Organizational Processes=18


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Organizational Processes=18

  1. 1. Designing Organizational Frameworks for High Performance
  2. 2. Organizational Processes for high performance <ul><li>Communication </li></ul><ul><li>Decision Making </li></ul><ul><li>Team Work </li></ul>
  3. 3. Communication <ul><li>I speak you hear </li></ul><ul><li>I speak you see </li></ul><ul><li>I speak you understand </li></ul><ul><li>I speak you respond </li></ul><ul><li>A perfect communication is when a thought or idea was transmitted so that the mental picture perceived by the receiver was exactly as envisioned by the sender </li></ul><ul><li>Communication helps us: </li></ul><ul><ul><li>To sort out, categorize, understand and interpret messages we receive from others. </li></ul></ul><ul><ul><li>To understand, interpret and create our own responses to messages we have received. </li></ul></ul>
  4. 4. Functions of Communication <ul><li>Information : provides the information that individuals and groups need to make decisions </li></ul><ul><li>Control : acts to control member behavior </li></ul><ul><li>Motivation : fosters motivation by clarifying the employees what is to be done to improve performance </li></ul><ul><li>Emotional expression : provides a release for emotional expression of feelings and frustrations. </li></ul>
  5. 5. Choice of Communication Media <ul><li>Information richness </li></ul><ul><ul><li>The potential information carrying capacity of data </li></ul></ul><ul><ul><li>High (more information) to low (less information) </li></ul></ul><ul><ul><li>Measured by four factors </li></ul></ul><ul><ul><ul><li>Feedback: immediate to very slow </li></ul></ul></ul><ul><ul><ul><li>Channels used: audio and visual to limited visual </li></ul></ul></ul><ul><ul><ul><li>Type of communication: personal to impersonal </li></ul></ul></ul><ul><ul><ul><li>Language source: body language, verbal or numeric </li></ul></ul></ul><ul><li>Complexity </li></ul><ul><ul><li>Degree of importance, seriousness and difficulty </li></ul></ul>
  6. 6. Information Richness for Different Media Medium Information richness Feedback Channel Type Language source Face-to-face High Immediate Visual, audio Personal Body, verbal Telephone High/mod Fast Audio Personal Limited body, verbal Personal written Mod Slow Limited visual Personal Verbal Formal written Mod/low Very slow Limited visual Impersonal Verbal Formal numeric Low Very slow Limited visual Impersonal Numeric
  7. 7. Communication Media <ul><li>Match the choice of media with the complexity of the issue for effective communication </li></ul><ul><ul><li>Complex issue - rich media </li></ul></ul><ul><ul><li>Overload: if the medium provides more information than is necessary </li></ul></ul><ul><ul><li>Oversimplification: if the medium does not convey sufficient information </li></ul></ul><ul><li>Media usage and organisational levels </li></ul><ul><ul><li>Senior managers, more time in face to face meetings </li></ul></ul>
  8. 8. Directions of Communication <ul><li>Downward Communication </li></ul><ul><li>Upward Communication </li></ul><ul><li>Sideward Communication </li></ul><ul><li>(For details refer to seminar) </li></ul>
  9. 9. Grapevine <ul><ul><li>An informal channel of sharing information of interest between employees with no reporting responsibility </li></ul></ul><ul><ul><li>Fast, often accurate, efficient, and fulfils employees’ social, security, and esteem needs </li></ul></ul><ul><ul><li>Can be used to spread false rumours and destructive information but also effectively supplements the formal channels of communication </li></ul></ul>
  10. 10. Interactive Behavior Categories <ul><li>Study on Verbal Communication carried out by Research Team in UK in late ‘80s </li></ul><ul><li>13 major interactive behavior categories </li></ul><ul><ul><li>Proposing : putting forward a new concept, suggestion, course of action, plan etc. </li></ul></ul><ul><ul><li>Building : extending or developing a proposal which has been made by another person. </li></ul></ul><ul><ul><li>Supporting : a conscious and direct declaration of agreement or support for another person or his ideas. </li></ul></ul>
  11. 11. Interactive Behavior Categories <ul><ul><li>Disagreeing : a conscious, direct and reasoned declaration of different of opinion or criticism of another person's ideas. </li></ul></ul><ul><ul><li>Defending/attacking : attacking another person or defensively strengthening own position. </li></ul></ul><ul><ul><li>Blocking : placing a difficulty or blocking in the path of a proposal without offering any alternative. </li></ul></ul><ul><ul><li>Testing understanding : seeking to establish whether or nor an earlier contribution has been understood. </li></ul></ul>
  12. 12. Interactive Behavior Categories <ul><ul><li>Summarising : restating in a compact form, the content of previous discussions. </li></ul></ul><ul><ul><li>Seeking information : seeking facts, opinions or clarifications from others. </li></ul></ul><ul><ul><li>Giving information : offering facts, opinions or clarifications to others </li></ul></ul><ul><ul><li>Bringing in : a direct and positive attempt to involve others. </li></ul></ul><ul><ul><li>Shutting out : excluding or attempting to exclude others. </li></ul></ul><ul><ul><li>Encouraging : expressing the feeling of being friendly to others. </li></ul></ul>
  13. 13. Effective Verbal Communication <ul><li>Use initiating, responding and clarifying/ seeking verbal behavior in a balanced way </li></ul><ul><li>Avoid strong negative responding behaviors </li></ul><ul><li>Avoid negative behavior spirals and behavior chaining </li></ul><ul><li>Flag positive verbal behaviors </li></ul><ul><li>Use positive supportive behaviors </li></ul>
  14. 14. Decision & Decision Making <ul><li>Decision </li></ul><ul><ul><li>A choice of a course of action </li></ul></ul><ul><li>Decision making </li></ul><ul><ul><li>A process of choosing among alternatives in relation to a situation </li></ul></ul><ul><li>Decision making process </li></ul><ul><ul><li>Intelligence activity (searching the environment for conditions calling for decision making) </li></ul></ul><ul><ul><li>Design activity (inventing, developing and analysing possible courses of action) </li></ul></ul><ul><ul><li>Choice activity (selecting a particular course of action) </li></ul></ul>
  15. 15. Organizational Decisions <ul><li>Programmed decisions </li></ul><ul><ul><li>Decisions made according to pre-established routines and procedures </li></ul></ul><ul><li>Non-programmed decisions </li></ul><ul><ul><li>Decisions made about novel, non-recurring problems for which there are no pre-specified courses of action </li></ul></ul><ul><li>Strategic decisions </li></ul><ul><ul><li>Non-programmed decisions, typically made by high level executives, regarding the direction the organisation should take to achieve its </li></ul></ul>
  16. 16. Criteria for Decision Effectiveness <ul><li>Quality </li></ul><ul><ul><li>Desired outcome while meeting relevant criteria and constraints </li></ul></ul><ul><li>Timeliness </li></ul><ul><ul><li>Closer to the time when a response to the situation is required </li></ul></ul><ul><li>Acceptance </li></ul><ul><ul><li>Ownership of the decision and willingness to take responsibility to implement it </li></ul></ul><ul><li>Ethical appropriateness </li></ul><ul><ul><li>Within the boundary of moral and legal norms </li></ul></ul>
  17. 17. Decision Rationality <ul><li>Rationality: the key basis for making decision: </li></ul><ul><ul><li>Choosing a means to reach a desired end </li></ul></ul><ul><ul><li>The degree of rationality determined by the degree of appropriateness of the means chosen </li></ul></ul><ul><ul><li>Ideally, decisions should be fully objective and logical (i.e. rational), made with complete knowledge </li></ul></ul><ul><ul><li>In actuality, decisions are made with varying degrees of rationality </li></ul></ul>
  18. 18. Types of Rationality <ul><li>Objective rationality : if a decision maximises given values in a given situation </li></ul><ul><li>Subjective rationality : if a decision maximises attainment relative to knowledge of the given subject </li></ul><ul><li>Conscious rationality : if a decision involves a conscious process in making adjustment of means to end </li></ul><ul><li>Deliberate rationality : if a decision involves a deliberate adjustment of means to end </li></ul><ul><li>Organisational rationality : if a decision is aimed at the organisational goals </li></ul><ul><li>Personal rationality : if a decision is aimed at the individual’s goals </li></ul>
  19. 19. Models of behavioral decision making <ul><li>Economic Rationality Model </li></ul><ul><li>Social Rationality Model </li></ul><ul><li>Bounded Rationality Model </li></ul><ul><li>Judgemental Heuristic and Bias Model </li></ul><ul><li>For details, refer to seminar slides </li></ul>
  20. 20. Decision Making Styles Analytical Conceptual Directive Behavioural Hi Lo Tolerance for Ambiguity Task and technical concerns People and social concerns Value Orientations
  21. 21. Decision Making Styles <ul><li>Directive style </li></ul><ul><ul><li>Efficient, pragmatic and systematic in problem solving </li></ul></ul><ul><ul><li>Focus on facts and quick accomplishment </li></ul></ul><ul><ul><li>Action oriented, short run focus, autocratic leadership style </li></ul></ul><ul><li>Analytical style </li></ul><ul><ul><li>Analyse situations in detail and evaluate more information and alternatives </li></ul></ul><ul><ul><li>May take a long time to reach a decision </li></ul></ul><ul><ul><li>Respond well to new or uncertain situations </li></ul></ul><ul><ul><li>Also autocratic leadership style </li></ul></ul>
  22. 22. Decision Making Styles <ul><li>Conceptual style </li></ul><ul><ul><li>Take a broad perspective in problem solving and consider many options </li></ul></ul><ul><ul><li>Discuss to gather information and then use intuition to decide </li></ul></ul><ul><ul><li>Good at taking risks and generating creative solutions </li></ul></ul><ul><ul><li>May also foster an idealistic, indecisive approach </li></ul></ul><ul><li>Behavioural style </li></ul><ul><ul><li>Work well with others and like opinion sharing </li></ul></ul><ul><ul><li>Receptive to suggestions, supportive </li></ul></ul><ul><ul><li>Avoid conflicts and prefer verbal communication </li></ul></ul><ul><ul><li>Difficulty in saying no and making tough decisions </li></ul></ul>
  23. 23. Participative Decision Making <ul><li>Concepts </li></ul><ul><ul><li>Participation, a key theme in decision making </li></ul></ul><ul><ul><li>Unit: individuals or teams </li></ul></ul><ul><ul><li>Structure: formal or informal </li></ul></ul><ul><ul><li>Type: intellectual, emotional and physical involvement </li></ul></ul><ul><ul><li>Degree: no participation to full participation </li></ul></ul>
  24. 24. Participative Decision Making <ul><li>Individual participation techniques </li></ul><ul><ul><li>Those in which a subordinate makes an input or somehow affects the decision making of a superior </li></ul></ul><ul><li>Team participation techniques </li></ul><ul><ul><li>Range between consultative and democratic </li></ul></ul><ul><li>Evaluation of participative techniques </li></ul><ul><ul><li>Effectiveness influenced by leadership styles and personality of the parties involved as well as situational, contextual and ideological factors </li></ul></ul><ul><ul><li>Different outcomes of different forms of participative techniques (e.g. informal: productivity and satisfaction, representative: only satisfaction, short-term: no outcomes) </li></ul></ul>
  25. 25. Participative Decision Making <ul><li>Problems </li></ul><ul><ul><li>Time consuming </li></ul></ul><ul><ul><li>Participation sought but not allowed to be intellectually and emotionally involved or suggestions not utilised </li></ul></ul>
  26. 26. Group Decision Making <ul><li>Social schemes to predict outcomes of group decision making </li></ul><ul><ul><li>The majority - wins scheme (initial majority position, when no objectively correct decision) </li></ul></ul><ul><ul><li>The truth - wins scheme (recognition of one objectively correct approach with more information/ discussion) </li></ul></ul><ul><ul><li>The two - thirds majority scheme (initial favour of two-thirds) </li></ul></ul><ul><ul><li>The first - shift rule (decision that reflects the first shift in opinion) </li></ul></ul><ul><li>Status quo tendency </li></ul><ul><ul><li>Group resistance to change </li></ul></ul>
  27. 27. Group Decision Making <ul><li>Delphi technique </li></ul><ul><ul><li>A panel of experts, no face-to-face interaction </li></ul></ul><ul><ul><li>Anonymous prediction or inputs into the problem </li></ul></ul><ul><ul><li>Anonymous feedback from all other members </li></ul></ul><ul><ul><li>Another round of inputs </li></ul></ul><ul><ul><li>For an agreed upon number of times or until the composite feedback remains the same </li></ul></ul><ul><li>Evaluation </li></ul><ul><ul><li>Anonymity encourages flexibility and concern for good decision </li></ul></ul><ul><ul><li>Time consuming, costly and lack of scientific basis </li></ul></ul>
  28. 28. Group Decision Making <ul><li>Nominal group technique </li></ul><ul><ul><li>A group in name only: no verbal exchanges initially </li></ul></ul><ul><ul><li>Silent generation of ideas in writing </li></ul></ul><ul><ul><li>Round-robin feedback from group members </li></ul></ul><ul><ul><li>Discussion of each recorded idea for clarification and evaluation </li></ul></ul><ul><ul><li>Individual voting on priority ideas </li></ul></ul>
  29. 29. Importance of Group <ul><ul><li>An important sociological unit of analysis for studying organisational behaviour </li></ul></ul><ul><ul><li>Organisational goals generally achieved by groups </li></ul></ul><ul><ul><li>A growing emphasis on team approach to improving organisational performance and productivity </li></ul></ul><ul><ul><li>Considerable influence on individual behaviours and performance </li></ul></ul><ul><ul><li>Group dynamics is concerned with </li></ul></ul><ul><ul><ul><li>How groups form </li></ul></ul></ul><ul><ul><ul><li>Their structure and processes </li></ul></ul></ul><ul><ul><ul><li>How they function and affect members, other groups and the organisation </li></ul></ul></ul>
  30. 30. Theories of Group of Formation <ul><li>Propinquity theory </li></ul><ul><li>Balance theory </li></ul><ul><li>Exchange theory </li></ul><ul><li>(for details, refer to seminar slides) </li></ul>
  31. 31. Stages of Group Development <ul><li>Forming: marked by uncertainty; group members not sure about the purpose, structure, task, or leadership of the group </li></ul><ul><li>Storming: characterised by conflict, disagreement, and confrontation among group members about group and task roles </li></ul><ul><li>Norming: determination of behaviour rules and beginning of shared responsibility, cohesion, and collaboration </li></ul><ul><li>Performing: fully functioning group devoted to effectively accomplishing the tasks agreed upon; increased collaboration, and problem solving </li></ul><ul><li>Adjourning: task completion and disbanding or new composition of group </li></ul>
  32. 32. Types of Groups <ul><li>Primary groups </li></ul><ul><ul><li>Feelings of comradeship, loyalty, and a common sense of values (family, peer group, also work group) </li></ul></ul><ul><li>Coalitions (very powerful groups in organisation) </li></ul><ul><ul><li>Interacting group of individuals </li></ul></ul><ul><ul><li>Constructed deliberately for a specific purpose </li></ul></ul><ul><ul><li>Independent of formal organisation structure </li></ul></ul><ul><ul><li>Lacking a formal internal structure </li></ul></ul><ul><ul><li>Mutual perception of membership </li></ul></ul><ul><ul><li>Issues oriented to advance purposes of members </li></ul></ul><ul><ul><li>Concerted member action </li></ul></ul>
  33. 33. Types of Groups <ul><li>Other group classifications </li></ul><ul><ul><li>Membership groups : to which the individual actually belongs </li></ul></ul><ul><ul><li>Reference groups : to which an individual would like to belong because he/she identifies with them </li></ul></ul><ul><ul><li>In groups : those who share the dominant values </li></ul></ul><ul><ul><li>Out groups: those who are on the outside looking in </li></ul></ul><ul><ul><li>Formal groups : designated work groups defined by the organization’s structure. </li></ul></ul><ul><ul><li>Informal groups: groups that are neither formally structured now organizationally determined; appear in response to the need for social contact. </li></ul></ul>
  34. 34. Research on Groups <ul><li>Schachter’s study </li></ul><ul><ul><li>Tested how group cohesiveness and induction affect productivity </li></ul></ul><ul><ul><li>Cohesiveness: the average force acting on members to remain in the group (high or low) </li></ul></ul><ul><ul><li>Induction: influences (positive or negative) </li></ul></ul><ul><li>Implications for OB </li></ul><ul><ul><li>Highly cohesive group, more influenced (either positively or negatively) than the low cohesive groups </li></ul></ul>
  35. 35. The “Pitchfork” Results from the Schachter Study Control Hi Co, - Ind Lo Co, + Ind Lo Co, - Ind Hi Co, + Ind Productivity Induction
  36. 36. Research on Groups <ul><li>Implications for OB </li></ul><ul><ul><li>Hi Co and +ve influence (leadership): highest productivity </li></ul></ul><ul><ul><li>Lo Co and +ve influence (leadership): next level of productivity </li></ul></ul><ul><ul><li>Lo Co and -ve influence (leadership): low productivity </li></ul></ul><ul><ul><li>Hi Co and -ve influence (leadership): severely restricted output </li></ul></ul>
  37. 37. Group Effectiveness <ul><li>Use of groups to enhance satisfaction and performance </li></ul><ul><ul><li>Organising work around intact groups </li></ul></ul><ul><ul><li>Having group charged with selection, training and rewarding members </li></ul></ul><ul><ul><li>Using group norms for enforcement of behaviours </li></ul></ul><ul><ul><li>Distributing resources on a group rather than an individual basis </li></ul></ul><ul><ul><li>Promoting intergroup rivalry to build within group cohesiveness </li></ul></ul>
  38. 38. Group Effectiveness <ul><li>Factors determining group effectiveness </li></ul><ul><ul><li>Task interdependence (how closely group members work together) </li></ul></ul><ul><ul><li>Outcome interdependence (whether, and how, group performance is rewarded) </li></ul></ul><ul><ul><li>Potency (members’ belief that the group can be effective) </li></ul></ul><ul><li>Factors determining success level of group </li></ul><ul><ul><li>The type of task being performed </li></ul></ul><ul><ul><li>The formation and composition of the group </li></ul></ul><ul><ul><li>The group’s ability to adapt to change </li></ul></ul>
  39. 39. The Dysfunctions of Groups <ul><li>Violation of group norms : result in antisocial behaviour </li></ul><ul><li>Role ambiguity: unclear about what to do </li></ul><ul><li>Role conflict: requirement for conflicting tasks or different values </li></ul><ul><li>Groupthink: in a highly cohesive group, from pressure to conform </li></ul><ul><li>Social loafing : reduction in efforts and performance as a group member </li></ul>
  40. 40. Work Teams <ul><li>The most important group phenomenon in organisations </li></ul><ul><ul><li>Project teams, parallel teams, permanent work teams </li></ul></ul><ul><li>Teams go beyond traditional formal work groups by having shared leadership roles, collective decision making, and synergistic effect. </li></ul>
  41. 41. Work Teams <ul><li>Cross-functional team as result of a move toward horizontal organisational design </li></ul><ul><ul><li>Individuals from various departments or functional specialists </li></ul></ul><ul><ul><li>To improve coordination </li></ul></ul><ul><ul><ul><li>Choose team members effectively </li></ul></ul></ul><ul><ul><ul><li>Clearly establish the purpose of the team </li></ul></ul></ul><ul><ul><ul><li>Ensure everyone understands how the team will function </li></ul></ul></ul><ul><ul><ul><li>Conduct intensive team building up front so that everyone learns how to interact effectively </li></ul></ul></ul><ul><ul><ul><li>Achieve noticeable results for morale </li></ul></ul></ul>
  42. 42. Work Teams <ul><li>Virtual team a result of advances in IT </li></ul><ul><ul><li>Individuals interacting and working from a distance </li></ul></ul><ul><ul><li>Effective because they are flexible and driven by information and skills rather than time and location </li></ul></ul><ul><ul><li>Limited by task nature </li></ul></ul>
  43. 43. Work Teams <ul><li>Self managed team </li></ul><ul><ul><li>A group of employees empowered to manage and perform technical tasks that result in a product or service being delivered to a customer </li></ul></ul><ul><ul><li>Increased job satisfaction, improved customer service and stringer organisational commitment </li></ul></ul>
  44. 44. Team Effectiveness <ul><li>Supportive environment </li></ul><ul><ul><li>Reward systems, communication systems and physical space allow to work in a productive atmosphere </li></ul></ul><ul><li>Design of interdependent tasks </li></ul><ul><li>Selection of members based on motivation and competence </li></ul><ul><li>Encouragement of team cohesion </li></ul>
  45. 45. Team Effectiveness Model <ul><li>Team building </li></ul><ul><ul><li>Establishes a sense of partnership and allows members to see the team as a unit and attractive work arrangement </li></ul></ul><ul><ul><li>Succeeds when individuals share collective intelligence and experience a sense of empowerment </li></ul></ul><ul><ul><li>To fit with the corporate culture </li></ul></ul><ul><li>Collaboration </li></ul><ul><ul><li>Learning how to improve interpersonal interactions in group settings with committing to a common goal </li></ul></ul>
  46. 46. Team Effectiveness Model <ul><li>Group leadership </li></ul><ul><ul><li>How members are selected </li></ul></ul><ul><ul><li>What tactics are used to affect those members </li></ul></ul><ul><li>Understanding of culture and diversity issues </li></ul><ul><ul><li>Learning how to improve interpersonal interactions in group settings with committing to a common goal </li></ul></ul>