Behavioral theories

-proposes specific behavior differentiate leaders from non leaders

Ohio State Studies

- identified independent dimensions of a leader behavior

o

Initiating Structure: the extent to which a leader is likely to define and structure his/herrole and those of sub-ordinates; task oriented

o Consideration: the extent to which a leader is l ikely to have job relationship

characterized by mutual trust, respect for sub-ordinates ideas and regard for their

feelings; people oriented

- Leaders high in both dimension tend to achieve high performance and satisfaction

University of Michigan Studies

- Came up with two dimensions of leader behavior

o Employee oriented: emphasizes interpersonal relationship

o Production oriented: emphasizes technical aspect of job

- Study favored leader who were employee oriented

Managerial Grid

- Graphical portrayal of a two dimensional view of leadership style




Contingency Theories

F iedlers Conti n gency model

- Situation defines leadership effectiveness

- E

ffective group performance depends on proper match between leadership style and situation- Leadership style identification

o Relationship Oriented

o Task Oriented

- Defining the situation

o Leader-member relations

o Task structure




o Position power

- Matching leadership style with situation for maximum leadership effectiveness

- Task oriented leaders: favorable and unfavorable situation

- Relationship oriented leaders: Moderately favorable situation

P ath Goal Theory - leaders job is to provide follower with information, support and other resource necessary for

them to achieve goals

Leader Behavior

- Directive Leadership

- Supportive leadership

- Participative leadership

- Achievement oriented leadership

Contingency Variables

- Personal Characteristics

o Locus of Control

o Perceived ability

o Experience

- Environmental factors

o Task structure

o Formal authority system

o Work group

Using one of four styles contingent on situational factors, the leader attempts to influence sub-

ordinates perception and motivate them which leads to role clarity, goal expectancies, satisfaction and

performance.

4. Organizational Communication Process

- Communication is the transfer of information and understanding from one person to another

person

Types of Communication

Formal Informal

± Formal: downward, upward, two-way, horizontal. Diagonal

± Informal: single strand, gossip, probability, cluster

y Internal (within the company) External (company with stakeholders

y Direct - Indirect




Types of business communication

y Formal Communication

o Inter-operational

o Extra-operational

y Informal Communication

o Personal Communication within organization

o Personal Communication outside the organization

Process of Communication

Interactive Communication (horizontal) in an organization

The classical hierarchical organization structure gives formal recognition only to vertical communication.

Nevertheless, most of the classical theorists saw the need to supplement the vertical with some form of

horizontal system. Horizontal communication is required to make a coordinated effort in achieving

organizational goals. The horizontal requirement becomes more apparent as the organization becomes

larger, more complex and more subject to the downsizing and the flattening of structures.

Implications of Interactive communication

- Interactive communications is mainly represented by networking activities shown to be related

with successful managers

- Interactive communication provides needed social support for an individual

Barriers to effective Communication

Physical

Physical Distance

Noise

Physical arrangement

Psychological

Perception

Filtering

DistrustEmotions

Biased Viewpoints

Defensiveness

Organizational

Poor planning

Structure complexity

Status differenceDistance

Information overload

Timing

Technology

Semantic

Language

jargon




- Interactive communication becomes useful when this support is in terms of task co-ordination

to achieve overall goals

- This becomes a sacrifice to an organization when individual only communicates horizontally but

fail to communicate upward or downward

ThePurposes andMethods of Interactive CommunicationLuthans has summarized four of the most important purposes of interactive communication:

1. Task Coordination: The department heads may meet monthly to discuss how each department is

contributing to the system's goals.

2. Problem Solving: The members of a department may assemble to discuss how they will handle a

threatened budget cut; they may employ brainstorming techniques.

3. Information Sharing: The members of one department may meet with the members of another

department to give them some new data.

4. Conflict Resolution: The members of one department may meet to discuss a conflict inherent in

the department or between departments.

Methods of Interactive Communication

- Departmental meetings

- Inter-departmental meetings

- Teams

- Video conferencing

- Distribution of written reports across departments

5. Inter-Group Conflict Management

Conflict

- Conflict is a process that begins when one party perceives that another party has negatively

affected, or is about to negatively affect, something that the first party cares about

Types of conflict

- Functional and Dysfunctional Conflict

- Task conflict, relationship conflict and process conflict

- Vertical, horizontal and line-staff conflict

Transition in Conflict Thought

- Traditional View: assumed all conflicts are bad; Synonymously used with violence, destruction

and irrationality

- Human Relation View: viewed conflict as a natural occurrence in all group and organization; it

cannot be eliminated and there may be times where conflict may benefit performance




- Interactionist view: encouraged conflict when harmonious, peaceful and co-operative group

become static and non-responsive to change and innovation; doesnt propose all conflicts are

good functional and dysfunctional conflicts

Conflict Process

- Opposition or Incompatibilityo Communication

o Structure

o Personal Variables

- Cognition and personalization

o Perceived conflict

o Felt Conflict

- Intentions

o Competing

o Collaborating

o Compromising

o Avoiding

o Accommodating

- Behavior

- Outcomes

o Increased group performance

o Decreased group performance

Dynamics of Inter-group Conflicts

- Intra group Dynamics

o Loyaltyo Task accomplishment

o Leadership

o Group structure

o Cohesiveness

- Inter Group dynamics

o Perception

o Interaction and communication

o Orientation

Conflict management approaches and techniques

Conflict stimulation

- Communication

- Bringing in outsiders

- Firing an insider

- Restructuring

- Devils advocate




- Reward for Dissent

Conflict Resolution

- Problem Solving

- Super-ordinate goals

-

Expansion of resources- Avoidance

- Smoothing

- Compromise

- Authoritative command

- Altering human variable

- Altering the structural variable

6. Organizational Relations and Dynamics

Organizational Design

Organizational Structure Model

- Mechanistic organization

- Organic organization

Organizational Structure elements

- Work specialization

- Departmentalization

- Chain of command

-

Span of control- Centralization and Decentralization

- Authority and responsibility

Organizational Structures

SimpleOrganizational Structure

- Low departmentalization

- Wide span of control

- High centralized authority

- Little formalization

B ureaucracy

- Highly routine operative task achieved through specialization

- High formalization

- Tasks are grouped into functional departments

- Centralized authority

- Narrow span of control




- Decision making follows chain of command

- Rigid rules and regulations

- Functional structure or Divisional Structure

Matrix structure

-

Creates dual line of authority- Incorporates functional and product departmentalization

- Facilitates efficient allocation of specialists

- Economies of scale by providing best resources and affective way of ensuring their efficient

deployment

Team Structure

- Use of teams as the central device to co-ordinate work activities

- No line of managerial authority exists

- Teams are free to design work in the way they think to be best

- They are responsible for all activity and outcomes

V irtual Organization

- Network or modular organization

- A small core organization that outsource major business function

- High degree of flexibility

B oundryless organization

- Seek to eliminate chain of command

- Have limitless span of control

- Replace departments with empowered teams

-

Workers often work outside the physical boundary of employers premise

Organizational designs and employee behavior

- Not everyone prefer the freedom and flexibility of organic structure, some perform well and

prefer standardized and less ambiguous tasks

- It is felt that work specialization contributes to productivity but reduces job satisfaction.

However individual differences should be considered

- Some people like to be left alone while some enjoy security of Boss who is quickly available at all

times. Span of control should be decided accordingly

- Individual differences surface in centralization-decentralization issue. People with low self

esteem favor shared decision making- To maximize employee performance and satisfaction individual differences, such as experience,

personality, and the work task needs to be considered.

- Selection procedure should properly match individual characteristics with organizational

characteristics




7. Technology and Work Design

Work Design Method

- Job specialization

- Job simplification

- Job rotation

- Job enlargement

- Job enrichment

- Autonomous teams

Theories of Work Design

Job Characteristics theory

- Experienced meaningfulness of work, experienced responsibility of work outcomes and

Knowledge of results

-

Skill variety, task identity, task significance, autonomy and feedback- Leads to

o High motivation

o High quality performance

o High job satisfaction

o Low absenteeism and turnover

Social Information processing theory

- Social information at workplace influences how employee perceive and react to job

characteristics

- Positive and negative social information

Technology and Work design

Continuous improvement process

- Continuous improvement of all organization process

- TQ M is adopted

- Advocates continuous improvement of product quality through everyones commitment and

involvement to satisfy customer needs

- Results in lower cost and higher quality

- Uses PDCA (plan, do , check, act) cycle for incremental improvement

-

Requirements:o New technology

o Commitment from top

o Employee involvement

o Team effort

o Production methods

o Customer orientation




o Control

- Tools for TQ M

o Zero defect

o Q uality circle

o JIT

o Q uality control

o Q uality assurance

o Training

Re-engineering work process (BPR)

- Key elements

o Identify distinctive competencies

o Assess core process

o Horizontal reorganization

- Characteristics

o Seeks for radical changeo Process oriented not function oriented

o Highly IT dependent

o Very risky process

o Highly ambitious process

FlexibleManufacturing System (FMS)

- Computer controlled process technology suitable for producing moderate variety of products in

moderate quantity

- Contains several automated and programmable work stations each for different operations

- Characteristics

o Reduction in operating cost

o Lower direct labor cost

o Lower manufacturing cost

o Flexible

o Very high initial investment

WorkerObsolescence

- TQ M, FMS, BPR, robotics, CAM, CIM etc are eliminating traditional low/semi skilled jobs and

demanding job that require skills and expertise

- Employees and managers who cannot upgrade themselves or keep up with changing trend

become obsolete

- Continuously upgrade oneself, learn hard and soft skills, enhance ones learning and develop

ones capacity




8. Stress management

- Persons adaptive response to a stimulus that places excessive physical or psychological demand

on that person

Stress: Causes and Consequences

Stress Management

I ndividual Copi n g Strategies

- Exercise

- Relaxation

- Time management

- Role Management

- Support group

Organizational Copi n g Strategies

- Institutional programs

- Collateral programs

Ex erienced Stress

Environmental factors

-Economic uncertainty

-Political uncertainty

-technological change

Organizational factors

-Task Demand

-Role Demand

-Interpersonal

Personal factors

-Family problems

-Economic problems

-Personality

Physiological Symptoms

-Headaches

-High Blood pressure

-Heart disease

Psychological Symptoms

-Anxiety

-Depression

-decrease in job satisfaction

Behavioral Symptoms

-Productivity

-Absenteeism

-Turnover

Individual Differences

-Perception

-Job experience

-social support

-Belief in locus of

control

-Self efficacy

-Hostility

organizational relations

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