Management of Organisational

Behaviour(MSM612)

BY: DR. WILLIAM MAKUMBE

+263 713 803 275/+263 773 516 104
 Organisation Behaviour Overview
General Introduction 1. The Individual
There is a growing awareness that the Organisations are made up of their individual
success of our organisations largely depends members who are important features of
directly on effectively leading human organisational behaviour. It is the role of
resources management to integrate the individual needs &
the organisational goals so that objectives are
What is Organizational behaviour? : achieved.
Definition 1 2. Groups
A field of study that investigates the impact Groups exist in all organisations and are
that individuals, groups, and structure have essential to their working and performance..
on behaviour within organisations , for the Groups can have a major influence on the
purpose of applying such knowledge toward performance of individual members.
improving an organisations effectiveness 3. Structure
(Robbins & Judge,2013) Structure is created to establish relationships
Definition 2 between individuals and groups. The focus of
attention is on the impact of organisation
It is the study and understanding of structure and patterns of management on the
individual and group behaviour and patterns behaviour and actions of people
of structure in order to help improve 4. Environment
organisational performance and The organisation functions as part of the broader
effectiveness( Mullins,2010) external environment . Globalisation,
What influences Behaviour in technological advancement, economic activity,
Organisations? social and cultural influences and governmental
 The environment, the individual, the group
actions influence the performance of an
organisation.
and the structure of the organisation.
 Organisational Behaviour Overview

Individual Environment
1.Attitudes 1.Internal Environment
2.Emotions & Moods 2.External Environment
3.Motivation
4.Personality

The
Organisation
Effectiveness

Structure
1.Chain of command
2.Specialisation
3.Authority

Group
1.Group Behaviour
2.Conflict
3.Leadership
4.Team Behaviour
The Managerial Landscape
 The 4IR/Industry 4.0

The Fourth Industrial Revolution (4IR) is a term

coined in 2016 by Klaus Schwab, Founder and
Executive Chairman of the World Economic Forum
(WEF).
It is characterized by the convergence and
complementarity of emerging technology domains,
including nanotechnology, biotechnology, new
materials and advanced digital production (ADP)
technologies.
 The Fourth Industrial Revolution

 Industry 4.0 refers to the development of a collection

of advanced technologies (3D printing, robotics,
biotech, quantum computing), enhanced
communications networks, and new production
management know-how.
 This implies major disruptions in the economics of
design, manufacturing, and delivery, with dramatic
improvements in productivity via cost reductions
and increases in the quality of outputs.  
 The Fourth Industrial Revolution

Advanced production systems(ADP) include 3D

printing, human-machine interfaces (HMIs) and
artificial intelligence, and is already transforming the
global industrial landscape.
Incorporating ADP technologies into industrial
production processes has given rise to the concept of
Industry 4.0, also known as the Smart Factory – one
that learns as it works, continuously adapting and
optimizing its own processes accordingly.
 The Fourth Industrial Revolution

The First Industrial Revolution was triggered by the

invention of the steam engine in the 18th century,

The Second in the 19th century was powered by

widespread electrification, and

The Third, in the 1960s, was chiefly the product of

advances in computing.
 The Fourth Industrial Revolution

Although 4IR is also the product of technological

advances, it is uniquely marked by a blurring of the
boundaries between the biological, the physical and
the digital realms.
Machines ‘speak’ to each other through:
 the internet of things,
 processes respond to intelligence devised by
algorithms, and
 humans engage in real-time ‘conversations’ with
mechanical processes through bidirectional interfaces.
 4IR Technologies

 The Internet of Things

The Internet of Things (IoT) describes the network of
physical objects—“things”—that are embedded with
sensors, software, and other technologies for the
purpose of connecting and exchanging data with
other devices and systems over the internet. These
devices range from ordinary household objects to
sophisticated industrial tools
Examples: Shipping container and logistics tracking,
Biometric cybersecurity scanners
 4IR Technologies

Artificial Intelligence
Artificial intelligence (AI) refers to the simulation of
human intelligence in machines that are programmed
to think like humans and mimic their actions. The term
may also be applied to any machine that exhibits traits
associated with a human mind such as learning and
problem-solving.
A subset of artificial intelligence is machine learning,
which refers to the concept that computer programs can
automatically learn from and adapt to new data without
being assisted by humans.
 4IR Technologies

APPLICATIONS OF AI
 Artificial intelligence also has 
applications in the financial industry, where it is used to
detect and flag activity in banking and finance such as
unusual debit card usage and large account deposits—all
of which help a bank's fraud department.
 Other examples of machines with artificial intelligence
include computers that play chess and self-driving cars.
Each of these machines must weigh the consequences of
any action they take, as each action will impact the end
result
 4IR Technologies

Robotics, 
design, construction, and use of machines
(robots) to perform tasks done traditionally
by human beings. Robots are widely used in such
industries as automobile manufacture to perform
simple repetitive tasks, and in industries where work
must be performed in environments hazardous to
humans.
 4IR Technologies

APPLICATIONS OF ROBOTICS
Robots can assist law enforcement with bomb
detection and deactivation.
Cloud computing
is the delivery of computing services—including
servers, storage, databases, networking, software,
analytics, and intelligence—over the Internet (“the
cloud”) to offer faster innovation, flexible resources,
and economies of scale.
 4IR Technologies

Cloud Computing
Instead of buying, owning, and maintaining physical data
centres and servers, you can access technology services,
such as computing power, storage, and databases, on an
as-needed basis from a cloud provider such as Amazon
Web Services (AWS) or any other provider
Organizations of every type, size, and industry are using
the cloud for a wide variety of use cases, such as data
backup, disaster recovery, email, virtual desktops, software
development and testing, big data analytics, and customer-
facing web applications.
 4IR Technologies

NANOTECHNOLGIES
BIOTECHNOLOGIES
 INDIVIDUAL ASSIGNEMNT

The adoption of advanced digital production systems

has been sluggish in African businesses. Why is this
so? Support your position. (25 Marks). Due Date : 15
April 2022
Major Changes confronting managers

1. Increased emphasis on organisational and

managerial ethics
oManagers are being pressurised to manage
ethically
oThis include being accountable to the
stakeholders
Major Changes confronting managers

2. Increased competitiveness
oThis comes from emphasising customer service
Its now the responsibility of everyone in the
organisation to excite or delight the customer
Its not the responsibility of marketers alone
For survival in todays environment we need high
quality customer service
Major Changes confronting managers

o Increased competitiveness also comes from

innovation
 Innovation includes the development of new
products, markets and processes.
 This is very important in surviving the cut
throat competition associated with globalisation
Major Changes confronting managers

3. Globalisation
The breakdown of traditional boundaries to trade
leading to stiff competition in domestic markets
What does globalisation bring?
oDiversity of employees
oDigitalisation
ocompetition
Major Changes confronting managers

4. Changing security threats

oRisk management – especially cyber threats
Major Changes confronting managers

5. Changing technology
oTechnology is changing rapidly leading to digital
workplaces.
oTechnological changes are also leading to
flexible working arrangements including a more
mobile workforce
oVirtual workplaces
6.Power is shifting from sellers to buyers
Powerful modern customers whether
individual consumers or corporations want more.
They want more products for less money or more
quality and service, more flexibility and convenience
and more innovation
 The Managerial Landscape

7)Workforce Diversity
Today's organizations employ people from diverse backgrounds.
Today’s workforce is different in terms of race, gender, age & other
characteristics. Managers now must have the ability to coordinate the
work efforts of different people with the organization. Faced with
workforce diversity , managers must make their organizations more
accommodative to diverse groups of people by addressing different
lifestyles, family needs, and works styles.
8)Entrepreneurship
It involves discovering opportunities and the resources to exploit
them. Today's organizations need to be entrepreneurial in their
approach to business. In order for businesses to be successful there is
need for management to pursue opportunities, be innovative and
always be on the growth trajectory.
 The Managerial Landscape

9)Learning Organizations & Knowledge Management.

Today's managers face an environment in which change takes place at
an unprecedented rate. Constant innovations in information and
computer technologies combined with globalization of markets have
created a chaotic business world. Today's world is no longer stable &
predictable, successful organizations of the 21st century therefore
should be able to learn and respond quickly to the ever changing
environment. Management must cultivate a learning culture within the
business. Members of the organization should be able to gather
knowledge and share it with others in the organization so as to achieve
a better performance .( knowledge management)
 The Managerial Landscape

10)Sustainability
It is the companies ability to achieve its business goals & increase long
term shareholder value by integrating economic, environmental and
social opportunities into its business strategies. Sustainability issues
are now moving up the agenda of business leaders and the boards of
thousands of companies. Green issues such as deforestation; global
warming; depletion of the ozone layer; toxic waste; food safety, and
pollution of land, air, and water have gone mainstream. Managers are
challenged to develop innovative ways to make a profit without unduly
harming the environment in the process.
 The Managerial Landscape

11) Quality Management: The emphasis on quality has evolved through four
distinct stages —
1.The fix-it-in approach to quality Rework any defective products identified by
quality inspectors at the end of the production process.
2. The inspect-it-in approach to quality
Have quality inspectors sample work in process and prescribe machine
adjustments to avoid substandard output.
3 The build-it-in approach to quality
Make everyone who touches the product responsible for spotting and correcting
defects. The emphasis is on identifying and eliminating causes of quality problems.
4.The design-it-in approach to quality
Intense customer and employee involvement drives the entire design-production
cycle. The emphasis is on continuous improvement of personnel, processes, and
product.
Progressive managers are moving away from the first two approaches and toward
the build-it-in and design-it-in approaches
 ORGANISATION CLIMATE

 Castro and Martins (2010) define organisational

climate as the shared perceptions, feelings and
attitudes that organisation members have about the
fundamental elements of the organisation.
 Mullins (2010) who stated that organisational
climate reflects prevailing atmosphere surrounding
the organisation, the level of morale, and the
strength of feelings or belonging, care and goodwill
among organisation members.
 ORGANISATION CLIMATE

In line with Castro and Martins, (2010) view that

organisation climate is concerned with employee
perceptions towards an organisation, McMurray
and Scott (2013) classified the perceptions
employees are likely to have towards
organisation practices into eight major
categories. These perceptions reflect the general
employee experience and feelings with regards to
organisational practices. The table below highlights
the eight major perceptions:
 ORGANISATION CLIMATE

Perception Category Description

INNOVATION The perception that change and creativity are
encouraged at the workplace.
AUTONOMY The perception of self-determination with respect to
work procedures, goals and priorities.
COHESION The perception of togetherness or sharing within the
organisation setting including the willingness of
members to provide material aid.
TRUST The perception of freedom to communicate openly with
members at higher org levels about sensitive or
personal issues with expectations that the integrity of
such communications will not be violated.
PRESSURE The perception of time demands with respect to task
competition and performance standards
SUPPORT The perception of tolerance of member behaviour
including willingness to let members learn from their
mistakes.
 ORGANISATION CLIMATE

Perception Category Description

Recognition The perception that member’s
contributions in the organisation are
acknowledged.
Fairness The perception that member contributions
in the organisation are acknowledged.
 ORGANISATIONAL CLIMATE- WHY
IMPORTANT?

Group 1 to work on this!

 DIVERSITY MANAGEMENT

The concept of diversity includes acceptance and

respect. It means understanding that each individual is
unique, and recognizing our individual differences.
These can be along the dimensions of race, ethnicity,
gender, sexual orientation, socioeconomic status, age,
physical abilities, religious beliefs, political beliefs, or
other ideologies.
It is about understanding each other and moving
beyond simple tolerance to embracing and celebrating
the rich dimensions of diversity contained within each
individual.
 DIVERSITY MANAGEMENT

According to Patrick and Vincent(2012) diversity

management is a process intended to create and
maintain a positive work environment where the
similarities and differences of individuals are valued.
Workplace diversity refers to the variety of differences
between people in an organization. That sounds simple,
but diversity encompasses race, gender, ethnic group,
age, personality, cognitive style, tenure, organizational
function, education, background, and more
 ENHANCING DIVERSITY

1. Diversity Staffing
Similarity – Attraction paradigm – Consistent with
this theory - people are attracted to organisations
whose recruiters match their own characteristics.
Diversity staffing studies have shown demographic
similarities between recruiters and applicants to
positively influence applicant attraction and selection
decisions(Roberson,2018)
The implication is that managers must come up with
recruitment teams that match the potential applicants.
 ENHANCING DIVERSITY

2. Diversity Training
A considerable body of literature has examined
diversity training as an intervention for addressing
bias, improving diversity attitudes, and facilitating
positive intergroup relations in the workplace
(Wentling & Palma-Rivas 2000).
 ENHANCING DIVERSITY

3. Mentoring
To facilitate integration into organizational networks
and equal opportunity for advancement, formal
mentoring programs for women and minority
employees has become a common form of career
development (Creary & Roberts 2017). Through
mentoring knowledge can be transferred to minority
employees and women so that they occupy senior
positions in organisations.
 ENHANCING DIVERSITY

4. Work- Life balance mechanisms

Successfully managing work life balance helps to develop
positive attitudes towards work and other employees.
This helps social interaction at the work place which
crucial in managing diversity issues.
5. Inclusion
This involves creating social environments that support
diversity. This can involve participative decision making.
If employees views are sought in critical decisions they
develop a sense of belonging to the organisation
 DIVERSITY MANAGEMENT- THE
BARRIERS

Prejudice: an unfair and unreasonable opinion or feeling,

especially when formed without enough thought or
knowledge; an unjustified negative attitude toward a
person based on his or her membership in a particular
group
Ethnocentrism: a tendency to regard one’s own
group, culture, or nation as superior to others
Stereotypes: a fixed idea about what a particular
type of person is like, especially an idea that is wrong; a set
of beliefs about a group that is applied universally to all
members of that group
 DIVERSITY MANAGEMENT – THE
BARRIERS

Blaming the victim: Phenomenon in which victims of

crimes or tragedies are held accountable for what
happened to them
Discrimination: barring an individual from
membership in an organization or from a job because
of his or her membership of a particular group.
Harassment: consciously shunning verbally or
physically abusing an individual because of
membership in a particular group
 DIVERSITY MANAGEMENT – BARRIERS
TO DIVERSITY

Backlash: negative reaction to members of previously

underrepresented groups gaining power and influence
Workforce Diversity: Why important in an
Organisation?
 The Individual in the Organisation

Employee Job Attitudes

Robbins (2003) defined attitudes as evaluative statements and they can be either
favourable or unfavorable-concerning objects, people, or events. Job attitudes
therefore refer to ffeelings towards the job. It can either be favourable/unfavourable
as pointed out earlier.
MAJOR JOB ATTITUDES
1. Job Satisfaction
Job satisfaction is an affective (emotional) reaction to a job, which stems from the
incumbent's comparison of actual outcomes with the required outcomes (Cranny,
Smith & Stone, 1992) – It results from the employees perception about the job
content and context and what the job actually provides to an employee.
2. Job Involvement
Refers to the degree to which employees identifies psychologically with their job and
consider their perceived performance level important to self worth. Employees with
a high level of job involvement strongly identify with and really care about the kind
of work they do.
 The Individual In The Organisation

3. Organisational Commitment( OC)

The degree to which an employee identifies with a particular organisation & its
goals and wishes to remain a member. Meyer & Allen(1997) identified 3
extensions of OC:
3. Affective commitment: which represents the individual’s emotional attachment to the
organisation. According to Meyer and Allen (1997, p 11) affective commitment is “the
employee’s emotional attachment to, identification with, and involvement in the
organisation”. Organisational members who are committed to an organisation on an
affective basis, continue working for the organisation because they want to (Meyer &
Allen, 1991)
4. Continuance commitment: which represents the individuals awareness of the costs
associated with leaving the organisation( Meyer and Allen ,1997 p 11) . It is calculative in
nature because of the individual’s perception or weighing of costs and risks associated
with leaving the current organisation (Meyer & Allen, 1997). The individual's association
with the organisation is based on an assessment of economic benefits gained (Beck &
Wilson, 2000)
 The Individual in the Organisation

c) Meyer and Allen (1997, p 11) define Normative commitment as “a feeling of obligation
to continue employment”. Organisational members are committed to an organisation based
on moral reasons (Iverson & Buttigieg, 1999). The strength of normative organisational
commitment is influenced by accepted rules about reciprocal obligation between the
organisation and its members (Suliman & Iles, 2000). The reciprocal obligation is based on
the social exchange theory, which suggests that a person receiving a benefit is under a strong
normative obligation or rule to repay the benefit in some way (McDonald & Makin, 2000).

4. Intention to Quit is defined as an ‘individual’s own estimated probability

(subjective) that they are permanently leaving the organisation at some point in the near
future” (Vandenberg & Nelson, 1999, p. 1315).
5. Organisation Citizenship Behaviour
Organ (1990) defined OCB as a discretionary behaviour that is neither a
requirement nor rewarded in the formal compensation system, which contributes to the
success of the functioning of the organisation.
 Personality
Personality The big five personality Model
Defined as the sum total of ways in which an The following are the Big five factors:
individual reacts to and interacts with others. 1. Extraversion – captures our comfort level with
Frameworks for identifying & classifying relationships. Extraverts tend to be assertive,
traits sociable & gregarious. Introverts tend to be
The models are used to predict the behaviour of reserved, timid & quiet.
individuals. 2. Agreeableness – refers to an individuals
The Myers-Briggs Type Indicator ( MBTI) propensity to defer to others. Highly agreeable
According to this framework individuals are people are cooperative, warm & trusting. People
classified as being : who are low on agreeable are antagonistic.
1. Extraverted (E) versus Introverted( I) 3. Conscientiousness – This is a measure of
reliability. A highly conscientious person is
Extraverted individuals are outgoing ,sociable responsible, organised , dependable and
and assertive. Introverts are quiet & shy. persistent.
2. Sensing ( S) versus Intuitive (I) Sensing types are 4. Emotional Stability/Neuroticism – a person’s
practical and prefer routine and order. Intuitive ability to withstand stress. People with positive
look at the big picture emotional stability tend to be calm, self confident
3. Thinking ( T) versus Feeling( F) .Thinking types & secure. Negative scores exhibit people who are
use reason and logic to handle problems. Feeling nervous, anxious & insecure
types rely on their personal values and emotions. 5. Openness – Extremely open people are creative,
4. Judging ( J) versus Perceiving (P).Judging types curious & sensitive
want to control and prefer their world to be
ordered and structure. Perceiving types are
flexible & spontaneous.
 How the Big 5 influence OB

The Big 5 1.Incrreased learning

2. More creative
O 3.More flexible
C .
1 Better organised &
planning
2. More drive &
discipline
Greater effort &
persistence
1. Better interpersonal skills
E 2. Greater social dominance
3. More expressive

1.Better liked
2. More
A compliant 1. Less negative thinking
N 2. Low stress levels
EMOTIONS,MOODS & ORGANISATIONAL
BEHAVIOUR

TERMS
Emotions: intense feelings directed at someone
Moods: are less intense feelings than emotions
Emotional labour A situation in which an employee expresses organizationally
desired emotions during interpersonal transactions at work
a)Emotional dissonance Inconsistencies between the emotions we feel and the
emotions we project.
b) Felt emotions : An individual’s actual emotions.
c) Displayed emotions: emotions that are organizationally required and
considered appropriate in a given job.
d) Surface acting: Hiding one’s inner feelings and forging emotional
expressions in response to display rules.
e) Deep acting: Trying to modify one’s true inner feelings based on display
rules.
 EMOTIONS ,MOODS IN
ORGANISATIONAL BEHAVIOUR

Emotional Intelligence :one’s ability to detect and to manage emotional cues and information
People who know their own emotions and are good at reading others’ emotions may be more effective in
their jobs. That, in essence, is the theme underlying recent EI research. I is composed of five dimensions :

Self
Social Skills-
Emotional awareness-
ability to handle the Intelligence being aware of
what you are
emotions of others
feeling

Self
Management-
ability to manage your Empathy-
own emotions and
Self ability to sense how
impulses Motivation- others are feeling
ability to persist in
the face of setbacks
& failures
Emotional Intelligence. Does it really matter @ the
workplace?

Group 3 to work on this!

 Emotions, Moods & Organisational Behaviour
52
The causes of emotions & Moods  Stress
 Personality Stressful daily events at work ( a nasty email,
Moods & Emotions have a trait component: an impending deadline , the loss of a big
most people have built in tendencies to sale ,reprimand from the boss) negatively
experience certain moods & emotions more affect moods. Mounting levels of stress can
frequently than others do. worsen moods and lead to more negative
 Day of the week & time of the day emotions.
 Social Activities
People tend to be in their worst moods early
in the week and in their best moods late in For most people ,social activities increase
the week. Positive mood peaks during the positive mood for example physical activities
middle of the day like skiing or hiking with friends
 Sleep
People who are sleep deprived report greater
feelings of fatigue, anger & hostility because
reduced sleep impairs decision making and
makes it difficult to control emotions.
 EMOTIONS & MOODS

 Weather: When do you think you would be in a better mood? When it’s 70
degrees and sunny or when it’s a gloomy, cold, rainy day? Many people believe
their mood is tied to the weather. However, evidence suggests that weather has
little effect on mood. One expert concluded, “Contrary to the prevailing cultural
view, these data indicate that people do not report a better mood on bright and
sunny days (or, conversely, a worse mood on dark and rainy days).” Illusory
correlation explains why people tend to think that nice weather improves
their mood. Illusory correlation occurs when people associate two
events but in reality there is no connection
 Age: Do you think that young people experience more extreme, positive
emotions (so-called “youthful exuberance”) than older people do? If you
answered yes, you were wrong. One study of people aged 18 to 94 years
revealed negative emotions seem to occur less as people get older. Periods of
highly positive moods lasted longer for older individuals and bad moods faded
more quickly. The study implies that emotional experience tends to improve
with age so that as we get older, we experience fewer negative emotions.
 Emotions,Moods & Organisational Behaviour
54
 Exercise Applications of Emotions & Moods in OB
Research consistently shows exercise 1. Selection
enhances peoples positive mood. The Emotional intelligence should be considered
effect is stronger for those who are in hiring employees especially in jobs that
require a high degree of social interaction
depressed.
2. Decision making
 Gender
Positive emotions enhance problem solving
Many believe women are more skills. Depressed people are slower at
emotional than men. Is this true? processing information and tend to weigh all
Evidence does confirm women are possible solutions rather than the most
emotionally expressive than men ,they likely ones
experience emotions more 3. Creativity
intensely ,they tend to hold onto People experiencing positive moods or
emotions longer than men. emotions are more flexible & open in their
thinking ( creative) .Supervisors should
actively try to keep employees happy –
encouraging them and giving them work
feedback.
EMOTIONS,MOODS & ORGANISATIONAL
BEHAVIOUR

4. Motivation – Employees with positive emotions are likely to be motivated.

organizations that promote positive moods at work are likely to have a more
motivated workforce
5. Leadership: The ability to lead others is a fundamental quality that
organizations look for in employees. Effective leaders rely on emotional appeals to
help convey their messages. The expression of emotions in speeches is often the
critical element that makes us accept or reject a leader’s message.
6. Interpersonal Conflict. Whenever conflicts arise between co.workers. A
manager’s success in trying to resolve conflicts, in fact, is often largely attributable
to an ability to identify the emotional elements in the conflict and to get the
parties to work through their emotions. The manager who ignores the emotional
elements in conflicts, focusing singularly on rational and task-focused concerns, is
unlikely to resolve those conflicts.
7. Customer Service: A worker’s emotional state influences customer service,
which influences levels of repeat business and levels of customer satisfaction
 Work Stress Management
SOURCES OF STRESS AT WORK
STRESS  CULTURE OF THE ORGANISATION
 A state of mind which reflects  Lack of communication & consultation

certain biochemical reactions in the Failure by management to effectively

communicate issues affecting individuals
body and is projected by a sense of or the organisation as whole leads to
anxiety ,tension and depression. stress. For example if changes are made
in the organisation without informing
 A persons adaptive response to a those affected .
stimulus that places excessive  A culture of blame when things go
wrong
psychological or physical demands Some seniors managers have culture of
in that person passing the blame to subordinates when
organisational objectives are not achieved .
 The result of a person being pushed  Working for long hours
beyond the limit of his or natural Some organisations expect their employees
capacity (Mullin,2011) to work for long hours & take home their
work. In some instances employees are not
paid adequately for the extra hours.\
?
 Work Stress Management
ROLE ORGANISATION CHANGE
 A role is a set of activities associated  Organisation change brings uncertainty
with a certain position in the especially when there is poor
organisation or in the society. When communication during the change
there is uncertainty regarding job process. Individuals will develop fear
definitions or job expectations then related to job security.
people experience role DEMANDS OF THE JOB
ambiguity .Members of staff can feel  If the work of an individual becomes
that the job requires them to behave in
repetitive it leads to boredom because
conflicting ways. the worker will not be learning anything
SUPPORT AND THE INDIVIDUAL new. Secondly if there is too much
 Lack of support from management & training for the job , a worker can also
co-workers become affected. Thirdly if there role
When management fails to avail the overload that is when work
resources necessary for the requirements become so excessive that
accomplishment of organisational employees feel they do not have
objectives but still expect an employee adequate time or ability to meet the
to achieve the business results. This requirements.
leads to stress.
 Work Stress Management
CONSEQUENSES OF STRESS  Medical Consequences – The medical
INDIVIDUAL CONSEQUENSES consequences of stress affect a persons physical
well being .Heart disease and stroke & other
Stress may produce behaviouaral,psychological
and medical consequences. problems have been linked to stress. Other
common medical problems linked to stress
 Behavioural Consequences – The include headaches and backaches.
behavioural consequences of stress may harm
ORGANISATIONAL CONSEQUENSES
the person under stress or others. One such
behaviour is stress. Research has shown that  Performance – One clear organisational
people who smoke tend to smoke more when consequence of stress is decline in performance.
they experience stress. There is also evidence For workers such a decline can translate into
that alcohol and drug abuse are linked to stress. poor quality work or a drop in productivity. For
Other possible behavioural consequences are managers ,it can mean faulty decision making.
accident proneness, aggression ,violence and  Withdrawal – Withdrawal behaviours result
appetite disorders. from stress. The two most significant forms of
 Psychological consequences – The withdrawal in an organisation are absenteeism &
psychological consequences relate to a person’s quitting. People who having a hard time coping
mental health and well being . When people with stress in their jobs are likely to call in sick or
experience too much stress at work ,they may consider leaving the organisation
become depressed or find themselves sleeping  Attitudes – Job satisfaction, morale and
too much or not enough. Stress may also lead to organisational commitment can all suffer along
family problems and sexual difficulties with motivation to perform at high levels.
 Work Stress Management
STRATEGIES FOR MANAGING STRESS  Time Management
Given that stress is widespread and so potentially it is recommended for managing stress. The idea
disruptive in organisations , it follows that is that many daily pressures can be eased or
people and organisations should be concerned eliminated if a person does a better job of
about how to manage it effectively. managing time. One popular approach of
Individual Coping Strategies managing time is to make a list every morning of
 Exercise things to be done on that day. Work to be done
can be grouped according urgent ,urgent &
People who exercise regularly are less likely to important etc
have heart attacks than inactive people. Research
 Role Management
has suggested that people who exercise regularly
feel less tension and stress are more confident An individual can work to avoid work overload ,
and show greater optimism. People who do not ambiguity & conflict. As for clarity from your
exercise regularly feel more stress & are more supervisor.
likely to be depressed.  Support Groups
 Relaxation A support group is simply a group of family
One way to relax is to take regular vacations. One members or friends with whom a person can
study revealed that peoples attitudes toward a spend time. For example going out after work
variety of workplace characteristics improved with a couple of co workers can help relieve
significantly following a vacation. During normal stress that builds up during the day.
working days , employees need regular breaks.
 Work Stress Management
ORGANISATIONAL COPING (b) Collateral Programmes
STRATEGIES  These are programmes specifically created to
There are two broad mechanisms used : help employees deal with stress.
(a)Institutional Programmes Organisations have adopted stress
These are undertaken through organisational management programs and health
promotion programs for this purpose.
mechanisms. These include :
 Many firms today have employee fitness
 Work Design – An organisation should
make an attempt to match the employee to programmes .These programmes attack
stress indirectly by encouraging employees to
the job he/she doing to make it motivating.
exercise which is presumed to reduce stress
 Work Schedules - Shifts should be
 Career development programmes are also
properly planned and communicated to
used to manage stress as employees acquire
employees so that they also plan accordingly
knowledge that make them promotable.
and take time to relax and take vacation.
 Organisational Culture – An organisation
should foster a culture that reinforces a
healthy mix of work and non work activities
 Supervision – Supervisors should make
work loads reasonable & avoid overloading
their subordinates'.
Motivation

APPLIED CONCEPTS
 Job Design
(can be used to motivate the workforce by changing the work environment)

Job Design When the three states are present an individual feels good
 Is concerned with the relationship between workers and about himself/herself.
the nature & content of jobs and their task The Job Characteristics model further proposes that the
functions( Mullins ,2006) three psychological states above are triggered by five
 Involves revising job descriptions and changing the characteristics of the job referred to as ‘’ Core Job
nature of work so as to induce a higher level of motivation Dimensions’’. The five are:
among workers. It involves alteration of specific jobs in a  Skill Variety: A job should contain a variety of different
manner that would increase both the quality of employees activities which would challenge the workers skills &
work experience as well as their productivity . abilities.
JOB CHARACTERISTICS MODEL  Task Identity: The degree to which the job requires
A framework with guidelines on how redesign jobs effectively. completion of the whole identifiable unit of work from
beginning to end with visible & tangible outcomes.
3 Basic psychological states of the Model .
 Task significance: The degree to which the job has a
The work should satisfy the following states: significant impact on the lives or work of other people
1. Experienced meaningfulness: The degree to which either within the organisation itself or in the outside
the individual experiences and perceives his work to be environment.
meaningful, valuable & worthwhile by some system of  Autonomy: It is the degree to which the job allows the
values that he accepts. worker substantial freedom, independence and discretion
2. Experienced responsibility for the work in scheduling his own work and establishing procedures
outcomes: The degree to which an individual feels to be employed in carrying it out
personally responsible for the outcome of his efforts.  Feedback: It results in the knowledge relating to the
3. Knowledge of the results: The employee must be able outcomes of work activities and is the degree to which
to determine the degree of quality of output of his efforts. the work performance results in the worker obtaining
An employee must receive regular feedback from his direct and clear information about the effectiveness of his
supervisors as to how satisfactory the performance. performance.
 Job Design
The first 3 characteristics contribute to the Personal Outcomes
psychological state of ‘experienced meaningfulness
and the other two contribute towards the state of
‘experienced responsibility ‘ and ‘knowledge of
results ‘respectively . The JCM can be represented
diagrammatically as follows:

1 Skill
variety Experienced High internal work
2 .Task meaningful motivation.
variety
work
3.Task High quality work
significanc performance
e
Experienced High satisfaction with
responsibility work
for work
Autonomy outcome Low absenteeism

Feedback Knowledge of the

actual results of
work activities
 Job Design
Diagrammatic Summary
Managerial Implications
Based on the JCM managers can employ the Skill variety
following strategies to make substantive Task identity
work changes that are most likely to lead to Combine
improvements in each of the 5 dimensions tasks
Task
described above:
identity
1. Forming natural work units: this involves Task
establishing a work unit responsible for specific Natural significance
functions e.g. creating a typing pool for all the work work
coming from the marketing department. This units
contributes to task identity & significance. Skill
2. Combine tasks: This involves management variety
combining existing specialised and fractionalised Client Autonom
Relationshi y
tasks to form a new larger module of work. This
ps Feedback
increases skills variety and task identity.
3. Establish client relationships: Establish direct
relationships with the customers. This increases Vertical
feedback from the client regarding work output. job
Autonomy
4. Vertical Job expansion: Allow workers to set expansion
their schedules and decide on the work methods.
This increases personal responsibility of the work.
5. Open feedback Channels
Feedback
Channels Feedback
 Job Design
INDIVIDUAL APPROACHES TO JOB DESIGN BROADER ORGANISATIONAL
1) Job Rotation APPROACHES TO JOB DESIGN
Moving one person from one job or task to the other. This 1) Quality of working life
adds variety to the job.
2. Job enlargement
It is a broad and flexible strategy rooted in the
Involves increasing the scope of the job and the range of
involvement and participation of people at all
tasks that the person carries out. It is horizontal job levels in the organisation with the ultimate aim
enlargement. It is achieved by combing related of improving organisational effectiveness.QWL
operations also aims at viewing people as assets capable of
3. Job enrichment contributing skills , knowledge and commitment.
It attempts to enrich the job by incorporating motivating Related to QWL is the concept of work /life
or growth factors such as increased responsibility and balance. Workers should have an opportunity to
involvement and also opportunities for advancement. satisfy personal objectives.
This is vertical job enlargement. It gives the person
greater autonomy and authority over the planning, 2) Employee Involvement
execution and control over their own work. Involves the participation of employees in
organisational processes. This is vital because
there will exchange of information ,pooling of
ideas and sharing concerns with employees.
3) Empowerment
Allowing employees a greater say in decisions
that affect them at work lead to job satisfaction
which results in increased business performance.
Managers should relinquish close control of
workers
 Job Design

4. Flexible work arrangements

Moves towards greater flexibility may have noticeable effects on job satisfaction and performance of
staff. The following options are available: staggered hours, compressed working hours, job sharing &
teleworking.
5. Quality Circles
A quality circle is a group of people within an organisation who meet together to identify, analyse and
solve problems relating to quality, productivity or other aspects of day to working arrangements.
6. Self Managed Teams
The jobs are structured for groups rather than for individuals. In self managed teams specific goals are
set for the group but members decide the best means by which these goals are to be achieved. Group
members have greater freedom & choice and wider discretion over the planning , execution and
control of their own work.
 Group Behaviour
GROUP Stage 4 – Performing
Two or more individuals , interacting and The structure is fully functional and
interdependent who have come together to accepted .Group energy has moved from getting
achieve particular objectives. to know and understand each other to
FIVE STAGE GROUP DEVELOPMENT performing the task at hand. For permanent
MODEL work groups, this is the last stage
( TUCKSON & JENSEN MODEL) Stage 5 – Adjourning stage
Stage 1 - Forming Temporary groups such as task forces and
committees go through to the adjourning stage.
It is characterised by a great deal of uncertainty
This is the disbanding stage
about groups purpose, structure ,and leadership .
Members try to determine the types of
behaviours that are acceptable. CRITICISMS
Stage 2 – Storming – This is the stage of  Groups do not always proceed clearly from one
intergroup conflict . Members accept the stage to the next.
existence of the group but resist the constraints it  Sometimes several stages go on simultaneously.
imposes on individuality. There will be conflict
on who controls the group.
Stage 3 – Norming – As conflict and hostility start
to be controlled members of the group will
establish guidelines and standards and develop
their own norms of acceptable behaviour. The
group demonstrates cohesiveness.
 Group Behaviour
GROUP PERFORMANCE FACTORS A homogenous group tends to have less
The performance of any group is affected by conflict, fewer differences in opinion,
several factors other than its reasons for smoother communication and more
forming and the stages of development. interactions. When a task requires
These are: cooperation and speed a homogenous group
 Group composition is desirable. Where the task is complex and
requires a lot of alternatives then a
The composition of a group plays an heterogeneous group is desirable.
important role in determining group  Group Size
productivity. Group composition is often
described in terms of the A group with many members has more
homogeneity( members with similar resources available and may be able to
characteristics) or heterogeneity( members complete a large number of relatively
with different characteristics).Homogenous independent tasks. In groups established to
groups are likely to be productive when the generate ideas those with more members
group task is simple ,cooperation is tend to produce more ideas. Beyond a
necessary & where quick action is required. A certain point , the greater complexity of
heterogeneous group is more likely to be interactions and communication may make it
productive when the task is complex , more difficult for a large group to achieve
requires a collective effort where each agreement. Larger groups are affected by
member does a different task and the sum of social loafing. The most effective size of a
these efforts constitutes group output. group is determined by the group members
ability to interact and influence each other
effectively.
 Group Behaviour
Group Norms
A norm is a standard against which the
appropriateness of a behaviour is judged. By
providing a basis for predicting others
behaviours , norms enable people to behave
in a manner consistent with and acceptable
to the group. Norms help the organisation
survive because those with deviant
behaviour are ejected from the group if the
behaviour affects the accomplishment of
goals.
Group Cohesiveness
It is the extent to which a group is
committed to remaining together. , it results
from forces acting on members to remain in
the group. Highly cohesive groups appear to
be more effective at achieving goals than
groups that are low in cohesiveness
 Group Behaviour

GROUP COHESIVENESS
FACTORS AFFECTING GROUP COHESIVENESS & PERFORMANCE( Mullins (2010) ,9th Edition)
Work
MEMBERSHIP Environment
1.Group size
1.Nature of task
2.Permanence
2.Physical setting
3.Compatibility of
3.Technology
members
Group
Cohesiven
ess &
Performa
nce

Group Development
ORGANISATIO & Maturity
NAL 1.Forming
1.Management & 2.Storming
leadership 3.Norming
2.Personel policies
4.Performing
3.External Threat
 Group Behaviour
Size of the group Physical setting
As a group increases in size, problems arise with Where members of a group work in the same
communications and co-ordination. Large location or in close physical proximity to each
groups are more difficult to handle and require a other this will generally help cohesiveness
higher level of supervision Communications
Compatibility of members The more easily members can communicate
The more homogeneous the group in terms of freely with each other, the greater the likelihood
such features as shared backgrounds, interests, of group cohesiveness. Communications are
attitudes and values of its members, the easier it affected by the work environment, by the nature
is usually to promote cohesiveness of the task and by technology
Nature of the task Management and leadership
Where workers are involved in similar work, Teams tend to be a mirror image of their leaders.
share a common task or face the same problems, The form of management and style of leadership
this may assist cohesiveness. The nature of the adopted will influence the relationship between
task may serve to bring people together when it the group and the organisation and are major
is necessary for them to communicate and determinants of group cohesiveness. In general
interact regularly with each other in the terms, cohesiveness will be affected by such
performance of their duties things as the manner in which the manager gives
guidance and encouragement to the group, offers
help and support, provides opportunities for
participation,
 Group Behaviour
GROUP DECISION MAKING 3) Ambiguous Responsibility
Group Versus the Individual In an individual decision its clear who is
1) Groups generate more complete information accountable for the final outcome. In a group
and knowledge. Be aggregating the resources of decision , the responsibility of any single
several individuals , groups bring more input as member is diluted.
well as heterogeneity into the decision process. 4. Dominant Characters
2) Diversity of views Group discussions can be dominated by a few
More people bring more opportunities to members , if they are low ability members the
consider more approaches & alternatives. overall groups effectiveness can be affected.
3) Acceptance of a solution GROUP THINK AND GROUP SHIFT
Group members who participated in making a Group Think-A situation in which group pressures
decision are more likely to support the decision for conformity deter the group from critically
and encourage others to accept. appraising unusual, minority or unpopular
views. Group think is a disease that affects many
WEAKNESSES OF GROUP DECISION
groups and therefore affect performance
MAKING
Group Shift/ Group Polarisation – The groups
1) More time
decision reflect the dominant decision making
Groups take time to reach a solution norm that develops during a discussion .
2) Conformity to pressures Whether the shift in the groups decision is
The desire by group members to be accepted and toward greater caution or more risk depends on
considered an asset to the group can squash any the dominant prediscussion norm.
overt disagreement.
 Team Behaviour
One of the realities of organisation behaviour  Management costs are often lower when
is that we must work with others to teams are used in a business because
accomplish our aspirations. employee to supervisor ratio can be reduced
TEAM AS A COMPETITIVE STRATEGY to as much as 50 - 1.
Organisations today are under tremendous  Work teams can effectively handle inventory,
pressure to survive in a competitive scheduling ,quality assurance and other
environment. One of the most consistently duties typically reserved for members of
successful strategies to improve performance management.
has been the use of teams & team work. OBSTACLES TO TEAM PERFORMANCE
Benefits of Teams  Team members and management may lack
 Projects assigned to a team are more likely to shared values.
be accomplished than assigned to an  Focusing on a selected problem solving
individual. technique and neglecting others.
 Teams can make practical and reasonable  Lack of leadership skill . If there is lack of
decisions provided there are concrete , providing proactive influence and receiving
measurable goals by which to judge their feedback from team members.
performance and that teams are given timely
& meaningful feedback.
 Working as a team is preferred by many
employees particularly those who resent
being bossed.
 Team Behaviour

TEAM EFFECTIVENESS MODEL( Source: Robbins & Judge – Essentials of Organisation

Behaviour,2013)
Context
Adequate
Resources
Leadership &
Structure
Evaluation &
Reward Systems

Composition
Member ability Team
Diversity Effectiven
Team Size
ess

Process
Specific goals
Conflict levels
Social loafing
 Creating Effective Teams
76
3. Leadership & Structure
TEAM CONTEXT Leadership is critical for team performance. A leader
should ensure that the team focuses its effort on a
1. Adequate Resources singular outcome and also that the workload is shared.
Teams are part of the larger organisation system , every TEAM COMPOSITION
work team relies on resources outside the group to 1. Diversity
sustain it. A scarcity of resources directly reduces the
Diverse teams benefit from differing perspectives'
ability of the team to perform its job effectively &
enabling the team to benefit from varied ideas.
achieve its goals. Examples of resources include:
adequate staffing, equipment, & administrative
assistance. 2. Team Size
Small teams produce better results that large teams.
2. Performance evaluation & Reward Large teams are associated with coordination problems.
systems When teams have excess members ,cohesiveness and
In addition to evaluating and rewarding employees for mutual accountability decline, social loafing increases
their individual contributions , management should and poor communication prevails.
modify the traditional , individually oriented evaluation 3. Abilities of Members
and reward system to reflect team performance. Group Part of a teams performance depends on the
based appraisals , profit sharing ,small group incentices knowledge ,skills ,and abilities of individual members. A
& other system modifications can reinforce team effort team requires the following types of skills
& commitment.
a) Technical expertise – Knowledge to do a job
b) Problem Solving Skills – ability to identify problems &
proffer solutions.
c) Interpersonal skills – feedback, conflict resolution
abilities
 Creating Effective Teams
77
Team Processes Members of successful teams put a tremendous effort in
discussing ,shaping and agreeing on a purpose that
1. Conflict Levels belongs to them both individually & collectively.
Conflict is not bad in an organisation , however
dysfunctional conflict kills team effort.
Relationship conflict – that is conflict based on
interpersonal incompatibilities, tension and
animosity towards others are almost always
dysfunctional. Task conflict however stimulate
discussion , promote critical assessment of
problems & option and can lead to better team
decisions.
2. Specific Goals
Successful teams translate their common
purpose into specific, measurable and realistic
performance goals. Specific goals facilitate clear
communication. They also help teams maintain
their focus on getting results.
3. Common plan & Purpose
Effective teams begin by analysing the teams
mission , developing goals to achieve that
mission and creating strategies for achieving
the goals.
 LEADERSHIP

Due to its complex and variable nature there are many alternative ways of analysing leadership.
One way is to examine managerial leadership in terms of:
 the qualities or traits approach
 the functional or group approach
 leadership as a behavioural category;
 styles of leadership;
 the situational approach and contingency models;
 transactional and
 transformational leadership
 Leadership

Leadership Defined Leadership Approaches

THE QUALITIES OR TRAITS APPROACH

An attempt to use Assumes leaders are born and not made.
influence to motivate Leadership consists of certain inherited
characteristics or personality traits. Focuses
individuals to attention on the person in the job and not on the
job itself. Some of the traits that have been
accomplish some goal. identified are: self-confidence, initiative,
intelligence and belief in one’s actions, but
research into this area has revealed little more
than this. Researchers have not generally
agreed on traits which are common to everyone.
 Leadership

Leadership as a
Styles of Leadership
Behavioural Category

Leadership style is the way in which the OHIO STUDIES

functions of leadership are carried out, the Consideration & Initiating Structure
way in which the manager typically behaves Consideration reflects the extent to which the leader
towards members of the group. The style of establishes trust, mutual respect and rapport with
the group and shows concern, warmth, support and
managerial leader- ship towards consideration for subordinates.
subordinate staff and the focus of power Structure reflects the extent to which the leader
can, however, be classified within a broad defines and structures group inter- actions towards
three-fold heading: attainment of formal goals and organises group
1. Autocratic Leadership activities. This dimension is associated with efforts
to achieve organisational goals. There has to be a
2. Democratic Leadership balance between consideration and structure in
3. Liassez faire order to satisfy both individual needs and
organisational goals.
 A high consideration, high structure style appears
to be generally more effective in terms of
subordinate satisfaction and group performance
 LEADERSHIP

UNIVERSITY OF MICHIGAN STUDIES

Employee Centred & Production Centred Supervision
They concluded that effective leadership display the following characteristics:
 delegation of authority and avoidance of close supervision;
 an interest and concern in their subordinates as individuals;
 participative problem-solving; and
 high standards of performance
The first three are examples of employee centred leadership whereas the last
one is production centred.
Like consideration and structure, employee-centred and production centred
supervision need to be balanced.
 LEADERSHIP

Emerging Approaches To Attributes of Charismatic

Leadership Leadership(Source: J.Conger & R.Kanungo)
COMPONENT CHARISMATIC LEADER

CHARISMATIC LEADERSHIP Relation To Status Quo Essentially opposed to status

Charisma – a Greek word meaning a gift. quo and strives to change it.

Charismatic Leadership – The ability to Likeableness Shared perspective and

idealised vision makes him a
influence the followers based on a likeable and honourable hero
supernatural gift and attractive powers. worthy of identification &
Followers enjoy being with the charismatic imitation
leader because they feel inspired, correct and Expertise Expert in using
important. unconventional means to
transcend the existing order
Environmental Sensitivity High need for environmental
sensitivity for changing the
status quo
Articulation Strong articulation of the
future vision and motivation
to lead.
Power Base Personal power, based on
expertise and admiration for
a unique hero.
Leader-follower Relationship Transforms people tom share
 LEADERSHIP

Transformational
Transactional Leadership
Leadership
When a leader identifies what followers want and prefer Ability to inspire and motivate followers to achieve
and helps them achieve level of performance that results results greater than originally planned and for internal
in rewards that satisfy them. The leader helps the follower rewards. By expressing a vision , the transformational
identify what must be done , to accomplish the desired leader persuades followers to work hard to achieve goals
results : better quality output, more sales or services , envisioned. The transformational leader will overhaul
reduced cost of production. If the results are achieved the entire philosophy ,system and culture of an
then the followers are paid . organisation.
Factors that describe Transformational Leadership
1) Charisma – The leader is able to instil a sense of value,
respect and pride & to articulate a vision
2) Individual attention – The leader pays attention to
followers needs
3) Intellectual stimulation – The leader helps followers
rethink rational ways to examine a situation He
encourages creativity
4) Contingent Reward – The leader informs followers
about what must be done to receive the rewards they
prefer.
5) Management By Exception- The leader r permits the followers
to work on the task and does not intervene unless goals are not being accomplished
in a reasonable time and cost.
Components of Transformational Leadership

Inspirational Intellectual
Motivation Stimulation

Transformational
Leadership

Individualised Idealised
Consideration Influence
Components of Transformational Leadership

Idealized Influence – Provides a role model for high ethical behaviour, instils pride, gains
respect and trust.
Inspirational Motivation – the degree to which the leader articulates a vision that is
appealing and inspiring to followers. Leaders with inspirational motivation challenge followers
with high standards, communicate optimism about future goals, and provide meaning for the
task at hand. Followers need to have a strong sense of purpose if they are to be motivated to act.
Purpose and meaning provide the energy that drives a group forward. The visionary aspects of
leadership are supported by communication skills that make the vision understandable, precise,
powerful and engaging. The followers are willing to invest more effort in their tasks, they are
encouraged and optimistic about the future and believe in their abilities
Intellectual Stimulation – the degree to which the leader challenges assumptions, takes
risks and solicits followers' ideas. Leaders with this style stimulate and encourage creativity in
their followers. They nurture and develop people who think independently.
Individualized Consideration – the degree to which the leader attends to each follower's
needs, acts as a mentor or coach to the follower and listens to the follower's concerns and needs.
The leader gives empathy and support, keeps communication open and places challenges before
the followers. This also encompasses the need for respect and celebrates the individual
contribution that each follower can make to the team.
 LEADERSHIP

Discuss the outcomes of effective leadership in a work

organisation?
 Organisational Power
POWER 3) Legitimate power
Refers to the capacity of management / It represents the formal authority to control and
leadership to influence the behaviour of use organisational resources based on structural
subordinates towards the accomplishment of position in the organisation.
certain goals. PERSONAL POWER
BASES OF POWER It comes from the individual unique
There are two general groupings of power : characteristics. It includes :
FORMAL POWER – based on an individual 1) Expert Power
position in the organisation. It includes: This is influence wielded as a result of
1) Coercive Power expertise ,special skill or knowledge. As jobs
It depends on fear of the negative results from become specialised we become increasingly
failing to comply .It rests on the application or dependent on experts to achieve goals.
threat of application of physical sanctions such 2) Referent Power
as the infliction of pain, frustration through It is based on identification with a person who
restriction of movement. has desirable resources or personal traits.
2) Reward Power Referent power develops out of admiration of
It is based on the managers ability to distribute another person and a desire to be like that
rewards others view as valuable. The rewards can person
either be financial –such as controlling pay rates, Which base of power is most effective?
raises and bonuses or non-financial including
recognition promotions & interesting work
assignments.
 Organisational Power

STRUCTURAL & SITUATIONAL SOURCES OF POWER

1) Knowledge as power
Organizations are information processors that must use knowledge to produce goods
and services.. Thus individuals or groups who possess knowledge critical to the
attainment of organisational goals and objectives have power. People who are in a
position to control the information itself or the flow of information about current
operations or future events and plans have enormous power to influence the
behaviour of others.
2. Resources as Power
Resources are necessary for objective accomplishment. They include capital,
personnel, equipment& customers. Anyone who provides resources that are critical
to the organisation acquires such power.
3. Decision making as power
The authority to make decisions or the ability to influence the decision makers are
both sources of power. The decision making power does not necessarily rest with the
final decision maker. The real power may lie with those who influence the decision. .
NETWORKS AS POWER
The existence of structural and situational power depends not only on access to
information, resources, and decision making, but also on the ability to get
cooperation in carrying out tasks. Managers and departments that have
connecting links with other individuals and departments in the organization will
be more powerful than those who don’t.
 THE EFFECTIVE USE OF POWER

When managers, employees, or teams face a situation

in which they want to influence the behaviours of
others, they must choose a strategy. Influence
strategies are the methods by which individuals or
groups attempt to exert power or influence others’
behaviours.
 INFLUENCE STRATEGIES

Rational persuasion: Use logical arguments and factual evidence.

Inspirational appeal: Appeal to values, ideals, or aspirations to arouse enthusiasm.
Consultation: Seek participation in planning a strategy, activity, or change.
Ingratiation: Attempt to create a favourable mood before making request.
Exchange: Offer an exchange of favours, share of benefits, or promise to
reciprocate at later time.
Personal appeal :Appeal to feelings of loyalty or friendship.
Coalition: Seek aid or support of others for some initiative or activity.
Legitimating: Seek to establish legitimacy of a request by claiming
authority or by verifying consistency with policies, practices, or traditions.
Pressure :Use demands, threats, or persistent reminders.
Source: Adapted from Yukl, G., Guinan, P. J., and Sottolano, D. Influence tactics used for
different objectives with subordinates, peers, and superiors. Group & Organization
Management, 1995, 20, 275;Buchanan, D., and Badham, R. Power, Politics and
Organizational Change. London: Sage, 1999, 64.
 Organisational Politics

Organizational politics involves actions by individuals, teams, or departments

to acquire, develop, and use power and other resources in order to obtain
preferred outcomes when uncertainty or disagreement about choices exists. When
people share power but differ about what must be done, many decisions and
actions quite naturally will be the result of a political process.

Political behaviour involves attempts by some to influence the behaviours of

others and the course of events in the organization in order to protect their self-
interests, meet their own needs, and advance their own goals.
 Organisational Politics

Common Political Tactics

1. Manoeuvrability: The individual maintains flexibility and never completely
commits himself to any one position or program.
2: Communication: The individual never communicates everything she knows.
Instead she withholds information and/or times its release carefully.
3: Compromising: The individual accepts compromise only as a short-term
tactic while continuing to press ahead with his own agenda.
4.Confidence: Once the individual has made a decision, he must always give the
impression of knowing what he is doing, even when he does not.
5.Always the boss: An atmosphere of social friendship limits the power of the
manager, thus the manager always maintains
Source: Buchanan, D., and Badham, R. Power, Politics, and
Organizational Change. London: Sage,1999, 193.
 Organisation Politics
CAUSES FOR POLITICAL the perceived importance of his /her
BEHAVIOUR department
2) Scarce resources 3) The business environment
Whenever resources are scarce some Because we operate in a rapidly changing
people will not get everything they environment, the business is prone to
think they deserve or need. Thus, they changes. Whenever there are changes in
engage in political behaviour as a the environment a manager might use the
environments change as an argument for
means of inflating their share of restructuring his/her department to
resources. A manager requiring a larger increase his or her own power base.
budget might provide misleading
4) Political behaviour is also likely to arise
statistics to inflate whenever many non-programmed decisions
need to be made. These situations involve
ambiguous circumstances that allow ample
opportunity for political manoeuvring, for
example two employees competing for one
opening in an organisation - PROMOTION
5) Performance Evaluation
Performance evaluation process are prone
to political manipulation. The relationship
between the manager & the subordinate
influences the outcome of the appraisal
process.
 Power & Politics in Organisations

6) Work Pressure
The more pressure employees feel to perform well, the more likely they are to engage in
politicking .Being held strictly accountable for outcomes puts great pressure on people to
look ‘’good’’. A person who perceives that his/her entire career is riding on next quarters sales
figures is motivated to do whatever is necessary to make sure that the numbers come out
favourably.
7) Top Management Political Behaviour
When employees see people on top engaging in political behaviour ,especially when they do
so successfully and are rewarded for it, a climate is created that supports
politicking .Politicking by top management ,in a sense, gives permission to those lower in the
organisation to play politics by implying that such behaviour is acceptable.
8. Organisation Reward System
Political behavior is higher in organizations that reward it. A reward system may focus solely on
individual accomplishment and minimize team contributions. When that’s the case,
individuals may be tempted to behave politically to ensure that they receive some of the
rewards. If their political actions result in rewards, employees may be even more likely to
engage in such actions in the future. Similarly, individuals who had avoided political
behavior,may start behaving politically when they observe such behavior being rewarded
 Power & Politics in Organizations
THE TECHNIQUES OF POLITICAL 3) Controlling the Agenda
BEHAVIOUR This is another common political technique.
1) Controlling information In a meeting a person chairing the meeting
One technique of political behaviour is to might completely omit an issue that he /she
control as much information as possible. The does not want discussed claiming it is not yet
more critical the information and the fewer ready for consideration. A manager can also
the people who have access to it, the larger cultivate his allies in the meeting who then
the power base and influence of those who take the same position with him on any issue.
do. The manager can also prolong discussion on
prior agenda items so that the group will fail
2) Controlling lines of communication
to discuss the issue that he does not want
Some people create or exploit situations to discussed.
control lines of communication ,particularly
4. Game Playing
access to others in the organisation. Admin
assistants frequently control access to their Is a complex technique that takes many
bosses. A manager can also hire an external forms. When playing games , the manager
consultant whose views matches his own. simply works within the rules of the
The external consultant will then feel an organisation to increase the probability that
obligation to side the manager. His their preferred outcomes will come about, for
recommendations will the person who hired example a manager may absent himself/
him herself on a day when an important item has
to be finalised.
 Power & Politics in the Organisations

5) Controlling decision parameters

Instead of trying to control the actual decision ,the manager backs one strategy and tries to control
the criteria and tests on which the decision is based. This allows the manger to take a less active role
in the actual decision but still achieve his or her preferred outcome. For example a manager wants a
new factory constructed in his region , instead of directly campaigning for the factory to be built on his
preferred site, he will take an active role in defining the parameters on which the decision has to be
based, like access to raw material, good road net work , target population etc.These factors will favour
his desired site.
 ORGANISATIONAL POLITICS

Consequences of political behaviour at the workplace

 Power & Politics in Organisations

CONSEQUENCES OF POLITICAL BEHAVIOUR

Decreased
job
satisfaction

Increased
Organisatio anxiety &
nal Politics stress
may
threaten
employees Increased
turnover

Reduced
performance
 Managing Conflict in Organisations

The manner in which organizations view and treat inter-group conflict has changed
measurably during the last three decades. There are two different views:
1) Traditional and
2) Contemporary views of inter-group conflict to deal with the conflicting situations.
3) The traditional approach:
It states that inter-group conflict is dysfunctional to the organization and should be
avoided. This view emphasizes that conflict is caused by personality differences and a
failure of leadership. Further, it reiterates that conflict is resolved by physical separation
or the intervention by higher management levels.
The contemporary approach
It views inter-group conflict as an inevitable consequence of organizational interactions,
caused by primarily by the complexities of our organizational systems. Through such
mechanisms, the solutions of conflict may help to bring about positive organizational
change.
 Managing Conflict in Organisations

THE CONFLICT PROCESS MODEL

The conflict process has five stages as follows:
KEY
1 = Potential opposition or incompatibility ,2= Cognition & personalisation,3 = Intentions ,4 = Behaviour ,
5 = Outcomes
(5)
(3) Increased
(2)
Conflict group
Perceive ( 4)
(1) handling performanc
d conflict Overt
Antecedent intentions e
conditions 1.Competing Conflict
1.Communication 2.Collaborating 1.Party's
2.Structure 3. Avoiding behaviour
Felt 2.2. Others
3.Personal 4.Accomodating
Conflict reaction
variables
Decreased
group
performance
 Managing Conflict in Organisations
Stage 1 – Potential Opposition / Stage 4 – Behaviour
Incompatibility This where conflict becomes visible. The
The first step in the conflict process is the behaviour includes the statements ,actions and
appearance of conditions that create reactions made by conflicting parties usually as
opportunities for conflict to arise. These are overt attempts to implement their own
sources of conflict which can be poor intentions.
communication & deficient organisational Stage 5 – Outcomes
structures.
Stage 2 - Cognition & Personalisation The action reaction between the conflicting
If the conditions cited in stage one negatively parties results in consequences. These outcomes
affects another party then the potential for maybe functional ,if the conflict improves group
opposition is actualised in the second stage. performance or dysfunctional ,if it hinders
Parties experience anxiety and emotions arise. performance
Stage 3 – Intentions
They are decisions to act in a given way. These
intentions can be :
 Competing – One party seeks to satisfy his/her own interests
regardless of the impact on the other parties to the conflict.
 Collaborating – Parties to the conflict desire to fully satisfy the
concerns of all parties. A search for a mutually beneficial outcome.
 Avoiding – A person recognises that a conflict exists but ignores it.
 Accommodating – When one party places the opponent’s interests
above his / her own.
 Compromising – A willingness to ration the conflict and accept a
solution that provides incomplete satisfaction to both parties.
Is work conflict desirable at the workplace?

Group 5 to work on this !

 Managing Conflict in Organisations
When a potentially harmful conflict situation  Rules & Procedures
exists a manager needs to engage in conflict Routine conflict management can be handled via
resolution. Conflict needs to be resolved when it rules and standard procedures. Some work has to
causes major disruptions in the organisation and be given priority over other assignments and this
absorb time & effort that could be used more has to be a written rule. For example in a large
productively. Conflict should also be resolved Fast Moving Concern, an outgoing truck
when its focus is on the groups internal goals shipment has priority over an incoming rail
rather than on organisational goals. shipment. Thus when trucks are loaded all the
USING STRUCTURE TO MANAGE CONFLICT available equipment is directed at loading the
Managers can rely heavily on elements of truck.
organisation structure to manage conflict. These  Liaison Roles
are : As a device of managing conflict , a manager in a
 The managerial hierarchy liaison role coordinates activities acting as a
Organisations that use the hierarchy to manage common point of contact. This individual
conflict place one manager in charge of ensures the smooth flow of information between
people ,groups or departments in conflict. In a parties
large organisation responsible for receiving and  Task Force – When the need for conflict
shipping goods to distributors there might be management is acute and the interdependence is
conflict because the two departments share complex and also that several groups are in a
resources & depend on each other. To ensure conflict. The best strategy is a task force. A
coordination and minimise conflict ,one manager representative from each group becomes part of
should be in charge of the whole operation. the taskforce. The conflict management is thus
spread over several departments.
 Managing Conflict in Organisations
USING INTERPERSONAL TECHNIQUES /  Third Party Peacemaking
PROCESSES TO MANAGE CONFLICT An extreme interpersonal management
 Team building technique. A third party, usually a trained
Team building activities are intended to enhance external facilitator ,uses a variety of mediation &
effectiveness and satisfaction of individuals who negotiation techniques to resolve problems or
work in groups or teams and to promote overall conflicts between individuals or groups.
group effectiveness, consequently there should
be less conflict among members of the team.
Caterpillar used team building as one method
for changing the working relationships between
workers and supervisors from confrontational to
cooperative.
 Survey Feedback
Each employee responds to a questionnaire
intended to measure perceptions and attitudes
( satisfaction & supervisory style). Everyone
involved, including the supervisor receives the
results of the survey . The aim of this approach is
usually to change the behaviour of supervisors by
showing them how their subordinates' view
them. After the feedback is provided ,workshops
maybe conducted to evaluate results and suggest
changes.
 STRUCTURE & BEHAVIOUR

A SIMPLIFIED ORGANISATIONAL STRUCTURE

MD/CEO
 Structure & Organisational Behaviour
In order to achieve its goals and objectives the  Organisation size
work of an organisation has to be divided among Organisations with large number of employees
its members. Some structure is necessary to tend to have more specialisation , more
make possible the effective performance of key departmentalisation , more vertical levels and
activities and to support the efforts of more rules and regulations than small
The meaning & nature of organisation organisations.
structure  Technology
Numerous studies have examined the technology
 Structure is the pattern of relationships among –structure relationship. Technologies are
positions in the organisation and among differentiated by degree of routineness. Routine
members of the organisation. Structure creates a activities are characterised by automated and
framework of order and command through standardised operations whereas non-routine
which the activities of the organisation can be activities are customised
planned, organised, directed and  Environment – Changes in the environment
controlled( Mullins ,2010) affect an organisation structure. The uncertainty
 An organisation structure defines how job tasks in the environment is a threat to the organisation
are formally divided ,grouped and coordinated effectiveness, hence management tries to
Why do structures Differ ? minimise the threat through changing the
Strategy – Structure follows strategy. Any structure.
changes in the strategy is followed by changes in
the structure.
 Structure & Organisational Behaviour

THE DESIGN OF ORGANISATION STRUCTURE

Basic considerations in the design of organisational structure
 Clarification of objectives
A clear definition of objectives is necessary in order to provide a basis for the
division of work and grouping of duties into sub units. The objectives of the
units should be related to the objectives of the organisation as a whole. Clearly
defined objectives will help facilitate systems of communication between
different parts of the organisation.
 The division of work
Work has to be divided amongst the members of the organisation. The division
of work and the grouping together of people should be organised by reference
to some common characteristic which forms a logical link between activities
involved
 Structure & Organisation Behaviour
Centralisation /Decentralisation The Chain of Command
The extent of decentralisation is critical in This refers to the number of different levels in
organisation design. The growing emphasis on the structure of the organisation, the chain, or
participation and empowerment suggests a focus lines, of hierarchical command sometimes
of attention on the principles of known as the ‘scalar chain’. The chain of
decentralisation ,however senior management command establishes the vertical graduation of
still needs to maintain effective coordination and authority and responsibility, and the framework
control of the activities of the organisation so for superior–subordinate relationships in an
there has to be a balance between unbroken line down from the top of the
decentralisation /centralisation considerations. organisation
Span of Control Formal Organisational relationships
Refers to the number of subordinates who report The defined pattern of responsibilities will arise
directly to a given manager /supervisor. If the as a result of the organisation structure. The
span of control is wide it becomes difficult to relationships are:
supervise subordinates effectively. If the span of  Line Authority – authority flows vertically
control is too narrow this increases admin costs down the structure e.g. MD & Managers
and can prevent good use of limited resource of  Functional Authority – relationship between
managerial talent. people in specialist or advisory positions and line
managers and their subordinates'
 Staff Authority – Arise from the appointment
of personal assistants to senior members of staff.
 Structure & Organisational Behaviour

Discuss the consequences of a weak organisational

structure

Group 6 to work on this

 Structure & Organisation Behaviour
CONSEQUENSES OF A BAD  Rising Costs – A long hierarchy of authority
ORGANISATION STRUCTURE with a high proportion of senior positions ,an
 Low motivation & morale excessive of administrative work at the expense
This may result from insufficient delegation, lack of productive work. ``
of clarity in job definition and supervisors
overloaded with in adequate support systems.
 Late and inappropriate decisions
This may result from lack of relevant ,timely
information to the right people ,poor
coordination of decision makers in different
units, overloading of decision – makers due to
insufficient delegation and inadequate
procedures for revaluation of past decisions
 Conflict and lack of coordination – May
result from conflicting goals and people working
at cross purposes because of lack of clarity on
objectives & priorities
 Poor response to new opportunities – May
result from failure to establish specialist jobs
concerned with forecasting environmental
change, failure to give attention to innovation
 CULTURE & ORGANISATIONAL
BEHAVIOUR

What is Organisational Culture?

 It is a system of shared meaning held by members that distinguishes the
organisation from other organisations ( Robbins & Judge,2013)
 It is a collection of traditions, values, policies, beliefs, and attitudes that
constitute a pervasive context for everything we do and think in an organisation
( Mullins,2010)
 Corporate culture can be referred to as a set of values, beliefs, and behavior
patterns that form the core identity of organisations, and help in shaping the
employees’ behavior (Deal and Kennedy, 1982; Jones, 1983; Schein, 1992;
Kotter and Heskett, 1992; Pheysey, 1993; Van der Post, 1998; Deshpande and
Farley, 1999).
 Organisational Culture
CHARACTERISTICS OF CULTURE Outcome orientation

 the degree to which management focuses on results or
There are seven characteristics that together   outcomes 
capture the essence of an organisation's cultu rather than on the techniques and processes used to ac
re: hieve these outcomes
Innovation and risk‐taking People orientation ‐

  the degree to which management decisions take into c
 the degree to which employees are encourag onsideration 
ed to be  innovative and take risks . the effect of outcomes on people with the organisation.
Attention to detail Team orientation
 
 the degree to which work activities are organised arou
the degree to which employees are expected t
nd teams  rather than individuals.
o exhibit precision,  analysis,
Aggressiveness
and attention to detail.
 the degree to which people are aggressive and competi
tive rather than  easy‐going
Stability

 the degree to which organisational activities emphasis
e maintaining the  status quo in contrast to growth 
 DIMENSIONS OF ORGANISATION
CULTURE

Power culture
It depends on a central power source with rays of influence from the central figure throughout the
organisation. In this type of organisational culture a dominant head sits in the centre surrounded by
intimates and subordinates who are the dependants (Harrison, 1993).
Task culture
is job-oriented or project-oriented. which entails that organisational members focus on realising the
set purpose and goals of the organisation. The completion of a task is important as team work rather
than the promotion of individual positions or work (Hampden-Turner, 1990). Teams of talented
people and resources are brought together to focus only on specific projects or tasks
Role culture
It focuses on job description and specialisation. In other words, work is controlled by procedures and
rules that spell out the job description, which is more important than the person who fills the
position . Brown (1998, p 67) states that “the strength of a role culture lies in its functions or
specialities (finance, purchasing, production and so forth) which can be thought of as a series of pillars
which are co-ordinated and controlled by a small group of senior executives (the pediment
Person culture is where the individual is the central focus and any structure exists to serve the
individuals within it. The support-oriented culture resembles the people orientation characteristic of
organisational culture. This implies that the well being of employees is important to managers in this
type of organisation
 Models of Organisational Culture

1. Competing Values Model

2. Johnson & Scholes
 FUNCTIONS OF CULTURE

Brown (1998, p 89- 91) states the following functions of organisational culture:
 Conflict reduction. A common culture promotes consistency of perception,
problem definition, evaluation of issues and opinions, and preferences for action.
 Coordination and control. Largely because culture promotes consistency of
outlook it also facilitates organisational processes of co-ordination and control.
Reduction of uncertainty. Adopting of the cultural mind frame is an anxiety
reducing device which simplifies the world of work, makes choices easier and
rational action seem possible.
 Motivation. An appropriate and cohesive culture can offer employees a focus of
identification and loyalty, foster beliefs and values that encourage employees to
perform.

Competitive advantage. Strong culture improves the organisation’s chances of

being successful in the marketplace.
 FUNCTIONS OF CULTURE

Martins and Martins (2003, p 382) also mention the following as functions of organisational
culture:
 Ithas a boundary-defining role, that is, it creates distinctions between one
organisation and the other organisations.
 It conveys a sense of identity to organisational members.
 It facilitates commitment to something larger than individual self-interests.
 It enhances social system stability as the social glue that helps to bind the
organisation by providing appropriate standards for what employees should say
and do.
 It serves as a meaningful control mechanism that guides or shapes the attitudes
and behaviours of employees.
 Organisation Culture

In order to help describe and understand the culture of an organisation, Johnson, Scholes and
Whittington present a cultural web, which brings together different aspects for the analysis of
organisational culture:

Symbols
Stories
Power
Structures

The Paradigm
Rituals &
Routines Organisation
Structures

Control
Systems
 Organisational Culture

 Routine behaviours – the ways in which members of the organisation behave towards each other and
towards those outside the organisation and which make up how things are done or how things should happen.
 Rituals – the particular activities or special events through which the organisation emphasises what is
particularly important; can include formal organisational processes and informal processes.
 Stories told by members of the organisation that embed the present and flag up important events and
personalities, and typically have to do with successes, failures, heroes, villains and mavericks.
 Symbols – such as logos, offices, cars, titles, type of language or terminology commonly used – which become
a shorthand representation of the nature of the organisation.
 Power structures – the power of the most powerful individuals or groups in the organisation may be based
on management position and seniority, but in some organisations power can be lodged with other levels or
functions.
 Control systems – the measurement and reward systems that emphasise what it is important to monitor,
and to focus attention and activity upon – for example, stewardship of funds or quality of service.
 Organisation structure – which reflects power structures and delineates important relationships and
activities within the organisation, and involves both formal structure and control and less formal systems.
 The paradigm of the organisation, which encapsulates and reinforces the behaviours observed in other
elements of the cultural web
For Discussion
Discuss the validity of the contention that corporate culture is an important ingredient of
effective organisational performance.
 Organisation Change

General Framework for Understanding Change

Managers who are interested in change need a road map for change.
A MAP FOR CHANGE PROCESS( Source: R.Beckhard & R. Harris –Organisational
Transitions,1987)
Why
change?

Designing the
desired future Describing the
state present state

Getting
from here
to there

Managing
Transition
 Organisation Change

FORCES FOR CHANGE

INTERNAL
FACTORS
Change in
EXTERNAL objectives
FACTORS
Globalisation
New
FORCES
New equipment
FOR
technologies CHANGE Mergers &
Power of Acquisitions
markets Low employee
Changing morale
political landscape
New
information
system
 Organisation Change
WHY CHANGE PROCESS This is essential in order to support employees and
It involves diagnosis of the environment of why minimise resistance to change (Linstead et al.,
change is needed. This happens when there is a 2009).
discrepancy between the real and the ideal Changing:- Moving the organisation to the desired state
Designing the desired future state involves actual implementation of new systems of
operation. This may involve experimentation,
Involves coming up with the objectives for change. modification of systems or patterns of behaviour,
What is it that we want to achieve by changing the technology or systems; may also be where people
present state. need to leave or new people join the organisation as
Implementation the full nature of transition emerges.
Getting from here to there involves identifying Refreezing: This stage involves the positive
alternative solutions and appropriate reinforcement of desired outcomes. The change
implementation strategies and anticipating probable programme has to be appraised at this stage to
consequences of alternative strategies. Various ensure that the new way the new way of operating
approaches are used in the implementation of becomes a matter of habit not a regulation.
change. Refreezing seeks to stabilise the group at a new
APPROACHES USED IN CHANGE quasi-stationary equilibrium in order to ensure that
IMPLEMENTATION . the new behaviour is relatively safe from regression”.
These models are used to make changes
successful in organisations
LEWIN’S THREE STEP MODEL
The phases in the change process are:
Unfreezing: This stage entails the recognition and
acknowledgement of the need to change. By taking
action, existing attitudes and behaviour can be
unfrozen.
 Organisation Change

Kotters 8 step Model

8.
Make 1.Increase 2.Build
the urgency guiding
change team
stick

7.Dont
let up
3.Get the
Effective vision right
Change

6. Create
short term
wins

4.
5. Empower Communicate
Action for buy in
 Organisation Change

1. How do you make Resistance To Change

organisation change 1.What is resistance to
successful? Change
2.Management of
Resistance To Change
3.Costs of Resistance to
Change
WHY IS ORGANISATIONAL CHANGE
UNAVOIDABLE
Organisational Performance & Effectiveness

FACTORS AFFECTING ORGANISATIONAL EFFECTIVENESS

Technology
Type of
Leadershi
p technology
Skills & Condition of
Knowledge plant
Goals

Ability
Organisation Experience
Group
al Training
Relations
Effectiveness
Cohesion
Relationships

Physical &
Economic
Environ
Systems & Economy
Structures Location
Reward Systems
Control Systems
 Organisational Performance & Effectiveness
LEADERSHIP SYSTEMS & STRUCTURES
 Skills & knowledge – The leadership of an  Reward Systems – A reward system should be
organisation should be qualified and skilled so as equitable and competitive so as to solicit high
to achieve the desired results. Highly skilled and levels of motivation amongst members of staff.
knowledge leadership is able to proffer solutions  Control Systems – Both the behaviour of
to business challenges and hence take the employees and the usage of company resources
company forward. should be controlled. Employee behaviour
 Goals – Good leaders set goals which are smart should be controlled so as to keep it in line with
and in line with business objectives organisational expectations. Company resources
GROUP RELATIONS should be controlled to minimise waste.
 Cohesion - If members of a group identifies TECHNOLOGY
with each they are likely to have shared values  Type of technology - Use of antiquated
which are critical in binding the people together machinery negatively affects organisation
 Relationship - An organisation with a healthy effectiveness due to frequent breakdowns and
climate fosters a good environment for good high unit costs. An organisation should always
relations where employees support each other . respond the external technological environment.
Good relations lead to low levels of organisation ABILITY
conflict Training – An organisation workforce should be
properly trained so as add value to the business.
Employees should acquire the necessary skills &
knowledge to run a business.
 Organisational Performance & Effectiveness
APPROACHES USED TO IMPROVE 2) Total Quality Management
ORGANISATIONAL EFFECTIVENESS Another approach to improved organisational
1. A learning Organisation performance and effectiveness is the concept of
A key factor in organisational effectiveness is the Total Quality Management. TQM is a way of life
successful management of change and for an organisation as a whole, committed to
innovation, and corporate renewal. Increasing total customer satisfaction through a continuous
international competitiveness and the need for process of improvement, and the contribution
organisations to respond rapidly to constant and involvement of people. The successful
change in their environment have drawn organisation should as a matter of policy be
renewed attention in recent years to the concept constantly seeking opportunities to improve the
of the learning organisation. Organisations need quality of its products and/or services and
to develop a culture of learning, and to instil processes. The organisation must also couple
‘people’s commitment and capacity to learn at all quality with a required level of productivity
levels in an organisation. This encourages 3) Business Process Reengineering ( BPR)
innovation and system of sharing information in The fundamental rethinking and radical redesign
the organisation of business processes to achieve dramatic
improvements in critical, contemporary
measures of performance, such as cost, quality,
service and speed. BPR is concerned with the
total restructuring of the organisation.
 Organisational Effectiveness & Performance

MCKINSEY’S 7 S FRAMEWORK
For any organisation to be successful it has to treat as interdependent the seven factors suggested by
Mckinsey.
Structur
e

System
Strateg s
y
Share
d
Values

Skills Style

Staff
 Organisational Performance & Effectiveness
 Strategy is a plan developed by a firm to  Skills are the abilities that firm’s employees
achieve sustained competitive advantage and perform very well. They also include
successfully compete in the market. What does a capabilities and competences. During
well-aligned strategy mean in 7s McKinsey organizational change, the question often
model? In general, a sound strategy is the one arises of what skills the company will really
that’s clearly articulated, is long-term, helps to need to reinforce its new strategy or new
achieve competitive advantage and is reinforced
structure.
by strong vision, mission and values. But it’s
hard to tell if such strategy is well-aligned with  Staff element is concerned with what type
other elements when analyzed alone. and how many employees an organization
 Structure represents the way business divisions will need and how they will be recruited,
and units are organized and includes the trained, motivated and rewarded.
information of who is accountable to whom. In  Style represents the way the company is
other words, structure is the organizational chart managed by top-level managers, how they
of the firm. It is also one of the most visible and interact, what actions do they take and their
easy to change elements of the framework. symbolic value. In other words, it is the
 Systems are the processes and procedures of management style of company’s leaders.
the company, which reveal business’ daily  Shared Values are at the core of McKinsey
activities and how decisions are made. Systems 7s model. They are the norms and standards
are the area of the firm that determines how
that guide employee behaviour and company
business is done and it should be the main focus
actions and thus, are the foundation of every
for managers during organizational change.
organization.
 REFERENCES

1. Blanchard & Hersey( 2001), Management of Organizational Behaviour- Leading

Human Resources, 8th Ed, Pearson Education
2. Griffin & Moorhead(2006),Organizational Behaviour - Managing People in
Organisations,9th Edition
3. Hitt & Middlemost( 1988),Organizational Behaviour – Managerial Strategies for
Performance, West Publishing Company
4. Mullins (2010) Management & Organizational Behaviour :9th Edition, Pearson
Education
5. Robbins & Judge ( 2013), Essentials of Organizational Behaviour, 11th Edition,
Pearson Education

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