Organisational Behavior Notes Essay

Custom Student Mr. Teacher ENG 1001-04 3 November 2016

Organisational Behavior Notes


* The study of human behaviour, attitudes and performance within organisational setting to improve performance and differences. * Frameworks of theories, methods and principles from disciplines such as psychology, sociology, political * The organisational Iceberg

The study of organisational behaviour embraces, therefore an understanding of
* The nature and purpose of the organisation
* The human element and behaviour of people
* Business strategy, organisational processes and the execution of work
* The process of management as an integrating and co-ordinating activity
* Social responsibilities and business ethics

* The external environment of which the organisation is part of and
* The need for organisation success and survival.

The Pyschological Contract

* The PC is not a formal written document that is referred to but a people organisation relationship where mutual expectations and satisfaction of needs are implied.
* Important to enhance the level of trust and teamwork.
* Human capital to be seen as a responsibility and a resources to be added to
* Two observations in human behaviour at work
* Peter Principle
* Parkinson’s law


The pyschological contract: possible examples of individual and organisational expectations
Individual’s expectations of the organisation
* Provide safe and hygienic working conditions.
* Make every reasonable effort to provide job security.
* Attempt to provide challenging and satisfying jobs, and reduce alienating aspects of work. * Adopy equitable human resource management policicies and procedures. * Respect the role of trade union officials and staff representatives. * Consult fully with staff and allow genuine participation in decisions which affect them. * Implement best practice in equal opportunity policies and precedures. * Reward all staff fairly according to their contribution and performance. * Provide reasonable opportunities for personal development and career progression. * Treat members of staff wit respect.

* Demonstrate an understanding and considerate attitude towards personal problems of staff.

Organisation’s Expectations of the Individual
* Uphold the ideology of the organisation and the corporate image. * Work diligently in pursuit of organisational objectives. * Adhere to the rules, policicies and procedures of the organisation. * Respect the reasonable authority of senior members of staff. * Not to take advantage of goodwill shown by the management. * Be responsive to the leadership influence.

* Demonstrate loyalty, respect confidentiality and not betray positions of trust. * Maintain harmonious relationships with work colleagues. * Not to abuse organisational facilities such as email or internet access. * Observe reasonable and acceptable standards of dress and appearance. * Show respect and consolidation to customers and suppliers. A pyshcological contract is not only measured in monetary value or in exchange of goods or services, it is in essence the exchange or sharing beliefs and values, expectations and satisfactions. Mutuality is the base principle of the pyshcological contract and consensus or mutual understanding is the basis of mutuality.

Ideally therefore self-interest should be balanced with common interest in a win-win arrangement. In the past this unspoken contract might have implied that employees could expect job security and adequate rewards from their employer in exchange for hard work and loyalty. Today’s pyshological contract may be different, in line with a changed working environment that includes factors such as increased rationalism, technological changes, and management aproaches such as outsourcing. The new pyschological contract may revolve more around an employer’s willingness to assist you in developing your skills to order to maintain your marketability.

The Peter Principle

This is concerned with the study of occupational incompetence and the study of hierarchies. In a hierarchy every employee tends to rise to their level of incompetence. Employees competence in their postion are promoted and competence is each new position qualifies for promotion to the next highest posotion until a position of incompetence is reached. The principle is based on perceived incompetence in all levels of every hierarchy political, legal, educational and industrial and ways in whcih employees move upwards through a hierarchy and what happens to them after promotion.

Peter suggests tow main means by which a person can effect their promotion rate. “Pull and push”. * Pull is an employee’s relationship – by blood, marriage and acqaintance – with a person above the employee in the hierarchy. * Push is sometimes manifested by an abnormal interest in study, vocational training and self-improvement. In small hierarchies push may have a marginal effect in accelerating promotion; in larger hierarchies the effect is minimal. Pull is therefore, likely to be more effective than Push.

Parkinson’s Law

A major feature of PL is that of the rising pyramid, that is “Work expands so as to fill the time available for its completion. There is little, if any, relationship between the quantity of work to be done and the number of staff doing it. Underlying this tendency are two statements; * An official wants to multiply subordinates, not rivals

* Officials make work for each other
What is driving leaders & organisations behaviour?
* The continuous importance that consumers base on value of product and service. * The diverse workforce is also an important factor that drives organisational behaviour. * Consumers expect that organisation understands their needs and produces top quality products at best price possible. These demands place leaders in a challenged situation by domestic and global markets and competition.
What are organisational factors?

* Organisational factors may be identified as the organisational environment, structure & design
* Individual characteristics, group behaviour
* Overall decision making
* The change processes adopted by the organisation
The fast momentum in any industry highlights the importance of the leader to align the human resources with the organisational factors.
Framing the Organisational behaviour
Organisational behaviour may be studied under the following main contributors
* The environment
* The individual in the organisation
* Group behaviour and interpersonal influence
* Organisational process

Organisational environment is the external and internal environment, the legal and political constraints, economic, technological changes and development all have an impact on the decisions that are taken by the management. The individual is the foundation of the organisation performance. This should therefore highlight the importance of managing individual behaviour at any level of the organisation. There are 3 important influences that mould the individual behaviour.

1. Individual characteristics
2. Individual motivation
3. Rewards

Group behaviour

Groups may form either intentionally by managerial decisions or form out of individual efforts. * Formal groups are groups that were intentionally created by managerial decisions * Informal groups are groups that form out of common interests and friendships that may have a negative or positive effect and therefore affect the organisation or individual performance. * Organisational processes are the communication, the decision making and the leadership elements that the organisation fosters as part of its culture and which in turn have an impact on the general performance of the individual and collective behaviour.

Factors of organisation process

Communication process is the ability of management to receive, transmit and act on information. The information integrates the internal activities with the external demand and information also integrates internally the activities of the organisation.

Decision making process

Decisions by managers have a direct impact on the employees well being, the organisation’s resources and the design and implementation of rules in a organisation. This should illustrate the importance of managers to communicate, assess and analyse the feedback of decisions and practises in the organisation.

Leadership process

Leaders in an organisation may be managers and non- managers. The manager may not always be the leader, yet leadership skills contribute in attaining the set goals. Some people believe that leadership styles should vary according to the situation, other believe that one style of leadership is effective in most situations.

Importance of effectiveness

* Surviving in the environment
* Organisation ages- it forms, develops, matures and declines

Importance of the Dimension of Time

Quality, productivity, efficiency, satisfaction, adaptiveness and development are 6 general categories of effectiveness criteria. Each of the categories have a time base, short run criteria – 1 year, intermediate 5 years, long run are those for which the indefinite future is applicable. Personality Individual difference and work behaviour

* Individual differences have a direct effect on behaviour because peole who perceive things differently behave differently. * Individual differences shape organisaitional behaviour and consequently, individual and organisaitional success.

What is the ASA framework?

This is the attraction- selection-attrition to careers and organisations. * Prospective employees are attracted to careers and organisations. * Organisations elect employees on the basis of the needs of the organisation. * Attrition occurs when individuals discover that they do not belong to the organisation. Studying individual differences at the work place is important since not addressing differences among employees may hinder from achieving organisation and personal goals.

Understanding work behaviour

Inorder to fully understand where individual differences arise the personal environment also needs to be given attention, weight and considered. Heredity factors are also important.

An effective management must;

* Observe and recognise the dufferences and
* Study relationship between variables that influences individual behaviour.

For discussion

* What are the variables at work? * Give examples of work behaviour. Can you think of how these may be fostered on connected? The following variables impact employee productivity, creativity and performance extensively; * Heredity factors and diversity

* Abilities and skills
* Attitudes
Heredity factors

Gender, race and ethnic background are all heredity factors, mental and moral differences are also influenced by genetic inheritance and such factors mould each individual which in turn have a direct effect at work behaviour.

1.a Diversity

* Diversity refers to those attributes that make people different from another. Primary dimensions of diversity include age, ethicity, gender, pyshical attributes, race and sexual orientation. When an employee is harassed as a resukt of diversity, due to isolation they become less enthusiastic in their job. * Managing diversity therefore ensures that employees become top level contributors especially in today’s … Abilities and Skills

* Ability is a pesson’s talent to perform a mental or pyshical task. * Skill is a learned talent that a person has acquired to perform a task. * Ability tends to be stable over time while skill tends to change according to training and experience. One needs ability to be a sales executive (appearance and manners are important) yet one may attain skills with years of experience in sales.

* Mental ability therefore refers to the level of intelligence including comprehension, indicative or deictive reasoning, body language, associative memory etc. * Tacit knowledge is the work related to practical know how of the employees acquired eitehr through observation or direct experience on the job. Emotional intelligence – When you probe people to get to know them more * It is important that managers assess and attest abilities and skills snice no amount of leadership and motivation can make up for such deficiencies- job analysis therefore becomes important. * Job analysis is the process of defining and studying a job interms of tasks and behaviour and specifying responsibilities, education and training needes to perform a job – therefore removes guess work when recruiting.


Attitudes are deteriments of behaviour because they are linked with perception, personaility, fdeelings, etc therfore has a certain amount of importance to the managers.

Attitudes are

* Learned

* Define one’s predeposition towards a given aspect or situation

* Provide the emotional basis of one’s interpersonal relations and identifications with other

* Attitudes are close to the core of personaility

* Some attitudes are persistent and enduring while others are liable to change over time. Changing attitudes at the workplace

How can a manager change attitudes of his employees?

The process depends on three main factors / contributors
1. The Communicator
2. The Message
3. The Situation
The Communicator
* If the communicator is trusted and the employees perceive the manager as having prestige, they are more likely to change their attitudes. Employees change because they try to identify with a liked communicator and tend to adopt attitudes and behaviour of the liked individual. * A manager with a low prestige is not show respect / trust by peers and superiors – therefore more difficult to change attitudes of his team.

The Message

* Intentional and unintentional messages are delivered through verbal and no nverbal communication by managers. * The message delivered to employees has to be clear, understandable and convincing. * Developing persuasive verbal and non verbal communication skills is essential to managers.

The Situation

* The managers success in delivering a change in attitude also depends on the situation when the message is being delivered. * Distraction and pleasant surroundings are two factors that facilitate change in attitude (perks, performance allowance, training opportunities…)

Is job satisfaction an attitude?

Job satisfaction results from the perception of the job itself and the degree which there is a good fit between the individual and the organisation Factors to consider
* Pay – not just the pay but the perceived fairness. * The work itself – are job tasks considered interesting? Do they provide opportunities for learning and accepting further / higher responsibilities? * Supervision – technical competence and interpersonal skills of the immediate boss. * Co workers – extent to which co workers are friendly, competent and supportive.

Advancement opportunities – availability of opportunities

Work conditions – the physical work environment is comfortable and supportive of productivity. Job security – it is reasonable expectation that one’s position is secure and contured employment within the organisation. Job relation in relation to Job performance on Effectiveness Are these 2 factors related or dependant on each other?

* Attempts by management to satisfy employees may not mean higher performance while high performance may not mean that the employers are satisfied at work. * Discuss the ripple effects of rewards, warnings, absenteeism, fair promotion etc. That these have on job performance in general. Effect on OC


Personality refers to a relatively stable set of feelings and behaviour that have been significantly formed by genetic and environmental factors. * The manager attempting to understand his employees must give attention to the major forces that shape personality. * Cultural forces, heredity, family, relationship and social class are all factors that mould personality. How? * Culture – society, institutes various pattern behaviour with the result that members of a culture have common personality characteristics. * Heredity – varies from personality to another but are not constant since it is associated with values or ideals (temperament)

* Family relationships – the experience one has with his parents, grandmothers, other family members / life experiences. * Social class – influences one’s self perception, perception of others, of work, of authority of money factor. * Personality is therefore a product (a number of forces that together have attributed to shape the unique individual). Personality is interrelated with perception, attitudes, learning and motivation – therefore analysis behaviour is incomplete unless personality is considered.

Personality and Behaviour in Organisations

The big five Personality Dimensions is key in understanding organisational behaviour.
1. Extroversion (Open minded, sociable, etc)
2. Emotional (Stability)
3. Agreeableness (More open to people, challenges and change) 4. Conscientousness (to understand your people’s attraction) Other three major factors are:

Locus of control

This relates to the extent to which employees believe that their behaviour will influence what happens to them. (Differing personalities of Internals
& Externals).

Self efficacy
Personal beliefs of competencies and abilities. This has an impact on Org behaviour and decisions like selection, training programmes and goal setting and performance.

This is a personality trait that requires deviation from the normal thinking to produce new and useful ideas. (Think in an unconventional way). While a personality factor of the individual organisations play an important role to develop creativity at work by giving opportunities and freedom to think and come forward with new ideas. Reward winning ideas and discuss failures positively to nourish creativity all round.

The Importance of Culture
National Culture is the sum total of the beliefs, rituals, rules, customs, artefacts and institution that characterise the population. How organisational transactions are conducted is affected by nation’s culture and its subcultures. Values, customs and rituals of cultures do not simply appear. They are revolutionary and are influenced by politics, religion, language and cultural aspects.

Managing in the 21st century
For effective management understanding different cultures and various organisational cultures is important in the 21st century. ../9

Adaptation to new environment is becoming a common occurrence and although adaptation from one origin to another is always difficult, it can be better understood by learning about organisational culture.

Organisational Culture
Organisational culture is the shared values, norms, beliefs and norms which influence the way employees think, feel and act towards others inside and outside the organisation.

OC gives unique identity to an organisation
Although culture cannot be seen, it can be sensed and felt through a person’s attitudes, emotions and perceptions. “The way we do things around here” Deal and Kennedy 1982 “The collective programming of the mind”, Geert Hofstede 2001. Hostede identified four dimensions of culture: power distance, uncenrtainty, avoidance, individualism and masculinity. Power distance is essentially used to categorise levels of inequity in organisations which Hofstede claims will depend upon managment style, willingness of subordinates to diasgree with superiors, and the educational level and status accruing to particular roles. Uncertainty avoidance refers to the extent to which members of a society feel threatened by unusual situations.

High uncertainty avoidance is said to be characteristic in France, Spain, Germany and many Latin American societies. Individualism describes the relatively individualistic or collectivisit ethic evident in that particular society. The USA, France and Spain display high individualism. Masculinity refers to a continuum between masculine charactertistics such as assertiveness and competitiveness, and feminine traits such as caring, a stress upon the quality of life and concern with the environment.

Can organisational culture be created by management?

* Ann Cunliffe (2008) states that OC is important for 4 reasons
*Slaps the image that the public has as an organisation
* Influences organisational performance
* Provide direction to the company
* Help to attract and retain motivated staff

Creating the desired OC may be difficult since imposing a particular culture may not be met with resistance. Why? Is disparity between what the management states as values and the reality with the employee an issue? What organisational factors may be attributed to the development of a desired OC? Communication is an organisational factor that is an important factor is developing and fostering an OC Why? Discuss with example?

Communicating top down only leaves management out of touch from the real situation and may lead to a gap in culture that management wants to create another culture that actually develops. Uncover the levels of cultures

Artefacts – Visible organisational structures and processes (had to decipher). Annual report, newsletter, furnishings are examples of artefacts. Espoused Values – Strategies, goals, philosophies (espoused justifications). Assumptions that tell individuals how to perceive, think and feel about work, human relationships and performance of colleagues. Basic underlying assumptions – Unconscious taken for granted beliefs, perceptions, thoughts and feelings (ultimate sources of values and actions). Summary with examples of Schein’s three levels of culture

* Surface manifestation of culture – most accessible forms which are visible and audible behaviour patterns and objects (observable culture, send a message) * Organisational values – the accumulated beliefs held about how work hold be done and situations dealt with that guide employee behaviour ( be honest, be creative, work hard) * Basic assumption – invisible perceptions, taken for granted understandings, held by individual with an organisation concerning behaviour, the nature of reality and its relationship to its environment (stability, excellence, quality and responsibility).

Where does OC come from?

Values are the basic element that distinguishes one organisation from the other. Changing organisation structure and its process will mean a change in values and therefore a change in culture. Why? Discuss the difference on a change from tall hierarchy to a change in flat hierarchy.

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