Organizational Behavior Chapter 3 by Tadesse Tiko (PHD.)

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ORGANIZATIONAL BEHAVIOUR

Instructor: Tadesse Tiko (PhD.)


GROUPS AND TEAMS PROCESSES

COURSE CODE : MBA 561


Chapter Outline
 3.1 The Nature of Groups and Teams

 3.2 Teamwork and High Performance Teams

 3.3 Leadership

 3.4 Power and Politics

 3.5 Conflict and negotiation

 3.6 Communication in Organization

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Chapter Objectives
After completing this chapter, you should be able to

 Understand group dynamics and development.

 Compare and contrast different types of teams.

 Understand Leadership theories and styles

 Know Power and Politics in Organization.

 Recognize Conflict and negotiation.

 Understand the role of Communication in Organization

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


3.1 The Nature of Groups and teams
3.1.1 Group
 Definition

 A group is defined as two or more individuals, interacting and interdependent, who have come

together to achieve particular objectives (Robbins and Judge, 2019)

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Group: A collection of individuals who interact with each other such that one person’s actions have

an impact on the others.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Types of Group
1. Formal Group

A. Command group: is a relatively permanent formal group with functional reporting relationships

and is usually included in the organization chart.

B. Task group: it is relatively temporary, formal group established to do a specific task.

C. Affinity group: is a collection of employees from the same level in the organization who meet on a

regular basis to share information, capture emerging opportunities, and solve problems

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

2. Informal groups

 Interest Group - the group formed by the individuals who are interested in the certain subjects.

 Friendship Group - the group which is formed by the individuals who become close to each other, are

interest in the same subjects, and find the many lowest common denominators

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Stages Of Group Development

 Two models of group development:

1. The five-stage model

2. Punctuated-equilibrium model

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

1. The Five-Stage Model

 These five stages have been labeled

1. Forming

2. Storming

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

3. Norming

4. Performing, and

5. Adjourning

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Stage 1: Forming

 The first stage in group development, characterized by much uncertainty, anxiety, and

disagreement over power and authority.

 It is characterized by a great deal of uncertainty about the group’s purpose, structure, and

leadership.

 Members are testing the waters to determine what types of behavior are acceptable. This stage is

complete when members have begun to think of themselves as part of a group.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Stage 2: Storming

 The stage is characterized by inter-group conflict.

 Members accept the existence of the group, but resist the constraints that the group imposes on

individuality. Additionally, there is conflict over who will control the group. After a group leader has

emerged, the remaining group members must sort out where they fit in the group.

 When this stage is complete, a relatively clear hierarchy of leadership will emerge within the group.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Stage 3: Norming

 Many groups resolve the interpersonal conflict and reach the this stage

which is characterized by close relationships and cohesiveness.

 There is now a strong sense of group identity and camaraderie.

 All groups have established norms that tell members what they ought

and ought not to do under certain circumstances.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Stage 4: Performing

 The group is fully functional. The structure at this point is fully functional

and accepted. Group energy has moved from getting to know and

understand each other to performing the task at hand. Members'

attention is directed to self-motivation and the motivation of other group

members for task accomplishment. For permanent work groups,

performing is the last stage in their development.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Stage 5: Adjourning

 The final stage in group development for temporary groups, the group prepares for its

disbandment. High task performance is no longer the group's top priority. Instead, attention is

directed toward wrapping up activities.

 Group members’ responses vary at this stage. Some members are upbeat, basking in the group’s

accomplishments. Others may be depressed over the loss of camaraderie and friendships gained

during the work group’s life.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
2. The Punctuated-Equilibrium Model

 The theory that change within groups occurs in rapid, radical spurts rather than gradually over time.

 A set of phases that temporary groups go through that involves transitions between inertia and activity.

 Temporary groups with deadlines don’t seem to follow the previous model. Studies indicate that

temporary groups with deadlines have their own unique sequence of action

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 The first meeting sets the group’s direction.

 This is a period of inertia— the group tends to stand still or become locked into a fixed course of action.

 A transition takes place at the end of the first phase, which occurs exactly when the group has used up

half its allotted time.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
 The transition initiates major changes.

 A second phase of inertia follows the transition.

 The group’s last meeting is characterized by high levels of productive activity.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 In summary, the punctuated-equilibrium model characterizes deadline-oriented groups and teams

as exhibiting long periods of inertia interspersed with brief revolutionary changes triggered

primarily by members’ awareness of time and deadlines.

 The punctuated-equilibrium model, describes the pattern of development specific to temporary

groups with deadlines. In this model, the group shows two great periods of activity.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
 The first peak in activity takes place after the midpoint of the project, a time in which the team

performs at a higher level than it did previously. The second peak takes place right before the

project comes due.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 The five-stage and punctuated-equilibrium models are at odds with each other. However, it makes

more sense to view the models as complementary: The five-stage model considers the

interpersonal process of the group, while the punctuated-equilibrium model considers the time

challenges that the group faces.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Characteristics of groups
 Groups in organizations are more than collections of individual employees. Effective groups can be

distinguished in terms of role structures, norms, cohesiveness, leadership, status, tasks and size.

 These characteristics act as a means of understanding why some groups perform better than others.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
1.Role Structures
 Each person in a group has a role, or a pattern of expected behaviors associated with a certain position

in the group. Each group member's role is a part of the group's overall role structure, that is the set of

roles and relationships among roles that has been defined and accepted by group members.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
2. Norms
 The standards that a work group uses to evaluate the behavior of its members are its norms of behavior.

 The norms may be written or unwritten, verbalized or not verbalized, implicit or explicit. So long as

individual members of the group should do, or they may specify what members of a group should not do.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
3. Cohesiveness

 The commitment of members to a group and the strength of their desire to

remain in the group constituted the group's cohesiveness. It is the

"interpersonal glue" that makes the members of a group stick together is

group cohesion.

 Group cohesion can enhance job satisfaction for members and improve

organizational productivity.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
4. Leadership

 A key role in determining the success of the group is the role of the

leader. Effective leadership can shape a group into a powerful force

for accomplishing what individual members could not or would not

do alone.

 Organizations need to cultivate effective group leaders whose goals

support the organization's objectives.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
5. Status
 Status is the degree of worth and respects that other members of the group accord individual

group members. Status may arise from the person's job or behavior in the group. Often, a group

member's status is linked to the person's position in the

 organization. Someone near the top of the organizations hierarchy has a higher status.

 Status may also be based on age, gender, education level, seniority, race or other characteristics.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
6. Tasks
 The productivity and satisfaction of group members also depend on the kinds of tasks the group

carries out.

i. Task Type The type of task carried out by a group is defined by the major kinds of activity involved.

Tasks may be classified as follows:

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Production tasks- Tasks requiring the group to produce and present ideas, images or arrangements.

 Discussion tasks -tasks requiring the group to evaluate issues and

 Problem-solving tasks requiring the group to decide on a course of action for resolving a particular

problem.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

ii. Performing Requirements

 Disjunctive Tasks that can be completed through individual efforts of group members.

 Conjunctive Tasks These are tasks where each person's efforts are tightly linked to the efforts of

others. Group members are highly interdependent.

 Additive Tasks Are tasks where productivity is measured by adding together the output of each

group member.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Threats to group effectiveness

1. In appropriate conformity

2. Group think phenomena

 A state in groups where the pressures for conformity are so

great that they dominate member’s abilities to realistically

appraise alternative decision

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

3. Social loafing

 The tendency of the individuals to exert less effort when working in a group than when working

individually

4. Group composition

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

5. Dominance- Some members may have a dominating personality that encroaches on the participation

or air time of others.

6. Compatibility of Group and organizational goals

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
3.1.2 Teams

 Definitions

1. Team: A small number of people who work closely together toward a common objective and are

accountable to one another

2. A team is a small number of people with complementary skills who are committed to a common

purpose, performance goals, and approach for which they hold them selves mutually accountable.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
3. A team is a cohesive coalition of people working together to achieve mutual goals.

4. A team is

a) Two or more individuals;

b) Socially interact (face-to-face or, increasingly, virtually);

c) Possess one or more common goals;

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

d) Brought together to perform organizationally relevant tasks;

e) Exhibit interdependencies with respect to workflow, goals, and outcomes;

f) Have different roles and responsibilities; and

g) Together embedded in an encompassing organizational system, with

boundaries and linkages to the broader system context and task

environment

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Difference between teams and groups
Dimension Group Team

Job category Many narrow One or two categories


categories

Authority Supervisors directly Team itself controls daily


controls daily activities activities

Reward system depends on the type based on team


of individual performance and
performance and individual breadth of skills
seniority

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


3.2 Teamwork and High Performance Teams

 High Performing Teams are an extension of the regular teams having a higher sense of

commitment towards the objectives or mutual purpose which defines the existence of a group.

 In a High-Performance Team, each member of the team plays the role of a partner in achieving

outstanding and measurable outcomes.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Team Tasks :Teams differ in terms of the tasks they are trying to accomplish. Richard Hackman

identified three major classes of tasks:

 Production tasks- Tasks that include actually making something such as a building, product, or a

marketing plan.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Idea-generation tasks- Creative tasks such as brainstorming a new direction or creating a new process.

 Problem solving tasks- Refers to coming up with plans for actions and making decisions.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Task interdependence

 The degree that team members are dependent upon one another to get information, support, or

materials from other team members to be effective.

 Three types of task interdependence

1. Pooled interdependence

2. Sequential interdependence

3. Reciprocal interdependence

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

1. Pooled interdependence

 When team members may work independently and simply combine their efforts to create the

team’s output.

2. Sequential interdependence

 In a team, when one person’s output becomes another person’s input.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

3. Reciprocal interdependence

 Is a two-way street. Both teams or departments rely on one another, making everyone highly

responsible for accomplishing goals and tasks. It's a cyclical workflow.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Types of Teams

 There are several types of temporary teams

1. Problem solving team/corrective action team

2. Cross-functional teams in which individuals from different

parts of the organization staff the team, which may be

temporary or longstanding in nature

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Types of Teams

3. Self managing team/empowered- Teams that manage themselves and do not report directly to a supervisor.

4. Virtual teams are Teams that seldom interact face-to-face and use computer technology to tie together

physically dispersed members in order to achieve a common goal

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d.
Designing Effective Teams

 Designing an effective team means making decisions about

team

1. Composition (who should be on the team),

2. Team size (the optimal number of people on the team), and

3. Team diversity (should team members be of similar background,

such as all engineers, or of different backgrounds).

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


3.3 Leadership

 The process of influencing the activities of an organized group in its efforts toward goal setting and

goal achievement” (Stogdill, 1950, p. 3)

 Three key components to this definition:

 an interpersonal process between one person and a group

 can’t have ‘leaders’ without ‘followers’

 criterion for effective leadership = goal achievement

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Leadership is the process of influencing others to understand and agree about what needs to be

done and how to do it, and the process of facilitating individual and collective efforts to accomplish

shared objectives.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d.

 Theories of Leadership.

 Researchers were not satisfied to explain leadership fully in one theory as a result they continue

studying the subject and come up with different theories.

 Trait approach 1900

 Behavior approach 1940

 Situational approach 1960

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d.

 leader–member exchange(LMX) approach 1975

 Transformational approach 1985

 Morale approach 2000

 Ethical

 Authentic

 Servant

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d…
Leadership Competencies
 Passion

 Humour

 Courage

 Integrity and Trust

 Energy/Vitality/Enthusiasm

 Building a Team

 Setting priorities

 Creativity

 Vision

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d…
 Leadership Style –Basic

 Autocratic

 Bureaucratic

 Laissez faire

 Democratic

 Transformational

 Transactional

 Pace setter

 Servant

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


SESSION TWO
Power and Politics

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


3.4 Power and Politics
Power
 Definitions

 Power is the capacity to exert influence over others

 Power refers to the capacity that A has to influence the behavior

of B, so that B acts in accordance with A’s wishes. The greater

B’s dependence on A, the greater is A’s power in the relationship.

 Therefore power is a function of dependency. (Robbins, 2003)

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Power is the currency that buys changes in organizational outcomes: shapes goals, influence

decisions , resolves conflicts.

 Power is the ability to make things happen in the way an individual wants, either by self or by the

subordinates. The essence of power is control over the behavior of others. (French & Raven, 1962)

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Source of power

1. Organizational sources (Position)

2. Individual sources (personal)

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Position Power

 Power based on one’s formal position in an Organization. Position power is of four types

1. Coercive power

2. Reward power

3. Information power

4. Legitimate Power)

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Personal Power(Informal)

 The power that one derives because of one’s individual qualities

or characteristics. Of four type.

1. Rational Persuasion

2. Expert Power :

 The individual power base derived from an individual’s recognized

superior knowledge, skills or abilities in a certain area.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

3. Referent power

 The individual power base derived from the degree to which

one is liked and admired by others.

4. Charisma

 An attitude of enthusiasm and optimism that is contagious;

an aura of leadership.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Power Tactics :Using power to achieve the desired effect over other people is a challenge faced by most

of the managers. The most common strategies to implement relational effect are (Kipnis et. Al, 1984):

 Reason: Use of facts and data to present your ideas logically.

 Friendliness: Use of flattery, creation of goodwill, acting humble, and being friendly.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Coalition: Getting the support of other people in the organization.

 Bargaining: Use of negotiation.

 Assertiveness: Use of a forceful approach.

 Higher authority: Getting the support of higher level members of the organization.

 Sanctions: Use of rewards and punishments derived by the organization.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Politics in an Organization

 organizational politics Unauthorized uses of power that enhance or protect one’s own or one’s

group’s personal interests.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Forms of Political Behavior

 Political behavior is not a part of an individual’s job requirements. It

includes efforts to influence the goals, criteria or processes used for

decision making. It includes many political behaviors like refusing to

give important information to decision makers, spreading rumors,

leaking confidential information.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Political tactics

 Eugene McKenna identified these common political tactics in organizations

1. Controlling information: restricting information to certain people

2. Controlling lines of communication: establishing gatekeepers to restrict access to information

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

3. Using outside experts: outside consultants may seem neutral, but are paid and directed by

management to “do their bidding”

4. Controlling the agenda: to ensure only certain topics are discussed

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

5. Game playing: leaking information, getting only friends to provide feedback

6. Image building: enlisting “spin doctors” to project a desirable image

7. Building coalitions: befriending powerful others or starting small subgroups to promote specific aims

8. Controlling decision parameters: trying to influence decisions before they are made

9. Eliminating political rivals: this may even mean getting them promoted to get them out of the way

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Michael Maccoby describes four types of organizational politicians. They are:

1. The Craftsman: Craftsmen are the least political. They are technical specialists who like details and

accuracy. The person is usually quiet, sincere, modest and practical.

2. The Jungle Fighter: Jungle fighters are active politicians. They believe employees should be used to

get ahead in the company. They want success at any cost. There are two types of jungle fighters:

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 2.1 Foxes: The foxes make their nests in the organization and plan from this safe base.

 2.2 Lions: They capture others’ territories and build empires.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

3. Company men or women: These are traditional or moderate people. They have a desire for affiliation

and may not show a lot of political behavior. Such people are concerned for humans. They are more

involved with security than success and may miss opportunities that arise.

4. The Gamesman: The gamesmen are competent politicians. They see business as a game and take

calculated risks. The gamesmen are charismatic, grow when there are challenges and competition

and motivate employees with enthusiasm.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


2.5 Conflict and negotiation
“Working together isn’t always easy”

 Definitions

 Conflict - any situation in which incompatible goals, attitudes, emotions, or behaviors lead to

disagreement or opposition between two or more parties

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Conflict: A process of social interaction involving a struggle over

claims to resources, power and status, beliefs, and other preferences

and desires. The aims of the parties in conflict may extend from

simply attempting to gain acceptance of a preference, or securing a

resource advantage, to the extremes of injuring or eliminating

opponents”

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Functional and Dysfunctional conflict

1. Functional conflict: supports the goals of the group, improves its

performance, and is thus a constructive form of conflict.

 A constructive and healthy dispute between individuals or groups

2. Dysfunctional conflict: A highly personal struggle for control in a

team that distracts from the task at hand is dysfunctional

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Types of Conflict- three types

1. Task conflict: refers to a clash between individuals about the direction, content, or goals of a work

assignment.

2. Relationship conflict: refers to personality conflicts between two or more individuals in the

workplace. It is considered the most destructive and harmful to organizations because it can give

rise to hostility, mistrust, fear, and negativity.

3. Process conflict: refers to the clash in viewpoints about how to carry out work.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Conflict process: A process that has five stages cognition and personalization, intentions,

behavior, and outcomes.

 Stage I: Latent conflict(sources of conflict)

 Antecedent conditions

 Interdependence

 Different goals

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Certain characteristics like communication, structure, and personal variables, can lead to conflict

 Stage II: Cognition and personalization

 Perceived conflict: Awareness by one or more parties of the existence of conditions that create

opportunities for conflict to arise.

 Felt conflict: Emotional involvement in a conflict that creates anxiety, tenseness, frustration, or

hostility.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Stage III: Intentions

 Conflict-handling intentions

 Competing, Collaborating, Compromising,

Avoiding and Accommodating

 Stage IV: Behavior

 Overt conflict

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Conflict management: The use of resolution and stimulation

techniques to achieve the desired level of conflict.

 Conflict-Resolution Techniques

 Problem solving-Meeting face to face for the purpose of

identifying the problem and resolving it through open discussion.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Superordinate goals-Creating a shared goal that cannot be attained

without the cooperation of each of the conflicting parties.

 Expansion of resources- Expanding the supply of a scarce resource;

money, promotion, opportunities, office space.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Avoidance- Withdrawing from or suppressing the conflict.

 Smoothing- Playing down differences while emphasizing common

interests between the conflicting parties.

 Compromise- Having each party to the conflict give up something of

value.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Authoritative command- Letting management use its formal authority to resolve the conflict and

then communicating its desires to the parties involved.

 Altering the structural variables- Changing the formal organization structure and the interaction

patterns of conflicting parties through job redesign, transfers, creation of coordinating positions,

and the like.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Conflict-Stimulation Techniques

 Communication- Using ambiguous or threatening messages to increase conflict levels.

 Bringing in outsiders -Adding employees to a group whose backgrounds, values, attitudes, or

managerial styles differ from those of present members.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Conflict-Stimulation Techniques

 Restructuring the organization - Realigning work groups, altering rules and regulations, increasing

interdependence, and making similar structural changes to disrupt the status quo.

 Appointing a devil’s advocate - Designating a critic to purposely argue against the majority positions

held by the group.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
What is Negotiation?
 Definition

 Negotiation: A form of problem solving where two groups with conflicting interests exchange

things in order to reach a mutually agreeable resolution.( Cook and Hunsaker)

 Negotiating is the art of reaching an agreement by resolving differences through creativity”

 To confer or discuss with another with a view toward reaching agreement where some interests

may be shared and some may be opposed

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Negotiation is back and forth communication designed to reach agreement while leaving the other

side intact and positive.

 Easier to negotiate when the two sides have some shared interests and some opposed.

 A useful way to resolve a problem or conflict Within a negotiation, one should be aware that

individuals have issues, positions, and interests. Issues are items that are specifically placed on

the bargaining table for discussion. Positions are the individual’s stand on the issues.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 For instance, salary may be an issue for discussion. The salary you hope to receive is your

position. Finally, interests are the underlying concerns that are affected by the negotiation

resolution. For instance, the reason that you might want a six-figure salary is that you are trying to

buy a house in Addis Ababa, and that is your only hope of being able to make mortgage

payments.

 Negotiation is an ongoing activity in groups and organizations.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Bargaining Strategies

 There are two general approaches to negotiation

1. Distributive bargaining (win-lose) and

2. Integrative bargaining(win-win)

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

1. Distributive bargaining : Negotiation that seeks to divide up a fixed amount of resources; a win-

lose solution. It is a negotiating strategy that operates under zero-sum (win-lose) conditions.

2. integrative bargaining Negotiation that seeks one or more settlements that can create a win-win

solution

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
When to Use a Particular Negotiating Approach
 Use A Distributive Approach:

 When your interests and the other party’s clearly conflict.

 When the other party insists on taking a win-lose approach.

 When you do not need a long-term harmonious relationship.

 When you are powerful enough to prevail.

 When short-term goals are more important

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Use An Integrative Approach

 When you and the other party have common interests.

 When the other party is willing to consider a win-win approach.

 When a continuing, harmonious relationship is important.

 When you are weaker or power is approximately equal.

 When long-term goals are more important

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Distributive vs. Integrative Bargaining

Bargaining Characteristic Distributive Bargaining Integrative Bargaining

Goal Get as much of the pie as Expand the pie so that


possible both parties are satisfied

Available resources Fixed amount of Variable amount of


resources to be divided resources to be divided

Motivations Focus I win, you lose I win, you win


Primary interests Opposed Convergent
Duration of relationships Short-term Long-term

Information sharing Low High

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
The Negotiation Process

 Negotiation is made up of five steps:

1. Preparation and Planning;

2. Defining Ground Rules;

3. Clarification and Justification;

4. Bargaining and Problem Solving; and

5. Closure and Implementation.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
1) Preparation and Planning
 Before you start negotiating, you need to do your homework. What is the nature of the conflict?

What is the history leading up to this negotiation? Who is involved and what are their perceptions

of the conflict? What do you want from the negotiation? What are your goals? It often helps to put

your goals in writing and develop a range of outcomes—from “most hopeful” to “minimally

acceptable”—to keep your attention focused.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 In determining goals, negotiators should consider their target and resistance points, as well as

their best alternative to a negotiated agreement

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
2) Defining Ground Rules
 Defining the ground rules and procedures with the other party

over the negotiation itself. Who will do the negotiating? Where will

it take place? What time constraints, if any, will apply? To what

issues will negotiation be limited? Will there be a specific

procedure to follow if an impasse is reached? During this phase,

the parties will also exchange their initial proposals or demands.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
3) Clarification and Justification

 When initial positions have been exchanged, both you and the

other party will explain, amplify, clarify, bolster, and justify your

original demands. This part of the process need not be

confrontational. Rather, it is an opportunity for educating and

informing each other on the issues, why they are important, and

how each arrived at their initial demands.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
4) Bargaining and Problem Solving

 Solving The essence of the negotiation process is the actual give and take in trying to hash out an

agreement. It is here that concessions will undoubtedly need to be made by both parties.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
5) Closure and Implementation

 The final step in the negotiation process is formalizing the agreement that has been worked out

and developing procedures that are necessary for implementation and monitoring.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Third-Party negotiations

 When individuals or group representatives reach a stalemate and are unable to resolve their

differences through direct negotiations, a third party to help them find a solution. Basic third-party

roles: mediator, arbitrator, and conciliator.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Mediator- A neutral third party who facilitates a negotiated solution

by using reasoning, persuasion, and suggestions for alternatives.

 Arbitrator- A third party to a negotiation who has the authority to

dictate an agreement

 Conciliator -A trusted third party who provides an informal

communication link between the negotiator and the opponent

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


2.6 Communication in Organization

 Communication: is the process by which people share ideas, experience,

knowledge and feelings through the transmission of symbolic messages.

The means of communication are usually spoken or written words,

pictures or symbols. But we also give information through body language,

gestures, and looks, facial expressions can show how we feel and what

we think about an issue or another person.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
The Communication Equation

 What you hear

 Tone of voice

 Vocal clarity

 Verbal expressiveness 40% of the message

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 What you see or feel

 Facial expression

50% of message
 Dress and grooming the posture

 Eye contact

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Touch

 Gesture
10% of the message!
 WORDS …

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Types of Communication

 Downwards Communication Highly Directive, from Senior to subordinates, to assign duties, give

instructions, to inform to offer feed back, approval to highlight problems etc.

 Upwards Communications It is non directive in nature from down below, to give feedback, to

inform about progress/problems, seeking approvals.

 Lateral or Horizontal Communication Among colleagues, peers at same level for information level

for information sharing for coordination, to save time.

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Communication Key Elements

 Source (sender)

 Channel

 Receiver

 Filter

 Feedback

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


The Communication Process

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Characteristics of effective communications

 It requires the message to be:

 Clear and concise

 Accurate

 Relevant to the needs of the receiver

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 Timely

 Meaningful

 Applicable to the situation

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d
Effective communication requires the sender to

 Know the subject well

 Be interested in the subject

 Know the audience members and establish a rapport with them

 Speak at the level of the receiver

 Choose an appropriate communication channel

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 The channel should be

 Appropriate

 Affordable

 Appealing

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 The receiver should

 Be aware, interested, and willing to accept the message

 Listen attentively

 Understand the value of the message

 Provide feedback

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

 An effective verbal communicator  An effective nonverbal communicator

 Clarifies  Relaxes

 Listens  Opens up

 Encourages empathically  Leans toward the other person

 Acknowledges  Establishes eye contact

 Restates/repeats  Shows appropriate facial expressions

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Barriers to Effective Communication

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Self Evaluation

1. A ____ consists of two or more individuals, interacting and interdependent, who have come

together to achieve particular objectives.

A. Group

B. Crowd

C. Negotiator

D. Figurehead

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

2. When communicating, a sender _____ a message and passes the message through a medium.

A. decodes

B. Transfers

C. Encodes

D. feedback

ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko


Cont’d

3. The power a person receives as a result of his/her position in the formal hierarchy of an

organization.

A. Referent power

B. Expert power

C. Legitimate power

D. Reward power

Put your answers on the


LMS!
ORGANIZATIONAL BEHAVIOUR MBA 561 Tadesse Tiko
© New Global Vision college

COURSE CODE : MBA 561


All right reserved © New Global Vision college

THANKS!
If anyone have any questions? You can leave your
questions or comments on the learning management
system.

Instructor: Tadesse Tiko (PhD. )


V

Seat of Wisdom

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