how Organizational behaviour

Organizational behaviour
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115 10 Organizational behaviour Key Con Ce Pts and terms Behavioural science Matrix organization Bounded rationality Motivation Cognitive dissonance Organic organization Emotional intelligence Organization Equity theory Organizational behaviour Expectancy theory Organizational culture Extrinsic motivation Organizational effectiveness Goal theory Organizing Intelligence Personality Intrinsic motivation Psychological contract Lattice organization Self-efficacy Line and staff organization Virtual organization Learn Ing out Comes On completing this chapter you should be able to define these key concepts. You should also know about: ● What is meant by organizational ● Organizational climate behaviour ● Organizational processes ● The sources and applications of ● Characteristics of people organizational behaviour theory ● Implications for HR specialists ● How organizations function ● Organizational culture116 Part 2 People and Organizations Introduction Source review An understanding of how organizations function and how people behave in them is important to Characteristics of organizational HR professionals, indeed to all managers, as pointed behaviour – Ivancevich et al (2008: 11) out by Nadler and Tushman (1980). ● It is a way of thinking – about individuals, groups and organizations. ● It is multidisciplinary – it uses principles, models, theories and methods from other disciplines. Source review ● There is a distinctly humanistic orientation – The significance of organizational people and their attitudes, perceptions, learning capacities, feelings and goals are of major behaviour theory – Nadler and importance. Tushman (1980: 30) ● It is performance-oriented – it deals with the Managers perform their jobs within complex social factors affecting performance and how it can systems called organizations. In many senses, the be improved. task of the manager is to influence behaviour in a desired direction, usually towards the ● The use of scientific method is important in accomplishment of a specific task or performance studying variables and relationships. goal. Given this definition of the managerial role, ● It is applications-oriented in the sense of being skills in the diagnosis of patterns of organizational concerned with providing useful answers to behaviour become vital. Specifically, the manager questions that arise when managing needs to understand the patterns of behaviour that organizations. are observed, predict in what direction behaviour will move (particularly in the light of managerial action), and to use this knowledge to control behaviour over the course of time. The sources and applications of organizational behaviour Organizational behaviour theory defined Organizational behaviour theory is based on the main Organizational behaviour was defined by Huczynski behavioural science disciplines. These are defined as the fields of enquiry dedicated to the study of human and Buchanan (2007: 843) as the term used to describe ‘the study of the structure, functioning, and behaviour through sophisticated and rigorous methods. The ways in which they contribute to dif- performance of organizations and the behaviour of groups and individuals within them’. The following ferent aspects of organizational behaviour theory and how they in turn influence HRM practices are are the characteristics of organizational behaviour theory. summarized in Figure 10.1.Chapter 10 Organizational Behaviour 117 FIgure 10.1 The sources and applications of organizational behaviour theory Discipline Contribution to theory Application • individual differences • job/work design • personality • selection processes • attitudes and tests • perceptions • learning and • self-concept development Psychology • attributions programmes • motivation • performance • engagement and management commitment • reward management • learning • attitude measurement • leadership • organization • group processes development Social psychology • attitude change • organization design • behavioural change • change management • communication • communication systems • organization • group dynamics development • power • organization design Sociology • politics • job design • conflict • leadership • organization culture development • leadership • employee relations How organizations function affected by their environment, have a structure that has both formal and informal elements. An organization is an entity that exists to achieve Organization structures are frameworks for getting a purpose through the collective efforts of the people things done. Traditional formal structures were based who work in or for it. Organizing is the process on laid down hierarchies (lines of command) repr-e of making arrangements in the form of defined or sented in organization charts, and use was made of understood responsibilities and relationships to closely den fi ed job descriptions. But to varying extents enable those people to work cooperatively together. organizations operate informally as well as formally Organizations can be described as systems that, as by means of a network of roles and relationships 118 Part 2 People and Organizations that cut across formal organizational boundaries Types of organization and lines of command. Organization structures can The main types of organization are described briefly evolve almost spontaneously as circumstances change below: and new activities have to be carried out. ● Line and staff – a traditional organization based on the military model in which Factors affecting how a hierarchy of ‘line managers’ carry out organizations function the fundamental operations such as manufacturing, sales or customer service The processes that take place in organizations – while the ‘staff’ functions such as finance interaction and networking, leadership, group be- and personnel provides them with services, haviour, the exercise of power and the use of politics advice and support. – may well have much more effect on how organ- ● Mechanistic – a formal organization that is izations function than can be shown in a defined hierarchical with rigid chains of command organization chart supported by elaborate job de- and control, distinct departments and scriptions and an organization manual. Moreover, tightly defined and specialized jobs (usually the way in which an organization functions will be a characteristic of a line and staff largely contingent on its purpose, technology, methods organization). of working and external environment. A number of theories have been developed, summarized in ● Organic – a relatively informal organization Table 10.1, to explain how organizations function, with a non-hierarchical, flat structure where culminating in the contingency and post-bureaucratic the emphasis is on horizontal processes, the schools that now predominate. elimination of boundaries between functions, t ab Le 10.1 Schools of organization theory School Leading exponents Summary of theory The classical school Taylor (1911), Organizations need control, measurement, Fayol (1916), order and formality to function well. They have Urwick (1947) to minimize the opportunity for unfortunate and uncontrollable informal relations, leaving room only for the formal ones. The human relations Barnard (1938), Barnard emphasized the importance of the school Roethlisberger and informal organization – the network of informal Dickson (1939) roles and relationships that, for better or worse, strongly influences the way the formal structure operates. In their analysis of the Hawthorne studies Roethlisberger and Dickson stressed the importance of informal groups and decent, humane leadership. The behavioural Argyris (1957), Herzberg A humanistic point of view is adopted that is science school et al (1957), McGregor concerned with what people can contribute and (1960), Likert (1961), how they can best be motivated. Schein (1965)Chapter 10 Organizational Behaviour 119 t ab Le 10.1 Continued School Leading exponents Summary of theory The bureaucratic model Weber (1908) Max Weber coined the term ‘bureaucracy’ as translated in 1947 a label for a type of formal organization in which impersonality and rationality are developed to the highest degree. Bureaucracy, as he conceived it, was the most efficient form of organization because it was logical and because personalized relationships and non-rational, emotional considerations do not get in its way. The socio-technical Emery (1959), In any system of organization, technical or task model Trist et al (1963) aspects are interrelated with the human or social aspects. The emphasis is on interrelationships between, on the one hand, the technical processes of transformation carried out within the organization and, on the other hand, the organization of work groups and the management structures of the enterprise. The systems school Miller and Rice (1967) Organizations should be treated as open systems that are continually dependent upon and influenced by their environments. The basic characteristic of the enterprise as an open system is that it transforms inputs into outputs within its environment. The contingency Burns and Stalker (1961), Members of the contingency school analysed school Woodward (1965), a variety of organizations and concluded that Lawrence and Lorsch their structures and methods of operation are (1969) a function of the circumstances in which they exist. They do not subscribe to the view that there is one best way of designing an organization or that simplistic classifications of organizations as formal or informal, bureaucratic or non-bureaucratic are helpful. The post-bureaucratic Pascale (1990), Rather than seeing organizations as a hierarchy school Ghoshal and Bartlett of static jobs, members of the post-bureaucratic (1995) school think of them as a portfolio of dynamic processes that overlay and often dominate the vertical, authority-based processes of the hierarchical structure. The emphasis is on ‘horizontal tasks’, collaboration and networking across units rather than on ‘vertical tasks’ within functional units. Hence the concept of the ‘boundaryless organization’.120 Part 2 People and Organizations teamwork and flexible roles (also known as This definition emphasizes that organizational a lattice organization). culture is concerned with the subjective aspect of what goes on in organizations. It refers to abstractions ● Matrix organization – an organization that such as values and norms that pervade the whole consists of a functional structure with a or part of a business, which may not be defined, number of different disciplines and a project discussed or even noticed. Nevertheless, culture can structure consisting of project teams drawn have a significant influence on people’s behaviour. from the disciplines. The following are some other definitions of organ- ● Network organization – a collection of izational culture: interrelated organizations that extends ● A strong culture is a system of informal rules beyond the boundaries of any single that spells out how people are to behave organization. most of the time. (Deal and Kennedy, ● Virtual organization – an organization that 2000: 15) mainly uses electronic means for its members ● The culture of an organization refers to the to interact with one another thus minimizing unique configuration of norms, values, beliefs face-to-face contacts. and ways of behaving that characterize the manner in which groups and individuals combine to get things done. (Eldridge and Crombie, 1974: 89) Organizational culture ● Organizational culture offers a shared system of meanings that is the basis for The culture of an organization has been described communications and mutual understanding. by Deal and Kennedy (2000: 4) as ‘the way we do (Furnham and Gunter, 1993: 70–71) things around here’. It is more complex than that, ● Culture is a pattern of basic assumptions – as other definitions given below indicate. But this invented, discovered or developed by a given simplistic definition at least demonstrates that it is group as it learns to cope with the problems an all-pervading notion that affects the way in which of external adaptation and internal people behave and has to be taken into account as a integration – that has worked well enough to contingency factor in any programme for develop- be considered valid and, therefore, to be ing organizations and HR policies and practices. taught to new members as the correct way to Organizational culture offers a shared system of perceive, think and feel in relation to these meanings which is the basis for communications and problems. (Schein, 1990: 110) mutual understanding. If these functions are not fulfilled in a satisfactory way, culture may signifi- cantly reduce the effectiveness of an organization. How organizational culture This is why it is important for HR specialists to understand the concept of organizational culture develops and how it affects organizations. The values and norms that are the basis of culture are formed in four ways. First, by the leaders in the organization, especially those who have shaped it Organizational culture defined in the past. Schein (1990) indicates that people Organizational or corporate culture is the pattern identify with visionary leaders – how they behave of values, norms, beliefs, attitudes and assump - and what they expect. They note what such leaders tions that may not have been articulated but shape pay attention to and treat them as role models. the ways in which people in organizations behave Second, as Schein also points out, culture is formed and things get done. ‘Values’ refer to what is be- around critical incidents – important events from lieved to be important about how people and organ- which lessons are learnt about desirable or unde- izations behave. ‘Norms’ are the unwritten rules of sirable behaviour. Third, culture develops from the behaviour. need to maintain effective working relationships Chapter 10 Organizational Behaviour 121 among organization members that establishes values having been articulated. Implicit values that are and expectations. Finally, culture is inu fl enced by the deeply embedded in the culture of an organization organization’s environment, which may tend to be and are reinforced by the behaviour of management dynamic or unchanging. can be influential, while espoused values that are Culture evolves over time as a result of shared mere rhetoric and are not reflected in managerial experiences. Schein (1984) suggested that this is behaviour may have little or no effect. When values a learning process which takes place either through are acted on they are called ‘values in use’. Examples the trauma model, in which members of the organ- are listed below. ization learn to cope with some threat by the erec- tion of defence mechanisms, or by means of the positive reinforcement model, where things that seem to work become embedded and entrenched. Learning takes place as people adapt to and cope with external pressures, and as they develop successful approaches Areas in which values may be and mechanisms to handle the internal challenges, expressed – explicitly or implicitly processes and technologies in their organization. Where culture has developed over long periods of ● Care and consideration for people. time and has become firmly embedded it may be ● Competence. difficult to change quickly, if at all, unless a trau- matic event occurs. ● Competitiveness. ● Customer service. The diversity of culture ● Innovation. The development process described above may ● Performance. result in a culture that characterizes the whole organization. But there may be different cultures ● Quality. within organizations. For example, the culture of ● Teamwork. an outward-looking marketing department may be substantially different from that of an internally focused manufacturing function. There may be some common organizational values or norms, but in some respects these will vary between different work environments. Values may be expressed through norms and arte- facts, as described below. They may also be expressed through the media of language (organizational jargon), The components of culture rituals, stories and myths. Organizational culture can be described in terms of values, norms, artefacts and management or leader - Norms ship style. Norms are the unwritten rules of behaviour, the ‘rules of the game’ that provide informal guidelines Values on how to behave. Norms tell people what they are Values are beliefs in what is best or good for the supposed to be doing, saying, believing, even wear - organization and what should or ought to happen. ing. They are never expressed in writing – if they The ‘value set’ of an organization may only be rec- were, they would be policies or procedures. They ognized at top level, or it may be shared throughout are passed on by word of mouth or behaviour and the business, in which case the business could be can be enforced by the reactions of people if they described as value-driven. are violated. They can exert very powerful pressure The stronger the values the more they will influ- on behaviour because of these reactions – we con- ence behaviour. This does not depend upon their trol others by the way we react to them.122 Part 2 People and Organizations Artefacts Typical norms Artefacts are the visible and tangible aspects of an organization that people hear, see or feel and ● How managers treat the members of their teams which contribute to their understanding of the (management style) and how the latter relate organization’s culture. Artefacts can include such to their managers. The prevailing work ethic, things as the working environment, the tone and eg ‘work hard, play hard’, ‘come in early, stay language used in e-mails, letters or memoranda, the manner in which people address each other at late’, ‘if you cannot finish your work during meetings or over the telephone, the welcome (or business hours you are obviously inefficient’, lack of welcome) given to visitors and the way in ‘look busy at all times’, ‘look relaxed at all which receptionists deal with outside calls. Artefacts times’. can be very revealing. ● Status – how much importance is attached to it; the existence or lack of obvious status symbols. Management style ● Ambition – naked ambition is expected and The approach managers use to deal with people approved of, or a more subtle approach – their management or leadership style – is a is the norm. significant part of the culture of an organization. Managem ent style can be described in terms of the ● Performance – exacting performance standards following extremes: are general; the highest praise that can be given in the organization is to be referred to as ‘very charismatic ↔ non-charismatic professional’. autocratic ↔ democratic ● Power – recognized as a way of life; executed controller ↔ enabler by political means, dependent on expertise and transactional ↔ transformational ability rather than position; concentrated at the top; shared at different levels in different parts Most managers adopt an approach somewhere of the organization. between the extremes. Some will vary it according ● to the situation or their feelings at the time; others Politics – rife throughout the organization and will stick to the same style whatever happens. Every treated as normal behaviour; not accepted as manager has his or her own style but this will be overt behaviour. influenced by the organizational culture, which may ● Loyalty – expected, a cradle-to-grave approach produce a prevailing management style that repre- to careers; discounted, the emphasis is on sents a behavioural norm for managers that is results and contribution in the short term. generally expected and adopted. ● Anger – openly expressed; hidden, but expressed through other, possibly political, means. Classifying organizational culture ● Approachability – managers are expected to be There have been many attempts to classify or approachable and visible; everything happens categorize organizational cultures as a basis for behind closed doors. analysis and for taking action to support or change them. Most of these classifications are expressed ● Formality – a cool, formal approach is the in four dimensions; three of the best-known ones norm; forenames are/are not used at all levels; are summarized below. Note that following the lead there are unwritten but clearly understood rules of Harrison (1972), there is much common ground about dress. between them.Chapter 10 Organizational Behaviour 123 Schein (1984) – classification of cultures Harrison (1972) – organization ideologies ● Power culture in which leadership resides in a ● Power-oriented – competitive, responsive to few and rests on their ability and tends to be personality rather than expertise. entrepreneurial. ● People-oriented – consensual, management ● Role culture in which power is balanced control rejected. between the leader and the bureaucratic ● Task-oriented – focus on competency, structure. The environment is likely to be stable dynamic. and roles and rules are clearly defined. ● Role-oriented – focus on legality, legitimacy and ● Achievement culture in which personal bureaucracy. motivation and commitment are stressed and action, excitement and impact are valued. ● Support culture in which people contribute out of a sense of commitment and solidarity. Handy (1981) – culture typology ● The power culture is one with a central power considerable influence on organizational behaviour. source that exercises control. There are few If there is an appropriate and effective culture it rules or procedures and the atmosphere is would therefore be desirable to take steps to sup- competitive, power-oriented and political. port or reinforce it. If the culture is inappropriate ● The role culture in which work is controlled by attempts should be made to determine what needs procedures and rules and the role, or job to be changed and to develop and implement plans for change. A culture will be more effective if it is description, is more important than the person consistent in its components and shared amongst who fills it. Power is associated with positions organizational members, and if it makes the organ- not people. ization unique, thus differentiating it from other ● The task culture in which the aim is to bring organizations. together the right people and let them get on with it. Influence is based more on expert power than in position or personal power. The culture Organizational climate is adaptable and teamwork is important. ● The person culture in which the individual is the As defined by Harrison and Shirom (1999: 263), central point. The organization exists only to organizational climate refers to ‘members’ percep- serve and assist the individuals in it. tions of organizational features such as decision- making, leadership and norms about work’. Ivancevich et al (2008: 528) described organizational climate as: ‘A set of properties of the work environment, perceived directly or indirectly by the employees, Appropriate cultures that is assumed to be a major force in influencing employee behaviour.’ It is not possible to say that one culture is better The term ‘organizational climate’ is sometimes than another, only that a culture is to a greater confused with ‘organizational culture’ and there has or lesser extent appropriate in the sense that it been much debate on what distinguishes them from is relevant to the needs and circumstances of the one another. In Denison’s (1996) analysis of this organization and helps rather than hinders its per - issue, he suggested that ‘culture’ refers to the deep formance. However, embedded cultures can exert 124 Part 2 People and Organizations structure of organizations, which is rooted in the the instant flow of information (and sometimes values, beliefs and assumptions held by organizational produce information overload) but may inhibit members. In contrast, ‘climate’ refers to those aspects face-to-face interactions, which are often the best of the environment that are consciously perceived ways of doing things. by organizational members. Rousseau (1988) stated that climate is a perception and is descriptive. Percep - Group behaviour tions are sensations or realizations experienced by an individual. Descriptions are what a person reports Organizations consist of groups or teams of people of these sensations. working together. They may be set up formally as The debate about the meanings of these terms part of the structure or they may be informal gather - can become academic. It is easiest to regard organ- ings. A group can be a permanent or a temporary izational climate as how people perceive (see and feature in an organization. Interactions take place feel about) the culture existing in their organization. within and between groups and the degree to which French et al (1985) distinguish between the actual these processes are formalized varies according to situation (ie culture) and the perception of it (ie the organizational context. climate). Formal groups or teams are created by organ- izations to achieve a defined purpose. People are brought together with the necessary skills to carry out the tasks and a system exists for directing, Organizational processes coordinating and controlling the group’s activities. Informal groups are set up by people in organiza- A number of social processes take place in organ- tions who have some affinity for one another. It izations that affect how they function. These are: could be said that formal groups satisfy the needs interaction and networking, communication, group of the organization while informal groups satisfy behaviour, leadership, power, politics and conflict. the needs of their members. Groups develop an ideology that affects the atti- tudes and actions of their members and the degree Interaction and networking of satisfaction they feel. If the group ideology is Interactions between people criss-cross the organ- strong and individual members identify closely with ization, creating networks for getting things done the group, it will become increasingly cohesive. Group and exchanging information that is not catered for norms or implicit rules will be evolved that define in the formal structure. ‘Networking’ is an increasingly what is acceptable behaviour and what is not. This important process in flexible and delayered organ- is described as a ‘reference group’, which consists of izations where more fluid interactions across the the group of people with whom an individual iden- structure are required between individuals and teams. tifies. The individual accepts the group’s norms and, Networking means that people canvass opinion and if in doubt about what to do or say, reference is enlist support to promote their projects or ideas. made to these norms or to other group members In this way they may get more done than by going before action is taken. Most people in organizations through formal channels. People also get things done belong to a reference group and this can signifi- in organizations by creating alliances – getting cantly affect the ways in which they behave. agreement on a course of action with other people Four stages of group development were identi- and joining forces to put the proposed action into fied by Tuckman (1965): effect. 1 Forming, when there is anxiety, dependence on the leader and testing to find out the nature of the situation and the task, and Communications what behaviour is acceptable. The communications processes used in organizations 2 Storming, where there is conflict, emotional have a marked effect on how it functions, especially resistance to the demands of the task, if they take place through the network, which can resistance to control and even rebellion then turn into the ‘grapevine’. E-mails encourage against the leader.Chapter 10 Organizational Behaviour 125 3 Norming, when group cohesion is developed, channels or relying on their authority. Some indi- norms emerge, views are exchanged openly, viduals genuinely believe that the best way to get mutual support and cooperation increase something done is by using political means, especially and the group acquires a sense of its when they are frustrated by the normal decision identity. processes. Others unashamedly pursue their own ends. Political behaviour can be harmful when it is 4 Performing, when interpersonal problems underhand and devious, but it can sometimes are resolved, roles are flexible and functional, help to enlist support and overcome obstacles to there are constructive attempts to complete getting results. All managers need political skills, as tasks and energy is available for effective described in Chapter 59, but, because of the nature work. of their role, such skills are particularly important for HR specialists. Leadership Organizations largely function by means of managers Conflict and supervisors who exercise leadership in order Conflict is also inevitable in organizations because to get their teams into action and ensure that they they function by means of adjustments and com- achieve the results expected of them. Goleman (2000) promises among competitive elements in their reported that a study by Hay McBer of 3,871 execu- structure and membership. Conflict also arises tives, selected from a database of more than 20,000 when there is change, because it may be seen as a executives worldwide, established that leadership threat to be challenged or resisted, or when there had a direct impact on organizational climate, and is frustration. Conflict is not always deplorable. that climate in turn accounted for nearly one-third It can be a result of progress and change and it can of the financial results of organizations. The conclu- be used constructively. sion from research conducted by Higgs (2006) was that leadership behaviour accounts for almost 50 per cent of the difference between change success and failure. Research by Northouse (2006) into Characteristics of people 167 US firms in 13 industries established that over a 20-year period leadership accounted for more To manage people effectively, it is necessary to take variations in performance than any other variable. into account the factors that affect how they behave Leadership skills are described in Chapter 55. at work. The development of HR processes and the design of organizations are often predicated on the belief that everyone is the same and that they Power will behave rationally when faced with change or Organizations exist to get things done; in the pro- other demands. But the behaviour of people differs cess of doing this, people or groups exercise power. because of their characteristics and individual dif- Directly or indirectly, the use of power in influenc- ferences and it is not always rational. ing behaviour is a pervading feature of organiza- The management of people would be much tions, whether it is exerted by managers, specialists, easier if everyone were the same, but they are not. informal groups or trade union officials. It is a way As discussed below, they are, of course, different of achieving results, but it can be misused. because of variations in personal characteristics and the influence of their background (the way in which they were brought up). Some people also Politics consider sex, race or disability as factors that affect people’s behaviour at work, although holding this Political behaviour is an inevitable feature of organ- view readily leads to discrimination. In addition, izational life. The aim of organizational politicians there will be differences in ability, intelligence and is to get their own way by inu fl encing people to accept personality. their point of view without going through the usual 126 Part 2 People and Organizations and mechanical abilities, as well as perceptual Variations in personal (memory) and motor skills relating to physical oper - characteristics ations such as eye/hand coordination and mental dexterity. The headings under which personal characteristics They also suggested that overriding these abi- can vary have been classified by Mischel (1968) as lities there is general mental ability (GMA), which follows. accounts for most variations in performance. Follow- ing a meta-analysis of 85 years of research findings, Schmidt and Hunter (1998) established that GMA was the most valid predictor of future performance Source review and learning for selecting people without previous experience. Variations in personal characteristics – Mischel (1968) Intelligence Intelligence has been variously defined as: ● Competencies – abilities and skills. ● The capacity to solve problems, apply ● Constructs – the conceptual frameworks which principles, make inferences and perceive govern how people perceive their environment. relationships. (Argyle, 1989: 53) ● Expectations – what people have learnt to ● The capacity for abstract thinking and expect about their own and others’ behaviour. reasoning with a range of different contents and media. (Toplis et al, 2004: 20) ● Values – what people believe to be important. ● What is measured by intelligence tests. ● Self-regulatory plans – the goals people set (Wright and Taylor, 1970: 31) themselves and the plans they make to achieve The last, tautological definition is not facetious. them. As an operational definition, it can be related to the specific aspects of reasoning, inference, cognition (ie knowing, conceiving) and perception (ie under - standing, recognition), which intelligence tests attempt These characteristics are affected by environmental to measure. or situational variables, which include the type of General intelligence (GI) consists of a number work individuals carry out; the culture, climate and of mental abilities that enable a person to succeed management style in the organization; the social at a wide variety of intellectual tasks that use the group within which they work; and the ‘reference faculties of knowing and reasoning. It can be meas- groups’ individuals use for comparative purposes ured by an intelligence test and is sometimes expressed (eg comparing conditions of work or pay between as an intelligence quotient (IQ), which is the ratio one category of employee and another). of an individual’s mental age to the individual’ s The personal characteristics that affect people’s actual age as measured by an intelligence test. behaviour at work, as discussed below, are their The concept of emotional intelligence (as described ability, intelligence, personality, attitudes, emotions later) stresses that emotional maturity – in the sense and emotional intelligence. of the ability to identify, assess and manage the emotions of one’s self and others – is also important. Ability Personality Ability is the quality possessed by people that makes an action possible. Abilities have been analysed by Personality has been defined by Huczynski and Burt (1954) and Vernon (1961). They classie fi d them Buchanan (2007: 138) as: ‘The psychological qua- into two major groups: V:ed – verbal, numerical, lities that influence an individual’s characteristic memory and reasoning abilities; and K:m – spatial Chapter 10 Organizational Behaviour 127 behaviour patterns in a stable and distinctive ● relating to other people – extraversion or manner.’ As noted by Ivancevich et  al (2008), introversion; personality appears to be organized into patterns ● gathering information – sensing (dealing that are, to some degree, observable and measu-r with facts that can be objectively verified), able and involves both common and unique charac- or intuitive (generating information through teristics – every person is different from every other insight); person in some respects but similar to other people ● using information – thinking (emphasizing in other respects. Personality is a product of both logical analysis as the basis for decision- nature (hereditary) and nurture (the pattern of life making), or feeling (making decisions based experience). Personality can be described in terms on internal values and beliefs); of traits or types. ● making decisions – perceiving (collecting all the relevant information before making Traits a decision), or judging (resolving the issue Traits are predispositions to behave in certain without waiting for a large quantity of data). ways in a variety of different situations. The leading This is the basis of personality tests such as the Myers- model of personality traits is the following ‘big five’ Briggs Types Indicator. classification (Costa and McRae, 1992; Digman, Types should be distinguished from traits. As 1990): Huczynski and Buchanan (2007: 142) put it: ‘Type ● Openness – inventive/curious or consistent/ approaches fit people into categories possessing cautious. common behaviour patterns. A personality trait, on the other hand, is an enduring behaviour that ● Conscientiousness – efficient/organized or occurs in a variety of settings. While individuals easy-going/careless. belong to types, traits belong to individuals.’ ● Extraversion – outgoing/energetic or solitary/reserved. ● Agreeableness – friendly/compassionate or Attitudes cold/unkind. An attitude can broadly be defined as a settled mode ● Neuroticism – sensitive/nervous or secure/ of thinking. Attitudes are evaluative. They are devel- confident. oped through experience but they are less stable than traits and can change as new experiences are The assumption that people are consistent in the ways they express these traits is the basis for gained or influences absorbed. Within organizations they are affected by cultural factors (values and norms); making predictions about their future behaviour. We all attribute traits to people in an attempt to the behaviour of management (management style); policies such as those concerned with pay, recogni- understand why they behave in the way they do. But people do not necessarily express the same trait tion, promotion and the quality of working life; and the influence of the ‘reference group’ (the group across different situations or even the same trait in the same situation. Different people may exhibit with whom people identify). Sometimes there may be a discrepancy between attitudes and behaviour, consistency in some traits and exhibit considerable variability in others. ie someone may believe in one thing – such as being fair to people – but act differently. This is called ‘cognitive dissonance’. Types Type theories of personality identify a number of types of personality that can be used to categorize Emotions people and may form the basis of a personality test. Emotions are feelings that arouse people and there- The types may be linked to descriptions of various fore influence their behaviour such as anger, fear, traits. One of the most widely used type theories sadness, joy, anticipation and acceptance. The mildest is that of Jung (1923). He identified four major forms of emotions are called ‘moods’, which are low preferences: intensity, long-lasting emotional states.128 Part 2 People and Organizations Since Goleman’s contribution, three major models Emotional intelligence of emotional intelligence, as summarized by Clarke The notion of emotional intelligence was r fi st den fi ed (2007), have dominated thinking in this area: by Salovey and Mayer (1990), who proposed that it ● Personality models have become the most involves the capacity to perceive emotion, integrate popular theory of emotional intelligence emotion in thought, understand emotion and manage following Goleman. Here, emotional emotions effectively. Goleman (1995) popularized intelligence is viewed as comprising a range the concept. He defined emotional intelligence as: of emotional dispositions as well as ‘The capacity for recognizing our own feelings and competencies, from individual traits to that of others, for motivating ourselves, for manag- a number of learnt capabilities. These are ing emotions well in ourselves as well as others.’ all contained within the components of He suggested that its four components are: emotional intelligence listed above. 1 Self-management – the ability to control or ● Mixed models comprise aspects of redirect disruptive impulses and moods and personality as well as abilities to regulate own behaviour coupled with a perceive emotional intelligence and propensity to pursue goals with energy and manage emotions. persistence. The six competencies associated ● The ability model views emotional with this component are self-control, intelligence more narrowly as a set of four trustworthiness and integrity, initiative, cognitive abilities that involve the capacity to adaptability – comfort with ambiguity, identify, reason with, and utilize emotions openness to change and strong desire to effectively. achieve. 2 Self-awareness – the ability to recognize and As Clarke comments, the r fi st two models have come under criticism in terms of the ambiguity associated understand your moods, emotions and drives as well as their effect on others. This is linked with the areas included and the measurement ap- proaches employed. The ability model has received to three competencies: self-confidence, realistic self-assessment and emotional more positive commentary as possessing greater validity. self-awareness. 3 Social awareness – the ability to understand the emotional make-up of other people, and Critical evaluation of the concept of skill in treating people according to their emotional intelligence emotional reactions. This is linked to six The notion that there is more to being effective as competencies: empathy, expertise in a manager or working with people than having building and retaining talent, organizational a high IQ is persuasive. What matters is how that awareness, cross-cultural sensitivity, valuing intelligence is used, especially when relating to people. diversity, and service to clients and The term ‘emotional intelligence’ has become a con- customers. venient and recognizable label for this requirement: 4 Social skills – proficiency in managing someone who is poor at dealing with people is de- relationships and building networks to get scribed as lacking in emotional intelligence. the desired result from others and reach Instruments are available for measuring emotional personal goals, and the ability to find intelligence such as the Trait Emotional Intelligence common ground and build rapport. The five Questionnaire (Petrides and Furnham, 2000). On the competencies associated with this component basis of such questionnaires, learning and develop- are: leadership, effectiveness in leading ment programmes can be created for individuals or change, conflict management, influence/ groups, which focus on any weaknesses revealed. communication, and expertise in building But doubts have been expressed about the notion and leading teams. of emotional intelligence. Locke (2005: 426), a well- According to Goleman, it is not enough to have a respected occupational psychologist, made the high IQ; emotional intelligence is also required. following observation:Chapter 10 Organizational Behaviour 129 The concept of emotional intelligence has now school and think of the organization as a portfolio become so broad and the components so of dynamic processes that overlay and often domi- variegated that no one concept could possibly nate the vertical, authority-based processes of the encompass or integrate all of them, no matter hierarchical structure. Similarly, organizational what the concept was called; it is no longer even development activities should be based on an ana- an intelligible concept. What is the common or lysis and understanding of these dynamic processes. integrating element in a concept that includes: introspection about emotions, emotional expression, non-verbal communication with Organizational culture others, empathy, self-regulation, planning, creative While it may not be possible to define an ideal thinking and the direction of attention? There is none. culture or to prescribe how it can be developed, it can at least be stated with cond fi ence that embedded He suggested that emotional intelligence should be cultures exert considerable influence on organiza- renamed as a skill. tional behaviour and therefore performance. If there Goleman’s mixed model of emotional intelligence, is an appropriate and effective culture it is desirable although the most popular, has been heavily criticized. to take steps to support or reinforce it. If the culture Mayer et al (2008) described it as mere ‘pop psy- is inappropriate, attempts should be made to deter - chology’. There is also the question of whether the mine what needs to be changed and to develop and concept of emotional intelligence adds anything implement plans for change (approaches to culture significant to that of behavioural competencies. management are described in Chapter 12). HR Dulewicz and Higgs (1999) have produced a detailed innovations need to take account of the culture in analysis of how the emotional intelligence elements which they will operate. They are likely to fail if of self-awareness, emotional management, empathy, they are countercultural. relationships, communication and personal style correspond to competencies such as sensitivity, flexibility, adaptability, resilience, impact, listening, Organizational climate leaders hip, persuasiveness, motivating others, The perceptions of employees about the organiza- energy, decisiveness and achievement motivation. tion, which form the organization climate, need to They conc lude that there are distinct associations be assessed and understood so that action can be between competency modes and elements of emo- taken to deal with negative factors. Diagnostic tional intelligence. There is a danger of confusion tools, as described in Chapter 12, can be used for if emotional intelligence notions and competency this purpose. frameworks overlap. Organizational processes Implications for HR The social processes of interaction and networking, communication, group behaviour, leadership, power, specialists politics and conflict need to be understood and con- sidered when considering ways of improving organ- The main implications of organizational behaviour izational effectiveness (the ability of an organization theory for HR specialists are summarized below. to achieve its goals by making effective use of the resources available to it). Social and political factors can affect how HR decisions are made and how How organizations function well they are implemented. When involved in organization design bear in mind that, while the highly structured classical model with clearly defined roles and lines of control and Individual differences communication may appear to be the ideal solution, When designing jobs, preparing learning and devel- in practice organizations function differently. It is opment programmes, assessing and counselling staff, necessary to take into account the post-bureaucratic 130 Part 2 People and Organizations developing reward systems and dealing with griev- Judgements on personality ances and disciplinary problems, it is necessary to Personality should not be judged or measured sim - remember that all people are different. What fulfils plistically in terms of stereotyped traits. People are or motivates one person may not fulfil or motivate complex and they change, and account has to be taken another. Abilities, aptitudes and intelligence differ of this. The problem for HR specialists and managers widely and it is necessary to take particular care in in general is that, while they have to accept and fitting the right people in the right jobs and giving understand these differences and take full account them the right training. Personalities, attitudes and of them, they have ultimately to proceed on the basis emotions also differ. It is important to focus on how of fitting them to the requirements of the situation, to manage diversity. This should take account of which are essentially what the organization needs to individual differences, which will include any issues achieve. There is always a limit to the extent to which arising from the employment of women, people an organization that relies on collective effort to from different ethnic groups, those with disabilities achieve its goals can adjust itself to the specific needs and older people. The predictive effectiveness of of individuals. But the organization has to appreciate GMA tests as selection aids should be noted. that the pressures it places on people can result in stress and therefore can become counterproductive. Key learning points: Organizational behaviour ● People perform their roles within complex systems Organizing is the process of making arrangements called organizations. The study of organizational in the form of defined or understood behaviour focuses on how this happens. responsibilities and relationships to enable those people to work cooperatively together. Organizational behaviour defined ● Organizations can be described as systems that, as affected by their environment, have a structure Organizational behaviour was defined by that has both formal and informal elements. Huczynski and Buchanan (2007) as the term used to describe ‘the study of the structure, functioning, ● Organization structures are frameworks for and performance of organizations and the behaviour getting things done. of groups and individuals within them’. ● Traditional formal structures were based on laid-down hierarchies (lines of command) The sources and applications of represented in organization charts, and use was organizational behaviour theory made of closely defined job descriptions. But to varying extents organizations operate informally Organizational behaviour theory is based on the main as well as formally by means of a network of roles behavioural science disciplines. These are defined and relationships that cut across formal as the fields of enquiry dedicated to the study of organizational boundaries and lines of command. human behaviour through sophisticated and rigorous methods. Organizational culture How organizations function The culture of an organization has been described by ● An organization is an entity that exists to achieve Deal and Kennedy (2000: 4) as ‘the way we do things a purpose through the collective efforts of the around here’. Organizational or corporate culture is people who work in or for it. the pattern of values, norms, beliefs, attitudes and Chapter 10 Organizational Behaviour 131 assumptions that may not have been articulated but Appropriate cultures shape the ways in which people in organizations It is not possible to say that one culture is better than behave and the ways in which things get done. another, only that a culture is to a greater or lesser extent appropriate in the sense that it is relevant to How organizational culture develops the needs and circumstances of the organization and The values and norms that are the basis of culture are helps rather than hinders its performance. formed in four ways: 1 By the leaders in the organization, especially those Organizational climate who have shaped it in the past. As defined by Harrison and Shirom (1999), 2 Around critical incidents – important events from organizational climate refers to ‘members’ perceptions which lessons are learnt about desirable or of organizational features such as decision-making, undesirable behaviour. leadership and norms about work’. 3 From the need to maintain effective working relationships among organization members; this Organizational processes establishes values and expectations. A number of social processes take place in 4 Influenced by the organization’s environment. The organizations that affect how they function. external environment may be relatively dynamic or These are: interaction and networking, unchanging. communication, group behaviour, leadership, power, politics and conflict. The components of culture Organizational culture can be described in terms of Personal characteristics values, norms, artefacts and management style. The personal characteristics that affect people’s behaviour at work are their ability, intelligence, Classifying organizational culture personality, attitudes, emotions and emotional (Harrison, 1972): intelligence. ● Power-oriented – competitive, responsive to personality rather than expertise. Emotional intelligence ● People-oriented – consensual, management Emotional intelligence is a combination of skills and control rejected. abilities such as self-awareness, self-control, empathy ● and sensitivity to the feelings of others. Someone with Task-oriented – focus on competency, dynamic. high levels of emotional intelligence should be able to ● Role-oriented – focus on legality, legitimacy and relate to people effectively. bureaucracy.132 Part 2 People and Organizations Questions 8 What are the components of culture? 1 What is organizational behaviour? 2 On what is organizational behaviour theory 9 How can cultures be classified? based? 10 What is organizational climate? 3 What is an organization? 11 What are the key organizational processes? 4 What is organization structure? 12 What is the ‘big five’ model? 5 What is generally agreed to be the most 13 What is emotional intelligence? realistic theory of organization? 14 What are the implications of organization 6 What is organizational culture? theory for HR specialists? 7 How does organizational culture develop? 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