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51619346 organisation-behaviour-ppt

  1. 1. Introduction to Organizational BehaviorOrganizational Behavior - systematic study of the actionsand attitudes that people exhibit within organizationsThe field of OB seeks to replace intuitive explanationswith systematic studyGoals of Organisational BehaviourExplain, predict, and control human behavior
  2. 2. Why Do We Study OB?• Tolearn about yourself and how to deal with others• You are part of an organization now, and will continue to bea part of various organizations• Organizations are increasingly expectingindividuals to be able to work in teams, at leastsome of the time• Some of you may want to be managers orentrepreneurs What Is an Organization? A consciously coordinated social unit, composed of a groupof people, which functions on a relatively continuous basisto achieve a common goal or set of goals.
  3. 3. Determinants of Employee PerformanceProductivityAbsenteeismTurnoverorganizational behaviour is a field of study that investigatesthe impact that individuals, groups and structure have onbehaviour withinorganizations, for the purpose of applyingsuch knowledge toward improving an organization’seffectiveness.Systematic study - the use of scientific evidence gatheredunder controlled conditions and measured and interpreted ina reasonably rigorous manner to attribute cause and effect
  4. 4. Challenges Facing the Workplace•Organizational Level• Productivity• Developing Effective Employees• Global Competition• Managing in the Global Village Group Level• Working With Others• Workforce DiversityIndividual Level• Job Satisfaction• Empowerment• Behaving Ethically
  5. 5. Contributing Disciplines Psychology seeks to Sociology studies measure,explain, people in relation to their and change fellow human beings behavior Social psychology focuses on the influence of people on one another Political science is the Anthropology is the study of the study of societies behavior of individuals to learn about human and groups withinbeings and their activities a political environment
  6. 6. Responding to GlobalizationIncreased Foreign AssignmentsWorking with People from DifferentCulturesCoping with Anti-Capitalism BacklashOverseeing Movement of Jobs toCountries with Low-cost Labor
  7. 7. OB InsightsImproving People SkillsImproving Customer ServiceEmpowering PeopleWorking in Networked OrganizationsStimulating Innovation and ChangeCoping with “Temporariness”Helping Employees Balance Work/LifeConflictsDeclining Employee LoyaltyImproving Ethical Behavior
  8. 8. Definition of LearningA relatively permanent changein behaviour (or behaviourtendency) that occurs as aresult of a person’s interactionwith the environment
  9. 9. How Learning Occurs Classical Conditioning Bell No Response UnconditionedUnconditioned Stimulus Response (Food) (Salivation) During Unconditioned Conditioning Stimulus (Food) Conditioned Stimulus (Bell) Unconditioned Response (Salvation) Conditioned Stimulus Conditioned Response (Bell) (Salivation)
  10. 10. Operant Conditioning
  11. 11. Contingencies of Reinforcement Consequence No Consequence is introduced consequence is removedBehaviourincreases/ Positive Negativemaintained reinforcement reinforcementBehaviour Punishment Extinction Punishmentdecreases
  12. 12. Schedules of Reinforcement Behaviours 1 2 3 4 5 6 7 8 9 Continuous Fixed ratio Variable ratio Time (Days) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Fixed interval Variable interval
  13. 13. Kolb’s Experiential Learning Model Concrete experience Active Reflectiveexperimentation observation Abstract conceptualization
  14. 14. Developing a Learning OrientationValue the generation of newknowledgeReward experimentationRecognize mistakes as part oflearningEncourage employees to takereasonable risks
  15. 15. Action LearningExperiential learning in whichemployees are involved in a ‘real,complex and stressful problem’,usually in teams, with immediaterelevance to the company – Concrete experience – Learning meetings – Team conceptualizes and applies a solution to a problem
  16. 16. Learning and OBStimulus generalization in OrganizationsStimulus discrimination in OrganizationsLearning and TrainingLearning Through TrainingEmployee Indiscipline
  17. 17. What is Personality?
  18. 18. Personality DeterminantsHeredityEnvironmentSituationFamilySocial
  19. 19. Personality Traits The Big Five Model The Big Five Model
  20. 20. The Myers-Briggs Type IndicatorThe Myers-Briggs Type Indicator Personality Types Personality Types ••Extroverted or Introverted (E Extroverted or Introverted (E or I) or I) ••Sensing or Intuitive (S or N) Sensing or Intuitive (S or N) ••Thinking or Feeling (T or F) Thinking or Feeling (T or F) ••Perceiving or Judging (P or J) Perceiving or Judging (P or J)
  21. 21. OTHER PERSONALITY TRAITS Achievement OrientationAuthoritarianism Self - EsteemLocus of Control Risk -Taking Personality Traits Machiavellism Self - Monitoring Introversion Type A Type B Extroversion Personality
  22. 22. Major Personality Attributes Influencing OBMajor Personality Attributes Influencing OB Locus of control Machiavellianism Self-esteem Self-monitoring Propensity for risk taking Type A personality
  23. 23. Locus of ControlLocus of Control
  24. 24. MachiavellianismMachiavellianism Conditions Favoring High Machs Conditions Favoring High Machs ••Direct interaction Direct interaction ••Minimal rules and regulations Minimal rules and regulations ••Distracting emotions Distracting emotions
  25. 25. Self-Esteem and Self-MonitoringSelf-Esteem and Self-Monitoring
  26. 26. Risk-Taking Risk-TakingHigh Risk-taking Managers – Make quicker decisions. – Use less information to make decisions. – Operate in smaller and more entrepreneurial organizations.Low Risk-taking Managers – Are slower to make decisions. – Require more information before making decisions. – Exist in larger organizations with stable environments.Risk Propensity – Aligning managers’ risk-taking propensity to job requirements should be beneficial to organizations.
  27. 27. Personality TypesPersonality Types
  28. 28. Achieving Personality-Job FitAchieving Personality-Job Fit Holland’s Holland’s Typology of Typology of Personality Personality and and Congruent Congruent Occupation Occupation ss
  29. 29. OB Applications of Understanding EmotionsOB Applications of Understanding Emotions Ability and Selection – Emotions affect employee effectiveness. Decision Making – Emotions are an important part of the decision-making process in organizations. Motivation – Emotional commitment to work and high motivation are strongly linked. Leadership – Emotions are important to acceptance of messages from organizational leaders.
  30. 30. OB Applications of Understanding EmotionsOB Applications of Understanding Emotions Interpersonal Conflict – Conflict in the workplace and individual emotions are strongly intertwined. Deviant Workplace Behaviors – Negative emotions can lead to employee deviance in the form of actions that violate established norms and threaten the organization and its members. Productivity failures Property theft and destruction Political actions Personal aggression
  31. 31. Defining MotivationDefining MotivationKey Elements Key Elements1. Intensity: how hard a person tries 1. Intensity: how hard a person tries2. 2. Direction: toward beneficial goal Direction: toward beneficial goal3. 3. Persistence: how long a person tries Persistence: how long a person tries
  32. 32. Challenges of Motivating EmployeesChanging workforce– Younger employees have different needs– Diverse workforceLayoffs, restructuring– Damaged trust, commitmentFlatter organizations– Fewer supervisors to monitor performance
  33. 33. Needs Hierarchy TheoryNeeds Hierarchy Theory Self- Maslow arranged five Actualization needs in a hierarchy Esteem Satisfaction-progression process Belongingness People who experience self-actualization desire Safety more rather than less of this need Physiological Not much support for Maslow’s theory
  34. 34. Theory X and Theory Y (Douglas McGregor)Theory X and Theory Y (Douglas McGregor)
  35. 35. Holland’s Typology of Personalityand Congruent Occupations
  36. 36. Two-Factor Theory (Frederick Herzberg)Two-Factor Theory (Frederick Herzberg)
  37. 37. Factors characterizing eventson the job that led to extremejob dissatisfaction Factors characterizing events on the job that led to extreme job satisfaction Comparison of Comparison of Satisfiers and Satisfiers and Dissatisfiers Dissatisfiers
  38. 38. Contrasting Views of Satisfaction Contrasting Views of Satisfaction and Dissatisfaction and DissatisfactionPresence Absence
  39. 39. ERG Theory ( Alderfer)Needs Hierarchy ERG Theory Theory Self- Alderfer’s model has Actualization Growth three sets of needs Esteem Adds frustration- regression process to Belongingness Relatedness Maslow’s model Safety Somewhat more Existence research support than Physiological Maslow’s theory
  40. 40. Innate Drives Theory • Need to take/keep objects andDrive to Acquire experiences • Basis of hierarchy and status • Need to form relationships and Drive to Bond social commitments • Basis of social identity • Need to satisfy curiosity andDrive to Learn resolve conflicting information • Basis of self-actualization • Need to protect ourselvesDrive to Defend • A reactive (not proactive) drive • Basis of fight or flight
  41. 41. Innate Drives and Motivation Emotional brain centre relies on innate drives to assign emotional markers to incoming information Emotional markers influence rational thoughts and become the conscious sources of motivation
  42. 42. Learned Needs TheorySome needs are learned, not innate Need for achievement – desire for challenging and somewhat risky goals, feedback, recognition Need for affiliation – desire to seek approval, conform, and avoid conflict – try to project a favourable self-image Need for power – desire to control one’s environment – personalized versus socialized power
  43. 43. Implications of Needs-based TheoriesOrganizations need to supportemployees to achieve a balance oftheir innate needsPeople have different needs atdifferent timesOffer employees a choice ofrewardsDo not rely too heavily on financialrewards
  44. 44. Expectancy TheoryExpectancy Theory
  45. 45. Expectancy Theory in PracticeIncreasing the E-to-P expectancy– training, selection, resources, clarify roles, provide coaching and feedbackIncreasing the P-to-O expectancy– Measure performance accurately, clarify outcomes, explain how rewards are based on past performance, provide examplesIncreasing outcome valences– Use valued rewards, individualize rewards, minimize countervalent outcomes
  46. 46. Effective Goal Setting Specific RelevantChallenging Task Task Effort PerformanceCommitment Participation Feedback
  47. 47. Characteristics of Effective Feedback SpecificCredible Effective Relevant Feedback Sufficiently Timely frequent
  48. 48. Multisource (360-degree) Feedback Supervisor Project Customer leaderCo-worker Evaluated Co-worker Employee Subordinate Subordinate Subordinate
  49. 49. What Is Perception, and Why Is It Important?What Is Perception, and Why Is It Important? ••People’s behavior is People’s behavior is based on their based on their perception of what perception of what reality is, not on reality is, not on reality itself. reality itself. ••The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important. important.
  50. 50. Perceptual Process Model Environmental StimuliFeeling Hearing Seeing Smelling Tasting Selective Attention Organization and Interpretation Emotions and Behaviours
  51. 51. Selective AttentionCharacteristics of the object– size, intensity, motion, repetition, noveltyPerceptual contextCharacteristics of the perceiver– attitudes– perceptual defense– expectations -- condition us to expect events
  52. 52. Factors ThatFactors That Influence Influence Perception Perception EXHIBIT 5-1
  53. 53. Person Perception: Making Judgments AboutPerson Perception: Making Judgments About Others OthersDistinctiveness: shows different behaviors in different Distinctiveness: shows different behaviors in differentsituations. situations.Consensus: response is the same as others to same Consensus: response is the same as others to samesituation. situation.Consistency: responds in the same way over time. Consistency: responds in the same way over time.
  54. 54. Attribution TheoryAttribution Theory
  55. 55. Errors and Biases in Attributions Errors and Biases in AttributionsErrors and Biases in Attributions (cont’d)Errors and Biases in Attributions (cont’d)
  56. 56. Errors and Biases in AttributionsErrors and Biases in Attributions
  57. 57. Frequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging Others
  58. 58. StereotypingProcess of assigning traits to people based on theirmembership in a social category – Categorical thinking – Strong need to understand and anticipate others’ behaviour – Enhances our self-perception and social identity Minimizing Stereotyping BiasesDiversity awareness training – educate employees about the benefits of diversity and dispel mythsMeaningful interaction – Contact hypothesisDecision-making accountability – use objective criteria in decision-making
  59. 59. Specific Applications in OrganizationsSpecific Applications in Organizations Employment Interview – Perceptual biases affect the accuracy of interviewers’ judgments of applicants. Performance Expectations – Self-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities. Performance Evaluations – Appraisals are subjective perceptions of performance. Employee Effort – Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.
  60. 60. Other Perceptual ErrorsPrimacy– first impressionsRecency– most recent information dominates perceptionsHalo– one trait forms a general impressionProjection– believing other people are similar to you
  61. 61. Improving PerceptionsEmpathy– Sensitivity to the feelings, thoughts, and situation of others– Cognitive and emotional componentSelf-awareness– Awareness of your values, beliefs and prejudices– Applying Johari Window
  62. 62. Conflict DefinedThe process in which one partyperceives that its interests are beingopposed or negatively affected byanother party.
  63. 63. Conflict
  64. 64. The Conflict Process Conflict PerceptionsSources of Manifest Conflict Conflict Conflict Outcomes Conflict Emotions Conflict Escalation Cycle
  65. 65. Task vs. Socioemotional ConflictTask-related conflict– Conflict is aimed at issue, not parties– Helps recognize problems, identify solutions, and understand the issues better– Potentially healthy and valuableSocioemotional conflict– Conflict viewed as a personal attack– Introduces perceptual biases– Distorts information processing
  66. 66. Organizational Conflict OutcomesConflict Management – Interventions that alter the level and form of conflict for organizational effectivenessConstructive Conflict – Encourages people to learn about other points of view
  67. 67. Organizational Conflict OutcomesPotential benefits – Improves decision making – Strengthens team dynamicsDysfunctional outcomes – Diverts energy and resources – Weakens knowledge management – Increases frustration, job dissatisfaction, stress, turnover and absenteeism
  68. 68. Sources of Conflict Incompatible • One party’s goals perceived to Goals interfere with other’s goals • Different values/beliefsDifferentiation • Explains cross-cultural and generational conflict • Conflict increases with Task interdependenceInterdependence • Higher risk that parties interfere with each other more
  69. 69. Sources of Conflict (con’t) Scarce • Motivates competition for the resource Resources • Creates uncertainty, threatens goalsAmbiguous Rules • Without rules, people rely on politics • Increases stereotyping Communication • Reduces motivation to communicate Problems • Escalates conflict when arrogant
  70. 70. Conflict Management StylesHigh Forcing Problem-SolvingAssertiveness Compromising Avoiding YieldingLow High Cooperativeness
  71. 71. Conflict resolution Emphasizing Superordinate Goals Emphasizing common objectives rather than conflicting sub-goals Reduces goal incompatibility and differentiation Reducing Differentiation Remove sources of different values and beliefs Move employees around to different jobs, departments, and regions Other ways to reduce differentiation: – Common dress code/status – Common work experience Better Communication/UnderstandingEmployees understand and appreciate each other’s views through communication – Informal gatherings – Formal dialogue sessions – Teambuilding activities
  72. 72. Other Ways to Manage ConflictReduce Task Interdependence – Dividing shared resources – Combine tasks – Use buffersIncrease Resources – Duplicate resourcesClarify Rules and Procedures – Clarify resource distribution – Change interdependence
  73. 73. Situational Influences on NegotiationLocationPhysicalSettingTime Passageand DeadlinesAudience
  74. 74. Effective Negotiator BehavioursPreparation andGoal SettingGatheringInformationCommunicatingEffectivelyMaking Concessions
  75. 75. Types of Third Party Intervention High Mediation InquisitionLevel ofProcessControl Arbitration Low Level of Outcome Control High
  76. 76. Organizational Culture Defined The basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization.
  77. 77. The Basic Functions of Organizational Culture Organizational Culture/basic functionsProvides a Enhances Clairifies sense of commitment andidentity for to the reinforces members organization’s standards mission of behavior
  78. 78. What Is Organizational Culture?What Is Organizational Culture?
  79. 79. What Is Organizational Culture?What Is Organizational Culture?Culture Versus Formalization– A strong culture increases behavioral consistency and can act as a substitute for formalization.Organizational Culture Versus NationalCulture– National culture has a greater impact on employees than does their organization’s culture.– Nationals selected to work for foreign companies may be atypical of the local/native population.
  80. 80. What Do Cultures Do? What Do Cultures Do?Culture’s Functions:Culture’s Functions:1. Defines the boundary between one 1. Defines the boundary between one organization and others. organization and others.2. Conveys aasense of identity for its members. 2. Conveys sense of identity for its members.3. Facilitates the generation of commitment to 3. Facilitates the generation of commitment to something larger than self-interest. something larger than self-interest.4. Enhances the stability of the social system. 4. Enhances the stability of the social system.
  81. 81. What Do Cultures Do?What Do Cultures Do? Culture as a Liability: Culture as a Liability: 1. Barrier to change 1. Barrier to change 2. Barrier to diversity 2. Barrier to diversity 3. Barrier to acquisitions and 3. Barrier to acquisitions and mergers mergers
  82. 82. Core Organizational Values Reflected in Culture•Sensitivity to needs of customers and employees•Freedom to initiate new ideas•Willingness to tolerate taking risks•Openness to communication options
  83. 83. Elements of Organizational CultureArtifacts of Physical StructuresOrganizational LanguageCulture Rituals and Ceremonies Stories and Legends Organizational Beliefs Culture Values Assumptions
  84. 84. Artifacts: Stories and Legends Social prescriptions of desired (undesired) behaviour Provides a realistic human side to expectations Most effective stories and legends: – Describe real people – Assumed to be true – Known throughout the organization – Are prescriptive
  85. 85. Artifacts: Rituals and CeremoniesRituals– programmed routines– (eg., how visitors are greeted)Ceremonies– planned activities for an audience– (eg., award ceremonies)
  86. 86. Artifacts: Organizational LanguageWords used to address people,describe customers, etc.Leaders use phrases and specialvocabulary as cultural symbols– eg. Container Store’s “Being Gumby”Language also found insubcultures– eg. Whirlpool’s “PowerPoint culture”
  87. 87. Artifacts: Physical Structures and Symbols Building structure -- may shape and reflect culture Office design conveys cultural meaning – Furniture, office size, wall hangings
  88. 88. Organizational CultureOrganizational Culture
  89. 89. The Process of Innovation Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 ProgressSetting Setting Producing Testing and Outcome Success the the the Implementing Assessment EndAgenda Stage Ideas the Ideas Failure End IndividualMotivation or Team Productivity Resources Skills
  90. 90. Creating a Customer-Responsive CultureCreating a Customer-Responsive Culture Managerial Actions: Managerial Actions: •• Select new employees with personality and Select new employees with personality and attitudes consistent with high service attitudes consistent with high service orientation. orientation. •• Train and socialize current employees to be Train and socialize current employees to be more customer focused. more customer focused. •• Change organizational structure to give Change organizational structure to give employees more control. employees more control. •• Empower employees to make decision about Empower employees to make decision about their jobs. their jobs.
  91. 91. Creating a Customer-Responsive CultureCreating a Customer-Responsive Culture Managerial Actions (cont’d) :: Managerial Actions (cont’d) •• Lead by conveying a customer-focused vision Lead by conveying a customer-focused vision and demonstrating commitment to customers. and demonstrating commitment to customers. •• Conduct performance appraisals based on Conduct performance appraisals based on customer-focused employee behaviors. customer-focused employee behaviors. •• Provide ongoing recognition for employees who Provide ongoing recognition for employees who make special efforts to please customers. make special efforts to please customers.
  92. 92. Keeping Culture Alive Keeping Culture AliveSelection– Concerned with how well the candidates will fit into the organization.– Provides information to candidates about the organization.Top Management– Senior executives help establish behavioral norms that are adopted by the organization.Socialization– The process that helps new employees adapt to the organization’s culture.
  93. 93. Stages in the Socialization ProcessStages in the Socialization Process
  94. 94. How Organization Cultures FormHow Organization Cultures Form
  95. 95. How Employees Learn CultureHow Employees Learn Culture •• Stories Stories •• Rituals Rituals •• Material Symbols Material Symbols •• Language Language
  96. 96. Spirituality and Organizational CultureSpirituality and Organizational Culture Characteristics: Characteristics: • • Strong sense of Strong sense of purpose purpose • • Focus on individual Focus on individual development development • • Trust and openness Trust and openness • • Employee Employee empowerment empowerment • • Toleration of employee Toleration of employee expression expression
  97. 97. “Vulnerable Sensitive. Honest about your weakness. Just the qualities you need to be a strong leader”. Consider leading softly is more effective than armour plated command and control. Harvard Business Review“Failing Organisations are usually over-managed and under-led”. Warren G BennisToday’s Presentation is aimed at: Discussing the necessity of leadership. Understanding and finding implications of different leadership styles. Identifying differences between Manager and Leader. Theories of leadership.
  98. 98. “Leadership is the ability to persuade others to seekdefined objectives enthusiastically. It is the human factorwhich binds a group together and motivates it towardsgoals”. Keith Davis“Leadership is the art or process of influencing people sothat they will strive willingly and enthusiastically towardsthe achievement of group goals”. Koontz“Leadership is the quality of behaviour of individualswhereby they guide people or their activities in organisingefforts”. Chester BarnardIt implies:– It is a continuous process.– Essentially a process of influencing.– Basically a personal quality.– A continuous motivation process.– Functioning of a common goals determines leader follower relationship.
  99. 99. NECESSITYMotivating Employees.Creating Confidence.Building Morale.Developing Team Work.Securing Group Effectiveness.Counselling People.
  100. 100. STYLES OF LEADERSHIP Autocratic Leadership Participative Leadership Free-rein LeadershipAutocratic Leadership Authoritarian, directive or nomothetic style. Ultra-utilization of power. Result may be negative leadership.Types of Autocratic Leadership Strict Autocrat Benevolent Autocrat Incompetent Autocrat
  101. 101. Participative Leadership Democratic, consultative or ideographic style. Team building and goal sharing. Consultation and participation of subordinates. Decentralised decision - making process.Free-rein Leadership Super democratic style. Policy of no intervention. Manager’s only contribution in framing policy programmes and limitation. Manager only maintains a contact.
  102. 102. Leadership TheoriesTrait Theories.Behavioural Theories.Contingency Theories.Situational Theories.LMX Theory.Leadership-participation Theory.Path-Goal Theory.
  103. 103. LEADERSHIP AS A CONTINUUM Leadership in a practical world is between two extremes of autocratic and free-rein. Tannenbaum and Schmidt proposed a continuum moving from authoritarian leadership behaviour to free-rein. Autocratic Free-rein(boss centered (subordinate centered leadership) leadership) Use of authority by the Manager Area of freedom for subordinatesManager takes Manager presents ideas Manager presents Manager permitsdecisions and and invities suggestions problems, gets subordinates of announces suggestions and function within limits makes decisions defined by superior Manager sells Manager presents Manager defines decisions tentative decision limits, asks groups to subject to change make decision
  104. 104. DIFFERENCES BETWEEN MANAGER AND LEADER “Managers are people who do things right, and leaders arepeople who do the right thing. Management’s efficiency lies in climbing the ladder of success, leadership determines whether the ladder s leaning against the right wall”. Warren Bennis and Burt Nanus LEADERSHIP MANAGEMENT 1. Leader leads people. 1. Manager manages things. 2. Leader can use his/her 2. Managers hold formal informal influence. position. 3. Leaders create a vision and 3. Managers achieve results by inspire others to achieve this directing the activities of vision. others. 4. Leader processes non- 4. Manager enjoys formal sanctioned influences ability. designated authority. 5. Leader inspires enthusiasm. 5. Manager engenders fear.
  105. 105. Way to Effective LeadershipFinding the Leader in You Starting to Communicate Motivating People Expressing Genuine Interest in others Seeing Things from the Other Person’s point of view Listening to Learn Teaming up for Tomorrow Respecting the dignity of others Recognition, Praise, and Rewards Handling Mistakes, Complaints, and Criticism Setting Goals Focus and DisciplineAchieving BalanceCreating a Positive Mental AttitudeLearningnot to worryThe Power of Enthusiasm
  106. 106. Organisational Change“Organisational Change is the process by whichorganisations move from their present state to somedesired future state to increase their effectiveness” Gareth. R. Jones Org Level Forces Org structure Group level Forces Org Cultureion Group Norms Org Strategy & Group Cohesiveness Over Determination Groupthink Sources of Change Individual Level Forces Cognitive Biases Sub Unit Level Forces UncertaintyDifferences in Orientation Fear of Loss Power & Conflict Selective Perception Habit Logical Reasons
  107. 107. Planned & Unplanned ChangePlanned change are the activities that areintentional and goal orientedFirst order change – Linear and ContinuousSecond order change – that is multidimensional multilevel, continuous and radicalChange Agents: Can be managers or nonmanagers, employees or consultantsChange agents can change structure,technology, physical setting and people
  108. 108. Force Field Analysis Model Restraining Desired ForcesConditions Restraining Forces Driving Forces Restraining Forces Current DrivingConditions Forces Driving Forces Before During After Change Change Change
  109. 109. Resistance to Change Nature of the Workforce Technology Economic ShocksForces forChange Competition Social Trends World Politics
  110. 110. Creating an Urgency for ChangeInform employees about driving forcesMost difficult when organization is doingwellMust be real, not contrivedCustomer-driven change– Adverse consequences for firm– Human element energizes employees
  111. 111. Minimizing Resistance to ChangeCommunicationHighest priority and first strategy for change Improves urgency to change Reduces uncertainty (fear of unknown) Problems -- time consuming and costly
  112. 112. Minimizing Resistance to ChangeCommunication Increases ownership of change Training Helps saving face and EmployeeInvolvement reducing fear of unknown Includes task forces, search conferences Problems -- time- consuming, potential conflict
  113. 113. Minimizing Resistance to ChangeCommunication When communication, training, and Training involvement do not Employee resolve stressInvolvement Potential benefits Stress – More motivation toManagement change – Less fear of unknown – Fewer direct costs Problems -- time- consuming, expensive,
  114. 114. Minimizing Resistance to ChangeCommunication Training When people clearly lose something and EmployeeInvolvement won’t otherwise support change StressManagement Influence by Negotiation exchange-- reduces direct costs Problems – Expensive – Increases compliance,
  115. 115. Minimizing Resistance to ChangeCommunication Training When all else fails EmployeeInvolvement Assertive influence StressManagement Firing people -- radical form of “unlearning” Negotiation Problems – Reduces trust Coercion – May create more subtle resistance
  116. 116. Refreezing the Desired ConditionsRealigning organizational systems andteam dynamics with the desiredchanges – Alter rewards to reinforce new behaviours – Feedback systems Help employees learn how they are doing Provide support for the new behaviour patterns
  117. 117. Strategic Vision & ChangeNeed a vision of thedesired future stateMinimizes employee fearof the unknownClarifies role perceptions
  118. 118. Change AgentsAnyone who possessesenough knowledge andpower to guide andfacilitate the changeeffortChange agents applytransformationalleadership– Help develop a vision– Communicate the vision– Act consistently with the vision– Build commitment to the vision
  119. 119. Successfully Diffusing ChangeSuccessful pilot projectReceives visibilityTop management supportLabour union involvementDiffusion strategy described clearlyPilot project people moved to other areas
  120. 120. Action Research Philosophy Change needs both action and research focus Action orientation – Solve problems and change the organizational system Research orientation – Concepts guide the change – Data needed to diagnose problem, identify intervention, evaluate change
  121. 121. Action Research Process Establish Client-Consultant RelationsDiagnose Evaluate/ IntroAduceNeed for Stabilize Change Change Change Disengage Consultant’s Services
  122. 122. Appreciative Inquiry Philosophy Directs the group’s attention away from its own problems and focuses participants on the group’s potential and positive elements. Reframes relationships Courtesy of Amanda Trotsen-Bloom around the positive rather than being problem oriented
  123. 123. Appreciative Inquiry ProcessDiscovery Dreaming Designing Delivering Forming Engaging in DevelopingDiscovering ideas about dialogue objectivesthe best of “what might about “what about “what “what is” be” should be” will be”
  124. 124. Parallel Learning Structure PhilosophyHighly participative social structuresMembers representative across the formalhierarchySufficiently free from firm’s constraintsDevelop solutions for organizationalchange which are then applied back intothe larger organization
  125. 125. Parallel Learning Structures Parallel OrganizationStructure
  126. 126. Cross-Cultural and Ethical ConcernsCross-Cultural Concerns– Linear and open conflict assumptions different from values in some culturesEthical Concerns– Privacy rights of individuals– Management power– Individuals’ self-esteem– Consultant’s role
  127. 127. Communication Communication may be understood as the process of exchanging information and understanding between peopleSignificance:a. Control member behaviourb. Fosters motivationc. Provides Informationd. Changing people’s attitudese. Essence of social behaviourf. Role in knowledge management ProemicsTypes of Communication:a. Verbal Kinesicsb. Non Verbalc. Written Para language
  128. 128. Organisational Communication Factors Influencing Organisational Communicationa. Formal channel of communicationb. Authority structurec. Job specialisationd. Information ownershipCommunication Flowsa. Downward communicationb. Upward communicationc. Lateral communicationd. Diagonal communiactione. External communication
  129. 129. Communication Networks Wheel Network Chain Network Y Network A A B A BD E B C C C D D All Channel Network A E E A Circle Network BE E B D C D C
  130. 130. Communication Roles a. Gatekeepers b. Liasons c. Isolates d. CosmopolitesInformal Communication ( Grapevine )a. Chain Systemb. Cluster Systemc. Gossip Sustem
  131. 131. Communication Process Source MessageEncoding F E Message E DChannel B Message A CDecoding K MessageReciever
  132. 132. Communication BarriersSender Related Barriers: Communication Goals Communication Skills Interpersonal Sensitivity Differing frames of reference Improper Diction Inconsistent Non – Verbal Signals Fear Sender CredibilityReceiver Related Barriers Selective & Poor Listening Evaluating the Source Perceptions Lack of responsive feedback Meta communication
  133. 133. Situation Related Barriers:a. Jargonb. Information Overloadc. Time Pressured. Communication Climatee. Noisef. Distanceg. Mechanical Failureh. Murphy’s Law of CommunicationOvercoming the Barriers:Sender’s Responsibilitya. Setting communication goalsb. Using appropriate languagec. Using empathic communicationd. Improving Coommunicator’s Credibilitye. Using face to face communicationf. Encouraging feedback
  134. 134. g. Using a correct amount of redundancyh. Developing trusting climatei. Using pictureReceivers Responsibility:a. Effective Listening ( Barriers to effective listening ):i. Physiological Limitationii. Inadequate background informationiii. Selective memoryiv. Selective expectationv. Fear of being influenced or persuadedvi. Bias and pre judgmentvii. Selective perceptionviii.Influence from emotionsix. Avoiding evaluative judgementx. Providing responsive feedback
  135. 135. International OBTrends in International Business International joint ventures, Multinational mergers &Acquisitions and global strategic alliances More earning from international business than domesticABB, Honda, BP, Siemens, Motorola and Eastman kodakfunctioning in more than 50 countries Most assets owned by different nationalities Trade volume growing since WW II from $51 Billion to $415Billion in 1972 and since then $18 trillion till recent times
  136. 136. Cultural Similarities & DifferencesCultural Norms, Values, cultural symbols, stories and ritualsvary from nation to nation Japanese Arabs Americans Belongingness Family SecurityFreedom Group Harmony Family HarmonyIndependence Collectiveness Parental GuidanceSelf – Reliance Age / Seniority AgeEquality Group Consensus AuthorityIndividualism Cooperation CompromiseCompetition Quality DevotionEfficiency Patience Very PatientTime Indirectness IndirectnessDirectness Go Between HospitalityOpenness Interpersonal FriendshipAggressiveness Hierarchy Formal/AdmirationInformality Continuation Past & PresentFuture Orientation Conservative Religious BeliefRisk – Taking Information TraditionCreativity Group Achievement Social RecognitionSelf Accomplishment Success ReputationWinning Relationship FriendshipMoney Harmony with Nature BelongingnessMaterial Possessions Networking Family NetworkPrivacy
  137. 137. Cultural ClustersAnglo Latin American ArabAustralia Abu Dhabi ArgentinaCanada Bahrain ChileIreland Kuwait ColumbiaNew zealand Oman MexicoSouth Africa Saudi Arabia PeruUK UAE VenezuelaUSA Far Eastern Latin European Hong KongNordic Belgium IndonesiaDenmark France MalaysiaFinland Italy PhilippinesNorway Portugal SingaporeSweden Spain Taiwan Thailand Near Eastern VietnamGermanicAustria Greece Independent Iran BrazilGermany Turkey IndiaSwitzerland Portugal Israel Japan Spain
  138. 138. HR Practices• Hourly Wage rates in Mexico plays little role as it ismandatory for the employers to pay wages for 365 days• In Aus and Brazil employees get 1 month leave for one yr ofwork• In Japan seniority is the basis of promotions andperformance• In UK maternity leave is 40 weeks 18 of these paid•In sweden 87% of companies HR managers are on board ofdirectors
  139. 139. Hofstede’s Cultural Dimension• Power Distance – is the extent to which less powerfulmembers of institutions of and organizations accept thatpower is distributed unequally• Uncertainty Avoidance – is the extent to which people feelthreatened by ambiguous situations, and have certain beliefsand institutions that try to avoid these• Individualism – is the tendency of people to look afterthemselves and their family• Masculinity – refers to a situation in which the dominantvalues in a society are success, money, and other materialthings• Cultural Diversity – Source of energy - can be great sourceof energy and organizational effectiveness
  140. 140. Motivation Across Cultures American Japanese Arab•Management Styles Leadership, Friendliness Persuasion, Coaching, Personal Functional attention, Parenthood Group activities• Control Independence, Decision Of parents Making, Space, Time, Group Harmony parenthood Money• Emotional Appeal Opportunity Religion, Nationalistic, Group Participation; Admiration Company Success•Recognition Individual Contribution Individual Status, Group Identity, Belong Class society, Ing to group Promotion•Material Awards Salary, Commission, Gift for selffamily Profit – Sharing Annual Bonus, Social Family affair, salary Services, Fringe increase Benefits•Threats Loss of Job Demotion Out of Group Competition; Risk Taking Reputation, Family•Cultural Values Material Possession; Group harmony, security, Religion, Freedom Achievement, Social Status
  141. 141. Compensation Across Cultures Japanese get paid more than three times the wages of other Asian countries like Korea, Singapore, Taiwan Korean & Japanese workers expect bonuses twice a year In, Denmark more than 80% of employees belong to trade unions In Germany a minimum 18 days paid annual leave is mandatoryIn India MNC employees are paid more for identical work Distinction in salaries in different industries for identical works Huge gaps between employees of organized and unorganized sectors Distinction between salaries of public and private sector organizations In Govt. sector salary gaps between different departments
  142. 142. Assignments Choice Stock Purchase Customize Core Competitive Cash Flexible Performance Based Base /Bonus Schedules Employability Work Challenges Tax Benefit Choices Base/ Bonus Deferral Mix MNC Pay SchedulesPhases of Cultural AdjustmentPhase 1 – Expatriate experiences range of emotionsPhase 2 – Crisis / Shock leading to negative appraisalsPhase 3 - Psychological adjustment for the expatriatePhase 4 – Adjustment to the new environment
  143. 143. Leadership across Cultures Emotional Intelligence individual & social1. Self Awareness National Context National Context Culture influences Cultural Influences2. Self Regulation Worker needs and Worker Needs &3. Motivation expectations Expectations4. Empathy Subordinate5. Social Skills Characteristics Needs Achievement Motivation Leader Behaviors Subordinate Motivation &Traits Work Setting Nature of tasks Organizational structure National Context Outcomes Nature of work group Performance culture and Satisfaction educational training National Context define leader Cultural institutions preferences for Influence organizations behaviors and and group structures traits
  144. 144. Leadership Across CulturesUniversalism in Leadership Articulates a Vision Breaks from the Status Quo Provides goals and a plan Gives meaning or a purpose to goals Takes risks Is motivated to leadBuilds a power base Demonstrates high ethical and moral standardsMulticultural Teams Token Teams – One member from one culture Bicultural Teams – Members from two cultures Multicultural Teams – Members from three or more culturesManaging Culturally Diverse Teams Task – related selection Establishing a vision Equalizing
  145. 145. Negotiating Globally When to Negotiate Power Value of Relationship Time Distribution Strategy Commitment Exchange Available Yours/Theirs Sufficiently Negot High Very Very Important Low High iate Important Low BargainTake it Un Un Very Very or Low Low Important Important Low HighLeave it
  146. 146. Steps in International Negotiations Step 1 Preparation Negotiating Tactics •Promise Step 2 • Threat Building the Relati • Recommendation ship • Warning •Reward Step 3 Exchange of Infor • Punishmentmation and first offer • Normative Appeal • Commitment Step 4 Persuasion • Self – Disclosure • Question Step 5 • Command Concessions Step 6 Agreement
  147. 147. Communicating Across Cultures Language and Culture1. High & Low Context Languages – in which people state things directly and explicitly are low context language and indirectly and implicitly is high context language2. Use of Interpreters3. Non – Verbal Communication – facial gestures, voice, intonation, physical distance, smile, battling of eyelid, kiss, handshake, and silence

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