Introduction to Organizational Behavior

Seven Foundation Competencies

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Managing Self
Managing Communication
Managing Diversity
Managing Ethics
Managing Across Cultures
Managing Teams
Managing Change

Definition: The study of human behavior, attitudes, and performance in

organizations.
Value of OB: Helps people attain the competencies needed to become effective
employees, team leaders/members, or managers
Competency = an interrelated set of abilities, behaviors, attitudes, and knowledge
needed by an individual to be effective in most professional and managerial
positions

OB - a field of study that investigates the impact that individuals, groups and
structure have on behaviour within organizations, for the purpose of applying
such knowledge toward improving an organizations effectiveness.

What Is an Organization?

A consciously coordinated social unit, composed of a group of people, which

functions on a relatively continuous basis to achieve a common goal or set of
goals.

Effective Employees
Absenteeism
Failure to report to work
Turnover
Voluntary and involuntary permanent withdrawal from the organization
Organizational citizenship behaviour
Discretionary behaviour that is not part of an employees formal job
requirements, but is helpful to the organization

Contributing Disciplines to the OB Field

Psychology
Sociology
Social Psychology
Anthropology
Political Science

Psychology
The science that seeks to measure, explain, and sometimes change the behavior of
humans and other animals
Psychology is the science that seeks to measure, explain, and sometimes change
the behavior of humans and other animals.
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 Early industrial/organizational
fatigue, boredom, and other factors relevant to working conditions
that could impede efficient work performance.
More recently,
learning, perception, personality, emotions, training, leadership
effectiveness, needs and motivational forces, job satisfaction,
decision-making processes, performance appraisals, attitude
measurement, employee selection techniques, work design, and job
stress

Sociology
The study of people in relation to their fellow human beings
Sociologists study the social system in which individuals fill their roles; that is,
sociology studies people in relation to their fellow human beings.
Their greatest contribution to OB is through their study of group behavior
in organizations, particularly formal and complex organizations

Social Psychology
Social psychology blends the concepts of psychology and sociology.
It focuses on the influence of people on one another.
Major areahow to implement it and how to reduce barriers to its
acceptance.
An area within psychology that blends concepts from psychology and sociology and that
focuses on the influence of people on one another

Anthropology
The study of societies to learn about human beings and their activities
Anthropology is the study of societies to learn about human beings and their
activities.
Anthropologists work on cultures and environments; for instance, they have
helped us understand differences in fundamental values, attitudes, and behavior
among people in different countries and within different organizations.

Political Science
Frequently overlooked
Political science studies the behavior of individuals and groups within a political
environment.

Contingency variables: It Depends!

Situational factors that make the main relationship between two variables changee.g.,
the relationship may hold for one condition but not another

Challenges and Opportunities for OB

Responding to Globalization
Increased foreign assignments
Working with people from different cultures
Coping with anti-capitalism backlash
Overseeing movement of jobs to countries with
low-cost labor
Managing people during the war on terror
Managing Workforce Diversity
Embracing diversity
Changing U.S. demographics
Implications for managers
Recognizing and responding to differences
Improving Quality and Productivity
Quality management (QM)
Process reengineering
Responding to the Labor Shortage
Changing work force demographics
Fewer skilled laborers
Early retirements and older workers
Improving Customer Service
Increased expectation of service quality
Customer-responsive cultures
Improving people skills
Empowering people
Stimulating innovation and change
Coping with temporariness
Working in networked organizations
Helping employees balance work/life conflicts
Improving ethical behavior
Managing people during the war on terrorism

Organizational Citizenship Behavior (OCB)

Discretionary behavior that is not part of an employees formal job requirements, but
that nevertheless promotes the effective functioning of the organization

Job Satisfaction
A general attitude (not a behavior) toward ones job; a positive feeling of one's job
resulting from an evaluation of its characteristics
Independent Variable
The presumed cause of some change in the dependent variable; major determinants of a
dependent variable

Basic OB Model

What Managers Do
Managers (or Administrators)
Individuals who achieve goals through other people
Managerial Activities
Make decisions
Allocate resources
Direct activities of others to attain goals

Organization
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

Planning
A process that includes defining goals, establishing strategy, and developing plans to
coordinate activities

Organizing
Determining what tasks are to be done, who is to do them, how the tasks are to be
grouped, who reports to whom, and where decisions are to be made

Leading
A function that includes motivating employees, directing others, selecting the most
effective communication channels, and resolving conflicts

Controlling
Monitoring activities to ensure they are being accomplished as planned and correcting
any significant deviations

Mintzbergs Managerial Roles

Management Skills
Technical Skills
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The ability to apply specialized knowledge or expertise

Human Skills
The ability to work with, understand, and motivate other people, both individually and
in groups
Conceptual Skills
The mental ability to analyze and diagnose complex situations

Foundations of Individual Behavior

Biographical Characteristics
Personal characteristics
Age
Gender
marital status
objective and easily obtained from personnel records.

Ability, Intellect, and Intelligence

Ability
An individuals capacity to perform the various tasks in a job.
Intellectual Ability
The capacity to do mental activities.
Multiple Intelligences
Intelligence contains four subparts: cognitive, social, emotional, and cultural.

Dimensions of Intellectual Ability

Number aptitude speedy and acc calculations

Verbal comprehension understand what is read or heard
Perceptual speed identify visual similarities and differences
Inductive reasoning identify logical sequence
in problem and solve it
Deductive reasoning use logic and assess
implications of argument
Spatial visualization to imagine how an object
looks if its position is changed
Memory retain and recall past experiences

Physical Abilities
The capacity to do tasks demanding stamina, dexterity, strength, and similar
characteristics.
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Nine Physical Abilities

Strength Factors
1. Dynamic strength
2. Trunk strength
3. Static strength
4. Explosive strength
Flexibility Factors
5. Extent flexibility
6. Dynamic flexibility
Other Factors
7. Body coordination
8. Balance
9. Stamina

Learning
Any relatively permanent change in behavior that occurs as a result of experience
Learning
Involves change
Is relatively permanent
Is acquired through experience

Theories of Learning
Classical Conditioning
A type of conditioning in which an individual responds to some stimulus that would not
ordinarily produce such a response.
Key Concepts
Unconditioned stimulus (meat)
Unconditioned response (salivation)
Conditioned stimulus (bell)
Conditioned response (salivation)
Classical Conditioning example
Taste aversion
If a flavor is followed by an illness experience, we will not consume the flavor in the
future
CS
+
UCS ----------> UCR
Taste
Toxic event
Nausea
CS ----->
Flavor

CR
Nausea

Respondent Conditioning Learning Curve

The more often the pairing occurs, the stronger the response
Early pairings are more important than later pairings

Extinction

If the conditioned stimulus is no longer followed by the unconditioned stimulus,

responding will gradually slow down and finally cease.
The conditioned stimulus no longer signals the onset of an important event so it is
ignored by the organism.

Operant Conditioning (B.F. Skinner)

A type of conditioning in which desired voluntary behavior leads to a reward or prevents
a punishment.
Behaviors are learned by making rewards contingent to behaviors.
Behavior that is rewarded (positively reinforced) is likely to be
repeated.
Behavior that is punished or ignored is less likely to be repeated.

Social-Learning Theory Albert Bandura (extension of operant conditioning)

People can learn through observation and direct experience.
Attentional: the attractiveness or similarity of the model
Retention: how well the model can be recalled
Motor reproduction: the reproducibility of the models actions
Reinforcement: the rewards associated with learning the model
behavior

Social Learning - Beyond Reinforcement

External reinforcement isnt the only way in which behavior is acquired,

maintained, or altered
We can also learn by observing, reading, or hearing about others behavior
We develop anticipated consequences for our behaviors
Even for behaviors were never engaged in

Our cognitive abilities give us the capability for insight and foresight
New patterns of behavior can be acquired in the absence of external
reinforcement
We can pay attention to what others do, and repeat their actions
i.e., We learn through observation, rather than through direct
reinforcement

Shaping Behavior
Systematically reinforcing each successive step that moves an individual closer to the
desired response.

Reinforcement - The administration of a consequence as a result of a

behavior.
Proper management of reinforcement can change the direction, level, and
persistence of an individuals behavior is required to change behavior.
Some rewards are more effective than others.
The timing of reinforcement affects learning speed and permanence.
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Methods of Shaping Behavior

1.
2.
3.
4.

Positive reinforcement following a response with something pleasant

Negative reinforcement following a response by termination or withdrawal
Punishment- causing an unpleasant condition to eliminate an undesirable behavior
Extinction eliminating any reinforcement that is maintaining a behavior

Schedules of Reinforcement
Continuous reinforcement - desired behaviour is reinforced each time it is
demonstrated. E.g. compliments
Intermittent reinforcement - desired behaviour is reinforced often
enough to
make the behaviour worth repeating but not every time it is demonstrated
Types of intermittent reinforcement
Fixed-interval schedule
Rewards are spaced at uniform time intervals- salary
Variable-interval schedule
Rewards are distributed at random times; reinforcements are unpredictable
e.g weekly pay packets
Fixed-ratio schedule
Rewards are initiated after a fixed or constant number of responses (e.g.
payment for piece-rate workers) e.g piece rate pay
Variable-ratio schedule
Rewards are varied relative to the behaviour of the individual. E.g
commissioned sales
Reinforcement Nature of reinforcement
Scheduled
Effect on Behaviour
Continuous

Reward given after

Fast learning of new
each desired behaviour behaviour but rapid
extinction

Fixed-interval

Reward given at fixed

time intervals

Average and irregular

performance with rapid
extinction

Variable-interval Reward given at

variable times

Moderately high and stable

performance with slow
extinction

Fixed ratio

Reward given at fixed

amounts of output

High and stable

performance attained
quickly but also with rapid
extinction

Variable-ratio

Reward given at
variable amounts of
output.

Very high performance with

slow extinction.

Behavior Modification
OB Mod
The application of reinforcement concepts to individuals in the work setting.
Five Step Problem-Solving Model
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1.
2.
3.
4.
5.

Identify critical behaviors

Develop baseline data
Identify behavioral consequences
Develop and apply intervention
Evaluate performance improvement

Personality and Emotions

Personality
The sum total of ways in which an individual reacts and interacts with others.

Combines a set of physical and mental characteristics that reflect how a

person looks, thinks, acts, and feels.
Personality Traits
Enduring characteristics that describe an individuals behavior.

Sixteen primary traits

Reserved - Outgoing
Less intelligent - More intelligent
Affected by feelings- Emotionally stable
Submissive - Dominant
Serious Happy-go-lucky
Expedient - conscientious
Timid - Venturesome
Tough-minded - Sensitive
Trusting - Suspicious
Practical - Imaginative
Forthright - Shrewd
Self-assured-apprehensive
Conservative- Experimenting
Group dependent Self-sufficient
Uncontrolled - Controlled
Relaxed - Tense

MBTI Instrument

Isabel Myers and Katherine Briggs (mother-daughter team)- A personality test

that taps four characteristics and classifies people into 1 of 16 personality
types.

MBTI tool - indicator of personality type - proven to be remarkably reliable and

valid
Represents the result of over 50 years of research
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Is used globally in both education and corporate settings; over 2 million

people each year
Myers-Briggs Type Indicator
Type of Social Interaction
Extrovert (E)
Introvert (I)
Preference for gathering data
Sensing (S)
Intuitive (N)
Preference for Decision Making
Feeling (F)
Thinking (T)
Style of Decision Making
Perceptive (P)
Judgmental (J)

Sixteen type of personalities

ISTJ
ISFJ
INFJ
INTJ
ISTP
ISFP
INFP
INTP
ESTP
ESFP
ENFP
ENTP
ESTJ
ESFJ
ENFJ
ENTJ

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Big Five Model of Personality Dimensions

Extroversion
Sociable, gregarious, and assertive
Agreeableness
Good-natured, cooperative, and trusting.
Conscientiousness
Responsible, dependable, persistent, and organized.
Emotional Stability
Calm, self-confident, secure (positive) versus nervous, depressed, and insecure (negative).
Openness to Experience
Imaginativeness, artistic, sensitivity, and intellectualism.

7 Major Personality Attributes influencing OB

Core self-evaluation
Machiavellianism
Narcissism
Self-monitoring
Propensity for risk taking
Type A personality
Proactive personalities

Core Self-Evaluation: Two Main Components

Self-Esteem
Individuals degree of liking or disliking themselves, degree of thinking they are worthy or
unworthy as a person

Locus of Control
The degree to which people believe they are masters of their own fate
Internals (Internal locus of control)
Individuals who believe that they control what happens to them
Externals (External locus of control)
Individuals who believe that what happens to them is controlled by outside forces
such as luck or chance
Machiavellianism(Mach)
Degree to which an individual is pragmatic, maintains emotional distance, and believes that ends
can justify means.
They flourish when:
Interact face to face
Minimum number of rules
Less emotional involvement
Do high Machs make good employees?

Self-Monitoring
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A personality trait that measures an individuals ability to adjust his or her behavior to external, situational
factors.

Narcissism
Grandiose sense of self-importance
Requires excessive admiration
Sense of entitlement
Arrogant
Rated worse leaders
Selfish & exploitive
Less effective at work

Propensity for risk taking

Willingness to take chances

Impact on how long it takes managers to make a decision

Proactive personalities

Identify opportunities
Show initiative
Persevere until change occurs
Seen as leaders and change agents
Have entrepreneurial initiative

Personality Types

Achieving Personality-Job Fit

Personality Types
Realistic
Investigative
Social
Conventional
Enterprising
Artistic
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Hollands Theory of PersonalityJob Fit

Type

Personality

Occupations

Realistic

Shy, Stable, Practical

Mechanic, Farmer,
Assembly-Line Worker

Investigative

Analytical, Independent

Biologist, Economist,
Mathematician

Social

Sociable, Cooperative

Social Worker,
Teacher, Counselor

Conventional

Practical, Efficient

Accountant, Manager
Bank Teller

Enterprising

Ambitious, Energetic

Lawyer, Salesperson

Artistic

Imaginative, Idealistic

Painter, Writer,
Musician

Emotions

People differ in emotional reactions, even to the same event, so emotions are useful in making
distinctions between persons
Emotions include three components
Associated with distinct subjective feelings or affects
Accompanied by bodily changes, mostly in the nervous system
Accompanied by distinct action tendencies, or increases in probabilities of certain
behaviors

Gender and Emotions

Women
Can show greater emotional expression.
Experience emotions more intensely.
Display emotions more frequently.
Are more comfortable in expressing emotions.
Are better at reading others emotions.
Men
Believe that displaying emotions is inconsistent with the male image.
Are innately less able to read and to identify with others emotions.
Have less need to seek social approval by showing positive emotions.

Negative Workplace Emotions

Negative emotions can lead to a number of deviant workplace behaviours. Categories:

Production (leaving early, intentionally working slowly)
Property (stealing, sabotage)
Political (gossiping, blaming co-workers)
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Personal aggression (sexual harassment, verbal abuse)

OB Applications of Understanding Emotions

Ability and Selection

Emotions affect employee effectiveness.
Decision Making
Emotions are an important part of the decision-making process in organizations.
Motivation
Emotional commitment to work and high motivation are strongly linked.
Leadership
Emotions are important to acceptance of messages from organizational leaders.
Interpersonal Conflict
Conflict in the workplace and individual emotions are strongly intertwined.
Customer Services
Emotions affect service quality delivered to customers which, in turn, affects customer
relationships.
Deviant Workplace Behaviors
Negative emotions lead to employee deviance (actions that violate norms and threaten the
organization).
Productivity failures
Property theft and destruction
Political actions
Personal aggression

Perception
Perception
A process by which individuals organize and interpret their sensory impressions in order to give meaning
to their environment.
Peoples behavior is based on their perception of what reality is, not on reality itself.
The world as it is perceived is the world that is behaviorally important.

Person Perception: Making Judgments About Others

Attribution Theory
When individuals observe behavior, they attempt to determine whether it is internally or externally caused.
Distinctiveness: Shows different behaviors in different situations.
Consensus: Response is the same as others to same situation.
Consistency: Responds in the same way over time.
Errors and Biases in Attributions

Fundamental Attribution Error

The tendency to underestimate the influence of external factors and overestimate the influence of internal
factors when making judgments about the behavior of others

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Self-Serving Bias
The tendency for individuals to attribute their own successes to internal factors while putting the blame for
failures on external factors
In general, we tend to blame the person first, not the situation.

Frequently Used Shortcuts in Judging Others

Selective Perception
People selectively interpret what they see on the basis of their interests, background, experience, and
attitudes.
Halo Effect
Drawing a general impression about an individual on the basis of a single characteristic
Contrast Effects
Evaluation of a persons characteristics that are affected by comparisons with other people recently
encountered who rank higher or lower on the same characteristics
Projection
Attributing ones own characteristics to other people
Stereotyping
Judging someone on the basis of ones perception of the group to which that person belongs

Specific Applications of Shortcuts in Organization

Employment Interview
Perceptual biases affect the accuracy of interviewers judgments of applicants.
Performance Expectations
Self-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees
reflects preconceived leader expectations about employee capabilities.
Performance Evaluations
Appraisals are subjective perceptions of performance.
Employee Effort
Assessment of individual effort is a subjective judgment subject to perceptual distortion
and bias.
Employee Loyalty
Employee support towards the organization.
Whistle-Blowers
Individuals who report unethical practices by their employer to outsiders.

Factors that Influence Perception

Factors in the situation
Time
Work setting
Social setting
Factors in the Perceiver
Attitudes
Motives
Interests
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 Experience
Expectations
Factors in the target
Novelty
Motion
Sounds
Size
Background
Proximity

Motivation
The willingness to do something, conditioned by this actions ability to satisfy some
need for the individual
Motivation
The processes that account for an individuals intensity, direction, and persistence of effort toward
attaining a goal.
Key Elements
Intensity: how hard a person tries
Direction: toward beneficial goal
Persistence: how long a person tries

Basic motivational concepts

1. Motivationthe forces within the individual that account for the level, direction, and
persistence of effort expended at work.
2. Rewarda work outcome of positive value to the individual
3. Extrinsic rewardsvalued outcomes given to someone by another person.
4. Intrinsic rewardsvalued outcomes that occur naturally as a person works on a task.
Needs
Unfulfilled physiological and psychological desires of an individual.
Explain workplace behavior and attitudes.
Create tensions that influence attitudes and behavior.
Good managers and leaders facilitate employee need satisfaction.

Hierarchy of needs theory

Developed by Abraham Maslow.
Lower-order and higher-order needs affect workplace behavior and attitudes.
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Lower-order needs:
Physiological, safety, and social needs.
Desires for physical and social well being.
Higher-order needs:
Esteem and self-actualization needs.
Desire for psychological growth and development.
Physiological- includes hunger, thirst, shelter, sex and other bodily needs
Safety - includes security and protection from physical and emotional harm
Social-includes affection, belongingness acceptance, and friendship
Esteem- includes internal esteem factors such as self-respect, autonomy, and achievement; and external
esteem factors such as status, recognition, and attention
Self-actualization- the drive to become what one is capable of becoming; includes growth, achieving
ones potential, and self-fulfillment

Theory X and Theory Y (Douglas McGregor)

Theory X
Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and
coerced to perform.
Theory Y
Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise selfdirection and self-control when committed to a goal.
Douglas McGregor proposed two distinct views of human beings: one basically negative, labeled
Theory X, and the other basically positive, labeled Theory Y.

Theory X
The assumption that employees dislike work, are lazy, dislike responsibility, and must be
coerced to perform.

Theory Y
The assumption that employees like work, are creative, seek responsibility, and can
exercise self-direction.

Herzbergs Two-Factor Theory

Hygiene Factors
Quality of supervision
Rate of pay
Company policies
Working conditions
Relations with others
Job security
Motivational Factors
Career Advancement
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Personal growth
Recognition
Responsibility
Achievement

McClelland's Theory of Needs

Need for achievement (nAch) - drive to excel

Need for power (nPow) - the need to make others behave in a way they would not have behaved
otherwise
Need for affiliation (nAff) - the desire for friendly and close interpersonal relationships

Organizational Behavior Modification (OB Mod)

Application in organizations of the principles of behavior modification.
This is Process Theories of Motivation since it provide perspectives on the dynamics by which
employees can be motivated.

OB MOD Organizational Applications

Relies on the Law Of Effect -person tends to repeat behavior that is accompanied by favorable
consequences (reinforcement) and tends not to repeat behavior that is accompanied by
unfavorable consequences (punishment)
Well Pay- Reduce absenteeism by rewarding attendance.
Employee Discipline- The use of punishment can be counter-productive.
Developing Training Programs- OB MOD methods improve training effectiveness.
Self-management - Reduces the need for external management control.

Limitations of behavior modification

Most successful when applied to simple tasks

For the more complex tasks in professional and managerial work, feedback typically has the
strongest effect on work performance, followed by social recognition and then money
OB Mod ignores thoughts and feelings.
OB Mod may not explain complex behaviors that involve thinking and feeling.
Stimuli may not be consciously given as a means of shaping behavior.

Employee Involvement Program

A participative process that uses the entire capacity of employees and is designed to encourage
increased commitment to the organisations success
Allowing autonomy and control

Participative Management
Process in which subordinates share a significant degree of decision-making power with their
immediate superiors
Everyone is involved
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But involvement means that you need to have knowledge on the subject and so can contribute
accordingly
And you can be trusted with information
Representative Participation
Workers participate in organisational decision making through a small group of
representative employees.
Most widely legislated form of employee involvement
Two common forms work councils and board representative
Works Councils
Groups of nominated or elected employees who must be consulted when management
makes decisions involving personnel
Board Representative
A form of representative participation; employees sit on a companys board of directors and
represent the interests of the firms employees.

Flaws does the trickle down to staff at the bottom

Employee Stock Ownership Plans (ESOPs)

Qualified, defined contribution employee benefit plan - required to invest primarily in the
companys securities
Employee ownership occurs when a corporation is owned in whole or in part by its employees.
Employees are usually given a share of the corporation after a certain length of employment or
they can buy shares at any time.
Adopt profit sharing where the profits of the corporation are shared with the employees.
Increases production, profitability and improve employees' dedication and sense of ownership.
Quality Circle
Voluntary groups of employees who work on similar tasks or share an area of responsibility
They agree to meet on a regular basis to discuss & solve problems related to work.
They operate on the principle that employee participation in decision-making and problem-solving
improves the quality of work
Characteristics
Volunteers
Set Rules and Priorities
Decisions made by Consensus
Use of organized approaches to Problem-Solving

Conflict

Conflict A process that begins when one party perceives that another party has negatively
affected, or is about to negatively affect, something that the first party cares about.
Encompasses a wide range of conflicts that people experience in organizations
Incompatibility of goals
Differences over interpretations of facts
Disagreements based on behavioral expectations
Transitions in Conflict Thought

Traditional View of Conflict

The belief that all conflict is harmful and must be avoided.
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Causes:
Poor communication
Lack of openness
Failure to respond to employee needs
Transitions in Conflict Thought

Human Relations View of Conflict

The belief that conflict is a natural and inevitable outcome in any group.

Interactionist View of Conflict

The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group
to perform effectively.
Functional versus Dysfunctional Conflict
Functional Conflict
Conflict that supports the goals of the group and improves its performance.
Dysfunctional Conflict
Conflict that hinders group performance.
Types of Conflict
Task Conflict
Conflicts over content and goals of the work.
Relationship Conflict
Conflict based on interpersonal relationships.
Process Conflict
Conflict over how work gets done.
The Conflict Process

Stage I: Potential Opposition or Incompatibility

Communication
Semantic difficulties, misunderstandings, and noise
Structure
Size and specialization of jobs
Jurisdictional clarity/ambiguity
Member/goal incompatibility
Leadership styles (close or participative)
Reward systems (win-lose)
Dependence/interdependence of groups
Personal Variables
Differing individual value systems
Personality types
Stage II: Cognition and Personalization
Perceived Conflict
Awareness by one or more parties of the existence of conditions that create opportunities for conflict to
arise.
Felt Conflict
Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility.
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Stage III: Intentions

Intentions
Decisions to act in a given way.
Cooperativeness:
Attempting to satisfy the other partys concerns.
Assertiveness:
Attempting to satisfy ones own concerns.

Stage III: Intentions

Competing
A desire to satisfy ones interests, regardless of the impact on the other party to the conflict.
Collaborating
A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties.
Avoiding
The desire to withdraw from or suppress a conflict.
Stage III: Intentions
Accommodating
The willingness of one party in a conflict to place the opponents interests above his or her own.
Compromising
A situation in which each party to a conflict is willing to give up something.
Conflict Management
The use of resolution and stimulation techniques to achieve the desired level of conflict.
Stage V: Outcomes
Functional Outcomes from Conflict
Increased group performance
Improved quality of decisions
Stimulation of creativity and innovation
Encouragement of interest and curiosity
Provision of a medium for problem-solving
Creation of an environment for self-evaluation and change
Creating Functional Conflict
Reward dissent and punish conflict avoiders.
Dysfunctional Outcomes from Conflict
Development of discontent
Reduced group effectiveness
Retarded communication
Reduced group cohesiveness
Infighting among group members overcomes group goals
Conflict Management Techniques

Conflict Resolution Techniques

Communication
Bringing in outsiders
Restructuring the organization
Appointing a devils advocate

Conflict Options

Win-Lose
Lose-Lose
Compromise
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Win-Win

Win-Lose
In Win Lose, one party gets what he or she wants, whereas the other comes up short.

Power is the distinguishing characteristic in win-lose problem solving, for it necessary to defeat an
opponent to get what one wants.

Lose-Lose
Neither party is satisfied with the outcome.

Most of us have seen battles of pride in which both parties strike out and both suffer.

Compromise
Compromise give both parties some of what they wanted, though both sacrifice part of their goals.

Although compromises may be the best obtainable result in some conflicts, its important to realize
that both people in a dispute can often work together to find much better solutions.

Win Win
The goal is to find a solution that satisfies the needs of everyone involved.
Not only do the parties avoid trying to win at the others expense, but they also believe that by
working together it is possible to find a solution that goes beyond mere compromise and allows all
parties to reach their goal in the conflict.
Competition
Plus
The winner is clear
Winners usually experience gains
Minus
Establishes the battleground for the next conflict
May cause worthy competitors to withdraw or leave the organization
Accommodation
Plus
Curtails conflict situation
Enhances ego of the other
Minus
Sometimes establishes a precedence
Does not fully engage participants
Compromise
Plus
Shows good will
Establishes friendship
Minus
No one gets what they want
May feel like a dead end
Collaboration
Plus
Everyone wins
Creates good feelings
Minus
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Hard to achieve since no one knows how

Often confusing since players can win something they didnt know they wanted

Tips for Managing Workplace Conflict

Build good relationships before conflict occurs

Do not let small problems escalate; deal with them as they arise
Respect differences
Listen to others perspectives on the conflict situation
Acknowledge feelings before focussing on facts
Focus on solving problems, not changing people
If you cant resolve the problem, turn to someone who can help
Remember to adapt your style to the situation and persons involved

STRESS MANAGEMENT
Stress
A dynamic condition in which an individual is confronted with an opportunity, constraint, or demand
related to what he or she desires and for which the outcome is perceived to be both uncertain and
important.
Moderate levels of stress may actually improve performance and efficiency

Too little stress may result in boredom

Too much stress may cause an unproductive anxiety level

EUSTRESS
Eustress or positive stress occurs when your level of stress is high enough to motivate you to move into
action to get things accomplished.
DISTRESS or negative stress occurs when your level of stress is either too high or too low and your body
and/or mind begin to respond negatively to the stressors.
ALARM STAGE
As you begin to experience a stressful event or perceive something to be stressful psychological changes
occur in your body. This experience or perception disrupts your bodys normal balance and immediately
your body begins to respond to the stressor(s) as effectively as possible.
EXAMPLES
l Cardiac - increased heart rate
l Respiratory - increased respiration
l Skin - decreased temperature
l Hormonal - increased stimulation of adrenal genes which produce an adrenal rush.
RESISTANCE STAGE
During this stage your body tries to cope or adapt to the stressors by beginning a process of repairing any
damage the stressor has caused. Your friends, family or co-workers may notice changes in you before you
do so it is important to examine their feedback to make sure you do not reach overload.
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EXAMPLES
l Behavior indicators include: lack of enthusiasm for family, school, work or life in general,
withdrawal, change in eating habits, insomnia, hypersomnia, anger, fatigue.
l

Cognitive Indicators include: poor problem solving, confusion, nightmares, hyper-vigilance.

EXHAUSTION STAGE
During this stage the stressor is not being managed effectively and the body and mind are not able to
repair the damage.
EXAMPLES
Digestive disorders, withdrawal, headaches, tension, insomnia, loss of temper.
Work Stress and Its Management
Constraints
Forces that prevent individuals from doing what they desire.
Demands
The loss of something desired.

Potential Sources of Stress

Environmental Factors
Economic uncertainties of the business cycle
Political uncertainties of political systems
Technological uncertainties of technical innovations
Terrorism in threats to physical safety and security
Organizational Factors
Task demands related to the job
Role demands of functioning in an organization
Interpersonal demands created by other employees
Organizational structure (rules and regulations)
Organizational leadership (managerial style)
Organizations life stage (growth, stability, or decline)
Individual Factors
Family and personal relationships
Economic problems from exceeding earning capacity
Personality problems arising for basic disposition
Individual Differences
Perceptual variations of how reality will affect the individuals future.
Greater job experience moderates stress effects.
Internal locus of control lowers perceived job stress.
Strong feelings of self-efficacy reduce reactions to job stress.

Inverted-U Relationship between Stress and Job Performance

Managing Stress

Individual Approaches
Implementing time management
Increasing physical exercise
Relaxation training
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Expanding social support network

Organizational Approaches
Improved personnel selection and job placement
Training
Use of realistic goal setting
Redesigning of jobs
Increased employee involvement
Improved organizational communication
Offering employee sabbaticals
Establishment of corporate wellness programs

Crisis Management
Crisis- a major, unpredictable event that threatens to harm an organization and its stakeholders.
THREE ELEMENTS
(a) a threat to the organization
(b) element of surprise
(c) a short decision time
Crisis Management Plan
Methods used to respond to both the reality and perception of crises
Involves establishing metrics to define what scenarios constitute a crisis and should consequently
trigger the necessary response mechanisms
Crisis Management Model
Successfully diffusing a crisis requires an understanding of how to handle a crisis before it
occurs.
Gonzalez-Herrero and Pratt created a four-phase crisis management model process that includes
issues management
planning-prevention
the crisis
post-crisis

Contingency Planning

Preparing contingency plans in advance, as part of a crisis management plan, is the first step to
ensuring an organization is appropriately prepared for a crisis
management teams can rehearse a crisis plan by developing a simulated scenario to use as a drill

Examples of organizational crises

Bribery
Hostile Takeover
Terrorist Attack
Copyright infringement
Vehicular fatality
Information sabotage
Product tampering
Natural disaster that destroys organizational office
Computer tampering
Sexual harassment
Confidential data loss
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Product/service boycott
Malicious rumor
Hazardous material leak
Plant explosion
Personnel assault
Assault of customers
Counterfeiting
Natural disaster that destroys corporate headquarters
Natural disaster that eliminates key stakeholders

INTERPERSONAL SKILLS
Transactional Analysis
Developed by Eric Berne who believed that the majority of our life experiences are recorded in our
subconscious minds in an unaltered fashion and become a part of the way we behave
The behavior is subconsciously designed to get reactions and determine how others feel
about us.
A method of dealing with behavioral disorders
Can be used to manage classroom behavior if we understand that childrens acceptable and
unacceptable behavior is designed to ascertain how others feel about them
Ego States
An EGO state is a consistent pattern of feeling and experience, related to a corresponding
pattern of behavior
Eric Berne states that each person has 3 Ego States
The Parent
The Adult
The Child
Transactional Analysis
Four basic life scripts:
Im OK, youre OK ideal
Im OK, youre not OK get away from me
Im not OK, youre OK Ill never get anywhere
Im not OK, youre not OK get rid of each other
Im OK, youre OK
Cooperate, share
You believe in yourself and others, are trusting and tend to get on with life
Im not OK, youre OK
Submit to, concede
You have a low opinion of your own value and poor self esteem; lack self confidence and expect
things to go wrong A negative outlook tends to lead to a self fulfilling prophesy and you often lose
out in situations
Im OK, youre not OK
Compete, aggression
You will tend to be competitive. You may not cope well with failure, look down at others,
blame other people and see them as cause of your failure
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Im not OK, youre not OK

Avoid
Life may seem to be futile and that nothing can be done to improve things. A life of rejecting and
feeling rejected
Fundamental Ideas
Three Ego States
Parent Ego State
Child Ego State
Adult Ego State
Four Life Positions
Im not OK; youre OK
Im not OK; youre not OK
Im OK; youre not OK
Im OK; youre OK
Individuals need to feel adequate
The Three Ego States
Parent Ego State It consists of experiences from the first five years in life. It is the state from
which behaviors to control others are employed.
Child Ego State It is recorded during the parent ego state. State when feelings rule.
Adult Ego State By monitoring the parent and child ego states, it alters automatic behaviors that
would normally occur.

Johari Window

The Johari Window is a communication model that can be used to improve understanding between
individuals.
Developed by Joseph Luft and Harry Ingham (the word Johari comes from Joseph Luft and
Harry Ingham).

Contains 4 quadrants- Open, Hidden, Blind & Unknown.

It is used to improve understanding between individuals or groups.

The Johari Window

The Johari window classifies an individuals relating to others according to four quadrants
(or windowpanes).
Quadrant 1, the open quadrant
Quadrant 2, the blind quadrant
Quadrant 3, the hidden area
Quadrant 4, the area of the unknown

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Quadrant 1: Open Area

What is known by the person about him/herself and is also known by others.
Quadrant 2: Blind Area, or "Blind Spot"
What is unknown by the person about him/herself but which others know. This can be simple
information, or can involve deep issues (for example, feelings of inadequacy, incompetence,
unworthiness, rejection) which are difficult for individuals to face directly, and yet can be seen by
others.
Quadrant 3: Hidden or Avoided Area
What the person knows about him/herself that others do not.
Quadrant 4: Unknown Area
What is unknown by the person about him/herself and is also unknown by others.
Movement along the horizontal and vertical dimensions enables individuals to change their
interpersonal styles by Increasing the amount of communication to the public area
Individuals can build trust between themselves by disclosing information about themselves.
They can learn about themselves and come to terms with personal issues with the help of feedback
from others.

LEADERSHIP
Process of influencing others to achieve organisational goals.
Who is a Leader?
A Leader is someone in authority to lead others to accomplish a goal(s).
A leader needs to be able to motivate others to accomplish a goal(s) while at the same time
encourage others to work toward their own professional goals.

Managers are people who do things right, while leaders are people who do the right thing.
Warren Bennis

Leadership
The ability to influence a group toward the achievement of goals.
Management
Use of authority inherent in designated formal rank to obtain compliance from organizational members.

Leaders vs. Managers

LEADERS:
l innovate
l focus on people
l inspire trust
l have a long-range view
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l ask what and why

l have eyes on horizon
l originate
l challenge status quo
l do the right thing
MANAGERS:
l administrate
l focus on systems and structures
l rely on control
l have a short-range view
l ask how and when
l have eyes on bottom line
l initiate
l accept status quo
l do things right

Foundations For Effective Leadership

Power
the ability to get others to do what you want them to do
Reward Power
The capacity to offer something of value as a means of influencing other people
Coercive Power
The capacity to punish or withhold positive outcomes as a means of influencing other
people.
Legitimate Power
The capacity to influence other people by virtue of formal authority or the rights of office.
Expert Power
The capacity to influence other people by virtue of specialized knowledge.
Referent Power
The capacity to influence other people because of their desire to identify personally with
you

Leadership Styles

Autocratic Style
Acts in unilateral command and control fashion
Human Relation Style
Emphasizes people over tasks
Democratic Style
Encourages participation with an emphasis on both task accomplishments
and development of people
Lassize-faire Style
Is low on both tasks and people

Autocratic= task oriented; come on, weve got to get this job done & this is how we will do it
Democratic= balances concern with task & employee we should get together & figure out the best
way to get this done
Laissez-faire=concerned with employee; people oriented; dont worry about whether or not this
gets done, just do it if and when you feel like it
Autocratic= Does not share authority with employees
Democratic= Shares responsibility & authority with employees
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Laissez-faire= Gives away authority to employees

Autocratic= Emphasis is on policies
Democratic= Enforces policies but with concern for employees
Laissez-faire= Puts employees before policies

Leadership Styles: How Leader Gets Job Done

Autocratic= Tells employees what to do; does not seek their input; can be very efficient
Democratic= Seeks input from employees and encourages problem solving; can be time
consuming if people do not stay on task
Laissez-faire= Tries to please everyone; very dysfunctional
Leadership Styles: What Gets Done
Autocratic= Will probably reach goals
Democratic= Goal might be achieved; if there has been staff input can create positive feelings
Laissez-faire= Probably nothing
Leadership Styles: When Style Can Be Used
Autocratic= Crisis situations, code situations, emergencies
Democratic= Daily nursing situations, meetings, committees, review of care plans
Laissez-faire= When agency goals/policies are not a consideration
Leadership Styles: Problems With Each
Autocratic= Employees feel that they have no say so
Democratic= In many situations it is not feasible or reasonable to consider everyones
perspective. Can lead to chaos & confusion; can delay progress
Laissez-faire= No one is at the wheel; complete chaos; nothing gets done; agencies &
organizations will not survive w/ this type of leadership
When to use Autocratic
New, untrained employees
Employees do not respond to any other leadership style
High-volume production needs
Limited time for decision making
Managers power is challenged by an employee
Bureaucratic
Manager manages by the book

Everything must be done according to procedure or policy

If it isnt covered by the book, the manager refers to the next level above him or her

Police officer more than leader

When to use Bureaucratic

Performing routine tasks
Need for standards/procedures
Use of dangerous or delicate equipment
Safety or security training being conducted
Tasks that require handling cash
When to use Democratic
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To keep employees informed

To encourage employees to share in decision-making and problem-solving
To provide opportunities for employees to develop a high sense of personal growth and job
satisfaction
Complex problems that require a lots of input
To encourage team building and participation.

When to use Laissez-Faire

Employees are highly skilled, experienced, and educated
Employees have pride in their work and the drive to do it successfully on their own
Outside experts, such as staff specialists or consultants are being used
Employees are trustworthy and experienced

Trends In Leadership Development

Charismatic Leader
develops special leaderfollower relationships and inspires followers in extraordinary
ways.
Transactional Leader
directs the efforts of others through tasks, rewards, and structures.
Transformational Leader
Inspires Enthusiasm and Extraordinary Performance

Traits Theories of Leadership

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from
nonleaders.
Leadership Traits:
Ambition and energy
The desire to lead
Honest and integrity
Self-confidence
Intelligence
High self-monitoring
Job-relevant knowledge

Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from nonleaders.
Trait theory:
Leaders are born, not made.
Behavioral theory:
Leadership traits can be taught.

Ohio State Studies

Initiating Structure
The extent to which a leader is likely to define and structure his or her role and those of sub-ordinates in
the search for goal attainment.
Consideration
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The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for
subordinates ideas, and regard for their feelings.

University of Michigan Studies

Employee-Oriented Leader
Emphasizing interpersonal relations; taking a personal interest in the needs of employees and accepting
individual differences among members.
Production-Oriented Leader
One who emphasizes technical or task aspects of the job.

The Managerial Grid

(Blake and Mouton)

Trust: The Foundation of Leadership

Trust
A positive expectation that another will notthrough words, actions, or decisionsact opportunistically.
Trust is a history-dependent process (familiarity) based on relevant but limited samples of experience
(risk).
Dimensions of Trust
Integrity
honesty and truthfulness.
Competence
an individuals technical and interpersonal knowledge and skills.
Consistency
an individuals reliability, predictability, and good judgment in handling situations.
Loyalty
the willingness to protect and save face for another person.
Openness
reliance on the person to give you the full truth.

Contingency Models of Leadership

Situational favorableness:
The appropriate leadership style depends on the combination of three contingency variables.
Contingency Theories of Leadership
Four leadership styles in path-goal theory
Directive
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Let followers know what is expected, schedule work for them, give specific
guidance
Supportive
Be friendly and show concern for needs of followers
Participative
Consult with followers and use their suggestions to make decisions
Achievement-oriented
Set challenging goals and expect followers to perform at their highest levels

Transactional and Transformational Leadership

Transactional Leaders
Leaders who guide or motivate their followers in the direction of established goals by clarifying role and
task requirements.
Transformational Leaders
Leaders who provide individualized consideration and intellectual stimulation, and who possess charisma.
Contingent Reward
Management by Exception (active)
Management by Exception (passive)
Laissez-Faire
Charisma
Inspiration
Intellectual Stimulation
Individual Consideration
Leadership Traits
Intelligence
More intelligent than non-leaders
Scholarship
Knowledge
Being able to get things done
Physical
Doesnt see to be correlated
Personality
Verbal facility
Honesty
Initiative
Aggressive
Self-confident
Ambitious
Originality
Sociability
Adaptability

Power and Politics

Power
A capacity that A has to influence the behaviour of B so that B acts in accordance with As
wishes.
Dependency: Bs relationship to A when A possesses something that B requires
Politics
34

Behaviour to influence or attempt to influence the distribution of advantages and

disadvantages within the organization.
Coercive power
The person can make things difficult for people, and you want to avoid getting him or her
angry.
Power that is based on fear.
Reward power
The person is able to give special benefits or rewards to people, and you find it
advantageous to trade favors with him or her.
Legitimate power
The person has the right, considering his or her position and your job responsibilities, to
expect you to comply with legitimate requests.
Expert power
The person has the experience and knowledge to earn your respect, and you defer to his or
her judgment in some matters.
Referent power
You like the person and enjoy doing things for him or her.
Coercive power tends to result in negative performance responses from individuals, decreases
satisfaction, increases mistrust, and creates fear.
Legitimate power does not have a negative effect, but does not generally stimulate employees to
improve their attitudes or performance, and it does not generally result in increased commitment.
Reward power may improve performance in a variety of situations if the rewards are consistent
with what the individuals want as rewards.
Expert power relies on trust that all relevant information is given out honestly and completely.

Leaders Use of Power

The least effective power bases are the ones most likely to be used by managers
Coercive, legitimate, and reward
Easiest to implement
Effective leaders use referent and/or expert power

Empowerment: Giving Power to Employees

The freedom and the ability of employees to make decisions and commitments
Managers disagree over definition of empowerment
Empowerment as delegating decision making within a set of clear boundaries

versus

Empowerment as a process of risk taking and personal growth

Conditions for True Empowerment

Clear definition of the values and mission of the company
Company must help employees acquire the relevant skills
Employees need to be supported in their decision making, and not criticized when they try to do
something extraordinary
Employees need to be recognized for their efforts
Characteristics of Empowered People
Sense of self-determination
Employees are free to choose how to do their work; They are not micromanaged
Sense of meaning
Employees feel that their work is important to them; They care about what they are doing
Sense of competence
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Employees are confident about their ability to do their work well; They know they can
perform
Sense of impact
Employees people believe they can have influence on their work unit; Others listen to their
ideas

Political Behaviour

Those activities that influence, or attempt to influence, the distribution of advantages and
disadvantages within the organization.
Legitimate: normal everyday behaviour
Illegitimate: extreme political behaviours that violate the implied rules of the game
Organizations are made up of groups and individuals who have differing values, goals and interests
Resources in organizations are limited
Performance outcomes are not completely clear and objective

Impression Management

The process by which individuals attempt to control the impression others form of them
More likely used by high self-monitors than low self-monitors
High self-monitors try to read the situation
Impression Management (IM) Techniques
Conformity
Agreeing with someone elses opinion in order to gain his or her approval.
Excuses
Explanations of a predicament-creating event aimed at minimizing the apparent severity of
the predicament.
Apologies
Admitting responsibility for an undesirable event and simultaneously seeking to get a
pardon for the action.
Acclamations
Explanation of favorable events to maximize the desirable implications for oneself.
Flattery
Complimenting others about their virtues in an effort to make oneself appear perceptive
and likable.
Favours
Doing something nice for someone to gain that persons approval.
Association
Enhancing or protecting ones image by managing information about people and things
with which one is associated.

Organization Development and Change

Definition:
A process used to enhance both the effectiveness of an organization and the well-being of its
members through planned interventions.
Planned activity diagnosing problems, implementing plan
OD effects entire organization ripple effects
OD requires support all levels
OD aims to improve organizational effectiveness and health
Goals flow from deliberate interventions
36

Organizational Development (OD)

A collection of planned interventions, built on humanistic-democratic values, that seeks to improve
organizational effectiveness and employee well-being.
OD Values:
1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
OD initiated in response to need/problem - turnover, absenteeism, low job satisfaction = reactive

Often conducted by outside consultant gives independence

Views organization as a system interdependent set of components

Involves extensive planning: deal with resistance, systematic diagnosis, develop change plan, get
buy in etc

Reasons for OD

External:

*Knowledge explosion

*Competitor pressure
*Changing employee demands want more decision-making and responsibility want empowerment (see
text page 274)
*Legislation
Internal: *identified problem/s turnover etc
*natural growth stages
Organization Development Theories
Two main categories of OD theories:
Change process theory
How does change take place?
Implementation theory

How can change strategies be put

into practice?
Change process theory seeks to explain how organizations improve and change. According to
Lewin and Schein, there are three stages:
Unfreezing
Change through cognitive restructuring
Refreezing
Implementation theory how specific intervention strategies are designed and carried out. Four
main types:
Human process-based theory
Technostructural theory
Sociotechnical systems theory
Organization transformation theory

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Forces for Change

Force Examples
Nature of the workforce
More cultural diversity
Aging population
Many new entrants with inadequate skills
Technology Faster, cheaper, and more mobile computers
On-line music sharing
Deciphering of the human genetic code
Economic shocks
Rise and fall of dot-com stocks
200002 stock market collapse
Record low interest rates
Competition Global competitors
Mergers and consolidations
Growth of e-commerce
Force Examples
Social trends Internet chat rooms
Retirement of Baby Boomers
Rise in discount and big box retailers
World politics
IraqU.S. war
Opening of markets in China
War on terrorism following 9/11/01

Managing Planned Change

Change
Making things different.
Planned Change
Activities that are intentional and goal oriented.
Change Agents
Persons who act as catalysts and assume the responsibility for managing change activities.
Goals of Planned Change:
Improving the ability of the organization to adapt to changes in its environment.
Changing the behavior of individuals and groups in the organization.

Resistance to Change
Forms of Resistance to Change
Overt and immediate
Voicing complaints, engaging in job actions
Implicit and deferred
Loss of employee loyalty and motivation, increased errors or mistakes, increased
absenteeism

Tactics for dealing with resistance to change:

Education and communication

Participation
38

Facilitation and support

Negotiation
Manipulation and cooptation
Coercion

Lewins Three-Step Change Model

Unfreezing
Change efforts to overcome the pressures of both individual resistance and group conformity.
Refreezing
Stabilizing a change intervention by balancing driving and restraining forces.
Driving Forces
Forces that direct behavior away from the status quo.
Restraining Forces
Forces that hinder movement from the existing equilibrium.
Types of Interventions:
Human Process-Based
Survey Feedback
The systematic collection of survey data
Fed back to groups to promote problem solving and change
Team Building
A process to improve a groups problem-solving abilities
Example: process consultation
Job Enlargement
Adding variety through similar tasks
Job Enrichment
Increasing responsibility, knowledge of results, and meaningfulness of work
Alternative Work Schedules
Compressed workweek
Flextime work schedule
Quality Circles
Involving employees in work decisions
Total Quality Management (TQM)
Continuous improvement efforts
Self-Managing Teams (SMTs)
Team members have authority to make decisions and regulate the teams activities
Total Quality Management (TQM)
Five basic components:
Total commitment from senior management
Quality standards and measures in place
Training in quality for all employees (including Statistical Process Control)
Programs/ways to reward, recognize, and celebrate quality achievements
Strong quality communication efforts
Self-Managing Teams
Basic components:
Interdependence among team members
Individual members have discretion/authority to make important work decisions
Individual members possess a variety of skills, so that they can perform multiple
tasks
The team receives regular performance feedback
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Types of Change

Downsizing, rightsizing targets staffing costs

= Structural Reorganization:
All five of Mintzbergs parts targeted
Greatest loss in the middle line; results in larger spans of control
Technostructure, support staff; outsourced

OD is a complex process

OD is part of an organizations natural growth done appropriately it can ensure organizational

survival

Resistance to change is a major challenge for OD work

Organizational Change

Organizational Change
Any alterations in the people, structure, or technology of an organization
Characteristics of Change
Is constant yet varies in degree and direction
Produces uncertainty yet is not completely unpredictable
Creates both threats and opportunities
Managing change is an integral part
of every managers job.

Innovation
A new idea applied to initiating or improving a product, process, or service.
Sources of Innovation:
Structural variables
Organic structures
Long-tenured management
Slack resources
Interunit communication
Organizations culture
Human resources

Idea Champions
Individuals who take an innovation and actively and enthusiastically promote the idea, build support,
overcome resistance, and ensure that the idea is implemented.
Creativity
The ability to combine ideas in a unique way or to make an unusual association.
Innovation
Turning the outcomes of the creative process into useful products, services, or work
methods

Creating the Right Environment for Innovation

Structural Variables
40

Adopt an organic structure

Make available plentiful resources
Engage in frequent interunit communication
Minimize extreme time pressures on creative activities
Provide explicit support for creativity
Cultural Variables
Accept ambiguity
Tolerate the impractical
Have low external controls
Tolerate risk taking
Tolerate conflict
Focus on ends rather than means
Develop an open-system focus
Provide positive feedback
Human Resource Variables
Actively promote training and development to keep employees skills current.
Offer high job security to encourage risk taking.
Encourage individual to be champions of change.

Organizational Culture

A system of meaning shared by the organizations members

Cultural values are collective beliefs, assumptions, and feelings about what things are good,
normal, rational, valuable, etc.

Culture is the social glue that helps hold an organization together by providing appropriate
standards for what employees should say or do.
Do Organizations Have Uniform Cultures
Dominant
Culture
Core
Values
Subcultures

Cultures Functions:
1. Defines the boundary between one organization and others.
2. Conveys a sense of identity for its members.
3. Facilitates the generation of commitment to something larger than self-interest.
4. Enhances the stability of the social system.
Managerial Actions:
Select new employees with personality and attitudes consistent with high service orientation.
Train and socialize current employees to be more customer focused.
Change organizational structure to give employees more control.
Empower employees to make decision about their jobs.
Selection
Concerned with how well the candidates will fit into the organization.
Provides information to candidates about the organization.
Top Management
Senior executives help establish behavioral norms that are adopted by the organization.
Socialization
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The process that helps new employees adapt to the organizations culture.

Creating An Ethical Organizational Culture

Characteristics of Organizations that Develop High Ethical Standards

High tolerance for risk
Low to moderate in aggressiveness
Focus on means as well as outcomes
Managerial Practices Promoting an Ethical Culture
Being a visible role model.
Communicating ethical expectations.
Providing ethical training.
Visibly rewarding ethical acts and punishing unethical ones.
Evaluation of Effectiveness
There is no single approach to that is appropriate in all circumstances or for all
organizational types.
The Time Dimension of Organizational Effectiveness Involves
Meeting organizational objectives and prevailing societal expectations in the near future.
Adapting to environmental demands and developing as a learning organization in the
intermediate future.
Surviving as an effective organization into the future.

Creating a Learning Organization

Learning Organization
An organization that has developed the continuous capacity to adapt and change.
Characteristics:
1. Holds a shared vision
2. Discards old ways of thinking.
3. Views organization as system of relationships.
4. Communicates openly.
5. Works together to achieve shared vision.
Single-Loop Learning
Errors are corrected using past routines and present policies.
Double-Loop Learning
Errors are corrected by modifying the organizations objectives, policies, and standard routines.
Fundamental Problems in Traditional Organizations:
Fragmentation based on specialization.
Overemphasis on competition.
Reactiveness that misdirects attention to problem-solving rather than creation.

Challenges to Managing

Knowledge Management
The cultivation of a learning culture where organizational members systematically gather
and share knowledge with others in order to achieve better performance
Learning Organization
An organization that has developed the capacity to continuously learn, adapt, and change

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