Organisational Dynamics

1. Organisational Dynamics Tejashree Talpade

2. Organisational Bahaviour • Organizational Behavior (OB) is the study and application of knowledge about how people, individuals, and groups act in organizations. • Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives. • Organizational behavior encompasses a wide range of topics, such as human behavior, change, leadership, teams, etc.

3. Elements of Organizational Behavior • The organization's base rests on management's philosophy, values, vision and goals. • This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. • The culture determines the type of leadership, communication, and group dynamics within the organization. • The workers perceive this as the quality of work life which directs their degree of motivation. • The final outcome are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from.

4. Models of Organizational Behavior • There are four major models or frameworks that organizations operate out of: • Autocratic - The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal. • Custodial - The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation.

5. Supportive - The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives. • Collegial - The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm.

6. Although there are four separate models, almost no organization operates exclusively in one. There will usually be a predominate one, with one or more areas over-lapping in the other models.

7. How individualization affects different organizations High Creative Individualism Conformity Socialization Isolation Rebellion Low High Low Individualization

8. The chart above (Schein, 1968) shows how individualization affects different organizations: • Too little socialization and too little individualization creates isolation. • Too high socialization and too little individualization creates conformity. • Too little socialization and too high individualization creates rebellion. • While the match that organizations want to create is high socialization and high individualization for a creative environment. This is what it takes to survive in a very competitive environment...having people grow with the organization, but doing the right thing when others want to follow the easy path.

9. Organization Development • Organization Development (OD) is the systematic application of behavioral science knowledge at various levels, such as group, inter-group, organization, etc., to bring about planned change. • Its objectives is a higher quality of work-life, productivity, adaptability, and effectiveness. • It accomplishes this by changing attitudes, behaviors, values, strategies, procedures, and structures so that the organization can adapt to competitive actions, technological advances, and the fast pace of change within the environment.

10. There are seven characteristics of OD: • Humanistic Values: Positive beliefs about the potential of employees (McGregor's Theory Y). • Systems Orientation: All parts of the organization, to include structure, technology, and people, must work together. • Experiential Learning: The learners' experiences in the training environment should be the kind of human problems they encounter at work. The training should NOT be all theory and lecture.

11. There are seven characteristics of OD: • Problem Solving: Problems are identified, data is gathered, corrective action is taken, progress is assessed, and adjustments in the problem solving process are made as needed. This process is known as Action Research. • Contingency Orientation: Actions are selected and adapted to fit the need. • Change Agent: Stimulate, facilitate, and coordinate change. • Levels of Interventions: Problems can occur at one or more level in the organization so the strategy will require one or more interventions.

12. Quality of Work Life • Quality of Work Life (QWL) is the favorableness or unfavorableness of the job environment. Its purpose is to develop jobs and working conditions that are excellent for both the employees and the organization. One of the ways of accomplishing QWL is through job design. Some of the options available for improving job design are: • Leave the job as is but employ only people who like the rigid environment or routine work. Some people do enjoy the security and task support of these kinds of jobs. • Leave the job as is, but pay the employees more. • Mechanize and automate the routine jobs. • And the area that OD loves - redesign the job.

13. Redesigning jobs • When redesigning jobs there are two spectrums to follow - job enlargement and job enrichment. Job enlargement adds a more variety of tasks and duties to the job so that it is not as monotonous. This takes in the breadth of the job. That is, the number of different tasks that an employee performs. This can also be accomplished by job rotation. • Job enrichment, on the other hand, adds additional motivators. It adds depth to the job - more control, responsibility, and discretion to how the job is performed. This gives higher order needs to the employee, as opposed to job enlargement which simply gives more variety. The chart below (Cunningham & Eberle, 1990) illustrates the differences:

14. Redesigning jobs Higher order Job enrichment & enlargement Job Enrichment Accent on needs Routine Job Job Enlargement Lower order Few Many Variety of Tasks

15. The benefits of enriching jobs include: • Growth of the individual • Individuals have better job satisfaction • Self-actualization of the individual • Better employee performance for the organization • Organization gets intrinsically motivated employees • Less absenteeism, turnover, and grievances for the organization • Full use of human resources for society • Society gains more effective organizations

16. There are a variety of methods for improving job enrichment: • Skill Variety: Perform different tasks that require different skill. This differs from job enlargement which might require the employee to perform more tasks, but require the same set of skills. • Task Identity: Create or perform a complete piece of work. This gives a sense of completion and responsibility for the product. • Task Significant: This is the amount of impact that the work has on other people as the employee perceives. • Autonomy: This gives employees discretion and control over job related decisions. • Feedback: Information that tells workers how well they are performing. It can come directly from the job (task feedback) or verbally form someone else.

17. Organisational Culture • Organisational culture is the personality of the organisation • Culture is comprised of : • “The shared philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes and norms that knit a community together.”

18. Culture • Basically, organizational culture is the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs (artifacts) of organization members and their behaviors. • Members of an organization soon come to sense the particular culture of an organization. • Culture is one of those terms that's difficult to express distinctly, but everyone knows it when they sense it. For example, the culture of a large, for-profit corporation is quite different than that of a hospital which is quite different that that of a university.

19. Define Culture • Paradigm: What the organization is about; what it does; its mission; its values. • Rituals and Routines: Management meetings, board reports become more habitual than necessary. • Organizational Structures: Reporting lines, hierarchies, and the way that work flows thru the business. • Control Systems: The processes in place to monitor what is going on.. • Equations of Power: Who makes the decisions, how widely spread is power, & what is power base? • Symbols: Logos and designs, may extend to symbols of power, ie car parking spaces & executive washrooms! • Stories and Myths: build up about people & events, and convey a message on what is valued in Org

20. Levels of Culture Usual visible behavior patterns, styles of functioning, norms, rituals and ceremonies OVERT / SURFACE Hidden assumptions, values, fundamental beliefs behind decisions and actions Unconscious human nature, collective behaviors, instincts, motives and desires HIDDEN/ UNKNOWN

21. Dimensions of Culture Achievement • Concern for performance and goal accomplishment • Desire to set or maintain high standards / excellence • Drive to attain unique accomplishments Power • Concern for maintaining control • Desire for status and position for their own sake • Emphasis on authority, hierarchy and privileges Affiliation : • Desire to maintain positive emotional relationship • Concern for social contact and interaction • Emphasis on harmony and friendly relationship

22. Types of Organisational Culture

23. Types of Organisational Culture

24. Lower Level Control by fear Reactive, short-term perspective Narrow, stereotyped range of responses Trial and error learning Parts are fragmented Untrusting and exploitative Personalized conflict Higher Level Control by commitment Reflective, long term perspective Wide range and variety of responses Designed learning Parts are integrated Trust, integrity and “right” action Conflict over issues, resolved by reason Levels of Cultural Maturity

25. Models for evaluating Culture

26. Influences on organizational culture • National culture • Nation specific influences • Work-groups • Departments • Task • Importable (….crats) • Corporate Culture • Senior Management Values Commitment Sharing

27. National culture is an important influence in culture. Geert Hofstede demonstrated that there are regional differences • The members of the organization bring their own individual experiences, beliefs and values.

28. Work-groups within the organization have their own behavioral quirks and interactions which, to an extent, affects the whole system. • Task culture can be imported. That is to say, computer technicians will have expertise, language and behaviors gained independently of the organization that set them apart from their colleagues, but their mere presence can influence the culture of the organization. • Senior management may determine a Corporate Culture. They may wish to impose corporate values and standards of behavior that specifically reflect the objectives of the organization.

29. Hofstede Model • Power distance • Uncertainty avoidance • individualism vs. collectivism • Masculinity vs. femininity • Long vs. short term orientation

30. Power distance - The degree to which a society expects there to be differences in the levels of power. A high score suggests that there is an expectation that some individuals wield larger amounts of power than others. A low score reflects the view that all people should have equal rights. • Uncertainty avoidance reflects the extent to which a society accepts uncertainty and risk. • individualism vs. collectivism - individualism is contrasted with collectivism, and refers to the extent to which people are expected to stand up for themselves, or alternatively act predominantly as a member of the group or organization. • Masculinity vs. femininity - refers to the value placed on traditionally male or female values. Male values for example include competitiveness, assertiveness, ambition, and the accumulation of wealth and material possessions. • Long vs. short term orientation

31. Deal and Kennedy • The Tough-Guy Macho Culture • Rapid feedback, High Risk, …Athletes • The Work Hard/Play Hard Culture • Rapid feedback, Low risk ….Service industry • The Bet your Company Culture • Low Feedback, High Risk… Research • The Process Culture • Low feedback , Low Risk….Beauraucracy Feedback & Risk

32. Deal and Kennedy defined organizational culture as the way things get done around here. They measured organizations in respect of: • Feedback - quick feedback means an instant response. This could be in monetary terms, but could also be seen in other ways, such as the impact of a great save in a soccer match. • Risk - represents the degree of uncertainty in the organization’s activities. • Using these parameters, they were able to suggest four classifications of organizational culture: • The Tough-Guy Macho Culture. Feedback is quick and the rewards are high. This often applies to fast moving financial activities such as brokerage, but could also apply to policemen or women, or athletes competing in team sports. This can be a very stressful culture in which to operate.

33. The Work Hard/Play Hard Culture is characterized by few risks being taken, all with rapid feedback. This is typical in large organizations, which strive for high quality customer service. It is often characterized by team meetings, jargon and buzzwords. • The Bet your Company Culture, where big stakes decisions are taken, but it may be years before the results are known. Typically, these might involve development or exploration projects, which take years to come to fruition, such as oil prospecting or military aviation. • The Process Culture occurs in organizations where there is little or no feedback. People become bogged down with how things are done not with what is to be achieved. This is often associated with bureaucracies. Whilst it is easy to criticize these cultures for being over cautious or bogged down in red tape, they do produce consistent results, which is ideal in, for example, public services.

34. Charles Handy • Power Culture (Club) • Few rules, little bureaucracy, quick decision • Role Culture (Apollo) • delegated authorities within a highly defined structure • Task Culture (Athena) • Teams are formed to solve particular problems • Person Culture (Dionysus) • where all individuals believe themselves superior to the organization

35. a Power Culture which concentrates power in a few pairs of hands. Control radiates from the center like a web. Power Cultures have few rules and little bureaucracy; swift decisions can ensue. • In a Role Culture, people have clearly delegated authorities within a highly defined structure. Typically, these organizations form hierarchical bureaucracies. Power derives from a person's position and little scope exists for expert power. • By contrast, in a Task Culture, teams are formed to solve particular problems. Power derives from expertise so long as a team requires expertise. These cultures often feature the multiple reporting lines of a matrix structure. • A Person Culture exists where all individuals believe themselves superior to the organization. Survival can become difficult for such organizations, since the concept of an organization suggests that a group of like-minded individuals pursue the organizational goals. Some professional partnerships can operate as person cultures, because each partner brings a peculiar expertise and clientele to the firm.

36. Individual cum Group Exercise Define Culture of an Organization

37. Group Dynamics

38. What is A Group ? A comprehensive definition would say that is a group exists in an organization, it’s members: • Are motivated to join • Perceive the group as unified unit of interacting people • Contribute in various amounts to the group processes • Reach agreements and have differences in various forms of interactions

39. What is a Group? • A group is: • “two or more people who share a common definition and evaluation of themselves and behave in accordance with such a definition” (Vaughan & Hogg, 2002, p. 200) • a collection of people who interact with one another, accept rights and obligations as members and who share a common identity. • Criteria for a group include: • formal social structure • face-to-face interaction • 2 or more persons • common fate • common goals • interdependence • self-definition as group members • recognition by others

40. What is Group Dynamics? • Kurt Lewin popularized it in 1930’s • How groups should be organized and conducted. Democratic leadership, member participation and over all cooperation is stressed. • Another view was that it is a set of technique used. e.g. team building, brainstorming etc. It was viewed from the internal perspective of the group, as to how they are formed, their structure and processes, their functioning, the interaction within the group etc.

41. Why do individual form groups?

42. Why do individuals form groups? Propinquity • It simply means that people affiliate with each other because of geographic proximity. • e.g. The students sitting besides each other are more likely to form a group than those sitting on opposite corners of the class • The other theories are based on commonality of activity, interactions and sentiments. • One of the major element is ‘INTERACTION’

43. Why do individual form groups? EXCHANGE THEORY This is based on the reward - cost outcomes of interactions. The minimum acceptable would be that the rewards are at a minimum positive level than costs.

44. Stages of Group Development • Stages of group development • Bruce Tuckman (1965) developed a 4-stage model of group development.  He labelled the stages, Dr Suess-style: • 1. Forming: The group comes together and gets to initially know one other and form as a group. • 2. Storming: A chaotic vying for leadership and trialling of group processes • 3. Norming: Eventually agreement is reached on how the group operates (norming) • 4. Performing: The group practices its craft and becomes effective in meeting its objectives. • Tuckman added a 5th stage 10 years later: • 5. Adjourning: The process of "unforming" the group, that is, letting go of the group structure and moving on.

45. Types of Group There are different types of groups. Each group has a different bearing on its members. Primary Groups A primary group is smaller in size (generally no number is assigned to define ‘small size’, but it should be small enough to facilitate one -to -one interaction & face - to - face interaction). In addition it has a higher degree of comradeship, loyalty and a common sense of values amongst it’s members. E.g. Family & Peer group.

46. Types of Group • Coalition • Interacting group of individuals • Deliberately constructed by the members for a specific purpose. • Independent of the formal organization structure • lacks a formal internal structure • Mutual perception of membership • Issue-oriented to advance purpose of members

47. Types of Group • Formal Groups • They are constituted with a specific purpose. • Members of this group are normally not by choice • Number of members are normally restricted. • Members are not homogeneous in nature • Vide variety of skill sets.

48. Informal Group • They are not constituted. • Voluntary membership • Number of members are not normally restricted. • Members are generally homogeneous in nature • Vide variety of skill sets. • E.g. interest group, friendship group, membership group, etc.

49. Sources of Group Effectiveness • Organizational context • Goals • Resources • Group resources • Knowledge • Motivation • Leadership • Group structure • Formal structure • Group roles • The task • Extent of interdependence • Complexity

50. What is Cohesion? • “…The ‘cement’ binding together group members and maintaining their relationships to one another” • “The resultant of all the forces acting on the members to remain in the group” • The attraction of individuals to the team or group itself, where the individual defines herself as a member of a group, rather than as an individual