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This market leading text guides students to a thorough understanding of organi-sational behaviour and relates this to effective management practice. It is aninvaluable resource, which provides a clear and insightful introduction to MANAGEMENTmanagement studies and acts as a comprehensive point of reference thereafter. AND ORGANISATIONAL BEHAVIOUR LAURIE J. MULLINS SEVENTH EDITION Additional student support at www.booksites.net/mullins
MANAGEMENT ANDORGANISATIONAL BEHAVIOUR Visit the Management and Organisational Behaviour, Seventh Edition Companion Website at www.booksites.net/mullins to find valuable student learning material including: ■ Multiple choice and short answer questions to help test your learning ■ Technology Solutions – short web articles which explore further the managerial implications of technology ■ Weblinks to relevant sites on the web ■ An online glossary to explain key terms
About the authorLaurie J. Mullins was formerly principal lecturer at The Business School, Universityof Portsmouth. Before taking early retirement, Laurie specialised in managerialand organisational behaviour, and managing people at work, and was subjectleader for the behavioural and human resource management group. Laurie had previous experience of business, local government and universityadministration and human resource management. For a numbr of years he wasalso a member of, and an instructor in, the Territorial Army. He has undertaken a range of consultancy work; served as a visiting selectorfor UNAIS and VSO; acted as advisor and tutor for a number of professional andeducational bodies including UNISON Education; and served as an externalexaminer for university degree and postgraduate courses, and for professionalorganisations. Laurie has undertaken a year’s academic exchange in the ManagementDepartment, University of Wisconsin, USA, and a visiting fellowship at the Schoolof Management, Royal Melbourne Institute of Technology (RMIT) University,Australia, and given invited lectures in The Netherlands and South Africa. Laurieis also author of Hospitality Mangement and Organisational Behaviour.About the contributorsLinda Hicks is a Chartered Occupational Psychologist who specialises inmanagement development and coaching within her consultancy ‘Zest for Change’.David Preece is Professor of Technology Management and Organisation Studies inThe Business School, University of Teesside.
Seventh Edition MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Laurie J. Mullins Formerly, Principal Lecturer The Business School University of Portsmouth
CONTENTS IN BRIEFPart 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 1 1 Introduction 3 2 The Nature of Organisational Behaviour 25 3 Approaches to Organisation and Management 65Part 2 THE ORGANISATIONAL SETTING 111 4 The Nature of Organisations 113 5 Organisational Goals, Strategy and Responsibilities 144Part 3 THE ROLE OF THE MANAGER 187 6 The Nature of Management 189 7 Managerial Behaviour and Effectiveness 236 8 The Nature of Leadership 280Part 4 THE INDIVIDUAL 333 9 Individual Differences 33510 The Nature of Learning 38911 The Process of Perception 43412 Work Motivation and Rewards 470Part 5 GROUPS AND TEAMWORK 51513 The Nature of Work Groups and Teams 51714 Working in Groups and Teams 554Part 6 ORGANISATIONAL STRUCTURES 59315 Organisation Structure and Design 59516 Patterns of Structure and Work Organisation 63317 Technology and Organisations 662Part 7 MANAGEMENT OF HUMAN RESOURCES 69718 Job Satisfaction and Work Performance 69919 Human Resource Management 74620 Resourcing the Organisation 795Part 8 IMPROVING ORGANISATIONAL PERFORMANCE 82921 Organisational Control and Power 83122 Organisation Development (Culture, Conflict and Change) 88723 Management Development and Organisational Effectiveness 941
‘OH, GREAT SPIRIT,GRANT THAT I MAY NOTCRITICISE MY NEIGHBOURSUNTIL I HAVE WALKED A MILEIN THEIR MOCCASINS.’Traditional Native-American saying
CONTENTS IN DETAILExhibits, Management in Action, Case Studies and 3 Approaches to Organisation andBusiness Press xiv Management 65In acknowledgement and appreciation xvii Management theory 66Publisher’s acknowledgements xviii Developments in management and organisationalGuided tour of the book xx behaviour 66Guided tour of the Companion Website xxii The classical approach 67 Scientific management 69 Relevance of scientific management 71Part 1 Bureaucracy 74MANAGEMENT AND ORGANISATIONAL Criticisms of bureaucracy 75BEHAVIOUR Evaluation of bureaucracy 76 Structuralism 781 Introduction 3 The human relations approach 78About this book 4 Evaluation of the human relations approach 80The aims of this book 4 Neo-human relations 81The seventh edition 6 The systems approach 82Your study of the book 16 The contingency approach 84The changing nature of work organisation 17 Other approaches to the study of organisations 84The study of management and organisational The decision-making approach 85 behaviour 19 Social action 85The use of case studies 20 A number of different approaches 87 Postmodernism 872 The Nature of Organisational Relevance to management and organisational behaviour 89 Behaviour 25 Japanese management 90The meaning of organisational behaviour 26 Towards a scientific value approach? 91Influences on behaviour in organisations 27 Benefits to the manager 93Behavioural science – a multidisciplinary approach 29 Management in Action 3.1: Japanese management 95The importance of people and organisational Case study 3.1: Helgaton Ltd: organisational theory behaviour 30 in practice 102Organisational metaphors 32Orientations to work and the work ethic 33Management as an integrating activity 34The psychological contract 37 Part 2Changing nature of the psychological contract 39 THE ORGANISATIONAL SETTINGOrganisational practices 40The Peter Principle 40Parkinson’s Law 41 4 The Nature of Organisations 113The need for a cross-cultural approach 42Is organisational behaviour culture-bound? 43 The context of the organisation 114Models for understanding the impact of culture 44 The formal organisation 115Five dimensions of culture: the contribution of Basic components of an organisation 117 Hofstede 47 Private and public sector organisations 118Cultural diversity: the contribution of Trompenaars 49 Production and service organisations 120Summary: convergence or culture-specific Types of authority and organisations 121 organisational behaviour 51 The classification of organisations 122Case study 2.1: Eric and Kipsy: complexities of Prime beneficiary of the organisation 122 management and organisational behaviour 56 Primary activity of the organisation 123
viii CONTENTS IN DETAIL The organisation as an open system 124 Principles of management 197 Interactions with the environment 126 Management as a social process 199 The comparative study of organisations 127 The tasks and contribution of a manager 199 Organisational sub-systems 128 Essential nature of managerial work 200 The analysis of work organisations 129 The efforts of other people 202 Contingency models of organisation 131 Management in service industries 203 The influence of technology 132 Management in private enterprise and public Information technology 133 sector organisations 203 Managing technical change 134 The work of a manager 206 The informal organisation 134 Managerial roles 207 The organisation of the future 137 Behaviour pattern of general managers 209 Organisational goals 137 Determining what real managers do 210 Patterns of managerial work and behaviour 210 5 Organisational Goals, Strategy and The attributes and qualities of a manager 211 Managers of the future? 214 Responsibilities 144 Management in Action 6.1: The roles of the The nature of organisational goals 145 manager and the Individual Management Model 217 The functions of goals 146 Case study 6.1: What is management? Defining Integration of goals 147 the manager’s role 227 Classification of organisational goals 148 Alteration of goals 149 Organisational ideologies and principles 150 7 Managerial Behaviour and Mission statements 151 Effectiveness 236 Managerial style and behaviour 237 Objectives and policy 152 Managers’ attitude towards people 238 The profit objective 154 Japanese ‘Theory Z’ environment 240 Fallacy of the single objective 155 The Managerial/Leadership Grid® 241 The need for strategy 157 Framework for patterns of behaviour 243 The concept of synergy 158 Management systems 245 SWOT analysis 159 System 4 management 246 The management of opportunities and risks 160 Management by Objectives (MBO) 249 Social responsibilities of organisations 161 Evaluation of MBO 250 Codes of conduct 162 Managing people 251 Organisational stakeholders 163 Basic managerial philosophies 252 Values and ethics 166 Choice of managerial style 256 Corporate social responsibility 167 Managerial effectiveness 259 Business ethics 168 Measures of effectiveness 261 Related legislation 170 3-D model of managerial behaviour 261 An integrated approach 171 General criteria of managerial effectiveness 264 Management in Action 5.1: IBM Code of Conduct 177 The management of time 265 Case study 5.1: Mergers and acquisitions: the Case example: Chemical company 274 consequences of expansion at Square Deal plc 182 Case study 7.1: Bringing management to book: Case study 5.2: Welcome to the party: home selling how to manage a library 275 with Top-to-Toe 183 Case study 7.2: As safe as houses: branch management in a building society 276 Part 3 8 The Nature of Leadership 280 THE ROLE OF THE MANAGER The meaning of leadership 281 The importance of leadership 282 Leadership and management 283 6 The Nature of Management 189 Approaches to leadership 285 The meaning of management 190 The qualities or traits approach 287 Management and administration 194 The functional (or group) approach 287 The process of management 195 Leadership as a behavioural category 289
CONTENTS IN DETAIL ixStyles of leadership 291 Career development 372Continuum of leadership behaviour 292 Leadership, management and women 376The situational approach 294 Positive approaches 378Contingency theories of leadership 295Fiedler’s contingency model 295 10 The Nature of Learning 389Vroom and Yetton contingency model 297 By Linda HicksThe Vroom and Jago revised decision model 298 The meaning and nature of learning 390Path–goal theory 299 Organisations and the management of learning 394Readiness of the followers or group 300 Knowledge management 395Transformational leadership 301 The learning organisation 399Inspirational leadership 304 How do people learn? 402Power and leadership influence 306 Behaviourism 403The leadership relationship 307 The outcomes of learning 405No one best form of leadership 309 Operant conditioning 405National cultural dimensions of leadership 310 Social learning 408Effectiveness of leadership styles 312 Limitations of the behaviourist school 408Variables affecting leadership effectiveness 313 Cognitive theories 409Leadership development 314 Learning styles 413Leaders of the future 315 Complex models of learning 414Management in Action 8.1: Autoglass: Leadership Creativity 415 success factors 317 Facilitating learning 417Management in Action 8.2: IBM Leadership Learning theory applied to study skills 420 Development Centre (LDC) 318 Applications of learning theory to organisations 420Case study 8.1: The paradox of Pim Fortuyn: a study Case study 10.1: Springboard to success: staff in charismatic leadership 327 development in practice 425 Case study 10.2: Will the mail get through: managing change at the Royal Mail 427PART 4 11 The Process of Perception 434THE INDIVIDUAL By Laurie Mullins and Linda Hicks The perceptual process 435 Selectivity in attention and perception 4359 Individual Differences 335 Meaning to the individual 437 By Linda Hicks Internal factors 437The changing nature and scope of managing External factors 440 individuals at work 336 Organisation and arrangement of stimuli 441Personality 339 Perceptual illusions 442Nomothetic and idiographic approaches 342 Perceiving other people 445Theoretical approaches: nomothetic 343 Transactional analysis 448Theoretical approaches: idiographic 346 Selection and attention 450Other theoretical approaches 347 Organisation and judgement 452Cognitive theory: Kelly’s personal construct theory 350 The importance of body language 453Applications within the work organisation 352 Attribution theory 455Stress and the individual 354 Perceptual distortions and errors 456Ability 355 Stereotyping 457Testing 360 The halo effect 458Attitudes 362 Perceptual defence 459Gender and organisations 366 Projection 459Understanding women’s position and status 368 Illustrative example: perception of women 459Economic theories 369Psychological sex differences 369 12 Work Motivation and Rewards 470The socialisation process 370 The meaning of motivation 471Orientations and motivations towards work 370 Needs and expectations at work 472Working practices 371 Motivation and organisational performance 474
x CONTENTS IN DETAIL Frustration-induced behaviour 475 14 Working in Groups and Teams 554 Money as a motivator 477 Interactions among members 555 Theories of motivation 478 Belbin’s team-roles 556 Content theories of motivation 480 Patterns of communication 559 Maslow’s hierarchy of needs theory 478 Analysis of individual behaviour 562 Alderfer’s modified need hierarchy model 484 Sociometry 562 Herzberg’s two-factor theory 485 Interaction analysis 563 McClelland’s achievement motivation theory 487 Frameworks of behavioural analysis 565 Process theories of motivation 489 An essential feature of work organisations 566 Vroom’s expectancy theory 490 Individual compared with group or team performance 569 The Porter and Lawler expectancy model 492 Lawler’s revised expectancy model 494 The risky-shift phenomenon 569 Implications for managers of expectancy theories 495 ‘Groupthink’ 570 Equity theory of motivation 496 Brainstorming 570 Goal theory 498 Group dynamics 573 Attribution theory 499 T-groups 574 Relevance of theories of motivation 499 Effective teamworking 575 Cross-cultural dimensions of motivation 500 Management in Action 14.1: Profiling of managers for The motivation of knowledge workers 500 leadership development in a cross-section of South Management in Action 12.1: Developing reward African organisations 579 strategies to motivate and compensate Management in Action 14.2: Barriers come down knowledge workers 504 to build up team spirit 585 Case study 12.1: Staff motivation: not so much a motivational pyramid, more a slippery slope 510 PART 6 PART 5 ORGANISATIONAL STRUCTURES GROUPS AND TEAMWORK 15 Organisation Structure and Design 595 13 The Nature of Work Groups The meaning and nature of organisation structure 596 and Teams 517 The importance of good structure 597 The meaning and importance of groups and teams 518 Levels of organisation 598 The difference between groups and teams 518 The importance of the hierarchy 600 Group values and norms 520 The design of organisation structure 601 The importance of teamwork 521 Clarification of objectives 603 Formal and informal groups 525 Task and element functions 604 Reasons for formation of groups or teams 527 The division of work 605 Group cohesiveness and performance 528 Centralisation and decentralisation 608 Membership 529 Principles of organisation 609 Work environment 530 Span of control 610 Organisational factors 531 The chain of command 611 Group development and maturity 531 ‘Flatter’ organisation structures 612 Potential disadvantages of strong, cohesive groups 532 Formal organisational relationships 613 Characteristics of an effective work group 533 Line and staff organisation 615 The effects of technology on work groups 534 The inverted organisation 617 Role relationships 536 Role conflict 538 Project teams and matrix organisation 617 Role stress 540 Effects of a deficient organisation structure 619 Management in Action 13.1: Teamwork in a small Organisation charts 621 company 543 Structure and organisational behaviour 622 Management in Action 13.2: Remote control – a Case study 15.1: A small cog in a big wheel: case study 545 company restructuring at Zeton 629 Case study 13.1: Floating on air: the importance Case study 15.2: Loud and clear: leadership in of teamwork at Hovertec 550 telecommunications 630
CONTENTS IN DETAIL xi16 Patterns of Structure and Work Stress at work 706 Organisation 633 Role relationships and conflict 708Variables influencing organisation structure 634 Levels of stress 709The contingency approach 634 Coping with stress 710Size of organisation 635 Work organisation and job design 713 Individual job redesign 714Technology 638 A comprehensive model of job enrichment 715The Woodward study 638 Broader organisational approaches to improvedMajor dimensions of technology: the work of Perrow 640 job design 717Environment 641 The work/life balance 720The Burns and Stalker study 642 Employee involvement 722‘Mixed’ forms of organisation structure 643 Empowerment and job satisfaction 723The Lawrence and Lorsch study 644 Self-managed work groups 723Evaluation of the contingency approach 646 Flexible working arrangements 724Contribution of contingency theory 648 Quality circles 727Culture as a contingent factor 649 Management style and culture 728Alternative forms of structure 649 Contextual factors in job design 728The demand for flexibility 651 The happy/productive worker 729Telecommuting 652 Management in Action 18.1: Job satisfaction: theThe shamrock organisation 652 fit between expectations and experiences 732The nature of delegation and empowerment 654 Management in Action 18.2: An elusive butCase study 16.1: Bureaucracy could seriously damage expensive concept: stress 733 your health: staff empowerment at City Hospital 658 Management in Action 18.3: Work-Life BalanceCase study 16.2: Could I have an estimate? case studies 735 Organisational structure at Fabrique Décor 658 Management in Action 18.4: Beyond the nine-to-five 73617 Technology and Organisations Case study 18.1: The wide open spaces: linking By David Preece 662 job satisfaction and work performance 741Theorising technology 663 Case study 18.2: The changing role of supervisors:Using a socio-technical ensemble perspective: demonstrating the effect of communication the case of Butler Co. 669 and training on morale 742Technological change and organisations 672 Case study 18.3: Flying like the wind: motivation,Adopting and introducing new technology 674 job design and culture at Falcon Car Company 743Case studies in technological/organisational change 679 19 Human Resource Management 746 The nature of human resource management (HRM) 747Case study 17.1: A thirst for technology: new systems HRM policies, activities and functions 749 at the bars of Tawny Taverns 679 Organisation of the HRM function 751Case study 17.2: Web page not found: internal HRM: a shared responsibility 752 communications at Redstart Computers 682 The importance of HRM 755Organisational contexts, social and political Training and development 756 processes and technological change 685 The management of training 758ICTs, networks, organisations and society 686 Investors in People 761 Performance appraisal 762 Questions to be addressed 764PART 7 360° feedback and upward appraisal 765MANAGEMENT OF HUMAN RESOURCES Establishing the appraisal system 766 Methods of appraisal 767 Potential problem areas 76918 Job Satisfaction and Work Employment relations 771 Performance 699 Unitary and pluralistic perspectives 773The meaning and nature of job satisfaction 700 Regulating the employment contract 774Dimensions of job satisfaction 700 Responsibility for employment relations 777Framework of study 703 International dimensions of HRM 778Information communications technology 703 Industrial democracy in European countries 779
xii CONTENTS IN DETAIL The German system 779 Characteristics of an effective control system 842 Effectiveness of the HRM function 780 Power and management control 843 Management in Action 19.1: The Investors in People Perspectives of organisational power 845 Standard 783 Pluralistic approaches to power 846 Management in Action 19.2: Performance The balance between order and flexibility 848 management at Autoglass Limited 786 Delegation and empowerment 849 Case study 19.1: Beer and sandwiches: personnel The manager–subordinate relationship 850 management at London Taverns 790 Benefits of delegation 852 Case study 19.2: Nothing succeeds like success: Reasons for lack of delegation 853 accelerating performance at Sisson Systems 791 A systematic approach to delegation 854 The art of delegation 857 20 Resourcing the Organisation 795 The concept of empowerment 859 The concern of all managers 796 Does empowerment deliver? 863 Human resource planning 796 Behavioural factors in control systems 864 The value of human resource planning 798 Overcoming resistance to management control 865 Recruitment and selection of staff 800 Financial and accounting systems of control 867 Job analysis 802 Management in Action 21.1: Empowerment 873 Person specifications 804 Case study 21.1: The enthusiastic delegator: Difficulties and distastes of the job 804 the consequences of promoting beyond ability? 880 The importance of job analysis 806 Case study 21.2: Alpha to Omega: the effects Attracting suitable applicants 806 of financial management on company The selection process 808 performance 883 Selection tests and questionnaires 810 Group exercises 810 22 Organisation Development The selection interview 812 (Culture, Conflict and Change) 887 Interviewing style 813 The meaning of organisation development 888 Competency-based approach to recruitment and Topics associated with OD 888 selection 814 Organisational culture 891 The selection decision 815 Types of organisational culture 892 Induction and follow-up 816 Influences on the development of culture 894 Costs of the selection process 817 The cultural web 895 Effectiveness of the recruitment and selection The importance of culture 896 process 817 Organisational climate 899 Management in Action 20.1: Marks & Spencer Employee commitment 901 PLC’s graduate selection process 821 Organisational conflict 903 Case study 20.1: Please enter your password: Contrasting views of conflict 904 effective resource management at Wessex The sources of conflict 906 Computers 825 Strategies for managing conflict 908 Case study 20.2: Inky fingers: HRM failure at The nature of organisational change 909 Sumprint Ltd 826 Planned organisational change 910 Resistance to change 913 The management of organisational change 915 Human and social factors of change 916 PART 8 Responsibilities of top management 920 IMPROVING ORGANISATIONAL Management in Action 22.1: Organisational culture, PERFORMANCE change and IT in an SME 923 Management in Action 22.2: Siemens Nixdorf’s 21 Organisational Control and Power 831 new dynamism 924 The meaning of control 832 Case study 22.1: It’s tough at the top: managing Assumptions of organisation and management 834 conflict in the Wakewood organisation 933 Elements of an organisational control system 835 Case study 22.2: Getting political: management Forms of control 837 in local government 934 Classification of control systems 838 Case study 22.3: A matter of life or death: managing Strategies of control in organisations 840 knowledge at an NHS Trust 935
CONTENTS IN DETAIL xiii23 Management Development and Benchmarking 976 Organisational Effectiveness 941 Performance indicators in the public sector 977The importance of effective management 942 Gap analysis 977The meaning and nature of management A range of different criteria 977 development 942 The twenty-first century organisation and people 980An integrated model of management development 944 Management in Action 23.1: Extracts from AbbeyManagement development process 949 Performance Development Programme 982Continuing professional development (CPD) 953 Management in Action 23.2: A cure for growingManagement education, training and development 954 pains – Costa Coffee 985The Management Charter Initiative (MCI) 955 Management in Action23.3: Components of theLeadership and Management Model 956 Management Standards 987The nature of organisational effectiveness 959 Management in Action 23.4: Building organisationalThe Peters and Waterman study 960 competence 988Heller’s study of European excellence 961 Case study 23.1: Chips with everything: managingThe Goldsmith and Clutterbuck study 962 cultural change at Eurasia Electronics 997The learning organisation 962 Case study 23.2: Holding the front page: expansionTotal Quality Management (TQM) 964 at Rudmore Press 997Business process re-engineering (BPR) 968Building Tomorrow’s Company 971 Conclusion 1003The EFQM excellence model 971 Business Press 1005Assessing organisational performance 975 Glossary 1051Organisation audit 976 Index 1065 Companion Website resources Visit the Companion Website at www.booksites.net/mullins For students: ■ Multiple choice and short answer questions to help test your learning ■ Technology Solutions – short web articles which explore further the managerial implications of technology ■ Weblinks to relevant sites on the web ■ An online glossary to explain key terms For lecturers: ■ Complete, downloadable Instructor’s Manual which includes: – Teaching tips – Extra cases – Solutions/examples to discussion and other questions ■ Powerpoint slides that can be downloaded and used as OHTs ■ Testbank of question material Also: This site has a syllabus manager, search functions, and email results functions. Note: A printed version of the Instructor’s Manual is also available free to adopters of Management and Organisational Behaviour. Please contact your local sales representative whose details can be located on our website www.pearsoned.co.uk
EXHIBITS, MANAGEMENT IN ACTION, CASE STUDIES AND BUSINESS PRESSExhibits3.1 NHS pays £30.96 just to sharpen pencils 763.2 Tools that do the business: management theories 915.1 Business ethics: what’s in it for you? 1716.1 The infant school headteacher as a manager 1917.1 It’s a people thing 2588.1 Developing leadership in the NHS of the 21st century 3058.2 First class coach 3129.1 Why use psychological tests? 36210.1 Learning new skills: the importance of feedback 41011.1 Hospitals set to play it by ethnic book 45411.2 Judy Owen wins battle against Professional Golfers’ Association to 460 wear trousers13.1 Teamwork’s own goal 52414.1 Management: brainstorm in a rainstorm 57318.1 If you want people to do a good job, give them a good job to do 71918.2 Have a life and keep your job 72521.1 Empowerment and the custody officer 86123.1 Developing managers: applying the theory in practice 95023.2 Management succession: developing leadership at 3M 95223.3 Quality counts: TQM in an NHS trust 968Management in Action3.1 Japanese management 955.1 IBM Code of Conduct 1776.1 The roles of the manager and the Individual Management Model 2178.1 Autoglass: Leadership success factors 3178.2 IBM Leadership Development Centre (LDC) 31812.1 Developing reward strategies to motivate and compensate knowledge workers 50413.1 Teamwork in a small company 54313.2 Remote control – a case study 54514.1 Profiling of managers for leadership development in a cross-section of 579 South African organisations14.2 Barriers come down to build up team spirit 58518.1 Job satisfaction: the fit between expectations and experiences 73218.2 An elusive but expensive concept: stress 73318.3 Work-Life Balance case studies 73518.4 Beyond the nine-to-five 73619.1 The Investors in People Standard 78319.2 Performance management at Autoglass Limited 78620.1 Marks & Spencer PLC’s graduate selection process 82121.1 Empowerment 87322.1 Organisational culture, change and IT in an SME 92322.2 Siemens Nixdorf’s new dynamism 924
LIST OF FIGURES xv23.1 Extracts from Abbey Performance Development Programme 98223.2 A cure for growing pains – Costa Coffee 98523.3 Components of the Management Standards 98723.4 Building organisational competence 988Case studies2.1 Eric and Kipsy: complexities of management and organisational behaviour 563.1 Helgaton Ltd: organisational theory in practice 1025.1 Mergers and acquisitions: the consequences of expansion at Square Deal plc 1825.2 Welcome to the party: home selling with Top-to-Toe 1836.1 What is management? Defining the manager’s role 227 Chemical company 2747.1 Bringing management to book: how to manage a library 2757.2 As safe as houses: branch management in a building society 2768.1 The paradox of Pim Fortuyn: a study in charismatic leadership 32710.1 Springboard to success: staff development in practice 42510.2 Will the mail get through: managing change at the Royal Mail 42712.1 Staff motivation: not so much a pyramid, more a slippery slope 51013.1 Floating on air: the importance of teamwork at Hovertec 55015.1 A small cog in a big wheel: company restructuring at Zeton 62915.2 Loud and clear: leadership in telecommuncations 63016.1 Bureaucracy could seriously damage your health: staff empowerment at City Hospital 65816.2 Could I have an estimate? Organisational structure at Fabrique Décor 65817.1 A thirst for technology: new systems at the bars of Tawny Taverns 67917.2 Web page not found: internal communications at Redstart Computers 68218.1 The wide open spaces: linking job satisfaction and work performance 74118.2 The changing role of supervisors: demonstrating the effect of communication and training on morale 74218.3 Flying like the wind: motivation, job design and culture at Falcon Car Company 74319.1 Beer and sandwiches: personnel management at London Taverns 79019.2 Nothing succeeds like success: accelerating performance at Sisson Systems 79120.1 Please enter your password: effective resource management at Wessex Computers 82520.2 Inky fingers: HRM failure at Sumprint Ltd 82621.1 The enthusiastic delegator: the consequences of promoting beyond ability? 88021.2 Alpha to Omega: the effects of financial management on company performance 88322.1 It’s tough at the top: managing conflict in the Wakewood organisation 93322.2 Getting political: management in local government 93422.3 A matter of life or death: managing knowledge at an NHS trust 93523.1 Chips with everything: managing cultural change at Eurasia Electronics 99723.2 Holding the front page: expansion at Rudmore Press 997Business Press1 A safe way to hold on to staff 10062 Business schools share Enron blame 10073 Recruitment: facing the next brain drain 10084 Companies pressed to adopt higher standards 10105 Forget how the crow flies 10126 Public sector: go home and prepare for e-government 10177 Employees as investors 10198 Leader of the band who likes to run the show 10209 Great leaders: pioneer and a shrewd strategist 1022
xvi LIST OF FIGURES 10 Endangered species 1023 11 Mentoring moves into a leading role 1025 12 Driving your employees up the wall 1027 13 A focus on workers’ individual needs 1028 14 Advantages of promoting a boutique mindset 1029 15 Avoiding the madness of groupthink 1030 16 End to ‘departmentalism’ a vision of things to come 1031 17 A long-distance relationship 1032 18 Network protection is a key stroke 1034 19 Relentless rise of the pleasure seekers 1035 20 EU & US: Where are the best workplaces? 1037 21 Marrying performance with reward 1038 22 Human capital: is it ‘personnel’ with yet more make-up? 1040 23 New learning models are under scrutiny 1041 24 Patterns can show if you are up to the job 1043 25 Massive US effort to set up control systems 1044 26 Asda: the listening store 1045 27 Organisations, too, can be put on the couch 1047 28 Swiss group at top of learning tree 1048 29 The rise and rise of the corporate learning officer 1049
IN ACKNOWLEDGEMENT AND APPRECIATIONA warm and special tribute is paid to my wife Pamela, children and family for theircontinuing support and encouragement for this seventh edition. Particular acknowledgements and thanks are due for the contributions from myfriends and colleagues Linda Hicks, David Preece and Sara Lamond. Thanks and appreciation also to Derek Adam-Smith, Rajeev Bali, Martin Brunner,Richard Christy, Ray French, Karen Meudell, Anne Riches, Amanda Stevens, LynnThomson, Cheryl Walmsley. I gratefully acknowledge the help and support received from: Managers who kindly provided information from their own organisations and gave permission to reproduce material in the book Aileen Cowan, Assistant Director, The Institute of Chartered Secretaries and Administrators Liz Harris, Marketing Communications Manager, The Institute of Administrative Management Rebecca Hoar, Section Editor, Management Today Sue Mann, Editor, Professional Manager. A special debt of appreciation is due to members of the team at Pearson Educationincluding Matthew Walker, Colin McDougall, Karen McLaren, Janey Webb, Colin Reed,Jacqueline Senior and Simon Lake for their invaluable professionalism and guidance.Thank you all for a pleasant and rewarding partnership. I wish to acknowledge and thank a number of people who may be unaware howmuch their friendship, interest and support has in a variety of ways helped in the com-pletion of this seventh edition, including: Stephen Darvill; Philip Voller; KateBrackenbury; Valerie and Peter Hallam; Di and Mike Blyth; Julie and John Bradley;Jenny and Tony Hart; Vilma and Will Hemsley; Lynn and Wayne Miller; Christine andDavid Paterson; Ann Ward.ReviewersSpecial thanks are due to the following reviewers, approached by the publishers, fortheir valued insightful and constructive comments that have helped shape the con-tents of this present edition: Ann Norton, Sheffield Hallam University, UK Brian Stone, Manchester Metropolitan University, UK Kim Parker, University of Kent, UK Bob Smale, Brighton University, UK Alasdair Maclean, University of Abertay, UK Peter Falconer, Glasgow Caledonian University, UK Hugo Misselhorn, Management & Organisation Development Consulting, South Africa Marijek Dielman, Hotel Management School, Maastricht, The Netherlands David Wilson, Wethouder Koniglaan, The Netherlands. Laurie J Mullins
GUIDED TOUR OF THE BOOK 410 PART 4 THE INDIVIDUAL 8 ■ sensori-motor period: birth to 2 years; THE NATURE OF LEADERSHIP ■ pre-operational thought: 2 years to 7 years; ■ concrete operations: 7 years to 11 years; ■ formal operations: 11 years to 15 years. Piaget’s theory offers a tight coherent perspective of the maturation of intellectual thought and development. His studies introduced the notion of the cyclical nature of learning and the ways in which children and adults adjust to and accommodate to their environment. For many cognitive theorists learning is viewed as a sequence, a sequence which processes information in three distinct stages: An essential part of management is co-ordinatingChapter openers: the activities of people and guiding their efforts ■ ■ an active perception stage which gives attention to stimuli from the environment; a second mentally active stage which makes sense of the information; towards the goals and objectives of the ■ finally, a restructuring and storage phase.provide a brief organisation. This involves the process of leadership and the choice of an appropriate form EXHIBIT 10.1introduction to key of action and behaviour. Leadership is a central feature of organisational performance. The Learning new skills: the importance of feedbackthemes of the manager must understand the nature of leadership influence and factors which determine Yoga is one of the six systems of Indian philosophy. There are a number of different interpretations of yoga and one ofchapter relationships with other people, and the effectiveness of the leadership relationship. these is taught by Yogacharya B.K.S Iyengar.64 Learning a physical skill such as Iyengar yoga privides a good illustration of Photo: Rajesh Jantilal/AFP/Getty Images ■ the continual cycle of learning; ■ the importance of stages in learning; In the twenty-first century, leaders must create ■ the significance of information and feedback; an atmosphere in which people believe in ■ the importance of support structures – both physical, social and mental. strategy, believe in management decisions, and LEARNING OUTCOMES believe in their work. Once people believe in The yoga poses are challenging and require the complete involvement of the senses and total concentration of the management decisions, there is an excitementLearning outcomes: After completing this chapter you should be able to: ᭤ explain the meaning and importance of leadership in within an organization. Such an atmosphere mind. Otherwise a fall to the floor is likely! The teacher pro- vides clear information about the positioning of the body and the class tries to assimilate this information and imitate Photo: Jose Luis Pelaez, Inc./Corbis the inflexibility of the limbs all students are able to achieve work organisations; makes an organization prosper. Successful the teacher. Initally it is hard to connect to muscles thatsummarise what ᭤ contrast patterns of managerial leadership and main approaches to and studies of leadership; leaders create this sort of environment both have been lying dormant for some considerable time! The final pose is reached after a series of ‘sub poses’ maximum gain from each posture with the help of physical supports. Perhaps a belt to support the legs, perhaps a chair to support the back, Each student develops at their inside and outside the organization. have been practised. Each sub pose is gradually devel- own pace, and with their own props. A teacher will alsostudents will learn ᭤ detail the nature of managerial leadership and the exercise of leadership power and influence; Subir Chowdhury Management 21C, Financial Times Prentice Hall (2000) oped and becomes more complex. At each stage students have to remember ‘what it felt like’ in the previous sub pose to be sure that they are building on and pushing provide information about whether a student’s posture needs modifying; perhaps a brick under the hand will get the posture closer to perfection. Creativity will be used inin the chapter ᭤ examine leadership as an aspect of behaviour, and different styles of leadership; themselves into a more challenging posture. Learning the poses therefore requires active perception and attention to the teacher as well as attention to internal feedback about identifying the particular needs of certain students. A learn- ing environment is created in which the group supports individuals, information at critical times is provided, individ- ᭤ assess contingency theories of leadership and the positioning of the body. uals are totally engaged in their pursuit of perfection and situational factors which determine the characteristics of Striving for excellence and gaining the benefits from the teacher encourages, supports and leads by example. leadership; each posture is the goal of Iyengar yoga for all students. Reprinted with permission from Judith Jones and Carol Batterson, Iyengar Therefore no matter the physical limitations of the body or Yoga Teacher, Hampshire ᭤ evaluate the nature and main components of transformational leadership and inspirational leadership; ᭤ review the variables which determine effective Although it is beyond the scope of this book to consider the relationship between managerial leadership and development. thinking and learning some researchers have shed insight on the mental constructs that may form. Glaser65 for instance has described these as ‘scaffolds’. This metaphor suggests Notable quotes: provide Exhibits: short vignettes bring insight into managerial managerial theory and practice thinking, past and present to life Technology solutions: links to web-based Case studies: integrate a range of resources which encourage evaluation of tech- themes to encourage analysis of nology in solving problems more complex situations CHAPTER 6 THE NATURE OF MANAGEMENT 217 182 PART 2 THE ORGANISATIONAL SETTING ■ While the importance and responsibility of management is still widely recognised there is a need for new managers, and new methods for a changed environment and CASE STUDY 5.1 nature of work organisations. Europe’s new breed of managers need to focus attention on key strategies including the importance of values and behaviours. Important issues Mergers and acquisitions: the consequences of expansion at for the future include managing change; leadership and motivation of staff; managing diversity; the development of human resources; and demands for alternative organisa- Square Deal plc tional practices. ■ The jobs of individual managers differ widely. Empirical studies have concentrated Square Deal plc is a newly formed subsidiary company Foodrich plc was, until last year, a family firm on the diversity of management and differences in the nature of managerial work. of Square Deal International Inc. The intention is to which canned fruit and vegetables from its one fac- These studies have drawn attention to such features as: managerial roles; agenda- use it to unify the efforts and improve the profitability tory situated about 100 miles from London, in the setting and network-building; what real managers do; and demands, constraints and of the hitherto separate UK subsidiaries of Arnold plc, west of England. It was bought by Square Deal choices in a managerial job. Carlton plc and Foodrich plc. At present it has a man- International Inc with the idea that it would supply aging director, an administrative/ financial controller ‘own label’ products to Arnold plc and large catering and a typist all sharing a large temporary office in packs to both Arnold’s and Carlton’s restaurants. To MANAGEMENT IN ACTION 6.1 central London. do this, Foodrich was obliged to deny supplies to Arnold plc has 69 food stores, all within a radius of some of its regular customers and re-equip part of itsManagement in action: The roles of the manager and the Individual 30 miles from London. Most of them contain either a small restaurant or a snack bar and occupy high street plant to handle the large catering packs. The MD, son of the founder, has worked there for nearly 40 years Management Model and runs the company, making all decisions, bothreal-world examples or suburban shopping centre locations. It owns one small bakery whose total production supplies ten stores with bread and cakes. Perishables for both re- long term and operational, using his experience and intuition. He is furious to learn that Arnold has not put all its ‘own label’ business in his direction andensure that students THE INDIVIDUAL MANAGEMENT MODEL (IMM) IBM is a large and diverse company. IBM managers do many Personal characteristics Managers take actions to achieve those objectives. Every manager has unique personal characteristics, and these char- sale and restaurant use are bought locally but all other products are bought centrally and distributed from one large warehouse. These products are charged to Carlton is still buying most catering packs from Foodrich’s competitors while its new plant is grossly different things. It can be difficult to define core-and-commonidentify and engage manager roles relevant to managers throughout such a highly complex organization. The Individual Management Model (IMM) was developed as an aid to managers to help them acteristics will influence his or her behavior. Personal characteristics include: the stores at selling price on computer-printed internal invoices. Store managers are judged solely on revenue. Accounts for each store are produced on the batch YOUR TASKS ■ backgroundwith managerial understand their roles in context. The manager gets work done through other people. IBM has used that simple definition for years. There are two ■ ■ ■ skills knowledge thinldng style computer system at head office which is an old build- ing on the edge of a dockland redevelopment site in East London. The company owns the freehold, as it (a) Discuss the benefits and drawbacks of judging performance on a single criterion such as: (i) revenue, in the case of the store managers; key parts to the definition: getting work done and through (ii) return on investment, in the case of Carlton’schallenges other people. The Individual Management Model (IMM) was developed ■ competencies ■ personality does of about half of its food stores. Carlton plc has joint managing directors, one in charge of 21 restaurants and one in charge of prop- MDs. (b) Explain to what extent Arnold’s head buyer and as an aid to managers to visualize how their roles are similar erty development. To date it has built four shopping Carlton’s head chef are justified in buying catering to other managers and how they may differ. centres and has plans for three more, all as part of packs from other companies. Quick overview of the Individual Management Conditions schemes to regenerate old city centres in the north (c) Describe how further computerisation might help in Model (IMM) Staffing, of England, around 150 miles from London. It leases this quest for unification and profit improvement. All managers are responsible for producing results. They do processes, out the shops with the exception of one per centre that primarily through other people. The influence that a man- time, which it operates as a restaurant. Both MDs rigidly (d) After you have finished this task, the MD tells you he ager has on direct reports is reflected in the Organizational legal, pursue a 15 per cent annual return on investment as is toying with the idea of regrouping the company Climate that he or she creates. Every manager faces slightly ethics, under the name of Square Deal plc and dividing it their measure of achievement. different factors that help or hinder the achievement of busi- etc. into the following divisions, each operating as a ness results. And every manager is different in terms of • Lead profit centre: Photo: Robert Lawson/Anthony Blake Picture Library personality, thinking style, competencies, etc. It’s this mix of Business Square Deal plc conditions and personal characteristics that make managers • Manage results Restaurants Property Food retail Canning Bakery behaviors different Personal • Do Climate division division division division division characteristics COMPONENTS OF THE IMM Competencies, He is concerned about the effects of such a thinking styles, change on the morale of the managers and other Objectives experience, employees so he asks you for a further statement. Objectives Objectives are the intended business results and are reflected personality, Discuss ideas that should maintain or improve in managers’ PBCs (Personal Business Commitments). etc. morale if this regrouping were to take place. Managers are either given objectives or they define their own, hopefully aligned with the goals and objectives of their larger (e) Highlight any other advantages or difficulties that you foresee in the regrouping idea. organizations. The Individual Management Model (IMM) ᭤
GUIDED TOUR OF THE BOOK xxi Review and discussion questions: assess students’ understanding and progressCritical reflections:motivate students tothink critically aboutkey themes Assignments: imaginative activities enable students to learn through personal application of theory Business Press: Financial Times articles demonstrate contemporary relevance of theory in journalistic stylePersonal awarenessand skills exercises:practise and developstudents’ interpersonaland work-based skills
Part 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Part 1 MANAGEMENT AND Part 2 ORGANISATIONAL THE Part 3 BEHAVIOUR ORGANISATIONAL THE ROLE OF SETTING THE MANAGER Part 7 MANAGEMENT OF HUMAN Part 8 RESOURCES IMPROVING ORGANISATIONAL PERFORMANCE Part 4 THE INDIVIDUAL Part 6 Part 5 ORGANISATIONAL GROUPS AND STRUCTURES TEAMWORK
1 INTRODUCTIONThe concepts and ideas presented in this bookprovide a basis for the critical appraisal ofcontrasting perspectives on the structure,operation and management of organisations,and interactions among people who work inthem. It is hoped that this will encourage agreater level of awareness of, and sensitivity to,the organisational factors and managementprocesses influencing the behaviour andperformance of people at work.LEARNING OUTCOMESAfter completing this chapter you should be able to: Photo: NASA᭤ explain the main features, aims and scope of this book;᭤ detail the main features of the seventh edition; Unlike technological and financial capital, people᭤ outline the main contents of the book and explain your have a soul. We have hopes and aspirations, westudy of the book; can trust and feel committed, and the trust and᭤ comment on the changing nature of work organisations; commitment we feel profoundly influence our᭤ summarise the study of management and propensity to give ‘beyond the call of duty’.organisational behaviour; Lynda Gratton Living Strategy: Putting People at the Heart of Corporate Purpose, Financial᭤ explain the nature, use and value of case studies. Times Prentice Hall (2000) Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall. Stephen Covey The 7 Habits of Highly Effective People, Simon and Schuster (1989)
4 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR ABOUT THIS BOOK However much of a cliché it may sound, it is still an inescapable fact that people are the main resource of any organisation. Without its members, an organisation is nothing; an organisation is only as good as the people who work within it. In today’s increasingly global and competitive environment the effective management of people is even more important for organisational survival and success. According to Alderman Sir Roger Cork, former Lord Mayor of London, eighty per cent of business failures are down to bad management.1 It has become acceptable in some areas to regard the academic study of management as at best esoteric and at worst irrelevant. Mastering Management is based on the belief that an academic approach to the study of management has much of real relevance for practising managers. Financial Times Mastering Management Series2 Human capital As a recent report from the London Business School points out: ‘Human Capital (HC) management is increasingly recognised as a key competitive advantage for companies. As well as a (HCM) key indicator of a company’s success.’ 3 However, despite the frequent protestations by organisations that ‘our employees are our greatest assets’ there is invariably a noticeable failure to measure their value to the organisation or to include their value in financial statements. In 2003 the Secretary of State for Trade and Industry established a task force on human capital management charged with looking at how organisations could measure the quality of their human capital management and report on its impact on business performance. The way an organisation manages its people impacts on its performance. Few would deny this simple statement and numerous company reports and studies have confirmed a link between possession of effective human resource strategies and organisational performance. Research over the past few years has clarified the features of good people management practices associ- ated with high performance and how these can be used strategically, in combination.4 This is the moment when HCM takes its place in the Boardroom. Directors need to trans- form the airy cliché about people being their greatest asset into a guiding principle of business strategy. Denise Kingsmill, Chair of Task Force on Human Capital Management5 THE AIMS OF THIS BOOK The aims of this book are to: ■ relate the study of organisational behaviour to that of management; ■ provide an integrated view embracing both theory and practice; ■ point out applications of behavioural science within work organisations and implications for management action; ■ indicate ways in which organisational performance may be improved through the better use of human resources and the effective management of people.
CHAPTER 1 INTRODUCTION 5 The book is written with a minimum of technical terminology and the format is clearly structured. Each chapter is fully supported with illustrations and contains: ■ a short introduction and learning outcomes; ■ a set of contemporary ‘critical reflections’; ■ a synopsis of key points; ■ review and discussion questions; ■ personal awareness and skills exercises; ■ assignment(s) and/or case(s); ■ detailed notes and references. While a prior knowledge of behavioural science would prove useful to the reader, it is not assumed. Neither is such knowledge a necessary prerequisite for an understanding of the concepts and ideas discussed in this book. Broader social science perspectives form an integral part of the explanation and discussion of management and organisa- tional behaviour. It is hoped that the comprehensive coverage and progressive presentation of contents will appeal to students at undergraduate, graduate or post-experience level in business or management, or on related professional courses. It is also hoped that the book will appeal not only to those aspiring to managerial positions, but to practising managers and supervisors who wish to expand their views and knowledge of the subject area. The study of organisational behaviour There are a number of alternative approaches to the study of organisational behaviour. For example, in addition to a managerialist approach, Drummond refers to two other intellectual standpoints, interpretative and critical. The interpretative standpoint views ambiguity, paradox and contradictions as part of the natural experiences of organisations, and with an emphasis upon understanding the subtleties and dynamics of organisational life. The critical standpoint believes that reality is very real and people have only a mar- ginal amount of freedom, and regards management science as bogus, a means of legitimising economic exploitation.6 While acknowledging the existence and potential contributions of both these stand- points, the main thrust of this book is to present a managerial approach to organisational behaviour. It is concerned with interactions among the structure and operation of organisations, the process of management and the behaviour of people at work. The underlying theme of the book is the need for organisational effective- ness and the importance of the role of management as an integrating activity.The scope ofthis book No single book could hope to cover adequately all aspects of what is a wide and essen- tially multidisciplinary field of inquiry, and it is not the intention to attempt to cover all aspects of individual or social behaviour. It is regrettable but inevitable therefore that some topics are excluded or given only limited coverage and it is not possible to meet fully the preferences of all readers. In order to attain a reasonable depth, this book concentrates on selected topics of particular relevance to problems of organisa- tion and the management of people in work situations, and which meet the needs of the intended audience. The nature of organisational behaviour and the practice of management should be considered not in a vacuum but within an organisational context and environment. The activities of a work organisation and the management of people are directed towards an end, towards certain goals. Chapters 4 (The Nature of Organisations) and 5 (Organisational Goals, Strategy and Responsibilities) help to provide an integrated, bal- anced setting for this book and for your studies of the subject area.
6 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR There are, of course, related areas of specialisms such as human resource management (HRM) which also bear upon management action and organisational effectiveness. However, this book is not about employment law and neither is it the intention to attempt to compete with specialist HRM books. Rather, Chapters 19 and 20 serve to recognise the importance of the context in which the process of management and organ- isational behaviour takes place and to provide an overview and signpost some main HRM areas of interest. Together with Chapters 4 and 5, these chapters aim at broadening the scope of the subject matter beyond the concerns of traditional organisational behav- iour texts – a distinctive feature of this book. THE SEVENTH EDITION The consistently supportive and positive feedback from reviewers and users of previous editions has been very much appreciated. Accordingly this edition retains the same underlying theme, aims and approach that have been a hallmark of the success of the book. Continuing attention has been given to the overall layout, style and appearance. Readers familiar with the previous edition may wish to note the following features of this seventh edition. ■ The opportunity has been taken for a comprehensive and detailed review of all con- tents, including attention to chapter titles and introductions; the organisation, flow and coherence of all material; and restructuring both within and between chapters. ■ Significant changes include ‘Organisational Practices’ brought forward to Chapter 2 from Chapter 16; and delegation and empowerment removed from Chapters 6 and 16 and consolidated and expanded in Chapter 21. ■ Changes have been made to the titles of a number of chapters in order to reflect more closely the nature of their contents. ■ There is considerable new material including greater attention to topical issues such as the changing nature of organisations and management, cultural influences and organ- isational behaviour, business ethics, diversity, leadership, management development, flexible working, stress, human resource management and work/life balance. ■ There are a number of additional and replacement appendices (now called Management in Action), assignments and case studies. ■ There are in excess of 450 new or revised references. ■ Each chapter now includes opening quotations which helps focus attention on an underlying feature of that chapter. ■ The section on ‘About the Contents’ on pages 8–15 now includes a note of main links with other chapters. ■ In order to accommodate the additional and updated contents, careful attention has been given to the deletion of older and possibly outdated material and references, unless believed to be clearly of continuing relevance today. This has demanded many hard choices but has been influenced by the overriding consensus to maintain the book at a reasonable and manageable size. ■ Together these changes hopefully provide not only a sharper and fresher approach but also a more contemporary and robust focus of attention as well as enhanced readability. In addition to the above there are three significant new features in the book: ■ Personal awareness and skills exercises Each chapter now includes an exercise designed specifically to help further the development of your personal awareness, and your social and work-based skills. The underlying basis of management and organisational activity is human behaviour and the interactions of people. However, we need to remind ourselves that people
CHAPTER 1 INTRODUCTION 7 bring their own perceptions, feelings and attitudes towards the organisation, sys- tems and styles of management, their duties and responsibilities, and the conditions under which they are working. An important first step in understanding the behav- iour of other people is to know and understand yourself. Enhancing your personal awareness and skills should make study and learning more fulfilling, improve your confidence and augment your ability to work well with other people. It should also help boost your employment opportunities. Increasingly, graduate recruiters are placing greater emphasis on key personal and social skills, and attitudes. To this end it is recommended that you maintain a log of the skills attained during your course of study that you can show in future job interviews. ■ Technology online Technology impacts on almost all aspects of management and organisational behav- iour. Technology solutions are interactive web exercises which encourage students to explore how technology might be used to solve specific managerial problems. ■ Business PressFT A new Business Press section provides contemporary articles relating to business and management situations featured in the Financial Times, including links with other most relevant chapters. There are also questions for each article allowing you to crit- ically discuss the issues raised in the articles. Key integrative features of this book Underlying key issues of management and organisational behaviour have always been an important integrative feature of this book, and continue to be addressed in this edi- tion. These include attention to: ■ organisational democracy with, for example, greater attention to employee partici- pation and empowerment, and the personal touch; ■ structures of people, concerns for the re-evaluation of work/life balance including demands for flexible working arrangements; ■ the importance of the context of culture and the impact of external environmental influences; ■ ethical and social values, the need for organisations to be more transparent and for more open relationships; ■ strategic approaches to human resource management and the effective management of people; ■ renewed focus on effective organisational performance including primary objectives of survival, growth and development, and profitability; ■ interrelationships among management, organisational behaviour, goals and strategy, human resource management and organisational effectiveness.
8 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR About the contents The book is divided into eight interrelated Parts, see Figure 1.1, and 23 chapters. Part 1 Part 2 MANAGEMENT AND THE Part 3 ORGANISATIONAL ORGANISATIONAL THE ROLE OF BEHAVIOUR SETTING THE MANAGER Part 7 MANAGEMENT OF HUMAN Part 8 RESOURCES IMPROVING ORGANISATIONAL PERFORMANCE Part 4 THE INDIVIDUAL Part 6 Part 5 ORGANISATIONAL GROUPS AND STRUCTURES TEAMWORK Figure 1.1 Interrelated parts of the book This chapter explains the nature, aims and main features about this book, and intro- duces you to the changing nature of the work organisation, and to the study of management and organisational behaviour. Part 1 Chapter 2: The Nature of Organisational Behaviour looks at the nature of organisa- Management tional behaviour and the importance of the people–organisation relationship. Chapter and 2 draws attention to main influences on the behaviour and performance of people in Organisational the work situation, and the central focus of management. Behaviour Links with other chapters Chapter 5 debates the idea of a social responsibility of management Chapter 7 discusses Theory X and Theory Y strategies of managerial behaviour Chapter 11 identifies the concept of ‘selective perception’ Chapter 14 explains the Johari Window framework of behaviour Chapter 16 includes reference to culture as a contingent factor Chapter 18 discusses applications of quality circles and the nature of the work/life balance Chapter 23 explores the nature of organisational effectiveness
CHAPTER 1 INTRODUCTION 9 Chapter 3: Approaches to Organisation and Management contrasts major trends in the development of management thinking and provides a basis for consideration of topics discussed in following chapters. Chapter 3 reviews different approaches to organisation and management, and the relationship between theory and manage- ment practice. Links with other chapters Chapter 4 examines the organisation as an open system Chapter 6 sets out principles of management to help general discussion on management theory Chapter 13 discusses the importance of group norms and social relationships Chapter 15 details common principles of organisation applicable to all situations Chapter 16 explains contingency models of organisation and management Chapter 19 discusses the unitary and pluralistic perspectives of organisations Chapter 22 reviews the nature of organisational conflictPart 2 Chapter 4: The Nature of Organisations recognises the importance of the organisa-The tional setting and external environment within which the process of managementOrganisational takes place. Chapter 4 examines the organisation as a complex social system, and inter-Setting relationships among its operations, structure and management. Links with other chapters Chapter 1 draws attention to the changing nature of work organisations Chapter 3 reviews developments in management thinking and organisational behaviour Chapter 5 discusses the significance of organisational goals and objectives Chapter 6 discusses management in private and public sector organisations Chapter 13 explains the importance and nature of groups and teams Chapter 16 refers to contingency models of organisation and management Chapter 17 explores the nature of technology and organisations Chapter 23 includes a discussion of the learning organisation Chapter 5: Organisational Goals, Strategy and Responsibilities draws attention to the importance of organisational goals and strategy for the operations and manage- ment of the organisation. Chapter 5 considers organisational ideologies and objectives, the concept of social responsibilities of management and business ethics. Links with other chapters Chapter 2 discusses the new psychological contract including responsibilities to employees Chapter 4 explains the context of the organisational setting including a systems view of organisations Chapter 7 examines the approach of Management by Objectives (MBO) Chapter 15 reviews the nature of organisation structure and design Chapter 21 looks at the concepts of power, involvement and compliance Chapter 22 examines the nature and management of organisational change
10 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Part 3 Chapter 6: The Nature of Management examines the process of management as the The Role of the cornerstone of the people–organisation relationship and fundamental to effective per- Manager formance. Chapter 6 reviews the essential nature of managerial work, the nature and main activities of management, and the execution of work. Links with other chapters Chapter 4 distinguishes between production and service organisations, and explains the systems approach to organisations Chapter 7 examines managerial behaviour and effectiveness Chapter 15 sets out Urwick’s principles of organisation and also different levels of organisation Chapter 21 discusses the nature of delegation and empowerment Chapter 22 explores the nature of organisational culture and climate Chapter 23 examines management development including Management Standards, and the Leadership and Management model Chapter 7: Managerial Behaviour and Effectiveness recognises the responsibility of managers to manage and to achieve results through the efforts of other people. Chapter 7 considers different systems and styles of managerial behaviour, the effective utilisation of human resources and managerial effectiveness. Links with other chapters Chapter 2 refers to successful management as the ability to handle people effectively, and also to the psychological contract Chapter 6 examines the nature of management Chapter 8 discusses the nature of managerial leadership Chapter 12 explains Maslow’s hierarchy of needs model Chapter 13 refers to role expectations and self-established role prescriptions Chapter 19 discusses the Investors in People Standard for training and development Chapter 8: The Nature of Leadership explores the process of managerial leadership as a central feature of improved organisational performance. Chapter 8 looks at the exer- cise of leadership power and influence, leadership as an aspect of behaviour, and the importance of situational variables. Links with other chapters Chapter 6 discusses management as getting work done through the fforts of other people Chapter 7 examines managerial behaviour and effectiveness Chapter 12 includes an account of expectancy theory of motivation Chapter 13 examines the nature of work groups and teams Chapter 14 discusses task functions and maintenance functions of leader-member behaviours Chapter 23 refers to the Leadership and Management Model as a framework for effective role model leadership
CHAPTER 1 INTRODUCTION 11Part 4 Chapter 9: Individual Differences draws attention to the importance of the individ-The Individual ual’s contribution to the performance of work organisations. Chapter 9 focuses on individual differences, the significance of personality and attitudes, and the recogni- tion of individual talent and potential. Links with other chapters Chapter 3 refers to the sex power differential in the Hawthorne experiments Chapter 10 examines an understanding of the ways in which people learn Chapter 11 discusses the process of perception and the impact of gender differences Chapter 12 explores the nature and causes of frustration-induced behaviour Chapter 14 explains the Johari Window framework of behaviour Chapter 18 examines the nature, causes and consequences of stress at work Chapter 20 details procedures for the recruitment and selection of staff, and the use of tests Chapter 10: The Nature of Learning explores the significance of learning to organisa- tional behaviour, and as an important factor in managing change and motivating employees. Chapter 10 explains the nature of the learning process, knowledge manage- ment, the learning organisation and evaluates theories of learning. Links with other chapters Chapter 9 examines the nature of individual differences Chapter 12 discusses the motivation of knowledge workers Chapter 13 refers to possible stress from situations of role ambiguity Chapter 15 looks at the impact of organisation structures on behaviour at work Chapter 17 examines the impact of technology on organisations Chapter 22 explains the learning organisation as a feature of organisation development Chapter 23 discusses management development as an essential feature of organisational effectiveness Chapter 11: The Process of Perception considers the nature of the perceptual process and the importance to the manager of the study of perception. Chapter 11 explains factors influencing perception and draws particular attention to an understanding of problems regarding the perception of other people. Links with other chapters Chapter 2 introduces the concept of the psychological contract Chapter 7 discusses Theory X and Theory Y strategies of managerial behaviour Chapter 9 explains the Myers-Briggs Type Indicator Chapter 10 explores an understanding of the nature of learning and the ways in which people learn Chapter 12 examines process theories of motivation Chapter 14 refers to perception of ‘self’ and how people see and think of themselves
12 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Chapter 12: Work Motivation and Rewards examines those areas that influence the motivation of staff and which elicit their willing co-operation and improved perform- ance. Chapter 12 reviews different theories and ideas about motivation and rewards, and evaluates their relevance to particular work situations. Links with other chapters Chapter 2 introduces the concept of the psychological contract and also refers to culture and motivating factors Chapter 3 discusses the ideas of scientific management and the rational-economic concept of motivation Chapter 6 refers to management as getting work done through other people Chapter 7 examines the approach of Management by Objectives (MBO) Chapter 11 explains Attribution theory as part of process theories of motivation Chapter 18 discusses work organisation and job design, and job enrichment Part 5 Chapter 13: The Nature of Work Groups and Teams looks at the nature and signifi- Groups and cance of work groups and teams as a major feature of organisational life. Chapter 13 Teamwork considers those factors which influence group formation and cohesiveness and the importance of groups and role relationships for organisational performance. Links with other chapters Chapter 3 refers to the power of group membership and the Hawthorne experiments, and also to the effects of changing technology Chapter 4 explains social processes and the informal organisation Chapter 8 examines the process of leadership linked to the activities of groups Chapter 14 examines working in groups and teams Chapter 15 looks at formal organisational relationships and the matrix form of organisation Chapter 18 discusses role stress as an influence on job satisfaction and performance Chapter 14: Working in Groups and Teams reviews the importance of understanding the nature of working in groups and teams, and interactions among members. Chapter 14 gives attention to the analysis of behaviour of individuals in group or team situa- tions, and the assessment of performance and effectiveness. Links with other chapters Chapter 7 refers to the Blake and Mouton Managerial Grid seminars for reviewing patterns of behaviour Chapter 8 discusses leadership development and effectiveness Chapter 12 explains achievement motivation Chapter 13 examines the nature of work groups and teams Chapter 18 discusses a group of people in quality circles, and also self-managed work groups Chapter 19 draws attention to training in people skills and teamworking
CHAPTER 1 INTRODUCTION 13Part 6 Chapter 15: Organisation Structure and Design provides an overview of the natureOrganisational and importance of structure for effective management and organisational performance.Structures Chapter 15 details key factors to be considered in the design of structure, and considers the relationships between organisation structure and people. Links with other chapters Chapter 3 discusses the idea of common sets of principles on organisation Chapter 4 looks at the informal organisation and also refers to information technology as a dimension of structural design Chapter 5 explains the importance of organisational goals and objectives Chapter 7 refers to the changing nature of the work organisation and the hierarchy Chapter 13 discusses role relationships and interactions, and role incongruence Chapter 16 examines patterns of structure and work organisation Chapter 16: Patterns of Structure and Work Organisation recognises the situational variables that influence the most appropriate organisation structure and systems of management. Chapter 16 examines the importance of alternative forms of structure, the demand for flexibility. Links with other chapters Chapter 2 draws attention to national culture and principles of contingency theory Chapter 4 discusses types of organisations and their purpose Chapter 5 refers to the fallacy of the single business objective Chapter 15 examines organisation structure and design Chapter 18 considers the influence of flexibility on job satisfaction of staff Chapter 21 discusses the nature and importance of delegation and empowerment Chapter 22 examines the significance of the culture of the organisation Chapter 17: Technology and Organisations explains the pervasive nature of technol- ogy within contemporary organisations and a variety of perspectives. Chapter 17 considers the importance of organisational and human dimensions of the adoption and implementation of new technology. Links with other chapters Chapter 2 explains the nature of organisational behaviour and draws attention to the importance of people Chapter 3 discusses the system approach to the analysis of organisations Chapter 4 draws attention to the influence of technology, information technology and the management of technical change Chapter 18 discusses main dimensions of job satisfaction including reference to alienation at work Chapter 19 explores the role of personnel/HRM specialists Chapter 22 draws attention to human and social factors associated with the need for organisations to adapt to new technological developments
14 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Part 7 Chapter 18: Job Satisfaction and Work Performance considers the meaning and Management nature of job satisfaction and the relationship between staff and their jobs. Chapter 18 of Human reviews dimensions of job satisfaction, main approaches to improving job design, and Resources relationships between job satisfaction and work performance. Links with other chapters Chapter 2 referes to a number of interrelated influences on behaviour Chapter 4 draws attention to developments in technical systems and dangers of information overload Chapter 5 discusses the importance of social responsibilities of organisations Chapter 12 explores the nature and causes of frustration-induced behaviour, and also discusses job design Chapter 14 discusses the importance of effective teamworking Chapter 16 considers demands for greater flexibility in patterns of work organisation Chapter 21 explains the nature, importance and benefits of empowerment Chapter 19: Human Resource Management draws attention to the importance of the promotion of good human relations for improved organisational performance. Chapter 19 provides an overview of the human resource management function, personnel poli- cies and activities, and the nature of employee relations. Links with other chapters Chapter 3 refers to the unitary and pluralistic view of organisations Chapter 5 debates the importance of social responsibilities of management Chapter 7 examines the approach of Management by Objectives (MBO) Chapter 11 draws attention to the possible effects of perceptual distortions Chapter 13 explains role incongruence and role conflicts Chapter 18 discusses a quality of working life (QWL) strategy Chapter 20 examines resourcing the organisation Chapter 23 explores the nature and importance of management development Chapter 20: Resourcing the Organisation recognises that the effectiveness of an organisation depends very largely upon the staff it employs. Chapter 20 looks at the importance of effective systems and procedures for resourcing the organisation, and a planned and systematic approach to recruitment and selection. Links with other chapters Chapter 9 discusses the features and limitations of testing Chapter 11 draws attention to verbal and non-verbal cues, and also to possible perceptual distortions and errors Chapter 14 explains buddy rating or peer rating as the basis of sociometry, and also scoring measures for leaderless group discussions Chapter 18 discusses a quality of working life (QWL) strategy Chapter 19 examines Human Resource Management
CHAPTER 1 INTRODUCTION 15Part 8 Chapter 21: Organisational Control and Power explores the nature of control andImproving power as an integral part of the process of management and the people–organisationOrganisational relationship. Chapter 21 details the characteristics of an effective control system, andPerformance considers broader perspectives of organisational power including delegation and empowerment. Links with other chapters Chapter 2 introduces the concept of the ‘Peter Principle’ Chapter 3 discusses ‘Taylorism’ and the ideas of scientific management Chapter 4 consider the organisational setting and the nature of organisations Chapter 7 discusses Theory X and Theory Y strategies of managerial behaviour Chapter 8 explains main sources of power and leadership influence Chapter 18 discusses improving job satisfaction and getting the best out of people Chapter 22 explores the importance of organisational culture and climate Chapter 22: Organisational Development (Culture, Conflict and Change) reviews the meaning, nature and main features of organisation health and development (OD). Chapter 22 draws attention to the importance of understanding culture and climate, organisation conflict and in particular the successful management of change. Links with other chapters Chapter 2 looks at the use of metaphor to see organisation and management, and also to the meaning of the term ‘organisational behaviour’ Chapter 3 refers to the structuralist approach to organisations and management Chapter 11 examines the importance of differences in perception Chapter 12 discusses equity theory of motivation Chapter 15 details Woodward’s study of management organisation of firms Chapter 19 discusses the unitary perspective of the organisation Chapter 23 examines management development and organisational effectiveness Chapter 23: Management Development and Organisational Effectiveness con- cludes by reviewing the importance of effective management as central to organisation development and improved work performance. Chapter 23 looks at the nature of man- agement development, dimensions of organisational effectiveness and reminds us of the importance of people. Links with other chapters Chapter 2 explores the nature of organisational behaviour and draws attention to the importance of organisational effectiveness Chapter 4 examines the organisational setting and nature of organisations Chapter 6 refers to the nature of management in the public sector Chapter 7 discusses managerial behaviour and effectiveness Chapter 10 draws attention to coaching and mentoring, the concept of the learning organisation, and knowledge management Chapter 12 examines different theories of motivation Chapter 19 discusses Investors in People Standard, and also performance appraisal
16 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR YOUR STUDY OF THE BOOK This book adopts an applied approach to the search for the most appropriate ways of improving organisational performance and effectiveness. The objective analysis of organisations is supported, where appropriate, by a more prescriptive stance. For exam- ple, the underlying need to establish a framework of order and system of command by which the work of the organisation is undertaken demands that attention be given to certain basic principles and consideration of structure. General principles and prescrip- tions apply equally to all types of work organisations which achieve their goals and objectives through the process of management. It is possible that the more practically minded reader may wish to concentrate greater attention on the latter parts of certain chapters. However, even a cursory exam- ination of earlier sections of the chapter will help provide an understanding of underlying studies upon which discussion of practical applications is based. The notes and references given at the end of each chapter are to encourage you to pursue further any issues of particular interest. A simple numbering system has deliber- ately been maintained in order to keep the main text uncluttered and easier to follow, to provide more detailed and specific referencing, and because feedback indicates this system appears to be favoured by most readers. Questions, You are invited to test your knowledge and understanding of the contents by attempt- assignments ing the review and discussion questions at the end of each chapter. These questions and case provide a basis for revision and review of progress. You are also invited to undertake studies the assignment(s) and/or case(s) at the end of each chapter. The questions, assignments and case studies provide an opportunity to relate ideas, principles and practices to spe- cific work situations, to think and talk about major issues, and to discuss and compare views with colleagues. In order to help relate the contents of the chapters to real-life situations, many of the questions and assignments ask you to support your discussion with, and/or to give, examples from your own organisation. This can of course be your own college or college department. Alternatively, you may have work experi- ence, even part-time or casual employment, in other organisations that you may draw upon and share with colleagues. A modular Initiatives such as semesterisation and modularisation are now common in higher educa- approach tion. This book provides comprehensive coverage of a wide range of topic areas related to the effective use of human resources within the work situation. Although there is a logi- cal flow to the sequencing of topic areas, each Part and each chapter of the book is self-contained. Accordingly, if you come across some repetition of references to underly- ing central features of organisational behaviour and modern management this should provide useful reinforcement of your studies. Main sections are identified clearly within each chapter and there are detailed headings and sub-headings. An important and distinctive feature of this book is that it is especially suitable across a range of different but related modules, including both single or double semester units, and will help to provide an integrated approach to your studies. The selection and ordering of chapters can be varied to suit the particular demands of your study courses or your interests. Organisational In approaching your studies, you need to bear in mind the importance of the organisa- environment tional setting, organisational environment and culture. Remember also there are and culture variations in systems and styles of management, and in the choice of managerial behaviour. You may wish to consider the following simple, five-stage framework (Figure 1.2).
CHAPTER 1 INTRODUCTION 17Figure 1.2 A basic framework of study You are encouraged to complement your reading of the book by drawing upon your own experience of work organisations. Search for and study examples of management and organisational behaviour. Look for good and bad examples of management activi- ties and practices, and consider reasons for their apparent success or failure. Compare critically the practical examples given in the text and appendices with the procedures and practices in your own organisation. Consider the manner in which concepts and ideas presented in this book can best be applied in particular work situations. Contemporary examples from your own observations should help further your interest in the subject area and illustrate practical applications to real-life situations. THE CHANGING NATURE OF WORK ORGANISATION The effective management of people takes place in the context of the wider environ- mental setting, including the changing patterns of organisations and attitudes to work. It is frequently documented that a global economy, increased business competitive- ness, the move towards more customer-driven markets, advances in scientific knowledge, especially telecommunications and office automation, have led to a period of constant change and the need for greater organisational flexibility. This is a recur- ring theme throughout the book. The power and influence of private and public organisations, the rapid spread of new technology, and the impact of various socio-economic and political factors have attracted increasing attention to the concept of corporate social responsibilities and business ethics. Increasing attention is also being focused on the ethical behaviour which underlies the decisions and actions of managers and staff; and many responsible organisations and professional bodies now choose to publish a Code of Ethics. The changing nature of organisations and individuals at work has placed increasing pressure on the awareness and importance of new psychological contracts. Forces of global competition and turbulent change make employment guarantees unfeasible and demand a new management philosophy based on trust and teamwork. People are seen as a responsibility and a resource to be added to. Employees need to abandon the sta- bility of lifetime employment and embrace the concept of continuous learning and personal development.7 According to an ESRC publication, in any analysis of the transformation of Britain’s employment relations we cannot neglect the changing nature of work. The influence of technological innovation, work restructuring and job redesign are all helping to reshape shopfloor attitudes among managers, unions and workers.8 In their discussion of the twenty-first century organisation, Bouchikhi and Kimberly refer to the customised workplace which represents a radical departure from commonly
18 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Table 1.1 Contrasting the paradigms 19th century 20th century 21st century Theory of personhood Interchangeable muscle A subordinate with a Autonomous and and energy hierarchy of needs reflexive individual Information and The province of Management-dominated Widely diffused knowledge of management alone and shared on a limited basis The purpose of work Survival Accumulation of wealth Part of a strategic and social status life plan Identification With the firm and/or with Identify with a social The disenfranchised the working class group and/or the firm self Conflict Disruptive and to be Disruptive but tolerated A normal part of life avoided and can be settled through collective bargaining Division of labour Managers decide, Managers decide, Employees and employees execute employees execute managers decide thoughtfully and execute Power Concentrated at the top Limited, functional Diffused and shared sharing/empowerment Source: Bouchikhi, H. and Kimberly, J. R., ‘The Customized Workplace’, in Chowdhury, S., Management 21C, Financial Times Prentice Hall (2000), p. 215. accepted management principles and techniques. They summarise the main differences between nineteenth, twentieth and twenty-first century management – see Table 1.1.9 New approaches to management and organisational behaviour In discussing new approaches to management practices for the next decade, Muzyka suggests that: ‘Organizational behavior has moved from an emphasis on the structural aspects of functional and cross-functional organizations to more flexible models, including enhanced consideration of short-term, high performance teams.’ New ideas of how to motivate and deploy people have developed. A new contract is evolving that involves the exchange of value. Individuals need to be encouraged and permitted to achieve: to perform to their highest potential, for their benefit and that of the employer. Organizations are encouraging staff to craft more flexible, value-laden, and specific rules gov- erning their relationships.10 Cloke and Goldsmith refer to the age of traditional management coming to an end and the decline of hierarchical, bureaucratic, autocratic management. They contend that management is an idea whose time is up and organisations that do not recognise the need to share power and responsibility with all their workers will lose them.11 The nature and importance of e-business What is an e-business? When you get down to it, an e-business is an organisation that connects critical business systems directly to their customers, employees, partners and suppliers, via intranets, extranets and over the Web. As customers, employees, suppli- ers and distributors are all connected to the business systems and information they
CHAPTER 1 INTRODUCTION 19 need, e-business actually transforms and integrates key business processes. In short, the definition of e-business is: ‘the transformation of key business processes using Internet technologies’. Why e-business? First, organisations of all sizes are impacted by globalisation and deregulation, which lowers barriers to entry and dramatically reshapes the competitive landscape. Second, people now have a broader array of choices and therefore are becoming more sophisticated and more demanding – both in what they want from a supplier but also how they choose to acquire goods and services. Thus, the need to change your organisation to stay ahead of competition is vital. Every process of an enterprise – from employee training to product development – is going to be subject to this transformation. E-business strategy organisations must unlock the power of the information and data that exist – interactions with websites, file cabinets, desk draw- ers, databases, and the collective experience of employees. This intellectual capital is a most valuable asset, but only when it is leveraged for competitive advantage.12 Kermally suggests that becoming an e-business is now an imperative for all types of organisations, large and small. The key success factor lies in not emulating established habits. Leadership in the new economy needs to: ■ enthuse employees; ■ empower and respect employees; ■ create trust throughout the organisation; ■ understand the importance of knowledge as a source of business energy; ■ identify and leverage intangible assets; ■ be a custodian of corporate governance in the age of the Internet; ■ be willing to engage in ‘constructive destruction’, since e-business requires constant renewal of its business model.13 It is important, however, to remember the human element to business and that it is people who have to decide what information is actually needed, to ensure the best use of technology, and to design systems that work for them and their organisations. ‘It’s people who manage knowledge – not computers.’14THE STUDY OF MANAGEMENT AND ORGANISATIONAL BEHAVIOUR The use of separate topic areas is a recognised academic means of aiding study and explanation of the subject. In practice, however, the activities of an organisation and the job of management cannot be isolated neatly into discrete categories. The majority of actions are likely to involve a number of simultaneous functions that relate to the total processes of management.15 Consider, for example, a manager briefing departmental staff on an unexpected, important and urgent task which has to be undertaken quickly. Such a briefing is likely to include consideration of goals and objectives, organisation structure, management system, process of delegation and empowerment, systems of communication, leadership style, motivation and control systems. The behaviour of the staff will be influenced by a combination of individual, group, organisational and environmental factors. Topic studies in organisational behaviour should not be regarded, therefore, as entirely free-standing. Any study of organisation and management inevitably covers several aspects, and each study can be used to a greater or lesser extent to confirm gen- eralisations made about particular topic areas. The use of the same studies to illustrate different aspects of management and organisational behaviour serves as useful revision and reinforcement, and helps to bring about a greater awareness and understanding of the subject.
20 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR No single right You will probably be aware that a feature of the study of management and organisational answer behaviour is the invariable difficulty in identifying a single solution to a particular prob- lem. The absence of one, right answer can make study of the subject complex and frustrating; but the area of study can also be interesting and challenging, stimulating cre- ative thought and ideas, and it can be related to your own work experience. A useful model for the study of management and organisational behaviour is to see the organisation as an open system (see Chapter 4). The open system approach views the organisation within its broader, external environment and places emphasis on multiple channels of interaction. It provides a means of viewing the total organisation and of embracing different dimensions of analysis. The open system model provides a perspective for a managerial approach to organisational behaviour. It helps in the search for the most appropriate ways of influencing the behaviour of people within an organisational setting. The relevance In the study of management and organisational behaviour you will come across many of theory theories. However, you should not be put off by the use of the word ‘theory’. Most rational decisions are based on some form of theory. Theory contains a message on how managers might behave. This will influence attitudes towards management prac- tice and lead to changes in actual patterns of behaviour. Theory helps in building generalised models applicable to a range of organisations or situations. It further provides a conceptual framework and gives a perspective for the practical study of the subject. Thus theory and practice are inseparable. Together they lead to a better understanding of factors influencing patterns of behaviour in work organisations and applications of the process of management.16 However, to be of any help to the practising manager, theory has to be appropriate. For example, Lee refers to: ... the danger of adopting theories because they are teachable, rather than because they are effective ... (however) without appropriate theory, there would be very little communication of the insights of scientific theory to practising managers.17 Although it is not always easy to establish their exact origins, ideas do percolate through to best practice.18 Patching suggests that all managers who think about what they do are practical stu- dents of organisational theory. Theory is not something unique to academics, but something we all work with in arriving at our attitudes, beliefs and decisions as managers. It seems obvious to most of us that some theories are better than others. Many managerial discussions which we undertake in meetings focus upon trying to agree upon which theory will be best for a particular decision.19 THE USE OF CASE STUDIES 20 Case studies are increasingly popular as a part of the study of management and organ- isational behaviour. According to Mumford, the case method is, with the exception of lectures, clearly the most widely used method in management education.21 There are a variety of types of case studies and they may be presented in a number of different ways. Case studies range from, for example, a brief account of events which may be actual, contrived or a combination of both; ‘armchair’ cases based on hypothetical but realistic situations, and developed to draw out and illustrate particular points of prin- ciple; to complex, multi-dimensional cases giving a fuller descriptive account of actual situations in real organisations. The term ‘case study’ may be extended to include criti- cal incident analysis, role-play and the in-tray (or in-basket) exercise, although these are more methods of training. A case study may require you to work on an individual basis or it may involve group work. It may also specify that you are to assume a partic- ular role, for example as a senior or departmental manager or consultant.
CHAPTER 1 INTRODUCTION 21Objectives of Whatever the nature or form of case studies, a major objective of their use is usuallyuse of case the application of theoretical knowledge to practical situations and/or the integrationstudies of knowledge drawn from a number of related disciplines or areas of study. Case studies are basically problem analysis and decision-making exercises. They provide a test of the ability to distinguish real issues from less significant matters. There is unlikely to be a single, right answer. Case studies, therefore, provide the participants with an opportunity to demonstrate analytical ability, logical thinking, judgement and persuasiveness and skills of com- munication in the presentation of answers. If the case study is undertaken as a group exercise, it also provides a means of assessing both the performance of the group as a whole and the ability of individuals to work effectively as members of the group.22 In reviewing the relevance of the case study method, Orpen suggests that although it may be regarded as out of date by many management teachers and managers, a major reason why cases must form the important element in any management programme is that managing has to do with problem-solving rather than just learning to do things. Although it is often difficult to accomplish, the movement from the lecture method to the case study method of teaching is one that has to be made. ‘After all, management is ultimately about doing the right thing in the circumstances – something learnt by doing cases – not just digesting ideas from teachers.’23 According to Hazard, the case method is least suited to knowledge transmission, and those institutions that have chosen to teach exclusively by cases do themselves and their students a disservice. Case learning works best with older, more experienced stu- dents and allows participants to develop skills, to listen to other people, and to understand that there are many ways of approaching a single problem. Case teaching should be viewed as the first step in an action learning hierarchy.24Guidelines on The level and depth of analysis, and the type of answer required, will depend upon thetackling case particular case study and the reasons for its use. However, despite variations in thestudies nature and format of case studies it is possible to suggest general guidelines on how to tackle them. 1 Read the whole of the case study. Try to get a ‘feel’ for what it is about and note what the question(s) ask(s) you to do. Check on the time allowed. 2 Read the case study a second time. Look at the material carefully and try to identify with the situation. Check again on exactly what you are required to do and instructions on how to present your answer. For example, if a report is called for, your answer should be presented in proper report form. Check whether you are to assume a specific role and if your answer is to be directed at a specified audience – for example, a senior manager, the board of directors or a committee. 3 If there are a number of different parts to the case study you should apportion available time and ‘weight’ your answers accordingly. 4 Approach your analysis of the case study with an open mind. Be conscious of any bias or prejudice you may have and avoid any predispositions which may influ- ence your perception of the case material. Do not jump to hasty or unfounded conclusions. Do not formulate firm opinions or solutions until you have collated all the available evidence. 5 Adopt a brainstorming approach and take the case apart by exploring all reason- ably possible considerations. Remember there may be a number of separate problems with separate causes and a number of alternative courses of action. There is not necessarily a single ‘correct’ or ‘model’ answer. 6 You may need to search for hidden meanings and issues which are not at first read- ily apparent. Do not, however, make things unnecessarily complicated. Do not take the ‘obvious’ for granted and do not neglect simple responses which help to pro- vide a satisfactory answer to the question as worded.
22 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR 7 A particular feature of case study work is that you are likely to have only limited information. You should, therefore, make a point of studying all the details given in the case material, first, to make certain of the facts; and second, to identify what deductions or inferences can be drawn from these facts. You may feel it necessary to make certain assumptions. If so, these assumptions should follow reasonably from the case material and serve only to help clarify the situation. Even if you are not specifically requested to do so, it is recommended that you make clear any nec- essary assumptions as part of your answer. 8 The case study may set out deliberately to present a tangle of information, events or situations which need to be unravelled in order to clarify links and relation- ships, and to distinguish causes from effects, and symptoms from problems. Concentrate on what you see to be the more important matters as opposed to any irrelevant detail or possible red herrings which may confuse the real issues. 9 In your analysis of the case material you may find it helpful to emphasise key words or phrases, including emotive language and actions. You may also find it helpful to: – list the people involved and draw a pen picture of them from the available infor- mation; and – trace the sequence and timing of events which have led to the present situation. The use of margin notes, underlining, numbering and/or lettering, colours or high- lighting pens may all be useful but you should be careful not to make your analysis confused or too complicated. 10 Where appropriate, relate your analysis of the case material to your theoretical studies, general points of principle and the work of leading writers. For example, you might find the PESTEL analysis discussed in Chapter 4 or the SWOT analysis discussed in Chapter 5 helpful in tackling case studies. It is always valuable to be able to draw upon practical experience but make sure it is relevant to the particular circumstances. You may still be able to make use of knowledge gained from experi- ence not related directly to the case study, but avoid the temptation to distort your perception of the situation as described to suit your own personal experience. 11 Bearing in mind the question, clearly identify existing or potential difficulties or problem areas and indicate where you see the need for most urgent action. Where you have identified a number of possible courses of action indicate your re- commended priorities. Bear in mind also practical considerations such as timing, cost and existing personalities. Where appropriate give reasons in support of your recommendations. 12 Draw up a plan of key points as the basis of your answer. 13 The use of visual displays such as diagrams, charts or tables may enhance the presentation of your answer. But make sure such visual displays are accurate and clear and relate directly to your analysis of the case material, and to the question as worded. Every visual display should be given a meaningful title, and serve to help the reading and interpretation of your answer. Do not be tempted to use visual dis- plays for their own sake or to spend too much time on an over-elaborate display at the expense of more important matters. 14 Allow time to read through and check your work. REVIEW AND DISCUSSION QUESTION Discuss critically what you believe are the main factors to bear in mind with, and particular difficulties presented by, the study of management and organisational behaviour. Where pos- sible, give practical examples based on your own experience.
CHAPTER 1 INTRODUCTION 23PERSONAL AWARENESS AND SKILLS EXERCISEOBJECTIVESCompleting this exercise should help you to enhance the following skills:᭤ Recognise different ways in which people think.᭤ Explain and justify your approach to making decisions.᭤ Participate in a small group discussion.EXERCISEFive figures are shown below.You are required to:1 Select the one that is different from all the others.2 Discuss in small groups reasons for the individual selections and be prepared to justify your own decision.3 See if you can reach a consensus on a single group answer.DISCUSSION■ To what extent did members of the group understand the thought processes of others?■ If you were persuaded to change your mind on what basis was this decision made?■ What conclusions do you draw from this exercise?Visit our website www.booksites.net/mullins for further questions, annotated weblinks,case material and Internet research material.
24 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR NOTES AND REFERENCES 1. Cited in Robinson, G. ‘Managers Under the Spotlight’, 15. A similar view is taken by Watson, T. J. Organising and The British Journal of Administrative Management, Managing Work: organisational, managerial and strategic September/October 1997, p. 5. behaviour in theory and practice, Financial Times Prentice 2. Bickerstaffe, G. ‘Mastering Management’, Financial Hall (2002). Times, 27 October 1995, p. 2. 16. See, for example: Billsberry, J. (ed.) ‘There’s Nothing So 3. Foong, K. and Yorston, R. ‘Human Capital Measurement Practical as a Good Theory: How Can Theory Help and Reporting A British Perspective’, London Business Managers Become More Effective?’ in The Effective School, June 2003, p. 3. Manager: Perspectives and Illustrations, Sage Publications 4. ‘Accounting for People’, Report of the Task Force on (1996), pp. 1–27; and Naylor, J. Management, Financial Human Capital Management, DTI, October 2003, p. 3. Times Pitman Publishing (1999), pp. 18–20. 5. Ibid., p. 2. 17. Lee, R. A. ‘There is Nothing so Useful as an Appropriate 6. Drummond, H. Introduction to Organizational Behaviour, Theory’, in Wilson, D. C. and Rosenfeld, R. H. Managing Oxford University Press (2000). Organizations: Text, Readings and Cases, McGraw-Hill 7. Ghoshal, S., Bartlett, C. A. and Moran, P. ‘Value Creation: (1990), p. 31. The New Millennium Management Manifesto’, in 18. Crainer, S. ‘The Rise of Guru Scepticism’, Management Chowdhury, S. Management 21C, Financial Times Prentice Today, March 1996, pp. 48–52. Hall (2000), pp. 121–40. 19. Patching, K. Management and Organisation Development, 8. Taylor, R. ‘The Future of Employment Relations’, Macmillan Business (1999), p. 11. Economic and Social Research Council, September 20. Based on Mullins, L. J. ‘Tackling Case Studies’, Student 2001, pp. 7–8. Administrator, vol. 1, no. 5, June 1984. See also: 9. Bouchikhi, H. and Kimberly, J. R. ‘The Customized Ainsworth, A. ‘Tackling Case Studies’, Supplement to Workplace’, in Chowdhury, S. Management 21C, Financial Times Prentice Hall (2000), pp. 207–19. Chartered Secretary, January 2000. 10. Muzyka, D. ‘Thriving on the Chaos of the Future’, in 21. Mumford, A. ‘When to Use The Case Method’, Pickford, J. (ed.) Financial Times Mastering Management ECCHO: The Newsletter of the European Case Clearing 2.0, Financial Times Prentice Hall (2001), p. 8. House, Autumn/Fall 1997, pp. 16–17. 11. Cloke, K. and Goldsmith, J. The End of Management: and 22. See, for example: Easton, G. Learning From Case Studies, the Rise of Organizational Democracy, Jossey-Bass (2002). Second edition, Prentice-Hall (1992). 12. For an account of key issues in e-business, see for 23. Orpen, C. ‘Reconsidering the Case-Study Method of example: ‘Accenture’, supplement to Management Today, Management Teaching’, Journal of European Business January 2001. Education, Buckinghamshire Business School, vol. 9, 13. Kermally, S. ‘E-strategy is Key to Future Success’, no. 2, May 2000, pp. 56–64. Professional Manager, July 2001, pp. 28–9. 24. Hazard, H. ‘An Action Learning Teacher Reflects on 14. Fitzsimmons, G. ‘It’s People Who Manage Knowledge – Case Teaching’, ECCHO: The Newsletter of the European Not Computers’, The British Journal of Administrative Case Clearing House, Issue No. 22, Autumn/Fall 1999, Management, March/April 2000, p. 16. pp. 5–7. Use the Financial Times to enhance your understanding of the context and practice of management and FT organisational behaviour. Refer to article 7 in the BUSINESS PRESS section at the end of the book for relevant reports on the issues explored in this chapter.
2 THE NATURE OF ORGANISATIONAL BEHAVIOURThe scope for the examination of behaviour inorganisations is very wide. There is a multiplicityof interrelated factors which influence thebehaviour and performance of people asmembers of a work organisation. It is importantto recognise the role of management as anintegrating activity and as the cornerstone oforganisationa effectiveness. People andorganisations need each other. The managerneeds to understand the main influences onbehaviour in work organisations and the natureof the people–organisation relationship.LEARNING OUTCOMESAfter completing this chapter you should be able to: Photo: Mark Renders/Getty Images᭤ explain the meaning and nature of organisationalbehaviour and provide an introduction to a behaviouralapproach to management; Organizations are extremely complex systems. As᭤ detail main interrelated influences on behaviour in one observes them they seem to be composed ofwork organisations and explain the nature of behavioural human activities on many different levels ofscience; analysis. Personalities, small groups, intergroups,᭤ outline contrasting perspectives of organisations and norms, values, attitudes all seem to exist in andifferent orientations to work; extremely complex multidimensional pattern. The᭤ recognise the importance of management as an inte- complexity seems at times almost beyondgrating activity; comprehension.᭤ assess the nature and importance of the newpsychological contract; Chris Argyris Integrating the Individual and the Organization, John Wiley & Sons (1964)᭤ review the need for a cross-cultural approach and theimportance of culture to the study of organisationalbehaviour;᭤ summarise the complex nature of the behaviour ofpeople in work organisations.
26 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR THE MEANING OF ORGANISATIONAL BEHAVIOUR We live in an organisational world. Organisations of one form or another are a necessary part of our society and serve many important needs. The decisions and actions of man- agement in organisations have an increasing impact on individuals, other organisations and the community. It is important, therefore, to understand how organisations function and the pervasive influences which they exercise over the behaviour of people.1 Organizational Behaviour is one of the most complex and perhaps least understood aca- demic elements of modern general management, but since it concerns the behaviour of people within organizations it is also one of the most central … its concern with individual and group patterns of behaviour makes it an essential element in dealing with the complex behavioural issues thrown up in the modern business world. Financial Times Mastering Management Series2 The behaviour of people Organisational behaviour is concerned with the study of the behaviour of people within an organisational setting. It involves the understanding, prediction and control of human behaviour.3 Common definitions of organisational behaviour (OB) are gener- ally along the lines of: the study and understanding of individual and group behaviour, and patterns of structure in order to help improve organisational per- formance and effectiveness.4 There is a close relationship between organisational behaviour and management theory and practice. Some writers seem to suggest that organisational behaviour and management are synonymous, but this is something of an over-simplification because there are many broader facets to management. Organisational behaviour does not encompass the whole of management; it is more accurately described in the narrower interpretation of providing a behavioural approach to management. It is important to emphasise that in most cases the term ‘organisational behaviour’ is, strictly, a misnomer: rarely do all members of an organisation, except perhaps very small organisations, behave collectively in such a way as to represent the behaviour of the organisation as a whole. In practice, we are referring to the behaviour of individuals, or sections or groups of people, within the organisation. For example, when we talk about a ‘caring organisation’, we are really talking about the philosophy, attitudes and actions of top managers and/or departmental managers, or possibly an individual manager. Nevertheless, the wording ‘organisational behaviour’ has become widely accepted and is found increasingly in textbooks and literature on the subject. The term ‘organisational behaviour’ is a convenient form of shorthand to refer to the large number of interrelated influences on, and patterns of, behaviour of people within organisations.5 A framework The behaviour of people, however, cannot be studied in isolation. It is necessary to of study understand interrelationships with other variables which together comprise the total organisation. To do this involves consideration of interactions among the formal struc- ture, the tasks to be undertaken, the technology employed and methods of carrying out work, the process of management and the external environment.
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 27 Figure 2.1 Organisational behaviour: a convenient framework of analysis The study of organisational behaviour embraces therefore an understanding of: ■ the behaviour of people; ■ the process of management; ■ the organisational context in which the process of management takes place; ■ organisational processes and the execution of work; and ■ interactions with the external environment of which the organisation is part. This provides us with a basic, but convenient, framework of analysis. (See Figure 2.1.) Wilson, however suggests that the meaning of the term organisational behaviour is far from clear. She challenges what constitutes organisational behaviour and questions whether we should be interested only in behaviour that happens within organisations. There is a reciprocal relationship in what happens within and outside organisations. Wilson suggests that we also look outside of what are normally thought of as organisa- tions and how we usually think of work. We can also gain insight into organisational life and organisational behaviour by looking at what happens in rest and play; by con- sideration of emotion and feeling; by the context in which work is defined as men’s or women’s work; and by looking at less organised work, for example work on the fiddle and the meaning of work for the unemployed.6 These suggestions by Wilson arguably add an extra dimension to the meaning and understanding of organisational behaviour. INFLUENCES ON BEHAVIOUR IN ORGANISATIONS The variables outlined above provide parameters within which a number of inter- related dimensions can be identified – the individual, the group, the organisation and the environment – which collectively influence behaviour in work organisations.The individual Organisations are made up of their individual members. The individual is a central fea- ture of organisational behaviour and a necessary part of any behavioural situation, whether acting in isolation or as part of a group, in response to expectations of the organisation, or as a result of the influences of the external environment. Where the needs of the individual and the demands of the organisation are incompatible, this can
28 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR result in frustration and conflict. It is the task of management to integrate the individ- ual and the organisation, and to provide a working environment which permits the satisfaction of individual needs as well as the attainment of organisational goals. The group Groups exist in all organisations and are essential to their working and performance. The organisation comprises groups of people and almost everyone in an organisation will be a member of one or more groups. Informal groups arise from the social needs of people within the organisation. People in groups influence each other in many ways, and groups may develop their own hierarchies and leaders. Group pressures can have a major influence over the behaviour and performance of individual members. An understanding of group structure and behaviour complements a knowledge of individ- ual behaviour and adds a further dimension to organisational behaviour. The Individuals and groups interact within the structure of the formal organisation. Structure organisation is created by management to establish relationships between individuals and groups, to provide order and systems and to direct the efforts of the organisation into goal-seeking activities. It is through the formal structure that people carry out their organisational activities in order to achieve aims and objectives. Behaviour is affected by patterns of organisation structure, technology, styles of leadership and systems of management through which organisational processes are planned, directed and controlled. The focus of attention, therefore, is on the impact of organisation structure and design, and pat- terns of management, on the behaviour of people within the organisation. For example, McPhee refers to the growth in the nature and importance of organisational structures and their essence, and for greater emphasis on business-to-business (B2B) depth or group interviewing as part of an insight into business and organisational behaviour.7 The The organisation functions as part of the broader external environment of which it is a environment part. The environment affects the organisation through, for example, technological and scientific development, economic activity, social and cultural influences and governmental actions. The effects of the operation of the organisation within its environment are reflected in terms of the management of opportunities and risks and the successful achievement of its aims and objectives. The increasing rate of change in environmental factors has highlighted the need to study the total organisation and the processes by which the organisation attempts to adapt to the external demands placed upon it. Increasing globalisation means that organisations must respond to different market demands and local requirements. ‘In globalization, strategy and organization are inextricably twined.’8 Globalisation impacts on organisational behaviour, and has placed greater emphasis on processes within organisations rather than functions of the organisation. Contrasting but related approaches These different dimensions provide contrasting but related approaches to the under- standing of human behaviour in organisations. They present a number of alternative pathways for the study of the subject and level of analysis. It is possible, for example, to adopt a psychological approach with the main emphasis on the individuals of which the organisation is comprised. Psychological aspects are important but, by themselves, provide too narrow an approach for the understanding of management and organisational behaviour. Our main concern is not with the complex detail of individual differences and attributes per se but with the behaviour and management of people within an organisational setting. It is also possible to adopt a sociological approach concerned with a broader emphasis on human behaviour in society. Sociological aspects can be important. A number of sociology writers seem set on the purpose of criticising traditional views of
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 29 organisation and management. Many of the criticisms and limitations to which such writers refer are justified and help promote healthy academic debate. Unfortunately, however, much of the argument tends to be presented in the abstract and is lacking in constructive ideas on how, in practical terms, action can be taken to improve organisa- tional performance. BEHAVIOURAL SCIENCE – A MULTIDISCIPLINARY APPROACH Whatever the approach, the study of organisational behaviour cannot be undertaken entirely in terms of a single discipline. It is necessary to provide a multidisciplinary, behavioural science approach (see Figure 2.2). The wording ‘behavioural science’ has no strict scientific definition. It may be used as a collective term for the grouping of all the social sciences concerned with the study of people’s behaviour. However, it is now more frequently used to refer to attempts to apply a selective, multidisciplinary approach to the study of human behaviour. In par- ticular, the term is often taken as applying more narrowly and specifically to problems of organisation and management in the work environment.Three main There are areas of overlap among the various social sciences, their sub-divisions anddisciplines related disciplines such as economics and political science. However, the study of behaviour can be viewed in terms of three main disciplines – psychology, sociology and anthropology. All three disciplines have made an important contribution to the field of organisational behaviour. ■ Psychologists are concerned, broadly speaking, with the study of human behaviour, with traits of the individual and membership of small social groups. The main focus of attention is on the individual as a whole person, or what can be termed the ‘per- sonality system’, including, for example, perception, attitudes and motives. Figure 2.2 Behavioural science – a multidisciplinary approach
30 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR ■ Sociologists are more concerned with the study of social behaviour, relationships among social groups and societies, and the maintenance of order. The main focus of attention is on the analysis of social structures and positions in those structures – for example, the relationship between the behaviour of leaders and followers. ■ Anthropologists are more concerned with the science of mankind and the study of human behaviour as a whole. As far as organisational behaviour is concerned the main focus of attention is on the cultural system, the beliefs, customs, ideas and values within a group or society, and the comparison of behaviour among different cultures – for example, the importance to Muslim women of wearing trousers to work. People learn to depend on their culture to give them security and stability, and they can suffer adverse reactions to unfamiliar environments. The contribution of relevant aspects of psychology, sociology and anthropology aids our understanding of the behaviour of people in work organisations, and underpins the field of organisational behaviour. Behavioural science attempts to structure organisations in order to secure the optimum working environment. It is concerned with reconciling the needs of the organisation for the contribution of maximum productivity, with the needs of individuals and the realisation of their potential. Emphasis is on the application of rel- evant aspects of psychological and sociological theory and practice, and cultural influences, to problems of organisation and management in the work situation. In terms of the applications of behavioural science to the management of people, we need also to consider the relevance and applications of philosophy, ethics and the law. THE IMPORTANCE OF PEOPLE AND ORGANISATIONAL BEHAVIOUR However one looks at the nature or disciplines of organisational behaviour it is impor- tant to remember, as Morgan reminds us, that: ‘The reality of organizational life usually comprises numerous different realities!’ 9 Hellriegel, Slocum and Woodman suggest that: … one way to recognise why people behave as they do at work is to view an organisation as an iceberg. What sinks ships isn’t always what sailors can see, but what they can’t see.10 The overt, formal aspects focus only on the tip of the iceberg (organisation). It is just as important to focus on what you can’t see – the covert, behavioural aspects (see Figure 2.3). As part of the Financial Times Mastering Management series, Wood, in his discussion of the nature of organisational behaviour (OB), suggests that in its concern for the way people behave in an organisational context, organisational behaviour can be regarded as the key to the whole area of management. Is the study of behaviour in organisations important? I think it is vital. What the social sciences, humanities and the arts are to university education, OB is to business school education. The more technical a manager’s training, the more important organisational behaviour becomes. It is arguably the one area that can carry the burden of bringing the collective wisdom of human his- tory into the decision-making calculus of developing managers. And this is no trivial task.11 In the Foreword to Cloke and Goldsmith’s thought-provoking book, The End of Management, Bennis claims that a distinct and dramatic change is taking place in the phi- losophy underlying organisational behaviour, calling forth a new concept of humanity. This new concept is based on expanded knowledge of our complex and shifting needs, replacing an oversimplified, innocent, push-button idea of humanity. This philosophical shift calls for a new concept of organizational depersonalized, mechanistic value system of bureaucracy. With it comes a new concept of power, based on collaboration and reason, replacing a model based on coercion and threat ... The real push for these changes stems from the need not only to humanize organizations, but to use them as crucibles for personal growth and self-realization.12
32 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR ORGANISATIONAL METAPHORS Organisations are complex social systems which can be defined and studied in a number of different ways. A significant approach to this broad perspective on the nature of organisations and organisational behaviour is provided by Morgan. Through the use of metaphors, Morgan identifies eight different ways of viewing organisations – as machines, organisms, brains, cultures, political systems, psychic prisons, flux and transformation, and instruments of domination. According to Morgan, these contrasting metaphors aid the understanding of the complex nature of organisational life and the critical evaluation of organisational phenomena.14 ■ Machines. This suggests that organisations can be designed as if they are machines with orderly relations between clearly defined parts. Viewing organisations as machines can provide the basis for efficient operation in a routine, reliable and pre- dictable way. This form of bureaucratic structure provides form, continuity and security. However, it may have adverse consequences and limit the development of human capacities. Organisations viewed as machines function better in a stable and protected environment. ■ Organisms. The organisation is seen as behaving like a living system. In the same way that biological mechanisms adapt to changes in their environment, so organ- isations, as open systems, adapt to the changing external environment. Organisations operating within a turbulent and dynamic environment require an adaptable type of structure. ■ Brains. Viewing organisations as brains involves thinking about the organisation as inventive and rational, and in a manner that provides for flexibility and creative action. The challenge is to create new forms of organisation capable of intelligent change and that can disperse brainlike capacities. ■ Cultures. This sees organisations as complex systems made up of their own charac- teristic sets of ideology, values, rituals, and systems of belief and practice. Attention to specific aspects of social development helps to account for variations among organisations. ■ Political systems. In the sense that ways must be found to create order and direct people, organisations are intrinsically political. They are about authority, power, superior–subordinate relationships and conflicting interests. Viewing organisations as political systems helps in an understanding of day-to-day organisational life, the wheeling and dealing, and pursuit of special interests. ■ Psychic prisons. This views organisations as psychic phenomena created and sus- tained by conscious and unconscious processes. Organisations and their members are constrained by their shadows or ‘psychic prisons’ and become trapped by con- structions of reality. Their inherited or created mythical past places affects the representation of the organisation to the outside world. Viewing organisations as psychic prisons provides an understanding of the reality and illusions of organisa- tional behaviour. ■ Flux and transformation. The universe is in a constant state of flux, embodying characteristics of both permanence and change. Organisations can be seen as in a state of flux and transformation. In order to understand the nature and social life of organisations, it is necessary to understand the sources and logic of transformation and change. ■ Instruments of domination. In this view organisations are associated with processes of social domination, and individuals and groups imposing their will on others. A feature of organisations is asymmetrical power relations that result in the pursuit of the goals of the few through the efforts of the many. Organisations are best understood in terms of variations in the mode of social domination and control of their members.
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 33 A broader view of organisational behaviour Although the main concern of this book is with a managerial approach to organisational behaviour, these contrasting metaphors provide an interesting perspective on how to view organisations. They provide a broader view of the dynamics of organisational behaviour, and how to manage and design organisations. However, Morgan points out that these metaphors are not fixed categories and are not mutually exclusive. An organi- sation can be a mix of each, and predominantly a combination of two or three metaphors. Furthermore, these combinations may change over a period of time. A number of writers involve the use of metaphors to help describe organisations. For example, in discussing the role and logic of viewing the organisation in terms of metaphors, Drummond raises questions such as what an organisation is like, and the power of metaphors in shaping our thinking; but also points out that all metaphors are partial and no metaphor can explain fully a particular phenomenon.15 ORIENTATIONS TO WORK AND THE WORK ETHIC People differ in the manner and extent of their involvement with, and concern for, work. From information collected about the work situation, organisational participa- tion and involvement with work colleagues, and life outside the organisation, Goldthorpe et al. identified three main types of orientation to work: instrumental, bureaucratic and solidaristic.16 ■ Individuals with an instrumental orientation defined work not as a central life issue but in terms of a means to an end. There is a calculative or economic involvement with work, and a clear distinction between work-related and non-work-related activities. ■ Individuals with a bureaucratic orientation defined work as a central life issue. There is a sense of obligation to the work of the organisation and a positive involvement in terms of a career structure. There is a close link between work-related and non-work- related activities. ■ Individuals with a solidaristic orientation defined the work situation in terms of group activities. There is an ego involvement with work groups rather than with the organ- isation itself. Work is more than just a means to an end. Non-work activities are linked to work relationships.Different work Some people may well have a set motivation to work, whatever the nature of the worksituation environment. However, different work situations may also influence the individual’s orientation to work. For example, the lack of opportunities for teamwork and the satis- faction of social expectations may result in an instrumental orientation to work, and a primary concern for economic interests such as pay and security. In other situations where there are greater opportunities to satisfy social needs, membership of work groups may be very important, and individuals may have a more solidaristic orienta- tion to work. According to Herman, the work ethic has been deeply challenged by two trends – the division of labour and the destruction of continuity in employment. Work has been fractured in task and sub-divided into specialised subtasks or branches into new kinds of work all together. The division of labour has now generated tens of thousands of dis- crete functions in the workplace. A more recent trend is the destruction of continuity in employment with many employees likely to re-enter the job market multiple times. This discourages the development of bonds of loyalty or employees investing them- selves in their work with the hope of long-term employment.17 Knights and Willmott contend that most management textbooks do not make the con- nection between managing and everyday life. By drawing on a number of contemporary
34 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR novels they attempt to ‘bring to life’ what they see as the reality of managing and organ- ising, and dimensions of human experience at work and elsewhere. They explore, in an interesting way, the changing meaning of work and orientations to it, and how different kinds of work are meaningful to some people and not to others.18 Cultural influences National culture is also a significant influence on orientations to work. For example, Reeves comments on the importance of conversation for effective organisational rela- tionships but how this is resisted in the British work culture. The Protestant version of the work ethic prevails, implying heads-down work, focused agendas, punctuality, efficiency. In French and Spanish offices, it takes the first hour to kiss everyone, the second to discuss local gossip and the third to pop out for a coffee and croissant. In Britain, these activities would count as sexual harassment, time-wasting and absenteeism. Many firms have built cafés or break out areas and then discovered people are too scared to use them for fear of looking work-shy.19 As another example, the author experienced for himself how in parts of Australia work- related activities could often be undertaken comfortably in local coffee houses without concern about being seen as away from the place of work. Cartwright comments on the psychological process of culture that has the power and authority not only to determine lifestyle but also to form individual personality traits, behaviours and attitudes. It is the cultural environment that motivates people to do their best and to give of their best, often irrespective of or even in spite of their working or living environment. In this respect we make a clear distinction between social conditions and the cultural environment. In the same way that a first-class system does not guarantee first-class results, good living and working conditions do not, in themselves, guarantee high morale and motivation. People in the best working and living conditions can still have low morale and motivation without the benefit of a supportive culture.20 Work/life Popular newspaper articles often suggest that work is still a large component of what balance gives meaning to people’s lives, and give examples of lottery or pools winners staying in work and often in their same old job. Other surveys and reports continue to suggest that the workplace is no longer a central feature of social activity. For a majority of people the main reason for work remains the need for money to fulfil the necessities of life. However, much still appears to depend on the extent of an individual’s social con- tacts and activities outside of the work situation. From a survey conducted among subscribers to Management Today, the majority of Britain’s managers are engaged in a perpetual juggling act with the work/life balance, and in meeting both personal and work commitments. For many of those surveyed, however, work remains a huge source of satisfaction.21 The work/life balance is dis- cussed more fully in Chapter 18. MANAGEMENT AS AN INTEGRATING ACTIVITY Whatever the individual’s orientations to work, it is through the process of management that the efforts of members of the organisation are co-ordinated, directed and guided towards the achievement of organisational goals. Management is an integral part of, and fundamental to, the successful operations of the organisation. Management is therefore the cornerstone of organisational effectiveness, and is concerned with arrangements for the carrying out of organisational processes and the execution of work (see Figure 2.4). There are many aspects to management in work organisations, but the one essential ingredient of any successful manager is the ability to handle people effectively. The man-
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 35Figure 2.4 Management as the cornerstone of organisational effectiveness ager needs to be conversant with social and human skills, and have the ability to work with and through other people. Without people there can be no organisation and no meaningful activity. Behind every action or document in an organisation there are people.Patterns of It is the responsibility of management to manage. But organisations can only achievehuman their aims and objectives through the co-ordinated efforts of their members. Thisbehaviour involves the effective management of human resources. However, it is important always to remember that it is people who are being managed and people should be considered in human terms. Unlike physical resources, people are not owned by the organisation. People bring their own perceptions, feelings and attitudes towards the organisation, systems and styles of management, their duties and responsibilities, and the conditions under which they are working. At the heart of successful management is the problem of integrating the individual and the organisation, and this requires an understanding of both human personality and formal organisations.22 The fact is that management ultimately depends on an understanding of human nature. I suggest it goes much further than that. In the first place, good management depends on the acceptance of certain basic values. It cannot be achieved without honesty and integrity, or without consideration for the interests of others. Secondly, it is the understanding of human foibles that we all share, such as jealousy, envy, status, prejudice, perception, tem- perament, motivation and talent, which provides the greatest challenge to managers. HRH The Duke of Edinburgh, Institute of Management Patron23
36 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Human behaviour is capricious, and scientific methods or principles of behaviour cannot be applied with reliability. For example, in his study of job satisfaction, Bassett comments that: There seem to be no universal generalizations about worker dissatisfaction that permit easy management policy solutions to absenteeism and turnover problems … There are almost never any exact conditions of cause and effect in the realm of human behaviour.24 It is also widely observed that you cannot study the behaviour of people without changing it. Patterns of behaviour are influenced by a complex combination of in- dividual, social and cultural factors. Tensions, conflicts and politics are almost inevitable, as are informal structures of organisation and unofficial working methods. We need to remind ourselves of the human aspects of the organisation and the idio- syncratic behaviour of individuals. For example, Egan refers to the importance of the shadow side of the organisation: that is, those things not found on organisation charts or in company manuals – the covert, and often undiscussed, activities of people which affect both the productivity and quality of working life of an organisation.25 The people–organisation relationship In the belief of the author, the majority of people come to work with the original atti- tude of being eager to do a good job, and desirous of performing well and to the best of their abilities. People generally respond in the manner in which they are treated. Where actual performance fails to match the ideal this is largely a result of how staff perceive they are treated by management and the management function. Many problems in the people–organisation relationship arise not so much from what management does, but the manner in which it is done. Often, it is not so much the intent but the manner of implementation that is the root cause of staff unrest and dissatis- faction. For example, staff may agree on the need to introduce new technology to retain the competitive efficiency of the organisation, but feel resentment about the lack of pre-plan- ning, consultation, retraining programmes, participation in agreeing new working practices and wage rates, and similar considerations arising from the manner of its introduction. Therefore, a heavy responsibility is placed on managers and the activity of manage- ment – on the processes, systems and styles of management. Accordingly, how managers exercise the responsibility for, and duties of, management is important. Attention must be given to the work environment, and appropriate systems of motiva- tion, job satisfaction and rewards. It is important to remember that improvement in organisational performance will only come about through people.26 Providing the Management should, therefore, endeavour to create the right balance between the right balance interrelated elements which make up the total organisation, and to weld these into coherent patterns of activity best suited to the external environment in which the organisation is operating. Consideration must be given to developing an organisational climate in which people work willingly and effectively. People and organisations need each other. Attention should be focused, therefore, on improving the people–organisation relationship. Management is an integral part of this relationship. It should serve to reconcile the needs of people at work with the requirements of the organisation. Management is essentially an integrating activity which permeates every facet of the operations of the organisation. The style of man- agement adopted can be seen as a function of the manager’s attitudes towards people, and assumptions about human nature and behaviour (discussed in Chapter 7). The general movement towards flatter organisation structures, flexible working and greater employee involvement has placed increasing emphasis on an integrating rather than a hierarchical/controlling style of management. Management processes in the new millennium will be much more behavioural in nature, focus- ing on the key human resource-driven issues: learning, team-based visions, driving human resource processes, incentives to enhance growth, holistic budgeting, and proactive controls.27
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 37 THE PSYCHOLOGICAL CONTRACT One significant aspect of organisational behaviour and the relationship between the individual and the organisation is the concept of the psychological contract. This is not a written document, but implies a series of mutual expectations and satisfaction of needs arising from the people–organisation relationship. It involves a process of giving and receiving by the individual and by the organisation. The psychological contract covers a range of expectations of rights and privileges, duties and obligations, which do not form part of a formal agreement but still have an important influence on people’s behaviour.28 The nature and extent of individuals’ expectations vary widely as do the ability and willingness of the organisation to meet them. It is difficult to list the range of implicit expectations that individuals have and they change over time. These expectations are notwithstanding any statutory requirements placed upon the organisation; instead they relate more to the idea of a social responsibility of management, discussed in Chapter 5. The organisation will also have implicit expectations of its members. The organisational side of the psychological contract places emphasis on expectations, requirements and constraints that may differ from, and may conflict with, an individ- ual’s expectations. Some possible examples of the individual’s and the organisation’s expectations are given in Figure 2.5.Process of It is unlikely that all expectations of the individual or of the organisation will be metbalancing fully. There is a continual process of balancing, and explicit and implicit bargaining. The nature of these expectations is not defined formally, and although the individual member and the organisation may not be aware consciously of them, they still affect relationships between them and have an influence on behaviour. The psychological contract is a useful concept in examining the socialisation of new members of staff to the organisation. According to Kotter, for example, early experiences have a major effect on an individual’s subsequent career in an organisation, and influence job satisfaction, attitude and level of productivity. The extent of the matches between indi- vidual and organisational expectations also influences the willingness of people to stay with the organisation and of the organisation to continue to employ them.29 Stalker suggests that successful companies are those that have the ability to balance the unwritten needs of their employees with the needs of the company. Such companies use a simple formula of Caring, Communicating, Listening, Knowing and Rewarding. ■ Caring – demonstrating genuine concern for individuals working in the organisation. ■ Communicating – really talking about what the company is hoping to achieve. ■ Listening – hearing not only the words but also what lies behind the words. ■ Knowing – the individuals who work for you, their families, personal wishes, desires and ambitions. ■ Rewarding – money is not always necessary; a genuine thankyou or public recogni- tion can raise morale.30 The significance of the psychological contract depends on the extent to which it is per- ceived as fair by both the individual and the organisation, and will be respected by both sides. Cartwright, for example, refers to mutuality as the basic principle of the psy- chological contract. A psychological contract is not only measured in monetary value or in the exchange of goods or services, it is in essence the exchange or sharing of beliefs and values, expectations and satisfac- tions. Mutuality is the basic principle of the psychological contract and consensus or mutual understanding is the basis of mutuality. Ideally therefore self-interest should be balanced with common interest in a ‘win–win’ arrangement.31
38 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR INDIVIDUALS’ EXPECTATIONS OF THE ORGANISATION • 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 work; • adopt equitable human resource management policies and procedures; • respect the role of trade union officials and staff representives; • consult fully with staff and allow genuine participation in decisions which affect them; • implement best practice in equal opportunity policies and procedures; • reward all staff fairly according to their contribution and performance; • provide reasonable opportunities for personal development and career progression; • treat members of staff with respect; • demonstrate an understanding and considerate attitude towards personal problems of staff. ORGANISATIONAL EXPECTATIONS OF THE INDIVIDUAL • uphold the ideology of the organisation and the corporate image; • work diligently in pursuit of organisational objectives; • adhere to the rules, policies and procedures of the organisation; • respect the reasonable authority of senior members of staff; • not take advantage of goodwill shown by management; • be responsive to leadership influence; • demonstrate loyalty and not betray positions of trust; • maintain harmonious relationships with work colleagues; • not abuse organisational facilities such as email or Internet access; • observe reasonable and acceptable standards of dress and appearance; • show respect and consolidation to customers and suppliers. Figure 2.5 The psychological contract: possible examples of individual and organisational expectations The nature of the boss–subordinate relationship is clearly a central feature of the psy- chological contract. Emmott, for example, points out that good people-management practices are the basis for a positive psychological contract and this means managers having to deal with the ‘soft stuff’. Properly managed the psychological contract deliv- ers hard, bottom-line results and improved business performance. Managers at all levels can have an influence on employees’ perceptions of the psychological con- tract. It is, however, the relationship between individual employees and their line manager that is likely to have most influence in framing and managing employees’ expectations.32
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 39 CHANGING NATURE OF THE PSYCHOLOGICAL CONTRACT The changing nature of organisations has placed an increasing emphasis on the im- portance of effective human resource management, including the importance of the psychological contract within the employment relationship. For example, from a review of research, McBain maintains that human resource management plays a key role in ensuring the promotion of business success and managing change. This involves paying attention to the psychological contract and the establishment of expectations and obligations with all groups of employees within the organisation.33 The Institute of Administrative Management has introduced a new module on ‘The Individual and the Organisation in Context’ which has come about because of the need to keep abreast of changes affecting the individual at work. There is a need for managers to be aware of the new psychological contracts the individual mem- bers of their teams are bringing to work. Managers will have to consider alternative management styles to meet this new need and to use new skills to motivate and train their staff. People no longer come to work to be ‘told what to do’, but are aspiring to be part of the whole, with a real role as stakeholders in the success of ‘their’ organisation. Wise managers will harness this com- mitment for the benefit of everyone concerned.34 Hiltrop suggests that the increasing pressure for organisations to change has prompted growing disillusionment with the traditional psychological contract based on lifetime employment and steady promotion from within. Companies must develop new ways to increase the loyalty and commitment of employees. This includes attention to reward strategies based on recognition of contribution rather than status or position; systematic training and development including the skills for working in cross-functional teams; and the training of managers in counselling, coaching and leadership skills.35Performance Stiles et al. also draw attention to how new competitive conditions and dynamic environ-management ments have brought performance management to centre stage as a major element in the changing nature of the psychological contract. From an examination of three large UK organisations, the authors explore ‘how performance management processes are being used to support moves from the traditional contract of job security and clear career paths, while attempting to maintain commitment and morale’. The authors conclude that there are two main areas of difficulty in changing the psychological contract so that it focuses on performance management. The presence of mixed messages from employers is undermining the employment relationship and changes are being driven in a top- down manner with a lack of consultation. There is also disenchantment and concern about the accuracy and fairness of performance management processes, with employees expressing scepticism towards managerial attempts to implement change.36 A new moral contract The changing nature of organisations and individuals at work has placed increasing pressures on the awareness and importance of new psychological contracts. Ghosal et al. suggest that in a changing social context the law of masters and servants that underlies the old psychological contract is no longer acceptable to many people. Forces of global competition and turbulent change make employment guarantees unfeasible and also enhance the need for levels of trust and teamwork. The new management phi- losophy needs to be grounded in a very different moral contract with people. Rather than seeing people as a corporate asset from which value can be appropriated, people are seen as a responsibility and a resource to be added to. The new moral contract also demands much from employees who need to abandon the stability of lifetime employ- ment and embrace the concept of continuous learning and personal development.37
40 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR ORGANISATIONAL PRACTICES It is convenient, here, to consider two sets of observations on the nature of human behaviour and what may actually happen, in practice, in organisations: the Peter Principle, and Parkinson’s Law. Although these observations are presented in a satiri- cal manner, they nevertheless make a serious and significant point about the management and functioning of organisations, and the actual nature and practice of organisational behaviour. THE PETER PRINCIPLE This is concerned with the study of occupational incompetence and the study of hier- archies. The analysis of hundreds of cases of occupational incompetence led to the formulation of the ‘Peter Principle’, which is: In a hierarchy every employee tends to rise to their level of incompetence.38 Employees competent in their position are promoted and competence in each new posi- tion qualifies for promotion to the next highest position until a position of incompetence is reached. The principle is based on perceived incompetence at all levels of every hierar- chy – political, legal, educational and industrial – and ways in which employees move upwards through a hierarchy, and what happens to them after promotion. Among the many examples quoted by Peter are those from the teaching occupation. A is a competent and conforming college student who becomes a teacher following the textbook, curriculum guide and timetable schedule, and who works well except when there is no rule or precedent available. A never breaks a rule or disobeys an order but will not gain promotion because, although competent as a student, A has reached a level of incompetence as a classroom teacher. B, a competent student and inspiring teacher, although not good with paperwork, is promoted to head of the science department because of success as a teacher. The head of science is responsible for ordering all science supplies and keeping extensive records and B’s incompetence becomes evident. C, a competent student, teacher and head of department, is promoted to assistant principal, and being intellectually competent is further promoted to principal. C is now required to work directly with higher officials. By working so hard at running the school, however, C misses important meetings with superiors and has no energy to become involved with community organisations. C thus becomes regarded as an incompetent principal. Means of Peter suggests two main means by which a person can affect promotion rate, ‘Pull’ and promotion ‘Push’. ■ Pull is an employee’s relationship – by blood, marriage or acquaintance – with a person above the employee in the hierarchy. ■ Push is sometimes manifested by an abnormal interest in study, vocational training and self-improvement. In small hierarchies, Push may have a marginal effect in accelerating promotion; in larger hierarchies the effect is minimal. Pull is, therefore, likely to be more effective than Push. Never stand when you can sit; never walk when you can ride; never Push when you can Pull.39
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 41 PARKINSON’S LAW A major feature of Parkinson’s Law is that of the ‘Rising Pyramid’, that is, ‘Work expands so as to fill the time available for its completion.’40 General recognition of this is illus- trated in the proverb, ‘It is the busiest person who has time to spare.’ There is little, if any, relationship between the quantity of work to be done and the number of the staff doing it. Underlying this general tendency are two almost axiomatic statements: ■ An official wants to multiply subordinates, not rivals. ■ Officials make work for each other. Parkinson goes on to give the following example. If a civil servant, A, believes he is over- worked there are three possible remedies: (i) resignation; (ii) ask to halve the work by having it shared with a colleague, B; or (iii) seek the assistance of two subordinates, C and D. The first two options are unlikely. Resignation would involve loss of pension rights, and sharing work with a colleague on the same level would only bring in a rival for pro- motion. So A would prefer the appointment of two junior members of staff, C and D. This would increase A’s status. There must be at least two subordinates, so that by divid- ing work between C and D, A will be the only person to understand the work of them both. Furthermore, each subordinate is kept in order by fear of the other’s promotion. When, in turn, C complains of overwork, A, with the agreement of C, will advise the appointment of two assistants, E and F. However, as D’s position is much the same and to avoid internal friction, two assistants, G and H, will also be recommended to help D. There are now seven people, A, C, D, E, F, G, H, doing what one person did before, and the promotion of A is almost certain.People making With the seven people now employed, the second stage comes into operation. Thework for each seven people make so much work for each other that they are all fully occupied and Aother is actually working harder than ever. For example, an incoming document comes before each of them in turn. E decides it is F’s concern; F places a draft reply for C, who makes drastic amendments before consulting with D, who asks G to action it. But then G goes on leave and hands the file to H, who drafts a minute signed by D and returned to C, who revises the first draft and puts the new version before A. What does A do? A could find many excuses for signing C’s draft unread. However, being a conscientious person, and although beset with problems created by subordinates both for A and for themselves, A reads through the draft carefully, deletes the fussy paragraphs added by C and H, and restores it to the format presented in the first instance by F. Among other features of organisational practice that Parkinson discusses are: princi- ples of personnel selection; the nature of committees; personality screen; high finance – and the ‘Law of Triviality’, which means in a committee that the time spent on any agenda item will be in inverse proportion to the sum involved; layout of the organisa- tion’s administration block; and ‘injelitis’ – the disease of induced inferiority.Relevance of Despite the light vein of Parkinson’s writing, the relevance of his observations can beobservations gauged from comments in the Introduction by HRH The Duke of Edinburgh. The most important point about this book for serious students of management and administra- tion is that it illustrates the gulf that exists between the rational/intellectual approach to human organization and the frequent irrational facts of human nature … The law should be compulsory reading at all business schools and for all management consultants. Management structures solve nothing if they do not take the facts of human nature into proper consideration, and one of the most important facts is that no one really likes having to make decisions. Consequently struc- tures may generate a lot of activity but little or no useful work.41
42 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR I first read Parkinson’s Law when studying for Economics A-level. Many of the laws are just as relevant today as they were then. They include: how to ‘manage’ a meeting, and how time spent in meetings is inversely proportional to the importance of each issue – his example is a short discussion on a £10 million power plant followed by a lengthy debate over a £350 bi- cycle shed. Ever been there? … Parkinson’s most famous law is that ‘work expands to fill the time available – as we all make work for one another’. This is still true today. Iain Herbertson, Managing Director of Manpower42 THE NEED FOR A CROSS-CULTURAL APPROACH The international context of management and organisational behaviour One major challenge facing managers in the early 21st century arises from what many commentators have identified as an increasingly international or global business envi- ronment. The following factors are frequently cited as potential explanatory factors underlying this trend: ■ Improvements in international communication facilities leading to an increased consciousness of differences in workplace attitudes and behaviour in other societies. ■ International competitive pressure – for example, the emergence of newly industri- alised and/or free-market nations (the Far East region and ex-communist bloc countries are often viewed as examples of this phenomenon). ■ The spread of production methods and other business processes across nations and regions. ■ International business activity, for example: overseas franchising or licensing agree- ments; outsourcing of business units to other countries (call centres provide a topical example); direct foreign investment and the activities of multinational corporations which, by definition, operate outside national boundaries. It is not only businesses which choose to operate in more than one country or import foreign business and management techniques that are affected by cross-cultural concerns. Tayeb reported United States Department Photo: European Parliament of Labor statistics indicating that in the period from 1985 to 2000, only 15 per cent of new entrants to the workforce in the USA were white males.43 This highlights the importance of managing diversity The European Parliament building in Strasbourg, France in workforces within national boundaries. Lessons from abroad? One rationale for taking a cross-cultural approach to management lies in the potential benefits to be gained in performance terms. Schneider and Barsoux, in advocating cultural awareness of one’s own society, note that: each country has its unique institutional and cultural characteristics, which can provide sources of competitive advantage at one point, only to become liabilities when the environment changes. Managers therefore need to evaluate the extent to which national culture can interfere with their company’s efforts to respond to strategic requirements, now and in the future’.44
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 43 In addition to practically based benefits in considering our own ‘home’ culture, there has been a long tradition of looking to other cultures for examples of ‘successful’ prac- tice which could be transplanted into work organisations in different societies. Different models may be dominant at different times. Thompson and McHugh note that: ‘In the post-war period the giant US corporations transferred work organisation and managerial techniques across capitalist countries.’45 However, in subsequent eras Scandinavian autonomous work group arrangements and Japanese management tech- niques were examined by and, to some extent, implemented in, organisations across the world. Such a search for good practice in other countries is, of course, ongoing and an awareness of how other cultures organise work and manage people is likely to be of continuing benefit in the future. Managing people from different cultures Another advantage of adopting a cross-cultural approach to the study of organisational behaviour, and to the management of people more generally, lies in the recognition of variations in workplace attitudes and behaviour between individuals and groups in dif- ferent cultural contexts. Brooks notes that: ‘Differences in national culture may have a bearing on how organisations deal with each other and also on behaviour within organisations which comprise a mix of nationalities.’46 If we accept this fundamental point then it follows that key topics within the subject area of organisational behav- iour may be influenced by national culture and that we should therefore re-evaluate models and concepts when applying them to other societies. One leading writer in the field of cross-cultural studies, Trompenaars, commenting on his own work, suggests that: ‘it helped managers to structure their experiences and provided new insights for them and their organisations into the real source of prob- lems faced when managing across cultures or dealing with diversity’.47 In examining the centrally important topic of motivation, Francesco and Gold inform their readers that: ‘managers must develop organizational systems that are flexible enough to take into account the meaning of work and the relative value of rewards within the range of cultures where they operate.’48 A practical example of the impact of cultural diversity in the organisational behav- iour area is provided in the recollections of an International Human Resource Manager cited in Schneider and Barsoux: ‘Indonesians manage their culture by a group process, and everyone is linked together as a team. Distributing money differently among the team did not go over all that well; so we’ve come to the conclusion that pay for per- formance is not suitable for Indonesia.’49 It may be extremely useful therefore to examine academic frameworks and research findings within the field of organisational behaviour to indicate the extent to which they are applicable worldwide or, alterna- tively, subject to meaningful variation in different cultural contexts.IS ORGANISATIONAL BEHAVIOUR CULTURE-BOUND? While it can be valuable to apply organisational behaviour concepts to diverse cultural settings it should also be borne in mind that some universal theories and models may, in reality, contain important culturally-derived assumptions. When examining classical frameworks for understanding organisation structure Schneider and Barsoux point out that: ‘theories about how best to organise – Max Weber’s (German) bureaucracy, Henri Fayol’s (French) administrative model, and Frederick Taylor’s (American) scientific management – all reflect societal concerns of the times as well as the cultural back- ground of the individuals.’50 That writers on work organisations may themselves be influenced by their own cultural backgrounds when compiling their work is unsurpris- ing: however, it should equally not be ignored.
44 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR More significant still is the possibility that whole topics within organisational behaviour, per se, may be underpinned by a particular culturally-derived frame of refer- ence. Francesco and Gold, addressing the issue of leadership, claim that: ‘one difficulty is that not all cultures have the term leader’.51 This raises the possibility that meanings we may assume to be taken for granted could be interpreted differently or not even perceived at all in different parts of the world. Culture as understanding ‘For our most basic common link is that we all inhabit this small planet, we all breathe the same air, we all cherish our children’s future, and we are all mortal’ (John. F. Kennedy, 10 June 1963). There are a number of very good reasons why we could usefully understand cultural difference (and similarity) at work, based on new awareness contributing to our own effectiveness and moreover to the accomplishment of organisational goals. It could also be true to say that an appreciation of culture and its effects may be of intrinsic value. There could therefore be advantages of cross-cultural awareness which include: ■ increased self-awareness; ■ sensitivity to difference; ■ questioning our own assumptions and knowledge; ■ lessening ignorance, prejudice and hatred. However, it would be wrong to think that increased cross-cultural awareness or activity will automatically bring about any of these outcomes. Adler listed the following inbuilt dangers when multi-cultural teams operate in a business setting. ■ Mistrust – including stereotyping. ■ Miscommunication with potential for reduced accuracy and resultant stress. ■ Process difficulties, that is failure to agree when agreement is needed or even what constitutes agreement when arriving at decisions. Adler goes on to examine research on the success of multi-cultural work teams and concludes that the evidence suggests that they either perform much better or much worse than teams composed of one cultural group.52 There are clearly risks as well as benefits in working across cultures. It is hoped that an appreciation of cross-cultural aspects of organisational behaviour can help in this regard. MODELS FOR UNDERSTANDING THE IMPACT OF CULTURE The study of Culture is a notoriously difficult concept to pin down. It is all too easy to assume that culture differences observed between societies may be attributed to culture per se, with little explanation of the reasons which may lie behind the differences, real or perceived. Robbins notes that: ‘Most people are unaware of just how their culture will affect them. Culture is like fish to water. It is there all the time but the fish are oblivious to it.’ 53 It is therefore necessary to be aware of one’s own culture in order to appreciate fully differ- ences between different groups. The Johari Window technique – see Chapter 14 – can be useful in identifying what may be known and not known regarding different cul- tures. Attempt to use this framework in respect of your own and one other culture to see its potential value. We should not assume that we are aware of all facets of our own culture or that others see us in a realistic and accurate way. Matched pair Some writers who have sought to conduct comparative research into workplace differ- comparisons ences have frequently used a matched pair method of comparison. This involves selecting organisations for study which are similar in size, product or service, technolo- gies employed and ownership pattern. It is claimed that any differences observed can
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 45 be isolated and subjected to further detailed analysis to ascertain whether they are culturally-derived. An example of this methodological tradition is the work of Maurice, Sorge and Warner which is considered in Chapter 16.54The danger of In Chapter 11 of this book we identify the concept of ‘selective perception’, that is the pos-stereotyping sibility of drawing inferences and conclusions from partial information. One example of this phenomenon is stereotyping which involves making judgements on an individual as a result of their membership of a group, which, we assume, itself contains shared character- istics. We clearly need to avoid stereotyping when approaching the subject of cultural differences at work. Writers such as Hofstede and Trompenaars, while identifying clusters of countries which they suggest may share particular features, nonetheless allow for diver- gence from the norm by referring to central tendencies. To take one example, Hong Kong is characterised by Hofstede as a low uncertainty avoidance culture which suggests a propensity for risk-taking and a tolerance of rapid change. However, it is eminently possi- ble to conceive of an individual from Hong Kong who is ‘risk averse’ and conservative due to their own personality and upbringing.55 It is, finally, necessary to take a non-judgemen- tal approach when identifying cultural differences and academics in this area and crucially successful international managers tend to adopt an approach of ‘not better nor worse – just different’! Defining and conceptualising culture Culture is a multifaceted concept. Models purporting to explain this topic typically dis- tinguish between different layers or strata of culture. Trompenaars identifies three layers of culture; namely an outer, middle and core. Figure 2.6 depicts these layers as concentric circles. The outer circle identifies artifacts and products, the middle circle encompasses norms and values and the inner circle comprises basic assumptions held within the group.56 It may equally be useful to conceive of a three-layer model of culture comprising outer, middle and core layers. For our purposes an outer layer of culture refers to surface-level elements of culture which are quickly and easily understood on even a short visit to another country. Examples could include language, climate, dress and food and drink. The 1994 film Pulp Fiction provides an example in which a character in the film has recently returned to the USA after spending three years in Amsterdam. His description of the Netherlands is restricted to surface level anecdotes regarding fast Figure 2.6 A model of culture Source: Reproduced with permission from F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture, Second edition, Nicholas Brealey (1999), p. 22.
46 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR food and the comparative legality and availability of soft drugs. The viewer is invited to mock his failure to understand the greater subtleties of Dutch culture. Aspects of this outer layer can nonetheless be important to a successful cultural exchange in business. Giving a work colleague in the Czech Republic red flowers as a gift may be taken as expression of romantic interest while wearing a green hat in China may signify that one’s partner is unfaithful! A middle layer of culture is the one which will be of most relevance for us as it con- cerns expressed values, attitudes and behaviours. In terms of organisational behaviour, if we accept the evidence that indicates significant differences between cultures, we might anticipate that findings in the following topics should be re-examined to see whether they apply in different societies: Leadership, Perception, Motivation, Work Groups, Organisation Structure, Human Resource Management and Management Control and Power. The contribution of writers such as Hofstede, Trompenaars, and Hall and Hall57 may also provide useful frameworks for understanding topics within organisational behav- iour from a cross-cultural standpoint. A core layer of culture relates to the deepest assumptions concerning people and nature held by a particular society. Such assumptions, which may be vestigial, often relate to the topography of a society or the level of threat posed by natural disasters. For example, it has been claimed that the Netherlands as a small country bounded by larger neighbours has developed a pragmatic flexible approach to business as a result of its location, bolstered by its historic struggle to keep the sea at bay. In the UK the rela- tively high degree of scepticism towards greater European integration may, in part, be explained by its island status. So-called group mentalities exhibited by some Asian countries could be traced back to patterns of agrarian production exhibited in previous times. Somewhat more arcane and, by definition, difficult to unravel, these core layer assumptions could conceivably manifest themselves in modern day cross-border busi- ness dealings. In Figure 2.7 Tayeb shows with examples how culture can take effect at a number of levels; from the global through to the personal. Readers may wish to consider how sig- nificant cultural differences may occur at the regional and/or community levels in their own experience. Nonetheless studies of culture most usually take the country or nation state as the focus of attention.58 Example: wishing to suceed in life Global layer Behaviours Example: avoiding loss of face in National layer Attitudes Japanese culture Example: Bengali culture in West Regional layer Beliefs Bengal, India Example: helping neighbours in a mining Community layer Values community in Wales, UK Taken for granted Example: caring for wildlife Personal layer assumptions Figure 2.7 Major cultural layers Source: Reproduced with permission from M. Tayeb, International Management: Theories and Practice, Financial Times Prentice Hall (2003), p. 14, with permission from Pearson Education Ltd.
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 47 Figure 2.8 Factors affecting national culture Source: Reproduced with permission from Ian Brooks, Organisational Behaviour: Individuals, Groups and Organisation, Second edition, Financial Times Prentice Hall (2003), p. 266, with permission from Pearson Education Ltd. Brooks is one of several commentators who draw our attention to the interlinked nature of culture. Figure 2.8 illustrates the interplay between relevant factors affecting any one national culture.59 You may wish to consider how these factors have com- bined to shape your own ‘home’ culture and that of one other country with which you are familiar.FIVE DIMENSIONS OF CULTURE: THE CONTRIBUTION OF HOFSTEDE Geert Hofstede is one of the most significant contributors to the body of knowledge on culture and workplace difference. His work has largely resulted from a large-scale research programme involving employees from the IBM corporation, initially in 40 countries. In focusing on one organisation Hofstede felt that the results could be more clearly linked to national cultural difference. Arguing that culture is, in a memorable phrase, collective programming or software of the mind, Hofstede initially identi- fied four dimensions of culture; power distance, uncertainty avoidance, individualism and masculinity.60 (See Table 2.1.) ■ Power distance is essentially used to categorise levels of inequality in organisations, which Hofstede claims will depend upon management style, willingness of subordi- nates to disagree with superiors, and the educational level and status accruing to particular roles. Countries which displayed a high level of power distance included France, Spain, Hong Kong and Iran. Countries as diverse as Germany, Italy, Australia and the USA were characterised as low power distance societies. Britain also emerged as a low power distance society according to Hofstede’s work. ■ Uncertainty avoidance refers to the extent to which members of a society feel threatened by unusual situations. High uncertainty avoidance is said to be character- istic in France, Spain, Germany and many of the Latin American societies. Low-to-medium uncertainty avoidance was displayed in the Netherlands, the Scandinavian countries and Ireland. In this case Britain is said to be ‘low-to- medium’ together with the USA, Canada and Australia. ■ Individualism describes the relatively individualistic or collectivist ethic evident in that particular society. Thus, the USA, France and Spain display high individualism. This contrasts with Portugal, Hong Kong, India and Greece which are low individ- ualism societies. Britain here is depicted as a high individualism society. ■ Masculinity is the final category suggested by Hofstede. This refers to a continuum between ‘masculine’ characteristics, such as assertiveness and competi-
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 49 Countries which scored highly on Confucian work dynamism or long-term orientation exhibited a strong concern with time along a continuum and were therefore both past- and future-oriented, with a preoccupation with tradition but also a concern with the effect of actions and policies on future generations. Table 2.2 indicates the score of ten countries along this fifth dimension. Unsurprisingly China scores highest on the LT column followed by Japan. Note the significantly lower scores of the USA and Western European countries surveyed. Table 2.2 Cultural dimension scores for ten countries PD ID MA UA LT USA 40L 91H 62H 46L 29L Germany 35L 67H 66H 65M 31M Japan 54M 46M 95H 92H 80H France 68H 71H 43M 86H 30*L Netherlands 38L 80H 14L 53M 44M Hong Kong 68H 25L 57H 29L 96H Indonesia 78H 14L 46M 48L 25*L West Africa 77H 20L 46M 54M 16L Russia 95*H 50*M 40*L 90*H 10*L China 80*H 20*L 50*M 60*M 118H PD=Power Distance; ID=Individualism; MA=Masculinity; UA=Uncertainty Avoidance; LT=Long-Term Orientation. H=top third, M=medium third, L=bottom third (among 53 countries and regions for the first four dimensions; among 23 coun- tries for the fifth), *estimated Reprinted with permission from Hofstede, G., ‘Cultural Constraints in Management Theories’, Academy of Management Executive: The Thinking Manager’s Source, 7, 1993, p. 91. Evaluation of Hofstede’s work Extremely influential; the seminal work of Hofstede has been criticised from certain quarters. In common with other writers in this area there is a focus on the national rather than regional level. The variations within certain countries, for example Spain, can be more or less significant. Again in common with other contributors Hofstede’s classifications include medium categories which may be difficult to operationalise, accurate though they may be. Some may also find the masculinity/femininity dimen- sion unconvincing and itself stereotypical. Other writers have questioned whether Hofstede’s findings remain current. Holden summarises this view: ‘How many people have ever thought that many of Hofstede’s informants of three decades ago are now dead? Do their children and grandchildren really have the same values?’62 Ultimately, readers can assess the value of his work in the light of their own experiences and inter- pretations of the business world. Hofstede in his extensive research has attempted to locate the essence of work-related differences across the world and to relate these to preferred management styles.CULTURAL DIVERSITY: THE CONTRIBUTION OF TROMPENAARS Another significant contributor to this area of study is provided by Fons Trompenaars whose later work is co-authored with Charles Hampden-Turner.63 Trompenaars’s original research spanned 15 years, resulting in a database of 50,000 participants from 50 coun- tries. It was supported by cases and anecdotes from 900 cross-cultural training programmes. A questionnaire method comprised a significant part of the study which involved requiring participants to consider their underlying norms, values and
50 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR attitudes.The resultant framework identifies seven areas in which cultural differences may affect aspects of organisational behaviour. ■ Relationships and rules. Here societies may be more or less universal, in which case there is relative rigidity in respect of rule-based behaviour, or particular, in which case the importance of relationships may lead to flexibility in the interpretation of situations. ■ Societies may be more oriented to the individual or collective. The collective may take different forms: the corporation in Japan, the family in Italy or the Catholic Church in the Republic of Ireland. There may be implications here for such matters as individual responsibility or payment systems. ■ It may also be true that societies differ to the extent it is thought appropriate for members to show emotion in public. Neutral societies favour the ‘stiff upper lip’ while overt displays of feeling are more likely in emotional societies. Trompenaars cites a survey in which 80 employees in each of various societies were asked whether they would think it wrong to express upset openly at work. The numbers who thought it wrong were 80 in Japan, 75 in Germany, 71 in the UK, 55 in Hong Kong, 40 in the USA and 29 in Italy. ■ In diffuse cultures, the whole person would be involved in a business relationship and it would take time to build such relationships. In a specific culture, such as the USA, the basic relationship would be limited to the contractual. This distinction clearly has implications for those seeking to develop new international links. ■ Achievement-based societies value recent success or an overall record of accom- plishment. In contrast, in societies relying more on ascription, status could be bestowed on you through such factors as age, gender or educational record. ■ Trompenaars suggests that societies view time in different ways which may in turn influence business activities. The American dream is the French nightmare. Americans generally start from zero and what matters is their present performance and their plan to ‘make it’ in the future. This is ‘nouveau riche’ for the French, who prefer the ‘ancien pauvre’; they have an enormous sense of the past. ■ Finally it is suggested that there are differences with regard to attitudes to the envi- ronment. In western societies, individuals are typically masters of their fate. In other parts of the world, however, the world is more powerful than individuals. Trompenaars’ work is based on lengthy academic and field research. It is potentially useful in linking the dimensions of culture to aspects of organisational behaviour which are of direct relevance, particularly to people approaching a new culture for the first time. The high- and low-context cultures framework This framework for understanding cultural difference has been formulated by Ed Hall; his work is in part co-authored with Mildred Reed Hall.64 Hall conceptualises culture as comprising a series of ‘languages’, in particular: ■ Language of time ■ Language of space ■ Language of things ■ Language of friendships ■ Language of agreements In this model of culture Hall suggests that these ‘languages’, which resemble shared attitudes to the issues in question, are communicated in very different ways according to whether a society is classified as ‘high’ or ‘low’ context. The features of ‘high’ context societies, which incorporate Asian, African and Latin American countries, includes:
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 51 ■ a high proportion of information is ‘uncoded’ and internalised by the individual; ■ indirect communication styles … words are less important; ■ shared group understandings; ■ importance attached to the past and tradition; ■ ‘diffuse’ culture stressing importance of trust and personal relationships in business. ‘Low’ context societies, which include the USA, Australia, Britain and the Scandinavian countries, exhibit contrasting features including: ■ a high proportion of communication is ‘coded’ and expressed; ■ direct communication styles … words are paramount; ■ past context less important; ■ ‘specific’ culture stressing importance of rules and contracts. Other countries, for example France, Spain, Greece and several Middle Eastern societies, are classified as ‘medium’ context. To take one example as an illustration: American managers visiting China may find that a business transaction in that country will take more time than at home. They may find that it is difficult to interpret the true feelings of their Chinese host and may need to decode non-verbal communication and other signals. They may seek to negoti- ate a rules-based contract whereas their Chinese counterpart may lay greater stress upon building a mutually beneficial reciprocal relationship. There is scope for potential miscommunication between the two cultures and interesting differences in interper- sonal perception. Inasmuch as much of the management literature canon originates from the Anglo-American context, there is again considerable merit in adopting a cross-cultural perspective.SUMMARY: CONVERGENCE OR CULTURE-SPECIFIC ORGANISATIONALBEHAVIOUR There is evidence of a narrowing or even increasing elimination of cultural differences in business. Grint sees both positive and negative consequences of aspects of globalisation. While noting that: ‘at last we are approaching an era when what is common between people transcends that which is different; where we can choose our identity rather than have it thrust upon us by accident of birth’,65 the same author goes on to suggest that: ‘we are heading for global convergence where national, ethnic and local cultures and identities are swamped by the McDonaldization ... and/or Microsoftization of the world’.66 There is an undoubted narrowing of cultural differences in work organisations; and it may be the case that such narrowing may apply to individual and group behaviour at work. Thompson and McHugh note for example that: ‘Russia is now experiencing rampant individualism and uncertainty following the collapse of the old solidaristic norms’, thus implying convergence of work values.67 For the most part, however, it is argued here that growing similarity and harmonisa- tion relate more often to production, IT and quality systems which are more likely to converge due to best-practice comparisons and universal computer standards. Human Resource Management is, contrastingly, less likely to converge due to national institu- tional frameworks and culturally derived preferences. Recent significantly different responses to the need for greater workplace ‘flexibility’ in Britain and France illustrate this point. Above all, those aspects of organisational behaviour which focus on individ- ual differences, groups and managing people are the most clearly affected by culture and it is argued strongly here that it is and is likely to remain essential to take a cross- cultural approach to the subject.
52 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR CRITICAL REFLECTIONS In your understanding of behaviour and managing people at work – as in life more generally – it is worth remembering the ‘Bag of Gold’ syndrome. However hard you try or whatever you do there will always be some people you just cannot seem to please. Give them a bag of gold and they will complain that the bag is the wrong colour, or it is too heavy to carry, or why could you not give them a cheque instead! What are your own views? What happens within organizations affects what happens outside and vice versa. Organizational behaviour is seen chiefly as being about the particular ways that individual’s dispositions are expressed in an organizational setting and about the effects of this expression. While at work there is rest and play. What happens in rest and play, both inside and outside the organization, impacts on organizational life. We can also gain insight into organizational behaviour by looking at less organized work, like work ‘on the fiddle’, and what work means to the unemployed. Wilson, F. M. Organizational Behaviour: A Critical Introduction, Oxford University Press (1999), pp. 1–2. How would you explain the meaning and nature of organisational behaviour, and how it is influenced? ’The study of organisational behaviour is really an art which pretends that it is a science and pro- duces some spurious research findings to try to prove the point.’ Debate. SYNOPSIS ■ Organisations play a major and continuing role in the lives of us all, especially with the growth of large-scale business organisations. The decisions and actions of manage- ment in organisations have an increasing impact on individuals, other organisations and the community. It is important, therefore, to understand how organisations func- tion and the pervasive influences they exercise over the behaviour of people. It is also necessary to understand interrelationships with other variables which together comprise the total organisation. ■ The behaviour of people in work organisations can be viewed in terms of multi- related dimensions relating to the individual, the group, the organisation and the envi- ronment. The study of organisational behaviour cannot be understood fully in terms of a single discipline. It is necessary to provide a behavioural science approach drawing on selected aspects of the three main disciplines of psychology, sociology and anthro- pology together with related disciplines and influences. ■ Organisations are complex social systems which can be defined and studied in a number of different ways. One approach is to view organisations in terms of contrast- ing metaphors. Gauging the effectiveness or success of an organisation is not an easy task, however, although one central element is the importance of achieving productiv- ity through the effective management of people. People differ in the manner and extent of their involvement with, and concern for, work. Different situations influence the individual’s orientation to work and work ethic. A major concern for people today is balancing work and personal commitments.
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 53■ It is through the process of management that efforts of members of the organisationare co-ordinated, directed and guided towards the achievement of organisational objec-tives. Management is the cornerstone of organisational effectiveness. It is essentially anintegrating activity and concerned with arrangements for the carrying out of organisa-tional processes and the execution of work. How managers exercise the responsibilityfor, and duties of, management is important. Attention should be focused on improvingthe people–organisation relationship.■ One particular aspect of the relationship between the individual and the organisa-tion is the concept of the psychological contract. This is not a formal, writtendocument but implies a series of mutual expectations and satisfaction of needs arisingfrom the people–organisation relationship. There is a continual process of explicit andimplicit bargaining. The nature of expectations has an important influence on theemployment relationship and behaviour in work organisations. The changing natureof organisations and individuals at work has placed increasing pressures on the aware-ness and importance of a different moral contract with people.■ A major challenge facing managers today arises from an increasingly internationalor global business environment. This highlights the need for a cross-cultural approachto the study of organisational behaviour and the management of people. In an increas-ingly global context, managers need to recognise and understand the impact ofnational culture. However, culture is a multifaceted concept and notoriously difficultto pin down. But it has important repercussions for the effective management ofpeople, and the study and understanding of workplace behaviour. REVIEW AND DISCUSSION QUESTIONS1 Explain your understanding of (i) the nature of organisational behaviour and (ii) the meaning of behavioural science.2 Suggest main headings under which interrelated factors can be identified which influence behaviour in work organisations. For each of your headings give examples from your own organisation.3 Discuss how organisations may be viewed in terms of contrasting metaphors. Explain how you would apply these metaphors to an understanding of your own organisation.4 Discuss the role of management as an integrating activity. Give your own views on the responsibility of management and the manner in which you believe this responsibility should be exercised.5 Explain the nature of the people–organisation relationship. Why is it important to distinguish between the ‘intent’ and the ‘implementation’ of management decisions and actions?6 Explain what is meant by the ‘psychological contract’. List (i) the personal expectations you have of your own organisation and (ii) what you believe to be the expectations of the organisation. Discuss with supporting examples the changing nature of psychological con- tracts between the organisation and its members.7 Why is it increasingly important for managers to adopt an international approach? Discuss critically the likely longer-term impact of Britain’s membership of the European Union.8 Debate fully the importance of national culture to the study of management and organisa- tional behaviour. Where possible, give your own actual examples
54 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR ASSIGNMENT 1 A first step in understanding human behaviour and the successful management of other people is to know and understand yourself. For this simple exercise you are asked to select any one of the following shapes that you feel is ‘YOU’. After you have made your selection discuss in small groups the reasons which prompted you to choose that particular shape. How much agreement is there among members of your group? You should then consider and discuss the further information provided by your tutor. ASSIGNMENT 2 Provide for classroom discussion short descriptions (suitably disguised if necessary) to illus- trate the practical application of: 1 The Peter Principle, and 2 Parkinson’s Law. Include in your descriptions what you believe to be the relevance of each of these sets of observations, and the effects on other members of staff.
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 55PERSONAL AWARENESS AND SKILLS EXERCISEOBJECTIVESCompleting this exercise should help you to enhance the following skills:᭤ Obtain a clearer picture of your own and other people’s work ethic.᭤ Explore the importance of work to you and your fixed attitudes about work.᭤ Recognise the significance of individuals’ orientations to work within an organisation.EXERCISEYou are required to start by asking yourself this question: is it a good thing to be a worker?And then to think carefully about your responses to the following questions:How do you feel ...■ when you hear the word ‘work’?■ as you get ready for work?■ when you know the day is over?■ about the work you’ve accomplished?■ about someone who chooses not to work?■ about taking time off?■ when you hear the word ‘management’?■ about taking control of your career?Compare your responses with those of your colleagues. What conclusions do you draw aboutthe work ethic?DISCUSSION■ What do you see as the character traits of a person with a healthy work ethic?■ To what extent do you agree with the contention that: ‘we are employed for our skills but valued for our attitude’?■ What effect might different orientations to work have within an organisation and how might they all be accommodated?Visit our website www.booksites.net/mullins for further questions, annotated weblinks,case material and Internet research material.
56 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR CASE STUDY 2.1 Eric and Kipsy: complexities of management and organisational behaviour CONSIDER THE PLIGHT OF ERIC the waiting clerks. The salesman would ask for informa- tion about the availability of a certain piece of Eric is a new manager of product information for a equipment. The clerk would then look up the stock national firm which wholesales electrical compo- number of that item in a large catalogue at her side and nents. He’s proud because he was assigned a ‘tough’ punch the number into a keyboard on the console. office right out of management training. He’s chal- Immediately, the computer would present full informa- lenged because he can see as clearly as everyone else tion about stocks and delivery times of that item on an in the office that the work is not getting done on electronic display panel on the console, and the clerk time – and that mistakes are far above the 2 per cent would relay the appropriate information to the sales- target. And he’s scared because he finds himself man. When the call ended, the green light would utterly incapable of figuring out what he ought to extinguish itself, and the clerk would then wait for the do to make things better. light to flash again, signalling the arrival of a new call. Eric’s first day Eric was fascinated by both the efficiency of the operation and the pleasantness of the surroundings. The office is a new, one-storey building in a wooded His biggest worry at that point was that everything suburban location – complete with carpeting on the was so efficiently designed that he, as manager, floor and Muzak in the walls. There are 35 female would not have anything to do with his time. employees, ranging from recent high school gradu- ates in their first job to experienced middle-aged Beware first impressions housewives. Their job is to provide salesmen in the He soon learned how wrong he was. When, on his field with current information about price, availabil- second day at the office, he began to attack a pile of ity and delivery times of an exceptionally large paperwork on his desk, he found messages from inventory of electrical equipment and supplies. nearly a dozen field salesmen, all wanting him to Eric spent his first day on the job – some three return their calls. Each of these salesmen, it turned months ago now – just watching and listening. While out, had a significant complaint about the product in management training, he had thought a lot about information service – and some were obviously quite how he would handle that first day. He knew that angry. Eric managed to maintain a calm, responsive everyone in the office would be as eager to find out stance in relation to the complaining salesmen, but what he was like as he was to learn about them and he also felt his stomach tightening as he heard what their jobs. And he wanted to make a good impression. they had to say. By the day’s end, he had made a list But Eric finally decided not to give a false impres- of three general problems which seemed both fre- sion. The fact was that he knew virtually nothing quent enough and serious enough to warrant his about the people he would be managing, or the kind immediate attention and action: of work they did. So why, he asked himself, act other- wise? Besides, if the people saw that he was genuinely 1 Salesmen often were unable to get through quickly interested in listening to them and learning from to information clerks. Since salesmen’s calls usu- them, perhaps that would help establish good mutual ally were made from customer offices, this meant rapport between him and his people. So he would just that they were left holding the telephone of a watch, and listen, and try to learn in his first few days client for up to 10 or 15 minutes waiting for a clerk on the job. – while both the salesman and the customer The first day was fun. Soon after arriving and being became increasingly impatient. introduced to the four first-level supervisors, he asked 2 Errors were excessive. Salesman after salesman to be ‘plugged in’ to one of the complicated-looking reported that, on the basis of information provided operating consoles at which the women received calls by the clerks, they would promise delivery of materi- from the field. A green light would blink on the con- als on a specific date at a specific price – only to hear sole, and the information clerk would be connected to later from an irate customer that the materials had the salesman in the field – all taken care of by an out- not been delivered, that the price was different from of-sight computer, which assigned calls sequentially to that quoted, or (all too often) both.
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 573 The clerks were often abrupt and unfriendly to room). This informal network was also popular for the salesmen when they called. According to creative co-ordination of ‘personals’ (i.e., short more than one salesman, the clerks acted as if breaks for visits to the toilet) and for making sure they were being imposed upon, rather than pro- that none of the clerks was violating the generally viding the salesmen with help in carrying out the accepted norms about how much work should be company’s business. carried out on a given day.The source of the problems Eric’s challengeIn the following week, as Eric attempted to track Given his own observations and impressions, Ericdown the reasons for these difficulties, other prob- was not surprised when, a few weeks after he hadlems came to light. First, absenteeism and turnover taken over management of the office, he was visitedwere extremely high. It appeared that the excessive by the regional vice-president of the company. Thedelays were partly due to the fact that 15 to 20 per vice-president informed him that sales were fallingcent of the clerks were unlikely to show up for work company-wide, and that at least part of the problemon any given day – especially Monday and Friday – had to do with the quality of the information withand that up to an hour’s tardiness was not uncom- which salesmen were being provided. Eric’s opera-mon. This created call ‘backups’ on the computer. tion was one of the most critical points ofThe computer, of course, calmly held the calls for as co-ordination in the entire company, he said, and itlong as necessary, oblivious as only a machine can was important to everyone in the company that Ericbe to the rise in tempers in the customer’s office. reduce both the error rate and the number of delays When absenteeism was particularly high on any salesmen currently were experiencing. The vice-given day, part-time employees were called to fill in. president said he had enormous confidence in Eric’sMany of these individuals were not entirely familiar managerial ability, that he was sure the problemswith the job and often did not remember some of would be remedied quickly, and that he viewedthe procedures to be used in looking up equipment Eric’s future in the company with great optimism.numbers in the catalogue – resulting in wrong cata- Eric panicked.logue numbers and erroneous information beinggiven to the customers. Worse, even experienced Eric’s action planclerks had a high error rate. Eric’s hope that the Within two days he had instituted a crash pro-error problem was in the computerised information gramme to increase efficiency, reduce call-in delays,displayed on the clerks’ consoles rather than a fault and slash the error rate. He held a half-day meetingof the clerks themselves was clearly misplaced. with his four first-level supervisors, impressing uponReports of errors arrived weeks after the information them the urgency of the situation and the need forwas provided (when orders failed to arrive on the them to work with their people, individually if nec-customer’s premises, or arrived with unexpected essary, to improve service. He held an eveningprices), and so it was usually impossible to deter- meeting with all staff members (with everyonemine who had made the mistake or why. receiving both refreshments and overtime pay), at Finally, quite contrary to the impression he had which he announced a set of office-wide perform-received on his first day, Eric learned that loafing on ance goals, and encouraged each employee to do herthe job not only was common practice among the best to help achieve the new goals. He even had oneclerks, but had indeed been developed into a rather of the supervisors construct four large signs readingelegant art form. It turned out that the clerks had ‘Increase Efficiency’ (each with a line drawing of adevised ingenious ways to ‘busy out’ their consoles smiling face under the words), which were placed(i.e., to manipulate the console in order to provide on the four walls of the operating area.the computer with a ‘busy’ indication when in fact Beginning the day after the kick-off meeting, allthe console was free). All a clerk needed to do, when supervisory personnel (himself included) were toshe wanted a break from work, was to busy out her spend at least three hours a day on the floor, help-console and, if a supervisor happened to be nearby, ing the employees improve their efficiency, makingact as if she were listening intently to a salesman on spot checks for errors, and generally doing anythingher headset. possible to smooth the flow of work. Worse, there appeared to be a highly efficient The first two days under the new programmesystem of informal communication among the seemed to go reasonably well: the average waitingclerks, which alerted everyone when a supervisor time for incoming calls dropped slightly, spotwas about to appear on the scene (or was monitor- checks of errors showed performance to be close toing calls surreptitiously from the private listening an acceptable level, and everyone seemed to be
58 PART 1 MANAGEMENT AND ORGANISATIONAL BEHAVIOUR Case study 2.1 continued working hard and intently. No longer, for example, office to let him introduce a flexible scheduling plan did the employees take time to look up from their that would allow the employees to better co- work and smile or exchange a few words when Eric ordinate their personal and work lives. He had been entered the room. That bothered him a bit because told that company policy dictated an 8.30 to 5.00 he always had enjoyed chatting with the clerks, but workday and that hours (just like all other person- he accepted the loss of the smiles as a small price to nel policies) were centrally controlled in the interest pay for the increases in efficiency he hoped for. of company-wide efficiency and regularity. Eric On the third day, disaster struck. Eric did not didn’t like the decision (he felt he needed to be notice until mid-morning that someone had care- given much more personal authority to be able to fully written ‘IN’ before ‘Efficiency’ on each of the run his own operation effectively). He did, however, four posters – and the smiles on the line drawings’ understand that there was some need for central co- faces had been extended into full-fledged, if subtly ordination of policy, and he thought that the sarcastic, grins. Worse, everyone seemed to be stu- employees should also be able to see the necessity diously ignoring both the posters and him. Even the for it. The hours, he decided, could not conceivably first-level supervisors said nothing to him about the be the root of all the difficulties. posters, although Eric noticed that the supervisors, He considered briefly the possibility that the like the clerks, collected in pairs and threes for ani- employees were simply not capable of doing the mated conversation when they were not aware of work at satisfactory levels of speed and accuracy. his presence. When he walked out into the operat- However, he knew that could not be the case: all ing area to start his three-hour stint, all eyes looked had passed a company-administered ability test away and stayed there. He had never felt so com- before they were hired and all had gone through a pletely alone. rigorous training programme which covered every That evening Eric stayed after everyone else had contingency a person conceivably could face as an left; he removed the posters and pondered what to information clerk. Besides, the job was not all that do next. With possibly one or two exceptions, he difficult; he personally suspected that even the was sure that the people who worked for him were requirement of a high school diploma was superflu- decent human beings. He knew that he himself was ous, that anybody who could read and write could only trying to do his job, to get performance back handle the job without significant difficulty. No, up to standard. As he had told the employees at the lack of ability was not the core of the problem. kick-off meeting, this was in the best interest of Indeed, as Eric reflected further, it seemed that the everybody: the customers, the salesmen, the clerks, reverse could be true: that perhaps the job was so himself. So why the hostility towards him and his simple and routine that the clerks were bored – and programme? therefore chose to be absent a lot and to loaf when- ever they could on the job. But surely the high pay The root causes? and the pleasantness of the work setting should more Gradually he began to suspect that the problems he than compensate for any such feelings of boredom? had confronted – high errors and delays, excessive Furthermore, holding errors below 2 per cent could absenteeism and turnover – were merely outcrop- provide a real challenge, and loafing on the job pings of some more basic difficulty. Perhaps, he would itself probably be more boring than working. thought, he had attacked the symptom rather than Supervision? It seemed most unlikely that this the disease. was the root of the difficulty. Each of the four super- But what was the disease? He considered each of visors had been information clerks themselves the possibilities. He knew that there was a lot of (although in the old days, when there was no com- complaining about the pay and the inflexibility of puter and you had to look everything up in a set of the hours. But the pay was actually very good, reference manuals), and they knew the job inside higher than for almost any other non-skilled job out. Moreover, he knew from talking with the super- available to females in the suburban area – and visors that they were genuinely committed to every year there was a pay increase for everyone, spending as much time as needed to help each clerk which almost always was greater than the increase do as good a job as possible. Eric had observed each in the cost of living. of them working on the floor many times, and there The hours were a problem, he knew, but even was no question in his mind about how much time those employees who complained the most knew and energy they spent in assisting and developing that he had tried mightily to convince the regional individual clerks.
CHAPTER 2 THE NATURE OF ORGANISATIONAL BEHAVIOUR 59Kipsy CONSIDER THE PLIGHT OF KIPSYThen what? Maybe, he finally concluded, the key Kipsy has been an information clerk in Eric’s officewas Kipsy. Kipsy had been a thorn in his side (the for almost a year. In that year she has becomesupervisors agreed) ever since Eric started the job. increasingly frustrated and unhappy in her work –Although she herself had been working as a clerk for and she doesn’t know quite what to do about it.less than a year, she already had emerged as one of Things certainly have not worked out as she hadthe informal leaders of the workforce. Eric found expected them to.himself agreeing with one of his supervisors whohad suggested over coffee one morning that Kipsy Early optimism ...alone created as many problems as a dozen other She had applied for the job because a friend told herclerks taken together. He was 99 per cent confident, that the company was a great place to work, that thefor example, that it was she who had mutilated his pay was excellent, and that the people she would besigns. He had been recently hearing rumblings that working with were friendly and stimulating.Kipsy was informally talking up the possibility of Moreover, it was well known that the company wasthe clerks unionising, probably even affiliating with growing and expanding at a fast clip. That, Kipsysome national outfit that had no understanding of concluded, meant that there was a good chance forthe local situation. advancement for anyone who showed some initiative He had tried to talk with her once. She had showed and performed well on the job.up unannounced at his office one day, with a long list Advancement was important. Throughout herof complaints about him and the work. His approach high school years, Kipsy had always been seen as ahad been to listen and hear her out, to see what was leader by her classmates, and she had enjoyed thattroubling her, and then to do something about it – for role much more than she had let on at the time. Herher own sake, as well as for her supervisor and the grades had been good – mostly As and Bs – and shecompany. Thinking back now, however, the main knew if she had pushed a bit harder she could havething he remembered about the conversation (if you obtained almost all As. However, she had decidedcould call it a conversation) was her incredible anger. that participation in school activities, doing after-He was perplexed that he could not remember specifi- school volunteer work, and (importantly) havingcally what it was that she had been so mad about. Eric friends and learning from them were just as impor-did recall telling her, as the conversation ended, that if tant as grades; so she had deliberately let the gradesshe worked hard and effectively on her job for a year slip a little.or two she would become eligible for enrolment in a The man who interviewed Kipsy for the job wascompany-run training course for a higher paying job. extremely nice – and what he said about the jobBut again, he could not recall whether or not that hadinterested her. confirmed her high hopes for it. He even took her In any case, it was clear that Kipsy was the link into the room filled with the complicated-lookingpin in the informal network among the clerks – and consoles and let her watch some of the people atif they were turning against him and the company, work. It seemed like it would be great fun – thoughyou could be pretty sure that she was right in the perhaps a little scary – working with all that com-middle of it. The question, though, was what to do puterised equipment. She didn’t know anything atabout it. Fire her? In a very important sense, that all about computers.would be admitting defeat – and publicly. Talk to her When they returned to the hiring area from theiragain? That probably would result in nothing more visit to the console room, Kipsy’s employment teststhan his getting another load of hostility dumped in had been scored. The interviewer told her that shehis lap, and that he didn’t need. had scored in the top 10 per cent of all applicants Eric was in trouble, and he knew it. He realised it for the job, that all signs pointed to a great futurefirst when he could not think of a good way to repair for her in the company, and that she could startthe damage that his new motivational programme training the next day if she wanted. Kipsy acceptedapparently had created. But he knew it for sure when the job on the spot.he found that he was no longer thinking about wor