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INSTRUCTORS RESOURCE Contents

Chapter 1
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 6
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 2
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 7
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 3
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 8
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 4
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 9
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 5
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 10
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Content 2

Chapter 11
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 14
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 12
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 15
Learning Outcomes Key Teaching Points Teaching Notes Reference to PowerPoint Slides Classroom Activities Sample Test Questions Useful Internet Sites

Chapter 13
Learning Outcomes Key Teaching Points Teaching Notes

Sample Organizational Behaviour Syllabus and Scheme of Work 3

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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 CHAPTER AND TOPIC Introduction to Organizational Behaviour Perception and Learning Personality Emotion and Stress Attitude and Behaviour at Work Motivation Groups and Teams Communication Decision Making Power, Inuence and Politics Leadership Creativity, Innovation and Culture Organizational Structure and Design Managing Change and Organizational Development Human Resources Implications of Organizational Behaviour Revision Week Exam Week CHAPTER 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

INSTRUCTORS RESOURCE
CHAPTER

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 investigates 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? Mission and purpose: An organization exists due to its mission or purpose that asks the question Why are we here? To answer that question, organizations may develop several goals or objectives to translate the mission into some specic measurable performance measures. Ask the students what is the mission and purpose of the university/college they are studying in. 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. Strategic management is a planning process that involves the formulation and implementation of strategies to achieve the organizations long-term goals by analysing its internal and external environments.

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Plans can be developed at various levelsstrategic, 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. Organizational behaviour is a eld of study that investigates how individuals, groups and structures impact behaviours within organizations.

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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 1.2.3 1.2.4 1.2.5 1.2.6 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. OB is based on two assumptions: contingency perspective and three levels of analysis: individual, group and organizational. Contingency perspective: Personal and environmental factors that inuence 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 Analysis We can analyse organizational behaviour at three levels of analysis: individual, group and organization 1.3.1 Individual level: Factors that can inuence the behaviour of individualsperceptions, the way they learn, their personalities and abilities, the way they control their emotions and work stress, their attitudes at work and motivation Group level: The individuals 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 interpersonal conicts in a group setting. We also need skills and a good understanding of power, inuence, politics and leadership in order to be effective working in groups. 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 analyse 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.

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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 1.4.2 1.4.3 1.4.4 Egypt (2700 bc): Building of the pyramids, Pharaohs. Greek: The Greek mythologyIlliad and Homer, Alexander the Great. Roman: Expansion of the Roman empire, Julius Caesar. Chinese: The annals of war tactics from General Sun-tzu (400 bc), Three Kingdom.

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Islam: The 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 (17601840) in England and Europe. 1.4.8 Second Industrial Revolution (18501950) 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--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 approachwhether direct or indirectexists due to the sharing and borrowing from these disciplines. 1.5.1 Anthropology Studies the relationships between individuals and their environment. 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 inuence 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 development. 1.6 Current Challenges of Organizational Behaviour 1.6.1 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 Plans 1.1.1 Mission 1.1.2 Vision and Mission of Proton 1.1.3 Strategy 1.1.4 Plan 1.2 What is Organizational Behaviour (OB)? 1.3 Three Goals of Studying Organizational Behaviour 1.4 Basic Assumptions 1.4.1 Basic Assumptions: Contingency 1.4.2 Basic Assumptions: Three Levels of Analysis 1.5 The History of OB 1.5.1 Historical Evidences of Management and OB 1.6 Contributing Disciplines to OB 1.7 Current OB Challenges in Global Organizations 1.7.1 Globalization 1.7.2 Quality 1.7.3 Technology 1.7.4 Ethics 1.7.5 Diversity 1.7.6 Nation building Revision Questions

Classroom Activities
Individual Assignment First 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 documentaries about historical leaders or events such as: Building of the pyramids Creation of the United Nations Putting the rst man on the moon Scientic 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 mismanagement) 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 diversied 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 eld of organizational behaviour. 6 Discuss among the team members the searched material. In the process, you should be able to decide upon one topicrm up that topic, and adjust the scope of your coverage. 7 Ask a very simple research question that is answerable within the specied time. That is, you must have a clear objectivethe clearer you are, the easier it is to meet it. 8 This is an important 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 diversication Response of organizational behaviour on advancement in technology

Sample Test Questions


1 What is organizational behaviour? Organizational behaviour is a 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 inuence 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 individuals 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 conicts in a group setting. We also need skills and a good understanding of power, inuence, 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 maintains 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 relationships 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 inuence on OB such as understanding interpersonal relationships. Topics such as power, authority, 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 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 within 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 except A to control the behaviour that happens in organizations. B to identify and explain a phenomenon that occurs within an organization. C to achieve the organizations 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 inuence 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 conicts. 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 decision C Psychology social system and human interactions in social situations D Political Science understanding power, authority, and politics 5 Current challenges of OB include the following except: A Globalization doing business across borders B Quality quality standards C Technology keeping up with technology in business D 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
After reading this chapter, you will understand: What is perception and why is it important? The perceptual process. Factors inuencing perception. Common perceptual distortions. Specic 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, interpreting 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 Process The perceptual process is comprised of Stimuli Process Response whereby the process 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 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 Kelleys Attribution Theory Kelleys attribution theory involving distinctiveness, consistency and consensus is commonly used to explain an individuals behaviour through the attribution process. Consensus: Information regarding the extent to which other people behave in the same 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-fullling prophecy. We have to learn ways to overcome the perceptual biases. 2.4.1 Fundamental attribution error: The tendency to overestimate the inuence of internal factors and underestimate the inuence of external factors when making judgement about others behaviours. Self-serving bias: Tendency to assign success to internal factors. Selective perception: Focus on a particular aspect and ignoring others in an encounter with others or situation. Halo effect: Draw a general impression based on a single characteristic. Contrast effect: Compare the person you are evaluating with others who perform better or worse. Similar-to-me effect: Tendency to perceive others who are similar in a more positive light. Projection: To perceive or evaluate other individuals based on our assessment of ourselves. Stereotyping: Belief that all members of a specic group have similar characteristics and tend to behave in the same way. Self-fullling prophecy (Pygmalion effect): Ones expectation or beliefs determine their behaviour or performance.

2.4.2 2.4.3 2.4.4 2.4.5 2.4.6 2.4.7 2.4.8 2.4.9

2.5 Learning Learning 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 Learning The brain is integral in understanding learning. Individuals would benet in understanding 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 Styles Learning styles also affects the way we learn. One simple model is Kolbs learning cycle and learning styles. Kolbs Learning Styles Inventory is based on experiential learning theory (ELT) 2.8 Operant Conditioning Operant conditioning is the form of learning in which people associate the consequences of their action themselves. Behaviours with positive consequences are acquired whereas behaviour with negative consequences will be eliminated. Ask students 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 Learning Reinforcing 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 reinforcing learning given the outcomes or consequences: Positive reinforcement: People learn to perform behaviours that lead to the presentation 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. Ask students: Which of these strategies have they used personally? Why?

Teaching Notes

Reference to PowerPoint Slides


2.1 What is perception? 2.2 Kelleys Theory of Causal Attribution 2.3 Misperceptions and Biases 2.3.1 Fundamental Attribution Error 2.3.2 Self-serving Bias 2.3.3 Selective Perception 2.3.4 Halo Effect 2.3.5 Contrast Effect 2.3.6 Similar-to-me Effect 2.3.7 Projection 2.3.8 Stereotyping

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2.4 How to Overcome Misperceptions or Biases 2.5 Learning 2.6 The Brain and Learning 2.6.1 The Four Lobes 2.6.2 Left- and Right-Brain Learning Model 2.6.3 The 12 Brain/Mind Learning Principles 2.6.4 Brain-Based Learning 2.7 Learning Styles 2.7.1 Kolbs Learning Style 2.8 Operant Conditioning 2.9 Reinforcement Theory 2.9.1 Using Reinforcement 2.9.2 How to Use Reinforcement Revision Questions

Classroom Activities
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 perception bias are you experiencing? Discuss in class.

Sample Test Questions


1 What is perception? Perception is the process of classifying, interpreting, and understanding an event or an individual. 2 What are the factors that inuence perception? In the perceptual process of stimuli perceptual process response, individuals perceptions are inuenced by internal (personal, behaviour) or external (environment, 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 punctuality may perceive negatively when someone is late. 3 How do you use Kellys attribution theory to explain perception? Kelleys attribution theory is commonly used to explain an individuals 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 behaviour in the same situation). 4 What are common misperceptions? Common misperceptions include fundamental attribution error, selective perception, halo effect, contrast effect, similar-to-me effect, projection, stereotyping, and self-fullling prophecy. 5 What the relationship between brain and learning? The brain is integral in understanding learning. Individuals would benet 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 presentation 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.

Multiple Choice Questions


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 declines B 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 reliability B 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 ights of stairs as the elevators were out. Your boss exhibits ____________. A self-serving bias B selective perception C fundamental attribution error D stereotyping 5 Misperceptions in judging others include all of the following except ___________. A stereotyping B halo effect C projection D self-serving bias

Useful Internet Sites


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

CHAPTER

Personality
Learning Outcomes
After reading this chapter, you will understand: What is personality? Personality theories. Personality determinants. Personality traits. The MyersBriggs 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 conict.

Key Teaching Points


3.1 Understand Personality Personality 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 personalities. 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 personality 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 elementsid, 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 reasonably compatible with the society. It judges where the action is wrong or right. 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). The humanistic approach: Personality is studied with emphasis on the persons potentials for self-direction and freedom of choice. Using Rogers theory, 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 inuencing personality.

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3.3 Big Five Personality 3.3.1 Extroversion is a personality dimension describing someone who is sociable, gregarious, and assertive. 3.3.2 3.3.3 3.3.4 Agreeableness is a personality dimension that describes someone who is goodnatured, cooperative, and trusting. Conscientiousness is a personality dimension that describes someone who is responsible, dependable, persistent, and organized. Emotional stability is a personality dimension that describes someone as calm, self-condent, secure (positive) versus nervous, depressed, and insecure (negative). Openness to experience is a personality dimension that describes someone in terms of imagination, sensitivity, and curiosity.

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3.4 Identify Factors that Determine Personality Individuals 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 rst conceived such as physical stature, facial attractiveness, gender, temperament, etc. It is suggested that parents have a strong inuence on the personality of their children not only through genetic, but also through upbringing. Environment: The environment that we live in may have an impact on our personality. The environmental determinants that may inuence 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 inuences that we experience. Situation: The situation inuences the effects of heredity and environment on personality. Although generally stable and consistent, an individuals personality does change in different situations. What kind of personalities will ourish or fumble in different situations? The more important the different demands of different situations call forth different aspects of ones personality. For example, 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 inuences personality whereby values are inculcated by the parents, grandparents, aunts and uncles, as well as siblings. Reect 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? 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.

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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 characteristics and classies 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 Inuencing OB 3.6.1 Locus of control: Locus of control is the degree to which people believe that they are masters of their own fate. A persons perception of the source of his or her fate is termed locus of control. Locus of control is an indicator of core self-evaluation because people who think that they lack control over their lives tend to lack condence 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 happens to them is due to luck or chance. For them and you who believe that others 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 personality related to power. A person high in Machiavellianism is pragmatic, maintains 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 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.

Self-monitoring: Self-monitoring refers to an individuals ability to adjust his or her behaviour to external situational factors. Individuals high in self-monitoring show considerable adaptability in adjusting their behaviour to external situational factors. They are highly sensitive to external cues and can behave differently in different situations. High self-monitors are capable of presenting distinct contradictions between their public persona and their private self. Risk taking: In a business situation, risk taking is reected 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 situation. So what type of risk taker are you? Type A personality: Type A personalitya 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 accomplishments 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. Proactive personality: A proactive person is one who is able to look for opportunities, 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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3.6.5

3.6.6

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Differentiate Personality Fit in Terms of Personality-Job Fit and Personality-Organization Fit The Person-Job Fit John Holland proposed a model of personality-job t based on the notion of t between an individuals 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. Hollands 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 satised and less likely to voluntarily resign than should people in incongruent job (Robbins, 1996). 3.7.1 Personality-job t theory is a theory that identies six personality types and proposes that the t between personality type and occupational environment determines satisfaction and turnover. The person-organization t: People nd compatibility at work when their personality matches the organization. If individuals know their personality (either via MBTI or Big Five) and nd a compatible organization given their respective personality, they will nd a better t with the organizational culture. As for yourself, if you are an extrovert, what kind of organization would t you better?

3.7

3.7.2

3.8 Values Values are a set of beliefs about particular things that we hold as important to us as individuals. Such personal values are reected 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 instruments 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 difcult 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? 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.

3.8.2

3.9 Value Conicts 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 conict. Have you ever felt conict internally about values that you hold dear?

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3.9.1 3.9.2 3.9.3

Intrapersonal value conict occurs when highly ranked instrumental and terminal values pull an individual in different directions. Interpersonal value conict occurs when combinations of instrumental and terminal values inevitably spark disagreements. Individualorganization value conict occurs when values espoused or enacted by the organization collide with employees personal values.

3.10 Malaysian Work Values 3.10.1 Preference for relationships: Trust and relationship building, preserving face, we orientation, teamwork, harmony, cooperation, and personalized relationships. The Malaysian workforce places high premium in maintaining relationships in the workplace. As such, building relationships is seen as an important activity that is highly valued. Expatriate managers who may be more taskoriented 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 distance. 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 honoric titles as in Malaysia whereas in American-based multinationals, people may go on rst name basis even though they are supervisors and subordinates.

Teaching Notes

Reference to PowerPoint Slides


3.1 What is Personality? 3.2 Personality theories 3.2.1 Type Theory of Personality 3.2.2 Trait Theory of Personality 3.2.3 Psychoanalytic Theory of Personality 3.2.4 Social Learning Theory of Personality 3.2.5 The Humanistic Approach 3.3 Personality Determinants 3.4 Personality Traits 3.4.1 Myers-Briggs Type Indicator 3.4.2 The Big Five Model 3.5 Major Personality Attributes Inuencing Organizational Behaviour 3.6 Personality and National Culture

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3.7 Achieving Personality Fit 3.7.1 The PersonalityJob Fit 3.7.2 The PersonOrganization Fit 3.8 Values 3.9 Value Conicts 3.10 Malaysian Work Values Revision Questions

Classroom Activities
1 The case presents two blog entries by the 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, business 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 preference for hierarchy?

Sample Test Questions


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 personalities. nding some ways to measure the traits. Psychoanalytic theory of personality: Psychologist Sigmund Freud suggests that personality is composed of three elementsid, 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 persons 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 inuencing personality. 3 What determines personality? Heredity: Factors that were determined when one was rst conceived such as physical stature, facial attractiveness, gender, temperament. Also inuenced by parents. Environment: The culture in which we are raised; our early conditioning; the norms among our family, friends, and social groups; and other inuences that we experience. Situation: Different demands of different situations call forth different aspects of ones personality. Family: Inuences 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 characteristics 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, gregarious and assertive. Agreeableness is a personality dimension that describes someone who is goodnatured, cooperative and trusting. Emotional stability is a personality dimension that describes someone as calm, self-condent and secure. 5 How can one achieve personality t in terms of personality-job t and personalityorganization t? Personorganization t: People nd compatibility at work when their personality matches with the organization.

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According to Holland, personalityjob t theory suggests that there are six personality types and proposes that the t between personality type and occupational environment determines satisfaction and turnover. Based on personality-job t theory, Holland proposes that people in job environments congruent with their personality types should be more satised 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 conict. Intrapersonal value conict occurs when highly ranked instrumental and terminal values pull an individual in different directions Interpersonal value conict occurs when combinations of instrumental and terminal values inevitably spark disagreements. Individualorganization value conict occurs when values espoused or enacted by the organization collide with employees 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 hierarchy among the Malaysian workforce. Therefore, respect in supervisor-subordinate 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.

Multiple Choice Questions


1 The classication of E or I in the Meyers-Briggs Type Indicator stand for ____________. A extroverted/intuitive B emotional/introverted C extroverted/introverted D 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 factors. 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 individuals propensity to defer to others?

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A B C D

Agreeableness Extraversion Conscientiousness Emotional stability

4 Which of the following tends to be true in individuals who have an internal locus of control? A They are less satised 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 contradictions between who they are in public and who they are privately? A Narcissistic B High mach C High self-monitoring D Low self-monitoring

Useful Internet Sites


Take the personality test online at: http://www.personalitypathways.com/type_inventory.html http://keirsey.com/sorter/register.aspx. So what type are you? Compare and contrast with others in the class. Assess yourself on Hollands personality typology and 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

Emotion and Stress


Learning Outcomes
After reading this chapter, you will understand: 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 dimensions are they have an inuence over the individuals 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 4.1.2 Emotion is more of intense feeling that is directed to someone or something. Moods are feelings that tend to be less intense than emotions which lack a contextual stimulus.

4.2 Emotional Labour Emotional labour is described as a situation in which an employee expresses organizational desired emotions during their interpersonal transactions.

Chapter 4 27

4.3 Explain the Emotion Dimensions Dimension of emotions: variety, intensity and frequency and duration. 4.3.1 4.3.2 4.3.3 Varietypositive emotions (e.g. happiness, pride and love) and negative emotions (sadness, frustration and fear). Intensitydifferent people will also portray different levels of emotions. Frequency and durationemotions will last according to ones 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 4.4.2 In general, women are more emotionally expressive (Miller, 1976), women tend to express emotion through facial expression and interpersonal communication. 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.

4.5 Applicability of Emotions Ability to understand and interpret emotions will help in improving many organizational behaviour applications. We need to understand the way it improves the OB application such as ability and selection, decision making, motivation, leadership, interpersonal conict and deviant workplace behaviours. 4.6 Explain Stress Stress is an adaptive response to an external situation that results in physical, psychological 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 Consequences Stress 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 organizationrelated 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. 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

Chapter 4 28

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

Reference to PowerPoint Slides


4.1 4.2 4.3 4.4 What are Emotions? Emotional Labour Felt versus Displayed Emotions Dimensions of Emotions 4.4.1 Variety 4.4.2 Intensity 4.4.3 Frequency and Duration 4.5 Gender and Emotions 4.6 External Constraints on Emotions 4.6.1 Organizational Inuences 4.7 Organizational Behaviour Application 4.7.1 Ability and Selection 4.7.2 Decision Making 4.7.3 Motivation 4.7.4 Leadership 4.7.5 Interpersonal Conict 4.7.6 Workplace Issues in Relation to Emotions 4.8 What is Stress? 4.9 Understanding Stress and Its Consequences 4.10 Potential Sources of Stress 4.11 Consequences of Stress 4.12 Nature of Stress 4.13 Stress Moderators 4.14 Managing Stress 4.14.1 Individual Perspective Review Questions

Classroom Activities
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.

Chapter 4 29

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?

Sample Test Questions


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 ones 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 communication. 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, psychological or behavioural deviations for organizational participation. Stress can be derived from many sources. The biggest source of stress is actually the environmental factors, e.g. economic, political, technological and other environmentrelated 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 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 organizational factors. Role, tasks, job, interpersonal demand, leadership, and organization structure are the examples of organizationrelated 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.

Chapter 4 30

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.

Multiple Choice Questions


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.

Useful Internet Sites


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

CHAPTER

Attitude and Behaviour at Work


Learning Outcomes
After reading this chapter, you will understand: What is conformity? Attitudes at work. How rights to privacy are interpreted? Bases for discrimination at work. Different approaches to discipline. The individuals responsibilities to the organization. Conict 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, discipline, and individual-organization responsibilities. This is to enhance organizational effectiveness and efciency. 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 management. Studies have shown that job satisfaction can partially explain variations in employees 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 characteristics. The ve core job characteristics measured by JDS are skill variety, task identity, task signicance, task autonomy, and task feedback. Two main effects of job dissatisfaction are employee withdrawal (absenteeism and turnover) and job performance. Research has shown that the lower the satisfaction, the more likely employees are to be absent from work. Organizational commitment: How a person identies with and feel a part of the organizations Job involvement: How willing a person is to work hard and to apply efforts beyond normal job satisfaction

5.1.2 5.1.3

5.2 Conformity Conformity is following the norms of others without independent thinking. One normally 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 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 Privacy Invasion of the rights of privacy is the intrusion of an individuals private life and the unauthorized release of the persons information, which could cause suffering or harm to the person in question. Employees believe that their religious, political and social beliefs are their own personal domain and should not be intruded upon and be subject to exploration and scrutiny. However, large organizations develop policy guidelines to establish uniform practices, at the same time provide course of actions for any unusual situations as and when they arise. 5.4 Discrimination Discrimination 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 inuencing behaviour through reprimand. Preventive discipline is action taken to encourage employees to follow rules and regulations to avoid violation of the law while corrective discipline is action that follows the breach of a law or rule.

Chapter 5 33

5.6 Individuals Responsibilities to the Organization As 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. 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. 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.

5.6.2

5.6.3

5.7 Interpersonal Behaviour and Conict Management 5.7.1 Conict management: Conict can take place at three different levels: Intrapersonal conict conict can take place within the employee himself or herself Interpersonal conict conict can occur between individuals or groups Inter-group conict conict that occurs across organizations. 5.7.2 Effects of conict: People are encouraged or motivated to look for approaches that will resolve the issues; problems are brought out in the open where members 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 conict: Lasting longer than it should that it may become more intense over time; cooperation and teamwork may also deteriorate; distrust 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. Managing conict: Management can use its power to resolve conicts and motivate units to cooperate; establish a procedural system that allows parties to air their grievances or use a third-party negotiator; or resolve conict 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.

5.7.3

5.8 Group Dynamics The social process by which people interact face-to-face in small groups. It will be discussed in Chapter 7 in detail. 5.9 Informal Organizations A network of personal and social relations which is not via the formal organization.

Chapter 5 34

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

Teaching Notes

Reference to PowerPoint Slides


5.1 Attitudes at Work 5.1.1 Job Satisfaction 5.1.2 Organizational Commitment 5.1.3 Job Involvement 5.2 What is Conformity? 5.3 Rights of Privacy 5.4 Bases for Discrimination at Work 5.5 Discipline 5.6 Individuals Responsibilities to the Organization 5.6.1 Organizational Citizenship 5.6.2 Ethical Leadership 5.6.3 Whistle Blowing 5.7 Level of Conict 5.7.1 Assertive Behaviour 5.7.2 Transactional Analysis 5.7 Interpersonal Behaviour and Conict Management

Classroom Activities
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 (discipline, conict, communication)?

Sample Test Questions


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 employees individual private life. Organizations must respect and avoid the unauthorized release of the persons information, which could cause suffering or harm to the person in question.

Chapter 5 35

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 inuencing behaviour through reprimand. The two different 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 individuals responsibilities to the organization. As a member of an organization, individuals have obligations to the organization and vice versa. Three areas of individuals 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 unethical behaviours. Whistle blowing: The act of disclosing misconduct to an internal or external source. 6 Discuss the strategies of conict resolution. In managing conict, management can use their power to resolve conicts and motivate units to cooperate; establish a procedural system that allows parties to air their grievances or use a third-party negotiator; or resolve conict by exchanging/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.

Multiple Choice Questions


1 Attitudes are: A temporary feelings about something. B a combination of positive and/or negative feelings about ones 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 satised than white-collar workers.

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B C D

Women and minorities tend to be more satised than non minority workers. Younger people experience greater job satisfaction than older people. The more experienced a worker, the more satised 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.

Useful Internet Sites


www.legalworkplace.com/workplace-discipline-training.aspx http://ezinearticles.com/?Maintaining-Office-Discipline-at-Your-Workplace&id =2243764

CHAPTER

Motivation
Learning Outcomes
After reading this chapter, you will understand: What is motivation process? Maslows needs hierarchy theory. The difference between Maslows and McClellands 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 motivating 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 alternative motivational theories such as Maslows need hierarchy theory, Herzbergs Twofactor theory and McClellands learned needs theory which have been well accepted. It introduces a number of alternative theories beginning with expectancy theory, goalsetting 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 theories. Finally, the chapter describes challenges to understanding motivation in todays organizations. 6.1 What is Motivation? Motivation is dened as forces within an individual that inuence the direction, intensity, and persistence of the individuals voluntary behaviour.

Chapter 6 38

6.2 Early Theories of Work Motivation Needs are dened as either physiological or psychological deciencies that trigger behaviour to satisfy those needs. Needs theories include Maslows need hierarchy theory, Herzbergs Two-factor theory and McClellands learned needs theory. 6.2.1 Maslows needs hierarchy theory: Maslow proposed that motivation is a function of ve basic needs-physiological, safety, social, esteem, and self-actualisation. Herzbergs two-factor theory: Herzbergs two-factor theory identies hygiene factors as source of job dissatisfaction and motivation factors as the source of satisfaction on job. Alderfers ERG theory: Alderfers ERG theory identies three groups of needs: existence, relatedness and growth needs to affect motivation. McClellands 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 inuence their behaviour. Need for afliation (nAff) is the desire for friendly and warm relations with others.

6.2.2

6.2.3 6.2.4

6.3 Alternative/Contemporary Theories of Work Motivation 6.3.1 Vrooms expectancy theory: Vrooms expectancy theory states that work motivation is dependent on an individuals beliefs regarding effort/performance relationships and work outcomes. Expectancies represent an individuals belief that a particular degree of effort will be followed by a particular level of performance. Instrumentality refers to an individuals belief that a particular outcome is contingent on accomplishing a specic 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. 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 Specic, Measurable, Attainable, Result oriented, and Time bound

6.3.3

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 ones life focus. 6.5 Challenges to Understanding Motivation in Todays 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 challenging 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 consideration. 6.5.2 Motivating performance through different employment patterns: To overcome the changes in economy, one example is MAS adopting exible employment practices in a response to reduce operating cost.

6.6 Job Design Job design refers to any set of activities that alters specic jobs so as to increase the job responsibilities, job activities or to change how the job is to be executed. 6.6.1 6.6.2 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 performed 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 challenging and rewarding.

6.6.3

6.7 The Job Characteristics Model The 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 employees 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 signicance Autonomy Psychological States Outcomes

Experienced meaningfulness of work Experienced responsibility for outcomes of work Knowledge of the actual results of work

Feedback

High intrinsic work motivation High satisfaction with work High quality of work performance Low absenteeism and turnover

Moderators Knowledge and skill Growth need strength Context satisfaction

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 identiable piece of work. Task identity is high when a person works on a product from beginning to the end and able to see the nish product. Task signicance: 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: Benets to employees depend on when they have joined an organization and their stay in a job. Usually advancement, pay raise and benets depend on the seniority of the employees. Job status-based rewards: Financial rewards are given according to the position in job hierarchy. This type of reward distribution ensures internal equity. Competency-based rewards: Modern organizations are increasingly rewarding 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. 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 individual rewards are commission and bonus. Examples of team rewards are gain sharing and group raise.

6.8.2 6.8.3

6.8.4

Teaching Notes

Reference to PowerPoint Slides


6.1 What is Motivation? 6.2 Early Theories of Work Motivation 6.2.1 Maslows Needs Hierarchy Theory 6.2.2 Herzbergs Two-Factor Theory 6.2.3 Alderfers ERG Theory 6.2.4 McClellands Need Theory 6.3 Alternative Theories of Work Motivation 6.3.1 Vrooms Expectancy Theory 6.3.2 Equity Theory of Motivation 6.3.3 Goal Setting Theory 6.4 Limitations of Motivation Theories 6.5 Challenges in Motivating in Organizations 6.6 Job Design 6.7 The Job Characteristics Model

Chapter 6 41

6.8 Financial Rewards as Motivators Review Questions

Classroom Activities
What motivates you? List all the things that motivate you. How do you motivate yourself to do something (e.g. studying for an exam)? Study the biography of successful corporate leaders or individuals. What motivates them?

Sample Test Questions


1 Discuss the role of perceived inequity in employee motivation Perceived equity happens when employees perceive their pay to be fair in comparison with others in the organization. This in turn increases their motivation to continue performing in their jobs. Perceived inequity happens when employees do not 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: Vrooms expectancy theory - work motivation is dependent on individuals 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 specic 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 performed 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 challenging and rewarding.

Chapter 6 42

4 Diagram the job characteristics model of job design.


Core Job Characteristics Skill variety Task identity Task signicance Autonomy Psychological States Outcomes

Experienced meaningfulness of work Experienced responsibility for outcomes of work Knowledge of the actual results of work

Feedback

High intrinsic work motivation High satisfaction with work High quality of work performance Low absenteeism and turnover

Moderators Knowledge and skill Growth need strength Context satisfaction

5 Identify strategies to improve employee motivation through job design. Job design refers to any set of activities that alters specic 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 performed 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 challenging and rewarding.

Multiple Choice Questions


1 The best known theory of motivation is: A Alderfers ERG. B Maslows Need Hierarchy Theory. C Adams Expectancy Theory. D Locke and Lathams Path-Goal Theory 2 The key to equity theory is the: A outcome the employees receives for his/her effort. B employees commitment to the job and company. C employees input. D employees 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 states B Job enlargement C Job enrichment D Job expectancy 5 The need for achievement (nAch) in McClellands learned needs theory refers to the desire A to do better, solve problems or master complex tasks. B to control others and inuence their behaviour. C for friendly and warm relations with others. D for making a job challenging and rewarding.

Useful Internet Sites


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CHAPTER

Groups and Teams


Learning Outcomes
After reading this chapter, you will understand: 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 benets 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 encourage 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 friendship or interest. Friendship group: A group of employees who usually go out together for lunch, golng, shopping, etc. Interest group: A group of employees who congregate based on specic interests such as music.

7.2 Compare Two Models of Group Development 7.2.1 Five phases of group development: Tuckman suggested that there are ve stages of group development, namely, forming, storming, norming, performing, 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 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 dene the goals in the rst meeting. The teams activities will be driven by inertia. Transition: About halfway of the given period, a transition happens to signify the end of the rst phase. This transition will result in a drastic change in the teams 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 Behaviour 7.3.1 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, 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 inuence 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 Teams 7.5.1 Problem-solving teams: Group of 5 to 12 employees from the same department working on ways to improve quality, efciency and their work environment

Chapter 7 46

7.5.2

Self-managed work teams also known as self-directed work teams and consists of 10 to 15 employees who manage their own work and take on the responsibilities of their supervisors Cross-functional teams: Employees from different work areas or functions working together to achieve a task Virtual teams: Teams that use computer technology to connect geographically dispersed team members in accomplishing a common task.

7.5.3 7.5.4

7.6 Challenges before Effective Teamwork Cooperation integration of team members 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

Reference to PowerPoint Slides


7.1 Groups 7.2 Types of Groups 7.3 Stages of Group Development 7.3.1 Five Stages of Group Development 7.3.2 Punctuated Equilibrium Theory 7.4 Key Factors in Group Behaviour 7.5 Groups versus Teams

Chapter 7 47

7.6 Types of Teams 7.7 Challenges before Effective Teamwork 7.8 Improving Teams Effectiveness 7.9 Contemporary Issues in Managing Teams Revision Questions

Classroom Activities
At the beginning of the semester, the students were asked to form a team of 4-5 persons, and select a team leader. Each team must be truly diversied 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?

Sample Test Questions


1 What are the differences between formal and informal groups? Formal groups: Formally appointed by the organization to carry out certain functions 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, golng, shopping, etc. Interest group: A group of employees who congregate based on specic 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 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, 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 exerts inuence on group tasks and members (g) Status congruence: Social ranking within the group.

Chapter 7 48

4 What are the different types of teams? Teams can do a variety of things. They can make products, provide services, negotiate deals, coordinate projects, offer advice, and make decisions. The four most common types of team are problem-solving teams, self-managed teams, crossfunctional 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 others performance. Cross-functional teams are made up of employees from about the same hierarchical 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 theyre 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.

Multiple Choice Questions


1 Employees who band together to seek improved working conditions form a(n) ____________ group. A union B support C interest D work 2 Which stage in group development is most characterized by uncertainty? A Introduction B Storming C Forming D Norming

Chapter 7 49

3 According to the punctuated equilibrium model, for the rst half of the project, groups tend to experience A reorganization and redirection B mid-life crisis C 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.

Useful Internet Sites


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CHAPTER

Communication
Learning Outcomes
After reading this chapter, you will understand: What is communication? How managers inuence 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 communication 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 8.1.2 Sender has an idea: You have an idea you want to share with someone 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. 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, telephone, letter, memos, e-mail, report, face-to face exchange, etc. The channel

8.1.3

Chapter 8 51

can be either spoken or written. Choices of channel and medium depend greatly on the geographic location of the audience, size of audience, formality required and the urgency of the matter. 8.1.4 8.1.5 8.1.6 The receiver gets the message: The receiver has to receive the message rst and understand after listening to or reading the message. The receiver decodes the message: When the receiver receives and tried to understand it, he is actually decoding the message. 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 interference. 8.2 Types of Communication There are 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 listening and interactions. Internal and external communication: It is the exchange of information and ideas within or outside an organization for creating understanding. Internal communication or organizational communication ows typically in three directions: downward, 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 communication. Effective communication enables managers to inuence 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 efcient 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 Communication 8.3.1 Communication network: Organizational communication takes both the form of formal and informal communication. Formal communication channels are those that ow within the chain of command, and normally, follow the organizational chart. Downward communication: Refers to messages and information that ows from top management to subordinates. Upward communication: Formal upward communication includes messages that ow from the lower to higher levels in the organizations hierarchy, including problems and exceptions, suggestions for improvement, performance report, grievances and disputes, and 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.

Chapter 8 52

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 environment, 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 ltering happens when information ows between different levels in any organization. Information is differently interpreted, 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 receivers 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, cultural background, temperament, health, beauty, popularity, religion and political belief can all separate one person from another and make understanding difcult. 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 interpretation 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 communicates 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 receivers 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 efcient messages 8.5 Informal Communication 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. 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 difcult 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.

Chapter 8 53

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 ltering affect the information being passed that the last person in the chain may 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 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 Strategies 8.5.1 Open communication: Sharing all types of information throughout the company, 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. Crisis communication: 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.

8.5.3

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 reect some hope and optimism 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 managers 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 communicate back to help them learn and improve in areas where they are inadequate.

Chapter 8 54

Teaching Notes

Reference to PowerPoint Slides


8.1 What is communication? 8.2 The Communication Process 8.3 Types of Communication 8.3.1 Interpersonal Communication 8.3.2 Formal and Informal Communication 8.3.3 Internal and External Communication 8.3.4 Non-verbal Communication 8.3.5 Active Listening 8.4 Inuencing Others Through Communication 8.5 Organizational Communication. 8.5.1 Communication Flows in Organizations 8.6 Communication Barriers 8.6.1 Overcoming Communication Barriers 8.7 Communication During Turbulent Times 8.8 Building Trust 8.9 Communication Strategies in Global Organizations 8.9.1 Open Communication 8.9.2 Dialogue 8.9.3 Crisis Communication 8.9.4 Feedback Review Questions

Classroom Activities
Watch the late Professor Randy Pausch on http://www.cmu.edu/uls/journeys/randypausch/ 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 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.

Sample Test Questions


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 inuence others to adopt their suggested ideas. To become effective managers, they need to know the importance of listening, speaking and inter-

Chapter 8 55

personal communication regardless in conveying good or bad information. Communicating the right messages helps improve employees attitudes and performances 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 communicate in such a way while addressing the current underlying problems, so that they are able to reect 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 reassurance 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 interruptions 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 receivers 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 communication barriers to overcome. Age, education, gender, social status, economic position, cultural background, temperament, health, beauty, popularity, religion and political belief can all separate one person from another and make understanding difcult. (vii) 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 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 receivers 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 efcient messages

Chapter 8 56

4 What are the differences between formal communication and informal communication? Organizational communication takes both the form of formal and informal communication. Formal communication channels are those that ow within the chain of command, and normally follows the organizational chart. Informal communication 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 meaning that enables them to understand each other and share a view of the world.

Multiple Choice Questions


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 ows within the chain of command, and normally, follows the organizational chart. B involves only formal communication. C Is the lateral or diagonal exchange of information. D 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 ows from top management to subordinates. B messages that ow from the lower to higher levels in the organizations hierarchy. 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 difcult to eliminate or control.

Useful Internet Sites


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CHAPTER

Decision Making
Learning Outcomes
After reading this chapter, you will understand: 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 Making Decision making is a conscious process of making choices among one or more alternatives for getting the desired outcome. Programmed decisions are determined by past experiences and are often predictable, 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 concerns of their subordinates in making decisions as they are more interested in completing their task efciently 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 consideration 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 solvers will try to look at as many options as possible and future possibilities in making their decisions. People with this style often have a long-term outlook and they have a high tolerance 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 Making Classical 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 satiscing ( rst perceived) alternatives in a given situation. Garbage can model views the main components of the decision making process problem solution, participants and choice situationsall mixed up together in a garbage can of the organization. 9.4 1 2 3 4 Criteria of a Good Decision The decision is high quality in resolving problem or opportunity at hand The decision is timely The decision is understood by those who have to implement it, and The decision has the commitment of those who have to implement it.

9.5 Making Ethical Decision One 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 Making Advantages 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. Satiscing. Goal displacement. 9.7 Participative Management The process of involving employees in setting goals, making decisions, solving problems 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 development provide the framework in which the business decisions are undertaken.

Teaching Notes

Reference to PowerPoint Slides


9.1 The Nature of Decision Making 9.1.1 Programmed Decisions 9.1.2 Non-Programmed Decisions 9.2 General Decision Making Styles 9.2.1 Value Orientation vs. Tolerance for Ambiguity 9.2.2 Decision-Making Styles 9.3 Rational Decision Making 9.3.1 Assumptions Underlying the Rational Model 9.3.2 Four Stages Associated With Rational Decision Making 9.4 Non-Rational Decision Making 9.4.1 The Administrative Model 9.4.2 Assumptions Underlying the Non-Rational Model 9.5 Group Decision Making Review Questions

Classroom Activities
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 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 Brieng: 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?

Sample Test Questions


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 predictable, 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 interactions. 4 What is meant by satiscing and bounded rationality? Why do managers not strive to nd the economically best solution for many organizational decisions? Classical 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 satiscing (rst perceived) alternatives in a given situation. The Garbage can model views the main components of the decision making process -problem solution, participants and choice situations- 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.

Multiple Choice Questions


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 alternative. 2 In the following steps in decision making, which would come 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 justication of any decision. B give people a say in how decisions are made.

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C D

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

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 satiscing.

Useful Internet Sites


http://businessballs.com

CHAPTER

10

Power, Inuence and Politics


Learning Outcomes
After reading this chapter, you will understand: What is power and inuence? Differences between leadership and power. Differences between authority and power. Bases of power. What is dependency? Power tactics that inuence others. Power in groups: coalition. Sexual harassment: unequal power in the workplace. Politics: power in action. Empowerment.

Key Teaching Points


10.1 Denition of Power and Inuence Power is the capacity to inuence others. An individual is said to have power when other people are willing to follow the instruction or direction given to them. Inuence refers to any behaviour that attempts to alter someones attitudes or behaviour. Inuence 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 inuence 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 ows down the vertical hierarchy.

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10.2 Bases of Power Two 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 benets. 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 Power One 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 nancial resources also add to power bases. 10.4 Power Tactics: Inuencing Others Researchers conclude that there are many different types of inuence tactics, and each tactic is used depending on the objectives, situation that they are currently in and the target of the inuencing process. Point out to students that their choices may say something about them. Their choice of tactics may include the following.
Tactics Reason Friendliness Coalition Bargaining Assertiveness Higher authority Sanctions Description Use of facts and data to make a logical or rational presentation. Create a relationship by using strategies such as acting humble, being friendly and creating good will. Getting support from someone in the organization to back up the request. Use negotiation tactics through the exchange of benets or favours. Use a direct and forceful approach. Gaining a support from higher position to back up requests. Use of organizationally derived rewards and punishment.

10.5 Power in Groups: Coalition A coalition is one of the inuence 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 difcult to be ignored by the management.

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10.6 Sexual Harassment: Unequal Power in the Workplace 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 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 Action Political behaviour is dened as a set of behaviours which are not ones formal role in the organization, but these inuence or attempt to inuence 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 violates the implied rules in the organization or in the country. 10.8 Power and Political Tactics in Organizations Organizational politics refer to inuence tactics that others perceive to be self-serving behaviour to gain self-interests, advantages and benets 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 decisions, 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 allocation, establishing a free ow of information, using education and involvement of the employees during organizational change. 10.9 Empowerment Empowerment is dened 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

Reference to PowerPoint Slides


10.1 Denition of Power 10.1.1 Differences between Leadership and Power 10.2 Bases of Power 10.2.1 Formal Power 10.2.2 Personal Power

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10.3 Dependency: The Key to Power 10.4 Power Tactics 10.5 Power in Groups: Coalition 10.6 Sexual Harassment: Unequal Power in the Workplace 10.7 Politics: Power in Action Revision Questions

Classroom Activities
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 brieng 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?

Sample Test Questions


1 What is the denition of power? Power is the capacity to inuence 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 without 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 inuence 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 specic 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 benets. 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. As for personal power, one who has a power due to his or her personal characteristics. 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, knowledge and labour, and by differentiating themselves from competitors. Important and scarce 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 Reason Friendliness Coalition Bargaining Assertiveness Higher authority Sanctions Description Use of facts and data to make a logical or rational presentation. Create a relationship by using strategies such as acting humble, being friendly and creating good will. Getting a support from someone in the organization to back up the request. Use negotiation tactics through the exchange of benets or favours. Use a direct and forceful approach. Gaining a support from higher position to back up requests. Use of organizationally derived rewards and punishment.

6 Building coalition is one example of power in groups. How does one build coalition? A coalition is one of the inuence 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 difcult 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 organization. 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 inuence tactics that others perceive to be selfserving behaviour to gain self-interests, advantages and benets 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 inuence 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 dened 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 organization. Planning to be integral for all the organizational members. Strong communication network for facilitating exchange of information at all levels of the organization.

Multiple Choice Questions


1 Organizational politics involves all the following except: A acquire and use the power needed to make decisions. B inuence tactics that others perceive to be self-serving behaviour. C gain self-interests, advantages and benets at the expense of others. D behaves in contrary to the interests of the entire organization or work unit. 2 Empowerment is dened 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 organization. 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 exists A 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 discomfort. D all of the above. 5 Which pair of tactics and description are not true?
Tactics Description Use of facts and data to make a logical or rational presentation. Create a relationship by using strategies such as acting humble, being friendly and creating good will. Getting a support from someone in the organization to back up the request. Use of organizationally derived rewards and punishment

A B C D

Reason Friendliness Coalition Bargaining

Useful Internet Sites


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

CHAPTER

11

Leadership
Learning Outcomes
After reading this chapter, you will understand: 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. Leader Leadership is the process of inuencing individuals and groups to achieve goals. 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. MANAGER Rational Complexity Planning and Budgeting Targets/Goals Organizing and Stafng Controlling and Problem Solving LEADER Intuitive Change Setting DirectionVisions

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Aligning People Motivating Inspiring/ Moving

Roles of leadership Shares organizations 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 Theories Traits 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-condence Intelligence Job-relevant Knowledge, and extraversion 11.3 Behavioural Theories Behavioural theories: Leadership is central to performance and other outcomes. Ohio State Studies: Two dimensions of leadership behaviourinitiating structure and consideration. University of Michigan Studies: Two dimensions of leader behaviouremployee oriented and production oriented. Blake and Mouton Managerial Grid: Two-dimensional gridconcern 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 denes 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 differences 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 dimension: 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 Theories Contingency theories: Consider other aspects of leadership situation to predict outcomes. 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 leaders style of interacting with his/her followers and the degree to which the situation allowed the leader to control and inuence. Least-preferred co-worker (LPC) questionnaire: an instrument that purports to measure whether a person is task-or relationship-oriented. Leader-member relations describe the extent to which followers have condence, 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 inuence a leader had over powerbased activities such as hiring, ring and promotions. 11.4.2 Hersey and Blanchards 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 leaders 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 identied four types of leaders: 1 The directive leader informs followers of what is expected of them, schedules 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 suggestions 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 Theories 11.5.1 Charismatic leadership: The charismatic leadership theory is based on the assertion that followers make attributions of heroic or exceptional leadership abilities 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 individual 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 organizations established goals. Level ve leaders: Leader who are ercely ambitious and driven, but their ambition is directed toward their company rather than themselves. These leaders have 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 ve of its key components: 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 Inuencing Decision making 11.6.1 Transformational and transactional neuroleadership Transformational neuroleadership suggests that for the transformational leaders, 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 transcend self-interests. Transactional neuroleadership suggests that transactional leaders make decision based on contingent rewards.

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They clarify the options and outcomes to their followers so that they maximize gains or benets 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 individuals technical knowledge and interpersonal skills. Consistency concerns a persons reliability, predictability and good judgement 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. Identication-based trust: Trust based on a mutual understanding of each others intentions and appreciation the others wants and desires.

Teaching Notes

Reference to PowerPoint Slides


11.1 What is leadership? 11.1.1 Roles of Leadership 11.1.2 Leadership Studies Timeline 11.2 Trait Theories 11.3 Behavioural Theories 11.3.1 Ohio State Studies 11.3.2 University of Michigan Studies 11.3.3 The Managerial Grid 11.3.4 The Scandinavian Studies 11.4 Contingency Theories 11.4.1 Fiedler Contingency Model 11.4.2 Hersey and Blanchards Situational Theory 11.4.3 Leader-Member Exchange Theory 11.4.4 Path-goal Theory 11.4.5 Leader-Participation Model 11.5 Inspirational Theories

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11.5.1 Charismatic Leadership 11.5.2 Transformational Leadership 11.5.3 Emotional Intelligence and Leadership Effectiveness 11.6 Neuroleadership 11.7 Trust Review Questions

Classroom Activities
As a class, break into different teams and each team select one of the leadership theories discussed in this chapter. Think of one leader in the country or specic organization. Analyse the individual based on any of the theories discussed.

Sample Test Questions


1 What is leadership and how is it different from management? Leadership is the process of inuencing individuals and groups to achieve goals. Leaders use inuence 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-condence, intelligence, job-relevant knowledge, and extraversion. 3 What are the limitations of behavioural theories? The behavioural leadership theories have had little success in distinguishing consistent relationships between leadership behaviour and group performance. This is perhaps due to the lack of consideration of the situational factors that inuence 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 leaders style of interacting with his/her followers and the degree to which the situation allowed the leader to control and inuence. Using the Least-preferred co-worker (LPC) questionnaire, an instrument that measure whether a person is task-or relationship-oriented. Hersey and Blanchards 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 outgroups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction. Path-goal theory: It is the leaders 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 transformational leadership). The charismatic leadership theory is based on the assertion that followers make attributions 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 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. 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.

Multiple Choice Questions


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 components 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 dene 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-condence B honesty and integrity D self-motivation

Useful Internet Sites


http://management.about.com/od/leadership/Leadership.htm http://www.managementhelp.org/ldrship/ldrship.htm

CHAPTER

12

Culture and Creativity/Innovation


Learning Outcomes
After reading this chapter, you will understand: 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 Innovation Creativity 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 outcomes 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 organization 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, strategies, 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 condence 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 Culture 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 creating a collective identity and nding ways to integrate working and living together. 12.7 Culture and Decision Making Culture is dened 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 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 uncertainties 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 nations most protable 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 procedures.

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Risk tolerant: An innovative organization always encourages its employees to experiment and try out new ideas without the fear of making mistakes. Each failed attempt is treated as a stepping-stone towards success. Conict 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 encouraged 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 constantly give positive feedback and encouragement to employees and thus employees feel that their new ideas are appreciated.

Teaching Notes

Reference to PowerPoint Slides


12.1 12.2 12.3 12.4 12.5 Creativity and Innovation Innovation for Competitive Advantage Change and Innovation Forces for Change The Change Management and Innovation Process 12.5.1 Why People Resist Change 12.6 Stimulating and Nurturing Innovation Fig. 12.2 Systems View of Innovation 12.7 Culture 12.8 Culture and Decision Making 12.9 Innovative Culture 12.10 Characteristics of an Innovative Culture Review Questions

Classroom Activities
Think of some changes you have noticed on campus in the past year.

Sample Test Questions


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 technologies readily accessible to them. Organizations need to be innovative and creative in response to the needs of the environment. Sometimes, innovations by product or service leadership are needed to exploit a particular industrys timing characteristics.

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2 What is an innovative culture? Discuss the characteristics of an innovative organization. Characteristics of an innovative culture include: Willing to accept uncertainties Tolerance of the impractical. Low external controls Risk tolerant Conict 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 todays highly competitive global environment it is important to have a culture that supports creativity and innovation. The culture should be considered as critical as other important organizational and business processes for creating and managing innovation-oriented, high-performing, creative organizations. Good managers are able to support an existing strong culture or build sustainable 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

Multiple Choice Questions


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 organizations strategic planning. C A method of management where subordinates share a degree of decisionmaking power with their immediate superiors. D A method of management where low-level workers are responsible for making 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 prot-sharing. D piece rates. 3 The skill-based plans are seen as attractive by management in terms of ____________. A exibility B low cost C motivation D 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 benet 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.

Useful Internet Sites


http://www.1000advices.com/guru/innovation_culture_sk.html

CHAPTER

13

Structure and Organizational Design


Learning Outcomes
After reading this chapter, you will understand: Denition 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, coordination and the elements that are involved in structuring an effective organization. Also discussed 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 Denition and Dimensions of Organizations Organization is dened 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 Structure Organizational structure is the basic form which makes up the skeleton of the organization, and shows allocation of formal responsibilities and linking roles and coordinating structures of the organization. 13.3 Elements of Organizational Structure 13.3.1 Hierarchy of authority: Hierarchy of authority refers to a legitimate power prescribed to individuals, who then use it to indicate work process and allocation of resources.

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13.3.2 Division of labour refers to subdivision of work into specic job scopes to be assigned to specic 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 Departmentalization Forms of departmentalization is about specifying how employees and their responsibilities are grouped together. 13.4.1 Functional structure: Employees are organized around specic 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 at in layers, very informal and uses selfdirected 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 Design 13.5.1 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 characteristics with regard to production processes. 13.5.4 Organizational strategy Refers to organizational plan in organizing its missions, resources and capabilities to its advantage. Organizational structure would complement the organizations strategy because that would help organizations achieve its missions.

Teaching Notes

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Reference to PowerPoint Slides


13.1 Organizations: Denition and Dimensions 13.1.1 Organizational Chart 13.2 Organizational Structure 13.3 Elements of Organizational Structure 13.4 Forms of Departmentalization 13.4.1 Functional Structure 13.4.2 Divisional Structure 13.4.3 Matrix Structure 13.4.4 Team-based Structure 13.4.5 Network Structure 13.5 Four Contingencies of Organizational Design 13.5.1 External Environment 13.5.2 Organizational Size 13.5.3 Technology 13.5.4 Organizational Strategy 13.6 Challenges Review Questions

Classroom Activities
Discuss the organizational chart of your university/college and your specic department (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.

Sample Test Questions


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 specic knowledge or functions. Divisional structure: Employees are grouped according to geographic areas, products 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 at in layers, very informal and uses self-directed work teams to execute various 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 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 inefcient. 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-motivate 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: difcult 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 formalization. The simple structure is a 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 regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command. 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.

Multiple Choice Questions


1 Division of labour refers to: A allocation of formal responsibilities and linking roles and coordinating structures. B subdivision of work into specic job scopes to be assigned to specic 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 specic 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 at organizations include the following except: A less bureaucratic levels. B less headcount per manager. C greater worker autonomy. D complement routine tasks.

Useful Internet Sites


http://www.learnmanagement2.com/organizational%20structures.htm http://www.businessteacher.org.uk/people-in-business/organizational-structures/

CHAPTER

14

Managing Change and Organizational Development


Learning Outcomes
After reading this chapter, you will understand: 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 Development Organizational 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 Process Organizational 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 organizations industry, market or general environment. 14.3 Forces of Change 14.3.1 External forces: Forces outside the organization, e.g. demographic characteristics, technological advancements, market changes, social as well political pressures, conicts, 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 productivity 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 Change 14.4.1 Lewins force 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 Kotters 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 Lewins model as shown in Table 14.2. 14.4.4 Change through organizational development: OD is much broader in orientation and constitutes a set of techniques used to implement a planned change through increasing organizations 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 organizations 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: Individuals 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 Organizations 14.6.1 Dening organizational learning and learning organization Learning organization concentrates on methodologies for creating change to improve the learning process. Organizational learning is dened as a process of increasing an organizations ability to take effective action. See Table 14.4

Teaching Notes

Reference to PowerPoint Slides


14.1 Process of Change and Organizational Development 14.2 The Change Management and Innovation Process 14.3 Forces for Change 14.3.1 Major Forces of Change 14.4 Models of Planned Change 14.4.1 Lewins Force Field Analysis Model 14.4.2 A System Model of Change 14.4.3 Kotters Steps for Leading Organizational Change 14.4.4 Change Through Organizational Development 14.5 Research and Practical Implications 14.5.1 Channelling Change 14.5.2 Understanding and Managing Resistance to Change 14.5.3 Channeling Change 14.6 Learning Organizations 14.6.1 Organizational Learning Review Questions

Classroom Activities
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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Sample Test Questions


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 Lewins 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 difcult to deal with? Individuals 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 inuencing the strategy. Students will illustrate a change situation and identify the following: Internal Change 1. 2. 3. 4. 5. External Change 1. 2. 3. 4. 5.

4 Choose an organization that you think ts the characteristics of a learning organization. Explain. Name of organization: Characteristics of a learning organization in that organization: Methodologies for creating change to improve the learning process.

Multiple Choice Questions


1 Listed below are reasons one would resist change except: A Individuals 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 organizations industry, 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 organizations 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.

Useful Internet Sites


http://futuresearch.net.au/organizational-change/ http://www.managementhelp.org/org_chng/od-eld/OD_defn.htm http://www.webmd.com

CHAPTER

15

Human Resource Implications of Organization Behaviour


Learning Outcomes
After reading this chapter, you will understand: The link between organizational behaviour and human resource management. Applications of organizational behaviour in human resource management. Human resource managementsystem 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 nd that OB concepts, theories and approaches are readily applicable in the eld of human resource management (HRM). This is evidenced 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 practices as shown in Table 15.1, namely, human resource planning, recruitment and selection, training and development, performance management, compensation and benets, employee relations/industrial relations, organizational safety and health, and international HRM.

Chapter 1 5 91 Organizational Behaviour Human Resource Planning Recruitment and Selection Training and Development Performance Management (PM) Compensation and Benets Employee Relations/ Industrial Relations Individual issues Organizational Safety and Health International HRM

1 Introduction to Organizational Behaviour: Three levels of analysis 2 Perception and Learning 3 Personality

Job analysis

Training needs analysis

Designing PM system

Determining compensation

Similarity/ differences of OB across countries

Screening

Learning styles Understanding personality

Perception of fairness Personality clash in PM

Perception of fairness Psychological contract Accident prone behaviours Employee assistance programme Job satisfaction Organizational citizenship behaviour Union or non-union Organizational justice, Whistle blowing Motivating employees to practice safety

Training of experts Expatriation

Right employee

Testing Hiring Testing Hiring Testing

4 Emotion and Stress

Right employee

Emotional intelligence training Attitudinal training

Handling emotion in PM

5 Attitude and Behaviour at Work

Right employee

Work attitude and performance

Surviving

6 Motivation

Right employee

Testing

Leadership Training

Using PM as a motivating tool

Equity theory Expectancy theory Job design Job characteristic model

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 Communication

Communicate the plan

Corporate image

Communication training

Giving feedback

Management labour communication Deciding compensation levels Negotiation

Crosscultural communication

9 Decision Making

Decision making styles

Hiring decision

Decision making training

Deciding rewards

Making decision in multicultural setting Inuencing top management on safety and health issues Corporate social responsibility Inuencing multicultural persons

10 Power, Inuence and Politics

Policy

Inuence in hiring and selection

Assertive Training

Employee employer feedback session

Negotiating employment contract

Managing conict Sexual harassment Managerial roles in contract negotiation Managing culture

11 Leadership

Strategic HR

Leadership qualities

Leadership training

Evaluating leadership

Rewarding leadership

Global leaders

12 Culture and Creativity/ Innovation

Person environment t

Inculcating culture in new people

Orientation Cultural change

Rewarding creativity

Crosscultural sensitivity

13 Structure and Organizational Design

Workforce management

Reward structure

Repatriation

Chapter 1 5 92 Organizational Behaviour Human Resource Planning Recruitment and Selection Training and Development Performance Management (PM) Compensation and Benets Employee Relations/ Industrial Relations Resistance to change Organizational Safety and Health International HRM

14 Organizational Development and Managing Change

Change management

Different ways to recruit

Characteristics of innovative organizations Innovation for competitive advantage

New ways of assessing performance

Managing change across different countries

Table 15.1 Applications of OB in Human Resource Management

15.3 Human Resource ManagementSystem and Strategic HRM 15.3.1 Objectives of HRM To help the organization reach its goals. To utilize knowledge, skills and abilities (KSA) of its employees efciently. 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 elements 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 management (SHRM) is a planned human resource management and development approach intended to enable an organization to achieve its goals and gain competitive advantage 15.4 Organizational Human Resource Planning Human 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 nding the right individuals, we need to have a good understanding of the individual 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 inuence 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, knowledge 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 competencies (KASOC) and behaviours needed. Task-oriented approach describes the work activities. Conduct person analysis in order to nd out who needs training and what specic 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 specied job function or activity during a specied 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, inuence and politics (Chapter 10) during the employee-supervisor feedback session, and identifying and evaluating leadership (Chapter 11). 15.8 Compensation and Benets The what, how and why of compensation and benets 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 relations 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 compensating 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, benets) and rewarding creativity (motivating factors). 15.9 Employee Relations and Industrial Relations In 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 conict Sexual harassment: Managerial roles in contract negotiation Managing culture Resistance to change 15.10 Organizational Safety and Health Safety and accident prevention concerns managers and organizations. Organizational concerns range from revenue management to image management and a sense of goodwill 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, organizational justice, and motivation (motivating employees to practice safety). 15.11 International Human Resource Management Building capable workforce for sustainable organization needs separate set of IHRM policies and strategies. Managing diversity, cultural difference, cross-cultural communication, multicultural teams, overseas assignment and management of expatriates in workforce necessitate separate set of OB interventions. OB activities relevant to international HRM include: Training of expats Expatriation Surviving Overseas assignment Multicultural team Cross-cultural communication Making decision in multicultural setting Inuencing multicultural persons Global leaders Repatriation

Teaching Notes

Reference to PowerPoint Slides


15.1 Link between Organizational Behaviour and Human Resource Management 15.2 Applications of Organizational Behaviour in Human Resource Management 15.3 Human Resource Management 15.3.1 Human Resource Management Practices 15.4 Human Resource Planning (HRP) 15.4.1 HRP and Individual Level OB 15.4.2 HRP and Group Level OB 15.4.3 HRP and Organizational Level OB 15.5 Recruitment and Selection 15.5.1 Personality 15.5.2 Emotions 15.5.3 Attitudes 15.6 Training and Development 15.7 Training and Development Approaches 15.7 Performance Management 15.8 Compensation and Benets 15.9 Employee Relations and Industrial Relations 15.10 Organizational Safety and Health 15.11 International Human Resource Management Review Questions

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Classroom Activities
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 previous 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 subsequently control these behaviours?

Sample Test Questions


1 What is the link between OB and HRM? One may nd that OB concepts, theories and approaches are readily applicable in the 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, compensation and benets, 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 reconcile the two. Using OB principles, it focuses on the behaviours of individuals within 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 competencies (KASOC) and behaviours needed. Task-oriented approach describes the work activities. Conduct person analysis in order to nd out who needs training and what specic 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

Chapter 1 5 96

Decision making how/what to decide in compensation management Power, inuence 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.

Multiple Choice Questions


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 afrmative action plan. 2 Below are objectives of HRM except: A To utilize knowledge, skills and abilities (KSA) of its employees efciently. 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 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.

Chapter 1 5 97

Answer Key for Multiple Choice Questions for Each Chapter


Chapter/Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Introduction to Organizational Behaviour Perception and Learning Personality Emotion and Stress Attitude and Behaviour at Work Motivation Groups and Teams Communication Decision Making Power, Inuence and Politics Leadership Creativity, Innovation and Culture Organizational Structure and Design Managing Change and Organizational Development Human Resources Implications of Organizational Behaviour 1 B C C D B B A D C A C C B C A 2 C B B B A D B D A B B B C A B 3 D D A C D A C B A C B D A D C 4 C B B A A C B A D D B A C B D 5 D D C D B A D C B D D A B A A

Useful Internet Sites


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

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