0. Management and Organisational Behaviour
7th Edition
PART 1
Management and Organisational Behaviour

1. The Nature of Organisational Behaviour
Management and Organisational Behaviour
7th Edition
CHAPTER 2
The Nature of Organisational Behaviour

2. The behaviour of people The process of management
The study of organisational behaviour (OB) embraces an understanding of -
The behaviour of people
The process of management
The organisational context of management
Organisational processes and the execution of work
Interactions with the external environment of which the organisation is part

3. The meaning of OB
OB is a convenient shorthand that refers to the numerous interrelated influences on, and patterns of behaviour of people within organisations
Porter, Lawler and Hackman

4. The meaning of OB
Wilson challenges what constitutes OB & questions whether we should be interested only in behaviour that happens within the organisation. She suggests that we need to look outside of what is normally thought of as organisations & how we usually think of work

5. - what happens in rest & play - emotions & feelings
The meaning of OB
Wilson believes that we can gain an insight into organisational life and behaviour by looking at:
- what happens in rest & play
- emotions & feelings
- less organised work
- the content in which work is deferred to as men’s work
- the meaning of work for the unemployed

6. The organisation itself The environment
Influences on OB
Individuals
Groups
The organisation itself
The environment

7. Are a central feature of OB
Individuals
Are a central feature of OB
Are a necessary part of any behavioural set
Bring to the organisation their personality, skills and attributes, values, needs and expectations
Can create conflict if their needs and the demands of the organisation are incompatible

8. Management and the individual
Management’s task is to integrate the individual & the organisation, providing a working environment that permits the satisfaction of individual needs & attainment of organisation goals

9. Exist in all organisations
Groups
Exist in all organisations
Are essential to organisational working and performance
Comprise a range of different individuals
Can develop their own hierarchies and leaders

10. Groups
Can have a major influence on behaviour and performance of individual members
Have their own structures and functions, role relationships and influences and pressure
An understanding of group structure and behaviour complements a knowledge of individual behaviour

11. Organisational structure is created by management to:
The organisation
Individuals & groups interact within the structure of the formal organisation
Organisational structure is created by management to:
- establish a relationship between individuals & groups
- provide order and systems to direct efforts of the organisation into goal seeking activities

12. The organisation
The formal structure allows people/groups to carry out organisational activities to achieve aims & objectives
Behaviour is affected by patterns of organisational structure

13. The environment affects the organisation through:
technological & scientific development
economic activity
social & cultural influences
government activities

14. management of opportunities & risks
Environment
The effects of the operation of the organisation within its environment are reflected in the:
management of opportunities & risks
successful achievement of organisational aims & objectives

15. Environment – its rate of change
The increasing rate of change in environmental factors highlights the need to study the total organisation & the processes used to adapt to external demands
Example: globalisation has placed greater emphasis on organisational processes rather than organisational functions

16. Contrasting but related approaches
Psychological
Looks at individuals within the organisation
A narrow approach
Sociological
Looks at human behaviour in society
A broader approach

17. Behavioural science – a multidisciplinary approach
A multidisciplinary behavioural science approach can make an important contribution to the field of OB
Behavioural science has three main disciplines:
- Psychology – personality systems
- Sociology – social behaviour
- Anthropology – science of mankind & study of human behaviour (cultural systems)

18. The organisational iceberg
One way to recognise why people behave as they do at work is to view an organisation as an iceberg
What sinks a ship isn’t always what sailors can see, but what they can’t see
Hellriegal, Slocum, & Woodman

19. The organisational iceberg
Figure 2.3
The organisational iceberg
Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing © (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: Fax

20. The organisational iceberg Formal (overt) aspects
Figure 2.3
The organisational iceberg Formal (overt) aspects
Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing © (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: Fax

21. The organisational iceberg Behavioural (covert) aspects
Figure 2.3
The organisational iceberg Behavioural (covert) aspects
Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western Publishing © (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning: Fax

22. The organisational iceberg Formal (overt) aspects
Customers
Technology
Formal goals
Organisational design
Financial resources
Physical facilities
Rules & regulations
Surface competencies & skills

23. The organisational iceberg Behavioural (covert) aspects
Attitudes
Communication patterns
Informal team processes
Personality
Conflict
Political behaviour
Underlying competencies & skills

24. Challenges of management People, capital, & technology
… somewhere within our views or organizations we need to acknowledge the differences between machines and man.
… the question of time is crucial, both because we humans operate in time with the past, the present & the future assuming importance’ and because they are phases, sequences of times and rhythms which are essentially human.
Gratton

25. Organisational metaphors
Machines
Organisms
Brains
Cultures
Morgan
Political systems
Psychic prisons
Flux & transformation
Instruments of domination
The metaphors are not fixed categories and are not mutually exclusive

26. Orientations to work
Instrumental orientation – individuals view work as a means to an end, there is a calculative or economic involvement with work
Bureaucratic orientation – work is defined as a central life issue, there is a sense of obligation to the work of the organisation & positive involvement in terms of a career structure
Solidaristic orientation – work situation is viewed in terms of group activities, there is an ego involvement with work groups rather than with the organisation itself, work is more than just a means to an end Goldthorpe et al.

27. Challenges to work ethics
Division of labour – work has been fractured in task and sub divided into special sub tasks
Destruction of continuity in employment – individuals are likely to re-enter the job market several times, jobs are no longer for life
Herman

28. Management as an integrating activity
Figure 2.4
Management as an integrating activity

29. The psychological contract
The series of mutual expectations & satisfaction of needs arising from the people / organisational relationship
Process of giving & receiving by the individual & the organisation
Covers a range of expectations of rights and privileges, duties and obligations that do not form part of the formal agreements but still has important influence of people’s behaviour
The significant of the contract depends on the extent it is perceived to be fair

30. Formula for balancing unwritten needs of employees with the needs of the organisation
Caring – demonstrating genuine concern for individuals
Communicating – really talking about what the company hopes to achieve
Listening – hearing not only the words but also what lies behind the words
Knowing - those who work for you, their families, personal wishes, desires & ambitions
Rewarding – money is not always necessary
Stalker

31. Moral contract
Increasing global competition & turbulent change requires a management philosophy grounded in a different moral contract
People should not be seen as a corporate asset from which value can be appropriated, but as a responsibility and a resource to be added to
This demands more from individuals – to abandon the idea of lifetime employment & embrace the concept of continuous learning & personal development Ghosal et al.

32. Factors leading to an increase in the global business environment
Improvements in international communication facilities
International competitive pressures
The spread of production methods & other business processes across nations & regions
International business activity, e.g. overseas franchising or licensing agreements

33. Defining & conceptualising culture – A model of culture
Figure 2.6
Defining & conceptualising culture – A model of culture
Source: Reproduced with permission from F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture, Second edition, Nicholas Brealey (1999), p.22.

34. Factors affecting national culture
Figure 2.8
Factors affecting national culture
Source: Reproduced with permission from Ian Brooks, Organisational Behaviour: Individuals, Groups and Organisation, Second edition, Financial Times Prentice Hall (2003), p.266, with permission from Pearson Education Ltd.

35. Five dimensions of culture
Power distance
Uncertainty avoidance
Individualism
Masculinity
Confucian work dynamism

36. Cultural differences that can affect OB
Relationship & rules
Individual or collective preferences
Type of societies - neutral or emotional societies
Diffuse or specific culture
Achievement-based societies
Time
Attitude to the environment
Trompenaar