Organisational Behaviour subject

Organisational Behaviour subject
Hi there, this is like question for the assignment. Each week you have to answer for 200 words. Please write the answer in every week and not all the same time in 1 paragraph. Please email me if you need something. Thank you

I will upload the lecturer slide for every week to get a better idea for the topic.

Week 5 (Perception)

Choose a film that you have seen recently, and which you particularly enjoyed. (you can choose any film that you want and just state the name of the film.)

Question:

Discuss your views of that particular film. What factors (age, sex, background, education, interest, values and beliefs, political views, past experience) can you identify that explain the differences in perception between you and your friend or colleague?

Week 6 (Motivation)

Visit http://ift.tt/1ttt1ky and take a look at the UK’s 50 best places to work, as well as the 100 best workplaces in Europe.

Question:

Find out what these companies do to motivate their staff.

Week 8 (Leadership)

Task

Watch the following video:

http://www.youtube.com/watch?v=XKUPDUDOBVo (Ten Leadership Theories in 5 minutes)

Question:

Answer the following questions:

What is the difference between trait and behaviour theories of leadership? are the theories valid?
2.How can organisations select and develop effective leaders? provide 1 example.

Week 11 (Organisational Change)

(you can make up something for this question as long as it connects to what the question ask)

Answers the following questions:

1. Identify three to five sustaining innovationsthat have affected you over the past year.
Identify three to five disruptive innovationsthat have affected you. Did you welcome these innovations because they were Beneficial’s, or did you have cause to complain?
Week 12 (Cultures)

(you can write anything for this question as long as it connects to what the question ask)

Based on your studies of Organisational Behaviour in the past 11 weeks, explain whether interpersonal skills, motivation, group behaviour, leadership style, conflict management, structure, predominant leadership style, training and HRM practices are all culturally relative.

HC 1052 Organisational Behaviour LECTURE 5 Perception and Individual Decision Making Holmes Institute, 2016 2 Learning Objectives Lecture’s Learning Objectives: • Explain how two people can see the same thing &interpret it differently. • List three determinants of attribution. • Describe how shortcuts can assist in or distort our judgment of others. • Explain how perception affects the decision-making process. • Outline the six steps in the rational decision-making model. • Describe the actions of a bounded-rational decision maker. • List and explain the common decision biases or errors. • Identify the conditions in which individuals are most likely to use intuition in decision making. • Contrast the three ethical decision criteria. What Do You See? Holmes Institute, 2016 3 Perception Holmes Institute, 2016 4 Holmes Institute, 2016 5 What Is Perception, and Why Is It Important? Perception A process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment.  People’s behaviour is based on their perception of what reality is, not on reality itself.  The world as it is perceived is the world that is behaviourally important. Who Is This? Holmes Institute, 2016 6 Holmes Institute, 2016 7 Factors that Influence Perception Holmes Institute, 2016 8 Distinctiveness: Shows different behaviours in different situations. Consensus: Response is the same as others to same situation. Consistency: Responds in the same way over time. Attribution Theory When individuals observe behaviour, they attempt to determine whether it is internally or externally caused. Person Perception: Making Judgments About Others Attribution Theory  So, let`s review a few examples. Attribution Theory Holmes Institute, 2016 9 Holmes Institute, 2016 10 Fundamental Attribution Error The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behaviour of others In general, we tend to blame the person first, not the situation. Errors and Biases in Attributions (1/2) Holmes Institute, 2016 11 Self-Serving Bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors Thought: When students get an ‘A’ on an exam, they often say they studied hard. But when they don’t do well, how does the self-serving bias come into play? Hint: Whose fault is it usually when an exam is ‘tough’? Errors and Biases in Attributions (2/2) Holmes Institute, 2016 12 Selective Perception People selectively interpret what they see on the basis of their interests, background, experience, and attitudes. Shortcuts Used Judging Others (1/3) Selective Perception Holmes Institute, 2016 13 Holmes Institute, 2016 14 Halo Effect Drawing a general impression about an individual on the basis of a single characteristic Contrast Effects Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics Shortcuts Used Judging Others (2/3) Holmes Institute, 2016 15 Projection Attributing one’s own characteristics to other people Stereotyping Judging someone on the basis of one’s perception of the group to which that person belongs Shortcuts Used Judging Others (3/3) Holmes Institute, 2011 16 Specific Applications in Organisations  Employment Interview  Perceptual biases of raters 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.  Ethnic Profiling  A form of stereotyping in which a group of individuals is singled out—typically on the basis of race or ethnicity— for intensive inquiry, scrutinising, or investigation  Performance Evaluations  Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance. Holmes Institute, 2016 17 Perception of the Decision Maker Outcomes Problem A perceived discrepancy between the current state of affairs and a desired state Decisions Choices made from among alternatives developed from data perceived as relevant Link Between Perceptions & Individual Decision Making Holmes Institute, 2016 18 Model Assumptions:  Problem clarity  Known options  Clear preferences  Constant preferences  No time or cost constraints  Maximum payoff Rational decision-making model Describes how individuals should behave in order to maximise some outcome Assumptions of the Rational Decision-making Model Holmes Institute, 2016 19 1. Identify that a decision is required 2. Define the problem 3. Identify the decision criteria 4. Allocate weights to the criteria 5. Develop the alternatives 6. Evaluate the alternatives 7. Select the best alternative. 7 Steps in the Rational Decision-making Model Holmes Institute, 2016 20 Assumptions of the Rational Decision-making Model  Problem clarity  Known options  Clear preferences  Constant preferences  No time or cost constraints  Maximum payoff Decision Making  Henry Mintzberg & Decision-Making Mintzberg – Decision-Making Holmes Institute, 2016 21 Holmes Institute, 2016 22 Creativity The ability to produce novel and useful ideas Three-Component Model of Creativity Proposition that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation Three Components of Creativity Holmes Institute, 2016 23 How are decisions actually made in organisations? Bounded Rationality Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity. Decision making in organisations (1/2) Holmes Institute, 2016 24  How/Why problems are identified  Visibility over importance of problem • Attention-catching, high profile problems • Desire to ‘solve problems’  Self-interest (if problem concerns decision maker)  Alternative Development  Satisficing: seeking the first alternative that solves the problem  Engaging in incremental rather than unique problem-solving through successive limited comparison of alternatives to the current alternative in effect Decision making in organisations (2/2) Holmes Institute, 2016 25 Common Biases and Errors (1/3)  Overconfidence Bias Believing too much in our own ability to make good decisions  Anchoring Bias Using early, first received information as the basis for making subsequent judgments  Confirmation Bias Using only the facts that support our decision Holmes Institute, 2016 26 Common Biases and Errors (2/3)  Availability Bias  Using information that is most readily at hand • Recent • Vivid  Representative Bias  ‘Mixing apples with oranges’  Assessing the likelihood of an occurrence by trying to match it with a pre-existing category using only the facts that support our decision  Winner’s Curse  Highest bidder pays too much  Likelihood of ‘winner’s curse’ increases with the number of people in auction Holmes Institute, 2016 27 Common Biases and Errors (3/3)  Escalation of Commitment  In spite of new negative information, commitment actually increases  Randomness Error  Creating meaning out of random events  Hindsight Bias  Looking back, once the outcome has occurred, and believing that you accurately predicted the outcome of an event Holmes Institute, 2016 28 Intuition and Decision Making Intuitive Decision-Making: An unconscious process created out of distilled experience  Conditions Favouring Intuitive Decision Making: • A high level of uncertainty exists • There is little precedent to draw on • Variables are less scientifically predictable • ‘Facts’ are limited • Facts don’t clearly point the way • Analytical data are of little use • Several plausible alternative solutions exist • Time is limited and pressing for the right decision Holmes Institute, 2016 29 Individual Differences in Decision Making  Personality  Aspects of conscientiousness • Achievement striving (likely to escalate commitment) • Dutifulness (less likely to escalate commitment)  High self esteem  High self serving bias  Gender  Generally, women tend to analyse decisions more than men. Holmes Institute, 2016 30 Organisational Constraints on Decision Makers  Performance Evaluation  Evaluation criteria influence the choice of actions  Reward Systems  Decision-makers make action choices that are favoured by the organisation  Formal Regulations  Organisational rules and policies limit the alternative choices of decision makers  System-imposed Time Constraints  Organisations require decisions by specific deadlines  Historical Precedents  Past decisions influence current decisions Holmes Institute, 2016 31 Cultural Differences in Decision Making  Problems selected  Time orientation  Importance of logic and rationality  Belief in the ability of people to solve problems  Preference for collective decision making Holmes Institute, 2016 32 Ethics in Decision Making (1/2) Ethical Decision Criteria  Utilitarianism Seeking the greatest good for the greatest number  Rights Respecting and protecting basic rights of individuals such as whistleblowers  Justice Imposing and enforcing rules fairly and impartially Holmes Institute, 2016 33 Ethics in Decision Making  Ethics and National Culture There are no global ethical standards. The ethical principles of global organisations that reflect and respect local cultural norms are necessary for high standards and consistent practices Ethics in Decision Making Holmes Institute, 2016 34 Holmes Institute, 2016 35  Analyse the situation and adjust your decisionmaking style to fit the situation.  Be aware of biases and try to limit their impact.  Combine rational analysis with intuition to increase decision-making effectiveness.  Don’t assume that your specific decision style is appropriate to every situation.  Enhance personal creativity by looking for novel solutions or seeing problems in new ways, and using analogies. Improving Decision Making Holmes Institute, 2016 36 Source: S.P. Robbins, Decide & Conquer: Making Winning Decisions and Taking Control of Your Life (Upper Saddle River, NJ: Financial Times/Prentice Hall, 2004), pp. 164–68. Towards Reducing Bias and Errors Focus on goals Clear goals make decision making easier and help to eliminate options inconsistent with your interests. Look for information that disconfirms beliefs Overtly considering ways we could be wrong challenges our tendencies to think we’re smarter than we actually are. Don’t try to create meaning out of random events. Don’t attempt to create meaning out of coincidence. Increase your options The number and diversity of alternatives generated will increase the chance of finding an outstanding one. Holmes Institute, 2016 37 If all of these perceptual shortcuts happen unconsciously, how can we keep the stereotypes we have from interfering with the way we work in group projects? Identify two specific things you could do to help prevent stereotypes from inhibiting effective group relationships. Reflection: Perception Holmes Institute, 2016 38 Lecture Summary REMEMBER…  Perception and Attribution Theory  Judging others, errors and biases  Decision Making in the workplace  6 Step Model  Errors and Basis  Intuition, Cultural Difference and Ethics LOOKING AHEAD … NEXT WEEK: Motivation: Theory & Practice

HC 1052 Organisational Behaviour LECTURE 6 Motivation – Theory & Practice Holmes Institute, 2016 2 Lecture’s Learning Objectives: • Outline the motivation process • Describe Maslow’s need hierarchy • Differentiate motivators from hygiene factors • List the characteristics that high achievers prefer in a job • Summarise the types of goals that increase performance • Discuss ways self-efficacy can be increased • State the impact of under-rewarding employees. • Clarify key relationships in expectancy theory. • Explain how the contemporary theories of motivation complement each other. Learning Objectives (1/2) Holmes Institute, 2016 3 Lecture’s Learning Objectives: • Discuss the ways in which employees can be motivated by changing the work environment. • Explain why managers might want to use employee involvement programs. • Discuss how the different types of variable-pay programs can increase employee motivation. • Describe the link between skill-based pay plans and motivation theories. • Explain how flexible benefits turn benefits into motivators. Learning Objectives (2/2) Motivation Holmes Institute, 2016 4 Holmes Institute, 2016 5 Key Elements  Intensity: How hard a person tries  Direction: Toward beneficial goal  Persistence: How long a person tries Motivation The processes that account for an individual’s intensity, direction, and persistence of effort towards accomplishing a goal. What Is Motivation? (2/2) 6 Direction Intensity Persistence What Is Motivation? (1/2) Motivation Holmes Institute, 2016 7 Holmes Institute, 2016 8 Hierarchy of Needs Theory:  Develop by Abraham Maslow. Considered to be the most popular motivation theory.  There is a hierarchy of five needs: Physiological, Safety, Social, Self-esteem, and Self-actualisation.  One set of needs must be satisfied prior to the following set. Hierarchy of Needs Theory (Maslow) Holmes Institute, 2016 9 Lower-Order Needs Needs that are satisfied externally; physiological and safety needs Higher-Order Needs Needs that are satisfied internally; social, esteem, and self-actualisation needs Maslow’s Hierarchy of Needs Physiological Safety Social Esteem Self – actualisation Holmes Institute, 2016 10 Movement Up the Pyramid Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied. Individuals therefore must move up the hierarchy in order. Maslow Application A homeless person will not be motivated to meditate. Assumptions of Maslow’s Hierarchy McGregor`s Theory X & Y 11 Theory X Managers See Workers as… Disliking Work Avoiding Responsibility Having Little Ambition Theory Y Managers See Workers as… Enjoying Work Accepting Responsibility Self-Directed Holmes Institute, 2016 12  Satisfaction and dissatisfaction are not opposites of the same thing!  Hygiene factors will not lead to motivation.  However, there absence will lead to dissatisfaction. Separate Constructs  Hygiene Factors: Extrinsic and Related to Dissatisfaction  Motivation Factors: Intrinsic and Related to Satisfaction Hygiene Factors: • Salary • Work Conditions • Company Policies Motivators: • Achievement • Responsibility • Growth Herzberg’s Two-Factor Theory Holmes Institute, 2016 13 Need for Achievement  The drive to excel, to achieve in relation to a set of standards, to strive to succeed. Need for Affiliation  The desire for friendly and close personal relationships. Need for Power  The need to make others behave in a way that they would not have behaved otherwise. Bottom Line Individuals have different levels of needs in each of these areas, and those levels will drive their behaviour. David McClelland’s Theory of Needs Holmes Institute, 2016 14 Matching High Achievers and Jobs Holmes Institute, 2016 15 Goal-Setting Theory (Edwin Locke)  Basic Premise: That specific and difficult goals, with self-generated feedback, lead to higher performance.  But, the relationship between goals and performance will depend on:  Goal commitment  ‘I want to do it & I can do it’  Task characteristics (simple, well-learned)  National culture Holmes Institute, 2016 16 Goal Setting in Action: MBO Programs  Management By Objectives Programs Company wide goals and objectives Goals aligned at all levels Based on Goal Setting Theory MBO encompasses specific goals, participatively set, for an explicit time period, with feedback on goal progress MBO Key Elements • Goal specificity • Participative decision making • An explicit time period • Performance feedback Holmes Institute, 2016 17 MBO Goal-Setting Theory Goal Specificity Yes Yes Goal Difficulty Yes Yes Feedback Yes Yes Participation Yes No (qualified) Linking MBO and Goal-Setting Theory NOTE: MBO fails…. •Unrealistic expectations about MBO results •Lack of commitment by top management •Failure to allocate reward properly •Cultural incompatibilities Holmes Institute, 2016 18 Self-Efficacy  Self Efficacy:  An individual’s feeling that s/he can complete a task (e.g. ‘I know I can!’) Enhances probability that goals will be achieved. Not to be confused with:  Self-esteem, which is: Individuals’ degree of liking or disliking themselves. Holmes Institute, 2011 19 Joint effects of goals and self-efficacy on performance Exhibit 7.5 Holmes Institute, 2016 20 Reinforcement Theory  Reinforcement theory argues that behaviour is a function of its consequences  Assumptions: Behaviour is environmentally caused. Behaviour can be modified (reinforced) by providing (controlling) consequences. Reinforced behaviour tends to be repeated. Equity Theory Holmes Institute, 2016 21 Equity Theory Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. Holmes Institute, 2016 22 Equity Theory (cont’d)  Choices for dealing with inequity: Change inputs (slackening off) Change outcomes (increase output) Distort/change perceptions of self Distort/change perceptions of others Choose a different referent person Leave the field (quit the job) Holmes Institute, 2016 23 Equity Theory (cont’d)  Propositions relating to inequitable pay:  Over-rewarded hourly employees produce more than equitably rewarded employees.  Over-rewarded piece-work employees produce less, but do higher quality piece work.  Under-rewarded hourly employees produce lower quality work.  Under-rewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees. Holmes Institute, 2011 24 Model of Organisational Justice Holmes Institute, 2016 25 Expectancy Theory Bottom Line  All three links between the boxes must be intact or motivation will not occur. Thus,  Individuals must feel that if they try, they can perform  If they perform, they will be rewarded  When they are rewarded, the reward will be something they care about. Holmes Institute, 2016 26 Characteristics: • Skill variety • Task identity • Task significance • Autonomy • Feedback Job Characteristics Model: Identifies five job characteristics and their relationship to personal and work outcomes Job Design Theory Motivating employees Motivation at Google Holmes Institute, 2016 27 Holmes Institute, 2016 28 Job Design and Scheduling  Job Rotation The periodic shifting of a worker from one task to another  Job Enlargement The horizontal expansion of jobs  Job Enrichment The vertical expansion of jobs Holmes Institute, 2016 29 Guidelines for Enriching a Job Holmes Institute, 2011 30 Alternative Work Arrangements  Increasingly important as employees demand work/life integration.  Flextime: Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours.  Job Sharing: Practice of having two or more people split a 40-hour-a-week job. Holmes Institute, 2016 31 Categories of Telecommuting Jobs  Routine information-handling tasks  Mobile activities  Professional and other knowledgerelated tasks Telecommuting: Employees do their work at home on a computer that is linked to their office. Alternative Work Arrangements, cont. Holmes Institute, 2016 32  Advantages Larger labour pool Higher productivity Less turnover Improved morale Reduced officespace costs  Disadvantages (Employer) Less direct supervision of employees Difficult to coordinate teamwork Difficult to evaluate non-quantitative performance Telecommuting Activity-Based Work (Hot Desking)  No fixed space to work in the office.  Organisations include: Macquarie Bank, CBA & AMP. Holmes Institute, 2016 33 Holmes Institute, 2016 34 What Is Employee Involvement? Employee Involvement Program (EIP)  Participative process that uses the entire capacity of employees and is designed to encourage increased commitment to the organisation’s success. EI Ps include Participative Management Representative Participation Works Councils Board Representative Quality Circle Holmes Institute, 2016 35 Rewarding Employees: Four Aspects 1. What to Pay? (Internal vs. external equity) 2. How to Pay? (e.g., Piece rate, merit based, bonuses, profit sharing, gain sharing, ESOPs, skill-based pay) 3. What Benefits to Offer? (e.g., Flexible benefits) 4. How to recognise Employees? Holmes Institute, 2016 36 Rewarding Employees: Variable Pay Programs Variable Pay Programs  A portion of an employee’s pay is based on some individual and/or organisation measure of performance.  Piece rate pay plans  Profit sharing plans  Gain sharing plans Holmes Institute, 2016 37 Rewarding Employees Employee Share Ownership Plans (ESOPs)  Company-established benefit plans in which employees acquire shares as part of their benefits. Holmes Institute, 2016 38 Employee Recognition Programs  Intrinsic rewards: Stimulate Intrinsic Motivation  Personal attention given to employee  Approval and appreciation for a job well done  Growing in popularity and usage  Benefits of Programs  Fulfil employees’ desire for recognition  Inexpensive to implement  Encourages repetition of desired behaviours  Drawbacks of Programs  Susceptible to manipulation by management Holmes Institute, 2016 39 Implications for Managers In Order to Motivate Employees…  Say Thank you more often (It costs nothing).  Recognise individual differences.  Allow employees to participate in decisions that affect them.  Link rewards to performance.  Check the system for equity. President Obama – Motivation  Obama – Motivation Holmes Institute, 2016 40 Holmes Institute, 2016 41 Lecture Summary REMEMBER…  Motivational Theories: Maslow, McGregor, McClelland, Locke …  MBO, Goal Setting, Equity, Expectancy Theories  Job Characteristics Model  Job Design Theory & Approaches  Rewarding Performance  Employee Involvement Programs LOOKING AHEAD … NEXT WEEK: Group Behaviour and Teams at Work

1 HC 1052 Organisational Behaviour LECTURE 8 Leadership Holmes Institute, 2011 2 Lecture’s Learning Objectives:  Define leadership, contrast leadership & management.  Summarize the conclusions of trait theories of leadership.  Identify central tenets and limitations of behavioural theories.  Assess contingency theories of leadership by their level of support.  Compare and contrast charismatic and transformational leadership.  Define authentic leadership; show why effective leaders exemplify ethics and trust.  Demonstrate the role of mentoring in leadership.  Address challenges to the effectiveness of leadership.  Assess charismatic and transformational leadership across cultures. Learning Objectives Holmes Institute, 2011 3 What Is Leadership?  Leadership Ability to influence a group toward the achievement of goals  Management Use of authority inherent in designated formal rank to obtain compliance from organisational members  Both are necessary for organisational success 2 Holmes Institute, 2011 4 Trait Theories of Leadership Trait Theories  Consider personality, social, physical, or intellectual traits to differentiate leaders from non-leaders  Are not very useful until matched with the Big Five Personality Framework (see lecture 3)  Essential Leadership Traits  Extroversion  Conscientiousness  Openness  Emotional Intelligence (Qualified)  Traits can predict leadership, but they are better at predicting leader emergence than effectiveness. Holmes Institute, 2011 5 Behavioural Theories of Leadership Behavioural Theories  Propose that specific behaviours differentiate leaders from non-leaders Differences between theories of leadership: Trait theory: leadership is inherent, so we must identify the leader based on his or her traits Behavioural theory: leadership is a skill set and can be taught to anyone, so we must identify the proper behaviours to teach potential leaders Holmes Institute, 2011 6 Important Behavioural Studies • Initiating structure Ohio • Consideration • Employee-oriented • Productionoriented Michigan 3 Holmes Institute, 2011 7 Contingency Theories  Trait and behaviour theories help us understand leadership – however, an important component is missing: the environment in which the leader exists  Contingency Theory adds this additional aspect to our understanding leadership effectiveness studies Three key Contingency theories:  Fiedler’s Model  Hersey and Blanchard’s Situational Leadership Theory  Path-Goal Theory Holmes Institute, 2011 8 Fiedler Model Fiedler’s Model  Effective group performance depends on match between leadership style and the degree to which the situation gives the leader control.  Assumes that leadership style (based on orientation revealed in LPC questionnaire) is fixed  Considers Three Situational Factors:  Leader-member relations: degree of confidence and trust in the leader  Task structure: degree of structure in the jobs  Position power: leader’s ability to hire, fire, and reward  For effective leadership: must change to a leader who fits the situation or change the situational variables to fit the current leader Holmes Institute, 2011 9 Graphic Representation of Fiedler’s Model Used to determine which type of leader to use in a given situation 4 Holmes Institute, 2011 10 Fiedler’s Cognitive Resource Theory Refinement of Fiedler’s original model:  Focuses on stress as the enemy of rationality and creator of unfavorable conditions  A leader’s intelligence and experience influence his or her reaction to that stress Research is supporting the theory. Stress Level • Low • High Intellectual Abilities • Effective • Ineffective Leader’s Experience • Ineffective • Effective Holmes Institute, 2011 11 Assessment of Fiedler’s Model  Positives:  Considerable evidence supports the model, especially if the original eight situations are grouped into three • Problems: • The logic behind the LPC scale is not well understood • LPC scores are not stable • Contingency variables are complex and hard to determine Holmes Institute, 2011 12 Situational Leadership Theory Situational Leadership  Model focusing on follower “readiness”  Followers can accept or reject the leader  Effectiveness depends on followers’ response to leader’s actions  “Readiness” is the extent to which people have the ability and willingness to accomplish a specific task Ability to follow Willingness to follow Leadership behaviour Unable Unwilling Give clear and specific directions Unable Willing Display high task orientation Able Unwilling Use a supportive and participatory style Able Willing Doesn’t need to do much 5 Holmes Institute, 2011 13 House’s Path -Goal Theory Path -Goal Theory:  Builds on Ohio State studies & Expectancy Theory  Path Goal Theory – Details:  Leaders provide followers with information, support, and resources to help them achieve their goals  Leaders help clarify the “path” to the worker’s goals  Leaders can display multiple leadership types  Four types of leaders:  Directive: focuses on the work to be done  Supportive: focuses on the well-being of the worker  Participative: consults with employees in decision making  Achievement-Oriented: sets challenging goals Holmes Institute, 2011 14 Vroom & Yetton’s Leader -Participation Model  How a leader makes decisions is as important as what is decided  Premise: Situational variables interact with leadership attributes to impact the behaviour of the leader.  Leader behaviours must adjust to the way tasks are structured in the organisation.  This is a normative model that tells leaders how participative to be in their decision making of a decision tree • Five leadership styles • Twelve contingency variables Holmes Institute, 2011 15 Leader -Member Exchange (LMX) Theory In Groups  Members are similar to leader  In the leader’s inner circle of communication  Receives more time and attention from leader  Gives greater responsibility and rewards Out Groups Managed by formal rules and policies Receive less of the leader’s attention / fewer exchanges More likely to retaliate against the organisation 6 Holmes Institute, 2011 16 Charismatic Leadership (1/2)  Charisma: means gift in Greek Vision Personal Risk Sensitivity to Followers Unconventional Behavior Holmes Institute, 2011 17 Charismatic Leadership (2/2) How do charismatic leaders influence followers? Articulate a Vision Create a Vision Statement Create a new set of Values Demonstrate the Vision Holmes Institute, 2011 18 Transformational Leaders  Inspire followers to transcend their self-interests for the good of the organisation • Contingent Reward • Management by Exception (active) • Management by Exception (passive) • Laissez-Faire Transactional • Idealized Influence • Inspirational Motivation • Intellectual Stimulation • Individualized Consideration Transformational 7 Holmes Institute, 2011 19 Leadership Model Transaction Approaches • Laissez-Faire • Management by Exception • Contingent Reward Transformational Approaches • Individualized Consideration • Intellectual Stimulation • Inspirational Motivation • Idealized Influence Holmes Institute, 2011 20 Trust and Leadership  Trust – psychological state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out.  Key attribute associated with leadership  Followers who trust their leader will align their actions and attitudes with the leader’s behaviours/requests Trust Desired Actions Desired Attitudes Holmes Institute, 2011 21 How is Trust Developed? Leadership Action: Integrity, Benevolence, Ability Trust Action: Risk Taking, Information Sharing, Group Effectiveness, and Productivity 8 Holmes Institute, 2011 22 Mentoring – Leading for the Future  Mentor: A senior employee who supports a less experienced employee. Career Functions Helping the protégé gain skills and abilities Lobbying for the protégé to get better assignments Providing exposure to influential individuals in the organization Acting as a sounding board for ideas Psychological Functions Counseling the protégé to bolster his/her confidence Sharing personal experiences with the protégé Providing friendship and acceptance Acting as a role model Holmes Institute, 2011 23 Finding and Creating Effective Leaders Holmes Institute, 2011 24 Global Implications  Leadership theories are primarily studied in English-speaking countries  GLOBE – has some country-specific insights:  Brazilian teams prefer leaders who are high in consideration, participative, and have high LPC scores  French workers want a leader who is high on initiating structure and task-oriented  Egyptian employees value team-oriented, participative leadership, while keeping a high-power distance  Chinese workers may favor a moderately participative style  Leaders should take culture into account  GLOBE Study (18,000 leaders – 800 companies – 62 countries) 9 Holmes Institute, 2011 25 Lecture Summary REMEMBER…  Difference btw Leadership and Management  Traits and Behavioural Theories  Contingency Theories  Fiedler, Situational and Path-Goal Theories  Trust, Charismatic & Transformational Leadership  GLOBE Study & Leadership in the Global Context LOOKING AHEAD … NEXT WEEK: Power and Politics

1 HC 1052 Organisational Behaviour LECTURE 11 Organizational Change & Stress Management Holmes Institute, 2011 2 Lecture’s Learning Objectives:  Identify forces that act as stimulants to change, and contrast planned and unplanned change.  List the forces for resistance to change.  Compare the four main approaches to managing organisational change.  Demonstrate two ways of creating a culture for change.  Define stress and identify its potential sources.  Identify the consequences of stress.  Contrast the individual and organisational approaches to managing stress.  Explain global differences in organisational change and work stress. Learning Objectives Holmes Institute, 2011 3 Forces for Change Change occurs as a result of…  Nature of the Workforce  Greater diversity  Technology  Faster, cheaper, more mobile  Economic Shocks  Global financial crisis  Competition  Global marketplace  Social Trends  Baby boomer retirements 2 Holmes Institute, 2011 4 Planned Change  Change = Making things different  Planned Change  Activities that are proactive and purposeful: an intentional, goal-oriented activity  Goals of planned change Improving the ability of the organisation to adapt to changes in its environment Changing employee behaviour  Change Agents  Persons who act as catalysts and assume the responsibility for managing change activities Holmes Institute, 2011 5 Resistance to Change Resistance to change appears to be a natural and positive state Forms of Resistance to Change:  Overt and Immediate • Voicing complaints, engaging in job actions  Implicit and Deferred • Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism • Deferred resistance clouds the link between source and reaction Holmes Institute, 2011 6 Tactics for Overcoming Resistance to Change  Education and Communication  Show those effected the logic behind the change  Participation  Participation in the decision process lessens resistance  Building Support and Commitment  Counseling, therapy, or new-skills training  Implementing Change Fairly  Be consistent and procedurally fair 3 Holmes Institute, 2011 7 Tactics for Overcoming Resistance to Change  Manipulation and Cooptation  “Spinning” the message to gain cooperation Selecting people who accept change  Hire people who enjoy change in the first place  Coercion  Direct threats and force Holmes Institute, 2011 8 Politics of Change  Impetus for change often from outside change agents: new employees, managers outside the main power structure.  Internal change agents are most threatened by their loss of status in the organisation.  Long-time power holders tend to implement incremental but not radical change.  Outcomes of power struggles in the organisation determine the speed and quality of change. Holmes Institute, 2011 9 Lewin’s Three-Step Change Model  Unfreezing Change efforts to overcome the pressures of individual resistance and group conformity  Refreezing Stabilising a change intervention by balancing driving and restraining forces Unfreeze Move Refreeze 4 Holmes Institute, 2011 10 Lewin: Unfreezing the Status Quo  Driving Forces  Forces that direct behaviour away from the status quo  Restraining Forces  Forces that hinder movement from the existing equilibrium Holmes Institute, 2011 11 Kotter’s Eight-Step Plan Kotter’s Plan of Change  Builds from Lewin’s Model  Implementing change follows 8 steps: 1. Establish a sense of urgency 2. Form a coalition 3. Create a new vision 4. Communicate the vision 5. Empower others by removing barriers 6. Create and reward short-term “wins” 7. Consolidate, reassess, and adjust 8. Reinforce the changes Unfreezing Movement Refreezing Holmes Institute, 2011 12 Action Research  Process steps: 1.Diagnosis 2.Analysis 3.Feedback 4.Action 5.Evaluation  Action research benefits:  Problem-focused rather than solution-centered  Heavy employee involvement reduces resistance to change Action Research: Change process based on systematic collection of data; selection of change action based on what analysed data indicates 5 Holmes Institute, 2011 13 Organisational Development  Organisational Development (OD)  A collection of planned interventions, built on humanistic -democratic values, that seeks to improve organisational effectiveness and employee well -being  OD Values  Respect for people  Trust and support  Power equalisation  Confrontation  Participation Holmes Institute, 2011 14 Six OD Techniques (1/2)  Sensitivity Training  Training groups (T-groups) that seek to change behaviour through unstructured group interaction  Provides increased awareness of others and self  Increases empathy with others, listening skills, openness, and tolerance for others  Survey Feedback Approach  The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested  Process Consultation (PC)  A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement. Holmes Institute, 2011 15 Six OD Techniques (2/2)  Team Building  High interaction among team members to increase trust and openness 5. Intergroup Development  OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other 6. Appreciative Inquiry  Seeks to identify the unique qualities and special strengths of an organisation, which can then be built on to improve performance • Discovery: Recalling the strengths of the organisation • Dreaming: Speculation on the future of the organisation • Design: Finding a common vision • Destiny: Deciding how to fulfill the dream 6 Holmes Institute, 2011 16 Creating a Culture for Change: Innovation 1. Stimulating a Culture of Innovation  Innovation: a new idea applied to initiating or improving a product, process, or service  Sources of Innovation: • Structural variables: organic structures • Long-tenured management • Slack resources • Interunit communication  Idea Champions: Individuals who actively promote the innovation Holmes Institute, 2011 17 Creating a Culture for Change: Learning 2. Learning organisation  An organisation that has developed the continuous capacity to adapt and change Characteristics • Holds a shared vision • Discards old ways of thinking • Views organisation as system of relationships • Communicates openly • Works together to achieve shared vision Holmes Institute, 2011 18 Creating a Learning organisation  Overcomes traditional organisation problems:  Fragmentation  Competition  Reactiveness  Manage Learning by:  Establishing a strategy  Redesigning the organisation’s structure • Flatten structure and increase crossfunctional activities  Reshaping the organisation’s culture • Reward risk-taking and intelligent mistakes 7 Holmes Institute, 2011 19 Work Stress  Stress  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  Types of Stress  Challenge Stressors • Stress associated with workload, pressure to complete tasks, and time urgency  Hindrance Stressors • Stress that keeps you from reaching your goals, such as red tape • Cause greater harm than challenge stressors Holmes Institute, 2011 20 Demands-Resources Model of Stress  Demands Responsibilities, pressures, obligations, and uncertainties in the workplace  Resources Things within an individual’s control that can be used to resolve demands  Adequate resources help reduce the stressful nature of demands Holmes Institute, 2011 21 A Model of Stress 8 Holmes Institute, 2011 22 Potential Sources of Stress  Environmental Factors  Economic uncertainties of the business cycle  Political uncertainties of political systems  Technological uncertainties of technical innovations  Organisational Factors  Task demands related to the job  Role demands of functioning in an organisation  Interpersonal demands created by other employees  Personal Factors  Family and personal relationships  Economic problems from exceeding earning capacity  Personality problems arising from basic disposition Holmes Institute, 2011 23 Consequences of Stress  Stressors are additive: high levels of stress can lead to the following symptoms  Physiological • Blood pressure, headaches, stroke  Psychological • Dissatisfaction, tension, anxiety, irritability, boredom, and procrastination • Greatest when roles are unclear in the presence of conflicting demands  Behavioural • Changes in job behaviours, increased smoking or drinking, different eating habits, rapid speech, fidgeting, sleep disorders Holmes Institute, 2011 24 Not All Stress Is Bad…  Some level of stress can increase productivity  Too little or too much stress will reduce performance  This model is not empirically supported 9 Holmes Institute, 2011 25 Managing Stress  Individual Approaches  Implementing time management  Increasing physical exercise  Relaxation training  Expanding social support network  Organisational Approaches  Improved personnel selection and job placement  Training  Use of realistic goal setting  Redesigning of jobs  Increased employee involvement  Improved organisational communication  Offering employee sabbaticals  Establishment of corporate wellness programs Holmes Institute, 2011 26 Global Implications  Organisational Change  Culture varies people’s belief in the possibility of change  Time orientation will affect implementation of change  Reliance on tradition can increase resistance to change  Power distance can modify implementation methods  Idea champions act differently in different cultures  Stress  Job conditions that cause stress vary across cultures  Stress itself is bad for everyone  Having friends and family can reduce stress Holmes Institute, 2011 27 Lecture Summary REMEMBER…  Forces of Change, Lewin’s and Kotter’s Models of Change  Organisational Development and 6 OD Techniques  Innovation and Learning Organisations  Work Stress, Stress Model and Management – Global Context and Implications LOOKING AHEAD … NEXT WEEK: Review and Exam Preparation

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