Organizational behavior ppt

Organizational
Behavior
Leadstar College of
Management and
Leadership
Dr. Gemechis Desta
Leadstar - Dr. Gemechis Desta, OB (MBA)

INTRODUCTION TO ORGANIZATIONAL
BEHAVIOR
 Define organizational behavior.
 Trace historical roots of organizational
behavior
 Discuss emergence of contemporary
organizational behavior, including its
precursors, the Hawthorne studies, and the
human relations movement.
 Describe contemporary organizational
behavior—its characteristics, concepts, and
importance.
 Identify and discuss contextual perspectives
on organizational behavior.
 http://www.apexcpe.com/Publications/471001.pdf

What is an organization?
An organization is defined as a
collection of people who work
together to achieve a wide variety of
goals.

Organizational Behavior
Organizational behavior (OB) is;
The study of human behavior in
organizational settings,
How human behavior interacts with
the organization, and
The organization itself.

Organizational behavior is defined
as the actions and attitudes of
people in organizations. The field of
organizational behavior (OB) covers
the body of knowledge derived from
these actions and attitudes.

 Organizational Behavior can help managers;
 Understand the complexity within
organizations,
 Identify problems,
 Determine the best ways to correct them,
and
 Establish whether changes would make
a significant difference.

THE NATURE OF ORGANIZATIONAL
BEHAVIOR
Individuals do not work in isolation.
They come in contact with other
people and with the organization in a
variety of ways.
Points of contact include managers,
coworkers, the formal policies and
procedures of the organization, and
various changes implemented by the
organization. Leadstar - Dr. Gemechis Desta, OB (MBA)

Historical Roots of Organizational Behavior
 One reason for the relatively late development of
management as a scientific field is;
 Very few large business organizations existed until
around a hundred years ago. Although management
is just as important to a small organization as it is to a
large one, large firms provided both a stimulus and a
laboratory for management research.
 Second, many of the initial players interested in
studying organizations were economists. Economists
initially assumed that management practices are by
nature efficient and effective; therefore, they
concentrated on higher levels of analysis such as
national economic policy and industrial structures
rather than on the internal structure of companies.

Scientific Management
One of the first approaches to the study of
management, popularized during the early
1900s, was scientific management.

 The person commonly associated with
scientific management is Fredric W. Taylor.
 Early in his life, Taylor developed an interest
in efficiency and productivity.

Laborers opposed scientific management
because of its explicit goal of getting more
output from workers.
Congress investigated Taylor’s methods
and ideas because some argued that his
incentive system would dehumanize the
workplace and reduce workers to little more
than drones.
Later theorists recognized that Taylor’s
views on employee motivation were
inadequate and narrow.

Classical Organization Theory
This perspective is concerned with
structuring organizations effectively.
Whereas scientific management studied how
individual workers could be made more
efficient, classical organization theory
focused on how a large number of workers
and managers could be most effectively
organized into an overall structure.

Classical Organization Theory
Major contributors to classical
organization theory included Henri
Fayol, Lyndall Urwick, and Max Weber.
Weber, the most prominent of the
three, proposed a “bureaucratic” form
of structure that he believed would
work for all organizations.

PRECURSORS OF ORGANIZATIONAL
BEHAVIOR
• British industrialist
• He improved working
conditions, raised
minimum ages for
hiring children,
introduced meals for
employees, and
shortened working
hours.
Robert
Owen

BEHAVIOR
• Argued that the
field of psychology
could provide
important insights
into areas such as
motivation and the
hiring of new
employees.
German
psychologist
Hugo
Munsterberg

BEHAVIOR
• Believed that
management should
become more democratic
in its dealings with
employees.
• Argued that organizations
should strive harder to
accommodate their
employees’ human needs.
Mary
Parker
Follett

PRECURSORS Contd.
The views of Owen, Mansterberg, and
Follett, however, were not widely shared
by practicing managers.
Not until the 1930s did notable change
occur in management’s perception of the
relationship between the individual and the
workplace.
At that time, a series of now classic
research studies led to the emergence of
organizational behavior as a field of study.

HUMAN RELATIONS
MOVEMENT
The basic premises underlying the human
relations movement are that people
respond primarily to their social
environment, that motivation depends more
on social needs than on economic needs,
and that satisfied employees work harder
than unsatisfied employees.

HUMAN RELATIONS
MOVEMENT
The behavioral theory of management
holds that all people (including
employees) have complex needs,
desires, and attitudes.
The fulfillment of needs is the goal
toward which employees are
motivated.
Effective Mgmt./leadership matches
need-fulfillment rewards with desired
behaviors (tasks) that accomplish
organizational goals.

HUMAN RELATIONS
MOVEMENT
Need Fulfillment

CONTEMPORARY
ORGANIZATIONAL BEHAVIOR
Contemporary organizational behavior
has two fundamental characteristics
that warrant special discussion. It also
generally accepts a set of concepts to
define its domain.

CONTEMPORARY ORGANIZATIONAL
BEHAVIOR
Nature of the Field
Interdisciplinary Descriptive

CONTEMPORARY ORGANIZATIONAL
BEHAVIOR
Researchers and managers who use
concepts and ideas from organizational
behavior recognize that it has an
interdisciplinary focus and a descriptive
nature; that is, it draws from a variety of
fields and attempts to describe
behavior. Leadstar - Dr. Gemechis Desta, OB (MBA)

Organizational Behavior is
Interdisciplinary
Sociology

Interdisciplinary
Sociology Anthropology

Interdisciplinary
Political
Science

Interdisciplinary
Political
Science
Psychology

Interdisciplinary
Political
Science
Psychology Engineering

Interdisciplinary
Political
Science
Psychology Engineering Medicine

Descriptive Nature
 A primary goal of OB is to describe relationships
between two or more behavioral variables.
 For instance, research might indicate that in one
organization, employee satisfaction and individual
perceptions of working conditions correlate positively.
Nevertheless, we may not know if better working
conditions lead to more satisfaction.
 Also, the observed relationship between satisfaction
and perceptions of working conditions may be
considerably stronger, weaker, or nonexistent in other
settings.

Descriptive Nature
Organizational behavior is descriptive for
several reasons:
Immaturity of the field, the complexities
inherent in studying human behavior,
Lack of valid, reliable, and accepted
definitions and measures.
Whether the field will ever be able to
make definitive predictions and
prescriptions is still an open question.

Importance of OB
People are born and educated in organizations,
acquire most of their material possessions from
organizations, and die as members of
organizations. Many of our activities are
regulated by organizations called governments.
Organizational behavior can greatly clarify the
factors that affect how managers manage. It is
the field’s job to describe the complex human
context in which managers’ work and to define
the problems associated with that realm.

Importance of Organizational
Behavior
The value of organizational behavior is that
it isolates important aspects of the
manager’s job and offers specific
perspectives on the human side of
management:
People as organizations,
People as resources, and
People as people

Contextual Perspectives on OB
The systems perspective:
 A system is an interrelated set of elements that
function as a whole.
 An organizational system receives four kinds of
inputs form its environment: material, human,
financial, and informational. The organization then
combines and transforms the inputs and returns them
to the environment in the form of products or
services, profits or losses, employee behaviors, and
additional information. Finally, the system receives
feedback from the environment regarding these
outputs.

Contextual Perspectives on Organizational
Behavior
Systems Perspective
Organizational
Systems
Input
Output
Feedback

Behavior
Contingency Perspective
 In the early days of management studies, managers
searched for universal answers to organizational
questions. They wanted prescriptions that could be
applied to any organization under any conditions.
However, they realized that the complexities of human
behavior and organizational settings make universal
conclusions virtually impossible.
 They discovered that in organizations, most situations
and outcomes are contingent; that is, the relationship
between any two variables is likely to be influenced by
other variables. Leadstar - Dr. Gemechis Desta, OB (MBA)

Behavior
Interactional Perspective
 The interactional view implies that simple
cause-and-effect descriptions of
organizational phenomena are not enough.

Behavior
Job
changes
leads to
improved
employee
attitude

Behavior
Job changes
leads to
improved
employee
attitude
Attitude
influences
how people
perceive their
jobs

Behavior
Both positions are probably incomplete:
employee attitudes may influence job
perception, but these perceptions may
in turn influence future attitudes.

MANAGING PEOPLE AND
ORGANIZATIONS
Common managerial activity:
Interacting with other people.
The “typical” day for most managers
is almost entirely devoted to
interacting with others.
The management process and
behavior of people in organizations
are undeniably intertwined.

MANAGERIAL PERSPECTIVES ON
ORGANIZATIONAL BEHAVIOR
Virtually all organizations have managers
with titles but probably no organization
has a position called organizational
behavior manager.
The reason for this is simple:
organizational behavior is not an
organizational function or area. Instead, it
is best described as a set of tools that all
managers can use to carry out their jobs
more effectively.

MANAGEMENT FUNCTIONS, ROLES, AND
SKILLS
 The four basic managerial functions in
organizations are planning, organizing,
leading, and controlling.
 By applying these functions to the various
organizational resources— human, financial,
physical, and informational—the organization
achieves different levels of effectiveness and
efficiency.
 Henry Mintzberg identified ten basic
managerial roles clustered into three general
categories. Leadstar - Dr. Gemechis Desta, OB (MBA)

SKILLS
• They are roles in which the
manger’s main task is to relate to
other people in certain ways.
Interpersonal
Role

SKILLS
Interpersonal
Role
• Seeking, disseminating and
processing information,
behavioral processes are part of
these roles
Informational
Role

SKILLS
Interpersonal
Role
• Seeking, disseminating and
processing information,
behavioral processes are part of
these roles
Informational
Role
Decision-
making Roles

MANAGEMENT FUNCTIONS,
ROLES, AND SKILLS
 Mintzberg identified four decision-making
roles.
 The entrepreneur voluntarily initiates change,
such as innovations or new strategies, in the
organization.
Behavioral processes are clearly crucial in
each of these decisional roles.

ROLES, AND SKILLS
 Mintzberg identified four decision-making roles.
 The entrepreneur voluntarily initiates change, such
as innovations or new strategies, in the organization.
 The disturbance handler helps settle disputes
between various parties, such as other mangers and
their subordinates.
Behavioral processes are clearly crucial in each of
these decisional roles.

ROLES, AND SKILLS
 The entrepreneur voluntarily initiates change, such as
innovations or new strategies, in the organization.
 The disturbance handler helps settle disputes
between various parties, such as other mangers and
their subordinates.
 The resource allocator decides who will get what—
how resources in the organization will be distributed
among various individuals and groups.
Behavioral processes are clearly crucial in each of
these decisional roles.

ROLES, AND SKILLS
 The entrepreneur voluntarily initiates change, such as
innovations or new strategies, in the organization.
 The disturbance handler helps settle disputes between
various parties, such as other mangers and their
subordinates.
 The resource allocator decides who will get what—how
resources in the organization will be distributed among
various individuals and groups.
 The negotiator represents the organization in reaching
agreements with other organizations,
Behavioral processes are clearly crucial in each of these
decisional roles.

ROLES, AND SKILLS
 MANAGERIAL SKILLS
 Still another important element of managerial
work is the set of skills necessary to carry out
basic functions and fill fundamental roles. In
general, most successful managers have a
strong combination of technical, interpersonal,
conceptual, and diagnostic skills.

SKILLS
Managerial Skills
• Skills necessary to accomplish specific
tasks within the organization.
Technical

SKILLS
Managerial Skills
• Skills necessary to accomplish specific tasks within
the organization.
Technical
• Manager’s ability to communicate with, understand,
and motivate individuals and groups.
Interpersonal

SKILLS
Managerial Skills
• Skills necessary to accomplish specific tasks within
the organization.
Technical
• Manager’s ability to communicate with, understand,
and motivate individuals and groups.
Interpersonal
• Manager’s ability to think in the abstract, see
big picture, and opportunities.
Conceptual

SKILLS
Managerial Skills
• Skills necessary to accomplish specific tasks within the
organization.
Technical
• Manager’s ability to communicate with, understand, and
motivate individuals and groups.
Interpersonal
• Manager’s ability to think in the abstract, see big
picture, and opportunities.
Conceptual
• Understanding cause-and-effect relationships and the
optimal solution to problems.
Diagnostic

MANAGERIAL
CHALLENGES
In managerial work, organizational
behavior has several implications for
various managerial, organizational, and
global challenges.
From the managerial perspective, there
are four major challenges that affect
organizational behavior.

MANAGERIAL
CHALLENGES
Changing social and
cultural environment
Managerial
Challenges

MANAGERIAL
CHALLENGES
Changing social and
Evolving Global
Environment
Managerial
Challenges

MANAGERIAL
CHALLENGES
Changing social and
Evolving Global
Environment
Advancing Information
Technology
Managerial
Challenges

MANAGERIAL
CHALLENGES
Changing social and
Work Force diversity
National culture
Evolving Global
Environment
Understanding Global Differences
Expatriate employees
Advancing Information
Technology
IT and Organizational
Effectiveness
IT, Creativity, and
Organizational Learning
Shifting work and
employment relationships
Outsourcing
Downsizing
Managerial
Challenges

MANAGING FOR
EFFECTIVENESS
 Three basic levels of outcomes determine
organizational effectiveness:

MANAGING FOR
EFFECTIVENESS
• Productivity,
absenteeism,
employee
turnover, attitude
and stress
Individual
Outcome

MANAGING FOR
EFFECTIVENESS
• Productivity, absenteeism,
employee turnover, attitude
and stress
Individual
Outcome
• Development of norms that
govern the behavior of
individual group members
and create cohesiveness
Group
Outcome

MANAGING FOR
EFFECTIVENESS
• Productivity, absenteeism,
employee turnover, attitude and
stress
Individual
Outcome
• Development of norms that govern
the behavior of individual group
members and create cohesiveness
Group
Outcome
• Financial performance is generally
assessed only at the organization
level.
Organizational
Outcome

Attitude
 Attitude is a relatively stable cluster of
feelings, beliefs, and behavioral predisposing
(i.e., intentions) toward some specific target.
 Attitude – learned tendency
Attitudes consist of three major
components:
an evaluative component,
a cognitive component, and
a behavioral component.

Attitude
The Evaluative Component. The most
obvious component of attitudes is how we
feel about something. This, refers to our
liking or disliking of any particular target—
be it a person, thing, or event (what might
be called the attitude object, the focus of
the attitude).
One may feel positively or negatively
toward your boss, your co-workers, or the
company logo.
Emotion and feeling – I’m scared of
spiders

Attitude
The Cognitive Component.
Attitudes involve things you know about an
attitude object.
this involves a person’s belief / knowledge
about an attitude object. For example: “I
believe spiders are dangerous”.
These belief may be completely accurate
or inaccurate, but it comprises personal
knowledge that contributes to your
attitude.

Attitude
The Behavioral Component. Naturally,
what you believe about something and the
way you feel about it will influence the way
you are predisposed to behave.
the way the attitude we have influences
how we act or behave. For example: “I will
avoid spiders and scream if I see one”.
 Attitudes have a behavioral component—a
tendency to act in a certain way.

COMPANIES:
ORGANIZATIONAL
COMMITMENT
Concept of organizational commitment is
concerned with the degree to which
people are involved with their
organizations and are interested in
remaining within them.

I. Continuance Commitment
Have you ever stayed on a job because you just
don't want to bother to find a new one? If so, you
are already familiar with the concept of
continuance commitment. This refers to the
strength of a person's desire to remain working for
an organization due to his or her belief that it may
be costly to leave. The longer people remain in
their organizations, the more they stand to lose
what they have invested in the organization over
the years (e.g., retirement plans, close
friendships). Many people are committed to
staying on their jobs simply because they are
unwilling to risk losing these things.

II. Affective Commitment.
A second type of organizational commitment
is affective commitment--the strength of
people's desires to continue working for an
organization because they agree with its
underlying goals and values. People feeling
high degrees of affective commitment desire
to remain in their organizations because
they endorse what the organization stands
for and are willing to help it in its mission.

III. Normative Commitment.
This refers to employees' feelings of
obligation to stay with the organization
because of pressures from others.
People who have high degrees of
normative commitment are greatly
concerned about what others would think
of them for leaving.

POWER: HAVING AN IMPACT ON
OTHERS
If you were to think about the most effective
managers you have known, chances are
good that you'd recognize that they were all
pretty good at one important thing—getting
others to do as they wished.
That is, they have power over others—the
capacity to influence others in some
desired fashion.

Two major categories of
power—
that which comes from the
position that someone holds,
and
that which comes from the
person's individual qualities.

Influence That Comes with the
Office: Position Power
A great deal of the power that people
have in organizations comes from the
posts they hold in those organizations.
In other words, they are able to
influence others because of the formal
power associated with their jobs. This
is known as position power.

POWER: Position Power
Legitimate Power. The power that someone has
because others recognize and accept his or her
authority is known as legitimate power.
 Legitimate power applies only to the range of
behaviors that are recognized and accepted as
appropriate by the parties and institutions
involved.
Reward Power. Associated with holding certain
jobs comes the power to control the rewards others
receive.
Instructors have reward power over their students
insofar as they may reward them with high grades
and glowing letters of recommendation.
In the case of managers, the rewards available may
be either tangible (e.g., raises and promotions).

 Coercive Power. In contrast, power also results
from the capacity to control punishment.
 Although most managers do not like using the threat
of punishments, it is a fact of organizational life that
many people rely on coercion.
 Information Power. The fourth source of power
available to people by virtue of their positions is
based on the data and other knowledge at their
disposal.
 Traditionally, people in top positions have available
to them unique sources of information that are not
available to others (e.g., knowledge of company
performance, market trends, and so on).

Influence That Comes from the
Individual: Personal Power
Thus far, we've discussed power based
on an individual's position in an
organization. Although this is an
important source of power, it is not the
only one. People also derive power from
their own unique qualities or
characteristics. This is known as personal
power. There are four sources of
personal power: rational persuasion,
expert power, referent power, and
charisma.

Organizational Politics: Possible
Abuses of Power
 Underlying our discussion of power has been the
assumption that people attempt to influence others
so as to get the job done—that is, for the good of the
organization. Although this is generally true,
sometimes however, people purposely influence
others in ways that actually harm the organization,
but that help them personally.
 Such acts are known as organizational politics –
behaviors that are not officially approved by an
organization that people take to promote their own
self-interest at the expense of the organization's
interest. Politically motivated acts often represent
abuses of power.

Commitment
Consequences of Power
Reward
Power
Legitimate
Power
Coercive
Power
Expert
Power
Referent
Power
Resistance
Compliance
Sources
of Power
Consequences
of Power

Power Empowerment
 How to get it
 How to use it
 …without abusing it

Organizational Politics: Possible Abuses of
Power
 What Forms Do Organizational Politics
Take? To best understand organizational
politics, we must recognize its various forms.
 Specifically, five major techniques of
organizational politics are most often seen.
These are as follows.

Power
I. Restricting access to information.
Control others' access to information in
ways that enhance their own power.
For example, people may withhold
information that makes others look bad,
avoid contact with others who are
expected to press them for things they
don't want to say, and so on.

Power
II. Cultivating a favorable impression
People interested in being highly
influential tend to go out of their way to
engage in some degree of image
building – attempts to enhance the
goodness of one's impressions on
others. This may take the form of
associating oneself with others'
successful accomplishments and
drawing attention to one's own
successes. Leadstar - Dr. Gemechis Desta, OB (MBA)

Power
III. Developing a base of support.
To successfully influence others, it is
often useful to gain the support of others
in the organization. With this in mind,
managers may "lobby" for their ideas
before they officially present them at
meetings, and "call in favors" they have
done for others in the organization.

Power
IV. Blaming and attacking others.
A commonly used political tactic involves
finding a scapegoat (accused) — that is,
someone to put blame on for some
failure or wrongdoing. Explaining that
something is really someone else's fault,
making another "take the fall," gets the
real culprit (criminal) "off the hook" for
it—until the truth comes out, of course.

Power
V. Aligning with those more
powerful.
One of the most direct ways to gain
power is by associating oneself with
those that are higher in power. This may
be done by finding a more powerful
person to serve as one's mentor and by
banding together informally with others to
form coalitions. Leadstar - Dr. Gemechis Desta, OB (MBA)

How Do You Deal with Organizational
Politics?
 Given how fundamental the desire and need for
power appears to be among people, and how
differences in power are widespread in
organizations, it seems safe to say that
organizational politics is inevitable.
 And, as the effects of organizational politics
generally tend to be negative, this is not good
news. Although it may be impossible to totally
eliminate organizational politics, it is important for
managers to consider ways of minimizing the
effects of political behavior.

Power
How Do You Deal with Organizational Politics?
Clarify Job
Expectations
Eliminate
Org. Politics

Power
Clarify Job
Expectations
Open the
communication
Process
Eliminate
Org. Politics

Power
Clarify Job
Expectations
Open the
communication
Process
Be a Good Role Model
Eliminate
Org. Politics

Power
Clarify Job
Expectations
Open the
communication
Process
Be a Good Role Model
Directly confront and
deal with org.
politicians
Eliminate
Org. Politics

GROUPS AND TEAMS IN
ORGANIZATIONS

Groups
 People involve in coordinated interactions
between individuals working together for
some specific purpose. In other words, they
are groups.
 Social scientists have formally defined a
group as a collection of two or more
interacting individuals with a stable pattern
of relationships between them who share
common goals and who perceive
themselves as being a group.

Group Dynamics
Groups do a great deal of the work
performed in organizations.
In light of this, it makes sense to
understand the types of groups that exist
and the variables governing the inter-
relationships among them and
individuals—commonly referred to as
group dynamics.

Formal and Informal Groups
Formal Groups. Groups created
by the organization and that are
intentionally designed to direct
members toward some important
organizational goal are known as
formal groups.

Formal and Informal Groups
Informal Groups.
Informal groups develop naturally among
an organization's personnel without any
direction from the management of the
organization within which they operate.
One key factor in the formation of
informal groups is a common interest
shared by its members.

GROUP DEVELOPMENT OVER TIME:
THE FIVE-STAGE MODEL
All groups change over time as group
members come and go; group tasks and
goals change; and group members gain
experience in interacting with each other.
One well- known model of group
development is Bruce Wayne Tuckman’s
five-stage model.
The model’s stages are:

GROUP DEVELOPMENT OVER TIME: THE
FIVE-STAGE MODEL
Forming

FIVE-STAGE MODEL
Forming Storming

FIVE-STAGE MODEL
Forming Storming
Norming

FIVE-STAGE MODEL
Forming Storming
Norming Performing

FIVE-STAGE MODEL
Forming Storming Norming
Performing Adjourning

120
Group cohesiveness and performance
 Social interaction is a natural feature of human
behavior but ensuring harmonious working relationship
and effective teamwork is not an easy task.
 The manager's main concern is that members of a
work group co-operate in order to achieve the results
expected of them.
 Cohesive groups may result in:
 greater interaction between members,
 mutual help and social satisfaction,
 lower turnover and absenteeism and
 often higher production.

121
Cont’d …
Membership of a cohesive groups:
 can be a rewarding experience for the individual,
 can contribute to the promotion of morale and
 aid the release of creativity and energy.
 Members of a high morale group are more likely to think
of themselves as a group and work together effectively.
 Strong and cohesive work groups can, therefore, have
beneficial effects for the organization.

122
Factors Affecting Cohesiveness
In order to develop the effectiveness of work
groups the manager will be concerned:
 with those factors that contribute to group
cohesiveness, or
 that may cause frustration or disruption to the
operation of the group.
The manager needs to consider, therefore, both
the needs of individual members of staff, and
the promotion of a high level of group identity
and cohesion.

123
Factors Affecting Cohesiveness
 There are many factors which affects
group cohesiveness and performance,
which can be summarized under four
broad headings:
1. Membership
2. Work Environment
3. Organizational factors
4. Group Development and Maturity

124
Membership
(a) Size of the Group
(b) Compatibility of the members
(c) Performance of group members
Work Environment
(a) The nature of the task
(b) Physical setting
Organizational factors
(a) Management and leadership
(b) Personnel policies and procedures
(c) Previous Success

GROUP DYNAMICS: PEOPLE WORKING WITH
OTHERS
 To understand the dynamics of groups it is
essential to consider the way groups
influence individuals and the way
individuals influence groups.

OTHERS
 Group Norms: Unspoken Rules of Group
Behavior
 Groups know one important way in which groups
influence people—that is, by imposing ways of
thinking and acting that are considered acceptable.
 Such informal forces constitute a key aspect of
group dynamics known as norms. Specifically, a
norm is a generally agreed-upon set of roles that
guides the behavior of group members.
 Norms differ from organizational policies in that they
are informal and unwritten.

OTHERS
 Social Facilitation: Performing in the
Presence of Others
Sometimes people were found to perform
better in the presence of others than when
alone, and sometimes they were found to
perform better alone than in the presence
of others. This tendency for the presence
of others to enhance an individual's
performance at times and to impair it at
other times is known as social facilitation.

TEAMS: EMPOWERED WORK GROUPS
In recent years as organizations have been
striving to hone/improve their competitive
advantage, many have been organizing
work around specific types of groups known
as teams.
Because the team movement frequently
takes different forms, some confusion has
arisen regarding exactly what teams are.

Team is a group whose members have
complementary skills and are committed
to a common purpose or set of
performance goals for which they hold
themselves mutually accountable.

The Leader-Member Exchange
(LMX) Model: The Importance of
Being in the "In-Group"
As you know from experience, leaders
do not treat all their subordinates in the
same manner. This fact is central to an
approach known as the leader-member
exchange (LMX) model.

Leader-Member Exchange
(LMX) Model
This theory suggests that for
various reasons leaders form
different kinds of relationships with
various groups of subordinates.
In Group and
Out Group

In-group and out-group
 In particular, leaders often have a special
relationship with an inner circle of trusted
lieutenants, assistants and advisors, to whom they
give high levels of responsibility, decision
influence, and access to resources. This in-group
pay for their position. They work harder, are more
committed to task objectives, and share more
administrative duties. They are also expected to be
fully committed and loyal to their leader. The out-
group, on the other hand, are given low levels of
choice or influence.

Leading Teams: Special Considerations
This suggests that the role of team leader
is clearly very different than the
traditional, "command and control"
leadership role.

Leading Teams: Special Considerations
The special nature of teams makes the
leader's job very different.
Making the appropriate adjustments may
be extremely challenging—especially for
individuals who are well practiced in the
ways of traditional leadership.
Given the prevalence of teams in today's
work environment, the importance of
making the adjustments cannot be
overemphasized. Leadstar - Dr. Gemechis Desta, OB (MBA)

What is Motivation ?
 A need or desire that causes a person to act; to have
initiative, spirit or be enterprising.
 Factors which energize, direct and sustain employee
behavior.

What is employee motivation ?
Motivation can be defined
as “the inner force that
drives individuals to
accomplish personal and
organizational goals.”

Motivation
Motivation a managerial activity aiming to inspire
and encourage people to take required action.
The manager may have perfect plans, and
perfect controls however, if people do not work
their tasks with interest and enthusiasm, the
manager, can hardly accomplish organizational
goals.
Imagine a powerful car standing at the roadside
with its breaks on

Work = “can do“ factor + “will do“ factor
(Ability) (Willingness)
 Treating patients in proper way needs ability. That is
considered as a “can do “factor – these factors are
relatively easy and achievable through training – they
are necessary but not sufficient precursors/signs of
the behavior.
 The second basic concept for the behavior often is
labeled motivation (the will do factors). The secrets for
the success to the medical doctor lies in the will to
factors.

Motivation Process
Employee Motivation
140
Unsatisfied needs
Increased tension
Effort
Satisfied needs
Decreased tension
 Deprivation
 Functional Vs
Dysfunctional
 Outward behavior
 Goal attainment
 Calm state

The Classic Motivational Theories
Employee Motivation
141
Theory
 Hierarchy of Needs
 Theory ‘X’ & ‘Y’
 Two Factors Theory
 The ERG Theory
 The Three Needs
Theory (Ach., Pow,
Aff.)
 Equity Theory
 Expectancy Theory
Individual
 Abraham Maslow
 Douglas McGregor
 Frederic Hertzberg
 Fred Alderfer
 David McClelland
 J. Stacy Adams
 Victor Vroom

Methods for
Motivating Employees
Recognize individuals
Match people to jobs
Use goals
Make goals attainable

Why Rewards Often Fail to Motivate?
 Too much emphasis on monetary rewards
 Rewards lack an “appreciation effect”
 Too many one-size-fits-all rewards
 Use of one-shot rewards with a short-lived
motivational impact (short term)
 Continued use of de-motivating practices and
excessive executive compensation

Some of the Motivators
o Thanks personally, timely, often
& sincerely
o Take time to meet and listen to
staff
o Provide feedback
o Encourage new ideas and
initiative
o Explain how employee fits into
organization’s plans
Motivation

Continued…
o Involve employees in decisions
o Provide ownership in their work
o Recognize, reward, and promote based on
performance
o Give chance to learn new skills
o Celebrate successes!!!!

Managerial Approaches to
Motivating Employees
Job redesign
Involvement of employees
Quality of work life (QWL)
Management by objective (MBO) &
Performance appraisal

Organizational behavior ppt

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