HUMAN BEHAVIOUR IN

ORGANISATIONS
By
Prof. Ravi Nagarajan

What is an organisation?
^ An organisation has:
* a distinct purpose
* a deliberate structure
* people
^ A business organisation in addition, works
to generate profit.
^ Organisational dilemma : individual good vs.
organisational good

STUDY OF
ORGANISATIONS
Facilitates health and well-being of
individuals
Contributes to organisational effectiveness
Has impact on wider social and economic
conditions
Is multi-disciplinary : draws on psychology,
social psychology, sociology, economics,
political science
3

MAJOR TRENDS AFFECTING

CONTEMPORARY ORGANISATIONS

Globalisation
Lean & Mean organisations
International competition
Demography
Technology
Outsourcing
Growth of services sector
4

EVOLUTION OF
ORGANISATIONS
5M framework to understand organisations:
* MONEY
* MACHINES
* MATERIALS
* MEN
* MANAGEMENT
+ 1 M : MARKET
5

Another look at organisations

*Internal factors:
resources, facilities, skills, strengths, weaknesses,
structure
*External factors (STEEP factors):
Socio-cultural
Technological
Environmental
Economic
Politico-legal
6

Factors making an
organisation more complex
Single product to multi product
Coverage of wider geographical
area
Different types of customers

Environmental factors
complicating an organisation

Globalisation
Outsourcing
Economic growth
Growth of services sector
Demography esp. diversity of work force
Social consciousness
E-business
Quality consciousness
8

What does complexity mean?

Rapidly changing environment so more factors
to be taken into account laws, customers,
competitors, tastes, technology .
Bigger and more decisions to be taken in lesser
time
Information overload
More employees at different locations
In short, management becomes more complex!
9

Second Wave and Third Wave

* First Wave: agricultural age
Second Wave: industrial age
Third Wave: information era
* 2nd wave built for growth, more of the same attitude,
whereas 3rd wave shows appreciation for change
* 2nd wave multinational; 3rd global focus (multi local)
2nd wave fosters content; 3rd wave encourages dissent
(John Sculley: Odyssey from Pepsi to Apple)

10

WHAT IS MANAGEMENT?
1.The process of coordinating work activities so that
they are completed efficiently and effectively, with
and through other people.
(Robbins, et al.)

2. The process of designing and maintaining an

environment in which individuals, working
together in groups, accomplish their aims
effectively and efficiently.
(Koontz, et al.)
11

Perspectives on Management

Functions
Roles
Essential Skills
Systems
Contingencies
McKinseys 7-S framework
12

Management Functions
Planning goals, strategy, sub plans
Organising what is to be done, how and
who will do it
Staffing determining requirements,
recruiting and selecting
Leading directing, motivating, resolving
conflicts
Controlling monitoring to achieve goals
13

Management Roles
Interpersonal :
Figurehead - Leader - Liaison
Informational :
Monitor Disseminator - Spokesperson
Decisional:
Entrepreneur - Disturbance handler
Resource allocator - Negotiator
( Harry Mintzberg)
14

Management Essential Skills

Technical
Human
Conceptual

15

Systems Perspective
System:
Inputs -> Transformation -> Outputs
System : Closed / Open
Inputs: Raw Materials, Human Resources, Capital,
Technology, Information
Transformation: Employees work activities,
Management activities, Technology and Operations
methods
Outputs: Products & services, Financial results,
Information, Human results.
16

Contingency Perspective

Organisation Size
Routineness of task technology
Environmental Uncertainty
Individual Differences

17

McKinseys 7-S Framework

Strategy
Structure
Systems
Style
Staff
Shared values
Skills
18

Universality of Management

All sizes of organisations )

All types of organisations ) need
All organisation levels
) management
All organisation areas
)

19

Who is a manager?
A manager is someone who works
with and through other people by
coordinating their work activities
in order to accomplish
organisational goals.
20

Managerial levels
First line: manage work of non-managerial
individuals
Middle: in between the two levels and
manage first line managers
Top:those responsible for organisation wide
decisions as well as plans and goals
that affect the entire organisation
21

Managerial roles
Of Mintzbergs 10 roles, the following
assume more importance as a manager
ascends the hierarchy:
Figurehead
Liaison
Disseminator
Spokesperson
Negotiator
22

Managerial functions
Planning : More, up the hierarchy
Organising: More, up the hierarchy
Staffing: Decisions at the top but
implementation could be more at middle
level
Leading: More, down the hierarchy
Controlling: More, up the hierarchy
23

Managerial areas

Human resources
Finance
Production / operations
Marketing
General Management

24

Managerial styles
* Kurt Lewin (University of Iowa studies):
^ autocratic
^ democratic
^ laissez - faire
* Blake and Moutons Managerial Grid:
^ Two major dimensions concern for
production and concern for people on 9 point scale
^ 1.1: impoverished ; 1.9: country club; 5.5 middle
of the road; 9.1 task; 9.9 team
25

The organisation and its

environment
Environment internal & external
Culture the way things are done
Organisational culture ( definition):
A system of shared meaning within an
organisation that determines, in large
degree, how employees act.

26

Dimensions of Organisational
culture

Attention to detail
Outcome orientation
People orientation
Team orientation
Aggressiveness
Stability
Innovation and risk taking
27

Managerial Decisions affected

by culture
PLANNING: degree of risk individuals vs.
teams degree of environmental scanning
ORGANISING: degree of autonomy teams or
individuals degree of interaction internally
LEADING: degree of focus on employee job
satisfaction styles tolerance of disagreements
CONTROLLING: degree of autonomy criteria
for performance evaluation repercussions of
exceeding budget
28

External Environment
Specific environment: customers suppliers
competitors pressure groups
General environment: economic political /
legal social / cultural demographic
technological global
Effect on managers depends on degree of
uncertainty and degree of complexity
29

Stakeholders
Any constituency in the environment that is
affected by an organisations decisions and
policies and that can influence the
organisation
Examples: customers employees unions
shareholders communities suppliers
media government trade and industry
associations competitors social and
political action groups
30

Corporate Social Responsibility

* Organisations response to public consensus
=> corporate citizenship
=> balancing needs of different stakeholders
=> not only economic and legal responsibility, but
social obligations also.
* Trends in CSR have changed because of the movement
from laissez-faire to free enterprise to mixed economy
* Some companies have to be forced, others persuaded ,
while a few practise CSR voluntarily
31

Indicative areas of CSR

Economy and environmental quality

Consumerism
Community needs
Governmental relations
Business giving
Minorities / disadvantaged persons
Labour relations
Stockholder relations
32

Evolution of Organisation
theory
Practice of Management has been around from the
beginning of human civilisation
Obviously the building of wonders like the
Pyramids, the Qutb Minar, the Great Wall of China
or the Taj Mahal for instance would have called for
management
So would have the conduct of war campaigns by
kings like Alexander, Hannibal, Genghis Khan,
Babar
33

Economics and Management

Adam Smiths The Wealth of Nations (1776) is
considered to be the first book on economics
Concept of division of labour from this book big
influence on study of management
Similarly the Industrial Revolution the
substitution of machine power for human power
fostered the adaptation and study of management
principles
34

Major schools of thought

Scientific Management attempts to focus on
productivity and efficiency of workers
General Administration theorists overall look at
functions of managers and good management
practice
Quantitative Approach application of
quantitative models to management practice
Organisational Behaviour focusing on the
organisations human resources
35

Scientific Management
Frederick Winslow Taylors Principles of scientific
management

* The development of a true science of work

* The scientific selection and progressive development
of the worker
* The bringing together of the science of work and the
scientifically selected and trained workers
* The constant and intimate cooperation of
management and workers
36

Scientific Management - II
Developed subsequently by many thinkers,
notably Henry Gantt (the Gantt chart) and
Frank & Lillian Gilbreth (time and motion
studies, Therbligs)
Applications of Scientific management
today time and motion studies, hiring best
qualified workers for a job, design of
incentive systems based on output
37

General Administration Theory

Main proponents: Henri Fayol & Max
Weber
They looked at the functioning of the entire
organisation
To manage is to forecast and plan, to
organise, to command, to coordinate and
control Henri Fayol
38

Essence of Fayols thinking

Activities: Technical; Commercial; Financial; Security;
Accounting; Managerial

Elements: Planning, Organising, Commanding,

Coordinating, Controlling

Principles: Division of work, Authority, Discipline,

Unity of command, Unity of Direction, Subordination of
individual interest to general interest, Remuneration,
Degree of centralisation, Scalar chain, Order, Equity,
Stability of tenure, Initiative, Esprit de corps
39

Max Weber
Principal area of study: theory of authority structures
Distinction between power and authority
Three authority systems charismatic, traditional
and rational-legal
Charismatic : based on the leaders personal qualities
Traditional : precedent and usage
Rational-legal: system of rules and procedures
(bureaucracy)

40

Features of a bureaucracy

Authority hierarchy
Formal selection
Formal rules and regulations
Impersonality
Career orientation
Division of labour
41

Use of General Administrative

Theories
Functional view of the managers job
Fayols 14 principles serve as a frame of
reference for many management theories
Webers bureaucracy an attempt to frame an
ideal prototype
Some degree of bureaucracy necessary and
prevalent in creative organisations
42

Quantitative Approach
Application of statistics, optimisation
models, information models and computer
simulation to management activities e.g.
linear programming for resource allocation
decisions or EOQ models for inventory
levels
Particularly useful in the areas of planning
& control
43

Organisational Behaviour
Theories divisible into two distinct groups:
Early advocates like Robert Owen, Hugo
Munsterberg, Mary Parker Follett, Chester
Barnard
Hawthorne studies (1927 1932) and later

44

Early advocates
Robert Owen : concern about deplorable working
conditions
Hugo Munsterberg: created field of industrial
psychology and advocated use in selection,
training and motivation
Mary Parker Follett: perspective of group &
individual behaviour, group ethic
Chester Barnard: organisations were open social
systems
45

Hawthorne studies
Conducted by Prof. Elton Mayo of Harvard Univ.
at Western Electric, Hawthorne
Numerous experiments in the redesign of jobs, changes
in workday and workweek length, introduction of rest
periods and individual vs. group wage plan
Results indicated that the changes had less effect on a
workers output than did group pressure, acceptance
and the accompanying security
Highlighted importance of informal groups and
adequate communication systems
46

Fallout of OB Theories
Job design to working with employee teams
to opening of communication channels
Decision making, organisation structure
design and types of control tools and
techniques used
Foundation for Current theories of
Motivation, Leadership, Group behaviour
and development
47

Motivation Theories
Early and contemporary theories
Early: Maslows hierarchy of needs,
McGregors Theories X & Y, Herzbergs
motivation hygiene theory
Contemporary: Three-needs theory, goalsetting theory, reinforcement theory,
designing motivating jobs, equity theory,
expectancy theory
48

Maslows hierarchy of needs

theory
Physiological:food, drink, shelter, sex
Safety: security, protection from physical &
emotional harm
Social: affection, belongingness, acceptance
& friendship
Esteem:self-respect,autonomy,achievement,
status, recognition, attention
Self- actualisation: growth, self- fulfilment
49

McGregors Theory X and

Theory Y
Theory X essentially negative view of
people
Theory Y basically a positive view
Theory X : lower order needs
Theory Y : higher order needs
McGregors belief = theory Y assumptions
more valid
50

Herzbergs Motivation-Hygiene
Theory
Intrinsic factors like achievement, recognition,
work itself, responsibility, advancement and
growth are related to job satisfaction and
motivation
Extrinsic factors like supervision, company policy,
relationship with supervisor, working conditions,
salary, relationship with peers and subordinates,
personal life, status, security are associated with
reduction of job dissatisfaction
51

Contemporary theories of
Motivation - I
Three needs theory: need for achievement
(nAch), need for power (nPow), need for
affiliation (nAff)
Goal setting: intention to work towards a
goal is a major source of motivation
Reinforcement theory says that behaviour is
a function of its consequences
52

Contemporary theories - II
Designing motivating jobs using job enlargement, job
enrichment & the JCM (job characteristics model, core
dimensions of a job being skill variety, task identity,
task significance, autonomy and feedback)
Equity theory: individuals compare their jobs inputsoutcomes ratio with those of relevant others
Expectancy theory: individuals tend to act in a certain
way based on the expectation that the act will be
followed by a given outcome and on the attractiveness
of that outcome
53

Contemporary Issues

Globalisation
Workforce diversity
Entrepreneurship
E-business
Innovation and flexibility
Quality Management
Learning Organisations & Knowledge management
Ethics
54

Steps in Planning

Being aware of opportunity

Setting objectives or goals
Considering planning premises
Identifying alternatives
Comparing alternatives
Choosing an alternative
Formulating supporting plans
Numberising plans
55

Types of plans

Purpose or mission
Objectives
Strategies
Policies major or minor
Procedures
Rules
Programmes major / minor/ supporting
Budgets numberised or rupee-ised programmes
56

Types of plans another

perspective

Strategic plans
Operational plans
Long term plans
Short term plans
Specific plans
Directional plans
Single use plans
Standing plans
57

Planning techniques
Separate techniques for assessing the environment
and allocating resources
Assessing the environment: Environmental
scanning, Forecasting, Benchmarking
Allocating resources:Budgeting, Scheduling,
Breakeven analysis, Linear Programming
Some contemporary techniques: Project
management, scenario planning
58

Purposes of planning

To give direction
To reduce impact of change
To minimise waste and redundancy
To set standards used in controlling

59

Steps in goal setting

Review organisations mission
Evaluate available resources
Determine goals individually or with others
(SMART goals)
Write down and communicate to all
concerned
Review results to check on achievement of
goals
60

Management by Objectives
1. Setting goals at the highest level of the
organisation
2. Clarifying the specific roles of those responsible
for achieving the goals
3. Setting and modifying objectives for
subordinates in consultation with them.
Pluses: Improves managing. Clarifies
organisation, Encourages personal commitment,
Develops effective controls
61

Decision making process

1. Identification of a problem
2. Identification of decision criteria
3. Allocation of weights o criteria
4. Development of Alternatives
5. Analysis of Alternatives ( techniques: experience,
experimentation, research & analysis)
6. Selection of Alternative
7. Implementation of the alternative
8. Evaluation of Decision Effectiveness
62

Rationality Types Conditions

Rationality, Bounded rationality
(satisficing) and intuition
Problems (well structured and poorly
structured) and corresponding decisions
( programmed and non programmed )
Conditions: certainty, risk and uncertainty

63

Styles Approaches Influences

Styles: Directive Analytic Conceptual
Behavioural
Approaches: Risk analysis Decision trees
Preference Theory
Influences: Attitudes to risk personal
values organisational culture group
decision making creativity and innovation
64

Strategic management process

1.Identify organisations current mission,
objectives, strategies
2.Analyse the environment
3.Identify opportunities and threats
4.Analyse the organisations resources
5.Identify strengths and weaknesses
6. Formulate strategies
7. Implement strategies
8. Evaluate results
65

Levels - Types
Levels : Corporate Business Functional
Types:
* Stability
* Growth: direct expansion vertical integration
horizontal integration diversification (related /
unrelated)
* Retrenchment
( Portfolio Analysis: BCG Matrix)

66

Competition ( Michael Porter)

Competitive Forces:
* Threat of new entrants
* Threat of substitutes
* Bargaining power of buyers
* Bargaining power of suppliers
* Existing rivalry
Competitive strategies:
^ Overall cost leadership
^ Differentiation
^ Focus

67

Principles of planning

The limiting factor

The commitment principle
Flexibility
Navigational change

68

Organising - definitions
Organising: the process of creating an
organisations structure
Organisational structure: the formal
framework by which jobs are divided,
grouped and coordinated
Organisational design: developing or
changing an organisations structure
Formal / informal organisation
69

Elements of organisational
design

Work specialisation
Departmentalisation
Chain of command
Span of control
Centralisation
Formalisation
70

Work specialisation
The degree to which tasks in an
organisation are divided into
separate jobs (i.e. division of
labour)

71

Departmentalisation
The basis by which jobs are grouped together
Forms of departmentalisation:
* Functional
* Product
* Geographical
* Process
* Customer
* Cross functional teams
72

Chain of command
Chain of command: the continuous line of authority
that extends from upper organisational levels to the
lowest levels and clarifies who reports to whom
Authority: the rights inherent in a managerial
position to tell people what to do and to expect
them to do it
Responsibility: the obligation to perform assigned
duties
Unity of command : report to one boss
73

Span of control centralisation

- formalisation
Span of control: the number of employees a
manager can efficiently and effectively manage
Centralisation:the degree to which decision
making is concentrated at a single point in the
organisation
Formalisation: the degree to which jobs within the
organisation are standardised and the extent to
which employee behaviour is guided by rules and
procedures
74

Mechanistic & Organic

Organisations
Mechanistic: rigid and tightly controlled
Organic:highly adaptive and flexible
Appropriateness depends on four contingency
variables:
* Strategy
* Size
* Technology
* Degree of environmental uncertainty
75

Organisational designs

Simple
Functional
Divisional
Team
Matrix
Project
76

Line and staff relationships

Line: relationship in which a superior
exercises direct supervision over
subordinates
Staff: consists of giving advice and counsel

77

Power and power bases

Power: the ability of individuals or groups to
induce or influence the beliefs or actions of other
persons or groups
Power bases:
* Position or legitimate power
* Expertise
* Referent or charisma
* Reward
* Coercive
78

Principles of Organising

Authority delegation
Departmentalisation
Balance
Flexibility
Leadership facilitation

79

Staffing
The process of filling and keeping filled, positions
in the organisation
Sub-processes:
* Human resource planning * Recruitment and
Decruitment * Selection * Orientation * Training
* Performance management * Compensation and
benefits * Career development
80

HR planning - Recruitment
HR Planning uses concepts of job description
written statement of what is done, how it is done
and why it is done and job specification minimum acceptable qualifications to be possessed
to perform a given job successfully
Recruitment : development of a pool of potential
job candidates
Decruitment: reduce labour supply within an
organisation
81

Selection - training
Selection: devices aptitude tests, work
sampling, assessment centres, interviews
Orientation: while inducting an employee to
the organisation or to a new assignment
Training: generally to modify skills in one
of three areas technical, interpersonal or
problem solving
82

Performance Appraisal
PA approaches: * Written essay * Critical
incidents * Graphic rating scales *
Behaviourally anchored rating scales
(BARS) * Multi person comparisons * Goal
achievement (e.g. MBO)
360 feedback: from supervisors,
employees and co-workers
83

Compensation system
Should reflect changing nature of work and the
work place
Typically includes
base wages / salaries
allowances
reimbursements
incentive payments
other benefits
84

Conflict management techniques

Avoidance
Smoothing
Forcing
Compromise
Changing behaviour
Reassigning individuals
Resolving conflict at higher levels
Problem solving
85

Current issues

Lean and mean organisations

Workforce diversity
Sexual harassment
Work life balance
Outsourcing

86

Principles of staffing
Purpose of staffing:

Objective of staffing roles filled by qualified employees

Staffing: Managerial quality is better when roles and

requirements are clear and appraisal and training
techniques are better.
Process of staffing:
Job definition
Managerial appraisal
Open competition
Training & Development
87

Leading
Leading: the process of influencing people so that
they contribute to organisation and group goals.
OB: concerned with actions of people at work in
organisations; focuses on individual and group
level concepts.
Attitude: ~cognitive (beliefs, opinions, knowledge,
information),
~ affective (emotional or feeling),
~ behavioural
88

Some concepts
Personality factors: # extraversion, #
agreeableness, # conscientiousness, # emotional
stability, # openness to experience
Emotional intelligence (EI): a collection of skills,
capabilities and competencies that influence a
persons ability to succeed in coping with
environmental demands and pressures.
Shortcuts in judging others: ~ selectivity
~ assumed similarity ~ stereotyping ~ halo effect
89

Some concepts (contd.)

Formal & informal groups: # formal work
groups established by the organisation with
specific assignments and tasks # informal social
groups that occur in the workplace
Stages of group development: forming, storming,
norming, performing and adjourning
Types of teams: functional, self-managed, virtual
and cross-functional
90

Motivation
The willingness to exert high levels
of effort to reach organisational
goals, conditioned by the efforts
ability to satisfy some individual
need
91

Focus on leaders
Managers are appointed leaders are either
appointed or emerge from within the group
Trait theories
Behavioural leadership
Leadership styles democratic, autocratic,
laissez - faire
Leadership dimensions: relationship, task.
Situational leadership
92

Communication
Transfer and understanding of meaning
Managerial communication: interpersonal
communication + organisational communication
Communication process: senders purpose,
expressed as a message converted to symbolic form
(encoded) ; passed by a medium or channel to the
receiver who decodes. Entire process accompanied
by noise disturbances that interfere with the
transmission, receipt or feedback of a message.
93

Communication methods
Methods: face-to-face, telephone, group meetings,
formal presentations, memos, postal mail, fax,
publications, bulletin boards, audio/video
tapes/discs, hot lines, e-mail, computer conference,
voice mail, teleconference, videoconference.
Factors for comparison: feedback potential,
complexity capacity, breadth potential,
confidentiality, encoding ease, decoding ease, timespace constraint, cost, personal warmth, formality,
scanability, consumption time, retrievability
94

Facets of communication
Nonverbal communication: body language and
verbal intonation
Barriers: filtering, selective perception, emotions,
information overload, defensiveness, language and
national culture.
Flow of organisational communication: downward
upward lateral diagonal
IT impact: networked computer systems, wireless
capabilities; IT has removed constraints of space
and time
95

Principles of Leading

Harmony of objectives
Motivation
Leadership
Communication clarity
Communication integrity
Supplemental use of informal organisation
96

Control
The process of monitoring activities to
ensure that they are being accomplished and
of correcting any significant deviations.
Process: standards -> measure actual
performance -> compare performance to
standards -> take corrective action
Three types: feedforward, concurrent,
feedback
97

Contingency factors in
designing control system

Organisational size
Level in hierarchy
Degree of decentralisation
Organisational culture
The importance of the activity

98

Control Techniques

Budgeting zero base, variable

Parta system
PERT
Statistical data and analysis
Special reports and analyses
Operational audit
Personal observation (MBWA)
99

Principles of control
Purpose and nature: # Purpose # future directed #
control responsibility # efficiency # preventive
control
Structure of control: # reflection of plans
#organisational suitability # individuality of
controls
Process of control: # standards # critical point
control # exception (MBE) # flexibility # action
100

Strategic Management
Provides managers with a systematic and
comprehensive means for analysing the
environment.
Assesses the organisations strengths and
weaknesses
Identifies opportunities which could be exploited
for competitive advantage as well as threats
against which the organisation has to be fortified
101

Strategic Management Process

1. Identify organisations current missions, goals and
strategies
2. Analyse the environment
3. Identify threats and opportunities in the
environment
4. Analyse organisations resources and capabilities
5. Identify organisations strengths and weaknesses
6. Formulate strategies
7. Implement strategies
8. Evaluate results
102

S W O T analysis
Identify internal Strengths and Weaknesses
as well as external Opportunities and
Threats
Purpose to establish a niche which can be
exploited for competitive advantage

103

Levels Grand strategies

Levels:
Corporate -> Functional -> Business
Grand strategies:
# Stability
# Growth
# Retrenchment
104

Competition
Competitive Advantage
Competitive forces:
# Threat of new entrants
# Threat of substitutes
# Bargaining power of buyers
# Bargaining power of suppliers
# Existing rivalry
Competitive strategies:
Cost leadership ~ Differentiation ~ Focus
105

What is operations
management?
Transformation process of inputs
through the organisations work activities
and processes
into finished goods and services
is the essence of operations management

106

Value Chain Value chain

management
Value chain: the entire series of organisational
work activities that add value at each step
beginning with the processing of raw material and
ending with the finished product/service in the
hands of the end user.
Value chain management: the process of managing
the entire sequence of integrated activities and
information about product flows along the entire
value chain
107

Requirements for successful

VCM
1. Coordination and collaboration among value chain
partners
2. Investment in a technology infrastructure to support
collaboration and sharing
3. Appropriate organisational processes including better
demand forecasting, collaborative work and better metrics
for evaluating performance
4. Strong and committed leadership
5. Appropriate employee approaches e.g. job design, hiring,
training
6. Appropriate and supportive organisational culture and
attitudes
108

Benefits of VCM

Improved customer service

Cost savings
Accelerated delivery times
Improved quality
Inventory reduction
Improved logistics management
Increased sales
Increased market share
109

Groups & Teams

Group: Two or more interacting and
interdependent individuals who come
together to achieve particular goals
(Work) teams: Formal groups made up of
interdependent individuals who are
responsible for the attainment of a goal

110

Group development process

1. Forming
2. Storming
3. Norming
4. Performing
5. Adjourning

111

Contextual terms

1. Roles
2. Norms and conformity
3. Status systems
4. Group size
5. Group cohesiveness
6. Conflict management
112

Group Decision making

Pluses: * more complete information *
more alternatives * increases acceptance of
a solution * increases legitimacy
Minuses: # time consuming # minority
domination # pressures to conform
(groupthink) # ambiguous responsibility

113

Group effectiveness - factors

External conditions imposed on the group

Group member resources
Group structure
Group processes
Group tasks

114

Work Teams

Purpose
Duration
Membership
Structure

115

Effective Teams

Clear goals
Relevant skills
Mutual trust
Unified commitment
Good communication
Negotiating skills
Appropriate leadership
Internal support
External support
116

Hofstedes study
Covered one multinational
The company had 116,000 employees spread over 40
countries
4 parameters identified to spot differences across
countries:
~ power distance
~ uncertainty avoidance
~ individual vs. group concerns
~ masculinity femininity
Subsequently, long term view added
117

Change management
Pressures causing change
* External: # STEEP factors # market demand
# market supply # chance
* Internal: to increase # productivity # quality
# sales # service # staff motivation
Technique to understand pressures: force field
analysis (Kurt Lewin)
118

Approaches - Levels
Approaches :
Top down
Bottom up
Expert
Levels:
Individual
Group
Organisation
119

Reasons for resisting change

Loss of control
Excessive personal uncertainty
Avoid surprises
Difference effect
Loss of face
Concerns about competence
Ripples
More work
Past resentments
Real threats
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Methods to deal with resistance

to change

Education and communication

Participation and involvement
Facilitation and support
Negotiation and agreement
Manipulation and co-option
Explicit and implicit coercion
(Kotter and Schlesinger)
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Strategies determining
factors
Strategies: # directive # negotiating #
normative # analytical # action centred
Determining factors: ~ pace of change ~
amount and kind of resistance ~ power base
of initiator ~ amount of information
required ~ stakes involved

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Stages of implementing change

Unfreezing
Change
Refreezing

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Business Ethics some terms

Social responsibility: a business firms obligation,
beyond that required by law and economics, to
pursue long term goals that are good for society.
Social obligation: the obligation of a business to
meet its legal and economic requirements
Social responsiveness: the capacity of a firm to
adapt to changing social conditions
Social screening: applying social criteria
(screens) to investment decisions
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Factors affecting managerial

ethics
1. Stage of moral development
2. Individual characteristics values, ego strength,
locus of control
3. Organisations structural design
4. Organisation culture
5. Issue intensity consensus of wrong,
probability of harm, immediacy of consequences,
proximity to victims, concentration of effect,
greatness of harm
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What can companies do?

Hire individuals with high ethical standards

Establish codes of ethics and decision rules
Lead by example
Delineate job goals and performance appraisal
mechanisms
Provide ethics training
Conduct social audits
Provide support to individuals facing ethical
dilemmas
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