Professional Documents
Culture Documents
OB & HRM Notes 20 - 21
OB & HRM Notes 20 - 21
Work:
● POOLED – simple process, where work is done independently by different people
● SEQUENTIAL – more complex, work is passed between departments in a linear
fashion
● RECIPROCAL – most complex, all people working on the same thing @ same time
Organisations are complex systems with interconnections and interdependence between the
different parts. The congruence model is a tool that helps us consider how the different
parts of an organisation come together. It presents a useful framework for identifying and
addressing opportunity and performance gaps that may stand in the way of optimal
organisational performance.
● Opportunity gaps – misalignment between environment and organisations strategy
o Can be addressed by designing strategy to exploit opportunities
● Performance gaps – misalignment between strategy and realised output
The alignment of work processes, culture, people and structure is critical for maximum
performance. Any change in one element is likely to offset the balance in another element.
The congruence model can be used for self-evaluation.
Self-monitoring: the extent to which you are aware of the way other people see you. It is a
personality trait that refers to an ability to regulate behaviour to accommodate social
situations. It is highly correlated with successful managers and higher emotional instability.
Pre-reading: Putting Your Whole Company’s Brain to Work (Leonard & Straus)
Managers who dislike conflict or who value only their own approach often fall victim to the
comfortable clone syndrome, surrounding themselves with people who think alike and who
share similar interests and training.
Cognitive differences are varying approaches to perceiving and assimilating data, making
decisions, solving problems, and relating to other people. These are preferences and can be
a choice.
● Left brained thinking = analytical, logical and sequential approach to problems
● Right brained thinking = intuitive, values-based and non linear approach
Creative abrasion is the productive result of those with different perspectives working
together. To achieve creative abrasion you must:
TO INNOVATE SUCCESSFULLY, YOU MUST HIRE, WORK WITH, AND PROMOTE PEOPLE WHO
ARE UNLIKE YOU.
e.g. when students are praised for intelligence they move towards a fixed theory, but when
they are praised for their thinking process they take a more malleable theory
Conclusion – When beliefs can be changed then personality can change too! [ADAPTIVE
FUNCTIONING]
Definition: Personality is the relatively stable way of thinking, feeling, and acting that make a
person unique. It is often determined by genetics and environment.
Your personality does not change over time as it is a preference for how you understand and
interact with information
Locus of control: the degree to which people believe they have control over the outcomes of
events in their lives, as opposed to external forces beyond their control.
Internal: people who base their success on their own work
External: people who attribute their success/failure on external influences
Personality in theory: 3 approaches
Factors are stable over long periods but are also malleable. They may be heritable and
culturally universal. These factors are useful for insight and improvement through reflection.
These mix of these factors often change geographically.
Approach 2 – How can we distinguish the different ways people approach life? (MBTI)
The Myers-Briggs Type Indicator (MBTI) is based on psychoanalytic theories of Carl Jung and
reflects cognitive style. There are 16 possible temperaments (2x2x2x2) e.g. ENTJ. The styles
are often paired up:
The MBTI measures holistic personality and preferences in thinking styles and
communication. However, it is complex and not very scientific as results do not stay stable
over time
The Big 5 is scientifically valid, less complex and looks at different aspects individually.
The MBTI/Big 5 does not measure ability, intelligence, courage, integrity, empathy.
Definition: Emotional intelligence is the ability to be aware of and sensitive to your own and
other’s emotions and to use that information to guide behaivour. This can be developed
over time.
Negotiation
Concept: Anchoring is an important negotiating term and refers to a mental shortcut where
people use a number as a starting point and the adjust their figures.
● To your disadvantage…if you get anchored to your BATNA
● To your advantage…if you are anchored to your target and you get your opponent to
anchor a number desirable for you
Concept: Principled negotiation (Fisher, R) is the idea that interests do not equal positions
i.e. the position someone takes in a negotiation does not necessarily reflect their best
interests.
● Interests: People should be concrete about their interests and discuss these rather
than bargain over position. Interests are often basic human needs.
● People: Tactically be hard on the problem, soft on the person i.e. empathise with
your opponents interests and dissociate egos from negotiation
● Opinions: Generate a variety of possibilities for mutual gain before deciding what to
do
● Criteria: Insist that the result be based on some objective standard if a negotiation is
reaching a dead end
Tactics for claiming value: up your target, estimate and cultivate your BATNA, set a
reservation price, ask questions to learn about the other’s RP, appeal to shared principles
and norms
Tactics for creating value: set priorities on issues, build trust and rapport, invite questions,
reveal information, ask questions to learn the other’s priorities
Common negotiation mistakes:
● Assuming a ‘fixed pie’
● Confrontational approach (CONS: damages relationships and the other person may
have a different negotiation approach)
● Ignoring rationality (sunk cost fallacy) and your opponent (overconfidence)
● Lack of planning e.g. Winner’s curse and Framing effect
Negotiation tips:
All negotiations should seek to end in a wise agreement – “one that meets the legitimate
interests of both sides to the extent possible, resolves conflicts fairly, is durable, and takes
community interests into account”
● Positional bargaining usually does not end in a wise agreement because negotiators
lock themselves into their positions and their position becomes identified with their
ego.
● Positional bargaining is inefficient and endangers ongoing relationships
● Positional bargaining uses hard and soft bargaining tactics (H usually beats S)
● In negotiations there is 1) the actual negotiation 2) the rules of the negotiation
● The rules of the negotiation are dictated by how you present your negotiation
In contrast to positional bargaining, principled negotiation focusses on mutual basic interest
and fair standards that typically results in a wise agreement. This method allows you to
reach an agreement efficiently and amicably
Commonly people believe that waiting for your opponent to make the first move in a
negotiation is wiser, but this belief is debatable. People believe you will gain valuable
information about your opponent’s bargaining position and clues about acceptable
agreements but it fails to account for the powerful effect that first offers have on the way
people think about the negotiation process.
In a situation of uncertainty and ambiguity, first offers have a strong anchoring effect i.e.
even though people know that first anchors should not cloud their judgement, they are
often incapable of resisting it’s influence and thus insufficiently adjust their valuations away
from the anchor. High anchors might signal towards the positive qualities of an item while
low anchors might highlight negative qualities.
There is one situation where making a first offer is a disadvantage – when the opposite side
has much more information than you e.g. salary discussions.
First offers should be aggressive but not absurdly so. Most negotiators make first offers that
are not aggressive enough. Advantages:
● Higher/lower final settlements
● Allows you to offer concessions and still reach a beneficial agreement better than
alternatives
Interestingly, negotiator satisfaction also comes from the number and size of concessions
extracted from the opposition. Thus by making an aggressive first offer, you’ll not only get a
better outcome but also increase opposition satisfaction by making concessions
Reservation price – price that is the minimum before you walk away
Target price – price at which all hopes and desires achieved
Between reservation and target price is the bargaining zone. People who focus on their
target prices and make offers outside the negotiation zone often lead to better outcomes.
Sources of motivation:
● Internal & external
● Desire and commitment [positive motivation]
● Fear and avoidance [negative motivation]
Theories of motivation
Maslow’s hierarchy of needs This assumes that motivation is driven by
human needs (e.g. food, security, actualisation).
Knowing how close/far you are from CONS – issues with rewarding A when hoping
goals can help guide the required for B, false sense of participation, curvilinear
behaviour effect of challenge on performance, goals can
conflict
Participative goal setting can be useful
Effort: belief that working harder will CONS – only applies when behaivour is
improve outcome voluntary, ignores long term variables that
impact behaivour (e.g. commitment, justice,
identity)
Performance: belief that if you meet a
goal or do better, you will get rewarded
Self-concordance = how strongly people’s goals align with their core values
Promotion focus = a self regulation strategy that involves striving for goals through
advancement and accomplishment
Prevention focus = a self-regulation that involves striving for goals by fulfilling duties +
obligations and avoid conditions that distract from goals.
Impact
Achievable
When setting goals, we need to set goals that are achievable and impactful.
Definition: A group is two or more people who interact with one another, share similar
characteristics, and have a sense of common identity. People in a group often share common
identities, interests, values and social interactions.
Concept: Grouping is the inherent ability to categorise people into different groups based off
our heuristics.
● Identification – we associate with certain groups (ingroups)
● Categorisation – we understand the social world by putting others into categories or
groups (outgroups)
● Comparison – we compare our groups (ingroups) with other groups (outgroups),
seeing a favorable bias towards the group to which we belong. This may mean we
see outgroups negatively
● Psychological distinctiveness – we desire our identity (and/or our ingroup) to be
distinct from and positively compared with other groups
Grouping is often a consequence of personal experiences, culture, and social stereotypes, all
of which contribute to our unconscious bias. These biases can impact our decisions and
behaivours e.g. starting salary offers, how much time we spend with people, who to
shortlist, how much pain we think others experience and how much to prescribe [studies on
Maria’s lecture].
Studies my McKinsey report that companies in the top quartile for gender diverse executive
teams (relative to the bottom quartile) are 21% more likely to have above average
profitability. The same study showed those in the top quartile on culture and ethnic diversity
are 35% more likely to have above average profitability. Yet in the UK BAME board members
are just 7.4% of the total and only 3.3% of CEOs/CFOs (Green Park 2019)
However, diversity has been linked with conflict in groups [NEGATIVE IMPACT]
● Task conflicts benefit performance through improved consideration for different
alternatives and group problem solving
● Relationship conflict, because of a focus on interpersonal issues, largely detracts
from group performance because of misspent time and efforts
Diversity can lead to failure of collaboration if team members do not develop trust and
goodwill among themselves and also lead to lack of knowledge sharing is team members
withhold their individual knowledge from other team members
Definition: Teams are a type of group that interact and influence each other and are
mutually accountable for a goal
As teams get to know each other, faultlines can form along surface and deep forms of
diversity. Initial faultlines appear around surface-level diversity while later faultlines appear
around deep-level diversity. External pressures (e.g. deadlines) can exacerbate existing
faultlines.
Focussing on relationships early may only deepen faultlines. As a guideline, when all
members of a team have developed specific expectations for a project and have negotiated
a widely accepted influence structure, then the time is right to switch to a
relationship-oreinted leadership style
Managing paradoxes:
● Embrace individual differences AND collective identity and goals
● Foster support AND confrontation among team members
● Focus on performance AND learning and development
● Balance managerial authority AND team member discretion and autonomy
Solutions:
● Empower and share responsibility with team members
Definition: The common information effect states that information held by more members
before team discussion has more influence on team judgements than information held by
fewer member, independent of the validity of the information.
● Groups tend to spend too little time discussing unshared information
● This can lead to discussion bias
Definition: Psychological safety is “being able to show and employ one’s self without fear of
negative consequences of self-image, status or career” (Kahn, 1990)
● Correlated with moderate risk taking, creativity, speaking up
Team members can take the leading role in enabling effective team communication.
Research shows that if people are inclusive, team members feel that the team processes are
more fair (procedural justice) and they are more committed to the decisions the team makes
(decision commitment)
“For years, managers have been encouraged to praise and constructively criticise just about
everything their employees do. But there are better ways to help employees thrive and
excel” (Marcus Buckingham and Ashley Goodall)
Solution – Managers need to help their team members see what’s working, stopping them
with a “Yes! That!” and sharing their experience of what the person did well. Look for
positive outcomes, re-enforce the feelings surrounding them and replay your instinctive
reactions.
Definition: Leadership is the process whereby one individual influences others toward
attaining defined goals.
Power can be used in very positive and/or highly detrimental and frightening ways.
Types of power:
● Coercive – capacity to punish
● Reward – capacity to reward
● Authority – officially sanctioned position
● Expert – task knowledge
● Referent – significant model to whom others look up to or feel loyal
1. Liking – people prefer to comply with the requests of people they know and like
a. The underlying theory is that we assume people who like us are less likely to
take advantage of us than people who don’t like us
b. Factors that influence liking: similarity, praise, association, physical
attractiveness, repeated exposure
2. Reciprocity – people feel obligated to repay others
a. Creates a sense of obligation i.e. recipient feels guilt if they do not repay
b. “Door in the face” technique – influencer starts with an inflated request (that
is likely to be rejected) and then retreats to a smaller request that appears to
be a concession
c. “That’s-not-all” technique – influencer begins with an inflated request, but
immediately adds to the deal by offering a bonus or discount
d. Managers can elicit the desired behaivour from co-workers and employees by
displaying it first
e. Gives us confidence that we will get something in return for our actions
3. Social proof – people follow the lead of similar others
a. Generally we make fewer mistakes by paying attention to what others are
doing
b. People are mentally lazy and following doesn’t take much thinking
4. Consistency – people align with their clear commitments
a. Personal consistency is highly valued by society
b. Consistency provides a shortcut for making decisions
c. “Foot in the door” technique – influencer starts with a small request to gain
eventual compliance with a larger request
d. Low-ball technique – influencer obtains commitment from the person, and
then reveals the hidden costs of the request
e. Labelling technique – influencer assigns a label to an individual and then
requests a favour consistent with that label
f. Legitimisation of palty favours technique – influencer makes a small amount
of aid acceptable
5. Authority – people defer to experts
a. We are socialised to respect and obey authority figures
b. Genuine authority figures possess high levels of knowledge, wisdom and
power
c. People mistakenly assume that others recognise and appreciate their
experience i.e. people should take time to establish their expertise before
exerting influence
6. Scarcity – people want more of what they can have less of
a. Things that are difficult to attain are generally more valued
b. As things become less available, we lose freedom. Most people hate to lose
the freedoms they have
“The person entering an authority system no longer views himself as acting out of his own
purposes but rather comes to see himself as an agent of executing the wishes of another
person.”
“They even try to get out of it, but they are engaged in something from which they cannot
liberate themselves. They are locked into a structure, and they do not have the skills or inner
resources to disengage themselves” [ONCE YOU COMPLY IT’S VERY HARD TO GO BACK]
Culture
Definition: Culture is “a system of shared values and norms that define appropriate attitudes
and behaivours for organisational members”. (O’Reilly and Chatman, 1996)
● Stable, deeply embedded, broad, patterning
Culture is strong when agreement and commitment are high. The stronger the culture the
more it influences behaivour.
● Agreement = extent to which organisation members agree with the same values
● Commitment = degree of commitment to living and maintaining the values of the
organisation
Culture as strategy:
● Cultivate positive emotions that fuel motivation and create social capital
● Align values, beliefs and actors
● Facilitate communication
● Enable control
Culture as control
1. Am I safe?
a. What characteristics are values? What behaviours are rewarded and
punished? The more safe you feel, the more you can relax and focus on work?
2. What information is safe to share?
a. Can I give frank feedback to peers or superiors? Can I share what is happening
in my private life?
3. What should I do?
a. Where are we headed? How will we get there? How much improvisation is
allowed along the way?