Management and Organisational Behaviour

7th Edition

PART 1
Management and
Organisational
Behaviour

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

Management and Organisational Behaviour

7th Edition

CHAPTER 2

The Nature of Organisational

Behaviour

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.3

The study of organisational behaviour (OB)

embraces an understanding of -

The behaviour of people

The process of management
The organisational context of management
Organisational processes and the execution of
work
Interactions with the external environment of
which the organisation is part

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.4

The meaning of OB

OB is a convenient shorthand that refers to the numerous

interrelated influences on, and patterns of behaviour of
people within organisations

Porter, Lawler and Hackman

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.5

The meaning of OB

Wilson challenges what constitutes OB &

questions whether we should be interested only
in behaviour that happens within the
organisation. She suggests that we need to look
outside of what is normally thought of as
organisations & how we usually think of work

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.6

The meaning of OB

Wilson believes that we can gain an insight into

organisational life and behaviour by looking at:
- what happens in rest & play
- emotions & feelings
- less organised work
- the content in which work is deferred to as mens
work
- the meaning of work for the unemployed
Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.7

Influences on OB

Individuals
Groups
The organisation itself
The environment

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.8

Individuals

Are a central feature of OB

Are a necessary part of any behavioural set
Bring to the organisation their personality, skills
and attributes, values, needs and expectations
Can create conflict if their needs and the
demands of the organisation are incompatible

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.9

Management and the individual

Managements task is to integrate the individual &
the organisation, providing a working
environment that permits the satisfaction of
individual needs & attainment of organisation
goals

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.10

Groups

Exist in all organisations

Are essential to organisational working and
performance
Comprise a range of different individuals
Can develop their own hierarchies and leaders

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.11

Groups
Can have a major influence on behaviour and
performance of individual members
Have their own structures and functions, role
relationships and influences and pressure
An understanding of group structure and behaviour
complements a knowledge of individual
behaviour
Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.12

The organisation

Individuals & groups interact within the

structure of the formal organisation
Organisational structure is created by
management to:
- establish a relationship between individuals &
groups
- provide order and systems to direct efforts of
the organisation into goal seeking activities

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.13

The organisation
The formal structure allows people/groups to
carry out organisational activities to achieve
aims & objectives
Behaviour is affected by patterns of
organisational structure

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.14

Environment

The environment affects the organisation through:

technological & scientific development

economic activity
social & cultural influences
government activities

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.15

Environment

The effects of the operation of the organisation

within its environment are reflected in the:
management of opportunities & risks
successful achievement of organisational aims
& objectives

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.16

Environment its rate of change

The increasing rate of change in environmental

factors highlights the need to study the total
organisation & the processes used to adapt to
external demands
Example: globalisation has placed greater emphasis on
organisational processes rather than organisational
functions

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.17

Contrasting but related approaches

Psychological
Looks at individuals
within the
organisation

Sociological
Looks at human behaviour in
society

A broader approach

A narrow approach

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.18

Behavioural science a multidisciplinary

approach
A multidisciplinary behavioural science approach can
make an important contribution to the field of OB
Behavioural science has three main disciplines:
- Psychology personality systems
- Sociology social behaviour
- Anthropology science of mankind &
study of human behaviour (cultural
systems)

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.19

The organisational iceberg

One way to recognise why people behave as

they do at work is to view an organisation as
an iceberg
What sinks a ship isnt always what sailors can
see, but what they cant see
Hellriegal, Slocum, & Woodman

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.20

The organisational iceberg

Figure 2.3

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western
Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning:
www.thomsonrights.com. Fax 800 730 2215.

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.21

Figure 2.3

The organisational iceberg

Formal (overt) aspects

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western
Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning:
www.thomsonrights.com. Fax 800 730 2215.

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.22

The organisational iceberg

Behavioural (covert) aspects

Figure 2.3

Source: Don Hellriegel, John W. Slocum, Jr and Richard W. Woodman, Organizational Behavior, Eighth edition, South-Western
Publishing (1998), p.6. Reprinted with the permission of South-Western, a division of Thomson Learning:
www.thomsonrights.com. Fax 800 730 2215.

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.23

The organisational iceberg

Formal (overt) aspects

Customers
Technology
Formal goals
Organisational design
Financial resources
Physical facilities
Rules & regulations
Surface competencies & skills
Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.24

The organisational iceberg

Behavioural (covert) aspects

Attitudes
Communication patterns
Informal team processes
Personality
Conflict
Political behaviour
Underlying competencies & skills
Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.25

Challenges of management
People, capital, & technology
somewhere within our views or organizations we need to
acknowledge the differences between machines and
man.
the question of time is crucial, both because we humans
operate in time with the past, the present & the future
assuming importance and because they are phases,
sequences of times and rhythms which are essentially
human.
Gratton
Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.26

Organisational metaphors

Machines
Organisms
Brains
Cultures

Political systems
Psychic prisons
Flux & transformation
Instruments of domination

Morgan

The metaphors are not fixed categories and are not

mutually exclusive

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.27

Orientations to work
Instrumental orientation individuals view work as a means to an end,
there is a calculative or economic involvement with work
Bureaucratic orientation work is defined as a central life issue, there
is a sense of obligation to the work of the organisation & positive
involvement in terms of a career structure
Solidaristic orientation work situation is viewed in terms of group
activities, there is an ego involvement with work groups rather than with
the organisation itself, work is more than just a means to an end
Goldthorpe et al.

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.28

Challenges to work ethics

Division of labour work has been fractured in task and sub divided
into special sub tasks
Destruction of continuity in employment individuals are likely to reenter the job market several times, jobs are no longer for life
Herman

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.29

Figure 2.4

Management as an integrating activity

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.30

The psychological contract

The series of mutual expectations & satisfaction of
needs arising from the people / organisational
relationship
Process of giving & receiving by the individual & the
organisation
Covers a range of expectations of rights and
privileges, duties and obligations that do not form
part of the formal agreements but still has important
influence of peoples behaviour
The significant of the contract depends on the extent
it is perceived to be fair
Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.31

Formula for balancing unwritten needs of

employees with the needs of the organisation
Caring demonstrating genuine concern for
individuals
Communicating really talking about what the
company hopes to achieve
Listening hearing not only the words but also
what lies behind the words
Knowing - those who work for you, their families,
personal wishes, desires & ambitions
Rewarding money is not always necessary
Stalker
Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.32

Moral contract
Increasing global competition & turbulent change
requires a management philosophy grounded in a
different moral contract
People should not be seen as a corporate asset
from which value can be appropriated, but as a
responsibility and a resource to be added to
This demands more from individuals to abandon
the idea of lifetime employment & embrace the
concept of continuous learning & personal
development
Ghosal et al.

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.33

Factors leading to an increase in the global

business environment

Improvements in international
communication facilities
International competitive pressures
The spread of production methods & other
business processes across nations &
regions
International business activity, e.g. overseas
franchising or licensing agreements

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.34

Figure 2.6

Defining & conceptualising culture

A model of culture

Source: Reproduced with permission from F. Trompenaars and C. Hampden-Turner, Riding the Waves of Culture,
Second edition, Nicholas Brealey (1999), p.22.

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.35

Figure 2.8

Factors affecting national culture

Source: Reproduced with permission from Ian Brooks, Organisational Behaviour: Individuals, Groups and
Organisation, Second edition, Financial Times Prentice Hall (2003), p.266, with permission from Pearson Education
Ltd.

Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.36

Five dimensions of culture

Power distance
Uncertainty avoidance
Individualism
Masculinity
Confucian work dynamism
Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005

OHT 2.37

Cultural differences that can affect OB

Relationship & rules

Individual or collective preferences
Type of societies - neutral or emotional
societies
Diffuse or specific culture
Achievement-based societies
Time
Attitude to the environment
Trompenaar
Mullins: Management and Organisational Behaviour, 7th edition Pearson Education Limited 2005