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1. ORGANIZATIONAL ANALYSIS CLASS
ASSIGNMENT FOR THE FINAL TEST
BY: PARWIZ MOSAMIM
Lecturer:
Prof. Nina Darsono
Master Program
Faculty of Social science and political science
Padjadjaran University
BANDUNG
2019

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ANALYZATION AND DESCRIPTION OF THE FOLLOWING CHART

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Introduction
An organization is a consciously coordinated social unit, composed of a group of people, that
functions on a relatively continuous basis to achieve a common goal or set of goals. Manufacturing
and service firms are organizations, and so are schools, hospitals, churches, military units, retail
stores, police departments, volunteer organizations, start-ups, and local, provincial, and federal
government agencies.
Organizations stand firmly on their strategy plan, policy making satisfaction and of course
the elements (human resources) which are the core of the organization. In each organization every
single staff has responsibility of doing something and also operating system divides the task to every
single section of the organization to receive a good feedback from the customers (servers) and also
the satisfaction of the management board. In the above chart, there are some key parts of an
organization which each one of them will be explained as bellow.
Over the past two decades business faculty have come to realize the importance that an
understanding of human behavior plays in determining a manager’s effectiveness, and required
courses on people skills have been added to many curricula. Employers claim that team working,
communicating, leadership and cultural awareness skills are essential for managerial effectiveness.
Managers are individuals who achieve goals through other people. They do their work in an
organization, which is a consciously coordinated social unit, composed of two or more people that
functions on a relatively continuous basis to achieve a common goal or set of goals.
Defining Organizational Behaviour
Organizational behaviour (often abbreviated as OB ) is a field of study that looks at the impact
that individuals, groups, and structure have on behaviour within organizations for the purpose of
applying such knowledge toward improving an organization’s effectiveness. Because the
organizations studied are often business organizations, OB is often applied to topics such as jobs,
work, absenteeism, employment turnover, productivity, human performance, and management. OB
also examines the following core topics, although debate exists about their relative importance:
• Motivation
• Leader behaviour and power
• Interpersonal communication
• Group structure and processes
• Attitude development and perception
• Change processes
• Conflict and negotiation
Much of OB is relevant beyond the workplace. The study of OB can cast light on the
interactions among family members, students working as a team on a class project, the voluntary
group that comes together to do something about reviving the downtown area, the parents who sit on
the board of their children’s daycare centre, or even the members of a lunchtime pickup basketball
team. Organizational behaviour (OB) investigates the impact that individuals, groups, and
organizational structure have on behaviour within an organization, and it applies that knowledge to
make organizations work more effectively. Specifically, OB focuses on how to improve productivity;
reduce absenteeism, turnover, and deviant workplace behaviour; and increase organizational
citizenship behaviour and job satisfaction.

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Defining organizational behavior:
Organizational behavior is a field of study that investigates the impact that individuals, groups
and structure have on behavior within organizations, for the purpose of applying such knowledge
toward improving an organization’s effectiveness. It studies three determinants of behavior in
organizations: individuals, groups and structure. It applies the knowledge gained to make
organizations work more effectively.
The value of Organizational Behavior of systematic study
Behavior is generally predicable, and the systematic study of behavior is a means to making
reasonably accurate predictions. Systematic study is looking at relationships, attempting to attribute
causes and effects and drawing conclusions based on scientific evidence. An approach that
complements systematic study is evidence-based management, which is basing managerial decisions
on the best available scientific evidence. Systematic study and EBM add to intuition, a gut feeling
not necessarily supported by research.
The major behavioral science disciplines that contribute to Organizational behavior
Organizational behavior is an applied behavioral science that is built on contributions from a
number of behavioral disciplines:
1- Psychology; the science that seeks to measure, explain and sometimes change the behavior of
humans and other animals.
2- Social psychology; an area of psychology that blends concepts from psychology and
sociology and that focuses on the influence of people on one another.
3- Sociology; the study of people in relation to their social environment or culture.
4- Anthropology; the study of societies to learn about human beings and their activities.
Identifying the challenges and opportunities managers have in Applying OB concepts
Managers have to respond to globalization. Managers need to take in an increased amount of
foreign assignments, they need to learn to work with people from different cultures, and they need to
cope with anti-capitalism backlash and oversees the movement of jobs to countries with low-cost
labor. They also need to learn to manage workforce diversity, be embracing the changing European
demographics managers most work to fight the implications caused by it at the same time. They need
to improve quality and productivity, customer service, people skills, stimulate innovation and
change, cope with temporariness, work in networked organizations, help employees balance work-
life conflicts, create a positive work environment (positive organizational scholarship/behavior = an
area of OB research that concerns how organizations develop human strength, foster vitality and
resilience, and unlock potential) and improve ethical behavior.

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PERCEPTION, PERSONALITY, AND EMOTIONS
Perception
Perception is the process by which individuals organize and interpret their impressions to give
meaning to their environment. However, what we perceive can be substantially different from
objective reality. We often disagree about what is real. Perception is important to organizational
behaviour (OB) because people’s behaviour is based on their perception of what reality is, not on
reality itself. The world as it is perceived is the world that is behaviourally important. A recent study
of political behaviour suggests that once individuals hold particular perceptions, it can be difficult to
change their minds, even if they are shown contrary evidence.
Factors That Influence Perception
A number of factors shape and sometimes distort perception. These factors can reside in the
perceiver ; in the object, or target , being perceived; or in the situation in which the perception is
made.

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How Attributions Get Distorted
One of the more interesting findings from attribution theory is that there are errors or biases
that distort attributions. When we judge the behaviour of other people, we tend to underestimate the
influence of external factors and overestimate the influence of internal, or personal, factors. 5 This
fundamental attribution error can explain why a sales manager attributes the poor performance of his
or her sales agents to laziness rather than acknowledging the impact of the innovative.

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PERSONALITY
Understanding the impact of individual personalities on OB is important. Why are some
people quiet and passive, while others are loud and aggressive? Are certain personality types better
adapted to certain job types? Before we can answer these questions, we need to address a more basic
one: What is personality?
What Is Personality?
When we speak of someone’s personality, we don’t mean the person has charm or is
constantly smiling. As organizational behaviourists, we are describing a dynamic concept of the
growth and development of a person’s personality. Gordon Allport produced the most frequently
used definition of personality more than 70 years ago. He said personality is “the dynamic
organization within the individual of those psychophysical systems that determine his unique
adjustments to his environment.” For our purposes, we define personality as the stable patterns of
behaviour and consistent internal states that determine how an individual reacts to and interacts with
others. It’s most often described in terms of measurable traits that a person exhibits.
Measuring Personality
The most important reason managers need to know how to measure personality is that
research has shown that personality tests are useful in hiring decisions. Scores on personality tests
help managers forecast who is the best fit for a job. The most common means of measuring
personality is through self-report surveys, with which individuals evaluate themselves on a series of
factors, such as “I worry a lot about the future.” Although self-report measures work when well
constructed, the respondent might lie to create a good impression. When people know that their
personality scores are going to be used for hiring decisions, they rate themselves as about half a
standard deviation more conscientious and emotionally stable than if they are taking the test just to
learn more about themselves. Another problem is accuracy: A candidate who is in a bad mood when
taking the survey may have inaccurate scores.
The Big Five Personality Model
The model proposes that five basic personality dimensions underlie all others and encompass
most of the significant variation in human personality. Test scores of these traits do a very good job
of predicting how people behave in a variety of real-life situations. 43 The Big Five personality traits
are as follows:
 Extraversion . This dimension captures a person’s comfort level with relationships.
Extraverts tend to be gregarious, assertive, and sociable. Introverts tend to be reserved, timid,
and quiet.
 Agreeableness . This dimension refers to a person’s propensity to defer to others. Highly
agreeable people are cooperative, warm, and trusting. People who score low on agreeableness
are cold, disagreeable, and antagonistic.
 Conscientiousness . This dimension is a measure of reliability. A highly conscientious
person is responsible, organized, dependable, and persistent. Those who score low on this
dimension are easily distracted, disorganized, and unreliable.
 Emotional stability . This dimension often labelled by its converse, neuroticism taps into a
person’s ability to withstand stress. People with positive emotional stability tend to be calm,
self-confident, and secure. Those with high negative scores tend to be nervous, anxious,
depressed, and insecure.

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 Openness to experience . The final dimension addresses a person’s range of interests and
fascination with novelty. Extremely open people are creative, curious, and artistically
sensitive. Those at the other end of the openness category are conventional and find comfort
in the familiar.
EMOTIONS
Each of us has a range of personality characteristics, but we also bring with us a range of
emotions. Given the obvious role that emotions play in our everyday life, it might surprise you to
learn that, until very recently, the topic of emotions was given little or no attention within the field of
OB. Why? We offer two possible explanations. First is the myth of rationality . Until very recently,
the protocol of the work world kept a damper on emotions. A well-run organization did not allow
employees to express frustration, fear, anger, love, hate, joy, grief, or similar feelings thought to be
the antithesis of rationality. Although researchers and managers knew emotions were an inseparable
part of everyday life, they tried to create organizations that were emotionfree.
What Are Emotions and Moods?
Important note:
Individuals base their behaviour not on the way their external environment actually is, but
rather on the way they see it or believe it to be. Personality matters to OB. It does not explain all
behaviour, but it sets the stage. Emerging theory and research reveal how personality matters more in
some situations than others. The Big Five Personality Model has been a particularly important
advancement, although the Dark Triad and other traits matter as well. Moreover, every trait has
advantages and disadvantages for work behaviour. No perfect constellation of traits is ideal in every
situation. Personality can help you understand why people (including yourself!) act, think, and feel
the way we do, and the astute manager can put that understanding to use by taking care to place
employees in situations that best fit their personality. Emotions and moods are similar in that both
are affective in nature. They are also different moods are more general and less contextual than
emotions. And events do matter. The time of day, day of the week, stressful events, social activities,
and sleep patterns are some of the factors that influence emotions and moods. Emotions and moods
have proven relevant for virtually every OB topic we study, and they have implications for
managerial practice.

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Biographical characteristic
In other ways biographical characteristics are personalities or characters that influence a
person. These characters normally affect a person in one way or the other within an organization or
within the society. Personal characteristics such as age, gender, race and length of tenure that are
objective and easily obtained from personnel records. In other ways biographical characteristics are
personalities or characters that influence a person. These characters normally affect a person in one
way or the other within an organization or within the society.
Human resources (HR)
What is Human Resource?
Human resources is used to describe both the people who work for a company or organization
and the department responsible for managing resources related to employees. The term human
resources was first coined in the 1960s when the value of labor relations began to garner attention
and when notions such as motivation, organizational behavior, and selection assessments began to
take shape.
Human resource management is a contemporary, umbrella term used to describe the management
and development of employees in an organization. Also called personnel or talent management
(although these terms are a bit antiquated), human resource management involves overseeing all
things related to managing an organization’s human capital.
Human Resources Policies and practices
The organisation’s role in human resource policies and strategies In the ideal situation:
 The organisation invites its HR director to be part of the senior management group. The
organisation has HR policies and strategies founded on the principle of fairness.
 This means fair rules, procedures and decisions that are applied fairly in each individual staff
member’s case. Interpersonal communication is characterised by honesty, respect, dignity and
politeness.
 The organisation develops, implements and evaluates HR policies and strategies that are intended
to create a positive work environment. Leadership underpinned by effective HR policies and
strategies is a driving force in creating a positive work environment in the organisation.
 The organisation promotes the importance of HR policies and strategies, particularly those
relating to work relationships and acceptance of diversity, to all levels of the organisation.
 The organisation regularly monitors and reviews critical HR performance indicators including
the quality of work relationships, staff wellbeing, organisational justice, openness to diversity
and emotional climate.
 The organisation undertakes research to evaluate, monitor and develop staff.
Values, Attitudes, and Diversity in the Work Place
Values
Values represent basic convictions that “a specific mode of conduct or end-state of existence
is personally or socially preferable to an opposite or converse mode of conduct or end-state of

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existence.” They contain a judgmental element in that they carry an individual’s ideas as to what is
right, good, or desirable. Values have both content and intensity attributes. The content attribute says
a mode of conduct or end-state of existence is important. The intensity attribute specifies how
important it is. When we rank an individual’s values in terms of their intensity, we discover that
person’s value system . All of us have a hierarchy of values according to the relative importance we
assign to values such as freedom, pleasure, self-respect, honesty, obedience, and equality.
Attitudes
Attitudes are evaluative statements either positive or negative about objects, people, or
events. They reflect how we feel about something. When I say, “I like my job,” I am expressing my
attitude about work. Typically, researchers have assumed that attitudes have three components:
cognition, affect, and behaviour. Let’s look at each. The statement “My pay is low” is the cognitive
component of an attitude a description of or belief in the way things are. It sets the stage for the more
critical part of an attitude its affective component . Affect is the emotional or feeling segment of an
attitude and is reflected in the statement “I’m angry over how little I’m paid.” Finally, affect can lead
to behavioural outcomes. The behavioural component of an attitude describes an intention to behave
in a certain way toward someone or something to continue the example, “I’m going to look for
another job that pays better.”
THE COMPONENTS OF AN ATTITUDE
Important Note:
Why is it important to know an individual’s values? Values often underlie and explain
attitudes, behaviours, and perceptions. So knowledge of an individual’s value system can provide
insight into what makes a person “tick.” Managers should be interested in their employees’ attitudes
because attitudes give warnings of potential problems and infl uence behaviour. Creating a satisfi ed
workforce is hardly a guarantee of successful organizational performance, but evidence strongly

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suggests that whatever managers can do to improve employee attitudes will likely result in
heightened organizational effectiveness all the way to high customer satisfaction and profi ts.
Diversity management must be an ongoing commitment that crosses all levels of the organization.
Policies to improve the climate for diversity can be effective, so long as they are designed to
acknowledge all employees’ perspectives.
STRESS AT WORK
What Is Stress?
Stress is a dynamic condition in which an individual is confronted with an opportunity,
demand, or resource related to what the individual desires and for which the outcome is perceived to
be both uncertain and important. This definition is complicated. Let’s look at its components more
closely. Stress is not necessarily bad in and of itself. Although stress is typically discussed in a
negative context, it also has a positive value.
Causes of Stress
Workplace stress can arise from a variety of factors:
 Environmental factors. Uncertainty is the biggest reason people have trouble coping with
organizational changes. 21 Three common types of environmental uncertainty are economic,
political, and technological.
 Organizational factors. There is no shortage of factors within an organization that can
causestress. Pressures to avoid errors or complete tasks in a limited time, work overload, a
demanding and insensitive boss, and unpleasant co-workers are a few examples. We have
categorized these factors around task, role, and interpersonal demands.
 Personal factors. The typical individual works about 40 to 50 hours a week. But the
experiences and problems that people encounter in the other 120-plus nonwork hours can
spill over to the job. Our final category, then, encompasses factors in the employee’s personal
life: family issues, personal economic problems, and personality characteristics.
MOTIVATION
What Is Motivation?
Motivation is one of the most frequently researched topics in organizational behaviour (OB).
Gallup poll suggests that employees are not motivated. Seventy percent of Canadian employees are
not engaged in their work, and another 14 percent are actively disengaged. 3 In a 2014 survey, 89
percent of employees reported wasting time at work every day, and 62 percent said they waste
between 30 and 60 minutes each day. How? Surfing the Internet came in first with 26 percent of
respondents (Google, Facebook, and LinkedIn were the most popular time distractors); “too many
meetings/conference calls and dealing with annoying coworkers tied for second place with 24%

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each.” Motivation is the process that accounts for an individual’s intensity, direction, and
persistence of effort toward reaching a goal.
GROUPS AND TEAM WORK
Teams vs Groups: What Is the Difference?
There is some debate whether groups and teams are really separate concepts or whether the
two terms can be used interchangeably. We think that there is a subtle difference between the terms.
A group is two or more people with a common relationship. Thus a group could be co-workers, or
people meeting for lunch or standing at the bus stop. Unlike teams, groups do not necessarily engage
in collective work that requires interdependent effort. A team is “a small number of people with
complementary skills who are committed to a common purpose, performance goals, and approach
for which they hold themselves mutually accountable.” Groups become teams when they meet the
following
conditions:
 Team members share leadership .
 Both individuals and the team as a whole share accountability for the work of the
team.
 The team develops its own purpose or mission .
 The team works on problem solving continuously, rather than just at scheduled
meeting times.
 The team’s measure of effectiveness is the team’s outcomes and goals, not individual
outcomes and goals.
FOUR TYPES OF TEAM

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From Individual to Team Member
For either a group or a team to function, individuals have to achieve some balance between
their own needs and the needs of the group. When individuals come together to form groups and
teams, they bring with them their personalities and all their previous experiences. They also bring
their tendencies to act in different ways at different times, depending on the effects that different
situations and different people have on them. One way to think of these differences is in terms of
possible pressures that individual group members put on one another through roles, norms, and status
expectations, as OB in the Workplace indicates. As we consider the process of how individuals learn
to work in groups and teams, we will use the terms interchangeably. Many of the processes that each
go through are the same, with the major difference being that teams within the workplace are often
set up on a nonpermanent basis, in order to accomplish projects.
Stages of Group and Team Development
When people get together for the first time with the purpose of achieving some objective, they
discover that acting as a team is not something simple, easy, or genetically programmed. Working in
a group or team is often difficult, particularly in the initial stages, when people don’t necessarily
know one another. As time passes, groups and teams go through various stages of development,
although the stages are not necessarily exactly the same for each group or team. In this section, we
discuss two models of group development. The five-stage model describes the standardized sequence
of stages groups pass through. The punctuated-equilibrium model describes the pattern of
development specific to temporary groups with deadlines. These models can be applied equally to
groups and teams.

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A MODEL OF TEAM EFFECTIVENESS
Effects of Group Process
COMMUNICATION
The Communication Process
Individuals spend nearly 70 percent of their waking hours communicating writing, reading,
speaking, listening which means that they have many opportunities in which to engage in poor
communication. Communication is an important consideration for organizations and individuals
alike. Communication is a foundation for many things that happen among groups and within the
workplace from motivating, to providing information, to controlling behaviour, to expressing
emotion. Good communication skills are very important to your career success. A recent study of
recruiters found that they rated communication skills as the most important characteristic of an ideal
job candidate.

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THE COMMUNICATION PROCESS MODEL
ORGANIZATIONAL COMMUNICATION
Three Common Small Group Networks and Their Effectiveness
POWER AND POLITICS
A Definition of Power
Power refers to a capacity that A has to influence the behaviour of B, so that B acts in
accordance with A’s wishes. 3 This definition implies that there is a potential for power if someone
is dependent on another. But one can have power and not impose it.
BASES OF POWER
 Formal Power: Formal power is based on an individual’s position in an organization. It can
come from the ability to coerce or reward, or from formal authority.
 Coercive Power: Coercive power depends on fear of the negative results that might occur if
one fails to comply. It rests on the application, or the threat of the application, of physical
sanctions such as the infliction of pain, the generation of frustration through restriction of
movement, or the controlling by force of basic physiological or safety needs.

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 Reward Power: The opposite of coercive power is reward power . People will go along with
the wishes or directives of another if doing so produces positive benefits; therefore, someone
who can distribute rewards that others view as valuable will have power over those others.
 Legitimate Power: In formal groups and organizations, probably the most frequent access to
one or more of the bases of power is through a person’s structural position. This is called
legitimate power . It represents the power a person receives as a result of his or her position
in the formal hierarchy of an organization.
 Personal Power: Many of the most competent and productive chip designers at Toronto-
based Celestica have power, but they are not managers and have no formal power. What they
have is personal power , which comes from an individual’s unique characteristics.
POLITICS: POWER IN ACTION
When people get together in groups, power will be exerted. People want to carve out a niche
from which to exert influence, to earn awards, and to advance their careers. When employees in
organizations convert their power into action, we describe them as being engaged in politics. Those
with good political skills have the ability to use their bases of power effectively. In this section, we
look at political behaviour, including the types of political activity people use to try to influence
others, and impression management. Political skills are not confined to adults, of course. Even young
children are quite adept at waging careful, deliberate campaigns to wear their parents down, so that
they can get things that they want.
Types of Political Activity
People engage in a variety of political activities in organizations, including the following:
 Attacking or blaming others. Used when trying to avoid responsibility for failure.
 Using information. Withholding or distorting information, particularly to hide negative
information.
 Managing impressions. Bringing positive attention to oneself or taking credit for positive
accomplishments of others.
 Building support for ideas. Making sure that others will support one’s ideas before they are
presented.
 Praising others. Making important people feel good.
 Building coalitions. Joining with other people to create a powerful group.
 Associating with influential people. Building support networks.
 Creating obligations. Doing favours for others so they will owe you favours later.
Important Note:
An effective manager accepts the political nature of organizations. Some people are
significantly more politically astute than others, meaning that they are aware of the underlying
politics and can manage impressions. Those who are good at playing politics can be expected to get
higher performance evaluations and, hence, larger salary increases and more promotions than the
politically naïve or inept. The politically astute are also likely to exhibit higher job satisfaction and
be better able to neutralize job stressors. Few employees relish being powerless in their job and
organization. People respond differently to the various power bases. Expert and referent power are
derived from an individual’s personal qualities. In contrast, coercion, reward, and legitimate power
are essentially organizationally derived. Competence especially appears to offer wide appeal as a
political skill.

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Organizational Conflict
Organizational conflict, or workplace conflict, is a state of discord caused by the actual or
perceived opposition of needs, values and interests between people working together. There is
also conflictwithin individuals between competing needs and demands to which individuals respond
in different ways. Definition: Organizational Conflict or otherwise known as workplace conflict, is
described as the state of disagreement or misunderstanding, resulting from the actual or perceived
dissent of needs, beliefs, resources and relationship between the members of the organization. At the
workplace, whenever, two or more persons interact, conflict occurs when opinions with respect to
any task or decision are in contradiction.
Conflict-Handling Strategies and Accompanying Behaviors
Conflict Outcomes
The action–reaction interplay between conflicting parties creates consequences that are
functional , if the conflict improves the group’s performance, or dysfunctional , if it hinders
performance. Conflict is constructive when it improves the quality of decisions, stimulates creativity
and innovation, encourages interest and curiosity among group members, provides the medium for
problems to be aired and tensions released, and fosters selfevaluation and change. Conflict can
prevent groupthink. It does not allow the group passively to “rubber-stamp” decisions that may be
based on weak assumptions, inadequate consideration of relevant alternatives, or other problems.
Conflict challenges the status quo and supports the creation of new ideas, promotes reassessment of
group goals and activities, and increases the probability that the group will respond to change. An
open discussion focused on higher-order goals can make functional outcomes more likely. Groups
that are extremely polarized do not manage their underlying disagreements effectively and tend to

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accept suboptimal solutions, or they avoid making decisions altogether rather than working out the
conflict. Dean Tjosvold of Lingnan University in Hong Kong suggests three desired outcomes
for conflict:
 Agreement. Equitable and fair agreements are the best outcome. If agreement means that one
party feels exploited or defeated, this will likely lead to further conflict later.
 Stronger relationships. When conflict is resolved positively, this can lead to better
relationships and greater trust. If the parties trust each other, they are more likely to keep the
agreements they make.
 Learning. Handling conflict successfully teaches one how to do it better next time. It gives
an opportunity to practise the skills one has learned about handling conflict.
ORGANIZATIONAL CULTURE
What Is Organizational Culture?
The values and behaviors that contribute to the unique social and psychological environment of
an organization are called organizational culture. Organizational culture includes an organization’s
expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-
image, inner workings, interactions with the outside world, and future expectations. It is based on
shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over
time and are considered valid. Also called corporate culture, it’s shown in:
1- The way to organization conducts its business, treats its employees, customers, and the wider
community.
2- The extent to which freedom is allow in decision making, developing new ideas, and personal
expression.
3- How power and information flow through its hierarchy
4- How committed employees are towards collective objectives
Definition of Organizational Culture
Organizational culture refers to a system of shared meaning held by members that distinguishes
the organization from other organizations. 6 Seven primary characteristics capture the essence of an
organization’s culture:
 Innovation and risk-taking. The degree to which employees are encouraged to be
innovative and take risks.
 Attention to detail. The degree to which employees are expected to work with precision,
analysis, and attention to detail.
 Outcome orientation. The degree to which management focuses on results, or outcomes,
rather than on the techniques and processes used to achieve these outcomes.
 People orientation. The degree to which management decisions take into consideration the
effect of outcomes on people within the organization.
 Team orientation. The degree to which work activities are organized around teams rather
than individuals.
 Aggressiveness. The degree to which people are aggressive and competitive rather than
easygoing and supportive.

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 Stability. The degree to which organizational activities emphasize maintaining the status quo
in contrast to growth.
Contrasting Organizational Culture
LEADERSHIP
What Is Leadership?
We define leadership as the ability to influence a group toward the achievement of a vision or
set of goals. The source of this influence may be formal, such as that provided by managerial rank in
an organization. But not all leaders are managers, nor are all managers leaders. Just because an
organization provides its managers with certain formal rights is no assurance they will lead
effectively. Nonsanctioned leadership the ability to influence that arises outside the formal structure
of the organization is often as important or more important than formal influence. Leaders can
emerge from within a group as well as by formal appointment. Organizations need strong leadership
and strong management for optimal effectiveness. We need leaders to challenge the status quo, create
visions of the future, and inspire organizational members to achieve the visions. We also need
managers to formulate detailed plans, create efficient organizational structures, and oversee day-
today operations.

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Full Range of Leadership Model
Important Note:
Leadership plays a central part in understanding group behaviour because it’s the leader who
usually directs us toward our goals. Knowing what makes a good leader should thus be valuable in
improving group performance. The early search for a set of universal leadership traits failed.
However, recent efforts using the Big Five Personality Model show strong and consistent
relationships between leadership and extraversion, conscientiousness, and openness to experience.
The behavioural approach’s major contribution was narrowing leadership into task-oriented
(initiating structure) and people-oriented (consideration) styles. By considering the situation in which
the leader operates, contingency theories promised to improve on the behavioural approach, but only
Fiedler’s least preferred co-worker theory has fared well in leadership research. Research on
charismatic and transformational leadership has made major contributions to our understanding of
leadership effectiveness.
DECISION MAKING
How Should Decisions Be Made?
A decision is the choice made from two or more alternatives. Decision making happens at all
levels of an organization. Business schools train students to follow rational decision-making models.
While models have merit, they don’t always describe how people make decisions. Knowing how to
make decisions is an important part of everyday life. Below we consider various decision-making
models that apply to both individual and group choices. We start with the rational decision-making
model, which describes decision making in the ideal world, a situation that rarely exists. We then
look at alternatives to the rational model, and how decisions actually get made.

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Steps in the Rational Decision Making
How Do Individuals Actually Make Decisions?
Most decisions in the real world don’t follow the rational model. As one expert in decision
making has concluded, “Most significant decisions are made by judgment, rather than by a defined
prescriptive model.” What is more, people are remarkably unaware of making suboptimal decisions.
ORGANIZATIONAL STRUCTURE
What Is Organizational Structure?
An organizational structure defines how job tasks are formally divided, grouped, and
coordinated. Managers need to address six key elements when they design their organization’s
structure: work specialization, departmentalization, chain of command, span of control,
centralization and decentralization, and formalization.
1- Work Specialization
We use the term work specialization , or division of labour , to describe the degree to which tasks in
the organization are subdivided into separate jobs. The essence of work specialization is that, rather
than an entire job being completed by one individual, it’s broken down into a number of steps, with
each step being completed by a separate individual. In essence, individuals specialize in doing part of
an activity rather than the entire activity.

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2- Departmentalization
Once jobs are divided up through work specialization, they must be grouped so that common tasks
can be coordinated. The basis on which jobs are grouped together is called departmentalization . One
of the concerns related to departmental groups is hat they can become silos within an organization.
Often, departments start protecting their own turf and not interacting well with other departments,
which can lead to a narrow vision with respect to organizational goals.
3- Chain of Command
While the chain of command was once a basic cornerstone in the design of organizations, it has far
less importance today. 4 But contemporary managers should still consider its implications,
particularly for industries that deal with potential life-or-death situations. The chain of command is
the continuous line of authority that extends from upper organizational levels to the lowest level and
clarifies who reports to whom. It helps employees answer questions such as, “Who do I go to if I
have a problem?” and “To whom do I report?”
4- Span of Control
Span of control refers to the number of employees who report to a manager. This number will vary
by organization, and by unit within an organization, and is determined by the number of employees a
manager can efficiently and effectively direct. In an assembly-line factory, a manager may be able to
direct numerous employees, because the work is well defined and controlled by machinery. A sales
manager, by contrast, might have to give one-on-one supervision to individual sales reps, and,
therefore, fewer would report to the sales manager. All things being equal, the wider or larger the
span, the more efficient the organization. An example can illustrate the validity of this statement.
5- Centralization and Decentralization
Centralization refers to the degree to which decision making is concentrated at a single point in the
organization. In centralized organizations, top managers make all the decisions, and lower-level
managers merely carry out their directives. In organizations at the other extreme, decentralized
decision making is pushed down to the managers closest to the action or even to work groups.
6- Formalization
Formalization refers to the degree to which jobs within the organization are standardized. In
organizations that are highly formalized, there are explicit job descriptions, lots of organizational
rules, and clearly defined procedures covering work processes. Employees can be expected always to
handle the same input in exactly the same way, resulting in a consistent and uniform output where
there is high formalization. Where formalization is low, job behaviours are relatively
nonprogrammed, and employees have a great deal of freedom to exercise discretion in their work.
Formalization not only eliminates the possibility of employees engaging in alternative behaviours but
also removes the need for employees to consider alternatives.

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Organizational Structure: Its Determinants and Outcomes
What is an organizational design?
Organizational design is a step-by-step methodology which identifies dysfunctional aspects of
work flow, procedures, structures and systems, realigns them to fit current business realities/goals
and then develops plans to implement the new changes. The process focuses on improving both the
technical and people side of the business. For most companies, the design process leads to a more
effective organization design, significantly improved results (profitability, customer service, internal
operations), and employees who are empowered and committed to the business. The hallmark of the
design process is a comprehensive and holistic approach to organizational improvement that touches
all aspects of organizational life, so you can achieve:
 Excellent customer service
 Increased profitability
 Reduced operating costs
 Improved efficiency and cycle time
 A culture of committed and engaged employees
 A clear strategy for managing and growing your business

By design we’re talking about the integration of people with core business processes, technology and
systems. A well-designed organization ensures that the form of the organization matches its purpose
or strategy, meets the challenges posed by business realities and significantly increases the likelihood
that the collective efforts of people will be successful.
Work design
An arrangement in the workplace that has the objective of overcoming employee alienation
and job dissatisfaction that comes about form mechanical and repetitive tasks in the workplace.
Work design is used by organizations to boost productivity by offering employees non-monetary
rewards such as satisfaction from a greater sense of personal achievement. Also called job designed.

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ORGANIZATIONAL CHANGE
Forces for Change
No company today is in a particularly stable environment. Even those with dominant market
share must change, sometimes radically. The Future Shop store that opened in Cornwall, Ontario, in
mid-November 2014 is a sign of the changes happening to big box stores. The store is small, less
than one-third the size of the average Future Shop store. A large warehouse attached to the store
caters to online shoppers who then go to the store to pick up their items. Fewer customers show up to
browse merchandise. Instead, they do their research online. Enticing them to pick up merchandise
ordered online is intended to get people into the store, so that perhaps they will buy more. The
Internet has changed the way people shop, and big box stores are having to change the way they
interact with customers.
Organizational Targets for Change
Lewin’s three-step Change Model
Important Note:
The need for change has been implied throughout this text. For instance, think about attitudes,
motivation, work teams, communication, leadership, organizational structures, and organizational

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cultures. Change was an integral part in our discussion of each. If environments were perfectly static,
if employees’ skills and abilities were always up to date, and if tomorrow were always exactly the
same as today, organizational change would have little or no relevance to managers. But the real
world is turbulent, requiring organizations and their members to undergo dynamic change if they are
to perform at competitive levels.
As the conclusion of this paper, here is the last analysis chart which is defying all the
organizational elements very well.

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Comparing the three levels of analysis in this book’s OB model
A model is an abstraction of reality. A simplified representation of some real-world phenomenon.
There are three levels of analysis in OB, that is; individual level, group level and organization
systems level. A dependent variable is a response that is affected by an independent variable. There
are a couple old dependent variables such as:
1- Productivity; a performance measure that includes effectiveness and efficiency.
2- Absenteeism; the failure to report to work.
3- Turnover; voluntary and involuntary permanent withdrawal from an organization.
4- Deviant workplace behavior; voluntary behavior that violates significant organizational
norms and, in so doing, threatens the well-being of the organization or its members.
5- Organizational citizenship behavior; discretionary behavior that is not part of an employee’s
formal job requirement, but that nevertheless promotes the effective functioning of the
organization.
6- Job satisfaction; a positive feeling about one’s job resulting from an evaluation of its
characteristics
An independent variable is the presumed cause of some change in a dependent variable. Think of
individual-level, group level and organization system-level variables.
REFERENCES
1- Organizational behavior book by Stephen P. Robbins & Tim Judge
2- Organizational Behavior book by Nancy Langton, Stephen P. Robbins and Timothy A. Judge