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Lecture notes, all lectures

Managing Organisational Behaviour (University of New South Wales)

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MGMT1002 Managing Organisational Behaviour


What is organisational behaviour?

 Organisational behaviour is a field of study that investigates the impact that

individuals, groups and structure have on behaviour within organisations, for the
purpose of applying such knowledge towards improving an organisation’s

o Individual level – Micro

o Team level – Messo
o Organisational level – Macro

Evidence based management

 Basing managerial decisions on the available scientific evidence

 E.g.
o Use frameworks to structure thinking
o Qualitative information, quotes, critical incidents
o Quantitative information
o Question assumptions


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What is personality?

 Personality is the sum total of ways in which an individual reacts and interacts with
others, measurable traits a person exhibits
 Personality traits
o Enduring (stable) characteristics that describe an individual’s behaviour
o E.g. shy, aggressive, submissive, lazy, loyal etc.
 Personality determinants
o Hereditary: factors determined at conception (biological, physiological and
inherent psychological make-up)
o Environment: where you grow up, upbringing etc.
o Situation: circumstances, events, etc.

Myers-Briggs Type indicator (MBTI)

 A personality test that taps into four characteristics and classifies people into 1 of 16
personality types
 Personality types:
o Extroverted vs. Introverted (E or I)
o Sensing vs. Intuitive (S or N)
o Thinking vs. Feeling (T or F)

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o Judging vs. Perceiving (P or J)

o THE SCORE: a combination of all four (eg ESFJ)

 A myers-Briggs Score
o Can be valuable for self-awareness and career guidance
o BUT should not be used as a selection tool because it has not been related to
job performance

The Big Five Model of Personality Dimensions

 Extroversion (E)
o Sociable, gregariousness and assertive
o FACETS: Gregariousness, Assertiveness
 Agreeableness (A)
o Good-natures, cooperative and trusting
o FACETS: Altruism, Cooperation
 Conscientiousness (C)
o Responsible, dependable, persistent and organised
o FACETS: Achievement striving, catiousness
 Emotional stability (N)
o Calm, self-confident, secure under stress (positive), versus nervous,
depressed, and insecure under stress (negative)
o FACETS: anxiety, anger
 Openness to Experience (O)
o Curious, imaginative, artistic and sensitive
o FACETS: imagination, intellect

The Big Five Evidence

 Heredity and environment

o Heredity accounts for approx half: openness 57%; extraversion 54%;
conscientiousness 49%; neuroticism 48%; agreeableness 42%

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 Does personality change over time

o High stability during adulthood but there is some maturation:
 On average, Assertiveness & Conscientiousness typically increase with
time, whereas Extraversion, Neurotism and Openness to experience
 But there are unique patterns of change
 Are there gender differences
o Women consistently report higher N and A
o Men often report higher extraversion and conscientiousness
 Does birth order impact personality?
o Sulloway argues yes; firstborns are more Conscientiousness & Extraversion,
but less Agreeableness and Openness to experience then laterborns
o Studies appear to be confounded: family size; subjects’ personality traits are
rated by people familiar with birth order (family & friends)

Work Applications

 Conscientiousness
o The best single predictor of job performance across ALL jobs
o Builds work motivation (set goals, direct effort, more persistent)
 Agreeableness
o Predicts performance in jobs with a large customer service component, or
when teamwork and collaboration are critical (e.g. interpersonal interaction).
 Emotional Stability
o Predicts performance across a wide range of jobs
o But some anxiety can be useful for performance
 Openness
o Success in training
o Related to creativity and to influence the ability to change
 Extraversion
o Predicts performance in jobs with a large social component or where status
driving behaviour is important (e.g. sales, management)
o Success in training


 Dimensions separate?
 Have we got the right number of factors?
 Do kids have 2 additional factors? irritability & activity
 Methodology “A psychology of the stranger’
 Descriptive not explanatory


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 Replicated across numerous cultures

 Not always the exacts same results


 Values are stable, evaluative beliefs that guide our preferences for outcomes or
courses of action in a variety of situations
 Values define right or wrong, good or bad
 Espoused vs. enacted
 Schwartz’s Values model

Values in organisations

1. Values are tightly linked to affect

2. Values refer to desirable goals that motivate action
3. Values transcend specific actions and situations
4. Values serve as standard
5. Values are ordered by importance relative to one another
6. The relative importance of multiple values guides action


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 An effective team has a combination of skills, profit and happiness

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 Fighting fairly: tips and tricks

o Address during team set-up
 Decision making and agenda
o Address during team action phase
 Language
 Supportive context
 Role model
 Constructive, solution-focused methods for resolving differences
 Conflict resolution: organisational responses
o Leader interventions
 Authoritative command

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 Coaches, negotiators, mediators

o Structural interventions
 Team composition
 Organisational structure
 resources

LO3 Challenges and solutions of different team types and stage

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Organisational structure

 how job tasks are formally divided, grouped and coordinated

 key elements:
o Work specialisation
o Departmentalisation
o Chain of command
o Span of control
o Centralisation and decentralisation
o Formalisation

Work Specialisation

 Tasks in the organisation are subdivided into separate jobs

 Division of labour
o It’s all about efficiency: employee skills, repetition, less between-job
downtime, specialised training and specialised equipment

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 Downsides:


 The basis by which jobs are grouped together

 Grouping activities by: function, product, geography, process, customer

Chain of Command

 Authority
o Right inherent in a managerial position to give orders and expect orders to be
 Chain of command
o Clarifies who reports to whom
 Unity of command
o Only one superior or supervisor

Span of Control

 The number of subordinates a manager can efficiently and effectively direct

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Centralisation and decentralisation

 Centralisation
o Decision making is concentrated at a single point in the organisation
 Decentralisation
o Decision making is spread throughout the organisation


 The degree to which jobs within the organisation are standardised

 High formalisation
o Minimum worker discretion
o Many rules and procedures to follow
 Low formalisation
o Maximum worker discretion
o Behaviours are non-programmed

Types of structures

 Simple structures
o Lack the standardisation that is the defining characteristic of bureaucracies
o Used successfully only in small and simple organisations

 Bureaucratic structures
o Arise as standardisation emerges as the primary means of coordination
o Types of bureaucratic structures
 Functional

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 Divisional

 matrix

 virtual/network organisational structure

 extreme models of organisational structure

Why do structures differ?

 Strategy
o Innovation, cost-minimisation, imitation strategy
 Organisational size
o As size increases become more mechanistic, more specialised, standardised

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 Technology
o Routine vs custom
 Environment
o Capacity, volatility and complexity

Which is the best structure?

Why are organisational structures important?

 Structure and motivation

o Structure impacts both the attitude and behaviours of the people within it

Job Characteristic model (Hackman & Oldham, 1976, 1980)

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 Skill variety
o Variety of different activities
 Task identity
o Completion of a whole and identifiable piece of work
 Task significance
o Substantial impact on the lives or work of other people
 Autonomy
o Freedom and discretion in scheduling the work and in determining the
procedures to be used in carrying it out
 Feedback
o Carrying out the work activities results in obtaining direct and clear
information about performance

Motivating Potential Score

 Predictive index that suggests motivation potential of a job

 People who work on jobs with high core dimensions are generally more motivated,
satisfied and productive

Vitamin model of job characteristics (Warr, 1987)

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Is more of each job characteristic always better? Not always, it depends on individual, team
and organisational contingencies

Social Characteristics

 Examples of social characteristics:

o Interdependence
o Feedback from others
o Social support
 Predict job performance and job satisfaction
 Stronger predictor of turnover intentions than motivational characteristics in JCM

Changing nature of work

 Work characteristic – Job satisfaction correlations (rc) across time

Other characteristics

 Knowledge characteristics
o Information processing
o Problem solving
o Job complexity
 Work context
o Work conditions
o Physical demands
o Ergonomics

Job Redesign – increases motivation

 Job rotation

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o The periodic shifting of a worker from one task to another

 Job enlargement
o The horizontal expansion of jobs
 Job enrichment
o The vertical expansion of jobs

Alternative work Arrangements

 Flextime
o Common core time period but have discretion in total workday from flexible
set of hours outside the core
 Job sharing
o Two or more people split 40 hours
 Telecommuting
o Work at home on a computer linked to office

Employee Involvement

 A participative process designed to encourage increased commitment to the

organisation’s success
 Accomplishment through:
o participative management
o representative participation
 work councils
 board representatives

Work organisation Design: Broad picture

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 major phases
o Divergent
o Convergent
 People differ in style but both important
 Recommend
o Ordered cyclical movement between phases
o All team members recognise the phase

Fishbone diagram

 Goal
o creates a structure for ideas to explore problem space thoroughly
 What is it?
o Categorise problems into groups of reasons and identify their order of
 When to use it
o Compare relative importance of causes

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1. State problem and set a time limit

- Variation: give individuals time to get their heads into gear
2. Establish rules
- Non-critical environment; facilitator enables this encouraging crazy ideas
- Identify as many ideas as possible
- Combine and piggy back ideas
3. Record ideas
- Get contributors to condense ideas
4. review

Categorisation, elimination and ranking

1. generate some category labels to synthesise ideas

- individual, team organisational levels
- selection, development, selection-development combination
- short vs long term solution
2. Agree on essential criteria for making decisions
3. Number all ideas so they can be readily identified (don’t use team member names)
4. Eliminate ideas that do not meet criteria AND/OR vote and rank ideas

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How-How Diagram

1. Write the primary outcome or decision on the left side; format as a question
2. Construct diagram by asking ‘how can this primary outcome be achieved?’
- Write on lines
- Keep lines far apart so you can expand your thoughts
3. Drill down into the action plan by continually asking ‘how?’
- Stop when actions are at a level that can be readily assigned to one person
or team
- Stop before plans become so specific that they are inflexible to planned


 Employee perceptions
o Feedback/reviews ‘in the moment’
o Qualitative research methods e.g. interviews
o Quantitative research methods e.g. surveys

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 Organisational outcomes
o Profit
o Customer ratings
o Employee absence and turnover (retention)
o Employee satisfaction and engagement

Empirical studies used to tease out causality

 Experiment
o Key feature = random assignment
 Quasi-experiment
o Typically focused on the impact of intervention
o Key feature = lack the element of random assignment
o Strength = external validity
o Problem = internal validity
o Types
 Within participants
 Match participants

Evidence based management to evaluate solutions

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Evaluating solutions: ongoing research provides ‘evidence based management’

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Interpersonal processes: motivation and conflict resolution

 Behfar, Peterson, Mannix & Trochim, 2009

 Problem: cognitive and affective conflict occur together, so how do we separate?

 Collins, Horton, Griffin, Mason and Parker

 Implications:
o Set goals and integrate with action plans (‘team agreement’)

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o Foster a supportive, trusting and positive culture

Organisational Development

 It is a collection of planned interventions, built on humanistic-democratic values,

that seek to improve organisational effectiveness and employee well-being
 Values:
o Respect for people
o Trust and support
o Power equalisation
o Confrontation
o Participation

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 Starts with real need assessment

 Training needs = standard or desired performance – present or actual performance
o Organisational analysis (objectives and resources)

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o Task analysis
o Person analysis
 Types
o On the job
o Off the job
 Transfer of training to job can be problematic
 Common methods (CIPD, 2007)

 Training is about today, development is for tomorrow

 Changes in ability, cognition, approaches
 Deep change may take a while or be related to a meaning experience (SEE)
 Training is ultimately about change
 Evaluating effectiveness (Kirkpatrick, 1977)
o Reactions
 Student evaluation of instructors e.g., ‘how much did you like the
o Learning
 Assessment
o Changes in behaviour
 E.g. behaviour on the job
o Results
 E.g. quality of performance, reduction of costs, absenteeism

Coaching and Mentoring

 Focused singularly
 Longer term and incremental
 Supports development
 Growth in the market
 Changes from informal to formal or vice versa over time

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 Coaching
o Process of equipping people with the tools, knowledge and opportunities
they need to develop themselves and become more effective (Peterson and
Hicks, 1995)
o Purposes:
 Setting: life skills, business and executive
 Correct deficiencies vs facilitating learning and optimising
 Mentoring
o Senior, more experienced employee who helps a younger, less experienced
employee become proficient in their organisational role (Kram, 1985)
o Two major purposes
 Career quidance
 Psycho-social support
 Often used to facilitate socialisation
o Information vs formal mentoring

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 Issues to consider when hiring coaches/mentors

o Qualifications
o Who is the client, who is debriefed
o Perceived credibility? Background and other characteristics
o Quality: does coach/mentor follow-up client?

Feedback interventions

 Multi-source feedback (London and Smither 1995)

o Types:
 Multisource feedback
 360 degree feedback
 Upward feedback
o Purpose: development, assessment or both?
o Assumptions of MSF
 Increased self-awareness and reflextivity
 Suggests area for skill and performance development
 Motivation: quantitative information provides benchmarks

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 Measurement theory: multiple sources > valid and reliable

o Does it work?
 On average, feedback interventions improve performance
 But over 1/3 of these intervention decrease performance! Sampling
error, feedback sign or existing theory cannot explain this
 Why? Feedback interventions change focus of attention:
 Task learning
 Task motivation
 Meta-tasks (inc self)
Lewin’s Three-Step change Model


What is motivation?

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Expectancy theory

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SMART goals

 Specific
 Measurable
 Achievable
 Related
 Time-framed
 Smart goals need good specific actions
o It is the step by step process to reach these that is equally important
o Small wins along the way
o So something towards it every time
o Trial new things

Management by Objectives (MBO)

MBO vs Goal-Setting Theory

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Why MBOs Fail

 Unrealistic expectations about MBO results

 Failure to allocate reward properly
 Cultural incompatibilities
 Lack of commitment by top mnagemnet

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Context of motivating employees: Current challenges

 Revised employment relationship

 Flatter organisations
 Changing workforce

The Components of an Attitude

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What is employee involvement?

 A participative process that uses the entire capacity of employees and is designed to
encourage increased commitment to the organisation’s success
 For example:
o Representative participation
o Works councils
o Board representative
o Quality circle

Causes of job satisfaction

 Pay
 Personality
 The work content/process

Rewarding employees: Four aspects

1. What to pay
2. How to pay
3. What benefits to offer
4. How to recognise employees

Why should organisations care about employee motivation?

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 Satisfied employees are more likely to

o Less absence
o Less turnover
o Go beyond the normal expectations of their job
 E.g. organisational citizenship behaviours
o Be more productive

Implications for managers to motivate employees

1. Understand the broad principles for the range of motivation theories

2. Know which motivation theories have the least and most research support
3. Describe the characteristics of effective goal setting and feedback
4. Identify points of leverage to boost employee satisfaction



 The study of leadership has been an important part of social science for well over a

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 There are many different definitions and perspectives on leadership

 Most definitions suggest that leaders exercise influence but have little else in
 The differences in the definitions of leadership influence the phenomenon that is
investigated and the interpretation of results

Definition of Leadership

 Riggio
o Defines leadership as “the ability to direct a group towards the attainment of
 Researchers have drawn a distinction between leaders and managers
o Manager – person who has formally designated authority
o Leader – an individual who displays the ability to direct a group towards the
attainment of goals – it is not always formally appointed
 Manager’s versus Leaders

Leadership Theory

 Research on leadership has proceeded in a series of stages

 Universalist theories
o ‘Great man/great woman’ belief
o Trait theory
 Behavioural theories
o Ohio state studies
o University of Michigan studies
 Contingency theories
o Fielder’s contingency theory
o Path-goal theory

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o Decision-making model
o Leader-member exchange model
 Neo-charismatic theories
o Charismatic leadership theory
o Transformational leadership theory

Universality theories

 This theory argues that leaders with characteristics displayed by effective leaders will
be effective in all situations
 Characteristics includes height, personality and intelligence
 This group of theories represent the earliest and simplest approach

Great man/great woman belief

 The adage “great leaders are born and not made” is the basis of this approach
 This is not a theory but rather a belief that the personal qualities and abilities of
some individuals make them “natural leaders”
 People that espouse this view suggest that if certain great persons were alive today,
they would rise to positions of power because of their natural abilities
 There is little concrete evidence to support such a view

Trait theory

 Hundreds of trait studies were conducted in the 1930s and 1940s

 Work on this area was interested in identifying physical and personality
characteristics of effective leadership
o E.g. energy, penetrating intellect, forethought, etc.
 The results of this early research were generally disappointing
 There has been a recent surge of interest in the links between traits and leadership
 Researchers are no longer looking at single traits but looking at constellations of
o e.g. emotional intelligence, sociability, charisma
 For example, Judge and Bono (2000)
o Looked at 14 samples of leaders from over 200 organisations
o Found that of the ‘Big 5’ personality traits, only extraversion and
agreeableness were positively associated with transformational leadership
o The ‘Big 5’ factors predicted leadership ratings better than did the individual
facets of the personality traits

Evaluation of Trait Theory

o Trait theory in the 19th century was overly simplistic

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 It’s not likely that a single leadership trait (e.g. assertiveness) will be
associated with effectiveness in all situations, for all people or all tasks

Behavioural theories

 In the 1940s and 1950s, researchers began to explore actual behaviour of leaders
because of disappointing results of trait approaches
 Two major behavioural research programs  very similar conclusions

Ohio state studies

 Observed the behaviour of leaders and followers and identified hundreds of leader
 Through factor analysis they identified two general categories of behaviours
o Initiating structure: includes activities to define and organise work
 E.g. assigning specific tasks, defining individual and group roles,
making task-related decisions
o Consideration: show a genuine concern for followers, developing rapport
with followers and displaying respect for followers
 E.g. asking followers for their input into decisions, taking followers’
needs into account when making decisions
 The two dimensions are independent – that is, a leader can be high in consideration
but low in initiating structure or vice versa
 Initiating structure has been found to be positively associated with performance but
reduces satisfactory and increases turnover
 Consideration has been found to be associated with job satisfaction but is unrelated
or in some cases, negatively related to performance
 Recent research: Judge, Piccolo and Ilies (2004)
o Conducted a meta-analysis and found that consideration was strongly
positively related to satisfaction with the leader, job satisfaction, motivation
and leader effectiveness
o Initiating structure was more strongly associated with ratings of a leader’s job
performance, and group and organisational performance
o The measure used to assess these behaviours was found to have strong
influence on the results obtained

University of Michigan studies

 These authors identified

o Task-oriented behaviours – enhancing the performance of a group,
supervision, meeting goals
o Relationship-oriented behaviours – showing concern for followers, involving
followers in decision-making

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 These studies suggested that relationship-oriented behaviours were generally more

effective than task-oriented behaviours

Evaluation on Behavioural Theories

 Both initiating structure and consideration have been linked to different indicators of
 Need to consider the role of the situation

Contingency theories

 This group of theories focus on the importance of considering the characteristics of

the leader and the situation
 Effective leadership is understood to occur when there is a match between leader
characteristics and behaviours and the requirements of the situation
 Examples:
o Fielder’s Contingency Model
o Path-Goal Theory
o Vroom’s Decision making Model
o Leader-Member Exchange Model

Path-goal theory

 This theory suggests that a leader’s role is to help work group’s attain their goals
 The leader helps the group overcome various barriers they may encounter
 In the original formulation of the theory (House, 1971, 1971), the leader was said to
have to adopt one of four types of behaviour
o Directive – providing instruction and suggestions for getting the job done
o Achievement oriented – focus on particular work outcomes and involves
setting challenging goals and encouraging and measuring improvements in
o Supporting – focuses on interpersonal relationships among group members
 E.g. showing concern for members’ welfare
o Participative – encourage group members to take an active role in decision
 The choice of leader behaviour is contingent of the type of work task and
characteristics of followers
 Situational characteristics
o Work group characteristics
o Task structure
o Formal authority system
 Worker characteristics
o Locus of control

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o Perceived ability
o Experience
 Application:

 Evaluation:
o Criticised because of its very general approach – but could also benefit
o Hasn’t led to specific leadership training or interventions
o Model has recently been expanded (House, 1996) and now incorporates
more leadership behaviours and situational variables

Leader-member exchange (LMX) model

 Argues that leaders develop a unique relationship with each follower

 The follower is the key situational (contingency) factor
 High quality LMX
o involve respect, trust, mutual obligation
o Leaders in a high LMX relationship rely on the follower to take on more
 E.g. supporting the leader’s decisions (Dunegan, Duchon & Uhl-Bien,
 Poor quality LMX
o Leader relies on formal role authority and maintain a distance between
themselves and followers
o Members in low LMX relationships follow their employment contract and
perform only those tasks that are required in their formal role statement
 The quality of the LMX relationship influences important outcomes
o High quality LMX is related to greater follower job satisfaction and
organisational commitment, lower job stress and decreased turnover
intentions (Graen, Novak & Sommerkamp, 1982)
 Factors that influence the LMX relationship:

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o Similarity in values – increases likelihood of high quality LMX relationship

o Demographic characteristics – similarity of age, gender, ethnicity, etc
increases the likelihood of high quality LMX
o Follower competence and job interest – higher follower competence and
interest increases likelihood of high quality LMX
 Evalutation:
o Unique perspective that acknowledges the role of followers’ characteristics in
influencing leadership behaviour
o Evidence to support the importance of developing and fostering high quality
LMX relationships

New Leadership theories

 Have been the dominant group of leadership theories in the last 25 years
 Models are concerned with “transformational” and “charismatic” leadership (Bass,
1985; Conger & Kanungo, 1988)
 Overall, these theories suggest that effective leadership involves motivating
followers to achieve high levels of performance through changing followers’
attitudes, beliefs and values as opposed to simply gaining compliance

Charismatic leadership theory

 Based on the work of Karl Weber (1947, 1968)

 Charisma – involves five components
o An extraordinarily gifted person
o A social crisis
o A vision providing a radical solution to a problem
o A set of followers who are attracted to the exceptional person and believe
that the leader is linked to transcendent powers
o The validation of the leader’s extraordinary gifts through repeated success
 Combination of traits, behaviours and situational characteristics required to be a
charismatic leader
 Conger and Kanungo (1987, 1988) stage model of charismatic leadership
o Stage 1 – leaders evaluate the existing situation and the abilities, needs and
level of satisfaction experienced by followers. The charismatic leader is
distinguished from the non-charismatic leader in terms of their ability to
search out existing deficiencies in the status quo
o Stage 2 – formation and communication of a vision. The strategic visions
formulated, and the manner in which they are articulated, distinguish
charismatic leaders from non-charismatic leaders. Leaders are charismatic
when their vision represents an embodiment of a perspective shared by
followers in an idealised form

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o Stage 3 – leader builds trust in goals and demonstrates how goals can be
achieved. Charismatic leaders transform their concern for followers’ needs
into a total dedication and commitment to the common cause they share
with followers

Transformational leadership theory

 Burns (1978) – the first researcher to contrast transactional leadership with

‘tranforming leadership’
 Bass (1985) built on this model
o Transactional (similar to initiating structure) and transformational leadership
are independent constructs
o Identified a number of sub-dimensions of transformational leadership
Charisma (attributed and behavioural charisma), inspirational motivation,
intellectual stimulation, individualised consideration
 Defined primarily in terms of the influence that leaders have on followers
 Transformational leaders motivate followers to achieve “performance beyond
expectations” by transforming followers’ attitudes, beliefs, and values as opposed to
simply gaining compliance (Bass, 1985; Yukl, 1999a, 1999b)
 Associated with effectiveness (Bryman, 1992; Lowe, Kroeck, & Sivasubramaniam,
o Transformational leadership displays significantly stronger relationships with
measures of effectiveness than transactional leadership
o Charisma is most strongly associated with outcomes
o The core behaviour of transactional leadership, contingent reward, usually
makes a fairly important contribution to outcomes
 Management-by-exception (the negative side of transactional leadership_ produces
somewhat inconsistent results in terms of relationships with outcomes which
suggests situational factors play a role
 Transformational leadership augments (predicts outcomes over and above) the
effects of transactional leadership (Hater & Bass, 1989; Kane & Tremble, 2000)

Evaluation of New Leadership theories

 Charismatic and transformational leadership often discussed as if they are the same
– they are not
 Theoretical ambiguity around the definition of the transformational behaviours
(Yukl, 1999)
 Some recent research has begun to address the theoretical ambiguity of the
transformational behaviours (Rafferty & Griffin, 2004; 2006)
 Insufficient attention paid to the role of the situation in influencing the impact of
transformational leadership on followers

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Destructive Leadership

 Emerging interest in destructive leadership

 Einarsen, Aasland, and Skogstad (2007) define destructive leaders as those
“individuals who repeatedly violate the legitimate interest of an organization by
undermining or sabotaging the company’s goals, tasks, resources, and the
motivation, well-being, or effectiveness of followers” (p. 208)
 E.g.
o Abusive supervision
 “Subordinates’ perceptions of the extent to which supervisors engage
in the sustained display of hostile verbal and nonverbal behaviors,
excluding physical contact” (Tepper, 2000; p. 178).
o Laissez-faire leadership behaviour
 The absence of leadership and a failure to intervene (Bass, & Riggio
2006). Not only a lack of leadership presence but also involves not
meeting the legitimate expectations of subordinates and superiors
 Outcomes
o Abusive supervision
 Poorer attitudes towards their job and organisation
 Greater work-family conflict
 Psychological distress
 Increased intentions to leave the organisation (Tepper, 2000)
 Greater follower insomnia (Rafferty, Restubog, & Jimmieson, In Press)
o Laissez-faire leadership
 Role conflict, role ambiguity and conflicts with coworkers
 Linked to bullying at work
 Distress (Skogstad et al., 2007)

Finding and Creating Effective Leaders

 Selection
o Review specific requirement for the job
o Use tests that identify personal traits associated with leadership, measure
self-monitoring, and assess emotional intelligence
o Conduct personal interviews to determine candidate’s fit with the job
 Training
o Recognise that all people are not equally trainable
o Teach skills that are necessary for employees to become effective leaders
o Provide behavioural training to increase the development of employees


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 It is important to consider leader traits and behaviours and situational characteristics

when thinking about effective leadership in organisations
o e.g., follower characteristics, task characteristics, and organisational


Does Organisational Culture = Organisational Climate?

 Values/assumptions/beliefs vs behaviours
 Why vs what
 Qualitative vs quantitative

(Schein, 1995; Schneider, 1990)

Elements of Organisational Culture

Climate Measures

 Specific measures
o Service
o Innovation “new ideas are readily accepted here”
o Safety
 Global measures
o Motivating, involving, supporting “this company cares about it’s employees”
 Pros and cons
o Measuring subcultures
o Comparing across studies and organisations
 Employee climate:
o Innovation and risk taking
o Attention to detail
o Outcome orientation

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o People orientation
o Team orientation
o Aggressive achievement
o Stability

Competing values model (Quinn & Rohrbaugh, 1983)

 Internal – external
 Control – flexibility
 Means – ends

Global Organisational Climates: the competing values model

 Patterson et. al., 2005

Theory Driven approaches to OB

 Advantages
o Summarises latest thinking
 What is the current approach to thinking
 Why these issues are important
o Peer review increases rigor
 Systematic & cumulative knowledge
 More than 1 personʼs perspective
 Disadvantages ??

What do cultures do?

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Culture as a liability

1. Barrier to change (e.g. acquisitions and mergers)

2. Barrier to diversity
3. Misalignment in culture - organisation’s environment.
4. Corporate cults can create ethical problems

Organisational Ambidexterity

 Key concepts:
o Core Values
o Dominant Culture
o Subcultures
o Strong Culture
o Culture versus Formalisation
o Organisational Culture versus National Culture

How do cultures form? How are cultures learnt?

Institutionalisation: a Forerunner of Culture

 “When an organisation takes on a life of its own, apart from any of its members,
becomes valued for itself, and acquires immortality”

Lewin’s (1951) three step change model

Kotter’s (1996) 8-step plan for implementing change

1. Establish a sense of urgency by creating a compelling reason for why change is

2. Form a coalition with enough power to lead the change.

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3. Create a new vision to direct the change and strategies for achieving the vision.
4. Communicate the vision throughout the organisation.
5. Empower others to act on the vision by removing barriers to change and
encouraging risk-taking and creative problem-solving.
6. Plan for, create and reward shorter ‘wins’ that move the organisation towards the
new vision.
7. Consolidate improvements, reassess changes and make necessary adjustments in
the new programs.
8. Reinforce the changes by demonstrating the relationship between new behaviours
and organisational success.


1. Establish a sense of urgency by creating a compelling reason for why change is

2. Form a coalition with enough power to lead the change.
3. Create a new vision to direct the change and strategies for achieving the vision.


4. Communicate the vision throughout the organisation.

5. Empower others to act on the vision by removing barriers to change and
encouraging risk-taking and creative problem-solving.
6. Plan for, create and reward shorter ‘wins’ that move the organisation towards
the new vision.


7. Consolidate improvements, reassess changes and make necessary adjustments in

the new programs.
8. Reinforce the changes by demonstrating the relationship between new
behaviours and organisational success.


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Managing stress properly

 Organisation
o Selection & placement
o Training
o Goal setting
o Work redesign: autonomy, flexibility, sabbaticals
o Organisational communication
o Wellness programs (meditation)
o (+ reactive OHS)
 Individual
o Selection of job (levels of stress, control & pay)
o Social networks
o Exercise (non-competitive)
o Time management
o (+ reactive: doctors)


 Perceptions of organisational artefacts is climate; culture is underlying rationale

 Culture has functional and dysfunctional effects
 Organisation’s culture emerges from founders and socialisation
 Institutionalisation when the organisation has a life of it’s own
 Cultural changes during merges is an example of organisational change
 Organisational change steps are rarely linear.
 Stress needs proactive management by organisation & employees


Applications of emotions in OB

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Affect, emotions and mood

What is emotion?

“Emotion is one of the most complex phenomena known to psychology. It is complex

because it involves so much of the organism at so many levels of … integration… Perhaps
therein lies the uniqueness, and possibly the major significance, of emotion” Lindsley (1951,
p. 473)

 Cognitive
 physiological
 behavioural

Circumplex models of emotions

What influences our emotions?

 Personality
 Day and Time of the Week
 Stress
 Social activities
 Sleep

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 Exercise
 Age
 Gender
 Organisational influences
 Cultural influences
 Deliberate behaviors and thought patterns (e.g., meditation)

How does mood alter?

Affective events theory

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What is emotional labour?

 “Management of feeling to create a publicly observable facial and bodily display”

(Hochschild, 1983)
 Organisational display rules
o Norms and standards of behaviour indicating which emotions are appropriate
in a given situation but also how these emotions should be publicly
 Display rules presumed to promote organisational effectiveness
o Improve sales, loyalty, customer referrals (Hochschild, 1983; Parkinson, 1991;
Pugh, 2001; Rafaeli & Sutton, 1987, 1990; Sutton, 1991; Tsai, 2001)
 Explicit or implicit

Emotional Labour strategies

 Emotional regulation strategies

o Surface acting: expressing emotions not actually felt, involves suppression
and faking
o Deep acting: modifying felt emotions in order to express genuine emotions
 Surface acting and negative outcomes
o personal inauthenticity, lower ratings of affective delivery, depersonalization,
emotional exhaustion, dissatisfaction, and burnout (Brotheridge & Grandey,
2002; Brotheridge & Lee, 2002; Gosserand, 2003; Grandey, 2003; Grandey,

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Fisk, & Steiner, 2005; Grandey, Fisk, Matilla, Jansen, & Sideman, 2005;
Totterdell & Holman, 2003)
 Deep acting and positive outcomes
o personal authenticity, personal accomplishment, lower likelihood of revealing
negative emotions, and enhanced, job satisfaction and performance
(Brotheridge & Grandey, 2002; Brotheridge & Lee, 2002; Grandey, 2000;
Grandey, 2003; Grandey, Fisk, Matilla, et al., 2005; Totterdell & Holman,

Link between emotional labour and organisational wellbeing

 What about organisational outcomes?

o Job performance (Totterdell & Holman, 2003; Grandey, 2003)
o Turnover/intentions to quit (Côté & Morgan, 2002)
o Sick leave (Hong, Groth & Johnson)

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What is emotional intelligence?

 “The ability to monitor one’s own and others’ emotions, to discriminate among them,
and to use the information to guide one’s thinking and actions” (Salovey & Mayer,
1990, p.189).

 Models of EI

o Mental ability models: focusing on the aptitude for processing affective


o Mixed models: EI as a diverse construct, including aspects of personality as

well as ability.

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 Emotions are important at all levels in the organisation; positive emotions are
particularly important

 Emotional labour applied to all jobs, & has implications for employees (health, pay)
& the organisation (customer service, power dynamics)

 Emotions have a short & longer term impact on job satisfaction & performance

 First step to EQ is self-awareness. Is there a gap in your self-other ratings? Be aware

that blind spots often bring negative emotions.


Virtual Communication in teams

1. Establish and maintain trust

2. Ensure diversity

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3. Manger work life cycle

4. Monitor progress

5. Enhance external visibility

6. Ensure individuals benefit from virtual team

Problems with communication are often cited but what does that mean?

 The (delivery) mode was ineffective?

 The (receiving) person did not ‘listen’ or has a problem understanding

 BOTH of the above

 Communication must be tailored for the audience and account for attention ‘space’


 Communication occurs in everything we do or do not do

 The modes we use are important

 Words are only 7% of meaning, 55 % comes from body language and 38% from tone.

Steps in the rational decision-making model

1. Define the problem

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2. Identify the decision criteria

3. Allocate weights to the criteria

4. Develop the alternatives

5. Evaluate the alternatives

6. Select the best alternative.

What increases the chance of decision making biases occurring

 Uncertainty

 Complexity

 Strength of cognitive bias

 Individual attributes

 Past experiences

 Context in which the behaviour occurs

o Social norms

o Time (delay - benefits now – costs later)

Noise in the decision making process: model

Decision making biases and shortcuts

 bounded awareness - "how could I have missed that?"

 framing
o schemas, context, characterstics and personalities
o focuses attention on certain limited information
o therefore means information is interpreted one way and not the other
 Heuristics
o anchoring: using the first piece of information we receive
 negotiations
 using past numbers to predict future performance

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o availability
 serial position effect: primary, recency (application: law, conferences)
 Halo
 application: surveys, interviews, personality, marketing, high
performance organisations
 example: team processes and performance
 projection: attributing one's own characteristics to other people, seen in
people with authority

Availability: representative schemas

 cognitive frameworks
 categorise to impose meaning
 pre-existing assumptions
 short-cut to predict

Attribution errors

 Fundamental distinction in social psychology: trait vs situation

 Fundamental attribution error

o Attributing own actions to external factors and other’s actions to internal


 Self-serving bias

o Attributing our successes to internal factors and our failures to external factors

o Why? Protect self-esteem

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Optimism and overconfidence

 Relates to accuracy of estimating and forecasting

 Strongest when there is high uncertainty and low feedback

 Exposure to greater risk or missed opportunities.

 Confirming evidence trap

o Seek information that will support our existing instinct or point of view

o Effects both collection of evidence and interpretation of evidence

Groupthink (Janis, 1972)

Preventing groupthink

1. “Critical evaluator” or devil’s advocate role (swap each meeting)

2. Leaders not express opinions

3. Multiple, independent groups on same problem

4. Examine multiple alternatives

5. Input from people external to the team, within & between meetings

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Decision making tools

 purpose = to systematically evalutate alternatives, balancing emotions and rational


 Examples:

o Problem identification: Fishbone diagram

o Solution generation: Brainstorming

o Solution evaluation: Categorisation, elimination & ranking

o Implementation & planning: How – how diagram

o Scenario planning (eg Team Agreement, ‘what will we do when there is a

social loafer?’)


 Framing the question or the problem – 1st step in decision making. The frame will
determine the actions and perception of success

 Example:

o Narrow vs. Broad

o Identifying the options available – what is the default

o Gains vs. risk

Active listening strategies

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Seeking feedback and self-reflection - johari window

Specific notes for teams

 Team design

o diversity

o optimal team size

o effective teams have structure

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 Team process:

o effective teams have goals

o coordinate for participation

o cognitive conflict

Specific Applications in Organisations Employment Interview

 Performance Expectations
 Ethnic Profiling
 Performance Evaluations

Organisational surveys

1.Descriptive information

2.Linkage analysis

a. Between variables (issues) in the survey &/or across time

b. With organisational records

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