Managing People in Organisations - Topic 2: Organisational Behaviour

The Nature and Study of Organisational Behaviour (OB)

Objectives

  • Define organisational behaviour.
  • Explain the goals and forces/elements of organizational behaviour.
  • Understand the evolution and fundamental concepts of organisational behaviour.
  • Understand the major approaches of organisational behaviour.
  • Discuss how organisational behaviour responds to globalization, diversification, and technological advancement.

Organisation

  • Defined as a group of people working together to achieve a common goal.
  • Understanding of human psychology is key to organizational success.

Organisational Behaviour (OB)

  • A field of study that seeks to understand the impact of individuals, groups, and structures on the behaviour of employees within an organisation.
  • Focuses on what people do within the organisation and how their behaviour and actions affect the performance of an organisation.
  • It is necessary to understand the interrelationships of different variables that constitute an organisation, such as technology, structure, tasks, external environment etc.

Study of OB considers:

  • The behaviour of people.
  • The process of management.
  • Organisational processes.
  • Interaction with the external environment.

Why OB?

  • Development of soft (interpersonal) skills.
  • Personal growth via insight into others.
  • Enhancement of individual and organizational effectiveness.
  • Sharpening and refining common sense (though common sense is not always common).

Metaphors of Organisations

  • Machines: Efficient operation in a routine, reliable, and predictable way.
  • Organisms: Can easily adapt to change.
  • Brains: Inventive and rational.
  • Cultures: Complex system of characteristics, ideologies, values, etc.
  • Political Systems: Authority, power, superior-subordinate relationships, and conflicting interests.
  • Psychic Prisons: Reality and illusion (dwelling in the past).

Functions of Management

  • Planning: Mission, vision, strategizing, goals, objectives.
  • Organising: Organisational design, culture, social network.
  • Staffing: HR processes.
  • Leading: Leadership, decision making, communications, teams, groups, motivation.
  • Controlling: Systems/processes, Strategic HR.
  • Monitoring: Continuous data collection, analysis, reporting.

Behavioural Sciences Contributing to OB

  • Psychology
  • Sociology
  • Anthropology
  • Social Psychology
  • Political Science
Explanation of Fields
  • Psychology: A science field focusing on the human mind, measuring and explaining behavioural characteristics.
  • Sociology: Focuses on group behaviour in a social setting and how that group interacts.
  • Anthropology: Field which focuses on people and their activities in relation to societal, cultural, and environmental influences.
  • Social Psychology: A combination of psychology and sociology with more emphasis on how people influence each other in a social setting.
  • Political Science: Focuses on behaviours of individuals and groups in a political setting.

Levels of OB

  • Individual
  • Group
  • Organization
Organisational
  • Diversity
  • Culture
  • Strategy
  • Change
  • Structure
Group
  • Teams
  • Conflict
  • Leadership
  • Power and Politics
  • Communication
Individual
  • Personality
  • Emotions
  • Attitudes
  • Perceptions
  • Motivation
  • Decision Making
  • Creativity

Interpersonal Skills

  • Vital to organisational management.
  • Managers with good interpersonal skills are able to attract and retain high-performing employees.
  • Critical for creating a pleasant workplace.
Examples of Interpersonal Skills
  • Communication Skills
  • Teamwork
  • Relationship Management
  • Staying Positive
  • Self-Awareness
  • Emotional Intelligence
  • Conflict Resolution
  • Questioning
  • Problem-Solving Skills
  • Decision-Making Skills

Psychological Contract

  • Defined as individual beliefs or perceptions regarding the terms of exchange between the organisation and the employee.
  • Unlike employment contract, psychological contract is not in written form.
  • It is about mutual expectations and satisfaction of needs arising from employee-organisational relationship.
  • An important feature of OB.

Individual Expectations of the Organisation

  • Provide safe and hygienic working conditions.
  • Make every reasonable effort to provide job security.
  • Attempt to provide challenging and satisfying jobs and reduce alienating aspects of work.
  • Adopt equitable human resource management policies and procedures.
  • Respect the role of trade union officials and staff representatives.
  • Consult fully with staff and allow genuine participation in decisions which affect them.
  • Implement best practice in equal opportunity policies and procedures.
  • Reward all staff fairly according to their contribution and performance.
  • Provide reasonable opportunities for personal development and career progression.
  • Treat members of staff with respect.
  • Demonstrate an understanding and considerate attitude towards personal problems of staff.

Organisational Expectations of the Individual

  • Uphold the ideology of the organisation and the corporate image.
  • Work diligently in pursuit of organisational objectives.
  • Adhere to the rules, policies, and procedures of the organisation.
  • Respect the reasonable authority of senior members of staff.
  • Not take advantage of goodwill shown by management.
  • Be responsive to leadership influence.
  • Demonstrate loyalty and not betray positions of trust.
  • Maintain harmonious relationships with work colleagues.
  • Not abuse organisational facilities such as email or internet access.
  • Observe reasonable and acceptable standards of dress and appearance.
  • Show respect and consideration to customers and suppliers.

Opportunities and Challenges

  • Economic Factors
  • Workforce Diversity
  • Customer Service
  • Globalization
  • People Skills
  • Organization
  • Innovation and Change
  • Sustainability
More Details on Opportunities and Challenges
  • Responding to economic pressures
  • The ethical advantage
  • Responding to globalization (increased foreign assignment, diversity, overseeing movement of jobs to countries with low-cost labor)
  • Changing demographics
  • Coping with changes
  • Stimulating innovation and change
  • Helping employees balance work-life conflicts
  • Improving ethical behaviours (ethical dilemmas)

Tutorial Activities

Activity 1
  • Choose a sector from the list below and discuss how you would apply OB to an organization in that sector. In your discussion cover the following:
    • 8 things to be stipulated on the psychological contract
    • 5 interpersonal skills
    • How will you respond to current economic pressures
    • Improve ethical behaviours
    • Improve customer service
  • Sectors:
    • Financial
    • Retail
    • Mining
    • Education
    • Technology
Activity 2
  • Watch the video uploaded on teams 'Rude employees'
  • Pick the part of the video you are interested in and explain what is wrong, linking it to OB.
  • As the undercover boss what would you do to the employee (what action would you take).
  • To avoid the same behaviour being displayed by employees in the future what would you implement.