Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 1

Organizational behaviour is the study of what people think, feel and do in and around organizations. It also encompasses how organizations interact with their environment. Organizations are groups of people who work interdependently toward some purpose. Organizations are collective entities. Organizational behaviour theories are important because they influence organizational events (1), they comprehend and predict work events (2) and they adopt more accurate personal theories (3).

There are several major environmental developments facing organizations:

  1. Technological change
    This boosts productivity, but also have the possibility to displace employees and render entire occupational groups obsolete. It can also alter the relationships between co-workers, clients and suppliers.
  2. Globalization
    This refers to economic, social and cultural connectivity with people in other parts of the world. There is an intense level of connectivity and interdependence around the globe in organizations. It brings more complexity and new ways of working to the workplace, but also requires additional knowledge and skills.
  3. Emerging employment relationships
    The work-life balance is changing. This is the degree to which a person minimizes conflict between work and non-work demands.
  4. Increasing workforce diversity
    Surface-level diversity
    , the observable demographic or physiological differences in people, has increased over the past few decades. Deep-level diversity refers to differences in the psychological characteristics of employees.

Telecommuting is working from home one or more workdays per month rather than commute to the office. Telecommuters usually experience better work-life balance, but these telecommuters need privacy at home for this. Telecommuting increases productivity and is better for the environment. Disadvantages of telecommuting include more social isolation, lower team cohesion and a weaker organizational culture.

There is a difference in deep-level diversity among age cohorts. Workforce diversity has advantages, such as more creativity and better decision making. Disadvantages to diversity in the workplace are that diverse people take longer to effectively communicate and there is a risk of dysfunctional conflict, which reduces information sharing and satisfaction with co-workers.

There are several anchors of organizational behaviour knowledge:

The systematic research anchor states that knowledge should be based on systematic research. This is the basis for evidence-based management. This is the practice of making decisions and taking actions based on research evidence. Managers rarely make use of evidence-based management, because they receive a lot of ideas, the sources of those ideas are rewarded for marketing those ideas and the research is often very broad. The multidisciplinary anchor states that knowledge and theories from other disciplines should be welcomed. The contingency anchor states that the effect of one variable on another variable often depends on the characteristics of the situation or people involved. The multiple levels of analysis anchor state that organizational events should be placed into three levels of analysis: individual, team and organization.

Organizational effectiveness refers to a broad concept which includes the organization’s fit with the external environment, internal subsystems, configuration for high performance, emphasis on organizational learning and ability to satisfy the needs of key stakeholders. In short, it refers to how effective an organization is. There are four perspectives of organizational effectiveness:

  1. Open systems perspective
    This is a perspective that holds that organizations depend on the external environment for resources, affect that environment through their output and consist of internal subsystems (e.g: departments) that transform inputs to outputs. This perspective states that organizations are effective when they maintain a good fit with their external environment. Organizations can do this in three ways: adapting to the environment (1), influence the environment (2) and move to a more favourable environment (3). There are three indicators of effective internal subsystems: efficiency, adaptability and innovativeness.
  2. Organizational learning perspective
    This is a perspective that holds that organizational effectiveness depends on the organization’s capacity to acquire, share, use and store valuable knowledge. Knowledge is also called intellectual capital, which exists in three forms: human capital (1), structural capital (e.g: finished products) (2) and relationship capital (3).
  3. High-performance work practices perspective
    This is a perspective that holds that effective organizations incorporate several workplace practises that leverage the potential of human capital. There are four major high-performance work practices: employee involvement (1), job autonomy (2), competency development (3) and rewards for performance and competencies (4).
  4. Stakeholder perspective
    This perspective states that organizations are more effective when they understand, manage and satisfy stakeholder needs and expectations. Stakeholders include individuals, groups and other entities that affect or are affected by the organization’s objectives and actions. This perspective personalizes the open systems perspective.

An organization’s intellectual capital develops and is maintained through four organizational learning processes: acquiring knowledge (1), sharing knowledge (2), using knowledge (3) and storing knowledge (4). Retained knowledge in the organization is known as organizational memory. Values are relatively stable, evaluative beliefs that guide a person’s preference for outcomes or courses of action in a variety of situations. Ethics determine what’s right and wrong. Corporate social responsibility consists of organizational activities intended to benefit society and the environment beyond the firm’s immediate financial interests or legal obligations.

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Work & Organizational Psychology – Interim exam 1 [UNIVERSITY OF AMSTERDAM]

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 1

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 1

Image

Organizational behaviour is the study of what people think, feel and do in and around organizations. It also encompasses how organizations interact with their environment. Organizations are groups of people who work interdependently toward some purpose. Organizations are collective entities. Organizational behaviour theories are important because they influence organizational events (1), they comprehend and predict work events (2) and they adopt more accurate personal theories (3).

There are several major environmental developments facing organizations:

  1. Technological change
    This boosts productivity, but also have the possibility to displace employees and render entire occupational groups obsolete. It can also alter the relationships between co-workers, clients and suppliers.
  2. Globalization
    This refers to economic, social and cultural connectivity with people in other parts of the world. There is an intense level of connectivity and interdependence around the globe in organizations. It brings more complexity and new ways of working to the workplace, but also requires additional knowledge and skills.
  3. Emerging employment relationships
    The work-life balance is changing. This is the degree to which a person minimizes conflict between work and non-work demands.
  4. Increasing workforce diversity
    Surface-level diversity
    , the observable demographic or physiological differences in people, has increased over the past few decades. Deep-level diversity refers to differences in the psychological characteristics of employees.

Telecommuting is working from home one or more workdays per month rather than commute to the office. Telecommuters usually experience better work-life balance, but these telecommuters need privacy at home for this. Telecommuting increases productivity and is better for the environment. Disadvantages of telecommuting include more social isolation, lower team cohesion and a weaker organizational culture.

There is a difference in deep-level diversity among age cohorts. Workforce diversity has advantages, such as more creativity and better decision making. Disadvantages to diversity in the workplace are that diverse people take longer to effectively communicate and there is a risk of dysfunctional conflict, which reduces information sharing and satisfaction with co-workers.

There are several anchors of organizational behaviour knowledge:

The systematic research anchor states that knowledge should be based on systematic research. This is the basis for evidence-based management. This is the practice of making decisions and taking actions based on research evidence. Managers rarely make use of evidence-based management, because they receive a lot of ideas, the sources of those ideas are rewarded for marketing those ideas and the research is often very broad. The multidisciplinary anchor states that knowledge and theories from other disciplines should be welcomed. The contingency anchor states that the effect of one variable on another variable often depends on the characteristics of the situation or people involved. The multiple levels of analysis anchor state that organizational events should be placed into three levels of analysis: individual, team and organization.

Organizational effectiveness refers to a broad concept which includes the organization’s fit with the external environment, internal subsystems, configuration for high performance, emphasis on organizational learning and ability to satisfy the needs

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 2

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 2

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The MARS model consists of motivation, ability, role perception and situational factors:

  1. Motivation
    The forces within a person that affects his or her direction, intensity and persistence of voluntary behaviour.
  2. Ability
    The natural aptitudes and learned capabilities required to successfully complete a task. Aptitudes are natural talents. Competencies are characteristics of a person that result in superior performance. It is important to match employees with the right job requirements. This can be done by looking for employees that already have the required skills or by training employees. Redesigning the job is also possible.
  3. Role perception
    The degree to which a person understands the job duties assigned to or expected of him. Employees need to know their responsibilities, their priorities of different tasks and understanding the preferred behaviours or procedures for accomplishing tasks.
  4. Situational factors
    Any context beyond the employee’s immediate control. Work context can constrain or facilitate performance and the situation provides cues that guide and motivate people.

There are five categories of individual behaviour:

  1. Task performance
    The individual’s voluntary goal-directed behaviours that contribute to organizational objectives. Proficient task performance (1) is performing the work accurately and efficiently. Adaptive task performance (2) is how adaptive employees are in their performance. Proactive task performance (3) refers to how well employees take the initiative to anticipate and introduce new work patterns that benefit the organization. Adaptive and proactive task performance is important when the work is ambiguous.
  2. Organizational citizenship
    Various forms of cooperation and helpfulness to others that support the organization’s social and psychological context (e.g: covering a shift for someone else). Organizational citizenship can have negative consequences because it takes time and energy away from performing tasks.
  3. Counterproductive work behaviours
    Voluntary behaviours that have the potential to directly or indirectly harm the organization (e.g: bullying).
  4. Joining and staying with the organization
    Companies have to keep higher skilled and productive employees at their company.
  5. Maintaining work attendance
    Absence can cause the company to be short-staffed and knowledge will temporarily leave the company. Absence can have positive consequences because it can help people recover sooner. People that go to their work while absence should’ve occurred are less productive and may reduce the productivity of co-workers.

Personality is the relatively enduring pattern of thoughts, emotions, and behaviours that characterize a person, along with the psychological processes behind those characteristics. Traits are broad concepts that allow us to label and understand individual differences. Personality is not consistent across all situations, because some situations override the personality (e.g: a funeral). Personality typically stabilizes by around age 30, although it can still change. The five-factor model (Big Five) represents the five most broad dimensions of personality:

  1. Conscientiousness
    This characterizes people who are organized, dependable, goal-focused, disciplined and so on.
  2. Agreeableness
    This characterizes people who are trusting, helpful and good-natured.
  3. Neuroticism
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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 3

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 3

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Self-concept is an individual’s self-belief and self-evaluations. Our self-concept is defined at an individual, relational and collective level. An individual’s self-concept can be described by three characteristics: complexity (number of distinct and important roles), consistency (amount of self-views that require similar personality traits) and clarity (clear, defined and stable). Clarity increases with age because personality and values become relatively stable by adulthood and people develop better self-awareness through life experiences. Clarity is higher when the consistency is high.

The higher the complexity, consistency and clarity, the better well-being people tend to have. Too much variation causes internal tension and conflict, but consistency can help with this. Employees with complex self-concept tend to be better at adaptive performance. Self-concept clarity improves performance. There are four processes that shape self-concept and motivate a person’s decisions and behaviour:

  1. Self-enhancement
    This is a person’s inherent motivation to have a positive self-concept. People tend to believe they’re above average at things they care about.
  2. Self-verification
    This is a person’s inherent motivation to confirm and maintain his or her existing self-concept. People are more likely to remember information that is consistent with their self-concept. Employees are motivated to interact with others who affirm their self-views.
  3. Self-evaluation
    This is defined by three elements. Self-esteem is the extent to which people like, respect and are satisfied with themselves. Self-efficacy refers to a person’s belief that he has the ability, motivation, correct role perceptions and favourable situation to complete a task successfully. Locus of control is a person’s general belief about the amount of control he has over personal life events.
  4. Social-self
    The social identity theory states that people define themselves by the groups to which they belong to have an emotional attachment. Social identity is a complex combination of many memberships arranged in a hierarchy of importance. People want to belong to the group and be unique at the same time.

Perception begins when environmental stimuli are received through our senses. Through selective attention and emotional marker response, we make a perceptual organization and interpretation and this leads to attitudes and behaviour. One selective attention bias is the effect of our assumptions and expectations about future events. Our assumptions and expectations determine what we see (or what is more salient). Another selective attention bias is confirmation bias.

Categorical thinking refers to organizing perceptions into preconceived categories that are stored in our long-term memory. Another form of perceptual grouping involves filling in the missing information. The tendency to look for patterns is also a form of perceptual grouping, the grouping of perceptions in trends. Mental models are knowledge structures that we develop to describe, explain and predict the world around us. Mental models partly rely on the process of perceptual grouping. Questioning ourselves about our assumptions and working with people from diverse backgrounds is a good way to change mental models.

Stereotyping is the process of assigning traits to

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 4

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 4

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Behaviour in the workplace is influenced by cognitive processes and emotions. Emotions may have a greater effect because they can occur prior to cognitive processes. Emotions are physiological, behavioural and psychological episodes experienced toward an object, person or event. Emotional states are short-term and moods are long-term. All emotions have two common features: emotions have a certain valence, also called core affect (e.g: approach or avoid object) (1) and emotions ready us to some extent (2).

Attitudes are evaluations of an object or event. Attitudes consist of beliefs, feelings and behavioural intentions. Feelings can make sure that attitudes differ, even though the beliefs and the behaviours are the same for two people. Having more positive emotions at work can counteract negative experiences at work. Cognitive dissonance is the uncomfortable physiological state when attitudes and behaviour conflict. Cognitive dissonance can be reduced by changing the attitude or behaviour. Emotions are partly determined by personality. The actual situation in which people work has a stronger influence on their attitudes and behaviour than personality.

Emotional labour refers to the effort, planning and control needed to express organizationally desired emotions during interpersonal transactions. Emotional labour is higher when the display rules are precise, if the contact with the client is frequent and long and if the emotions have to be intense. Norms about displaying or hiding your true emotions vary across cultures. Emotional dissonance refers to the tension when the emotions people are required to display differ from the emotions they are actually experiencing at the moment. Surface acting can help with this, pretending to feel the expected emotion. Surface acting can lead to higher stress and burnout. The psychological damage can be reduced by seeing surface acting as part of a role. This does not deprive the person’s self-worth. Deep acting involves visualizing reality differently, which produces emotions more consistent with the required emotion. Deep acting requires emotional intelligence.

Emotional intelligence is a set of abilities to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion and regulate emotion in oneself and others. Emotional intelligence consists of four dimensions:

  1. Awareness of our own emotions
    This is the awareness to perceive and understand the meaning of our own emotions.
  2. Management of our own emotions
    This is the ability to manage our own emotions.
  3. Awareness of others’ emotions
    This is the ability to perceive and understand the emotions of other people.
  4. Management of others’ emotions
    This is the ability to manage other people’s emotions (e.g: consoling).

The four dimensions form a hierarchy and one dimension needs to be fulfilled in order to go to the next one (4-3-2-1). Emotional intelligence improves employee performance and well-being. It only improves tasks that require social interaction. Emotional intelligence can be improved through training and improves with age.

Job satisfaction is a person’s evaluation of his or her job and work context. It is

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 6

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 6

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The meaning and effect of money differ between men and women. Men attach more value to money than women. Women see money in terms of things they can do with it and men see it as a symbol of power and autonomy. People in countries with high power distance have a high priority for money.

There are four types of objectives of rewards:

  1. Membership- and seniority-based rewards
    These are monetary rewards for being a member somewhere and for working somewhere for a long time. These rewards can reduce turnover, but do not directly motivate job performance.
  2. Job status-based rewards
    These are rewards on the basis of the status or worth of the jobs they occupy. Job worth can be measured through job evaluation, which measures the required skill, effort, responsibility and working conditions. It can improve fairness, but also competitiveness within a company.
  3. Competency-based rewards
    These are rewards based on how well people perform on certain competencies (e.g: skill-based pay gives rewards based on the mastery of measurable skills).
  4. Performance-based rewards
    These are rewards based on an individual’s performance.

There are several types of performance-based rewards:

  1. Individual rewards
    These rewards are given to an individual for individual accomplishments.
  2. Team rewards
    These rewards are given to a team for team accomplishments. The gainsharing plan is a team-based reward that calculates bonuses from the work unit’s cost savings and productivity improvement (e.g: reward employees for cost reduction).
  3. Organizational rewards
    These rewards are given to the entire organization for organizational accomplishments. Employee stock ownership plans (ESOPs) are a reward system that encourages employees to buy company stock (e.g: employee discount). Stock options are a reward system that gives employees the right to purchase company stock at a future date at a predetermined price. A profit-sharing plan is a reward system that pays bonuses to employees on the basis of the previous year’s level of corporate profits.

Very large rewards can result in lower performance. Reward systems motivate most employees, but only under the right conditions. There are several strategies for improving reward effectiveness:

  1. Link rewards to performance
    By linking rewards to performance and making that known to the employees, performance can improve. This can be achieved by using objective performance measures.
  2. Ensure that rewards are relevant
    The rewards have to be relevant to the performance in order to improve performance.
  3. Use team rewards for interdependent jobs
    Team rewards are better for interdependent jobs because it is difficult to measure individual performance in these situations. Highly productive individuals prefer individual rewards.
  4. Ensure that rewards are valued
    The rewards have to be valued by employees in order to improve performance.
  5. Watch out for unintended consequences
    Unintended consequences of rewards should be avoided in order to improve performance (e.g: employees creating problems in order to solve them for rewards).
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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 7

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 7

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Decision making is the process of making choices among alternatives with the intention of moving toward some desired state of affairs. Rational choice decision making selects the best alternative by calculation the probability that various outcomes will occur from the choices and the expected satisfaction from each of those outcomes. An opportunity is a deviation between current expectations and a potentially better situation that was not previously expected.

There are five main problems of problem identification:

  1. Solution-focused problems
    This is identifying a problem as a veiled-solution, but this is not really the problem.
  2. Decisive leadership
    Leaders that announce problems or opportunities before logically assessing the situation does not help with identifying the problem.
  3. Stakeholder framing
    Stakeholders hide or provide information in ways that the decision-maker sees the situation as a problem, opportunity or steady sailing. This information is not always accurate and can lead to a wrongly identified problem.
  4. Perceptual defence
    People can fail to become aware of problems because they block out bad news as a coping mechanism.
  5. Mental models
    Mental models can blind us from seeing unique problems or opportunities. Things have to fit in mental models.

Identifying problems can be improved by acquiring new perspectives, having leaders that have the willpower to resist the temptation of decisive decision making and create a norm of divine discontent (never being satisfied with the current conditions).

Bounded rationality is the view that people are bounded in their decision-making capabilities, including access to limited information, limited information processing and a tendency toward satisficing rather than maximizing when making choices. Problems with goals are that problems are often ambiguous and problems can conflict. Sequential evaluation occurs because all alternatives are not usually available to the decision-maker at the same time. The implicit favourite is a preferred alternative that the decision-maker uses repeatedly as a comparison with other choices. The main reason why decision-makers compare alternatives against an implicit favourite is the need to minimize cognitive dissonance. There are three main decision-making heuristics:

  1. Anchoring and adjustment heuristic
    This is the tendency to be influenced by an initial anchor point such that they do not move away sufficiently from that point as new information is provided.
  2. Availability heuristic
    This is the tendency to assign higher probabilities to objects or events that are easier to recall.
  3. Representativeness heuristic
    This is a tendency to evaluate probabilities of events or objects by the degree to which they resemble other events of objects.

Clustering illusion is the tendency to see patterns from a small sample of events when those events are random. Satisficing is selecting an alternative that is good enough, rather than the alternative with the highest value. People stop searching for alternatives the moment they find one option that is good enough. Maximizing decision making is difficult when there are a lot of alternatives.

Emotions affect the evaluation of alternatives

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 9

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 9

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Frequent, timely and accurate communication is the primary means through which employees and work units effectively synchronize their work. The functions of communication are coordination, organizational learning, decision making, changing behaviour and support employee well-being.

The communication process model states that messages are formed and encoded and decoded and feedback is formed and encoded before being sent back and being decoded. According to this model, effective communication depends on the sender’s and receiver’s ability, motivation, role clarity and situational support to efficiently and accurately encode and decode information. There are four main factors that influence the effectiveness of this encoding-decoding process. A codebook makes effective communication easier (1), experience makes the process easier (2), the process is easier if the sender and receiver are skilled and motivated (3) and the process depends on the sender’s and receiver’s shared mental models of the communication context (4).

The medium is the channel through which information is transmitted. There are verbal and nonverbal channels. The use of e-mail in an organization reduces social and organizational status differences between sender and receiver. Written digital communication (e.g: e-mail) can potentially reduce stereotyping and prejudice because age, race and other features are unknown or less noticeable. The lack of face-to-face contact may also increase reliance on stereotypes.

There are several problems with email and other digital message channels. It is difficult to communicate emotions using digital message channels (1), there is less politeness and respectfulness (2), it is inefficient in ambiguous, complex and novel situations (3) and it contributes to information overload (4). Flaming describes digital messages that convey strong negative emotions.

Nonverbal communication includes facial gestures, voice intonation, physical distance and silence. Nonverbal cues are generally more ambiguous and susceptible to misinterpretation. Emotional contagion is the automatic process of catching or sharing another person’s emotions by mimicking that person’s facial expressions and other nonverbal behaviours. Emotional contagion influences communication and social relationships in three ways. Mimicry provides feedback (1), mimicking seems to be a way of receiving emotional meaning from people (2) and mimicry helps us fulfil the drive to bond (3).

There are four important factors when deciding which communication channel to use:

  1. Synchronicity
    This is the extent to which the channel requires or allows both sender and receiver to be actively involved in the conversation at the same time or at different times. Whether this factor is important depends on time urgency, the complexity of the topic, cost of both parties communication at the same time and whether the receiver should have time to reflect before responding.
  2. Social presence
    This is the extent to which a communication channel creates psychological closeness to others, awareness of their humanness and appreciation of the interpersonal relationship. Whether this factor is important depends on the need to empathize with and influence others.
  3. Social acceptance
    This refers to how well the communication medium is approved and supported by the
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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Book summary

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 1

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 1

Image

Organizational behaviour is the study of what people think, feel and do in and around organizations. It also encompasses how organizations interact with their environment. Organizations are groups of people who work interdependently toward some purpose. Organizations are collective entities. Organizational behaviour theories are important because they influence organizational events (1), they comprehend and predict work events (2) and they adopt more accurate personal theories (3).

There are several major environmental developments facing organizations:

  1. Technological change
    This boosts productivity, but also have the possibility to displace employees and render entire occupational groups obsolete. It can also alter the relationships between co-workers, clients and suppliers.
  2. Globalization
    This refers to economic, social and cultural connectivity with people in other parts of the world. There is an intense level of connectivity and interdependence around the globe in organizations. It brings more complexity and new ways of working to the workplace, but also requires additional knowledge and skills.
  3. Emerging employment relationships
    The work-life balance is changing. This is the degree to which a person minimizes conflict between work and non-work demands.
  4. Increasing workforce diversity
    Surface-level diversity
    , the observable demographic or physiological differences in people, has increased over the past few decades. Deep-level diversity refers to differences in the psychological characteristics of employees.

Telecommuting is working from home one or more workdays per month rather than commute to the office. Telecommuters usually experience better work-life balance, but these telecommuters need privacy at home for this. Telecommuting increases productivity and is better for the environment. Disadvantages of telecommuting include more social isolation, lower team cohesion and a weaker organizational culture.

There is a difference in deep-level diversity among age cohorts. Workforce diversity has advantages, such as more creativity and better decision making. Disadvantages to diversity in the workplace are that diverse people take longer to effectively communicate and there is a risk of dysfunctional conflict, which reduces information sharing and satisfaction with co-workers.

There are several anchors of organizational behaviour knowledge:

The systematic research anchor states that knowledge should be based on systematic research. This is the basis for evidence-based management. This is the practice of making decisions and taking actions based on research evidence. Managers rarely make use of evidence-based management, because they receive a lot of ideas, the sources of those ideas are rewarded for marketing those ideas and the research is often very broad. The multidisciplinary anchor states that knowledge and theories from other disciplines should be welcomed. The contingency anchor states that the effect of one variable on another variable often depends on the characteristics of the situation or people involved. The multiple levels of analysis anchor state that organizational events should be placed into three levels of analysis: individual, team and organization.

Organizational effectiveness refers to a broad concept which includes the organization’s fit with the external environment, internal subsystems, configuration for high performance, emphasis on organizational learning and ability to satisfy the needs

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 2

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 2

Image

The MARS model consists of motivation, ability, role perception and situational factors:

  1. Motivation
    The forces within a person that affects his or her direction, intensity and persistence of voluntary behaviour.
  2. Ability
    The natural aptitudes and learned capabilities required to successfully complete a task. Aptitudes are natural talents. Competencies are characteristics of a person that result in superior performance. It is important to match employees with the right job requirements. This can be done by looking for employees that already have the required skills or by training employees. Redesigning the job is also possible.
  3. Role perception
    The degree to which a person understands the job duties assigned to or expected of him. Employees need to know their responsibilities, their priorities of different tasks and understanding the preferred behaviours or procedures for accomplishing tasks.
  4. Situational factors
    Any context beyond the employee’s immediate control. Work context can constrain or facilitate performance and the situation provides cues that guide and motivate people.

There are five categories of individual behaviour:

  1. Task performance
    The individual’s voluntary goal-directed behaviours that contribute to organizational objectives. Proficient task performance (1) is performing the work accurately and efficiently. Adaptive task performance (2) is how adaptive employees are in their performance. Proactive task performance (3) refers to how well employees take the initiative to anticipate and introduce new work patterns that benefit the organization. Adaptive and proactive task performance is important when the work is ambiguous.
  2. Organizational citizenship
    Various forms of cooperation and helpfulness to others that support the organization’s social and psychological context (e.g: covering a shift for someone else). Organizational citizenship can have negative consequences because it takes time and energy away from performing tasks.
  3. Counterproductive work behaviours
    Voluntary behaviours that have the potential to directly or indirectly harm the organization (e.g: bullying).
  4. Joining and staying with the organization
    Companies have to keep higher skilled and productive employees at their company.
  5. Maintaining work attendance
    Absence can cause the company to be short-staffed and knowledge will temporarily leave the company. Absence can have positive consequences because it can help people recover sooner. People that go to their work while absence should’ve occurred are less productive and may reduce the productivity of co-workers.

Personality is the relatively enduring pattern of thoughts, emotions, and behaviours that characterize a person, along with the psychological processes behind those characteristics. Traits are broad concepts that allow us to label and understand individual differences. Personality is not consistent across all situations, because some situations override the personality (e.g: a funeral). Personality typically stabilizes by around age 30, although it can still change. The five-factor model (Big Five) represents the five most broad dimensions of personality:

  1. Conscientiousness
    This characterizes people who are organized, dependable, goal-focused, disciplined and so on.
  2. Agreeableness
    This characterizes people who are trusting, helpful and good-natured.
  3. Neuroticism
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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 3

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 3

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Self-concept is an individual’s self-belief and self-evaluations. Our self-concept is defined at an individual, relational and collective level. An individual’s self-concept can be described by three characteristics: complexity (number of distinct and important roles), consistency (amount of self-views that require similar personality traits) and clarity (clear, defined and stable). Clarity increases with age because personality and values become relatively stable by adulthood and people develop better self-awareness through life experiences. Clarity is higher when the consistency is high.

The higher the complexity, consistency and clarity, the better well-being people tend to have. Too much variation causes internal tension and conflict, but consistency can help with this. Employees with complex self-concept tend to be better at adaptive performance. Self-concept clarity improves performance. There are four processes that shape self-concept and motivate a person’s decisions and behaviour:

  1. Self-enhancement
    This is a person’s inherent motivation to have a positive self-concept. People tend to believe they’re above average at things they care about.
  2. Self-verification
    This is a person’s inherent motivation to confirm and maintain his or her existing self-concept. People are more likely to remember information that is consistent with their self-concept. Employees are motivated to interact with others who affirm their self-views.
  3. Self-evaluation
    This is defined by three elements. Self-esteem is the extent to which people like, respect and are satisfied with themselves. Self-efficacy refers to a person’s belief that he has the ability, motivation, correct role perceptions and favourable situation to complete a task successfully. Locus of control is a person’s general belief about the amount of control he has over personal life events.
  4. Social-self
    The social identity theory states that people define themselves by the groups to which they belong to have an emotional attachment. Social identity is a complex combination of many memberships arranged in a hierarchy of importance. People want to belong to the group and be unique at the same time.

Perception begins when environmental stimuli are received through our senses. Through selective attention and emotional marker response, we make a perceptual organization and interpretation and this leads to attitudes and behaviour. One selective attention bias is the effect of our assumptions and expectations about future events. Our assumptions and expectations determine what we see (or what is more salient). Another selective attention bias is confirmation bias.

Categorical thinking refers to organizing perceptions into preconceived categories that are stored in our long-term memory. Another form of perceptual grouping involves filling in the missing information. The tendency to look for patterns is also a form of perceptual grouping, the grouping of perceptions in trends. Mental models are knowledge structures that we develop to describe, explain and predict the world around us. Mental models partly rely on the process of perceptual grouping. Questioning ourselves about our assumptions and working with people from diverse backgrounds is a good way to change mental models.

Stereotyping is the process of assigning traits to

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 4

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 4

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Behaviour in the workplace is influenced by cognitive processes and emotions. Emotions may have a greater effect because they can occur prior to cognitive processes. Emotions are physiological, behavioural and psychological episodes experienced toward an object, person or event. Emotional states are short-term and moods are long-term. All emotions have two common features: emotions have a certain valence, also called core affect (e.g: approach or avoid object) (1) and emotions ready us to some extent (2).

Attitudes are evaluations of an object or event. Attitudes consist of beliefs, feelings and behavioural intentions. Feelings can make sure that attitudes differ, even though the beliefs and the behaviours are the same for two people. Having more positive emotions at work can counteract negative experiences at work. Cognitive dissonance is the uncomfortable physiological state when attitudes and behaviour conflict. Cognitive dissonance can be reduced by changing the attitude or behaviour. Emotions are partly determined by personality. The actual situation in which people work has a stronger influence on their attitudes and behaviour than personality.

Emotional labour refers to the effort, planning and control needed to express organizationally desired emotions during interpersonal transactions. Emotional labour is higher when the display rules are precise, if the contact with the client is frequent and long and if the emotions have to be intense. Norms about displaying or hiding your true emotions vary across cultures. Emotional dissonance refers to the tension when the emotions people are required to display differ from the emotions they are actually experiencing at the moment. Surface acting can help with this, pretending to feel the expected emotion. Surface acting can lead to higher stress and burnout. The psychological damage can be reduced by seeing surface acting as part of a role. This does not deprive the person’s self-worth. Deep acting involves visualizing reality differently, which produces emotions more consistent with the required emotion. Deep acting requires emotional intelligence.

Emotional intelligence is a set of abilities to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion and regulate emotion in oneself and others. Emotional intelligence consists of four dimensions:

  1. Awareness of our own emotions
    This is the awareness to perceive and understand the meaning of our own emotions.
  2. Management of our own emotions
    This is the ability to manage our own emotions.
  3. Awareness of others’ emotions
    This is the ability to perceive and understand the emotions of other people.
  4. Management of others’ emotions
    This is the ability to manage other people’s emotions (e.g: consoling).

The four dimensions form a hierarchy and one dimension needs to be fulfilled in order to go to the next one (4-3-2-1). Emotional intelligence improves employee performance and well-being. It only improves tasks that require social interaction. Emotional intelligence can be improved through training and improves with age.

Job satisfaction is a person’s evaluation of his or her job and work context. It is

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 6

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The meaning and effect of money differ between men and women. Men attach more value to money than women. Women see money in terms of things they can do with it and men see it as a symbol of power and autonomy. People in countries with high power distance have a high priority for money.

There are four types of objectives of rewards:

  1. Membership- and seniority-based rewards
    These are monetary rewards for being a member somewhere and for working somewhere for a long time. These rewards can reduce turnover, but do not directly motivate job performance.
  2. Job status-based rewards
    These are rewards on the basis of the status or worth of the jobs they occupy. Job worth can be measured through job evaluation, which measures the required skill, effort, responsibility and working conditions. It can improve fairness, but also competitiveness within a company.
  3. Competency-based rewards
    These are rewards based on how well people perform on certain competencies (e.g: skill-based pay gives rewards based on the mastery of measurable skills).
  4. Performance-based rewards
    These are rewards based on an individual’s performance.

There are several types of performance-based rewards:

  1. Individual rewards
    These rewards are given to an individual for individual accomplishments.
  2. Team rewards
    These rewards are given to a team for team accomplishments. The gainsharing plan is a team-based reward that calculates bonuses from the work unit’s cost savings and productivity improvement (e.g: reward employees for cost reduction).
  3. Organizational rewards
    These rewards are given to the entire organization for organizational accomplishments. Employee stock ownership plans (ESOPs) are a reward system that encourages employees to buy company stock (e.g: employee discount). Stock options are a reward system that gives employees the right to purchase company stock at a future date at a predetermined price. A profit-sharing plan is a reward system that pays bonuses to employees on the basis of the previous year’s level of corporate profits.

Very large rewards can result in lower performance. Reward systems motivate most employees, but only under the right conditions. There are several strategies for improving reward effectiveness:

  1. Link rewards to performance
    By linking rewards to performance and making that known to the employees, performance can improve. This can be achieved by using objective performance measures.
  2. Ensure that rewards are relevant
    The rewards have to be relevant to the performance in order to improve performance.
  3. Use team rewards for interdependent jobs
    Team rewards are better for interdependent jobs because it is difficult to measure individual performance in these situations. Highly productive individuals prefer individual rewards.
  4. Ensure that rewards are valued
    The rewards have to be valued by employees in order to improve performance.
  5. Watch out for unintended consequences
    Unintended consequences of rewards should be avoided in order to improve performance (e.g: employees creating problems in order to solve them for rewards).
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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 7

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 7

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Decision making is the process of making choices among alternatives with the intention of moving toward some desired state of affairs. Rational choice decision making selects the best alternative by calculation the probability that various outcomes will occur from the choices and the expected satisfaction from each of those outcomes. An opportunity is a deviation between current expectations and a potentially better situation that was not previously expected.

There are five main problems of problem identification:

  1. Solution-focused problems
    This is identifying a problem as a veiled-solution, but this is not really the problem.
  2. Decisive leadership
    Leaders that announce problems or opportunities before logically assessing the situation does not help with identifying the problem.
  3. Stakeholder framing
    Stakeholders hide or provide information in ways that the decision-maker sees the situation as a problem, opportunity or steady sailing. This information is not always accurate and can lead to a wrongly identified problem.
  4. Perceptual defence
    People can fail to become aware of problems because they block out bad news as a coping mechanism.
  5. Mental models
    Mental models can blind us from seeing unique problems or opportunities. Things have to fit in mental models.

Identifying problems can be improved by acquiring new perspectives, having leaders that have the willpower to resist the temptation of decisive decision making and create a norm of divine discontent (never being satisfied with the current conditions).

Bounded rationality is the view that people are bounded in their decision-making capabilities, including access to limited information, limited information processing and a tendency toward satisficing rather than maximizing when making choices. Problems with goals are that problems are often ambiguous and problems can conflict. Sequential evaluation occurs because all alternatives are not usually available to the decision-maker at the same time. The implicit favourite is a preferred alternative that the decision-maker uses repeatedly as a comparison with other choices. The main reason why decision-makers compare alternatives against an implicit favourite is the need to minimize cognitive dissonance. There are three main decision-making heuristics:

  1. Anchoring and adjustment heuristic
    This is the tendency to be influenced by an initial anchor point such that they do not move away sufficiently from that point as new information is provided.
  2. Availability heuristic
    This is the tendency to assign higher probabilities to objects or events that are easier to recall.
  3. Representativeness heuristic
    This is a tendency to evaluate probabilities of events or objects by the degree to which they resemble other events of objects.

Clustering illusion is the tendency to see patterns from a small sample of events when those events are random. Satisficing is selecting an alternative that is good enough, rather than the alternative with the highest value. People stop searching for alternatives the moment they find one option that is good enough. Maximizing decision making is difficult when there are a lot of alternatives.

Emotions affect the evaluation of alternatives

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 8

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 8

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Teams are groups of two or more people who interact with and influence each other, are mutually accountable for achieving common goals associated with organizational objectives and perceive themselves as a social entity within an organization. Different types of teams can be distinguished by team permanence (1), skill diversity (2) and authority dispersion (3). Team permanence refers to how long that type of team usually exists. Authority dispersion refers to the degree that decision-making responsibility is distributed throughout the team or is vested in one or a few members of the team.

There are three types of teams: departmental teams (1), self-directed teams (2) and task force teams (3). Informal groups exist because humans are social animals, they want to belong to a group, they accomplish personal objectives and we are comforted by the presence of others.

People are more motivated in groups because they have a drive to bond, because of the accountability to fellow team members and because co-workers are used for comparisons. Teams make use of process losses, which are resources expended toward team development and maintenance rather than the task. If a task can be performed by one person, process losses can make a team less effective than an individual working alone. Process losses are amplified when more people are added or replace others on the team. Brook’s law states that adding more people to a late software project only makes it later. Social loafing is a problem that occurs when people exert less effort when working in teams than when working alone. Social loafing is more likely when individual performance is difficult to distinguish (1), the work is not very significant (2), employees lack motivation (3) and because of individual characteristics (4).

There are several strategies to reduce social loafing: form smaller teams (1), specialize tasks (2), measure individual performance (3), increase job enrichment (4) and select motivated, team-oriented employees (5).

A team is effective when it benefits the organization and its members, and survives long enough to accomplish its mandate. The team effectiveness model includes organizational and team environment, team design, team processes and team effectiveness. The organizational and team environment represents all conditions beyond the team’s boundaries that influence its effectiveness. The environment is a drive but can also generate drivers for change within teams, such as societal expectations.

There are several team design elements:

  1. Task characteristics
    The task characteristics are important for the effectiveness of a team. The more complex a task, the more process losses. This also includes task interdependence which refers to the extent to which team members must share materials, information or expertise in order to perform their jobs. The three levels of task interdependence are pooled interdependence (1), this occurs when people share a common resource. Sequential interdependence (2), this occurs when the output of one person becomes the input for another person. Reciprocal interdependence (3), this occurs when work output is exchanged
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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 9

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 9

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Frequent, timely and accurate communication is the primary means through which employees and work units effectively synchronize their work. The functions of communication are coordination, organizational learning, decision making, changing behaviour and support employee well-being.

The communication process model states that messages are formed and encoded and decoded and feedback is formed and encoded before being sent back and being decoded. According to this model, effective communication depends on the sender’s and receiver’s ability, motivation, role clarity and situational support to efficiently and accurately encode and decode information. There are four main factors that influence the effectiveness of this encoding-decoding process. A codebook makes effective communication easier (1), experience makes the process easier (2), the process is easier if the sender and receiver are skilled and motivated (3) and the process depends on the sender’s and receiver’s shared mental models of the communication context (4).

The medium is the channel through which information is transmitted. There are verbal and nonverbal channels. The use of e-mail in an organization reduces social and organizational status differences between sender and receiver. Written digital communication (e.g: e-mail) can potentially reduce stereotyping and prejudice because age, race and other features are unknown or less noticeable. The lack of face-to-face contact may also increase reliance on stereotypes.

There are several problems with email and other digital message channels. It is difficult to communicate emotions using digital message channels (1), there is less politeness and respectfulness (2), it is inefficient in ambiguous, complex and novel situations (3) and it contributes to information overload (4). Flaming describes digital messages that convey strong negative emotions.

Nonverbal communication includes facial gestures, voice intonation, physical distance and silence. Nonverbal cues are generally more ambiguous and susceptible to misinterpretation. Emotional contagion is the automatic process of catching or sharing another person’s emotions by mimicking that person’s facial expressions and other nonverbal behaviours. Emotional contagion influences communication and social relationships in three ways. Mimicry provides feedback (1), mimicking seems to be a way of receiving emotional meaning from people (2) and mimicry helps us fulfil the drive to bond (3).

There are four important factors when deciding which communication channel to use:

  1. Synchronicity
    This is the extent to which the channel requires or allows both sender and receiver to be actively involved in the conversation at the same time or at different times. Whether this factor is important depends on time urgency, the complexity of the topic, cost of both parties communication at the same time and whether the receiver should have time to reflect before responding.
  2. Social presence
    This is the extent to which a communication channel creates psychological closeness to others, awareness of their humanness and appreciation of the interpersonal relationship. Whether this factor is important depends on the need to empathize with and influence others.
  3. Social acceptance
    This refers to how well the communication medium is approved and supported by the
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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 10

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Power is the capacity of a person, team, or organization to influence others. Power is based on the target’s perception that the power holder controls. Power is also based on dependence, the target needs to believe that someone has access to a resource that can help or hinder him to achieve a goal. Countervailing power is the capacity of a person, team, or organization to keep a more powerful person or group in the exchange relationship. A minimum level of trust is crucial in order to have power. There are several sources of power:

  1. Legitimate power (power from position)
    This is an agreement among organizational members that people in certain roles can request certain behaviours of others. This is usually the most important source of power in organizational settings. Legitimate power has restrictions; it gives the power holder only the right to ask others to perform a limited domain of behaviours. This is called the zone of indifference. Information control is a form of legitimate power.
  2. Reward power (power from position)
    This is the power derived from a person’s ability to control the allocation of rewards valued by others and to remove negative sanctions.
  3. Coercive power (power from position)
    This is the ability to apply punishment.
  4. Expert power (power from characteristics)
    This is an individual’s or work unit’s capacity to influence others by possessing knowledge or skills valued by others. Expertise can help companies cope with uncertainties in three ways: prevention (1), forecasting (2) and absorption (3).
  5. Referent power (power from characteristics)
    This is the capacity to influence others on the basis of identification with and respect for the power holder. Referent power is associated with charisma.

Humans have a norm of reciprocity, a felt obligation and social expectation to help someone who has previously helped you. This norm is a form of legitimate power because it is an informal rule of conduct we are expected to follow. Charisma is a personal characteristic that serves as a form of interpersonal attraction and referent power over others.

There are four important contingencies of power:

  1. Substitutability
    Power is the strongest when the individual or work unit has a monopoly over a valued resource. Power decreases as the number of alternative sources of critical resource increases.
  2. Centrality
    This refers to the power holder’s importance based on the degree and nature of interdependence with others. Centrality increases with the number of people dependent on you and how quickly and severely they are affected by that dependence.
  3. Visibility
    Power increases with visibility. The more visible power cues are, the more power someone is perceived to have.
  4. Discretion
    This is the freedom to make decisions without referring to a specific rule or receiving permission from someone else.

Social networks are social structures of individuals or social units that are connected to each other

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 11

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 11

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Conflict is the process in which one party perceives that its interest is being opposed or negatively affected by another party. Conflict is based on perception. One party can believe they have a conflict without the other party believing this. Conflict can lead to lower performance, higher stress, dissatisfaction and turnover, less information sharing and coordination, increased organizational politics, wasted resources and weakened team cohesion. There are also benefits of conflict. The optimal conflict perspective states that organizations are most effective when employees experience some levels of conflict but become less effective with high levels of conflict. Conflict can lead to better decision making, make people more responsive to the changing environment and lead to a stronger team cohesion if the conflict is between the team and outside opponents.

There are two types of conflict:

  1. Task conflict (constructive conflict)
    This is a type of conflict in which people focus their discussion around the issue while showing respect for people who have other points of view. It focusses on an issue or task.
  2. Relationship conflict
    This is a type of conflict in which people focus on the characteristics of other individuals as the source of conflict. This conflict threatens self-esteem, self-enhancement and self-verification processes.

The stronger the level of debate and the more the issue is tied to our self-view, the more likely that task conflict will evolve into relationship conflict. There are three conditions that potentially minimize the level of relationship conflict during task conflict: emotional intelligence and emotional stability (1), cohesive team (2) and supportive team norms (3).

There are different sources of conflicts in organizations:

  1. Incompatible goals
    This occurs when one party’s goals interfere with another party’s goals.
  2. Differentiation
    This refers to differences among people and work units regarding their training, values, beliefs and experiences.
  3. Interdependence
    This refers to the extent to which employees must share information, materials or expertise to perform tasks. The risk of conflict increases with the level of interdependence.
  4. Scarce resources
    This refers to a scarcity in resources that two or more parties would like to acquire.
  5. Ambiguous rules
    This creates uncertainty which increases the risk that one party intends to interfere with the other party’s goals.
  6. Communication problems
    This refers to the lack of opportunity, ability or motivation to communicate effectively. A lack of communication leads to increased reliance on stereotypes.

Pooled interdependence occurs where individuals operate independently except for reliance on a common resource or authority. Reciprocal interdependence refers to high mutual dependence as well as higher centrality.

There are five ways of resolving conflicts:

  1. Problem-solving
    This is trying to find a solution that is beneficial for both parties. This is a win-win orientation. Information sharing is important for this style of conflict handling.
  2. Forcing
    This is trying to win the conflict at the other’s
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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 12

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 12

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Leadership refers to influencing, motivating and enabling others to contribute toward the effectiveness and success of the organizations of which they are members. Leadership refers to a role and not a position. Shared leadership is the view that leadership is a role, not a position assigned to one person and people within the team and organization lead each other. In order for shared leadership to be effective, formal leaders need to be willing to give up some power.

Transformational leadership refers to a leadership perspective that explains how leaders change teams or organizations by creating, communicating and modelling a vision for the organization and inspiring employees to strive for that vision. There are four elements of transformational leadership:

  1. Develop and communicate a strategic vision
    A vision is a positive image or model of the future that energizes and unifies employees. An effective strategic vision refers to an idealized future with a higher purpose, is challenging and makes use of symbols. The effectiveness of this vision depends on how leaders convey it to followers.
  2. Model the vision
    This is personifying the vision, act like the vision. This creates a shared mental image. This requires consistency between words and actions.
  3. Encourage experimentation
    This includes not punishing people for making mistakes as transformational leadership is associated with change and change is accompanied by mistakes.
  4. Build commitment toward the vision
    This can be done by being consistent with actions and reinforce the vision.

Charisma is a personal trait or relational quality that provides referent power over followers. It can be useful for transformational leadership but is not required for it. Charismatic leadership tends to produce dependent followers. A crisis leads to a greater attribution of charisma.

Managerial leadership is a perspective that states that effective leaders help employees improve their performance and well-being toward current objectives and practices. Managerial leadership assumes stable goals and external environment. Managerial leadership is more related to specific performance and transformational leadership is more abstract.

There is a difference between task-oriented behaviour and people-oriented behaviour:

  1. Task-oriented behaviour
    This includes behaviour that is oriented at the task and helps people perform a task.
  2. People-oriented behaviour
    This is behaviour that is oriented at people and makes the workplace more pleasant.

Servant leadership is the view that leaders serve followers. Servant leaders have a desire to help others and remain humble. The path-goal leadership theory states that the most effective leadership style depends on the employees and situations. This theory highlights four leadership styles:

  1. Directive leadership style
    This is task-oriented leadership.
  2. Supportive leadership style
    This is people-oriented leadership.
  3. Participative leadership style
    This is giving voice to the followers. This only works if the leader is willing to give up some power.
  4. Achievement-oriented leadership style
    This is encouraging peak performance and setting challenging objectives.

Employee characteristics

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 13

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 13

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Organizational structure refers to the division of labour as well as the patterns of coordination, communication, workflow and formal power that direct organizational activities.

Organizational structures include two requirements, the division of labour into distinct tasks (1) and the coordination of labour (2). Division of labour refers to the subdivision of work into separate jobs assigned to different people. Job specialization increases work efficiency. An organization’s ability to divide work among people depends on how well those people can coordinate with each other. There are three coordination mechanisms:

  1. Informal communication
    This is sharing information on mutual tasks as well as forming common mental models to synchronize work activities. It is useful in ambiguous situations. It makes use of direct communication, liaison roles, integrator roles and temporary teams.
  2. Formal hierarchy
    This is assigning legitimate power to individuals who ten use this power to direct work processes and allocate resources. It makes use of direct supervision and formal communication channels. A formal hierarchy is not efficient in novel or ambiguous situations.
  3. Standardization
    This is creating routine patterns of behaviour or output. It makes use of standardized skills, processes and output.

People with liaison roles are expected to communicate and share information with co-workers in other work units. People with integrator roles are responsible for coordinating a work process by encouraging employees in each work unit to share information and informally coordinate work activities.

Organizational structure has four elements: span of control, centralization, formalization and departmentalization.

The span of control refers to the number of people directly reporting to the next level above in the hierarchy. The best span of control is decided by the degree of autonomy for staff members (1), whether employees perform routine tasks (2) and the degree of interdependence among employees within the department or team (3). A highly interdependent job requires a narrow span of control because there is more conflict. The span of control is interconnected with organizational size and the number of layers in the organizational hierarchy. A wide span of control is only achievable by removing layers of management.

Centralization means that formal decision-making authority is held by a small group of people, typically those at the top of the organizational hierarchy. Larger organizations often decentralize, they disperse decision making authority and power throughout the organization.

Formalization is the degree to which organizations standardize behaviour through rules, procedures, formal training and related mechanisms. Formalization can increase efficiency and compliance, but it can reduce organizational flexibility, organizational learning and creativity. Formalization is also a source of job dissatisfaction and work stress.

A mechanistic structure is an organizational structure with a narrow span of control and a high degree of formalization and centralization. An organic structure is an organizational structure with a wide span of control, little formalization and decentralized decision making. Mechanistic structures operate better in stable environments because they rely on efficiency

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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 14

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 14

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Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. Shared values are values that people within the organization or work unit have in common. Shared assumptions are nonconscious, taken-for-granted perceptions or ideal prototypes of behaviour that are considered the correct way to think and act toward problems and opportunities. Espoused values are the stated values and enacted values are values we actually act upon. The organization’s culture consists of shared values and shared assumptions.

There are seven main corporate cultures, although many of the popular organizational culture models and measures oversimplify the variety of organizational cultures because as long as employees have diverse values, an organization’s culture will have noticeable variability. The seven main corporate cultures are innovation (1), stability (2), respect for people (3), outcome orientation (4), attention to detail (5), team orientation (6) and aggressiveness (7).

Subcultures can enhance the dominant culture by espousing parallel assumptions and values. Countercultures embrace values or assumptions that directly oppose the dominant culture. Countercultures potentially create conflict and dissension among employees, but can also maintain the organization’s standards of performance and ethical behaviour and they act as spawning grounds for emerging values that keep the firm aligned with the evolving needs and expectations of the environment.

Artefacts are the observable signs and symbols of an organization’s culture. There are four broad categories of artefacts:

  1. Organizational stories and legends
    This includes stories and legends that serve as powerful social prescriptions of the way things should or should not be done. The stories also produce emotions in listeners and these emotions tend to improve listeners’ memory of moral of the story.
  2. Organizational language
    This includes how employees talk to each other, describe customers, express anger and greet stakeholders. It stands out when employees habitually use customized phrases and labels.
  3. Rituals and ceremonies
    Rituals
    are the programmed routines of daily organizational life that dramatize the organization’s culture. This includes how visitors are greeted. Ceremonies are planned displays of organizational culture, conducted specifically for the benefit of an audience.
  4. Physical structures and symbols
    This includes the physical structure of a building, as this is built after the organizational culture and the structure subsequently reinforces or alters that culture.

The strength of an organization’s culture refers to how widely and deeply employees hold the company’s dominant values and assumptions. Organizational culture has three important functions: control system (1), it influences employee decisions and behaviour, social glue (2), it bonds people together and makes them feel part of the organizational experience and sense-making (3), it helps employees make sense of what’s going on.

Strong organizational cultures only improve organizational effectiveness under specific conditions. There are three conditions:

  1. Culture content is aligned with the external environment
    The benefits of a strong culture depend on whether the culture is aligned with the external environment.
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Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 15

Organizational Behaviour, emerging knowledge and practice for the real world, by S. McShane, M. Von Glinow (fifth edition) – Summary chapter 15

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Lewin’s force field analysis model describes the forces that drive and restrain proposed organizational change. Driving forces are forces that lead to organizational change. Restraining forces are forces that maintain the status quo. Stability occurs when both forces are equal. Unfreezing occurs when there is disequilibrium between the driving and the restraining forces, leading to effective change. Refreezing occurs when systems and structures are introduced that reinforce and maintain the desired behaviours. This model states that effective change occurs by unfreezing the current situation, moving to the desired position and then refreezing the situation.

Subtle resistance to change is more common than overt resistance to change. Some people experience change as relational conflict, although experiencing it as a task conflict would be more productive. There are several reasons why employees resist change:

  1. Negative valence of change
    Employees resist change when they believe the new situations will have more negative than positive outcomes.
  2. Fear of the unknown
    Change has a degree of uncertainty and employees tend to assume they are worse off when they are unsure about the outcomes of the change.
  3. Not-invented here syndrome
    This is resisting change when it comes from another place (e.g: department) than where the change is implemented.
  4. Breaking routine
    People tend to resist change that requires them to break habits.
  5. Incongruent team dynamics
    If there are incongruent norms in a team, change may be resisted.
  6. Incongruent organizational systems
    If organizational systems are incongruent, change may be resisted.

Unfreezing occurs when the driving forces are stronger than the restraining forces. Increasing the driving forces can be done by using threats, but this is ineffective. Weakening the restraining forces doesn’t lead to motivation to change.

Developing an urgency to change can help produce change in the organization and can be done by informing and reminding employees about competitors and other forms of external turbulence. A successful company is often less vigilant about threats. Creating an urgency to change when the organization is ahead of the competition requires a lot of persuasive influence that helps employees visualize future competitive threats and environmental threats.

There are six main strategies for reducing the restraining forces:

  1. Communication
    Continuously communication the need for change can reduce the restraining forces, but it is time-consuming and potentially costly. It decreases uncertainty about the future and creates an urgency to change.
  2. Learning
    This helps employees perform better after the change as it also promotes their confidence in their ability to change.
  3. Employee involvement
    The higher employee involvement, the more likely that change will be accepted and not resisted.
  4. Stress management
    Reducing stressors can reduce resistance to change, as change is stressful.
  5. Negotiation
    This can be used to exchange compliance to change for other benefits and thus reduce resistance to change.
  6. Coercion
    This includes a range of assertive influence
.....read more
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