OB Instructor's Resource.final

INSTRUCTOR’S RESOURCE

Chapter 1

Learning OutcomesKey Teaching PointsTeaching NotesReference to PowerPoint SlidesClassroom ActivitiesSample Test QuestionsUseful Internet Sites

Chapter 2


Chapter 3


Chapter 4


Chapter 5


Chapter 6


Chapter 7


Chapter 8


Chapter 9


Chapter 10


Contents

Content

2

Chapter 11


Chapter 12


Chapter 13

Learning OutcomesKey Teaching PointsTeaching Notes

Reference to PowerPoint SlidesClassroom ActivitiesSample Test QuestionsUseful Internet Sites

Chapter 14


Chapter 15


Sample Organizational Behaviour Syllabus and Scheme of Work

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Sample Organizational Behaviour Syllabus and Scheme of Work

Note:

The following syllabus is intended for an undergraduate programme which allocates 3 to 4 credit hours for the course. It is expected that students will have 3 contact hours in the classroom with the lecturer spread over 16 weeks of teaching and that this time will be used for lectures, tutorials, class exercises and discussions, quizzes, revision and tests.

WEEK CHAPTER AND TOPIC CHAPTER

1 Introduction to Organizational Behaviour 1

2 Perception and Learning 2

3 Personality 3

4 Emotion and Stress 4

5 Attitude and Behaviour at Work 5

6 Motivation 6

7 Groups and Teams 7

8 Communication 8

9 Decision Making 9

10 Power, Infl uence and Politics 10

11 Leadership 11

12 Creativity, Innovation and Culture 12

13 Organizational Structure and Design 13

14 Managing Change and Organizational Development 14

15 Human Resources Implications of Organizational Behaviour 15

16 Revision Week

Exam Week

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INSTRUCTOR’S RESOURCE

Organizational Behaviour In Global Organizations

Learning Outcomes

After reading this chapter, you will understand:

• What is organizational behaviour?

• Why do we learn about organizational behaviour?

• Three levels of analysis in organizational behaviour.

• The history and nature of organizational behaviour.

• Organizational behaviour in global organizations.

Key Teaching Points

1.1 What is Organizational Behaviour?This chapter introduces the concept of organizational behaviour (OB) which investi-gates how individuals, groups and structures impact behaviours within organizations and how such knowledge can be used to improve the effectiveness of the organizations.

1.1.1 An organization is a group of two or more people working together to achieve a common goal. Ask the students, is the university or the school they are in considered an organization? Why?

1.1.2 Mission and purpose: An organization exists due to its mission or purpose that asks the question ‘Why are we here?’ To answer that question, organiza-tions may develop several goals or objectives to translate the mission into some specifi c measurable performance measures.

Ask the students what is the mission and purpose of the university/college they are studying in.

1.1.3 Strategy: The process of setting of long-term goals of an organization, taking action and allocating resources to accomplish those goals. We can also look at strategy as a broad action plan.

1.1.4 Strategic management is a planning process that involves the formulation and implementation of strategies to achieve the organization’s long-term goals by analysing its internal and external environments.

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1.1.5 Plans can be developed at various levels—strategic, tactical or operational.

• Strategic – at the university/top management level.

• Tactical – at the school/business unit/division level.

• Operational – at the academic department/department level.

1.1.6 Organizational behaviour is a fi eld of study that investigates how individuals, groups and structures impact behaviours within organizations.

1.2 Why do We Study Organizational Behaviour?1.2.1 The three goals of studying organizational behaviour are, namely, to explain,

clarify and control behaviour in organizations.

1.2.2 Explain: Identify and explain a phenomenon that occurs within an organization.

1.2.3 Clarify: Clarify and forecast behaviour that is taking place, develop theories.

1.2.4 Control: To control the behaviour that happens in organizations.

1.2.5 OB is based on two assumptions: contingency perspective and three levels of analysis: individual, group and organizational.

1.2.6 Contingency perspective: Personal and environmental factors that infl uence the interaction or behaviour in organization.

• Personal factors: Ask students what factors would be considered personal factors?

• Environmental factors: What environmental factors would affect behaviour in organizations? Why?

1.3 Three Levels of AnalysisWe can analyse organizational behaviour at three levels of analysis: individual, group and organization

1.3.1 Individual level: Factors that can infl uence the behaviour of individuals—per-ceptions, the way they learn, their personalities and abilities, the way they con-trol their emotions and work stress, their attitudes at work and motivation

1.3.2 Group level: The individual’s interactions with other individuals at the group level. Behaviour at the group level involve how one becomes a member of a group, teamwork, the way one communicate, make decisions and handle inter-personal confl icts in a group setting. We also need skills and a good under-standing of power, infl uence, politics and leadership in order to be effective working in groups.

1.3.3 Organization level: The third level of analysis in organizational behaviour can be carried out by looking at the whole organization. At this level, we can ana-lyse the culture, structure and design of the organization. We also need to understand how the organization encourages creativity and to maintain the sustainability via organizational development.

1.4 History of OB We can trace the existence of organizational behaviour since the ancient days (3000 BC) and the history of modern management can be traced as early as 1890 until today.

1.4.1 Egypt (2700 bc): Building of the pyramids, Pharaohs.

1.4.2 Greek: The Greek mythology—Illiad and Homer, Alexander the Great.

1.4.3 Roman: Expansion of the Roman empire, Julius Caesar.

1.4.4 Chinese: The annals of war tactics from General Sun-tzu (400 bc), Three Kingdom.

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1.4.5 Islam: The fi rst Islamic government (Daulah) that Prophet Muhammad SAW set up in Madinah, the 4 Caliphates, Ottoman Empire.

1.4.6 Persia: The Persian Empire.

1.4.7 First Industrial Revolution (1760–1840) in England and Europe.

1.4.8 Second Industrial Revolution (1850–1950) in the United States, Japan, Russia, China and India.

1.4.9 Ancient Malay civilization: The Sejarah Melayu (The Malay Annals) and Hikayat Hang Tuah vis-à-vis the kingdoms of Siam, China, Majapahit.

1.4.10 Malaysia before independence (under colonial rules by the Portuguese, Dutch, Siam, British, and Japanese) and after independence.

1.5 Disciplines that Contribute to OB OB exists due to contributions from various disciplines such as anthropology, economy, psychology, political science, sociology and humanities. This interdisciplinary approach—whether direct or indirect—exists due to the sharing and borrowing from these disciplines.

1.5.1 Anthropology Studies the relationships between individuals and their envi-ronment.

1.5.2 Economy In OB, the economic perspective is borrowed in order to understand how individuals make decision.

1.5.3 Psychology Psychology is one of the disciplines that have a major infl u-ence on organizational behaviour.

1.5.4 Political Science Topic such as power, authority, and politics.

1.5.5 Sociology The study of social system and human interactions in social situations.

1.5.5 Humanities Studies about human interactions in social situations.

1.5.6 Education Theories on learning styles as applied in training and develop-ment.

1.6 Current Challenges of Organizational Behaviour1.6.1 Globalization – doing business across borders

1.6.2 Quality – quality standards

1.6.3 Technology – keeping up with technology in business

1.6.4 Ethics – crime and ethical behaviours in business

1.6.5 Diversity – managing a multicultural workforce

1.6.6 Nation building – challenges of nation building and implication to business organizations.

Teaching Notes

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Reference to PowerPoint Slides

1.1 What is an Organization?1.1.0 Mission, Goals, Strategy, and Plans1.1.1 Mission1.1.2 Vision and Mission of Proton1.1.3 Strategy1.1.4 Plan

1.2 What is Organizational Behaviour (OB)?1.3 Three Goals of Studying Organizational Behaviour1.4 Basic Assumptions

1.4.1 Basic Assumptions: Contingency1.4.2 Basic Assumptions: Three Levels of Analysis

1.5 The History of OB1.5.1 Historical Evidences of Management and OB

1.6 Contributing Disciplines to OB1.7 Current OB Challenges in Global Organizations

1.7.1 Globalization 1.7.2 Quality1.7.3 Technology1.7.4 Ethics1.7.5 Diversity1.7.6 Nation building

Revision Questions

Classroom Activities

Individual AssignmentFirst of all, ask students to decide upon a few possible OB topics that interest them. Ask them to search in the library and/or visit some websites and do literature searches to see what is available on each of these topics.

Go to http://en.wikipedia.org/wiki/Proton_(company) to learn more about Proton Berhad

Search Google (www.google.com) or Yahoo (www.yahoo.com) about organizations you are interested to study

Ask students to watch documentaries on Discovery Channel or The History Channel about individuals and organizations such as Man Made Marvels, and docu-mentaries about historical leaders or events such as:

• Building of the pyramids

• Creation of the United Nations

• Putting the fi rst man on the moon

• Scientifi c voyages across to the Arctic and Antarctica

• Sinking of the Titanic

• Collapse of the Barings Bank

• Discuss the three levels of OB analysis as portrayed by the characters and events in the documentaries. Identify any plots or storylines that involve OB issues and encourage students to discuss in class. Identify evidences of management (or mis-management) and organizational behaviour.

Group Assignment 1 At the beginning of the semester, ask students to form a team of 4-5 persons, and

select a team leader. 2 Each team must be truly diversifi ed in terms of race and sex.

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3 Every team member is responsible to ensure he/she is playing his her role in a responsible fashion.

4 Grades are given to teams, not individuals. 5 The team should select a topic of choice that must be related to the fi eld of organi-

zational behaviour. 6 Discuss among the team members the searched material. In the process, you

should be able to decide upon one topic–fi rm up that topic, and adjust the scope of your coverage.

7 Ask a very simple research question that is answerable within the specifi ed time. That is, you must have a clear objective–the clearer you are, the easier it is to meet it.

8 This is an important fi rst step. Do this now or within the next two weeks. Possible topics:

• Organizational behaviour – fundamental nature

• Basic assumptions on organizational behaviour

• Distinction between classical theory and contemporary theory of organizational behaviour

• Response of organizational behaviour on globalization and diversifi cation

• Response of organizational behaviour on advancement in technology

Sample Test Questions

1 What is organizational behaviour? Organizational behaviour is a fi eld of study that investigates how individuals,

groups, and structures impact behaviours within organizations.

2 What are the goals of studying organizational behaviour? The three goals of studying organizational behaviour are to explain, clarify and

control behaviour in organizations. Explain: Identify and explain a phenomenon that occurs within an organization. Clarify: Clarify and forecast behaviour that is taking place, develop theories Control: To control the behaviour that happens in organizations.

3 What are the three levels of analysis in organizational behaviour? The three levels of analysis in organizational behaviour are the individual, group

and organization levels. Individual level refer to factors that can infl uence the behaviour of individuals such as perceptions, the way they learn, their personalities and abilities, the way they control their emotions and work stress, their attitudes at work and motivation. The group level refers to the individual’s interactions with other individuals. Behaviour at the group level involve how one becomes a member of a group, teamwork, the way one communicates, makes decisions and handles interpersonal confl icts in a group setting. We also need skills and a good understanding of power, infl uence, politics and leadership in order to be effective working in groups. The third level of analysis in OB can be carried out by looking at the whole organization. At this level, we can analyse the culture, structure and design of the organization, how the organization encourages creativity and main-tains sustainability via organizational development.

4 Give examples of the contributions of other disciplines to organizational behaviour. Other disciplines that contribute to OB are anthropology, economy, psychology,

political science, sociology and humanities. Anthropology is the study of the rela-tionships between individuals and their environment. The economic perspective on decision making is borrowed in OB order to understand how individuals make

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decision. Psychology is one of the disciplines that have a major infl uence on OB such as understanding interpersonal relationships. Topics such as power, authori-ty, and politics are borrowed from political science whereas understanding the social system and human interactions in social situations are from sociology. From humanities, we learn about human interactions in social situations, and the fi eld of education gives us theories on learning styles as applied in training and development.

5 What organizational behaviour challenges do global organizations face? Students can choose an organization and elaborate how it is affected by each of

these challenges:

• Globalization – doing business across borders

• Quality – quality standards

• Technology – keeping up with technology in business

• Ethics – crime and ethical behaviours in business

• Diversity – managing a multicultural workforce

• Nation building – challenges of nation building and implication to business organizations.

Multiple Choice Questions

1 Organizational behaviour (OB) … A is a group of two or more people working together to achieve a common goal.B investigates how individuals, groups, and structures impact behaviours with-

in organizations.C exists due to the mission or purpose that asks the question ‘Why are we here?’D is the process of setting of long-term goals of an organization, taking action

and allocating resources to accomplish those goals.

2 The goals of studying organizational behaviour include the following exceptA to control the behaviour that happens in organizations.B to identify and explain a phenomenon that occurs within an organization.C to achieve the organization’s long-term goals.D to clarify and forecast behaviour that is taking place, develop theories.

3 The following happens at the individual level except: A perceptions that can infl uence the behaviour of individuals. B the way they learn, their personalities and abilities. C the way they control their emotions and work stress. D the way groups make decision and handle interpersonal confl icts.

4 Which of the following disciplines and its contribution to OB does not match?A Anthropology – the relationships between individuals and their environment B Economy – understanding how individuals make decisionC Psychology – social system and human interactions in social situationsD Political Science – understanding power, authority, and politics

5 Current challenges of OB include the following except: A Globalization – doing business across bordersB Quality – quality standards C Technology – keeping up with technology in businessD Education – training and development

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Useful Internet Sites

http://en.wikipedia.org/wiki/Proton_(company)

http://www.nwlink.com/~donclark/leader/leadob.html

www.google.com

www.yahoo.com

www.chimaerasconsulting.com/model.htm

CHAPTER

Perception and Learning

Learning Outcomes


• What is perception and why is it important?

• The perceptual process.

• Factors infl uencing perception.

• Common perceptual distortions.

• Specifi c applications of perception in organizations.

• Learning.

• The brain and learning.

• Operant conditioning.

• Reinforcing learning.

Key Teaching Points

2.1 Perception Perception is the process of classifying, interpreting, and understanding an event or an individual.

Every day, we perceive or make perceptions about people and events happening around us, for example, our co-workers, supervisor, or situation at work. We try to understand individuals or events by classifying them into certain categories, interpret-ing what happened, and try to understand why it happened.

Ask students to describe what they perceive about you or the other lecturers in the programme.

2.2 The Perceptual ProcessThe perceptual process is comprised of Stimuli → Process → Response whereby the proc-ess involves attention, organizing, interpreting, and retrieval.

Demonstrate this process by giving examples of daily activities: Ask the students to evaluate how they perceive an individual whom they have just met using the following:

Attention: The process of fi ltering information received by our senses.

Organization: The process by which we group information into recognizable pattern.

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Interpretation: Assigning meaning to the information.

Retrieval: The process of accessing information stored in our memory to assign meaning for to create understanding

2.3 Kelley’s Attribution TheoryKelley’s attribution theory involving distinctiveness, consistency and consensus is commonly used to explain an individual’s behaviour through the attribution process.

Consensus: Information regarding the extent to which other people behave in thesame manner as the person being judged.

Consistency: Information regarding the extent to which the person being judged acts the same way at other times.

Distinctiveness: Information regarding the extent to which a person behaves in the same manner in other contexts.

2.4 Perceptual Misperceptions and Flawed or Biased Perception About Others

Misperceptions include fundamental attribution error, selective perception, halo effect, contrast effect, similar-to-me effect, projection, and stereotyping, self-fulfi lling prophecy. We have to learn ways to overcome the perceptual biases.

2.4.1 Fundamental attribution error: The tendency to overestimate the infl uence of internal factors and underestimate the infl uence of external factors when making judgement about other’s behaviours.

2.4.2 Self-serving bias: Tendency to assign success to internal factors.

2.4.3 Selective perception: Focus on a particular aspect and ignoring others in an encounter with others or situation.

2.4.4 Halo effect: Draw a general impression based on a single characteristic.

2.4.5 Contrast effect: Compare the person you are evaluating with others who per-form better or worse.

2.4.6 Similar-to-me effect: Tendency to perceive others who are similar in a more positive light.

2.4.7 Projection: To perceive or evaluate other individuals based on our assessment of ourselves.

2.4.8 Stereotyping: Belief that all members of a specifi c group have similar charac-teristics and tend to behave in the same way.

2.4.9 Self-fulfi lling prophecy (‘Pygmalion effect’): One’s expectation or beliefs deter-mine their behaviour or performance.

2.5 LearningLearning involves a relatively permanent change in behaviour. There are a myriad of ways of learning. Ask students how they learn in different situations and at different stages of their lives.

2.6 The Brain and LearningThe brain is integral in understanding learning. Individuals would benefi t in under-standing the brain dominance (left vs. right) which affect their learning style.

There are 12 brain/mind learning principles. (If possible bring a model of the brain in class to explain the structure of the brain)

Go through the differences of left-brain versus right-brain dominant learners (see Table 2.1) in class and see how many students can relate to either one.

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2.7 Learning StylesLearning styles also affects the way we learn. One simple model is Kolb’s learning cycle and learning styles. Kolb’s Learning Styles Inventory is based on experiential learning theory (ELT)

2.8 Operant ConditioningOperant conditioning is the form of learning in which people associate the conse-quences of their action themselves. Behaviours with positive consequences are acquired whereas behaviour with negative consequences will be eliminated. Ask stu-dents why do they continue doing certain things when they receive praises and why do they stop behaving in a certain way when the behaviour gets criticisms.

2.9 Reinforcing LearningReinforcing learning is important so that we continue to remember what we learn. One way to reinforce learning is called operant conditioning. Learning can also be reinforced based on the Reinforcement theory whereby we can reinforce learning either by making people sustain, reduce, or stop certain behaviour. Four ways of rein-forcing learning given the outcomes or consequences:

Positive reinforcement: People learn to perform behaviours that lead to the presenta-tion of desired outcomes.

Negative reinforcement: You tend to learn to perform acts that lead to the removal of undesired events.

Punishment: Decreases undesirable behaviour by following it with undesirable conse-quences.

Extinction: Responses that are no longer reinforced tend to gradually diminish in strength.

Ask students: Which of these strategies have they used personally? Why?

Teaching Notes


2.1 What is perception?2.2 Kelley’s Theory of Causal Attribution2.3 Misperceptions and Biases

2.3.1 Fundamental Attribution Error 2.3.2 Self-serving Bias2.3.3 Selective Perception2.3.4 Halo Effect2.3.5 Contrast Effect2.3.6 Similar-to-me Effect2.3.7 Projection2.3.8 Stereotyping

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2.4 How to Overcome Misperceptions or Biases2.5 Learning2.6 The Brain and Learning

2.6.1 The Four Lobes2.6.2 Left- and Right-Brain Learning Model2.6.3 The 12 Brain/Mind Learning Principles2.6.4 Brain-Based Learning

2.7 Learning Styles2.7.1 Kolb’s Learning Style

2.8 Operant Conditioning2.9 Reinforcement Theory

2.9.1 Using Reinforcement 2.9.2 How to Use Reinforcement

Revision Questions


Watch reality shows like Akademi Fantasia, One in A Million, Gang Starz, or Mentor. How do you evaluate one performer based on the one before him or her? Which per-ception bias are you experiencing? Discuss in class.


1 What is perception? Perception is the process of classifying, interpreting, and understanding an event

or an individual.

2 What are the factors that infl uence perception? In the perceptual process of stimuli → perceptual process → response, individual’s

perceptions are infl uenced by internal (personal, behaviour) or external (environ-ment, other people etc) factors. Sometimes cultural factors come into play, for example, in terms of time a person who comes from a culture that values punctual-ity may perceive negatively when someone is late.

3 How do you use Kelly’s attribution theory to explain perception? Kelley’s attribution theory is commonly used to explain an individual’s behaviour

through the attribution process. Using attribution theory, you would attribute others’ action to be caused by internal or external factors based on three types of information, namely, distinctiveness (different behaviour in different situation), consistency (same behaviour in different situations) and consensus (same behav-iour in the same situation).

4 What are common misperceptions? Common misperceptions include fundamental attribution error, selective per-

ception, halo effect, contrast effect, similar-to-me effect, projection, stereotyping, and self-fulfi lling prophecy.

5 What the relationship between brain and learning? The brain is integral in understanding learning. Individuals would benefi t in

understanding the brain dominance (left vs. right) which affect their learning style.

6 How does operant conditioning work? Operant conditioning: It is the form of learning in which people associate the

consequences of their action themselves. Behaviours with positive consequences are acquired whereas behaviours with negative consequences will be eliminated.

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7 How do you reinforce learning? Reinforcement theory: We can reinforce learning either by making people sustain,

reduce, or stop certain behaviour. There are four ways of reinforcing learning given the outcomes or consequences.

Positive reinforcement: People learn to perform behaviours that lead to the pres-entation of desired outcomes.

Negative reinforcement: You tend to learn to perform acts that lead to the removal of undesired events.

Punishment: Decreases undesirable behaviour by following it with undesirable consequences.

Extinction: Responses that are no longer reinforced tend to gradually diminish in strength.


1 When a behaviour is not reinforced, what is the probability of that behaviour occurring again according to operant conditioning?A it increases C it declinesB it remains unchanged D it becomes zero

2 In attribution theory, consensus refers to:A there is general agreement about a perception.B different people respond the same way in the same situation.C there is general agreement about how people desire to respond to the same

situation.D different people perceive a situation similarly.

3 Using attribution theory, describe the following behaviour: Abdullah is late for work each day by about ten minutes. It shows: A consensus C reliabilityB similarity D consistency

4 Your supervisor, Ms Lee is always suspicious of your actions. When you came late from lunch, she assumed that you had simply taken too much time. She never considered that you had to walk up 10 fl ights of stairs as the elevators were out. Your boss exhibits ____________.A self-serving biasB selective perceptionC fundamental attribution errorD stereotyping

5 Misperceptions in judging others include all of the following except ___________.A stereotypingB halo effectC projectionD self-serving bias


http://brain.web-us.com/brain/braindominance.htm

http://businessballs.com

CHAPTER

Personality

Learning Outcomes


• What is personality?

• Personality theories.

• Personality determinants.

• Personality traits.

• The Myers–Briggs type indicator.

• The Big Five personality model.

• How the major personality attributes predict behaviour at work?

• What are terminal and instrumental values?

• Three types of value confl ict.

Key Teaching Points

3.1 Understand PersonalityPersonality is the sum total of ways in which an individual reacts to and interacts with others.

3.2 Discuss and Distinguish the Important Personality Theories.3.2.1 Type theory relates the features of face or body to the personality in simple and

subjective ways, but it fails to explain the complexities of the personalities.

3.2.2 Trait theory describes personalities by a set of features based on the following:

• determining the basic traits that provide a meaningful description of per-sonalities.

• fi nding some ways to measure the traits.

To assess personality traits, two methods are generally used:

• self-assessment whereby the person describes him/herself by answering a set of questions related to her/his personality or

• someone else describes the personality through observation or answering questions related to her/his personality. A set of questionnaire called person-ality inventory is used for this purpose.

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3.2.3 Psychoanalytic theory of personality: Psychologist Sigmund Freud suggests that personality is composed of three elements—id, ego, and super ego.

• The id refers exclusively to innate components of personality which are inherited at birth.

• The ego relates to reality.

• The super ego is a set of norms, values, ethics and attitudes which are reason-ably compatible with the society. It judges where the action is wrong or right.

3.2.4 Social learning theory of personality: Social learning theory of personality regards situation as an important determinant of behaviour. Humans learn by direct experience (learning through reinforcement) and vicarious learning (learning by observing).

3.2.5 The humanistic approach: Personality is studied with emphasis on the person’s potentials for self-direction and freedom of choice. Using Roger’s theory, person-ality is explained by looking at two concepts, namely, self and self-actualization. The self contains ideas, perceptions and identity whereas self-actualization is the basic motivating factor infl uencing personality.

3.3 Big Five Personality3.3.1 Extroversion is a personality dimension describing someone who is sociable,

gregarious, and assertive.

3.3.2 Agreeableness is a personality dimension that describes someone who is good-natured, cooperative, and trusting.

3.3.3 Conscientiousness is a personality dimension that describes someone who is responsible, dependable, persistent, and organized.

3.3.4 Emotional stability is a personality dimension that describes someone as calm, self-confi dent, secure (positive) versus nervous, depressed, and insecure (negative).

3.3.5 Openness to experience is a personality dimension that describes someone in terms of imagination, sensitivity, and curiosity.

3.4 Identify Factors that Determine PersonalityIndividual’s personality is the result of heredity, environment, situation, family and social.

3.4.1 Heredity: Heredity refers to those factors that were determined when one was fi rst conceived such as physical stature, facial attractiveness, gender, tempera-ment, etc.

It is suggested that parents have a strong infl uence on the personality of their children not only through genetic, but also through upbringing.

3.4.2 Environment: The environment that we live in may have an impact on our personality. The environmental determinants that may infl uence our personality formation include the culture in which we are raised; our early conditioning; the norms among our family, friends, and social groups; and other infl uences that we experience.

3.4.3 Situation: The situation infl uences the effects of heredity and environment on personality. Although generally stable and consistent, an individual’s personality does change in different situations. What kind of personalities will fl ourish or fumble in different situations? The more important the different demands of different situations call forth different aspects of one’s personality. For exam-ple, in a hospital emergency room we would want a doctor or a nurse who is

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calm and composed in the midst of chaos and able to think quickly on his/her feet about what action to take.

3.4.4 Family: In the early stages of development, family infl uences personality whereby values are inculcated by the parents, grandparents, aunts and uncles, as well as siblings.

Refl ect on how your parents and siblings have impact on your personal growth and personality. Sometimes, the child may model or identify with his/her parents in terms of the values and behaviours.

Do you see similarities and differences in your personality and that of your parents and siblings?

3.4.5 Social: Human are social animals, therefore, the socialization process is very important, be it in any cultures, sub-cultures or organizations.

The socialization process happens in the group or the organization a person belongs to in its growth phase. It begins from the initial contact between the mother and the infant. Later other members of the family and social groups like peers, school friends and members of the work group.

3.5 Explain the Personality Traits used in Myers-Briggs Type Indicator and the Big Five Model

Myers-Briggs Type Indicator (MBTI) is a personality test that measures four charac-teristics and classifi es people into 1 of 16 personality types.

MBTI looks at four dichotomous characteristics in the following four typologes, namely, Extroversion vs., Introversion (E vs. I), Sensing vs. Intuition (S vs. N), Thinking vs. Feeling (T vs. F), and Judging vs. Perceiving (J vs. P).

3.6 Describe the Major Personality Attributes Infl uencing OB3.6.1 Locus of control: Locus of control is the degree to which people believe that

they are masters of their own fate. A person’s perception of the source of his or her fate is termed locus of con-

trol. Locus of control is an indicator of core self-evaluation because people who think that they lack control over their lives tend to lack confi dence in themselves.

Internals are individuals who believe that they control what happens to them. Some people believe that they are masters of their own fate. If you are like them and believe that you control your own destiny, then you have what is called an internal locus of control.

Externals are individuals who believe that what happens to them is controlled by outside forces such as luck or chance. Some people believe that what hap-pens to them is due to luck or chance. For them and you who believe that oth-ers control your life, then you have an external locus of control.

3.6.2 Machiavellianism: Machiavellianism is the degree to which an individual is pragmatic, maintains emotional distance, and believes that the ends can justify the means. Read the book Il Principe or The Prince by Niccolo Machiavelli, which is about how to gain and use power. Based on that book, the personality characteristic of Machiavellianism (Mach) was created to describe the person-ality related to power. A person high in Machiavellianism is pragmatic, main-tains emotional distance, and believes that the ends can justify the means.

• High Machs manipulate more, win more, are persuaded less, and persuad others more than do low Machs.

• High Mach outcomes are moderated by situational factors. For instance, high Machs fl ourish (i) when they interact face to face with others rather

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than indirectly; (ii) when the situation has a minimum number of rules and regulations, thus allowing room for improvisation; and (iii) when emotional involvement with details irrelevant to winning distracts low Machs.

• High Machs will be productive in jobs that require bargaining skills or that offer substantial rewards for winning.

3.6.3 Self-monitoring: Self-monitoring refers to an individual’s ability to adjust his or her behaviour to external situational factors. Individuals high in self-moni-toring show considerable adaptability in adjusting their behaviour to external situational factors.

They are highly sensitive to external cues and can behave differently in dif-ferent situations. High self-monitors are capable of presenting distinct contra-dictions between their public persona and their private self.

3.6.4 Risk taking: In a business situation, risk taking is refl ected in how managers make decision, whether they are very calculative in terms of identifying all the risks involved, or decide on incomplete information and going with their hunch or gut-feeling.

Our propensity to take risk may affect the type of occupation we choose and excel in.

If you are comfortable in taking risks, you may do well in jobs that require you to take calculated risks such as mutual fund managers, venture capitalists, etc.

If you prefer to avoid risk, then jobs that are based on standard operating procedures may be better suited for your personality. Some people are very risk aversive, meaning they avoid risk at all cost whereas some thrive on risky situa-tion.

So what type of risk taker are you?

3.6.5 Type A personality: Type A personality—a person who is always running against time in order to do more in less time.

Type As

• Are always moving, walking, and eating rapidly;

• Feel impatient with the rate at which most events take place;

• Strive to think or do two or more things at once;

• Cannot cope with leisure time;

• Are obsessed with numbers, measuring their success in terms of how many or how much of everything they acquire.

Type B personality: A person who is very relaxed, unhurried, and take time to enjoy life.

Type Bs

• Never suffer from a sense of time urgency with its accompanying impatience;

• Feel no need to display or discus either their achievements or accomplish-ments unless such exposure is demanded in the situation;

• Play for fun and relation, rather than to exhibit their superiority at any cost;

• Can relax without guilt.

As a Type A person, you function well under moderate to high levels of stress.

3.6.6 Proactive personality: A proactive person is one who is able to look for oppor-tunities, take initiative to invoke action, and demonstrate perseverance until meaningful change occurs. Even though faced with constraints or obstacles, he or she will create positive change in his or her environment.

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3.7 Differentiate Personality Fit in Terms of Personality-Job Fit and Personality-Organization Fit

The Person-Job FitJohn Holland proposed a model of personality-job fi t based on the notion of fi t between an individual’s personality characteristics and his or her occupational environment.

In his model, Holland proposes six personality types, namely, Social, Enterprising, Conventional, Artistic, Realistic, and Investigative, which are presented in a hexagon.

Holland’s Model:

• There are intrinsic differences in personality among individuals,

• There are different types of jobs, and

• People in job environments congruent with their personality types should be more satisfi ed and less likely to voluntarily resign than should people in incongruent job (Robbins, 1996).

3.7.1 Personality-job fi t theory is a theory that identifi es six personality types and proposes that the fi t between personality type and occupational environment determines satisfaction and turnover.

3.7.2 The person-organization fi t: People fi nd compatibility at work when their personality matches the organization.

If individuals know their personality (either via MBTI or Big Five) and fi nd a compatible organization given their respective personality, they will fi nd a better fi t with the organizational culture.

As for yourself, if you are an extrovert, what kind of organization would fi t you better?

3.8 ValuesValues are a set of beliefs about particular things that we hold as important to us as individuals. Such personal values are refl ected in our ‘value system’.

This system holds our organization of beliefs relating to our preferred modes of conduct or end-states that is the notion of how we would like to behave and how we would like things to be.

The values we hold can be divided into two types: instrumental values and terminal values which can be discussed in the context of means and ends.

3.8.1 Instrumental values: Instrumental values refer to means by which we achieve desired ends. One way to think of instrumental values is that they are instru-ments or tools that guide our behaviours or how we act.

Think of things that you value that actually help you achieve other things, and without them it would be diffi cult for you to do so. For example, think of values such as honesty, ambitious, loving, and independent.

Can you achieve what you want to achieve in life without them? In order to excel, we must be honest, have ambition, love what we do and be

independent. What other instrumental values can you think of?

3.8.2 Terminal values: Terminal values are desired end-states or life goals. Think of the end in mind. What do you want have or to see happen, for example, world peace? So, for values such as happiness, wisdom, freedom, and security, these are the end states that we want for ourselves.

3.9 Value Confl icts As humans, we may share common ideas and opinions about the relative importance of the things around us. However we may hold some values that contradict with each other. This is called intrapersonal value confl ict.

Have you ever felt confl ict internally about values that you hold dear?

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3.9.1 Intrapersonal value confl ict occurs when highly ranked instrumental and ter-minal values pull an individual in different directions.

3.9.2 Interpersonal value confl ict occurs when combinations of instrumental and terminal values inevitably spark disagreements.

3.9.3 Individual–organization value confl ict occurs when values espoused or enacted by the organization collide with employee’s personal values.

3.10 Malaysian Work Values3.10.1 Preference for relationships: Trust and relationship building, preserving face,

‘we’ orientation, teamwork, harmony, cooperation, and personalized relation-ships. The Malaysian workforce places high premium in maintaining relation-ships in the workplace. As such, building relationships is seen as an important activity that is highly valued. Expatriate managers who may be more task-oriented may have to be sensitive to this value if they want to get the best out of their Malaysian employees.

3.10.2 Preference for hierarchy: Respect for senior/elderly people, non-assertiveness, respect for loyalty, status, good manners and courtesy, respect for hierarchy, respect for differences non-aggressiveness, status differential, and power dis-tance.

Equally important is the deference to authority and hierarchy among the Malaysian workforce. Therefore, in supervisor-subordinate relationships, much respect must be shown between the boss and the employees, especially when one has the honorifi c titles as in Malaysia whereas in American-based multinationals, people may go on fi rst name basis even though they are super-visors and subordinates.

Teaching Notes


3.1 What is Personality?3.2 Personality theories

3.2.1 Type Theory of Personality3.2.2 Trait Theory of Personality3.2.3 Psychoanalytic Theory of Personality3.2.4 Social Learning Theory of Personality3.2.5 The Humanistic Approach

3.3 Personality Determinants 3.4 Personality Traits

3.4.1 Myers-Briggs Type Indicator3.4.2 The Big Five Model

3.5 Major Personality Attributes Infl uencing Organizational Behaviour3.6 Personality and National Culture

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3.7 Achieving Personality Fit3.7.1 The Personality–Job Fit3.7.2 The Person–Organization Fit

3.8 Values3.9 Value Confl icts3.10 Malaysian Work ValuesRevision Questions


1 The case presents two blog entries by the fi rst Malaysian Cosmonaut, Dato Dr Sheikh Muszaphar Shukor Sheikh Mustapha. Students may want to analyse his personality based on the different instruments discussed in the chapter for example, the Myers-Briggs Type Indicator, Big Five Model, locus of control, Machiavellianism, self-monitoring, type A or B, risk taking and proactive personality.

2 Watch any of the following space movies: Apollo 13, The Right Stuff, 2010, Armageddon, Star Wars, Star Trek, Sunshine etc. or reruns of Angkasawan 1 - Soyuz TMA-11 10-21 October 2007. What kind of personalities is needed for future workforce in space? Are they any different from those who work on earth?

3 Ask students to identify a well-known person (celebrity, leader, politician, busi-ness persons) and describe their personality to the class. Alternatively, they can choose a family member (parents, siblings, etc.) whom they look up to and describe their personality.

4 Ask students to debate: (a) Do you need to have a good personality in order to be an effective leader? (b) Which work values are more important: Preference for relationships or prefer-

ence for hierarchy?


1 What is personality? Personality is the sum total of ways in which an individual reacts to and interacts

with others.

2 Discuss and distinguish the important personality theories. Type theory relates the features of face or body to the personality in simple and

subjective ways, but it fails to explain the complexities of the personalities.

Trait theory describes personalities by a set of features based on the following:

• determining the basic traits that provide a meaningful description of personali-ties.

• fi nding some ways to measure the traits.

Psychoanalytic theory of personality: Psychologist Sigmund Freud suggests that personality is composed of three elements—id, ego and super ego. The id refers exclusively to innate component of personality inherited at birth. The ego relates to reality. The super ego is a set of norms, values, ethics and attitudes which are reasonably compatible with the society. It judges whether the action is wrong or right.

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Social learning theory of personality: It regards the situation as an important determinant of behaviour. Humans learn by direct experience (learning through reinforcement) and vicarious learning (learning by observing).

Humanistic approach: Personality is studied with emphasis on the person’s potentials for self-direction and freedom of choice. Personality is explained by looking at two concepts, namely, self and self-actualization. The self contains ideas, perceptions and identity whereas self-actualization is the basic motivating factor infl uencing personality.

3 What determines personality? Heredity: Factors that were determined when one was fi rst conceived such as

physical stature, facial attractiveness, gender, temperament. Also infl uenced by parents.

Environment: The culture in which we are raised; our early conditioning; the norms among our family, friends, and social groups; and other infl uences that we experience.

Situation: Different demands of different situations call forth different aspects of one’s personality.

Family: Infl uences personality whereby values are inculcated by the parents, grandparents, aunts and uncles as well as siblings.

Social: Begins from the initial contact between the mother and the infant, other members of the family, and social groups like peers, school friends and members of the work group.

4 What are the major personality traits used in Myers-Briggs type indicator and the Big Five?

Myers-Briggs type indicator (MBTI): MBTI looks at four dichotomous character-istics in the following four typologies, namely, Extroversion vs. Introversion (E vs. I), Sensing vs. Intuition (S vs. N), Thinking vs. Feeling (T vs. F), and Judging vs. Perceiving (J vs. P).

Big Five factors (OCEAN)

Openness to experience is a personality dimension that describes someone in terms of imagination, sensitivity and curiosity.

Conscientiousness is a personality dimension that describes someone who is responsible, dependable, persistent and organized.

Extroversion is a personality dimension describing someone who is sociable, gre-garious and assertive.

Agreeableness is a personality dimension that describes someone who is good-natured, cooperative and trusting.

Emotional stability is a personality dimension that describes someone as calm, self-confi dent and secure.

5 How can one achieve personality fi t in terms of personality-job fi t and personality-organization fi t?

Person–organization fi t: People fi nd compatibility at work when their personality matches with the organization.

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According to Holland, personality–job fi t theory suggests that there are six per-sonality types and proposes that the fi t between personality type and occupational environment determines satisfaction and turnover.

Based on personality-job fi t theory, Holland proposes that people in job environ-ments congruent with their personality types should be more satisfi ed and less likely to voluntarily resign than should people in incongruent job.

6 What are terminal and instrumental values? Instrumental values: Alternative behaviours or means we use to achieve desired

ends, for example, honesty, ambitious, loving, independent.

Terminal values: Desired end states or life goals, for example, happiness, wisdom, freedom, security.

7 Describe the three types of value confl ict. Intrapersonal value confl ict occurs when highly ranked instrumental and terminal

values pull an individual in different directions

Interpersonal value confl ict occurs when combinations of instrumental and ter-minal values inevitably spark disagreements.

Individual–organization value confl ict occurs when values espoused or enacted by the organization collide with employee’s personal values.

8 What are the salient work values in the Malaysian workforce? Preference for relationships: The Malaysian workforce place high premium in

building and maintaining relationships in the workplace, for example, in trust and relationship building, preserving face, ‘we’ orientation, teamwork, harmony, cooperation, and personalized relationships.

Preference for hierarchy: Equally important is the deference to authority and hier-archy among the Malaysian workforce. Therefore, respect in supervisor-subordi-nate relationships is utmost important as well as values such as respect for senior/elderly people, non-assertiveness, respect for loyalty, status, good manners and courtesy, respect for hierarchy, respect for differences non-aggressiveness, status differential, and power distance.


1 The classifi cation of ‘E or I’ in the Meyers-Briggs Type Indicator stand for ____________.

A extroverted/intuitiveB emotional/introvertedC extroverted/introvertedD emotional/intuitive

2 Which of the following statements about the determinants of personality is true?A Personality appears to have no determinants.B Personality appears to be a result of both hereditary and environmental fac-

tors.C Personality appears to be a result of mainly environmental factors.D Personality appears to be a result of mainly hereditary factors.

3 Which dimension of the Big Five model refers to an individual’s propensity to defer to others?

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A AgreeablenessB Extraversion C Conscientiousness D Emotional stability

4 Which of the following tends to be true in individuals who have an internal locus of control?A They are less satisfi ed with their jobs.B They have lower absenteeism rates.C They are less alienated from the work setting.D They display strong OCB.

5 How would you describe an individual who is capable of presenting striking con-tradictions between who they are in public and who they are privately?A Narcissistic B High machC High self-monitoringD Low self-monitoring


Take the personality test online at: http://www.personalitypathways.com/type_inven-tory.html

http://keirsey.com/sorter/register.aspx. So what type are you? Compare and contrast with others in the class.

Assess yourself on Holland’s personality typology and fi nd out what careers that are best suited for you. http://www.hollandcodes.com/holland_code_career.html.

Read more about Angkasawan Sheikh Muszaphar in these websites:http://www.angkasawan.com.my/blog/index.php

http://www.angkasa.gov.my/welcome.php

http://www.nasa.gov/mission_pages/station/expeditions/expedition16/index.html

http://groups.yahoo.com/group/dr_sheikh_muszaphar/

http://videos.thestar.com.my/default.aspx?vid=504

10/10/07 Blast into history At exactly 9.23pm (Malaysian time), the Soyuz-FG rocket launcher carrying Malaysian astronaut Dr Sheikh Muszaphar Shukor blasted off from the Baikonur Cosmodrome in Kazakhstan. Prime Minister Abdullah Ahmad Badawi watched the live telecast of the launch at the Kuala Lumpur Convention Centre.

CHAPTER

4Emotion and Stress

Learning Outcomes


• What are emotions?

• What is emotional labour?

• The emotional dimensions.

• What are gender and emotions?

• What is stress?

• Stress and its consequences.

• How to manage stress.

Key Teaching Points

This chapter introduces students to the concept of emotions and how one needs to have good control over his/her emotional labour. Emotions comes in many dimen-sions are they have an infl uence over the individual’s reaction. Studies also show that there are differences in the way men and women process their emotions. Uncontrolled or suppressed emotions may lead to stress. As managers, we have to identify what is stress and what are the consequences of stress. More importantly, you must learn how to manage your stress.

4.1 What are Emotions? 4.1.1 Affect describes a broad range of feelings that people have.

4.1.2 Emotion is more of intense feeling that is directed to someone or something.

4.1.2 Moods are feelings that tend to be less intense than emotions which lack a con-textual stimulus.

4.2 Emotional LabourEmotional labour is described as a situation in which an employee expresses organiza-tional desired emotions during their interpersonal transactions.

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4.3 Explain the Emotion DimensionsDimension of emotions: variety, intensity and frequency and duration.

4.3.1 Variety—positive emotions (e.g. happiness, pride and love) and negative emo-tions (sadness, frustration and fear).

4.3.2 Intensity—different people will also portray different levels of emotions.

4.3.3 Frequency and duration—emotions will last according to one’s feeling about something.

4.4 What is the Relationship between Gender and Emotions?Modern psychological researches indicate that men and women possess different skills related to the sending and receiving of emotion.

4.4.1 In general, women are more emotionally expressive (Miller, 1976), women tend to express emotion through facial expression and interpersonal communication.

4.4.2 Men conceal or control their emotional displays (Buck, Miller and Caul, 1974). Men generally express emotion through actions, such as engaging in aggres-sive, dangerous, or distracting behaviour.

4.5 Applicability of EmotionsAbility to understand and interpret emotions will help in improving many organiza-tional behaviour applications. We need to understand the way it improves the OB application such as ability and selection, decision making, motivation, leadership, interpersonal confl ict and deviant workplace behaviours.

4.6 Explain StressStress is an adaptive response to an external situation that results in physical, psycho-logical or behavioural deviations for organizational participation.

Distress: High stress levels that have negative consequences.Eustress: The moderately low stress levels needed to activate people.

4.7 Explain Stress and Its ConsequencesStress can be derived from many sources. Since stress happens when an individual is confronted with an opportunity, constraint, or demand related to what he or she desired and for which the outcome is seen to be whether uncertain or important, the biggest source of stress is actually the environmental factors. This includes economic, political, technological and other environment-related issues.

Stress also occurs due to the organizational factors. Role, tasks, job, interpersonal demand, leadership, and organization structure are the examples of organization-related factors which can trigger stress among the employees.

Relationship among colleagues can also be one of the sources of stress.Our own characteristics can also lead to stress e.g. individual who has type A per-

sonality.Stressors are additive – stress tends to build up, e.g. a minor stress can lead to a

stressful situation because it accumulates.Consequences of stress – the impacts of stress are different towards different indi-

viduals. Those who can cope with their stress easily, will have less negative impact in their lives. The impact of stress can be analysed in three different aspects:

• Physiological symptoms

• Psychological symptoms

• Behavioural symptoms

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4.8 How do You Manage Stress?Manage stress from the perspective of individual, as well as the organization.

Individual – time management, physical exercise, relaxation, and social support network.

Organizational – reduce unclear job issues, practise good HR practices and increased job involvement.

Teaching Notes


4.1 What are Emotions?4.2 Emotional Labour4.3 Felt versus Displayed Emotions4.4 Dimensions of Emotions

4.4.1 Variety4.4.2 Intensity4.4.3 Frequency and Duration

4.5 Gender and Emotions4.6 External Constraints on Emotions

4.6.1 Organizational Infl uences4.7 Organizational Behaviour Application

4.7.1 Ability and Selection 4.7.2 Decision Making4.7.3 Motivation4.7.4 Leadership4.7.5 Interpersonal Confl ict4.7.6 Workplace Issues in Relation to Emotions

4.8 What is Stress?4.9 Understanding Stress and Its Consequences4.10 Potential Sources of Stress4.11 Consequences of Stress4.12 Nature of Stress4.13 Stress Moderators4.14 Managing Stress

4.14.1 Individual PerspectiveReview Questions


1 Ask the students to write down as many things in life that could cause stress to them. Next, ask them to rate which are the most stressful and least stressful to them.

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2. You can either collect the lists and collate before the next class or ask the students to list on the board and look at the frequency of occurrence. What patterns can you discern?


1 What are emotions? Emotion is an intense feeling that is directed to someone or something.

2 What is your understanding of emotional labour? Emotional labour is described as a situation in which an employee expresses

organizational desired emotions during their interpersonal transactions.

3 How would you explain the emotion dimensions? Dimension of emotions: Variety, intensity and frequency and duration. Variety: Positive emotions (e.g. happiness, pride and love) and negative emotions

(sadness, frustration and fear). Intensity: Different people will portray different levels of emotions. Frequency and duration: Emotions will last according to one’s feeling about

something.

4 What is the relationship between gender and emotions? Modern psychological researches indicate that men and women possess different

skills related to the sending and receiving of emotion.

• In general, women are more emotionally expressive (Miller, 1976), women tend to express emotion through facial expression and interpersonal communica-tion.

• Men conceal or control their emotional displays (Buck, Miller and Caul, 1974). Men generally express emotion through actions, such as engaging in aggressive, dangerous, or distracting behaviour.

5 Can you explain stress? Is it a bad thing to have? Stress is an adaptive response to an external situation that results in physical, psy-

chological or behavioural deviations for organizational participation. Stress can be derived from many sources. The biggest source of stress is actually the environ-mental factors, e.g. economic, political, technological and other environment-related issues. Stress also occurs due to organizational factors, e.g. role, tasks, job, interpersonal demand, leadership, and organization structure.

6 Explain stress and its consequences. Stress can be derived from many sources. Since stress happens when the individu-

al is confronted with an opportunity, constraint, or demand related to what he or she desired, and for which the outcome is seen to be whether uncertain or impor-tant, the biggest source of stress is actually the environmental factors. This includes economic, political, technological and other environment-related issues.

Stress also occurs due to organizational factors. Role, tasks, job, interpersonal demand, leadership, and organization structure are the examples of organization-related factors which can trigger stress among the employees.

Relationship among colleagues can also be one of the sources of stress. Our own characteristics can also lead to stress e.g. individual who has type A

personality. Stressors are additive: Stress tends to build up, e.g. a minor stress can lead to a

stressful situation because it accumulates.

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Consequences of stress: The impacts of stress are different towards different individuals. Those who can cope with their stress easily will have less negative impact in their lives. The impact of stress can be analysed in three different aspects:

• Physiological symptoms

• Psychological symptoms

• Behavioural symptoms

7 How do you manage stress? Manage stress from the perspective of individual, as well as the organization. Individual: Time management, physical exercise, relaxation and social support

network. Organizational: Reduce unclear job issues, practise good HR practices and

increased job involvement.


1 Stressors are:A the effects of stress.B the complex pattern of emotional, physiological, and related thoughts.C the interpretations a person makes of stress and strain.D the external demands that create stress.

2 Burnout can be caused by:A not feeling appreciated.B poor opportunities for promotion. C prolonged exposure to stress.D all of the above.

3 Overt reactions that express feelings about events are called:A moods.B expressions.C emotions.D all of the above.

4 The biggest source of stress are:A environmental factors.B individual factors. C organizational factors.D all of the above.

5 Which of the following statements is not true about the difference between men and women when it comes to emotional reactions?A Women show greater emotional expression.B Men express emotions more intensely.C Men express anger more frequently.D Women may have a greater need for social approval.


http://stress.about.com/

http://www.webmd.com/balance/features/how-male-female-brains-differ

CHAPTER

5Attitude and Behaviour at Work

Learning Outcomes


• What is conformity?

• Attitudes at work.

• How rights to privacy are interpreted?

• Bases for discrimination at work.

• Different approaches to discipline.

• The individual’s responsibilities to the organization.

• Confl ict and its resolution.

• What is group dynamics?

• What is informal organization?

• What is informal communication?

Key Teaching Points

This chapter introduces students to the concept of organizational behaviour as a means of understanding people: why they behave the way they do at the workplace. It discusses relationships of individuals to organizations, which include conformity, rights of privacy, policies pertaining to substance abuse, discriminatory practices, dis-cipline, and individual-organization responsibilities. This is to enhance organizational effectiveness and effi ciency.

5.1 Attitudes at Work Job satisfaction is the general attitude that people have about their jobs. Many factors can bring about satisfaction or dissatisfaction such as pay, the job itself, promotion opportunities, support from supervisors and relationship with co-workers.

Employee job satisfaction in an organization is the main source of concern for man-agement. Studies have shown that job satisfaction can partially explain variations in employee’s commitment, absenteeism and turnover levels.

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5.1.1 Job satisfaction: How an individual feels about his job. Measures of job satisfaction. The job characteristics model (JCM) uses the job

diagnosis survey (JDS) as a job analysis method. The job diagnosis survey (JDS) is a data collection instrument that can be used to measure job charac-teristics. The fi ve core job characteristics measured by JDS are skill variety, task identity, task signifi cance, task autonomy, and task feedback.

Two main effects of job dissatisfaction are employee withdrawal (absentee-ism and turnover) and job performance. Research has shown that the lower the satisfaction, the more likely employees are to be absent from work.

5.1.2 Organizational commitment: How a person identifi es with and feel a part of the organizations

5.1.3 Job involvement: How willing a person is to work hard and to apply efforts beyond normal job satisfaction

5.2 ConformityConformity is following the norms of others without independent thinking. One nor-mally conforms to three general situations:

• First, an individual conforms to the organization that has employed him/her. An example for this situation is switching off the fi re once the water comes to a boil.

• Second, the individual may conform to the informal work group.

• Thirdly, the individual may conform to the external community.

5.3 Rights of PrivacyInvasion of the rights of privacy is the intrusion of an individual’s private life and the unauthorized release of the person’s information, which could cause suffering or harm to the person in question.

Employees believe that their religious, political and social beliefs are their own per-sonal domain and should not be intruded upon and be subject to exploration and scrutiny.

However, large organizations develop policy guidelines to establish uniform prac-tices, at the same time provide course of actions for any unusual situations as and when they arise.

5.4 DiscriminationDiscrimination occurs when individuals are treated differently from others because of the race they belong to, colour of their skin, religion, handicap, age, nationality and gender.

• Racial discrimination – based on race

• Colour discrimination – based on the colour of the skin

• Religious discrimination – based on religion

• Handicap discrimination – based on ability/disability

• Age discrimination – based on age

• National origin discrimination – based on national origin

• Sexual harassment – based on gender

5.5 Discipline Discipline is the act of infl uencing behaviour through reprimand. Preventive discipline is action taken to encourage employees to follow rules and regulations to avoid viola-tion of the law while corrective discipline is action that follows the breach of a law or rule.

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5.6 Individual’s Responsibilities to the OrganizationAs a member of an organization, individuals have obligations to the organization and vice versa.

5.6.1 Organizational citizenship refers to the situation when an employee goes beyond his/her job descriptions to help the organization achieve its mission and goals.

5.6.2 Ethical leadership: Ethical leadership may alleviate some forms of unethical behaviours, such as white-collar crimes – the Enron case. These ethical problems proliferate in most cultures. Some of these are even widely accepted in some parts of the world and an example of this is bribery.

The solution may partly lie in ethical leadership. Company policies should be written and strictly practised and reinforced organization-wide.

5.6.3 Whistle blowing is the act of disclosing misconduct to an internal or external source.

• Such misconduct can be the failure on the part of the organization to inform the general public about the defect of a certain product or any other form of activities which seriously violate social standards.

• However, whistle blowers often have been the subject of employer retaliation, such as harassment, transfer or to a greater extent, even discharge.

5.7 Interpersonal Behaviour and Confl ict Management5.7.1 Confl ict management: Confl ict can take place at three different levels:

• Intrapersonal confl ict – confl ict can take place within the employee himself or herself

• Interpersonal confl ict – confl ict can occur between individuals or groups

• Inter-group confl ict – confl ict that occurs across organizations.

5.7.2 Effects of confl ict: People are encouraged or motivated to look for approaches that will resolve the issues; problems are brought out in the open where mem-bers of the group will have the opportunity to come face to face with problem and have the opportunity to suggest solutions; and employees become more committed to the outcome. when they are engaged in the decision-making.

Disadvantages of confl ict: Lasting longer than it should that it may become more intense over time; cooperation and teamwork may also deteriorate; dis-trust and hatred among members may develop; and it may also become a cause for organizational decline as it leads to inability to reach consensus and indecision.

5.7.3 Managing confl ict: Management can use its power to resolve confl icts and motivate units to cooperate; establish a procedural system that allows parties to air their grievances or use a third-party negotiator; or resolve confl ict by exchanging/rotating/terminating individuals.

Assertiveness: The process of expressing feelings, asking for legitimate changes, and giving and receiving honest feedback.

Transactional analysis: The study of social transaction between people in the assertive or non-assertive manner.

5.8 Group DynamicsThe social process by which people interact face-to-face in small groups.

It will be discussed in Chapter 7 in detail.

5.9 Informal OrganizationsA network of personal and social relations which is not via the formal organization.

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5.10 Informal Communication Communication that is not controlled by the formal organization and does not follow the offi cial chain of command such as grapevine in terms of oral or written or elec-tronic. This will be further discussed in Chapter 8.

Teaching Notes


5.1 Attitudes at Work 5.1.1 Job Satisfaction 5.1.2 Organizational Commitment5.1.3 Job Involvement

5.2 What is Conformity?5.3 Rights of Privacy5.4 Bases for Discrimination at Work5.5 Discipline5.6 Individual’s Responsibilities to the Organization

5.6.1 Organizational Citizenship5.6.2 Ethical Leadership5.6.3 Whistle Blowing

5.7 Level of Confl ict5.7.1 Assertive Behaviour5.7.2 Transactional Analysis

5.7 Interpersonal Behaviour and Confl ict Management


Debate: After reading this chapter, evaluate yourself and answer the following: ‘What kind of employee am I/would I be?’ in terms my attitudes and behaviours at work (dis-cipline, confl ict, communication)?


1 What is conformity? Conformity is following the norms of others without independent thinking. One

normally conforms to three general situations

2 What does the rights of privacy refer to? Rights of privacy refers to the employee’s individual private life. Organizations

must respect and avoid the unauthorized release of the person’s information, which could cause suffering or harm to the person in question.

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3 Identify the bases for discrimination at work. Discrimination occurs when individuals are treated differently than others. The

bases for discrimination at work includes race, colour of their skin, religion, handicap, age, nationality and gender.

• Racial Discrimination – based on race

• Colour Discrimination – based on the colour of the skin

• Religious Discrimination – based on religion

• Handicap Discrimination – based on ability/disability

• Age Discrimination – based on age

• National Origin Discrimination – based on national origin

• Sexual Harassment – based on gender

4 What are the different approaches to discipline? Discipline is the act of infl uencing behaviour through reprimand. The two differ-

ent approaches are:

• Preventive discipline, which is action taken to encourage employees to follow rules and regulations to avoid violation of the law

• Corrective discipline, which is action that follows the breach of a law or rule.

5 List the individual’s responsibilities to the organization. As a member of an organization, individuals have obligations to the organization

and vice versa. Three areas of individual’s responsibilities include:

• Organizational citizenship refers to when an employee goes beyond his/her job descriptions to help the organization achieve its mission and goals.

• Ethical leadership: Ethical leadership may alleviate some forms of these unethi-cal behaviours.

• Whistle blowing: The act of disclosing misconduct to an internal or external source.

6 Discuss the strategies of confl ict resolution. In managing confl ict, management can use their power to resolve confl icts and

motivate units to cooperate; establish a procedural system that allows parties to air their grievances or use a third-party negotiator; or resolve confl ict by exchang-ing/rotating/terminating individuals.

For the individual employees, they can be trained on assertiveness of the process of expressing feelings, asking for legitimate changes, and giving and receiving honest feedback.

7 What are informal organizations? Informal organizations are a network of personal and social relations not via the

formal organization. Such network can be important source of information for information and support for the employees.


1 Attitudes are:A temporary feelings about something.B a combination of positive and/or negative feelings about one’s job.C relatively long-lasting cluster of feelings, beliefs, and behaviour tendencies.D negative views of others based on the group one believes they belong to.

2 Which of the following is true about job satisfaction?A Blue-collar workers tend to be more satisfi ed than white-collar workers.

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B Women and minorities tend to be more satisfi ed than non minority workers.C Younger people experience greater job satisfaction than older people.D The more experienced a worker, the more satisfi ed he/she tends to be.

3 An example of hygiene factor, according to the two-factor theory is:A pay.B physical working conditions.C job security.D all of the above.

4 Job dissatisfaction may impact which of the following variables:A Absenteeism, turnover, and job performance.B Unemployment, unionization, and organizational commitment.C Work-related attitudes, prejudice, and unemployment.D Organizational commitment, organizational citizenship, and involuntary

turnover.

5 Organizational commitment:A is unrelated to job satisfaction.B has a much stronger relationship to job satisfaction than job performance

does.C is a function of employee attitude based on the management style of their

managers. D is synonymous with job satisfaction.


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CHAPTER

6Motivation

Learning Outcomes


• What is motivation process?

• Maslow’s needs hierarchy theory.

• The difference between Maslow’s and McClelland’s theories.

• How motivators are different from hygiene factors.

• Application of goal setting to system performance.

• The key relationships in expectancy theory and its practical implications for moti-vating employees.

• The role of perceived inequity in employee motivation.

• How the contemporary theories of motivation complement each other.

• Issues to be addressed in implementing a motivational programme.

• The background of job design as an applied area of work motivation.

• The job characteristics model of job design.

• Financial rewards as motivators.

Key Teaching Points

This chapter seeks to provide a review of the earlier motivational theories and alterna-tive motivational theories such as Maslow’s need hierarchy theory, Herzberg’s Two-factor theory and McClelland’s learned needs theory which have been well accepted. It introduces a number of alternative theories beginning with expectancy theory, goal-setting and equity theory. The discussion of equity theory is related to the concept of organizational justice as a practical way of relating equity theory back to motivating employees. The chapter continues with identifying limitations of motivational theo-ries. Finally, the chapter describes challenges to understanding motivation in today’s organizations.

6.1 What is Motivation?Motivation is defi ned as forces within an individual that infl uence the direction, inten-sity, and persistence of the individual’s voluntary behaviour.

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6.2 Early Theories of Work MotivationNeeds are defi ned as either physiological or psychological defi ciencies that trigger behaviour to satisfy those needs. Needs theories include Maslow’s need hierarchy theory, Herzberg’s Two-factor theory and McClelland’s learned needs theory.

6.2.1 Maslow’s needs hierarchy theory: Maslow proposed that motivation is a func-tion of fi ve basic needs-physiological, safety, social, esteem, and self-actualisa-tion.

6.2.2 Herzberg’s two-factor theory: Herzberg’s two-factor theory identifi es hygiene factors as source of job dissatisfaction and motivation factors as the source of satisfaction on job.

6.2.3 Alderfer’s ERG theory: Alderfer’s ERG theory identifi es three groups of needs: existence, relatedness and growth needs to affect motivation.

6.2.4 McClelland’s learned needs theory

• Need for achievement (nAch) is the desire to do better, solve problems or master complex tasks.

• Need for power (nPower) is the desire to control others and infl uence their behaviour.

• Need for affi liation (nAff) is the desire for friendly and warm relations with others.

6.3 Alternative/Contemporary Theories of Work Motivation6.3.1 Vroom’s expectancy theory: Vroom’s expectancy theory states that work moti-

vation is dependent on an individual’s beliefs regarding effort/performance relationships and work outcomes.

Expectancies represent an individual’s belief that a particular degree of effort will be followed by a particular level of performance.

Instrumentality refers to an individual’s belief that a particular outcome is contingent on accomplishing a specifi c level of performance.

Valence is the value that an individual attaches to various outcomes.

6.3.2 Equity theory: Equity theory postulates that people will act to eliminate any felt inequity in the rewards received for their work in comparison with others. The concept of organizational justice relates equity theory back to motivating employees.

6.3.3 Goal-setting theory: Goal-setting theory is the process of setting goals with feedback for motivation and higher performance.

In setting goals, we recommend setting SMART goals – Specifi c, Measurable, Attainable, Result oriented, and Time bound

6.4 Limitations of Motivational Theories Human behaviours resulted from multi-source, therefore managers should not assume that everything means the same to everyone. Work is not necessarily one’s life focus.

6.5 Challenges to Understanding Motivation in Today’s Organizations 6.5.1 Motivating performance through diversity: Globalization has resulted in

organizations having multi-national employees. Prior to this, organizations manage diversity based upon demographic factors but with globalization, diversity includes factors such as culture, beliefs and expectations and not only down to items such as age, gender and ethnicity differences.

Motivating employees with diverse differences becomes even more challeng-ing to management as more information and understanding about more factors

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which may affect the type of motivation approach are to be taken into consid-eration.

6.5.2 Motivating performance through different employment patterns: To over-come the changes in economy, one example is MAS adopting fl exible employ-ment practices in a response to reduce operating cost.

6.6 Job Design Job design refers to any set of activities that alters specifi c jobs so as to increase the job responsibilities, job activities or to change how the job is to be executed.

6.6.1 Job rotation: It refers to moving employees from one job to another to add variety and reduce boredom by allowing them to perform different tasks.

6.6.2 Job enlargement: It refers to expansion of the number of different tasks per-formed by an employee in a single job. This process adds to the variety of jobs and makes it more interesting and challenging.

6.6.3 Job enrichment: It means adding few more motivators to a job to make it chal-lenging and rewarding.

6.7 The Job Characteristics ModelThe job characteristics model (JCM) is regarded as one of the most comprehensive frameworks for job redesign. In this model, Hackman and Oldham (1975, 1976, and 1980) tried to link the situational characteristics of the model to employee’s intrinsic motivation. Intrinsic motivation happens when one gets motivated because of internal factors that could result in a good feeling.

Core Job

Characteristics

• Skill variety• Task identity• Task signifi cance

• Autonomy

• Feedback

Psychological States

• Experienced meaning-fulness of work

• Experienced respon-sibility for outcomes of work

• Knowledge of the actual results of work

Moderators

• Knowledge and skill• Growth need strength• Context satisfaction

Outcomes

• High intrinsic work motivation

• High satisfaction with work

• High quality of work performance

• Low absenteeism and turnover

} }

Skill variety: The extent to which a job incorporates a number of different activities and skills.

Task identity: The extent to which the job incorporates the performance of a whole or completely identifi able piece of work. Task identity is high when a person works on a product from beginning to the end and able to see the fi nish product.

Task signifi cance: The extent that the job affects the lives of other people.Autonomy: The extent that the job allows an individual to experience freedom,

independence in executing a job or making decisions.

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Feedback: The extent that the job provides response about on-the-job performance or the effectiveness of their work.

6.8 Financial Rewards as Motivators People join organizations expecting rewards. The role of money or pay as a motivating agent has been well researched.

There are four types of rewards in organizations are:

6.8.1 Membership and seniority-based rewards: Benefi ts to employees depend on when they have joined an organization and their stay in a job. Usually advance-ment, pay raise and benefi ts depend on the seniority of the employees.

6.8.2 Job status-based rewards: Financial rewards are given according to the posi-tion in job hierarchy. This type of reward distribution ensures internal equity.

6.8.3 Competency-based rewards: Modern organizations are increasingly reward-ing their employees on the requisite competencies. Competencies are the knowledge, skills and the abilities (KSAs) employees possess for delivering the performance on the job. Objective of such reward is to motivate the employees to acquire new skill sets. Such additions become essential in IT and similar organizations for new product development.

6.8.4 Performance-based rewards: Modern high performance organizations reward the performance at individual, team and organizational levels for motivating employees to deliver enhanced performance. Some common example of indi-vidual rewards are commission and bonus. Examples of team rewards are gain sharing and group raise.

Teaching Notes


6.1 What is Motivation?6.2 Early Theories of Work Motivation

6.2.1 Maslow’s Needs Hierarchy Theory6.2.2 Herzberg’s Two-Factor Theory6.2.3 Alderfer’s ERG Theory6.2.4 McClelland’s Need Theory

6.3 Alternative Theories of Work Motivation6.3.1 Vroom’s Expectancy Theory6.3.2 Equity Theory of Motivation6.3.3 Goal Setting Theory

6.4 Limitations of Motivation Theories6.5 Challenges in Motivating in Organizations 6.6 Job Design 6.7 The Job Characteristics Model

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6.8 Financial Rewards as MotivatorsReview Questions


What motivates you? List all the things that motivate you. How do you motivate your-self to do something (e.g. studying for an exam)?

Study the biography of successful corporate leaders or individuals. What motivates them?


1 Discuss the role of perceived inequity in employee motivation Perceived equity happens when employees perceive their pay to be fair in compar-

ison with others in the organization. This in turn increases their motivation to continue performing in their jobs. Perceived inequity happens when employees do not fi nd direct relationship between rewards with their performance on the job. This will lead to de-motivation of the employees.

2 Explain how the contemporary theories of motivation complement each other. Contemporary theories of motivation include the following:

Vroom’s expectancy theory - work motivation is dependent on individual’s beliefs regarding effort/performance relationships and work outcomes.

Equity theory is based on organizational justice, relating equity theory back to motivating employees.

Equity theory postulates that people will act to eliminate any felt inequity in the rewards received for their work in comparison with others.

Goal setting theory is the process of setting goals with feedback for motivation and higher performance.

These theories complement each other in that human behaviours resulted from multi-source and these theories are trying to explain how and what factors are relevant. The onus is on managers not to assume that everything means the same to everyone.

3 Discuss the background of job design as an applied area of work motivation. Job design refers to any set of activities that alters specifi c jobs so as to increase the

job responsibilities, job activities or to change how the job is to be executed by designing the job.

Job rotation: It refers to moving employees from one job to another to add variety and reduce boredom by allowing them to perform different tasks.

Job enlargement: It refers to expansion of the number of different tasks per-formed by an employee in a single job. This process adds to the variety of jobs and makes it more interesting and challenging.

Job enrichment: It means adding few more motivators to a job to make it chal-lenging and rewarding.

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4 Diagram the job characteristics model of job design.

Core Job

Characteristics

• Skill variety• Task identity• Task signifi cance

• Autonomy

• Feedback

Psychological States

• Experienced meaning-fulness of work

• Experienced respon-sibility for outcomes of work

• Knowledge of the actual results of work

Moderators

• Knowledge and skill• Growth need strength• Context satisfaction

Outcomes

• High intrinsic work motivation

• High satisfaction with work

• High quality of work performance

• Low absenteeism and turnover

} }

5 Identify strategies to improve employee motivation through job design. Job design refers to any set of activities that alters specifi c jobs so as to increase the

job responsibilities, job activities or to change how the job is to be executed

Job rotation: It refers to moving employees from one job to another to add variety and reduce boredom by allowing them to perform different tasks.

Job enlargement: It refers to expansion of the number of different tasks per-formed by an employee in a single job. This process adds to the variety of jobs and makes it more interesting and challenging.

Job enrichment: It means adding few more motivators to a job to make it chal-lenging and rewarding.


1 The best known theory of motivation is:A Alderfer’s ERG.B Maslow’s Need Hierarchy Theory.C Adam’s Expectancy Theory.D Locke and Latham’s Path-Goal Theory

2 The key to equity theory is the:A outcome the employees receives for his/her effort.B employee’s commitment to the job and company.C employee’s input. D employee’s perception regarding the balance of outcome to input.

3 In expectancy theory, the belief that good performance will be rewarded is known as:A instrumentality.B expectancy.C valence.D procedural justice.

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4 Which element of job redesigning does the job characteristics model expand?A Critical psychological statesB Job enlargementC Job enrichmentD Job expectancy

5 The need for achievement (nAch) in McClelland’s learned needs theory refers to the desire A to do better, solve problems or master complex tasks.B to control others and infl uence their behaviour.C for friendly and warm relations with others.D for making a job challenging and rewarding.


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CHAPTER

7Groups and Teams

Learning Outcomes


• What are groups and teams?

• Types of groups.

• How to differentiate between formal and informal groups.

• Stages of group development.

• How to identify the key factors in explaining group behaviour.

• The benefi ts and disadvantages of cohesive groups.

• Group properties: explaining group behaviour.

• The work group as an open system.

• Groups versus teams.

• Types of teams.

• Team issues.

• Challenges before effective teamwork.

• How to build a high performance team.

• Contemporary issues in managing teams.

Key Teaching Points

In this chapter, you will be introduced to the concept of group dynamics. We need to understand the different types of groups or teams that exist in the work setting and how they develop. We also need to learn how to make teams more effective and encour-age teamwork. Besides creating a positive impact on business performance, teams have been found to improve organizations’ productivity, as well as employees’ Quality of Working Life.

7.1 Differentiate between Formal and Informal Groups 7.1.1 A group refers to two or more interdependent individuals who interact to

achieve particular objectives.

7.1.2 Formal groups: Formally appointed by the organization to carry out certain functions or tasks.

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Formal groups may include Command Group and Task Force. Task force can be either permanent or temporary.

7.1.3 Informal groups: Formed by employees for social purposes based on friend-ship or interest.

Friendship group: A group of employees who usually go out together for lunch, golfi ng, shopping, etc.

Interest group: A group of employees who congregate based on specifi c interests such as music.

7.2 Compare Two Models of Group Development7.2.1 Five phases of group development: Tuckman suggested that there are fi ve

stages of group development, namely, forming, storming, norming, perform-ing, and adjourning.

7.2.2 The punctuated equilibrium theory was espoused by Gersick (1988, 1989) as an alternate theory to explain group development especially for temporary groups or teams. The punctuated equilibrium theory suggests that groups or teams do not have to follow a step ladder like the fi ve stage group development. There seems to be a consistent time span or period whereby a group is formed and when they change the way they work.

First phase: Team will defi ne the goals in the fi rst meeting. The team’s activities will be driven by inertia.

Transition: About halfway of the given period, a transition happens to signify the end of the fi rst phase. This transition will result in a drastic change in the team’s activities.

Second phase: Following the transition, the second phase inertia will take over with heightened level of activities.

7.3 Identify the Key Factors in Explaining Group Behaviour7.3.1 Behaviour and performance of a group can be explained by its properties,

namely, composition, role, size, norm, and cohesiveness. (a) Composition refers to the nature and attributes of team members.(b) Roles are expected behaviour patterns attributed to someone occupying a

given position in a social unit.(c) Size: Teams with 5 to 7 members have an advantage in that they are small

enough to allow for interaction and big enough to generate ideas, fi nd solutions to stalemate situations as the odd number of members.

(d) Norms are a form of expectations with regards to the behaviour of its team members.

(e) Cohesiveness refers to the degree to which members are attracted to each other and are motivated to stay in a group.

(f) Formal leadership: Leader is the main representative and exert infl uence on group tasks and members.

(g) Status congruence: Social ranking within the group.

7.4 Group vs. Team A team refers to a group whose individual efforts result in a performance that is greater than the sum of the individual inputs

7.5 Types of Teams7.5.1 Problem-solving teams: Group of 5 to 12 employees from the same department

working on ways to improve quality, effi ciency and their work environment

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7.5.2 Self-managed work teams also known as self-directed work teams and con-sists of 10 to 15 employees who manage their own work and take on the responsibilities of their supervisors

7.5.3 Cross-functional teams: Employees from different work areas or functions working together to achieve a task

7.5.4 Virtual teams: Teams that use computer technology to connect geographically dispersed team members in accomplishing a common task.

7.6 Challenges before Effective Teamwork

• Cooperation – integration of team member’s work effort

• Communication – manage the team communication

• Training – training members with technical and interpersonal skills is important for good team work

• Rewards – individual vs. team rewards

7.7 Improving Team Effectiveness There are several ways to improve the effectiveness of a team or group including:

• Setting clear team goals.

• Have a plan for improvement

• Have clear roles

• Clear communication

• Team members’ behaviours

• Proper procedure for decision making

• Equal involvement

• Set guidelines for group norms

• Understand the group process

7.8 Contemporary Issues in Managing Teams

• Quality of work life (QWL) in terms of job satisfaction, growth needs satisfaction, social needs satisfaction, group satisfaction, organization commitment and trust.

• Getting people to be team players: Good selection and proper training to foster teamwork.

Teaching Notes


7.1 Groups 7.2 Types of Groups7.3 Stages of Group Development

7.3.1 Five Stages of Group Development7.3.2 Punctuated Equilibrium Theory

7.4 Key Factors in Group Behaviour7.5 Groups versus Teams

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7.6 Types of Teams7.7 Challenges before Effective Teamwork7.8 Improving Teams Effectiveness7.9 Contemporary Issues in Managing TeamsRevision Questions


At the beginning of the semester, the students were asked to form a team of 4-5 per-sons, and select a team leader. Each team must be truly diversifi ed in terms of race and sex. Every team member is responsible to ensure he/she is playing his her role in a responsible fashion. (a) Ask the students to describe their respective group/team. Are they a group or a

team? What kind of group or team are they? (b) Ask the students to describe their teams using the Five Stages of Group

Development or Punctuated Equilibrium Theory. At what stage/phase are they?


1 What are the differences between formal and informal groups? Formal groups: Formally appointed by the organization to carry out certain func-

tions or tasks

Formal groups may include command group and task force. Task force can be either permanent or temporary.

Informal groups: Formed by employees for social purposes based on friendship or interest

Friendship group: A group of employees who usually go out together for lunch, golfi ng, shopping, etc.

Interest group: A group of employees who congregate based on specifi c interests such as music.

2 Describe and compare the two models of group development. The punctuated equilibrium theory suggests that groups or teams do not have to

follow a step ladder like the fi ve stage group development. There seems to be a consistent time span or period whereby a group is formed and when they change the way they work.

3 What are the key factors in explaining group behaviour?(a) Composition refers to the nature and attributes of team members.(b) Roles are expected behaviour patterns attributed to someone occupying a

given position in a social unit. (c) Size: Teams with 5 to 7 members have an advantage in that they are small

enough to allow for interaction and big enough to generate ideas, fi nd solu-tions to stalemate situations as the odd number of members.

(d) Norms are a form of expectations with regards to the behaviour of its team members.

(e) Cohesiveness refers to the degree to which members are attracted to each other and are motivated to stay in a group.

(f) Formal leadership: Leader is the main representative and exerts infl uence on group tasks and members

(g) Status congruence: Social ranking within the group.

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4 What are the different types of teams? Teams can do a variety of things. They can make products, provide services, nego-

tiate deals, coordinate projects, offer advice, and make decisions. The four most common types of team are problem-solving teams, self-managed teams, cross-functional teams, and virtual teams.

On problem-solving teams, members share ideas or offer suggestions on how work processes and methods can be improved.

Self-managed work teams are groups of employees (typically 10 to 15 in number) who perform highly related or interdependent jobs and take on many of the responsibilities of their former supervisors. Fully self-managed work teams even select their own members and have the members evaluate each other’s per-formance.

Cross-functional teams are made up of employees from about the same hierar-chical level, but from different work areas, who come together to accomplish a task.

Virtual teams use computer technology to tie together physically dispersed members in order to achieve a common goal. They allow people to collaborate online using communication links like wide-area networks, video conferencing, or e-mail, whether they’re only a room away or continents apart. Virtual teams can do all things that other teams do – share information, make decisions, and complete tasks.

5 How do you create an effective team? To create an effective team, we can do the following activities:

• Setting clear team goals.

• Have a plan for improvement

• Have clear roles,

• Clear communication

• Team members’ behaviour

• Proper procedure for decision making

• Equal involvement

• Set guidelines for group norms

• Understand the group process

6 What are the contemporary issues in managing teams? Quality of work life (QWL) in terms of job satisfaction, growth needs satisfaction,

social needs satisfaction, group satisfaction, organization commitment and trust. Getting people to be team players: Good selection and proper training to foster

teamwork.


1 Employees who band together to seek improved working conditions form a(n) ____________ group.A unionB supportC interestD work

2 Which stage in group development is most characterized by uncertainty?A IntroductionB StormingC FormingD Norming

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3 According to the punctuated equilibrium model, for the fi rst half of the project, groups tend to experienceA reorganization and redirectionB mid-life crisisC inertia D markedly accelerated activity

4 The following factors help explain group behaviour except:A composition.B communication.C cohesiveness.D norms.

5 Which of the following is not likely to increase group cohesiveness?A A high level of group productivity.B Members spending a lot of time together.C The existence of external threats.D The group is physically isolated.



CHAPTER

8Communication

Learning Outcomes


• What is communication?

• How managers infl uence others through communication

• Types of communication.

• Organizational communication.

• Barriers to organizational communication.

• Informal communication.

• Communication in global organizations.

Key Teaching Points

8.1 What is Communication Communication refers to the exchange of information and ideas between two parties and is not limited to only verbal communication but it entails all forms of communi-cation including non-verbal. Communication can either be internal or external.

Communication can be broken down into several phases linking the sender and receiver.

Basically, there are six phases in the communication process.

8.1.1 Sender has an idea: You have an idea you want to share with someone

8.1.2 The sender encodes the idea: Encoding is the process by which you translate your idea into a form of message that could be understood by the receiver.

This is where you decide the choice of words, the form of the message, the organization of the message, length, tone, style, etc. These depend on who your audience is and the situation, idea and of course your personal style.

8.1.3 The sender transmits the message to the sender: Send out the message to the receiver.

Choose the medium and channel. The medium can be anyone of these or a combination, for example, tele-

phone, letter, memos, e-mail, report, face-to face exchange, etc. The channel

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can be either spoken or written. Choices of channel and medium depend great-ly on the geographic location of the audience, size of audience, formality required and the urgency of the matter.

8.1.4 The receiver gets the message: The receiver has to receive the message fi rst and understand after listening to or reading the message.

8.1.5 The receiver decodes the message: When the receiver receives and tried to understand it, he is actually decoding the message.

8.1.6 The receiver sends feedback: After decoding the message, the receiver may respond accordingly and will response to you. This feedback will allow you to evaluate the effectiveness of your message.

Noise: Anything that interferes with the process of communication. It is an inherent part of the communication process and affects the transmission. Noise can be bad handwriting and poor quality paper in written communication, or outside interfer-ence.

8.2 Types of CommunicationThere are fi ve types of communication:

• Interpersonal communication: The exchange of messages between two people.

• Formal and informal communication: It is communicating with employees within the chain of command through writing formal documents as well as informal listen-ing and interactions.

• Internal and external communication: It is the exchange of information and ideas within or outside an organization for creating understanding. Internal communica-tion or organizational communication fl ows typically in three directions: down-ward, upward, and horizontally.

• Non-verbal communication: The act of speaking without using words.

• Active listening: Being aware that the listener plays an important role in communi-cation.

Effective communication enables managers to infl uence others to adopt their suggested ideas. To become effective managers, they need to know the importance of listening, speaking and interpersonal communication. An effective and effi cient communicator also needs to understand the strategic importance of a wide variety of methods and media for interacting with people at both individual and group levels.

8.3 Organizational Communication8.3.1 Communication network: Organizational communication takes both the

form of formal and informal communication. Formal communication chan-nels are those that fl ow within the chain of command, and normally, follow the organizational chart.

Downward communication: Refers to messages and information that fl ows from top management to subordinates.

Upward communication: Formal upward communication includes messages that fl ow from the lower to higher levels in the organization’s hierarchy, includ-ing problems and exceptions, suggestions for improvement, performance report, grievances and disputes, and fi nancial and accounting information.

Horizontal communication: The lateral or diagonal exchange of information among workers, for intradepartmental problem solving, interdepartmental coordination, change initiative and improvements.

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8.4 Barriers to Organizational Communication Anywhere along the process, the message can be distorted due to the interruptions or noise. These barriers include perceptual and language differences, restrictive environ-ment, distractions, deceptive communication tactics and information overload.

1 Perceptual differences: Different understanding of the same communication and results in miscommunication.

2 Language differences: Barriers also exist because words can be interpreted in more than one way known as semantic barriers.

3 Filtering of information: Filtering is screening out before a message is passed on to someone else. In business, the fi ltering happens when information fl ows between different levels in any organization. Information is differently interpret-ed, embellished, sharpened and condensed by the receiver in the process.

4 Poor listening: Perhaps the most common barrier to reception is simply a lack of attention or concentration on the receiver’s part.

5 Apathy or differing emotionality: Every message contains both a content meaning and a relationship meaning based on feelings. An upset person tends to ignore or distort what the other person is saying and is often unable to present feelings and ideas effectively. Another person may be apathetic (devoid of emotions) and may not receive message in the desired context, resulting in misunderstanding.

6 Cultural differences: Differences in background can be one of the communication barriers to overcome. Age, education, gender, social status, economic position, cul-tural background, temperament, health, beauty, popularity, religion and political belief can all separate one person from another and make understanding diffi cult.

7 Physical distractions: Many times external noise such as bad handwriting and poor quality paper in the written communication or lack of concentration in the oral communication provide distraction and affects the decoding and interpreta-tion process of the receiver. In addition interruptions like phone calls and other people walking in for different purposes also create disruptions. This results in the misinterpretation and breakdown of interpersonal communication.

8 Mixed messages: Many times we speak one thing but our body language commu-nicates another meaning. This creates disruption in the understanding and leads to unclear assumptions.

9 Information overload: Most of the managers have the habit of talking without being aware of the receiver’s capability to listen and absorb the information.

Guidelines for Overcoming Communication Barriers 1 Adopt an audience-centred approach 2 Foster an open communication climate 3 Commit to ethical communication 4 Create effi cient messages

8.5 Informal CommunicationPopularly known as grapevine, informal communication exists outside the formal channels of communication in organizations. It is usually carried out either through face to face or electronic channels of communication.

Grapevine: Distortion or garbled information generated false information and was termed as grapevine.

Main features of grapevine are:

• These exist in virtually every organization.

• Grapevines are diffi cult to eliminate or control.

• It is spontaneous in nature and arises out of people interaction.

• It is assumed to be more gratifying and credible communication.

• Grapevine travels extremely fast.

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• Usually grapevine arises in the situation where information is more emotional in nature or is censored information.Three different chains/structures appear to dominate the grapevine network, these

are discussed below (Figure 8.5):

1 The single strand chain: This is a simple concept to follow, A tells B, B tells C, C tells D and so on. Each person passes the information on to the next person. The longer the strand, the more distortion and fi ltering affect the information being passed that the last person in the chain may fi nd the information unrecognizable from the original message. Most inaccuracies occur in this chain.

2 The cluster chain: Here A tells contacts B and F, who may work with A. They may tell two or three other persons with whom they usually have close contact. Most predominant pattern is the cluster pattern. Selectivity is the basis for this pattern. In any organization, individuals will generally feel more comfortable with some fellow employees than with others and therefore only relay information to those in their informal social groups. This fl ow pattern results in information missing some individuals completely.

3 The gossip chain: In this A simply tells everyone with whom he comes in contact. This pattern is considered to be somewhat slow in moving the information. Managers basically have three options when it comes to their participation in the grapevine:

• Ignore the grapevine, be an ‘isolate.’

• Participate only when it serves their purpose.

• Become an active and full-time participant.

8.5 Communication Strategies8.5.1 Open communication: Sharing all types of information throughout the com-

pany, across functional and hierarchical levels.

8.5.2 Dialogue: A group communication process in which people together create a stream of shared meaning that enables them to understand each other and share a view of the world. Different from discussion.

8.5.3 Crisis communication: Skills to communicate during time of crisis. In times of crisis, managers should develop four primary skills: maintain focus, be visi-ble, tell the truth, communicate a vision for the future.

1 Maintain your focus: In times of crisis, the best approach is to remain calm and composed. This is the time, when your listening skill is really put to the test. In times of crisis, managers need to communicate in such a way while addressing the current underlying problems, so that they are able to refl ect some hope and opti-mism for those facing the problem.

2 Be visible: In times of crisis, employees need to feel that they are in safe hands and that their well being is being taken care of. This is the time when managers should come forward and be present. Their task is to provide reassurance to employees as well as the society.

3 Tell the truth: Managers should be able to gather as much information as they can in the quickest of time so that employees and the general public are not kept in the dark. Uncertainties invite rumours and are catalysts to misunderstandings.

4 Communicate a vision for the future: In order to get on with life and to know that there is still hope in the future, times of crisis would be the best time for man-agers to communicate a vision for a better future of the organization and that employees should work together towards the achievement of common goals.

8.5.4 Feedback: Feedback occurs when managers evaluate employees and commu-nicate back to help them learn and improve in areas where they are inadequate.

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Teaching Notes


8.1 What is communication?8.2 The Communication Process8.3 Types of Communication

8.3.1 Interpersonal Communication8.3.2 Formal and Informal Communication8.3.3 Internal and External Communication8.3.4 Non-verbal Communication8.3.5 Active Listening

8.4 Infl uencing Others Through Communication8.5 Organizational Communication.

8.5.1 Communication Flows in Organizations8.6 Communication Barriers

8.6.1 Overcoming Communication Barriers8.7 Communication During Turbulent Times8.8 Building Trust8.9 Communication Strategies in Global Organizations

8.9.1 Open Communication8.9.2 Dialogue8.9.3 Crisis Communication8.9.4 Feedback

Review Questions


Watch the late Professor Randy Pausch on http://www.cmu.edu/uls/journeys/randy-pausch/ index.html and see how effective his presentation and persuasion skills are.

Demonstrate how communication distortion happens by forming a line of students in class. Give the fi rst student a long message and ask him/her to pass the message down the next student and so on. Compare the original message with the one relayed by the last student.


1 Why do you think good communication in an organization improves employees’ attitudes and performances?

One of the key responsibilities of managers is to get the support or buy-in of others within their organizations and to mobilize their workforce. Such ability to persuade is a premium, and managers need to hone these particular skills as it would be handy especially as they move up the ranks. Effective communication enables managers to infl uence others to adopt their suggested ideas. To become effective managers, they need to know the importance of listening, speaking and inter-

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personal communication regardless in conveying good or bad information. Communicating the right messages helps improve employees’ attitudes and per-formances as they can understand why they need to perform or move on.

2 What is crisis communication and what are the four primary skills related to it. Crisis communication refers to skills to communicate during time of crisis. In

times of crisis, managers should develop four primary skills: maintain focus, be visible, tell the truth, communicate a vision for the future.

Maintain your focus: remain calm and composed. Managers need to commu-nicate in such a way while addressing the current underlying problems, so that they are able to refl ect some hope and optimism for those facing the problem.

Be visible: In times of crisis, employees need to feel that they are in safe hands and that their well being is being taken care. Managers should provide reassur-ance to employees as well as the society.

Tell the truth: Managers should be able to gather as much information as they can in the quickest of time so that employees and the general public are not kept in the dark.

Communicate a vision for the future: managers need to communicate a vision for a better future of the organization and that employees should work together towards the achievement of common goals

3 What are the barriers to communication and how can we overcome these barriers. Anywhere along the process, the message can be distorted due to the interrup-

tions or noise. These barriers include: (i) Perceptual differences: different understanding of the same communication

and results in miscommunication. (ii) Language differences: Barriers also exist because words can be interpreted in

more than one way known as semantic barriers. (iii) Filtering of information: Filtering is screening out before a message is passed

on to someone else. (iv) Poor listening: lack of attention or concentration on the receiver’s part. (v) Apathy or differing emotionality: Every message contains both a content

meaning and a relationship meaning based on feelings. (vi) Cultural differences: Differences in background can be one of the communi-

cation barriers to overcome. Age, education, gender, social status, economic position, cultural background, temperament, health, beauty, popularity, reli-gion and political belief can all separate one person from another and make understanding diffi cult.

(vii) Physical distractions: Many times external noise such as bad handwriting and poor quality paper in the written communication or lack of concentra-tion in the oral communication provide distraction and affects the decoding and interpretation process of the receiver.

(viii) Mixed messages: Many times we speak one thing but our body language communicates

(ix) Another meaning. This creates disruption in the understanding and leads to unclear assumptions.

(x) Information overload: Most of the managers have the habit of talking without being aware of the receiver’s capability to listen and absorb the information.

Guidelines for overcoming communication barriers

• Adopt an audience-centred approach

• Foster an open communication climate

• Commit to ethical communication

• Create effi cient messages

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4 What are the differences between formal communication and informal commu-nication?

Organizational communication takes both the form of formal and informal com-munication. Formal communication channels are those that fl ow within the chain of command, and normally follows the organizational chart. Informal com-munication is popularly known as grapevine. Informal communication exists outside the formal channels of communication in organizations. It is usually carried out either through face to face or electronic channels of communication.

5 What is open communication and dialogue? Open communication is the sharing of all types of information throughout the

company, across functional and hierarchical levels whereas dialogue is a group communication process in which people together create a stream of shared mean-ing that enables them to understand each other and share a view of the world.


1 Communication refers to: A the verbal communication. B the nonverbal communication.C the internal communication in organization. D the exchange of information and ideas between two parties.

2 Internal communication or organizational communication:A fl ows within the chain of command, and normally, follows the organization-

al chart. B involves only formal communication. C Is the lateral or diagonal exchange of information. D fl ows typically in three directions: downward, upward, and horizontally.

3 Which step in the communication process does one try to understand the message?A The sender has an idea.B The receiver decodes the message.C The sender encodes the idea.D The receiver sends feedback.

4 Downward communication refers to:A messages and information that fl ows from top management to subordinates.B messages that fl ow from the lower to higher levels in the organization’s hier-

archy.C messages shared among workers from different departments.D messages across functional and hierarchical levels.

5 The statements below are true about grapevines except: A also known as informal communication.B exist in virtually every organization.C it is a credible source of communication.D diffi cult to eliminate or control.



CHAPTER

9Decision Making

Learning Outcomes


• How managers make things happen.

• Why decision making is an important component of good management.

• The difference between programmed and non-programmed decisions.

• The general decision-making styles.

• Decision-making models.

• The criteria of a good decision.

• Participative management.

• Decision making in global organizations.

Key Teaching Points

9.1 The Nature of Decision MakingDecision making is a conscious process of making choices among one or more alterna-tives for getting the desired outcome.

Programmed decisions are determined by past experiences and are often predicta-ble, routine and repetitive.

Non-programmed decisions are created to deal uniquely for solving a problem and require thinking and consultation under unfamiliar situations.

9.2 General Decision Making Styles 1 Directive: Action oriented and they focus on facts. They tend to overlook the con-

cerns of their subordinates in making decisions as they are more interested in completing their task effi ciently and systematically. People with this style tend to be autocratic and their focus is towards the short term.

2 Analytical: Tend to overanalyse a situation and they always take into considera-tion more information before they make their decisions. These people take a longer time to decide and are extremely careful. However, they also respond well to new situations and they have a higher tolerance for ambiguity when compared to people with directive styles.

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3 Conceptual: Takes a broad perspective at solving problems. These problem solv-ers will try to look at as many options as possible and future possibilities in mak-ing their decisions.

People with this style often have a long-term outlook and they have a high tol-erance for ambiguities. Before taking any course of actions, conceptual people tend to get into long discussions with others and are risk takers, thus making them creative individuals.

4 Behavioural: This group of people is the opposite of the directive group of people whereby they are very people oriented. They work well with others and enjoy social interactions. They are generally supportive, warm and caring individuals and are usually open to suggestions.

9.3 Rational and Non-rational Decision MakingClassical decision model views decision to be taken in a world of complete certainty.

Administrative/Behavioural decision model is based on the notion of bounded rationality and views decision to be taken on satisfi cing ( fi rst perceived) alternatives in a given situation.

Garbage can model views the main components of the decision making process— problem solution, participants and choice situations—all mixed up together in a gar-bage can of the organization.

9.4 Criteria of a Good Decision 1 The decision is high quality in resolving problem or opportunity at hand 2 The decision is timely 3 The decision is understood by those who have to implement it, and 4 The decision has the commitment of those who have to implement it.

9.5 Making Ethical DecisionOne of the greatest pressures faced by managers is trying to maximize shareholders value but yet the same action taken can be harmful to its employees. Use a decision tree.

9.6 Group Decision MakingAdvantages of group decision making.

• Greater pool of knowledge.

• Different perspectives.

• Intellectual stimulation.

• Better understanding of decision rationale.

• Deeper commitment to the decision.

Disadvantages of group decision making

• A few people may dominate.

• Groupthink.

• Satisfi cing.

• Goal displacement.

9.7 Participative ManagementThe process of involving employees in setting goals, making decisions, solving prob-lems and making changes in the organization.

9.8 Decision making in Global Organizations Decisions made inside the organization are complex, and deal with emotionally charged issues. More rapid decisions are made in less certain environment with less clarity about means/outcomes and these require more cooperation. New strategies like reengineering,

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restructuring, mergers/acquisitions, downsizing and new product/market develop ment provide the framework in which the business decisions are undertaken.

Teaching Notes


9.1 The Nature of Decision Making 9.1.1 Programmed Decisions9.1.2 Non-Programmed Decisions

9.2 General Decision Making Styles9.2.1 Value Orientation vs. Tolerance for Ambiguity 9.2.2 Decision-Making Styles

9.3 Rational Decision Making9.3.1 Assumptions Underlying the Rational Model9.3.2 Four Stages Associated With Rational Decision Making

9.4 Non-Rational Decision Making9.4.1 The Administrative Model9.4.2 Assumptions Underlying the Non-Rational Model

9.5 Group Decision MakingReview Questions


A Ask each student to decide on the following 3 matters (10 minutes): (i) Going to a movie – what movie, when, etc. (ii) How to punish a student who was caught for plagiarism in his term paper –

what punishment etc. (iii) Where to go for lunch today – time, restaurant, etc.

B Break the class into teams of fi ves. Ask each team to make a series of decisions: (i) Going to a movie – the team have to decide what movie, when, etc (ii) How to punish a student who was caught for plagiarism in his term paper –

what punishment etc. (iii) Where to go for lunch today – the team must agree on time, restaurant, etc.

C Briefi ng:1 Ask the students – how was their experience making decision on their own

compared to deciding as a team?2 What helps/hinders the group decision making process?


1 Why decision making is an important component of good management? Decision making is a conscious process of making choices among one or more

alternatives for getting the desired outcome.

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2 What is the difference between programmed and non-programmed decisions? Programmed decisions are determined by past experiences and are often predict-

able, routine and repetitive. Non-programmed decisions are created to deal uniquely for solving a problem and require thinking and consultation under unfamiliar situations.

3 What are the forms of decision making? In general, there are many forms of decision making. It can be individual decision

making or group decision making. When we talk of styles, the four general forms are:

Directive: Action oriented and focus on facts. Analytical: Tend to overanalyse a situation and always consider more information

before they making decisions. Conceptual: Takes a broad perspective at solving problems. Behavioural: Very people oriented, work well with others and enjoy social interac-

tions. 4 What is meant by satisfi cing and bounded rationality? Why do managers not

strive to fi nd the economically best solution for many organizational decisions? Classical decision model views decision to be taken in a world of complete cer-

tainty. Administrative/ Behavioural decision model is based on the notion of bounded

rationality and views decision to be taken on satisfi cing (fi rst perceived) alterna-tives in a given situation. The Garbage can model views the main components of the decision making process -problem solution, participants and choice situa-tions- all mixed up together in a garbage can of the organization.

5 Do global organization demand different model of decision making? Why so? In a global organization, more rapid decisions are made in less certain environment

with less clarity about means/outcomes and these requires more cooperation. Decisions made inside the organization are complex, and deal with emotionally charged issues. New strategies like reengineering, restructuring, mergers/Acquisitions, downsizing and new product/market development provide the framework in which the business decisions are undertaken.


1 Which of the following is not an assumption of the rational decision-making model?A The decision maker is constrained by time and costs.B The decision criteria are constant and the weights assigned to them are stable

over time.C The decision maker can identify all the relevant criteria and can list all the

viable alternatives.D The decision maker is aware of all the possible consequences of each alterna-

tive.

2 In the following steps in decision making, which would come fi rst? A Generate alternatives.B Identify criteria.C Make a choice.D Implement the decision.

3 One way to make organizational decisions seem more fair is to:A provide informational justifi cation of any decision. B give people a say in how decisions are made.

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C show social sensitivity in the announcement of the decision.D use the least painful instrumentality possible for implementation of the deci-

sion.

4 Which of the following is not true of the directive style?A Action oriented. B Focus on facts.C Tend to be autocratic. D tend towards the long term.

5 Disadvantages of group decision making include all of the following except:A goal displacement. B different perspectives. C groupthink. D satisfi cing.



CHAPTER

Power, Infl uence and Politics

Learning Outcomes


• What is power and infl uence?

• Differences between leadership and power.

• Differences between authority and power.

• Bases of power.

• What is dependency?

• Power tactics that infl uence others.

• Power in groups: coalition.

• Sexual harassment: unequal power in the workplace.

• Politics: power in action.

• Empowerment.

Key Teaching Points

10.1 Defi nition of Power and Infl uencePower is the capacity to infl uence others. An individual is said to have power when other people are willing to follow the instruction or direction given to them.

Infl uence refers to any behaviour that attempts to alter someone’s attitudes or behaviour. Infl uence operates down, across and up the corporate hierarchy, applies one or more power bases, and is an essential process through which people achieve organizational objectives.

10.1.1 Differences between leadership and power

• Leadership is an ability to lead someone towards certain direction.

• However, in order to lead someone, a leader must have the power.

• Can you trace the difference between leadership and power in the case of Dato Tony Fernandes?

10.1.2 Differences between authority and power

• Power: Ability to infl uence others to bring about desired outcomes.

• Authority is power which is vested in the position held by an employee.

• It is prescribed by the formal hierarchy and fl ows down the vertical hierarchy.

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10.2 Bases of PowerTwo bases of power – formal and personal power.

10.2.1 Formal power: Four categories of formal power:

• Coercive power: This category of power is a result of fear.

• Reward power: People are willing to comply with the directives of another due to the positive benefi ts.

• Legitimate power: Legitimate power is an agreement among organizational members that people in certain positions can request certain behaviours of others.

• Information power: Power that someone has due to the information that he or she has.

10.2.2 Personal power: This category of power indicates to the one who has a power due to his or her personal characteristics and not because of the position or information that the person has in the organization. Three types of personal power which are expert power, referent power and charismatic power.

• Expert power: This is a type of power that someone has due to the skills or knowledge.

• Referent power: Referent power is a type of power which someone has due to the desirable resources that he or she has.

• Charismatic power: This type of power is possessed by an individual because of the personality and interpersonal styles.

10.3 Dependency: The Key to PowerOne way to create power is to increase dependency. Individuals and work units are more powerful when others are dependent on them and they are non-substitutable, that is, there is a lack of alternatives. Employees, work units and organizations reduce substitutability by controlling tasks, knowledge and labour, and by differentiating themselves from competitors. Important and scarce fi nancial resources also add to power bases.

10.4 Power Tactics: Infl uencing OthersResearchers conclude that there are many different types of infl uence tactics, and each tactic is used depending on the objectives, situation that they are currently in and the target of the infl uencing process. Point out to students that their choices may say some-thing about them. Their choice of tactics may include the following.

Tactics Description

Reason Use of facts and data to make a logical or rational presentation.

Friendliness Create a relationship by using strategies such as acting humble, being friendly and creating good will.

Coalition Getting support from someone in the organization to back up the request.

Bargaining Use negotiation tactics through the exchange of benefi ts or favours.

Assertiveness Use a direct and forceful approach.

Higher authority Gaining a support from higher position to back up requests.

Sanctions Use of organizationally derived rewards and punishment.

10.5 Power in Groups: CoalitionA coalition is one of the infl uence tactics used in the organization to gain power. Coalition is a strategy when informal groups bind together to achieve certain objective. When a group starts to bind together and back up each other, their power in number will be stronger and diffi cult to be ignored by the management.

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10.6 Sexual Harassment: Unequal Power in the WorkplaceSexual harassment is a result of a situation whereby an individual controls or threatens another individual because of the power he or she has in the organization.

Sexual harassment can happen between individuals of the same gender as well as individuals of different genders, between supervisor and subordinates, as well as among colleagues.

10.7 Politics: Power in ActionPolitical behaviour is defi ned as a set of behaviours which are not one’s formal role in the organization, but these infl uence or attempt to infl uence any distribution activity in the organization.

Legitimate political behaviour is a normal everyday politics which will not bring any harm to any one.

Illegitimate political behaviour is viewed as extreme political behaviour that vio-lates the implied rules in the organization or in the country.

10.8 Power and Political Tactics in OrganizationsOrganizational politics refer to infl uence tactics that others perceive to be self-serving behaviour to gain self-interests, advantages and benefi ts at the expense of others and sometimes contrary to the interests of the entire organization or work unit.

It happens when scarce resources are allocated using complex and ambiguous deci-sions, and when the organization tolerates or rewards political behaviour (See Table 10.4 in the text).

Organizational politics can be minimized by providing clear rules for resource allo-cation, establishing a free fl ow of information, using education and involvement of the employees during organizational change.

10.9 Empowerment Empowerment is defi ned as a process by which managers help each other to acquire and use the power needed to make decisions affecting themselves and their work.

Guidelines for implementing empowerment include the following:

• Designing role clarity and role responsibilities for all the managers in the organization.

• Planning to be integral for all the organizational members.

• Strong communication network for facilitating exchange of information at all the levels of the organization.

Teaching Notes


10.1 Defi nition of Power 10.1.1 Differences between Leadership and Power

10.2 Bases of Power10.2.1 Formal Power10.2.2 Personal Power

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10.3 Dependency: The Key to Power10.4 Power Tactics10.5 Power in Groups: Coalition10.6 Sexual Harassment: Unequal Power in the Workplace10.7 Politics: Power in ActionRevision Questions


Using decks of cards (52 cards per deck), give each student a card and he or she will have to play the role on the card (cards 1 to 10 – subordinates, King – CEO, Queen – Vice President, Jack – Manager). Get the students to group according to the four card teams of 13 (spade, diamond, etc.).

Each team is given the task solve a problem – how to outdo the other teams in getting themselves organized for an activity (e.g. to organize a fundraiser, bakesale, concert, trip, vacation, etc.)

After the activity (1/2 hour), conduct a briefi ng by asking the students to comment on their respective teams. 1 Who are the leaders in the teams? Did the students live up to their role per the

card? 2 What kind of powers did King, Queen and Jack have? Did they practise them? 3 Was there any evidence of power tactics? Coalition? Politics? Empowerment?


1 What is the defi nition of power? Power is the capacity to infl uence others. An individual is said to have power when

other people are willing to follow the instruction or direction given to them.

2 What are the differences between leadership and power? Can one be a leader with-out power? Can one have power and not be a leader?

Leadership is the ability to lead someone towards certain direction, and in order to lead someone, a leader must have the power. Power is the ability to infl uence others to bring about desired outcomes. One can be a leader without power, for example, a prime minister in a puppet government which is controlled by the dominant party. Conversely, one can have power while not being the leader in the sense that he/she has personal power (expert, referent, charismatic), not necessarily position power.

3 What are the bases of power? Give specifi c real-life examples of each. There are two bases of power, namely, formal and personal power. There are four

categories of formal power which is drawn from the position or information that the person has in the organization, namely:

• Coercive power: This category of power is a result of fear.

• Reward power: People are willing to comply with the directives of another due to the positive benefi ts.

• Legitimate power: Legitimate power is an agreement among organizational mem-bers that people in certain positions can request certain behaviours of others.

• Information power: Power that someone has due to the information that he or she has.

As for personal power, one who has a power due to his or her personal character-istics. Three types of personal power are:

• Expert power – someone has due to the skills or knowledge.

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• Referent power – someone has due to the desirable resources that he or she has.

• Charismatic power – possessed by an individual because of the personality and interpersonal styles.

4 How does one create dependency? One creates dependency by making himself or his/her work unit indispensable

and non-substitutable especially when there is a lack of alternatives. Employees, work units and organizations reduce substitutability by controlling tasks, knowl-edge and labour, and by differentiating themselves from competitors. Important and scarce fi nancial resources also add to power bases.

5 How many power tactics do you know? Explain each tactic. Several power tactics include the following.

Tactics Description

Reason Use of facts and data to make a logical or rational presentation.

Friendliness Create a relationship by using strategies such as acting humble, being friendly and creating good will.

Coalition Getting a support from someone in the organization to back up the request.

Bargaining Use negotiation tactics through the exchange of benefi ts or favours.

Assertiveness Use a direct and forceful approach.

Higher authority Gaining a support from higher position to back up requests.

Sanctions Use of organizationally derived rewards and punishment.

6 Building coalition is one example of power in groups. How does one build coali-tion?

A coalition is one of the infl uence tactics used in the organization to gain power. Coalition is a strategy when informal groups bind together to achieve certain objective. One builds coalition by getting a group to bind together and back up each other. This will make their power in number become stronger and diffi cult to be ignored by the management.

7 Sexual harassment exists when there is unequal power in the workplace. How can one effectively deal with sexual harassment?

Sexual harassment is a result of a situation whereby an individual controls or threatens another individual because of the power he or she has in the organiza-tion. One can effectively deal with sexual harassment at the individual level or the organizational level. As an employee, while one has the right to address the issue to a co-worker or supervisor who is behaving in a manner that causes discomfort, usually it does not happen because of saving face or fear of retaliation. This is where employee education on what constitute sexual harassment and their rights as employees are important. At the organizational level, the company can institute relevant policies on sexual harassment and impose strict penalty under law for infringement.

8 Explain politics. Why is it called power in action? Organizational politics refer to infl uence tactics that others perceive to be self-

serving behaviour to gain self-interests, advantages and benefi ts at the expense of others and sometimes contrary to the interests of the entire organization or work unit. It is called power in action because politics facilitate certain action to be taken or initiated by employing infl uence tactics on others in order to get things done.

9 What is empowerment? Do you know any company in Malaysia which empowers its employees for higher productivity? Why so?

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Empowerment is defi ned as a process by which managers help each other to acquire and use the power needed to make decisions affecting themselves and their work. Companies that implement empowerment tend to do the following:

Designing role clarity and role responsibilities for all the managers in the organi-zation.

Planning to be integral for all the organizational members.

Strong communication network for facilitating exchange of information at all levels of the organization.


1 Organizational politics involves all the following except:A acquire and use the power needed to make decisions. B infl uence tactics that others perceive to be self-serving behaviour.C gain self-interests, advantages and benefi ts at the expense of others. D behaves in contrary to the interests of the entire organization or work unit.

2 Empowerment is defi ned as a process by which managers:A bind together to achieve certain objective.B help each other to acquire and use the power needed to make decisions

affecting themselves and their work.C design role clarity and role responsibilities for all the managers in the organi-

zation.D provide clear rules for resource allocation.

3 Dependency can be increased by doing the following except:A making others dependent on oneself and making oneself non-substitutable.B reducing substitutability by controlling tasks, knowledge and labour.C getting a group to bind together.D differentiating oneself from competitors.

4 Sexual harassment existsA when there is unequal power in the workplace. B when an individual controlling or threatening another individual because of

the power he or she has in the organization. C when co-worker or supervisor is behaving in a manner that causes discom-

fort.D all of the above.

5 Which pair of tactics and description are not true?

Tactics Description

A Reason Use of facts and data to make a logical or rational presentation.

B Friendliness Create a relationship by using strategies such as acting humble, being friendly and creating good will.

C Coalition Getting a support from someone in the organization to back up the request.

D Bargaining Use of organizationally derived rewards and punishment


http://en.wikipedia.org/wiki/Tony_Fernandes.

CHAPTER

Leadership

Learning Outcomes


• The difference between leadership and management.

• The different theories of leadership.

• The two inspirational approaches to leadership.

• The link between emotional intelligence and leadership.

• Contemporary issues pertaining to leadership.

• What is meant by neuroleadership?

Key Teaching Points

11.1 What is Leadership?Manager vs. LeaderLeadership is the process of infl uencing individuals and groups to achieve goals.

The role of the management is to provide stability and smooth running of organiza-tion while leadership promotes growth and innovation. Essentially both management and leadership are equally required for the sustainable development and growth of organizations.

MANAGER

• Rational

• Complexity

• Planning and Budgeting

• Targets/Goals

• Organizing and Staffi ng

• Controlling and Problem Solving

LEADER

• Intuitive

• Change

• Setting Direction—Visions

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• Aligning People

• Motivating ‘Inspiring/ Moving’

Roles of leadership

• Shares organization’s vision with people.

• Recruits, trains, and retains.

• Models positive behaviour.

• Challenges, provokes, and stimulates intellectually.

• Discovers talent.

• Builds the culture of creativity and innovation.

• Instils ownership.

11.2 Trait TheoriesTraits play a central role in differentiating leaders from non-leaders.

Seven traits associated with effective leadership are:

• Drive

• Desire to lead

• Honesty and integrity

• Self-confi dence

• Intelligence

• Job-relevant

• Knowledge, and extraversion

11.3 Behavioural TheoriesBehavioural theories: Leadership is central to performance and other outcomes.

• Ohio State Studies: Two dimensions of leadership behaviour—initiating structure and consideration.

• University of Michigan Studies: Two dimensions of leader behaviour—employee oriented and production oriented.

• Blake and Mouton ‘Managerial Grid’: Two-dimensional grid—‘concern for people’ and ‘concern for production.’

• The Scandinavian Studies: Researchers from Finland and Sweden discovered a third dimension to leader behaviour.

11.3.1 Ohio State Studies: Initiating structure is the extent to which a leader defi nes and structures his/her role as well as those of his/her followers in order to accomplish goals.

Consideration is the extent to which a leader has work relationships with his/her followers that are characterized by mutual trust, regard for followers’ ideas and concern for their feelings.

11.3.2 University of Michigan Studies Employee-oriented leader: A leader who emphasizes interpersonal relations,

takes a personal interest in the needs of employees and accepts individual dif-ferences among members.

Production-oriented leader: A leader who emphasizes technical or task aspects of the job.

11.3.3 The Managerial Grid: The managerial grid (also known as the leadership grid) is drawn from the Ohio State and Michigan studies, for its two main dimen-sion: ‘concern for people’ and ‘concern for production.’

11.3.4 The Scandinavian Studies: A leader who values experimentation, seeks new ideas, and generates and implements change.

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11.4 Contingency TheoriesContingency theories: Consider other aspects of leadership situation to predict out-comes.

• Fiedler model

• Hersey and Blanchard Situational Theory

• Leader-Member Exchange Theory

• Path-Goal Theory

• Leader-Participation Model

11.4.1 Fiedler contingency model: Proposes that effective group performance depends upon the proper match between a leader’s style of interacting with his/her followers and the degree to which the situation allowed the leader to control and infl uence.

Least-preferred co-worker (LPC) questionnaire: an instrument that pur-ports to measure whether a person is task-or relationship-oriented.

• Leader-member relations describe the extent to which followers have confi -dence, trust and respect in their leader.

• Task structure describes the extent to which job assignments are formalized and are structured/ unstructured.

• Position power describes the amount of infl uence a leader had over power-based activities such as hiring, fi ring and promotions.

11.4.2 Hersey and Blanchard’s situational theory: Situational leadership theory focuses on followers. It echoes the reality that it is the followers who accept or reject the leader.

11.4.3 Leader-member exchange theory: Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

11.4.4 Path-goal theory: The theory states that it is the leader’s job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

House identifi ed four types of leaders: 1 The directive leader informs followers of what is expected of them, sched-

ules work that needs to be done and gives clear directions as how to accomplish tasks.

2 The supportive leader is friendly and displays concern for the needs of followers.

3 The participative leader discusses with followers and considers their sug-gestions in making a decision.

4 The achievement-oriented leader establishes challenging goals and expects followers to perform their best.

11.4.5 Leader-participation model: A leadership theory provides a set of rules to determine the form and amount of participative decision making in different situations.

11.5 Inspirational Theories11.5.1 Charismatic leadership: The charismatic leadership theory is based on the asser-

tion that followers make attributions of heroic or exceptional leadership abili-ties when they observe certain behaviours.

Qualities that differentiate charismatic leaders from non-charismatic ones:

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• They have a vision

• They are willing to take risks to realize that vision

• They are perceptive to both constraints within the environment and needs of the follower

• They display behaviours that are atypical.

11.5.2 Transformational leadership Transformational leaders: Leaders who inspire followers to transcend their

own self-interests and who are capable of having a profound and extraordinary effect on followers.

These leaders take notice of the concerns and developmental needs of indi-vidual followers; they change followers’ awareness of issues by helping them look at old problems in new ways; and they are able to excite, arouse and inspire followers to exert extra effort to attain group goals.

Transactional leaders: Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.

These types of leaders direct or motivate their followers by clarifying role and task requirements for achieving the organization’s established goals.

Level fi ve leaders: Leader who are fi ercely ambitious and driven, but their ambition is directed toward their company rather than themselves. These leaders have fi ve basic leadership qualities: individual capability, team skills, managerial competence, ability to stimulate others to high performance, and a paradoxical blend of personal humility and professional will.

11.5.3 Emotional intelligence and leadership effectiveness

• Recent studies have shown that emotional intelligence (EI), more than IQ, or any other single factor, is the best predictor of who will come out as a leader.

• Great leaders demonstrate their EI by exhibiting all fi ve of its key compo-nents:

• Self-awareness

• Self-management

• Self-motivation

• Empathy

• Social skills

11.6 Neuroleadership Neuroleadership is the study of leadership through the lens of neuroscience

Neuroleadership explores the central elements of leadership such as

• Self-awareness

• Awareness of others

• Insight

• Infl uencing

• Decision making

11.6.1 Transformational and transactional neuroleadership Transformational neuroleadership suggests that for the transformational lead-

ers, decision making is based on cognitive rewards.

• In creating a climate of trust for their followers, they are able to draw on their followers’ higher order needs and get them to perform beyond expectations.

• Transformational leaders inspire their followers to make decision that tran-scend self-interests.

Transactional neuroleadership suggests that transactional leaders make deci-sion based on contingent rewards.

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• They clarify the options and outcomes to their followers so that they maxi-mize gains or benefi ts and perform in order to meet expectations.

• Transactional leaders interact with their followers to make decision to suit self-interests.

11.7 Trust Trust: A belief or hope that another will neither through words, actions or decisions, act opportunistically

11.7.1 Trust and leadership Five key dimensions:

• Integrity refers to truthfulness.

• Competence covers an individual’s technical knowledge and interpersonal skills.

• Consistency concerns a person’s reliability, predictability and good judge-ment in handling situations.

• Loyalty is the willingness to protect and save face for another person.

• Openness is the ability to rely on another to give you the full truth.

11.7.2 Three types of trust

• Deterrence-based trust: Trust based on fear of reprisal if the trust is violated.

• Knowledge-based trust: Trust based on the behavioural predictability that comes from a history of interaction.

• Identifi cation-based trust: Trust based on a mutual understanding of each other’s intentions and appreciation the other’s wants and desires.

Teaching Notes


11.1 What is leadership?11.1.1 Roles of Leadership11.1.2 Leadership Studies Timeline

11.2 Trait Theories11.3 Behavioural Theories

11.3.1 Ohio State Studies11.3.2 University of Michigan Studies 11.3.3 The Managerial Grid11.3.4 The Scandinavian Studies

11.4 Contingency Theories11.4.1 Fiedler Contingency Model11.4.2 Hersey and Blanchard’s Situational Theory11.4.3 Leader-Member Exchange Theory11.4.4 Path-goal Theory11.4.5 Leader-Participation Model

11.5 Inspirational Theories

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11.5.1 Charismatic Leadership11.5.2 Transformational Leadership11.5.3 Emotional Intelligence and Leadership Effectiveness

11.6 Neuroleadership11.7 Trust Review Questions


As a class, break into different teams and each team select one of the leadership theo-ries discussed in this chapter. Think of one leader in the country or specifi c organiza-tion. Analyse the individual based on any of the theories discussed.


1 What is leadership and how is it different from management? Leadership is the process of infl uencing individuals and groups to achieve goals. Leaders use infl uence to motivate followers and arrange the work environment

so that they do the job more effectively. The role of the management is to provide stability and smooth running of organization while leadership promotes growth and innovation. Essentially both management and leadership are equally required for the sustainable development and growth of organizations.

2 What were the conclusions on trait theories? Research in the 1920s and 1930s focused on traits of the leader, with the intent to

isolate characteristics that might be used to differentiate leaders from non-leaders. Identifying a set of traits consistently associated with the process of leadership proved to be more successful than one set of traits that would always differentiate leaders from non-leaders. Seven traits associated with effective leadership are drive, desire to lead, honesty and integrity, self-confi dence, intelligence, job-relevant knowledge, and extraversion.

3 What are the limitations of behavioural theories? The behavioural leadership theories have had little success in distinguishing con-

sistent relationships between leadership behaviour and group performance. This is perhaps due to the lack of consideration of the situational factors that infl uence success or failure of said relationships.

4 List and describe the various contingency theories. Fiedler contingency model proposes that effective group performance depends

upon the proper match between a leader’s style of interacting with his/her followers and the degree to which the situation allowed the leader to control and infl uence. Using the Least-preferred co-worker (LPC) questionnaire, an instrument that measure whether a person is task-or relationship-oriented.

Hersey and Blanchard’s Situational theory focuses on followers. It echoes the reality that it is the followers who accept or reject the leader.

Leader-member exchange (LMX) theory: Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

Path-goal theory: It is the leader’s job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

Leader-participation model provides a set of rules to determine the form and amount of participative decision making in different situations.

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5 Describe the two inspirational approaches to leadership (charismatic and trans-formational leadership).

The charismatic leadership theory is based on the assertion that followers make attri-butions of heroic or exceptional leadership abilities when they observe certain behaviours. Charismatic leaders have a vision, are willing to take risks to realize that vision, are perceptive to both constraints within the environment and needs of the follower, and display behaviours that are atypical.

Transformational leadership: Leaders who inspire followers to transcend their own self-interests and who are capable of having a profound and extraordinary effect on followers. These leaders take notice of the concerns and developmental needs of individual followers; they change followers’ awareness of issues by help-ing them look at old problems in new ways; and they are able to excite, arouse and inspire followers to exert extra effort to attain group goals.

6 Based on research evidence, what is the link between EI and leadership? Recent studies have shown that emotional intelligence (EI), more than IQ, or any

other single factor, is the best predictor of who will come out as a leader.


1 Below are contingency theories except:A Fiedler model.B Hersey and Blanchard situational theory.C The managerial grid.D Leader-member exchange theory.

2 Qualities of the charismatic leaders include the following except:A They have a vision.B Working relationships based on technical or task. C Are willing to take risks to realize that vision. D Display behaviours that are atypical.

3 Great leaders demonstrate their Emotional Intelligence by exhibiting these com-ponents except:A Self-awareness. C Self-management.B Self-esteem. D Self-motivation.

4 Transformational leaders:A emphasize technical or task aspects of the job. B capable of having a profound and extraordinary effect on followers.C values experimentation, seeks new ideas, and generates and implements

change. D defi ne and structure his/her role as well as those of his/her followers in order

to accomplish goals.

5 Seven traits associated with effective leadership include the following except:A desire to lead C self-confi denceB honesty and integrity D self-motivation


http://management.about.com/od/leadership/Leadership.htm

http://www.managementhelp.org/ldrship/ldrship.htm

CHAPTER

12Culture and Creativity/Innovation

Learning Outcomes


• Why organizations need to change to sustain competitive advantage?

• What is meant by creativity and innovation?

• Innovation for competitive advantage.

• Change and innovation.

• Stimulating and nurturing innovation.

• What is culture?

• Why is it important to have culture that supports innovation?

• Characteristics of an innovative culture.

Key Teaching Points

12.1 Creativity and InnovationCreativity refers to the ability to combine ideas in a unique way or to make unusual association between ideas.

Innovation is the useful products, services or work methods resulting from the out-comes of the creative process.

12.2 Innovation for Competitive Advantage

• Innovations should be hard to replicate.

• Innovations in response to the needs of the environment.

• Innovations by product or service leadership to exploit a particular industry timing characteristics.

• Innovations to rely on capabilities and technologies readily accessible to the organi-zation

12.3 Change and Innovation

• Change is to make or become different.

• Innovation is introducing or creating something new.

• All innovation implies change but not all change implies innovation.

• Changes may not use new ideas or be major improvements.

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External forces: Forces from outside the organization may compel organizations to make changes.

Internal forces: Internal changes may come from changes in internal policies, strate-gies, plans, etc.

12.4 The Change Management and Innovation Process

• Initiating change involves identifying what organizational areas need to be changed and putting the change process in motion (Robbins and Coulter, 2006).

• More importantly is managing employee resistance to change.

People resist change due to a variety of reasons.

• Uncertainty and ambiguities.

• Habits.

• Fear of losing something they have already possessed (Robbins and Coulter, 2006).

• Lack of confi dence that the change might be compatible with the initial goals and objectives of the organization.

12.5 Stimulating and Nurturing Innovation.Systems view of innovation

• Creative individuals, groups and organization

• Creative environment, process and situation

• Innovative products and work methods

12.6 CultureOrganizational culture is the basic pattern of shared assumptions, values and beliefs that govern behaviour within a particular organization.

External adaptation involves reaching goals and dealing with others outside the organization. Issues of concern are of tasks to be accomplished, methods used to achieve the goals, and coping with success and failure.

Internal integration deals with creating a collective identity and fi nding ways to integrate working and living together.

12.7 Culture and Decision Making Culture is defi ned as shared ways of thinking and doing things.

Organizational culture is the basic pattern of shared assumptions, values and beliefs that govern behaviour within a particular organization.

External adaptation involves reaching goals and dealing with others outside the organization. Issues of concern are of tasks to be accomplished, methods used to achieve the goals, and coping with success and failure.

Internal integration deals with the creation of a collective identity and with fi nding ways of matching methods of working and living together.

12.8 Characteristics of an Innovative Culture

• Willing to accept uncertainties: Organizations that are willing to accept uncertain-ties are not restricted by anything and are not creativity constrained.

• Tolerance of the impractical: It has been said that sometimes the most foolish of ideas are the ones that really works, and individuals who offer such ideas are not afraid of being the laughing stock. Who would have thought a deserted mining pool in the middle of nowhere would today be housing the nation’s most profi table theme park?

• Low external controls: Organizational controls are kept at most minimum levels. These organizations are constrained by the least number of rules, policies and proce-dures.

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• Risk tolerant: An innovative organization always encourages its employees to exper-iment and try out new ideas without the fear of making mistakes. Each failed attempt is treated as a stepping-stone towards success.

• Confl ict tolerant: Differences in opinions is much welcome by these organizations where these ideas and opinions will be weighed together as a group before arriving at the end result.

• Focus on results instead of methods: Individuals are given free leeway as to how to achieve organizational goals. Employees have a free hand and therefore are encour-aged to think of alternatives to achieve company objectives.

• Open-system focus: Managers monitor the environment closely and act as changes happen.

• Positive feedback. New ideas are received well by the organization. Managers con-stantly give positive feedback and encouragement to employees and thus employees feel that their new ideas are appreciated.

Teaching Notes


12.1 Creativity and Innovation12.2 Innovation for Competitive Advantage12.3 Change and Innovation12.4 Forces for Change12.5 The Change Management and Innovation Process

12.5.1 Why People Resist Change12.6 Stimulating and Nurturing Innovation Fig. 12.2 Systems View of Innovation12.7 Culture12.8 Culture and Decision Making 12.9 Innovative Culture12.10 Characteristics of an Innovative Culture Review Questions


Think of some changes you have noticed on campus in the past year.


1 Why do organizations need to be creative and innovative? In order to survive in the competition, organizations need to come up with new

products or services or be able to react to changes, given the capabilities and tech-nologies readily accessible to them. Organizations need to be innovative and crea-tive in response to the needs of the environment. Sometimes, innovations by product or service leadership are needed to exploit a particular industry’s timing characteristics.

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2 What is an innovative culture? Discuss the characteristics of an innovative organi-zation.

Characteristics of an innovative culture include:

• Willing to accept uncertainties

• Tolerance of the impractical.

• Low external controls

• Risk tolerant

• Confl ict tolerant

• Focus on results instead of methods

• Open-system focus

• Positive feedback

3 Why is it important to have culture that supports innovation? To succeed in today’s highly competitive global environment it is important to

have a culture that supports creativity and innovation. The culture should be con-sidered as critical as other important organizational and business processes for creating and managing innovation-oriented, high-performing, creative organiza-tions. Good managers are able to support an existing strong culture or build sus-tainable culture in transitional and changing business environment.

4 Explain the differences between change and innovation. Change is to make or become different while innovation is introducing or creating

something new. Innovation implies change but not all change implies innovation, since changes may not use new ideas or be major improvements. Innovations may range from radical breakthroughs to small improvements


1 What is participative management?A A method of management where subordinates make corporate decisions and

management helps carry out those decisions.B A method of management where upper management participates in the

organization’s strategic planning.C A method of management where subordinates share a degree of decision-

making power with their immediate superiors.D A method of management where low-level workers are responsible for mak-

ing corporate policy decisions.

2 The incentive plan where improvements in group productivity determine the total amount of money that is allocated is called:A ESOP.B gain-sharing.C profi t-sharing.D piece rates.

3 The skill-based plans are seen as attractive by management in terms of ____________.A fl exibility B low costC motivationD productivity

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4 Which of the following is a form of recognition?A Personal congratulations.B Job enlargement.C Job sharing.D Flexible benefi t packages.

5 All of the following are examples of employee involvement except:A variable-pay programmes.B participative management.C quality circles.D employee stock ownership plans.


http://www.1000advices.com/guru/innovation_culture_sk.html

CHAPTER

13Structure and Organizational Design

Learning Outcomes


• Defi nition and dimensions of organizations.

• What is organizational structure?

• Elements of organizational structure.

• Forms of departmentalization.

• Contingency approach of organizational design.

• Challenges to present organizational design.

Key Teaching Points

This chapter provides an overview of organizational common characteristic, coordina-tion and the elements that are involved in structuring an effective organization. Also dis-cussed are the new style and old style of organizational structure, the Contingency Approach to designing organization and challenges to the present organizational design.

13.1 Defi nition and Dimensions of OrganizationsOrganization is defi ned as a system of consciously coordinated activities of forces of two or more persons.

Organizational chart is a graphic representation of formal authority and division of labour relationship which is actually an illustration of the organizational structure.

13.2 Organizational StructureOrganizational structure is the basic form which makes up the skeleton of the organi-zation, and shows allocation of formal responsibilities and linking roles and coordi-nating structures of the organization.

13.3 Elements of Organizational Structure13.3.1 Hierarchy of authority: Hierarchy of authority refers to a legitimate power

prescribed to individuals, who then use it to indicate work process and alloca-tion of resources.

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13.3.2 Division of labour refers to subdivision of work into specifi c job scopes to be assigned to specifi c persons.

13.3.3 Span of control refers to the number of individuals reporting directly to a person.

13.3.4 Line and staff position refer to decision-making authority.

13.4 Forms of DepartmentalizationForms of departmentalization is about specifying how employees and their responsi-bilities are grouped together.

13.4.1 Functional structure: Employees are organized around specifi c knowledge or functions.

13.4.2 Divisional structure: Employees are grouped according to geographic areas, products or clients.

13.4.3 Matrix structure: Organizational resources are shared among independent and different project teams.

13.4.4 Team-based structure: It is very fl at in layers, very informal and uses self-directed work teams to execute various works.

13.4.5 Network structure: Organization develops ties with a number of organizations which can help create the product or deliver the service needed.

13.5 Contingency Approach of Organizational Design13.5.1 External environment

• This refers to any factor or elements outside the organization, which includes stakeholders, resources, and competitors.

• Characteristics: dynamism, complexity, diversity, and hostility.

• Mechanistic Vs. Organic Structure

13.5.2 Organizational size Larger organizations should have more employees and job specialization as

tasks would be more than those in smaller organizations.

13.5.3 Technology

• Refers to the mechanisms used by organizations to produce its product or services.

• Technology is contingent based on its variability and analysability character-istics with regard to production processes.

13.5.4 Organizational strategy

• Refers to organizational plan in organizing its missions, resources and capa-bilities to its advantage.

• Organizational structure would complement the organization’s strategy because that would help organizations achieve its missions.

Teaching Notes

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13.1 Organizations: Defi nition and Dimensions13.1.1 Organizational Chart

13.2 Organizational Structure13.3 Elements of Organizational Structure13.4 Forms of Departmentalization

13.4.1 Functional Structure13.4.2 Divisional Structure13.4.3 Matrix Structure13.4.4 Team-based Structure13.4.5 Network Structure

13.5 Four Contingencies of Organizational Design13.5.1 External Environment13.5.2 Organizational Size13.5.3 Technology13.5.4 Organizational Strategy

13.6 Challenges Review Questions


Discuss the organizational chart of your university/college and your specifi c depart-ment (e.g. School of Management). Which organizational structure can you use to describe them?

Select any two organizations; one large in size which operates in two other countries and another small-sized Malaysian local organization. Compare their organizational structure.


1 Does functional and departmentalization type of organizational structure became obsolete due to the evolvement of the new organizational structure?

Functional structure: Employees are organized around specifi c knowledge or functions.

Divisional structure: Employees are grouped according to geographic areas, prod-ucts or clients.

Matrix structure: Organizational resources are shared among independent and different project teams.

With the advent of new organizational structure such as the team-based structure (very fl at in layers, very informal and uses self-directed work teams to execute var-ious works) and network structure (ties with a number of organizations which can help create the product or deliver the service needed), the functional and departmentalization may be less important but it may not be obsolete. This is because many bureaucratic organizations, be it in the private or public sector still honour such traditional structures as they provide a strong hierarchical structure that these organizations are used to. The more fl uid nature of the team-based and network structures may be in contradiction with the traditional structures.

2 What are the differences of a network as compared to a matrix organizational structure?

Matrix structure: Organizational resources are shared among independent and different project teams.

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Network structure ties with a number of organizations which can help create the product or deliver the service.

Whereas the Matrix structure encourages the sharing of internal resources, the Network structure source out resources in the creation of products and services.

3 What problems can be caused by a product structure for an organization? Division or product structure creates duplication of certain functional expertise

and it becomes ineffi cient. Expertise spread to every corner of the organization can lead to a reduction of ability and motivation of not being able to share knowledge with others of the same skills. The many ways of managing divisions may de-moti-vate employees if the organization decides to always change the type of division it deals with.

4 What are the advantages and disadvantages when levels of management are reduced and the chain of command shortened in an organization?

Reducing the levels of management means making the span of control wider. Span of control refers to the number of individuals reporting directly to a person. When the chain of command is shortened, the advantages are:

• less bureaucratic levels.

• greater worker autonomy and empowerment through work teams

• complement routine tasks

Disadvantages include:

• diffi cult tasks may need closer supervision from the supervisors

• employee interdependence within the department is higher.

5 Describe the three common organizational designs: simple structure, bureaucracy, and matrix structure.

The simple structure is not elaborate. It has a low degree of departmentalization, wide spans of control, authority is centralized in a single person, and little formal-ization. The simple structure is a ‘fl at’ organization; it usually has only two or three vertical levels, a loose body of employees, and one individual in whom the decision-making authority is centralized.

Bureaucracy exists based on standardization characterized by highly routine operating tasks achieved through specialization, very formalized rules and regula-tions, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of com-mand.

The matrix combines two forms of departmentalization: functional and product. It breaks the unity-of-command concept. Employees in the matrix have two bosses – their functional department managers and their product managers. Therefore, the matrix has a dual chain of command.


1 Division of labour refers to: A allocation of formal responsibilities and linking roles and coordinating

structures.B subdivision of work into specifi c job scopes to be assigned to specifi c persons.C the number of individuals reporting directly to a person.D decision-making authority.

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2 Which of the following characterizes divisional structure? A Employees are organized around specifi c knowledge or functions.B Employees in independent and different project teams share resources.C Employees are grouped according to geographic areas, products or clients.D Employees from different organizations help create the product or deliver

the service needed.

3 External environment is characterized as follows except:A certainty.B dynamism.C complexity.D diversity.

4 Technology refers to:A organizing resources and capabilities to its advantage.B work process and allocation of resources.C the mechanisms used by organizations to produce its product or services. D an illustration of the organizational structure.

5 The advantages of fl at organizations include the following except:A less bureaucratic levels. B less headcount per manager.C greater worker autonomy.D complement routine tasks.


http://www.learnmanagement2.com/organizational%20structures.htm

http://www.businessteacher.org.uk/people-in-business/organizational-structures/

CHAPTER

14Managing Change and Organizational Development

Learning Outcomes


• Process of change and organizational development.

• Forces of change.

• Models of planned change.

• How to manage resistance to change.

• Alternative strategies for overcoming resistance to change.

• Channelling change.

• What learning organizations are.

Key Teaching Points

14.1 Process of Change and Organizational DevelopmentOrganizational development (OD) is a comprehensive approach to planned change that is aimed at improving the overall effectiveness of organization.

14.2 The Change Management Process and Innovation ProcessOrganizational change is considered the adoption of new idea or behaviour by an organization.

Organizational innovation is the adoption of an idea or behaviour that is new to the organization’s industry, market or general environment.

14.3 Forces of Change14.3.1 External forces: Forces outside the organization, e.g. demographic character-

istics, technological advancements, market changes, social as well political pressures, confl icts, and sometimes natural and man-made disasters. Examples of external forces:

• Global competition and markets

• Global threats

• Global recession

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• Technological change

• International economic integration

• Maturation of markets in developed countries

• Fall of capitalist communist and socialist regimes

14.3.2 Internal forces: Forces within the organization itself, e.g. need for higher employee satisfaction with work environment or physical effects such as pro-ductivity and work performance. It may result in changes in internal policies, strategies, plans and rules. Examples of internal forces:

• Structure change due to mergers, joint ventures and consortia

• Strategic change

• Culture change

• New business processes, new technologies and products

• Knowledge management

• Enterprise resource planning

• Quality programmes

• Learning organizations

14.4 Models of Planned Change14.4.1 Lewin’s force fi eld analysis model

• Driving forces: Forces that direct behaviour away from the status quo.

• Restraining forces: Forces that hinder behaviour away from the status quo.

• Unfreezing: Change efforts to overcome the pressures of both individual resistance and group conformity.

• Refreezing: Stabilizes a change intervention by balancing driving and restraining forces.

14.4.2 A system model of change: According to the system model, change occurring within an organization will have a direct effect on the organization (Stewart, 2006).

14.4.3 Kotter’s steps for leading organizational change: It is a model that looks at the process of change and by understanding the process itself, one may manage change effectively. The steps are compared to Lewin’s model as shown in Table 14.2.

14.4.4 Change through organizational development: OD is much broader in orien-tation and constitutes a set of techniques used to implement a planned change through increasing organization’s ability to improve itself to make it more effective. Four characteristics of OD:

Profound change: A fundamental change resulting in lasting improvements.

Value loaded: Change aiming at satisfying customers’ needs and enhanced organization’s products and services.

Diagnosis cycle: Diagnosis cycle is an OD approach to diagnose organizational problems, prescribe and implement interventions, and monitor progress.

Process oriented: OD focus on the form and not the details such as the content of the dealings.

14.5 Research and Practical Implications Why people resist change:

• Individual’s predisposition toward change

• Surprise and fear of the unknown

• Climate of mistrust

• Fear of failure

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• Loss of status and/or job security

• Peer pressure

• Past success

• Lack of reward system

14.5.1 Channelling change

• Communication

• Learning

• Employee Involvement

• Stress Management

• Negotiation

• Coercion

14.6 Learning Organizations14.6.1 Defi ning organizational learning and learning organization

• Learning organization concentrates on methodologies for creating change to improve the learning process.

• Organizational learning is defi ned as a process of increasing an organiza-tion’s ability to take effective action. See Table 14.4

Teaching Notes


14.1 Process of Change and Organizational Development14.2 The Change Management and Innovation Process14.3 Forces for Change

14.3.1 Major Forces of Change14.4 Models of Planned Change

14.4.1 Lewin’s Force Field Analysis Model14.4.2 A System Model of Change14.4.3 Kotter’s Steps for Leading Organizational Change14.4.4 Change Through Organizational Development

14.5 Research and Practical Implications 14.5.1 Channelling Change 14.5.2 Understanding and Managing Resistance to Change14.5.3 Channeling Change

14.6 Learning Organizations14.6.1 Organizational Learning

Review Questions


Referring to the CIMB case, discuss the restraining and driving forces faced by CIMB in order to become a universal bank.

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1 What would your response be if a manager made the following statement? ‘Refreezing is not important; employees will retain the positive behaviours.’

Student can argue by discussing Lewin’s model and how the relevant discussion to support their position on why employees will or will not retain the positive behaviours.

2 Which source of resistance to change do you think is the most common? Which is the most diffi cult to deal with?

• Individual’s predisposition toward change

• Surprise and fear of the unknown

• Climate of mistrust

• Fear of failure

• Loss of status and/or job security

• Peer pressure

• Past success

• Lack of reward system

3 Choose a change situation and explain which of the internal and external forces for changes are infl uencing the strategy.

Students will illustrate a change situation and identify the following:

Internal Change External Change1. 1.2. 2.3. 3.4. 4.5. 5.

4 Choose an organization that you think fi ts the characteristics of a learning organi-zation.

Explain.

Name of organization:

Characteristics of a learning organization in that organization:

Methodologies for creating change to improve the learning process.


1 Listed below are reasons one would resist change except:A Individual’s predisposition toward change. B Surprise and fear of the unknown.C Fear of success.D Climate of mistrust.

2 Internal changes include the following except:A Technological change.B Structure change due to mergers, joint ventures and consortia.C Strategic change.D Culture change.

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3 Organizational development (OD) is:A the adoption of new idea or behaviour by an organization.B the adoption of an idea or behaviour that is new to the organization’s indus-

try, market or general environment. C Change efforts to overcome the pressures of both individual resistance and

group conformity.D comprehensive approach to planned change that is aimed at improving the

overall effectiveness of organization.

4 Which of the following statements on learning organization is correct?A The process of increasing an organization’s ability to take effective action.B Concentrates on methodologies for creating change to improve the learning

process.C An approach to diagnose organizational problems, prescribe and implement

interventions, and monitor progress.D Looks at the process of change and by understanding the process itself.

5 The four characteristics of OD do not include:A prognosis cycle.B process oriented.C profound change.D value loaded.


http://futuresearch.net.au/organizational-change/

http://www.managementhelp.org/org_chng/od-fi eld/OD_defn.htm

http://www.webmd.com

CHAPTER

15Human Resource Implications of Organization Behaviour

Learning Outcomes


• The link between organizational behaviour and human resource management.

• Applications of organizational behaviour in human resource management.

• Human resource management—system and strategic HRM.

• Organizational human resource planning.

• The individual factors in recruitment and selection.

• Who, what, when, why, and how to train and develop your HR.

• Performance management of human resources.

• Compensation: How and what to pay whom?

• Employee relations and industrial relations.

• Organizational safety and health.

• What is international human resource management?

Key Teaching Points

15.1 Link Between Organizational Behaviour and Human Resource Management

Throughout this book, one may fi nd that OB concepts, theories and approaches are readily applicable in the fi eld of human resource management (HRM). This is evi-denced in the various concepts, theories and approaches in organizational behaviour (OB) that have been discussed in the chapters.

15.2 Applications of Organizational Behaviour in Human Resource Management

We will elaborate how OB permeates the different human resource management prac-tices as shown in Table 15.1, namely, human resource planning, recruitment and selection, training and development, performance management, compensation and benefi ts, employee relations/industrial relations, organizational safety and health, and international HRM.

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Organizational

Behaviour

Human

Resource

Planning

Recruit-

ment and

Selection

Training and

Development

Performance

Management

(PM)

Compensation

and Benefi ts

Employee

Relations/

Industrial

Relations

Organiza-

tional Safety

and Health

International

HRM

1 Introduction to Organization-al Behaviour: Three levels of analysis

Job analy-sis

Training needs analysis

Designing PM system

Determining compensation

Individual issues

Similarity/ differences of OB across countries

2 Perception and Learning

Screening Learning styles

Perception of fairness

Perception of fairness

Training of experts

3 Personality Right employee

Testing

Hiring

Understanding personality

Personality clash in PM

Psychologi-cal contract

Accident prone behaviours

Expatriation

4 Emotion and Stress

Right employee

Testing

Hiring

Emotional intelligence training

Handling emotion in PM

Employee assistance programme

5 Attitude and Behaviour at Work

Right em-ployee

Testing Attitudinal training

Work attitude and perfor-mance

Job satisfaction Organi-zational citizenship behaviour

Organiza-tional justice, Whistle blowing

Surviving

6 Motivation Right employee

Testing Leadership

Training

Using PM as a motivating tool

Equity theory

Expectancy theory

Job design

Job character-istic model

Union or non-union

Motivating employees to practice safety

Overseas assignment

7 Groups and Teams

Criteria for teamwork

Teamwork Training

Rewarding groups/teams

Team-based pay (PfP)

Contract Team-based OSH activities

Multicultural team

8 Communica-tion

Commu-nicate the plan

Corporate image

Communica-tion training

Giving feed-back

Manage-ment–labour communi-cation

Cross-cultural communica-tion

9 Decision Making

Decision making styles

Hiring decision

Decision making training

Deciding rewards

Deciding compensation levels

Negotiation Making decision in multicultural setting

10 Power, Infl u-ence and Poli-tics

Policy Infl uence in hiring and selection

Assertive

Training

Employee–employer feed-back session

Negotiating employment contract

Managing confl ict

Sexual harassment

Infl uencing top manage-ment on safety and health issues

Infl uencing multicultural persons

11 Leadership Strategic HR

Leader-ship qualities

Leadership training

Evaluating leadership

Rewarding leadership

Manage-rial roles in contract negotiation

Corporate social re-sponsibility

Global leaders

12 Culture and Creativity/ Innovation

Person–environ-ment fi t

Inculcating culture in new people

Orientation

Cultural change

Rewarding creativity

Managing culture

Cross-cultural sensitivity

13 Structure and Organiza-tional Design

Workforce manage-ment

Reward structure

Repatriation

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Organizational

Behaviour

Human

Resource

Planning

Recruit-

ment and

Selection

Training and

Development

Performance

Management

(PM)

Compensation

and Benefi ts

Employee

Relations/

Industrial

Relations

Organiza-

tional Safety

and Health

International

HRM

14 Organi-zational Development and Managing Change

Change manage-ment

Different ways to recruit

Charac-teristics of innovative organizations

Innovation for competitive advantage

New ways of assessing performance

Resistance to change

Managing change across differ-ent countries

Table 15.1Applications of OB in Human Resource Management

15.3 Human Resource Management—System and Strategic HRM15.3.1 Objectives of HRM

• To help the organization reach its goals.

• To utilize knowledge, skills and abilities (KSA) of its employees effi ciently.

• To motivate and train its employees for personal and organizational growth.

• To enhance employee job satisfaction and self-actualization.

• Ensure quality of work life (QWL).

• To inculcate the values of individual and corporate social responsibilities.

15.3.2 Systems approach to HRM: Systems approach to HRM ensures that all the ele-ments of HRM are interrelated to other subsystems of the organization to achieve the organizational goals.

15.3.3 Strategic human resource management: Strategic human resource manage-ment (SHRM) is a planned human resource management and development approach intended to enable an organization to achieve its goals and gain com-petitive advantage

15.4 Organizational Human Resource PlanningHuman resource planning (HRP) is an attempt to place the right employees in the right jobs at the right time.

Whereas OB focuses on the behaviours of individuals within the organizations, HRP forecasts personnel demand, assess supply, and reconcile the two.

In fi nding the right individuals, we need to have a good understanding of the indi-vidual level of OB analysis such as:

• Personality (Chapter 3)

• Emotion and stress (Chapter 4)

• Attitudes (Chapter 5)

• Motivation (Chapter 6)

• Encouraging group or teamwork (Chapter 7)

• Selecting the proper way to communicate the HR plan to the employees (Chapter 8)

• Using power and infl uence in changing policy (Chapter 10)

• Decision making (Chapter 9)—SWOT analysis.

15.5 Recruitment and Selection

• Every human being is unique and we can expect them to have the right skills, knowl-edge and abilities as needed to carry out their responsibilities in the right job.

• How does one test for: Personality (Chapter 3) Emotions (Chapter 4) Attitudes (Chapter 5)

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15.6 Training and Development

• Training is any attempt to improve employee performance on current job.

• Development is learning opportunities designed to help employees grow.

• Who, what, how, when, why to train and develop.

• Worker-oriented approach to identify knowledge, ability, skills or other competen-cies (KASOC) and behaviours needed.

• Task-oriented approach describes the work activities.

• Conduct person analysis in order to fi nd out who needs training and what specifi c type by comparing their performance to expected performance standards.

• Conduct training needs analysis to identify types of training needed.

15.7 Performance Management

• Performance is the record of outcomes produced on a specifi ed job function or activity during a specifi ed time period.

• Performance as a whole is equal to the sum of performances on job functions.

• The OB implications include training the supervisor on how to communicate and give feedback (Chapter 8), using the performance management as a motivational tool (Chapter 6), highlighting the issues of power, infl uence and politics (Chapter 10) during the employee-supervisor feedback session, and identifying and evaluating leadership (Chapter 11).

15.8 Compensation and Benefi tsThe what, how and why of compensation and benefi ts are deep rooted in OB whereby a good understanding of individual behaviour and attitudes will assist in determining compensation. It is also important to understand what causes job satisfaction in rela-tions to pay and compensation and the relevant OB theories such as equity theory and expectancy theory and the job design and job characteristic model. When compensat-ing groups of employees, one has to also understand the basis for team-based pay (pay for performance). We also need to understand how management and employees can negotiate the employment contract. Also, OB concepts help in determining how to reward leadership (perks, benefi ts) and rewarding creativity (motivating factors).

15.9 Employee Relations and Industrial RelationsIn a unionized environment, OB plays an important role to help both the union and the management in understanding the issues related to employee relations and/or industrial relations. Such understanding of OB concepts relate to:

• Perception of fairness

• Psychological contract

• Organizational citizenship behaviour

• Union or non-union

• Contract

• Management-labour communication

• Negotiation

• Managing confl ict

• Sexual harassment:

• Managerial roles in contract negotiation

• Managing culture

• Resistance to change

15.10 Organizational Safety and HealthSafety and accident prevention concerns managers and organizations. Organizational concerns range from revenue management to image management and a sense of good-will in its employees and other stakeholders, like share holders and the society in general.

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The OB implications of safety and health are manifested in understanding personality traits such as accident-prone behaviour or employee assistance programme, organiza-tional justice, and motivation (motivating employees to practice safety).

15.11 International Human Resource ManagementBuilding capable workforce for sustainable organization needs separate set of IHRM policies and strategies. Managing diversity, cultural difference, cross-cultural commu-nication, multicultural teams, overseas assignment and management of expatriates in workforce necessitate separate set of OB interventions. OB activities relevant to inter-national HRM include:

• Training of expats

• Expatriation

• Surviving

• Overseas assignment

• Multicultural team

• Cross-cultural communication

• Making decision in multicultural setting

• Infl uencing multicultural persons

• Global leaders

• Repatriation

Teaching Notes


15.1 Link between Organizational Behaviour and Human Resource Management15.2 Applications of Organizational Behaviour in Human Resource Management15.3 Human Resource Management

15.3.1 Human Resource Management Practices15.4 Human Resource Planning (HRP)

15.4.1 HRP and Individual Level OB15.4.2 HRP and Group Level OB15.4.3 HRP and Organizational Level OB

15.5 Recruitment and Selection15.5.1 Personality15.5.2 Emotions15.5.3 Attitudes

15.6 Training and Development15.7 Training and Development Approaches15.7 Performance Management15.8 Compensation and Benefi ts15.9 Employee Relations and Industrial Relations15.10 Organizational Safety and Health15.11 International Human Resource ManagementReview Questions

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1 Ask students to interview an HR manager and report back to class. The interview should focus on the function and activities of the HR department.

2 Can you use the OB concepts, theories and approaches you have learned in previ-

ous chapters to explain the behaviours of Maggie (the Sales Supervisor), the sales girls, Mei (the Sales Executive) and the Manager? If you were the Human Resources Director, what OB knowledge would be useful for you to do so? Can you clarify the behaviours that took place in the case of ‘GoodLook,’ and subse-quently control these behaviours?


1 What is the link between OB and HRM? One may fi nd that OB concepts, theories and approaches are readily applicable in

the fi eld of human resource management (HRM). OB permeates the different human resource management, namely, human resource planning, recruitment and selection, training and development, performance management, compensa-tion and benefi ts, employee relations/industrial relations, organizational safety and health, and international HRM.

2 How do you plan human resources from OB viewpoint? Human resource planning (HRP) attempts to place the right employees in the

right jobs at the right time forecasts personnel demand, assess supply, and recon-cile the two. Using OB principles, it focuses on the behaviours of individuals with-in the organizations, decision making (Chapter 9) – SWOT Analysis.

3 What are the individual factors to be considered in recruitment and selection? Every human being is unique and we can expect them to have the right skills,

knowledge and abilities as needed to carry out their responsibilities in the right job. The individual factors to be considered are personality, emotions and attitudes.

4 What considerations should be taken for training and developing employees?

• Training is any attempt to improve employee performance on current job.

• Development is learning opportunities designed to help employees grow.

• Who, what, how, when, why to train and develop.

• Worker-oriented approach to identify knowledge, ability, skills or other compe-tencies (KASOC) and behaviours needed.

• Task-oriented approach describes the work activities.

• Conduct person analysis in order to fi nd out who needs training and what spe-cifi c type by comparing their performance to expected performance standards.

• Conduct training needs analysis to identify types of training needed.

5 What OB theories are applicable in determining how and what to pay employees? Many OB theories and concepts can be involved in determining how and what to

pay employees. Among them are:

• Attitude and behaviour at work – how to measure job satisfaction related to pay.

• Perception and learning – how employees perceive fairness and expectations of pay using motivation theories such as equity theory, expectancy theory, job design and the job characteristic model.

• Groups and teams – how to use team-based pay (PfP)

• Communication – how to communicate wage and salary administration

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• Decision making – how/what to decide in compensation management

• Power, infl uence and politics – Negotiating employment contract

• Leadership – how to reward leadership

• Culture and creativity/Innovation – how to reward creativity

• Organizational development and managing change – instituting incentive system

6 What are OB factors that contribute to organizational safety and health? Several OB factors that can contribute to organizational safety and health include:

• Personality – how to detect accident prone behaviours

• Emotion and stress – how employee assistance programme can help employees deals with stress, substance abuse, and burnout

• Attitude and behaviour at work – how to inculcate organizational justice in organizational policies and practices

• Motivation – how to motivate employees to practice safety in the workplace.


1 For diversity management programmes to work, companies need:A to focus on the average differences among people.B top management support pressuring lower management to comply.C total management support.D an affi rmative action plan.

2 Below are objectives of HRM except:A To utilize knowledge, skills and abilities (KSA) of its employees effi ciently.B To diagnose the behavioural problems of employees.C To motivate and train its employees for personal and organizational growth.D To enhance employee job satisfaction and self-actualization.

3 The following OB concepts are relevant to employee relations and/or industrial relations except:A perception of fairness.B psychological contract.C job satisfaction.D organizational citizenship behaviour.

4 Training and development should consider the feedback from the following activities:A task-oriented approach describes the work activities. B person analysis in order to fi nd out who needs training. C training needs analysis to identify types of training needed. D All of the above.

5 Human resource planning (HRP) is:A an attempt to place the right employees in the right jobs at the right time.B an attempt to improve employee performance on current job.C a set of learning opportunities designed to help employees grow.D an approach to identify knowledge, ability, skills or other competencies

(KASOC) and behaviours needed.

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Answer Key for Multiple Choice Questions for Each Chapter

Chapter/Question 1 2 3 4 5

1 Introduction to Organizational Behaviour B C D C D

2 Perception and Learning C B D B D

3 Personality C B A B C

4 Emotion and Stress D B C A D

5 Attitude and Behaviour at Work B A D A B

6 Motivation B D A C A

7 Groups and Teams A B C B D

8 Communication D D B A C

9 Decision Making C A A D B

10 Power, Infl uence and Politics A B C D D

11 Leadership C B B B D

12 Creativity, Innovation and Culture C B D A A

13 Organizational Structure and Design B C A C B

14 Managing Change and Organizational Development C A D B A

15 Human Resources Implications of Organizational Behaviour

A B C D A


http://www.mdi.ac.in/home/home.asp

http://leadership.wharton.upenn.edu/structure/tools_for_design_and_change/designing_HR_systems.shtml

http://www.hcamag.com

OB Instructor's Resource.final

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