BAKHTAR UNIVERSITY

BBA DEPARTMENT

Organizational Behavior
Lecturer : M Bilal Atta
Mobile: 0782076248
Email : bilalsaleematta@gmail.com
Organizational Behavior

Organization:
 A group of two or more people who work on continuous basis
for a common goal, and who have coordination.
Why do we study organisational
behaviour?
. Understand
organizational
events

Organisational
behavior
research
Influence Predict
organisational organisational
events events

4
 Sam Walton founder of Wal-Mart and the richest
person of the world said about the successful
organizations, “People are the key!”

 Three types of intangible capital people have:

 Human Capital (‫()سرمایه بشری‬what you know---education,
experience, skills)
 Social Capital (‫( )سرمایه اجتماعی‬who you know---friends,
networks)
 Positive Psychological (‫)سرمایه روانی‬Capital (who you are---
confidence, hope, flexibility)
 Organizational Behavior
 Fred Luthons defines OB as, ” the understanding, prediction
and management of human behavior in organizations.”

 Systematic Study (‫)مطالعه سیستماتیک‬

 Study that is based on scientific proof and that focuses on causes
and effects of an issue or problem.
 Intuition (‫)درک مستقیم‬
 It is an idea or feeling which is not based on systematic research.

 In OB, the studies and information are based on systematic study

and not on intuition.
 A Picture of Future Management
 According to Harvard Business Review, there is danger of
change in management due to following reasons:
 Technology will replace a lot of employees work.
 Employees will have to work in different positions or multi-
tasked & job specialization will become less important.
 Contingent/part time workers will be found more in
organizations than the permanent workers.
 Customers will influence the internal policies and work in
organizations.
 Team management will be more important than managing
the individuals.
Challenges Facing Management
• In common the managers of today may come across these
major challenges:
 Globalization
 Workforce Diversity
 Customers Satisfaction
 Attrition
 Team Management or People Management
 Recruitment
 Effective Communication
 Laws and regulations
Challenges Facing Management

1.Globalization
Now a day’s organization or businesses are not limited by the
national boundaries. For Example Mc Donald is present in
almost every country. Due to globalization the problems
faced by Mc Donald are:
Managing people with different attitude and culture.
There is difference in Business Motives for example US,
Australia and Hong Kong are capitalist which means they
focus on growth and profit these are not acceptable in
countries like France and Middle East.
In every country the Cost Of Production varies with
availability of resources.
 Challenges Facing Management
2. Workforce Diversity
 It means that organizations are becoming more heterogeneous/mixed
of people in terms of gender age, culture, etc. For example women
and men of different regions come together and work together in an
organization.
3. Customer satisfaction
 Customer satisfaction today is your competitive advantage. Majority
of employees in developed countries work in service jobs. For
example technical support fast food counters. The main
characteristics required for this job is constant interaction with
customer for feedback.
4. Team management or people management
 This is the most challenging thing because if you cannot manage a
team of people you can’t get your work done.
Challenges Facing Management

5. Recruitment
– Recruiting employees of right kind of knowledge, skills, and
ability was a challenge and is a challenge.
6. Effective Communication:
– In todays globalized and multi-cultural world, managers need
strong and effective communication skills.
7. Laws and Regulations
– Managers must be aware of the International and national laws,
otherwise they can’t get the work done.
8. Attrition
 Attrition occurs when an employee retires or when the
company eliminates his job. Downsizings due to insufficient
budgets or financial crises are also challenges to deal with in
todays uncertain economy.
 Undergoing a Paradigm Shift
Paradeigma meaning “model, or example.”
 Greek
 Thomas Kuhn introduced the term Paradigm
 which is now used to mean a broad model for understanding an
issue, or it is a way of thinking.
 Joel Barker defines Paradigm as:
 “ paradigm simply establishes the rules (written or unwritten),
defines the boundaries, and tells one how to behave within the
boundaries to be successful.”
.
 Paradigm Shift
 It means for today’s and tomorrow's organizations and
management, there are new rules with different boundaries
requiring new and different behavior inside the boundaries
for organizations and management to be successful.”

 Globalization, Information Technology, Diversity and

New Ethics has led to a paradigm shift.

 Paradigm Effect
 “ a situation in which people in the existing paradigm may not
even see- through their logic, reason and perception- the
changes that are occurring.”
 This effect explains why it is difficult to move from old
management paradigm to new.
 A New Perspective For Management
Management
Skills
Organizational Citizenship
Behavior (OCB)
It also called sense of ownership, means
doing Something extra for your organization
and it is not in your job description.
The Knowing Doing Gap
 Stanford professor Jeff Pfeffor gave the idea of
“one-eighth” situation, and “the knowing-doing
gap”.

 Half of today’s managers know about the real

behavioral management.

 Half of those who know, are doing something about

it.

 And half of those who are doing are sticking to it, or

maintaining it.

 So it is ½*½*½ = 1/8th
 Reasons of the “knowing-doing gap”:

A. Hollow talk/Meetings without results

B. Fear of Change/not adopting new ideas
C. Destructive internal competition
D. Incomplete & complex evaluation systems
E. Believing more on past experience.
How to control knowing doing gap?
 The knowing-doing gap can be minimized if we understand
and carefully deal with the following factors:

1. Why before how.

1. How- means policies and procedures and why- means
philosophy and culture of organization. So, we must know why
before how.
2. Knowing comes from doing
3. There is no doing without mistakes
4. Fight the competition not each other
5. Measure all important factors in evaluation
6. Fear increases knowing-doing gap so, remove fear.
The Hawthorn Studies

 1924 in Chicago
 Purpose of Study
 to see the effect of light on employees productivity
 Result (No Effect)
 Second Study 1927 by Elton Mayo
 Six female employees team was made and were kept
in separate room
 Work hours, break times, temperature etc., were
changed and an observer was noting their work who
was not supervisor
 Productivity increased
 Result (The Hawthorn Effect)
The Hawthorn Studies
 The Hawthorn Effect
 The attention and interest of supervisor or manager in
your work increases the performance.
 Third Study
 A mixed team of workers with 1 observer
 Result (No increase in productivity)
 Reason
 Workers developed team and made their own rules &
standards for work as not to work hard
 Theoretical Frameworks
 OB uses three theoretical frameworks:

1. Cognitive Framework
2. Behaviorist Framework
3. Social Cognitive Framework
Cognitive Framework
• This framework says that behavior is mainly driven by “Cognition”.

• Cognition simply means the act of knowing and item of information or more
simply the thought process, understanding and information processing.

• Our behavior is directed towards a goal and we are conscious and aware of the
goal.

• Edward Tolman conducted experiments on rates where he proved that behavior

is caused by expectation which is a thought process or cognition.
Behavioristic Framework

 This Framework Consists of:

 Classical Conditioning

 Operant Conditioning
 1) Classical Conditioning
This theory was developed by a Russian psychologist Ivan Pavlov.

Classical Conditioning.
A type of learning in which a neutral
stimulus comes to bring about a response after it is paired with a
stimulus that naturally brings about that response.
Classical conditioning
Pavlov started ringing a bell before presenting the dog
with meat. This pairing occurred repeatedly that first he rang
the bell and then presented the dog with meat. After repeated
experiences that dog started salivating at the sound of the bell,
even though Pavlov stopped presenting the meat.
 Classical conditioning
Basics of classical conditioning
 Unconditional stimulus.
A stimulus that brings about a response without having been learned. E.g., dark,
food, water
 Unconditional response.
A response that is natural and needs no learning. E.g., getting hungry, thirsty and
fear etc.
 Conditional stimulus
The neutral stimulus which is paired with an unconditional stimulus to
bring about a response. formerly caused only by the unconditional stimulus.
 Conditional response.
A response that after conditioning follows previously neutral stimulus.
 Applying classical conditioning
to behavior
 How we learn to feel fear from creeping animals, although they are harmless,
or why we feel fear from darkness or dark objects.

 The horror movies are containing darkness.

 We feel hunger at the sight of the restaurant.

Operant Conditioning
 Learning in which a response is strengthened or
weakened depending on its favorable or unfavorable
consequences.

 According to operant conditioning the organism

operates on its environment to produce some desirable
result.
 Operant conditioning
• In operant conditioning we reinforce a behavior by
providing or having a favorable or unfavorable result.

• A reinforcement is the result we get as a consequence of any action.

• If we get positive reinforcement, it means we increase the probability of

reoccurrence of a behavior. .i.e. salary cheque.

• If we get a negative consequence i.e. a punishment it means we

decrease the probability of reoccurrence of a behavior
 Social learning
 Individuals can also learn through observing what happens to
other people and also by being told about something.

 For example much of what we have learned comes from

watching models.
parents, friends, motion pictures, bosses etc,
That’s why how we learn driving, swimming, etc.
Process of social learning
 There are few steps that are to be followed during social
learning
1) Attentional process
people learn from models only when
they recognize and pay attention to its critical features.
Process of social learning
 2) Retention process.
A model’s influence will depend on how
well the individual remembers the model’s actions after the
model is no more available.
Process of social learning
 3) Motor reproduction process
After a person has seen a
new behavior by observing the model, the watching must
be converted to doing. This process then demonstrates
that the individual can perform the modeled activities.
Process of social learning
 4) Reinforcement process.
individuals will be motivated
to perform the modeled behavior if positive incentives or
consequences are got or provided. Behaviors that are
positively reinforced will be given more attention by the
individual, learned better and performed more often.
 Basic Human Capabilities
(Social Cognitive Theory)
 Symbolize ( to express a phenomena, an event, a process or an experiment in
words or models)
 The capacity to get meaning from environment (e.g., Hawthorn Effect)
 Then using it as guides for future action and solving problems.
 E.g., Hawthorn Effect, HRM, Planning, Organizing etc.,
all are the names (symbolic representations) of
practical activities or events.
Basic Human Capabilities
 Forethought

 Ability to plan actions and alternative strategies

 To anticipate the possible result of these planned actions
 And to set goals and challenges for motivating one’s self

 E.g., Employees plan their actions (What I am going to do),

anticipate the consequences (what I am going to get for it),
and determine the level of desired performance (what my
performance goal is)
 Basic Human Capabilities
 Vicarious Learning/Observational Learning
 Ability of individuals to learn a new behavior through modeling or
direct observation without undergoing the trial and error process.

 Observational Learning includes Attention, Retention, Motor

Reproduction and Reinforcement steps.

 E.g., Employees learn by observing their colleagues or Bosses and

the results (reinforcement) of their actions and then accordingly
copy their actions if positive result or don’t copy if negative result.
Basic Human Capabilities
 Self-regulation
 Ability of individuals to bring self-directed changes in their
behavior.
 This ability depends upon correct self-observation and self-
monitoring.

 E.g., Employees set internal performance standards

for themselves and find out the gape between their
real performance and their internal performance
standards and then change their behavior.
 Basic Human Capabilities
 Self-reflection (Self-feedback)
 The most unique human ability according to Bandura.
 Through self-reflection:
 People get meaning from their experiences
 They explore their own cognitions and self-beliefs
 Do self-evaluation
 Change their thinking and behavior accordingly.

 E.g., Employees reflect back on their actions (how did I

do), determine their level of motivation and
commitment and then change their effort and
performance, accordingly.
 Social Learning/Social Cognitive
Theory
People at the same time are
the products and producers of People
their behavior

Organizational Influence
Organizational
Behavior Environment
Self-efficacy
 self-efficacy beliefs, "people's judgments of their capabilities to
organize and execute courses of action required to attain
designated types of performances"

 "people's level of motivation, emotional states, and actions are based more
on what they believe than on what is objectively true" (Bandura)
 Self-efficacy effects human thinking process, effort, skills and
outcomes of an activity.
 Self-efficacy is developed from an individual previous experience,
modeling, social persuasion and emotional states during an
activity.
 Mintzberg’s Managerial Roles
 Interpersonal Roles

 Figurehead.
 when a manager is supervising a department then he is the figurehead of that
department.
 Leadership.
 this role includes hiring, training and motivating and disciplining the employees.
 LIASION
 develops and maintains a network of external contacts to gather information
 Managerial Roles
 Informational Roles
 Monitor
This role includes collecting information by reading
magazines and talking to other people to know about the public taste,
planning of the competitors etc.

 Disseminator
When the managers transmit this information to
organizational members they are playing the role of disseminator.

 Spokesperson
When the manager is making any announcement
regarding the organization then he is playing the role of a
spokesperson.

Managerial Roles
 Decisional Roles
 Entrepreneur
As entrepreneur the manager initiates and oversees
the new activities that will improve organizational performance
 Disturbance Handler
The manager takes corrective actions in
response to erasing problems
 Resource Allocator.
Allocating resources to different departments
 Negotiator.
They discuss issues and bargain with other firms to
get advantage for their own unit.
Diversity and Ethics
Diversity
 Definition: (R. Roosevelt Thomas)
 It is an all inclusive mixture of differences and similarities.
At micro level, we look at the differences and at macro level
we find similarities.

 E.g., An international business organization may have people

from different races, cultures, societies, age and gender etc. So,
individually or at micro level individual culture, personality, age
and gender are different. But at macro level or as a group, they
may share common organizational goals, objectives, values and
culture
Reasons for the Emergence/increasing
of Diversity
 Reasons for the Emergence
of Diversity
1. Changing Workforce Demographics
 Old workers, women, minorities and those with more education are now entering the
workforce in record numbers.
 Composition of today’s and tomorrow’s workforce is and will be much more different than
that of past.
 US Diversity index shows that in today’s workforce 1 of 2 people are racially or ethnically
different as compared to 1 of 3 in 1980.

2. Legislation and Lawsuits

 The political and legal systems in the world are encouraging merit-based work for
minorities and women and discrimination is discouraged.
 Example: (International Labor Organization (ILO) works for employment opportunities,
enhance social protection.
 Successful discrimination lawsuits against Mitsubishi, NASA (National Aeronautics and
Space Administration), American Express etc., have brought millions of dollar penalties on
these organizations.
Reasons for the Emergence
of Diversity
3. Competitive Pressures
 Organizations that attract women and minorities have more talented
and capable workforce.
 US Management Association recent study found that if the senior team
of a company represents the demographics of its markets, the more it
will design products, market services and campaigns that are successful.
4. Recognition and Desire for Diverse Viewpoints
• Empirical evidence proves that diversity leads to innovation and
breakthrough competitive advantage.
• E.g., Shoe suggested by women in Reebok Industry
• Chemical firm (DuPont) took the suggestion of African American
employees and successfully marketed agricultural products for small
farmers.
Reasons for the Emergence
of Diversity
5. Rapidly growing increase in International Business
• If a domestic organization promote diversity, it will be easy for it to
work globally.
• E.g., A diverse team at DuPont Chemical firm is given credit for
gaining the firm dollar 45 million in new business worldwide.
Specific Characteristics of Diversity
 The major characteristics contributing to Diversity are:

 Age
 Gender
 Ethnicity
 Education
Specific Characteristics of Diversity
 Age:
1.Productivity
 Older employees bring a number of qualities to work i.e. experience,
commitment, judgment, strong work ethics etc, and therefore increase
productivity.
 Some organizations continue downsizing to reduce costs and increase productivity
and hire newly educated and trained employees.
 Age discrimination laws also permits old employees in workforce.
2.Turn Over
 Because of higher wage rates, longer paid vacations, and more attractive pension
benefits, old employees have lower turn over rate.
 Young employees due to energy, and opportunities available may have high turn
over rate.
Specific Characteristics of Diversity
3.Absenteeism
 Avoidable absence are made more by young employees and unavoidable absence ratio is high
in old people because of poor health and longer recovery periods.

4.Job Satisfaction
 Job satisfaction increases with age due to commitment, pension, high wages etc.

 Gender
 In US women comprise 50% of workforce as compared to 40% in 1975.
 Women employment may change the policies and day to day practices of organization
 Glass Ceiling Effect:
 The resistance to promotion of women to higher positions
 Specific Characteristics of Diversity
 Gender and Productivity
 There are no consistent differences in problem solving skill, analytical skill, motivation, or
learning skill between male and female employees.
 Both male and female are equal in productivity.

 Gender and Turn Over

 Female workers have higher quit rate than men. The reason is that they have more home
responsibilities.

 Gender and Absenteeism

 Due to child care responsibility, maternity issues, women have high absenteeism as
compared to men

 Gender and Job Satisfaction

 Females have high job satisfaction because of natural quality of conformity.
Specific Characteristics of Diversity

 Ethnicity
 Ethnicity means the ethnic composition of a group or organization.
 Inclusion of different ethnic groups in workforce need a little bit changes in work
practices and rules.
 Normally around the world minorities are treated differentially.
 Education
 Education level of female and minorities is increasing with the passage of time and
they are joining jobs in greater numbers now.
 To train employees and educate due to competitive global economy, is a challenge
for todays organizations.
Managing Diversity
 Developing Multicultural Organization
 Multicultural organization is the one which recognizes the interests and
contributions of diverse cultural and social groups in its operation.
 Eradicate (to get rid of completely) social oppression in all forms.
 Includes members of diverse cultural and social groups in decisions of
organization.
 Individual Approach to Managing Diversity
 Learning
 Empathy
Managing Diversity
 Learning
 Getting experience and one-on-one communication regardless of age, gender,
ethnicity, religion or country etc., can help prepare manager better to deal with
diverse groups.
 E.g., with disable people after interaction, manager may come to know that they
don’t need special attention, they just need to be treated as normal employees.
 Empathy
 The ability to put one’s self in other place to see things from that person’s point of view.
 Sometimes also called emotional intelligence, is very important for peaceful
environment in organizations.
 Women harassment cases may result or ideological or cultural clashes may develop
due to insufficient understanding of others feeling and views.
Managing Diversity
 Organizational Approach to Managing Diversity
 Testing
 Job specific tests rather than traditional knowledge and intelligence test, can help
remove bias and focus on the specific job.
 Carefully conducted interviews and role plays can be helpful in assessing the applicant
interpersonal and communication skills.
 Training
 Diversity trainings can be either delivered to diverse groups or to the diversity
managers and employees who work with diverse groups.
 The trainees of one group are asked to describe the other group and then the other one
is shown how they have been described by the first one.
 Groups also describe problems they face while working with other groups
 Games are also arranged to develop understanding among diverse groups regarding
each other.
 But these trainings will only yield results if the objectives are linked to outcomes.
Managing Diversity
 Mentoring
 Mentor is a trusted counselor, or advisor who provides an assistance.
 Mentoring is used for women and minorities.
 Benefits of Mentoring
 Identify skills and interests of the employees
 Instruction on specific skills and knowledge necessary for successful job
performance.
 Help understanding the unwritten rules (informal organization) to avoid saying or
doing the wrong things
 Offering emotional support
 Serving as role model
Ethics
 Definition (Fred Luthons)
 “Ethics involves moral issues and choices and deals with right and wrong
behavior.”
 Cultural, organizational and external environmental factors influence ethical
behavior.
 Cultural influences on ethical behavior come from: family, friends, neighbors, education, religion,
and media
 Organizational influences come from: ethical codes, role models, policies and practices, and
reward and punishment.
 External environmental influences include: political, legal, economic, and international
developments.
 The perception of ethical behavior may differ even with in one organization, i.e., the same
issue may be viewed by the faculty members as ethical while the executives my view it as
unethical.
 Due to ethical issues relating to the protection of the environment, use of bribes, price
fixing, illegal accounting practices, ethics has become an important concern for
international management.
 Ethics
 Impact of Ethics on Outcomes
 Besides morality issues, ethics also affect the outcomes of business in positive way.
 Different studies have found that ethical commitment leads to increase market value added
(MVA) and increase financial outcomes.
 Another study found that pollution control and reduction of hazardous waste programs
positively influence profitability gains.
 Springfield Remanufacturing Corporation is an ideal organization based on trust, total
transparency and ethical organizational culture.
 Springfield Remanufacturing Corporation uses this quick test when employees are faced with
ethical issues.
1. Is the action legal?
2. Is it right.?
3. Who will be affected?
4. Does it fit the companies values?
5. How I would feel afterwards? Islam is the complete code
of life and it’s ethics are the
6. How would I look in the newspaper?
best in the world.
7. Will it reflect poorly on company?
Ethics
 Employee Privacy Issues
 Internet
 Due to internet employees can have password identification codes.
 Surveys indicate increase in employer storage and review of e-mail messages.
 U.S. Nissan company two trainers sued against their employer because of checking their
personal emails.
 Another ethical issue is how to monitor employees using internet
 Cyberloafing and downloading virus-infected softwares is also a reason given sometimes to
keep check on employees use of internet.
 Employees drug testing
 It is also an ethical issue e.g., Motorola take drug tests of all employees every three year.
 Personal Life Style
 A relatively new threat to privacy is companies dictating personal life style e.g., weight,
smoking,
 Groups
 Definition
Two or more individuals,
interacting and interdependent, who come
together to achieve particular objectives.
 Formal and informal groups

(1). Formal groups

……..are those defined by organizational
structure with designated work assignments and establishing tasks.
 Example
 The six members making up an airline flight crew are a formal group.
 Formal and informal groups
(2). Informal groups
…….are those neither formally
structured nor organizationally determined. These groups are
natural formations in the work environment that appear in
response to the need for social contact.
Example
 Three employees from different departments who regularly
eat their lunch together is an informal group.
Classifying Groups

Command Groups
(1).Formal group
Task Groups

Interest Groups
(2).Informal group
Friendship Groups
70 Chapter 8 Prentice Hall, 2001
Four Types of Groups

 Command group.
– determined by the organization chart. It is
composed of individuals who directly report to a given manager.
Example
 An elementary school principal and her 18 teachers is a command
group. or the area sales manager along with his sales force.
 Four Types of Groups

 Task group
– it is also organizationally determined represent those
working together to complete a job task, however a task group’s
boundaries are not limited to its immediate hierarchical superior.
Example
 The hiring of new employees can be a task which can involve GM, HR
manager and a particular functional manager.
Four Types of Groups
 Interest group
are such groups that affiliate to attain a specific objective
of shared interest. for example employees who come together to have
their vacations schedules altered, to support a colleague who has been
fired or to seek improvement in working conditions is an interest
group.
 Friendship group – members have one or more common
characteristics. for example similar age or holding similar political
views
Why people join groups ?

Security Status

What
Makes
Self-
Esteem People Affiliation
Join
Groups?
Goal
Power
Achievement
 Why People Join Groups?
 Security
 By joining groups people feel stronger, less in self doubt and are more safe from threats.
 Status
 Joining group gives status and recognition.
 Self-esteem
 Conveying status to outsiders, group gives a feeling of self-worth to it’s members.
 Affiliation
 Groups fulfill social needs. On-the-job interactions are primary source of fulfillment of affiliation
need for many people.
 Power
 What cannot be accomplished individually becomes possible through group.
 Goal Achievement
 Task accomplishment is sometimes impossible without group. So, the management relies on the
formal group for different knowledge & expertise etc.
Stages of Group Development

Stage I Stage II
Forming Storming

Stage III Stage IV Stage V

Norming Performing Adjourning
 Stages of Group Development

Groups generally pass through a standardized sequence in their evolution. we call

this sequence the five stage model of group. Forming, storming, Norming,
performing and adjourning.

The first stage forming

is characterized by a great deal of uncertainty
about the group purpose, structure and leadership. Members are
uncertain about what type of behavior is acceptable. This stage is
complete when members have begun to think themselves as part of a
group.
 Stages of Group Development

2.The storming stage

 is one of the intragroup conflict. members accept
the existence of the group, but there is a resistance to the constraints that
the group imposes on individuals.
 Furthermore there is conflict over who will control the group. When
this stage is complete, there will be a relatively clear hierarchy of
leadership within the group.
 Stages of Group Development
3.The Norming stage
The Norming stage completes
when close relationships have been developed and the group
demonstrates cooperation.
 Cooperation further develops common set of expectations from the
group members which defines their behavior.
 Stages of Group Development
 The fourth stage is performing.

The group structure becomes fully functional and group energy moves
from getting to know and understand each other to perform a task at
hand.
 For permanent work groups performing is the last stage of their
development, however for temporary committees, task forces or
other similar groups that have a limited task to perform, there is an
adjourning stage.
 Stages of Group Development
5. Adjourning stage.
In this stage the group prepares for its disbandment,
where high task performance is no longer the group’s priority, instead
attention is directed toward wrapping up activities.
Team Work Group
Has collective work-products- collective Individual work product
work product is what two or more
members must work on together.

Shared leadership roles Strong clearly focused leader

Both individual and mutual accountability Individual accountability

Specific purpose Has same purpose as the organization

Encourages open ended, active problem It runs efficient meetings

solving meetings

Has synergetic effect (the whole is greater

than its parts)
Identity Expectations

Group
Roles
Conflict Perception
 Group Roles
According to Shakespeare all the world is a stage and all the men and
women are players. similarly all the group members are actors.
Role is defined as……to engage in a set of expected
behavior that are related to occupying a given position in a social unit.
 Group Roles
1. Role Identity
 Attitudes and behaviors consistent/matching with a role.
 When workers are promoted to supervisory positions vital/important
changes are observed in their behavior with other workers.
 Group Roles
2.Role Perception
 Our view of how we’re supposed to act in a given situation is called role perception.

3.Role Expectations
 How others believe you should act in a given situation is called role expectation.

4.Role Conflict
 Person having conflicting tasks or task that is against person’s personal values.
 Cohesiveness
 The degree to which members of the
group
are attracted to each
other and motivated to
stay in the group.
Related to the group’s
productivity intact (whole) group.
 Group Decision Making

Advantages Disadvantages

 More Diversity of Views  Dominant Individuals

 Increased information  Unclear Responsibility

 Higher-quality decisions  Time and money costs

 Improved Commitment  Conformity pressures

88 Chapter 8 Prentice Hall, 2001
Increased acceptance
Group/Team Effectiveness
 Group has a positive impact on employee behavior especially on employee
satisfaction and performance.

 Three factors that determine group effectiveness

1. Task interdependence (how closely group members work together)
2. Outcome interdependence (whether and how group performance is
rewarded)
3. Potency (Members belief that group can be effective)
– Effective groups work towards the direction and goal of the organization.
– Groups with self leadership proved to be more effective.
– Groups having coordinators, task shapers, team players tend to be more
effective as compared to groups that don’t have them.
Group/Team Effectiveness
 Hot Groups
 Groups that achieve breakthrough performance. Characteristics of such groups
are:
 Task is important than interpersonal relations
 Less Micromanagement: (over-attention to minor details of employee work
by manager)
 Informal feedback (friendly feedback) and role modeling of successful hot
groups by experienced members who work together with new groups.
 Group rewards rather than individual rewards are emphasized
 Leadership is less interfering.
 Dysfunctions of Groups and Teams
1. Norm Violation and Role Ambiguity/Conflict
 Violation of group norms results in antisocial behavior like, harassment, theft, lying,
spreading rumors, absenteeism etc.
 Role Ambiguity
 When employee doesn’t know what he should be doing. Unclear job descriptions,
incomplete orders by managers and inexperience may result in role ambiguity.
 Role Conflict
 Person having conflicting tasks or task that is against person’s personal values.
2. Groupthink Irving Janis defines group think as “deterioration of mental efficiency, reality testing and
moral judgment that result from in-group pressures.”
Dysfunctions of Groups and Teams
 Symptoms of Groupthink
 Majority group members think they are right.
 Members pressurize doubters to support the majority.
 Doubters keep silent.
 The group interprets silence as consent/yes.

 Five factors that increase groupthink

 The group’s cohesiveness
 The leader’s behavior
 Time Pressures
 Failure to follow methodical decision-making procedures
 Dysfunctions of Groups and Teams

3. Social Loafing
 “Low effort and performance while and working in group.”
 Causes are lack of feedback, and “sucker effect” which means that an employee
doesn’t work more than what he thinks.
 Collectivist societies have less social loafing while individualistic societies
experience more social loafing.
 Social Loafing normally occurs in large groups.
 Teams in Modern Workplace
1. Cross-Functional Teams
 Teams made up of individuals from various departments.
2. Virtual Teams
 Group with non-face to face interaction or communication at distance through electronic means such
as e-mail, chat rooms, phone and video conferencing, faxes, satellite transmissions and websites.
 Synchronous technologies
 That allow people to interact at the same time or in real time e.g., audio-video conferencing
 Asynchronous technologies
 For jobs of lower complexity delayed interaction through e-mails, chat rooms, Web pages, bulletin
boards etc.
3. Self-Managed Teams
• A group of employees who are responsible for managing and performing technical tasks.”
• Some times they are empowered to hire, organize and manage without direct approval of the
management.
Managing Performance
through Job Design
and Goal Setting
 Scientific Management
A set of principles and practices designed to increase the
performance of individual workers by stressing job
simplification and job specialization.
Job simplification:
 The breaking up of the work that needs to be performed in an
organization into the smallest identifiable tasks.
Job specialization:
 The assignment of workers to perform small, simple tasks.
Time and motion studies:
 Studies that reveal exactly how long it takes to perform a task
and the best way to perform it.
 Scientific Management in Practice
 Pay is the principal outcome used to motivate workers to
contribute their inputs.
 Specific disadvantages:
 Workers may feel that they have lost control over their work
behaviors.
 Workers may feel as if they are part of a machine and are
treated as such.
 Workers have no opportunity to develop and acquire new skills.
Job Design
 “Methods that management uses to develop the content of a job, including all
relevant tasks, as well as the process by which jobs are constructed and revised.”
 Job Design determines: What task are done How the task are done How many task
are done and In what order the job is done
 Central to OB study due to the intrusion of recent trends changing nature of work
most importantly due to:
 Internet, intranet, e-business.
 Two new developments emerged due to the advanced IT
 1st
 Blurred boundaries between on-work and off-work, carrying cell phone, personal
digital assistant (PDA), home office containing fax machine and being “on call”
practically every moment of the day.
 2nd
 Telecommuting Jobs or Teleworking, in which employees do substantial amounts of
work at home.
Job Design
Job Design
 Job Engineering
 The work of every employee is fully planned by the management at least one day in advance
 Each man received in most cases complete written instructions, describing in details the task
which he is to accomplish.
 This task specifies not only what is to be done but how it is to be done and the exact time
allowed for doing it
 Work should be arranged so that workers can be efficient.
 Employees selected for work should be matched to the demands of the job.
 Employees should be trained to perform the job.
 Monetary compensation should be used to reward successful performance of the job
 Specialization and regularization of work leads to high levels of output and employees
becoming more experts.
 Demerits of Job Engineering Approach
 Repetition
 Mechanistic
 Little social interaction
 No effect on turn over and absenteeism, satisfaction
 Increased alienation and frustration
Job Design
 Job Rotation
 It’s a form job redesign that involves moving employees from one
relatively simple job to another after short time periods (one hour, half-
days, every day).
 E.g., McDonald’s
 Benefits
 Employees become more flexible & are able to cover another employee’s job in
case of his/her absence.
 Another advantage is that in McDonald’s e.g., a manager promoted only after 6
months to a rank has probably exposed to every production task.
 Some research proves it’s good in sense of cross-training the employees and
broadened responsibility.
 Disadvantage
 With the passage of time, each individual task becomes boring as rest of the simple
task, so no significance impact on satisfaction.
Job Design
 Job Enlargement
 Increasing the number of tasks that an employee performs.
 Benefits
 Employees are able to use more skills in performing their tasks.
 Cost-effective
 Disadvantages
 Low efficiency with which tasks are completed individually
 Increased anxiety and dissatisfaction especially in cases of downsizing
 Job Design
 Job Enrichment
 It’s the application of Herzberg’s two-factor theory.
 According to this technique jobs are designed in a way that employees
have:
 Variety of work content
 Autonomy and responsibility in terms of planning
 Opportunity for personal growth and meaningful work experience.

 Disadvantages
 Some times employees don’t want to change job.
 Some employees have on high priority the pay.
 Some employees like their on-the-job socialization and friendship rather than
increased responsibility and autonomy.

 Advantages
 More employee satisfaction, customer service, fewer employee errors.
Job Characteristic Model of Job Design
Job Characteristic Model of Job
Design
Example of Applying Job Characteristics
Model of Job Design
 Skill variety
 The sales people were asked to think of and use
 Different selling approaches
 New merchandise displays
 Better ways of recording sales and keeping records
 Task Identity
 The sales people are asked to
 Keeping a personal record of daily sales volume in dollars
 Keep a record of number of sales/customers
 Task Significance
 Sales people are reminded that
 Selling a product is the basic overall objective of the store
 Courtesy and pleasantness helps build the store’s reputation
Example of Applying Job Characteristics
Model of Job Design
 Autonomy
 Sales people are encouraged to
 Develop and use their own unique sales approach
 Have freedom of selecting their own break and lunch times
 Make suggestions for making changes in all phases of policy and operations
 Feedback from the Job Itself
 Sales persons keep personal record of their own sales volume
 Good rapport with customers and satisfied customer is employee success.
 Feedback from Agents
 Observe and help each other with techniques of selling
 Seek out information from boss and relevant departments on all phases of their
job
 Invite customers’ reaction concerning merchandise, service etc.
Advice to Managers
 Realize that increasing intrinsic motivation decreases your need for
extrinsic motivation & control.
 To increase levels of intrinsic motivation, increase levels of the five
core dimensions.
 Assess workers’ desire for personal growth and development at work
first.
 Make sure the extrinsic motivation & satisfaction prior to redesigning
jobs.
 Assess workers’ abilities & skills before redesigning their jobs.
 Periodically assess workers’ perceptions of the core dimensions of
their jobs as well as their levels of job satisfaction and intrinsic
motivation.
Engagement, Disengagement, and Social
Information Processing
 Psychological/Personal Engagement (William Kahn)
 When employees physically, cognitively and emotionally are involved in job performance.
 E.g., Study of Youth Camp compared to Architectural Firm
 How to enhance personal engagement?
1. Meaningfulness (feeling that task is valuable and useful)
2. Safety (work without fear of self-image, status or career)
3. Availability (feeling that sufficient physical, cognitive and emotional resources are
available for a job)
 Psychological Disengagement
 Psychologically distant from performing a job and withdrawing from a job.
 Gallup studies show that about one in five U.S employees reported being disengaged.
 Main reasons are poor pay and working conditions, strict supervision, but recent studies
show that lack of job fit, poor management, and lack of person-environment fit are the
main reasons.
Engagement, Disengagement, and Social
Information Processing
Social Information Processing (SIP by Salancik &
Pfeffer)
 According to SIP Three major causes of employee behavior on
the job are:
 Cognitive perceptions of real job environment or how they think about the
job environment
 Past job experience: positive or negative
 The feedback received from managers, co-workers & customers etc.
 So, social information and social cues (feedback and
comments of managers, workers and customers) in organization
have major influence on employees attitude towards, and
behavior on their job and their engagement and disengagement).
 Quality of Work Life, Sociotechnical
Design
 Quality of Work Life (QWL)
 The concern about the impact of Job on people and organizational effectiveness plus the
emphasis on the participation and problem solving.
 Recent research shows that QWL has positive impact on employee turn over and
productivity, even across cultures.
 The practical application of QWL & what is exactly meant by quality is still under question,
(quality means good pay or personal engagement).
 In HRM, job sharing, flextime and four day, 10 hour work weeks are examples of QWL.
 In OB Sociotechnical Design & HPWPs are important approaches to QWL
 Sociotechnical Design
 Background
 This approach came from, Swedish Saab & Volvo Automobile Plants.
 Employees wanted more meaningful jobs and there was need of efficient car building
process for company.
 Employees absenteeism & turn over increased.
Quality of Work Life, Sociotechnical Design
 Sociotechnical Design
 Definition:
 “Natural work modules served by autonomous work groups , assigning &
inspecting their own work, and each member of the group working towards the
same group goals and all are paid the same except the leader.”
 Employees turn over & absenteeism decreased and cost savings increased.
 This approach was also used in USA General Foods (Kansas).
 Shared responsibility, autonomous work groups, coaches instead of supervisors
were used.
 Result was positive attitude & efficiency, but later on due to lowering the authority
of the managers, they became against this approach, and it resulted in failure.
 Previously Proctor & Gamble used this approach now general Mills, FedEx,
Hewlett- Packard use this approach of autonomy and empowerment.
 Quality of Work Life, Sociotechnical Design, High-
Performance Work Practices (HPWPs)
 High-Performance Work Practices/Systems (HPWPs)
 “An organization system that adjusts its strategy, goals, objectives, and internal operations
with the demands of external environment to maximize organizational performance.”
 Primary objective of HPWPs is to achieve fit among people, technology, information, and
work.
 Total organizational culture must include:
 Organization’s strategy
 Encouragement of innovation
 Measures of internal & external customer service
 Cooperation
 Teamwork
 Open communication
 Trust
 HPWPs emphasize empowerment and disadvantages associated with people doing jobs that
do not match their skills.
 HPWPs emphasize multiple selectors and training of selectors and innovative performance
evaluations and feedback e.g., 360-degree feedback.
International Perspectives on the Design of
Work
The Japanese Approach
 Emphasizes strategic level
 Encourages collective and cooperative working arrangements
 Emphasizes lean production
 Lean Production
 Net production with zero waste while ensuring quality
International Perspectives on the Design
of Work

The German Approach

 Technocentric - placing technology and
engineering at the center of job design decisions
(traditional German approach)
 Anthropocentric - placing human
considerations at the center of job design
decisions (more recent German approach)
International Perspectives on the Design
of Work

The Scandinavian Approach

 encourages high degrees of worker control i.e.,
give workers the opportunity to control aspects
of work & workplace
 encourages good social support systems for
workers
The Distinguishing Feature of Job Design in the
Future
 Goal Setting
 Goal: What an individual is trying to accomplish through his or
her behavior and actions.
 Goal Setting: The process of motivating employees by
establishing effective and meaningful performance targets.
 Goal Setting Theory: A theory that focuses on identifying the
types of goals that are most effective in producing high levels of
motivation and performance and why goals have these effects.
 Goal setting can operate to enhance both intrinsic motivation (in
the absence of any extrinsic rewards) and extrinsic motivation
(when workers are given extrinsic rewards for achieving their
goals).
Goal Setting (Continued)

 Major Dimensions of Goal Setting

 Research on the Impact of Goal Setting
 The Importance of Specific Goals
 The Importance of Difficult and Challenging Goals (two forms
of feedback can enhance goal achievement)
1. Process Feedback
2. Outcome Feedback
 Goal Acceptance, Participation, and Commitment
 Self-Efficacy and Goals
 Objective and Timely Feedback
 Characteristics of Motivating Goals

 Specificity
 Often quantitative
 Difficulty
 Should be hard but not impossible for most workers to achieve
 Acceptability
 Especially important when managers set goals for subordinates
 Feedback
 So that workers know how well they are doing
Mechanisms:
Specific, Difficult Goals leading to Motivation and
Performance

 Directing workers’ attention and action toward

goal-relevant activities
 Causing workers to exert higher levels of effort
 Causing workers to develop action plans to
achieve their goals
 Causing workers to persist in the face of obstacles
or difficulties
Limits to Goal Setting Theory
There are two circumstances under which
setting specific, difficult goals will not lead to
high motivation and performance:
 When workers lack the skills and abilities needed
to perform at a high level.
 When workers are given complicated and difficult
tasks that require all of their attention and require a
considerable amount of learning.
Goal Setting
Management by Objectives (MBO)
 A goal-setting process in which a manager meets with his
or her supervisor to set goals and evaluate the extent to
which previously set goals have been achieved.
 Although less common, MBO can also be used as a
motivational tool for nonmanagers.
 Necessary characteristics for MBO success:
 Set goals should contribute to organizational effectiveness.
 Goals should be specific and difficult.
 A certain amount of trust and rapport must exist between
managers and their supervisors.
Goal Setting
26

Advice to Managers
 Be sure that a worker’s goals are specific and difficult,
whether set by you, by the worker, or by both of you.
 Express confidence in your subordinates’ abilities to
attain their goals, and give subordinates regular feedback
on the extent of goal attainment.
 When workers are performing difficult and complex
tasks that involve learning, do not set goals until the
workers gain some mastery over the task.
The End