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MAS 264:ORGANISATIONALBEHAVIOUR

DR. (MRS) FLORENCE ELLISDEPARTMENT OF HUMAN RESOURCES &

ORGANISATIONAL DEVELOPMENT(KNUST SCHOOL OF BUSINESS (KSB)

Kwame Nkrumah University of Science andTechnology (KNUST)

January - may, 2019

LECTURE CONTENT

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PART (UNIT) ONE: INTRODUCTION

Introduction to the field of Organisationalbehaviour.

Lecture (UNIT) ONE:

Introduction to the field oforganisational behaviour:

lecture 1: what is organisationalBEHAVIOUR behaviour

Lecture OBJECTIVES

After studying this lecture, you should be ableto:

Define organisations and describe itscharacteristics; Define organisational behaviour, work and

understand their origins; Compare and contrast the major theoretical

perspectives and conceptualisations(metaphors) for organisations; Debate the organisational challenges;

Lecture OBJECTIVES

After studying this lecture, you should be ableto:

Compare and contrasteffectiveness Explain why it is important to study

organisations and organisational theperspectives of organisational behaviour;

The field of organisational behaviour

We know organisations are there becausethey touch us everyday. Indeed, they are socommon that they are taken for granted.For example, we hardly notice that we areborn in a hospital, have our birth recordsregistered in a government organisation,are educated in schools and universities,raised on food produced on private/government farms and turn to the policeand fire departments when trouble erupts.

The field of organisational behaviour

An organisations is not a building or sets ofpolicies. Organisations are made up of people.Organisations also interact with customers,suppliers, competitors and other elements inthe environment.That is why it has been said that competition in the 21st century's global economy is complex, challenging, and filledwith competitive opportunities and threats.

The field of organisational behaviour

Therefore, organisations (in all sectors)need to be innovative, employ skilled andmotivated people who can work in teams,have leaders with foresight and vision, andmake decisions that consider the interestof multiple stakeholders.However, an organisation’s can achieve itscompetitive advantage only when there isthe understanding of the attitudes andbehaviour of employees.

The field of organisational behaviour

This is because human behaviour at theworkplace and the complex interplaybetween organisational structure and itsexternal environment would significantlycontribute to individual, group,organisational and social objectives.Understanding organisational behaviourfirst begs the question?

KEY ISSUE 1: WHAT is an organisation

An organisation is:“the collection of people who work togetherand coordinate their actions to achieve awide variety of goals” (George and Jones,2008). “is a socially designed unit, or collectively,that engages in activities to accomplish agoal or set of objectives, has an identifiableboundary, and is linked to the externalsociety”

(Bratton et al., 2007)

WHAT IS AN ORGANISATIONS CONT’D

(a)(b)(c)(d)

The definitions implies that:Work organisations can be demarcated

from other social entities or collectivitiesby some four commoncharacteristics:

Objectives/goal orientation:Identifiable/nominal boundary:Linked to the environment:Socially designed unit or collectivity:

WHAT IS AN ORGANISATIONS CONT’D

The four characteristics are:

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Objectives/GoalOrientation

What individualsare trying toaccomplish bybeing members ofan organisation, e.g. enjoying asatisfying workexperience, etc.What an

organisation as awhole is trying toaccomplish, e.g.providinginnovative goodsand services thatcustomers want,etc.

Identifiableboundary

Identifiable/nominal boundary:the existence of anidentifiableboundary thatestablishescommonmembershipdistinguishingpeople who areinside and outsidethe organisation.

Linked toenvironment

A connection toexternal society –becauseorganisationalactivities andaction influence theenvironment orlarger society – e.g.political, economic,social-cultural andtechnological etc.

Socially designedunit or collectivity:Organisations arealways involvedwith people, andthey arecharacterised bytheir membersand interactions

and relationshipsbetween and

among them.

WHAT IS AN ORGANISATIONS CONTD’

Also, work organizations also vary in terms oftheir Products or Services; Size, Purpose,Ownership, Management, etc.Therefore, while some organisations are large,other are small, family-owned, and still othersare non-profit organisations or governmentagencies.Some manufacture products such as flat-tv, orlight bulbs, while others provide services suchas telecommunication services.

WHAT IS AN ORGANISATIONS CONTD’

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Work organisations can traditionally also bedistinguished in terms of two main groups:

Public sector organisations – are createdby government, and tend not to have profitas their goal.

Private enterprise organisations - areowned and financed by individuals,partners, or shareholders in a joint stockcompany and are accountable to their

b

WHAT IS AN ORGANISATIONS CONTD’:CLASSIFICATION

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Some common classification oforganisations (by their major purpose) alsoinclude:

Business firms (economic organisations)Armies, trade unions and police force(protective organisations)Clubs and societies (associativeorganisations)Local authorities (public serviceorganisations)Ch h ( li i i ti )

KEY ISSUE 2: THE MEANING OFORGANISATIONAL BEHAVIOUR

Organisational behaviour“is the study of the many factors that have animpact on how people and groups act, think,feel, and respond to work and organisations,and how organisations respond to theirenvironment” (George and Jones, 2008)“ is the study of what people think, feel, and doin and around organsations”

(McShane and Von cGlinow, 2010)

THE MEANING OF ORGANISATIONALBEHAVIOUR CONT’D

“is concerned with the study and understandingof individuals and group behaviour, and patternsof structure in order to help improveorganisational performance and effectiveness”(Mullins, 2006)“involves the systematic study of attitudes andbehaviours of individuals and groups inorganisations, and provides insight abouteffectively managing and changing them”(Bratton et al., 2007)

THE MEANING OF ORGANISATIONALBEHAVIOUR CONT’D

“a multidisciplinary field of inquiry,concerned with the systematic study offormal organisations, the behaviour of peoplewithin the organisation, and the importantfeatures of the social context thatstructures all the activities that occur insidethe organisation”

(Bratton et al., 2007)

MULTIDISCIPLINARY NATURE OFORGANISATIONAL BEHAVIOUR

Organisational Behaviour (OB) is an appliedscience that is built on a numbers of

behavioural disciplines.This implies that it has no agreed boundariesand sources in the manner of othermanagement fields (e.g. economics).It also means that OB draws on theories,principles and findings from a number ofother disciplines, including:

MULTIDISCIPLINARY NATURE OFORGANISATIONAL BEHAVIOUR CONT’D

Psychology: the systematic study ofbehaviours and mental processes .

Sociology: the systematic study of thepattern of social relationships thatdevelop between human beings.Social Psychology: is the scientific studyof the interaction of mental state andimmediate social situations .

MULTIDISCIPLINARY NATURE OFORGANISATIONAL BEHAVIOUR CONT’D

Political Science – the study of individual andgroup behaviour within a political system.Anthropology – the scientific study ofmankind, especially of their societies and

customs. The focus is on cultural systems,the beliefs, ideas and values within a groupor society.Economics – the study of production and the

consumption of goods and the transfer ofwealth to produce and obtain those goods.

MULTIDISCIPLINARY NATURE OF ORGANISATIONALBEHAVIOUR (FIGURE 1-1)

SocialSystem

(Sociology)

PersonalitySystem

(Psychology)

CulturalSystems

(Anthropology)

Contributions to the study of organisationalbehaviour

KEY ISSUE 3: WHAT ARE THE LEVELS OF ANALYSISTHAT INFLUENCE ORGANISATIONAL BEHAVIOUR

The individual: Organisations are made up ofindividuals. The individual is a central featureof organisational behaviour and a necessarypart of any behavioural situation.The group: Groups exist in all organisationsand are essential to their working andperformance.The organisation: Individuals and groupsinteract within the structure of the formalorganisation

KEY ISSUE 4: WORK IN ORGANISATIONS

Work refers to physical and mentalactivity that is carried out at aparticular place and time, accordingto explicit

or implicit instructions, in return forremuneration’ (Bratton et al., 2007).

The definition implies that:

WORK IN ORGANISATIONS

(1)

(2)

Work has an economic component. Thenotion of ‘physical and mental’ characteristic

in the definition suggest that a ‘carpenter’and a ‘lecturer’ can be considered as work.Work has ‘space and time’ component thatlocates work in a social context, e.g. thespecific location, ‘8 to 5’ work hours and inrecent times flexi-place and flexi-time (e.g.time zones).

WORK IN ORGANISATIONS CONT’D

(3) Work always involves: (a) explicit instruction - expresses terms that

are usually written down and which govern thespecific details of the employee contract ofemployment.

(b) implicit instructions - implied terms thatare unlikely to be written down but whichnevertheless are considered to be part of anemployee contract (psychological contract)

WORK IN ORGANISATIONS CONT’D

(4) Work always involves “socialrelations” between people: between

employer and employees, co-workers,management and trade unions, and

between suppliers and customers .(5) Work is “remunerated” (reward) .There are two types of rewards -intrinsic and extrinsic.

THE DEVELOPMENT OF WORK/ORGANISATIONS/ ORGANISATIONALBEHAVIOUR

Traces the evolution of work from pre-industrial work, early capitalism to post-industrial times. e.g:

agriculture employment, factory system, specialise occupations; clerical functions or knowledge work. knowledge work - internet-based ‘network

society ‘

KEY ISSUE 5: HISTORICAL APPROACHESTO STUDYING WORK IN ORGANISATIONS

Prior to the 20th century, the managementliterature tended to be based around thewritings of individuals scholars who tried tobring their own perspectives and experienceto the attention of a wider audience.The list of these people is almost endless.They include:

Scientific Management (Taylorism)

Efficiency is Everything - is pioneered byscientific management.

Scientific Management (Taylorism) –emphasises scientific determined jobs andmanagement practices as the way toimprove efficiency and productivity.

It was pioneered by Frederick Taylor, whodeveloped his ideas while working as asuperintendent at a steel company inPennsylvania.

Scientific Management (Taylorism)

He believed workers were motivated solely bymoney and were too stupid to develop the

most efficient way of performing a task.The role of management was therefore to

‘scientifically’ analyse all the tasks to beundertaken, and to design jobs to be asefficient as possible, with minimal workerautonomy.

Scientific Management (Taylorism) cont’d

Taylor (and others) argued that efficiency,standardisation and discipline would result

from a process of scientific management oftasks and this include:Dividing work into smallest possible skill

elements possible ,A clear distinction is made between

planning a job, a management role and aworker’s role ;

Scientific Management cont’d

Jobs should be standardised and simplifiedstandardised to achieve maximum

efficiency;Every worker should conduct a minimum of

movements , preferably involving just oneset of actions (time-and-motion studies);For example, management decided the timethat was to be spent on each task;

Scientific Management cont’d

There is one best way of organising any setof tasks to be performed and it was

management’s responsibility to conductexhaustive measurements in order toachieve this desired state.

Many modern organisations adopt similarprinciples in order to maintain or increaseproductivity.

Fordism was pioneered by Henry Ford(1863-1947), who applied Taylor’s principlesin his car assembly factories.

Scientific Management - fordism

To this he added the idea of the assemblyline, the recording of job times and thestandardisation of commodities to gaineconomies of scale.

Fordism: a term used to describe massproduction using assembly-line technology

that allowed for greater division of labourand time and motion management .

AFTER TAYLORISM AND FORDISM

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Many criticisms have been levelled atTaylorism and Fordism, such as:

Simplification of tasks led to boredom anddissatisfaction , leading to absenteeism and

quick staff turnover. The emphasis on productivity and

efficiency , and the piece-rate pay systemmade workers feel undervalued,

dehumanized and exploited - no room wasleft for trade unions to bargain.

“HUMAN RELATIONS” SCHOOL

What about People? - was as a result ofearly work on human relations and industrialpsychology.

Human relations is a school of managementthat emphasizes the importance of social

processes in the organisation (data gatheredat the Hawthrone Plant of Western ElectricCompanies – Elton Mayo and colleagues).

THE “HUMAN RELATIONS” SCHOOL

It places focus on the social context of work ,e.g. employee motivation, employee attitude

and group dynamics, autonomy and trust andopenness in managerial and organisational

matters.The human relations strove for a greater

understanding of people’s psychological andsocial needs at work as well as improving the

process of management.It also recognises the importance of

informal organisation which will always bepresent within the formal structure

THE HUMAN RELATIONS SCHOOLCONT’D

It further demonstrates that people go towork to satisfy a complexity of needs andnot simply for monetary reward and it gives

recognition to the work organisation and theimportance of group, group values and

group norms.A criticism of this theory includes: theoristsconceptualised the ‘normal’ of the workorganisation in harmonious terms, andforgetting that workplace conflict is exists.

THE SYSTEMS THEORY

Relationship with the environment – wasdominated the systems theory.

Systems theory (developed from earlier workdeveloped in the biological sciences) involvesan holistic explanation to social phenomenon.

It reflects how a number of elements orsubsystems interact within a cohesive whole.

It shows the relationships and interactionsbetween elements which, in turn, are said toexplain the behaviour of the whole.

THE SYSTEMS THEORY

Work organizations according to thesystems theory are said to be open systems.

This is because they acquire inputs fromthe environment (e.g. raw materials, money,employees, information and equipment),

transform them into services or products,and discharges outputs (e.g. products,pollutants) to the external environment.

Systems theory: DIFFERENT PERSPECTIVESON ORGANISATION cont’d

Another feature of open systems thinking isthat organisations have many interdependent

parts (called subsystems) that must coordinatewith each other in the process of transforminginputs to outputs.

This implies that organisations are effectivewhen there is organisational-environment fit (O-E Fit).

Systems theory: DIFFERENT PERSPECTIVESON ORGANISATION cont’d

How well the organisation internallytransform inputs into outputs and thesubsystems coordinate with each other(internal organisational fit) and managingtheir external environment leads to issuesrelating to the concept of sustainability…….

looking at issues from a broaderperspective/holistically.

Systems theory: DIFFERENT PERSPECTIVESON ORGANISATION cont’d

Again, the systems theory has the tendencyto treat societies as having characteristicssimilar to those of organic matter or organisms

Here, organisations can be viewed as livingorganisms.

Morgan(1986, 1997) draws attention to theidea that there are a number of competingmetaphors for organisations.

Systems theory: DIFFERENT PERSPECTIVESON ORGANISATION cont’d

A metaphor is a figure of speech in which aterms is transferred from the object it

ordinarily designates to another object itcan designate by implicit analogy .

Some metaphors described by Morgan(1986, 1997)(he calls the different imagesof organisation) include:

Systems theory: DIFFERENTPERSPECTIVES ON ORGANISATIONcont’d

(1) organisations as machines - organisationsare machines in which people are part .People are therefore expected to operate like

clockwork by working to certain procedures,rest according to certain rules and repeat

that in a mechanical way.

Systems theory: DIFFERENT PERSPECTIVESON ORGANISATION

(2) Organisations as organisms whichemphasise growth, adaptation, survival andenvironmental relations (employees are peoplewith complex needs that must be satisfied –motivation); (3) Organisations as brains - as information

processors that can learn (learningorganisations and decision making);Organisations cannot function withoutprocessing information, communicating,

Systems theory: DIFFERENT PERSPECTIVES ONORGANISATION

(4) Organisations as cultures based on values,norms, beliefs, rituals, etc. Culture thereforeshapes organisations, and organisations are

mini-societies with their own differentsubcultures within national cultures withfrequently subcultures within subcultures.(5) Organisations as systems of change and

flux can adapt and change, (change in systems,structures, rules hierarchies and culture).

Systems theory: DIFFERENTPERSPECTIVES ON ORGANISATION

(6) Organisations as political systems -interests, conflict and power issuespredominate (power, politics), where theconcepts of authority, power and superior-subordinate relationships dominatemanagement and organisations (same inpolitical principles).

Systems theory: DIFFERENTPERSPECTIVES ON ORGANISATION

(7) Organisations as psychic prisons in whichpeople are trapped by their mindsets(employees living their livesas prisoners).(8) Organisation as domination with theemphasis on exploitation and imposing yourwill on others (influence and domination).

CONTINGENCY THEORY

It All Depends: Key Contingencies is the conceptof the contingency theory,Contingency theory focuses on understandingthe various contingencies and how organisationscan be designed to fit the contingency factors.Contingency, as it applies to work organisations,argues that the effectiveness of a particularcontingency such as strategy, structure, ormanagerial style, size among others dependsupon the presence or absence of other factors or

forces.

CONTINGENCY THEORY

For example, the structure of theorganisation and its ‘success’ are

dependent, that is, contingent upon, thenature of tasks with which it is designed to

deal and the nature of environmentalinfluences.

Consequently there are no single ‘best’strategies, structures or styles and onebest way of organising.

CONTINGENCY THEORY

Management must be concernedabove all with achieving ‘good fits’or ‘best fits’,An implication that workorganisations should emphasise“best-fit” as opposed to the “best-practice” approach.

KEY ISSUE 6: WHAT ARE THE CONTEMPORARYCHALLENGES FOR ORGANISATIONS

Some of the challenges include:

Globalisation:e.g. on cultural

values

Increasingworkforce

diversity: e.g.Millennials

(Gen Y)

Emergingemployment

relations: e.g. work-life

balance

KEY ISSUE 7: ANCHORS OF ORGANISATIONALBEHAVIOUR KNOWLEDGE

To understand other topics, the field oforganisational behaviour relies on a setof basic belief or knowledge, which canbe called the conceptual anchors :

They include:

ANCHORS OF ORGANISATIONAL BEHAVIOURKNOWLEDGE

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The Multiplelevels of

Analysis Anchor:This involves thestudy of

organisationalbehavior from the

multiple levels ofanalysis, individual,

group,organisational and

possibily theenvironment

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TheMultidisciplinary

Anchor:This involves theinherentintersectionsbetween

organisationalbehavior and most

disciplines thatstudy human

beings.

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The ContingencyAnchor:

People arecomplex andtherefore the needto identify that aparticular actionmay have differentconsequences indifferent situations.

KEY ISSUE 8: WHY STUDY ORGANISATIONALBEHAVIOUR

Almost all of us will work in an organisation,if not already working in a work setting andtherefore the need to understand, predict,

and influence the behaviour of others inorganisational setting.The move towards more knowledge-basedwork and the growing acknowledgementthat people are the key to sustainablecompetitive advantage strengthens the case

for behavioural studies in modernmanagement education.

KEY ISSUE 8: WHY STUDY ORGANISATIONALBEHAVIOUR

Studying organisational behaviour leads to:Better understand how organisations work.Understanding of the complexities of theworld of work.Understanding of how they interact witheach other.Make sense of and predict the world inwhich we live

KEY ISSUE 8: WHY STUDYORGANISATIONAL BEHAVIOUR

Use the theories to question our personalbeliefs and assumptions and to adopt moreaccurate models of workplace behaviour.Helps us get things done in organisations.Gives everyone more insight into how toprepare to become employees in the twenty-first-century.appreciate individual and personalitydifference in teamwork.

WHY STUDY ORGANISATIONAL BEHAVIOUR

appreciate how decisions are made bypeople who control the organization andhow such decisions affect the people in it,its performance, processes and shapeevents within an organisation.come to terms with the ambiguities thatexist in the social world and to be moreable to work with and around thoseuncertainties in whatever work experienceyou encounter.

WHY STUDY ORGANISATIONAL BEHAVIOUR

equip you with the theories, concepts andtools that can enable you to find and createthe answers that can help successfullyaddress questions that come up as amember of an organisation.Gives everyone more insight into how toprepare to become employees in thetwenty-first-century.

ORGANISATIONAL ICEBERG (FIGURE 1-4)“one way to recognise why people behave as they do at work is

to view an organisation as an iceberg. What sinks ships isn’talways what sailor see, but what they can’t see”. (Just like the

story of the titanic) (Hellriegel et al., 1998)

summary

The behaviour of employees is thekey to achieving effectivenessIndividuals, groups, organisation andsociety influence the behaviour inwork and organisations.Work is an important component oforganisational lifeA number of contributing disciplinesstand out such as psychology,sociology and anthropology.