1. MGT 30525 - ORGANIZATIONAL BEHAVIOR Dr. K. A. S. P. Kaluarachchi Senior Lecturer Department of Management and Organization Studies Faculty of Management and Finance University of Colombo 1

2. At the end of this lesson, you will be able to:  Define the concept of OC  Identify basic features of OC  Identify levels of OC  Know about formation of OC  Know the role/functions of OC  Identify different types of OC  Know how managers can use OC 2 12/5/2015

3.  The set of values of an organization that helps its members understand what the organization stands for, how it does things, and what it considers important  It is a system of shared values, assumptions, beliefs, and norms that unite the members of an organization 3 12/5/2015

4.  It is a social glue that binds members of the organization together through shared values, symbolic devices, and social ideals  A system of shared meaning held by members that distinguishes the organization from other organizations  A collection of programming of minds (A software of minds) of the members of an organization 4 12/5/2015

5.  It is the personality of an organization  It is a shared meaning among members  It develops through experiences  It is accepted by other members to follow  It is used to face and solve problems  It is transferred from one generation to another  It is mainly a learned behavior 5 12/5/2015

6. 6 OC Level 1 Artifacts Level 2 Values Level 3 Assumptions

7.  Symbols- the physical and social work environment that are the most visible and accessible  Personal enactment-behavior that reflects the organization’s values  Ceremonies - Relatively elaborate sets of activities that are enacted time and important occasions  Rites- unite diverse groups or teams within the organization and renew commitment to the larger organization (picnic)  Stories - Stories about how the company deals with crisis situations  Rituals-organizational practices that are repeated over and over 712/5/2015

8.  Nature  Reality  Human nature  Human relation  Environment  Quality 812/5/2015

9. 9 9 Factors influencing formation of OC Economic setting Political/legal setting Ethnic background Religion Societal culture Owners/managers and employees Personal Values/ethics Attitudes Assumptions Expectations OC

10.  Sets standard  Governs behavior  Binds people together  Gives identity  Develops social stability 1012/5/2015

11.  Has single source of power which spread throughout the organization  Highly depends on trust, empathy, and personal communication for its effectiveness  Needs few rules and less bureaucratic procedures  Control is exercised from the center  Power basis is resource and charisma  Ability to react quickly  More interests in the end than the means 1112/5/2015

12.  Bureaucratic, organizing principle is logic and rational  Strength lies in its functions or specialties  Control and coordination through small group of senior executives  Internal environment is dominated by rules and procedures  Promotion is based on satisfactory performance  Power base is position and expertise  Ideal for stable situations 1212/5/2015

13.  Power is some what diffused on expertise  Focus on accomplishing job in hand  Flexibility, adaptability, individual autonomy, and mutual respect based on ability rather than age or status  Success in competitiveness and product life span hence constant innovation is necessary  More teamwork oriented 1312/5/2015

14.  Group of people decides for collective work  Structure like a cluster  Collectively decided work allocation, rules, and co-ordination  Complete autonomy, influence is shared, power base is expertise (professional associations) 1412/5/2015

15.  Group of people decides for collective work  Structure like a cluster  Collectively decided work allocation, rules, and co-ordination  Complete autonomy, influence is shared, power base is expertise (professional associations) 1512/5/2015

16. 1612/5/2015 16 High Power Distance  Inequalities among people are considered desirable  A greater reliance on those who hold power  Centralization is usual  Subordinates are likely to be separated from their bosses (wide differences in salary, privileges, and status symbols Low Power Distance  Less inequalities among people  Decentralization of activities is more likely  Subordinates to be consulted by superiors  Privileges and status symbols are less evident

17. 1712/5/2015 17 Individualistic  Ties between individuals are losing  Individuals are expected to look after themselves and their immediate family  Contract with employers are based on mutual advantages  Hiring and promotions are based on skills and rules Collectivistic  People are integrated  Cohesive groups  Contract with employer in moral terms  Hiring and promotion decisions on account of groups

18. 1812/5/2015 18 Weak UA  People are motivated by esteem/ belongingness needs  Great tolerance of ambiguous situations  People are hardworking only when they need to be precise and punctual  People are comfortable with deviant and innovative ideas and behavior Strong UA  Novelty is resisted  Motivated by security  Fear of ambiguous situations  Feeling of time is money  Emotional need to be busy  Precision and punctuality

19. 1912/5/2015 19 Masculinity  Social gender roles are clearly distinct  Men supposed to be assertive, tough, and focused on material success  Women supposed to be more modest, tender, and concerned with quality of life  Managers are expected to be decisive and assertive  Great emphasis is placed on competition among colleagues Femininity  Social gender roles overlap  Both men and women supposed to be modest, tender, and concerned with quality of life  Managers use intuition and strive for consensus  Stress on equality, solidarity, and quality of work life

20.  To support the organization’s business strategy  To prescribe acceptable ways of managers to interact with external parties  To make staffing decisions  To set performance criteria  To guide the nature of acceptable interpersonal relationships in the organization  To select appropriate management style 2012/5/2015 20

21. Thank you very much! 21 12/5/2015