Organizational behaviour an experimental approach

Psychological Contract - Defined An individual’s beliefs, shaped by the organization, regarding the terms and conditions of a reciprocal exchange agreement between individuals and

Chapter 1

The Psychological

Contract

and Commitment

 Define the psychological contract and discuss

the obligations of the contract currently in place

 Explain the importance of the psychological

contract and what happens when it is violated

 Explain the benefits of committed employees

and what employers can do to foster

commitment

Objectives

…Objectives

 Describe external influences that affect

workplace expectations

 Explain the self-fulfilling prophecy and how

managers can apply this concept

 Explain the pinch model

 Make a psychological contract with your

professor

Mental Maps - Defined

Our images, assumptions,

and stories about every

aspect of the world, which

determine what we see

and how we act

Psychological Contract -

Defined

An individual’s beliefs, shaped

by the organization, regarding

the terms and conditions of a

reciprocal exchange

agreement between individuals

and their organization

Social Exchange Theory -

Defined

 People enter into relationships in which not

only economic, but also social obligations play a role

 People are most comfortable when the

exchange is balanced

Psychological Contract

Importance of Psychological

Contracts

 Link individuals to organizations

 Reflect the trust that is a fundamental feature of

the employment relationship

 Motivate individuals to fulfill their obligations (if

they believe the other party will do the same)

Willing but unable (inability

to fulfill contract) Able but unwilling (reneging)

Consequences of Broken Contracts

 Outrage, shock, resentment, anger

 Decreased trust and good faith

 Decreased job satisfaction

 Decreased productivity

 Decreased attendance

 Turnover

Causes

Realistic Job Previews -

Defined

RJPs are a recruitment technique that

give accurate information about job

duties, and especially about the major

sources of job satisfaction and

dissatisfaction prior to

organizational entry

Advantages of Committed

Employees

 Higher performance

 Higher job satisfaction

 Adapt better to unforeseen circumstances

 Better attendance records

 Stay with the company longer

 More organizational citizenship behavior

Organizational Citizenship -

Defined

OCB refers to discretionary contributions that

are organizationally related, but are neither

explicitly required nor contractually rewarded by

the organization, yet contribute to its effective

functioning

Workplace Incivility - Defined

Low intensity deviant behavior that violates

workplace norms for mutual respect; it may

or may not be intended to harm the target

 Reengineering

 Downsizing

 Mergers & acquisitions

Job-Related Changes Impacting

 Fewer full-time jobs and core employees

 Relatively low union representation

 Less job security

External Factors that Impact

Psychological Contracts

 Demographics

 Swings in employment

 Nomadic nature of the workforce

 Changing complexion of the workforce

 Changing value trends

A Nomadic Work Force

 13 different jobs in the career of the average

high school or college graduate

 10.2 different jobs from ages 18-38

 Only a third (31%) of workers

25 and up have worked 10 years

with the same employer

Value Changes Affecting the

Workplace

Shifting breadwinner and parenting

roles

What else?

Generations at Work

 Baby Boomers (1946-1964) - self-fulfillment at work;

fought against hierarchical authority; demand a voice in

work decisions; work is central to lives; significant loyalty

to corporate employers

 Gen X (1965-1976) - Work less central and family;

nonwork activities more important; identity less tied to

work; less expectations of organizations and career

stability

 Gen Y (1976-2001) – prefer fun environment and

teamwork; flexible work hours; looking for work with

significance; idealistic

Cultural Differences in Psychological Contracts

 Promises

 Intention can equal follow through

 Uncertainty/fate can reduce binding aspect

Self-Fulfilling Prophecy -

Defined

People perform in accordance with a

rater’s expectations of them

The Pinch Model

What’s Your Decision?

Which decision have you made about your

workplace? About this course?

Join

Participate

How do you get employees to participate?

Responses to Violation

Constructive Destructive

Active Voice Neglect/Destruction

Passive Loyalty/Silence Exit

Chapter 2

Theories

of Managing People

Objectives

Describe seven theories of

management and their “ideal” manager

Explain the competing values

framework and what constitutes a master manager

 Explain why it’s important to identify

your personal theories about management and organizational behavior

…Objectives

Describe your personal theory of

management

Identify the managerial skills you need

in today’s global business environment

Scientific Management

Small standardized jobs

Matched to the capabilities of trained workers who received wage incentives

Efficient division of labor

Taylor

Fayol

Administrative Theory

Bureaucracy as a solution to nepotism,

favoritism and unprofessional behavior

Weber

Human Relations School

 Acknowledged the effect of the informal social

system with its norms and individual attitudes and feelings on organizational functioning

 Underlined the importance of employee

morale and participation

Hawthorne Studies

Assumptions about

Human Nature

Theory X

Inherently lazy Dislike responsibility Prefer to be led

Theory Y

Responsible Motivated to work hard Capable of self-direction

Decision-Making School

 Described organizations as social systems

based on individual decisions

 Contributed the idea of bounded rationality

 Managers could control employee behavior

by controlling the premises of decision making

March &

Contingency Approach

There is no one best way to manage in

every situation

Managers must find the appropriate

method to match a given situation

“It depends”

Successful Organizations

Shared Values

Systems Structure

Style

Strategy

FIT

Open Systems Theory

 Organizations and all subdivisions take in and

transform resources into a service / product which is purchased / utilized by a larger system

 All parts are interdependent (including the larger

environment in which the organization is embedded)

Competing Values Framework

 Master managers balance the competing values of four

different models based on the situation

 Too much emphasis on any one model will lead to

…Competing Values Framework

Rational Goal

Internal Process

Human Relations

Open Systems

Criteria of

effectiveness

Productivity, profit

Stability, continuity

Commitment, cohesion, morale

Adaptability, external support

Means – end

theory

Clear direction leads to productive outcomes

Routinization leads to stability

Involvement results in commitment

Continual adaptation, lead to innovation acquiring,

maintaining external resources

Emphasis Goal

clarification, rational analysis, action taking

Defining responsibility, measurement, documentation

Participation, conflict

resolution, consensus building

Political adaptation, creative problem solving, innovation

Monitor and coordinator

Mentor and facilitator

Innovator and broker

The Positive and Negative

Mental Maps

 The first step in managing the paradoxes of

organizational effectiveness is understanding one’s own theories of management

 Our theories or mental maps

determine what we see when

we look at situations and

determine the roles we perform

What Do Great Managers Do?

 Select for talent

 Not just for experience, intelligence and

determination

 Define outcomes when setting expectations

 Not the steps to get to the goals

Buckingham

& Coffman

…What Do Great Managers

Do?

Focus on strengths when motivating

Not on fixing weaknesses

Find the right job that fits the individual

Not just the next rung on the

promotion ladder

What Do Managers Do?

Networking:

Socializing, dealing with outsiders, hand- ling organizational politics

Traditional Management:

Planning, budgeting, decision making

Human Resource Development:

Motivating, reinforcing, training, developing

employees

Communication:

Paperwork, passing on information

Luthans

et al

What Constitutes

an Effective Manager?

Depends on the measure of effectiveness

used and the outcomes to be achieved

Networking

Traditional Management

Human Resource Development

Communication

Human Resource Development

Communication

Effectiveness Criteria:

Highest Performers (Results and

Satisfied, Committed Employees)

How Do They Spend Their Time?

Networking

Traditional Management

Human Resource Development

Communication

Human Resource Development

Communication

Balanced use

of time

Lessons for Today’s

Managers

 Learn to analyze complex situations using a variety of models or theories because no one theory is sufficient

 Develop a broad repertoire of behaviors and knowledge about when to use them

 Develop the self-control and self-discipline to

go beyond your natural style and adapt to a rapidly changing environment

Chapter 3

Individual

and Organizational

Learning

Objectives

Describe the model of adult learning

Identify individual learning styles and their characteristics

Distinguish between adaptive and

generative learning

Describe the characteristics of a learning

organization

Why Is Continuous Learning

Important?

Rapidly changing business environments require that a company’s managers and employees learn faster than their

competitors

Hence, continuous learning is a necessity for both individuals and

organizations

Learning Organization -

Defined

A learning organization is skilled at

creating, acquiring, and transferring

knowledge and at modifying its behavior

to reflect new knowledge and insights

Characteristics of Learning Organizations

Systematic problem solving

Experimentation

Learning from past experience

Learning from others

Transferring knowledge

Adult Learning

Based on reciprocity and experience

Has a problem-solving orientation

Is individualized and self-directed

Integrates learning and living

Needs to be applied

The Learning Process

Kolb’s Experiential Learning

Model

Reflective Observation (discussion; debriefing)

Concrete Experience (class activities)

Abstract Conceptualization

Learning-Style Inventory (LSI)

Concrete Experience (CE)

Reflective Observation (RO)

Abstract Conceptualization (AC)

Active Experimentation (AE)

Learning-Style Type Grid

Basic Strengths of Learning Styles

ACCOMODATING Getting things done Leading Taking risks Initiating Being adaptable Practical

DIVERGING Being imaginative Understanding people Recognizing problems Brainstorming Being open-minded

CONVERGING Solving problems Making decisions Reasoning deductively Defining problems

Being logical

ACCOMODATING Planning

Creating models Defining problems Developing theories Being patient

CE

RO

AE

What Happens in an Organization When There Are

Too Many Divergers?

Lack of ideas

Inability to recognize opportunities and problems

What Happens in an Organization When There Are

Too Many Assimilators?

 Castles in the air

 No practical

applications

Too Few Assimilators?

 Unable to learn from mistakes

 No sound basis for work

 No systematic approach

What Happens in an Organization When There Are

Too Many Convergers?

Lack of focus

No testing of ideas

or theories

Scattered thoughts

What Happens in an Organization When There Are

Too Many Accommodators?

Trivial

improvements

Meaningless activity

Too Few Accommodators?

Work is not completed on time

Impractical plans

Work is not directed

goal-Argyris’s Theory Types

“Walking the talk”

Defensive routines prevent people from

questioning the validity of the assumptions

underlying these theories

Adaptive Learning

Also called single-loop learning

Has a coping orientation

Focus on solving problems or making

incremental improvements

Refine the prevailing mental model

…Adaptive Learning

Current method

Incrementally improve current method

Need improvement?

YES MEASURE

Continue with current method

NO

Generative Learning

Also called double-loop learning

Has a creative orientation

Surface and review underlying

assumptions about the prevailing mental model

Involves continuous experimentation and

feedback

…Generative Learning

Ongoing analysis of how organizations define and

solve problems

Parallel Learning Structures -

Defined

Part of the organization that operates

alongside the normal bureaucracy with the purpose of increasing organizational

learning by creating and/or implementing new thoughts and behaviors

Components of Parallel

Learning Structures

A steering committee and a number of

small groups with norms and operating procedures

Aim is to promote a climate conducive

to innovation, learning, and group problem solving that is not possible within the larger bureaucracy

Chapter 4

Decoding Human Behavior

and Personality

Objectives

Describe the major influences on

individual behavior in organizations

Discuss the Big 5 Model of personality

and summarize the research on the model

Identify the four dimensions of the

Myers–Briggs Type Indicator

…Objectives

Discuss the interactionist approaches to

personality and use them to discern the roots of individual behavior

 Diagnose the causes of a “difficult”

employee’s behavior and identify appropriate responses

What Influences Behavior?

Personality - Defined

Personality is defined as an individual’s

relatively stable characteristic patterns of

thought, emotion, and behavior, and the

psychological mechanisms that support

and drive those patterns

location

AND

Trait Models/Theories

Emphasize components of personality

Highlight importance of individual

characteristics in determining behavior

De-emphasize role of situation or

environment

The Big 5 Model

Also called Five-Factor Model

 Personality = “OCEAN” dimensions

…The Big 5 Model

Openness to experience

 Seeking new and varied experiences

 Aware of one’s thoughts, feelings and impulses

…The Big 5 Model

The Myers–Briggs Type

Indicator (MBTI)

Key personality components:

 Extroversion/Introversion (E/I) – Social interaction

 Sensing/Intuiting (S/I) – Collection of information

 Thinking/Feeling (T/F) – Evaluation of information

 Judging/Perceiving (J/P) – Decision making

Based

on Jung

Limited research evidence

Other Common Personality

Traits

Self-esteem – degree of regard people

have for themselves; high vs low

Machiavellianism – “the end justifies the

means,” manipulation, emotionally distant

Locus of control – inner-oriented and in

control of one’s destiny versus

outer-oriented at the mercy of fate or luck