1

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

CHAPTER 01--- MANAGEMENT DEFINED:

The process of attaining organizational goals by effective planning, organizing, leading and controlling the organizations human, physical, financial and other resources. Early theorists viewed management as simple as the ability to get the work done through others. But good managers accomplish the organizational goals both effectively and efficiently. To be effective is to achieve the organizational goals. To be efficient is to achieve the goals with minimum waste of resources, that is to make the best possible use of men, money, material, market and time. One of the best qualities of successful manager is being effective and efficient.
Intel Chairman Andy Grove is the Model of effectiveness and efficiency. Working out of a 165-Sq. Ft.

Cubicle, lets see what Andy Grove says in his annual report: For 2002, our net revenue of $26.8, as we still have not seen a significant recovery in the overall technology industry. Net income was $3.1 billion in 2002, up 141% from 2001(1.3 billion USD). FedEx: FREDERICK W. SMITHChairman, President and Chief Executive Officer of FedEx is
another example of effectiveness and efficiency as he says: In FY02, we executed well according to our plan and, despite a sluggish economy, we came through with the flying colors of all our operating companies. FedEx Corporation delivered a solid financial performance while growing revenues, managing costs and balancing resources. Annual revenue increased 5% to a record $20.6 billion. Net income increased 22% to a record $710 million ORGANIZATION: An organization is a group of people working together in a structured/defined pattern to achieve the goals. The goals may be generation of profits or rendering religious, social or cultural services. The two most important things according to this definition are planned structure and common goals. If the goals are not identified, and the structure is not defined, then its just a mob but not an organization. Organizations can be categorized as Goods producing or Service rendering Profit or non profit Public Sector or Private Sector. THE FUNCTIONS OF MGT. To be effective and efficient, what can managers do? The answer is simple and can be explained by going through the 4 traditional functions of management. PLANNING: Planning has been defined in different manners by management gurus as: Henry Fayol & Koontz: Planning is the process of selection of objectives. It is an intellectual process including the conscious determination of course of action, the line of action to be followed, the stages to be gone through, and the methods to be used. Bateman & Snell: Planning is the management function of systematically making decisions about the goals and activities that an individual, group, a work unit, or the overall organization will peruse in the future. Planning activities involve analyzing the current situation, anticipating the future, determining objectives, deciding in what types of activities the company will engage, choosing corporate and business strategies and determining the resources needed to achieve the organizational goals. In 1971, three entrepreneurs opened the original Starbucks store in Seattle, selling only coffee beans and accessories. Howard Schultz was hired to handle marketing. He had a plan to open coffee bars across the United States. Along with some investors he purchased the six Starbucks Stores and followed through his plan of national expansion. With in 10 years the company had outlets in 28 states as well as Asia, with nearly $ 1 billion annual sales.

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

ORGANIZING: organizing can be defined as the identification and grouping, the work to be performed, defining and delegating the responsibility and authority, establishing relationship for the purpose of enabling people to work more effectively and efficiently to achieve the org. goals. Bateman & Snell: According to Bateman and Snell: Organizing is assembling and coordinating the human, financial, physical, informational and other resources needed to achieve goals. Activities include, attracting people to the organization, specifying job responsibilities, grouping jobs into work units, marshalling and allocating resources, and creating conditions so that people and things work together to achieve the maximum success.

EXAMPLE.PIZZA HUT: When Pizza Hut opened in Moscow in 1990, its G.M Alex Antoniadi,
had to recruit, hire and train 60 people, define and assign work tasks and create an organizational structure his organizing skills enabled him to co-ordinate both people and materials in pursuit of the restaurant sales and profit goals.

LEADING: The process of using influence to motivate others to work toward accomplishing goals. In
other words it includes motivating and encouraging people to work on schedule & helping to resolve conflicts. According to Bateman & Snell, Leading is the management function that involves managers efforts to stimulate high performance by employees. It is directing motivating & communicating with employees, individually and in groups. It involves close day-to-day contact with people, helping to guide and inspire them towards achieving team and organizational goals. Lee Kun Hee, CEO of Samsung heads a tightly knit group of 28 companies, employing 260,000 employees in such industry as computer memory chips, consumer electronics, shipbuilding, aircraft parts and the media. Lee decentralized management & delegation, allowing each companies member to handle their own affairs. Educated in united states and in Japan, he encourages creativity by loosening the hierarchal structure and promoting individual decision making. Of his role as a chair of Samsung, Lee Kun Hee has said, I am here to Lead the people. CONTROLLING: the process of monitoring and regulating the organizations progress, toward achieving goals. Good planning & organizing, outstanding leadership do not guarantee success. According to Henry Fayol, controlling is pointing out weaknesses and errors in order to identify them and prevent future occurrence. It applies on everything ie people, procedures, resources etc. It involves setting standards, measuring performance, taking corrective action, and ensuring that things should not be deviated, significantly from the standard. Controlling is the annoying factor or disturbing factor w.r.t employees. E.g Audits, ACR or charge sheets make the lazy managers/employees annoyed. Budgeting, Audits, disciplinary actions are just a few of the tools of control.

MANAGERIAL ROLES & SKILLS

ROLES:

INTERPERSONAL:

Managers interpersonal roles flow directly from the authority of the managers position in the organization 1. Figurehead: Being the head of the organization, managers represent their organization in performing ceremonial duties and meeting with visitors (important customer). 2. Leader: Being a manager he plays a significant role in leading and motivating the employees to achieve common goals. 3. Liaison: Being a manager he acts as a link in Org. communication chain. It includes developing the relationship with others outside the work unit. They meet with customers, corporate staff, peers etc.

INFOMATIONAL: Because of the reason that managers are mostly in contact with inside
and outside audience, they are in a unique position to send and receive information. In this role manger acquires processes and communicates information.

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

1. Nerve Center/monitor: Receives all types of information from every part of the org. 2. Disseminator: shares the information as gathered from different parts of the organization as well as outsiders. (Pass information from one sub-ordinate to anther). 3. Spokesman: Sends specific information to outsiders. Managers interacting with Government officials, consumers and other stakeholders. 4. DECISIONAL: In decisional roles, from minor decisions to major strategic decisions are involved as: 1. Entrepreneur: makes decisions about changes in organization. In this role managers initiate changes to improve their departments. Entrepreneurial abilities allow the managers to make decisions regarding product innovation, new processes etc. 2. Disturbance Handler: Resolves conflict with in the organization due to inside or outside factors. 3. Resource Allocator: In this capacity he decides the amount each unit will receive. Managers make choices about how many people, how much money and how much of the available material will be used. 4. Negotiator: Acts on behalf of the organization with outsiders. It involves bargaining with others to support the organizational goals. For example he may negotiate with suppliers for low priced raw material. MANAGERIAL SKILLS: To manage effectively you need to develop a whole range of skills, which is a difficult task. Managerial skills can be incorporated in the following three categories: ANALYSING SKILLS/ CONCEPTUAL SKILLS: These skills include the ability to analyze the situation, determine the root of any problem or opportunities and devise an appropriate plan. Conceptual skills enable the managers to see the organization as a whole in the context of its environment, and to understand how the various parts interrelate. These skills help you to break down complex tasks into their component parts and examine them in detail. It includes: 1. Solving Problems: it is sometimes difficult to know where to start so having a logical process can be helpful: a. diagnosing the causes of the problem. ( working out what is wrong) b. thinking up possible solutions( generating a range of options which might solve the problem) c. weighing up the pros and cons ( evaluating the options) d. choosing the most sensible solution. 2. Making decisions: making decisions is the most active process and involves making choices between alternatives. a. Separate the urgent from important. b. Make the goal clear. Once your purpose is clear. You can decide what to do c. Fix on an action/procedure and do something rather than let things occur randomly. d. If others are affected by decisions let them know. e. Check the results to see whether the decisions are working as you intended. The ability to conceptualize is particularly important for top managers, who are usually engaged in strategic management and consider the long term aims of the organization.

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

COMMUNICATING SKILLS/INTERPERSONAL SKILLS: Conveying ideas and instructions to others requires the skillful manipulation of language. Not only the message be transmitted intelligently but the recipient must be willing to listen. Such skills allow the manager to work well with and through other people and to communicate effectively with other people. Managers with good interpersonal skills have the ability to encourage people to freely share their ideas. They are also able to understand the needs and motivations of others. That needs Make sure you are clear about what you want to communicate. ( The Idea) The method by which you will communicate your message. ( The media) Composing your message in such a form that it is correctly received and understood by those for whom it is intended. (The Slant) Meetings and Report writing are two important sources of information flow between a manager and others. A planned meeting enables you to talk about important issues in a special context. It allows you to set an agenda do discuss ideas in depth. If you want your meetings to be fruitful you have to ensure that: They are properly run( start on time and people do not ramble) Everyone attending knows why they are there. A summary is made of what is to be done and whose is to be responsible for the actions agreed. Writing reports enables you to present information that you have researched in a tangible form and other people easily assimilate that. A good report needs a structured format: The background why the report is required. The brief or commission what is being investigated. The findings the facts or results discovered and their sources. The conclusions what the findings mean. The recommendations what is proposed about? TECHNICAL SKILLS: Technical skills consist of the specialized know-how, the tools and the methods needed to perform a certain task. For example a marketing manager should have the knowledge of marketing, complete knowledge of the product technicalities and weaknesses of the competitors products. A manager of departmental store must know how to open and close registers, enter sales and keep track of inventory and employee hours. Managers often develop their technical skills through education and training, and then by working in the fictional areas of an organization. First-line managers need particularly strong technical skills because they interact directly with the non-management personnel, who use the tools and techniques practically in an organization.

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

Ch# 02 Introduction to ORGANIZATIONAL BEHAVIOR

Organizations are groups of two or more people who cooperate and coordinate their activities in a systematic manner to reach their goals. Whether it is a mosque or a business organization, sports groups or a social work office, people work towards common goals. Organizational Behavior (OB) is the study of how people behave in organizations as individuals and as teams and how organizations structure human resources (their employees and managers) to achieve their goals. The purpose of OB is to understand people in organizations, provide practitioners and managers with the tools to manage people more effectively and help organizations achieve their goals. The OB field is broad. It includes: 1. Managing individual differences 2. Decision-making 3. Motivating employees. 4. Managing teams 5. Using power & Politics. 6. Communicating inside and outside the organization. 7. Managing conflicts and negotiations. 8. Managing Change OB helps us to understand all types of organizations. To give a complete picture of OB, many writers analyzed three levels of OB. This is termed as 3 level analysis. The first level of analysis is Micro OB that studies OB on the individual level. It is the smallest possible level of analysis and includes the topics: perception, personality, motivation and learning. The middle (2nd) level of analysis in OB is the group that is made up individual employees within an organization. These groups can be as small as 2 people or larger, depending upon the group goals and tasks. The study of small groups includes issues of group size and composition, cohesion, trust, conflict management, teambuilding, group decision-making and leadership. The 3rd level of analysis in OB is called Macro OB. It is concerned with larger groups such as organizational processes. Macro OB topics include issues such as design and structure of organizations, Organizational culture, organizational power and politics & change. Managers must understand their organization at all three levels of analysis to meet the challenges they face. Related Management Fields: OB is one of the several management fields. two most closely related to OB are organizational theory, human resource management and strategic management. HRM includes the procedural, legal and technical aspects of recruitment, placement, training, evaluation and development of he employees of an organization. Strategic management is the study of how upper management sets the general course for the business and how it uses human, financial and other resources to achieve company goals. No matter what profession an individual opts for, a marketer or an accountant, he needs to understand how to manage people and organizations. For example a marketing executive rely on his marketing knowledge to lead his sales force. In addition he must use his knowledge of OB

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

and other management disciplines to motivate his sales associates, present a strategic plan to his boss, change the structure of his department and recruit and train the sales force.
Common Roots of OB. OB is relatively a new discipline. To understand people and organizations OB researchers rely on information from different disciplines. The following social sciences have a major contribution in the understanding of OB. Psychology: Psychology is the study of human mind and the reasons for human behavior. A persons psychology is a particular type of mind they have and the behavior this produces. Sociology is the scientific study of human nature, structure and organization of human society and human behavior in the society. It is the study of people in relation to their fellow human beings. Anthropology : study of human beings in relation to the kinds of societies they live in and their customs and beliefs. Anthropologists work on cultures and environments, helps us understand differences in fundamental values, attitudes and behavior among people in different cultures and with in different organizations. Political Science: is the study of the behavior of individuals and groups with in a political environment.. Psychology and sociology have the strongest influence on OB. Psychology helps the OB practitioners to understand the micro issues in OB such as personality, perception, motivation & learning & individual conflicts. Sociology & Anthropology affects OB mostly at the macro level. These subjects help us to understand the organizations environment/culture, working in groups/teams, leadership, conflict management and adaptability to change. Political Science in OB it covers intra-organizational politics, allocation of power and how people manipulate power for individual self-interest

Challenges Faced by Todays Organizations and role of Mgt. & OB:

Many of the dramatic changes are taking place in the organizations for example; The employees are getting older. More and more women and minorities are in the work place. Downsizing and cost cutting are severing the bonds of loyalty that historically tied many employees to their employers. Global competition is requiring employees to become more flexible and learn to cope with global change. Times keeps passing and things keep changing. As a manager if you dont anticipate change and adapt to it, you and your firm will not survive in this era of cut throat competition. Some of the critical issues confronting managers for which Management & O.B offers solutions are as follows: Responding to Globalization: The world is now becoming a global village MNCs have sales offices and production facilities in countries all over the world. Even small firms that do not operate on a global scale must take important strategic decisions, based on international considerations as many of them may export their goods. Previously * Politicians and Governments imposed heavy tariffs on imports so it was difficult for firms to export. * Korea, Taiwan, Malaysia lacked the skills to produce high quality products that could compete against others. But now organizations are no longer constrained by national borders. Trading Blocks, NAFTA, EU etc. have reduced tariffs and barriers, America and Europe have no longer monopoly on high skilled labor. Lets take some other examples: Mc Donald sells hamburgers in Moscow [ more than 50 thousand customers daily ]. Exxon receives 75% of its revenues from outside America. Managers must be able to

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

juggle international competition, overseas suppliers, global customers and multinational workforce if they need to survive. If you are working with a Multinational or a Foreign Mission there are chances of your transfer in another country. You have to work with totally different people. Even in your own country you are going to find yourself working with bosses and sub-ordinates that were born and raised in different countries.. The Mgt./OB concepts frequently address how Global/cultural differences might require managers to modify their practices. Managing Workforce Diversity: Workforce diversity means organizations are becoming more heterogeneous in terms of gender, race and ethnicity. One of the most important and broad based challenges currently the organizations are facing is adapting to people who are different. Globalization focuses on differences among people from different countries, workforce diversity addresses differences among people within given countries. Managers need to shift their philosophy from treating everyone alike to recognizing differences. This includes providing diversity training and revamping benefit programs to make them friendlier. Diversity if possibly managed can increase creativity and innovation as well as improve decision-making. When diversity is not managed there is potential for more difficult communication and more interpersonal conflicts. Hewlett Packards workforce at Boston is 19% minorities, and 40% women. For the factorys 350 employees who speak different languages the Plant management issues written announcements in different languages. Improving Quality/ Productivity & stimulate innovation. More and more managers are confronting the challenges to improve their organizations productivity and quality of the products and services they offer by stimulating and institutionalizing innovation in the organization. Public Sector organizations as well as Private Sector, big or small all need new products and new ways of doing things if they need to survive. For this purpose mangers are implementing programs of Total Quality Management [TQM] that require extensive employee involvement. TQM is based on the following 5 principals: 1. Intense Focus on Customer___ Customers are not only those who buy your products but also internal customers as shipping or accounts payable personnel. 2. Continuous Improvement ____ TQM is a commitment to never been satisfied. very good is not good enough. Quality can always be improved 3. Quality Improvement of everything TQM uses a very broad definition of quality. It relates not only to the final product but also to how the organization handles deliveries, how rapidly it responds to complaints, how politely the phones are answered etc. 4. Accurate Measurement: _____TQM focuses on statistical techniques to measure every critical performance variables and compare them against standards or benchmarks to identify problems. The problems are traced to their roots and the causes are eliminated. 5. Empowerment of Employees:_____ TQM involves people on the line in the improvement process. Teams are widely used in the TQM programs as empowerment vehicles for finding and solving problems. In many organizations employees have become associates or teammates. Theres a blurring between roles of managers and workers. Decision-making is being pushed down to the operating level where workers are being given the freedom to make choices about schedules, procedures, and solving work related problems. The managers are empowering employees. They are putting employees in charge of what they do. In such a way employees are having to learn how to take responsibility for their work and make appropriate decisions. Contemporary managers understand that for any effort to improve the quality and productivity to succeed, it must include the employees. These employees will not only be a major force in carrying out changes

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

but will participate in planning them too. Mgt/OB offers important insights into helping managers work through those changes. Managing the Change (Technological/Political/Economical) Technology is one factor that changes at an extremely faster rate. Development in the computer hardware and software allow businesses to manufacture and deliver products of high quality faster than ever before. These changes raise our expectations of employees, suppliers and customers. Other changes that affect business are political changes around the world. The spread of Islamic movements in Iran and Afghanistan has caused internal strife and unrest in countries such as France, Germany, USA etc. that rely on imported workers from Muslim countries. Managing the many changes that are happening around the world is another challenge that todays organizations and their managers face. If well managed change can be turned into opportunities for growth. If ignored or poorly guided change can have devastating effects on any organization. Todays managers and employees must learn to cope with temporariness. They have to learn to live with flexibility and unpredictability. Study of Mgt/OB can provide important insights into helping better understand a work world of continual change and how to overcome it. Ethics and Social Responsibility: Stakeholders are nowadays demanding that organizations should act in socially responsible & ethical ways. Organizations also have to remain responsive to external and internal stakeholders who are the individuals or groups, which have some interests in the organization. Stakeholders include employees, managers, suppliers, customers and the local community. Organizations decisions may be in the interest of one group of stakeholders but may hurt another group. For example a firm facing bankruptcy may close some operations and cuts its labor costs by laying off employees. The shareholders benefit from such decisions but the employees, their families and even the local community will be hurt. If the business does not take drastic action, it may fail and hurt all stakeholders. To balance the needs of multiple stakeholders while running a successful enterprise, managers must analyze the implications of business decisions and often make tough choices.

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

CHAPTER# 03_--- MANAGING INDIVIDUAL DIFFERENCES.

Managers everywhere face the challenge of understanding and managing individual differences. Individual is the smallest unit of analysis in organizational behavior. We are unique in our views, reactions and behaviors. Some of us are intense and engage in a whirlwind of activities: others are relaxed and focus on few specific tasks. The challenge of a new job that inspires one person may dishearten another. The skills that are easy for one employee to learn pose a challenge for another. What makes us different from one another? These are the differences in individual characteristics in personality traits, values and attitudes. Every person is unique because of a combination of many factors, including demographic, physical, psychological and behavioral differences. These are at the core of who we are. Hereditary and environment are the two determinants of individual difference characteristics. Actually these two factors interact to influence the development of individual differences. Heredity includes an individuals gene pool, gender race and ethnic background. Heredity has an early and indelible influence on personality. Identical twins even when raised apart are more similar to each other than to their adoptive family members. Through research it is shown that environment also strongly affect us. These influences include physical location, parents, culture, religion, education and friends. A child born and raised in poor remote farm will think and behave differently from one born and raised in a metropolitan. Similarly a female child growing up in Iran is likely to differ from one raised in Switzerland? Individual characteristics: PERSONALITY. Personality is a stable set of physical and psychological characteristics that makes each person unique. Personality is made up of a no. of personality traits and is the product of interacting biological and environmental factors. It is the primary factor in individual differences and influences the other characteristics as well. When psychologists talk about personality they mean a dynamic concept describing the growth and development of a persons whole psychological system. Rather than looking at parts of the person personality looks at some aggregate whole that is greater than the sum of the parts. Personality can be more accurately defined as personality is the dynamic organization with in the individual of those psychophysical systems that determine his unique adjustments to his environment. VALUES: The next individual characteristic is values. Values are persons stable long lasting beliefs and preferences about what is worthwhile and desirable. Values are closely related to personality. Personality refers to the persons characters and temperament where as values are the principles that a person believes. Like personality traits values guide our behavior. For example some one who holds the value that honesty is the best policy , will attempt to behave fairly and honorably and show integrity in words and actions. Like personality values are shaped early in the life and are resistant to change. ATTITUDES: Attitudes are a consistent pattern of responses that individual individuals use when dealing with particular people, objects or situations. Attitudes have an emotional, cognitive, and behavioral component. The emotional component refers to a how an individual feels about the person object or situation. The cognitive component is what the person thinks and the behavioral component is what the person does. For example lets see an employees attitude towards autocratic leadership. The emotional component of attitude is I dont like autocratic managers. The component is Autocratic management leads to poor performance and dissatisfaction. Finally the behavioral component would be I avoid working for autocratic managers. ABILITIES AND SKILLS Two other individual differences that affect behavior ability and skill. Ability or aptitude is a natural talent to do something mental or physical. Skill is an acquired talent that a person develops related to specific task. Where as ability is somewhat stable over time, skills change with training and experience and from one task to another. The goal in organizations is to recruit and hire employees who have certain abilities and aptitudes that fit the job requirements and then train them to acquire new skills.

10

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

THE BIG FIVE PERSONALITY DIMENSIONS: Psychologists and human resource management researchers have condensed countless personality traits into a list of five major personality dimensions known as the BIG FIVE. Personality Dimensions Conscientiousness DESCRIPTION Degree to which a person is dependable, responsible, organized and forward looking. [plans ahead] Extroversion/ introversion The degree to which a person is sociable, talkative, assertive, active and ambitious. Introverts tend to be reserved and to have fewer relationships and they are more comfortable with solitude than most people are. Openness to experience Degree to which a person is imaginative, broad minded, curious and seeks new experiences. They are fascinated by novelty and innovation. Emotional stability Degree to which a person is anxious, depressed, angry, and insecure. Positive emotional stability tend to be characterized as calm, enthusiastic and secure. Those with high negative scores tend to be nervous, depressed and insecure. Agreeableness Degree to which a person is courteous, likable good natured and flexible. High agreeable people value harmony more than they value having their say or their way. People with low agreeableness focus more on their own needs and are less cooperative. Several of the big 5 personality dimensions have links to work related behaviors although none is the strong predictor of performance. Of the 5 dimensions conscientiousness is the most strongly correlated to job performance? Individuals who are dependable, organized and hardworking tend to perform better in their jobs. Most managers would agree that good employee is dependable, finishes the work by deadlines and is willing to work hard. The most important managerial implication of the big five dimensions is that except for conscientiousness, no single trait is strongly linked to how well an employee will perform in all types and levels of job instead managers need to consider many factors, especially the person-job fit. For example a manager looking for a software salesperson might consider extroversion and openness to new experiences, positive traits, where as a manager looking for an engineer to work on team might consider emotional stability a more important trait. PERSONALITY TRAITS The big 5 provides a general classification of personality traits that have some effect on work related behaviors. Researchers have also found several single personality traits that have been consistently related to work related behavior. Four of the most important ones are Locus of Control, Type A Behavior Pattern, Self monitoring and Machiavellianism. LOCUS OF CONTROL Some people believe that they are the masters of their own fate. Other people see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance. The first type, those who believe that they control their destinies have been labeled internals where as the latter who see their lives as being controlled by outside forces, have been called externals. A persons perception of the source of his fate is termed as locus of control. People with internal locus of control tend to see their success and failures as a reflection of their own efforts. People with external locus of control feel that external factors control what happens to them. A large amount of research comparing internals with externals has consistently shown that individuals that rate high in externality are less satisfied with their jobs have higher absenteeism rates and are more alienated from the work setting and are less involved on their jobs than are internals. Why are externals more dissatisfied? The answer is probably they perceive themselves as having little control over those organizational outcomes that are important to them

11

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

Managing employees with different levels of locus of control requires different approaches. An employee with internal locus of control may need relatively little direction and feedback. Whereas one with external locus of control is likely to require closer supervision, more direction and extensive feedback. Internals facing the same situation attribute organizational outcomes to their own actions. If the situation is unattractive they believe that they have no one else to blame but themselves. Having information about your own or others locus of control can help a manger to understand areas of difficulty and resolve conflicts. Different employees require different type of encouragement / help and encouragement to succeed. One size does not fit all. TYPE A: A personality trait evidenced when a person tries to do more in less and less time in an apparently tireless pursuit of everything. A person with type A personality is aggressively involved in a chronic incessant struggle to achieve more and more in less and less time. They are the people who are excessively competitive and always seem to be experiencing a chronic sense of time urgency. Type As mostly: Emphasize quantity over quality. Are moving, walking and eating rapidly. Feel impatient with the rate at which most events take place. Strive to do two or more things at once. Cannot cope with the leisure time. In contrast to the type A, personality is the Type B, who is exactly opposite. Type Bs Never suffer from a sense of time urgency, with its accompanying impatience. Feel no need to display or discuss either their achievements or accomplishments unless such exposure is demanded by the situation. Play for fun or relaxation, rather than to exhibit their superiority at any cost. Can relax without guilt. One of the first implications of type A for management that compared to type Bs, Type A tend to be poor delegators and generally prefer to work alone. They like to maintain control over all aspects of their work. The inability to delegate can lead to inefficiency. Additionally with the increasing focus on co-operation, use of teams and empowerment style, Type A managers will find that Ill do it myself tendencies are drawbacks. Are Type As or Bs more successful in organizations? Despite the type As hard work, the type Bs are the ones who appear to make it to the top. Great Sales persons are usually type As.; Senior executives are usually type Bs. Why ? the answer lies in the tendency of type As to trade off quality of effort for quantity. Promotions in corporate and professional organizations usually go 1. To those who are wise rather than who are merely hasty 2. To those who are tactful rather than to those who are hostile and 3. To those who are creative rather than to those who are agile in competitive strife. SELF MONITORING: Self monitoring is a personality trait that measures an individuals ability to adjust his or her behavior to external situational factors. Individuals high in self monitoring show considerable adaptability in adjusting their behavior to external situational factors. They are highly sensitive to external cues and can behave differently in different situations. Having high score on the self monitoring scale may indicate leadership skills. Because managers must read environmental and individual cues quickly and accurately and adjust their behavior accordingly, there is some evidence to suggest that those with high self monitor scores emerge as leaders more frequently than those with low scores. Also those with high self monitoring scores usually resolve conflicts cooperatively in dealing with both their subordinates and their supervisors.

12

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

MACHIAVELLIAN PERSONALITY: The personality characteristic Machiavellian is named after Niccolo Machiavelli who wrote in the 16 th century on how to gain and use power. An individual high in Machiavellian is pragmatic, maintains emotional distance, and believes that ends can justify needs. Simply the Mach scale measures an individuals willingness to put self interest above the interests of the group and identifies a persons individual preference and ability to manipulate others for personal gain. Individuals with high scores on the scale are comfortable using various means to achieve their personal goals. These individuals may lack the honesty and integrity that are requirements for effective management. On the low end of the scale individuals tend to be overly nave and trusting. Those with the scores in the middle of the scale have both the necessary political savvy and the integrity to be effective managers. Some conditions allow people with high Mach scores to flourish. Particularly uncertainty that results from restructuring, change in leadership, or any organizational crises provides settings that are ideal for those with Mach Machiavellian personality traits because of their abilities to manipulate others for their own advantage. When there are clear rules and norms, as would be in the case of organization with a well established strong culture, those with high Mach scores cannot operate as effectively and are often less successful. The organizations culture and strong behavioral norms curtail their ability to manipulate and control events for personal gain. People with high Mach Scores tend to have political and manipulation skills that allow them to move up quickly and appear highly successful in many organizations. However they direct their attention and effort primarily to promote themselves. As a result those with high Mach scores are often ineffective managers because they generally will support, and help the employees only if doing so is to their own benefit. Mangers that have low Mach scores may also have disadvantages. They may not have enough political know-how and negotiation skills to provide their group with necessary resources and visibility to succeed or to highlight their own accomplishments appropriately. Their open and trusting style also makes them easy targets for those with high Mach scores. Neither the persons with high score nor the low scorers are likely to be effective managers. Generally individuals with mid level score tend to be effective managers. They have some political savvy and are good negotiators, but they also have the ability to resist manipulation from the others. Mostly in jobs that require bargaining skills such as labour negotiations, high Machs would be productive. IMPLICATIONS FOR MANAGEMENT: Managers who are aware of their personality traits and understand how those personality traits can affect their dealings with others can overcome some of the challenges they face. A manager who knows he ahs high type A score can focus on improving his delegation skills. A manager with low mach score should improve his negotiation skills. The low self monitor should pay more attention to others reactions. Knowledge of personality traits can also help a manager work with employees more effectively. For example if a manger learns that one of his employees has high self monitoring traits, all else being equal that employee may be a good candidate for an assignment in a foreign country. Similarly a person who is open to new experiences may be given new assignments more often than the one who is less broad minded. Appropriate and careful self assessment of personality traits can help managers improve their performance. Managers who encourage employees to conduct elf assessment help those employees identify their strengths and weaknesses so that they can achieve their potential more readily. The identification of the personality traits provides insight into the personality core.

13

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

HANDLING PROBLEM EMPLOYEES WITH DIFFERENT PERSONALITY TRIATS: Whether it is a hostile, overly competitive person with Type A trait, a manipulative person with a high mach score or an employee with an extreme external locus of control, who wont accept responsibility, managers have to deal with a lot of personalities in the workplace. Here are some tips for handling problem employees: UNDERSTANDING VALUES: Values are long lasting beliefs about what is worthwhile and desirable. They are personal judgments what is wrong and what is right, what is good and what is bad. As is the case personality traits values develop early in life and are based on culture, family and our social and educational background. Just like personality values are affected by heredity and environmental factors and are usually stable and resistant to change. Understanding values is important for mangers because values effect work related attitudes and behaviors. Further more conflict between organizational and individual values can be a major source of frustration and problems. VALUE SYSTEM The way in which persons values are organized and prioritized is that persons value system. For instance a person may value his family on top priority in comparison to such issues as faith, career and social relationships. Other people may value their career more than their family, or put their faith and spirituality above all else. Each of us has a personal value system prioritized around what we value most. Some of us are aware of the values and priorities while others are unclear about their priorities and become aware of them only when conflict results. Helping employees then become more self aware of their value system can avoid value conflicts and the resulting problems. The first step for the managers is to understand their own values and priorities. VALUES AND ETHICS. One of the most important work related values is ethics a persons concept of right and wrong. According to an individuals value system many activities are legal but un-ethical. For example ingratiation [ giving your boss false compliments or by telling the boss what he wants to hear about his management style] is not illegal. Depending upon your value system you may consider such behavior either un-ethical or a required ingredient for success. There are two general views of ethics: RELATIVISTIC VIEW Different ethical standards apply in different places Culture is a major factor in ethical standards. UNIVERSALIST VIEW The same ethical standards apply everywhere. Culture is not a factor in ethical Openly and quickly talk to employees about their problem behaviors. Focus on the employees specific behaviors and stick with verifiable facts. Example, say, You were yelling at Ahmad, yesterday so loudly that I heard you all the way in the veranda rather than you are very hostile. Raise personality traits if your group has used them in the past, Avoid saying I think your Machiavellian tendencies cause you to put your interests first. Keep your discussions separate from performance evaluation and other personnel related decisions. When trying to change behavior, be supportive and provide frequent feedback, encouragement and reminders ( the good and the bad) Be Patient: behaviors take time to change, which is partly why you need to address them as quickly as possible.

14

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

standards.

The value and ethical issues facing managers are highly complex. Global and cross cultural issues further add to the complexity of issues. There are no clear cut and easy solutions and ethical and value-driven issues will continue to be a major part of any managers job.

VALUE CONFLICT: Given that individual values are difficult to change, one issue that the managers face is the conflict among the values. Value conflict refers to disagreement among values that an individual holds or between individual and organizational values. Value conflict may occur in organizations in one of the three ways: 1. INTRAPERSONAL VALUE CONFLICT: occurs when a person holds two or more values that are inconsistent. A female manger who is ambitious and successful, who values he 50-70 hour per week career but still believes that she needs to be traditional wife and mother, will experience intrapersonal conflict. 2. INTERPERSONAL VALUE CONFLICT: occurs when two or more people hold opposing values. An older employee may value respect for authority and preservations of traditions where his younger co-worker is rebellious and believes in radical change in organizations. 3. PERSON-ORGANIZATION VALUE CONFLICT: occurs when a persons values conflict with the organizations culture. An example is a person who values the environment but finds that her employer caused environmental disasters in another part of the world / country/ city.
Although it is important to be aware of and to resolve any potential intrapersonal value conflicts, managers are more concerned with interpersonal and person-organizational value conflicts. Interpersonal value conflict prevents workers to work together effectively and accomplishing the goals of the organization. Similarly person organization value conflicts are frustrating and depending on the extent of conflict can prevent individuals from fully committing to performance or cause them to quit their jobs. UNDERSTANDING WORK RELATED ATTITUDES: Attitudes are general feelings and beliefs about people and situations that can lead to behavior. You may believe that the organization you work for is a fair and socially responsible company. Because fairness and social responsibility are important values for you, you feel happy working there. As a result of your feelings and beliefs toward the organization, you are likely to continue to work hard to stay in the firm. Attitudes are therefore made-up of beliefs, feelings and behaviors. The following figure presents examples of 3 components of Attitudes.

FEELINGS: 1. I like my Boss 2. I enjoy working with my assistant: 3. I dislike my coworkers, they make me angry. 4. I get irritated when I work with Afghans

BELIEFS: 1. My Boss is decent. 2. My assistant is intelligent. 3. My Co-workers are fools 4. Afghans are mostly liers.

BEHAVIORS: 1. I support my boss and help him 2. I recommend my assistant for a raise. 3. I wont cooperate with my co-workers. 4. I ignore the opinions of Afghans.

CHANGING ATTITUDES: Employee attitudes can be changed and sometimes it is in the best interest of the management to try to do so. For example if the employees believe that their employer do not take care of them, management would like to change this attitude. Mostly attitude change is difficult to accomplish because of certain barriers. There are 2 basic barriers that can prevent people from changing their attitude.

15

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

1. One of the barriers is called prior commitments, which occur when people feel a commitment to a particular course of action and are unwilling to change. When the individual is unwilling to admit the mistake. Simply he uses the ego-defensive function of attitude. For example a Branch Manager hired a new Marketing Executive, who was his cousin and fired the previous one, for some personal gains. The new Marketing executive performed very poorly and the staff / customers were dissatisfied with his behavior. But still the Branch Manager distorts all negative information received, regarding his decision and continues to believe that everything is going well and the right selection decision was made. 2. A second barrier is the result of insufficient information. Sometimes people do not see any reason to change their attitude. The boss may not like a subordinates negative attitude, but the latter may be quite pleased with his own behavior. Unless the boss can show the individual what behavior is required for him to stay / progress in that organization? Otherwise the subordinate may continue to have a negative attitude as his dont know or he has no information, what behavior is required in that particular office. JOB SATISFACTION Although we often think that our feelings are consistent with our beliefs and behaviors, which is not always the case. For example you may not like the job but continue to do it well. You also may believe that the organization you are working for is good and fair, but you dont like working there, although you still work hard. The possible inconsistency between three different components of attitudes explains the sometimes confusing findings related to job satisfaction and performance. One of the most important and most studies work related attitudes are job satisfaction. Job satisfaction is defined as the general attitude that people have about their jobs. 5 factors of Job Performance: JOB FACTORS The Pay DESCRIPTION The amount of wages, salary and benefits and the individuals perception of their fairness. The Job Itself How interesting and challenging a job is perceived to be. Job that provides status. Promotion Opportunities Availability of opportunities for advancement. On the basis of seniority or performance. Promotion with 20% Salary raise or just 40 % salary raise. The Supervisor The Bosss support and caring for employees. Regular feedbacks. Co-workers and other Relationship with co-workers and other people as customers people. Working Conditions Clean and Attractive surroundings Assume that you generally satisfied with your job. In spite of being satisfied you do not perceive that the pay and benefits that you receive are fair. You therefore think that your good job performance tend to go un-rewarded. You may still be satisfied with your job but your overall performance may suffer. The other possibility is that as you keep doing your job well your salary increases so you start feeling more satisfied with your job. The opposite scenario would be the case of someone who is highly dissatisfied with the job but desperately needs the pay and the benefits it brings. In spite of being dissatisfied, the person may continue to perform well. Outcomes of job satisfaction: In examining the outcomes of Job Satisfaction it is important to break down the analysis into a series of specific subtopics. The most important of these are

Satisfaction and productivity: are satisfied workers more productive than less satisfied counterparts? Although most people assume a positive relationship. But this is not always true. A

16

Organizational Behavior Handouts BBA 5 gohar@ciit.net.pk

dissatisfied worker may perform well and try his best to be more productive because of his nature or fear that he might be punished for ill performance.

Satisfaction and Turnover: High job satisfaction will keep the turnover low, on the other hand if there is considerable job dissatisfaction, there is likely to be high turnover. However some people cannot see themselves working anywhere else so they remain in that organization, regardless how dissatisfied they feel. If the economy is better and there is less unemployment, even the satisfied people leave their jobs if the opportunities elsewhere promise to be better. On the other hand if jobs are tough to get and downsizing is occurring, dissatisfied employees will stay where they are. Satisfaction and absenteeism There is an inverse relationship between satisfaction and absenteeism. Where satisfaction is high, absenteeism tends to be low. Absenteeism also depends a no. of factors. When people perceive their jobs to be very important and know that absenteeism is criticized strongly by the management, despite of less job satisfaction, their absenteeism is low.

WHAT TO DO IF YOU ARE DISSATISFIED WITH YOUR JOB. -Unfortunately many of us are likely to be dissatisfied with our jobs at least at some point in our career. Here are some helpful steps you can take: Identify the aspect the job that is causing your dissatisfaction. If all aspects are troublesome, you should seriously consider finding another job. Once you have isolated the aspects that are causing dissatisfaction, evaluate how important they are to you. For instance pay may be bad but the learning opportunities are great. Which one is more important? Discuss your areas of dissatisfaction with your Boss. Present facts and propose solutions. Be constructive, receptive to ideas, and willing to negotiate. If the supervisor and the co-workers are the problem, use your judgment about how receptive they may be to your feedback. If they are open, focus on the facts and behaviors and discuss areas of conflict. Seeking their help and suggestions in resolving them. If possible ask for a transfer if you still like the organization but not the current office. Suffering in silence wont get you too far. Be proactive and constructive in changing your attitude, feelings, beliefs or behavior.