Ebs Exam Analysis-2 PDF

Collected by Jörg Stegemann
Organisational Be haviour
Topic summaries
(Formatted for Kind le DX)
Organisational Behaviour Topic Summary

Table of conte nts
Organis ational Des ign 3

Change Management 5
Organis ational culture 7
Team building, team performance 9
Job Des ign 12
Apprais al Sys tems 14
Locus of control 16
Behaviour modification (BMod) 17
Motivation theories 19
Reward s ys tems 23
Job Satis faction 26
Organis ational Commitment 27
Job Involvement 28
Conflict 29
Intrapreneurs hip 30
Power 31
Politics 33
Leaders hip theories 34
Stres s / Stres sors 37
Topic his tory 39

Organisational Design
Exam s
· Decem ber 2009, Essay 3
· June 2009, Essay 2
Ke y conce p ts
· Or ganisational Design
· Downsizing
· Dela yer ing
Or ganisational Design
· Division of labour
How the company appr oaches job specialisation. Tends to be high in or ganic, tr adi
tional, functional str uctur es
· De le gation of authorit y
Dele gat ion of authority must be accompanied by dele gation of responsibility to the
lowest level in the or ganisation
· De partme ntalisation
How is the company or ganized inter nally?
· Span of contr ol
Specifies the number of r epor tingstaff allocated to mana ge r s
Depar tme ntalisation in OD

· Functional
· Pr oduct / Division
· Ter r itor ial
· Matr ix
Product de sign has the advantage that customer -facing staff is product k now ledge able and
able to r elate much mor e closely to pr oduct specific pr oblems. Allows for the cr eation of
smaller business units that can act as profit centres and per for mance mea sur es ar e much
easier to identify.Ther e is some duplication of functions in Pr oduct str uctur es and pr oduct
change can be har der .

Te rritorial de sign splits the or ganisation into geographical areas and allows staff to concen
tr ate on specific customer groupings.Allows for good tr aining oppor tunities for people to
move up the mana ge ment str uc tur e and at the same time makes the or ganisation more
customer res ponsive. Ther e is aga in some mea sur e of duplication of functions, and mana ge r s
have to be capable of mana ging acr oss mor e than one function.
Matrix de sign over lays a pr oduct or pr oject design onto a functional one and has the adv an
tage s of both Pr oduct and Functional str uctur es.The focus on team s is much gr eat er than in
other designs. The major pr oblem with Matr ices is the pr oblem of staff hav ing more than one
boss ( and the possible confusion of pr ior ityin objectives).
Downsizing
· Reducing the size of the wor kfor ce
· Lower ing the costs of oper ating the or ganization
· Incr eased levels of str ess for all involved
· Has to be mana ge d using planne d change pr ocesses (Lewin, Dailey)
See separate topic in this!
Dela yer ing

· Reducing or eliminating layer s of middle mana ge r s
· Adds to the effect of downsizing by r educing mana ge ment costs
· Dir ectly impacts on dele ga tion of author ity and division of labour
· May be necessar y for the or ganisation to complete job r edesign
· Appr opr iate time to think about intr oducing Self-Directed Tea ms (SDTs) to take over
some of the decision-making pr eviously complete d by mana ge r s

Change Management
Exam s
Ke y conce p ts
· Planne d Change ( PC) pr ocess
o Kur t Lewin
· Rober t Dailey 8-step model
The Planne d Change Pr ocess (PC)

· Developed by Kur t Lewin
o Unfr eeze
o Change
o Refr eeze
· Refined by Rober t Dailey into an 8-step model
o Unfr eeze
§ Recognising the need for change
§ Diagnosis
§ Dealing with r esistance to change
o Change
§ Selection of change methods
§ Car r y-over
§ Evaluation of r esults
o Refr eeze
§ Institutionalising the change
§ Diffusing the change thr oughout the or ganisation
Diagnosis
Multi-level collabor ative data-gathe r ing pr ocess.Ser ves to cr eate dissatisfaction with the
status quo.Can be assisted by appointing a change age nt, as well as a steer ing committee made
up of expe r ienced, r espected staff with good communication skills. The level of diagnosis
cr eates expe ctations of the change pr ocess.

Re sistance
Mana ging the inevitable r esistance to change , which is effectively fear of the unknown. Resis
tance can be r educed by involvingas many people as possible in the change . Par ticipation will
lea d to staff feeling menta lly and physically involved in the pr ocess,motivated to contr ibute,
and willing to accept any author ity which may be dele ga ted to them as a r esult.
Carryove r
Change behaviour s ar e often lea r ned off-site,this stage makes them r eal in the wor k setting.
Car r yover is assisted if employees can use what they have lea r ned immediate ly; they can see
how it is applicable to what they do.Mana ger s and super visor s act as r ole models.
Evaluation
Helps under stand the exte nt to which the change has been successful.It mea ns individuals r e
actions,attitudes, knowledge and behaviour ; it mea ns the change fr om a customer per spective
as well as fr om the or ganisational per spective.
Institu tionalisation
When the change is embe dded per mane ntly in the str uctur es,pr ocesses and cultur e of the
or ganisation.This is helpe d if senior mana ge r s show their full commitme nt to the change s and
act as r ole models; if the change s live up to expe ctations; if the change s pr oduce the r ewar ds
pr omised; and a long as a multi-le vel diagnosis and a full evalua tion wer e conducted.
Diffusion
Often change s ar e piloted first in a sub-unit.Diffusion is when the change s ar e r olled out to the
r est of the or ganisation.

Organisational culture
Exam s
Ke y conce p ts
· HOME
· Difficult to define
H: History
· Making the or ganisation's history r elevant to today's business activities
O: Oneness
· Cr eating shar ed expe ctations ar ound the or ganisation's cor e values
M: Mem ber ship
· Raising the level of infor mation excha nge, swapping ideas amongst staff
E: Exchange
· Co-or dinating betwee n staff, customer s and vendor s.
Pr ofessor Smir cich,an expe r t on or ganisational cultur e, tells us Or ganisational cultur e is the
beliefs and values which ar e under stood by employees.
Dimensions of or ganisational cultur e:
· Cultur e indicates the ‘ way of life' for wor ker s
o Influence often taken for gr ante d
o Cultur e becomes obvious when it must change
· Cultur e is stable ov er time and it r esists quick change s
· A cultur e involves inter nal and exte r nal aspects
o Inter nally, a cultur e might encour age pr oduct quality,cost effectiveness and
accur acy
o Exter na lly, the cultur e may pr omote customer ser vice, timely distr ibution,
pr ice competitiveness and social r esponsibility
· Cultur e can be
o Mea sur ed
o Evaluate d
o Per fected
· Cultur e can develop in a r andom fashion or it can be mana ge d to suppor t the firm's
str ategic plan.
o If cultur e is ignor ed by exe cutives the firm will ‘
for get what it does well'
Multiple Cultures in Organisations

Beca use of geogr aphic disper sion and var iations in business envir onments and pr oduct lines,
firms develop subunits with distinctive cultur es. Exam ple : Har dwar e vs.Softwar e developme nt
ar eas.
The firm's cultur e depends on two things

1. The r ole of the chief exe cutiv e (or founder)
2. The firm's socialisation pr ocess: "lea r ning the ship's r opes"
The Chief Executiv e or Founder's Role

Extr em ely successful companies owe a lot to their dynam ic founder s or char ismatic lea der s.
Str ong cultur es of ver y successful companies r eflect the per sonal values of the founder .The
impr int of Watson on IBM, Gate s on Micr osoft,Jobs on Apple, and Michael Dell on his
eponymous computer company is obvious.
Socialisation
Socialisation tr ansmits an or ganisation's cultur e fr om one gene ration of employ ees to the next .
Firms that successfully integr ate str ategy and or ganisational cultur e tr y to avoid haphaza r d
employee sele ction,unchallenging job assignments and fr agme nted car eer paths which all
er ode cultur e and cause the firm to badly under -per for m its r ivals. Pr ofessor Pascale claims
that firms with str ong cultur es go to gr eat lengths to teach employees how to thr ive in their
wor k sur r oundings.
Dev eloping Adaptive Organisational Cultures

A str ongcultur e is not alwa ys a pr oven suppor t to competitive advantage! A str ong,change -
r esistant cultur e may impede gr owth, ear nings and competitiveness (exa mple : IBM in the
1990's). Astr ong cultur e that adapts to change s in the firm's financial and str ategic goals en
sur es that the firm detects and r esponds positively to pr ofit-making oppor tunities.Mana ge
ment that wants an adapta ble (and str ong) cultur e must mak e investme nts in labour for ce
tr aining and developme nt.

Team building, team performance

Exam s
Ke y conce p ts
· Tea m developme nt stage s
· Leader ship style
o Pr oject team
o Self Dir ected Tea m
Te am de ve lopme nt stage s (accor ding to Tuck man 's model)

· For ming
· Stor ming
· Nor ming
· Per for ming
Forming
· Mem bers mov e from a personal focus to a group focus
· Mem ber s ar e busy to
o Identifying the behaviour s most impor tant to the gr oup
o Assessing the skills,abilities and expe r iences of mem ber s
o Discussing and compar ing mem ber s' goals and motives
o Assessing the degr ee of ear ly commitme nt and involvement of mem ber s to
the gr oup
· Leads to the formation of roles and hierarchy of author ity
· Pr essur ing gr oups to move quickly thr ough for ming is a good idea
Storming
· Inter per sonal conflict eme r ges
· Mem ber dissatisfaction with the cur r ent lea der may sur face and he may be r eplace d
· These disagr eem ents ar e stage 2 pr ocess losses and they ar e necessar y to cr eate a
basis for tr ust and collabor ation and movement to stage 3
· If the gr oup is unable to develop mem ber behaviour s to suppor t tr ust and
collabor ation, mem ber s will be able to satisfy their per sonal needs mor e effectively
on their own r ather than thr ough gr oup mem ber ship
o May cr eate late stage 2 tur nover and absente eism
o Some gr oups get stuck her e and never make it out of stage 2
o Hur ts the mem ber s and the or ganisation
§ Resour ces wasted in constr ucting the gr oup
§ Employee s less likely to see futur e gr oup mem ber ship as a viable
car eer pathway or a pathway to per sonal need satisfaction
Norming
· Inter per sonal conflict subsides and the gr oup's normativ e structure eme rges
· Mem ber s ar e thor oughly awar e of their involvement and commitme nt to the gr oup
· Mem ber s believe firmly that the benefits of group mem bership outw eigh its costs
· Leadership position is established and stable
· Gr oup has a hier ar chy of r oles
· Gr oup may become ‘ over -confident' to the exte nt that groupthink sets in
Performing
· Actual performance close to potential performance
· Gr oup exhibits collabor ation; i.e. mem ber s confr ont and solve task-r elate d conflict
and inter per sonal conflict
o Colla bor ation sustains mem ber s' involvement, motivation to contr ibute,
accepta nce of author ity and active par ticipation
· Composed of mem ber s who ar e confident about their per sonal abilities
· Tea m mem ber s r einforce each other s' confidence in the gr oup's ability to achieve its
per for mance objectives
· Key difference betwee n a stage 3 and a stage 4 wor k gr oup is the ability of the stage 4
gr oup to detect the eme rgence of process losses in sufficient time to cor r ect them
Leadership sty le
Incr easing cohesion in team s to move gr oups to stage 4
· Clar ify objectives and expe ctations
Key at all stage s of gr oup developme nt. Gr oup knows what the objectives ar e and has
clea r goals
· Encour age the gr oups to develop nor ms
For dealing with conflict,gathe r ing infor mation,making decisions
· Give the gr oup r egula r feedback on behaviour s that help or hinder the gr oup
· For malise the r ole of disturbance handle r
Give it to a team mem ber with a high need for affiliation
· Consider the composition of the team
Has it the best fit of people, per sonalities,expe r ience, expe r tise and individual
differ ences in or der to deliver the pr oject?
· Is the size of the team s an issue?
Lar ger gr oups have mor e ideas, expe r ience mor e conflict and have lower
per for mance per individual. Lar ger gr oups ar e mor e difficult to mana ge (per haps
they have social loafer s) and they tend to have mor e vague and gene r al objectives
· Role of the pr oject mana ge r in the team and how is he per ceived?
Could the pr oject mana ge r s be par t of the pr oblem? Is he taking advantage of
positional power to dominate the gr oup? Actingas good r ole models and letting
gr oup mem ber s cr iticise his r ole?
· Refocus the team on objectives by consider ing r ewar ds
Tea m-base d bonus tied to completion of key stage s of the pr oject?
· Per for mance Appr aisal
PA system aligne d to team wor k,or ar e individuals still being assessed on their
individual wor kload? Ar e 360-degr ee appr aisals used?
· Role conflict in that team mem ber s ar e r epor tingto two mana ge r s? Clea r r epor ting
lines betwee n pr oject mana ge r and line mana ge r ?
· It may be wor th getting a facilitator in to look into the r easons why gr oups ar e not
oper ating to their full potential, in case the PMs ar e par t of the pr oblem.
· Tea m-building exe r cise
o Could encour age cohesion and help gr oups to wor k better togethe r
· Per haps gr oupthink has set in?
When individuals adapt their nor ms to those of the gr oups and suspend cr itical
thinking. Sym ptoms of gr oupthink ar e
· Illusions of invulner ability
· Colle ctive r ationalizing
· Mindguar ds
· Illusion of high mor ality and ethics
· Nega tive ster eotypingof the opposition
· Putting pr essur e on dissenter s to ‘ toe the line'
· Self-censor ship
· Illusion of unanimity
Tr y to over come gr oupthink with
· Intr oduce exte r nal expe r ts to the pr oject team s r egula r ly
· Sub-gr oup - Get the opinion of a sub gr oup befor e consulting with the whole
gr oup
· For malise the r ole of cr itical evalua tion of ideas, on a r otating basis,so
nobody feels left out
· Don't let power fulmem ber s dominate - this can be helpe d by separ ating
idea gene r ation fr om evalua tion (br ainstorming)
· Hold a ‘ second-chance' mee ting after impor tant decisions have been made
to give mem ber s a chance to have ‘ second thought'
Gr oupthink is often a pr oblem when gr oups have char ismatic lea der s with high
r efer ent and legitimate power - so the r ole of the PMs needs to r eviewed.
· Cr eate the illusion of a ‘ common enem y'
This can unite the team , as long as they per ceive the thr eat to be mana ge able .

Job Design
Exam s:
Key concepts
Job design is all about getting the job content factor s r ight in ter ms of:
· Skill varie ty (the differ ent skills,tale nts and abilities to do the job)
· Task ide ntity (the complete ness of tasks fr om star t to finish)
· Task significance (the influence on the life of the employee and other people)
· Autono my ( employee fr eedom and discretion to contr olthe wor k)
· Fe e dback (dir ect feedback on the effectiveness of the employee)
· Social oppor tun itie s ( oppor tunity to inter act with other s at wor k and socially)
Addr ess cr itical psychological states of the employee

· Exper ienced mea ningfulness of the wor k
· Exper ienced r esponsibility for wor k outcomes
· Knowledge of r esults fr om wor k activities
Job design pr inciples include

· Horizon tal job loading wher e the wor k can be expa nded by applying
o Job r otation
o Job enla r gem ent
o Cr oss tr aining with other employees
· Ve rtical job loading
o Pr oviding oppor tunities to lea r n new skills
o Giving employees the ability to influence scheduling of wor k
o Designing each job with some unique qualities
o Giving employees contr ol over job r esour ces
o Incr easing per sonal accountability
In pr actical ter ms, ther e ar e a number of obstacles that might stand in the way of
implem enting Job Design pr inciples:
· Technological aspects of a job ar e such that significant change s in Job Design might be
impossible or too expe nsive

· The cost of star ting up and maintaining a Job Design pr ogr amme can be high on an
or ganisational basis.Especially in times of envir onmenta l or or ganisational change , it
may well be that too much effor t has to be put into Job Design to make it effective
· Ther e is a need to take into account the preferences of indiv idual employees to make
Job Design effective. If this is the case, then r esistance to change will be much gr eat er .
In or ganisations that have adopted the pr inciples of involvement, empower m ent and
self-dir ected team s, ther e is a gr eat er likelihood of successfully implem enting a Job
Design pr ogr amme
· Resistance from Managers or Unions. For Job Design to be effective mana ge r s must
be pr epar ed to dele ga te author ity because if this is a pr oblem it can lea d to the failur e
of Job Design pr ogr amme s. Equally,union opposition can poolthe r esistance of indi
vi dual employees and become a major bar r ier to effective change being imple men
ted.

Appraisal Systems
Exam s:
Key concepts
Most common for ms of appr aisal systems ar e

· Absolute standard s (AS)
· Graphic scale s rating syste ms ( GRS)
· Be haviourally anchore d rating syste ms ( BARS)
· Suppor ted by MbO (Mana gem ent by Objectives)
Employee s need to be able to link their day-to-day wor k with company plans. Solution is to
have a cascaded set of goals thr oughout the company hier ar chy fr om top to bottom.This will
give a clea r ‘
line of sight' betwee n jobs and or ganisational objectives.
Mana gem ent by Objectives (MbO) can be used as an input to these systems.
Absolute Standards (AS)

· Have an ‘ all or nothing' featur e ( employee tr ait either pr esent or not)
· Per sonal bias fr om the super visor can become a major issue
· ‘ Halo effect' (r ating an employee based upon the evalua tion of other tr aits)
· Recency error ( super visor r ates the whole year based upon one r ecent event)
· Most AS systems do not have a r equir ement for ongoingfeedback
· Strictness or leniency er r or s
· Similar ity er r or (super visor s r ate own qualities as impor tant)
· For ced r ating (super visor matche s individual r atings with an over all r ating)
Graphic scale s rating sy stems (GRS)

· Most popular sy stem in use
· Numer ical r ating scale ( 1-5, 1-10, etc.)
· Isolates sever al aspects of per sonality and behaviour and ties them to cr iter ia
which ar e mea ningful to both the super visor and employee: cr iter ia possess
content v alidity
· Rating differ entiates betwee n individual employees
· Encour ages tendency to spread employees out along each scale
· Super visors ar e in a much str onger position to assess the str engths and
weaknesses of individuals
· Has validityissues r elate d to strictness,leniency or similarity
· Use of fixed distr ibutions by some or ganisations cr eates inequity pr oblems
· Super visors have a subconscious tendency to use only part of the rating scale
BARS
· Prov ides concrete example s of behaviour s for differ ent levels of per for mance
· Or iginated in BMod: empha sises behaviour s that can be observ ed,learned,
measured
· Ensur e content v alidity thr ough two cycles of ‘
design and check'.
· Each numer ical level of per for mance is a discrete (and defined) behaviour :a
behav ioural anchor. They pr ovide concrete,observ able exa mple s of behaviour s
r elate d to a per for mance dimension.The behaviour s ar e clea r , obser vable, and
employees can lea r n to exhibit the good ones and avoid the bad ones
· Tak es time to dev elop and they do not w ork v ery w ell for jobs that r equir e
creativ ity , intelle ctual curiosity,innovation,and complex problem-solv ing
· Can be link ed to MbO to pr ovide a coher ent or ganisational system
· Emphasises wor k behaviour and gives super visor s and employees sight of
differ ent levels of per for mance in behaviour al ter ms
· Focus is on how the job is done r ather than individual char acter istics
· Design of the system is inher ently par ticipative ( Theory Y perspectiv e)
· A number of systems may need to be cr eated to match job sets pr oducing much
mor e complicated system over all
MbO
· Developed by Pe te r Druck e r
· Or ganisational application of goal-setting theor y
· Establishes clea r organisational goals
· Incr eases wor k motivation and employee per for mance
· Pr ovides clea r expe ctations of what is r equir ed of the employee by the
or ganisation
o One-to-one mee tings with mana ge r s to ensur e that SMART goals ar e set
§ Specific
§ Measur able
§ Achievable
§ Rele vant (also: Resour ce-based)
§ Time-specific
· Impr oves validity of per for mance evalua tion
o Or ganising per iodic formal and informal rev iew sessions so that pr ogr ess
can be monitor ed and cor r ective action put in place
· Requires ongoingreporting of pr ogr ess to mee ting objectives
· Pr ovides a clea r set of data aga inst which to judge per for mance
· Gives individuals clear line-of-sight betwee n their own objectives and those of the
over all or ganisation
o Setting specific outcome criteria to establish when a goal has been deliver ed
· Integr ate s per sonal with or ganisational goals, encour aging people towar ds self-
actualisation
In imple me nting e ithe r MbO or Pe rformance Appraisal it is impor tant that:

· People ar e tr ained ( both at employee and at mana ge r ial level) to oper ate the system
· That neither system dege ner ate s into a less than useful bur eaucr acy
· That both systems should encour age a dialogue betwee n mana ge r s and employees so
that ‘ line of sight' is clea r
· It is impor tant to link developme nt oppor tunities with both so that any deficiencies
can be addr essed in a positive fashion
· Both systems can be linked to r ewar ds ( intr insic and/ or extr insic)
· Both systems can take a long time to develop and implem ent effectively so it is
impor tant to plan to spend that time to achieve a system that fits the or ganisation.

Locus of control
Exam s:
Key concepts
Locus of contr olis either

· Inte rn al
· Exte rnal
Externaliser (exte r nal locus of contr ol)

· Believes that nothing can be done at an individual level
· Low job-r elate d need for achievement
· Look for fulfilment outside the wor k envir onment
· Low instr umentality
· Mor e likely to develop Type B behaviour patter ns, hence they take ever ything a little
bit mor e r elaxed and ar e less ambitious
· Rewar ds allocated by the or ganisation ar e mor e to do with being in the right job and
place in the or ganisation r ather than being linked to individual per for mance or
contr ibution to or ganisational objectives
· Believe that in per for mance appr aisal manage rs hav e fav ourites that get higher
assessme nts, aga in not linked to "r eal" per for mance or contr ibution
· Believe that any one can become an addict to dr ugs or alcohol
· Other people's attitudes cannot be change d thr ough logical discussion
Internaliser ( inter nal locus of contr ol)

· See s that their life and car eer ar e in their own hands
· Have a high need for achievement
· Instr umentality is high
· Willing to exe r t substantial effor t to achieve their goals
· Mor e likely to get fr ustrated if they can't develop their skills
· Mor e equity-sensitive
· Believe that rew ard is an expe cted outcome r esulting fr om har d wor k,achievement
and a r esult of taking initiative
· Good per for mance appr aisal results from hard w ork and positive contr ibution to the
or ganisation
· Believe that addiction is a r esult of individuals giving up contr ol
· Logic can change attitudes in other s

Behaviour modification (BMod)

Exam s:
Key concepts
· Rooted in the wor k of Pr ofessor B. F.Skinner
· Place s the envir onment fr ont and centr e in motivation
· De-em phasises the r ole of the individual in the motivation pr ocess
· State s that exte r nal or envir onmenta l consequences deter mine behaviour
Main pr inciples of BMod ar e the four contingencies of reinforcement :

· Positive re inforce me nt
Beha viour is str engthene d by the occur rence of plea sant consequences
Exam ple : Employee r eceives a bonus for a job well done
· Ne gative re inforce me nt
Beha viour is str engthene d by r emoval of an unplea sant consequence
Exam ple : Employee s come to wor k on time to avoid super visor y r epr imands
· Extinction
Beha viour is weakene d if a positive consequence does not follow
Exam ple : Employee enga ge s in distr acting conver sations with his fellow wor ker s.
They r espond by ignor ing him.
· Punishme nt
Beha viour is weakene d if an unplea sant consequence occur s after the behaviour
Exam ple : In a team mee ting an employee is caught playing hear ts on his laptop by his
super visor .The super ior singles out the car d player and makes an exa mple of him
befor e the entir e gr oup.
Schedules of r einforcement
· Fixe d ratio
o A fixed number of behaviour s must occur befor e r einforcement occur s
· Variable ratio
o Var iable number of behaviour s (ar ound some aver age number ) must occur
befor e r einforcement
· Fixe d Inte rval
o After a given amount of time has ela psed, r einforcement occur s
· Variable Inte rval
o After a var iable amount of time ( var ying ar ound an aver age time) has
ela psed, r einforcement occur s
Pr os and cons of BMod

· Pr os
o Focuses on observ able behav iour instead of intangible individual differ ences
o No manipula tion occur s when employ ees participate in the behaviour
modification
o Impr oves employee instr umentalities
o Employee s r eceive higher quality feedback about their per for mance
· Cons
o Undermines employ ee respect and dignity
o Makes or ganisations mor e manipula tive and exploitative
o Makes employees dull and dehumanised exte nsions of the machines or systems
they oper ate
o Over simplifies wor k behaviour and er odes employee cr eativity
Stretching the ratio or inter valof r einforcement r efer s to shifting a r einforcement schedule
fr om one r ate to another . At first r ewar ds ar e appr eciated by employees.If they continue to
occur too often they can lose their mea ningfulness. Potency can be maintained by str etching
the r atio or inter val of r einforcement . As a r ule, financial r ewar ds should not be administer ed
thr ough str etching r einforcement schedules because employees expe r ience such a manoe uvr e
as a cynical and tr anspar ent ploy.

Motivation theories
Exam s:
Key concepts
· Two categor ies of motivation theor ies
· Cognitive theor ies
Posit that behaviour is a function of inter nal needs and motives
o Conte n t the orie s
Specify those human needs which activate behaviour s aimed at need
reduction. Answer the question: ‘What specific needs cause motivation?'
§ Abr aham Maslow 's Hier ar chy of Needs
§ Fr eder ick Herzberg's ‘Two-Factor ' theor y
o Proce ss the orie s
Inject the impor tance of human perceptions of env ironments in explaining
motivation. Expla in how behaviour is stimulate d, dir ected, sustained,or
stopped
§ Equity theory
§ Expectancy theory
· Beha viour al theor ies
State that exte r nal or envir onmenta l consequences deter mine behaviour
o Be haviour modification ( BMod)
o See separate topic on this!
· Locus of contr ol
o Inter nal
o Exter na l
o See separate topic on this!
· Socially acquir ed needs
o Need for Achieveme nt
o Need for Affiliation
o Need for Power
· Values
o Ter minal values
o Instr umental values
Abraham Maslow 's Hierarchy of Needs

Maslow sugge sts that one moves up thr ough the levels over time and only when the pr evious
need has been satisfied - the stage s ar e:
· Physiological
o Mee t human basic needs of shelte r , war mth, food and r epr oduction (sex) . In
developed countr ies the absence of the basic needs being satisfied is r ar e.
· Safe ty and Se curity
o Need to feel safe, pr ovide safety for loved ones thr ough things like life
assur ance, health plans etc.
· Be longing

o First of the higher order needs that ar e mor e cognitive.This r elate s to our
socialisation r equir ements and sense that we play a r ole in our families,
communities etc.
· Se lf-e ste e m
o Need to feel r ecognised, appr eciated and that one is an expe r t in the chosen
field. Often this is developed as one pr ogr esses to mid-high levels in an
or ganisation.
· Se lf-actualisation
o Need to feel like one has done one's best, has a lasting legacy and has
r eached full potential. Per haps difficult to fully achieve as it is infinite in its
ver y natur e.
The lower needs ‘

pull' a per son in its motivation and the higher needs ‘
push' one on to gr eat er
things.
Frederick Herzberg's ‘
Tw o-Factor' theory
· Hygiene factor s
· Motivators
Hy giene factors
Similar to lower or der needs in Maslow's theor y
Include basic factor s such as pay, wor king conditions
Motiv ators
Things in the job that plea se the individual and satisfy psychological or intr insic needs
· Job content
· Challenges
· Skill var iety
· Method of super vision
· Incentive scheme s
Her zber g expa nds his theor y to include a link to job satisfaction:
· Pr ovision of hygiene factor s ensur es people ar e not dissatisfied
· Existence of motivator s is what pushes people into the ter r itory of having job
satisfaction
Equity theory
Ver y individual! What the mana ge r thinks is going on when it comes to r ewar ds is much less
impor tant than how employees per ceive r ewar ds and their distr ibution.
___Employee 's r ewar ds compar ed to Other 's r ewar ds_____

Employee 's inputs Other 's inputs (effor ts)
Suggests that people per for m based upon how equitable they feel their r ewar ds ar e compar ed
to other s.If they feel positive (well r ewar ded) then they may impr ove per for mance. If they feel
nega tive equity then they ar e likely to r educe per for mance or change the co-wor ker
compar ison or r educe the per for mance of other s to r each par ity.

When employees expe rience fairness they r espond with mor e motivation, and they expe r ience
mor e satisfaction. If employees expe rience negativ e inequity their motivation and satisfaction
vanish, they become distr ustful of mana ge ment 's motives ( mor e wor k for less pay), and they
gr ow suspicious of their co-wor ker s.
"Equity pr inciples"
· When highly valued r ewar ds ar e allocated, equity sensitivities will make social
compar isons that ar e based on the firm's tr aditional method for allocating them: they
want to ‘ stick to the old sy stem'
· Cer tain employees will feel both positive and nega tive inequity (entitleds and
benevolents)
· Tell employees in adv ance about sala r y r anges, pay incr eases and pr omotion
oppor tunities
· Av oid secrecy about pay policies and pr ocedur es
Not fully tr anspar ent but make sur e employees fully under stand pay r anges, pay
br ackets and the r elationship betwee n high per for mance and significant r ewar ds
Expectancy theory
Expecta ncy theor y pr oposes that the individual exte nds effor ts in the expe ctancy that this will
r esult in a first-lev el outcome such as good per for mance on the job. Instrumentality is the per
sonal belief (expe ctation) that first-level outcomes lea d to second-lev el outcomes that the indi
vidual values ( outcomes that have a positive v alence ) such as pr omotion,tr ansfer ,
r ecognition, pay r ise,tr aining.Negativ e instrumentality r efer s to the employee belief that a
second-level outcome will not occur after a given first-level outcome.
Expecta ncy theor y also includes wor kplace factor s that affect effor t - these include most of the
hygiene ele me nts of Her zber g's model.
Socially acquired needs
Need for Achiev eme nt

People with a high need for achievement exhibit high levels of ener gy and focus to ear n r e
war ds and r ecognition and need challenging goals, str uctur e and constant feedback. They ar e
vital in an or ganisation to dr ive per for mance. Entr epr eneur s have this tr ait.
Need for Affiliation

People with this need r equir e social contact at wor k,like cohesiveness and har mony,and
gr oup wor king. They exce l at liaison r oles and conflict r esolution tasks.
Need for Pow er

Subdivided into:
· Pe rsonalise d powe r
People with a need for per sonalised power ar e a destructive force as they place
their needs and goals ahea d of those of the or ganisation.They cr eate conflict,often
display ‘high Mach( iavallien)' tendencies (the manipula tion of other s to achieve
own ends), can display a lack of r espect for author ity,enga ge in wor kplace bullying
and even have a tendency towar ds alcohol and substance abuse.
· Social powe r
People with a socialised need for power tend to be successful in or ganizations.
They use their skills, power and tr ust in other s to dr ive per for mance. They like to
assume and awar d r esponsibility and ar e sophisticated politicaloper ator s within
the or ganisation.These people will be identified, empower e d and pr omoted.
Terminal v alues
Ter minal values ar e end states that ar e deem ed as ‘
r ight' for the per son, such as happiness,
honesty,and family focus.
Instrumental v alues
Instr umental values ar e the means employed to achieve the end state for the ter minal values.
How to motivate inter naliser s and exte r naliser s?

Inter naliser s
· Pr ovide oppor tunities to develop skills
· Rewar d based on per for mance and skills
· Ver tically load the job ( e.g. mor e r esponsibility, autonomy)
· Use an MBO per for mance appr aisal appr oach to incr ease "line of sight"
Exter na liser s
· Discuss per sonal needs/ wants/ views/ beliefs to better under stand his tr aits
· Expla in the per for mance appr aisal system of the company
· Use an MBO per for mance appr aisal appr oach to give oppor tunity to par ticipate in the
goal-setting
· Show oppor tunities to gr ow and develop within the company

Reward systems
Exam s:
Ke y conce p ts
· Rewar ds can be intrinsic or e xtrinsic
· Individual or group based r ewar d systems
Intrin sic re wards ar e those that employees associate with the job itself:
· Incr easing levels of par ticipation in decision making
· Being personally responsible for a mea ningful par t of wor k
· Incr easing the var iety of wor k associated with a job
· Oppor tunity for per sonal gr owth thr ough job and or ganisational design
Extrinsic re wards ar e given to employees after the completion of ele me nts of wor k:
· Direct compensation
o Salar y as a basic building block
o Enhanced thr ough bonuses,holiday pay, shar e options and pensions
· Indirect compensation
o Top exe cutive per sonal pr otection pr ogr amme s
o Low inter est loans
o Per sonal ser vices
o Job pr otection
· Non-financial r ewar ds
o Office fur nitur e
o Par king space
o Status symbols
o Public or pr ivate ‘thank-you' for a job well done
Possible r ewar d systems need to:

· Link r ewar d to per for mance
Linking the pay system to Performance Appraisal and/ or MbO
· Link r ewar d to effor t
In the hope that effor t will lea d to higher per for mance
· Rewar d people equitably
Pay ing people the same , linked to the their position in the or ganisation
· Link to mar ket value of the or ganisation
Used for senior exe cutives
Group based rew ard sy stems ar e especially impor tant in an or ganisation that has a focus on
the deliver y of wor k via team s
· Cost-saving/ gain-shar ing (Scanlon Plan)
Focus r ewar d mor e effectively on specific wor k gr oups and their output
· Pr ofit-shar ing (Rucker Plan)
Tend to be oper ated on an acr oss the or ganisation basis
Scanlon Plan
· Developed by Pr ofessor Scanlon in 1937
· Called gain-shar ing plan
o Gains fr om cost savings ar e shar ed betwee n company owner s and labour
· Power ful Theor y Ytool
· First systematic cost-savings, gr oup-based r ewar d system
· Tar ge ts labour costs and tr ies to reduce them in r elation to a historical aver age or
base level
· Wor k gr oups that succeed at this r eceive bonuses that reflect a substantial portion of
the labour cost savings
· Using inter locking committee s acr oss levels in the chain of comma nd
o A company may have sev eral hundred production committee s that ar e
char ged with finding ways to impr ove pr oductivity in their ar eas of wor k
r esponsibility
o Pr oductivity sugge stions made by committee s ar e rev iew ed by a scr eening
committee composed of mana ge r s, higher -level exe cutives,and skilled
labour er s
· Raises employ ee satisfaction,adds intrinsic rew ards,reduces turnover and improves
line-of-sight
Pr er equisites for a successful implem enta tion of a Scanlon plan:

· Require a dependa ble history of labour costs in the firm
· Sea sonal pr oduct dema nd destabilises a gain-shar ing pr ogr amme
· Extr a output must be able to be sold at pr ofitable mar gins
· Requires a history of labour -mana ge me nt cooper ation so that labour and mana ge
ment judge the cost for mulae to be valid and r eliable (Theor y Ycommu ni cations
and mana ge ment )
· Commitme nt fr om top mana ge ment to cost savings by suppor ting employee edu
cation,cr oss tr aining and par ticipation
Ruck er Plan
· Incentive Syste m that wor ks in a Self-Directed Tea m (SDT) envir onment
· Pr ofit-shar ing plan
· Mea sur es the differ ence betwee n the sale s income fr om goods pr oduced and the cost
of the mate r ials, supplies,and outside ser vices consumed in the pr oduction and deli
ver y of that output
· Sets a labour cost standar d in a base per iod
· Deter mines labour 's contr ibution to economic sur plus
· Less for mal because it does not r ely on any committee str uctur e
· Absence of a committee str uctur e shor tens the cycle time for evalua ting and
installing pr oductivity impr oveme nt sugge stions
Why do Self-Directed Tea ms par ticipate in a Rucker Plan?

· Cr eate s line of sight for team mem ber s
· Tea ms can r aise the sale s value of pr oduction by impr ovingpr oduct designs and pr o
cess effectiveness (fewer defects and fewer war r anty claims)
· Can use concur rent pr oduct developme nt to synchronise mar keting, pr oduction,
financial contr ol,pr oduct enginee r ing and R&D to shor ten pr oduct developme nt
cycles
· These cost-control tools can push the firm ahea d of its r ivals in the battle for mar ket
shar e, higher gr oss mar gins and lower unit costs

· All expe nditur es on mate r ials,supplies and outside ser vices ar e subject to r eview and
contr ol
· Pr oductivity innovations made by specialists in pur chasing, distr ibution,war e
housing, inventor y contr ol,and accounts contr ol (payables and r eceivables) all r aise
the economic value added by lower ing the cost of mate r ials
· Firm ther efor e competes on pr ice mor e effectively than its r ivals and this incr eases
mar ket shar e
Movingtowar ds a blend of r ewar ding per for mance thr ough a mixtur e of r ewar ds based upon
cor e pay but suppleme nted thr ough:
· Cafete r ia-style benefits
Employee and employer agr ee a mix of var ious r ewar ds that apply to the individual
· Bonuses
· Accumulating time off
· Linking pay to incr easing skills
Extr a pay for havingcomplete d an MBA
A r ewar d systems needs to:

· Equitable
Equity theor y is impor tant as it links employee perceptions of their relativ e rew ard
to effor t and the motivation to contr ibute
· Capture the attention of employees
Designing the system with employee involvement can help in this
· Be understandable to employees
· Improv e communication thr ough people under standing how their effor ts link to the
deliver y of or ganisational outcomes
· Deliver r ewar d that has been ear ned in a timely fashion and w ithhold rew ard when it
has not been ear ned
· Link to better organisational performance
· Be compatible w ith company culture
An or ganisation that empha sises team wor k cannot deliver r ewar ds effectively
thr ough a pur ely individualistic system

Job Satisfaction
Exam s
Key concepts
Job Satisfaction is a pivotal constr uct that includes

· Face ts of work
· Re wards ( e xtrinsic and intrinsic)
· Attitud e s of fe llow worke rs
· Supe rvision
· Promotion
Individual deter minants ar e

· Year s in car eer
Incr eases with time after an initial dip ( 6 to 24 months into the car eer )
· Car eer expe ctations
Relationship betwee n per for mance and job satisfaction:
Or ganisational deter minants ar e

· Super vision
· Job challenge
· Job clar ity
· Incentives
How to incr ease Job Satisfaction?

· Communicating clea r ly how people can achieve pr omotion with a possible r efocusing
on job enla r gem ent or involvingadditional job challenge thr ough alte r native
pr ogr ession str uctur es like car eer change s.
· Car eful design of r ewar ds systems to ensur e that these ar e being per ceived as
equitable alongside a wider under standing that r ewar ds need not alwa ys be about
money ar e impor tant.
· Thr ough downsizing and de-la yer ing, the r ole of super vision is likely to have change d
especially if self-dir ected team s have been intr oduced and the consequences of this
need to be clea r ly communicated to staff,possibly thr ough tr aining.

Organisational Commitment
Exam s
Key concepts
Or ganisational Commitme nt is about

· Employee s buying into or ganisational objectives
· A willingness to exe r t consider able effor t on behalf of the company
· A desir e to r emain par t of the or ganisation
Employee s with Or ganisational Commitme nt will be amba ssador s for the or ganisation and
defend its r epu tation.OC is differ ent fr om Job Satisfaction because it involves a w ider
perspectiv e going bey ond the job to the whole or ganisation.
Or ganisational commitme nt develops slowly and consistently over time ( in contr ast to job
satisfaction which change s in shor ter time per iods). People who expe r ience car eer pr ogr ess in
a par ticular or ganisation eventually exhibit or ganisational commitme nt in their wor k.Chr onic
‘job hopper s' ar e not ar ound long enough for commitme nt to develop.
Dur ingeconomic downtur ns shar eholder s alwa ys dema nd that mana ge ment r etur n firms to
pr ofitability by dow nsizing. Mana ger s and exe cutives comply and employees' organisational
commitme nt plumm ets and good ser vice for the firms' clients goes out the window!
For Or ganisational Commitme nt (and Job Involvement) mana ge r s need to

· Demonstr ate that they car e for employees
· Cr eate oppor tunities for people to achieve per sonal goals
· Modify jobs thr ough job design and enla r gem ent to incr ease oppor tunities for
intr insic r ewar ds
· Find ways to r ewar d people r egula r ly and equitably
· Set both or ganisational and per sonal developme nt goals that ar e mea ningful to
employees

Job Involvement
Exam s
Key concepts
Job Involvement is
· About how much an employee identifies with his/ her job
· About active par ticipation in the job
· A key ele me nt of how the individual identifies their self-wor th.
Job Involvement is less at r iskfr om the effects of downsizing/ de-layer ing because the attitude
is tied to the indiv idual job r ather than or ganisational factor s. Job involvement is a centr al
component of an employee's satisfaction with life.Job involvement str engthens an employee's
desir e to be physically and psychologically embe dded in their wor k.
For Job Involvement (and Or ganisational Commitme nt) mana ge r s need to

· Demonstr ate that they car e for employees
· Cr eate oppor tunities for people to achieve per sonal goals
· Modify jobs thr ough job design and enla r gem ent to incr ease oppor tunities for
intr insic r ewar ds
· Find ways to r ewar d people r egula r ly and equitably
· Set both or ganisational and per sonal developme nt goals that ar e mea ningful to
employees

Conflict
Exam s:
Key concepts
· Avoiding conflict
· Accommodatin g
· Forcing
· Compromising
· Collaboration
Conflict is par t of the team buildingpr ocess. Conflict in the stor mingphase is expe cted and
necessar y so that team mem ber s become accepting of their own r oles within the team and buy
-in to supr a-or dinate goals for the team .
Av oiding conflict
Appr opr iate when the conflict is trivial and ther e is no chance of change , or when dealing with
the conflict would be too disruptive ,or when ther e is a need for a breathing space, or when
gathe ring information is mor e impor tant than immediate action.
Accommodating
Letting other s have their way.Adopt accommoda tion if you believe that winning a par ticular
battle may mea n losing the entir e war : survive to fight another day .
Forcing
This r efer s to using power ,coer cion or pr essur e to impose a solution through intimidation.
Compromising
Reaching a mutually acceptable solution.
Collaboration
Involves par ticipation of the par ties involved in the conflict reaching mutual commitme nt to a
solution that will pr ovide a permane nt solution to the pr oblem.

Intrapreneurship
Exam s:
Ke y conce p ts
Entr epr eneur s
· Tend to be tenacious and mak e sacrifices in their family life and standar d of living to
cr eate and r un with a new idea
· Ar e achiev ement driven and r etain the dr ive to succeed even in the face of failur e
· Have a clear v ision of an idea and ar e able to explain it to other s
· Tak e responsibility for success,failur e and pr oblem solving
· Catch things that other people miss and appreciate new ideas
· Feel that they are in control of their destiny and can cope with a high degr ee of
uncer tainty
· Take calculated r isks and handle failure as a tempor ar y phenomenon
How to foster Intr apr eneur ship

· Empower employees thr ough effective dele ga tion of author ity
· Requires that employees expe r ience mea ningfulness in their wor k,have
r esponsibility for wor k outcomes and have knowledge of the wor k r esults
· Effective dele ga tion thr ough a flat or ganisational str uctur e in which mana ge r s ar e
pr epar ed to give up power and r esponsibility to empower e d staff
· Ensur e that the or ganisational r ewar d system is aligne d to the new ways of wor king
· Pr otect innovation team s fr om outside inter fer ence (r ing-fencing)
· Idea gene r ation and idea evalua tion must be separ ate (br ain-storming)
Str uctur e
· Ide as champion s
Gene r ate ideas and r etain owner ship for its developme nt
· Sponsors
Pr ovide suppor t and apply or ganisational r esour ces
· Godfathe rs
Help over come inter nal, political bar r ier s to innovation

Power
Exam s:
Ke y conce p ts
Power is
· The ability to influence people
· One of the thr ee major socially acquir ed needs
o Need for Power
o Need for Achieveme nt
o Need for Affiliation
Power is manifested in either

· Personalised for m
o Cr eate s disruptive wor k r elations
o Displays favouritism and nepotism
o Cr eate s distr ust and low employee confidence in goal-setting, Per for mance
Appr aisal and compensation
Demonstr ated by highly Machiavellian per sonalities.Can be seen as a nega tive
attr ibute for or ganisational goals
· Socialised for m
o Motivates his subor dinates by expr essing confidence in their abilities
o Dele gat es author ity
o Acknowledges success with r ecognition and pr aise
This for m is seen as being mor e positive thr ough the impact it has on team s and the
over all or ganisation
Ther e ar e five source s of powe r:

· Associated with your position in the or ganisation
o Re ward powe r
Being in the position to rew ard people for appr opr iate behaviour s or
deliver y of objectives
o Coe rcive powe r
Capability of pr oviding negativ e outcomes to someone not displaying the
r equir ed behaviour s or deliver ingon their objectives
o Le gitimate powe r
Comes with your position in the or ganisation and the r esponsibilities you
have been given - i.e.who you can legitimately give ‘ or der s' to
· Associated with the individual
o Re fe re nt powe r
Comes fr om how you ar e r espected or liked in the or ganisation.Usually
mea ns that you ar e per ceived to be a role model
o Expe rt powe r
Comes fr om a r ecognition that you have a par ticular specialised expe rtise
that the or ganisation value
How to use the sour ces of power available to you:

· Build an image of success thr ough communication of those successes within the
or ganisation
· Cr eating an obligation in others by doing favours that can be r etur ned in futur e
· Identify w ith pow erful people in the or ganisation
· Give exce lle nt performance ,doing an exce lle nt job,volunteer for har d tasks
· Limit access to information - ‘ infor mation is power '
· Control supplies and budgets - especially when these ar e concentr ated
· Dev elop a netw ork that will pr ovide you with or ganisational suppor t
· Reorganise the job to take on mor e r esponsibilities
· Tak e risks and be creativ e. Or ganisations accept occasional failur e if bala nced by
successes
· Be a k now ledge w ork er and build expe rtise
· Manage the rules of the organisation for the benefit of the or ganisation - not
following r ules blindly that lea d to potential loss
· Control personnel and finance decisions
· Manage y our boss
Fr om a pr actical point of view it is impor tant to r ecognise that:

· Power can only be wielded in the context of a relationship which other people
depend on in some way and has no meaning outside that context
· Individuals can learn to use pow er effectively
· Power can flow in any direction in an or ganisation (don't alwa ys look up in ter ms of
power r elationships)
· Ther e ar e issues ar ound the ethical use of pow er,especially on the impact of wielding
power upon the inter ests of or ganisational stakeholder s
· Take car e in usingpower to play politics especially in the links betwee n mana ge ment
appr oval and disappr oval compar ed to r esults being accepta ble or unaccepta ble

Politics
Exam s:
Key concepts
Mana ger s play politics because they ar e
· Ambitious
· Resentful
· Insecur e ( fear ful)
· Dissatisfied
· Ar rogant
Following Pr ofessor Mintzber g's guidelines ther e ar e four possibilities that all have the
potential to change the firm's dir ection:
· Whistle -blowing
Occur s when an individual believes the or ganisation is v iolating his instrumental or
terminal v alues, or the law. Bypasses the chain of command and the C-class
exe cutives ar e usually infuriated when they discover it.Whistle-blower s usually hav e
high ethical standards and can appea r anywher e in the firm
· Line ve rsus staff conflict
Refer s to the inher ent disputes which must ar ise when staff units ar e cr eated in the
or ganisation.Insecur e line mana ge r s may fear or resent staff expe r ts.Staff expe r ts
may think that line mana ge r s ar e too timid or per haps too arrogant and impulsive.
· Sponsorsh ip and coalition-building ( building powe r base s)
Gain favour for an individual if he is able to attach himself to a pow erful indiv idual or
group. The ambitious employee is constr ained only by stay ing loy al to his sponsoror
group, giving his sponsor or gr oup cr edit for outcomes and show ing gratitude at the
appr opr iate times.
· Re sist authorit y throu gh insurge ncy
Extrem ely popular in firms! ‘ Follow the lette r of the law ' , inter pr et and enfor ce
policies in a manne r unintended by mana ge ment . Har d to document and cor r ect
Its widespr ea d pr actice indicates a deterioration of organisational culture which
should disturb mana ge ment and lea d to the constr uctive exa mination of possible
inter nal causes for such behaviour

Leadership theories
Exam s:
Key concepts
· Trait The ory
o Focuses on the character of the leader and ignor es subor dinates or the
lea der ship envir onment
· Be havioural The ory
o Beha viour al theor y states that ther e is a pr efer r ed lea der ship appr oach
fr om the subordinate point of v iew
o Two fundamenta l lea der behaviour s
§ Initiating str uctur e
§ Consider ation
· Contin ge ncy The ory
o Developed by Pr ofessor Fiedler
o Contingency theor y states that ther e is a pr efer r ed mana ge ment style
depending on the w ork situation
· Path-Goal The ory
o Developed by Pr ofessor House
o Path-Goa l theor y focuses on guiding employees thr ough the way fr om input
- 1st level outcomes - 2nd level outcomes (expe ctancy theor y) and is closely
r elate d to goal-setting theor ies
o Beha viour ally anchor ed; can be followed thr ough via trainingand
dev elopme nt
· Encour aging intr apr eneur ial behaviour
· OB Mod
Trait Theory
Focuses on the character of the leader and ignor es subor dinates or the lea der ship envir onment
Behav ioural Theory

State s that ther e is a pr efer r ed lea der ship appr oach fr om the subordinate point of v iew . Two
possible behaviour s,initiating structure or consideration:
Initiating str uctur e behaviour s ar e

· Wor k pr ocedur es
· Planning, assigning tasks
· Clar ifying wor k r oles
· Super vising subor dinates
· Asking for r esults
Consider ation behaviour s ar e

· Appr oachability
· Suppor tiveness
· Maintena nce of high mor ale in the wor k gr oup
· Concer n for gr oup welfar e
· Maintena nce of a collabor ative wor k atmospher e
Contingency Theory
Pr oposes that lea der behaviour inter acts with the favourable ness of the situation to influence
gr oup per for mance. Some situations ar e mor e or less favourable and they r equir e differ ent
lea der behaviour s.
Components
1. Per sonal or ientation towar d his ‘
lea st pr efer r ed co-wor ker '
· Relationship or iented or
· Task or iented
2. Situational favourable ness
Path-Goal Theory
Leader s must be flexible and analytical to chooses the cor r ect behaviour to move subor dinates
along the sequence of effor t-to-per for mance and per for mance -to-r ewar d (expe ctancy
theor y). In the PGtheor y he has four choices:
1. Dire ctive be haviours which ar e planning, setting per for mance standar ds, clar ifying
wor k expe ctations and giving instr uctions
2. Support ive be haviours which ar e consider ation, gr atitude, empa thy, and
compassion
3. Participative be haviours such as using subor dinates' ideas in pr oblem-solving
4. Achie ve me nt-orie nte d be haviours r efer to dele ga tion of author ity and setting tasks
that enhance employees' skillsets.
The path-goal theor y focuses on two aspects of the lea der ship situation.First, it looks at the
subor dinates' task abilities and need for achievement . Second, it looks at the envir onmenta l
factor s of task clar ity,r outineness and challenge . The lea der must then match his behaviour to
the inter play of subor dinate char acter istics and envir onmenta l factor s.
Encouraging intrapreneurial behav iour

Encour aging intr apr eneur ship involves using key player s in the or ganisation to be idea
champions, sponsors, and godfathers .In addition,the or ganisation might use greenhouses to
encour age gr oup gene r ation of ideas. The people involved in such activities will be seen as role
models for the change s the or ganisation wants to implem ent. ( Also see the topic on
Intrapreneurship) .
OB Mod
Take the appr oach of r ewar ding and/ or punishing the behaviour of subor dinates thus giving a
clea r lea d on what behaviour s wer e being valued by the or ganisation,thr ough the Leader .

Stress / Stressors
Exam s:
Key concepts
· Gene r al Adaptation Syndr ome
o Alarm
o Re sistance
o Exhaustion
Causes of str ess
· Envir onmental factor s
o Economic uncer tainty
o Political uncer tainty
o Technological uncer tainty
· Or ganisational factor s
o Task dema nds
o Role dema nds
o Inter per sonal dema nds
o Or ganisational str uctur e
o Or ganisational lea der ship
o Or ganisation's life-cycle stage
· Individual factor s
o Family pr oblems
o Financial pr oblems
Individual differ ences

· Per ception
· Job expe r ience
· Locus of contr ol
· Type A behaviour
Consequences of str ess

· Physiological symptoms
o Heada ches
o High blood pr essur e
o Hear t disease
· Psychological symptoms
o Sle ep disturbance
o Depr ession, anxiety
o Declines in job satisfaction
· Beha viour al symptoms
o Pr oductivity level
o Attendance patter n
o Quitting the job
o Accidents
o Substance abuse
Str ess/ pe r formance r elationship

How to r educe str ess

· Reduce span of contr ol
· Take a mor e car ing attitude to mana ging this individual
· Offer suppor t thr ough the or ganisational Employee Assistance Pr ogr amm e ( EAP) (if
one exists)
· Changing exe r cise r egime
· Facilitating a r elaxation pr ogr amme
· Or ganising dietar y assistance
· Helping the individual to open up either with wor k place collea gue s
· Pr ovide pr ofessional counselling
· Or ganisational r esponses
o Rewar d per for mance and pr oductivity,not visible time spent at wor k
o Cr eate a cultur e wher e people feel they can live accor dingtheir own values
and encour age other s to do the same
o Build r espect and tr ust in the or ganisation so that people ar e mor e
comfor table in being open about pr oblems they ar e facing befor e they
become chr onic
· For implem enting solutions
o Discuss and agree them with the individual
o Briefing colleague s on any change s is impor tant if solutions impact dir ectly
upon them. Under standing why change s ar e being made can mana ge any
felt inequity

Topic history
Decem ber 2010
1. Job Satisfaction, Or ganisational Commitme nt and Job Involvement
2. Conflict
3. Intr apr eneur ship
June 2010
1. Power
2. Job design
3. Rewar d systems
Decem ber 2009

1. Motivation theor ies, Job Satisfaction
2. Appr aisal systems,MbO, Leader ship theor ies
3. Or ganisational Design, Change Mana gem ent
June 2009
1. Locus of contr ol, Motivation theor ies, Leader ship theor ies
2. Or ganisational Design, Change Mana gem ent
3. Tea m building,team per for mance
Decem ber 2008

1. Job design, Job Satisfaction
2. Appr aisal systems
3. Power
June 2008
1. Or ganisational cultur e ,Change Mana gem ent
2. Motivation theor ies
3. Rewar d systems
Decem ber 2007

1. Or ganisational cultur e
2. Rewar d systems
3. Str ess
June 2007
1. Motivation theor ies
2. Appr aisal systems
3. Leader ship theor ies
Decem ber 2006

1. Power
2. Job Satisfaction
3. Self Dir ected Tea ms, Tea m building, team per for mance
June 2006
1. Job design
2. Power , Politics
3. Tea m building,team per for mance

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Organisational Behaviour Topic Summary

Table of conte nts

Organis ational Des ign 3

Organisational Behaviour Topic Summary

Depar tme ntalisation in OD

Organisational Behaviour Topic Summary

Dela yer ing

Organisational Behaviour Topic Summary

The Planne d Change Pr ocess (PC)

Organisational Behaviour Topic Summary

Organisational Behaviour Topic Summary

Multiple Cultures in Organisations

The firm's cultur e depends on two things

The Chief Executiv e or Founder's Role

Dev eloping Adaptive Organisational Cultures

Organisational Behaviour Topic Summary

Team building, team performance

Te am de ve lopme nt stage s (accor ding to Tuck man 's model)

Organisational Behaviour Topic Summary

Addr ess cr itical psychological states of the employee

Job design pr inciples include

Organisational Behaviour Topic Summary

Organisational Behaviour Topic Summary

Most common for ms of appr aisal systems ar e

· Suppor ted by MbO (Mana gem ent by Objectives)

Absolute Standards (AS)

Graphic scale s rating sy stems (GRS)

In imple me nting e ithe r MbO or Pe rformance Appraisal it is impor tant that:

Organisational Behaviour Topic Summary

Locus of contr olis either

Externaliser (exte r nal locus of contr ol)

Internaliser ( inter nal locus of contr ol)

Organisational Behaviour Topic Summary

Behaviour modification (BMod)

Main pr inciples of BMod ar e the four contingencies of reinforcement :

Pr os and cons of BMod

Organisational Behaviour Topic Summary

Abraham Maslow 's Hierarchy of Needs

Organisational Behaviour Topic Summary

The lower needs ‘

___Employee 's r ewar ds compar ed to Other 's r ewar ds_____

Organisational Behaviour Topic Summary

Socially acquired needs

Need for Achiev eme nt

Need for Affiliation

Need for Pow er

How to motivate inter naliser s and exte r naliser s?

Organisational Behaviour Topic Summary

Possible r ewar d systems need to:

Pr er equisites for a successful implem enta tion of a Scanlon plan:

Why do Self-Directed Tea ms par ticipate in a Rucker Plan?

Organisational Behaviour Topic Summary

A r ewar d systems needs to:

Organisational Behaviour Topic Summary

Job Satisfaction is a pivotal constr uct that includes

Individual deter minants ar e

Relationship betwee n per for mance and job satisfaction:

Or ganisational deter minants ar e

How to incr ease Job Satisfaction?

Organisational Behaviour Topic Summary

Or ganisational Commitme nt is about

_Employee 's r ewar ds compar ed to Other 's r ewar ds___