PROFFESSTIONAL AND INDUSTRIAL STUDIES CE309

ORGANISATIONAL BEHAVIOUR (27/03/96) (Mugwindiri)

Aim
Introduce organisational behaviour and explain its importance to the engineering manager.

Recommended Texts
a) D Torrington & L Hall; Personnel Management, A new Approach
b) J Storey ed. New Perspectives On Human Resources Management

Definition
It is the study of people at work. The systematic study of the action and attitudes that people exhibit within
organisations. The study of OB is important to the engineering manager as this assists him to predict,
explain and control human behaviour. It studies factors that affect productivity, absenteeism and turnover
(rate at which people leave an organisation). More specifically we examine the basic concept of values,
attitudes, personality, learning, motives, perception, job design and group behaviour.

Values
Motivation
Attitudes
Perception Individual behaviour
Personality
Learning
Ability

(Key variables affecting individual behaviour)

Values
These are basic convictions that a specific code of conduct is socially correct or preferred. The set of values
form a value system. The value system is defined by the importance attached to issues like freedom,
honesty, self respect, equality, obedience and pleasure. Values are relatively stable are based on those
values originally as accepted as children’s.

There are seven types of values;

Level 1 ; Reactive
React to physiological needs, are unaware of themselves to others e.g. babies.

Level 2; Tribalism
High dependency on others, influenced by tradition and power exerted by others.

Level 3; Egocentric
Individual are aggressive, selfish and respond to power.

Level 4; Conforming
Unable to tolerate those with different values

Level 5; Manipulative
Materialistic and seek higher status often by manipulating others to achieve their goal.

Level 6; Sociocentric
They are repulsed by those in levels 3, 4 and 5. They try to get on with others (nice guys).
Level 7; Exicentral
High tolerance of others with different values. Opposed to status symbols and arbitrary use of power.

Older Employees
Generally characterised by levels 2 and 4. Those who entered industry in the 1960s are usually in level 7.
Those who entered in the 1980s and 1990s are in level 5.

Attitudes
These are evaluative statements (either favourable or not) concerning people, object or events. They reflect
personal feeling.

Job Related Attitudes

Job satisfaction, involvement and commitment. A person with a high level of job satisfaction generally
holds a positive attitude towards the job.

Core Construct Attitudes

Central to us and difficult to change.

Peripheral Attitudes
Due to events that may have happened.

Attitudes are often shared within an organisation and as such are included in the culture of that
organisation.

Theory of Cognitive Dissonance

It is the tern given to the discomfort felt when you act in a way that is inconsistent with our true belief. We
are motivated to reduce its impact. The process of attitude change is dependent on 3 key factors;
a) if the rewards of ignoring dissonance are high
b) if dissonance is seen by individual to be externally imposed
c) if underlying features are not important

Discrepancies between attitudes and behaviour occur due to group and social pressures.

Personality
This is what you can see about a person. There are surface traits (conspicuous and evident) and source/
underlying traits (hidden). There are 4 key personal attributes. These appear to have direct relevance in
explaining and predicting behaviour.

Locus of Control
This basically refers to whether the individual perceives outcomes as controlled by themselves or external
control. People with an internal locus of control believe they can control their destiny, are satisfied with
their jobs and are highly involved and they evaluate their performance.

People with an external locus of control believe life is controlled by outsiders and tend to be less satisfied
by their jobs, reluctant to criticise themselves, less involved and tend to blame others for their failure.

Authoritarianism
It is belief that there should be status and power differences between people in organisations. Intellectually
rigid, judgmental of others, differential to superiors (yielding to superiors). They perform very well where
conformity to rules and regulation is required. They are happy working in a structured environment and are
unsuitable for a job where a high sensitivity and tact is required.
Machiavallianism
Pragmatic (treat things from a practical point of view), maintain their emotional distance (emotionally
stable) and are highly manipulative. They perform very well where bargaining skills are required and where
there is a high reward for success. They believe that the end justifies the means. These are forceful and
relentless.

Risk propensity
Individuals who tend to make rapid decisions and tend to use very little information. Perform badly where
great care is required e.g. stock broking, auditing etc.

Personality Types

Realistic Investigative

Conventional Artistic

Enterprising Social

(neighbouring types are related while opposite ones are not)

Perception
It is a process by which individuals organise and interpret their sensory impressions to give meaning to
their environment. Different individuals can observe the same thing and perceive it differently. Two
theories of perception are;

Attribution theory
When we observe behaviour we classify it as being internally or externally caused. This depends on
distinctiveness, consensus and consistence. The internal forces relate to personal attributes such as ability,
skill, fatigue or effort. External forces relate to environmental factors such as organisational rules and
polices (which are beyond personal control)

Perception is also used in making quick judgements about people and situations. Often we cannot
assimilate all we observe so we engage in selective observation and make quick judgements.

The Halo-effect
It is a process by which the perception of a person is formulated from the basis of a single favourable or
unfavourable impression. So the halo-effect tends to shut out other relevant characteristics of that person.

Learning
It permanent change of behaviour as a result of experience.

Environment

Law of effect

Modelling Shaping

Behaviour

(the process of learning)

Shaping
Learning takes place in gradual steps and is often reinforced by rewards after each step.

Modelling
Responsible for rapid change in behaviour, usually on our observation of a role model.

Motivation
It is the willingness to do something to satisfy a need. Examining the basic motivational process we see that
an unsatisfied needs create a tension which stimulates a drive which generates a surge to find or achieve
particular goals which if attained will satisfy the need, thereby reducing the tension;

Unsatisfied need

Tension

Drives

Search behaviour

Satisfied need

Tension reduced

Maslow’s theory of heirachy of needs

Basically people are wanting beings, they will always want more. These are satisfied in order, as one level
becomes satisfied the next becomes dominant.

Self
Actualisation

Esteem step 2

Social

Safety step 1

Physiological

In general the lower needs (step 1) are externally satisfied while the higher (step 2) ones are internally
satisfied.

Physiological
Homeostatic needs, (hunger, thirst, sexual desire).

Safety & security

Freedom from pain and attack and orderliness.

Social
Love, affection and friendship.

Esteem
Confidence, reputation, prestige and status.
Self actualisation
Realisation of one’s full potential.

Criticism of the theory

Needs can be fulfilled simultaneously so passing on of needs can be doubted. Job satisfaction does not
necessarily lead to an improvement in work performance. People do not necessarily satisfy their needs
through work.

MacGregor’s theory X and theory Y

He proposed two distinct views of human behaviour. MacGregor’s theory states that the manager’s view of
humans is based a certain grouping of assumptions and behaviour according to which set of assumptions he
accepts.

Theory X
Employee’s inherently dislike work and will attempt to avoid it. Since they dislike work, they must be
cohersed, controlled or threatened with punishment to achieve desired goals. Employees will shake
responsibility and seek formal direction whenever possible. Most workers place security above all other
factors associated with work and will display little ambition.

Theory Y
Employees can view work as being natural as rest or play. A person will exercise self direction and self
control if he is committed to the object. The average person can learn to accept or even seek responsibility.
Creativity is widely dispersed throughout the population (organisation) and not necessarily the sole
province of management.

Comments
The central principle of theory X is directional control. This approach can result in an authoritarian type of
management. Theory X is used where the job offers little rewards or opportunities. The central principle of
theory X is the integration of individual and organisational goals. Theory Y is used when commitment is
most important e.g. voluntary organisations.

Herzeberg’s Motivation Oblique Hygiene Theory

He proposed that certain factors were related to job satisfaction. These include achievement, recognition
and responsibility. Other factors were related to job dissatisfaction. These include company policy, working
conditions and supervision. They key issue in this theory is that removing dissatisfying factors does not
produce job satisfaction. The factors relating to dissatisfaction are called hygiene factors.

Hygiene factors
a) supervision (most important)
b) working conditions & salary
c) peers/ colleagues
d) personal life
e) surbodinates
f) status
g) job security (least important)

Motivators
a) achievement (most important)
b) recognition
c) work
d) responsibility
e) advancement
f) growth (least important)

Criticism of the theory

The opposite is dissatisfaction is not satisfaction but no dissatisfaction.
Comments
Hygiene factors are necessary to guarantee fairness of work and avoid unpleasantness at work.

Modern Motivation Theories

Three needs theory (McCllelland)

This theory suggests that there are three major motives/ needs in the workplace;
a) the need for achievement
b) the need for power
c) the need for affiliation

a) High achievers like to improve and receive encouragement. They dislike gamble but like an
achievable gamble. Money is not an incentive but may act as a means of giving feedback on
performance. Achievers only value high pay as a symbol of successful task performance and goals
achieved.
b) The need to have impact and control over situations. People in this category are concerned with
gaining power over other people and are less interested in their performance (megalomaniacs).
c) Desire to delight and be respected.

Goal Setting Theory (Locke)

Intentions expressed as goals are a major source of motivation. Statements such as “do your best’
de-motivate where as quantitative and achievable goals tend to motivate. People’s goals and intentions play
an important part in determining behaviour because they want to satisfy their needs. Difficult goals result in
underachievement.

Reinforcement Theory (Skinner)

Reinforcement conditions behaviour. the theory assumes that behaviour which is rewarded would be
repeated.

Equity Theory
It focuses on people’s feelings based on how fairly they have been treated in comparison to treatment
received by others. It is based on the exchange theory. Employees compare their rewards with their inputs.
They also compare inputs and output ratios of others. If equity is not found people may take one of the
following five actions:

a) distort their own or others’ input or output

b) induce others to change their input/ output, inciting and mobilisation
c) change their own input or output
d) choose a different comparison
e) leave the organisation

Hourly paid and underewarded people produce a low output of poor quality goods. People paid for who
consider that they are underewarded tend to produce a high number of poor quality goods.

Expectancy Theory (Vroom)

People are influenced by the expected results of their actions. Motivation is a function of the relationship
between;

a) effort expended and the perceived level of expectancy

b) the expectation that rewar5ds would be related to performance
c) the rewards must be available
 Individual effort

Individual performance

Organisation reward

Individual goals

(simplified expectancy theory)

Motivation: Implications to the Manager;

a) the manager should be able to recognise individual differences in attitudes, personalities and
values
b) there should be an effort to match people with jobs. People with a high level of achievement
should be placed in small companies. Those with a high need for power are suitable for big
organisations
c) managers should set their subordinates high and achievable goals
d) the manager should ensure that the employees perceive the goals as achievable
e) managers should have a knowledge of their employees to individualise the rewards given
f) the rewards should be linked to performance
g) equity should be ensured within the system
h) managers should remember that although goals are important, money is a key motivator

(insert job characteristic model)

Group Behaviour
A group is two or more individuals who come together to achieve a particular goal. They can either be
formal or informal. Formal groups have a define structure, tasks and objective. Informal groups have an
undefined structure and needs for social contact (sangano rechapu).

Group Classification
a) Command Group - comprises subordinates who report to a section leader (mahobho)
b) Task Group - intact discipline established to accomplish a specific task e.g. disciplinary
committee
c) Interest Group - comprises of people who come together to achieve a particular objective
although they are not organisationally alike e.g. trade unions
d) Friendship Group - social group formed on an informal basis (boozers’ club)

Groups form for a number of reasons;

a) affiliation - people join groups to fulfil their need for social interaction
b) security - people believe that there is strength in numbers (trade unions, demonstrations)
c) power - groups give power to their members
d) status - people join groups which other people recognise as important
e) self esteem - the inclusion of a person in an important group increases their self esteem. An
important person coming into a group raises the net worth of the group
f) groups can be formed to solve a particular problem e.g. demonstrations

Group Development
It is a dynamic process. Although groups are in a continuous state of change, four specific phases can be
identified.

(insert stages of group development)

Forming
In this stage members are uncertain of their purpose, group structure and leadership. This stage is complete
when members accept their group role.

Storming
Characterised by intra-group conflict over the heirachy / leadership. This phase is complete when the
heirachy has been established.

Norming
In this phase close relationships develop and a cohesive group forms. This phase is complete when the
members develop a common acceptance of behaviour and expectancy.

Performing
The group is relatively stable and functional. The hierarchy and relationships have been accepted and the
emphasis is now on performance and achievement of goals.
Group Structure
To understand it we must examine three basic concepts; roles, norms and status

a) Roles - all members of a group assume a particular role and the key to understanding behaviour
is to identify the role played by a person. Certain attitudes and behavoir are consistent with a role
(role identity). A person’s view on how they should behave in a particular role is termed role
perception and this is based on the interpretation of how we believe we are supposed to behave in
certain situation. This introduces a physiological contract which is unwritten, i.e. an unspoken
agreement between employer and employee concerning each other’s role.
b) Norms - all groups have established norms i.e. acceptable standard of behaviour. There are some
common norms whish develop gradually as group members learn what is necessary for a group to
function effectively. Norms develop through statement made by group leaders, history, how group
members follow accepted precedence and carry over in which norms are imported as members
join from other groups. Norms assist the group to survive and also the members to predict the
behaviour of others. Norms reduce personal embarrassment as members know how to behave
within a group.
c) Status - grading or ranks within a group. It can formally be given by title or informally by other
members of the group. Low status personnel usually work smoothly if their actions are initiated by
high status personnel. Similarly if high status personnel believe that their action are stimulated by
low status personnel problems may occur.

Group Behaviour
Variables affecting group behaviour are;
a) Personality - plays an important part in determining group behaviour
b) Group size - affects the overall behaviour of the group. Five to seven is the optimum size.
c) Similarity - heterogeneous perform better than homogenous as they posses more diverse abilities
and a wider skills range.

Group Cohesiveness
It is influenced by;
a) time spent together
b) severity of initiation
c) group size
d) external threats increase cohesiveness
e) previous successes increases team spirit and cohesiveness
HUMAN RESOURCES MANAGEMENT

a) Personnel
b) Hard
c) Soft
d) Business
e) Span of focus
f) Labour process

Definition
It is the set of polices designed to maximise organisational integration, employee commitment, flexibility
and the quality of work. HRM considers people as its most important asset in order to get productivity and
quality by forging a close relationship between management and the workforce. HRM can be considered
under four main areas.

Integration
This is the integration of human resources policy and the strategic plan. This should filter on to integrating
the human resources policy with management polices, emphasizing the attitude and behaviour of line
managers.

Commitment
The importance of commitment is based on the assumption that committed workers will be more satisfied,
productive and adaptable.

Flexibility
Only becomes feasible if employees at all levels display high organisational commitment, trust and high
level of motivation.

Quality
The HRM policy should ensure good quality of the processes, products and staff both in terms of
performance and public image.

The Hard and Soft Versions

Company A Company B
(soft – motivation , (hard – firm alignment of
team work, leadership) employees with company needs)

Stages of Personnel Activity Development

Social Reformer
Acolyte of Benevolence
Human Bureaucrat
Consensus Negotiator
Organisation Man
Manpower Analyst
Human Resources Management
Hard Version
Employees are treated as just another element of the input output equation. It is concerned with increasing
employee utilisation i.e. cost effective approach. Managers are bent on convincing the employees to accept
that their interests coincide with those of the organisation.

Employees are involved in the improvement of quality and productivity but are unlikely to be involved in
the decision making. Machine utilisation is considered more important than employees. Companies are
more focused on short term benefits rather than investing in people and focusing in long term benefits.

Soft Version
This approach emphasises communication, motivation and leadership. It recognises that employees cannot
be treated just as another resource because people have emotion and intellect. Thus there is more emphasis
on strategies of gaining commitment by informing employees about the company’s mission, values, plans
and also involving them in how work should be managed. A pherarist view is taken which recognises that
the needs of employees will not always be the same with those of the organisation.

Social reformer
Motivated by the excess of industrial revolution.

Acolyte of benevolence
Welfare officer, Christian charity of the employer e.g. Carlsburg, Lever Brothers, UB40, sick pay.

Human Bureacrat
Careful selection of employee, training and placement.

The Consensus negotiator

Post World War II, increasing trade union influence, national issue of influence of international
competition.

Organisation man
Considers the effectiveness of the whole organisation (Wholistic approach). Aligning the organisation and
the management development of employees.

Manpower Analyst
1980s’ human asset, accounting manpower planning emphasizing the demand and supply equation.

HRM issues
a) polices differ depending on strategy
b) can a company-wide policy work
c) will strategies always result in HRM type activity (commitment, flexibility, quality)
d) does matching HRM polices to business strategy mean reduction of labour costs

HRM activities
a) employee relations
b) recruitment
c) training
d) manpower planning
e) redundancy and dismissal
f) discipline and grievance procedures
g) payment administration
h) health and safety
i) appraisal and job evaluation
j) organisation management
k) fringe benefits
Human & Industrial Relations (employee relations and managers’ responsibilities)

Close the corporate governance gap

a) team briefing and quality circles
b) employee share ownership
c) improved supervision
d) team working and leadership
e) performance and appraisal including reward system
f) empowerment and employee involvement, flexibility
g) recruitment and selection
h) leadership
i) training and education (managers and employees)
j) health and safety

Provide conductive employee working framework by reducing stress factors

a) step up (more work in less time)
b) JIT (just in time)
c) use of outside contractors
d) technology designed to minimise indirect labour
e) DEM (design for economic manufacture) products design to reduce labour costs
f) network reduction
g) higher management control

How to increase worker participation

a) share ownership
b) make employees more careful with equipment, material and time
c) get rid of “us and them” attitude
d) incentive scheme for self esteem

Accident
“It is a random, multi-factor event which causes person(s) to fail to cope with their environment. A
dangerous occurrence is said to take place when similar random multi-factor events come together in a such
a way as to cause a non-injury accident to happen, or one that stops short of an accident taking place.”
(from the Handbook of Safety Management, Rodger Saunders, 1991)

lack of control

basic causes

immediate causes

incident loss

Contributory Factors in an Accident

a) late for work
b) hangover
c) under stress
d) made fun of by others
e) disciplined by foreman
f) annoyed
g) loss of concentration
h) distracted by work-mate
i) injury by machine
The Cost of an Accident (Iceberg)
a) injury and illness cost (medical bill, compensation)
b) ledger cost of property damage (building, tool, equipment damage)
c) uninsured (investigation time)
d) miscellaneous (wages for standing time)

Safety Responsibilities of Managers & Supervisors

a) be aware of legal requirements, codes of practice and their relevance to your plant and process
b) asses the danger involved in your work
c) develop systems of work that are both safe and without risk to health
d) ensure that employees are aware of the hazards and have trained in safe systems of work
e) investigate accidents and incidents and find ways of preventing their recurrence
f) be alert for new problems, caused changes in equipment, process or material
g) set a good example

All employees
a) cooperate by following set established safety systems
b) obey safety rules, especially those on wearing protective clothing and equipment
c) report accident without delay and take care

Safety Inspections
a) can identify problems
b) asses effectiveness of health and safety initiatives
c) must result in ACTION
d) should involve management and safety represantatives
e) inspectors should be trained

The Safety E Mix

Enforcement    Engineering

Criminal and civil law  Safer equipment
Statutory regulations  Tool design
Advisory notes  Improved machines
Professional codes of conduct 
  
  
 Safety Plan  
  
  
Environment    Education
Safer working conditions Publicity programme
Elimination of risk location Training
Make work place safer Education schemes
Recruitment
People are central to the organisational central plan hence recruitment is a necessary and important issue of
the personnel function. Recruitment should be considered in the context of overall manpower plan that is;
a) potential of the applicants for training and future promotions
b) the need to combine not just technical competence but sociability as well that how members fit
into the culture and soil structure of the organisation
c) the necessity comply fully with all legal requirements like codes of practice and also to ensure
justice to all applicants.

Recruiting
a) the need to know about the job (is the job necessary, can you use cover (kukavhira)
b) to know the type of person to do the job (qualities and attributes)
c) the best means of attracting the suitable range of applicants
d) the assessment for suitability of the candidates
e) induction into the company and follow up
f) review effectiveness of procedure

Alternatives to recruitment
a) subcontracting/ use an agency
b) cover up
c) automate
d) make job part time/ stagger (use overtime)
e) reorganise work

Effective recruitment is possible if

a) job and working conditions have been fully explained to the applicants before engagement
b) the applicant understands what is expected of her
c) their personal attributes match closely with those required for successful performance of the job
d) there is an effective induction and training

Guidelines for shortlisting

a) agree essential criteria for those to be placed on the short list
b) selectors select individual preferences and try to look for strength
c) reveal list to others to obtain consensus
d) discuss candidates and where there is no agreement make a decision
e) produce a final short list by discussion

Selection Methods
a) application forms
b) self assessment
c) telephone screening
d) interviews
e) assessment centres (employment agencies)
f) work sampling
g) references
h) testing
i) other methods
Current HRM interests
a) performance appraisal
b) leadership
c) team building
d) performance related pay
e) communication
f) suggestion schemes
g) psychometric testing
h) training
i) education
j) health and safety
k) risk analysis
l) environment

(these are not always done in ways that help New Production System (NPS), more of the latest facts is not
enough)

Moving towards New Production System (NPS)

Activities must be compatible and they must be intergrated. This requires simplicity ( a strategy which is
known and understood) and good management.

People at Work (areas of change)

a) X or Y – towards McGregor’s theory X or Y
b) Enlargement – towards greater job task variety or less
c) Individual autonomy – towards more discretion over the work performed or less
d) Group autonomy – towards more group autonomy over the work performed or less
e) Stress – towards higher stress level or less

International Economic Environment

a) volatile exchange rates
b) volatile interest rates
c) emergency of developing nations
d) growth of Trans-National Companies (TNC)
e) free trade areas
f) the fall of the iron curtain

Manufacturing Approaches
MRP (1-2)
A computer driven push system of work floor which requires great accuracy of data and strict adherence to
a schedule.

JIT (Just In Time)

A manual pull system of work floor with low stocks and short lead (ordering) time.
Pull/ demand – manufacture when there is an order
Push/ forecast – forecast on possible demand

TQM (Total Quality Management)

A combination of group solving and scientific techniques like SPC (Statistical Process Control) which seek
to create a less variable process which is tailored to a customer’s needs.

CIM
The application of computers to manufacturing.
GT (Group Technology)
Product centred manufacture. Groups of employees produce whole products (not just parts) and is usually
part of JIT.

Traditional
A push system of work floor sometimes with computers, with little attention to quality improvement and is
a process focused organisation.