Organizational Behavior & Leadership PAD3003-03

Organizational Behavior (OB) vs. Organization Theory (OT) OB has its origins in psychology. Researchers of OB typically concentrate on individual and group behavior in organizations. They analyze motivation, work satisfaction, leadership, group dynamics, etc. OT is based more in sociology. It focuses on topics that concern the organization as a whole, such as structure and design, organizational environments, decision-making, change and innovation, etc.

Theoretical Background of OB: Motivation Theory The Hawthorne Experiments The Needs Hierarchy The Motivation-Hygiene Theory Theory X and Theory Y Let’s look at the theoretical underpinnings of Organizational Behavior. (Cover slide contents)

The Hawthorne Experiments The Hawthorne experiments refers to the experiments conducted by Elton Mayo et al. at the Hawthorne Works of Western Electric Company in the late 1920s-early 1930s. These experiments were to examine the relationship between work environment (Illumination) and productivity. But Mayo found: work situations are first of all social situations; workers are motivated by peer pressure, the attention paid to them by managers, and other complex sets of factors beyond monetary rewards. Discuss the Hawthorne experiments 10 years before Mayo, someone else suggested that peer pressure was more effective at controlling employee behavior than controls. Who was that? (Mary Parker Follett) What is the historical significance of Hawthorne? (The discovery that work organizations are primarily social situations was the first challenge to scientific management. It gave birth to the Human Relations School of Management Theory.) Intrinsic motivation occurs when people engage in an activity, like sports, without obvious external incentives. Research has found that it is usually associated with high educational achievement and enjoyment by students. In terms of sports, intrinsic motivation is the motivation that comes from inside the athlete who competes for the love of the sport. Extrinsic motivation comes from outside of the performer. Money is an obvious example, but the threat of punishment is also an extrinsic motivation. In sports, the roar of the crowd can be motivation to do well. Trophies are extrinsic incentives. Competition is often extrinsic because it encourages the performer to win and to beat others, not to enjoy the intrinsic rewards of the activity.

The Needs Hierarchy Abraham H. Maslow asserted that a person’s needs are not all equal but arranged in a hierarchy. Once lower needs are satisfied, they no longer motivate. Maslow, a psychologist, took the Hawthorne discovery that man was not solely ‘Homo Economicus” and theorized that there is a set of needs and that they are linked hierarchically. That is, until a lower need is satisfied the higher needs have little meaning, and that once a lower need is satisfied, it ceases to motivate. List and define Maslow’s Hierarchy of Needs. Maslow condensed this into: “man lives by bread alone, when there is no bread.” “When there’s plenty of bread, other needs emerge, and these dominate the organism.”

Motivation-Hygiene Theory Frederick Herzberg, et al, in 1959. Five factors related to “job content” as determiners of job satisfaction: 1) achievement, 2) recognition 3) work itself 4) responsibility 5) advancement are motivators because they lead to growth and self-actualization. Five factors related to “environmental context of jobs” as determiners of job dissatisfaction: 1) company policy and administration 2) supervision 3) salary 4)interpersonal relations 5) working conditions serve as hygiene factors because they prevent job unpleasantness. Herzberger, Mausner, & Snyderman. This theory’s central element is that worker motivation is largely internal. The two dimensions of job attitudes reflect a two-dimensional need structure: one to avoid unpleasantness in the job environment, and a parallel need that provides personal growth.

Q: Which of the above theories reflects the Theory X and Theory Y Managers holding a Theory X vision of their workers tend to be authoritarian, old-style leaders with a belief that people are lazy, irresponsible, and must be coerced to work. Theory Y has a belief in the intrinsic good of human beings—that it is natural for people to work hard and creatively if organizational goals are clear and if there is meaning in work This concept was coined by Douglas McGregor. All mgt. philosophies are based on assumptions about the basic nature of individual behavior. McGregor (1960) laid the opposites ends of the philosophical spectrum out in his Theory X and Theory Y characterizations: Theory X: The average person - Has an inherent dislike of work Must be coerced or threatened to give adequate effort Wants to be told what to do and avoids responsibility. Theory Y: The physical and mental effort of work is enjoyable. Committed employees will exercise self-direction/control to reach the organization’s objectives. Avoiding responsibility, lack of ambition, and an emphasis on personal security all come from experiences, not innate character. Many have the capacity to engage imagination, ingenuity, and creativity in solving problems. 4. Theory X= authoritarian style of management, Theory Y = collegial style of management. Q: Which of the above theories reflects the assumption of Scientific Management?

The Future of Organizations The Postbureaucratic Organization More democratic, more flexible, and maybe more complex Postmodernism People tend to be more open and adaptive and no long act in a fixed way. Feminist Approaches to Organizational Behavior Organizational hierarchies will become less rigid. Organizational climates will become more cooperative Values of trust, openness, and acceptance will replace the quest for individual power. Postbureaucratic: Warren Bennis: adaptive, rapidly changing, systems that evolve in response to problems. Alvin Toffler (Future Shock): Ad Hocracy-future org. structures would be “filled with transient cells and extremely mobile individuals.” If you create a hybrid of bureaucracy and ad hocracy wouldn’t it be a lot like Thomas Friedman & Richard Florida’s “flat and spiky” e-world? Postmodernism is a reflection of the e-world and its rapid evolution of information and communications technology. It is deconstructing organizations into relationships that are used to pursue mutual goals. It’s 4 core themes are: 1.) objectivism vs. constructivism, 2.) language as reality, 3.) globalization and segmentalism, and 4.) fragmented and inconsistent images-depth vs. surface. Postmodern PA is comprised of theories about perceptions and the social construction of reality from perceptions. Feminist Theory: For PA organizations to be more gender adaptive there are 3 non-exclusive options: Do nothing, wait for it to resolve itself over time. Create organizations that are more “gender friendly.” Hope managerial women will adapt themselves to a more male-oriented identity.

Leadership Leaders are those who get people in organizations motivated to do things they may never have done before or may not wish to do. (p.371)

Leadership Leadership is about the exercising of authority and it is done both formally and informally. Formal: authority, rank, position Informal: respect of others How do formal and informal authority differ? (Formal: based on authority, rank, or position. Informal: based on the respect of others.) Which is it most important to have? (Both are needed, but informal authority is more effective.)

Five types of leadership power Expert power: skills or knowledge Referent power: charismatic personality Reward power: the power to give benefits Legitimate power: the power of decision making Coercive power: the power of punishment French & Raven: Expert Power: the leader has special skills or knowledge. Referent Power: followers like the leader and their charismatic personality. Reward Power: leader has the power to give benefits to followers. Legitimate Power: perception that the leader is entitled to make decisions for the group. Coercive Power: follower’s perception that the leader can punish them.

Theories of Leadership Trait Approach The trait approach suggests that leaders have unique characteristics or traits that are distinct from followers, and that leaders are born and not made. Contingency Approach This approach defines leaders who develop leadership styles from the situation rather than following the “one best way”. Trait Approach: there are specific characteristics that make leaders different from followers. Studies that have tried to identify those traits, however, are inconsistent. It’s become more accepted to view leadership as interaction between individuals. Contingency Approach: finds that the particular situation has the greatest impact on the qualities of leaders. There are many factors that determine a leader’s style. Successful leaders in one type of org/environment/field of knowledge may not be successful in another. i.e. Leaderships in diff. cultures: collectivism & individualism—one emphasizes authority; the other emphasizes communication & organizing skills.

Theories of Leadership (cont.) Transactional Approach Leadership that is based on a simple exchange between the leader and the followers. Transformational Approach A “selling” style of leadership. A transformational leader is someone with the ability to change an embedded organizational culture by creating a new vision for the organization. This is similar to trait theories because it posits the belief that leaders are born and not made. Transactional Leadership: is based upon the relationship between the leader and the group. This is all based on the Lewin, Lippit, and White studies of effectiveness of leadership style on group efforts. Transformational Leadership: reflects a leader’s ability to convince the organization to change its culture to reflect a new strategic vision. (Expert, Referent, or Reward? Were they Contingency leaders?)

Program Audit and Evaluation PAD 3003-03

Learning Objectives The difference between audit, program evaluation, and policy analysis The different types of audits Evaluation standards

The Audit Definition: any independent examination or objective assessment of an organization. Activities: official examination of a financial report the final phase of a government budgetary process Different kinds of audit: i.e. financial audit, management audit, performance/efficiency audit, comprehensive audit. Different kinds of audit: Financial Audit – in the private sector it’s an examination of a report recording revenues and expenditures to determine whether they reflect the actual profit or loss of a company during its operating year. In the public sector, it’s a review of whether budgeted funds were expended according to law and for the purposes they were appropriated. Management Audit – an examination of policies and practices of an organization and the performance of management in accordance with them. Performance/Efficiency Audit – an examination of how effective an organization is in its activities. Comprehensive Audit – a combination of all of these audits, tied together as an overall assessment.

The Government Accountability Office (GAO) The Budget and Accounting Act of 1921 Serves as a support agency to audit federal government expenditures and assist the Congress in its legislative oversight responsibilities. A comprehensive audit program under GAO includes 1. Financial and compliance audits 2. Economy and efficiency audits 3. Program results audits Auditing in government began in the 1800’s when governmental operations began to represent too much money too allow them to run unchecked. The GAO was founded though the Budget & Acctg Act of 1921. It’s headed by the Comptroller General and functions as a “watchdog” agency that assists Congress in its legislative oversight role. The B&A Act of 1921 founded the Bureau of the Budget (now OMB) along with the GAO. It requires that all parts of the US Govt cooperate with the GAO’s audits. Those audits (as we’ve seen) can cover a lot of different issues. About 15% of work deals with accounting. Three Types of Audits: Financial & Compliance -the classic audit. It checks whether representation of financial condition is fairly presented. It also checks for compliance with laws and regulations that can affect financial statements. Economy & Efficiency – (begun in 1960’s) looks at an agency’s performance (its efficiency & effectiveness) and whether its resources are used efficiently and economically, what the causes of any inefficiencies might be, and checks for compliance with laws and regulations that can affect efficiency & economy. Program Results – Seeks to determine whether the results expected have been achieved and whether there has been consideration of any alternatives.

Program Evaluation and Policy Analysis Program Evaluation: the systematic examination of any government activity or group of activities to make a determination of their effects, both short and long range Policy Analysis: a set of techniques that seeks to answer what the probable effects of a policy will be if implemented. Difference: An analysis undertaken on a program already in effect is more properly called a program evaluation. Cover slide Program Evaluation took the forefront in the 1970’s in the examination of the Great Society programs. The discovery was that not only were many of them not functioning as conceived, they were ineffective. Wildavsky: promoted the “self-evaluating organization.” He proposed that the “ideal organization would be self-evaluating…monitoring its own activities…determining whether it was meeting its goals or whether these goals should continue to prevail.” Suchman: considered program evaluation a field of study that could be applied everywhere. He promoted its adaptation in all fields of specialization. Weiss: recognized the inherently political nature of program evaluation. She recognized its value as a political tool to: Postpone decisions or programs that they weren’t in favor of making by requiring an evaluation. Avoid responsibility for a necessary decision by having an evaluation accomplished. Point out accomplishments that are verified by a favorable evaluation. Meet grant requirements to have an independent evaluation of results.

Program Evaluation and Policy Analysis (cont’d) Legislative Program Evaluation Groups: GAO, OPPAGA http://www.oppaga.state.fl.us/ Evaluations Standards Compliance: accordance with law Efficiency: productivity being gotten out of the resources expended Effectiveness/Relevance: sufficient contribution to the achievement of the goals Shafritz notes that some states have established GAO-like program evaluation staffs. In FL, program evaluation is accomplished through OPPAGA, the Office of Program Policy Analysis & Government Accountability. Other forms of program evaluation: Legislative Commission: a program evaluation staff, under an executive director, reports directly to the joint leadership of the legislature. Discrete Committee: reports to appropriations committees of the legislature. Sunset Laws: requires all agencies and programs to have termination dates. Formal evaluation must be undertaken and, if the outcome is favorable, may be re-authorized. (Note: FL uses this in addition to OPPAGA.) 3. Evaluation Standards: Compliance – are the govt’s business transactions being in accordance with applicable laws? Efficiency – concern the productivity of the agency, compare to other agencies or to previous years Effectiveness/relevance – is the program achieving its purpose

Summary Organizational Behavior Theories Leadership Theories The Hawthorne Experiments; The Needs Hierarchy; The Motivation-Hygiene Theory; Theory X and Theory Y Leadership Theories Trait Approach; Contingency Approach; Transactional Approach; Transformational Approach Program Audit and Evaluations Standards Compliance; Efficiency; Effectiveness/Relevance