Organizational Behaviour - Organization Structure & culture and differences between climate and culture

1. ORGANIZATIONAL BEHAVIOUR
Louise Agyeman Barning

2. OUTLINE
• What is OB
• Understanding the fundamental concepts
connected with OB.
• Understanding the basic approaches for
organizational behaviour
• Framing the study of OB
• Understanding the goals of OB knowing
the importance of OB for the manager

3. Definitions
• A multi-disciplinary field devoted to
understanding individual and group
behaviour, interpersonal processes and
organizational dynamics.
• A knowledge base that that helps people
work together to improve the
performance of the organization

4. What is organization
• A social unit of people that is structured
and managed to meet a need or to pursue
collective goals. All organizations have a
management structure that determines
relationships between the different
activities and the members, and subdivides
and assigns roles, responsibilities, and
authority to carry out different tasks.
Organizations are open systems--they
affect and are affected by their
environment

5. Organizational Behaviour
• The systematic study of human
behaviour, attitudes and performance
within the organizational setting - jobs
and design of work, communication
performance appraisal, organizational
design and structure, psychological,
interpersonal and behavioural dynamics
in the organization
• Drawing from theory methods and
principles from such disciplines as pshyc

6. • psychology, sociology and cultural
anthropology to learn about individual
perceptions, values learning capacities,
and actions while working in groups and
careful applications of knowledge about
how people as individuals and as groups
acdt within total organizations.

7. Definitions
• A consciously coordinated social unit
composed of two or more people that
function on a relatively continuous basis
to achieve a common goal or set of
goals.

8. ORGAZATION STRUCTURE ( 2)
• Formal Organization
• Official structure of command and
control that exist within an organization
• Informal structure
• Unofficial organization of personal and
social relations that develop in an
organization
• Look at Mintzberg’s model

9. ORG STRUCTURE - 3 LEVELS
• Top-level management The top consists of
the board of directors (including non-
executive directors and executive directors),
president, vice-president, CEOs and other
members of the C-level executives.
• They are responsible for controlling and
overseeing the entire organization.

10. Responsibility and Autthority command
top
midde
Bottom

11. Tall verses Flat Structures

12. Top level mangers
• They set a tone at the top and develop
strategic plans, company policies, and make
decisions on the direction of the business.
• top-level managers play a significant role in
the mobilization of outside resources and are
accountable to the shareholders and general
public.

13. • The board of directors is typically primarily
composed of non-executives which owe a
fiduciary duty to shareholders and are not
closely involved in the day-to-day activities
of the organization, although this varies
depending on the type (e.g., public versus
private), size and culture of the organization.

14. • Helpful skills of top management vary by
the type of organization but typically
include[ a broad understanding
competition, world economies, and
politics. In addition, the CEO is
responsible for executing and
determining (within the board's
framework) the broad policies of the
organization

15. • Analysing the external environment
effect on the organization and its human
resources, missions, objectives and
strategies.

16. • . Executive management accomplishes
the day-to-day details, including:
instructions for preparation of department
budgets, procedures, schedules;
appointment of middle level executives
such as department managers;
coordination of departments; media and
governmental relations; and shareholder
communication.

17. the CEO is responsible for executing and
determining the broad policies of the
organization. Executive management
accomplishes the day-to-day details,
including: instructions for preparation of
department budgets, procedures,
schedules; appointment of middle level
executives such as department managers;
coordination of departments; media and
governmental relations; and shareholder

18. MIDDLE MANAGEMENT
• Consist of general managers, branch
managers and department managers.
They are accountable to the top
management for their department's
function. They devote more time to
organizational and directional functions.
Their roles can be emphasized as
executing organizational plans in
conformance with the company's policies

19. • and the objectives of the top
management, they define and discuss
information and policies from top
management to lower management, and
most importantly they inspire and provide
guidance to lower level managers
towards better performance. Their
functions include:

20. • Design and implement effective group and
inter-group work and information systems.
• Define and monitor group-level performance
indicators.
• Diagnose and resolve problems within and
among work groups.
• Design and implement reward systems that
support cooperative behaviour. They also
make decision and share ideas with top
managers.

21. First Level Management
• Consist of supervisors, section leaders,
foremen, etc. They focus on controlling
and directing. They usually have the
responsibility of assigning employees
tasks, guiding and supervising
employees on day-to-day activities,
ensuring quality and quantity production,
making recommendations, suggestions,
and up channelling employee problems,
etc.

22. • First-level managers are role models for
employees that provide:
• Basic supervision
• Motivation
• Career planning
• Performance feedback

23. Management & Its Interface with OB
• Org behaviour is a broad area of Mgt that
studies how people act in organization.
Managers can use the theories and
knowledge of org behaviour to improve
management practices to attain
organizational goals

24. OB’S Contribution to Management
• The most successful organizations make
the most use of their employees talent
and energy. Firms have competitive edge
if they are able to manage their
employees Pfeiffer estimates that org.
can reap 40%gain by managing people in
ways that build commitment and
involvement

25. • Employees are key to org. success how
well a manager interacts and his
subordinates is key to a managers
success. A manager who is skilled in OB
is able to work effectively with employees
and colleagues influencing them to
achieve organizational goals.

26. Management Def. by Henri Fayol
• Forecasting
• Planning
• Organizing
• Commanding
• Coordinating
• Controlling
Henri Fayol most influential contributors to
modern concept of management

27. Managers Roles
• Interpersonal
• Informational
• Decisional
• Skills
• Political- build powerbase
• Conceptual – analysing complex
situations
• Interpersonal - communicate
• Diagnostic – problem solving

28. Manager’s role
• Leadership – ability to lead and provide
guidance
• Technical – Expertise in one particular
functional area

29. Organization goals:
• Those ends that an organization seeks to
achieve by its existence and operation.
• Goals are predetermined and describe
future results toward which present
efforts are directed.
These goals are expected to be SMART

30. The organization and its environment
• PEST ANALYSIS
• Political
• Economic
• Social
• Technological

31. ORGANIZATIONAL CULTURE

32. Characteristics of Org culture
• Organization’s goals & mission statement
• Behaviour patterns – interaction within
the organization and between
organization and stakeholders
• The distribution of authority
• The structure of the organization
• The nature of leadership – how power is
exercised.

33. Org. culture
• Values of Organization
• The entrepreneurial spirit
• Its receptiveness to embracing change

34. 4 TYPES OF ORG. CULTURE BY
HANDY
• Entrepreneurial structure and power
culture - spider’s web
• Bureaucratic structure and role culture
greek temple
• Matrix structure and task culture
• Independence structure and person
culture

36. Definition
Refers to the deep-seated values
underpinning the organization, manifesteed
through a no. of features. Being
recognized as one of the fundtmental
contributions to success or failure of
organization in meeting their goals.

37. Characteristics of Org. Culture – to
develop an understanding
• Organizational goals – mission statement
• Dominant behaviour patterns –
interactions with all stakeholders
• Distribution of Authority – decision
making
• Structure of Organization –
• The nature of leadership –how power is
exercised

38. • Values of organization
• The entrepreneurial spirit
• Its receptiveness to change

39. Handy’s 4 types of Organizational Culture
• Entreprenerial structure & Power culture
• Spider’s web
• Bureaucratic and Role culture
• Greek temple
• Matrix structure and task culture
• The net
• Independence structure & the person
culture ( cluster )

40. Peter & Waterman’s 2 types of culture
• Rational – derives its structure and
culture from the ideas of classical and
scientific management theory
• Organizations are large – economies of
scale
• Low cost and cheapness of product –
way to success.
• Strict budgets and cash flow analysis

41. • Orthodox thinking is encouraged and
rewarded
• Org. structure is complex and detailed
with job descriptions
• People are treated as factors of
production
• Money is the motivator, non performers
are dismissed, Inspection is used to
achieve quality control/business profits
must be achieved at once

42. Rational - THROB
• Tall
• Hierarchic
• Rigid
• Organized
• Bureaucratic –

43. Alternative Model - Excellence
• Emphasis on quality than on price
• A search for innovation and new products
• A distrust on the over reliance on
numerical analysis
• Long view replacing short termism in
company decisions
• Stress on value instead of profits
• Organizational structure should be simple
and flat.

44. Exellence Model is FELT
Flat
Empowered – greater control over decision
making
Lean – Keeping stock holding to a
minimum and JIT techniques utilized
Teams – Replacement of conventional
departments with multifunctional teams –
work roles are flexible

45. National cultures and its influence on
work place behaviour
• USA
• French
• German
• English

46. Influencing organizational behaviour
1. Missions, objectives and goals – all
workers to pull in the same direction
2. Organization values /ideas –
bureaucracy/ management styles,
structural analysis
Human Relations school – Elton Mayo,
Maslow, Mc Gregor – theory x and y, Mc
Clelland – Hygiene factors
Emphasis on flexible structures and ability
to change

47. Influencing Organizational Behaviour
• 3. Atmosphere and feel of the
organization- Less tangible aspects of
the organizational life - set of unwritten
rules that govern behaviour – ‘the way
we do things around here’ to ensure you
are accepted by both individuals and the
group

48. Less tangible aspects
• Codes of behaviour
• Language - jargon etc.
• Rites - dress codes, after work get togethers,
• Symbols – Office lay outs, size of desks,
number of support staff
• Organizational folklore – stories and anecdotes
that convey values
• Taboos – the signals of don’ts- unacceptable
behaviour

49. OTHER FACTORS TO BE CONSIDERED
• Personality and perception
• Attitudes, learning and stress
• Motivation
• Job satisfaction and job re-design
• Group working
• Leadership
• Communication

50. The Psychological contract – Employee
• Provide safe and hygienic working
conditions
• Make every reasonable effort to provide
job security
• Attempt to provide challenging and
satisfying jobs and reduce alienating
aspects of wok
• Equitable personnel policies and
procedures

51. Psychological Contract -Employer
• Accepting values and ideologies of
organization
• Working hard in pursuit of organizational
goals and objectives
• Not abusing the goodwill shown by
Management
• Showing loyalty to the orgnaizatin
• Observing reasonable standards of
personal behaviour and appearance

52. • Reasonable opportunities for personal
development and career progression
• Treat members with respect
• Demonstrate an understanding and
considerate attitude towards personal
problems

53. Difference between climate and culture
• Culture might be described as the foundation
upon which any organisation is built. It develops
over the longer term and consists of the values –
stated and implicit- beliefs, norms and traditions
which guide how the organisation does its
business and in turn how people behave. In
simple terms, culture could be described as the
personality of the organisation and, often, the
culture of a particular enterprise can be traced
back to those personal values held by the
founder, or it is a reflection of the senior
management in the business.

54. Climate
• Climate, on the other hand, could be
described as something more surface level
and relates to the here and now; it is about
what it feels like to work in the
organisation. If culture is the personality,
then climate has more to do with the mood
or prevailing atmosphere within the
business. The climate is prone to more
short term fluctuations and is determined
by many factors which include leadership,