Organizational theory and behavior

What is an Organisation?

A coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

manager

someone who achieves organizational goals by coordinating and supervising the work of others.

What is Organisational Behaviour (OB)?

field of study concerned with understanding behaviors and attitudes people exhibit in an organization

- A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations to improve organizational effectiveness.

focus of OB

It is an applied behavioral science that emphasizes employment-related concerns such as
- jobs, work, absenteeism, productivity, and management

levels of OB analysis

- Individual level: Focuses on individual differences, learning, perception, motivation, and personality.



- Group/Team level: Examines interaction, team dynamics, leadership, power, and conflict.


- Organizational level: Addresses structure, design, culture, and how the organization interacts with its environment.

Contributing Disciplines to OB

- Psychology: Contributes to understanding individual behavior, including learning, perception, personality, and motivation.


- Sociology: Enhances knowledge of group dynamics, formal organization theory, structure, and culture.


- Social Psychology: Focuses on the influence people have on one another and how to implement change.

micro levels of OB analysis

- specific characteristics or things that cause an effect on behavior
- Individual level and group/team level
ex for individuals- financial, personality, motivators

macro levels of OB analysis

Broader scope that affects the organization as a whole

• organizational level
  ex- culture, value, structure

relationship between OB and management

- the relationship between organisational behaviour and management (planning organising coordinating controlling leading) all the resources in the organisation including people

• While Organizational Theory explains how organizations are designed, Organizational Behavior explains how people behave within them, and Management integrates both to ensure efficiency, productivity, and employee satisfaction.

Classical Organisation Theory

Scientific Management (Frederick W. Taylor): focuses on maximising efficiency by applying scientific methods to analyse workflows. It implied finding the best way to do tasks to maximise productivity.

Administrative Theory (Henri Fayol): Focused on the process of management or managerial functions and general principles of administration.


Bureaucracy (Max Weber): hierarchy governed by clearly defined rules, impersonal relationships, and selection based on technical qualifications rather than "who you know."

Theory x and y(Dougls Mcgregor):behavioral theories that describe two contrasting views managers hold about employees

Bureaucracy (Max Weber):

• Describes an organisation designed for maximum rationality, efficiency and stability. characteristics:

• Formal hierarchy structure- each level of business controls the level below it or controlled by the level above it

• Formal rules and regulations- standardised rules to guide decisions and actions

• Division of labour- work/tasks are broken into simple specialised tasks based on competence

• Career oriented- workers are chosen based on expertise and skills not personal connections

• Impersonality- rules apply to all in decisions are based on firms goals not personal relations or desires

• Formal records- all actions, decisions and rules are written down

Scientific Management (Frederick W. Taylor):

focuses on maximising efficiency by applying scientific methods to analyse workflows. It implied finding the best way to do tasks to maximise productivity. Principles:

• Science not rule of thumb- analysing work scientifically and not relying on habit or intuition

• Scientific selection and training-select best workers who are specific strengths needed to do the job efficiently and train them

• Cooperation- management and workers must cooperate to ensure work is being done but power dynamics still remain

• Division of responsibility-managers handle planning design and supervision of workers twin ensure tasks are being completed

Neo-Classical and Modern Theories

Human Relations Movement (Elton Mayo): Originated from the Hawthorne Experiments, leading to the discovery of the Informal Organization—people interacting outside formal structures to meet personal needs.


Systems Approach: Views an organization as an Open System that interacts with its environment, taking in inputs (resources) and transforming them into outputs (goods/services) while receiving feedback.


Contingency Approach: Suggests there is no "one best way" to manage; the most appropriate action depends on the specific situation or circumstances

Personality

Set of psychological characteristics that influence behaviour and how you interact with society. It can be influenced with socialisation.

Perception

The process by which individuals organize and interpret information to give meaning to their environment

• Use five senses to make perception and meaning of information

7 basic features of a managers job

1. Managing employee performance- supervising
2. Guiding subordinates - teaching and training
3. Representing one's staff-advocacy
4. Managing team performance-facilitation
5. Allocating resources- decision making
6. Coordinating independent group groups- collaboration
7. Monitoring business environment-scanning for adaptations

past and present challenges of managers

PAST:

• power dynamics/superiority

• hire skilled workers and reduce training costs

• one way communication (top down)

• centralized decision making

• resistance to change

PRESENT:

• develop workers and support teamwork

• continuos training

• two way comms

• open to change

• based on interpersonal skills
  

reasons for this change is due to changing workforce and customer expectations

importance of interpersonal skills

• need for strong comms and leadership skills

• improve workers morale, reducing work stress and lowers employee turnover

• improve company performance

mintzberg managerial roles

interpersonal roles

informational role

decisional roles

Interpersonal Roles

1. Figurehead: Represents the organization at ceremonial duties.

2. Leader: Motivate and manage team members.

3. Liaison: Maintains a network of contacts outside the organization.

informational roles

1. Monitor: Collects information from the environment to understand the organization.

2. Disseminator: Shares necessary information within the organization.

3. Spokesperson: Represents the organization to the external environment.

Decisional Roles

1. Entrepreneur: Initiates and encourages change and innovation.

2. Disturbance Handler: Manages conflicts and crises.

3. Resource Allocator: Decides where to allocate resources effectively.

4. Negotiator: Represents the organization in negotiations.

management skills

technical- apply specialized knowledge and expertise

human- ability to work well , understand, motivate others in groups and individually

conceptual- mental ability to analyze and diagnose complex situations and choose the best course of action

classic organizational theories

• theory x and theory y- Douglas mcgregor

• administrative theory/ management- henri fayol

• max weber theory of bureaucracy

• Scientific management theory- Frederick Taylor

theory x

• authoritarian style of management

• one way comms- top down

• managers believe workers are lazy and unmotivated

  • believe they are only there for job security

  • mangers monitor workers closely

theory y

• managers believe workers are motivated to work and enjoy working

• managers expect creativity and innovation

• managers retain workers by giving them stimulating work

administrative theory/managemtn by Henri fayol

• how organization should be managed

• division of work

  • break work into small tasks (done by skilled/qualified workers)

• authority and responsibility

  • right to do something and be accountable

    • discipline- consequences for actions that affect everyone including managers

• unity of command

  • one boss, limiting confusion of who to report to

• subordination of individual interest

  • workers interprets dont matter

• centralization and decentralization

  • decision making made by top level or by different branches in the business

• remuneration

  • pay enough to keep you working there

• scalar chain

  • clear chain of command

• order

  • things done at right time and place

• equity

  • equal rights for all workers

• stability of personnel

  • ensure there is employee retention

• initiative

  • allow workers to be creative in how to do something

• unity of direction

  • all branches working toward the same goal

• esprit de corps- team work

Values

Derived from socialisation. the core beliefs, principles, and standards that guide employee behavior, decision-making, and corporate culture

Example: right or wrong?, moral or immoral., good or bad

Terminal values

Something you achieve that makes you completely satisfied. You don't feel like anything is missing.

• Achievement

• Social status

• Wisdom, peace, happiness, freedom

• Beauty

• Healthy working environment

Instrumental values

What gets you to those terminal values in terms of actions that you do?

• Competency

• Cleanliness

• Courage

• Self-control

• Independence

• Obedience

• Politeness

• Responsibility

• Ambition

• Creativity

Individual differences

Aspects of your personality that helps predict behaviour

Control of locus

an employee's belief regarding whether their work outcomes (successes or failures) result from their own actions (internal) or from external forces like luck, management, or fate

External control of locus

the belief that workplace outcomes—such as success, failure, promotions, or project results—are determined by external forces like luck, fate, powerful others, or the environment rather than one's own actions

• Risk aversion

• Not motivated

• Stress stressed

Internal control of Lucas

the belief that one’s own actions, efforts, and abilities directly determine work outcomes, such as success, failure, promotions, or project results

• Self motivated

• Risk takers

• Ambitious

Big five personality traits

1. Openness: Creativity, willingness to learn.

2. Conscientiousness: Reliability, responsibility, discipline

3. Extraversion: Sociability, energy, need for external stimulation

4. Agreeableness: Cooperation, friendliness.

5. Neuroticism: Emotional stability vs. anxiety.

Importance in Organizations:

• Hiring: Matching roles to personality.

• Teamwork: Balancing different personalities.

• Leadership: Personality affects management style.

Machiavelli and personality theory (1532)

• Ends justify the means

• Do anything to achieve objectives even if it causes harm to others example- companies that are like monopoly

Narcissism characteristics

• Self-centred

• Controlling

• Selfish

• No accountability – otherisms, blame others

Organisation fit

• Person family fit

• Person job fit

  Person group fit

• Person supervisor fit

• Person environment fit

• Organisation fit

Person family fit

• Are you in control of your emotions? Do you bring your home stress to work and your work stress?

• refers to how well the demands of the organization allow the individual to fulfill their roles within their family.

Person job fit

it focuses on the match between a person’s Knowledge, Skills, and Abilities and the requirements of a specific task.

Person group fit

it’s about how your working style and interpersonal skills mesh with the group’s dynamics.

Person supervisor fit

relationship between an employee and their manager. Can manager and employee get along

Person environment fit

Intrinsic values- self motivated to achieve things

• Do you enjoy the job?, personal targets.

Extrinsic values- tangible and external

• Promotion rewards

Person organisation fit

Is the worker able to fit in and follow the culture of the organisation?

Job satisfaction

Positive or negative feelings workers have about their job. How much they like or dislike their job.

It is influenced by:

• The Work Itself: Training, variety, and independence.

• Social Context: Interaction with co-workers and supervisors.

• Pay: Important for lower-level needs, but its influence diminishes once a comfortable living standard is reached.

• recognition and career growth

• work life balance

How can managers monitor and evaluate the job satisfaction of their workers?

• Suggestion box

• Survey/observation

• interviews

• Gossip/informal channels of communication

  • Single, probability, cluster

• Discussions

How do you improve job satisfaction?

Increase salaries, fringe benefits, recognition, offer meaningful work and autonomy

Discrepancy theory

What you expected or thought you would achieve does not match the reality of the situation creating a discrepancy

Perception process

• selection- stimuli receipt

  • memory ,proximity, similarity, difference

• Organisation- processing stimulus

  • priority

• Interpretation- assigning meaning

Theory of attribution

• study of how people perceive and interpret the reasons behind success and failure

• Three factors to consider:

  • Locus

  • Controllability

  • Stability

Halo effect

Bias were an initial positive or negative impression of a person causes you to assume other unrelated positive or negative traits

Example of positive:

• Observer- known trait

• Problem solver- assumed unrelated trait

Maslow’s Hierarchy of Needs

• Physiological Needs: Food, water, shelter.

• Safety Needs: Security, stability, health.

• Social Needs: Relationships, friendship, belonging.

• Esteem Needs: Respect, recognition, achievement.

• Self-Actualization: Fulfillment, personal growth, creativity.

open system

They take inputs (raw materials, information, human resources) from the environment, transform them through internal processes, and release outputs (products, services) back into the environment. They rely on constant feedback to survive.

• The boundaries are permeable meaning that they can be changed

• Observe what is happening in the environment and adapt to it

• Affected by outcomes-need profit

• Many ways to do something

closed systems

Focuses only on internal needs fulfillment (ignores environment).

• Boundaries are impermeable

• Do not care for external environment

• Affect affected by outcomes-need profit

• Only have one way of doing something