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CHAPTER 1
INTRODUCTION TO
ORGANIZATIONAL BEHAVIOUR
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Learning Objectives
• After reading this chapter, you will understand
the following:
1. What is organizational behaviour.
2. Why do we learn about organization
behaviour.
3. Three level of analysis in organizational
behaviour.
4. The history and nature of organizational
behaviour.
5. Organization behaviour in global organization.
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What is an Organization?
• An organization is a group of two or more people
working together to achieve a common goal.
• Organization exits due to it mission or purpose.
• To achieve the organizational goals the top
management may work with his or her
management team to formulate strategies.
• Strategy is the process of setting long-term goals
of an organization, taking action and allocating
resources to accomplish those goals.
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• The interrelationships between mission, goals,
strategies and plans shown as below:
Mission
Goals
Strategy
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Organizational Behaviour
• It is field of study that investigate how individuals,
groups and structure impact behaviour within
organizations and how such knowledge can be
used to improve the effectiveness of the
organizations.
• Involves the systematic study of behaviour,
processes and structure found in an organization
in dynamic global environment.
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Goals of Studying Organizational
Behaviour
1. Explain a phenomena that occurs within in
organization.
2. Clarify behaviour that is taking place.
3. Control the behaviour that occurs in
organizations.
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Basic Assumptions of
Organizational Behaviour
1. Contingency Theory : for organization to be
effective there must be a fit between the
structure and the conditions in the external
environment. To managing organization explores
ways to meet the different needs of different
management situations.
2. Level of Analysis : three levels of analysis that
are individual, group and organization.
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History of Organizational Behaviour
• We can trace the existence of organizational
behaviour since the ancient days (3000 BC) and
the history of modern management can be traced
from as early as 1890 until today.
• Throughout the history of human civilization,
management and organizational behaviour have
been around such as since the time of the
building of the pyramids in Egypt.
• In Malaysia content we can study the
development and downfall of the Malacca empire
and Sultanate.
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Contributing Disciples That Shaped
Organizational Behaviour
Disciplines
Contributions
Anthropology
Organization Culture
Economy
Decision Making
Psychology
Organizational Psychology
Political Sciences
Power
Sociology
Organizational Sociology
Humanities
Interpersonal Behavior
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Organizational Behaviour in Global
Organization
1.
2.
3.
4.
5.
6.
Globalization.
Quality and Productivity.
Technology.
Ethics.
Diversity.
Nation Building.
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Management and OB
• Management is the process of planning,
organizing, leading, and controlling an
organization’s human, financial, material, and
other resources to increase its effectiveness.
• There are four functions of management:
planning, organizing, leading and controlling.
• There are three types of managerial skills namely
conceptual, technical and human skills.
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Conclusion
• Organizational Behaviour (OB) is a field of study
that investigate how individual, groups and
structure impacts behaviour within organization
and how such knowledge can be used to improve
the effectiveness of the organization.
• OB helps to explain, clarify and control behaviour
on the job.
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Revision Questions
1. What is organizational behaviour?
2. What are the goals of studying organizational
behaviour?
3. What are the three level of analysis in
organizational behaviour?
4. What are the contribution of management
theories to organizational behaviour?
5. Give examples of the contributions of other
disciplines to organizational behaviour.
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CHAPTER 2
INDIVIDUALS IN ORGANIZATIONS
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Learning Objectives
• After reading this chapter, you will understand
the following:
1. What is perception and why is it important.
2. The perceptual process.
3. What is personality.
4. Personality Theories.
5. What are emotions.
6. Attitudes at work.
7. Conflicts and its resolution.
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What is Perception and Why is it
Important?
• Perception is the process of classifying,
interpreting and understanding an events or
individual.
• We try to understand the individual or event
that happen by classifying them into certain
categories, interpreting what happens and try
to understand why it happened.
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Perceptual Process
Information
(Inputs – Stimulus)
• Perceptual
• Process
• Attention
• Organization
• Interpretation
• Retrieval
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Perceptual Process
• Our sense are constantly bombarded with the
information which we screen to understand the
situation.
• The process of screening involves the following stages:
1. Attention.
• The process of filtering information received by
our sense is called selecting stimulus or selective
attention.
• Screening and selecting such information is a
conscious effort and depends on our capability
and mindset
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2. Organization.
• Organization is the process by which we group
information into recognizable pattern.
• When we see Figure 2.1, we start organizing the
stimulus in the pattern we are familiar with to
arrive at meaningful understanding.
3. Interpretation.
• After receiving and organizing the stimuli we
assign meaning to the information.
• This process of assigning meaning for
interpretation is known as attribution and will be
discuss later.
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4. Retrieval
• The information stored in our memory is
retrieved to assign meaning for creating
understanding.
• This last stage of the perceptual process is
call retrieval.
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The Attribution process
• One of the ways to explain the process of perception
is through Kelly’s Attribution Theory.
Distinctiveness (High or Low)
Observation of
Behaviour
Consensus (High or Low)
Attribution of
Causes (Internal
or External)
Consistency (High or Low)
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• Kelly’s Theory of causal attributions: people
will believe others action to be caused by
internal or external factors based on three
types of information.
1. Distinctiveness.
2. Consensus.
3. Consistency.
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Common Perceptual Distortion
•
•
•
•
•
•
•
•
Misperception and Biases.
Fundamental Attribution error.
Selective perception.
Halo Effect.
Contrast effects.
Similar to me effect.
Stereotyping.
Self-fulfilling Prophecy of Pygmalion effect.
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How to Overcome Misperception or
Biases
1. We need to be identify our stereotypes and hold
them and check when dealing with different
individual.
2. In evaluating people, it should be based on the
objectives factors and not just one or two
criteria.
3. We also have to avoid making rash judgment
without considering all relevant factors.
4. Being aware of our biases help us to understand
the shortcoming of our misperceptions.
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Specific Applications of Perception in
Organizations
1. Employment
interview
:
Impression
management affects interview process
deeply.
2. Performance management and counseling
3. Diverse workforce management by ethnic
profiling.
4. Employee effort and employee loyalty.
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Learning
• Relatively permanent change in behaviour.
• Learning help us make sense of the
behaviours as well as acquire new knowledge
in the organization, and we subsequently
emulate or adopt these behaviours.
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The Brain and Learning
• Left and right brain learning model [Jensen, E (2000).]
Left-Brain Dominant Learners
Right-Brain Dominant Learning
Prefer things in sequences
Be more comfortable with randomness
Learn best from parts to wholes
Learn best from the whole parts
Prefer a phonetic reading system
Prefer a whole-language reading system
Like word, symbols and letters
Like pictures, graphs and charts
Rather read about a subject first
Rather see it or experience a subjects first
Want to gather related factual information
Want to gather information
relationships among things
Prefer detail and orderly instructions
Prefer spontaneous, go with the flow,
learning environment
Want structure and predictability
Experience more external focus
Want to gather related factual information
Want to gather information about
relationships among things
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Learning Styles
• One of the most common and widely used
learning styles models is the Kolb’s Learning
Style Inventory (LSI).
Concrete Experiences (CE) (Feeling) Pengalaman
konkrit (CE) (Perasaan)
Active
Experiment
ation (AE)
(Doing)
Accommodating
CE/AE
Diverging CE/RO (Feeling
and Watching)
Converging AC/AE
(Doing and
Thinking)
Assimilating AC/RO
(Watching and Thinking)
Reflective
Observation (RO)
Abstract Conceptualization (AC) (Thinking)
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Operant Conditioning
• Alfred Bandura proposes that humans can be conditioned
to learn of do certain things.
• Using the concept of stimulus-response (S-R), a person can
motivated to do an action (stimulus) and he will receive the
feedback on his action (response) accordingly.
• Badura calls this operant learning which is a form of
learning in which individual associate the consequences of
their actions with the actions themselves.
• Behaviours with positive consequences are acquired
whereas behaviour with negative consequences tend to be
eliminated.
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Reinforcing Learning
• We can reinforce learning either by
making people sustain, reduce or stop
certain behaviour.
• There are four ways of reinforcing
learning:
1. Positive Reinforcement.
2. Negative Reinforcement.
3. Punishment.
4. Extinction.
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What is Personality
• Robbins (1999), a management scholar
describe personality as the sum total of ways
in which an individuals reacts to and interacts
with others.
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Personality Theories
1. Types Theory of Personality : relationships is
established between features of face or body
and the personality.
2. Traits Theory : describe the theories by a set of
features. It involves determining the basic traits
that provides the meaningful description of
personalities. It also involves finding some way
to measure these.
3. Psychoanalytic : personality is composed of the
three elements that are id, ego and super ego.
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4. Social Learning Theory of Personality: regards
situation to an important determinant of
behaviour.
5. The Humanistic Approach : emphasises on
the person’s potential for self-direction and
freedom of choice.
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Personality Determinants
1.
2.
3.
4.
5.
Heredity.
Environment.
Situation.
Family.
Social.
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Personality Traits
• Enduring characteristics that describe an
individual behaviour.
• Over the year philosophers and psychologists
have tried to isolate personality traits.
• Recent researches have condensed these into
measurable models.
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Myers-Briggs Type Indicator
Characteristics
How you focus
your attention
E - Extraversion Outgoing, sociable and assertive
I - Introversion
How you collect S - Sensing
information
How you
evaluate
information
Description of the Individuals
Quiet and shy
Practical and prefer routine and order.
Focus on details
N - Intuition
Rely on unconscious processes and look at
the ‘big picture’
T - Thinking
Use reason and logic to handle problems
F - Feeling
Rely on the personal values and emotions
How you orient J - Judging
yourself to the
outside world
P - Perceiving
Want control and prefer their world to
ordered and structured
Flexible and spontaneous
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The Big Five Model
• The big five factors (OCEAN):
1. Openness to the experience.
2. Conscientiousness.
3. Extroversion.
4. Agreeableness.
5. Neuroticism (Emotional Stability).
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Major Personality Attributes
Influencing Organizational Behaviour
•
•
•
•
•
•
•
Locus of Control.
Machiavellianism.
Self-esteem.
Self-monitoring.
Risk Taking.
Type A Personality.
Proactive Personality.
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Achieving Personality Fit
1. The Personality Job Fit : is the theory that
identifies six personality types and proposes
that the fit between personality type and
occupational environmental determines and
turn over.
2. The Person Organization Fit : people find
compatibility at work when their personality
matches wit the organization.
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Values
• A set of believes about particulars things that we
hold as important to us as individuals.
• The values we hold can divides into two types:
1. Instrumental Values : alternatives behaviours
or means we use to achieve desired ends.
2. Terminal Values : desired and states of life
goals.
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Value Conflicts
• Intrapersonal Value Conflict : occurs when highly
ranked instrumental and terminal values pull an
individual in different directions.
• Interpersonal values conflict : occurs when
combinations of instrumental and terminal values
inevitably sparks disagreements between
individuals.
• Individual organization value conflict occurs when
values espoused or enacted by the organization
collide with employee’s personal values.
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Malaysia Work Values
• Malaysian work values are an amalgam of the
Malays, Chinese, Indian, Anglo and Japanese.
• Preference of relationships : trust and
relationships building, preserving face, ‘we’
orientation, teamwork, harmony, cooperation
and personalized relationships.
• Preference of Hierarchy : respect for
seniors/elderly
people,
non-assertiveness,
respect for royalty, status, good manners and
courtesy.
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What Are Emotions
• In general people tend to mix the word emotion
with affect and moods.
• Affects is ‘move’, ‘touch’ or ‘the feeling of ‘
people .
• Emotion is ‘mental sensation’ or instinctive
feeling’ that is directed to someone or
something.
• Moods are ‘state of mind’ or feeling that tend to
be less intense than emotions which lack a
contextual stimulus.
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Emotional Labour
• As a human being, we have the ability to feel
different emotion at the same time thus making
us a unique creatures.
• Emotions in labour is describe as the situations in
which the employee shows relevant which are
relevant to the organization context during their
interpersonal transactions.
• There are many types of job in the organization
that are supposed to be different and unique.
• For example a lecturer has to be cheerful at the
same time serious in delivering the lecture.
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Felt versus Displayed Emotions
• In an organization we must be able to distinguish
between felt and displayed emotions.
• Felt emotions are kind of emotions which we
truly feel, whereas displayed emotion are types
of emotions that we must show according to the
job requirement and company policy.
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Dimension of Emotion
• Variety : there are numbers of emotions such as
anger, sadness, joy, hate, pride and others.
• Intensity : different people will displayed different
levels of intensity of emotion. For example two
different husband who received the news that
their wife give birth to their first child would be
happy but one may smiling with a joyful face
however the other one may be crying with
happiness.
• Frequency and dimension : emotions will last
according to our feeling about something.
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Gender and Emotions
• Generally people always associate woman as
being more emotional than man.
• Modern psychological researches indicate that
men and women posses different skills related to
the sending and receiving of emotion.
• In general women are more emotionally
expressive, whereas men conceal or control the
emotional displays.
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External Constraints on Emotions
1. Organizational Influences: will be matched
according to the nature of the job.
2. Cultural Influences: cultures also have its own
influence towards emotion. In Malaysia it is the
norm and culture to smile to a complete
stranger but it not naturally accepted in the
other country.
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Organizational Behaviour Appliation
•
•
•
•
•
•
Ability and Selection.
Decision Making.
Motivation.
Leadership.
Interpersonal Conflict.
Deviant Workplace Behaviours.
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What is Stress
• Stress is an adaptive response to an external
situation that results in physical, psychological or
behavioural deviations for organizational
participation.
• Distress represent high stress level that have
negatives consequences, whereas eustress
represents the moderately low stress level which
are needed to active people.
• Stress is caused by the stressors.
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Understanding Stress and Its
Consequences
Personal Life
Perspective
Consequences
of Stress
Organizational
Perspective
Health
Perspective
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Potential Sources of Stress
• Individual Factors.
• Stressors are additive.
• Individual differences namely perception, past
job experience, social support, locus of control,
self efficacy and hostility.
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Consequences of Stress
1. Physiological Symptoms.
2. Psychological Symptoms.
3. Behavioural Symptoms.
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Managing Stress
• Four strategies to manage stress which an
individual can use:
STRATEGIES
EXAMPLES
Time-managing techniques
Things to do list
Prioritizing daily activities schedule
Highlight your personal time ability
Increase physical exercise
Jogging
Sports
Relation
Detach from the work for a while
Holiday
Social support network
Make more friends
Mingle with more people
• Organizational perspective: the management can
manage the stress among employee by reducing
the unclear job related issues.
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Attitude at work
• Job satisfaction is the general attitude that
people have about their jobs, job factors such as
pay, the job itself, promotion opportunities,
support fro supervisors and relationships among
co-workers.
• Organization commitment refer to the degree to
which the person identifies with and feels a part
of the organization
• While job involvement refers to the willingness of
the person to work hard and to apply effort
beyond normal job expectations.
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What is Job Satisfaction
• Schermerhorn et al. (2001) defined job
satisfaction as the degree to which an individual
feels positively or negatively about his or her job.
• It is the emotional response to one’s task as well
as the physical and social conditions of the
workplace.
• The motivating factors that are intrinsic to the job
are achievement, recognition to the achievement,
responsibility and the growth or the
advancement.
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How to Promote Job Satisfaction
• Job can be designed to incorporate the core job
dimension responsible for enhancing motivation and
performance.
• Four major principles includes:
1. Combine jobs, enabling the workers to perform the
particular job (skill variety, task identity).
2. Establish client relationships, allowing providers of a
services to meet the recipients (skills variety,
autonomy, feedback).
3. Load job vertically, allowing greater responsibility
and control over work (autonomy).
4. Open feedback channels, giving workers knowledge
of the results of their work (feedback).
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• As for ways to improve job satisfaction,
Greenberg and Baron (1997) suggest the
following guidelines:
1. Pay people fairly.
2. Improve the quality of supervision.
3. Decentralize the control of organization power.
4. Match people to the jobs that are congruent
with their interest.
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Effects of Job Dissatisfaction
• What are the consequences of the job
dissatisfaction?
• Two main effects are employee withdrawal
(absenteeism
and
turnover)
and
job
performance.
• Research show that the lower the satisfaction,
the more likely employees to be absent from
work.
• Another consequences is voluntary turnover
where lower level of job satisfaction trigger
employees to think about quitting and this leads
to intention to quit or remain with the job.
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Conformity Issues
1. The basics thesis of conformity was introduced by
William H. Whyte and Chris Argyris.
• Whyte stated that those individual who were so
involved in corporate life become psychologically
dependent on it that they tend to confirm to those
values without even questioning them.
• Conformity is following the norms of others without
independent thinking.
2. To what does one confirm?
• One normally confirm to three generals situation
namely to the organization that has employed him
or her, to the informal work group and the external
community.
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Rights of Privacy
• Include issues related to intrusion of an
individual’s private life and the unauthorized
release of the person’s information, which could
cause suffering or harm to the person in the
questions.
• Employees generally believe their religious,
political and social beliefs are their own personal
domains and should not be intruded upon and be
subjects to exploration and scrutiny.
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Bases Of The Discrimination At Work
• EEO Guide of Supervision in United States of
America has identified several bases of
discrimination.
• Discrimination occurs when individuals are
treated differently than others because of the
race they belong to colour of their skin,
religion, handicap, age, nationality and
gender.
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Discipline
• The act of influencing behavior trough reprimand.
• Misbehaviors such as absenteeism, tardiness, falsifying
records, theft and sexual harassment are some
examples of misbehaviors should be formally
addressed immediately.
• There are two types of disciplines , i.e. preventive
discipline and corrective discipline.
• Preventative disciplines is action taken to encourage
employee to follow rules and regulations to avoid
volition of the law.
• Corrective disciplines is the action that follows the
breach of the law and rule.
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The individual’s responsibilities to the
Organization
1. Organizational citizenships: the extent to which
an employee go beyond his/her job descriptions
to help the organization achieve it mission and
goals.
2. Ethical leadership: leaderships based on ethics is
required
to
manage
bribery,
fraud,
misappropriation of funds and others forms of
white collar crime .
3. Whistle blowing as the act of disclosing
misconduct to an internal or external sources.
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Interpersonal Behaviour and Conflict
Management
• Conflict management requires managing conflicts
for organization to succeed.
• Level of conflicts : Interpersonal conflict takes
place within the employee himself or herself,
between individuals and groups, and across
organizations.
• Effects of conflicts : conflict not necessarily be
destructive. It also can be productive.
• Managing conflicts, resolution strategies:
Assertive behaviour and transactional analysis.
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Groups Dynamics
• The social process by which people interact faceto-face in small group.
• Some examples in such group in the workplace
are meeting, discussion, brainstorming group and
teamwork.
• There are formal group and informal group.
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Informal Organization
• The emphasis in the informal organization is
more on people and their relationships rather
than on authority and responsibilities as in the
case of a formal organization.
• Therefore informal power attaches to a person
and its personal while formal authority attaches
to a position and its institutional.
• Informal communication is not controlled by the
management of the formal organization and does
not follow the official chain of the commons.
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Revision Questions
1. What is perception?
2. What are the factors that influence perception?
3. How do you use Kelly’s attribution theory to
explain perception?
4. What are common misperceptions?
5. What parts of the brain control learning?
6. How does operant conditioning work?
7. How do you reinforce learning?
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CHAPTER 3
MOTIVATION AND TOOLS
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Learning Objectives
• After reading this Chapter you will understand
the following:
1. What is motivational process?
2. Maslow’s needs hierarchy theory.
3. The differences between Maslow’s and
McClelland's theories.
4. How motivators are different from hygiene
factors.
5. Application of goals setting to system
performance.
6. The key relationships in expectancy theory and
its practical implications for motivating
employee.
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What is Motivation
• Define as forces within an individual that
influence direction.
• Motivation = the level and direction of effort at
work.
• Number of factors affect one's motivation to
work.
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Early Theories of Work Motivation
•
•
•
•
Maslow's Needs Hierarchy Theory
Herzberg's Two-Factor Theory
Alderfer's ERG Theory
McClelland's Needs Theory
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Maslow’s Needs Hierarchy Theory
1. Physiological needs : the lowest and most basic
needs or primary needs.
2. Safety needs : emotional as well physical safety.
3. Social needs : corresponds to the affection and
affiliation needs.
4. Esteem needs : corresponds to self-esteem as
well as esteem from others.
5. Self-actualization needs : individual are selffulfilled and aware of their potential.
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Herzberg’s Two-Factor Theory
• Identifies hygiene factors as source of job
dissatisfaction and motivation factors as the
source of satisfaction factors.
Motivators
Acknowledgement
Responsibility
Jo Role
Job Advancement
Hygiene Factors
Working Conditions
Work Peer Relationships
Organization Policies and
Procedures
Technical Supervision
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Alderfer’s ERG Theory
• Identifies three groups of needs (ERG) that are:
1. E : need for existence
2. R : need for relatedness
3. G : need for personal growth
• Anyone need can take precedence over one
another
• If one's need for growth is satisfied. It will
continue to grow intensely
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McClelland’s Needs Theory
1. Need for achievement (nAch)
•
•
•
•
Is the desire to do better, solve problems and
master complex tasks.
Individual who have high nAch would want to
accomplish something difficult and better.
Would prefer to do it by himself and
independently, clear and structured feedback,
acknowledgement and challenging work.
Those who have low nAch will perform better
with money incentives.
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McClelland’s Needs Theory
2. Need for power (nPower)
• Is the desire to control others and influence
their behaviour.
• Those who have high nPower would want to
control or influence other's behaviour directly
and indirectly.
• Two types of nPower which are personalized
power and socialized power.
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McClelland’s Needs Theory
3. Need for Affiliation (nAff)
• Is the desire for friendly and warm relations
with others.
• Those who have high nAff need to conform
and be accepted by others.
• Would avoid conflict and confrontation, carry
themselves favorable and as expected by
others.
• Less effective in decision making.
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Alternatives Theories of Work
Motivation
• Vroom's Expectancy Theory
• Equity Theory of Motivation
• Goal setting theory
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Limitation of Motivation Theories
1. Human behaviours results from multi-sources.
2. Managers should not assume that everything
means the same to everyone.
3. Work is not necessary one’s life focus.
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Challenges in Motivating Organizations
1. Motivating Performance Through Diversity:
• Motivating employee with diverse differences
become even more challenging to management.
2. Motivating
Performance
Through
Different
Employment Patters:
• Increasing use of flexible employment practices
which includes those part timers and contract
workers.
• More effort is needed to engage or motivate them
to give commitment in servicing in the
organizations.
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Job Design
• Refer to any set of activities that alters specific
jobs so as to increase the job responsibilities.
• Job rotation refers to moving employee from one
jobs to another to add variety.
• Job enlargement, refers to expansion of the
numbers of different tasks perform by employee
in a single job.
• Jon enrichment means adding few more
motivators to a job to make it challenging and
rewarding.
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The Job Characteristics Model
CORE JOB
CHARACTERISTICS
PSYCHOLOGICAL
STATES
Skill variety
Experienced
meaningful of work
Task Identity
Task Significant
Autonomy
Experienced
responsibility for
outcomes of work
Feedback
Knowledge of the
actual results of work
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OUTCOMES
High intrinsic work
motivation
High Satisfaction with
work
High quality of work
performance
Low absenteeism and
turnover
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Financial Rewards as Motivation
•
People join organizations expecting rewards
• Four types of rewards
1. Membership and seniority-based rewards
2. Job-status based rewards
3. Competency based rewards
4. Performance based rewards
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Revision Questions
1. Why should manager be well versed in the
various motivation theories?
2. How could a manager’s attempt to treat his or
her employee equally lead to perception of
inequality? Explain.
3. Someone in your discussion group has low
expectancy for successful performance, what
could you do to increase this person
expectancy?
4. How could a professor use equity, expectancy
and goal-setting theory to motivate student’s
performance?
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CHAPTER 4
GROUPS AND
ORGANIZATIONAL PROCESS
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Learning Objectives
• After reading this chapter, you will understand
the following:
1. What are groups and teams?
2. Types of group.
3. How to differentiate between formal and
informal group
4. How to identify the key factors in explaining
the groups behaviour.
5. Groups versus teams.
6. Challenges before effective teamwork.
7. How to build high performance team.
8. Contemporary issues in managing teams.
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Differences Between Groups and
Teams
• A group refer to two or more individuals
interacting and interdependent, who have come
together to achieve particular objectives.
• A team refers to a group whose individuals efforts
results in performance that is greater that the
sum of the individual input.
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Defining and Classifying group
• Groups can be divided into formal and informal
groups.
• Formal groups may include command group and
task force.
• Task force can be either permanent or temporary.
• Usually a team is not listed in the organizational
chart, it is captured in the relationships between
individuals in the organizations that reflects how
the organizations operates and its management
style.
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Types of Group
1. Formal Group
• Formally appointed by the organization for a certain
function or task. Usually it is defined by the
organization’s structure.
• Based on the nature of the tasks.
a. Functional or command group: this work group
consists of manager and his/her subordinates.
b. Task force : formed for a specific purpose to assist
some tasks of the functional group. It divides into
permanent tasks force, temporary tasks force,
projects team, ad-hoc committee.
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2. Informal Groups
• Formed by employee for social purposes
based on friendship or interest. It is neither
formally structured nor organizationally
determined.
• Friendship group : a group of employee who
usually go out together for lunch, golfing,
shopping, etc.
• Interest group : a group of employee who
congregate based on specific interests such as
music.
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3. Group Member’s Resources :
• Group performance depends on the resources
group members have and are contributing
towards group’s functioning.
• Group member’s ability in terms of
knowledge, skill and attitude (KSAs), and their
personality and mindset shapes the group
output.
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Stages of Group Development
Five stages of group development :
Norming
(III)
Performing
(IV)
Adjourning
(v)
Storming
(II)
Forming
(I)
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• Punctuated Equilibrium Theory
a. First Phase
• Team will defined the goals in the first
meeting. The team’s activities will be driven
by transition.
• About halfway the given period, a transition
happens to signify the end of the first phase.
• The transition will result in drastic change in
team’s activities.
b. Second Phase
• Following the transition the second phase inertia
will take over with heighted level of activities
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Group Properties: Explaining Group
Behaviour
1. Composition : refers to the nature and attributes
of team members.
2. Role : it is imperative that members understand
their role in their teams or groups.
3. Size: five to seven members have an advantage
in that they are small enough to allow for
interaction and big enough to generate ideas.
4. Norms : form of expectations with regards to the
behaviour of its team member.
5. Cohesiveness : refers to the degree to which
members are attracted to each other and are
motivated to stay in group.
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REV 02
6. Formal Leaderships : leader in such groups is the
main representative and exerts influence on
group tasks and members.
7. Status Congruence : is social raking within the
group. It can be function of title level of pay,
seniority and similar to such criteria.
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REV 02
Work Group as an Open System
INPUT
People
PROCESS
Tasks
Norms
Resources
Conflicts
Goals
Cohesion
Size
Decisions
Information
Communication
OUTPUT
Tasks Performance
Team Viability
Member’s
satisfaction
Technology
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Groups versus Teams
Dimensions
Groups
Teams
Leadership
Formal-established
Shared roles
Orientation
Common goal
Common commitment
Goal
Share information
Collective performance
Performance
Sum of individual output
Collective and synergistic
Synergy
Neutral (sometimes negative) Positive
Accountability
Individual
Individual and mutual
Skills
Random and Varied
Complementary
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Types of Teams
• Generally several types of teams are found in the
organizations:
1. Problems-solving teams : group of five to 12
employees from the same department
working on the ways to improve quality,
efficiency and their work environment.
2. Self-managed work teams : also known as
self-directed work teams and consists of 10 to
15 employees who managed their own work
and take the responsibilities of their
supervisors.
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REV 02
3. Cross-functional teams : employee from
different work areas or functions working
together to achieve a task.
4. Virtual teams : teams that use computer
technology to connect geographically dispersed
team members.
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REV 02
Team Issues
1. Team Performance : manager expectation of
sudden and realistic performance in an team is
unrealities.
2. Team Diversity : multi culture and multi national
work force is a common phenomena.
3. Team Rejuvenation : team get affected by the
various group syndromes like group link, conflict
and stagnancy.
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REV 02
Challenges Before Effective Teamwork
• Some suggestions for enhancing effectiveness involve:
1. Small team size (with 8-12 members)
2. Continuous re-skilling
3. Clearly outlined tasks
4. Structural support to accomplish goals
5. Setting of roles for interpersonal and behavioural
dealing
6. Innovation and newest in team decision making
• Tools to achieve team effectiveness are cooperation,
communication, training and rewards.
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Building a High Performance Team
• There are several ways to improve the effectives of
teams or group including:
1. Setting clear team goals
2. Have a plan for improvement
3. Have clear roles
4. Clear communication
5. Team member’s behaviour
6. Proper procedure for decision making
7. Equal involvement
8. Set guidelines for group norms
9. Understand the group process
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REV 02
Contemporary Issues in Managing
Teams
a. Quality of work life
• Besides achieving high level of performance in term of
productivity, quality as well as being cost efficient, the
team members enjoy the good quality of work life in
term of job satisfaction, growth needs satisfaction,
social needs satisfaction, group satisfaction, organization
commitment and trust.
b. Getting people to be team players
• According to Wellins (1992), a good selection system
should have three major features namely accurate, fair
and efficient through out the process of the job analysis.
• With the right mix of the members, they will complete
their projects and activity with higher performance.
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Revision Questions
1. What are the differences between formal and
informal groups?
2. What are different types of teams?
3. Describe and compare the two model of group
development.
4. What are the key factors in explaining groups
behaviour?
5. How do you turn individuals into team players?
6. How do you create an effective team?
7. What are the cotemporary issues in managing
teams?
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REV 02
CHAPTER 5
COMMUNICATION
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REV 02
• After reading this chapter, you will understand
the following:
1. What is communication.
2. How managers influence others through
communication.
3. Types of communication.
4. Organizational communication.
5. Barriers to organizational communication.
6. Informal communication.
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REV 02
What is communication
• (1) Sender has an idea → (2) Sender encodes idea →
(3) Sender transmit - ((NOISE))→ (4) Receiver gets
message → (5) Receiver decodes message → (6)
Receiver gives feedback.
• Effective communication: enables managers to
influence others to adopt the suggested ideas; know
importance of listening, speaking and interpersonal
communication.
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REV 02
Types of communication:
1.
2.
3.
4.
5.
Interpersonal.
Formal and Informal communication.
Internal and External communication.
Non-verbal communication.
Active listening.
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REV 02
Organizational Communication
• A network of information within an organization
created for the purpose of achieving organization
goals.
• It is a process by which information is managed
in an organization and involves all types of
communication.
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REV 02
Three Prominent Communication Flow
1. Downward Communication:
• Normally pertaining to instructions such as
implementation of goals and strategies,
procedures and practices, and performance
feedback among others.
2. Upward Communication:
• Message that flow from the lower to higher levels
in the organization's hierarchy.
3. Horizontal Communication:
• Lateral or diagonal exchange of information
among workers.
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• Decentralized networks are those where
everybody is able to communicate with each
other.
• Centralized network occurs when superior
communicator to all employees, facilitating faster
decision making.
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REV 02
Communication Barriers
•
Distortion to the message due to the
interruptions or noise in the communication
process.
1. Perceptual differences.
2. Language differences.
3. Filtering of information.
4. Poor listening.
5. Apathy or differing emotionality.
6. Cultural differences.
7. Physical distraction.
8. Mixed message.
9. Information Overload.
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REV 02
Informal Communication
•
•
Grapevine: distortion or garbled information
generated false information.
3 types:
1. The single-strand chain: each person passes
the information on the next person.
2. The cluster chain: telling 2 or 3 other persons
with whom they usually have close contact.
3. The gossip chain: a simply tells everyone.
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REV 02
Communication Strategies in Global
Organization
1. Open Communication
2. Dialogue
3. Crisis Communication
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Revision Question
1. What is communication and describe the
communication process?
2. How do managers influence others through
communication?
3. What are the differences between formal and
informal communication?
4. What are the barriers to Organization
Communication and how you overcome these
barriers?
5. What is Grapevine? Explain three (3) types of
Grapevine.
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REV 02
CHAPTER 6
POWER, INFLUENCE
AND
POLITICS
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Learning Objectives
•
After reading this chapter you will understand the
following:
1. What is power and influence?
2. Differences between leadership and power.
3. Differences between authority and power.
4. Bases of power.
5. What is dependency?
6. Power tactics that influence others.
7. Power in group: coalition.
8. Sexual harassment: unequal power in the workplace.
9. Politic: power in action.
10.Empowerment.
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REV 02
What is power and influence?
• Power: the capacity to influence others.
• Influence: any behaviour that attempts to alter
someone's attitudes or behaviour.
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REV 02
Differences between Leadership and
Power
• Leadership: an ability to lead someone towards
certain direction.
• However, in order to lead someone, a leader
must have the Power.
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REV 02
Differences between Authority and
Power
• Power: ability to influence others to bring about
desired outcomes
• Authority: Flows down the vertical hierarchy;
prescribed by the formal hierarchy, vested in the
position held.
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REV 02
Bases Power
1. Formal Power.
• Coercive power: result of fear
• Reward power: directives to the positive benefits
• Legitimate power: an agreement among members
• Information power: due to the information someone
has.
2. Personal power.
• Expert power: due to skills @ knowledge
• Referent power: due to the desirable resources that
someone has.
• Charismatic power: due to personality and
interpersonal styles.
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REV 02
Dependency: The Key To Power
• Dependency: lack of freedom to exercise
judgement.
• One way to create power by increasing
dependency.
• Individuals and work units are more powerful
when they are dependent.
• Employees, work units and organization reduce
substitutability by controlling tasks, knowledge
and labour, and by differentiating themselves
from competitors.
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REV 02
Power Tactics: Influencing Others
• Power tactic: turning power into action.
• Employees will engage themselves in
influencing process in order to gain power.
• Each tactics is used depending on the
objectives, situations that they are currently in
and the target of influencing process.
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• Types of Tactical Dimensions:
1. Reason.
2. Friendliness.
3. Coalition.
4. Bargaining.
5. Assertiveness.
6. Higher Authority.
7. Sanctions.
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REV 02
Power in Group: Coalition
• Coalition:
influence tactics used in the
organization to gain power.
• A strategy when informal groups bind together to
achieve certain objective.
• When a group starts to bind together and back up
each other, their power will be stronger and
difficult to be ignored by management.
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REV 02
Sexual Harassment: unequal power
• Sexual harassment: a situation referred to as
unwelcome advances, request for sexual favours,
and other verbal or physical conduct of sexual
nature.
• Can occurs within the organization by involving
many parties.
• Such as management and employees as well as
employees between employees.
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REV 02
Politics: Power in Action
• Politic involving competition among employees.
• Situation in group: an individual who going to
practice power to influence others in the groups;
that individual is engaged with an activity called
politics; those who having good interpersonal
skills and excellent politics skill will outshine
others and manage to gain control and power in
that particular group.
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REV 02
Power and political tactics in
Organization
• Organization politics: influence tactics to gain
power that other perceive to be self-serving
behaviour to gain self-interest, advantages
and benefits at the expense of others and
sometimes contrary to the interest of the
entire organization at work unit.
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Empowerment
• Its defined as a process by which managers help
•
each to acquire and use the power needed to make
decisions affecting themselves and their work.
Guidelines for implementing empowerment:
1. Designing role clarity and role responsibilities
for all the managers in the organization.
2. Planning to be integral for all the organization
members.
3. Strong communication network for facilitating
exchange of communication at all the levels of
the organization.
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Revision Question
1. What is the definition of Power?
2. What are the differences between leadership and
power?
3. What are the bases of power? Give specific real-life
examples of each.
4. How does one create dependency?
5. How many power tactics do you know? Explain
each tactics.
6. Building coalition is one example of power in
Groups? How does are build coalition?
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CHAPTER 7
LEADERSHIPS
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Learning Objectives
•
After reading this chapter, you will understand the
following:
1. The
difference
between
leadership
and
management.
2. The different theories of leadership.
3. The two inspirational approaches to leadership.
4. The link between emotional intelligence and
leadership.
5. Contemporary issues pertaining to leadership.
6. What is meant by neuroleadership.
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REV 02
What is Leadership?
•
•
Leadership is the process of influencing
individuals and group to achieve goals.
Roles of leadership:
1. Shares organizations vision with people.
2. Recruit, trains and retains.
3. Models positive behaviour.
4. Challenges, provokes and stimulates
intellectually.
5. Discovers talents.
6. Build the culture of creativity and innovation.
7. Instils ownership.
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Manager versus Leader
MANAGER
LEADER
Rational:
Complexity;
Planning and Budgeting Targets/
Goals; Organizing and Staffing;
Controlling and problem solving.
Intuitive:
Change;
Setting Direction- Visions;
Aligning people;
Motivating 'Inspiring/ Moving'.
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Traits Theories
• Traits play a central role in differentiating leader
from non-leaders.
• Seven traits associated with effective leadership:
1. Drive.
2. Desire to lead.
3. Honesty and integrity.
4. Self-confident.
5. Intelligence.
6. Job-relevant knowledge.
7. Extraversion.
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Behavioural Theories
• Leadership is central to performance and other
outcomes.
• Four main behavioural leadership theories are:
1. Ohio State Studies
2. University of Michigan Studies
3. The Managerial Grid
4. The Scandinavian Studies
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REV 02
Contingency Theories
•
Consider other aspects of leadership situation to
get predict outcomes.
1. Fiedler model.
2. Hersey and Blanchard's Situational Theory
(SLT).
3. Leader-member Exchange Theory (LMX).
4. Path- Goal Theory.
5. Leader-Participation Model.
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Inspirational Theories
•
Views leaders as individuals who inspire
followers through their words, ideas and
behaviour.
1. Charismatic Theories
2. Transformational Leadership
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Emotional Intelligence and Leadership
Effectiveness
•
Great leader demonstrate 5 key component:
1. Self-awareness
2. Self-management
3. Self-motivation
4. Empathy
5. Social skill
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Neuroleadership
• The study of leadership through the lens of
neuroscience.
• Explores central elements of leadership such as
self-awareness, awareness of others, in sight,
influencing and decision making.
• Understanding the level of the cognitive level and
investigate how leaders make decision.
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What is Trust
•
•
Trust: it is belief or hope that another will
neither through words, actions or decisions
act opportunistically.
5 key dimension that form the concept of
trust:
1. Integrity: refer to truthfulness.
2. Competence: covers an individuals
technical knowledge and interpersonal
skills.
3. Consistency: concern a persons reliability,
predictability and good judgement in
handling situations.
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4. Loyalty: the willingness to protect and
serve face for another person.
5. Openness: the ability to rely an another
to give you the full truth.
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•
Three types of trust:
1. Deterrence-based trust: founded on fear of
retaliation if the trust is violated.
2. Knowledge-based trust: based on the
behavioural predictability that comes from
past interactions.
3. Identification-based trust: build because the
individuals
understand
each
others
intentions and the others wants and desires.
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Revision Question
1. What is leadership and how is it different from
management?
2. What are the limitations of behavioural
theories?
3. List and describe the various contingency
theory?
4. Describe the two inspirational approaches to
leadership (charismatic and transformational
leadership)
5. What is Neuroleadership?
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REV 02
CHAPTER 8
CREATIVITY, INNOVATION
AND CULTURE
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Learning objectives
•
After reading this chapter , you will understand
the following:
1. Why do organizations need to change to
sustain competitive advantage?
2. What is meant by creativity and innovation?
3. Innovation for competitive advantage.
4. Change and innovation.
5. What is culture?
6. Why is it important to have culture that
supports innovation?
7. Characteristics of an innovation culture.
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Creativity and Innovation
• Creativity refer to the ability to combine ideas in
unique way or to make unusual association
between ideas.
• Innovation is the useful products, services or
work methods resulting from the outcomes of
the creative process.
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Innovation for Competitive Advantage
•
Four important factor from innovative
activities, to gain competitive advantage
1. innovations to be hard to replicate.
2. Innovations is response to the needs of the
environment.
3. Innovations by product or service
leadership to exploit a particular industry's
timing characteristic.
4. Innovations to rely on capabilities and
technologies readily accessible to the
organization.
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Change and Innovation
• Change is to make or become different.
• Bartols et al. (2001), “puts it that all innovation
implies changes but not all change implies
innovation, since changes may not use new ideas
or be major improvements.”
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REV 02
The Change Management and
Innovation Process
• Managers as change agents should be motivated
to initiate change because it is their duty to
improve organization's performance.
• Initiating change involves identify what
organizational areas need to be changed and
putting the change process in motion (Robbins
and Coulter, 2006).
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Stimulating and Nurturing Innovation
• An organization that stimulate creativity develops
unique way to work and the outcomes of the
creative process are turned into useful products,
services or works method, is defined as
innovation.
• In order to get innovative products it will involve
both the inputs and transformation of those
inputs, but for transformation to take place it
required the right environment.
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Three Set of Variables that Stimulate
Innovation
Stimulate Innovation
Structural Variables
• Organic structure
• Abundant resources
• High inter-unit
communication
• Minimal time pressure
• Work and non-work
support
Human Resource Variables
• High commitment to
training
• High job security
• Creative people
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Cultural Variables
• Acceptance of ambiguity
• Tolerance of the
impractical
• Low external controls
• Tolerance of risks
• Tolerance of conflicts
• Focus on ends
• Open-system focus
• Positive feedback
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Culture
• Culture: defined as shared ways of thinking and
doing things
• Organization culture: basic pattern of shared
assumptions, values and beliefs that govern
behaviour within a particular organization.
• External adaption focuses on achieving goals and
dealing with those outside the organization.
• Internal integration is about creating a collective
identity and striving to match work method and
live together.
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• 3 main function of organizational culture:
1. It is deeply embedded form of social control.
2. It is also the ‘social glue’ that bonds people
together and makes them feel part of the
organizational experiences.
3. Corporate culture helps employees make
sense of the workplace.
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Relationship of environment and
strategy to corporate culture
External
Strategic Focus
Flexibility
Stability
Adaptability culture
Mission culture
Clan culture
Bureaucratic culture
Internal
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CHARACTERISTICS OF AN INNOVATION
ORGANIZATION
1.
2.
3.
4.
5.
6.
7.
8.
Willing to accept uncertainty.
Tolerance of impractical.
Low external control.
Risk tolerance.
Conflict tolerant.
Focus on results instead of methods.
Open-system focus.
Positive feedback.
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Revision Question
1. Why do organization need to be creative and
innovative?
2. What is an innovative culture? Discuss the
characteristics of an innovative organization.
3. Why it is important to have culture that supports
innovations.
4. Explain the differences between change and
innovation.
5. Explain five characteristics of an Innovative
Organization.
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REV 02
CHAPTER 9
HUMAN RESOURCES
IMPLICATION OF
ORGANIZATION BEHAVIOUR
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REV 02
Learning objectives:
• After reading this chapter, you will understand the
following:
1. Application of OB in HRM.
2. Organizational Human Resource Planning (HRP).
3. The individual factors in recruitment and
selection.
4. Performance
management
of
human
resources.
5. Employee relations and industrial relation.
6. Organizational Safety and health.
7. What is International HRM.
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Human Resource Management
• Main objectives of HRM:
1. To help the organization reach its goals.
2. To utilize knowledge, skills and abilities (KSA)
of its employees efficiently.
3. To motivate and train its employees for
personal and organizational growth.
4. To enhance employee job satisfaction and selfactualization.
5. Ensure quality of work life (QWL)
6. To inculcate the values of individual and
corporate social responsible.
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System Approach to HRM
Product/ Service
Subsystem
Functional
Subsystem
e.g.: Marketing and
finance
HR SYSTEMS
e.g.: Recruitment and
selection; Training
and Development,
etc.
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Technical
Subsystem
e.g.: Technology
and
equipment
162
Strategic HRM
REV 02
• SHRM: planned HRM and development approach
intended to enable an organization to achieve its goals
and gain competitive advantage.
Organizational Business
Strategy
Dynamic
Organizational
Environment:
- Internal
- External
Innovation
Improved
Quality
Optimal
Cost
Strategic
Organizational
Outcomes:
- Quality
- Productivity
-Efficiency
HRM strategy
- Recruitment and selection strategy
- Training and development strategy
- Performance and compensation strategy
Employee relation strategy
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Human Resource Planning (HRP)
• How do you plan human resources from the OB
viewpoint?
1. Attempt to place the right employees in the
right jobs at the right time.
2. HRP involves redesigning jobs to create the
right jobs to meet the changing needs of the
organization.
3. HRP also involves organizational level OB
analysis whereby may invoke strategic HR by
organizational leadership.
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Recruitment and Selection
•
Why do we need to understand with regard to
the individual factors in recruitment and
selection?
1. Job related attitudes include job satisfaction,
commitment and organizational citizenship
behaviour.
2. Understanding human attitude, behaviour
and personality.
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Performance Management
• Performance: the record of outcomes produced
on specified job function or activity during a
specified time period, a whole is equal to the
sum of performances on job function.
• OB implications: training the supervisor on how
to communicate and give feedback, motivational
tool; highlighting the issues at power, influence
and politic; Leadership.
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Compensation and Benefits
ORGANIZATIONAL BEHAVIOUR
COMPENSATION AND BENEFIT
DECISION
1 Introduction to OB
Determining compensation
5 Attitude and Behaviour at work
Job satisfaction
2 Perception and Learning
6 Motivation
Equity theory
Expectancy theory
Job design
Job characteristics model
7 Group and teams
Team based pay (PfP)
8 Communication
Wage and salary administration
9 Decision making
Overall compensation management
10 Power, Influence and Politics
Negotiationg employment contract
11 Leadership
Rewarding leadership
12 Culture and creativity/ Innovation
Rewarding creativity
14 Organizational Development and
Managing Change
Incentive System
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Employee Relations and Industrial
Relations
ORGANIZATION BEHAVIOUR
EMPLOYEE RELATION/ INDUSTRIAL
RELATIONS
1 Introduction to OB
General understanding of employee relation
2 Perception and learning
Perception of fairness
3 Personality
Psychological contract
5 Attitude and Behaviour at work
Organizational citizen behaviour
6 Motivation
Union or non-union
7 Group and teams
Contract
8 Communication
Management-labour communication
9 Decision making
Negotiation
10 Power, Influence and Politics
Managing Conflict; Sexual Harassment
11 Leadership
Managerial roles in contract negotiation
12 Culture and creativity / Innovation
Managing culture
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Organizational Safety and Health
• Relationship of various dimensions of organizational
behaviour safety and health is summarized below:
ORGANIZATIONAL BEHAVIOUR
ORGANIZATIONAL SAFETY AND HEALTH
3 Personality
Accident prone behaviours
4 Emotions and stress
5 Attitude and Behaviour at
work
Employee assistance program
6 Motivation
Motivating employees to practice safety
Organizational justice
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International Human Resource Management
ORGANIZATION BEHAVIOUR
INTERNATIONAL HRM (IHRM)
1 Introduction to OB
Competitive advantage
2 Perception and learning
Training of experts
3 Personality
Expatriation
5 Attitude and Behaviour at work
Surviving
6 Motivation
Overseas Assignment
7 Group and teams
Multicultural team
8 Communication
9 Decision making
Cross-cultural communication
Making decision in multicultural
setting
10 Power, Influence and Politics
Influencing multicultural persons
11 Leadership
12 Culture and creativity /
Innovation
Global leaders
Diverse workforce management
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REV 02
Revision Question
1. What is the link between OB and HRM?
2. How do you plan human resources from OB
viewpoint?
3. What are the individual factors to be considered
in recruitment and selection?
4. What considerations should be taken for training
and developing employees?
5. What OB theories are applicable in determining
how and what to pay employees?
6. What are OB factors that contribute to
organizational safety and health?
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