Organizational Behavior, Attitude and Leadership


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Organizational Behavior, Attitude and Leadership

  1. 1. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY PROJECT REPORT ORGANISATIONAL CHANGE AND DEVELOPMENT D R . VN S H R I V A S T A V A Mo de ls o f O r ga n isat i o n al B eh av i o ur & Att it u de a n d Le a d ers h ip St y les re q u i re d f or Ch a ng e Ma na ge me nt Submitted By: Adesh Mittal (10DCP-053) Adhip Varma (10DCP-054) Ankit Sharma (10DCP-061) Pavni Jain (10DCP-068) Vidur Pandit (10DCP-094) Aarti Batra (10DCP-097)Organisational Behaviour Page 1
  2. 2. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYT ABLE OF C ONTENTSList of Tables 3List of Figures 3Executive Summary 4 Acknowledgements ................................................................................................................................. 5Introduction: Background of the study ........................................................................................................ 6 Models of Organizational Behaviour ...................................................................................................... 6 Autocratic .......................................................................................................................................... 6 Custodial.............................................................................................................................................. 6 Supportive .......................................................................................................................................... 7 Collegial .............................................................................................................................................. 7 Attitude ..................................................................................................................................................... 8 Models of job satisfaction ....................................................................................................................... 9 Affect Theory ....................................................................................................................................... 9 Dispositional Theory ............................................................................................................................ 9 Two-Factor Theory (Motivator-Hygiene Theory) ................................................................................ 9 Job Characteristics Model ................................................................................................................. 10Objective .................................................................................................................................................... 11Methodology .............................................................................................................................................. 12Data Analysis .............................................................................................................................................. 15Discussion and Recommendation .............................................................................................................. 20References .................................................................................................................................................. 21Appendix .................................................................................................................................................... 36 Organisational Behaviour Page 2
  3. 3. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYL IST OF T ABLES 1. Table 1: Sample Data Count 2. Table 2: Descriptive Statistics 3. Table 3: Correlation analysisL IST O F F IGURES 1. Fig1: Graph showing Organisation preferred model 2. Fig2: Graph showing Mean for various factors 3. Fig3: Correlation Chart 4. Fig4: Graph showing best fit - Overall satisfaction with Rewards and recognition 5. Fig5: Graph showing best fit - Overall satisfaction with Personal Development 6. Fig6: Graph showing best fit - Overall satisfaction with Diversification 7. Fig7: Graph showing best fit - Overall satisfaction with Job Security 8. Fig8: Graph showing best fit - Overall satisfaction with Relationship 9. Fig9: Graph showing best fit - Overall satisfaction with Work Duration Organisational Behaviour Page 3
  5. 5. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYA CKNOWLEDGEMENTSApart from our efforts, the success of this project depends largely on the encouragement andguidelines of Dr. V N S H R I V A S T A V A . Words defeat us in expressing our deep sense of gratitude forour professor, whose tremendous support and constructive direction enabled us to select ourproject and work towards overcoming all the challenges posed by it. His valuable time andmeticulous attention towards our project is fully acknowledged.We also thank our colleagues who were a constant source of information and helped us withconducting the surveys. Organisational Behaviour Page 5
  6. 6. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYI NTRODUCTION -B ACKGRAUND OF THE STUDY Elements of Organizational Behavio ur The organizations base rests on managements philosophy, values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcomes are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from. Models of Organizational Behaviour There are four major models or frameworks that organizations operate out of, Autocratic, Custodial, Supportive, and Collegial: Autocratic — the basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal. Organisational Behaviour Page 6
  7. 7. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYCustodial — the basis of this model is economic resources with a managerialorientation of money. The employees in turn are oriented towards security andbenefits and dependence on the organization. The employee need that is met issecurity. The performance result is passive cooperation.Supportive — the basis of this model is leadership with a managerial orientation ofsupport. The employees in turn are oriented towards job performance andparticipation. The employee need that is met is status and recognition. Theperformance result is awakened drives. Organisational Behaviour Page 7
  8. 8. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYCollegial — the basis of this model is partnership with a managerial orientation ofteamwork. The employees in turn are oriented towards responsible behaviour andself-discipline. The employee need that is met is self-actualization. The performanceresult is moderate enthusiasm.ATTITUDEAttitude is Evaluative statements or judgments concerning objects, people, orevents. Attitude is defined as "a way of looking at life; a way of thinking, feeling orbehaving." Therefore an attitude is not just the way we think, but the way we think,feel and do.Our attitude in the workplace is one of the most telling aspects of how others in thecompany look at us and feel about us as a co-worker. A first impression can be ahard thing to shake especially if its a bad one. In other words, once you have gottena workplace reputation as being lazy, a slacker, a whiner or other negative tag, it canbe hard to get rid of.TYPES OF ATTITUDES o Job Satisfaction - A collection of positive and/or negative feelings that an individual holds toward his or her job. o Job Involvement - Identifying with the job, actively participating in it, and considering performance important to self-worth. Organisational Behaviour Page 8
  9. 9. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY o Organizational Commitment - Identifying with a particular organization and its goals, and wishing to maintain membership in the organization (Affective, Normative, and Continuance Commitment) o Perceived Organizational Support (POS) -Degree to which employees feel the organization cares about their well-being o Employee Engagement -An individual’s involvement with, satisfaction with, and enthusiasm for the organizationAttitude Surveys involve eliciting responses from employees through questionnairesabout how they feel about their jobs, work groups, supervisors, and theorganization. In our survey we have focused on the Job Satisfaction aspect ofattitude at work place. We have conducted a survey among people from variousindustries and measured various parameters that determine job satisfaction.Job satisfaction describes how content an individual is with his or her job. It is inregard to ones feelings or state-of-mind regarding the nature of their work. Jobsatisfaction can be influenced by a variety of factors, eg., the quality of onesrelationship with their supervisor, the quality of the physical environment in whichthey work, degree of fulfillment in their work, etc.One of the biggest preludes to the study of job satisfaction was the Hawthornestudies which sought to find the effects of various conditions (most notablyillumination) on workers’ productivity. This finding provided strong evidence thatpeople work for purposes other than pay, which paved the way for researchers toinvestigate other factors in job satisfaction.MODELS OF JOB SATISFACTIONAffect TheoryThe main premise of this theory is that satisfaction is determined by a discrepancybetween what one wants in a job and what one has in a job. Further, the theorystates that how much one values a given facet of work (e.g. the degree of autonomyin a position) moderates how satisfied/dissatisfied one becomes when expectations Organisational Behaviour Page 9
  10. 10. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYare/aren’t met. When a person values a particular facet of a job, his satisfaction ismore greatly impacted both positively (when expectations are met) and negatively(when expectations are not met), compared to one who doesn’t value that facet. Toillustrate, if Employee A values autonomy in the workplace and Employee B isindifferent about autonomy, then Employee A would be more satisfied in a positionthat offers a high degree of autonomy and less satisfied in a position with little or noautonomy compared to Employee B. This theory also states that too much of aparticular facet will produce stronger feelings of dissatisfaction the more a workervalues that facet.Dispositional TheoryAnother well-known job satisfaction theory is the Dispositional Theory. It is a verygeneral theory that suggests that people have innate dispositions that cause them tohave tendencies toward a certain level of satisfaction, regardless of one’s job. Thisapproach became a notable explanation of job satisfaction in light of evidence thatjob satisfaction tends to be stable over time and across careers and jobs.Two-Factor Theory (Motivator-Hygiene Theory)Frederick Herzberg’s two factor theory attempts to explain satisfaction andmotivation in the workplace. This theory states that satisfaction and dissatisfactionare driven by different factors – motivation and hygiene factors, respectively. Anemployee’s motivation to work is continually related to job satisfaction of asubordinate. Motivation can be seen as an inner force that drives individuals toattain personal and organization goals.Motivating factors are those aspects of the job that make people want to perform,and provide people with satisfaction, for example achievement in work, recognition,promotion opportunities. These motivating factors are considered to be intrinsic tothe job, or the work carried out. Hygiene factors include aspects of the workingenvironment such as pay, company policies, supervisory practices, and otherworking conditions. Organisational Behaviour Page 10
  11. 11. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY Job Characteristics Model Job Characteristics Model is widely used as a framework to study how particular job characteristics impact on job outcomes, including job satisfaction. The model states that there are five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) which impact three critical psychological states (experienced meaningfulness, experienced responsibility for outcomes, and knowledge of the actual results), in turn influencing work outcomes (job satisfaction, absenteeism, work motivation, etc.). The five core job characteristics can be combined to form a motivating potential score (MPS) for a job, which can be used as an index of how likely a job is to affect an employees attitudes and behaviours.O BJECTIVE The objective of the project is to identify what behavioural model your organization prefers to operate in to study the job satisfaction aspect of attitude at the work place Job satisfaction depends upon various factors like pay and benefits, working conditions, co-workers, job content and career progress. It also varies from person to person depending upon age, gender, qualification and personal choices. Keeping all these things in mind we have prepared a survey questionnaire and conducted survey among people across Accenture Services Pvt Ltd and Mphasis. This report discusses the findings of the study that examined the role of various factors that affect job satisfaction in different companies and the behavioural model that organization prefers to operate in. The study sought to determine the relationship between all these factors with the overall job satisfaction. Organisational Behaviour Page 11
  12. 12. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYM ETHODOLOGY Sample The first major task at hand was to prepare the questionnaire for job satisfaction and behavioural model for organization in which it prefers to operate in. Once we were through with this part, the concern was on whom to check this questionnaire. So we selected 30 people arbitrarily, 15 each from Accenture and Mphasis. We convinced all of them to answer honestly, all the questions. The main objective behind selecting people from different organisations was to gather a consolidated set of thinking. As every industry has its very own way of working, own principles and own priorities, thus we could get the major factors that are responsible for job satisfaction. The table below presents the company, no. of respondents, age-group and gender. Accenture/Mphasis Gender Male Female 18 12 Table 1: Sample Data Count Brief of Organizations As we have assorted set of people from various industries and it is quite impossible to give a laconic description of all of them, we selected some renowned organizations in their fields. The major chunks were from the IT industry and rest from all other. So the briefing is as: Accenture is a global management consulting, technology consulting and technology outsourcing company. Previously incorporated in Bermuda, since 1 September 2009 the company has been incorporated in Ireland with its global headquarters located Organisational Behaviour Page 12
  13. 13. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYin New York. It is said to be the largest consulting firm in the world, as well as being aglobal player within the technology consulting industry. Accenture is a FortuneGlobal 500 company. As of 2010, the company had more than 200,000 employees inmore than 200 locations in over 120 countries. Accentures current clients include 96of the Fortune Global 100 and more than three quarters of the Fortune Global500.For the fiscal year ended 31 August 2009, the company generated net revenuesof US$21.58 billion.MphasiS, a unit of Hewlett-Packard Co., is an information technology servicescompany based in Bangalore, India. MphasiS is certified with ISO 9001:2008, ISO/IEC27001:2005 and is assessed at CMMI v 1.2 Level 5. It is the sixth largest IT Companyin India with more than 38,000 employees as of 2010. The company has 29 offices in14 countries with delivery centres in India, Sri Lanka, China, North America andEurope.In September 2009 MphasiS changed its brand identity by dropping EDS associationto become "MphasiS, an HP Company" after HP retired EDS Brand to become "HPEnterprise Services". MphasiS operates as an independent HP subsidiary with its ownboard and continues to be listed on Indian markets as "MphasiS Limited".MethodThe behavioural model questionnaire was used to find out the mode in which theorganization prefers to operate in. It is based upon the theory that organizationsgenerally operate out of one of four modes - Autocratic, Custodial, Supportive, orCollegial. The lowest score possible for a model is 6 (Almost never) while the highestscore possible for a model is 30 (Almost always). 6 questions were used to predicteach kind of model.The job satisfaction questionnaire was used to measure the different attributes thatlead to job satisfaction. Our questionnaire comprised 27 questions of which 5questions were used to determine Rewards & Recognition, 5 questions sued todetermine Personal Development, 6 questions used to determine relationship, 7 Organisational Behaviour Page 13
  14. 14. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYquestions used to determine working duration, 2 questions used to determinediversification and 1 question used to determine job security. The respondents wereto choose the option from 5 options (scoring: 5 for Always, 4 for Often, 3 for Sometime, 2, for Rarely, & 1 for Never) which described the way they felt about each ofthe attributes. Then there was another section of 6 questions which described thegeneral perception of people regarding job satisfaction.The highest of the four scores indicates what model you perceive your organizationto normally operate in. If your highest score is 24 or more, it is a strong indicator ofthe model it operates in.The lowest of the three scores is an indicator of the stage your team is least like. Ifyour lowest score is 12 or less, it is a strong indicator that your organization does notoperate this way.If two of the scores are close to the same, you are probably going through atransition phase. If there is only a small difference between three or four scores,then this indicates that you have no clear perception of the way your organizationbehaves, or the organizations behaviour is highly variable.Also note that if several scores are close to being the same, then the one on the rightcould be stage that you company primarily operates out of. That is a collegialcompany could have patterns of both custodial and supportive organizationsProcedureAll sample people from Accenture and Mphasis were mailed the questionnaire andwere also explained the purpose of survey so that we could get genuine responses,the way the employees actually felt and would react in the given situations.Then, the average score for each of the four models - Autocratic, Custodial,Supportive, or Collegial was calculated for all filled questionnaire using thecategorization described in the method section. Organisational Behaviour Page 14
  15. 15. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY Then, the average score for each factor i.e. Rewards & Recognition, Personal Development, relationship, working duration, diversification and job security was calculated for all filled questionnaire using the categorization described in the method section. The Pearson correlation coefficient was used to determine whether there were significant relationships between Job Satisfaction and the different parameters we considered to have an impact on job satisfaction. To find if the relationships were significant, the level of significance was established at p<0.05. Lastly, after interpreting the results we were able to judge which factors are more relevant for overall job satisfaction of the employee.D ATA A NALYSIS Organisation Model Autocratic Custodial Supportive Collegial 19% 19% 33% 29% Fig1: Graph showing Organisation preferred model Fig 1 shows the four major models or frameworks that organizations operate out of, Autocratic, Custodial, Supportive, and Collegial. It is visible that the preferred mode of operation for the chosen two companies is a blend of Supportive &Custodial. Organisational Behaviour Page 15
  16. 16. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY Std. N Minimum Maximum Mean Deviation REWARD AND 30 2 4 3.333333333 0.479463301 RECOGNITION PERSONAL 30 1.6 4 2.893333333 0.54515631 DEVELOPMENT WORKING 30 2 4.285714286 3.066666667 0.534171286 DURATION RELATIONSHIP 30 2.666666667 4.666666667 3.627777778 0.624658272 DIVERSIFICATION 30 2.5 4.5 3.48 0.505418911 JOB SECURITY 30 2 5 3.2 0.886683087 OVERALL 30 2 4.2 3.218333333 0.706189792 SATISFACTION Valid N (list wise) 30 Table 2: Descriptive StatisticsTable 2 shows the minimum, maximum, mean and standard deviation for the all thecategories along with the overall satisfaction. 4 3.5 3 Axis Title 2.5 2 1.5 1 0.5 0 Axis Title Fig2: Graph showing mean for various factorsFig 2 shows the means plotted for all the factors which are considered for jobsatisfaction. Here, it can be observed, that the mean for personal development andSecurity is closest to the mean for overall satisfaction score. Rewards andrecognition & Relationships mean scores are the highest.Here for Regression & correlation Analysis, overall satisfaction is the dependentvariable and rewards & recognition, personal development, relationship, working Organisational Behaviour Page 16
  17. 17. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYduration, diversification and job security are the independent variables. Figure 3depicts the same Table3: Correlation analysis Correlation- Overall Satisfaction 0.8 0.7 0.6 0.5 Correlation 0.4 0.3 0.2 0.1 0 -0.1 -0.2 WorkDuratio Diversificatio RewardsReco JobSecurity Relationships PersonalDev n n g Series1 0.112342041 -0.131980549 0.286339707 0.123759404 0.744122591 0.34920112 Fig3: Correlation Chart Organisational Behaviour Page 17
  18. 18. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYFigure-4 shows the best fit regression line for reward & recognition and overallsatisfaction. As observed from the table, reward & recognition has very high degreeof correlation with overall job satisfaction. This reflects that reward & recognitionwill greatly affect the overall job satisfaction of the employee. 5 OVERALL SATISFACTION OVERALL 4 SATISFACTION 3 2 Predicted OVERALL 1 SATISFACTION 0 Linear (OVERALL 0 2 4 6 SATISFACTION) REWARD AND RECOGNITION Fig4: Graph showing best fitFigure-5 shows the best fit regression line for personal development andoverall satisfaction. As observed from the table, personal development hashigh degree of correlation with overall job satisfaction. This reflects thatpersonal development will affect the overall job satisfaction of the employee. 5 OVERALL SATISFACTION OVERALL 4 SATISFACTION 3 2 Predicted OVERALL 1 SATISFACTION 0 Linear (OVERALL 0 2 4 6 SATISFACTION) PERSONAL DEVELOPMENT Fig5: Graph showing best fitFigure-6 shows the best fit regression line for diversification and overallsatisfaction. As observed from the table, diversification has low degree ofcorrelation with overall job satisfaction. This reflects personal developmentwill affect the overall job satisfaction of the employee to a small extent. Organisational Behaviour Page 18
  19. 19. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY 5 OVERALL SATISFACTION OVERALL 4 SATISFACTION 3 2 Predicted OVERALL 1 SATISFACTION 0 Linear (OVERALL 0 2 4 6 SATISFACTION) DIVERSIFICATION Fig6: Graph showing best fitFigure-7 shows the best fit regression line for Job security and overallsatisfaction. As observed from the table, Job security has very low degree ofcorrelation with overall job satisfaction. This reflects Job security will affect theoverall job satisfaction of the employee to a very small extent. 5 OVERALL SATISFACTION OVERALL 4 SATISFACTION 3 2 Predicted OVERALL 1 SATISFACTION 0 Linear (OVERALL 0 2 4 6 SATISFACTION) JOB SECURITY Fig7: Graph showing best fitFigure-8 shows the best fit regression line for relationship and overallsatisfaction. As observed from the table, relationship has moderate degree ofcorrelation with overall job satisfaction. This reflects relationship will affect theoverall job satisfaction of the employee to a moderate extent. Organisational Behaviour Page 19
  20. 20. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY 5 OVERALL SATISFACTION OVERALL 4 SATISFACTION 3 2 Predicted OVERALL 1 SATISFACTION 0 Linear (OVERALL 0 2 4 6 SATISFACTION) RELATIONSHIP Fig8: Graph showing best fit Figure-9 shows the best fit regression line for work duration and overall satisfaction. As observed from the table, work duration has a low inverse correlation with Overall satisfaction. This reflects work duration will negatively affect the overall job satisfaction of the employee to a low extent. 5 OVERALL Overall Satisfaction 4 SATISFACTION 3 2 Predicted OVERALL 1 SATISFACTION 0 Linear (OVERALL 0 2 4 6 SATISFACTION) Work Duration Fig9: Graph showing best fitD ISCUSSION A ND R ECOMMENDATIONSFrom the Pearson Correlation values we can conclude that there exists a positive correlation(direct proportionality) between rewards and overall satisfaction, personal developmentand overall job satisfaction, relationship and overall job satisfaction, diversification andoverall job satisfaction, job security and overall job satisfaction.There exists a negative correlation (inverse proportionality) between working duration andoverall job satisfaction. The positive correlation between rewards and job satisfaction is aresult of the fact that, the more rewards and recognition that employee gets it helps him toperform better and thereby instil a sense of satisfaction in him that his work is beingrecognized thereby contributing to overall job satisfaction. Organisational Behaviour Page 20
  21. 21. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYThe positive correlation between relationship and job satisfaction could be a result of relaxmind-set, better team work and proper communication of problems and thereby fastersolutions all of which are a result of having better relationship with peers and higherauthority. Then there is the obvious factor of personal development which is what anyemployee will look for in his jobs, so the more the employee feels he is having an addition tohis skills and thereby to his development the more satisfied he will be doing the work.The positive correlation between jobs security and job satisfaction could be due to the factthat that if people are more secured in their jobs they tend to attain higher levels ofmotivation to do the job and this will have an impact on the satisfaction they drive from thekind of work they do.The negative correlation between working duration and job satisfaction could be due to thefact that when employees work in different timings there could be a problem of co-ordination and also the employees might feel that the division of work is not appropriateleading to a dissatisfaction amount the employees, plus most people prefer to have a fixedschedule each day and might not prefer frequently changing work timings so that could alsobe a reason for the negative correlation between working duration and job satisfaction.Now from an organizational point of view it is important to lay emphasis on the significantparameters and make sure that these factors are taken care of to have high level of jobsatisfaction among the employees, at the same time the moderately significant parametersshould not be neglected. From this study of ours we have found the various parameters thatcan affect job satisfaction and how the employer must make sure on what factors to targetto maintain the motivation level of employees and thereby imbibe a feeling of jobsatisfaction among them.In todays fast paced world, change will happen and will affect everyone. Organizationalchange driven by technology and world competitiveness is transformational, not justdirectional. Effective CEOs who want to be in control of change in their organization knowthat positive change is leader directed. Transformation begins with awareness and cannottake place without insight. The most important factors in managing proactive change arepersonal and organizational awareness. A high degree of personal and organizational Organisational Behaviour Page 21
  22. 22. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYawareness improves staffing decisions, team building, communication, culture, andleadership effectiveness. Awareness brings insights that transform "good" results into"great" results.Focused awareness establishes competitive advantage and creates consistent results,including improved revenue and profitability. Successful leaders have a strong self-awareness and deeply understand their emotions, strengths, limitations, values andmotives. They are realistic and honest with themselves and about themselves. They knowwhere they are headed and why.Organizations must have a similar understanding. In both areas executives must be realistic.They cannot rationalize problems away or convince themselves that the situation isdifferent than it truly is.Organizational AwarenessSuccessful CEOs have a deep understanding of the organizational structure, leadership styleand culture of their companies. They know employees care about the value they contributeand how satisfying their jobs are. Successful CEOs ask whether there is a gap betweenperception and experience, how employee productivity could be enhanced and whether thecompany culture promotes competitiveness. Structure is important. Inefficient bureaucraticcompanies are not competitive. They demotivate their employees from taking initiative. Onthe other hand, highly versatile organizations are often overly flexible and dont providestability. The proper balance for your organization is crucial to its success. Leadership styledetermines an organization’s long term success.Since employees always react to managements leadership style, proactive change is bestcarried out in an atmosphere where employees feel valued, have the ability to help setdirection and initiatives, can develop personally and know management has their bestinterests at heart. Culture also has a significant impact on organizational performance.Daniel Goleman, the pioneer in emotional intelligence, determined through numerousstudies that culture can positively impact performance by as much as 25%. PersonalAwareness Effective CEOs understand that to be proactive in todays competitiveenvironment they must continually develop the strengths of their key people, share power Organisational Behaviour Page 22
  23. 23. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYwith them and encourage active participation. The management team that works togetherto proactively effect change becomes a major organizational strength.Effective CEOs also clearly understand themselves and the people in their organization. Theybuild strong interpersonal effectiveness into their organizations, creating an environmentwhere everyone works together with trust and openness. Organizations built oncompetitiveness in the market and between departments do not easily establish trust.People may be difficult and hard to understand with a poorly developed ability to readothers. This is why effective CEOs use surveys to assess personality characteristics thatcorrelate highly with job success.These surveys provide strategic intelligence that shows why people behave the way they do.Good assessments have a high degree of accuracy and meet legal guidelines. Executives usemany types of assessments; each designed to provide specific results for different needs.Basic assessments are limited to evaluating only a few traits such as introversion /extroversion and dominance / submissiveness. Higher order assessments may measure upto ten traits and correlate them closely with job success.Assessments have three uses:1. At their most basic, assessments describe individual characteristics. They are commonlyused in hiring, avoiding the problem of hiring someone only to find out they dont meetexpectations. Surveys help determine whether a person will be a team player in a givenculture before they are hired. Numerous studies show that survey use reduces hiringmistakes and turnover by up to 30%2. Assessments may also be diagnostic and predictive. They tell us why a manager is the wayshe is. Once we know why, we can predict how she will behave in new situations. Weminimize promotion mistakes that cause organizational problems and distract fromproductive work3. High order surveys are developmental. They provide the foundation needed forexecutives to coach employees to a higher level of success. These surveys addressleadership, communication and productivity. They define personal characteristics so Organisational Behaviour Page 23
  24. 24. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYmanagement can help individuals achieve personal dynamic balance and interpersonal teambalanceSummaryTransformational change driven by technology and international competition makes runninga company very challenging. To cope, effective leaders need to build change into theorganization’s culture. Controlled change allows them to be proactive and maintaincompetitive advantage. Deep and candid knowledge of organizational structure, leadershipstyle and culture provide the insight necessary to effect change. Similarly, understanding thepersonal leadership characteristics of the management team adds even more insight.Effective CEOs use impartial surveys to uncover basic organizational and personalcharacteristics.This tells them where the organization and individual team members are. Comparing thatinformation to where they want to be determines the gap they need to close. Surveysprovide strategic intelligence, allowing the management team to reduce uncertainty in thedecision process. They address leadership by revealing the unseen so management workswith a higher degree of certainty. Realistic insight gained from awareness is the precursorfor transformational change. Insight brings focused leadership. Focus drives performance.Performance drives results.Utilize Varied Leadership StylesGood leaders understand that different management styles are needed to deal withchanging situations. The best leaders can easily use four of these methods.Good teachers and leaders share a secret in their ability to communicate specific ideas oractions to students and employees. They know different people learn and respond indifferent and varied ways. Some of us learn by listening, some by seeing and others requirea more hands-on approach.Leadership Styles - A exceptional leader can vary their management or leadership style tobest suit an individual employee, work group or business situation. Research first advancedby Daniel Goleman in 2000, suggests that there are six leadership styles that can be Organisational Behaviour Page 24
  25. 25. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYemployed in the workplace. These styles are coercive, authoritative, affiliate, democratic,pacesetting and coaching. Research conducted also shows that the more of these styles aleader exhibits; the better they perform as leaders in their organization. The very bestleaders can utilize four or more these styles.Implications of Change - Jerry Robinson Jr., a distinguished professor emeritus at DeltaState University, has drawn some comparisons between leadership styles and the ability ofan organization to handle change. Change generates conflict within an organization.Successful leadership styles should vary with managerial implications of change and theamount of time needed to accomplish the needed revision.Directive Approach - Groups with few resources and limited time are likely to use adirective approach (coercive or authoritative styles) to accomplish the desired goals. This isa top down approach that would be familiar to those in the military or law enforcementfields.Mixed Directive Approach - An organization with a little more in the way of time andresources may use a mixed directive style that might include affiliate or democratic styles toaccomplish their goals. This can be done when there is time for bargaining and negotiationamong those involved in the required change.Developmental Directive Approach - Finally, if change is planned and viewed in the longterm, a developmental directive type style can be used. Developmental directive leadershipstyles would include pacesetting and coaching. The developmental directive style offers themost opportunity for growth of a learning organization and employee development. Thistype of planned change is for groups having substantial time and robust resources tofacilitate the process.Putting it together - Warren Bennis known as the foremost expert on organizational changeand leadership described some common leadership traits in 1994. Bennis says that aneffective leader has a guiding vision or purpose for the organization, passion or enthusiasmfor the work being done, personal integrity, curiosity about the world and the daring to trysomething new. The skill of integrity is subdivided by Bennis into self-knowledge, candorand maturity. Daniel Golemans pioneering work in emotional intelligence found that Organisational Behaviour Page 25
  26. 26. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYeffective leaders have mastery of the core competencies identified by Bennis and make useof multiple leadership styles.Selecting the Right Leadership StyleEffective leadership in the change management process is particularly important because ofall the factors involved in organizational change. According to McShane and VonGlinow(2004), a leader must be able to “influence, motivate and enable others to contributetoward the effectiveness and success of the organization.” Stabilizing the organization afterthe change process begins is critical to continued success.McShane and VonGlinow (2004) outline seven competencies to effective leadership. Thosecompetencies include emotional intelligence, integrity, drive, leadership motivation, self-confidence, intelligence and knowledge of the business. Leaders with this set ofcompetencies and skills should be effective in their leadership ability regardless of theleadership style that they favour.Selecting the right leadership style to influence the effectiveness of change is important iflarge organizational change is to be successful. Different leadership styles to considerinclude visionary/inspirational leaders, commanding leaders, situational leaders, people-oriented and task-oriented leaders. The right leadership style might change as the situationchanges within an organization.A visionary/inspirational leadership style should be used when a leader is trying to movepeople towards a shared dream. However, a coaching leadership style might be used toeffectively connect what a person wants with organizational goals. A commandingleadership style gives clear direction and is useful in cases of emergency. The situationalleadership model suggests that leaders change their style of leadership based on how readytheir followers seems to be.When drastic organizational changes are involved, having leaders who are people-orientedas opposed to task-oriented will be better able to anticipate the needs of the employees asthey motivate and enable them to change. Also, by using Kurt Lewin’s three-stage model forchange which involves initiating change (unfreezing), managing the change (changing) and Organisational Behaviour Page 26
  27. 27. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYthen stabilizing the change (refreezing), a leader can effectively manage the change processand the employees involved in the change.Steps for Leading ChangeKreitner and Kinicki (2004) outline John Kotter’s eight steps for leading organizationalchange as another model to follow when attempting to manage the change process. Kottersuggests establishing a sense of urgency, empowering groups of people to lead the change,and developing a vision or strategy. Kotter also recommends eliminating barriers to change,generating short-term successes, reinvigorating the change process and finally anchoring orstabilizing the new approaches.Effective leadership in the change management process is particularly important because ofall the factors involved in organizational change. As situations shift, leaders must be able toadapt and motivate employees to reduce fear, uncertainty and loss of employee morale.Anytime an organization goes through major changes, using the most effective leadershipstyle can directly impact the success of the change and impact to the organization.How Command and Control as a Change Leadership Style Causes Transformational ChangeEfforts to FailCommand and control is by far the most common change leadership style. Most of today’sleaders were mentored themselves by command and control managers, and the culture ofmost organizations is still based on command and control norms. It is hard to escape thisleadership style’s historic influence and dominance. But as a change leader, you must.Here’s why.Command and control as a change leadership style destroys virtually any chance of successin nine out of ten transformational change efforts. For starters, command and control:•Limits the engagement and commitment you must develop in your employees, and oftenactually promotes resistance Organisational Behaviour Page 27
  28. 28. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY•Lessens your chances of creating a change process that will lead to success•Keeps you from being able to make the real-time course corrections duringimplementation that are necessary for optimal results•Minimizes attention to necessary people issues like consistent communications andemotional reactions to changeIn this article, we will explore the limitations of command and control as a changeleadership style, and introduce “co-creating” as an alternate way of leading transformationthat delivers higher quality change results AND simultaneously establishes a foundation fora high performing culture.As you read, recall the unique features of transformational change:•The process of transformation usually begins long before a clear future state can beidentified•The sheer magnitude of transformational change demands a major shift in the leaders’ andemployees’ mind-sets and behaviour and the organization’s culture•The ultimate success of the transformational change process depends on how well thechange leaders make real-time adjustments to their outcomes and process as newcircumstances occurWe will delve into each of these key features shortly. But first, let’s explore what drives thecommand and control style.Command and Control Is Based on a Number of Erroneous AssumptionsCommand and control is based on establishing and maintaining power over, and control of,people and organizational processes. On the surface, this sounds like a good idea: youcertainly don’t want people’s behaviour or steps in your change process to be “out ofcontrol.” However, this notion of being able to command and control people and processesonly goes so far. Organisational Behaviour Page 28
  29. 29. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYA number of usually unspoken assumptions drive the use of command and control. As youread them, imagine the behaviour of change leaders you know who believe in theseassumptions:•Leaders know best•Leaders should know where they are going (goals, outcomes) and must predetermine theplan for how to get there (process)•Controlling human behaviour and action during implementation—so there is minimalvariance from the predetermined plan—is a requirement of success•The environment/marketplace won’t change enough to be a factor during implementation,and if it does, leaders can and must control its influence•If leaders encounter unplanned variables, they must quickly control the negative impactson the change effort through problem solving and then return to the implementation oftheir current plan•Employees won’t naturally contribute positively to the change effort, so leaders must“help” them by commanding and controlling their behaviour and involvement. Leaders mustforce people’s cooperation.•Needing to alter change plans connotes leadership failure and means that the changeleaders did not plan thoroughly enoughYou can argue that these assumptions are somewhat applicable for two types oforganizational change—developmental and transitional change. However, they arecompletely false and inappropriate for transformational changes. (See Beyond ChangeManagement: How to Achieve Breakthrough Results through Conscious Change Leadership,Dean Anderson and Linda Ackerman Anderson, pages 51–79, for a complete discussion ofthe different types of change.)In projects that can be isolated from their environment (e.g., protected from outsideinfluences) and for changes that do not require people to change beyond learning new Organisational Behaviour Page 29
  30. 30. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYtechnical or operational skills, command and control can work. In these cases, apredetermined outcome and project plan can be established and executed through arelatively stable set of circumstances. Employees won’t have to change much and won’tneed to be fully committed to the effort to enable success. Keep in mind, however, thatmaking command and control work in such developmental or transitional change projects isa far cry from making the projects extremely successful. Command and control seldom leadsto optimal results in any type of change.The above assumptions are erroneous regarding transformational changes for a number ofreasons. First, transformation is usually catalysed by major changes occurring in theenvironment/marketplace. These changes are not isolated events, but in this day and age,continuous. Consequently, change leaders can never be sure of their destination when theybegin their change efforts.More often than not, circumstances are likely to arise that demand a change in direction.Since change leaders cannot protect their change efforts from the significant influences ofthe environment, they cannot create a plan and expect to control all of the dynamics thatmay impact its execution. They will need to continuously alter or course corrects both theirplan and their destination throughout the change.Consequently, to have any level of success, change leaders need many eyes and ears tunedto the change effort, marketplace, and customer dynamics, as well as internal organizationalforces. Whose eyes and ears do they need? Employees!Employees frequently receive critical data for course correction long before leaders becauseemployees are closer to the action. They are keys to the early warning system for neededadjustments to both the goals of the transformation and the plans for getting there.Therefore, employees need to participate as full players, not coerced victims. They mustemotionally “own” the change and understand its intent as much as the leaders do so theycan contribute to moving it forward in a positive direction.Furthermore, in transformation, the nature of the change is so profound that theorganization’s culture and employees’ mind-sets and behaviour must change to succeed. Organisational Behaviour Page 30
  31. 31. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYBoth leaders and employees must evolve their mind-sets about how work gets done, theirrole in the work, and the way the organization functions.For instance, they might need to embrace new business models, develop partnershiprelationships with previously adversarial departments, design radically new work processes,take on more responsibility, etc. Leaders can command and control employees to learn newtechnical skills, but they cannot coerce this level of personal change. That can only beaccomplished by willing participants— willing because they see the value and necessity forboth themselves and the organization. Therefore, a change leader’s mind-set, style, andbehaviour, and the change process they design as a result of their orientation, must catalyseemployees to want to participate, to choose to contribute, rather than force them to do so.The Key Is to Co-Create with Employees and Circumstances, Not Exercise Power or ControlOver ThemCo-creating implies working with. It means operating as a team, aligned across hierarchicaland functional boundaries in pursuit of what is best for the overall organization. A changeleader operating in a co-creative style views employees as strategic partners in the change,not just “targets” of it. Pragmatically, this means:•Providing employees all the marketplace information about why the change is necessary(the case for change)•Asking for and using employee input about the vision or direction of the change (itsintended outcomes)•Involving employees in the design of what needs to change (the content of the change)•Putting employees on teams critical to making the change happen, such as thecommunication team, the design team, even the change leadership team itself•Giving employee’s decision authority on the change as it pertains to their “local”environment Organisational Behaviour Page 31
  32. 32. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY•Providing employees with a clear structure and process for reporting information andissues pertinent to the success of the change, including potential course corrections to itRegarding the actual change process, working with (co-creating) means not trying to stampout problems—those “negative” outside influences that were not planned for, but instead,letting those forces influence your plan and direction.Where a command and control leader will try to eradicate problems so his or her rigid plancan continue, a co-creative leader will “listen to the messages” embedded in problems todiscover if course corrections are necessary.A co-creative leader assumes variance will occur and perceives problems as “gifts” revealingneeded course correction so they can achieve the best result. Where change leadersoperating in a command and control orientation often miss wake-up calls for alteration andmarch down paths doomed for failure, co-creative change leaders hear these wake-up callsand engage with employees to figure out how to handle them successfully (i.e., they co-create solutions.)Transformational Change Success Requires Change Leaders to Transform Themselves toEmbrace and Model a Co-Creative StyleIn the late 1980’s and early 90’s, Being First, Inc. found out the hard way that anorganization that attempts to design and implement transformation without addressingpersonal transformation in its leaders is doomed for failure. Back then, we accepted, albeitreluctantly, clients who wanted our cutting-edge change but were unwilling to engage in thecritical personal transformation work of the leaders.We learned then that the key to successful transformation was evolving leaders’ mind-setsabout change. Over time, we decided as a firm to no longer engage in long-term consultingrelationships unless the client, after some initial change education, agreed that co-creatingwas critical to their success, and that they would provide The Breakthrough to ChangeLeadership program to their leaders (CEO included). This program is our method for Organisational Behaviour Page 32
  33. 33. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYexperientially introducing leaders to creating and demonstrating the profound benefits andtangible change results this orientation can deliver to their bottom line.Transformational leadership is the style of leadership a manager uses when he or she wantsa group to push the boundaries and perform beyond the status quo or achieve an entirelynew set of organizational goals. When Lee Iacocca took the helm of the ChryslerCorporation, his vision and use of transformational leadership were integral to the renewedsuccess of the American automobile company in the face of the almost uncheckableJapanese car industry of the early 1980s.Qualities of the Transformational LeaderThe qualities of a transformational leader include the following:•Charisma - A transformational leader is one who has a clear vision for the organization andis able to easily communicate that vision to group members. For example, atransformational leader can easily detect what is most important to individuals and to theorganization as a whole.•Confidence - A transformational leader has a good business sense and is able to see whatdecisions will positively affect the organization. This gives the leader the ability to actconfidently, inspiring trust in team members.•Respect and loyalty - A transformational leader inspires respect and loyalty in individualsby taking the time to let them know they are important.•Expressive praise - A transformational leader is often expressive in praising individuals andthe team on a job well done. Letting them know how much they contributed to one successwill steel them for future challenges.•Inspiration - A transformational leader is a master at helping people does something theywerent sure they were capable of doing. The leader achieves this through praise andencouraging statements. Organisational Behaviour Page 33
  34. 34. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYWorking toward TransformationNo matter how charismatic or innovative the leader, transformation of an entireorganization, or even a unit, does not happen quickly. Most transformations involvechanging the corporate culture—often from one of stale clock-watching and low risk to oneof innovation, moderate risk, and competition.Changing how a large group of individuals works and thinks is not an easy task. Calling ameeting and telling the organization en masse that they are expected to change will notwork. To change the entire organization, a transformational leader must start with thebuilding blocks of the organization: the individual contributors.Individualized AttentionYou have your vision for the future of your group, and your employees are aware of thatvision. But no matter how lofty the goal, no matter how big the envisioned win, pep-rally-style speeches often do little to motivate the individual. This is because the individual isoften motivated to change only when it is for the greater good of self, not for the greatergood of the group. A transformational leader must evaluate the individual contributors inthe organization and discover how to motivate them by playing on their sense of self-interest. This does not mean that if you employ 2,000 people that you need to sit down witheach of them and find out how to light a fire in them. However, you could meet with arepresentative sampling of those individuals. Also, if you do employ 2,000 people, chancesare that you have some intermediate-level managers who could also use some motivation.The philosophy that you pass on to your direct reports will trickle down to their directreports.Looking Beyond "Me"Once you discover how to motivate your group by appealing to their self-interest, try tocommunicate to them what effect their work has on the entire organization. Often, when aperson realizes that his or her position really does make a difference, he or she will find a Organisational Behaviour Page 34
  35. 35. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYnew respect for his or her place in the organization. Individuals will then be working for thebenefit of themselves as well as the benefit of the organization.Motivating GroupsFiguring out the individuals who make up your unit is only half the battle. The successfultransformational leader must also learn how to communicate to groups within theorganization his or her vision and the need for change. Danielle is responsible for running achain of high-end bakeries. New to the job, she wants to turn the organization around andbeat its only competitor. Although she recognizes that the individuals working at each storeknow their jobs well and have years of experience in the business, she wants to reinvigoratethe group and get them to commit to new organizational goals that will position thecompany better in the increasingly competitive market. Danielle is familiar with theindividuals in her group, but now she must turn to some tactics that will help the group pulltogether as a team and bring about organizational change.To do so, a leader can try the following motivators:  Rewards - A leader can raise the groups awareness of rewards for bringing about positive change. For example, if you have a formalized reward system, such as merit bonuses make sure your employees are aware of the policy. Also, you might make it clear to the group that their success will contribute to a larger win for the organization, which could result in increased business. Increased business, in turn, would come back to the employees in the form of increased prosperity  Urgency - An integral step in bringing about organizational change is helping your group recognize the sense of urgency for creating that change. A leader might say that if the organization does not change now, it may be too late in the future. For example, most companies in the mid-1990s needed to start paying attention to the Internet and how their businesses would integrate the Internet into their way of relating to the customer. Even companies that have nothing to do with media or communications have developed a strategy for embracing the Internet Organisational Behaviour Page 35
  36. 36. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GY  Excitement - To bring about organizational change, a transformational leader must also discover a way to get people excited about being part of a sweeping organizational change—for example; helping the group to understand that their efforts will bring about an industry innovation.A PPENDIX Organisational Behaviour Page 36
  37. 37. I N ST I T UT E OF M AN AG E M EN T T EC HN O LO GYAppendix AInterpretation of Degree of Correlation:1. Perfect correlation: If Pearson’s correlation coefficient value is near ± 1, then it said to be a perfectcorrelation.2. High degree of correlation: If Pearson’s correlation coefficient value lies between ± 0.75 and ± 1, thenit is said to be a high degree of correlation.3. Moderate degree of correlation: If Pearson’s correlation coefficient value lies between ± 0.25 and ±0.75, then it is said to be moderate degree of correlation.4. Low degree of correlation: When Pearson’s correlation coefficient value lies between 0 and ± 0.25,then it is said to be a low degree of correlation.5. No correlation: When Pearson’s correlation coefficient value lies around zero, then there is nocorrelation. Organisational Behaviour Page 37