1. Introduction to Organizational Behavior
Organizational Behavior - systematic study of the actions
and attitudes that people exhibit within organizations
The field of OB seeks to replace intuitive explanations
with systematic study
Goals of Organisational Behaviour
Explain, predict, and control human behavior

2. Why Do We Study OB?
• Tolearn about yourself and how to deal with others
• You are part of an organization now, and will continue to be
a part of various organizations
• Organizations are increasingly expecting
individuals to be able to work in teams, at least
some of the time
• Some of you may want to be managers or
entrepreneurs
What Is an Organization?
A consciously coordinated social unit, composed of a group
of people, which functions on a relatively continuous basis
to achieve a common goal or set of goals.

3. Determinants of Employee Performance
Productivity
Absenteeism
Turnover
organizational behaviour is a field of study that investigates
the impact that individuals, groups and structure have on
behaviour withinorganizations, for the purpose of applying
such knowledge toward improving an organization’s
effectiveness.
Systematic study - the use of scientific evidence gathered
under controlled conditions and measured and interpreted in
a reasonably rigorous manner to attribute cause and effect

4. Challenges Facing the Workplace
•Organizational Level
• Productivity
• Developing Effective Employees
• Global Competition
• Managing in the Global Village Group Level
• Working With Others
• Workforce DiversityIndividual Level
• Job Satisfaction
• Empowerment
• Behaving Ethically

5. Contributing Disciplines
Psychology seeks to Sociology studies
measure,explain, people in relation to their
and change fellow human beings
behavior
Social psychology
focuses on the
influence of people
on one another
Political science is the
Anthropology is the
study of the
study of societies
behavior of individuals
to learn about human
and groups within
beings and their activities
a political environment

6. Responding to Globalization
Increased Foreign Assignments
Working with People from Different
Cultures
Coping with Anti-Capitalism Backlash
Overseeing Movement of Jobs to
Countries with Low-cost Labor

7. OB Insights
Improving People Skills
Improving Customer Service
Empowering People
Working in Networked Organizations
Stimulating Innovation and Change
Coping with “Temporariness”
Helping Employees Balance Work/Life
Conflicts
Declining Employee Loyalty
Improving Ethical Behavior

13. Definition of Learning
A relatively permanent change
in behaviour (or behaviour
tendency) that occurs as a
result of a person’s interaction
with the environment

14. How Learning Occurs
Classical Conditioning
Bell No Response
Unconditioned
Unconditioned Stimulus Response
(Food) (Salivation)
During
Unconditioned
Conditioning
Stimulus
(Food)
Conditioned Stimulus
(Bell) Unconditioned
Response (Salvation)
Conditioned Stimulus Conditioned Response
(Bell) (Salivation)

15. Operant Conditioning

16. Contingencies of
Reinforcement
Consequence No Consequence
is introduced consequence is removed
Behaviour
increases/ Positive Negative
maintained reinforcement reinforcement
Behaviour Punishment Extinction Punishment
decreases

17. Schedules of Reinforcement
Behaviours
1 2 3 4 5 6 7 8 9
Continuous
Fixed ratio
Variable ratio
Time (Days)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Fixed interval
Variable interval

18. Kolb’s Experiential Learning
Model
Concrete
experience
Active Reflective
experimentation observation
Abstract
conceptualization

19. Developing a Learning
Orientation
Value the generation of new
knowledge
Reward experimentation
Recognize mistakes as part of
learning
Encourage employees to take
reasonable risks

20. Action Learning
Experiential learning in which
employees are involved in a ‘real,
complex and stressful problem’,
usually in teams, with immediate
relevance to the company
– Concrete experience
– Learning meetings
– Team conceptualizes and applies a
solution to a problem

21. Learning and OB
Stimulus generalization in Organizations
Stimulus discrimination in Organizations
Learning and Training
Learning Through Training
Employee Indiscipline

22. What is Personality?

23. Personality Determinants
Heredity
Environment
Situation
Family
Social

24. Personality Traits
The Big Five Model
The Big Five Model

25. The Myers-Briggs Type Indicator
The Myers-Briggs Type Indicator
Personality Types
Personality Types
••Extroverted or Introverted (E
Extroverted or Introverted (E
or I)
or I)
••Sensing or Intuitive (S or N)
Sensing or Intuitive (S or N)
••Thinking or Feeling (T or F)
Thinking or Feeling (T or F)
••Perceiving or Judging (P or J)
Perceiving or Judging (P or J)

26. OTHER PERSONALITY TRAITS Achievement
Orientation
Authoritarianism Self - Esteem
Locus of Control Risk -Taking
Personality
Traits
Machiavellism Self - Monitoring
Introversion Type A Type B
Extroversion Personality

27. Major Personality Attributes Influencing OB
Major Personality Attributes Influencing OB
Locus of control
Machiavellianism
Self-esteem
Self-monitoring
Propensity for risk taking
Type A personality

28. Locus of Control
Locus of Control

29. Machiavellianism
Machiavellianism
Conditions Favoring High Machs
Conditions Favoring High Machs
••Direct interaction
Direct interaction
••Minimal rules and regulations
Minimal rules and regulations
••Distracting emotions
Distracting emotions

30. Self-Esteem and Self-Monitoring
Self-Esteem and Self-Monitoring

31. Risk-Taking
Risk-Taking
High Risk-taking Managers
– Make quicker decisions.
– Use less information to make decisions.
– Operate in smaller and more entrepreneurial
organizations.
Low Risk-taking Managers
– Are slower to make decisions.
– Require more information before making decisions.
– Exist in larger organizations with stable environments.
Risk Propensity
– Aligning managers’ risk-taking propensity to job
requirements should be beneficial to organizations.

32. Personality Types
Personality Types

33. Achieving Personality-Job Fit
Achieving Personality-Job Fit
Holland’s
Holland’s
Typology of
Typology of
Personality
Personality
and
and
Congruent
Congruent
Occupation
Occupation
ss

34. OB Applications of Understanding Emotions
OB Applications of Understanding Emotions
Ability and Selection
– Emotions affect employee effectiveness.
Decision Making
– Emotions are an important part of the
decision-making process in organizations.
Motivation
– Emotional commitment to work and high
motivation are strongly linked.
Leadership
– Emotions are important to acceptance of
messages from organizational leaders.

35. OB Applications of Understanding Emotions
OB Applications of Understanding Emotions
Interpersonal Conflict
– Conflict in the workplace and individual
emotions are strongly intertwined.
Deviant Workplace Behaviors
– Negative emotions can lead to employee
deviance in the form of actions that violate
established norms and threaten the
organization and its members.
Productivity failures
Property theft and destruction
Political actions
Personal aggression

36. Defining Motivation
Defining Motivation
Key Elements
Key Elements
1. Intensity: how hard a person tries
1. Intensity: how hard a person tries
2.
2. Direction: toward beneficial goal
Direction: toward beneficial goal
3.
3. Persistence: how long a person tries
Persistence: how long a person tries

37. Challenges of Motivating
Employees
Changing workforce
– Younger employees have different
needs
– Diverse workforce
Layoffs, restructuring
– Damaged trust, commitment
Flatter organizations
– Fewer supervisors to monitor
performance

38. Needs Hierarchy Theory
Needs Hierarchy
Theory
Self- Maslow arranged five
Actualization needs in a hierarchy
Esteem
Satisfaction-progression
process
Belongingness People who experience
self-actualization desire
Safety more rather than less of this
need
Physiological Not much support for
Maslow’s theory

39. Theory X and Theory Y (Douglas McGregor)
Theory X and Theory Y (Douglas McGregor)

40. Holland’s
Typology of
Personality
and Congruent
Occupations

41. Two-Factor Theory (Frederick Herzberg)
Two-Factor Theory (Frederick Herzberg)

42. Factors characterizing events
on the job that led to extreme
job dissatisfaction
Factors characterizing events
on the job that led to extreme
job satisfaction
Comparison of
Comparison of
Satisfiers and
Satisfiers and
Dissatisfiers
Dissatisfiers

43. Contrasting Views of Satisfaction
Contrasting Views of Satisfaction
and Dissatisfaction
and Dissatisfaction
Presence Absence

44. ERG Theory ( Alderfer)
Needs Hierarchy ERG
Theory Theory
Self- Alderfer’s model has
Actualization
Growth three sets of needs
Esteem Adds frustration-
regression process to
Belongingness Relatedness
Maslow’s model
Safety Somewhat more
Existence research support than
Physiological Maslow’s theory

45. Innate Drives Theory
• Need to take/keep objects and
Drive to Acquire experiences
• Basis of hierarchy and status
• Need to form relationships and
Drive to Bond social commitments
• Basis of social identity
• Need to satisfy curiosity and
Drive to Learn resolve conflicting information
• Basis of self-actualization
• Need to protect ourselves
Drive to Defend • A reactive (not proactive) drive
• Basis of fight or flight

46. Innate Drives and Motivation
Emotional brain centre relies on
innate drives to assign emotional
markers to incoming information
Emotional markers influence
rational thoughts and become the
conscious sources of motivation

47. Learned Needs Theory
Some needs are learned, not innate
Need for achievement
– desire for challenging and somewhat risky
goals, feedback, recognition
Need for affiliation
– desire to seek approval, conform, and avoid
conflict
– try to project a favourable self-image
Need for power
– desire to control one’s environment
– personalized versus socialized power

48. Implications of Needs-based
Theories
Organizations need to support
employees to achieve a balance of
their innate needs
People have different needs at
different times
Offer employees a choice of
rewards
Do not rely too heavily on financial
rewards

49. Expectancy Theory
Expectancy Theory

50. Expectancy Theory in
Practice
Increasing the E-to-P expectancy
– training, selection, resources, clarify roles,
provide coaching and feedback
Increasing the P-to-O expectancy
– Measure performance accurately, clarify
outcomes, explain how rewards are based
on past performance, provide examples
Increasing outcome valences
– Use valued rewards, individualize rewards,
minimize countervalent outcomes

51. Effective Goal Setting
Specific
Relevant
Challenging
Task Task
Effort Performance
Commitment
Participation
Feedback

52. Characteristics of Effective
Feedback
Specific
Credible Effective Relevant
Feedback
Sufficiently
Timely
frequent

53. Multisource (360-degree)
Feedback
Supervisor
Project
Customer
leader
Co-worker Evaluated Co-worker
Employee
Subordinate Subordinate
Subordinate

54. What Is Perception, and Why Is It Important?
What Is Perception, and Why Is It Important?
••People’s behavior is
People’s behavior is
based on their
based on their
perception of what
perception of what
reality is, not on
reality is, not on
reality itself.
reality itself.
••The world as it is
The world as it is
perceived is the world
perceived is the world
that is behaviorally
that is behaviorally
important.
important.

55. Perceptual Process Model
Environmental Stimuli
Feeling Hearing Seeing Smelling Tasting
Selective Attention
Organization and
Interpretation
Emotions and
Behaviours

56. Selective Attention
Characteristics of the object
– size, intensity, motion, repetition,
novelty
Perceptual context
Characteristics of the perceiver
– attitudes
– perceptual defense
– expectations -- condition us to expect
events

57. Factors That
Factors That
Influence
Influence
Perception
Perception
EXHIBIT 5-1

58. Person Perception: Making Judgments About
Person Perception: Making Judgments About
Others
Others
Distinctiveness: shows different behaviors in different
Distinctiveness: shows different behaviors in different
situations.
situations.
Consensus: response is the same as others to same
Consensus: response is the same as others to same
situation.
situation.
Consistency: responds in the same way over time.
Consistency: responds in the same way over time.

59. Attribution Theory
Attribution Theory

60. Errors and Biases in Attributions
Errors and Biases in Attributions
Errors and Biases in Attributions (cont’d)
Errors and Biases in Attributions (cont’d)

61. Errors and Biases in Attributions
Errors and Biases in Attributions

62. Frequently Used Shortcuts in Judging Others
Frequently Used Shortcuts in Judging Others

63. Stereotyping
Process of assigning traits to people based on their
membership in a social category
– Categorical thinking
– Strong need to understand and anticipate others’ behaviour
– Enhances our self-perception and social identity
Minimizing Stereotyping Biases
Diversity awareness training
– educate employees about the benefits of diversity and
dispel myths
Meaningful interaction
– Contact hypothesis
Decision-making accountability
– use objective criteria in decision-making

64. Specific Applications in Organizations
Specific Applications in Organizations
Employment Interview
– Perceptual biases affect the accuracy of interviewers’
judgments of applicants.
Performance Expectations
– Self-fulfilling prophecy (pygmalion effect): The lower or
higher performance of employees reflects preconceived
leader expectations about employee capabilities.
Performance Evaluations
– Appraisals are subjective perceptions of performance.
Employee Effort
– Assessment of individual effort is a subjective judgment
subject to perceptual distortion and bias.

65. Other Perceptual Errors
Primacy
– first impressions
Recency
– most recent information dominates
perceptions
Halo
– one trait forms a general impression
Projection
– believing other people are similar to
you

66. Improving Perceptions
Empathy
– Sensitivity to the feelings, thoughts,
and situation of others
– Cognitive and emotional component
Self-awareness
– Awareness of your values, beliefs and
prejudices
– Applying Johari Window

67. Conflict Defined
The process in which one party
perceives that its interests are being
opposed or negatively affected by
another party.

68. Conflict

69. The Conflict Process
Conflict
Perceptions
Sources of Manifest Conflict
Conflict Conflict Outcomes
Conflict
Emotions
Conflict
Escalation Cycle

70. Task vs. Socioemotional
Conflict
Task-related conflict
– Conflict is aimed at issue, not parties
– Helps recognize problems, identify
solutions, and understand the issues
better
– Potentially healthy and valuable
Socioemotional conflict
– Conflict viewed as a personal attack
– Introduces perceptual biases
– Distorts information processing

71. Organizational Conflict
Outcomes
Conflict Management
– Interventions that alter the level and
form of conflict for organizational
effectiveness
Constructive Conflict
– Encourages people to learn about
other points of view

72. Organizational Conflict
Outcomes
Potential benefits
– Improves decision making
– Strengthens team dynamics
Dysfunctional outcomes
– Diverts energy and resources
– Weakens knowledge management
– Increases frustration, job
dissatisfaction, stress, turnover and
absenteeism

73. Sources of Conflict
Incompatible • One party’s goals perceived to
Goals interfere with other’s goals
• Different values/beliefs
Differentiation • Explains cross-cultural and
generational conflict
• Conflict increases with
Task interdependence
Interdependence • Higher risk that parties interfere with
each other
more

74. Sources of Conflict (con’t)
Scarce • Motivates competition for the resource
Resources
• Creates uncertainty, threatens goals
Ambiguous Rules • Without rules, people rely on politics
• Increases stereotyping
Communication • Reduces motivation to communicate
Problems • Escalates conflict when arrogant

75. Conflict Management Styles
High
Forcing Problem-Solving
Assertiveness
Compromising
Avoiding Yielding
Low High
Cooperativeness

76. Conflict resolution
Emphasizing Superordinate Goals
Emphasizing common objectives rather than conflicting sub-goals
Reduces goal incompatibility and differentiation
Reducing Differentiation
Remove sources of different values and beliefs
Move employees around to different jobs, departments, and regions
Other ways to reduce differentiation:
– Common dress code/status
– Common work experience
Better Communication/Understanding
Employees understand and appreciate each other’s views through
communication
– Informal gatherings
– Formal dialogue sessions
– Teambuilding activities

77. Other Ways to Manage Conflict
Reduce Task Interdependence
– Dividing shared resources
– Combine tasks
– Use buffers
Increase Resources
– Duplicate resources
Clarify Rules and Procedures
– Clarify resource distribution
– Change interdependence

78. Situational Influences on
Negotiation
Location
Physical
Setting
Time Passage
and Deadlines
Audience

79. Effective Negotiator
Behaviours
Preparation and
Goal Setting
Gathering
Information
Communicating
Effectively
Making Concessions

80. Types of Third Party
Intervention
High
Mediation Inquisition
Level of
Process
Control
Arbitration
Low Level of Outcome Control High

82. Organizational Culture Defined
The basic pattern of shared assumptions,
values, and beliefs considered to be the
correct way of thinking about and acting
on problems and opportunities facing the
organization.

83. The Basic Functions of
Organizational Culture
Organizational
Culture/basic functions
Provides a
Enhances Clairifies
sense of
commitment and
identity for
to the reinforces
members
organization’s standards
mission of behavior

84. What Is Organizational Culture?
What Is Organizational Culture?

85. What Is Organizational Culture?
What Is Organizational Culture?
Culture Versus Formalization
– A strong culture increases behavioral
consistency and can act as a substitute
for formalization.
Organizational Culture Versus National
Culture
– National culture has a greater impact on
employees than does their organization’s
culture.
– Nationals selected to work for foreign
companies may be atypical of the
local/native population.

86. What Do Cultures Do?
What Do Cultures Do?
Culture’s Functions:
Culture’s Functions:
1. Defines the boundary between one
1. Defines the boundary between one
organization and others.
organization and others.
2. Conveys aasense of identity for its members.
2. Conveys sense of identity for its members.
3. Facilitates the generation of commitment to
3. Facilitates the generation of commitment to
something larger than self-interest.
something larger than self-interest.
4. Enhances the stability of the social system.
4. Enhances the stability of the social system.

87. What Do Cultures Do?
What Do Cultures Do?
Culture as a Liability:
Culture as a Liability:
1. Barrier to change
1. Barrier to change
2. Barrier to diversity
2. Barrier to diversity
3. Barrier to acquisitions and
3. Barrier to acquisitions and
mergers
mergers

88. Core Organizational Values
Reflected in Culture
•Sensitivity to needs of customers and employees
•Freedom to initiate new ideas
•Willingness to tolerate taking risks
•Openness to communication options

89. Elements of Organizational
Culture
Artifacts of Physical Structures
Organizational Language
Culture
Rituals and
Ceremonies
Stories and Legends
Organizational Beliefs
Culture Values
Assumptions

90. Artifacts: Stories and Legends
Social prescriptions of desired
(undesired) behaviour
Provides a realistic human side to
expectations
Most effective stories and legends:
– Describe real people
– Assumed to be true
– Known throughout the organization
– Are prescriptive

91. Artifacts: Rituals and
Ceremonies
Rituals
– programmed routines
– (eg., how visitors are greeted)
Ceremonies
– planned activities for an audience
– (eg., award ceremonies)

92. Artifacts: Organizational
Language
Words used to address people,
describe customers, etc.
Leaders use phrases and special
vocabulary as cultural symbols
– eg. Container Store’s “Being Gumby”
Language also found in
subcultures
– eg. Whirlpool’s “PowerPoint culture”

93. Artifacts: Physical Structures and
Symbols
Building structure -- may shape
and reflect culture
Office design conveys cultural
meaning
– Furniture, office size, wall hangings

94. Organizational Culture
Organizational Culture

95. The Process of Innovation
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Progress
Setting Setting Producing Testing and Outcome Success
the the the Implementing Assessment End
Agenda Stage Ideas the Ideas Failure
End
Individual
Motivation or Team
Productivity
Resources
Skills

96. Creating a Customer-Responsive Culture
Creating a Customer-Responsive Culture
Managerial Actions:
Managerial Actions:
•• Select new employees with personality and
Select new employees with personality and
attitudes consistent with high service
attitudes consistent with high service
orientation.
orientation.
•• Train and socialize current employees to be
Train and socialize current employees to be
more customer focused.
more customer focused.
•• Change organizational structure to give
Change organizational structure to give
employees more control.
employees more control.
•• Empower employees to make decision about
Empower employees to make decision about
their jobs.
their jobs.

97. Creating a Customer-Responsive Culture
Creating a Customer-Responsive Culture
Managerial Actions (cont’d) ::
Managerial Actions (cont’d)
•• Lead by conveying a customer-focused vision
Lead by conveying a customer-focused vision
and demonstrating commitment to customers.
and demonstrating commitment to customers.
•• Conduct performance appraisals based on
Conduct performance appraisals based on
customer-focused employee behaviors.
customer-focused employee behaviors.
•• Provide ongoing recognition for employees who
Provide ongoing recognition for employees who
make special efforts to please customers.
make special efforts to please customers.

98. Keeping Culture Alive
Keeping Culture Alive
Selection
– Concerned with how well the candidates
will fit into the organization.
– Provides information to candidates about
the organization.
Top Management
– Senior executives help establish behavioral
norms that are adopted by the
organization.
Socialization
– The process that helps new employees
adapt to the organization’s culture.

99. Stages in the Socialization Process
Stages in the Socialization Process

100. How Organization Cultures Form
How Organization Cultures Form

101. How Employees Learn Culture
How Employees Learn Culture
•• Stories
Stories
•• Rituals
Rituals
•• Material Symbols
Material Symbols
•• Language
Language

102. Spirituality and Organizational Culture
Spirituality and Organizational Culture
Characteristics:
Characteristics:
• • Strong sense of
Strong sense of
purpose
purpose
• • Focus on individual
Focus on individual
development
development
• • Trust and openness
Trust and openness
• • Employee
Employee
empowerment
empowerment
• • Toleration of employee
Toleration of employee
expression
expression

103. “Vulnerable Sensitive. Honest about your
weakness. Just the qualities you need to be a
strong leader”.
Consider leading softly is more effective than
armour plated command and control.
Harvard Business Review
“Failing Organisations are usually over-managed
and under-led”. Warren G Bennis
Today’s Presentation is aimed at:
Discussing the necessity of leadership.
Understanding and finding implications of
different leadership styles.
Identifying differences between Manager and
Leader.
Theories of leadership.

104. “Leadership is the ability to persuade others to seek
defined objectives enthusiastically. It is the human factor
which binds a group together and motivates it towards
goals”. Keith Davis
“Leadership is the art or process of influencing people so
that they will strive willingly and enthusiastically towards
the achievement of group goals”. Koontz
“Leadership is the quality of behaviour of individuals
whereby they guide people or their activities in organising
efforts”. Chester Barnard
It implies:
– It is a continuous process.
– Essentially a process of influencing.
– Basically a personal quality.
– A continuous motivation process.
– Functioning of a common goals determines leader follower relationship.

105. NECESSITY
Motivating Employees.
Creating Confidence.
Building Morale.
Developing Team Work.
Securing Group Effectiveness.
Counselling People.

106. STYLES OF LEADERSHIP
Autocratic Leadership
Participative Leadership
Free-rein Leadership
Autocratic Leadership
Authoritarian, directive or nomothetic style.
Ultra-utilization of power.
Result may be negative leadership.
Types of Autocratic Leadership
Strict Autocrat
Benevolent Autocrat
Incompetent Autocrat

107. Participative Leadership
Democratic, consultative or ideographic style.
Team building and goal sharing.
Consultation and participation of subordinates.
Decentralised decision - making process.
Free-rein Leadership
Super democratic style.
Policy of no intervention.
Manager’s only contribution in framing policy
programmes and limitation.
Manager only maintains a contact.

108. Leadership Theories
Trait Theories.
Behavioural Theories.
Contingency Theories.
Situational Theories.
LMX Theory.
Leadership-participation Theory.
Path-Goal Theory.

109. LEADERSHIP AS A CONTINUUM
Leadership in a practical world is between two
extremes of autocratic and free-rein.
Tannenbaum and Schmidt proposed a continuum
moving from authoritarian leadership behaviour to
free-rein.
Autocratic Free-rein
(boss centered (subordinate centered
leadership) leadership)
Use of authority by the
Manager
Area of freedom for
subordinates
Manager takes Manager presents ideas Manager presents Manager permits
decisions and and invities suggestions problems, gets subordinates of
announces suggestions and function within limits
makes decisions defined by superior
Manager sells Manager presents Manager defines
decisions tentative decision limits, asks groups to
subject to change make decision

110. DIFFERENCES BETWEEN MANAGER AND
LEADER
“Managers are people who do things right, and leaders are
people who do the right thing. Management’s efficiency lies
in climbing the ladder of success, leadership determines
whether the ladder s leaning against the right wall”.
Warren Bennis and Burt Nanus
LEADERSHIP MANAGEMENT
1. Leader leads people. 1. Manager manages things.
2. Leader can use his/her 2. Managers hold formal
informal influence. position.
3. Leaders create a vision and 3. Managers achieve results by
inspire others to achieve this directing the activities of
vision. others.
4. Leader processes non- 4. Manager enjoys formal
sanctioned influences ability. designated authority.
5. Leader inspires enthusiasm. 5. Manager engenders fear.

111. Way to Effective Leadership
Finding the Leader in You
 Starting to Communicate
 Motivating People
 Expressing Genuine Interest in others
 Seeing Things from the Other Person’s point of view
 Listening to Learn
 Teaming up for Tomorrow
 Respecting the dignity of others
 Recognition, Praise, and Rewards
 Handling Mistakes, Complaints, and Criticism
 Setting Goals
 Focus and Discipline
Achieving Balance
Creating a Positive Mental Attitude
Learningnot to worry
The Power of Enthusiasm

112. Organisational Change
“Organisational Change is the process by which
organisations move from their present state to some
desired future state to increase their effectiveness”
Gareth. R. Jones
Org Level Forces
Org structure Group level Forces
Org Cultureion Group Norms
Org Strategy & Group Cohesiveness
Over Determination Groupthink
Sources of
Change
Individual Level Forces
Cognitive Biases
Sub Unit Level Forces Uncertainty
Differences in Orientation Fear of Loss
Power & Conflict Selective Perception
Habit
Logical Reasons

113. Planned & Unplanned Change
Planned change are the activities that are
intentional and goal oriented
First order change – Linear and Continuous
Second order change – that is multidimensional
multilevel, continuous and radical
Change Agents: Can be managers or non
managers, employees or consultants
Change agents can change structure,
technology, physical setting and people

114. Force Field Analysis Model
Restraining
Desired Forces
Conditions
Restraining
Forces Driving
Forces
Restraining
Forces
Current Driving
Conditions Forces
Driving
Forces
Before During After
Change Change Change

115. Resistance to Change
Nature of the Workforce
Technology
Economic Shocks
Forces for
Change
Competition
Social Trends
World Politics

116. Creating an Urgency for
Change
Inform employees about driving forces
Most difficult when organization is doing
well
Must be real, not contrived
Customer-driven change
– Adverse consequences for firm
– Human element energizes employees

117. Minimizing Resistance to
Change
CommunicationHighest priority and
first strategy for
change
Improves urgency to
change
Reduces uncertainty
(fear of unknown)
Problems -- time
consuming and costly

119. Minimizing Resistance to
Change
Communication Increases ownership of
change
Training
Helps saving face and
Employee
Involvement
reducing fear of
unknown
Includes task forces,
search conferences
Problems -- time-
consuming, potential
conflict

120. Minimizing Resistance to
Change
Communication When communication,
training, and
Training involvement do not
Employee resolve stress
Involvement
Potential benefits
Stress – More motivation to
Management
change
– Less fear of unknown
– Fewer direct costs
Problems -- time-
consuming, expensive,

121. Minimizing Resistance to
Change
Communication
Training When people clearly
lose something and
Employee
Involvement
won’t otherwise
support change
Stress
Management Influence by
Negotiation
exchange-- reduces
direct costs
Problems
– Expensive
– Increases compliance,

122. Minimizing Resistance to
Change
Communication
Training
When all else fails
Employee
Involvement Assertive influence
Stress
Management
Firing people -- radical
form of “unlearning”
Negotiation
Problems
– Reduces trust
Coercion
– May create more subtle
resistance

123. Refreezing the Desired
Conditions
Realigning organizational systems and
team dynamics with the desired
changes
– Alter rewards to reinforce new
behaviours
– Feedback systems
Help employees learn how they are
doing
Provide support for the new behaviour
patterns

124. Strategic Vision & Change
Need a vision of the
desired future state
Minimizes employee fear
of the unknown
Clarifies role perceptions

125. Change Agents
Anyone who possesses
enough knowledge and
power to guide and
facilitate the change
effort
Change agents apply
transformational
leadership
– Help develop a vision
– Communicate the vision
– Act consistently with the
vision
– Build commitment to the
vision

126. Successfully Diffusing Change
Successful pilot project
Receives visibility
Top management support
Labour union involvement
Diffusion strategy described clearly
Pilot project people moved to other areas

127. Action Research Philosophy
Change needs both action and
research focus
Action orientation
– Solve problems and change the
organizational system
Research orientation
– Concepts guide the change
– Data needed to diagnose problem,
identify intervention, evaluate change

128. Action Research Process
Establish
Client-
Consultant
Relations
Diagnose Evaluate/
IntroAduce
Need for Stabilize
Change
Change Change
Disengage
Consultant’s
Services

129. Appreciative Inquiry Philosophy
Directs the group’s
attention away from its
own problems and
focuses participants on
the group’s potential
and positive elements.
Reframes relationships Courtesy of Amanda Trotsen-Bloom
around the positive
rather than being
problem oriented

130. Appreciative Inquiry Process
Discovery Dreaming Designing Delivering
Forming Engaging in Developing
Discovering
ideas about dialogue objectives
the best of
“what might about “what about “what
“what is”
be” should be” will be”

131. Parallel Learning Structure
Philosophy
Highly participative social structures
Members representative across the formal
hierarchy
Sufficiently free from firm’s constraints
Develop solutions for organizational
change which are then applied back into
the larger organization

132. Parallel Learning Structures
Parallel
Organization
Structure

133. Cross-Cultural and Ethical
Concerns
Cross-Cultural Concerns
– Linear and open conflict assumptions
different from values in some cultures
Ethical Concerns
– Privacy rights of individuals
– Management power
– Individuals’ self-esteem
– Consultant’s role

134. Communication
Communication may be understood as the process of
exchanging information and understanding between
people
Significance:
a. Control member behaviour
b. Fosters motivation
c. Provides Information
d. Changing people’s attitudes
e. Essence of social behaviour
f. Role in knowledge management Proemics
Types of Communication:
a. Verbal Kinesics
b. Non Verbal
c. Written
Para language

135. Organisational Communication
Factors Influencing Organisational Communication
a. Formal channel of communication
b. Authority structure
c. Job specialisation
d. Information ownership
Communication Flows
a. Downward communication
b. Upward communication
c. Lateral communication
d. Diagonal communiaction
e. External communication

136. Communication Networks
Wheel Network Chain Network Y Network
A A B
A
B
D E B
C C
C
D D
All Channel Network
A E
E A Circle Network
B
E E B
D C D C

137. Communication Roles
a. Gatekeepers
b. Liasons
c. Isolates
d. Cosmopolites
Informal Communication ( Grapevine )
a. Chain System
b. Cluster System
c. Gossip Sustem

138. Communication Process
Source
Message
Encoding F
E
Message E
D
Channel
B
Message A
C
Decoding
K
Message
Reciever

139. Communication Barriers
Sender Related Barriers:
Communication Goals
Communication Skills
Interpersonal Sensitivity
Differing frames of reference
Improper Diction
Inconsistent Non – Verbal Signals
Fear
Sender Credibility
Receiver Related Barriers
Selective & Poor Listening
Evaluating the Source
Perceptions
Lack of responsive feedback
Meta communication

140. Situation Related Barriers:
a. Jargon
b. Information Overload
c. Time Pressure
d. Communication Climate
e. Noise
f. Distance
g. Mechanical Failure
h. Murphy’s Law of Communication
Overcoming the Barriers:
Sender’s Responsibility
a. Setting communication goals
b. Using appropriate language
c. Using empathic communication
d. Improving Coommunicator’s Credibility
e. Using face to face communication
f. Encouraging feedback

141. g. Using a correct amount of redundancy
h. Developing trusting climate
i. Using picture
Receiver's Responsibility:
a. Effective Listening ( Barriers to effective listening ):
i. Physiological Limitation
ii. Inadequate background information
iii. Selective memory
iv. Selective expectation
v. Fear of being influenced or persuaded
vi. Bias and pre judgment
vii. Selective perception
viii.Influence from emotions
ix. Avoiding evaluative judgement
x. Providing responsive feedback

142. International OB
Trends in International Business
 International joint ventures, Multinational mergers &
Acquisitions and global strategic alliances
 More earning from international business than domestic
ABB, Honda, BP, Siemens, Motorola and Eastman kodak
functioning in more than 50 countries
 Most assets owned by different nationalities
 Trade volume growing since WW II from $51 Billion to $415
Billion in 1972 and since then $18 trillion till recent times

143. Cultural Similarities & Differences
Cultural Norms, Values, cultural symbols, stories and rituals
vary from nation to nation
Japanese Arabs
Americans Belongingness Family Security
Freedom Group Harmony Family Harmony
Independence Collectiveness Parental Guidance
Self – Reliance Age / Seniority Age
Equality Group Consensus Authority
Individualism Cooperation Compromise
Competition Quality Devotion
Efficiency Patience Very Patient
Time Indirectness Indirectness
Directness Go Between Hospitality
Openness Interpersonal Friendship
Aggressiveness Hierarchy Formal/Admiration
Informality Continuation Past & Present
Future Orientation Conservative Religious Belief
Risk – Taking Information Tradition
Creativity Group Achievement Social Recognition
Self Accomplishment Success Reputation
Winning Relationship Friendship
Money Harmony with Nature Belongingness
Material Possessions Networking Family Network
Privacy

144. Cultural Clusters
Anglo Latin American Arab
Australia Abu Dhabi
Argentina
Canada Bahrain
Chile
Ireland Kuwait
Columbia
New zealand Oman
Mexico
South Africa Saudi Arabia
Peru
UK UAE
Venezuela
USA Far Eastern
Latin European Hong Kong
Nordic Belgium Indonesia
Denmark France Malaysia
Finland Italy Philippines
Norway Portugal Singapore
Sweden Spain Taiwan
Thailand
Near Eastern Vietnam
Germanic
Austria
Greece Independent
Iran Brazil
Germany
Turkey India
Switzerland
Portugal Israel Japan
Spain

145. HR Practices
• Hourly Wage rates in Mexico plays little role as it is
mandatory for the employers to pay wages for 365 days
• In Aus and Brazil employees get 1 month leave for one yr of
work
• In Japan seniority is the basis of promotions and
performance
• In UK maternity leave is 40 weeks 18 of these paid
•In sweden 87% of companies HR managers are on board of
directors

146. Hofstede’s Cultural Dimension
• Power Distance – is the extent to which less powerful
members of institutions of and organizations accept that
power is distributed unequally
• Uncertainty Avoidance – is the extent to which people feel
threatened by ambiguous situations, and have certain beliefs
and institutions that try to avoid these
• Individualism – is the tendency of people to look after
themselves and their family
• Masculinity – refers to a situation in which the dominant
values in a society are success, money, and other material
things
• Cultural Diversity – Source of energy - can be great source
of energy and organizational effectiveness

147. Motivation Across Cultures
American Japanese Arab
•Management Styles Leadership, Friendliness Persuasion, Coaching, Personal
Functional attention, Parenthood
Group activities
• Control Independence, Decision Of parents
Making, Space, Time, Group Harmony parenthood
Money
• Emotional Appeal Opportunity Religion, Nationalistic,
Group Participation; Admiration
Company Success
•Recognition Individual Contribution Individual Status,
Group Identity, Belong Class society,
Ing to group Promotion
•Material Awards Salary, Commission, Gift for selffamily
Profit – Sharing Annual Bonus, Social Family affair, salary
Services, Fringe increase
Benefits
•Threats Loss of Job Demotion
Out of Group
Competition; Risk Taking Reputation, Family
•Cultural Values Material Possession; Group harmony, security, Religion,
Freedom Achievement, Social Status

148. Compensation Across Cultures
Japanese get paid more than three times the wages of other Asian
countries like Korea, Singapore, Taiwan
Korean & Japanese workers expect bonuses twice a year
In, Denmark more than 80% of employees belong to trade unions
In Germany a minimum 18 days paid annual leave is mandatory
In India
MNC employees are paid more for identical work
Distinction in salaries in different industries for identical works
Huge gaps between employees of organized and unorganized sectors
Distinction between salaries of public and private sector organizations
In Govt. sector salary gaps between different departments

149. Assignments Choice Stock
Purchase
Customize
Core
Competitive Cash
Flexible Performance Based Base /Bonus
Schedules Employability
Work Challenges
Tax Benefit Choices
Base/ Bonus
Deferral Mix
MNC Pay Schedules
Phases of Cultural Adjustment
Phase 1 – Expatriate experiences range of emotions
Phase 2 – Crisis / Shock leading to negative appraisals
Phase 3 - Psychological adjustment for the expatriate
Phase 4 – Adjustment to the new environment

150. Leadership across Cultures
Emotional Intelligence individual & social
1. Self Awareness National Context National Context
Culture influences Cultural Influences
2. Self Regulation
Worker needs and Worker Needs &
3. Motivation expectations Expectations
4. Empathy Subordinate
5. Social Skills Characteristics
Needs
Achievement
Motivation Leader Behaviors
Subordinate Motivation &Traits
Work Setting
Nature of tasks
Organizational structure National Context
Outcomes Nature of work group
Performance culture and
Satisfaction educational training
National Context define leader
Cultural institutions preferences for
Influence organizations behaviors and
and group structures traits

151. Leadership Across Cultures
Universalism in Leadership
 Articulates a Vision
 Breaks from the Status Quo
 Provides goals and a plan
 Gives meaning or a purpose to goals
 Takes risks
 Is motivated to lead
Builds a power base
 Demonstrates high ethical and moral standards
Multicultural Teams
 Token Teams – One member from one culture
 Bicultural Teams – Members from two cultures
 Multicultural Teams – Members from three or more cultures
Managing Culturally Diverse Teams
 Task – related selection
 Establishing a vision
 Equalizing

152. Negotiating Globally
When to Negotiate
Power
Value of Relationship Time Distribution
Strategy Commitment
Exchange Available Yours/Theirs
Sufficiently
Negot High Very Very
Important Low High
iate Important Low
Bargain
Take it
Un Un Very Very
or Low Low
Important Important Low High
Leave it

153. Steps in International Negotiations
Step 1
Preparation Negotiating Tactics
•Promise
Step 2 • Threat
Building the Relati • Recommendation
ship • Warning
•Reward
Step 3
Exchange of Infor • Punishment
mation and first offer • Normative Appeal
• Commitment
Step 4
Persuasion
• Self – Disclosure
• Question
Step 5 • Command
Concessions
Step 6
Agreement

154. Communicating Across Cultures
 Language and Culture
1. High & Low Context Languages – in which people state
things directly and explicitly are low context language
and indirectly and implicitly is high context language
2. Use of Interpreters
3. Non – Verbal Communication – facial gestures, voice,
intonation, physical distance, smile, battling of eyelid,
kiss, handshake, and silence