Organizational Behavior
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Transcript of Organizational Behavior
Nelia Alibin, Ph.D.July 10, 2010
Organizational behavior is concerned with the study of the behaviors/attitudes, culture and performance of employees in organizational settings;
The organization’s informal group’s effect on employees perceptions, attitudes and actions;
The environment’s effect on the organization, its structure and goals and the effect of individual employees and groups of employees on the organization and its effectiveness. (Mark J. Wallace)
Understand the behavior s and attitudes of individuals, groups and formal organizations to adequately study organizational behavior
Formal organizations, informal groups and environment influence individual attitudes, behavior and performance
The interrelations among individuals, groups, organizations and environments must be made explicit to unravel managerial issues
To comprehend OB it is necessary to delve into behavioral sciences and to employ the methods of science that characterize research in these disciplines
OB is a blending streams of theory and researchThe field places equal weight on understanding the behavior and performance of individuals, groups and formal organizationsIt recognizes the importance of environmental influences on each of these aspects of organizations
Nelia Alibin, Ph.D.July 10, 2010
The best means of societal change and forward movement are education and organizational development (S. Foster)The only constant in organizations today is change (C. Handy) Not to change is a sure sign of imminent extinction. (Sir John Harvey‐Jones)A universal change principle is that: People do not hate change, it’s that people hate to be changed. (G. Helling)All real management is change management. (Z. Barry)The only good theory is a practical one. (K. Lewin)
Globalization/ InternationalizationPerformance – Quality IssuesDiversity – Participation IssuesDistance – Geographical IssuesCost Reduction – Revenue pressuresStaff Shortages (management/ staff ratios)Brain‐Drain‐Diaspora IssuesICT Capacity issues: Cost, training, uses
Needs for increased efficiencyIntegrity‐Ethics‐CSR IssuesAIDS/HIV, healthcare issuesPressures for better internal HRD/ HRMCross Cultural and Language IssuesIncreased social and public issuesOthers (suggest, discuss these further)
Creating different avenues whereby all employees at all levels have possibilities to propose small, medium or even radical changes that may make BIG differences.Finding an optimal balance between innovation and efficiency at any point in time and place within organizationsExercise in creative thinking
Problem: How many uses for “x” are there?Fluency (no. of ideas generated)Flexibility (no. of categories)Elaboration (no. and types of models)Originality (p<.05 . . . Rare)Practicality (solves a real problem)
n.b. If I am not very good at some of these, I need someone on my team who is . . .
2. Growth
1. Birth3. Maturity
4. Revival5. Dissolution
Naturally‐occurring change – development, aging, forgettingIntentional, planned change – trying to learn, to make a difference, to rememberChanges at four levels: individual, group, organizational and societalNaturally occurring resistance to change on the same four levels
Long‐range efforts, programs aimed at improving organizational ability to survive, and eventually to prosper by changing problem‐solving and renewal processes.Organizations naturally change over timeThe idea is for OD to guide this process purposefully.
Answer these questions for yourself then compare answers with your colleague(s)?
http://www.change‐management.com/tutorial‐change‐process‐detailed.htm
How natural is change? Example?How natural is resistance to change? Why? What resistances are we facing?How is change traditionally managed in organization such as yours?How is resistance traditionally managed in organizations?Why should we want to do it differently?
C=f(D x S x P) > x
Where:C= ChangeD= DissatisfactionS= Identifiable, desired end‐state (benefit)P= a practical plan to achieve the end stateX = the costs of change to the institution
On the next page is a series of questions in two categories: a) innovative climate b) resource supportRate a target organization as “Org A” Rate a comparison organization as “ Org B”And then rate your “Ideal(target) Org. profile.
Discuss the actual‐ideal gaps in terms of how to bridge them in the future
Measures:1. Creativity is encouraged
2. People are allowed to solve the same problems in different ways
3. People are given free time to pursue creative ideas
4. Publicly recognizes and rewards innovators
5. Flexible and always open to change.
Opposites
Scoring: 1 – Strongly Disagree; 2 – Mildly Disagree; 3 – No Opinion; 4‐Mildly Agree; 5‐ Strongly Agree
Scoring: 1 – Strongly Agree; 2 – Mildly Agree; 3 – No Opinion; 4‐Mildly Disagree; 5‐ Strongly Disagree
6. Peoples’ primary job are to follow orders from the top.7. The best way to get along here is to think and act like others.8. This place seems to be more concerned with the status quo than with
change.9. People are rewarded more if they don’t rock the boat.10. New ideas are great, but we don’t have enough people or money to
carry them out.
Change
Complexity
Slow
Simple
Moderate
Fast
Moderate High Complexity
Administrator
Manager
Leader
Uncertainty
Efficiency
Effectiveness
Planned interventionsOrganization‐wide activityLead from top (typically)Increases organization effectivenessUses behavioral science knowledge to achieve meaningful, beneficial changes
. . . is based upon:Respect for peopleTrust and SupportPower EqualizationConfrontation
Characteristics Focal Area
Change Change is planned by managers to achieve goals
Collaborative Approach Involves collaborative approach and involvement
Performance Orientation Emphasis on ways to improve and enhanceperformance
Humanistic Orientation Emphasis upon increased opportunity and use of human potential
Systems Approach Relationships among elements and excellence
Scientific Approach Scientific approaches supplement practical experience
Goals Percent of Organization
Increase Productivity 20
Increase responsiveness to clients 19
Improve competitive positioning (increase productivity/ decrease costs)
19
Increase employee involvement and participation 19
Increase employee morale 18
Develop new managerial skills and strategies 14
STAGE 1
Anticipate Need for Change
STAGE 2
Develop the practitioner‐client relationship
STAGE 3
The Diagnostic Phase
STAGE 4
Action Plans, Strategies and Techniques
STAGE 5
Self Renewal. Monitor and Supervise
Stage 1: Anticipating Need for ChangeSomebody recognizes needs for changeThere must be felt needs for change, i.e. dissatisfaction with the status quoBelief exist that changes are necessary, desirable and possible
Stage 2: Developing practitioner‐ client relationshipsOD practitioner/ consultant enters systemGood first impressions and fit are importantPractitioner establishes mutual trusts, open communication, shared responsibility
Stage 3: The Diagnostic PhasePractitioner and client gather data about systemIdentify the true state of affairsObjectives are to understand client’s problems, identify forces causing situation and select change strategies
Stage 4: Action Plans, Strategies and TechniquesSeries of interventions, activities or programs aimed at increasing effectivenessPrograms apply OD techniques
Stage 5: Self‐renewal, monitor and stabilizeAs OD program stabilizes, need for practitioner decreasesMonitor resultsStabilize ChangeGradual disengagement of OD practitioner/ consultant
Intergroup developmentProcess ConsultationSensitivity TrainingSurvey FeedbackTeam Building
Lack of top‐level support and/or actionInsufficient communication/ feedbackPeople don’t know what, why or how!Reward systems do not change or supportTechnical Focus leaves people outResistance is unanticipated/ poorly managedInsufficient training (team and technical)Timing Issues (too fast or too slow)Others, examples? discuss
Definitions:Strategic Performance management is a system and set of processes to ensure alignment of all organizational activitiesPerformance Management attempts to specify, assess and improve performance at all levels: individual, group and organization‐wide
Alignment (Strategy) Alignment (Tactics)
Vision Objectives
Mission Operations
Longer‐Term Goals Outcomes
Strategies Feedback
Performance Management
Characteristics Significant Some None
Management team created a sense of urgency
84% 38% 9%
Strategy translated into a balanced scorecard
84% 41% 0%
Key performance indicators aligned on all levels
72% 39% 0%
Everyone knows the strategy 56% 32% 0%
Individual + team targets are aligned with the strategy
42% 26% 0%
Balanced scorecard is an integral part of the strategic planning process
100% 40% 0%
Budgets are aligned with the strategy 42% 29% 0%
Source: “The future of the balanced scorecard: Prof Robert S. Kaplan”
FLUCTUATING =
STRONG VISION
+
WEAK IMPLEMENTATION
GOOD PERFORMANCE =
STRONG VISION
+
STRONG IMPLEMENTATION
GOING NOWHERE =
WEAK VISION
+
WEAK IMPLEMENTATION
CONSERVATIVE =
WEAK VISION
+
STRONG IMPLEMENTATION
VISION
IMPLEMENTATION
EXCELLENT PERFORMANCE MANAGEMENT
Source: Power of Performance Management, How Leading Companies Create Sustained Value, A.A. de Waal, John Wiley and Sons, 2001
What?Systematic definition of mission, strategy and goals of the organization
How?Making sure goals and objectives are measurable and manageable
Why?Being able to keep the organization on track and aligned
1. High Quality Management Information Reporting
2. Timeliness of Information
3. Efficient communication,
common language,
common goals
4. Aligned Culture
Qualitative
BENEFITS
Quantitative
Short Term Long Term
TIME SCALE
0
20
40
60
80
100
120
organizations without structured
PM
organizations with structured PM
Chart Title
seen as industry leader over the past 3 years
financially ranked as the top 3 of its industry
last major cultural or operational change as very successful
3‐year ROI
degree
of success
degree
of success
0 10 20 30 40
best in class
average
laggards
% market share in profitable segments
% gross margin
Source: Aberdeen Group, Closed Loop Corporate Performance Management Benchmark Report,” 2005 (150 organizations from America, Europe and Asia).
Performance Factors Effect of Performance Management
Reaching Organizational Goals Positive
Higher Quality of Work Very Positive
More Innovation Positive
Source: “Quest for Balance , “ A. A. de Waal, John Wiley & Sons, 2002
CLARITY on goals to be achievedCLARITY on responsibilitiesCLARITY on tasksCLARITY on results achievedCLARITY on consequences of non‐performanceCLARITY on support to be expectedCLARITY on timelinessCounteracts escape + shunning behaviorsFosters teamwork
Is this the situation in your organization?Performance information is transparent, customisedand timelyAnalyses are clear (not only “what” but also “why”)Efficient Management discussions (vertical + horizontal)Managers + employees understand business processes and “think” constructively about theseSwift (corrective + preventive) actions where needed“Everyone typically know what to do!”
Achieve sustainable performance increasesAct as change levers to develop a more performance‐oriented cultureIncrease worker motivation and commitmentEnable people/ groups to develop abilities, increase job satisfaction and achieve full potential benefitting the whole organization Develop constructive and open relationships between workers and managers in a continuing dialogue linked to the worked actually being done throughout the yearProvide opportunities for people to express aspirations and expectations about their work
Create continuous improvementSupport planning or organizatinal activitiesReinforcement of organizational leadershipRewards and recognitionsInfluencing employees’ attitudeCreate benchmarksIndividual and organizational learningFocus and justification of strategic decisions
Feasibility Analysis Questionnaire (4 – fully; 3 – partially; 2‐ not enough; 1 – no)
1. Do organizational members acknowledge that the current performance management system does not provide them with sufficient support?
2. Do members agree on the necessity and the importance of performance management?
3. Is the organization itself stable?
4. Is the organization’s working environment stable?
5. Do organizational members agree on the starting time of the performance management improvement project?
6. Are enough resources available for the performance management improvement project?
7. Are there members that have earlier (++) experiences with performance management?
8. Do organizational members have clear insight into the market and their position in it?
9. Has the organization a mission and a strategy?
10. Do organizational members have insight into the business processes, the organizational structure and the relationships between these?
11. Does the organization have an open communication structure?
12. Ready to start the strategic performance management improvement project?
SOURCES OF INNOVATION
Human Resources: people, groups
Structural Variables
Organizational Culture
“People in groups using their collective intelligence to produce changes aimed at improving their situations.”
“. . . Aligned individuals whose members spontaneously learn and innovate in ways that promote the well‐being and mission of the organization.” (Senge, P.)
Like individuals, organizations are born with varying degrees of intelligence and potentials to act to increase their intellectual competence and their performance capabilities.
“effectively developing and synergistically using collective intelligence can depend upon how well individuals learn to function together as teams.”
Basic Assumptions:Everyone can be a source of useful ideas:Learning flows in many directions, as such it may not be directly aligned to organizational hierarchies;All new ideas are potentially valuableHuman potential is largely untapped.
Balanced Scorecards – leading indicatorsBenchmarking –systematic ratings;Time in relation to speed (customer)Employee MotivationImportance of R&D and Training and Educ
Organizational IQ as Q ratio (assets/value)Organizational SWOT/ PEST AnalysesTeams that develop, preserve and apply knowledge;PERFORMANCE MANAGEMENT to develop HIGH PERFORMANCE ORGANIZATIONS
Organizations change with experienceOrganizations can fail to learn from their mistakes and suffer attendant consequences – “avoidance reaction”Organizations learn from events in their environments in ways that can be more or less adaptive or reactiveTraining and development policiesInvestment in research
Proactive learning (double loop) vs reactive learning (single loop) {Argyris}http://www.infed.org/thinkers/argyris.htm
A flourishing, open, challenging community of people who regularly share knowledge and learning across the system so that innovation and speedy implementation can occur.
In short, a lively and exciting place to work – a place where people feel that their contributions are truly appreciated.
The need to design a process of implementation that enables organization members to learn is critically important in the field of organizational change. Indeed, it is what organizational change is about.”
Beer and Nohria: “Breaking the Code of Change”
New or Improved:Attitudes (e.g. professionalism)Behaviors ( e.g. communication skills)Capabilities (e.g. problem‐solving skills)Converting challenges into opportunitiesInterpersonal Skills (e.g. cooperation)Increased team performancePersonal and corporate valuesCorporate Culture
Others (discuss)
. . . the ability to apply prior learning in order to find and solve problems in new situations –transfer of knowledge and skills in the workplace
Learning to Learn – carry‐out lifelong learning for organizations that practice continuous improvement.
Prompted by trends e.g. globalizations/ diversityTechnological changesRising expectations
Mindful leadership:Creates shared vision“Servant” leadership http://www.leadersdirect.com/servant‐leadership“Social” architecturehttp://www.thepracticeofleadership.net/2008/03/24/leader‐as‐social‐architect/
EmpowermentEmergent StrategiesWell developed corporate cultureFull information / Sharing / FeedbackHigh performance
The Learning Organization
Focus (P. Senge)
Systems Thinking
Mental Models
Team LearningShared Vision
Personal Mastery
1. CreateDegrees of openness, space and encouragement
Breadth – the use of both internal and external perspectives
Depth – single vs double loop (self‐correcting) learning
2. Capture and CommunicateEffective use of systems and media to transmit learning
Degrees to which tacit becomes explicit knowledge through teamwork, review processes and database codification
Known availability/ use of channels to disseminate learning
3. CapabilityEncouragement of working across boundariesEmpowerment to act on one’s learningEncouragement to coach and develop individuals“silos” are seen as inhibitors (hence BPR)
4. CementingLeaders actively model change = they think and behave as learnersRewards and sanctions reinforce importance of learning, openness and implementation of best practices
5. Human ChallengesBasic questions can be questionedTolerance of mistakes – mistakes are seen as being new learning opportunitiesPeople can speak their minds openlyPeople are open to challenge and being challengedFrom WIIFM to WIIFUS (what’s in it for us)
Five steps develop by Garvin (HBR)1. Systematic problem solving2. Research and development3. Learning from own and other’s experiences4. Storing and transferring knowledge
(continuous improvement –knowledge management)
5. Developing an in‐house team to apply accumulating knowledge (entry level training coupled with continuous professional development program)
Continuous improvementInnovation
____________________________________
Re‐alignmentTransformation
Early Adopters
Early Majority
Later Majority
Laggards
No people
inform support negotiate convince Ignore + enforce
Time
facilitate
Pressure for Change
Shared Vision
Involvement of Mgt
Involvement of Employees
Link with Culture
Perfect Mgt
LASTINGCHANGE
No action
No direction
No role model
No support
No insitutionalization
No result
LASTING CHANGE
Reasons why? . . . To be proactiveWhat it is? . . . PreparednessWhat it isn’t? . . . It’s not specific planningRefer back to the Global Trends driving change and imagine forward to the coming 6 years. How can we prepare best for our uncertain futures?
Purpose of this exercise is to prepare for change in an uncertain (e.g. changing and complex) futureActivity has sequential phases, each step building upon the nextFinal product is a set of most likely, best case and worst case scenarios for your organization, over the coming five years
Imagine we are now living in year 2015! We/ our institutions have survived, yes some have even prospered, and it is time to sketch the history of our past five years going back to the 1st SemAY2010 we did together in USEP.There have been many challenges, setbacks, victories and surprises. Use you imagination and reverse timeline (see next p.) to sketch the main events faced over the past five years since June/July 2010.
2015201420132012201120102009
Please imagine it is now July 2015! Picture your institution as it must be now, how has it changed since 1st Sem AY 2010.
For each year, outline key developments and events that occurred in that year. (20‐30 minutes)
Try to generate scenarios: best case futures and worst case possibilitiesThe results of this activity will form a basis for group discussions/ decisions on moving your organization from good to great in the coming years(see Jim Collins, From Good to Great)
http://www.jimcollins.com/article_topics/articles/good‐to‐great.html
Level 5 Leadership: Leaders who are humble, but driven to do what's best for the company.First Who, Then What: Get the right people on the bus, then figure out where to go. Finding the right people and trying them out in different positions.Confront the Brutal Facts: The Stockdale paradox ‐ Confront the brutal truth of the situation, yet at the same time, never give up hope.Hedgehog Concept: Three overlapping circles: What makes you money? What could you be best in the world at? and What lights your fire?Culture of Discipline: Rinsing the cottage cheese.Technology Accelerators: Using technology to accelerate growth, within the three circles of the hedgehog concept.The Flywheel: The additive effect of many small initiatives; they act on each other like compound interest.