Organisational Behaviour

MOD001120
Trimester 2, 2013
Ms. Ananthalakshmi
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Introduction to module and the assignment
What is OB and why is it important?
Key OB concepts and themes
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Organisation
People
Organisation-people relationship
Structure
Management
Group case work and discussion
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Learning how to understand and analyse what goes on in
organisations and why it matters
◦ Focus is on human behaviour, social dynamics, politics,
formal and informal systems and structures of
organisations
◦ and the implications of these for management of
organisations
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Critical, analytical and independent thinking is key to your success in
this module!
◦ Organisational life and behaviour of people is a complex
matter comprising numerous different realities
◦ No one right answer or single solution to any issue or
problem
◦ A whole range of different (sometimes competing) theories,
approaches and perspectives
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… is key to learning how to do well on the assignment
… is key to making this module an interesting and
rewarding learning experience
… is key to increasing your understanding of and ability
to navigate in organisations
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Share experiences and observations of
organisational life
◦ think about organisations you have been / are part
of
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Expectations of the module
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In essence:
◦ Analyse your own organisation or another
organisation of your choice
◦ Focus your analysis on key organisational behaviour
issues which you identify as important in this
organisation
◦ Use a variety of OB models and theories as part of
your analysis
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See the module guide for information on the
assignment!
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If you choose a case organisation (that is not
your own) you need to collect information and
material about this organisation from different
sources
Task for next week: Choose the organisation
you want to analyse and start researching it
◦ you will be working with your case in the sessions
throughout the module!
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OB concepts, models and theories used in
your analysis should be researched in-depth
using relevant academic literature
◦ It is NOT enough to only use the key textbook
◦ You need to find other relevant literature yourself
to use and reference in your analysis
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Remember good academic practice!
◦ Correct use of referencing and citations
◦ Harvard referencing (see library guide)
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Introduction to module and the assignment
What is OB and why is it important?
Key OB concepts and themes
◦
◦
◦
◦
◦
Organisation
People
Organisation-people relationship
Structure
Management
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The study of the behaviour of people in
organisational settings, incl.:
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Individual behaviour
Group behaviour
Social relations and interaction
Culture(s) and social norms
Structure(s)
Management systems and processes
Politics and conflict
Influence of external environment and stakeholders
See also Figure 1.1. ‘The Organisational Iceberg’
(Mullins 2010, p.5).
Figure 1.1
The organisational iceberg
Source: From Hellriegel, D., Slocum, J. W., Jr. and Woodman, R. W.
Management, eighth edition, South-Western Publishing (1998), p. 6.
Copyright © 1999 South-Western, a part of Cengage Learning, Inc.
Reproduced by a permission (www.cengage.com/permission).
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OB is a behavioural science approach drawing
on aspects of three main classic disciplines:
◦ Psychology
 Focus on the individual, small group dynamics etc., the
personality system
◦ Sociology
 Focus on social behaviour and relations, structures
etc., the social system
◦ Anthropology
 Focus on culture, beliefs, norms, ideas and values etc.,
the cultural system
“Is the study of organizations important? I think
it is vital. What the social sciences, humanities
and the arts are to university education, OB is to
business school education. The more technical
a manager’s training, the more important
organizational behaviour becomes”
(Wood, J. 1997 quoted in Mullins, L. 2010, p. 32)
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The performance of organisations, and
people at work, is influenced by:
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The idiosyncratic behaviour of individuals
Social and cultural factors
Politics and conflict
Formal and informal structures
Formal and informal working methods
Management systems and styles
Source: Dilbert.com / ©Scott Adams, November 4th
2007
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The rising pyramid
◦ “Work expands so as to fill the time available for its
completion”
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Law of Triviality
◦ most time spent of the most trivial
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The disease of induced inferiority = injelititis
◦ organisational paralysis due to the games of getting
to the top while surrounding yourself with
incompetent subordinates
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A complex social system with a function or
role to perform
◦ exists in order to achieve certain objectives
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A configuration of people which enables cooperative action and coordination of effort
◦ making it possible to accomplish objectives which
could not be accomplished by individuals in
isolation
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Morgan believes we interpret and understand
the nature of organisations by the use of
metaphors:
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Machines
Organisms
Brains
Cultures
Political systems
Psychic prisons
States of flux
Instruments of domination
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People
Formal structures and other forms of internal
and external relations
Buildings and other infrastructure (IT
systems, technology etc.)
Means of coordinating, directing and
influencing activity
◦ managers (and/or informal leaders), documented
procedures, rules and policies etc.
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Public sector, private sector, 3rd sector
Small, medium, large
Local, National, international, transnational
Production, service
Object-moulding, people-moulding
Etc.
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No organisation is an island!
Boundaries are constructed and often
contested and renegotiated both formally and
informally
External factors influence organisations as
much as internal factors
◦ customers/clients, competitors, suppliers,
government policies, societal values, culture and
attitudes, shareholders and stakeholders, financial
climate, technological developments etc.
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Organisations are made up of Individual members
◦ Individuals are central to the study of OB.
◦ Individuals bring and collectively create values, norms,
beliefs, culture etc.
Members interacting, forming relations, forming
groups and sub-groups, cooperating, creating
conflicts, competing etc.
Groups are essential to understanding people in
organisations
◦ Can be formal or informal
◦ Often develop their own hierarchies, (informal) leaders,
norms and values
◦ Can influence individual behaviour
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Relationship between the system and its
members
◦ Often termed the employment relationship due to
the dominance of work organisations
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An important role of management is to
integrate and reconcile the needs of the
organisation and of its people respectively
The psychological contract
◦ A serious of mutual expectations of rights,
privileges, duties, obligations etc.
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Individuals’ expectations of organisation
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Organisational expectations of individual
◦ Good, safe (non-damaging), resonable working conditions
◦ Job security, fair and best practice HR policies, equal
opportunities, no discrimination, harassment etc.
◦ Satisfying job
◦ Fair reward and career progression/personal development
◦ Consultation and respectful treatment
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Uphold image and values of organisation
Work hard to meet organisational objectives
Adhere to rules, policies and procedures
Respect authority of management
Loyalty, confidentiality etc.
Treat colleagues, customers and other stakeholders with
respect
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An organisation is not actually an agent or
person, it’s a coalition of people
◦ ‘The system’ does not exist independent of its
members
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Upholders and representatives of ‘the system’
are often also employees
◦ frequently finding themselves at both (or
alternating) sides of the employment relationship in
different situations
◦ Ex. middle managers might have mixed loyalties
and experience conflicts of interest
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Lifetime employment, security and steady
promotion are things of the past
◦ but expectations of complete engagement with
little distinction between work life and private
life
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Lack of loyalty from both sides
Flexibility, constant learning, openness to
change etc.
Knowledge economy – work is fluid,
intangible, can be and is done anytime,
anywhere, i.e. all the time…
◦ But many organisations are still struggling with
the concept and are stuck in traditional
thinking of assuming that the longer
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Formal, deliberately planned co-ordination of
activities (not people)
◦ through division of work, definition of roles and
functions and hierarchy of authority and responsibility
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A framework of formal order and command that
serves to aid planning and organising
All organisations need some form of structure,
◦ In smaller organisations it might be more informal and
personal in nature
◦ The larger the organisation the more need there is for a
formal, explicitly defined and comprehensive structure
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Co-ordinating, directing and guiding of
activity and efforts of members
◦ in order to achieve organisational objectives
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Integrating individual and organisation
Exercising authority and influencing
behaviour of other members
At higher levels - formulating strategy,
vision, objectives and designing structure etc.
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Central part of the study of organisational
behaviour is the development of management
theory
The management of organisations has been
studied and theorised from a range of
different approaches
◦ Based on differing views of the nature of
organisations, people, structure and management
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Some theories appear contradictory
◦ But might more productively be seen as
contributing with different pieces to the puzzle
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Theorised organisations in terms of purpose and
formal structure
Emphasis on formal and official planning and division
of work, hierarchy of management, technical
requirements, standardisation
◦ Bureaucratic principles (Weber)
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Assumed that the behaviour of people is rational and
logical
◦ Formal structure and procedures determines behaviour
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F.W. Taylor, ‘father’ of scientific management
(Taylorism)
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Emphasis on people aspects and the informal side to
organisations
◦ Social factors and dynamics
◦ Informal mechanisms always present within formal structures
◦ Psychological and social needs, behaviour and reactions of
people
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Hawthorne experiments
◦ The discovery of ‘unexplainable’ human relations factors…
such as the effect of workers being given increased attention
by researchers and shown interest by management
◦ Was instrumental in the development of new thinking and
theorising into the people aspects of organisations (OB)
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Classic approach
◦ ‘Organisation without people’
◦ One-sided emphasis on formal structure and one best
way
◦ Dehumanising
◦ Simplification and ignorance of crucial variables
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Human relations approach
◦ ‘People without organisation’
◦ One-sided emphasis on the informal, no attention to
structure
◦ Too humanistic, idealistic
◦ Naïve, unsubstanciated
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Organisations as complex, open social
systems, incl. interrelated sub-systems and
environment
Attempt at integrating classical and human
relations approaches
Emphasis on importance of socio-technical
system and influence of external environment
◦ Emphasis on including a broad range of variables
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Interrelationship between structure and
human behaviour, different parts of the
organisation and the environment
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Extension of the systems approach
Emphasis on situational and contextual
factors
◦ No one best structure or general management
principles applicable in all organisations and
situations, no one optimum state
◦ Different types of structures dependent on (i.e.
contingent upon) each particular type of
organisation, nature of tasks and objectives,
external environment etc.
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Decision-making approach (Simon, March)
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Social action approach
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Postmodernism
◦ Understanding of how decisions are made is seen as important
aspect of behaviour in organisations, focus on conflict
(avoidance), political negotiation and non-rational behaviour
(satisfactory rather than optimal results)
◦ Focus on people’s perceptions and definition of situations as a
basis for understanding behaviour
◦ Rejects rational systems approach, focus on disorder, how
human beings ‘invent’ their worlds, on complex employment
relationships, flexible, fluid, free-flowing structures with
ability to change quickly in response to new demands
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Read chapters related to structure
◦ Mullins 2010, 9th edition, part 5, chapters 14, 15, (10th
edition, chapters 13, 14)
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Select case organisation (own or other) you would
like to work with throughout the module and in
the assignment
◦ start researching it
Source:
Mullins, L. J. (2010/2013) Management & Organisational
Behaviour, Ninth Edition. Prentice Hall Financial Times /
Pearson