Organisational behaviour

Tumelo L. Matjekane

2009
 The basics of
organisational behaviour

Values Personality and personal traits

Exist in people at deeper Relatively permanent set of

psychological level psychological characteristics that create,
guide and monitor human behaviour

Instrumental
values

Terminal · Ambition
values Locus of
· Competence control
· Cleanliness
· Achievement Machiavellian
· Courage
· Social status personality
· Intelligence
· Family safety
· Self-control
· Equality External
· Politeness · High mach
· Prosperity Internal
· etc · Low mach
· Wisdom · Search
· Manipulation
· Friendship diligently
· Personal · Eg. Jeffrey Skilling,
· Freedom for new
achievement Kenneth Lay
· etc Implications of knowledge
· More comfortable (Enron)
global organisation · Act quick
with change
· Be open-minded · Act quickly to cut
career losses
· Don’t pre-judge others
· Researches
business customs as
prospective Socially acquired
immoral
· Avoid rationalising
employer needs
questionable actions
· Search for legitimate ways McCLELLAND
to operate within others
ethical points of view
· Refuse to do business Extroversion and
when stakeholders actions introversion
violate the law
· Conduct business as · External stimulation vs
openly and honestly as internal stimulation
possible
Need for
power
Job satisfaction Need for
achievement
Employee work
attitudes Need for
affiliation
Facets of job
satisfaction

Determinants · Satisfaction with work itself

· Satisfaction with pay
· Satisfaction with fellow Job involvement
· Years in career
workers
· Expectations
· Satisfaction with supervision · How much an
· Organisational
· Satisfaction with promotion employee identifies
determinants
with his / her job
Ø Supervision
· Active participation
Ø Job challenge
in the job
Ø Job clarity Job satisfaction Organisational · Self worth
Ø Incentives
and performance commitment
· Buying into organisational
objectives
Consequences · Willingness to exert
Extrinsic Measurements considerable effort on
· Improves resistance and intrinsic behalf of company
to job stress rewards · JDI · Desire to remain part of
· Mental and physical · Minesota company
health satisfaction
· Low absenteeism questionnaire
· Low employee
turnover

© Tumelo L Matjekane | 2009 Page 2 of 12 Organisational behaviour

 Stress and well-being at work
(Japanese -Karoshi )

Job stress and

its components
Organisational programmes
of wellness and job stress
Down sizing? management
Stressors
· Unfair and · Creates stress · A work life balance
demanding · Corporal wellness plans
bosses
· Un-supporting
and abrasive
co-workers Reasons
HANS SELYE Job security vs · Cost cutting
employment · Deregulation
General security · Merger-mania
Stress
adaptation · Small is beautiful
response HOLMAN
syndrome
JENKINS JNR
· Mental and physical
· The process · Experience and
responses:
whereby
· Distress (negative knowledge
Individual approaches
humans adjust
response)
to stressors in
· Eustress (positive
to managing stress
the environment
response)

A model of causes and

Professional
consequences of stress Exercise
help

· Employee
Relaxation assistance
programmes
· Prayer
· Meditation
Individual
differences Opening up

Causes of · Perception · Confiding

· Job experience Diet
stress in others
· Locus of control
· Type A behaviour · We are what
· Adaptive type A we eat!

Individual
factors Consequences
of stress
Environmental · Family problems
factors · Financial problems

· Economic uncertainty
· Political uncertainty
· Technological Physiological Behavioural
symptoms
Organisational
· Productivity level
factors · Headache · Attendance pattern
· Hypertension · Quitting the job
Micro- · Task demands · Heart disease · Accident
environmental · Role demands Psychological · Substance abuse
· Interpersonal symptoms
· Noise · Organisational structure
· Stuffy room · Organisational leader · Sleep disturbances
style · Depression, anxiety
· Organisational lifestyle · Declines in job
stage satisfaction

© Tumelo L Matjekane | 2009 Page 3 of 12 Organisational behaviour

 Motivation theory

Motivation sustains our behaviour

and keeps it systematic and focused

Content theory
Process theories

Abraham Frederick
Maslow’s Herzberg’s 2 Goal theory Equity theory
hierarchy factor theory
· SMART STACY ADAMS
Motivation explained The level of experienced · Streching
by organising human job satisfaction depends · Agreed · Social comparisons in work settings
needs into 5 levels on the availability of · + inequity: more rewards than others
hygienes and motivators · - inequity: fewer rewards than others
· Physiological
· Safety
· Belongingness
· Esteem Motivators
· Self actualisation
Intrinsic Benevolents Entitled
Expectancy
· Status theory · Comfortable · Comfortable
Hygienes · Work itself with ratio
· Promotion
E.C. TOLMAN which exceeds
Extrinsic · Challenges that of others
· How motivated behaviour occurs
· Work environment · Achievement at work
· Job security · Professional · How that behaviour can be
· Company policies growth channelled and directed Equity
· Pay · Responsibility · Explains turnover, absenteeism, sensitives
· Peer relations · Recognition career choice...
· Supervision · Prefer equity
based on
original
formulation
· A satisfied need ceases Environmental
to motivate behaviour Instrumentality
theory
at that need level (+ / -)
· Unsatisfied employee Cultural differences
needs lead to in motivation · 1st level = effort
undesirable outcomes · 2nd level = results
at work · Personal belief that 1st
· People strive to move level outcomes lead to
up the hierarchy Behaviour Modification 2nd level outcomes
· Needs are not usually Valance
completely satisfy B.F. SKINNER (+ / -)
· Unmet needs – more
Focuses on observable 1st level and 2nd
motivating Personal
employee behaviour
attractiveness of level outcomes
different outcomes

Continuous Partial
re-enforcements re-enforcements
Consequences occur Number of behaviour occurring
predictably after each Methods:
before re-enforcement
relevant behaviour
· + Re-enforcement
· - Re-enforcement
· Extinction
Ratio · Punishment
Interval
schedule
schedule
After a certain
Reward after given
number of behaviours
elapsed time Organisational factors
that influence motivation

· Role ambiguity
Fixed interval Variable interval Fixed ratio Variable ratio · Role conflict
· Organisational
Constant amount of Links consequences Based on
Consequence appraisal system
time passes before average number
after variable to given number of · Reward system
consequence of response
amount of time behaviour · Job design system

© Tumelo L Matjekane | 2009 Page 4 of 12 Organisational behaviour

 Motivation theory

Rewards and
Performance reward systems
Goal setting and
appraisal
Management by
See page 4b
objectives (MBO)

Properties of good Performance Management

performance appraisal methods by objectives
appraisal system
· Absolute standards PETER DRUCKER
· Validity · Graphics scales
Ø Content rating system · An organisational
Ø Empirical · Behaviour anchored application of the
Ø Construct rating scale (BARS) goal setting theory
Ø Convergent · A process which
Ø Discriminant develops self
· Consistency Errors? control in managers
· Stability
· Personal bias
· Halo effect
· Recency error Pillars of
· Central tendency MBO
· Strictness /
leniency errors · Employees perform better
· Similarity error when they know what is
· Forcing the rating expected of them
to match criteria · Most employees prefer Generic
self-determination at work MBO steps
· Skilled workers can be
Goal setting
motivated by well-timed
theory · Analyse
formal and informal
· Plan
feedback
EDWIN LOCKE · Define
· Employees prefer intrinsic
· Articulate
and extrinsic rewards that
· Reach mutual
are consistent with their
agreement
performance levels
· Informal review and
revision
· Formal review

Goals

· End states
· Clearly specified
difficult goals SMART
result in greater
performance · Specific
improvement than · Measurable
easy goals stated Aspects of · Achievable
in general terms Goal setting goal setting · Resource based
system process · Time specific

· Increase motivation and · Environmental issues

job performance · Goal setting process
· Reduce stress of · Goal attributes
conflicting or confusing · Employee intentions
expectations · Outcomes
· Improve accuracy and
validity of performance
evaluation

© Tumelo L Matjekane | 2009 Page 5 of 12 Organisational behaviour

 Motivation theory (cont)

Performance Goal setting and Rewards and

appraisal Management by reward systems
objectives (MBO)
See page 4a
See page 4a

Distributing
rewards in
organisations
· Performance
Classification · Effort
· Seniority
· Equality
· Power and influence

Individual and
Extrinsic Intrinsic group based
reward system
Given to the Associated with
employee by the firm the job itself

Cost savings Profit sharing

plans plans
Direct
compensation Non-financial Reduce labour Depends on health
rewards costs of economy
· Salary
· Performance · Office
bonus furnishings
· Titles...

Indirect
compensation
Scanlon plan
· Given due to employee’s Rucker plan (gains sharing)
organisational level
· In self directed team · Production committee
environment · Screening committee
· Measures the difference · Lowering costs and
between sales income information innovation
from goods produced · Bonus usually 25 - 50%
and the cost of material of savings
supplies including payroll
· Value added by labour

Company pay
practices

· Cafeteria-style fringe
benefits
· Lump sum pay system
· Skill based compensation
· Accumulating time off
· All salaried team
· Open salary information

© Tumelo L Matjekane | 2009 Page 6 of 12 Organisational behaviour

 Job design and employee
reaction to work
The linking of specific task behaviours to jobs, followed
by the application of work techniques, equipment and
job control procedures to job and its activities

Quality of work life

(QWL)

Job design
Horizontal principles
increases

Vertical job Cross

loading training
Job Cross training
· Changes which · Skill based
enlargement
· Employees are influence the learning
· Increases the trained in different planning and · Employees and
number of work specialised work doing components bonuses and
activities in a job activities of work rises when
· Decrease the extent acquiring new
of boredom and skill
overspecialisation
Job rotation Job rotation

· Exposes workers · Decrease boredom Job

to a variety of enlargement
specialised jobs
over time · Changes nature of
work by
Other approaches eliminating
overspecialisation
· 4 day work week
· Job sharing
· Telecommunication
Job design and · Flexi time
Herzberg’s two
factor theory

The team approach

to job design

TAVISTOK INSTITUTE
Job range Job depth OF HUMAN RELATIONS

· Skill variety · Autonomy

Job content
· Task identity · Feedback
The subjective · Task significance Socio-technical
aspects of the · Social opportunities system theory
job and the
social setting in The amount of
which it is · Social and interpersonal
discretion which an
performed The number of · Operational, equipment
employee has to
tasks an employee
select various job
performs
procedures to
accomplish work

Autonomous work
groups / self
directed teams

HACKMAN

Likert’s system four

organisations vs
system 1

© Tumelo L Matjekane | 2009 Page 7 of 12 Organisational behaviour

 Work group dynamics

Types of groups

Decision making
· Work / group
· Task / command group in groups
· Informal group
· Project team
Work group
structure Delphi
· Composition Brainstorming technique
· Cohesiveness
· Norms · Phillips 66 · Email and web
· Groupthink, for eg · Stop and go
“Bay of pigs” (Cuba) · Reverse
and Vietnam war Group size and brainstorming
performance Nominal group
Positional technique
status
· Minimise verbal
· Expresses the Group size interaction among
amount of and internal members
responsibility conflict · Group no larger
than 9 people
· Conflict increases
with size

Group size
Work group
Group size and structure
participation
· Range of abilities,
talents and aptitudes · Contact and duration BRUCE W. TUCKMAN
increase with size decrease as group
size increases · Forming
· Storming
· Norming
· performing
Managing groups

Competition
and conflict
Guidelines for reducing
process losses Decision making in
teams (participative)
· Define the workgroup
task / problem carefully
· Don’t jump to idea
evaluation before idea Intergroup behaviour
evaluation has created and performance Managing
numerous alternatives The normative decision conflict within
· Avoid group think STEERS AND BLACK model and between
· Manage the norms of - The Vroom-Yetton-Jago groups
the group by making Three prevailing
valued rewards group interaction · The 5 forms of decision making: · Avoiding Two
contingent on high requirements ØAI: manager takes decision · Accommodating organisational
quality group alone · Forcing views on conflict
performance ØAII: manager seeks info from · Compromising
· Make group level subordinates, then decides · Collaboration
rewards contingent on · Interdependence ØCI: manager explains problem to
the group’s contribution · Information flow subordinates in 1 to 1 format
to work unit success · integration ØCII: manager explains problem
to subordinates in group format
ØGII: manager explains problem Contemporary
to subordinates in group
Pathway to effective intergroup format, then makes final
· Conflict viewed
relations based on level of task decision
as useful
complexity and uncertainty Traditional
deviation from
· Rules and procedures · Encourage the status quo
· Member exchange suppression
· Linking roles of conflict
· Task forces
· Decoupling

© Tumelo L Matjekane | 2009 Page 8 of 12 Organisational behaviour

 Power, politics, leadership,
entrepreneurship

Entrepreneurship

Politics
Leadership
What is it? · Approved methods and
approved outcomes
Sources of · Approved methods and
The creation of power unapproved outcomes
wealth by
· Unapproved methods
assuming risk · Idea champion
and approved outcomes
through equity, · Sponsor
· Unapproved methods
time or career · Godfather Roles of the
and unapproved
commitment to · Green house manager
outcomes
add value to a
service or product
MINTZBERG
5 Myths
· Interpersonal Approaches to
· Doers not thinkers · Informational
How managers leadership
· Are born not made · decisional
· All you need is money play politics
· All you need is luck
· Entrepreneurial profile · Whistle blowing
· Line vs staff conflict
· Sponsorships and
coalition building
· Insurgency / resisting
Power vs auority
authority

Behavioural
Sources of approach
power Trait
· Reward power approach
· Coercive power
Using power
· Legitimate power BENNIS AND NANUS
· Referent power
ethially
· Expert power · Logical thinking
· Punishment used
· Persistence traits
consistently, uniformly KURT LEWIN
· Empowerment
and privately
· Self control OHIO STATE
· Communicate well and · Autocratic
UNIVERSITY
respect subordinates · Democratic
· Initiating · Free reign
structure vs
consideration
Situational
How subunits
approach
gain power
· Scarcity
· Uncertainty
· Centrality
· Absence of Fielder’s
How to gain
substitutes contingency
power (personal) theory

· Build an image of success House’s path-

· Create obligation in others goal theory
· Identify with powerful people Least preferred
· Giving excellent performance co-worker (LPC)
questionnaire · Directive
· Limiting access to information · Supportive
· Controlling supplies · Participative
· Relationship between
· Developing a network · Achievement
leader and members
· Re-organising of the job orientated
· Task structure
· Taking risks and being creative
· Position of power
· Being a knowledge worker
· Manipulating rules
· Controlling personal decisions
· Controlling financial resources
· Managing your boss Relationship Task
orientated orientated

© Tumelo L Matjekane | 2009 Page 9 of 12 Organisational behaviour

 Organisational design BURNS AND STALKER

A serious of decisions made by

managers about the best Mechanistic
organisational arrangement to achieve
the goals in the strategic plan · Increased division of labour
· Uniform departments
· Narrow span of control
· Tight rules and policies
Organic
· Less job specialisation
· Increased delegation of authority
· Low uniformity
· Wide span of control

Aspects of
organisational design The responsive
organisation
Service orientated
organisation TOM PETERS

Span of
Division control Creating a
of labour service driven Achieving a
IVANCEVICH
· spececialisation
organisation responsive
& MATTESON
organisation
· The no. of · Conduct service
subordinates that audit · For capturing
report to a given · Well conceived competitive advantage
Delegation manager strategy for service · Simplify and delayer
of authority · Affected by: · Customer oriented Drivers of growth in · Re-assign supporting
required contact, front line people – customer service staff
· Motivates degree of training needed · Widen span of control
· Managers can’t do · Differentiated service
specialisation · Customer friendly · Empower workforce
all and ability to system often easier and · Create team based
· Leads to promotion communicate faster achieved than work system
and pay rises differentiated product
· “The rule of 100" · Customers demand
better quality
Departmentalisation · Service improvement
strengthen brand Boundary-less
loyalty, erect market organisation
segment and entry
barriers · No distinction between
· Bad service drives off leaders and followers
Functional Matrix customers and · Flexible and adaptable
design departmentalisation lowers profits · Authority boundary
· Task boundary
Product · Need for · Political boundary
Territorial Organisational
divisional specialised · Identity boundary
design
design management structure
· In companies – project
· Based on Change to revenue driven
manager
geographic with diversified market value maximisation
area product lines perspective
· E.g HP

Inter-organisation
Decentralisation design
Coordination
· Pushing authority down the · Designs that permit
Centralisation and control
hierarchy so that decisions one company to work
are made close to the origin closely with another
· Retention of of the problem
A set of mechanisms used
to link the actions of sub- · Strategic alliance
authority at top · Outsourcing
units to achieve a pattern of · Conglomerates
management · Use of contract workers
desired outcomes · Japanese Keiretsu,
· High formalisation · Sophisticated consumer Kinyokai, Amakudori
· standardisation · Shareholder demanding high LAWRENCE
returns & LORSCH

Vertical coordination
mechanism tools
Horizontal
· Teams and task forces coordination
· Direct supervision mechanism
Process
· Standardisation · Direct contact - control Results
· Work processes Galbraith control
· Outputs · Liaison roles · Standardisation of
· Performance appraisal · Cross functional teams task performance · MBO
· Management information system · Permanent teams · E.g TQM · Team orientated

© Tumelo L Matjekane | 2009 Page 10 of 12 Organisational behaviour

 Organisational culture
and change

Organisational
Culture change
Beliefs and values that are · Environmental
Methods of
understood by employees complexity change in OD
· Environmental
change See page 9b
· Environmental
Contributors Developing highly uncertainty
adaptive cultures
· CE / founder’s role
· Socialisation: transmits · The HOME approach:
organisational culture Ø History Planned change
from one generation Ø Oneness process
to the next Ø Membership
Ø Exchange
R. PASCALE
ØRealistic job previews ROBERT
ØDebasement and DAILEY
indoctrination
ØIntensive on the job
training Liabilities of Recognising
ØAdjust reward and
strong culture need for change
promotion system
ØUse top managers as
personal role models · Goals and mission Diagnosis
ØRe-enforce the cultures may change, strong
with stories about the culture no longer · Multilevel
organisation and its relevant (organisational,
founder · Strong culture may team, individual)
Resistance
ØUse mentors to develop not mix well in M&A · Steering
younger employees · When culture · Fear committee to
legitimises in- · Trying to guide it
fighting, secrecy and maintain status
empire building quo
· Eg. Daimler-Chrysler · Inclusion of these
vs Toyota affected can help
Selection of
change methods
· Participative
Organisational life
eg Vroom-
cycle theory Carry over
Yetton-Jago

· Inception and start up operations · Motivating newly

· Rapid growth and market learned behaviours
expansion KURT · Bridge the gap between
· Steady growth and market maturity LEWIN “learning environment”
· Consolidation and decline and “working
· Eg. Dell, Google, Apple environment” Evaluate
· Eg Motorola university the results
· Important to recognise
organisational decline and · Quantitative
adapt structures accordingly measures
· Danger: overconfident and
Institutionalisation
inattentive management team

· Planned change
becomes part of
operations in
Unfreezing Re-freezing
spite of
managerial
· Dissatisfaction · New succession,
with old culture Changing processes attrition or
and processes adopted and alteration in other
· Action play Diffusion
· Constructive become organisational
destruction implemented permanent aspects
· Labour · Training parts of firms WALTON
discontent · Decentralisation and cuture
· Diffusion not always
guaranteed, can be
undermined
· Eg. Volvo, Shell

© Tumelo L Matjekane | 2009 Page 11 of 12 Organisational behaviour

 Organisational culture
and change (cont)

Methods of
change in OD
Culture
Organisational
See page 9a change
See page 9a

System wide
process
changes
Interpersonal
and group · Survey feedback
· Collecting questionnaire
KURT LEWIN data from employees
· Summarise
· Feedback to employees Grid organisational
· Survey of organisations development

T-group
procedures ROBERT BLAKE &
JANE MOUTON

· A pre-packaged OD method
Ø Grid seminar
Encounter Ø Intra-group development
group Ø Inter-group development
Team building Support Ø Development of an ideal
· Deeper personal programme group strategic model
knowledge and Ø Attaining the ideal strategic
· Excellent tool for · Problem-focused model
development
ensuring the fit groups Ø Stabilisation and process
between culture, · Unite individuals critique
mission, goals and · Provide support
strategy
· Should be regular
process for
diagnosing and
attacking problems

© Tumelo L Matjekane | 2009 Page 12 of 12 Organisational behaviour