Orgnizational Behavior & Development

OBD
Joseph Oloba
jooloba@livingstone.ac.ug
Outline
Outline
1. Defining an organization
2. The 21st century organization
3. Flexibility
4. The individual in the organization: Motivation
5. Groups & Teams in Organizations
6. Communications in Organizations
7. Organizational Structure and Authority
8. The Organizational Environment

9. Organizational Culture
10. Diversity in Organizations
11. Managerial Decision Making
Defining
Definingan
anorganization
organization
Defining
Definingan
anorganization
organization
 Basically, an organization in its
simplest form (and not
necessarily a legal entity, e.g.,
corporation or LLC) is a group of
people intentionally organized to
accomplish an overall, common
goal or set of goals
 (Carter McNamara, 2006).

Defining
Definingan
anorganization
organization
 "a consciously coordinated social
entity, with a relatively identifiable
boundary, which functions on a
relatively continuous basis to
achieve a common goal or a set
of goals”
 (Organization Theory, second edition, 1987,

Prantice Hall Inc., Englewood Cliffs, New
Jersey, p. 5.)
Defining
Definingan
anorganization
organization
 “a system of consciously
coordinated activities of two or
more persons.”
 Barnard, C. I. (1938). The functions of the

executive. Cambridge, MA: Harvard
University Press, pg. 73.
Defining
Definingan
anorganization
organization
 “the accomplishment of an
objective requires collective
effort, men set up an
organization designed to
coordinate the activities of many
persons and to furnish incentives
for others to join them for this
purpose.”
 Blau, P. M., & Scott, W. R. (1962). Formal
organizations: A comparative approach. San
Francisco: Chandler, pg. 5.
Defining
Definingan
anorganization
organization
 “a body of individuals working
under a defined system of rules,
assignments procedures, and
relationships designed to achieve
identifiable objectives and goals.”
 Greenwald, H. P. (2008). Organizations:
Management without control. Los Angeles,
CA: Sage, pg. 6.
Defining
Definingan
anorganization
organization
 “a social unit within which people
have achieved somewhat stable
relations (not necessarily face-to-
face) among themselves in order
to facilitate obtaining a set of
objectives or goals.”
 Litterer, J. A. (1963). Organizations:
Structured behavior. New York: John Wiley
and Sons, pg. 5.
Defining
Definingan
anorganization
organization
 “an organization is a complex
system, which includes as
subsystems:
i. management, to interrelate and

integrate through appropriate
linking processes all the
elements of the system in a
manner designed to achieve the
organizational objectives, and
Defining
Definingan
anorganization
organization
 “an organization is a complex
system, which includes as
subsystems:
ii. a sufficient number of people so

that constant face-to-face
interaction is impossible.”
Lundgren, E. F. (1974). Organizational
management: Systems and process. San
Francisco: Canfield Press, pg. 7.
Defining
Definingan
anorganization
organization
 A short hand expression for the
integrated aggregation of those
persons who are primarily
involved in:
 “the undertaking or managing of risk and
the handling of economic uncertainty;
 planning and innovation;
 coordination, administration and control;
 and routine supervision” of an enterprise.
Defining
Definingan
anorganization
organization
 “lively sets of interrelated
systems [task, structure,
technology, people, and the
environment] designed to
perform complicated tasks.”
 Levitt, H. J. (1972). Managerial psychology:
An introduction to individuals, pairs, and
groups in organizations. Chicago: The
University of Chicago Press, pg. 265.
Defining
Definingan
anorganization
organization
 Koontz and O’Donnell,
 ‘The establishment of authority relationships
with provision for co-ordination between
them, both vertically and horizontally in the
enterprise structure.”
 These authors view organization as a

coordinating point among various
persons in the business.
Defining
Definingan
anorganization
organization
 “social collectives in which people
develop ritualized patterns of
interaction in an attempt to coordinate
their activities and efforts in the
ongoing accomplishment of personal
and group goals.”
 Kreps, G. L. (1986). Organizational

communication. New York: Longman, pg. 5.
Defining
Definingan
anorganization
organization
 “Communicative structures of
control.”
 Mumby, D. (in press). Organizational

communication. Los Angeles, CA: SAGE.
Defining
Definingan
anorganization
organization
 “an organized collection of
individuals working
interdependently within a
relatively structured, organized,
open system to achieve common
goals.”
 Richmond, V. P., & McCroskey, J. C. (2009).
Organizational communication for survival:
Making work, work. (4th ed.). Boston: Allyn &
Bacon, pg. 1.
Defining
Definingan
anorganization
organization
 “an aggregate of persons,
arranged in predetermined
patterns of relationships, in order
to accomplish stated objectives.”
 Redding, W. C. (1964). The organizational

communicator. In W. C. Redding & G. A
Sanborn (Eds.), Business and industrial
communication: A source book (pp. 29–58).
New York: Harper & Row, pg. 33.
Defining
Definingan
anorganization
organization
 Santa Barbara, CA: Praeger.
examined a similar list of definitions
and concluded that there are three
primary features that run through all
definitions of the term “organization”:
 the structure,
 the goal, and
 the people.
Concepts
Conceptsof
oforganization
organization
 Static concept
 Dynamic concept
Have fun ! ! !
Have fun ! ! !
The
The 21stcentury
21st
centuryorganization
organization
The
The21st
21stCentury
CenturyOrganization
Organization
 The 21st century global business
environment is characterized by a
higher level of ambiguity than leaders
of the past have faced:
 continuous uncertainty of the market,
 digitalization,
 information sharing,
 commoditization of products and
services,
 the end of a lifetime career, and
 the open talent economy
The
The21st
21stCentury
CenturyOrganization
Organization
Characteristics of 21st Century
Organizations
 Extended Networks of Small

Businesses
 Loyalty to Brand, Not Country
 Performance Management
(day-to-day game to survive

in changing and unknown environments)
The
The21st
21stCentury
CenturyOrganization
Organization
 According to James Murphy, founder
of Engage International and The Lotus
Awards
THE FOUR DEFINING PILLARS OF THE

SUCCESSFUL 21ST CENTURY
ORGANISATION:
 Company culture,
 innovation,
 sustainability, and
 customer experience.
The
The21st
21stCentury
CenturyOrganization
Organization
 “If companies work on these four
pillars, they will become more aligned,
productive, and will give their
employees a greater sense of
purpose,” explains Murphy.
The
The21st
21stCentury
CenturyOrganization
Organization
The Six Defining Traits of the Successful
21st Century Organization
 GAP INTERNATIONAL - Pontish Yeramyan
 Relentless Innovation
 Being Purposeful
 21st Century Leader
 Passion for Growth
 Customer Oneness
 Breakthrough Performance Environment
The
The21st
21stCentury
CenturyOrganization
Organization
 The normal organizational approach
focuses on generating outputs, such
as profit and productivity, from the
environment.
 It all starts with a leader taking a

stand for an extraordinary
organization, a choice that any leader
can make.
The
The21st
21stCentury
CenturyOrganization
Organization
 Work in the 21st Century: Implications
for Selection
The
The21st
21stCentury
CenturyOrganization
Organization
Work in the 21st Century
Karen E. May writes that several factors
are influencing the way employees are
selected into the organizations of today
and of the future:
 Changing organizational structures.
 Changing definitions of jobs.
 Changing nature of work.
 Changing job requirements.
The
The21st
21stCentury
CenturyOrganization
Organization
Work in the 21st Century
Karen E. May writes that several factors
are influencing the way employees are
selected into the organizations of today
and of the future:
 Changing workplace design.
 Changing workforce demographics
and capabilities.
The
The21st
21stCentury
CenturyOrganization
Organization
 Work in the 21st Century: Implications
for Selection
Have
Have fun
fun !! !! !!
Flexibility
lexibility
Flexibility
Flexibility
 Titles and salary are so 20th century.
 The flexibility to work how you want to is the

ultimate status symbol, a new poll suggests.
 Stillman (2013)
Flexibility
Flexibility
 Flexibility is a term that is presumed to be
meaningful across different levels of analysis
in an organization.
 It has been suggested that flexibility is

required by organizations, groups, and
individuals to deal with an increasingly
complex and dynamic organization and
global environment.
Flexibility
Flexibility
 Definition
 According to the Oxford Dictionary, the word

‘flexible’ means “able to change to suit new
conditions or situations” (Oxford Advanced
Learner’s Dictionary, 2000).
 The terms “flexible” and “adaptable” are

sometimes used to describe the same
aspect.
Flexibility
Flexibility
 Definition
 Zelenovic 1982
 “measure of a [system’s] capacity to adapt to

changing environmental conditions and
process requirements”
Flexibility
Flexibility
 Definition
 Trigeorgis and Mason 1987
 “capacity of affecting the progress of a

project by acting in response to market
uncertainty over time”
Flexibility
Flexibility
 Definition
 Nelson et al. 1997
 “the ability to adapt to both incremental and

revolutionary change in the business or
business process with minimal penalty to
current time, effort, cost, or performance”
Flexibility
Flexibility
 Definition
 Saleh et al. 2001
 “property of a system that it to respond to

changes in its initial objectives and
requirements (…) in a timely and cost-
effective way”
Flexibility
Flexibility
 Definition
 Edwards 2005
 “intended to respond specifically to changing

situations and operations”
Flexibility
Flexibility
 Definition
 The Economist (2009)
 A firm’s ability to respond to changes in its

environment both rapidly and at low cost
 In a business context, flexibility can refer to

a number of different ideas.
 A firm's strategic flexibility depends partly on its

liquidity, since its ability to respond speedily is
inevitably determined by its access to funds.
Flexibility
Flexibility
 Definition
 Taneja et al. 2012
 “ease with which the system can respond to

uncertainty in a timely and cost-effective
manner, to sustain or increase its value
delivery”
Flexibility
Flexibility
 In physics;
 an increase in flexibility results in increased

range of motion (Holt, 1974; Smith, 1982).
 an increase in flexibility results in increased

performance (Cavagna, Dusman & Margaria,
1968; Dubuc & Bohannon, 1985; lashvili, 1983;
Prichard, 1987; Shellock & Prentice, 1985;
Smith, 1982).
 an increase in flexibility helps prevent injuries

(Greipp, 1985; Holt,1974; Levine, Lombardo,
MclVeely & Anderson, 1987; Taylor, Seaber &
Garrett, 1985).
Flexibility
Flexibility
 In physics;
 Women tend to be more flexible than men

(Alter, 1988; Kirchner & Glines, 1957).
 People tend to become less flexible with age

(Clarke, 1975; Corbin & Noble, 1980; Smith,
1982; Stanish & Hubley-Kozey, 1982).
Flexibility
Flexibility
 Businesses have much to gain from
implementing workplace flexibility broadly.
 The recruitment and retention of a skilled

and talented workforce is one of the most
important challenges in today's business
environment.
The Sloan Center on Aging & Work at Boston College

Flexibility
Flexibility
 Organizations with higher levels of employee
satisfaction are able to recruit and retain
valuable and engaged employees who are
less stressed and more committed and
productive.
 This in turn leads to more satisfied

customers, higher profits, and a better return
for shareholders.

Flexibility
Flexibility
 Top business reasons given by private
business organizations for offering
employees the option of working from home
are to:
 increase organizational flexibility (68%),
 retain workforce/widen the talent pool (55%),
and
 to meet employee demand (54%),
…according to a recent global survey

Flexibility
Flexibility
 Advantages (Employees’ perspective)
 Being flexible will make you more

responsive to change.
 Embracing change can expand your

opportunities
 Being flexible can help you strike work/life

balance.
Flexibility
Flexibility
 Advantages (Employers’ perspective)
 Being flexible signals that you value diversity

in the workplace.
 Flexibility is a good management decision.
 Being flexible is a win-win.

Flexibility
Flexibility
 A flexibility problem
Have
Have fun
fun !! !! !!
The
TheIndividual
Individualin
inthe
theOrganization
Organization
––Motivation
Motivation
The Individual in the Organization
––Motivation
Motivation
 Definition
 According to Staw (1983), motivation is generally
defined ‘as a prepotent state that energizes and
guides behaviour’. It is rarely measured directly, but
is inferred from changes in behavior, or even attitudes
(p. 302).
––Motivation
Motivation
 Definition
 Motivation refers to the degree of readiness of an
organism to pursue some designated goal, and
implies the determination of the nature and locus of
the forces inducing the degree of readiness
(Golembiewski, 1973, p.597).
––Motivation
Motivation
 Definition
 Jones (1955) states that motivation is ‘concerned with

how behavior gets started, is energized, is sustained,
is directed, is stopped and what kind of subjective
reaction is present in the organism while all this is
going on’ (p. 14).
 Kelly (1974), motivation ‘has to do with the forces that

maintain and alter the direction, quality and intensity
of behaviour’ (p.279).
 Motivation is the process of influencing or stimulating

a person to take action that will accomplish desired
goa (Mondy, Holmes and Flippa, 1980, p. 263).
––Motivation
Motivation
 Definition
 Motivation is an emotion or desire operating on a

person’s will and causing that person to act (Mathis
and Jackson, 1982).
 According to Middlesmist and Hitt (1981), motivation

refers to ‘the willful desire to direct one’s behavior
toward goal’ (p. 136).
 Hoy and Miskel (1987) define motivation as the

complex forces, drives, needs, tension
states, or other mechanisms that start and maintain
voluntary activity directed toward
the achievement of personal goals.
––Motivation
Motivation
 Definition
 "Motivation is a desire for change" (Hong, Cheng,

Hwang, Lee, & Chang, 2009).
 "Motivation is a desire to do something" (Kim, & Lee,

2008).
––Motivation
Motivation
 Definition
 "Motivation is an ongoing process" (Goudas, Biddle,

& Fox, 2011).
 "Motivation is defined as a cognitive process"

(Osborn, Irwin, Skogsberg, &Feltz, 2012).
 "Motivation is level of effort" (Pew, 2007).
 "Motivation is an abstract concept" (Sass, 1989).
 "Motivation is level of persistence" (Kennedy, 2010).

––Motivation
Motivation
––Motivation
Motivation
 Definition
 "Motivation is dependent upon the individual and the

situation" (Strombeck, & Wakefield, 2008).
 "Motivation is dependent on the fulfillment of

fundamental, innate psychological needs for
competence, relatedness, and autonomy" (Thijs,
2011).
 "Motivation is an action" (Potter, & Ware, 1987).
 "Motivation is an inner drive" (Locke & Baum, 2006).

––Motivation
Motivation
 Definition
 "Motivation can be positive or negative" (Harmon-

Jones, E., & Harmon-Jones, C. 2010).
 "Motivation is a continuous process" (Khuntia, 2010).
 "Motivation is goal oriented" (Chung, & Ross, 1977)
 "Motivation is different from satisfaction" (Mahesh, &

Kasturi, 2006).
––Motivation
Motivation
 Types of Motivation
 Intrinsic Motivation
Leadership-Central
––Motivation
Motivation
 Intrinsic Motivation
 Extrinsic Motivation
Leadership-Central
––Motivation
Motivation
 Intrinsic motivation
 Our deep-rooted desires have the highest

motivational power. Below are some examples:
Leadership-Central
 Acceptance: We all need to feel that we, as well as

our decisions, are accepted by our co-workers.
 Curiosity: We all have the desire to be in the know.
 Honor: We all need to respect the rules and to be
ethical.
 Independence: We all need to feel we are unique.
––Motivation
Motivation
 Extrinsic motivation
 Our deep-rooted desires have the highest

motivational power. Below are some examples:
Leadership-Central
 Order: We all need to be organized.

 Power: We all have the desire to be able to have
influence.
 Social contact: We all need to have some social
interactions.
 Social Status: We all have the desire to feel
important.
––Motivation
Motivation
 Extrinsic motivation
 Is external in nature. The most well-known and the

most debated motivation is money. Below are some
Leadership-Central
other examples:
 Employee of the month award

 Benefit package
 Bonuses
 Organized activities
––Motivation
Motivation
 Approaches to Motivation
––Motivation
Motivation
––Motivation
Motivation
 Johnston (2019)
 External Motivation
 Self-Fulfillment
 Teamwork
 Stakeholder Motivation
––Motivation
Motivation
 Essays, UK. (November 2018).
 Economic needs motivation.
 Social concept of motivation.
 Self-actualization needs.
 Complex man concept of motivation.
––Motivation
Motivation
 Motivation in the Workplace (website)
 Traditional Approach
 - Frederick W. Taylor's work
 Human Relations Approach
 Human Resource Approach
––Motivation
Motivation
 Chand (2019)
 The Stick or Authoritarian approach

 The Carrot or Paternalistic approach
 The Carrot and Stick or Exchange approach
Have
Have fun
fun !! !! !!
The
The
Individual
Individualin
in
the
the
Organization
Organization
––
Job
Job
Satisfaction
Satisfaction
––Job
JobSatisfaction
Satisfaction
 Assignment
Have
Have fun
fun !! !! !!
Groups
Groups
&&
Teams
Teams
Groups & Teams in Organizations
Group – two or more individuals

who communicate with one
another, share a common identity,
and have a common goal
Groups & Teams in Organizations
Team – a small group whose members

have complementary skills, have a
common purposes, goals, and
approach; hold themselves mutually
accountable.
Groups & Teams
Differences between Groups & Teams

Groups & Teams
Committee – permanent, formal

group performing a specific task.
Task force – temporary group

responsible for a particular change
activity
Groups & Teams
Teams
•Project teams
•Product development teams
•Quality assurance teams (quality
circles)
•Self-directed work teams (SDWT)
Communications in Organizations
Formal Communication – flow of

communication within the formal
organizational structure as depicted
on organizational charts.
•Upward communication
•Downward communication
•Horizontal communication
•Diagonal communication
Informal Communication –
separate from management’s
formal, official communication
channels.
•Grapevine
Have
Have fun
fun !! !! !!
Organizational
Organizationa
Structure
Structureand
and
Authority
Authority
Organizational Structure and Authority
• Organizational Architecture
– The organizational structure, control systems,
culture, and human resource management
systems that together determine how
efficiently and
effectively
organizational
resources are used.
Organizational Structure and Authority
• Organizing
– The process by which managers
establish working relationships among
employees to achieve goals.
• Organizational Structure
– Formal system of task and reporting
relationships showing how workers
use resources.
Designing Organizational Structure
• Organizational design
create a specific type of organizational
structure and culture so that a
company can operate in the most
efficient and effective way
Factors Affecting Organizational Structure
The Organizational Environment

– The quicker the environment changes,
the more problems face managers.
– Structure must be more flexible (i.e.,
decentralized authority) when
environmental change is rapid.
Strategy
– Different strategies require the use of
different structures.
• A differentiation strategy needs a flexible
structure, low cost may need a more
formal structure.
• Increased vertical integration or
diversification also requires a more flexible
structure.
Technology
– The combination of skills, knowledge,
tools, equipment, computers and
machines used in the organization.
– More complex technology makes it
harder for managers to
regulate the
organization.
Technology
– Technology can be measured by:
• Task variety: the number of new problems

a manager encounters.
• Task analyzability: the availability of

programmed solutions to a manager to
solve problems.
Human Resources
– Highly skilled workers whose jobs
require working in teams usually need
a more flexible structure.
– Higher skilled workers (e.g., CPA’s and

doctors) often have internalized
professional norms and values.
Human Resources
– Managers must take into account all
four factors (environment, strategy,
technology
and human resources) when designing
the
structure of the organization.
The way an organization’s structure

works depends on the choices
managers make about:
1. How to group tasks into individual
jobs
2. How to group jobs into functions and
divisions
3. How to allocate authority and
coordinate functions and divisions
Job Design
• Job Design
decide how to divide tasks into specific
jobs.
– The appropriate division of labor

results in an effective and efficient
workforce.
Job Design
• Job Simplification
– The process of reducing the tasks
each worker performs.
• Too much simplification and boredom
results.
Job Design
• Job Enlargement
– Increasing the number of different
tasks in a given job by changing the
division of labor
• Job Enrichment
– Increasing the degree of responsibility
a worker has over a job
Job Enrichment
1. Empowering workers to experiment
to find new or better ways of doing
the job
2. Encouraging workers to develop
new skills
3. Allowing workers to decide how to
do the work
4. Allowing workers to monitor and
measure their own performance
The Job Characteristics Model
Source: Adapted from J. R. Hackman and G. R. Oldham,

Work Redesign (Reading, MA: Addison-Wesley, 1980).
The Job Characteristics Model
Grouping Jobs into Functions
• Function
– Group of people, working together,
who possess similar skills or use the
same kind of knowledge, tools, or
techniques to perform their jobs
Grouping Jobs into Functions
• Functional Structure
– An organizational structure composed
of all the departments that an
organization requires to produce its
goods or services.
Functional Structure
• Advantages
– Encourages learning from others doing similar

jobs.
– Easy for managers to monitor and evaluate

workers.
– Allows managers to create the set of functions

they need in order to scan and monitor the
competitive environment
Functional Structure
• Disadvantages
– Difficult for departments to

communicate with others.
– Preoccupation with own department

and losing sight of organizational
goals.
The Functional
Structure of Pier 1
Imports
Divisional Structures
• Divisional Structure
– Managers create a series of business
units to produce a specific kind of
product for a specific kind of customer
Product,
Market, and
Geographic
Structures
Types of Divisional Structures
• Product Structure
– Managers place each distinct product
line or business in its own self-
contained division
– Divisional managers have the
responsibility for devising an
appropriate business-level strategy to
allow the division to compete
effectively in its industry
Product Structure
• Allows functional managers to
specialize in one product area
• Division managers become experts
in their area
• Removes need for direct supervision
of division by corporate managers
• Divisional management improves the
use of resources
• Geographic Structure
– Divisions are broken down by
geographic location
• Global geographic structure
– Managers locate different divisions in
each of the world regions where the
organization operates.
– Generally, occurs when managers are
pursuing a multi-domestic strategy
• Global Product Structure

– Each product division takes
responsibility for deciding where to
manufacture its products and how to
market them in foreign countries
worldwide
Global Geographic and
Global Product Structures
• Market Structure
– Groups divisions according to the
particular kinds of customers they
serve
– Allows managers to be responsive to
the needs of their customers and act
flexibly in making decisions in
response to customers’ changing
needs
Matrix Design Structure
• Matrix Structure
– An organizational structure that
simultaneously groups people and
resources by function and product.
• Results in a complex network of superior-
subordinate reporting relationships.
• The structure is very flexible and can respond
rapidly to the need for change.
• Each employee has two bosses (functional
manager and product manager) and possibly
cannot satisfy both.
Matrix Structure
Product Team Design Structure
• Product Team Structure

– Does away with dual reporting
relationships and two-boss managers
– Functional employees are permanently
assigned to a cross-functional team
that is empowered to bring a new or
redesigned product to work
Product Team Design Structure
• Product Team Structure

– Cross-functional team is composed of
a group of managers from different
departments working together to
perform organizational tasks.
Product Team Structure
Hybrid Structures
• Hybrid Structure
– The structure of a large organization
that has many divisions and
simultaneously uses many different
organizational structures
Federated’s Hybrid Structure
Coordinating Functions:
Allocating Authority
• Authority
– The power vested in a manager to
make decisions and use resources to
achieve organizational goals by virtue
of his position in an organization
Coordinating Functions:
• Hierarchy of Authority
– An organization’s chain of command,
specifying the relative authority of each
manager.
• Span of Control: the number of
subordinates who report directly to a
manager
• Line Manager
– Someone in the direct line or chain
of command who has formal
authority over people and resources
• Staff Manager
– Managers who are functional-area
specialists that give advice to line
managers.
The Hierarchy
of Authority
and Span of
Control at
McDonald’s
Corporation
Tall and Flat Organizations
• Tall structures have many levels of
authority and narrow spans of control.
– As hierarchy levels increase,
communication gets difficult creating
delays in the time being taken to
implement decisions.
– Communications can also become
distorted as it is repeated through the firm.
– Can become expensive
Tall Organizations
Tall and Flat Organizations
• Flat structures have fewer levels
and wide spans of control.
– Structure results in quick
communications but can lead to
overworked managers.
Flat Organizations
Minimum Chain of Command
• Minimum Chain of Command

– Top managers should always construct
a hierarchy with the fewest levels of
authority necessary to efficiently and
effectively use organizational
resources
Centralization and Decentralization of Authority
• Decentralizing authority
– giving lower-level managers and non-
managerial employees the right to
make important decisions about how
to use organizational resources
Decentralizing Authority
• Disadvantages
– Teams may begin to pursue their own
goals at the expense of organizational
goals
– Can result in a lack of communication
among divisions
Integrating Mechanisms
Have
Have fun
fun !! !! !!
Organizational
Organizational
Culture
Culture
Organizational Culture
• Organizational culture
– shared set of beliefs, expectations,
values, and norms that influence
how members of an organization
relate to one another and cooperate
to achieve organizational goals
Organization, Teamwork &
Communication
A firm’s shared values, beliefs, traditions,

philosophies, rules, and role models for
behavior.
Communication
Organizational Culture –
•Formal expression
•Informal expression
Communication
•Formal expression
•Mission statement
•Code of ethics
•Manuals
•Ceremonies
•memoranda
Communication
• Informal Expression
•Dress code
•Work habits
•Extracurricular activities
•Stories
Communication
satisfying the needs &
expectations of stakeholders
Ensures that organizational members:

•share values
•observe common rules
•share problem solving approaches
Communication
The most important drivers of innovation in

companies.
Sources of an Organization’s
Culture
Characteristics of
Organizational Members
• Ultimate source of organizational
culture is the people that make up
the organization
• Members become similar over
time which may hinder their ability
to adapt and respond to changes
in the environment
Organizational Ethics
• Organizational Ethics
– moral values, beliefs, and rules that
establish the appropriate way for an
organization and its members to
deal with each other and people
outside the organization
Employment Relationship
• Human resource policies:

– Can influence how hard employees
will work to achieve the
organization’s goals,
– How attached they will be to it
– Whether or not they will buy into its
values and norms
Organizational Structure: Culture
• In a centralized organization:
– people have little autonomy
– norms that focus on being cautious,
obeying authority, and respecting
traditions emerge
– predictability and stability are
desired goals
Organizational Structure: Culture
• In a flat, decentralized structure:

– people have more freedom to choose
and control their own activities
– norms that focus on being creative and
courageous and taking risks appear
– gives rise to a culture in which
innovation and flexibility are desired
goals.
Strong, Adaptive Cultures
Versus Weak, Inert Cultures
• Adaptive cultures
– values and norms help an
organization to build momentum and
to grow and change as needed to
achieve
its goals and be
effective
Strong, Adaptive Cultures
Versus Weak, Inert Cultures
• Inert cultures
– Those that lead to values and norms
that fail to motivate or inspire
employees
– Lead to stagnation and often failure
over time
Have
Have fun
fun !! !! !!
DDivive
ersrsit
ityy in
in O
Orrga
ga ni
nizza
atition
on s
s
Diversity Defined
• A characteristic of a group of people where

differences exist on one or more relevant
dimensions such as gender.
• Diversity is a group characteristic, not an individual
characteristic.
Common Dimensions
• Gender
• Race
• Ethnicity
• Age
• Religion
• Social Class
• Sexual Orientation
• Personality
• Functional
Experience
• Geographical
Background
Quote
• “The effects of diversity can result
from any attribute that people use
to tell themselves that another
person is different.”
• K. Y. Williams and C. A. O’Reilly
Thoughts?
Strategic Importance of
Organizational Diversity
• Improves
– Corporate culture
– Recruitment
– Relationships with clients and customers
• Builds competitive advantage

– Understand and serve diverse customer base
– Heterogeneous teams deal better with complex
problems and challenging tasks
– More commitment to organization’s mission
Affirmative Action vs.
Diversity Management
Affirmative Action Diversity Management
Prevent and remedy Create an inclusive, empowered
Purpose discrimination work environment
Assumes individuals will Assumes that managers and the

Assimilation assimilate and adapt organizations will change
Recruitment, mobility, and Allows all associates to reach their

Focus retention full potential
Cause of Does not address the cause Attempts to uncover the root causes
Problems of problems of diversity problems
Time Frame Temporary, until Ongoing, permanent changes

representation of
disadvantaged groups
Differences between Affirmative Action Programs and Diversity Management Programs

Organizational Diversity
Multicultural
Organization
Plural
Organization
Monolithic
Organization
Forces of Change
• Changing workforce demographics –
percentage by race, age and sex
• Increase in the service economy
• Global economy
• Requirements for teamwork
High-Involvement Organizations
• Commitment to the
Individual organization
Outcomes • Job involvement
• Satisfaction
Group • Decision making

• Creativity
Outcomes • Complex tasks
Organizational • Productivity
• Return on equity
Outcomes • Market performance
The Case of France
• Religious discrimination
• Discrimination issues in hiring
• Promotional issues
• Thoughts on the policy of not collecting data on race and
ethnicity or no affirmative action laws?
• Thoughts on what these companies are doing?
Experiencing
Strategic OB
Roadblocks to Diversity
Prejudice and Discrimination
Prejudice Discrimination
Modern Racism
Stereotypes
A generalized set of beliefs
about the characteristics of a
group of individuals
What thoughts come to mind

when you perceive the
individuals in these
photographs?
Common Stereotypes
People with
Women White Men
Disabilities
Black People Japanese Men Jewish People
Athletes Accountants Arab People

Stereotyping – Difficult to Stop
• Tough to dispel
• Guide what information
we look
for, process and
remember
• Seems to be an
enduring human
quality – everyone has
some stereotypes
Women, Work and Stereotypes
• While things have improved,

are there still gender issues in
the workplace?
• Are the issues faced by the
women in the text unique and
unusual?
Experiencing
Strategic OB
Social Identity
A person’s knowledge that he or she belongs
to certain social groups, where belonging to
those groups has emotional significance. Key
Points:
• Person’s social identity becomes more salient and noticeable
when in the minority on an important dimension
• Having a social identity different than the majority may make
people feel they have to behave in ways that are unnatural
for them in certain contexts
• Minority group members often fear losing their social identity
• People often evaluate others based on their membership in
social groups
Sample Self-Identity Structures
Sample Self-Identity Structures

Sources of Power
Expert Formal
Knowledge Position
Control
Being
Rewards and
Irreplaceable
Resources
Ascribed Status
Status and power that is assigned by cultural
norms and depends on group membership
• High-status individuals speak more and use
stronger influence tactics than members of low-
status groups
• People belonging to groups with different
amounts of power and status may avoid
interacting with one another and may form
cliques with members of their own groups
Communication Problems
• Different languages
• Different levels of fluency in the dominant
language
• Excluding those who don’t speak the language
Communication Disagreement
Among Cultures
• Willingness to openly disagree

• Importance of maintaining “face” or dignity
• The way “agreement” is defined
• Time devoted to establishing personal
relationships
• Willingness to speak assertively
• Mode of communication - written or verbal
• Personal space and nonverbal
communication
Structural Integration
• The degree to which minorities and
women are represented in all
occupations within an organization.
• Two levels exist – poorly integrated and
well integrated.
• The next two slides show examples of
each – both organizations have
approximately 35% of the employees
being female and/or minority.
Poor Structural Integration
Av nc
era tio
Percentage of people who are
Ma
Fu
Fin
ge ns
female and/or racial and ethnic
rk
Sa
e ti
a
All
minority group members
le
nc
HR
ng
s
e
Top Management 0% 0% 2% 0% 0.5%
0% 1% 10% 2% 3.25%
Middle Management
Supervisor 0% 5% 15% 5% 6.25%
Staff 25% 25% 40% 26% 29%
Line Worker 60% 65% 80% 75% 70%

Good Structural Integration
Av unc
era tio
Ma
F
Percentage of people who are
Fin
ge n s
rke
female and/or racial and ethnic
Sa
a
All
ti n
nc
minority group members
HR
le
g
e
s
Top Management 35% 35% 35% 35% 35%
Middle Management 35% 35% 35% 35% 35%
Supervisor 35% 35% 35% 35% 35%
Staff 35% 35% 35% 35% 35%
Line Worker 35% 35% 35% 35% 35%

Roadblocks
• Poor integration creates power and status
differentials – become associated with gender and
race
• Poor integration fosters negative stereotypes
• Women and minorities who are successful may be
perceived to have token status
• Women and minorities perception – impossible to
move up
Commitment of Leaders
• Communicate through multiple channels
• Personally lead all diversity efforts
• Sponsor employee councils
• Ensure cross-cultural communication
• Be accountable for advancing diversity initiatives
Promoting a Positive Diversity
Environment
Principles
• Pause to short circuit the emotion and reflect
Managerial • Connect with others in ways that affirm the
Advice importance of relationships
• Question interpretations and explore blind spots
• Obtain genuine support that doesn’t necessarily
validate initial points of view but rather helps in
gaining a broader perspective
Thoughts? • Shift the mindset
Integration with the
Strategic Plan
Common measures of diversity
effectiveness include:
• Increased market share and new
customer bases
• External awards for diversity efforts
• Associates’ attrition rate
• Associates’ work satisfaction
• Associates’ and managers’ satisfaction
with workplace climate
Associate Involvement
• Discussion groups from
a cross-section of staff
• Employee satisfaction
surveys
• Cultural diversity audits
• Informal employee
feedback hotlines
• Develop and support
affinity groups – groups
that share common
interests
• Provide training
Diversity Initiatives
• Recruiting
• Retention
• Development
• External partnerships
• Communication
• Training
• Staffing and infrastructure
The Strategic Lens
1. How does organizational diversity contribute
to an organization’s competitive advantage?
2. What actions are required to create diversity
in an organization, particularly in one that has
homogeneous membership at present?
3. How does diversity in an organization affect
its strategy?
Have fun ! ! !
Managerial
ManagerialDecision
Decision
Making
Making
The Decision-Making Process
• Decision -
making a
choice from two
or more
alternatives
• Managers at all levels and in all areas of organizations make

decisions.
• For instance:
• Top level managers make decisions about their organization’s
goals, where to locate manufacturing facilities, or what new
markets to move into.
• Middle and lower level managers make decisions about

production schedules, product quality problem, pay raises, and
employee discipline.
• Making decisions isn’t something that just managers do, but our
focus is on how managers make decisions
• Step 1: Identify a Problem

– Problem : an obstacle that makes it difficult to achieve a
desired goal or purpose.
Example - Namwono is a sales manager whose reps need
new laptops because their old ones are outdated and
inadequate for doing their job. it’s not economical to add
memory to the old computers and it’s the company’s policy to
purchase, not lease.
- Namwono has a problem: problem—a disparity between the sales

reps’ current computers (existing condition) and their need to
have more efficient ones (desired condition). Namwono has a
decision to make.
- Every decision starts with a problem.

How the managers identify problems?

– managers have to be cautions not to confuse
problems with symptoms of a problem. In the
example: the symptoms as poor quality products,
high prices or bad advertising.
– Managers should keep in their mind that problem
identification is subjective.
– What one manager considers a problem might not
be considered a problem by another manager.
• Step 2: Identify Decision Criteria

– Decision criteria are factors that are important
(relevant) to resolving the problem,
– Every decision maker has criteria guiding his or
her decisions even if they’re not explicitly stated.
– In our Example - Namwono decides that memory
and storage capabilities, display quality, battery
life, warranty, and carrying weight are the relevant
criteria in her decision.
• Step 3: Allocate Weights to the Criteria

– The decision maker must weight the items in
order to give them the correct priority in the
decision.
– A simple way is to give the most important
criterion a weight of 10 and then assign weights
to the rest using that standard
Important Decision Criteria
• Step 4: Develop Alternatives

– The decision maker requires to list viable
alternatives that could resolved the problem. The
alternative are only listed, not evaluated.
In our Example - Namwono, identifies eight laptops

as possible choices. (See next slide)
Possible Alternatives
• Step 5: Analyze Alternatives

– Appraising each alternative’s strengths and
weaknesses
Decision maker must evaluate each alternative, -
.by using the criteria established in step (2)
When you multiply each alternative by the

assigned weight, you get the weighted
alternatives as shown in slide 200. The total
score for each alternative, then, is the sum of its
.weighted criteria
• Step 6: Select an Alternative

• Choosing the best alternative
– The alternative with the highest total
weight is chosen.
In our example (slide 200), Namwono would choose

the Toshiba Qosmio because it scored higher than
all other alternatives (249 total).
Evaluation of Alternatives
• Step 7: Implement the Alternative

• Putting the chosen alternative into action
- Conveying the decision to and gaining
commitment from those who will carry out the
alternative. We know that if the people who must
implement a decision participate in the process, they’re
more likely to support it than if you just tell them what to do.
Another thing managers may need to do during
implementation is reassess the environment for any
changes, especially if it’s a long-term decision. Are the
criteria, alternatives, and choice still the best ones, or has
the environment changed in such a way that we need to
reevaluate?
• Step 8: Evaluate Decision Effectiveness
Evaluating the outcome or result of the decision to see if

.the problem was resolved
If the evaluation shows that the problem still exist, then
the manager needs to assess
,what went wrong- -
, was the problem incorrectly defined- -
, where errors made when evaluating alternatives- -
was the right alternative selected but poorly - -
? implemented
The answers might lead you to redo an earlier step or -
.might even require starting the whole process over
Managers Making Decisions
• Decisions making in all four

managerial functions.
• Most decision making is routine, every
day of the year you make a decision
about your activities.
Decisions Managers May
Make
• How managers make decisions? three perspective on
how managers make decisions: rational, bounded,
and intuition
• a) Rational Decision-Making - a type of decision

making in which choices that are logical and
consistent while maximizing value.
• After all, managers have all sorts of tools and

techniques to help them be rational decision makers.
Managers aren’t always rational. What does it mean
to be a “rational” decision maker: assumptions of
rationality:
Making Decisions: Rationality
• Assumptions of Rationality
– The decision maker would be fully objective and
logical
– The problem faced would be clear and
unambiguous
– The decision maker would have a clear and
specific goal and know all possible alternatives
and consequences and consistently select the
alternative that maximizes achieving that goal
– and decisions are made in the best interests of
the organization.
Making Decisions: Bounded
Rationality
b) Bounded Rationality - decision making that’s
rational, but limited (bounded) by an individual’s ability to
process information. Because they can’t possibly analyze all
information on all alternatives there for:
- managers satisfice, rather than maximize. :That is, they
accept solutions that are “good enough.” They’re being rational
within the limits (bounds) of their ability to process information.
Also Managers decision making influence by the organization’s

culture, internal politics, power considerations, and a
phenomenon called
Escalation of commitment: an increased commitment to a-
previous decision despite evidence that it may have been a
.poor (wrong) decision
Making Decisions: The Role of
Intuition
c) Intuitive decision- making
– Making decisions on the basis of
experience, feelings, and accumulated
judgment.
Researchers studying managers’ use of intuitive

decision making have identified five different
.aspects of intuition
What is Intuition?
Intuitive decision making can complement both

rational and boundedly rational decision making,
?how
managers who has had experience with a similar- -

type of problem or situation often can act quickly
with what appears to be limited information and
can achieved higher decision making performance,
.because of that past experience
Managers should ignore emotions when make-

.decisions may not be the best advice
Types of Decisions: Structured Problems
and Programmed Decisions
Structured Problems - straightforward, familiar, and:

:easily defined problems.. Example might include
.when a customer returns a purchase to a store-
.When a supplier is late with an important delivery-
because they’re straightforward, familiar, and easily defined,
Because it’s not an unusual occurrence, there’s probably
:some standardized routine for handling it becomes
: Programmed decision – a repetitive decision that
can be handled by a routine approach,
Because the problem is structured, the manager doesn’t have to
go the trouble and expense of going through an involved
decision making process.
The manager relies on one of three types of programmed

decisions: procedure, rule, or policy.
• Procedure - a series of sequential steps

used to respond to a well-structured
problem. Ex: when a purchasing manager receives a request
from a warehouse manager to purchase some thing to complete the
work
Rule - an explicit statement that tells.
managers what can or cannot be done. Rules
are frequently used because they are simple to follow and ensure
.consistency
Ex: rules about lateness and absenteeism permit supervisors to make
.disciplinary decisions rapidly and fairly
• Policy - a guideline for making decisions
• Its establishes general parameters for the decision maker rather than
specifically stating what should or should not be done.
• Policies contain an ambiguous term that leaves interpretation up to

the decision maker, here some sample policy statements:
• the customer always comes first and should always be satisfied.

• We promote from within whenever possible.
• Employee wages shall be competitive within community standards.
• The terms satisfied, whenever, and competitive require interpretation .

Types of Decisions: Unstructured Problems
and Non-programmed Decisions
Not all problems managers face can be solved using programmed

decisions, some involve:
• :Unstructured Problems : a problem that is new or unusual and

for which information is ambiguous or incomplete.
When the problem are unstructured, managers should rely on

nonprogrammed decisions in order to develop unique solutions
• :Nonprogrammed decisions : a unique and nonrecurring

decision that requires and involve a custom made solutions.
Exhibit 6-7 page 145 describe the differences between programmed and
nonprogrammed decisions.
Programmed Versus
Non-programmed Decisions
Decision-Making Conditions
When making decisions, managers may face three

different conditions: certainty, risk, and
uncertainty.
• Certainty - a situation in which a manager can

make accurate decisions because all outcomes are
known.
For example, when Wyoming’s state treasurer
decides where to deposit excess state funds, he
knows exactly the interest rate offered by each bank
and the amount that will be earned on the funds. He
is certain about the outcomes of each alternative
• Risk - a situation in which the decision maker is able to
estimate the likelihood of certain outcomes managers
have historical data from past personal experiences or
secondary information that lets them assign
probabilities to different alternatives.
• Uncertainty - a situation in which a decision maker has

neither certainty nor reasonable probability estimates
available. the choice of alternative is influenced by the
limited amount of available information and by the
psychological orientation of the decision maker.
• Under uncertainty: The manager may

be:
– optimistic manager: he will follow a maximax
choice (maximizing the maximum possible
payoff). Or
– a pessimist manager: he will follow a maximin
choice (maximum the minimums possible payoff).
– A manager may follow a minimax choice, when
he desires to minimize his maximum (regret).
Decision-Making Styles
• Some managers tend to rely more on data and facts when
making decisions, while other used his judgment and feeling to
make decisions.
Linear-nonlinear thinking style profile:
The decision making affected by a person thinking style reflect
two things:
the source of information you tend to use (external data and -
.facts or internal sources) such as feeling and intuition
How you process that information (linear-rational, logical, -

.analytical, or nonlinear- intuitive, creative, insightful)
:These dimensions are collapsed into two style

Decision-Making Styles
• a) the linear thinking style: is a decision style

characterized by a person’s preference for using
external data and facts and processing this
information through rational, logical thinking to guide
decisions and actions.
• b) The nonlinear thinking style: is a decision style

characterized by a person’s preference for using
internal resources of information (feeling and
intuition) and processing this information with
internal insights, feeling, and hunches to guide
decisions and actions.
Decision-Making Biases and Errors
• Managers may use rules of thumb (heuristics) to

simplify their decision making.
• Heuristics can be useful because they help
managers to make sense of complex, uncertain,
and ambiguous information.
• The rules of thumb may lead to errors and biases in
processing and evaluation information.
• Exhibit 6-11 page 149 identifies 12 common
decision errors and biases that managers make.
Common Decision-Making
Biases
Overconfidence Bias - when decision maker tend to -

.think they know more than they do
unrealistically positive views of oneself and
.one’s performance
- Immediate Gratification Bias - describe decision
maker who tend to want immediate rewards and to avoid
immediate costs holding.
choosing alternatives that offer immediate

rewards and avoid immediate costs.
- Anchoring Effect - describe the situation when

decision makers fixating on initial information and
ignoring subsequent information.
• Selective Perception Bias - when decision makers
selecting, organizing and interpreting events based
on the decision maker’s biased perceptions.
• Confirmation Bias - decision makers tend to at
face value information that confirms their
preconceived views and are critical and skeptical of
information. seeking out information that reaffirms
past choices while discounting contradictory
• Framing Bias - decision makers selecting and

highlighting certain aspects of a situation while ignoring other
aspects.
• Availability Bias - causes decision makers to tend to
remember events that are the most recent and vivid in their memory
(losing decision-making objectivity by focusing on the most
recent events).
• Representation Bias - when decision makers assess
the likelihood of an events based on how closely it resembles other
events or sets of events. (drawing analogies and seeing
identical situations when none exist).
• Randomness Bias - occurs when decision makers
creating unfounded meaning out of random events.
• Sunk Costs Errors - decision makers forget that current

choices can’t correct the past. (forgetting that current
actions cannot influence past events and
relate only to future consequences).
• Self-Serving Bias - occurs when decision makers
taking quick credit for successes and
blaming outside factors for failures.
• Hindsight Bias - when decision makers tend to falsely
believe after that outcome is actually known. (mistakenly believing
that an event could have been predicted once the actual
outcome is known (after-the-fact).
Overview of Managerial Decision Making
• Exhibit 6-12 page 151 provides an

overview of managerial decision making.
• The decision making process affected by
five factors:
• decision making approach
• types of problems and decisions
• decision making conditions
• decision making style.
• decision making errors and biases
Overview of Managerial Decision Making
Guidelines for Making
Effective Decisions
• Understand cultural differences
• Create standards for good decision making
• Know when it’s time to call it quits
• Use an effective decision making process
• Build an organization that can spot the
unexpected and quickly adapt to the
changed environment
Guidelines for Making
Effective Decisions
• Highly reliable organizations: share 5 habits:
• they are not tricked by their success, alert to the
smallest deviations and react quickly to anything that
doesn’t fit with their expectations
• defer to the expert on the front line workers (interact day
to day with customers).
• Let unexpected circumstances provide the solution:
reaction of the foreman illustrates how effective decision
makers respond to unexpected circumstances.
• Embrace complexity:
• Anticipate but also recognize their limits.
Review
• Describe the eight steps in the decision-

making process.
1. Identify problem
2. Identify decision criteria
3. Weight the criteria
4. Develop alternatives
5. Analyze alternatives
6. Select alternative
7. Implement alternative
8. Evaluate decision effectiveness
Review
• Explain the four ways managers make

decisions.
– Assumptions of rationality
• The problem is clear and unambiguous
• A single, well-defined goal is to be achieved
• All alternatives and consequences are known
• The final choice will maximize the payoff
Review
• Satisficing - when decision makers accept solutions
that are good enough.
• Escalation of commitment - managers increase
commitment to a decision even when they have
evidence it may have been a wrong decision.
• Intuitive decision making means making decisions
on the basis of experience, feelings, and
accumulated judgment.
• Evidence-based management, a manager makes
decisions based on the best available evidence.
Review
• Classify decisions and decision-making

conditions
– Programmed decisions are repetitive decisions
that can be handled by a routine approach and
are used when the problem being resolved is
straightforward, familiar, and easily defined
(structured).
– Nonprogrammed decisions are unique decisions
that require a custom-made solution and are
used when the problems are new or unusual
(unstructured) and for which information is
ambiguous or incomplete.
Review
• Classify decisions and decision-making

conditions
– Certainty is a situation in which a manager can
make accurate decisions because all outcomes
are known
– Risk is a situation in which a manager can
estimate the likelihood of certain outcomes.
– Uncertainty is a situation in which a manager is
not certain about the outcomes and can’t even
make reasonable probability estimates.
Review
• Describe different decision-making styles

and discuss how biases affect decision
making
– Linear thinking -style - characterized by a
person’s preference for using external data and
processing this information through rational,
logical thinking.
– Nonlinear thinking style - characterized by a
preference for internal sources of information and
processing this information with internal insights,
feelings, and hunches.
Review
• Identify effective decision-making

techniques.
– An effective decision-making process
1. Focuses on what’s important
2. Is logical and consistent
3. Acknowledges both subjective and
objective thinking and blends both
analytical and intuitive approaches
4. Requires only “enough” information as is
necessary to resolve a problem
Review
– An effective decision-making process

(cont.)
5. encourages and guides gathering
relevant information and informed
opinions
6. Is straightforward, reliable, easy to use,
and flexible
• Design thinking - “approaching
management problems as designers
approach design problems.”
Have
Have fun
fun !! !! !!
Leadership
eadership
The Functions of Leadership in
Organization
• “Leadership is a process of social
influence in which one person is able to
enlist the aid and support of others in
the accomplishment of a common
task.”
• Key points:
– Leadership is a group activity.
– Leadership is based on social influence.
– Leadership revolves around a common
task.
The Functions of Leadership in
Organization
• The specification seems simple, but
the reality of leadership is complex.
– Intrapersonal factors (i.e., thoughts and
emotions) interact with;
– Interpersonal processes (i.e., attraction,
communication, influence) to have
effects on;
– A dynamic external environment.
Organizational Functions
• Groups and organizations are by
nature inefficient.
• If one person could accomplish a job,
the creation or assignment of a group
would not be warranted.
• Groups require coordination of the
efforts of their members.
Organizational Functions
• The time and energy spent in that coordination
are diverted from productive activity.
• Organizations, which are groups of groups,
demand even greater resources applied to
coordination.
• But, most of the productive activities in society
cannot be accomplished by individuals.
• Organizations are essential to the realization of
the goals of productive endeavor, and leaders
are essential to organizational coordination.
The Organizational Functions of
Leadership
• Leadership is a process of social influence
through which one person is able to enlist
the aid of others in reaching a goal.
• In an orderly, structured, and well-
understood environment, the primary
responsibilities are guidance and
motivation.
– Assign people to tasks or responsibilities, to
outline what is expected, and to facilitate and
encourage goal attainment.
The Organizational Functions of
Leadership
• In a less orderly environment calling
for external adaptability, the crucial
functions are problem solving and
innovation.
– The leader must create the kind of
atmosphere that encourages sensitivity,
flexibility, and creativity.
– The leader must be a change agent.
Leading for Performance
• Political context, governance
arrangements, strategic thinking,
culture all impact performance.
• But, in practice, these are parts of the
context in which the public sector
manager has to operate.
• Performance management begins with
leadership.
• Defining leadership.
– The job of the leader of any organization is
to get people to do things they have not
done before, to do things that are not
routine, and to take risks for the common
good.
– The most basic task of the leader is to
create organization out of disorder, to make
people more capable as a cohesive group
than they are as unorganized individuals.
• Defining leadership.
– Leadership is the exercise of authority, whether
formal or informal, in directing and coordinating
the work of others.
– The best leaders use both formal and informal
authority.
– Five major bases of power:
• Expert power – knowledge.
• Referent power – identification.
• Reward power – exchange.
• Legitimate power – authority.
• Coercive power – punishment.
• Leadership and management.
– Management involves power (usually
formal authority) bestowed on the
occupant of a position by a higher
organizational authority.
• Responsibility and accountability.
– Leadership cannot be bestowed, it can
only be demonstrated.
• Leadership and management.
– Legitimacy arises from position in an organization
and most frequently describes managers.
– Charisma arises from personality and most
frequently describes leaders.
– The three essential functions of leaders (Chester
Barnard).
• To provide a system of communication;
• To promote the securing of essential efforts; and
• To formulate and define the purposes and goals of an
organization (Vision).
Leading for Peformance
• Trait theories.
– Assumption: leaders possess traits that
are fundamentally different from followers.
– Trait theory has largely fallen out of favor.
– Leadership may be modified by type of
interaction and by situation.
– Biggest criticism was the inability to
identify the traits of “born” leaders.
• Trait Theory
– Traits of successful leaders.
• Adaptable to situations
• Alert to social environment
• Ambitious and achievement-orientated
• Assertive
• Cooperative
• Decisive
• Dependable
• Dominant (desire to influence others)
• Energetic (high activity level)
• Persistent
• Self-confident
• Tolerant of stress
• Trait Theory
– Skills of successful leaders.
• Clever (intelligent)
• Conceptually skilled
• Creative
• Diplomatic and tactful
• Fluent in speaking
• Knowledgeable about group task
• Organized (administrative ability)
• Persuasive
• Socially skilled
• Transactional leadership (Exchange).
– How is leadership established and
exerted?
– Transactional leadership occurs when the
leaders rewards or disciplines the follower
based on the adequacy of the follower’s
performance (Burns and Bass).
• Contingent reward.
• Management-by-exception.
Subject Leader Manager
Essence Change Stability
Focus Leading people Managing work
Have Followers Subordinates
Seeks Vision Objectives
Detail Sets direction Plans detail
Power Personal charisma Formal authority
Appeal to Heart Head
Energy Passion Control
Dynamic Proactive Reactive
Persuasion Sell Tell
Style Transformational Transactional
Exchange Excitement for work Money for work
Risk Takes risks Minimises risks
Rules Breaks rules Makes rules
Conflict Uses conflict Avoids conflict
Direction New roads Existing roads
Blame Takes blame Blames others
• Contingency Theory.
– Many factors may influence a leader’s style.
• The type, structure, size, and purpose of the
organization;
• The external environment in which the
organization functions;
• The orientation, values, goals, and expectations
of the leader, his superiors, and subordinates;
and
• The expert or professional knowledge required
for the position.
• Contingency theory.
– Different leadership styles will differ in
their effects in different situations.
– The situation, not traits or styles,
determines whether a particular leaders or
style will be effective.
– The debate is over whether you change
the leader or the situation.
• Transformational leadership.
– A transformational leader is one with the
ability to change an imbedded
organizational culture by creating a new
vision for the organization and marshaling
the appropriate support to make that
vision the new reality.
– George Patton (General), Lee Iacocca
(CEO), Edward G. Rendell (Mayor)
• Transformational leadership.
– Characteristics (Bass).
• Charismatic leadership.
• Inspirational motivation.
• Intellectual stimulation.
• Individualized consideration.
– Ironically, a lot like trait theories.
Too Much Leadership
• Structural rigidity often causes
managers to over manage – to lead too
much.
• “Micromanage” is the pejorative term
for supervising too closely.
Too Much Leadership
• Any manager may be guilty of
micromanagement for refusing to allow
subordinates to have any real authority
or responsibility.
• Managers then have no time to develop
long-term strategy or overall vision.
• Legislators are particularly guilty of
micromanagement.
Too Much Leadership
• Micromanagement will not make a competent
employee more competent; it only makes
things worse by wasting time, damaging
interpersonal relationships, by demonstrating
the incompetence of the supervisors, and by
distracting managers from activities to
improve efficiency.
• Too many managers for the nature of the
organization or the task can lead to
micromanagement.
Moral Leadership
• “If the leader is just an expediter of
what other people want, a resource for
their use, the people are not being led
but service” – Garry Wills.
• Moving people in new directions –
taking them places where they did not
know they wanted or needed to go –
that is the essence of leadership.
Moral Leadership
• The Bully Pulpit.
– Great presidents have traditionally used
their bully pulpit as “leaders of thought at
time times when certain historic ideas in
the life of the nation had to be clarified.” –
FDR.
• Rhetorical leadership.
– Today’s presidents use speech-making to
exhort the public to support policies to
move public opinion.
Moral Leadership
• The Execucrats.
– Career executives/ bureaucrats who are neither
elected nor appointed to office.
– Essential element in the policy process.
• Technical expertise is greater.
• Managers who must implement.
– Because of inherent disinterestedness,
nonpartisanship, and technical authority, they
often have more moral authority than elected or
appointed officials.
Moral Leadership
• The Execucrats.
– A function of their political and leadership
skills interacting with a specific situation
that their technical expertise and
personality can influence.
Have
Have fun
fun !! !! !!
Power
Powerand
andPolitics
Politics
Introduction
How do you perceive power?
Power
Dark and gloomy?
Bright and jovial?

Introduction
How do you perceive political behavior?
Political
Behavior
Introduction
• Political behavior pervades
organizational life
• Focuses on developing and using
power in an organization
• Often gives power to people who do
not have it from their organizational
position
Power
• Power: ability to get something done
the way a person wants it done
• Includes the ability to gather physical
and human resources and put them to
work to reach a goal
• Essential to leadership and
management functions
Power
• More than dominance: a capacity to
get something done in an organization
• Central feature of political behavior
• Unavoidable presence in
organizations
Power
• Facets of power
– Potential power: one party perceives
another party as having power and the
ability to use it
– Actual power: the presence and use of
power
– Potential for power: person or group
has control of resources from which to
build power
Power
• Power relationships: moments of social
interaction where power manifests itself
• Dimensions of power relationships
– Relational: social interaction between
people and groups
– Dependence
• Reliance of one party on another party
• High power when valued results not
available elsewhere
– Sanctioning: use of rewards or penalties
Power
• Power and authority
– Different concepts although a person can
have both
– Authority usually flows from a person’s
position in an organization
– Power can accrue to people at any level
Power
Power flows
Reporting relationships Lateral relationships
Cross-functional
relationships
Power
• Power dynamics
– Dynamic not static; rises and falls for
people and groups
– Shifts in environment can change power
of person or group
• Marketing: successful product--power goes
up; lose market share--power goes down
• Technology: as it increases in importance,
people who know it become more powerful.
The opposite happens as importance of
technology drops
Bases of Power
• Bases of power: aspects of formal
manage-ment position and personal
characteristics
– Organizational bases of power:
sources of power in formal management
position
– Personal bases of power: sources of
power in a manager’s personal
characteristics
• Accumulate to a total power base
Power
• Organizational bases of power
– Legitimate power
• Derives from position
• Decision authority
– Reward power
• Tie positive results to a person’s behavior
• Organization’s reward system and policies
Power
• Organizational bases of power (cont.)
– Coercive power
• Tie negative results to a person’s behavior
• Organization’s reward system and policies
– Information power
• Information control
• Information distribution
Power
• Organizational bases of power (cont.)
– All management positions have some
organizational basis of power
– Minimally have legitimate power
– Reward and coercive power depend on
organi-zational policies about rewards and
sanctions
– Assume the power in the position but it
stays after person leaves the position
Power
• Personal bases of power
– Referent power: positive feelings about
the leader. Related to charisma
– Expert power: technical knowledge and
expertise
– Flow from the attributes and qualities of
the person
– Strongly affected by attribution
processes
Power, Leadership,
and Management
• Essential to leadership and
management
• Much more than dominance
• Capacity to get things done
Power, Leadership,
and Management
• Behavior of powerful leaders and
managers
– Delegate decision authority
– See people’s talents as a resource
– Can change people’s working conditions
– Get resources and information for work
group
– Take risks
Power, Leadership,
and Management
• Behavior of powerful leaders and

managers (cont.)
– Press for innovations
– Share power widely
– Help develop people
Results
Highly effective
Increases total power of the work group
Increases people’s promotion opportunities
Power, Leadership,
and Management
• Behavior of powerless leaders and
managers
– Supervise closely
– Do not delegate decision authority
– Often distrust subordinates
– See people’s talents as a threat
– Stick to the rules
Power, Leadership,
and Management
• Behavior of powerless leaders and
managers (cont.)
– Do not take risks
– Strongly focus on the work
– Protect his or her territory
Results
Ineffective
Low total power of work group
Decreases people’s promotion opportunities
Power, Leadership,
and Management
Which do you prefer:

powerful
or
powerless
leader or manager?
Building Power
• Six major sources of power
• Sources are related to bases of power
described earlier
• Political diagnosis, described later, is
an important step in building power
Building Power
• Knowledge, skill, reputation,
professional credibility (expert and
information power)
• Political network
– Formal or informal
– Often based on position in a communication
channel
– Important in lateral relationships
• Create perception of dependence:
control of scarce resources
Building Power
• Work activities (legitimate power)
– Extraordinary
– Visible
– Successful at high-risk activities
• Charisma (referent power).
Especially important in lateral
relationships
Building Power
• Power base of the work unit
– Coping with uncertainty
– Unique function
– Changes in external environment
– Centrality in work flow
Human resource management departments that become

expert in affirmative action, equal employment opportunity,
and workforce diversity can increase their power.
Attribution of Power
• Ascribing power to people at any level
• May not be same as actual power
• Attribution based on
– Personal characteristics
– Context of the person
Attribution of Power
• Personal characteristics
– Formal position: status and authority
– Technical knowledge
– Central position in a communication
network
• Context of the person
– Physical context
– Group or project membership
– Member of a coalition
Political Behavior
• Getting, developing, and using power
to reach a desired result
• Often appears in situations of
uncertainty or conflict over choices
• Often happens outside accepted
channels of authority
Political Behavior
• Unofficial, unsanctioned behavior to
reach a goal
• Build bases of power
• Use political behavior
– Affect decisions
– Get scarce resources
– Earn cooperation of people outside direct
authority
Political Behavior
• Recedes and flows with the dynamics of
power
• Two characteristics: power and influence
• Directed at reaching organizational goals
or individual goals
• Plays an important role in lateral
relationships
• Rarely have formal authority in such
relationships
Political Behavior
Characteristics of political processes
Power Political Influence

process
Political Behavior
• Political behavior and lateral
relationships
– Line-staff
• Many entry positions
– Marketing
– Human resource management
– Information systems
– Competition for resources: money, people,
equipment, office space
– Interdependence in work flow. Especially
modern manufacturing
Political Maneuvering
in Organizations
• Political maneuvering
– Political strategy
• Plan to reach a goal using specific political
tactics
• Goal: organizational or personal
– Political tactics
• Builds power base
• Uses power
in Organizations
• Political strategy
– Specifies combinations and sequences of
political tactics
– Includes plan for responding to changes
in the political context
– People at all levels can develop and use
a political strategy
– Not written; usually tacit
in Organizations
• Political strategy (cont.)
– Used in
• Resource allocation
• Choice of senior managers
• Career decisions
• Performance appraisals
• Pay increase decisions
in Organizations
• Political tactics
– Decision making processes
• Selectively emphasize decision alternatives
• Influence decision process in favor of self or
work unit
– Use outside expert or consultant. Power
is equal but wants to shift another level
– Control the decision making agenda:
often done when person does not want
change
in Organizations
• Political tactics (cont.)
– Build coalitions
• Form around people inside and outside the
organization
• Those believed important to person’s
position
– Co-optation: get support by putting
possible opponents on a task force or
advisory board
Political Diagnosis
• Identify type of political behavior likely
to happen in an organization
• Usually done unobtrusively by
observing behavior and making subtle
inquiries
Political Diagnosis
• Areas of diagnosis
– Individuals
• Identify powerful people and politically active
people
– Assess amounts of power
– Assess ways they likely will use their
power
– Assess their political skills
Political Diagnosis
– Coalitions
• Alliance of people who share a common goal
• Widely dispersed in organization
• Try to affect decisions
Political Diagnosis
– Political networks
• Affiliations, alliances, coalitions
• Control information flow and resources
• Identify major influences in the network
The Dark Side of
Organizational Politics
Deception Lying
Organizational
politics
Intimidation
The Dark Side of
• Deception
– See the Machiavelli quotation on page
293
– Trick another party into picking wrong
decision alternative
– Personal goals more important than
organizational goals
Manager does not want change and
asks for an endless series of studies
The Dark Side of
• Lying
– Intentional misstatement of the truth
– Trying to mislead other party
– Distorts information in favor of the liar
– Can have long-term negative effects if
discovered
“There will be no layoffs.”

The Dark Side of
• Intimidation
– Direct or indirect pressures on a person
by someone with power over the person
– Restrict communication of person with
others
– Isolate from others
– Includes sexual harassment of anyone
Imply withholding a promotion unless . . .

International Aspects of Political
Behavior in Organizations
• People from different cultures hold
different beliefs about power and power
relationships
• Some cultures see a directive and
autocratic use of power as correct
• Other cultures define a consultative or
democratic approach as correct
• Different individuals within those cultures
have different beliefs about power
relationships
• The Philippines, Mexico, India,
Singapore, Hong Kong: value a
directive use of power
• Workers ascribe power to a directive
manager and weakness to a
consultative one
• Consultative-oriented managers at a
disadvantage in power-directive
cultures
• Scandinavian countries, Israel,
Switzerland, Austria, and New Zealand
– Expect managers to involve workers in
decision-making process
– Directive manager would not be well
accepted by workers in Scandinavian
organizations
– Manager has high power in home culture;
little power in Scandinavian cultures
• Cultural orientation to uncertainty and
power
– Workers in Greece and France expect
managers to maintain low levels of
uncertainty
– Manager who cannot keep uncertainty low
has little power and influence over his
workers
– Workers in Denmark and the United States
have higher tolerance for uncertainty
• Cultural orientation to uncertainty and
power (cont.)
– Non-managers in those countries expect
managers to make risky decisions
– Ascribe high power to risk-taking
managers; low power to those who avoid
risk
– Degree of power ascribed to managers
affects their ability to affect others with
political tactics
• Individualistic orientation and power
– High individualistic: United States, Australia,
Great Britain, Canada, the Netherlands
– Low individualistic
• Many South American countries
• Value family ties and conformity to social norms
– South American workers expect managers to
look after them
– Managers who show interest in subordinates'
private lives enjoy high power
Ethical Issues About Political
• Utilitarian view: using power and
political behavior to serve only one's
self-interest is unethical
• Political behavior that uses excessive
organizational resources to reach a
personal goal is also unethical
• Suggest any political strategy is
unethical
– Does not serve goals of the organization
or
– A larger group of people than the single
political actor
Ignoring equipment maintenance to push products through
a manufacturing process for personal gain is behaving unethically
• Using power and political behavior that
violates another person's rights is
unethical
• A political tactic such as co-optation
can violate others' rights
• Co-opted individual, unless he or she
understands the goal of the political
actor, has not consented to such
influence
• Sense of justice strongly argues for
fair treatment
• Giving preferential treatment to
someone to build a sense of obligation
is unethical
• Guidelines for ethical political behavior
– Distinguishes organizational
statesmanship from "dirty politics"
– Behavior should serve people outside the
organization, beyond the single political
actor
– Individuals should clearly know intent of
actor; give free consent to be influenced
• Guidelines (cont.)
– Right of due process should not be
violated while the political behavior
unfolds
– Administration of policies should allow
fair treatment of all affected people
Have
Have fun
fun !! !! !!
Managing Technology
ManagingTechnology
Technology and Innovation
• Technology
– The
systematic
application of
scientific
knowledge to
a new
product,
process, or
service.
Technology and Innovation
• Innovation
– change in method or technology
– positive, useful departure from previous
ways of doing things.
Forces Driving
Technological Development
1. Must be a need, or demand, for the
technology
2. Meeting the need must be theoretically
possible, and the knowledge to do so
must be available from basic science
3. Must be able to convert the scientific
knowledge into practice in both
engineering and economic terms
Forces Driving
Technological Development
4. The funding, skilled labor, time,
space, and other resources needed
to develop the technology must be
available
5. Entrepreneurial initiative is needed
to identify and pull all the necessary
elements together.
Technology Life Cycle
• Technology life cycle
– A predictable pattern followed by a
technological innovation, from its
inception and development to market
saturation and replacement.
Technology Life Cycle
Technology Dissemination
Pattern and Adopter Categories
Diffusion of Technological
Innovations
Innovator
s
Early
Laggards Adopters
Late Early
Majority Majority
Diffusion of Technological
Innovations
• An innovation will spread quickly if it
– Has a great advantage over its predecessor
– Is compatible with existing systems,
procedures, infrastructures, and ways of
thinking
– Has less rather than greater complexity
– Can be tried and tested easily without
significant cost or commitment
– Can be observed and copied easily
Advantages and Disadvantages of
Technology Leadership
Technology Followership
• A manager’s decision on when to
adopt new technology also depends
on the potential benefits of the new
technology, as well as the
organization’s technology skills
• Following the technology leader can
save development expense
Dynamic Forces of a Technology’s
Competitive Impact
Assessing Technology Needs
• Technology audit
– Process of
clarifying the key
technologies on
which an
organization
depends
Measuring Current
Technologies
• Emerging • Pacing
technologies technologies
are still under have yet to prove
development their full value but
and thus are have the potential
unproved to alter the rules
of competition by
providing
significant
advantage
Measuring Current
Technologies
• Key • Base
technologies technologies
have proved are those that
effective, but are
they also provide commonplace in
a strategic the industry;
advantage everyone must
because not have them to be
everyone uses able to operate
them
Question???
What is the process of comparing the
organization’s practices and technologies
with those of other companies?
A. Benchmarking
B. Quality control
C. Scanning
D. Environmental scanning
Assessing External
Technological Trends
• Benchmarking
– the process of comparing the
organization’s practices and
technologies with those of other
companies
Assessing External
Technological Trends
• Scanning
– focuses on what can be done and what
is being developed
– places greater emphasis on identifying
and monitoring the sources of new
technologies for an industry
Key Factors to Consider in
Technology Decisions
Anticipated market receptiveness
Technology feasibility
Economic viability
Anticipated capability development
Organizational suitability
Framing Decisions about
Technological Innovation
Sourcing and Acquiring
New Technologies
• Make-or-buy decision
– The question an organization asks itself
about whether to acquire new technology
from an outside source or develop it
itself.
New Technologies
• Internal • Technology trading
development • Research
• Purchase partnerships and
• Contracted joint ventures
development • Acquisition of the
• Licensing owner of the
technology
New Technologies
Managers should ask the following basic questions:
1. Is it important (and possible) in terms of
competitive advantage that the technology
remain proprietary?
2. Are the time, skills, and resources for
internal development available?
3. Is the technology readily available outside
the company?
Technology Acquisition Options
Question???
Which executive is in charge of
information technology strategy and
development?
A. COO
B. CEO
C. CTO
D. CIO
Technology and Managerial Roles
• Chief information officer (CIO)

– executive in charge of information
technology strategy and development.
– coordinates the technological efforts of
the various business units
– identifies ways that technology can
support the company’s strategy
– supervises new-technology
development
• Technical innovator
– A person who develops a new
technology or has the key skills to install
and operate the technology
• Product champion
– A person who promotes a new
technology throughout the organization
in an effort to obtain acceptance of and
support for it.
• Executive
champion
– An executive who
supports a new
technology and
protects the
product champion
of the innovation.
Requirements for Innovation
Organizing for Innovation
• Unleashing creativity involves

encouraging creativity and
celebrating failure
• Bureaucracy busting is necessary

because bureaucracy is the enemy of
innovation
3M’s Rules for an
Innovative Culture
• Development project
– A focused organizational effort to create
a new product or process via
technological advances
• Sociotechnical systems
– An approach to job design that attempts
to redesign tasks to optimize operation
of a new technology while preserving
employees’ interpersonal relationships
and other human aspects of the work
Have
Have fun
fun !! !! !!
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Overview
• Organizational development is...

– organizational wide
– planned intervention
– managed from the top
– aimed at increasing an organization’s
health & effectiveness
– using behavioral science knowledge
The Need for Development
• Changing nature of the workforce

• Rapidly changing technology
• Economic changes
• Changes in social trends
Steps in the Planned Change Process
• Anticipating change
• Developing consultant-client
relationships
• Diagnosis
• Planning
• Action
• Evaluating & Stabilizing
Intervention Strategies and
Techniques
• Behavioral
– Sensitivity Training
– Survey Feedback
– Process Consultation
– Team Building
• Structural
– Redesigning the organization
• Technical
– Redesigning the way work is done
Ingredients for Successful Change
• Readiness for change

• High-quality solution
• Solution is acceptable to members
– Determined by
• Process by which change is introduced
• Adequacy of solution
• Individual resistance
• Systematic resistance
Outcomes of OD Efforts
• No change occurred 25% to 50% of the

time
– Difficult to measure change accurately
• Criterion selection
• Criterion contamination
– Difficult to overcome resistance to change
Overcoming Resistance to Change
• Education and Communication

• Create a vision
• Participation and Involvement
• Facilitation and Support
• Negotiation and Agreement
• Manipulation and Co-optation
• Reward and Coercion
Organizational Development
Power and Outcomes
Have
Have fun
fun !! !! !!
Managing
Managing
Change
Change
Managing Change
• Organizations do not
change!
• People
Change………
• One person
at a time………
Managing Change
• Its an era of change.
• You’ve got to basically
accept change as an
everyday event and
believe that it is a good
thing!
Why Change Fails
• Top barriers in major change programs
– competing resources 48%
– Functional boundaries 44
– Lack of change skills 42
– Middle management 38
– Long IT lead times 35
– Communication 34
– Employee opposition ( resistance) 33
– Initiative fatigue 32
– Unrealistic timetables 31
Making Change Succeed
• Factors that helped the most successful

companies achieve their goals
– Good communication 100%
– Strong mandate by senior management 95
– Setting intermediate goals and deadlines 95
– Having an adaptive plan 91
– Having access to adequate resources 86
– Demonstrating urgency of change 86
– Setting performance measures 81
– Delivering early , tangible results (quick wins) 76
– Involving customers and suppliers early 62
– Benchmarking V’s competitors 62
» source:PriceWaterhouseCoopers
Communicating about Change
(5 Communication Points)
• 1. Why is the change necessary? (rationale)

• 2. What are we changing to? (Vision)
• 3. How and when do we intend to get
there? (plan)
• 4. What is the personal impact?
(what's in it for me?)
• 5. Is help available to support

transitions?
(resources)
Why is Change Necessary?
• To survive in today's changing
market
• To keep up with changing customer
needs, such as build to order,
immediate delivery
• To achieve our goal of leading the
sector
• Increase efficiency and customer
satisfaction and therefore profit
What are we changing to?
• Globally unified
• More efficient
• More profitable
• More customer focused
How do we intend to get there?
• Through Implementation of key

strategies such as:
– Supply chain management
– Core teams
– Six-Sigma
– Lean Manufacturing
– Inter Company Benchmarking
What is the personal Impact?
• More successful company which can

invest in its resources
• Increased stock value and profit
sharing
• Employer of choice talented,
challenging co-workers.
• Working for a globally recognized
industry leader
• More enjoyable work environment
What help do you need to support change?
CHANGE
Help is available to Support Change!
• Training classes for you and managers

• Increased corporate-wide
communication
• Visible senior management support
• Change infrastructure built around
projects
• New, consistent vocabulary to talk
about change.
Context for change
• Companies must continually undergo
organizational transformations to survive
and grow
Organizational
effectiveness
Time
Context for change
• Organizational transformations can be
disruptive
Before
Established systems
Solidified culture
Organizational
effectiveness High level of effectiveness
During and After

Disruptions to leader ship &
Transformation systems
Point Organizational nervousness
Reduced effectiveness
Time
The Transformation Point
• Low stability: high chaos
• High emotional stress
• Control becomes a major issue
• High undirected energy
• Glorifying the past
• Conflict increases
• Resistance starts to build
• Culture consists of the norms,
values, beliefs, expectations,
behaviors and assumptions that
exist in an organization
• “Corporate culture is real and powerful.
• It’s also hard to change, and you won’t
find much support for doing so inside or
outside your company.
• If you run up against the culture when
trying to redirect strategy, attempt to
dodge.
• If you must meddle with the culture
directly, tread carefully and with modest
expectations”
Change Roles
• Executive Sponsorship
– Legitimizes the change
• Sustaining Sponsor
– Represents the executive sponsor
• Change Agent
– Sees the need for change but can not
legitimize it
• Stakeholder
– Supports the change
• ( in beliefs, skills, behaviors, etc)
Change Sponsors: Executive Sponsor
• Has ultimate authority over and

responsibility for the project
• Has a vested interest in project
resourcing and project results
• Manages organizational
expectations
• Provides high level direction
• May delegate day to day
involvement to a sustaining sponsor
Change Sponsors: Sustaining Sponsor
• Acts as appointed representative of the

Executive Sponsor( ensure formal appointment)
• Participates frequently with the project
team
• Interacts with local Stakeholder groups
• Shares duties with the Executive Sponsor
• Brings changes to the Executive Sponsor
for review and / or approval
Characteristics of Successful Sponsors
• HEAD
– Clear understanding of business case for change
– Clear understanding of changes impact
– Aware of own personal power to make change
– Realistic understanding of organizations true capability to reach desired level of
change
• Hands
– Initiates objectives, goals, deliverables and scope of the project
– Maintains validity of business case until change conclusion
– Displays strong public and private support for change
– approves work plans and activities
– Defines roles/ responsibilities for project teams
• Heart
– Believes in change
– communicates with others to help them understand how change will impact them
– Motivates and rewards change supporters
– Builds and environment to reduce change resistance.
Change Agent
• Anticipates who will lose what
– predicts resistance points
• Plans for the resources people will need to
successfully change
• Effectively communicates the what , when, why
and how of the change
• Creates a change -monitoring system to check
whether plans are being put into action
• Prepares to facilitate the change rather than just
make the change happen
• Looks at how he / she will need to change to
work effectively in the new system.
Stakeholders
• All those who will be affected

by the change and / or whose
active support , commitment
and behavior change are
required for successful
implementation and sustained
change
Stages of Change
What to Expect from Change
• No matter how positive , promising
or proactive the change is, expect
a sense of loss
• No matter how competent and
committed stakeholders are ,
expect a sense of confusion
• No matter how loyal employees
are, expect some initial
skepticism and an increase in
“me” focus
“Positive” Response to Change
Hopeful Realism
Informed (Hope)
Pessimism Informed
(Doubt) Optimism
(Confidence)
Uniformed
Optimism Completion
(Certainty) (Satisfaction)
Responses to Change
“Negative Responses to change”
Acceptance
Active Anger
R
e Bargaining
s
i Stability
s
Denial
t
Testing
a Immobilization
n
c
e
Depression
Passive Time
Individual Change Response
Denial
P Commitment
r
o
d
u
c
ti
v
it
y
Resistance Exploration
Adapted from Kubler -Ross

Recognizing the Individual Change Response
Denial
P Commitment
r What you
What you Hear
What you See
o see Silence
What you hear
It will never happen Future
d Indifference Orientation How can I contribute
It wont affect me
u Disbelief Initiative Lets get on with it
c Avoidance Self-efficiency
ti Confidence
v What you see
it What you see What you Hear Energy What you hear
y Anger It wont work Risk taking Optimism
Complaining It used to be… Tentativeness
I’ve got an idea
Glorifying the The data is Impatience
Lets try…
past flawed.. Activity without
focus What if ….
Skepticism
Unwillingness
to participate Resistance Exploration

Individual Change Process
• By Definition, Individuals will move

through the process at different
speeds
• Your role is to effectively maximize
the speed through the change
process, reducing the time spent in
Denial and Resistance
Remember…..
• “Its not so much that we’re

afraid of change, or so in
love with the old ways , but
it’s a place in between we
fear… it’s like being in
between the clouds… there’s
nothing to hold on to.”
Managing Resistance
Managing Resistance
• Resistance is a
Normal Reaction to
Disruption and
Real or Perceived
Loss
Question?
• What resistance to change have you
encountered in the past ?
Sources of Resistance
• Aptitude
– Is unable to make the change
• Attitude
– Doesn’t want to make the change
• Threshold for Change

– Doesn’t have the “energy” to make the
change
Sources of Resistance: Aptitude
Individual Abilities Low Tolerance for Change
See change as
Fear the unknown
more work
Don’t want to accept the death
Fear inability to
of the old ways ( preservation
develop the new
of the past)
skills required
Have “scars” from prior
Don’t understand
changes
what it will take to
be successful in
the future state
Sources of Resistance: Attitude
Lack of Motivation
Differing Assessments
Don’t see the need for Change initiators usually

change have more information
A compelling vision than stakeholders
has not been presented Those affected may not
No positive see the “Big Picture”
consequences for therefore the change
changing does not make sense
Perceive costs greater
than benefit
The Faces of Resistance
Not Enough Time

Anger Attack
Silence Withdrawal
Intellectualizing
Endless Questions
Going Through The Confusion Just don’t

motions want To Get It
Details
Ignore IT
Details
Deny It
Details
Glorify the Past
The Faces of Resistance
Active Passive
Because it is out in the When resistance is Hidden, it
open, active resistance can go unnoticed and
is more constructive undermine efforts to
and easier to manage transform an organisation
than its underground
counterpart
Faces of Resistance
• Passive
• Active
– Withholding info
– Deliberate – Procrastination/ Delays
opposition – No confrontation, but
– Hostility still no productivity
– Not attacking solution,
– Agitating others but not supporting either
– Failing to report – Over-complicating the
problems new way
– “We’ve always don it this
– Problem denial way
– Chronic quarrels
– “This won’t work”
Managing Resistance
Apply the appropriate level of involvement given the degree of

change
Involve
Chaos
Include
Degree of
Involvement Best case
Consult
Major road blocks
Inform
Fine tuning Major Transformation
Degree of Change
Managing Resistance: Aptitude
• Identify needed Knowledge and skills
• Provide a training / development
program
• Create opportunities to practice without
consequences
• Reward demonstrations of new abilities
• Mentor and model desired behaviors
and skills
• Monitor workloads to ensure they
remain realistic
Managing Resistance: Attitude
• Ensure people understand why change
is needed- the business case for change
• Put the change into the context of the “
Big Picture” link it to other changes
• Convey a compelling vision for the future
• If possible, personalize benefits of the
change
• Establish rewards, recognition,
incentives and performance objectives
that support change objectives
Managing Resistance: Raising
Thresholds for Change
• Communication
– Preview, view and review
– Ensure regular, timely information
distribution
– Communicate with the audiences “needs” in
mind
– Clarify what is not changing along with what
is
• Participate
– Involve people in decision making
– Seek out and use ideas and opinions
Raising Thresholds for Change
• Facilitate ( Change)
– Understand People
• Find out how people are doing along the
way, not just at the end
• Provide opportunities for two way
communication and “Venting”
• Don’t just hear Listen!
– Find supporting people
• Leverage the help of those who commit
early
• Create a change infrastructure.
Stakeholder: A Definition
One who will be affected

by the change and / or
whose active support,
commitment and
behavioral change are
required for successful
implementation and
sustained change
Stakeholders Involvement
Strategies
Level of Change and Commitment Required
Inform Consult Include Involve
Provide the Occasionally Include the Actively involve

stakeholder with obtain the stakeholder in the the stakeholder in
information on a stakeholders project by giving him the project, role in
need to know input, advice / her a support role decision making
basis only and expertise and / or making
him / her project
champion
Facilitating The Individual Change Response
Denial Commitment
Provide frequent consistent Provide guidance, support and
P messages recognition
r Confront without threatening Provide frequent feedback on
o Demonstrate visible signs of progress
change
d Enroll those here as advocates
Clarify what is and what is not to assist others
u changing Be careful not to overload or
c Address rumors and burn out
ti misinformation
v Probe for underlying feelings/

concerns
it Acknowledge efforts and the struggle
Acknowledge and legitimize Celebrate success
y feelings
Provide opportunities for visible advocacy
Clarify case for change( vision,
plan) Provide opportunities for participation and
contribution
Listen
Relate expectations and
consequences for non
compliance

Facilitative Techniques
Denial Commitment
P
r
o
d
Communicate Acknowledge &
u & Clarify Advocate
c
ti
v
it
Facilitate &
y Educate & Re-
Encourage
emphasize

What is Change
Communication
• Introduces, educates and informs target
audiences, both internally and externally,
about change efforts.
• Creates awareness, understanding and
dialogue among stakeholders
• Establishes the message, channels and
on-going feedback processes between
management, employees, customers and
suppliers
Goals of Change Communication
• Move people toward commitment

• Help people make informed choices
• Build trust through honesty and
openness
• Demonstrate empathy
• Seek to understand
• Report progress-or lack of-so people
can be responsible contributors to
success
5 Key Communication Points
Rationale Why the change is occurring
Vision
What the organization will look like in the future
Plan How and when the organisation plans to make these

changes
Support Why they should support the change
Resources Who is supporting the change, sponsors, change agents

Frame of Reference
A personal frame is made up of

assumptions about self, others,
tasks, and the organization that
lead a person to behave in a
particular way
Two Way Communication
• Ensures that both parties have the

same understanding of a situation
• Reduces misunderstandings
• Provides a vehicle to build trust and
demonstrate empathy
Communication Channels
A communication channel is a means by which information goes from one party to another
• E-mail • Voice mails

• Business Monday • Focus groups
• Company magazines • Bulletin boards
• News letters • Home mailings
• Press release • Network broadcasts
• All employees meetings • Video/DVD
• Posters • Letters from CEO
• Hotlines • Internet
• Staff meetings • Paycheck stuffers
Myths about Change Communication
• What others don’t know can’t hurt you-the

rumour mill will fill in what you don’t explain
• You can control what people will perceive
• Understanding can be developed simply by
broadcasting information
• Giving people information will lessen the
impact of the change
• Communication stays the same over the life
of the project-same messages same media
• One size fits all
Principles of Change Communication
• Communicate, communicate,
communicate
• Align communication to the business case
and vision for change
• Communication must be:
– Consistent
– Frequent
– Tailored to the stakeholder group
• Use varied, but existing channels to
communicate to stakeholders
What is Performance
Management
• A method to Link employee actions
and behaviors to company
strategies and goals using systems
that define, monitor, measure, report
on, improve and reward desired
employee performance
Why is Performance Management Important in
successful Change Implementation?
• “That which gets measured and

rewarded gets done”
• What are the new behaviors and
performance standards?
• How will we measure them?
• How will we reward them?
Summary
• Companies that fail to change may
not survive
• By changing , they stand to gain
significantly in many areas, which will
benefit everyone
• The organizational culture may not be
“ideal” but understanding the current
culture will assist in helping make
changes that will positively affect it.
Summary
• There are four typical stages of change
– Denial
– resistance
– Exploration
– Commitment
• All these stages are normal and
expected
• Be sure to plan for and manage all
stages, especially Resistance.
Summary
• Resistance is a normal response to change
• There are many different displays of
resistance
• Encourage expression of resistance; get it
out in the open
• Help move people toward exploration and
commitment in order to minimize
resistance and productivity loss
• Choose suitable strategies to deal with
group and individual responses: customize
plans
Have
Have fun
fun !! !! !!
Summary
Summary&&
Implications
Implications
Organizational Behaviour
• . . . a field of study that
investigates how individuals, groups
and structure affect and are affected
by behavior within organizations, for
the purpose of applying such
knowledge toward improving an
organization’s effectiveness.
Why Do We Study OB?
• To learn about yourself and others
• To understand how the many
organizations you encounter work.
• To become familiar with team work
• To help you think about the people
issues faced by managers and
entrepreneurs
What is an 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
Roles and Skills in the New
Workplace
Flexibility
Mentor Innovator
External Focus
Internal Focus
Facilitator Broker
Monitor Producer
Coordinator Director
Control
How Companies are Changing
“Cool” Companies“Old” Companies
• Believe
Think casual
casual Fridays
days are
are pitiful
• progressive
Charge employees for perks and incentives
• Believe titleson
Hold events areemployee
obsolete time
•• Don't
Have impose
flex time:onbut
employees'
only between 7:30 a.m. and 6:30 p.m.
• personal time results from their employees
Hide financial
•• Allow staff to
Encourage come and
employee go -- but rarely act on it
input
as they please
• Employ rigid hierarchies (chain of command)
• Offer all employees stock
• Stop at “open door” policies
options
• Let employees make
decisions that affect their
work
• Offer assistance with
childcare
• Have minimal bureaucracy
(red tape)
Challenges Facing the Workplace
Organizational Level
• Productivity
• Developing effective employees
• Global competition
• Managing in the global village
Group Level
• Working with others
• Workforce diversity Workplace
Individual Level
• Job satisfaction
• Empowerment
• Behaving ethically
Today’s Challenges
in the Workplace
• Challenges at the
Organizational Level
– Productivity
– Effectiveness
– Efficiency
Developing Effective Employees
Organizational Citizenship
Behavior (OCB)
– Discretionary behavior that is
not part of an employee’s
formal job requirements, but
that nevertheless promotes the
effective functioning of the
organization.
Putting People First
• Committed workforce and
positively affects the bottom line.
• More control and say in their

work.
• How do you put people first?
Global Competition
• In recent years, businesses have
faced tough international
competition, as well as from other
companies within our borders.
• Reduce costs, increase productivity,
and improve quality.
Managing and Working in a
Multicultural World
• Managers and employees

must become capable of
working with people from
different cultures
The Layers of OB
The Organization
Change
Organizational culture
Decision making
The Group Leadership
Power and politics
Negotiation
Conflict
Communication
The Individual Groups and teams
Groups and teams
Motivating self and others
Emotions
Values and attitudes
Perception
Personality
How will knowing OB make a
Difference?
• For Managers
• For Individuals
Toward an OB Discipline
Behavioural Contribution Unit of Output
science analysis
Learning
Motivation
Perception
Training
Leadership effectiveness
Job satisfaction
Psychology Individual decision making
Performance appraisal
Attitude measurement
Employee selection
Work design
Work stress
Individual
Group dynamics
Work teams
Communication
Power
Conflict
Intergroup behaviour
Sociology
Formal organization theory Study of

Organizational technology Group Organizational
Organizational change Behaviour
Behavioural change
Attitude change
Social psychology Communication
Group processes
Group decision making
Organization
Comparative values system
Comparative attitudes
Cross-cultural analysis
Anthropology
Organizational environment
Conflict
Political science Intraorganizational politics
Power
The Rigor of OB
• OB looks at consistencies
• OB is more than common sense
• OB has few absolutes
• OB takes a contingency approach
Research Methods in OB
Source: J. R. Schermerhorn, J.G. Hunt, and R. N. Osborn, Organizational Behaviour, 9th
Edition, 2005, p. 4. Copyright © 2005 John Wiley & Sons, Inc. Reprinted with the
permission of John Wiley & Sons, Inc.
Bottom Line: OB Is For Everyone
• Organizational behavior is not just for

managers.
• OB applies equally well to all situations in
which you interact with others: on the
basketball court, at the grocery store, in
school, or in church.
Summary and Implications
• OB is a field of study that investigates the
impact that individuals, groups, and
structure have on behavior within an
organization.
• OB focuses on improving productivity,
reducing absenteeism and turnover, and
increasing employee job satisfaction and
organizational commitment.
• OB uses systematic study to improve
predictions of behavior.
Enjoy
Enjoysolving
solvingOB
OBProblems
Problems

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OBD

8. The Organizational Environment

 (Carter McNamara, 2006).

 (Organization Theory, second edition, 1987,

 Barnard, C. I. (1938). The functions of the

i. management, to interrelate and

ii. a sufficient number of people so

 These authors view organization as a

 Kreps, G. L. (1986). Organizational

 Mumby, D. (in press). Organizational

 Redding, W. C. (1964). The organizational

 Extended Networks of Small

 Loyalty to Brand, Not Country

(day-to-day game to survive

THE FOUR DEFINING PILLARS OF THE

 It all starts with a leader taking a

 The flexibility to work how you want to is the

 It has been suggested that flexibility is

 According to the Oxford Dictionary, the word

 The terms “flexible” and “adaptable” are

 “measure of a [system’s] capacity to adapt to

 Trigeorgis and Mason 1987

 “capacity of affecting the progress of a

 Nelson et al. 1997

 “the ability to adapt to both incremental and

 Saleh et al. 2001

 “property of a system that it to respond to

 “intended to respond specifically to changing

 The Economist (2009)

 A firm’s ability to respond to changes in its

 In a business context, flexibility can refer to

 A firm's strategic flexibility depends partly on its

 Taneja et al. 2012

 “ease with which the system can respond to

 an increase in flexibility results in increased

 an increase in flexibility results in increased

 an increase in flexibility helps prevent injuries

 Women tend to be more flexible than men

 People tend to become less flexible with age

 The recruitment and retention of a skilled

The Sloan Center on Aging & Work at Boston College

 This in turn leads to more satisfied

The Sloan Center on Aging & Work at Boston College

…according to a recent global survey

The Sloan Center on Aging & Work at Boston College

 Being flexible will make you more

 Embracing change can expand your

 Being flexible can help you strike work/life

 Being flexible signals that you value diversity

 Flexibility is a good management decision.

 Being flexible is a win-win.

 Jones (1955) states that motivation is ‘concerned with

 Kelly (1974), motivation ‘has to do with the forces that

 Motivation is the process of influencing or stimulating

 Motivation is an emotion or desire operating on a

 According to Middlesmist and Hitt (1981), motivation

 Hoy and Miskel (1987) define motivation as the

 "Motivation is a desire for change" (Hong, Cheng,

 "Motivation is a desire to do something" (Kim, & Lee,

 "Motivation is an ongoing process" (Goudas, Biddle,

 "Motivation is defined as a cognitive process"

 "Motivation is level of effort" (Pew, 2007).

 "Motivation is an abstract concept" (Sass, 1989).

 "Motivation is level of persistence" (Kennedy, 2010).

Orgnizational Behavior & Development

Orgnizational Behavior & Development