Organizational Behavior Part 4
Organizational Behavior Part 4 BUAD309
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Date Created: 02/04/16
Part 4 Chapter 13 Power – a capacity that A has to influence the behaviors of B so that B acts in accordance with A’s wishes Dependence – B’s relationship to A when A possesses something that B requires Created by importance, scarcity, and nonsubstitutability Coercive power – a power base that is dependent on fear of the negative results from failing to comply Can backfire Reward power – compliance achieved based on the ability to distribute rewards that others view as valuable Legitimate power – the power a person receives as a result of his or her position in the formal hierarchy of an organization The most effective forms of power: Expert power – influence based on special skills or knowledge Referent power – influence based on identification with a person who had desirable resources or personal traits Power tactics – ways in which individuals translate power bases into specific actions 1. legitimacy = authority position 2. rational persuasion = logical arguments a. only tactic effective across all organizational levels 3. inspirational appeals = emotional commitment a. works best when used downward 4. consultation = involving someone in decision 5. exchange = reward with benefits in exchange for request 6. personal appeals = friendship a. works best when used laterally 7. ingratiation = praise before asking a request 8. pressure = warnings and threats a. works best when used downward 9. coalitions = support of others to persuade Political skill – the ability to influence others in such a way as to enhance one’s objectives Sexual harassment – any unwanted activity of a sexual nature that affects an individual’s employment and creates a hostile work environment For managers to prevent sexual harassment: create active policy that defines sexual harassment, informs employees that they can be fired for this, and establishes procedures for complaints reassures employees that they will not be punished for complaining investigate every complaint make sure offenders are disciplined raise awareness Political behavior – activities that are not required as part of a person’s formal role in the organization but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization Defensive behaviors – reactive and protective behaviors to avoid action, blame, or change Impression management – the process by which individuals attempt to control the impression others form of them Summary: politically astute workers have higher job performance evaluations, salary increases, and job satisfaction than those who are not familiar Lecture 1: Basis of Power Power – a capacity that A has to influence the behaviors of B so that B acts in accordance with A’s wishes May exist but not be used Dependence – B’s relationship to A when A possesses something that B requires Someone has power over you if they have something you want Leaders use power to attain group goals o Goal compatibility between leader and led o Leadership focuses on the downward influence on one’s followers Formal power legitimate power – hierarchy and authority reward power – provide promotions, pay raises, etc. coercive power – forcing people into doing something and having the ability to sanction (usually backfires) o reward and coercive can be informal Personal power (most effective, positively related w/ job satisfaction and org. commitment) Expert power – having specialized knowledge for which one becomes known for having Referent power – other people listen bc the referent person is respected General dependency postulate – you gain power over someone when you have something they want o Dependence is inversely proportional to the alternative resources of supply Creates dependence: Importance – ability to absorb uncertainty, work is viewed as important and critical Scarcity – person has control of scarce resources Nonsubstituability – no one else can provide something Lecture 2: Influence Tactics 1. Legitimacy – based on hierarchical position 2. Rational persuasion – using logic to influence a. Highly effective when audience is highly interested in outcome b. Can be used for upward, downward, and lateral 3. Inspirational appeals – using emotional appeals to influence a. Highly effective when audience is highly interested in outcome 4. Consultation – involvement in decision making a. Highly effective when audience is highly interested in outcome b. Less negative reactions 5. Exchange – providing a reward in exchange for influence 6. Personal appeals – based on loyalty and friendship 7. Ingratiating – giving praise for influence a. Less negative reactions 8. Pressure – negative consequences if things aren’t done a. Tends to backfire 9. Coalitions – likeminded people get together for joint influence Individualistic countries – power in personalized terms to advance personal ends Collectivist countries – power seen in social terms and a way to help others Political skill – ability to influence others for their own objectives (more fit = more influence) Power can lead people to put their own interests before anything else Power can cause people to react negatively and can lead to overconfidence power can enhance moral awareness sexual harassment – any unwanted activity of a sexual nature that affects an individual’s employment and creates a hostile work environment most likely to occur w/ large power differential Lecture 3: Organizational Politics Political behavior – activities not requires as part of formal role but attempts to influence distribution of adv./disadv. Within org outside of job requirements politics is in eye of beholder “kissing up vs developing relationships” responses to political behavior is generally negative: decreased job satisfaction, increased stress, increased turnover, reduced performance and defensive behaviors (avoiding action, avoiding blame, avoiding change) immoral people can justify almost anything recognize the ability of power to corrupt impression management – attempting to control how people see them self-monitors can have high cost is intentionally misrepresented IM effectiveness depends on situation Chapter 15 Organizational structure – the way in which job tasks are formally divided, grouped, and coordinated Work specialization – the degree to which tasks in an organization are subdivided into separate jobs Departmentalization – the basis by which jobs in an organization are grouped together Chain of command – the unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom Authority – the rights inherent in a managerial position to give orders and to expect the orders to be obeyed Unity of command – the idea that a subordinate should have only one superior to whom he or she is directly responsible Span of control – the number of subordinates a manager can efficiently and effectively direct Centralization – the degree to which decision making is concentrated at a single point in an organization Formalization – the degree to which jobs within an organization are standardized Simple structure – an organization structure characterized by a low degree of departmentalization, wide spans of control, authority, centralized in a single person, and little formalization Bureaucracy – an organization structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control and decision making that follows the chain of command Matrix structure – an organization structure that creates dual lines of authority and combines functional and product departmentalization Virtual organization – a small, core organization that outsources major business functions Boundaryless organization – an organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams Mechanistic model – a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization Organic model – a structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making Innovation strategy – a strategy that emphasizes the introduction of major new products and services Cost minimization strategy – a strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting Imitation strategy – a strategy that seeks to move into new products or new markets only after their viability has already been proven Technology – the way in which an organization transfers its inputs into outputs Environment – institutions or forces outside an organization’s performance Lecture 1: Elements of Organizational Structure Organizing – process of arranging tasks, people, and other resources to work together to accomplish a goal Manager task Getting the right things to the right places at the right time Organizational structure – the way in which job tasks are formally divided, grouped, and coordinated Formal arrangement that can be drawn on a chart Work specialization – division of labor into separate activities Increased efficiency through invention Vertical – hierarchy to help coordinate Horizontal – coordinated tasks to complete job When work becomes too specialized we lose efficiency and productivity Formalization – degree of standardization in jobs Highly formalized jobs give employees little discretion and freedom in how to perform that job More standardization = less input in how the job is actually done Lowly formalized jobs give employees more discretion Departmentalization – how jobs are group together so they can be coordinated Group by function Group by product/service Group by geography Group by process Group by customer/client Chain of command – line of authority from top to bottom of an organization Who reports to who Less relevant bc of technology Authority – hierarchy and power and expectation of job completion Unity of command – each person has a specific boss/manager to report to Span of control – how many individuals report to a single manager Centralization – concentrated decision making at the top of the organization Decentralized organization – allows more people to have more discretion which leads to faster decisions and employees feel less alienated from their work Lecture 2: Organizational Designs Simple structure – an organization structure characterized by a low degree of departmentalization, wide spans of control, authority, centralized in a single person, and little formalization Most widely practiced Manager and owner are the same in small businesses Inexpensive, simple, fast, and flexible Accountability is clear Difficult to maintain when it grows and risky bc everything depends on this one person Functional structure –a grouping of jobs by specialty area Bureaucracy – characterized by standardization Highly routine operating tasks o Formalized rules and regulations o Tasks performed in functional departments o Centralized authorities o Narrow spans of control o Decision making falls in chain of command Highly efficient Subunits conflict POV, unit goals dominate and differentiate, and clash, covers weak management Matrix structure – structure that combines functional and product departmentalization Strength = putting specialists together Product departmentalization facilitates coordination Provides clear responsibility for all activities related to a product, but additional coordination costs Lecture 3: New Design Options Virtual organization – typically a small, core organization that outsources major business functions Modular or network organization Very centralized with little or no departmentalization Outsources units provide all necessary functions Boundaryless organization – try to eliminate chain of command, limitless span of control, replaces departments w/ empowered teams Cross-hierarchical teams Participative decision making Breaks down geographic and cultural barriers Teams organized around processes Lean organization: New organizational forms – improve agility by creating a lean, focused, flexible organization Downsizing – effort to make an organization leaner by selling off business units, closing locations, reducing staff Communicate early, have employees participate, severance assistance, to reduce negative impacts Lecture 4: Determinants of Organization Structure Mechanistic model – a structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization High specialization and formalization Rigid departmentalization Clear chain of command Narrow spans of control centralization Organic model – a structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making cross-functional and cross-hierarchical teams free flow of info wide spans of control decentralization, employees are empowered low formalization, breaking down bureaucracy Innovation strategy – a strategy that emphasizes the introduction of major new products and services organic model of organization Cost minimization strategy – a strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting mechanistic model of organization Imitation strategy – a strategy that seeks to move into new products or new markets only after their viability has already been proven mechanistic and organic: mix of loose w/ tight properties, tight controls over current activities and looser controls for newer undertakings Determinants of Organizational Structure: 1. Organizational size: large organizations tend to have more specialization, departmentalization, vertical levels, and more rules than small organizations. Larger = bureaucratic/mechanistic. Small = organic 2. Technology: organizations engaged in non-routine activities tend to prefer organic structures while those performing routine activities prefer mechanistic 3. Environment: outside forces that affect org. performance. a. Capacity – resources abundant or scarce b. Volatility – dynamic or stable c. Complexity – simple or heterogeneous d. Dynamic environments = organic model Work specialization = higher employee productivity No relationship between span of control and employee satisfaction or performance Less centralization = higher satisfaction National culture influences the preference for structure Chapter 16 Organizational culture – a system of shared meaning held by members that distinguishes the organization from other organizations Dominant culture –a culture that expresses the core values that are shared by a majority of the organization’s members Core values – the primary or dominant values that are accepted through the organization Subcultures – minicultures within an organization, typically defined by department designations and geographical separation Strong culture – a culture in which the core values are intensely held and widely shared Organizational climate – the shared perceptions organizational members have about their organization and work environment Ethical work climate (EWC) – the shared concept of right and wrong behavior in the workplace that reflects the true values of the organization and shapes the ethical decisionmaking of its members Institutionalization – a condition that occurs when an organization takes on a life of its own, apart from any of its members, and acquires immortality Socialization –a process that adapts employees to the organization’s cultures Prearrival stage – the period of learning in the socialization process that occurs before a new employee joins the organization Encounter stage – the stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge Metamorphosis stage – the stage in the socialization process in which a new employee changes and adjusts to the job, work group, and organization Rituals – repetitive sequences of activities that express and reinforce the key value of the organization, which goals are most important, which people are important, and which are expendable Material symbols – what conveys to employees who is important, the degree of egalitarianism top management desires=s, and the kinds of behavior that are appropriate Positive organizational culture – a culture that emphasizes building on employee strengths, rewards more than punished, and emphasizes individual vitality and growth Workplace spirituality – the recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community Lecture 1: Organizational Culture Organizational culture – a system of shared meaning held by members that distinguishes the organization from other organizations Each organization has its own culture and way of viewing the world Provides what makes the organization whole Characteristics of organizational culture: Innovation and risk taking – degree in which organizations encourage innovation and risk taking Attention to detail – degree to which organizations encourage paying attention to detail Outcome orientation – products produces and services provided People orientation – how managers are concerned about how decisions will effect people employed Team orientation – degree to which work is organized around team rather than individuals Aggressiveness – how competitive/cooperative the organization is at different levels Stability – to what extent are decisions emphasizing the status quo Types of organizational culture: Collaborative and cohesive clan – emphasizes teamwork Innovative and adaptable adhocracy – flexible, emphasizes risk taking and new ideas Controlled and consistent hierarchy Competitive and customer focused market – emphasizes Organizations have dominant culture and numerous sets of subcultures. Dominant culture –a culture that expresses the core values that are shared by a majority of the organization’s members Core values – the primary or dominant values that are accepted through the organization Subcultures – minicultures within an organization, typically defined by department designations and geographical separation Strong culture – core values are intensely held and widely shared High formalization OR strong culture = predictability, orderliness, and consistency Lecture 2: Functions of Culture Culture… Conveys a sense of identity Facilitates the generation of commitment Enhances stability of the social system Serves as a sense-making and control mechanism Defines the rules of the game -Trend toward decentralized organizations makes culture more important. -But establishing a strong culture becomes harder. -People who are more in tune with the culture are more likely to get better performance reviews and more likely to get promotions. Culture creates climate o Organizational climate – shared perceptions about the organization and work environment o Climate produce behavior and influence habits o Ethical work climate (EW) – shared concept of right and wrong Reflects true values The most innovative companies (open, unconventional, collaborative) have innovative culture Lecture 3: Culture Creation Culture…as an asset and *liability: Contributes to the bottom line Becomes institutionalized* Becomes barrier to change* Becomes barrier to diversity* Becomes barrier to acquisitions and mergers* How a Culture begins: Ultimate source – founders o Founders have organizational vision o New organizations are typically small Culture creation 1. Founders hire employees like themselves 2. Employees are socialized 3. Founders’ behavior influences employees’ To keep culture alive Selection – picking the right people with the right values Top management – reinforcing values Culture is transmitted (gradually and casually) through: Stories – usually about adversity of founders to establish organization, tells us what values to embrace Rituals – ceremonies for important occasions Symbols Language Ethical Culture – organizational Culture likely to promote ethical standards: High in risk tolerance (learn from mistakes) Low in moderate aggressiveness Focus on means as well as outcomes To create a more ethical culture, managers need to… Be a visible role model Communicate ethical expectations Provide ethics training Reward ethical acts, punish unethical acts Provide protective mechanisms -Trending: positive organizational culture by rewarding more than punishing, building on employee strengths and recognizing individual growth, HOWEVER it does not cure-all Workplace spirituality – the recognition that people want meaningful work Spiritual culture: benevolence, strong sense of purpose, trust/respect, open-mindedness Chapter 18 (pages 530-549, 561) Change – making things different Planned change – change activities that are intentional and goal oriented Change agents – persons who act as catalysts and assume the responsibility for managing change activities Unfreezing – changing to overcome the pressures of both individual resistance and group conformity Movement – a change process that transforms the organization from the status quo to a desired end state Refreezing – stabilizing a change intervention by balancing driving and restraining forces Driving forces –forces that direct behavior away from the status quo Restraining forces – forces that hinder movement from the existing equilibrium Action research – a change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate Organizational development (OD) – a collection of planned change interventions, built on humanistic democratic values, that seeks to improve organizational effectiveness and employee well-being Sensitivity training – training groups that seek to change behavior through unstructured group interaction Survey feedback – the use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested Process consultation (PC) – a meeting in which a consultant assists a client in understand process events with which he or she must deal and identifying processes that need improvement Team building – high interaction among team members to increase trust and openness Intergroup development – OD efforts to change the attitudes, stereotypes and perceptions that groups have to each other Appreciative inquiry (AI) – an approach that seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance Innovation – a new idea applied to initiating or improving a product, process, or service Idea champions – a individuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented Learning organization – an organization that has developed the continuous capacity to adapt and change Single-loop learning – a process of correcting errors using past routines and present policies Double-loop learning – a process of correcting errors by modifying the organization’s objectives, policies, and standard routines Lecture 1: Organizational Change Forces of change: Nature of the workforce – cultural diversity, again population, increased immigration/outsourcing Technology – faster, cheaper, mobile Economic shocks – rise and fall of global housing market Competition – global competitors, mergers/consolidations Social trend – increased environmental awareness, liberalization World politics – rising healthcare costs, negative social attitudes, opening markets of China Planned change – intentional and goal oriented 1. Improve ability of organization to adapt 2. Change employee behavior Change agents – people responsible for managing change Resistance to change Individual sources Habit Security Economic factors Fear of the unknown Selective info processing Organizational sources Structural inertia Limited focus of change Group inertia Threat to expertise Threat to establish power relationships Overcoming resistance to change Education and communication Participation Building support and commitment Develop positive relationships Implementing changes fairly Manipulation and cooptation (partially manipulation and partially participation) Selecting people who can accept change Coercion Change threatens status quo, inherently political. Incentive for change usually comes from outside agents, people who have less invested, people removed from OG power structure. Lecture 2: Approaches to Change Lewin’s 3 Step Model 1. Unfreezing 2. Movement 3. Refreezing Kotter’s 8 Step Plan for implementing change 1. sense of urgency 2. coalition to lead and implement 3. create vision 4. communicate vision 5. empower others to act 6. plan, create, and reward short term “wins” 7. consolidate improvements, reassess, make adjustments 8. reinforce action research – change process based on the systematic collection of data and selection process consists of 5 steps: 1. diagnosis 2. analysis 3. feedback 4. action 5. evaluation Provides 2 benefits: problem focused reduces resistance to change Organizational development (OD) – a collection of planned change interventions, built on humanistic democratic values, that seeks to improve organizational effectiveness and employee well-being values human and organizational growth, collaborative focuses on how individuals make sense of their work environment Underlying OD values – respect for people, trust/support, power equalization, confrontation, participation Intervention for change agents – sensitivity training, survey feedback, process consultation, team building, intergroup development, appreciative inquiry Lecture 3: Innovation Innovation – a new idea applied to initiating or improving a product, process, or service specialized kind of change Sources of innovation: structural variables o organic structures o slack resources o high inter-unit communication culture o encourage experimentation o reward successes and failures o celebrate mistakes Innovative orgs: promote training and development encourage change high job security idea champions – enthusiastically promote a new idea and ensure its implementation Learning organization – an organization that has developed the continuous capacity to adapt and change shared vision in a strong culture open communication (vertical and horizontal)
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