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INTRODUCTION TO OB
Organization culture HR practices/ policies (training & performance evaluation)
Reward structures resistance to change Organizational Learning Job characteristics Motivation Leadership Personality Communication leadership Style Job satisfaction emotions Group Dynamics (group formation, Conflicts) Burnout
INTRODUCTION TO OB
TYPICALLYWE STUDY ORGANIZATION BEHAVIOR AT 3 LEVELS
Motivation Personality Job satisfaction Leadership Burnout emotions
INDIVIDUALS
Communication leadership Style
TEAMS
IMPACTS BEHAVIOR
IMPACTS PERFORMANCE
Organization culture
ORGANIZATION
Reward structures
INTRODUCTION TO OB
WHAT IS OB
FIELD OF STUDY THAT INVESTIGATES THE IMPACT OF INDIVIDUALS, GROUPS, AND STRUCTURE THAT HAVE ON BEHAVIOR WITHIN THE ORGANIZATIONS FOR THE PURPOSE OF APPLYING SUCH KNOWLEDGE TOWARD IMPROVING AN ORGANIZATIONS EFFECTIVENESS OR TO PUT IT SIMPLY WHAT PEOPLE DO IN AN ORGANIZATION AND HOW WILL THAT IMPACT THE PERFORMANCE
INTRODUCTION TO OB
PSYCHOLOGY
ANTHROPOLOGY
OB
SOCIOLOGY
SOCIAL PSYCHOLOGY
INTRODUCTION TO OB
PSYCHOLOGY
OB
Personality Perception Emotions Stress
Employees Attitude
INTRODUCTION TO OB
OB
Group Dynamics Communication Conflict work teams Power
Organization Change Organization Culture TEAM AND ORGANIZATION LEVELS Issues observed at both
INTRODUCTION TO OB
ANTHROPOLOGY study cultures and environments of people living in different countries and within different organizations
Deals with Issues such as
OB
Organizational Culture Organizational Environment Cross-Cultural Analysis Comparing Attitudes Cross Functional/ Cross Cultural teams
INTRODUCTION TO OB
POLITICAL SCIENCE
study of Individual and Group Behavior in a Political Environment Deals with Issues Such as
OB
Intra Organizational Politics Conflicts
ORGANIZATIONAL LEVEL
Studies Issues at
RATIONALE One Best Way to do the Job One Best Way to Put an Organization Together Rational and Impersonal Organizational Arrangement
SCIENTIFIC MANAGEMENT
SCIENTIFIC STUDY OF WORK METHODS (THROUGH OBSERVATIONS, EXPERIMENTS, & REASONING) TO IMPROVE THE EFFICIENCY OF THE WORKERS
SCIENTIFIC MANAGEMENT
Taylor
Wrote The Principles of Scientific Management in 1911 The Soldiering Effect triggered his research study Soldiering Effect occurs when workers deliberately work at a slower pace This may be due to Increase in their productivity Will result in Job Loss to Their Colleagues Faulty Wage System In the Organization Outdated Method of Working
SCIENTIFIC MANAGEMENT
Taylor
To overcome these problemsTaylor identified 2 interventions TIME & MOTION STUDY Identify the best way to perform each job Break down each job into small tasks Remove the unnecessary movements and find the best way of doing the job
PIECE-RATE INCENTIVE SYSTEM Reward the worker with the maximum output The worker to receive his wages if he meets the expected performance If he exceeds the target, wages will increase proportionally
SCIENTIFIC MANAGEMENT
Taylor
LIMITATIONS Worker is not involved in the planning of his work
Operations can never be isolated/ individualconfining workers to individual Operations will not necessarily improve their productivity
SCIENTIFIC MANAGEMENT
Taylor
We now know the Soldiering Effect more commonly as SOCIAL LOAFING Social Loafing mostly occurs if PEOPLE ARE NOT MOTIVATED ENOUGH TO WORK IN A GROUP The reason being that the individuals may feel that their task is NOT IMPORTANT Also they feel THEY ARE NOT GETTING THEIR DUE UNDER APPRECIATED The best way to beat SOCIAL LOAFING Assign meaningful tasks to team members Give the team members the right degree of autonomy over the tasks
SCIENTIFIC MANAGEMENT
Taylor
Going back to the SOLDIERING EFFECT.WHAT DO YOU THINK WAS THE HEART OF THE PROBLEM!!!
DEMOTIVATED WORKERS
Lack of interesting job Rewards not linked to performance Lack of Job Security
SCIENTIFIC MANAGEMENT
Frank & Lillian Gillbreth
Focused on Time-Motion Study developed by Taylor Studied and labeled 17 basic hand motions of the workersSearch, Hold They also observed the physical movements of the workers using motion picture Camera The productivity of the workers went up
SCIENTIFIC MANAGEMENT
Henry Laurence Gantt
Strongly tied financial rewards to performance as did Taylor Developed the Task & Bonus Scheme Workers completing their work faster (than the given time)received a Bonus The foreman received a bonus for each worker who completed the work before given time The foreman gets extra bonus when all the workers under him finish the job before time
SCIENTIFIC MANAGEMENT
ADMINISTRATIVE PRINCIPLES
ADMINISTRATIVE THEORY
Developed principles that could coordinate the activities within the organization Most prominent among the proponents of this management thought was Henri Fayol
FAYOL
French Industrialist Became popular through his book Administration industrielle et gnrale or General and Industrial Management Divided Business Operations into 6 different activities
ADMINISTRATIVE PRINCIPLES
FAYOL
Producing & manufacturing products Planning, Organizing, Commanding, Coordinating, Controlling Buying, Selling, Exchange of Goods/ Services
TECHNICAL
MANAGERIAL
COMMERCIAL
FAYOL
ACCOUNTING
FINANCIAL
Taking stock of Profit & Loss of The Organization; maintaining Financial statements
SECURITY
ADMINISTRATIVE PRINCIPLES
FAYOL
Building on these activities, Fayol suggested 14 principles of management
1. Division of Work leading to efficiency in operations 2. Giving Authority to Managers and Making them Responsible for the Work to be Done 3. Discipline in the organization where people respect authority 4. All instructions from one person 5. All activities to be a part of ONE plan 6. Organizations interests over individual interests 7. Remuneration paid should be fairaccording to cost of living & linked to Productivity
ADMINISTRATIVE PRINCIPLES
FAYOL
Building on these activities, Fayol suggested 14 principles of management
8. Organization flexible enough to be centralized or decentralized to effectively Use its personnel 9. Having clear cut communication channels in the organization; across the hierarchy 10. Right person selected to do the right job and material/ equipment kept in place For smooth performance of activities 11. All employees to be treated fairly 12. Labor turnover to be prevented by motivating the employees 13. Seek suggestions from employees to improve work place 14. Develop Team Spirit among the employees
BUREAUCRATIC MANAGEMENT
WEBER
Supported the idea of a structured, formalized, and impersonal organizations Strong set of rules and regulations in the organization
Based on the following principles WORK SPECIALIZATION & DIVISION OF LABOR Duties and responsibilities are clear Each employee given specific tasks to help him gain expertise RULES & REGULATIONS Clear as they help the employees to work in coordinated fashion IMPERSONALITY OF MANAGERS Decisions made based on facts rather than emotions HIERARCHY OF ORGANIZATION Subordinates not given any role in decision making
There is no strict bureaucracy today The principles of scientific management go against individual creativity
Important issues such as Leadership, Motivation, Power, and Informal Relations were ignored
BEHAVIORAL APPROACH
Recognized the importance of individuals attitude, their interaction With peers and superiors and its influence of their performance
Mary Parker Follet Advocated the idea of Power Sharing Elton Mayo Lead the team of scientists who conducted the Hawthorne Experiments Studied the relation between employee psycheOrganizational Environment --Productivity
BEHAVIORAL APPROACH
Some of the proponents of this theory are:
Maslow Proposed the Maslows Hierarchy of Needs pyramid to explain Human Motivation McGregor Proposed the Theories X and Y Managers belief about his employees Theory X workers are lazy, do not like work, dislike responsibility, need to be supervised Theory Y workers are creative, proactive, take responsibility, and exercise Self Control
QUANTITATIVE APPROACH
Outcome of the WW II Consists of 3 branches: Management Science/ Operations Research : PERT, CPM, Decision Theory, Sampling, Probability Operations Management : deals everything related to Production Inventory Management, Facility Location, Layout, Project Planning & Control, Statistical Quality Control Management Information Systems: Collects, Processes, Stores, and Disseminates Information
MODERN APPROACH
SYSTEMS THINKING FEEDBACK CONTINGENCY THEORY
FEEDBACK
SYSTEMS THINKING
INPUT
PEOPLE MONEY MATERIAL INFORMATION
TRANSFORMATION PROCESSES
OUTPUT
PROCESSES
PRODUCTS/ SERVICES
EMPLOYEE RECRUITED
1. WHAT DOES MARIA RODD TYPICALLY DO WHEN SHE IS PLANNING FOR AN EVENT? 2. DOES HER WORK IN ANY WAY CONNECT THE VARIOUS APPROACHES TO MANAGEMENT THAT WE HAVE SEEN SO FAR.?
MODERN APPROACH
CONTINGENCY THEORY
SYSTEMS VIEWPOINT Relation between Individuals, Teams, Organizations and Environment
CONTINGENCY VIEW Problem Solving by Understanding Individual Psyche, Technology, General Environment
Also called as Situational Theory Reflects the Increasing Complexity of the Businesses THERE IS NO ONE BEST WAY TO DO THE JOB!!! TRADITONAL VIEWPOINT Plan, Organize, Lead, Control
HAWTHORNE STUDIES
The Problem: Employee Dissatisfaction The Setting: 1924; The Hawthorne Works Factory of Western Electric Company, Chicago; 30,000 employees; the studies conducted until the early 1930s Nature of Operations: Supplied manufactured equipment to Bell Telephone System The Objective: To know the causes of dissatisfaction among workers The Managerial Concept: Influence of External Factors (environment) on Employee Motivation and therefore on Productivity
HAWTHORNE STUDIES The Experiments were conducted by National Academy of Sciences Step One was the ILLUMINATION EXPERIMENTS
These experiments suggested that there may be factors apart from Working Conditions that influenced Productivity
HAWTHORNE STUDIES
Step TWO was the RELAY ROOM EXPERIMENTS Started in 1927 by Elton Mayo and his colleagues This phase continued for a period of 5 years The intention was to change the working conditions and see how productivity changes
SOWHAT WAS DONE? 2 girls were selected for the experiment These two girls were asked to select 4 more girls The group was given the task of assembling telephone relays A telephone relay is a device comprising of 40 different components An Observer recorded the experimenttalking to the girlslistening to their complaintsgiving the girls an update on the experiment
HAWTHORNE STUDIES
Slight fall in Productivity as work rhythm is affected Sharp rise In productivity Productivity increased Productivity increased Highest Productivity Achieved
3000 relays
Productivity increased
2400 relays
HAWTHORNE STUDIES
MANAGERIAL IMPLICATIONS OF THE FINDINGS:
The rise in productivity is due to change in the employees attitude towards their job They experienced a feeling of Task Significance when their opinions were asked The employees were given autonomy on their job in terms of assembling of parts Thus, the employees developed self discipline It was also found that variables such as rest does not completely explain increase in productivity
HAWTHORNE STUDIES
The Illumination and Relay Room Experiments were followed up with a Mass Interview Program Interviews conducted between 192830 The objective was to collect information so that Supervisory Training be Improved The Interviewer would listen, talk, argue, and advice the interviewee on various aspects such as
Working Hours
HAWTHORNE STUDIES
WHAT ARE THE IMPLICATIONS FROM THESE INTERVIEWS?
Providing opportunities to express opinions motivates the employees Complaints/Grievances may not necessarily be tangiblemore often they can be symptoms to more serious problems Employees productivity depends on his experience within and outside the organization Employees level of satisfaction or dissatisfaction depends on how he perceives his social status in the organization In some departments, group behavior was evident groups restricting the productivity of individual workers Thus, bank wiring Room Studies were conducted to study this phenomenon in detail
HAWTHORNE STUDIES
BANK-WIRING ROOM STUDY
OBJECTIVE : Observe the motivational drives among the informal work groups PARTICIPANTS: 9 wire-men, 3 soldermen, and 2 inspectors; involved in attaching wire to swtiches; 1 observer, 1 interviewer THE SETTING : A Simulated Environment called Bank-Wiring Room was created replicating the actual work conditions METHOD :
The observer interacted closely with the workers, knowing more about their feelings, values, attitudes
The interviewer stationed in a different part of the factory. Was appraised of the employees by the Observer
HAWTHORNE STUDIES
BANK-WIRING ROOM STUDY
RESULTS: Emergence of an Informal team leader among the small group of 14 workers Financial rewards were not important to the team members; Group Norms were more important The production level was 6000 units vis--vis 7000 units capacity Group compelled individual production level to be at about the 6000 unit mark Groups averse to raising the level of production because:
Possibility of standards being raised Protection of slower workers Fear of employment
HAWTHORNE STUDIES
PERSONAL COUNSELLING
The bank-wiring study was followed by Personal Counselling of the employees (after 4 years) The objective was to underscore the significance of employee relations in the organization Effective Leadership and Communication among the employees identified as the key to improvement of organizational relationships The following benefits were generated:
Employees Psychological and Physiological problems were solved EmployeeSupervisor relations improved Employee Management relations improved Management demonstrated greater empathy for the employees
INDIVIDUAL BEHAVIOR
Dr Ravikiran Dwivedula
INDIVIDUAL BEHAVIOR
BEHAVIOR is defined as The Manner in which one Behaves! The actions or reactions of a person in response to an external or internal stimuli !
Though people differ in their attitudespersonalityemotionstheir Behavior can be similar to a given stimulus Example : Increase in the petrol prices (STIMULUS)most of us are not too happy (BEHAVIOR) Example: What was the stimulus and Behavior in the Hawthorne Experiments?
Stimulus : Employee Not Involved in work; improper work conditions Behavior: Demotivated Workers
INDIVIDUAL BEHAVIOR
Over the yearsthere have been changes in the way BEHAVIOR has been explained THE TRADITIONAL APPROACH BEHAVIOR IS THE OUTCOME OF A STIMULUS Example: A very unfriendly working environmentyou demonstrate an irritable behavior at work THIS IS CALLED THE SR MODEL OR THE STIMULUS RESPONSE MODEL
INDIVIDUAL BEHAVIOR
BEHAVIORAL PERSPECTIVE
SITUATION
Stimulus
ORGANISM
Physiological Cognitive
BEHAVIOR
Responses Patterns of Behavior
Environment Psychological
From the Case given to youcan you identify What is the Stimulus/ EnvironmentWhat kind of Change is observed in peopleand what is their response/ outcome
INDIVIDUAL BEHAVIOR
BEHAVIORAL PERSPECTIVE
INPUT PROCESS OUTPUTS
SITUATION
Stimulus
ORGANISM
Physiological Cognitive
BEHAVIOR
Responses Patterns of Behavior
Environment Psychological
INFORMATION PROCESSED PERSONALITY & EXPERIENCE OF THE INDIVIDUAL INFLUENCE THIS PROCESS (BARCLAYSINDIVIDUAL HIGH ACHIEVER WANTS TO BE REWARDED & RECOGNIZED) LEADS TO A PSYCHOLOGICAL CHANGE
THESE ARE THE ACTIONS TAKEN BY THE INDIVIDUAL AND ARE EXPLICIT OUTWARDLY DEMONSTRATED (BARCLAYSEMPLOYEES ARE MOTIVATED AND ARE WILLING TO SHARE THEIR EXPERIENCES ACROSS THE ORGANIZATION)
In the next 2 sessions, we will see how Individual Characteristics and Behavior will lead to employee performance and satisfaction We will first understand how the Biographical Characteristics of the individual influence his performance and satisfaction Some of the Biographical characteristics of the individuals can be
INDIVIDUAL BEHAVIOR AGE There is an increasing trend of an Ageing Workforce Age has been argued to impact productivity, commitment to the organization, and the emergence of extended employment opportunities after retirement Perception of the colleagues towards Older workers is Mixed
Commitment To Quality Commitment to Organization Judgment Experience Strong work ethic Lack of Flexibility Skeptical about Using Technology
INDIVIDUAL BEHAVIOR
AGE The Older you getthe less likely it is that you will quit your job Older workers have fewer alternatives outside their job Further, their long tenure gives them options such as longer paid vacations, more attractive pension benefits
Older workers are also associated with lower avoidable absences (not health related)Examples Holidaying, staying up home finishing chores) Older workers however have higher rate of unavoidable absences Contrary to the myth that younger workers demonstrate speed, agility, strength, and coordination at work vis--vis the older workers, there will be no decline of skills with age Age is directly related to Satisfaction Among Professional Workers, Satisfaction increases with Age Among Non Professional Workers Satisfaction falls in the middle age and then rises in later years
INDIVIDUAL BEHAVIOR GENDER There are little differences between Men and Women in terms of Job Performance No differences with respect to problem-solving ability, analytical skills, sociability, learning ability Women may conform more to authority than Men Women report higher rate of absenteeismlargely due to home/family responsibilities such as day care However, this has changed now with Men being interested in day care
INDIVIDUAL BEHAVIOR MARITAL STATUS No clear evidence on the impact of marriage on performance Married men however report lower absences, less turnover, and are more satisfied with their jobs This may well be the other way aroundsatisfied people getting married
TENURE More work experience leads to higher productivity on the job Seniority is inversely proportional to absenteeism The longer the job tenure, the higher is the employees satisfaction
INDIVIDUAL BEHAVIOR ABILITY Ability refers to the individuals capacity to perform various tasks in a job Each person has different abilitiesbut which can be broadly classified as
Intellectual Abilities
Numerical Ability (Accountant) Verbal Comprehension (Plant Manager) Perceptual Speed (Police, Fire fighter) Inductive Reasoning (Market Research Expert) Memory (sales person)
Physical Abilities
Dynamic Strength : Ability to exert muscular Force repeatedly Construction Jobs Trunk Strength: Ability to exert muscular Strength using Abdominal muscles Janitor/ Cleaning Static Strength: Exert pressure on external Objects manual labor Explosive Stength Extent Flexibility
Tests such as GMAT/GRE, and SAT are good Indicators of on the job proficiency
INDIVIDUAL BEHAVIOR
LEARNING Complex Behavior is Learnt! Learning is a Relatively Permanent Change in Behavior that occurs as a result of Experience Learning is said to have happened if the Individual Behaves, Reacts, and Responds as a result of experience in a manner different from the way he behaved before
INDIVIDUAL BEHAVIOR
Learning Theories
Behavioristic
Cognitive
Social
Classical
Modeling
Operant
Self Efficacy
INDIVIDUAL BEHAVIOR
Behavioristic Theories One of the oldest approaches to explain Learning Forms the foundation for various management concepts such as Reward Systems Has two main schools of thought:
Classical Conditioning Theory Operant Conditioning Theory
INDIVIDUAL BEHAVIOR
CLASSICAL CONDITIONING LEARNING Proposed by Pavlov through his experiments The Actors:
Pavlov, The Dog, The Bell, and The Meat
Step One:
Pavlov Shows Meat--- The Dog Salivates Pavlov Rings Bell The Dog does not Salivate
Step Two:
Step Three:
Pavlov shows Meat and Rings the Bell for a number of times The Dog Salivates
Step Four:
Pavlov merely rings the Bell The Dog Salivates
Unconditioned stimulus: Meat Unconditioned Response: Dog Salivating at the Sight of Meat
Conditioned Stimulus : Bell Conditioned Response: Dog salivating at the sight of the bell
UNCONDITIONED STIMULUS
CONDITIONED RESPONSE
UNCONDITIONED RESPONSE
CONDITIONED STIMULUS
WHERE DO YOU THINK IS THE LEARNING HAPPENING AND THE BEHAVIOR IS BEING MODIFIED
INDIVIDUAL BEHAVIOR
OPERANT CONDITIONING LEARNING The Actors: Skinner; Rat/ Pigeon; Operant Chamber What is the Experiment The Operant Chamber is a Box with a Lever It is so arranged that when the lever is pressed, a food pellet is dropped into the box A hungry rat is kept in the box While sniffing around for foodthe rat accidentally presses the leverand luckily gets the food Later on the rat learns to press the lever to get its food!!!
INDIVIDUAL BEHAVIOR
OPERANT CONDITIONING LEARNING Argues that Behavior is Learnt! People tend to internalize behaviors for which they receive positive reinforcement Example: Getting Good Grades is a positive reinforcement when you work hard People tend to ignore behaviors for which they receive negative reinforcement Example: No recognition for the loads of extra hours you put inyou will not work late hours
INDIVIDUAL BEHAVIOR
WHAT IS THE DIFFERENCE BETWEEN CLASSICAL CONDITIONING THEORY AND OPERANT CONDITIONING THEORY
CLUE: UNCONDITIONED = NATURAL; CONDITIONED = ACQUIRED OPERANT CONDITIONING: THE LEARNER ACTIVELY PARTICIPATES IN THE LEARNING PROCESS
CLASSICAL CONDITIONING: THE LEARNER IS PASSIVE OPERANT CONDITIONING OFFERS INCENTIVES FOR POSITIVE BEHAVIOR (PRESS THE LEVER TO GET THE FOOD) CLASSICAL CONDITIONING DOES NOT OFFER ANY INCENTIVE
INDIVIDUAL BEHAVIOR
What do you think is one big problem when we try to bring in these learning theories to work.
People like to be rewarded and feel on topOver the Others Leads to lot of Internal Competition within the Organization Obviouslythe benefits are not long lasting
INDIVIDUAL BEHAVIOR
COGNITIVE THEORY OF LEARNING Cognition : having awareness of something through knowledge, perception, or reason
The Actors: Edward Tolman, Rat, Maze, food pellets What is the Experiment Rats were allowed to run through a Maze in search of food Food was kept at specific points in the maze On finding the food, the rats began to learn where the food is kept These could be points in the maze where the food is kept; time taken to reach the point where food is kept
INDIVIDUAL BEHAVIOR
Cognitive learning theory finds application in the employee motivation programs, goal setting
INDIVIDUAL BEHAVIOR
SOCIAL LEARNING Learning happens through observation and experience Typically the stimulus for learning is presented by Models who can be parents, teachers, peers, superiors, Movie Stars The person acquires or imitates the traits/ characteristics of the model If the consequences are positive discontinued the behavior is reinforced else it is
INDIVIDUAL BEHAVIOR PRINCIPLES OF LEARNING GENERALLYTHE WHOLE CONCEPT OF LEARNING IS INFLUENCED BY REINFORCEMENT PUNISHMENT Reinforcement
Appreciating positive behavior in the employeesstrengthens that behavior Punishments weaken a particular behavior Negative Reinforcement : Behavior is repeated so that the unfavorable outcomes are avoided.Calling of a strike so that you can still retain your job
Reinforcement Process
Positive Feedback reinforces Behavior Example: Recognition from your Boss
INDIVIDUAL BEHAVIOR
THE LEARNING PRINCIPLES AND THE OPERANT CONDITIONING THEORY FIND APPLICATION IN
OB MOD PROCESS
OB MOD
1.
WHAT ARE THE CRITICAL PERFORMANCE BEHAVIORS. identify the behaviors which have a significant impact on the performance These behaviors should be measurable Examples can be Absenteeism, tardy performance by the employee Done by immediate supervisor
OB MOD
2.
MEASURE THE CRITICAL PERFORMANCE BEHAVIORS Identify the frequency of the occurrence of that behavior ExampleLets Saythere is about 55% of the employees are tardy on any given day at work You will again measure employee efficiency after you have implemented your interventions
OB MOD
3.
Identify what are the causes of this behaviorHow is this behavior expressedand what are the outcomes ExampleBoring job is the causeSocial Loafing is the Behaviorand not able to meet the deadlines is the outcome.
Use Positive Reinforcement.Make the work more challenging and recognize employee efforts Use PunishmentIssue a Memo It is here that the Learning Principles are usedRewarding positive behaviorspunishments
Ensure that the people have understood the rationale behind this interventiontypically done at the beginning of the intervention Evaluate if theres a change in the behavior Measure the performance using criteria such as quality of the services/ productscustomer satisfaction informationemployee grievances
ATTITUDESVALUESJOB SATISFACTION
VALUES
A SPECIFIC MODE OF CONDUCT OR END STATE OF EXISTENCE IS PERSONALLY OR SOCIALLY PREFERABLE TO AN OPPOSITE OR CONVERSE MODE OF CONDUCT OR ENDSTATE OF EXISTENCE OR IT IS YOUR PERCEPTION OR IDEA OF WHAT IS RIGHT, WHAT IS WRONG, OR WHAT IS DESIRABLE TO YOU
People do not chose jobs and careers randomly! They would seek only those jobs/careers that would interest themlook for personjob fit In other words, people take up jobs that are compatible with their interests, values, and abilities People not finding this alignment at their work place either change their jobs (sometimes profession) or stay on dissatisfied Dissatisfaction needless to say.negatively impacts performance Therefore, it becomes important for us to know how the values, and attitudes of people influence their level of satisfaction on the joband thence Performance
VALUES Values are the Convictions that an individual holds It is a function of WHAT IS IMPORTANT TO YOU & HOW IMPORTANT IS IT TO YOU! Values are rigid as they are acquired in your formative years They may change once you start questioning those values
VALUES
PERCEPTIONS
ATTITUDE
MOTIVATION
ATTITUDESVALUESJOB SATISFACTION
VALUES
EXAMPLES: I SHOULD ACT RESPONSIBLE WHEN IT COMES TO LIFE I SHOULD BE POLITE TO ELDERS HONESTY IS THE BEST POLICY!!! I SHOULD ALWAYS MAINTAIN MY SELF RESPECT I SHOULD CHERISH TRUE FRIENDSHIP
ATTITUDESVALUESJOB SATISFACTION
VALUES ARE IMPORTANT WHEN YOU WORK IN AN ORGANIZATION YOUR IDEA OF WORK IS GIVING YOU SOME AUTONOMYFREEDOM AT WORK SUCH AS FLEXITIME THE ORGANIZATION MAY HAVE POLICY OF HAVING EACH OF ITS EMPLOYEES PUT IN STIPULATED NUMBER OF HOURS AT WORK IT IS HERE THAT THERES A CLASH BETWEEN YOUR VALUES AND THAT OF THE ORGANIZATION NEEDLESS TO SAYTHIS SIGNIFICANTLY IMPACTS YOUR BEHAVIOR AND THE LEVEL OF JOB SATISFACTION!
ATTITUDESVALUESJOB SATISFACTION
CAN THERE BE DIFFERENT TYPES OF VALUES YOU WANT A comfortable life Self Respect Happiness YOU WILL Work Hard Stand up for your beliefs be cheerful, help others
TERMINAL VALUES
Final goals/ Ultimate state of mind
INSTRUMENTAL VALUES
Values which help you Achieve those final goals
ATTITUDESVALUESJOB SATISFACTION
Can different people have different values TERMINAL VALUES (in the order of importance)
UNION MEMBERS Family Security Freedom Happiness Self Respect Mature Love
ATTITUDESVALUESJOB SATISFACTION
Can different people have different values INSTRUMENTAL VALUES (in the order of importance)
ATTITUDESVALUESJOB SATISFACTION
Existential Work Ethic (entered workforce from 1960s through mid 1970s (Hippie Culture) Hard work Success Loyalty to Career
Pragmatic (entered workforce Between mid 1970sMid 1980) Ends justified Means
Generation X
ATTITUDESVALUESJOB SATISFACTION
GENERATION Y
ATTITUDESVALUESJOB SATISFACTION
ATTITUDESVALUESJOB SATISFACTION
Hofstedes Framework for Assessing Cultures: POWER DISTANCE : degree to which people in a country accept that power is distributed unequally Low : believe that power sharing is equal High: Power sharing is polarized INDIA : HIGH INEQUALITY OF POWER & WEALTH IN SOCIETY INDIVIDUALISM/ COLLECTIVISM : Degree to which people prefer to work as individuals rather than in teams Low Individualism : Want to work in teams High Individualism: Work individually
ATTITUDESVALUESJOB SATISFACTION
Hofstedes Framework for Assessing Cultures: QUANTITY OF LIFE/ QUALITY OF LIFE : High Quality of Life : Value relationships, empathic towards others Low Quality of Life : Money, succeed in competition, power UNCERTAINTY AVOIDANCE : degree to which people prefer clarity over ambiguity High Uncertainty : people express anxiety, nervousness, stress, aggressiveness INDIA SCORES LOW ON UNCERTAINTY AVOIDANCE
ATTITUDESVALUESJOB SATISFACTION
Hofstedes Framework for Assessing Cultures: LONG TERM/ SHORT TERM ORIENTATION : High on Long term orientation: People plan for their future, savings Short term orientation: People looks towards the past, emphasis on tradition, and fulfilling social obligation
VALUES
China HIGH France Russia Indonesia France Germany USA Holland Russia France Russia China
Japan MODERATE
Japan Russia
China
Germany Japan
Indonesia USA
USA Indonesia
Indonesia
USA
POWER DISTANCE
INDIVIDUALISM
QUALITY OF LIFE
UNCERTAINTY AVOIDANCE
ATTITUDES Attitudes are your opinions about situations, people, and objectsThese may be favorable or unfavorable SoHow are Attitudes Formed and Expressed Example Lack of freedom on the Job frustrates me I dont like my Boss because he Is Autocratic I quit the organization Because my Boss is Autocratic
COGNITIVE COMPONENT
AFFECTIVE COMPONENT
BEHAVIOR COMPONENT
Job Involvement
Organizational Commitment
ATTITUDES
Job Satisfaction
-It is the individuals general attitude towards the job -His attitude towards the job is positive if he is satisfied
Job Involvement
-Degree to which a person identifies psychologically with his job -High degree of Job involvement translates to fewer absences and lower turnover rate
ATTITUDES
Organizational Commitment
Employee identifies with the Organization, its goals and wishes to remain with the organization An employee may demonstrate Organizational Commitment for the following reasons: Emotionally attached to the organizationWants to Stay in the Organization AFFECTIVE COMMITMENT Incurs huge costs if leaves the organization (pension, friends) Has to stay in the organization CONTINUANCE COMMITMENT Feels morally obligated to stay with the organization (organization investing on his training) Ought to stay in the organization NORMATIVE COMMITMENT
ATTITUDES Organizational Commitment was and probably still is an important issue to study human behavior in the organization However, today we see the emergence of KNOWLEDGE WORKERS Experts in their own subject areas/ domains These Knowledge Workers can be more loyal to their Professionrather than to their organization This is what we call PROFESSIONAL COMMITMENT or OCCUPATIONAL COMMITMENT
ATTITUDES Individuals and sometimes Organizations try to achieve consistency between their attitude and behaviorin other words try to justify their attitude through their behavior Example. There have been times when the Tobacco companies justified their position by
Criticizing scientific research that showed adverse effects of tobacco on health (USA; Wall Street Journal 28 April 1998) spending enormous amount of resources in lobbying against smoke-free legislation at the Federal, State, and Local levels and intimidate the policy makers! (USA; Sweda and Daynard in Tobacco Control Resource Center, Boston (MA), 2000) Arguing against smoking restrictions in workplaces, cafes, restaurants as this will decrease the social acceptability of smokers and therefore reduces smoking incidence (EUROPE, British Medical Bulletin (1996))
ATTITUDES There may be a case of Tobacco companies backtracking on their argumentsExample when the companies agree to pay millions of dollars in compensation to the victims In a way, the companies are trying to reduce the Inconsistency in their position (of promoting tobacco based products) However, if this inconsistency goes too farthe companies may chose to quit the industry But the question isHow to companies or individuals chose which inconsistency is acceptable and which is not? Cognitive Dissonance Theory gives us some clues
ATTITUDES
Explains the linkages between Attitudes and Behavior Example: Let us say you decide to buy an extravagant piece of Blackberry
It may happen that you dont feel too good about it after you have made the purchase. It is here that you are experiencing cognitive dissonance Typically there can be three outcomes:
You desire to reduce this dissonance or inner conflict is very lowbecause you think your old phone is obsolete, and you had to upgrade to a new phone anywaysTHE CAUSE OF DISSONANCE IS LOW (UNIMPORTANT) On the other hand, if your spouse does your shopping and wants you to buy a phonethe degree of dissonance is low because YOU HAVE LITTLE INFLUENCE OVER THE DECISION Lets say the new phone will give you some additional features such as being able to send emailssomething very important to a Mobile Executive like you the cause of dissonance is LOW because THE REWARDS ARE HIGH
Let us now go back to our discussion on Job Satisfaction We said that Job Satisfaction is basically an Individuals Attitude towards his/her Job The attitude will be positive if the you are satisfied with your job However, its not only the work which gives you satisfaction When in a Job, the individual
Interacting With Boss
JOB SATISFACTION
THE RELATION BETWEEN SATISFACTION AND PERFORMANCE (PRODUCTIVITY) Contrary to the belief that Satisfied workers are more productive PRODUCTIVE WORKERS ARE MORE SATISFIED!!! When you do a good jobyou feel intrinsically good about it (getting a Good Grade will make you feel happy) This is only true at the individual level At the organization level, when people are more satisfied (due to their interactions with their colleaguesnature of work); the organization as a whole performs better Therefore, at the organization levelHAPPY WORKERS LEAD TO MORE PRODUCTIVITY At the individual levelPRODUCTIVE WORKERS ARE MORE HAPPY
THE RELATION BETWEEN SATISFACTION AND PERFORMANCE (PRODUCTIVITY) ABSENTEEISM Employees who are not satisfied report higher rate of absenteeismhowever this depends on other factors such as availability of sick leavepaid leaves Organizations allowing their employees higher number of sick leaves are encouraging even the satisfied employees to take a break!
THE RELATION BETWEEN SATISFACTION AND PERFORMANCE (PRODUCTIVITY) TURNOVER Satisfaction negatively related to turnoverhowever it depends on level of performance Organizations work hard to retain star performers They do not care for average/ Low performers
PERCEPTION
PERCEPTION
PROCESS BY WHICH AN INDIVIDUAL SELECTS, ORGANIZES, AND INTERPRETS STIMULI INTO A MEANINGFUL AND COHERENT PICTURE OF THE ENVIRONMENT IN WHICH HE LIVES
Or
THE WAY THE INDIVIDUAL UNDERSTANDS THE STIMULIDEPENDS ON HIS OWN PERSONALITY, PAST EXPERIENCES, AND THE SITUATION/ ENVIRONMENT HE/ SHE IS!!!
PERCEPTION
HOW ABOUT THESE TYPICAL SITUATIONS AT WORKWHERE YOUR PERCEPTION INFLUENCES YOUR BEHAVIOR
PERCEPTION
Lets say the employees have had a bitter experience with the OPEN DOOR POLICY of the management the first timethey would be vary about the policy the next time around.even if the management is more committed!!!
Your experience is now influencing the way you look at this OPEN DOOR POLICY
PERCEPTION
You LOOK at a paintinglook at the way the artist has used the colors to convey the mood (pink & orange are usually cheerfulevident from Picassos work done in his Rose Period)..PERCEPTION Soyou are now not merely looking at the paintingbut you are taking in the raw pictureapplying your cognitive knowledge and then being judgmental about that painting
PERCEPTION
PERCEPTUAL SELECTIVITY The whole idea of people REGISTERING the stimulus and reacting to it depends on a host of factors such as INTENSITYa widely publicized employee reward program SIZEa quantum leap promotion or a huge financial bonus is more likely to catch your attention CONTRASTYou have been working under an absolutely autocratic boss for the last 2 yearsone fine morning he does a completely 180 degree u turn and buys you a coffee! You are more likely to remember this incident
PERCEPTION The whole idea of people REGISTERING the stimulus and reacting to it depends on a host of factors such as REPETITIONFor how many quarters are you offering the big financial bonus MOTIONpeople tend to register objects in motion rather than those which are stationery NOVELTY/ FAMILIARITYyou are more likely to pay more attention to your job on DAY ONE than at the end of 3 years REPITITION CAN BE AN EXAMPLE FOR WHICH LEARNING THEORY CLASSICAL CONDITIONINGREPEATEDLY GIVING THE STIMULUS
PERCEPTION
The whole idea of people REGISTERING the stimulus and reacting to it depends on a host of factors such as LEARNINGyour own experiences or knowledgeLearning creates some notions (EXPECTANCIES) and these expectancies encourage you to look at the stimulus in a particular way WORKING CONDITIONS IN THE ORGANIZATIONindividual differences among people Low productivity Production Manager : Obsolete Machinery HR Manager : No training given INDIVIDUALS MOTIVATION & PERSONALITYHigh achievers will be more receptive to rewards than others
PERCEPTION
PERCEPTION
Gather all the information related to the problem Diagnose the causes for the problem
Assess the impact of the various alternatives How will you measure the success/ failure of the decision
PERCEPTION
PERCEPTION
AND THEREFORE WE TALK ABOUT BOUNDED RATIONAL DECISION MODEL BOUNDED RATIONAL DECISION MAKING MODEL IS A SCALED DOWN VERSION OF RATIONAL DECISION MAKING MODEL
PERCEPTION
BOUNDED RATIONALITY The problem is identified Previously tried and tested solutions to these problems are identifiedand solutions close to the previously tested solutions are considered When selecting the appropriate alternativeonly the alternatives that are closest to the previously tried solution are considered The most appropriate solution is then selected, implemented, and the performance assessed
PERCEPTION
PERCEPTUAL ORGANIZATION The processes that occur within a person once the stimuli is receivedThere are different ways in which this happens.. How will you interpret the stimulus
Figure-Ground Perceptual Grouping Perceptual Constancy
Perceptual Context
Perceptual Defense
PERCEPTION
FigureGround
perceived objects are separated from the backgroundyou will apply your knowledge/ experience to interpret the stimulus
beautiful If you knew Chinesethese characters will make sense to you in the first instance Your cognitive knowledge is influencing your interpretation of the stimulus
PERCEPTION
PERCEPTUAL GROUPINGgroup several stimuli together; you start interpreting things based on Assumptions!
the whole exists where it does notgroups in your classsome of you like the idea; others dontI am closing the gap by assuming everybody likes the idea of they forming the groups
handle the costs on a projectchances are that the rest of the projects are managed in the same way
PERCEPTION
color) does not have any effect on the way we interpret the stimulus A picture of someone you like is more likely to elicit the same response from you as when you see that person
PERCEPTION
SOCIAL PERCEPTION The way individuals perceive other peopleDepends on His/ Her PersonalityIntrovert/ Extravert Status of the Person he/she is perceivingManager/ Colleague Visible traits of the person being perceivedShort tempered/ Mild Mannered
attribution
Stereotyping
Halo Effect
PERCEPTION
Attribution Establish a CAUSEEFFECT relationship for their own behavior Exceptional Sales Performance in one territoryDoes the Regional Sales Manager attribute this performance to the great work done by the sales team or to the promotional campaigns This will largely influence the way the Regional Sales Manager perceives the Sales Team
PERCEPTION
Stereotyping Generalizing the traits of an individual depending on the group to which he belongs to All politicians are corruptAll movie stars are rich!
Halo Effect Develop a personality sketch of an individual by merely looking at one instance or characteristic
PERSONALITY
PERSONALITY
PERSONALITY
Personality
THE DYNAMIC ORGANIZATION WITHIN THE INDIVIDUALS OF THOSE PSYCHOLOGICAL SYSTEMS THAT DETERMINE HIS UNIQUE ADJUSTMENTS TO THE ENVIRONMENT
OR
SUM TOTAL WAYS IN WHICH AN INDIVIDUAL REACTS TO AND INTERACTS WITH THE OTHERSOFTEN EXPRESSED AS YOUR BEHAVIOR Example : Personality : Introvert; Behavior : Dont talk to others
PERSONALITY
Personality includes patterns of our thoughts and emotions At the basic levelPersonality influences our emotions Personality also influences our ValuesBeliefsand Expectations!!!
PERSONALITY
HERIDITY
The National, Organization Culture The values of a larger culture group influence your Personality (American Individualistic, Achievement; Indian/ Latin American Family Oriented)
ENVIRONMENT
Situation can be understood as Immediate Environment In a crisis situationpeople who are conscientious Are more adept at solving the problem
SITUATION
PERSONALITY
Personality
While there are several studies which have profiled an Individuals Personality the most popular remains the BIG FIVE PERSONALITY
PERSONALITY
Personality Trait
Behavior
Openness
Extraversion
High Energy, Always Happy, Like being in the company of others Compassionate, Cooperative, Sympathetic, Modest, Helpful, Trustworthy Lose temper pretty quickly, get into depression, perceive most of the situations/ interactions with people to be unpleasant, Impulsive
Agreeableness
Neuroticism
PERSONALITY
Personality
WHICH PERSONALITY DIMENSION DO YOU THINK SIGNIFICANTLY INFLUENCES YOUR PERFORMANCE AT WORK???
CONSCIENTIOUSNESS CONSCIENTIOUSNESS ALSO HAS A SIGNIFICANT INFLUENCE ON EMPLOYEES COMMITMENT TO THE ORGANIZATIONAND HIS OWN JOB
PERSONALITY
Personality Interestinglyresearch done by Jang, Livesley, and Vermon way back in 1996 shows the extent to which each of these personality dimensions are inherited
Agreeableness
PERSONALITY
Personality IS THERE A RELATIONSHIP BETWEEN YOUR PERSONALITY TYPE AND THE JOB THAT YOU CAN DO John Holland Says there probably is
PERSONALITY
Type Personality Trait Most Suitable Occupation
REALISTIC: Likes physical activities; mechanistic activities INVESTIGATIVE : Likes activities that involve thinking, organizing, understanding SOCIAL : Likes activities that involve helping others CONVENTIONAL: Likes rules & regulations, No ambiguity on the job ENTERPRISING: Likes verbal activities, likes influencing others ARTISTIC : Likes Ambitious, and Unsystematic Activities
Shy, genuine, persistant, conforming to rules Analytical, Curios, Independent Sociable, friendly, cooperative
Assembly Line Worker, Farmer Biologists, Mathematicians, news reporters Social Workers, Teachers, Psychologists Accountant, Bank Teller
Lawyer, PR manager
MOTIVATION
MOTIVATION!
MOTIVATION
MOTIVATION
MOTIVATION IS THE WILLINGNESS TO EXERT HIGH LEVELS OF EFFORT TOWARDS (ORGANIZATIONAL) GOALS, CONDITIONED BY THE EFFORT TO SATISFY SOME INDIVIDUAL NEED
OR
YOUR FOCUSSED, PERSISTANT EFFORTS AND YOUR INTEREST TO ACHIEVE YOUR GOALS
MOTIVATION
YOU THEREFORE HAVE PUT IN EFFORTS TO GET INTO THE MBA PROGRAM AT THE END OF THIS PROGRAMYOU WILL HAVE A FANTASTIC CAMPUS PLACEMENT OFFERTHATS THE FIRST STEP TO A LONG SUCCESSFUL CAREER!
MOTIVATION PROCESS
MOTIVATION
DRIVE/ MOTIVE IS THE EFFORTS/ ACTIONS THAT YOU PUT IN TO CORRECT THIS IMBALANCE OR LEVERAGE THIS OPPORTUNITY INCENTIVE IS THE OUTCOME OF YOUR EFFORTS
MOTIVATION
PRIMARY MOTIVES GENERAL MOTIVES -They are Physiological, Biological Unlearned -Hunger, Thirst, Sleep, Sex Can all be examples -Motives are Unlearned but not Psychologically based -Specific behaviors such as Curiosity, Manipulation, Love (affection) can be examples
SECONDARY MOTIVES -These are Learned/ Acquired -Need for Power -Need for Affiliation -Need for Achievement -Need for Security -Need for Status can be examples
MOTIVATION
Secondary motives are most relevant to the study of human behavior In the Organizationso we will look at them in detail now
SECONDARY MOTIVES -These are Learned/ Acquired -Need for Power -Need for Affiliation -Need for Achievement -Need for Security -Need for Status can be examples
MOTIVATION
Motives or Drives can be classified as follows:
NEED FOR POWER SECONDARY MOTIVES -These are Learned/ Acquired -Need for Power -Need for Affiliation -Need for Achievement -Need for Security -Need for Status can be examples First proposed by the psychologist Adler and later Popularized by McClelland When this Feeling combines With an Innate Need for Superiority
Seen in Some of the Politicians and Army Generals In the recent past
Influencing people to change their attitude Controlling people/ Activities Gaining control over information/ Resources
MOTIVATION
Motives or Drives can be classified as follows:
NEED FOR ACHIEVEMENT SECONDARY MOTIVES -These are Learned/ Acquired -Need for Power -Need for Affiliation -Need for Achievement -Need for Security -Need for Status can be examples Popularized by McClelland. Achievement is the degree to which the person wants To Achieve goals, succeed in challenging situations, And Seek Feedback on his Performance
Surprisingly, People with High Achievement Needs take Calculated Risks that Are just about Challenging
High Achievement Need People Need Immediate And Precise Feedback On their Performance;
Prefer Challenging Task Over Money; Look at Money As a Yardstick To measure their performance
Preoccupied with Task; Absolutely Committed to Work; May not be Good team players
MOTIVATION
Motives or Drives can be classified as follows:
NEED FOR SECURITY SECONDARY MOTIVES -These are Learned/ Acquired -Need for Power -Need for Affiliation -Need for Achievement -Need for Security -Need for Status can be examples Popularized by Maslow
From the Job Perspective, people with high Conscious security motives will invest in Insurance programs, saving plans, and other Fringe benefits
EXPRESSION OF NEED FOR SECURITY Having Secured job Protection against loss of income Insurance against illness/disability Safety on the job (against hazardous Substances) Avoiding tasks that involve risk
MOTIVATION
Motives or Drives can be classified as follows:
NEED FOR SECURITY SECONDARY MOTIVES -These are Learned/ Acquired -Need for Power -Need for Affiliation -Need for Achievement -Need for Security -Need for Status can be examples Popularized by Maslow
Status is the relative ranking that a person Holds in the group, organization, or society In some cultures, acquiring Life Style products Can be a symbol of status (India, China) In some others, older people generally Enjoy Higher Status (Japan)
EXPRESSION OF NEED FOR STATUS Having the right car Working for the right company with the Right job Degree from the right university Living in the right neighborhood Club memberships Executive privileges (elevator, reserved Parking)
Challenging Job, Enjoying Work, Having the Freedom to Plan your Job
MOTIVATION
CONTENT
PROCESS
CONTEMPORARY
MOTIVATION
THE FUNDAMENTAL DIFFERENCE BETWEEN THE CONTENT AND THE PROCESS THEORIES OF MOTIVATION IS THAT
MOTIVATION
CONTENT THEORIES OF WORK MOTIVATION Concerned with identifying the needs/ drives of the people and the impact on satisfaction And performance Money was thought to be sole incentive (scientific management) Other motivating factors such as working conditions, security, supervision (Human Relations); Esteem, and Self Actualization (Maslow), responsibility, recognition, Advancement (Herzberg), Growth and Personal Development (Alderfer) were identified Later We will now look at these theories in detail
MOTIVATION
MASLOWS HIERARCHY OF NEEDS Abraham Maslow believed Motives can be Prioritized Satisfaction of one level of motives will require the next higher level of need to be Satisfied to motivate the employee
SA (self Fulfillment) ESTEEM NEEDS (power, Status) LOVE NEEDS (social/ belongingness) SAFETY NEEDS (Job security, protection against Financial loss) PHYSIOLOGICAL NEEDS (hunger, thirst, sleep, sex)
MOTIVATION
MASLOWS HIERARCHY OF NEEDS Abraham Maslow believed Motives can be Prioritized In the management context, examples of various levels of need can be
SA
ESTEEM NEEDS Status, Symbols, promotions The Theory is subject to criticism Because the levels are not clearly Verified SOCIAL NEEDS Formal & Informal Work Groups/Teams
Personal Growth, Realization of Potential Accept Reality and Facts of Life Interested in Solving problems of others
SAFETY NEEDS (seniority plans, health insurance, Severance pay, PHYSIOLOGICAL NEEDS Minimum pay
MOTIVATION
HERZBERGS TWO-FACTOR THEORY OF MOTIVATION
Also called as the MotivationHygiene Theory Proposed by Herzberg He identified factors that lead to EXTREME JOB SATISFACTION (Motivation factors) and EXTREME JOB DISSATISFACTION (Hygiene Factors) Removing the Dissatisfiers does not necessarily motivate the employees
SATISFIERS/ MOTIVATORS
Growth Advancement Responsibility Nature of Work Recognition Achievement Security Status
MOTIVATION
HERZBERGS TWO-FACTOR THEORY OF MOTIVATION
CRITICISM
The influence of motivators or hygiene factors on productivity was not tested Explaining What People WANT and DO NOT WANT from their Job with only 2 dimensions Is overtly simplistic Motivationas we will seeis MULTI DIMENSIONAL
MOTIVATION
ERG THEORY OF MOTIVATION
Proposed by Alderfer who reworked on Maslows Hierarchy Motives can fall into 3 categories
EXISTENCE
RELATEDNESS
Includes Maslows Social and Self Esteem Needs
Unlike Maslows Theory, ERG theory does Not assume a strict hierarchy between the Needs A person may work towards achieving Growth needs even though his/her Relatedness needs are not satisfied Further, a higher order need not Being satisfied, people tend to Maximize their lower order need
GROWTH
Includes Maslows Esteem Needs & Self Actualization Innate desire for personal growth
MOTIVATION
The fundamental difference between Content and Process Theories of Motivation Is that Content Theories tell us WHAT motivates the employees (money, recognition, Work) Process Theories tell us HOW the employees are motivated (whats the flow Of events with respect to money, recognition, or work that lead to motivation)
MOTIVATION
HOW MANY OF YOU HAVE JOINED MBA SO THAT YOU CAN FIND A HIGH FLYING JOB AT THE END OF THE COURSE?
HOW MANY OF YOU HAVE JOINED MBA JUST FOR THE LIKING FOR THE SUBJECT?
MOTIVATION
HOW MANY OF YOU BELIEVE THAT GETTING GOOD GRADES WILL HELP YOU FIND A GOOD GREAT JOB?
HOW MANY OF YOU ARE ACTUALLY WORKING HARD NOW SO THAT YOU WILL GET A GOOD GRADE IN YOUR EXAMS
MOTIVATION
LETS SAYYOU ARE IN THIS PROGRAM ONLY FOR THE LOVE OF THE SUBJECTGETTING/ NOT GETTING A JOB IS NOT REALLY IMPORTANT TO YOU
WOULD YOU BE AS MOTIVATED AS YOU ARE IF YOU REALIZE THAT ALL THAT YOU WILL GET AT THE END OF THIS COURSE IS A GOOD JOBHOWEVER YOU WOULD NOT LEARN MUCH ABOUT MANAGEMENT?
LETS SAY GETTING A GOOD JOB AND THEREFORE GETTING GOOD GRADES IS ABSOLUTELY IMPORTANT TO YOU WOULD YOU WORK HARD IF I TELL YOU THAT NO MATTER HOW HARD YOU WORKYOU WILL NOT GET A GOOD GRADE
MOTIVATION
YOUR MOTIVATION AND THE KIND OF EFFORTS THAT YOU WILL PUT IN WILL REALLY DEPEND ON
IS THE FINAL OUTCOME IMPORTANT TO ME (GETTING JOB/ LEARNING) WHAT IS THE POSSIBILITY OF ACHIEVING MY FINAL OUTCOME IF I GET GOOD GRADES WHAT IS THE POSSIBILITY OF GETTING GOOD GRADES IF I WORK HARD THIS IS WHAT VROOMS EXPECTANCY THEORY IS ALL ABOUT
MOTIVATION
VROOMS EXPECTANCY THEORY Vrooms theory is built around 3 variables INSTRUMENTALITY VALENCE, EXPECTANCY, and
Valence: individuals preference for a particular outcome Eg. When Career growth is your preferred outcome, Your Valence is POSTIVE when you Prefer Promotion over Money Eg. When you do not prefer career growth, Your Valence is NEGATIVE with respect to Promotion Eg. When you are indifferent to career growth, Your valence is ZERO with respect to Promotion A major influence on your VALENCE for a particular motivational factor is INSTRUMENTALITY Instrumentality: The possibility of the first level outcome leading to second level outcome Eg. When you work hardyou will get a promotion! Performing harder & better (first level outcome) will lead to promotion (second level Outcome)
MOTIVATION
VROOMS EXPECTANCY THEORY Vrooms theory is built around 3 variables INSTRUMENTALITY Finally, there is EXPECTANCY Expectancy: A particular action/ effort will lead to a particular first level outcome So, Expectancy occurs before the first level outcome Eg. Knowing that working hard and better will lead to a promotion VALENCE, EXPECTANCY, and
MOTIVATION
VROOMS EXPECTANCY THEORY Lets look at a Hypothetical Scenario to understand the Implications of Vroom Theory A manufacturing unit specifies certain production targets for the workers. The workers On the other hand want rewards such as Money, Security, or Recognition. Attaining the level of production is the FIRST LEVEL OUTCOME (from the workers Standpoint) Workers receiving rewards, and recognition is the SECOND LEVEL OUTCOME If the production is Low, it may be that the workers perceive that the Instrumentality Of the Production Level (First Level outcome) is not strong enough to help them Achieve their rewards/recognition (Second Level Outcome) The workers believe that even if they meet the targetthey wont be rewarded Or, it may be that the workers are not motivated enough by these rewards/ recognition; In this case, the Valence of these of these outcomes (second level outcome) is 0 or Negative
The workers are not motivated by rewardsand therefore they are indifferent to Meeting the targets
MOTIVATION
PORTERLAWLER MODEL PorterLawler Model shows the relationship between motivation and performance It essentially extends Vrooms theory by including additional variables such as Individual Perception that influences the relation between attainment of rewards and Satisfaction It distinguishes between MOTIVATION, PERFORMANCE, and SATISFACTION The PorterLawler model can be explained as follows:
MOTIVATION
PORTERLAWLER MODEL
The level of effort out in Depends on whether the Reward is important to you and if Putting in that effort will lead you To your final outcome
4. Ability/ Traits
6. Performance (accomplishment
9. Satisfaction
JobPerson Fit
5. Role Perceptions
MOTIVATION
PORTERLAWLER MODEL Implications: Call for the managers to understand the role of effortreward perception, and role Perceptions in motivating the employeesWHAT AND HOW OF THE MOTIVATORS This requires organizations to take stock of what motivates their employees From time to time and revamp their reward policies Becomes important for the organizations to clearly define the level of performance That is expected of the employees It then becomes possible to link rewards to performance, which is a just and an Effective way to motivate the employees
MOTIVATION
EQUITY THEORY OF MOTIVATION
Propounded by Stacy Adams The employees performance on the work and his satisfaction depends on the way He perceives his work situation An Employee will typically look at whether or not the kind of efforts that he is putting in Are giving him the kind of rewards that he deserves! SoEssentiallyhe compares INPUTS with the OUTCOMES He compares this balance between his inputs and outputs with his colleagues, friends, Peers, neighbors.who may be from the same or different organization.at the same level Or different level
MOTIVATION
EQUITY THEORY OF MOTIVATION
MY OUTCOME/ MY INPUT(EFFORTS)
Herethe Inputs refer not only to your efforts on the jobbut also your experience, and Qualification The outcomes refer to promotion, pay, fringe benefits.etc
Let us sayYou are an MBA graduate working with IBMdrawing about 60K every month.. Your friend works with GEdrawing about 60K as well every month Both of you are project managers with similar job profilesand typically put in about 60 hours of work every week When you compare your situation with your friendit would be in a state of EQUITY
MOTIVATION
EQUITY THEORY OF MOTIVATION
MY OUTCOME/ MY INPUT(EFFORTS)
Herethe Inputs refer not only to your efforts on the jobbut also your experience, and Qualification The outcomes refer to promotion, pay, fringe benefits.etc
Let us sayYou are an MBA graduate working with IBMdrawing about 60K every month.. Your friend works with GEdrawing about 100k as well every month Both of you are project managers with similar job profilesand typically put in about 60 hours of work every week When you compare your situation with your friendit would be in a state of INEQUITY
MOTIVATION
EQUITY THEORY OF MOTIVATION
When you as an Individual compare your situation with othersthere can be Different ways of doing it You will compare your EQUITY with a personwho is at a similar position in Your Organization SELF INSIDE You will compare your situation with someone from a different organization at the Same position SELF OUTSIDE You will compare your EQUITY with a person who is in a superior/ inferior position To you within the same organization (Your Boss) OTHER INSIDE You will compare your EQUITY with a person who is in a superior/inferior position And who works with a different organization OTHER OUTSIDE
MOTIVATION
EQUITY THEORY OF MOTIVATION
You may decide to acquire higher qualificationsCHANGE IN THE INPUT You may decide to miss a couple of deadlinesCHANGE IN THE OUTPUT You may perceive yourself to be working harder that everyone elseDISTORT PERCEPTIONS OF SELF You may perceive that your colleagues job is not as appealing as you thought DISTORT PERCEPTIONS OF OTHERS You may start comparing your performance with a different personlets say Someone like you who is working for a much smaller company (and feel better About it!)CHOOSE A DIFFERENT REFERENT You will start looking for a new jobLEAVE THE FIELD
Group
A collection of two or more interacting individuals who maintain stable patterns of relationships, share common goals, and perceive themselves as being a group.
Common identity
Transparency among Team members; being Genuine with each other
Types Of Groups
GROUPS
Formal Groups
Informal Groups
Command Groups
Task Groups
Friendship Groups
Interest Groups
Types Of Groups
FORMAL GROUPS COMMAND GROUP : group members are in a hierarchy TASK GROUP : usually a cross functional group formed to achieve Specific targetsexamples can be Project Teams People still belong to their functional departments and can be assigned To the project part time/ for a short period of time
Types Of Groups
INFORMAL GROUPS
Formed by the employees themselves Usually driven by common interestsfriendshipexample can be People doing Car Pool to workhaving Lunch together FRIENDSHIP GROUP Formed because of cordial relationship between people More longevity INTEREST GROUP Typically occur between people of same age group, ethnic origin, views
Cross- Functional
Independence
Group Development
Forming Stage
Uncertain about groups purpose Identify what behavior is acceptable to the group Individuals try to change their behavior according to the group
Storming
Degree of conflict among team members Power struggle At the end of this stagea clear hierarchy in the group emerges
Norming
Cohesiveness Develop a sense of group identity Group members develop a common set of expectations
Performing
Group fully functional Group committed to the teams objectives
Adjourning
Group is disbanded Mixed feelings among the group members Members are busy finishing their activities...team goals take a back seat
Group Development
Punctuated Equilibrium Model
(High)
P E R F O R M A N C E
(Low)
(A+B)/2
Group Development
Punctuated Equilibrium Model
STAGE 1 : Initial kick-off meetingsbehavior of people emergesopinions are FormedA general direction is set for the project What should be the frequency of team meetings Status reportingreporting structures THIS DIRECTION GENERALLY DOES NOT CHANGE IN THE FIRST HALF OF THE PROJECT
HALFWAY THROUGH THE PROJECTPEOPLE REALIZE THEY ARE LAGGING BEHIND SCHEDULE AND ARE JUST SPENDING LOT OF MONEYLITTLE WORK IS BEING DONE!....LEADS TO A FLURRY OF ACTIVITIESTHIS IS THE TRASITION
Group Development
Punctuated Equilibrium Model
STAGE 2 : revised directions are set for the team members There is intense activity for project completion All tasks are to be finished on time
Group Development
Punctuated Equilibrium Model
HOW CAN YOU AVOID SITUATIONS IN WHICH ITS TOO LATE TO MAKE CHANGES TO THE PACE OF YOUR WORK
YOU NEED TO HAVE DELIVERABLES AT THE END OF EACH STAGE UNLESS THE DELIVERABLES ARE PRODUCEDTHE TEAM DOES NOT MOVE ON TO THE NEXT STAGE OF THE PROJECT CLEAR PERFORMANCE CRITERIA SHOULD BE DEFINED IN THE FORMING STAGES OF THE GROUP STATUS REPORTING AT THE END OF EACH STAGE OF THE PROJECT SHOULD ENSURE THAT THESE CRITERIA ARE MET
Group Development
Punctuated Equilibrium Model
STAGE GATE REVIEWS PROJECT SPONSOR + PROJECT MANAGER + CLIENT decide the important Factors that have to be measured at the end of every stage SOMETIMES FACILITATED BY EXPERIENCED PROFESSIONALS IN THE ORGANIZATION CRITERIA DEFINED CLEARLY METRICS TO MEASURE THE CRITERIA DEFINED (how to measure cost; how to measure schedule) THRESHOLD LIMITS SET GO/ NO GO DECISION (projects gets delayed by more than 3 daysOK Anything beyond 3 daysinvoke the contingency plan) PERFORMANCE REGULARLY REVIEWED AND REPORTED TO THE SENIOR MANAGEMENT
Group Development
Punctuated Equilibrium Model
Another example can be the WATERFALL MODELTYPICALLY USED IN SOFTWARE DEVELOPMENT PROJECTS The stages include REQUIREMENT ANALYSIS DESIGN CODING INTEGRATION TESTING & DEBUGGING INSTALLATION MAINTENANCE
GROUPS
IN THE LAST CLASSWE HAVE SEEN HOW GROUPS EVOLVE AND ALSO WHAT IS THE DIFFERENCE BETWEEN A GROUP AND A TEAM
GROUPS
DIFFERENCES BETWEEN A GROUP AND A TEAM
GROUP HAS ONE STRONG CLEARLY FOCUSED LEADER INDIVIDUAL ACCOUNTABILITY SAME AS THAT OF THE ORGANIZATION HAS INDIVIDUAL WORK PRODUCTS HAS GROUP MEETINGS THAT SOMETIMES CAN HAVE UNIDIRECTIONAL COMMUNICATION MEASUREMENT IS INDIRECT AND IS AT MACRO LEVEL (financial performance of the entire organization) GROUPS DECIDE AND DELEGATE THE TASKS
TEAM SHARED LEADERSHIP INDIVIDUAL AND MUTUAL ACCOUNTABILITY HAS A PURPOSE THAT CAN BE SPECIFIC TO THE TEAM HAS COLLECTIVE WORK PRODUCTS HAS TEAM MEETINGS THAT ARE OPEN ENDED; PROBLEM SOLVING IN NATURE PERFORMANCE IS MEASURED IN TERMS OF DELIVERABLES COMPLETED TEAM DECIDES AND SPRINGS INTO ACTION
GROUPS
OKAYNOW THAT WE KNOW WHAT ARE THE DIFFERENCES BETWEEN GROUPS AND THE TEAMHOW DO YOU THINK THE ORGANIZATIONS TODAY ARE USING TEAMS
GROUPS
Breaking away from bureaucracy, teams from various departments or functional Specialities are brought together for a specific task Howeverfor the cross functional teams to work properlyit is important to Choose the membership carefully Clearly establish the purpose of the team Ensure that everyone understands how the group will function Conduct intensive team building upfront Achieve significant results so that the morale remains high
GROUPS
GROUPS
The team is bound by common purpose and therefore has a mission Given that CFTs have diverse expertisemore ideas can be generated to Solve problems A holistic view of the problem can be takenby considering the views from All the departments All members know the problems and come prepared for the meeting Therefore faster decision making Faster decision makingreaction time to the market quicker All data/documents consolidated Leads to more informal communication and bonding
GROUPS
VIRTUAL TEAMS
People working across geographical and time distances on one project Have little or no face-to-face interaction Rely extensively on technology for communication Technology can be Synchronous (audio/video conferencing) or can be Asynchronous (emails, web pages) Teams are driven by need for information and skills Howeverbecause the team members do not see each otherteam spirit May be missing Also assessing the performance and rewards is difficult in these teams
GROUPS
VIRTUAL TEAMS
GROUPS
VIRTUAL TEAMS
SORT OUT THE CULTURE ISSUES AMONG TEAM MEMBERS ENSURE THAT THERE IS CULTURAL EMPATHY ENSURE THAT EVERYBODY SPEAKS A COMMON LANGUAGE (FREE OF JARGON!) ENSURE THAT EVERYBODY HAS COMPARABLE IT SKILLS ENSURE THAT EVERYBODY HAS ACCESS TO SIMILAR TECHNOLOGY
GROUPS
TEAMS
GROUP LEADERSHIP
GROUPS
Collaboration
The leader must understand how to improve the interpersonal interaction among The team members Collocation of the team members Task interdependency Establish the intragroup processes such as reporting structures, reporting work Status, discussing problems, proposing solutions
GROUPS
Team Building
Employees relate to the team only when they see tangible benefits (ease of Doing worksharing responsibility) The purpose of the team must be defined explicitly at the beginning Team building involves rapid exchange of knowledgehence ensure free Flow of communication (formal and informal) Involve the team members in the goal setting process The team norms such as how the decisions are madereporting structures Performance expectations from each of the members is clearly defined at the outset This brings in accountability Interdependent tasks among team members also bonds the people
GROUPS
Group Leadership
Leaders should carefully select the team members mapping the task on hand With the competencies (technical, and emotional) of the team members Flatten the team in the real sense by having minimal differences in the perks And privileges Dont use titles when addressing peopleespecially in groups & meetings No special offices for group heads
GROUPS
Help the team members overcome culture stereotypes! Cultural empathy among the team members
GROUPS
Individuals tend to form groups that go beyond the formal lines of authority Common attitudes, common values, and physical collocation of the team members May be some of the reasons why Informal groups are formed in the organization Social interactions are the primary drivers to form informal groups Unlike the formal groups that are formed on the basis of Jobsinformal groups are formed on the basis of roles
GROUPS
Roles are a pattern of norms Normsare rules that guide the behavior and activities of the group Based on the normsindividuals assume different roles in the group
GROUPS
The group will have a distinct identity Central values and the goals of the group will always be upheld Group will come together to solve interpersonal problems and resolve conflicts
GROUPS
Examples of Roles can be Contributor Has good technical knowledge Extremely dependable Pushes the team to set high performance goals POP QUIZ: Going back to Big 5 personality typeswhat kind of people do you Think can be good Contributors to the team Conscientious people!
GROUPS
Examples of Roles can be Collaborator Focuses on the big picture Tries to remind the others of the vision, mission, and goal of the team Open to new ideas Share the limelight with the team members
GROUPS
Examples of Roles can be Communicator Effective listener Resolves conflicts among the team members Builds a congenial, friendly environment in which the team can work
GROUPS
Examples of Roles can be Challenger Plays the Devils Advocate Questions team members goals, methods, ethics Might even disagree with the leader Takes calculated risks
GROUPS
FORMAL VERSUS THE INFORMAL ORGANIZATIONS
DIMENSION
FORMAL ORGANIZATION
INFORMAL ORGANIZATION
Planned; rational (have predetermined goals) Jobs determine relationship between people Achieving profitability; service to the society; however the employees also need to be satisfied Influence is through Authority; TopBottom flow Control exercised through policies, procedures (can be minimal or maximum) Communication flows through formal channels; slow but accurate
Spontaneous; outcome of peoples emotions Roles determine relationship between people Satisfaction of the members
INFLUENCE
Influence is through Power; BottomTop flow Control exercised through team norms Grapevine communication through informal channels; fast but not accurate
CONTROL
COMMUNICATION
GROUPS
FORMAL VERSUS THE INFORMAL ORGANIZATIONS
DIMENSION
FORMAL ORGANIZATION
INFORMAL ORGANIZATION
MEMBERSHIP
Includes all individuals belonging to that unit (organization/ division/ project) Formally appointed Loyalty
GROUPS
Family Groups : Has a coterie of regular members who decide the group norms And influence the behavior of members who join the group Organized Groups: Has acknowledged leaders who are dedicated to the group and Apply their skills and knowledge Horizontal Informal Groups: informal association of employees of similar rank to Perform similar activity Vertical Informal Groups: Informal association of employees from varied levels of the organization
GROUPS DIFFICULTIES WITH INFORMAL ORGANIZATIONS Resistance to Change : members want to maintain status-quo when confronted With change Role Conflict : conflicting requirements between his employer and groups Requirements Rumor: Informal groups provide ample scope for informal (grapevine) communication; These may emotionally disturb some of the members Conformity : members are bound by group norms, reward structures, and are Expected to demonstrate certain behaviorthe informal group in a way exerts Strong pressure on the members Can be emotionally disturbing and dysfunctional if the leader uses these bonds to Gain personal mileage
GROUPS ADVANTAGES OF INFORMAL ORGANIZATIONS Complements the formal organization structure by : Informal relations among coworkers break the restrictions of the organizations Bureaucracyproblems can be solved effectively Informal groups are committed workershence minimal supervision is required To monitor their performancereduces the workload of the line management Provide a sense of identity to the members Managers can use the grapevine communication channels to pass on communiqu Informal groups provide emotional outlets for people with problems at the work settings
First originated in Japan in 1952Lockheed Martin was the first company in the US to implement Quality Circles
Quality circles is a group of employees who meet regularly to solve problems on the job Employees are trained in problem solving techniques The leader of the quality circle may be an employee or a supervisor Problems may either be identified by individuals or groups As the employees themselves develop solutions to the problemsthere is less resistance to change In most of the organizations, QCs have been implemented as a part of the employee participation ProgramHence they lead to better communication in the organization, greater morale of the Employees which in turn translates to Higher Productivityand better Quality of Work Life
CO
Steering committee
F Facilitator
NM M NM
NM NM
DC
M F
DC
NM M
NM
Non Members: groups of employees who are not involved with The quality circle Member: Employees at the bottom of the organization ladder, who Volunteer to be a part of the organizations quality initiatives Leader/ Dy. Leader: First line supervisor/ immediate supervisor of The employeesmay be assigned on a rotational basis Facilitator: A senior person from the departmentacts as a mentor Departmental Committee: Usually comprises of Middle level Management, and heads of individual departments Steering Committee: Usually comprises of senior personnel heading The divisions with CEO as the Chair
CO- Coordinator SC Steering Committee DC Departmental Committee F Facilitator DL Deputy Leader L Leader M- Member NM Non Member
Coordinator/ Coordinating Department: Can be any department such as HRD or Quality Assurance department that would support the Activities of the quality circleAdvisory in nature
PLANNING QUALITY HOW DO QUALITY CIRCLES WORK PROBLEMS IDENTIFIED AND CLASSIFIED MOST CRUCIAL PROBLEM SELECTED (PARETO ANALYSIS)
PLANNING QUALITY HOW DO QUALITY CIRCLES WORK PROBLEMS IDENTIFIED AND CLASSIFIED MOST CRUCIAL PROBLEM SELECTED (PARETO ANALYSIS) THE MEMBERS MEET FOR THE FIRST TIME MEMBERS MAY CHOSE THEIR LEADER BY CONSENSUS OBJECTIVE OF THE STUDY/ PROJECT THE LEADER THEN TALKS TO THE MEMBERS AS TO HOW WOULD THEY BRAINSTORM TO IDENTIFY PROBLEMS
PLANNING QUALITY HOW DO QUALITY CIRCLES WORK PROBLEMS IDENTIFIED AND CLASSIFIED MOST CRUCIAL PROBLEM SELECTED (PARETO ANALYSIS) MOST IMPORTANT PROBLEMS ON HAND IDENTIFIED PEOPLE WHO HAVE WORKED MOST ON THAT PROCESS/ JOB CONSULTED SOME OF THE QUESTIONS CAN BE OBJECTIVE OF THE STUDY/ PROJECT WHICH ARE THE MOST PROBLEMATIC JOBS WHICH ARE THE PROCESSES THAT CAN BE COMBINED WHERE CAN WE REDUCE RESOURCESCOSTS
PLANNING QUALITY HOW DO QUALITY CIRCLES WORK PROBLEMS IDENTIFIED AND CLASSIFIED MOST CRUCIAL PROBLEM SELECTED (PARETO ANALYSIS)
QUALITY TEAM MEMBERS ASSIGN PRIORITY TO PROBLEMS BASED ON ABOVE CLASSIFICATION PROBLEMS THAT CAN BE SOLVED RELATIVELY EASILY TAKEN UP FIRST SO THAT IT BOOSTS THE CONFIDENCE OF MEMBERS
PLANNING QUALITY HOW DO QUALITY CIRCLES WORK PROBLEMS IDENTIFIED AND CLASSIFIED MOST CRUCIAL PROBLEM SELECTED (PARETO ANALYSIS)
ALL THE INFORMATION RELATED TO THE PROBLEM GATHERED FROM ACROSS THE ORGANIZATION
PLANNING QUALITY HOW DO QUALITY CIRCLES WORK PROBLEMS IDENTIFIED AND CLASSIFIED MOST CRUCIAL PROBLEM SELECTED (PARETO ANALYSIS)
ALL FACTORS LEADING TO PROBLEMS ARE AGAIN REVIEWED USING BRAIN STORMING EXPERTS MAY BE CALLED IN AT THIS STAGE TO OBJECTIVELY ANALYZE THE PROBLEM
IN ONE MACHINE OF ASSEMBLY LINE THE MAINTENANCE ENGINEER MAY BE CALLED IN CAUSE & EFFECT ANALYSIS MOSTLY USED
PLANNING QUALITY HOW DO QUALITY CIRCLES WORK PROBLEMS IDENTIFIED AND CLASSIFIED MOST CRUCIAL PROBLEM SELECTED (PARETO ANALYSIS)
THE SOLUTIONS TO THE PROBLEMS ARE IDENTIFIED USUALLY IN A WORKSHOP SETTING THE FEASIBILITY OF THE SOLUTION IS DECIDED UPON QC MEMBERS MAY INITIALLY TRY OUT THE SOLUTIONS IN THEIR OWN JOBS MAJOR DECISIONS ARE USUALLY DELIBERATED UPON BY A STEERING COMMITTEE
PLANNING QUALITY HOW DO QUALITY CIRCLES WORK PROBLEMS IDENTIFIED AND CLASSIFIED MOST CRUCIAL PROBLEM SELECTED (PARETO ANALYSIS) THE SOLUTIONS ARE IMMEDIATELY IMPLEMENTED IF THEY ARE WITHIN THE PURVIEW OF THE QUALITY CIRCLE MEMBER OTHERWISE IT IS RECOMMENDED TO A HIGHER AUTHORITY AND IMPLEMENTED THROUGH A FACILITATOR THE BENEFITS OBTAINED OUT OF THE EXERCISE ARE LISTED IN QUANTIFIABLE TERMS QUALITATIVE BENEFITS SUCH AS CHANGE IN ATTITUDES BETTER COMMUNICATION ALSO HIGHLIGHTED
DECISION MAKING IS ALL ABOUT CHOSING A COURSE OF ACTION FROM AMONG ALTERNATIVES
PROGRAMMED DECISIONS: ROUTINE OR MINOR DECISIONS THAT HAVE TO BE TAKENMADE ACCORDING TO THE UNWRITTEN/ WRITTEN POLICIESPROCEDURES AND RULES! Example: Reordering of raw material by the stores manager NON PROGRAMMED DECISIONS: DEAL WITH UNUSUAL OR EXCEPTIONAL PROBLEMS Example: Loss of customer confidence in 20 yearshandling a failing product line
DEVELOP ALTERNATIVES
DEVELOP ALTERNATIVES
DEVELOP ALTERNATIVES
USE JUDGMENT, EXPERIENCE OF TEAM MEMBERS; BEST PRACTICES OF OTHER ORGANIZATIONS TO DEVELOP ALTERNATIVES
IMPLEMENT AND MONITOR EVALUATE THE ALTERNATIVES AND SELECT THE BEST ONE
DEVELOP ALTERNATIVES
IS THE ALTERNATIVE TECHNICALLY & FINANCIALLY FEASIBLE? WHAT COULD BE THE PROBABILITY OF SUCCESS? WHAT WOULD BE ITS IMPACT ON IMPLEMENT THE ENTIRE ORGANIZATION? AND
MONITOR EVALUATE THE ALTERNATIVES AND SELECT THE BEST ONE
DEVELOP ALTERNATIVES
WHAT IS IT???
More than one way and a better way of solving the problem Increased member satisfaction as involved in the decision making process Higher acceptability of the final decision
Brainstorming Free-wheeling of ideas Encourages creativity The more radical an ideathe better! No idea is criticized or judged until all the ideas have been generated Participants are encouraged to suggest as to how their ideas can be improved
Nominal group technique Each person writes down the ideasoptionsor solutions privately The solutions obtained here are passed around the group in the round-robin fashion All the participants again write their solutions After all the ideas are suggestedthe members are shown the solutionsthe members may Now seek clarifications about the proposals Each member again rank orders the proposals The solutions that receive maximum support are accepted
Delphi Technique A series of questionnaires is given to the members who are a part of the decision making panel The first questionnaire presents the problemsasks the members to suggest solutions The decision coordinator then summarizes the solutions This is sent back to the membersthe process is repeated until that a consensus is arrived
Devils advocacy method An individual is given the role of a critic who questions the decisions being made This helps the group to identify potential pitfalls before hand
Dialectical Inquiry The group of people debating over 2 opposing recommendations Very similar to making decisions using Majority rule However, efforts should be made to make the decision under consensus WINWIN rather than WINLOSE
Example: You are faced with a typical problem on your job. You are sure that someone Among the 50,000 people working in your organization will have an answer. You can use a GDSS that will retrieve for you employees who are experts in that Area, and all the internal documents related to that problem You can then collaborate/ discuss with these experts using videoconferencing!
AN INHERENT PROBLEM WITH THE GROUP DECISION MAKING TECHNIQUE IS THAT THEY TAKE A LONG TIME TO REACH THE SOLUTION SOWHATS THE ANSWER TO THIS PROBLEM?
A POWERFUL LEADER WHO CAN SET THE DIRECTION IN THE INITIAL STAGES OF THE PROJECTAND FACILITATE THE DECISION MAKING PROCESS PROBLEMS MAY ARISE WHEN THERE IS MORE THAN ONE POWERFUL LEADER (INFORMAL & FORMAL LEADER) IN THE GROUP
ANOTHER SERIOUS PROBLEM IS GROUPTHINK MEMBERS TRY TO MINIMIZE CONFLICTS AMONG EACH OTHER BY NOT CRITICALLY ANALYZING THE PROBLEM OR EVALUATING THE ALTERNATIVES THIS THEY DO TO AVOID RESPONSIBILITY AND EMBARASSMENT!
ORGANIZATIONS TYPICALLY USE A COMBINATION OF THESE DECISION MAKING TECHNIQUESRATIONAL DECISION MAKING MODEL AND BOUNDED RATIONAL DECISION MAKING MODEL ARE POPULAR!
PERCEPTION
Gather all the information related to the problem Diagnose the causes for the problem
Assess the impact of the various alternatives How will you measure the success/ failure of the decision
PERCEPTION
PERCEPTION
AND THEREFORE WE TALK ABOUT BOUNDED RATIONAL DECISION MODEL BOUNDED RATIONAL DECISION MAKING MODEL IS A SCALED DOWN VERSION OF RATIONAL DECISION MAKING MODEL
PERCEPTION
BOUNDED RATIONALITY The problem is identified Previously tried and tested solutions to these problems are identifiedand solutions close to the previously tested solutions are considered When selecting the appropriate alternativeonly the alternatives that are closest to the previously tried solution are considered The most appropriate solution is then selected, implemented, and the performance assessed
EMOTIONAL INTELLIGENCE
Emotion is a mental state that arises Spontaneously rather than through Conscious effort and is often Accompanied by physiological changes Eg. You CRY when you are SAD
EMOTIONAL INTELLIGENCE
Emotions are all about how a person feels about something or someone! Typically, emotions are reactions to an object You get angry when a colleague picks up an argument with you
EMOTIONAL INTELLIGENCE
Emotional intelligence: The ability to monitor ones own and others feelings and emotions, to discriminate among them and to use this information to guide ones thinking and actions
EMOTIONAL INTELLIGENCE
Emotional intelligence: also defined as The capacity for recognizing our own feeling and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships
EMOTIONAL INTELLIGENCE There can be different types of emotions that you will exhibit on the job
EMOTION Love/ Affection Happiness/ Joy Surprise DESCRIPTOR Acceptance, adoration, devotion, infatuation Cheerful, delighted, euphoria, zest Shocked, amazed, astonished EXAMPLE You LOVE your work You feel HAPPY when your boss recognizes your hard work You are pleasantly SURPRISED when you get a promotion within first 2 months of joining work You FEAR for your job when you hear that the firm is downsizing You feel SAD when you do loads of hard work with no recognition You are ANGRY because you got passed over for promotion by your colleague! You are disgusted with the FAVORATISM shown by your boss in the department You are EMBARASSED when you get praised for the work that you didnt really deserve
Dread, terror, apprehension Sorrow, gloom, despair, dejection Outrage, indignation, hostility
Disgust
Shame
EMOTIONAL INTELLIGENCE
An emotionally intelligent person is someone who judiciously uses these emotions to succeed at work! Goleman gave5 dimensions of Emotional Intelligence
EMOTIONAL INTELLIGENCE There can be different types of emotions that you will exhibit on the job
Characteristics
Workplace example
You come to know that one of your colleagues at work had made a very nasty remark about you. You are angry. YOU KNOW THAT YOU ARE ANGRY. So, you cool down a bit and gather more information about the incident before you make a decision You know that you are angry!
SELF MANAGEMENT
Handle ones emotions to facilitate rather than hinder the task on hand
A customer makes a very unreasonable demand. You are absolutely livid. However, YOU CONTROL YOUR TEMPER and try to understand what is it that the customer really wants You know that you are angryYou also know that the other person will lose his temper if you also do so!
EMOTIONAL INTELLIGENCE There can be different types of emotions that you will exhibit on the job
Emotional Intelligence Dimension SELF MOTIVATION Characteristics Workplace example
Stay on course towards the goal; try until you achieve the desired outcomes
You are a project manager. The senior management did not adequately support you in terms of giving you resources or people. YOU MOTIVATED YOURSELF to successfully complete the project You are a project manager in the middle of a highly stressful project. You EMPATHIZE with your team members who have been working very hard to meet the deadline. Therefore, you decide to take them out for a lunch You came up with a potential business opportunity for your company. The senior management however were not very enthusiastic about the idea. You use your SOCIAL SKILLS and COMMUNICATION SKILLS to tell them the potential benefits of this venture
EMPATHY
SOCIAL SKILLS
COMPANY MEMO: ALL THE EMPLOYEES WILL GET ONLY ONE GLASS OF WINE AT THIS ANNUAL MEET EVERYBODY NEEDS TO GET THEIR OWN GLASS
What is Communication?
The process by which information is exchanged between a sender and a receiver. Interpersonal communication involves the exchange of information between people. Effective communication occurs when the right people receive the right information in a timely manner.
COMMUNICATION
ORGANIZATIONAL COMMUNICATION IS THE PROCESS OF FLOW (BOTH TRANSMISSION AND RECEPTION) OF GOAL ORIENTED MESSAGES BETWEEN SOURCES IN A SET PATTERN AND THROUGH A MEDIUM OR MEDIA
Your Project Manager gives you your performance appraisal report using the Organizations template at the end of every quarter; The same report is sent to the senior management as well
Set pattern: standard template; every quarter
COMMUNICATION
GOALS OF COMMUNICATION
1. 2. 3. 4. 5. 6. 7. 8. 9. INFORMATION SHARING FEEDBACK CONTROL INFLUENCE PROBLEM-SOLVING DECISION-MAKING FACILITATING CHANGE GROUP BUILDING GATE KEEPING
COMMUNICATION
GOALS OF COMMUNICATION
1. INFORMATION SHARING
Urgent need to diffuse important information pertaining to processes, organization changes, reward schemes, changes in rules and regulations, organizational plans Examples : Newsletters
2.
FEEDBACK
Feedback on performance to the employeesdepartmentssenior management (in terms of strategic objectives being met) Feedback helps to develop the reward/ punishment system in the organization Feedback motivates people; especially for individuals who have achievement motives Example: Performance Appraisal Report
Using of Databanks/ MIS that has organization specific information Control is collection & collation of Informationand using that information to measure the performance Example: Group Decision Support Systems; Intranet
4.
INFLUENCE
Free exchange of communication creates a congenial environment for people to workteam spirit will be high Also used in negotiations to secure resources or to get the work done Example: Informal talk on the job and outside high team spirit Group meetings, web conferences better knowledge about the objectives; work to be done
Decision making is one of the major objectives of communication Decisions are made only on the basis of information that is availableand the information that flows between the employees during discussions/ negotiations Example: Status reports project is over budget by 200% : GO/ NO GO decision 8. CLARITY
Effective communicationchoosing the right communication medium and the channel increases the clarity of the messagefacilitates implementation of change Example: Downsizing the employees call a company wide meeting addressed by the CEOexplaining the reasonsrepercussionsand all the information related to the exercise Gives the employees a clarity about the impact of downsizingassuages uncertainty
COMMUNICATION
GOALS OF COMMUNICATION
9. GATE KEEPING (in this context INTERFACE)
Links the organization with the outside worldinfluences the clientsgovernment and other stakeholders Example: The companys annual reportsperception of the companys health by government, investors, and other stakeholders such as employees
COMMUNICATION
COMMUNICATION MODEL
COMMUNICATION
1. Chooses a message
Sender
Receiver
5. Provides feedback
COMMUNICATION
HOW MANY OF YOU HAVE APPLIED FOR A POSITION BEFORE JOINING IBS??? OR HOW DID YOU ACTUALLY APPLY TO IBS??? Was it a paper application/ Online application? How were the results communicated to you? Formal Letter or email Who sent you the letter from IBS?
COMMUNICATION
1
THE SOURCE INITIATES THE COMMUNICATION BY ENCODING THE MESSAGE
2
MESSAGE
What is To be communicated
THIS CLASS WOULD HAVE BEEN VERY DIFFERENT IF I WERE TO TEACH ACCOUNTING (NATURE) IN FRENCH (CODING) ONLINE (CHANNEL) IF YOU ARE FIRST 4 DECODING How the receiver Interprets the LINE SUPERVISOR message YOUR CEO WILL COMMUNICATE TO YOU THROUGH THE ANNUAL Skills; Knowledge; NEWS LETTERIF YOU ARE A Attitudes; SocioVP, YOU ARE MORE LIKELY Cultural environment TO GET AN EMAIL The sender checks ho Successful has been communication
Nature of Communication (good news/ bad news) Urgent/ Not urgent; Legal/ informal
COMMUNICATION
BARRIERS TO COMMUNICATION
COMMUNICATION
BARRIERS TO COMMUNICATION
Filtering Sender manipulates the information so that it will be seen more Favourably by the receiver Typically happens as reports are written by employees at a lower level
Report largely influenced by the employees personal interests and knowledge/ Skills More common in large organizations More common among individuals who want to grow Example: Window Dressing of the Balance Sheet
COMMUNICATION
BARRIERS TO COMMUNICATION
Selective Perception The receivers perceive the message based on their background, motivation, Experience, personal characteristics Receivers also protect their own interests when they decode the Communication .they see only what they want to see!
COMMUNICATION
BARRIERS TO COMMUNICATION Information Overload Individuals have finite capacity to absorb, and understand information
Typical example can be managing emails, phone calls, faxes, Technical reports People typically select only that information that they think is important, Absolutely not important, can pass it over to someone, or simply forget! Consequentlyinformation is lost!
COMMUNICATION
BARRIERS TO COMMUNICATION
People block the stimuli or information that is against their value system/ Preference People may become defensive, make sarcastic remarks, become overtly Judgmental, or question the senders motives
COMMUNICATION
BARRIERS TO COMMUNICATION
Language Age, education and cultural background influence the language that we use Employees in an organization come from different backgrounds They may be grouped in specific departments based on their expertise Thus, they develop their own language Jargon
COMMUNICATION
TYPES OF COMMUNICATION BASED ON DIRECTION OF COMMUNICATION Downward Communication Communication flowing from one level of a group to a lower level
Examples can be group leaders assigning goals, giving job instructions, Information about policies, feedback on performance Upward Communication Flows from one level of a group to a higher level
Examples can be giving out status reports, knowledge of current problems With respect to machines, processes, or people Lateral Communication Communication among peers Can be formal (Quality Circles) or Informal (grapevine) Bypass the organizations hierarchy and faster decision making
COMMUNICATION
TYPES OF COMMUNICATION BASED ON THE COMMUNICATION CHANNELS: FORMAL AND INFORMAL NETWORKS Formal Group Networks Communication flows through a strict hierarchy CHAIN
Example: Issuing a circular to the staffcomes from the Head Office, signed By the HRD Manager, C.c to the Chairman, comes to the division heads, then To the Branch Managers, and then to the employees! Leader acts as a central conduit/ facilitator for all groups communication WHEEL Example : The role of facilitator in Delphi techniqueall information is routed back To him The team members exchange information freely ALL CHANNEL Self Managing Groups with no strong leadercommunicate well with each other
COMMUNICATION
NETWORKS
CRITERIA
CHAIN
WHEEL
SPEED ACCURACY
MODERATE HIGH
FAST HIGH
Communicating a Policy
MODERATE
An experienced foreman Who earns respect From the workers
MODERATE
HIGH
NONE
MODERATE
LOW
HIGH
Degree of Participation
COMMUNICATION
TYPES OF COMMUNICATION BASED ON THE COMMUNICATION CHANNELS: FORMAL AND INFORMAL NETWORKS Informal NetworkGRAPEVINE COMMUNICATION Has 3 essential features: Not controlled by Management Perceived by the employees as more reliable than formal communication that comes from management Serves the self interests of the people using it rather than the organizations objectives
Choosing Channels
Channels differ in their capacity to convey information. Rich channels have the ability to Handle multiple cues simultaneously Ability to give feedback (immediate), and non verbal cues Be very personal
Choosing Channels
Which of these do you thinkrank high in terms of channel richness
BROCHURES LETTERS FACETOFACE MEETINGS TELEPHONE CONVERSATION VIDEO EMAIL MESSAGES VIDEO CONFERENCE EMAIL MESSAGES
7 6 1 3 4 2 5
FORMAL
Prerecorded speeches
Live speeches
Videoconferences
Memos, letters
Electronic mail
Voice mail
Telephone conversations
Face-to-face conversation
INFORMAL
Nonverbal Communication
Messages conveyed through body movements, facial expressions, and the physical distance between the sender and the receiver Kinesics The study of body motions, such as gestures, facial configurations, and other movements of the body Proxemics The study of physical space in interpersonal relationships
On basis of Space
Intimate Zone : upto 1.5 feet. It Includes only special persons. persons.
It is the non-verbal behavior related to movement of body. nonIt is one of the most obvious non-verbal communication form. non-
DEFENSIVE
Clenched hands Maintaining or increasing distance Arms and legs tightly crossed Minimum eye contact Looking away an down 15/23
Nonverbal Communication
Visual Symbols: Symbols:
COMMUNICATION
A MARRIED COUPLE ARE DRIVING IN A CAR WHEN THE WIFE TURNS TO HER HUSBAND WOULD YOU LIKE TO STOP FOR A COFFEE? WHAT DOES SHE MEAN.WANTS TO START A CONVERSATION HOW DOES THE HUSBAND INTERPRET THISSHE WANTS TO HAVE A COFFEE AS IN COFFEE AS IN COFFEE.!!!
MEN Men talk to emphasize status Conversation is a way of making their pointmore of a contest! Men talk to emphasize Independence; Asserting their need for distinction MEN COMPLAIN THAT WOMEN TALK A LOT ABOUT THEIR PROBLEMS! Men hear a problem assert their desire for independence/ dominance by giving advice Men more direct in their conversation I think you are wrong on that point
Women talk to emphasize intimacy, to connect Asserting their need for affinity, closeness WOMEN COMPLAIN THAT MEN DO NOT LISTEN Women tell a problem- build closeness, gain support Women are more subtle Have you considered looking at the status report
MEN To menTalk equals INFORMATIONMen do listen intently but do not reactwhen asked to do so! Wife saysLets park the car over there Husband perceives that as a command
WOMEN Women look at Talk as a way of Expressing their Feelings Wife is merely suggesting that they park their car someplace safe
COMMUNICATION
HOW DOES IT WORK IN BUSINESS! TALKATIVE PEOPLE WILL BE SEEN AS DOMINANT AND CONTROLLING ALSO SEEN AS GOOD LEADERS IN BUSINESSMEN ARE MOST LIKED WHEN THEY ARE DECISIVE, ASSERTIVE, AND INTELLECTUAL WOMEN MAY DEMONSTRATE EACH OF THESE QUALITIESHOWEVER THEY WILL BE ESPECIALLY RESPECTED WHEN THEY DISPLAY WARMTH, AND INTERPERSONAL COMMUNICATION (SUBTLE) WOMEN TEND TO USE LESS POWERFUL LANGUAGE (READ LESS DIRECT) THAN MEN WOMEN TEND TO USE MORE NON VERBAL COMMUNICATION THAN MEN
COMMUNICATION
CROSS CULTURAL COMMUNICATION Culture Barriers when communicating with people from different cultures can be Barriers caused by Semantics Words such as EfficiencyFree MarketRegulationcan not be translated directly Into Russian! Barriers caused by Connotations The Japanese word Hai meansYesbut its real meaning isYes, I am listening Rather than being Yes, I agree Barriers caused by tone differences In some cultures like the USthe tone and the expression are casual In some cultures like Indiathe toneand especially the writing style is very formal
COMMUNICATION
HIGH CONTEXT CULTURES China, Vietnam, Saudi Arabia A persons official status, place in the society, and reputation influence the way Others will interpret the information What is not said is more important than what is said Rely on Non verbal communication and subtle cues People look at communication to build trust and long term relationshipseven if They are talking for the first time!
COMMUNICATION
LOW CONTEXT CULTURES North America and Europe Rely more on the words to communicate message Writing should be precisehighly legalistic Theres nothing likeI give you my word!
COMMUNICATION
Communicating effectively across cultures Assume differences until similarities are proven Emphasize description rather than interpretation or evaluation
Observe the culture and the backgroundtry and look Between the wordsrather than at the person or situation Delay your judgment until then Practice empathy
Understand what is the other persons backgroundvaluesexperiences Educational backgroundupbringing Refine your understanding of the others culture constantly
Observe how the other person is reacting to your understanding of his culture Take some feedback from someone who is from that same culture
COMMUNICATION
SMILE GRIN FROWN WINK REALLY SAD FACE DISAPPOINTED SCREAM YELL SHOCK/ SURPRISE CRYING
LEADERSHIP
Leadership
The master statesman stood alone against fascism and renewed the world's faith in the superiority of democracy.
Winston Churchill
Leadership
He led a mass struggle for racial equality that doomed segregation and changed America forever. Martin Luther King
Leadership
His philosophy of
nonviolence and his passion for independence began a drive for freedom that doomed colonialism. Mohandas Gandhi
Leadership
Champion of free minds and markets, she helped topple the welfare state and make the world safer for capitalism. Margaret Thatcher
Leadership Defined..
Interpersonal influence exerted in a situationand directed through the communication system towards the attainment of specific goals
Call for Complete Freedommass ralliesto achieve an Independent Nation -Mahatma Gandhi as a Leader
Leadership Defined..
Meeting the clients requirementscoordinating resources (money, people, time) to successfully complete the project Project Manager as a Leader
Leadership Defined..
Leadership is fundamentally about transforming behaviorsmoulding attitudes of other individuals in formal or informal situations to get the work done!
Behavior Approach
held sway until late 1960's - effects of leadership on those led, way in which functions of leadership carried out & the behaviour adopted by managers towards subordinates
Contingency Approach or Situational Approach popular to 1980s - situational factors are focus for understanding leadership,
Belief that no single style of leadership appropriate to all situations, studies interaction between leadership variables and patterns of behaviour
Leader Produc Leader situatio How re incomp Give th are exp Give th
1980s, leader seen as one who defines organizational reality through articulation of a vision - which is a reflection of leaders definition of organizations mission and values which support it
Leadership Defined..
Innovate/ AdministerDevelop/ Maintain Coming up with innovative non financial rewards to motivate the team members/ implement the new scheme to ensure that team members remain motivated
Ask What & Why/ Ask When & How Why change is important for the organization and what are the key people, resource, leadership issues to be addressed/ When are we going to implement the changes and how will we do it
Typically do away with non essential activities of the project to beat the time line (unfortunatelyin case of IT projectstesting is often not done when time is limited)
We want to be the number ONE B SCHOOL in the country in Five Years timewe will do this even if it means revamping our organization structure and procedures/ We will continue to maintain the same quality of education
We have less than 3 weeks to deliver the project to the clientwe will have to reduce the scope of the project by doing away with third round of testing of the product/ We need to do the three rounds of testing as per the contract with the client
THE ANSWER IS
BOTH!!!
Leadership Schools
Leadership Schools
Efforts to isolate TRAITS of a good leader go way back to the 1930s Efforts were focused on identifying TRAITS that discriminated Leaders and Followers Efforts were also focused on identifying TRAITS that discriminated Effective and Ineffective leaders Some traits that were consistently associated with Leaders were identified
Leadership Schools
AMBITION ENERGY DESIRE TO LEAD HONESTY INTEGRITY SELF CONFIDENCE INTELLIGENCE TECHNICAL (JOB RELEVANT) KNOWLEDGE Indra K Nooyi (PEPSICO) Forbes Top 10 most influential Women
Leadership Schools
Leaders are also someone who HIGH SELF MOTIVATORS ADJUST THEIR BEHAVIOR TO DIFFERENT SITUATIONS
IF YOU ARE A PROJECT MANAGERSHOULD YOU BE CHANGING YOUR LEADERSHIP STYLE AS THE PROJECT PROGRESSES.
YES!
Leadership Schools
Traits theory though has some limitations No universal traits that will predict leadership in all situations Leadership Traits were visible only in cases where there were no proper Procedures, no strong rewards for positive behavior (and punishments for negative Behavior) The causeeffect is not clear. SELF CONFIDENCE LEADING TO SUCCESS OR SUCCESS LEADING TO SELF CONFIDENCE Traits are not the only factor that will ensure achievement of goals!
Leadership Schools
YOU DONT HAVE TO LOOK LIKE A LEADEROR PERHAPS BE BORN LIKE ONE! AS THE TRAITS THEORY SUGGESTS
Leadership Schools
BEHAVIORAL SCHOOL OF LEADERSHIP focused on the questionDO LEADERS BEHAVE DIFFERENTLY! Based on the assumption that Leadership can be taught!
Behavioral Theories
Successful leadership is based in definable, learnable behavior. Focus on what leaders actually do. Four Theories The Ohio State Studies The University of Michigan Studies Managerial Grid Scandinavian Studies
Behavioral Theories
Ohio State Studies
Research conducted at Ohio State University in the 1940s Identified 2 categories of Leader Behaviors INITIATING STRUCTURE
EXTENT TO WHICH THE LEADER EMPHASISES ON HIS ROLE AND THOSE OF THE EMPLOYEES IN ORDER TO ACHIEVE GOALS LEADER WHO IS HIGH ON INITIATING STRUCTURE WILL ASSIGN PARTICULAR TASKS TO GROUP MEMBERS; LAYS DOWN SPECIFIC PERFORMANCE EXPECTATIONS, AND INSISTS ON MEETING DEADLINES
Behavioral Theories
Ohio State Studies
CONSIDERATION
EXTENT TO WHICH A PERSON IS LIKELY TO MAINTAIN JOB RELATIONSHIPS THAT HAVE MUTUAL TRUST, RESPECT, EMPATHY A LEADER HIGH ON CONSIDERATION IS FRIENDLYAPPROACHABLEHELPS EMPLOYEES WITH PERSONAL PROBLEMS THOUGH A LEADER WHO SCORES HIGH ON BOTH INITIATING STRUCTURE AND CONSIDERATIONMAY ENSURE GOOD INDIVIDUAL PERFORMANCE AND JOB SATISFACTIONOVERALL OUTCOMES MAY NOT ALWAYS BE POSITIVE
Manager Manager Manager makes `sells presents decision decision ideas and and invites announces questions it
Manager Manager Manager Manager presents presents defines permits tentative problem limits; asks subordinates decision gets group to to function subject to suggestions make within limits change makes decision defined by decision superior
Behavioral Theories
University of Michigan Studies
Were conducted at about the same time as during Ohio studies 2 dimensions of leader behavior were identified EMPLOYEE ORIENTED
EMPHASIS ON INTERPERSONAL RELATIONSHIPS TOOK SPECIAL INTERESTS IN THE NEEDS OF THE EMPLOYEES ACCEPTED INDIVIDUAL DIFFERENCES AMONG TEAM MEMBERS
Behavioral Theories
University of Michigan Studies
PRODUCTION ORIENTED
EMPHASIS ON TECHNICAL OR TASK ASPECTS OF THE JOB
STUDIES CONCLUDED THAT EMPLOYEE ORIENTED LEADERS TEND TO EXTRACT MORE PRODUCTIVITY FROM THE EMPLOYEES AND HIGHER JOB SATISFACTION
Behavioral Theories
Managerial Grid Theory By Robert Blake & Jane Mouton "concern for people" vs. "concern for production 9 x 9 Grid 5 leadership styles
Behavioral Theories
Scandinavian Studies
Development Oriented Behavior Development Oriented leaders considered more competitive. Leaders seek new ideas and are capable of leading change The previous studies focused on leader behaviors that were exclusively task centric or people centric Scandinavian studies brought in a third dimension where the leader is capable of changing the status quo switching between the previous two approaches Precursor to contigency approach to leadership
Contingency Theories
No one best way of leading Leader's ability to lead is contingent upon various situational factors Five Contingency Models Fiedlers Contingency Model Hersey & Blanchards Situational Theory Leader Member Exchange Theory Leadership Participation Model Path Goal Theory
Contingency Theories
All of you have been working in groups. Was there a moment when you did not particularly like to work with a person What kind of a person was he or she
Contingency Theories
cheerful loyal relaxed sincere
YOU ARE A RELATIONSHIPORIENTED PERSONIF YOU BELIEVE MOST OF THESE QUALITIES ARE TRUE OF THE PERSONYOU LEAST ENJOYED WORKING WITH OTHERWISE YOU ARE A TASK ORIENTED PERSON
Contingency Theories
FIEDLERS CONTINGENCY MODEL The groups performance depends on
Match between Leaders style and the degree of control which the leader can exercise in the given situation
Proposed the LEAST PREFERRED COWORKER (LPC) QUESTIONNAIRE to identify Leadership Style
Contingency Theories
Prabhakar (2006)
Contingency Theories
FIEDLERS CONTINGENCY MODEL LPC asks the respondents to think of the individual THEY LEAST ENJOYED WORKING WITHand rate him on a scale of 18 against each of the adjectives
Contingency Theories
FIEDLERS CONTINGENCY MODEL If the Least Preferred Co-Worker is described relatively in positive A HIGH LPC SCORE; you are a sort of a person who values RELATIONSHIP with co-workers over TASK
Contingency Theories
FIEDLERS CONTINGENCY MODEL If the Least Preferred Co-Worker is described relatively in negative A LOW LPC SCORE; you are a sort of a person who values TASK with co-workers over RELATIONSHIP
Contingency Theories
FIEDLERS CONTINGENCY MODEL There may be some respondents who adopt a middle lineand therefore can not be classified either as task or relationship oriented
Contingency Theories
FIEDLERS CONTINGENCY MODEL A high LPC or low LPC leader can only be effective if their leadership style matches their situation
Contingency Theories
FIEDLERS CONTINGENCY MODEL
LEADERMEMBER RELATION Confidence & Trust which the members have in their leader
POSITION POWER degree of influence a leader has over power variables such as hiring, promotions, disciplines, firing
Contingency Theories
FIEDLERS CONTINGENCY MODEL
TEAM HAVING CONFIDENCE ON THE PROJECT MANAGER THE JOB EXPECTATIONS BEING DEFINED CLEARLY THE LEADER HAVING CONTROL OVER HIS TEAM FAVORABLE SITUATION TEAM DOES NOT TRUST THEIR PROJECT MANAGER JOB EXPECTATIONS ARE FUZZY THE LEADER CAN NOT CONTROL HIS TEAM UNFAVORABLE SITUATION
TASK ORIENTED LEADERS PERFORM BETTER IN BOTH THESE SITUATIONSFOR DIFFERENT REASONS
TASK ORIENTED
RELATIONSHIP ORIENTED
LOW PERFORMANCE
FAVOURABLE
MODERATE
UNFAVOURABLE
I
L-M
GOOD
II
GOOD HIGH
III
GOOD LOW
IV
GOOD LOW
V
POOR
VI
POOR
VII
POOR
VIII
POOR
TS
HIGH
HIGH STRONG
HIGH WEAK
LOW STRONG
LOW WEAK
STRONG
WEAK
STRONG
PP
WEAK
An experienced managerwho has gained the confidence of his Workers (GOOD LM)car manufacturing assembly line where the tasks are procedures (HIGH TS) and has the authority to recruit/ retrench people based on the task requirements
A group of senior scientists working togethervery little formal leadership and therefore Low LMresearch project & therefore HIGH TShave considerable autonomy to use the Research funding/granthiring of research associates
A highly task oriented mentorwho has been assigned a rookie(low LMas he Has just joined the organization and therefore the trust/ confidence are not there yet) Working on a project that involves developing a new product (information not available.. And therefore the task structures are not fully procedurized)is just a mentor..and therefore Does not have legitimate authority (weak PP)
Supporting leaders
CONSULT
Participating works best (followers are able to do the job but require emotional support)
SELL
Selling works best (followers are neither willing nor able to do the job)
JOIN
Delegating works best (followers)are willing to do the job, and know how to go about it)
TELL
Telling works best (followers are willing to do the job, but dont know how to do it)
Low (willing to do job) Low (able to do job) Task Behavior (amount of guidance required) High (unable to do job)
Polarizes the group based on the level of attention given to the people by the leader
IN GROUP people who are trustedget disproportionate amount of leaders attentionreceive special privileges
OUT GROUP receive less attentionless privileges (those controlled by leader)and have LeaderFollower relationship
Therefore, In group members perform betterare more satisfied on the joband have lesser turnover intent
17-18
Figure 17-8
In-group
E1
E2
E3
E4
E5
E2
E3 Out-group
E4
Dyadic Leadership
McGraw-Hill
DOES YOUR TASK DETERMINEWHETHER YOU ARE IN THE GROUP OR OUT OF ITOR IS IT ENTIRELY DEPENDENT ON THE LEADER
YES!
HAPPENS WHEN THE LEADER IS WORKING ON MULTIPLE PROJECTS YOU MAYBE A PART OF THE INGROUP FOR THE PROJECT YOU ARE WORKING ONWILL BE A PART OF THE OUTGROUPFOR A DIFFERENT PROJECT
PathGoal Theory
Proposes that Leaders job is to facilitate the followers achieve the goals
DIRECTIVE LEADER
SUPPORTIVE LEADER
PARTICIPATIVE LEADER
ACHIEVEMENTORIENTED LEADER
SETS CHALLENGING GOALS AND EXPECTS PEOPLE TO ACHIEVE THEM
PathGoal Theory
THE RELATION BETWEEN LEADERS BEHAVIOR AND THE PERFORMANCE OUTCOME IS ALSO MEDIATED (INFLUENCED) BY: FACTORS WHICH ARE BEYOND THE CONTROL OF THE EMPLOYEE FACTORS WHICH ARE WITHIN THE CONTROL OF THE EMPLOYEE
ENVIRONMENTAL FACTORS
TASK STRUCTURE; FORMAL AUTHORITY WORK GROUP
LEADER BEHAVIOR
DIRECTIVE PARTICIPATIVE ACHIEVEMENT ORIENTED SUPPORTIVE
OUTCOMES
PERFORMANCE
CONTINGENCY FACTORS
LOCUS OF CONTROL; EXPERIENCE PERCEIVED ABILITY
SATISFACTION
17-11
Figure 17-5
Leader Behaviors
Path-goal clarifying Achievement oriented Work facilitation Supportive Interaction facilitation Group orienteddecision making Representation and networking Value based
Leadership Effectiveness
Employee motivation Employee satisfaction Employee performance Leader acceptance
Environmental Factors
Task structure Work group dynamics
Work-unit performance
McGraw-Hill
Locus of control external Especially if people have High need for achievement
Leader spends More time clarifying The goals Little scope for Group decision making
New team
The work-unit Performance Will be high. However employee satisfaction May be low
Leadership Styles
Bureaucratic leader Charismatic leader Autocratic leader Democratic leader Laissez-faire (let them do) People oriented Task oriented
Leadership Styles
Servant leader Transaction leader Transformation leader The environment leader The visionary leader
Leadership Styles
Sticks to rules of the organization; Very little room for innovation Typically found in conservative Banksuniversitiesgovt. hospitals
Bureaucratic leader
Energizes people to work for the organizations Objectivespeople will not accept a New leader if a charismatic leader is Replaced
Charismatic leader
Autocratic leader
Has complete authority to Make decisionsconstantly Supervises subordinates Typically observed in small Time restaurants/ grocery stores Listens to the team but makes the final Decisionmost appropriate when hard Decisions have to be made acceptable to people PEOPLE FEEL THEY HAVE BEEN GIVEN A CHANCE Not useful when decisions are to be made In quick time!
Democratic leader
Leadership Styles
ONLY appropriate when the employees Are competent and committed; Leaders dont give any feedback; Sometimes results in failing to Meet the objectives set
Concentrates predominantly On achieving specific tasks Given to individuals Minimal involvement of the team When making decisions
Leadership Styles
Members use the leader as a tool to get the Work doneteam engagement is very high Pace of outcomes is slow The leader does not use his legitimate authority
Servant leader Transaction leader Transformation leader The environment leader The visionary leader
Given power to get the work done through people Using rewards and punishmentsleaders train And reward the employees for a work done
Focuses on the big picture; motivates people To get the work done; communicates Extensively with the employees
Uses the organizations culture And the groups culture to motivate Peoplegroups interact with Each other & learn the organizations Culture
Makes genuine effort to listen to The ideashowever decision Making is still central Actively engages the people By involving them in the decision making process
ORGANIZATION STRUCTURE
ORGANIZATION STRUCTURE
WHEN DESIGNING AN ORGANIZATION STRUCTUREA MANAGER WILL HAVE TO ADDRESS SOME QUESTIONS
ORGANIZATION STRUCTURE
WORK SPECIALIZATION
TO WHAT EXTENT ARE TASKS SUBDIVIDED INTO SEPARATE JOBS DEPARTMENTALIZATION ON WHAT BASIS WILL JOBS BE GROUPED TOGETHER CHAIN OF COMMAND TO WHOM DO INDIVIDUALS AND GROUPS REPORT HOW MANY INDIVIDUALS CAN A MANAGER EFFICIENTLY & EFFECTIVELY MANAGE
CENTRALIZATION DECENTRALIZATION SPAN OF CONTROL
WHERE DOES THE DECISION MAKING AUTHORITY LIE TO WHAT DEGREE WILL THERE BE RULES/ REGULATIONS TO DIRECT EMPLOYEES AND MANAGERS FORMALIZATION
ORGANIZATION STRUCTURE
WORK SPECIALIZATION
ALSO CALLED DIVISION OF LABOR TO WHAT EXTENT TASKS ARE SUB DIVIDED INTO SEPARATE JOBS THE FOCUS IS ON EFFICIENCY AND SPECIALIZATION OF SKILLS TRAINING PEOPLE TO DO REPETITIVE TASKS DEVELOPED IN THE MANUFACTURING SECTOR IN THE 1940S WORKED WELL FOR 20 YEARSPRODUCTIVITY WAS HIGH BY THE 1960SHUMAN FACTORS SUCH AS BOREDOM, FATIGUESTARTED RESULTING IN LOW PRODUCTIVITY
ORGANIZATION STRUCTURE
WORK SPECIALIZATION
HIGH
PRODUCTIVITY
ECONOMIES OF SPECIALIZATION
LOW
WORK SPECIALIZATION
HIGH
ORGANIZATION STRUCTURE
DEPARTMENTALIZATION
THE BASIS ON WHICH THE JOBS ARE GROUPED TOGETHER GROUPING IS BASED ON THE FUNCTIONS (PRODUCTION, ACCOUNTING, PURCHASING, PERSONNEL) GROUPING ALSO BASED ON PRODUCT (PEPSI COLA, FINGER FOOD, NATURAL BEVERAGES) GROUPING BASED ON TERRITORY (NORTH, SOUTH, EAST, WEST EG. BSNL, MOST OF THE TELECOM PROVIDERS AND ISPs) BASED ON THE CUSTOMERS YOU ARE CATERING TO (BANKING: RETAIL AND CORPORATE DIVISIONS)
ORGANIZATION STRUCTURE
CHAIN OF COMMAND
UNBROKEN LINE OF AUTHORITY RUNNING ACROSS THE ORGANIZATIONDEFINING THE REPORTING STRUCTURE HAS AUTHORITY & UNITY OF COMMAND AUTHORITY: RIGHTS GIVEN TO A MANAGERIAL POSITION UNITY OF COMMAND : PERSON SHOULD HAVE ONLY ONE SUPERIOR TO WHOM HE IS RESPONSIBLE
ORGANIZATION STRUCTURE
SPAN OF CONTROL
HOW MANY EMPLOYEEES CAN A MANAGER HANDLE EFFECTIVELY AND EFFICIENTLY NARROW SPAN OF CONTROLGIVES BETTER CONTROL FOR THE MANAGER OVER THE EMPLOYEES HOWEVERTHEY ADD LEVELS OF MANAGEMENT AND ARE THEREFORE EXPENSIVE
ORGANIZATION STRUCTURE
CENTRALIZATION/ DECENTRALIZATION
CENTRALIZATION IS THE DEGREE TO WHICH DECISION MAKING IS CONCENTRATED AT A SINGLE POINT DECENTRALIZED ORGANIZATIONS FASTER DECISION MAKING; MORE PEOPLE PROVIDE INPUTS FOR DECISION MAKING MAKES THE ORGANIZATION MORE FLEXIBLE
ORGANIZATION STRUCTURE
FORMALIZATION
DEGREE TO WHICH JOBS IN THE ORGANIZATION ARE STANDARDIZED MORE THE DEGREE OF FORMALIZATIONTHE LESSER AUTONOMY WILL YOU HAVE ON THE JOB RULES ARE EXPLICITLY MENTIONED
ORGANIZATION STRUCTURE
Structure of the organization determines how the resources would be expended and also the degree of autonomy given to the project manager 3 different kinds of organization structures which lie across the continuum
Functional
Weak Matrix
Balanced Matrix
Strong Matrix
Projectized
Matrix Organization
Project Coordination
CEO
HRM
PRODUCTION
MARKETING
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
Product Organization
Form of functional organization Best suited for organizations with a large product line All the activities, expertise, and resources to produce one product are grouped under a single head A manager for a particular product is in charge for all the activities The job is better coordinated and higher level of performance is achieved There is accountability for each product division The disadvantage in this organization structure is that the managers may place the interests of the division over the organization
Manager Cosmetics
Design
Engineering
Procurement
Production
CEO
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
Offers flexibility in determining costs, schedule, and performance tradeoffs by the project managers
Projects in Organizations
Matrix Organization
Weak Matrix Organization
The Project Manager has limited authority in these types of organizations The organization commits only limited resources to the project The functional manager is responsible for controlling the project budget The project manager and the project administrative staff are only assigned part time to the project The strengths and the weaknesses for this organization structure are similar to functional organization
CEO
FUNCTIONAL MANAGER 1
FUNCTIONAL MANAGER 2
FUNCTIONAL MANAGER 3
STAFF
STAFF
STAFF
Projects in Organizations
Matrix Organization
Balanced Matrix Organization
The project manager has only limited or moderate authority The organization moderately commits resources to the project The project budget may be controlled by both the project manager and the functional manager While the project manager is assigned full time to the project, the project administrative staff are assigned part time
CEO
FUNCTIONAL MANAGER 1
FUNCTIONAL MANAGER 2
FUNCTIONAL MANAGER 3
STAFF
PROJECT MANAGER
STAFF
Projects in Organizations
Strengths of Balanced Matrix Organization
The project manager has considerable authority over the projects resources Administrative consistency is achieved when managing the project There is adequate customer focus The use of resources is considerably efficient The project staff have a higher sense of job security as compared to the projectized organization
Projects in Organizations
Weaknesses of Balanced Matrix Organization
It is a delicate balance of power when it comes to decision making between the functional manager and the project manager. This may lead to conflicts The employees have 2 Bosses- The functional manager and the project manager. This leads to confusion Conflicts may also arise when it comes to sharing of resources between the projects
CEO
FUNCTIONAL MANAGER 1
FUNCTIONAL MANAGER 2
STAFF
STAFF
STAFF
PROJECT MANAGER
collection of autonomous firms/ units behaving as a single entity Some of these entities can be wholly owned, or independent firms Large organizations develop their units as Profit Centers (INTERNAL NETWORK) A central organization that outsource its work to other organizations (suppliers) Or have several partnerships such as JVs, long term contract (STABLE NETWORK)
typically characterized by: People being drawn into the team based on their expertise Use ICT extensively to communicate Client centered organizations Offers flexibility of operations Management control, reward management, learning is a major drawback
THINK ABOUT A COMPUTER MANUFACTURER THAT MAKES COMPUTERS BASED ON CERTAIN KIND OF MEMORY CHIPS THEY BUY THE CHIPS FROM TIMETOTIME FROM DIFFERENT SUPPLIERS THE COMPANY CAN NOT PREDICT THE DEMAND FOR ITS PRODUCTS THE QUALITY OF THE CHIPS OBTAINED FROM DIFFERENT SUPPLIERS WILL BE DIFFERENT SOMETIMES THE COMPANY MAY HAVE TO OVERBUY THE CHIPS TO INSULATE ITSELF AGAINST THE PRICE FLUCTUTIONS TYPICALLY IN THESE CONDITIONS WHEN THE FREQUENCY OF TRANSACTIONS IS HIGHTHE MARKET IS VOLATILETHE PROCESSES ARE BROUGHT IN-HOUSE NETWORK ORGANIZATION MAY NOT BE FEASIBLE
ON THE OTHER HAND THINK ABOUT A SERVICE PROVIDER WHO DEVELOPS SOFTWARE FOR BANKS THE BANK WILL NOT DEVELOP THE SOFTWARE FREQUENTLY SOFTWARE DEVELOPMENT IS NOT THE CORE AREA OF ITS COMPETENCY AS IT IS A ONE TIME PROJECTTHE QUESTION OF PRICE FLUCTUATIONS OR MAINTENANCE OF INVENTORY OVER A PERIOD OF TIMEDOES NOT ARISE UNDER THESE CONDITIONSNETWORKED ORGANIZATIONS ARE MORE APT!
Power: A capacity that A has to influence the behavior of B so that B acts in accordance with As wishes. The ability to get someone to do something you want done. The ability to make things happen in the way you want. Authority: legitimate source of power and has the willing acceptance of the person on whom it is exercised Influence: Expressed by others behavioral response to your exercise of power.
Power is contingent upon dependency Greater the dependence of B on Agreater will the power of A on B
Power exists only when there is dependence! Leadership on the other hand requires some goal congruence between the leaders and the followers
Contingencies Of Power
Sources of Power
Coercive Power: stems from Bs expectation of punishment by A if B fails to conform to As influence. coercion by punishments like demotion, reprimands or termination negative in nature less functional in the long run
Sources of Power
Reward Power: based on Bs belief that A has the ability to grant rewards to B. Persons ability to control the resources used to reward people. pay increases, promotions, favorable work assignments, praise, feedback, recognition etc positive power has to be of value to the employee
Sources of Power
Legitimate power: based on a persons structural position within a formal group or organization right to punish as well as reward broader in scope than coercive or reward power three main sources Cultural values Power Social structure distance Religious Persons designation leaders
CEO; Plant Manager
Sources of Power
Expert Power: influence a person wields as a result of some special skill specialized knowledge or understanding in certain well defined areas. credible, trustworthy and relevant. tenuous type of power
Sources of Power
Referent Power: based on identification of an individual who has desirable resources or personal traits need not always be linked to a persons position similar to charisma
Sources of Power
Microsoft Chairman William Gates legitimate power as co-founder of and chairman of Microsoft expert power based on his software development expertise referent power based on employees respect and admiration for his incredible accomplishments
Contingencies of power
IT workers who used to do job hopping A couple of years ago/
Substitutability: The extent to which people dependant on a resource have alternatives Centrality: the degree of interdependence Relation between power holder and others Between Contractor And a daily wage Discretion: The freedom to exercise judgment, labor to make decisions without referring to a specific rule or receiving permission from someone supervisor A first line else. Solving a minor Visibility: people who control valued resources 2 Conflict between workers can yield power only when others are aware of On the job floor these power bases
A project manager being Given formal authority By the project board to Use the resources
Complaining to your boss; excessive adherence to rules which can be counter productive; whistle-blowing; mass protests by the employees
Organizational Politics
Behaviors that others perceive as self-serving tactics for personal gain at the expense of other people and possibly the organization
Tolerance of Politics
Professionals Working in bureaucracy
Scarce Resources
ORGANIZATIONAL CULTURE
ORGANIZATIONAL CULTURE
ORGANIZATIONAL CULTURE
SHARED MEANING HELD BY THE MEMBERS THAT DISTINGUISHES THE ORGANIZATION FROM OTHER ORGANIZATIONS
ORGANIZATIONAL CULTURE
Degree to which employees Are encouraged to innovate INNOVATION & RISK TAKING ATTENTION TO DETAIL OUTCOME ORIENTATION PEOPLE ORIENTATION TEAM ORIENTATION AGGRESSIVENESS STABILITY Focus is on growth/ focus is On maintaining the status quo Individuals work in teams rather Than individually Degree to which focus is on Obtaining results Employees opinions are Considered in decision making Employees being analytical And precision SIX SIGMA AT GE
ORGANIZATIONAL CULTURE
Ideas/ values
Selecting people Who share these Ideas/ values Indoctrination Of Culture by the founders The Values/ Ideas are internalized
ORGANIZATIONAL CULTURE
SOCIALIZATION
TOP MANAGEMENT
ORGANIZATIONAL CULTURE
ORGANIZATIONAL CULTURE
The senior managers personality type filters down the organizations rank
TOP MANAGEMENT
RETENTION OF CULTURE
ORGANIZATIONAL CULTURE
New employees are encouraged to socialize togetherlearn about the companys philosophy Etiquette such as dress code; reporting structures
RETENTION OF CULTURE
ENCOUNTER STAGE
SOCIALIZATION
METAMORPHOSIS STAGE
Juxtaposes his job expectations with Employee goes through What the company offers The socialization process; (job rotation; barbeques; A close match will Typically happens in schools & colleges Using role models in the re-affirm his principles Where the individuals are molded according to Organization as trainers The industry requirements (formal training; soft skills) A mismatch will mean INDIVIDUALS THOUGH HAVE THEIR OWN IDEAS AND the employee has to Change his ideas accordingly VALUES
ORGANIZATIONAL CULTURE
CULTURE AS A LIABILITY CULTURE AS A BARRIER TO CHANGE Shared values of the organization do not match the changing business environment Leads to arrogance among the organizations Examples of JC Penney losing out to Wal Mart; GM losing out to Japanese car makers
ORGANIZATIONAL CULTURE
CULTURE AS A LIABILITY CULTURE AS A BARRIER TO MERGERS AND ACQUISITIONS Apart from financial advantages and product synergy, culture fit between the 2 companies should also be looked into Called as a BiCultural Audit During the merger process, the 2 companies examine their cultural similarities and differences Typically done through surveys and interviews
ORGANIZATIONAL CULTURE
CULTURE AS A LIABILITY CULTURE AS A BARRIER TO MERGERS AND ACQUISITIONS Similar values, principles are implemented The differences are merged through socialization Other ways can be:
ORGANIZATIONAL CULTURE
MERGER STRATEGY
ASSIMILATION
DESCRIPTION Acquired company embraces the acquiring firms culture Acquiring firm imposes its culture on the unwilling acquired firms Combining two or more cultures into a new composite culture Merging companies remain distinct entities with minimal exchange of cultures
Deculturation
Rarely works
Integration
Separation
Stress management
Stress
Definition: A persons adaptive response to a stimulus that places excessive physical demands on him or her. A dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.
Speech difficulties Sudden weight gain Hair Loss Aching of Muscles More impatient Low/ High BP Fatigue Weight Loss
Anxiousness Restlessness Lack of interest in work Extremely critical of others Depression Jealousy Nightmares Lack of Self Efficacy Withdrawing from social life
Distress
Has negative implications Our typical understanding of stress
BURNOUT
Characterized by Disengagement Emotions are Blunted Produces helplessness & hopelessness Leads to Paranoia, detachment, and depression Causes demoralization Primary damage is emotional More prolonged condition
Causes of stress
Extra organizational stressors social and technological family problems relocation race, class or sex residential and community conditions
Causes of stress
Organizational stress Organizational & group stressors are external in nature high stress jobs (being an ATC) Job role (ambiguity in job description) poor working conditions (improper ergonomics) organizational politics (lobby) Group stressors absence of group cohesiveness conflicts related to groups
Causes of stress
Individual stressors Internal in NatureRelated to your personality and your ability to cope up with the job demands role conflict and ambiguity (cognitive dissonance) type A characteristics Impatient, talking at a rapid pace, locus of control Rude, easily upset, always racing Against time learned helplessness Psychological condition where the individual Perceives loss of control over the situation self efficacy (job, family life)
Effects of stress
Physical problems: headaches, increase in blood pressure, loss of appetite, gastrointestinal disorders etc Psychological problems: anger, anxiety, boredom, depression, dissatisfaction, tension, irritation etc Behavioral problems: sleep disorders, overeating, loss of appetite, smoking, alcoholism, drug addiction etc
Individual strategies
Problem focused strategies time management requesting others for help shifting to another job Emotion-focused strategies Relaxation Exercise Psychological strategies Recreation companionship
Organizational strategies
Problem focused strategies redesigning the job proper selection and placement training team building providing day care facilities Helping employees cope up With alcoholism, sickness Emotion focused strategies Usually it is the supervisors who Report such employees to the promoting open communication program Employee assistance programs mentoring wellness programs and personal time off
Delivering healthy meals to the Employees; monthly recreational Activities; paid trips to the Spa
A PROCESS OF OPPOSITION AND CONFRONTATION THAT CAN OCCUR IN ORGANIZATIONS BETWEEN INDIVIDUALS OR GROUPS
Sharing of resources (which dept. will receive Money to buy new Office equipment)
differentiation
Task interdependence
Sources Of conflict
Performance measurement
Rewarding people Manufacturing (for efficiency) Sales (for flexibility at the cost of efficiency)
Scarcity of Resources
Intra Personal Conflict (difference between values And behavior; frustration When can not achieve goals)
TYPES OF CONFLICTS
Inter Group Conflict (differences in sharing of Skilled people between The line and the staff manager) Intra Group Conflict (differences in work Allocation between workers In a unit)
Stage II
Cognition & Personalization
Stage III
Intentions
Stage IV
Behavior
Stage V
Outcomes
Perceived Conflict
Increased Performance
Conflict handling Intentions
Antecedent Conditions
Felt Conflict
What are the Reasons for conflict How do you And the others Understand that There is a conflict
COMPROMISE COMPETING
ASSERTIVENESS
ACCOMMODATING AVOIDANCE
Assertive
COLLABORATING
COMPROMISE COMPETING Give you small Assignmentsor Ask you to help others Who are working on projects ACCOMMODATING AVOIDANCE Giving you more time To finish your task Within the given time constraints uncooperative COOPEATIVENESS cooperative
unassertive
(Cooperativeness)
(Friendly Helper)
Compromising
conciliator
Avoiding
(Impersonal Complier)
Competitive
(Tough Battler)
Low Low
High
Specific Intentions
Competing A desire to satisfy ones interests, regardless of the impact on the other parties. Collaborating A situation where the parties to a conflict each desire to satisfy fully the concerns of all parties Avoiding The desire to withdraw from or suppress a conflict. Accommodating The willingness of one party in a conflict to place the opponents interests above his or her own Compromising A situation in which each party to a conflict is willing to give up something
Annihilatory conflict
Your response to the Intentions
Overt efforts to destroy the other party Aggressive physical attacks strikes Unions; protests; Threats and ultimatums Assertive verbal attacks Overt questioning or challenging of others
Arguing with your Boss Getting verbal in a meeting
No conflict
Authoritative Command
Using behavioral techniques (such as OBMOD) to alter attitudes that created conflict
Outcomes of Conflict
Conflicts can result in two types of outcomes Functional: Supports the goals of the group and improves its performance Dysfunctional: Hinders group performance
Dysfunctional Conflict
Any confrontation or interaction between groups that harms the organization or hinders the achievement of organizational goals Management must seek to eliminate dysfunctional conflict Dysfunctional Conflict inhibits achievement of organizational goals!
Low
Level of Conflict
High
Optimal
Functional
Positive movement toward goals process begin46% annual growth but still lagging behind Innovation and change Google Search for problem solutions High Creativity and quick adaptation Dysfunctional Student Behavior: to environmental changes
Not turning in assignments, not meeting Disruption Together for group work, not showing up In the class, breaking into sub groups, Interference with activities Giving negative feedback about one person In the group to others, one/ twoLow Coordination difficultiestheefforts inonly group members Are putting in the the
High
Dysfunctional
Chaos
Negotiation
A process in which two or more parties attempt to reach acceptable agreement in a situation characterized by some level of disagreement.
Negotiation
Negotiating with Boss for a leave Negotiating with management for resources, pay rise Filling up for a colleague at work IN ANTICIPATION OF FUTURE GAINS
Distributive Bargaining
Classical view that negotiations are a form of a zero-sum game To what extent can one party win AT THE EXPENSE of the other party Most common in situations where resources are limited Talks between trade union leaders and management for payriselimited resources When you bargain with your travel agent for a best price for your airline ticket Win Lose Negotiation
Distributive Bargaining
Each party tries to get the other party as close to its Target Point as possible Each party has a resistance pointany solution that goes below the partys resistance point Will be unacceptable to that party An overlap between the aspiration range of the 2 parties is where the settlement happens ManagementUnion Talks.for Pay Rise
Settlement Range
Integrative Bargaining
A positive-sum approach Situations where each party gains without a corresponding loss for the other party Does not mean that everyone gets everything they wanted An agreement has been achieved which leaves all parties better off than they were prior to the agreement Relationship focused Win- win Negotiation
Distributive Bargaining
Each party tries to get the other party as close to its Target Point as possible Each party has a resistance pointany solution that goes below the partys resistance point Will be unacceptable to that party An overlap between the aspiration range of the 2 parties is where the settlement happens ManagementUnion Talks.for Pay Rise
Settlement Range
Party As Party Bs Resistance Point Resistance Point12% hike In salary + 12% hike 2 % hike in 12% hike in the salary In salary + HRA implemented 2 % hike in In a phased manner HRA In 2 years
Third-Party Negotiations
Comes into picture when direct negotiations are not known to yield results! Has 4 roles primarily
Mediator
A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives. Arbitrator A third party to a negotiation who has the authority to dictate an agreement.
Can either be Voluntary or Statutory/ Mandatory Always results in a solution
Robert Duval in God Father Student club members who Can speak to management And students about issues
A trusted third party who provides an informal communication link between the negotiator and the opponent. Consultant An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis.
A consultant never gives SolutionsHe only helps The conflicting parties to Identify one themselves
Effect of Conflict on Group Behavior Cognitive Conflict in Group: All group members agree on goals to be achieved Differ on how these goals should be met Deliberate leading to constructive criticism of ideas The focus is on task procedures and not on criticizing people Leads to effective debate and therefore better ideas Leads to social interaction and therefore better team relations in the long run
Effect of Conflict on Group Behavior On the flip side: Little exchange of communication High rate of absenteeism (especially if interpersonal and organizational) Decreased job satisfaction Low performance Stress leading to job burnout Work/Life balance affected Little or no team spirit Negative Stereotyping having a distorted impression of other person/ group
ORGANIZATIONAL CHANGE
ORGANIZATIONAL CHANGE
ORGANIZATIONAL CHANGE
Some famous quotes on Change Computers in the future may weigh no more than 1.5 tons." Popular Mechanics, forecasting the relentless march of science, 1949 Everything that can be invented has been invented." Charles H. Duel We have changed these ideasand WHY?
An idea that is not dangerous is unworthy of being called an idea at all." Oscar Wilde
If at first the idea is not absurd, then there is no hope for it." Albert Einstein
ORGANIZATIONAL CHANGE
Young, Mobile workforce GEN Y!...high expectations From work environment Different from the Baby Boomers
Emergence of Virtual organizations; Telecommuting Changing organization Structures and attitude of people
Nature Of workforce
Technology
World Politics
Economic Shocks
Social Trends
Competition
Heightened competition Requires organizations To be flexiblerapidly Responding to the market Re-Branding of BSNL
ORGANIZATIONAL CHANGE
Managing PLANNED CHANGE is important for the employees to Accept Change Change is not an Accident Change activities are proactive & purposeful Stimulating Innovation in the OrganizationEmployee Empowerment, and Introduction of Work Teams are all examples of Planned Change Organization More adapted To environment Objectives Of Change in Change Peoples behavior
ORGANIZATIONAL CHANGE
Resistance to Change Can be source of Functional Conflict Brings out a debate on the merits & demerits of change Change sometimes can be implicitloss of loyalty to the organizationdifficult to recognize The reactions to change can also be deferredapparently minimal initially but having serious repercussions in the long run
Proper Ergonomics was unheard of When the BPO boom started in India It was only in the early 2000 did people Realize the damaging effects of An improper work environment
ORGANIZATIONAL CHANGE
Give full information about The planned change to the Employees; explain why Is it important Involve the people in The change process so That the decisions get Higher acceptability
Participation
Counsel the Employees; Impart new skills; Offer alternative Employment if Downsizing the Organization However this can Be time consuming & expensive
Punishmentsthreat Manipulation Of transfers, demotions, & Excessive performance Cooptation Targets, poor referrals
Negotiation
Current state
Driving forces
Restraining Forces
Desired State
ORGANIZATIONAL CHANGE
UNFREEZING THE STATUS QUO:A US based oil Company with 3 divisions Across USA decision To consolidate these 3 divisions into 1
MOVEMENT: Increase in pay rise to those Who relocate; liberal relocation Expenses; employee Counseling if necessary
Current state
Driving forces
REFREEZING: Temporary benefits given Being formalized & made Permanent; the group Norms will evolve Over the time
Restraining Forces Employee resistance to Consolidation; fear of job cuts; Fear of relocation to a new place
Desired State
ORGANIZATIONAL CHANGE
Kotters EightStep Plan to Implement Change 1. Establish a sense of Urgency by creating a compelling reason why change is Required 2. Form a coalition with enough power to lead the change 3. Create a new vision to direct the change & strategies to achieve it 4. Communicate the vision throughout the organization 5. Empower others to act on the vision by removing barriers & encourage risk taking 6. Plan for, and reward shortterm goals that will help the organization move towards The vision 7. Consolidate improvements, reassess change, and make necessary adjustments for The new program 8. Reinforce the change by demonstrating the relationship between the behavior & Organizational success
ORGANIZATIONAL CHANGE
EUROPEAN BSCHOOL ACCREDITATION PROJECT 1. Establish a sense of Urgency by creating a compelling reason why change is Required
Achieve a high brand equity by being the only school outside North America to be PMI accredited
2. Form a coalition with enough power to lead the change 3. Create a new vision to direct the change & strategies to achieve it
OneOne discussion between the Dean (Project Champion) & Heads of the Department
4. Communicate the vision throughout the organization to the incoming team members Action plan; the purpose reinforced 5. Empower others to act on the vision by removing barriers & encourage risk taking 6. Plan for, and reward shortterm goals that will help the organization move towards The vision 7. Consolidate improvements, The new program
Project startedreports submitted to the PMI audit team from USA Interim reports extremely satisfactorythe team sent on an all expense reassess Vienna for an international necessary adjustments for Paid trip to change, and make conference 3 rounds of brain storming sessions to decide on the road map How to achieve the accreditation within 8 months
8. Reinforce the change by demonstrating theintroduced conform to the PMI the behavior & team Modules/ courses relationship between standardthe existing And the former team members are still rewarded! Organizational success
ORGANIZATIONAL CHANGE
Action Research Undertaken by an external consultantextensive exchange of information Diagnosis: collecting information about problems, concerns, changes needed
2. Analysis: Cause of the problems, identification of the critical problemsidentification Of possible action areas 3. Feedback: sharing of the observations with the participants; change management Plan discussed 4. Action: change management plan implemented 5. Review: evaluation of the plans effectiveness
ORGANIZATIONAL CHANGE
Organizational Development An approach to organizational change in which the employees themselves formulate the change thats required and implement it, usually with the aid of a trained consultant.
Sensitivity training
Survey Feedback
Process Consultation
Team Building
Appreciative Inquiry
ORGANIZATIONAL CHANGE
Unstructured interaction among the Participants; the consultants merely facilitates The discussion; Express ideas/ beliefs freely; are made aware Of themselves; come up with their own Solutions to the problem
Sensitivity training
Survey Feedback
Process Consultation
Team Building
Appreciative Inquiry
ORGANIZATIONAL CHANGE
Sensitivity training
Consultant works proactively With the client; helps him to Understand the relation between The various processes and people Together diagnose the problem And come up with the solution
Survey Feedback
Process Consultation
Team Building
Appreciative Inquiry
ORGANIZATIONAL CHANGE
Sensitivity training
Large group meetings are Organized to identify strenghts Of the organization; people are Asked to speculate about the vision; Then they are asked to suggest an Action plan using the strenghts Of the organization Survey Feedback Process Consultation
Team Building
Appreciative Inquiry