ORGANISATIONAL BEHAVIOUR - pdfuni.com

ORGANISATIONALBEHAVIOUR

Fifth Edition

IAN BROOKSIndividuals, Groups and Organisation

ORGANISATIONALBEHAVIOUR

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ORGANISATIONALBEHAVIOUR

Fifth edition

IAN BROOKS

Individuals, Groups and Organisation

Pearson Education LimitedKAO TwoKAO ParkHarlow CM17 9NAUnited KingdomTel: +44 (0)1279 623623Web: www.pearson.com/uk

First published 1999 (print)Second edition published 2003 (print)Third edition published 2006 (print)Fourth edition published 2009 (print)Fifth edition published 2018 (print and electronics)

© Prentice Hall 1999, 2003, 2006, 2009 (print)© Pearson Education Limited 2018 (print and electronic)

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ISBN: 978-1-292-20068-2 (print)978-1-292-20070-5 (PDF)978-1-292-20072-9 (ePub)

British Library Cataloguing-in-Publication DataA catalogue record for the print edition is available from the British Library

Library of Congress Cataloging-in-Publication DataNames: Brooks, Ian, 1956– author.Title: Organizational behaviour : individuals, groups and organisation / Ian

Brooks.Description: 5th edition. | New York : Pearson Education, [2018]Identifiers: LCCN 2017053564| ISBN 9781292200682 (Print) | ISBN 9781292200705

(PDF) | ISBN 9781292200729 (ePub)Subjects: LCSH: Organizational behavior.Classification: LCC HD58.7 .B7545 2018 | DDC 302.3/5—dc23LC record available at https://lccn.loc.gov/2017053564 (https://lccn.loc.gov/2017053564)

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Contents

xv Prefacexvii About the authorxviii Acknowledgements

1 CHAPTER 1Organisational behaviour in an international context

1 Learning outcomes and key concepts2 Introduction2 What is organisational behaviour?3 Why study organisational behaviour?3 Organisational behaviour today4 Four themes: diversity, change, conflict and communications5 Diversity in the workplace5 Global change leading to organisational change6 Conflict and communication7 Overview of the text8 Case studies and examples

10 The Impact of National Culture on Organisational Behaviour11 National culture: definition13 Geert Hofstede16 Individualism–collectivism17 Power distance17 Uncertainty avoidance20 Masculinity–femininity20 Long-term–short-term orientation21 Culture shock and culture shift22 Culture and change in China23 The significance of communication in a cross-cultural context25 Developing cultural competencies27 Conclusions27 References28 Further reading

29 CHAPTER 2From classical organisational theory to the gig economy

29 Learning outcomes and key concepts30 Introduction

viii Contents

30 Introduction: Schools of Thought31 Macro-organisational theories32 Technical–rational approach32 Bureaucracy33 The classical school34 Scientific management34 Frederick Taylor36 Gilbreth and Gantt37 A critique38 Socio-human approach38 Human relations school41 Systems theory42 Recognising international diversity: convergence vs divergence43 Contemporary lenses and postmodernism43 Frames or perspectives45 Organisation as a brain: the learning organisation46 The World of Work is Changing: the Gig Economy46 The gig economy47 The pros and cons of the gig economy50 Not just for the young50 Boundaryless careers51 Potential benefits52 Potential drawbacks52 Gig economy: impact on organisational behaviour53 From organisation teamwork to leveraging your networking53 From formal authority to interpersonal, participative, capability53 The gig economy and the psychological contract54 Contemporary themes in organisational behaviour55 Managerial Implications55 Summary of Main Points56 Conclusions57 Questions57 References58 Further Reading

59 CHAPTER 3Perspectives on individual behaviour

59 Learning outcomes and key concepts60 Introduction60 Individual Behaviour and Personality61 Personality theories62 Trait theory63 Humanistic approach64 Psychodynamic theory64 Jung’s personality theory

Contents ix

66 Testing individuals and groups in organisations67 Personality in the organisation68 Emotional intelligence (EI): a quality for the twenty-first century?71 Perception and the Perceptual Process75 Self-perception76 Attribution theory78 Attitudes and Values78 Attitudes79 Values80 Emotional labour82 National culture and individual behaviour83 Learning in the Organisation83 Learning styles84 Kolb’s learning cycle85 Organisational learning and change85 Decision Making86 The rational model86 Satisficing86 Garbage can model87 Cognitive bias in decision making87 Non-decision making88 Diversity, Change, Conflict and Communication88 The Johari Window: using communication to change perception91 Psychological contracts: will organisational change lead to more conflict?92 Managerial Implications92 Summary of Main Points93 Conclusions94 Questions94 References96 Further Reading

97 CHAPTER 4Motivation theory, practice and generational change

97 Learning outcomes and key concepts98 Introduction and Definition99 Motivation Schools of Thought

100 Behavioural modification theory and giving feedback101 Expectancy theory: a framework for the analysis of workplace motivation102 Porter and Lawler’s expectancy model105 Needs theories105 Needs hierarchy108 McClelland’s achievement needs theory111 Intrinsic and extrinsic rewards: Herzberg115 Goal theory and self-motivation118 Motivation and equitable treatment

x Contents

119 Change, motivation and the psychological contract121 Generational Changes, Motivation and Organisational Behaviour124 What are the implications for motivation and other organisational behaviour

priorities?125 Motivation and diversity126 Motivation and conflict127 Motivation and communication127 Motivation and job design130 Hackman and Oldham job characteristic model131 Managerial Implications132 Summary of Main Points132 Conclusions133 Questions133 References135 Further Reading

137 CHAPTER 5Groups and teams

137 Learning outcomes and key concepts138 Introduction138 Why gather in groups?139 Groups and teams: definition140 Groups140 Teams141 Self-directed and self-managed teams144 Communities of practice145 Groups within groups145 Formal and informal groups and teams145 Formal groups146 Informal groups148 Stages of Group and Team Development148 Bass and Ryterband148 Tuckman151 Roles and Routines151 Group norms151 Group roles152 Belbin’s team roles152 Building and maintaining effective teams155 Group cohesiveness and performance156 Conformity and groupthink159 Intra-group behaviour and conflict161 Inter-group behaviour and conflict162 Into the Twenty-first Century: Mobile Communications, Virtual and

Cross-cultural Teams166 Teamwork in a modern global context167 Cross-cultural teamworking

Contents xi

168 Virtual teams172 Groups and change172 Teams – are they really that good?174 Managerial Implications175 Summary of Main Points175 Conclusions176 Questions176 References178 Further Reading

181 CHAPTER 6Management and leadership

181 Learning outcomes and key concepts182 Introduction182 From Taylor to Mintzberg183 Frederick Taylor183 Henri Fayol184 Peter Drucker186 Henry Mintzberg188 Differentiating leadership from management189 Transformational vs transactional leadership191 Leadership: Schools of Thought191 Trait theory of leadership193 Behavioural theories193 Leadership style196 Theory X and Theory Y196 Conclusions197 Situational theory197 Fiedler’s contingency theory198 Conclusions199 New Perspectives on Leadership199 Non-Western leadership theories200 Servant leadership200 Cross-cultural leadership201 Pluralistic leadership203 Entrepreneurial leadership204 Leaders on leadership205 Women and leadership206 Leadership and conflict206 Leadership and change207 Managerial Implications208 Summary of Main Points208 Conclusions209 Questions209 References211 Further Reading

xii Contents

213 CHAPTER 7Organisational structure

213 Learning outcomes and key concepts214 Introduction214 What is structure?215 Talking about structure: definitions215 Centralisation and decentralisation216 Differentiation216 Integration216 Specialisation216 Formalisation and the informal organisation217 Span of control217 Bureaucracy218 Traditional Structural Types218 Multifunctional (U-form) structures220 Multidivisional (M-form) structures221 Post-bureaucratic Structures221 Matrix structures224 Project management matrix225 Family business226 Network structures and virtual organisations227 Virtual organisations229 Comparison of the Main Structural Forms229 Delayering and flexible working232 Flexible working233 Distancing233 Numerical flexibility233 Functional flexibility233 Numbers on flexible working arrangements234 What Influences Organisational Structure?235 Strategy and structure236 Blue ocean strategy236 Technology and structure237 Size and structure238 The business environment239 Cross-cultural influences on structure241 Summary242 Knowledge Workers, Holacracy and Communities of Practice245 Holacratic structures246 Organisational Change and Restructuring246 Structural inertia247 Forces for change248 Change management models251 Diversity251 Managerial Implications

Contents xiii

251 Summary of Main Points252 Conclusions252 Questions253 References255 Further Reading

257 CHAPTER 8Organisational power, politics and conflict

257 Learning outcomes and key concepts258 Introduction258 The Political Perspective259 Are organisations guided by rational behaviour?261 Unitary, pluralist and radical views263 Organisational Power263 Sources of power267 Covert power268 Powerlessness269 Empowerment270 Summary: the pros and cons of power in organisations271 Organisational Politics272 Four foci of political activity272 Structural change272 Inter-departmental coordination272 Resource allocation272 Management succession273 Politics and sport273 Organisational Conflict275 Conflict and diversity276 Management of conflict277 Conflict-handling model279 Symbols and power280 Power and organisational change281 Resistance to change283 Managerial Implications284 Summary of Main Points284 Conclusions284 Questions285 References286 Further Reading

287 CHAPTER 9Organisational culture: the impact onorganisational behaviour

287 Learning outcomes and key concepts

xiv Contents

288 Introduction288 Organisational Culture290 Subculture and professional cultures292 Subculture and professional cultures: a source of organisational conflict292 Sector recipes292 Organisational culture: definitional debate294 Culture and organisational performance295 Cultures as an onion296 Structural view of culture296 Strategy view of culture298 The interpretative view of culture300 Diversity, Institutional Racism and ‘Culture of Fear/bullying’301 Organisational Culture and Change306 Managerial Implications306 Summary of Main Points307 Conclusions307 Questions307 References309 Further reading

311 Glossary319 Index

Preface

This significantly updated and amended fifth edition provides an introduction to organisa-tional behaviour. It is intended for students on a range of courses including:

• Business Studies/Business Administration or similar business and management under-graduate degrees often at level 1 or 2;

• Modules inWorking with People, Organisational Behaviour, Managing and Organisingor similar subject titles including introductory programmes for advanced HRM;

• Post experience/postgraduate and professional courses, part of which comprise Organi-sational Behaviour as an introduction or underpinning of management, HRM, themanagement of change, cross-cultural management, or business strategy.

• A general reader as a focused and lively updated introduction to the subject.

This edition aims to be more accessible than the market leaders in the field. It provides asuccinct and focused, yet robust, coverage of the subject. In my experience, many under-graduate students find a larger text inaccessible and rather daunting.

The text includes considerable new material of relevance to the modern twenty-first-century workplace (e.g. modern communication technologies, cross-cultural management,generational change) and changing forms of employment (e.g. gig economy) and placesOB in the international or global context that it warrants. Many OB texts virtually ignorecultural difference, which at best is forgetful and at worst blinkered and ethnocentric.MostOB texts tend also to ignore the changing nature of both the workplace and the genera-tional changes taking place among students, employees, managers and in wider society.

Considerable research was undertaken prior to the design of the text to ascertain theneeds of students and tutors in this regard. Their responses and advice have directly influ-enced the design objectives and content of the text, for which I am very grateful.

Every effort has been made to trace and acknowledge ownership of copyright. The pub-lishers will be pleased to make suitable arrangements with any copyright holders whom ithas not been possible to contact.

Exciting new contents – major updates for the fifth editionI have attempted to take on board both reviewer comments and my own and others’ teach-ing and senior management experiences and have, as a consequence, embraced many newdevelopments in the world of work and existing phenomenawhich exert a profound impacton behaviour in and around organisations. The fifth edition better reflects the realities oftoday’s workplace, a workplace that most students of this subject will enter shortly withaspiration, understanding, enthusiasm and, of course, some innocence. The text hasimproved currency and hence relevance for students while also maintaining the core and

xvi Preface

essence of OB: most of the key contents that comprise this wonderful subject remain andform the basic structure of the text.

New materials

• The book includes significant explanatory academic and practical material on nationalculture in Chapter 1 and then in all subsequent chapters in the context of the subjectscovered. This provides an ongoing critique of Western models (where appropriate), theinclusion of some non-Western theories and the impact that culture has on OB in vari-ous geographical contexts. Many fascinating insights, particularly for the uninitiated,are revealed: for example, did you know that despite ‘Western’ fascination with ‘leader-ship’, there is no direct translation of that word in many ‘Eastern’ languages.

• Inclusion of a major section on the gig economy and boundaryless careers and refer-ence elsewhere where relevant. The world of work is changing with profound individ-ual, organisational and societal implications. These impact the subject of OB whichhitherto tended to assume traditional employment patterns. We explore some of theconsequences of change both for these involved and for the subject of OB, for example,its impact on the psychological contract, on motivation and on management andleadership.

• Consideration of generational changes, responding to reviewers and tutors’ argumentsthat some traditional theory assumes stable, homogeneous contexts and that ‘today’s’young people have experienced radically different contexts from those of their parentsand grandparents. We explore the attitudes, values and behaviours of Baby Boomersthrough to Generation X, Y andZ, and the hypothesis that there are significant implica-tions for behaviour in organisations. One’s own experiences are such that recognition ofgenerational differences reflects the realities one can observe.

• There is further updated material on many contemporary themes in OB, for example:the impact of modern communication technologies; emotional intelligence; culturalintelligence; emotional labour; work–life balance (WLB); knowledge workers; commu-nities of practice; pay and motivation; self-motivation; networking; virtual teams, vir-tual organisations and networked structures; cross-cultural working; family businessand Chinese family business; blue ocean strategy; more on change and changemanage-ment, and further material on diversity including institutionalism racism and ‘culture offear’.

• We have added further real-life cases (some amended/disguised), often from recent grad-uates inwork.

• A glossary of terms added for the first time.

We have removed some older, less relevant or repetitive material while preserving those keyseminal contributions in each chapter: it is a blend of the old and good and the new andexploratory.

About the author

Dr Ian Brooks ‘retired’ in the summer of 2016, after over fifteen years as Dean of theNorthamptonBusiness School and later ExecutiveDean at the University of Northampton,and entered the gig economy. In his executive role he held strategic responsibility foruniversity-wide internationalisation and for developing academic partnerships with educa-tion organisations at home and overseas. He helped establish new franchise and similaracademic/business arrangements in New Zealand, Hong Kong, Singapore, Malaysia,Myanmar, India, Sri Lanka, Mauritius, Ghana, Kenya, Dubai (all involving travel to andaround those locations, of course) and in the United Kingdom.

Whilst a tutor he taught OB, organisational change and business strategy and has pub-lished in many peer-reviewed journals (seeResearch Gate) in OB, cultural change and strat-egy. Ian has a first degree from NottinghamUniversity and an MBA from Bath University.His PhD focused on organisational and professional culture and change.

In ‘retirement’ Ian does a little writing (hence this fifth edition) and international educa-tional consultancy and is a visiting professor of the University of Northampton.

Ian was born in Gloucester and lived in Dubai for seven years in the 1980s. He is marriedwith children in work and at university.

Acknowledgements

We are grateful to the following for permission to reproduce copyright material:

FiguresFigure 2.2 adapted from Management and Organisational Behaviour, 7th edn., FinancialTimes Prentice Hall (Mullins, L. J. 2005) p. 130© Pearson Education Ltd.; Figure 2.4 fromOffice for National Statistics, Labour Force Survey, Office for National Statistics licensedunder the Open Government Licence v.3.0.; Figure 4.2 adapted from Managerial Attitudesand Performance, Richard D. Irwin (Porter, L. W. and Lawler, E. E. 1968); Figure 8.6adapted from Conflict and conflict-management in Dunnette, M. D. (ed.) Handbook ofIndustrial and Organizational Psychology, Rand McNally (Thomas, K. 1976); Figure 9.4after Exploring Corporate Strategy, Prentice-Hall (Johnson, G. and Scholes, K. 2013)© Pearson Education Ltd.

TablesTables 1.1, 1.2 adapted from Culture’s Consequences: Comparing Values, Behaviors, Insti-tutions and Organizations Across Nations, 2nd ed., SAGE Publications (Hofstede, Geert2001) Reproduced with permission from Geert Hofstede BV; Table 3.3 adapted fromOrganizational Behavior: The Essentials, South-Western (Nelson, Debra L. and Quick,James C. 1996) Reproduced with permission of WEST PUBL., in the format Republish ina book via Copyright Clearance Center

TextNewspaper Headline on page 48 from Obligations not excuses to workers are needed, TheGuardian, 28/10/2016 (Editorial), Courtesy of Guardian News&Media Ltd; Box 2.6 fromAmyClement, Reproducedwith permission; Box 5.5 from Seratio, Seratio Limited is a spinout company of the Think Tank, the Centre for Citizenship Enterprise and Governance.cceg.org.uk

Acknowledgements xix

Picture CreditsThe publisher would like to thank the following for their kind permission to reproducetheir photographs:

(Key: b-bottom; c-centre; l-left; r-right; t-top)

Shutterstock.com:Granger / REX / Shutterstock 71b, scheresteinpapier 73t

All other images © Pearson Education

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Learning outcomesOn completion of this chapter you should be able to:

• understand the nature and scope of organisational behaviour (OB) in the internationalcontext in which weoperate;

• understand the value of a behavioural approach to working in and managingorganisations;

• recognise that organisational behaviour is ever changing;• know how this text is structured;• understand the concept of national culture, the context of OB;• understand the impact of culture and Hofstede’s dimensions of culture, appreciating

the major differences that exist globally;• understand the importance of and difference between culture shock and culture shift;

and• understand the importance of the four themes of diversity, change, conflict and

communications to the study of organisational behaviour.

Key concepts• individual behaviour• group behaviour• organisational behaviour• organisational analysis• quality of work life/work–life balance• international context• national culture• dimensions of culture• culture shock

• culture shift• new organisational behaviours

and forms• multidisciplinary study• theory to practice• diversity• change• conflict• communications

CHAPTER 1

Organisational behaviour inan international context

2 Chapter 1 Organisational behaviour in an international context

IntroductionThis introductory chapter outlines the nature of organisational behaviour. It describes howthis text is structured and styled to enable the reader to understand the often-theoretical sub-ject matter in the context of modern organisational practice. Organisational behaviour (OB)is the study of human behaviour in organisational contexts, with a focus on both individualand groupprocesses and actions. Hence, it involves an exploration of organisational andman-agerial processes in the dynamic context of the organisation and is primarily concerned withthe humanimplications of such activity. We recognise thatOB is impacted by national culturesand subject to continual change andchallenges resulting from globalisation andsocio-politicaland economic changes. Hence, this OB text differs from many by exploring the international,cultural, context in which many, if not most, organisations and employees now operate.National cultures profoundly impact OB. Furthermore, most of the theories covered in thissubject derive from the United States and ‘Western’ cultural models. Throughout this text werefer to theories and practices from other global locations and consider the ethnocentricnature of some traditional research. In this chapter, we explore the impact of national culturegenerically on people and, therefore, on OBand explain the contribution made by Hofstede toour understanding of cultural difference and its impact on organisations.

What is organisational behaviour?

Organisational behaviour (OB) is the study of human behaviour in organisational con-texts with a focus on both individual and group processes and actions. Hence, it involvesan exploration of organisational and managerial processes in the dynamic context of theorganisation and is primarily concerned with the human implications of such activity.The subject is rooted in the behavioural sciences, notably sociology and psychology, andunderpins in many respects the study of management. It is an applied behavioural sciencewhich seeks to draw on a broad and extensive theoretical and practical knowledge base toadvance our understanding of the complexities of human behaviour in organisations andto inform management thinking and activity. BothOB andmanagement are social sciencesinformed partly by research and partly by debate in the traditional subject disciplines ofpsychology, sociology and, to an extent, anthropology, political science and economics.

Psychologists are generally concerned with the study of individual human behaviour andthe personality system, whereas a branch of that subject, social psychology, looks at group,including organisational, behaviour. Sociologists focus on social behaviour and are particu-larly concerned about societal structures, conflict and control. Anthropologists explore cul-ture; that is, the symbolic, attitudinal and behavioural factors which unite various socialgroups. In so far as it relates to OB, political science is the study of power and controlbetween individuals and groups, whereas economics attempts to provide a rational explana-tory framework for individual and organisational activity. As organisational behaviour hasroots in many traditional academic fields, it is considered to be a multidisciplinary subject.

Human behaviour in organisations is complex as it is affected by, and in turn influences,an array of factors, including managerial action, changing competitive circumstances andnew technologies. People in organisations interact with their environment, with stakehold-ers and with others in the organisation. There are significant differences in personalitybetween individuals, many people behave differently in groups than when working alone

Introduction 3

and most are influenced by the norms and values of the organisation and of the society inwhich they live and work. These influences and interconnections make the study of OBinherently interesting and enlightening, especially for those concerned with human or peo-ple issues in organisations.

Why study organisational behaviour?A knowledge of OB should enable you to explain and even predict human behaviour inorganisations and potentially to manage and control it if appropriate. Additionally, OB isboth informed by and contributes to organisational theory and management theory and,as a consequence, it forms an integral part of most undergraduate and postgraduate pro-grammes in business studies, management and leadership. Moreover, it is an importantsubject for all who work and manage in organisations.

Many of the theories and arguments presented in this text have value to the work ofmanagers and other employees in organisations. Even for students with little or no for-mal organisational work experience, the ability to apply OB to ‘organisational’ contextsshould prove both possible and valuable. Your family, your circle of friends, your sportsor other clubs and the university or college in which you study are all organisations.Organisational behaviour is relevant to your work, study and play. You will have wit-nessed considerable change already in your lifetime and will certainly experience morein the decades to come. Organisational theory, some of which was developed a hundredyears ago, is not necessarily redundant as it continues to influence and predict organisa-tional behaviour. However, technology and globalisation are having a profound impacton organisational norms and ways of working and interacting with colleagues.

As a result of studying this subject, you may possibly alter your ‘management philoso-phy’ including, perhaps, long-harboured beliefs. You may also obtain the answers to out-standing questions about issues such as: how people are motivated or led, how groups orteams function, why the structure of an organisation influences the behaviour of peoplewho work in it, and how both the culture and power relationships in organisations affecthuman behaviour at work.

The study of OB should enable you to diagnose organisational problems with someinsight and expertise. Following that diagnosis, you may be able to develop solutions toproblems, ways of dealing with difficult ‘human’ issues or, perhaps crucially, ways of avoid-ing certain problems in the first place. In short, there is something very practical aboutmany of the theories presented in this text: you, the scholar and the ‘manager’, will, how-ever, need to interpret and apply them to the particular context inwhich you operate. That,if achieved, would represent a highly worthwhile, constructive and meaningful learningexperience and should make you a more effective manager.

Organisational behaviour todayOrganisational behaviour, like organisations themselves, is changing. Although most ofthe important underpinning theory and seminal works were published in the twentiethcentury, they still have relevance today. However, globalisation, cultural difference, infor-mation and communications technology and societal expectations and norms are pro-foundly impacting behaviour in and of organisations.

4 Chapter 1 Organisational behaviour in an international context

This text includes many examples of such changes. These changes will continue often inunpredictable ways: the world of work will change. We cover many more recent changes inthis text, including the growth of newer, more flexible ways of working, the ‘gig economy’and ‘boundaryless careers’, for example. We explore, often through short case studies, theway in which social media and mobile communications are impacting the way real peoplework. There are generational divides impacting behaviour in organisations and new organ-isational forms often accommodating those changes.

We also explore in this text the frequent criticism of organisational behaviour as beingdriven by a Western, usually Anglo-American, model and include multiple illustrationsof how different cultures behave differently in organisations. It is vital for people inorganisations to recognise that their own cultural perspectives may vary considerablyfrom others who come from different countries or who adhere to different values. Ethno-centrism characterises many theories and perspectives in OB, so we attempt to illustratethat cultural difference is very much alive and a constant feature of organisations, par-ticularly for managers and workers who in the course of their work life interact interna-tionally. At the very least, we hope to reduce ‘culture shock’ when people encounterorganisations, groups and individuals holding very different cultural understandings.

A subsequent edition of this text may offer sufficient evidence to include considerationof the impact of robotisation on organisational behaviour.We know already that in certainmanufacturing environments, robots have in a large measure replaced low- and medium-skilled labour. These technologies are now being applied to clerical work, and althoughestimates vary, most commentators now believe that this will significantly impact thenature and terms of employment for many administrative employees in the next twodecades.

Four themes: diversity, change, conflict and communicationsFour themes inform and influence a number of the topics covered in the text. These themes –diversity, organisational change, conflict and communications – often form separate chaptersin OB texts. However, in an attempt to illustrate the interconnectedness of organisationsand the all-embracing significance of these four themes, they are integrated into each keychapter.

Diversity, change, conflict and communications are omnipresent in organisations. Theyare part of the fabric and reality of organisational life. The degree of success in the man-agement of diversity, change, conflict and communications will influence human produc-tivity and well-being and, hence, the competitiveness of the organisation and its ability tomeet its objectives.

The four themes closely relate to the main topics covered in this text, such as motivation,teamwork, structure, politics and culture. For example, organisational culture is often seenas ‘an intangible glue’ (Morgan, 1986) which binds people together. As such, it is argued,culture reduces potential conflict in organisations which have a strongly held value andbelief system. Organisational change often goes hand in glove with cultural change; anappreciation of the former involves knowledge of the latter, whereas communication, in itsbroadest sense, is the mechanism whereby culture is learned and changed. Hence, thesefour themes improve our understanding of and enrich the concept of culture and the othertopics covered. This approach should enable you to understand better the complexity oforganisational reality.

Introduction 5

Diversity in the workplaceMost organisations employ a diverse array of people, and most, if not all, work in a widerdiverse context. Chapter 3 explores individual differences and demonstrates how such differ-ences can influence how organisations function. However, in addition to generic differences inpersonality, perception, learning, communication styles and so forth, there is also diversity ofgender, age, race or ethnicity, abilities and disability, religious belief and sexual orientation.Organisationsare richhuman environments – environmentswhich require of all employees andleaders recognition, tolerance and, hopefully, celebration of individual and group differences.Within each chapter, we will attempt to reflect on diversity in the context of organisationalbehaviour.Moreover, we ask the reader to reflect furtheron this vital aspect of organisation.

Traditionally, it is fair to say, people were generally not expected to allow their personalor home lives to impact their working lives. There is now increasing recognition that peopledo manage complex lives and need to balance the range of demands on their time, energyand emotions. In more recent years the term ‘work-life balance’ (WLB) has been used torefer to the holistic recognition of employees’ broader life commitments. The pressures toachieve some form of balance varies between different people, at different stages of theirlives, and is often related to gender and cultural background as well as personal circum-stances. WLB is a key aspect of diversity and, hence, management in organisations.Increasingly, many people are concerned about quality of life (QL) and quality of work life(QWL) issues and seek a balance between the material wealth that demanding and fullemployment canbring and the benefitsof fewerworkplace commitments or more enjoyableand fulfilling commitments. Consider how individuals in different circumstances – perhapsyourself – may require or consider WLB and QL or QWL.

Global change leading to organisational changeFew if any organisations can claim to operate in a stable environment. Change is often rapid,complex in its implications and even unpredictable, but it is more often gradual or incremen-tal: without change, most organisations become redundant. Change can and does take manyforms. It can directly impact the nature and level of competition, for example, while transfor-mational technology can make old products, services or organisational processes redundant.Witness themass closure of high street banking facilities (refer to Mini-case 1.1).

Over 600 bank branches closed in Britain alone inthe financial year to April 2017. Over-the-countertransactions have declined in the United Kingdomby over a third in the previous five years, whileonline and mobile transactions had quadrupledduring the same time period. Increasingly, cashtransactions are being replaced by card or othertechnologies. Customer acceptance of the con-venience and security of remote banking is grow-ing, particularly among the young. But there are

consequences for employees of banks and forsome customers. Alongside these changes, thehitherto often prised and relatively well rewardedjob of ‘working fora bank’ is evaporating. For somethe nature of the job is changing as new rolesrequire remote, not face-to-face, customer serviceskills. Alongside these changes has been the rapidgrowth of call centres, often located overseas.Many people, it is argued, have been left behind inthese changes, which continue apace.

MINI-CASE 1.1The closure of high street banks

6 Chapter 1 Organisational behaviour in an international context

Everyone in the workplace faces change, sometimes requiring quite dramatic personal,group or organisational responses. People are profoundly affected by change. It is not sur-prising, therefore, that change impacts all aspects of the study and understanding of organ-isational behaviour. One cannot fully understand management or leadership without anappreciation of the changing external and internal context inwhich people operate. In fact,leadership is often defined as the ability to achieve significant and sustainable change in anorganisation.

Similarly, power, politics and conflict in organisations both influence and are influencedby changes in organisations and their objectives and ways of working. Being aware ofchange and its unpredictability is an essential requirement for all who wish to understandbehaviour in organisations.

Conflict and communicationCommunication is the process of sending, receiving and understandinginformation. It soundsquite simple, but communication problems are frequently noted by employees as a key organ-isational weakness. It is all too often a source of frustration, conflict and uncertainty for some.It is doubtful, in fact, that anymedium or large organisation actually satisfies allof its employ-ees’, including managers’, needs for communication. People differ immensely; so do theirneeds for communication and the timing and forms inwhich it takes place.

Communications are interpreted by the receiver (and the sender) such that even ‘simple’messages are often understood or interpreted in different ways by different people. Com-munication becomes not merely transference of information by an exchange of sharedmeaning. The former is often difficult in large complex organisations, while the latter isparticularly challenging. Even in one-to-one communications between people, we know weare often left saying ‘What did she mean by that?’ or ‘Slow down, I can’t take all that in atonce.’ In an organisation where communicators compete to get their message across,achieving shared meaning is often an unobtainable ideal. Communications is as muchabout active listening and understanding as it is about sending information. Even our bodylanguage communicates – often not the sort of message we intend the world to receive.

The process of communications in an organisation is closely related to employee moti-vation, to team and group work, management and leadership and the structure of organi-sations and to the political processes of organisation. Hence, it is a fundamental aspect oforganisational behaviour, and managers and leaders at all levels in organisations need tounderstand communication processes in order to achieve sustained success.

Just as the intricacies of communication are often a mystery, particularly to those withlittle organisational life experience, so too is organisational conflict. Yet conflict is a natu-ral part of organisational life, both in a macro sense with potential for fundamental differ-ence between, for example, ‘workers’ and ‘management’ and in the minutiae of individual,group and department dealings which take place daily in all organisations. Chapter 8 refersto radicalism and pluralism, two perspectives which can be taken when viewing organisa-tions. In both approaches the acceptance of difference between individuals and groupswithin organisations is accepted as commonplace and inevitable. Differences in personalobjectives, resource levels, gender, ethnic background or culture and motivation levels canall create conflict. In reality, a unity of interest within organisations simply does not exist;people want different things from their workplace.

Introduction 7

Overview of the textIn order to make the study of OB manageable, we have subdivided the broad subject intoeight further chapters:

• Organisational theory – Chapter 2 outlines the development of thinking aboutorganisations and management. It recognises that the way we work, think and behave inorganisations is, in part, a product of organisational norms and accepted ways oforganising. It also recognises thatmajor changes are takingplace in themodern,globalised,world. Knowledge of organisation and management theory gives you a particular insightinto the development of modern organisations. We explore contemporary views andresearch and look at organisations fromvarious perspectives. The impact of globalisation,new evolving labour market conditions (e.g. the growth of the gig economy andboundaryless careers) and ICT are changing organisation and working norms; weillustrate this in text and cases written by young people in the modernworkplace.

• Consideration of the individual – Chapter 3 focuses upon each person’s unique set ofattitudes, perceptions and values which influence their personality and behaviour. Thispersonality set affects the way people work, how they communicate with others andtheir propensity to cooperate in teams and be motivated andmanaged. Hence, the chap-ter looks at personality and perception, values and attitudes, learning and decisionmak-ing. It also explores how cultural and national norms and behaviours can impactorganisational behaviour.

• The examination of human motivation – Chapter 4 remains largely, but not exclusively,at the level of the individual. This is a critically important aspect of OB and of manage-ment theory and practice. The chapter explores some of the extensive and wide-rangingtheoretical work and empirical research findings which inform our understanding ofhow people are motivated, and indeed demotivated, in the workplace. It also looks atcultural and international differences in motivating factors. We also explore how gener-ational changes from Baby Boomer through Generations X and Y to Z are likely to dif-fer in their values, attitudes, behaviours and motivational needs.

• Groups and teams –Chapter 5 begins with the definitional differences between groups andteams and explores the various personality types that are thought to make up a successfulteam.We explore the process of group formation and the nature, causes and consequencesof inter- and intra-group conflict and communications, partly using real-world mini-cases,in addition to the characteristics of successful group work. Different cultures have differ-ent norms, some being far more collectivist in their orientation, others more individualist.We explore this dimension and reflect on its significance for organisational behaviour.

• Exploring the nature of management and of leadership – Chapter 6 discusses some ofthe principal schools of thought in this regard and examines contemporary thinking,particularly about leadership. The chapter also seeks to determine the qualities of suc-cessful leadership and explores the intrinsically behavioural nature of both leadershipand followership. We look at how national culture can impact matters like the powerdistance between individuals and its impact on leadership and management.

• Examining how organisations are structured and controlled – Chapter 7 discusses tradi-tional and new emerging developments in how organisations are structured, how

8 Chapter 1 Organisational behaviour in an international context

reporting arrangements play out and, increasingly, how the flexible organisation and‘flexible workforce’ is developing. We also explore newer forms – delayed, networkedand virtual organisations.

• Exploring the constant struggle for control in organisations – Chapter 8 investigatespower, politics and conflict. We look at powerlessness and empowerment, again in aninternational context.

• Focusing on the concept of organisational culture – Chapter 9 recognises how impor-tant the study and awareness of culture at all levels has become. It is widely believed thatthe culture of a company may have a major bearing on its attempts to change, on boththe process and the outcome of managerial decision making, on its competitiveness andupon its performance.

In the interests of focus and brevity, this text does not provide detailed coverage of allthe topics that are often considered within the ‘territory’ or remit of organisational behav-iour. These include aspects of human resource management (HRM), organisational devel-opment and stress, for example. Certainly, OB underpins and informs these functionalareas, and knowledge of OB is a useful, if not essential, prerequisite for any HR managerand all managers who, as part of their line responsibilities, work with people. It is, how-ever, not essential for an OB text to discuss the various HR considerations which are wellcovered elsewhere. These topics are important yet would, if covered in appropriate detail,necessitate a far weightier and less accessible tome than this.

Case studies and examples

Each chapter in the text contains a number of mini-cases which serve to illustrate a particu-lar aspect of the material covered. They aim to provide an insight into a ‘real-life’ scenarioand are worthy of further discussion. Many of these mini-cases are inspired by actual peo-ple and real events, some disguised for reasons of confidentiality.

Some of the scenarios can be critically analysed or explored from a number of perspec-tives. Some encourage a management problem-solving approach, whereas others invitefresh insights in order to better understand organisational behaviour. Some reflect on thepersonalised, but probably not entirely unique, experience of an individual.

ILLUSTRATION IN FILM

Throughout the text, a number of inserts focus on the learning which can beachievedby viewing and discussing an excerpt from a well-known film, usually a ‘classic’ – manyclassic films have a good story to tell; that is why they are classics – if not contemporaryor television programme in the context of the theory being discussed. Some filmsandTV programmes contain a wealth of learning experiences of relevance to humanbehaviour, individually or collectively, in organisations. Ideally, in each caseyou or yourtutor would access thefilm or programme in question and incorporate it into the learn-ing experience. The lessons areoften more memorable than the words available tous!

Introduction 9

Figure 1.1 illustrates the structure of this text. It indicates the main topic of each chap-ter, plus the four themes that are integrated throughout and the three levels of analysis:individual, group and organisation. The whole is enclosed in a circle, illustrating the globalcontext in which organisations operate, reminding you of the significance of context in thestudy and appreciation of OB. The relentless trend towards globalisation, driven by tech-nology in the fields of communication and information dissemination, together with therapid pace of socio-political changes, are creating the highly dynamic global environmentwithin which organisations now have to operate. Change in organisations can be said to be

Figure 1.1 The structure of this text

GLOBA L CULTURAL CONTEXT

GLOBALCULTURAL CONTEXT

GLOBAL

CULT

URAL

CONTEXT

Organisational behaviour andthe international context

Chapter 1

CONFLIC

T

CHANGE

COMMUNIC

ATIO

NS

GROUP

DIVERSITY

Groups and teamsChapter 5

INDIVIDUAL

Theory, practice andgenerational change

Chapter 4

Perspectives on individualbehaviourChapter 3

ORGANISATION

Management and leadershipChapter 6

Organisational power, politics andconflict

Chapter 8

From classical theory to thegig economyChapter 2

Organisational structureChapter 7

Organisational culture: the impacton organisational behaviour

Chapter 9