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In most studies, it is assumed that leadership is something that is learned. Leaders' behaviors can be divided into two broad categories: initiating structure and consideration. A takeaway of this chapter is that leaders need to be flexible and adapt to both followers and the situation they are in. In order to addapt to the situation, leaders should follow the next steps:
Leadership refers to the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared goals. Leadership is an influence process. It involves directing others (individuals and groups) toward organizational goals.
Leadership is different from management. A manager administers, a leader innovates. A manager maintains, a leader develops. A manager is a copy, a leader is an original. A manager does things right, a leader does the right thing. A manager has his or her eyes on the bottom line, a leader's eye is on the horizon. In other words, leadership involves inspiring a vision. Management involves controlling the operations. There is, however, some overlap between leadership and management: managerial leadership refers to adapting to situational demands.
In the trait approach, it is assumed that leaders are born with the talent and ambitions for leadership. In contrast, many other leadership theories propose that leadership can be learned. When the trait approach was largely dismissed in the 1940s and 1950s, researchers turned their attention to what leaders do using behavioral approaches. Following a research program in the 1950s, it was found that the things leaders do, can be divided into two categories. First, initiating structure refers to defining tasks for employees and focusing on goals. Second, consideration refers to the degree to which the leader shows trust, respect, and sensitivity to employees' feelings.
A leader should be flexible and adapt their leadership behavior to followers and the situation. Leaders motivate their followers to accomplish objectives by establishing the paths to the goals. The path-goal theory (PGT) describes four different motivating leadership behaviors:
These four different types of leadership behavior influence follower's path perceptions, depending on the characteristics of the follower (ability level, personality, preference for structure, need for control) and of the situation (job design, formal authority system, workgroup norms). First, the E --> P expectancy is the follower's effort path to performance. In other words, if people try, they will achieve their goal. Second, the P --> O (performance-to outcome expectancy) is the belief that the leader will provide a reward that is wanted, and these rewards are of value to the follower or valences (Vs). In other words, the leader's behavior affects follower motivations to assure the leader will provide the rewards that are valued. The removal of barriers and strengthening of expectancies and instrumentalities results in follower satisfaction, effort, and performance.
Leaders treat their followers differently based upon their unique abilities and contributions to the work group and organization. The leader-member exchange (LMX) model is defined as the quality of the working relationship developed with each follower and is characterized by more delegation of authority to those with high quality. Leader decide, briefly, on their in-group members and their out-group members. Out-group members perform to the specifications in their job description, but they do not go above and beyond and do not take extra work. In-group members do.
Inclusive leadership underscores the LMX approach that each follower is unique. Inclusive leadership suggests that leaders help all team members feel part of the group (belongingness) while retaining their sense of individuality (uniqueness).
LMX relationships develop through three steps: role taking, role making, and role routinization.
Followership is also important for leadership. Followership is a voluntary deference process. However, it is different from submissiveness to authority. It is about the behavior of a person that engages in while interacting with leaders to meet organizational objectives.
Attributions represent a person's attempt to assign a cause to a behavior or event they observe. In line with this, attribution theory proposes that the attribution people make about events and behavior can be either internal or external. In the event of internal attribution, people infer that an event of a person's behavior is due to his or her own traits and abilities. In the event of external attribution, people believe that a person's behavior is due to situational factors.
Attributions can bias how we process information and make decisions. One way in which this occurs is called the fundamental attribution error, referring to the tendency to attribute other people's behavior to internal factors such as character traits of abilities, but when explaining one's own behavior, people tend to attribute the cause to the situation. A second way of bias is called self-serving bias, that occurs when a person attributes successes to internal factors and failures to situational factors. The further an event is in the past, the more likely the cause of a failure will be attributed to the situation.
How can a leader avoid attribution bias? One should gather additional information when ascribing a cause to certain behavior. By paying attention to overall patterns of behavior, one can make more accurate conclusions by considering the following:
Following these patterns we can conclude the following. If a leader wants to improve judgments and avoid the attribution error, he or she should consider how well other people would do in the same situation. For example, do all employees make the same mistake when filling out forms for customers? If so, maybe the form needs to be revised. When the right attributions are made, the working relationship between a leader and a follower will develop into a high-quality one.
One of the best things that can happen is when the leader becomes a mentor. Mentoring refers to an intense developmental relationship whereby advice, counseling, and developmental opportunities are provided to a protégé by a mentor, which, in turn, shapes the protégé's career experiences. Mentors provide both career support and social support.
Trust refers to the willingness to be vulnerable. Trust is related to many importance outcomes, including risk taking, job satisfaction and job performance. Trust is therefore very important for an effective and efficient organization. A three-part helpful framework to organize your thinking about how trust operates in organizations is discussed:
The development of trust is considered as tactical climbing, in which there are increasing levels of risk and vulnerability over time.
What to do when trust is broken? There are three important questions to ask in that situation:
The full-range leader development model is based on research on transformational leadership. In this model, leadership is considered a continuum. People start at the lower end of the ladder, which is called transactional leadership (behaviors that motivate followers through rewards and corrective actions). At the highest end of the model, people are more engaged with their leaders when their leaders behave in certain ways. This is called transformational leadership.
Transactional leadership is characterized by (from worst to best):
Transformational leadership is characterized by the four I's behaviors:
Leadership and ethics are intertwined; ethical decision making is important to the practice of leadership and contemporary theories of leadership address morality. Four components have been found on ethical leadership:
Two other theories on leadership have emerges: servant leadership and authentic leadership.
To sum up:
One important aspect of this book is to apply critical thinking. Despite many proponents of leadership, some researchers have criticized the emphasis on the leader and their behavior. An alternative view is to consider leadership in the eyes of the follower. Leadership, according to this view, is an attribution that a follower makes about another person.
The implicit leadership theory (ILT) studies how attributions about leadership affect follower perceptions of who you are in the role of the leader. People have implicit leadership schemas (models) in their minds of what constitutes an effective leader. In addition, people make significant attributions about the power of leaders. This is also called the romance of leadership. Leaders are not powerful because of their expertise or behaviors, instead their power is derived from follower attributions of their influence over events.
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Organizational behavior (OB) refers to the study of individuals and their behavior at work. Organizational behavior refers to a multidisciplinary and multilevel research field that finds its origins in applied psychology, cultural anthropology, communication and sociology. In this summary, all areas are considered, yet there is a focus on applied social psychology. Applied psychology is the study of how people interact in groups. In addition, research in the areas of sociology and anthropology help us understand organizational culture and leading change.
OB is a relatively young research field that originated in the human relations movement ignited by the Hawthorne studies, which led to a focus on the role of human behavior in organizations. The Hawthorne studies refer to two studies that were conducted by Elton Mayo between 1927 and 1932. In his first study, he experimented with the effects of lighting in power plants on worker productivity. Surprisingly, they found that productivity increased rather than decreased despite the lights being dimmed. The researchers decided to interview the workers. They learned that the workers appreciated the attention of the research team and felt that they were receiving special treatment. Productivity declined after the researchers left the plant. This is now called the Hawthorne effect, referring to a positive response in attitude and performance when researchers pay attention to a particular group of workers.
The second study aimed to investigate a new incentive system. However, instead of the incentive system increasing workers' production, the social pressure from peers took over.
Peer pressure had far more impact on the productivity of the workers than salary increases. Workers formed small groups and set informal standards for production, requiring coworkers to reduce their production, so pay was more equal among the group members.
The researchers of the Hawthorne studies concluded that the human element in organizations is more important than previously thought. The researchers found that workers want attention. Based on these Hawthorne studies, the human relations movement followed and OB emerged as a distinct field of studies in the 1950s. In 1957 the term organizational behavior first appeared in a book by Chris Argyris.
OB is an applied science. First, the goals of science are as follows:
Personality refers to the regularities in feeling, thought and action that are characteristic of an individual. Understanding your own personality and that of others is critical for an effective workplace. This is because the following two reasons:
However, it is important to be aware that personality and most individual differences are not like other areas of OB, where the manager can influence the outcomes by some sort of intervention. Instead, individual differences are aspects of OB that must be understood. Leaders must work with them rather than trying to change the people.
Are personality traits innate or learned? Can a brilliant scientist who is introverted, change his personality to become an extraverted visionary leader? The role of genetics for personality has been studied by the famous Minnesota twin studies. Different studies showed that 40% of the variation in choice of work and work motivation is due to genetics. The implications for a leader are that, although personality might change (a bit), it is a relatively stable individual difference. A leader should try to learn about personality differences, understand how different personalities operate at work, and then learn to work effectively with different types.
Exercise: think about the following question. Are leaders born or made? In other words, is leadership born (hereditary) or learned (through, for instance, training)? Motivate your opinion. If leadership is both hereditary and learned, as some researchers believe, what do you think is the best way to identify leadership potential?
The Myers-Briggs Type Indicator (MBTI) is the most frequently administered personality test that is used for non-psychiatric populations. This test is based on four general personality preferences:
One limitation of the MBTI is that there is limited research support
.....read moreThis chapter discusses the role that emotions and moods play in the workplace. In early OB literature, emotions and moods were largely ignored. It was assumed that employees left their feelings at home when they came to work. However, in the mid-1980's and the 1990s, organizational researchers began examining the effects of emotions and moods. The study of emotions and moods has revolutionized thinking about OB. In fact, by 2003, scholars referred to this research as the affective revolution in OB. Nowadays, it is argued that emotions and mood play an important role in the workplace. The remainder of this chapter focuses on how this is the case.
Affect is defined as the range of feelings that employees experience at work. Affect consists of both emotions and mood. You can visualize this as a triangle, with affect on top and emotions and mood at the bottom. An arrow is drawn from affect to emotions and from affect to mood. State affect refers to feelings that are experienced in the short term. They fluctuate over time. In contrast, trait affect refers to stable individual differences. Emotions are triggered by specific events. They are short, but intense enough to disrupt a person's thinking. Emotions last only seconds or minutes. Some emotions are internal to a person, such as pride or love, whereas other emotions emerge in relationship with others, such as shame and guilt. Moods, on the other hand, are general feeling states that are not connected to a specific event. In addition, they are not intense enough to disrupt regular thought patterns or work. Emotions are more fleeting than moods. A felt emotion, for instance anger at your boss, may pass. Emotions are directed at another person or situation. Obviously, emotions and moods are related. For instance, being in a good mood can result in the experience of feeling happy (an emotion).
The Affective Events Theory (AET) provides a useful framework for the material that is covered in this chapter. The work environment, events, personality, and moods combine to evoke emotional responses, which can be both positive and negative. The AET can be visualized as follows:
A review of AET resulted in the following statements of what we know about affective events at work:
Feeling part of the 'larger mission' of the organization increases workers' meaning in their work and their organizational commitment. This chapter discusses the importance of attitude and job satisfaction in the workplace. For a leader, the implication is as follows: create meaning at work.
An attitude is defined as a psychological tendency that is expressed by evaluating a particular entity with some degree of disfavor. In other words, attitudes are a person's evaluation of something else. These evaluations have three components:
This three-part conceptualization helps us to understand that attitudes are a complicated construct; it is not just that we think something and believe it to be true. We also experience feelings that are related to our beliefs and contemplate thinking actions based on those feelings. These components thus are all related to one another.
Cognitive dissonance is defined as the incompatibility between two or more attitudes and behavior. This causes stress for the individual, and that person will be motivated to resolve the stress by making a change in one or both of the other components. Thoughts, feelings, and actions need to be aligned. Question: how can the theory of cognitive dissonance be used to change the attitude of an employee?
Why is the measurement of attitudes important for the workplace? Attitudes can be studied both as outcome and predictor variables in organizational behavior. Attitudes make a difference in employee behaviors such as job performance. The importance of an attitude and the relationship between the attitude and the behavior increases the prediction of behavior. Social pressure may also enhance this relationship.
Job satisfaction is defined as a pleasurable or positive emotional state resulting from the appraisal of one's job or job experience. Job satisfaction may change over time, resulting in (in the event of positive change) better job performance. Job satisfaction has many different facets. It is possible that a person is satisfied with one aspect of their work, but dissatisfied with others. One of the most commonly known measures of facet satisfaction is the Job Descriptive Index (JDI), measuring satisfaction with: pay, promotions, supervision, coworkers, and the work itself.
Job satisfaction is the most frequently studied work attitude. Each year, the Society
.....read morePeople in organizations may see things differently, because they make perceptual errors. Perceptual errors are flaws in perception due to mental shortcuts that people make to simplify information that is processed. There errors have several implications on the workplace. They effect interpretations of the behavior of leaders and coworkers, they effect how job applicants are seen in interviews and they effect performance appraisals. Therefore, leaders need to be aware of these perceptual biases and guard against them.
The most studied biases in workplace settings can be remembered by the acronym PRACH, which stands for primacy, recency, availability, contrast and halo. Each of these will be discusses briefly below.
The primacy effect or belief perseverance refers to the first impression. It refers to the well-known statement "you never get a second chance to make a first impression". Indeed, first impressions do matter. They matter a lot. Stereotypes play an important role in these first impressions one has about for instance a job applicant. What can be done to address the primacy effect? Research has demonstrated that when people are asked to justify their decisions to others, they are more likely to process all the information that is available to them. Thus, accountability influences a person's vigilance and improves processing of all the information that is presented. Second, the leader should be willing to hit the reset button and look at a situation as if they had no prior exposure to it.
Not only do people remember what they experience first, they also remember the most recently presented items or experiences. This is referred to as the recency effect. For instance, if you hear a long list of names, you probably forget the ones in the middle, but you will remember those at the end. In a job interview for example, it is important to end on a positive note by showing the interviewer appreciation for their time. People can however improve their short-term memory by employing control processes that affect how information is stored and retrieved. Two of those techniques are rehearsal (repetition of information) and imaging (linking verbal information to visual images).
Availability bias is a form of bias in which a person's judgement is based upon what most readily comes into a person's mind. For example, when a person hears a list of names with 19 famous women and 20 less famous men, this
.....read moreIn most studies, it is assumed that leadership is something that is learned. Leaders' behaviors can be divided into two broad categories: initiating structure and consideration. A takeaway of this chapter is that leaders need to be flexible and adapt to both followers and the situation they are in. In order to addapt to the situation, leaders should follow the next steps:
Leadership refers to the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared goals. Leadership is an influence process. It involves directing others (individuals and groups) toward organizational goals.
Leadership is different from management. A manager administers, a leader innovates. A manager maintains, a leader develops. A manager is a copy, a leader is an original. A manager does things right, a leader does the right thing. A manager has his or her eyes on the bottom line, a leader's eye is on the horizon. In other words, leadership involves inspiring a vision. Management involves controlling the operations. There is, however, some overlap between leadership and management: managerial leadership refers to adapting to situational demands.
In the trait approach, it is assumed that leaders are born with the talent and ambitions for leadership. In contrast, many other leadership theories propose that leadership can be learned. When the trait approach was largely dismissed in the 1940s and 1950s, researchers turned their attention to what leaders do using behavioral approaches. Following a research program in the 1950s, it was found that the things leaders do, can be divided into two categories. First, initiating structure refers to defining tasks for employees and focusing on goals. Second, consideration refers to the degree to which the leader shows trust, respect, and sensitivity to employees' feelings.
A leader should be flexible and adapt their
.....read moreFour guidelines have been proposed for leaders to use power effectively in an organization. First, recognize that every organization has varying interests. The leader needs to first diagnose the political landscape. Second, figure out what point of view various individuals and units have on issues of concern. Third, understand that to get things done, you need power, so you need to understand where power comes from and how the sources of power can be developed. Fourth, understand the strategies and influence tactics through which power is developed and used in organizations.
Power is the potential of one person or one group to influence another person or group. Having power does not mean one has to actually exercise it. For instance, it is an officer's potential power to write you a ticket and not the actual behavior of writing a ticket that slows you down. Influence, on the other hand, is the exercise of power to change the behavior, attitudes and values of an individual or group. In other words, influence is the power in use.
There are five bases of power in organizations. The first three are position power, they come from a person's position in the hierarchy. The last two are personal power, they come from the personal characteristics of the person and may have no relation with one's position in the organization.
Three possible reactions of followers may result from these power bases.
Common pathways are as follows: follower engagement level
.....read moreLeaders play a major role in how motivated their followers are to perform at high levels. Leaders should assure that followers understand their goals and are committed to them. In addition, leaders can design more motivating work or allow followers some discretion to craft their own work. Lastly, leaders strengthen the expectations of followers that they can perform at a high level (expectancy) and that they will receive rewards that they value for performing (instrumentality). Holding high expectations might enhance the positive effects of a Pygmalion effect (self-fulfilling prophecy) on follower motivation.
Motivation refers to what a person does (direction), how hard a person works (intensity) and how long a person works (persistence). The motivation process describes three stages of motivation.
For motivation to be effective, feedback is needed in order for the process to stay on track. Feedback is a core element in various theories of motivation, including goal setting.
Early theories of motivation focus on the first part of the motivation process: energizing behavior. They focus on what needs or drives motivate people. A well-known theory on need motivation is the Maslow hierarchy of needs, consisting of the levels psychological needs, safety needs, social needs, esteem needs and self-actualization (the drive to meet our fullest capacity). This theory was the first to point out that there are individual differences in motivation. Even though this theory is appealing due to its simplicity and intuitive appeal, it is not supported by research evidence.
Another need theory considers three fundamental needs:
Another theory, the two-factory theory connects lower- and higher-order needs to job satisfaction. This theory is also called the motivator-hygiene theory. What do people really want from their work? When people think about this question, they think of things like supervision, pay, company policies and so one. These are called hygienes.
.....read moreThe previous chapter discussed how motivation is related to work performance. In this chapter, the topic of motivation is extended by discussing concrete motivation applications. Leaders may, for example, use the reinforcement theory by adding pleasant events (positive reinforcement) or removing unpleasant events (negative reinforcement). Both intrinsic and extrinsic rewards can be used. These may even be combined via mechanisms such as extrinsic in service of intrinsic or motivation-work cycle math. Money may be used as a reward, but only if the following guidelines are followed:
The reinforcement theory (also known as operant conditioning) is based upon the law of effect: past actions that led to positive outcomes tend to be repeated, while past actions that led to negative outcomes tend to diminish. This law of effect led to the development of the reinforcement theory, in which individual personality, thoughts, and attitudes do not motivate behavior. Instead, the psychologist B.F. Skinner found two kinds of reinforcers that increase behavior. First, positive reinforcement is a favorable event or outcome presented after the behavior. For example, praise or a bonus. Second, negative reinforcement is the removal of an unpleasant event or outcome after the display of a behavior. For example, ending the daily criticism when an employee shows up for work on time.
In contrast, punishment is the presentation of an adverse event or outcome that causes a decrease (instead of an increase) in the behavior. There are two kinds of punishment. First, punishment by application is the presentation of an unpleasant event or outcome to weaken the response it follows. For example, writing a letter to an employee's file for failing to meet a deadline. Second, punishment by removal is when a pleasant event or outcome is removed after certain behavior occurs. For example, withholding praise when an employee underperforms.
To sum up:
The schedules of partial reinforcement refer to how often an applied reward (or punishment) predicts learning and motivation. The schedules are based on time (interval) or the number of times the response is given by the worker (ratio). In addition, the schedule can be fixed or variable (random). These two dimensions result in the following four possible outcomes:
Research has shown that effective teams have a shared purpose. It is of key importance to set proper team goals. In addition, team members need to feel connected to the team. They should feel a sense of cohesion. Nowadays, the focus of team leadership has shifted from the leader to the team. This is called team-centric leadership. A team-centric leader creates a tight climate for a team, which in turn increases followers' empowerment. Leadership climate is effective when a team leader gives its team many responsibilities, asks the team for advice when making decisions, is not too controlling, allows the team to set goals, stays out of the way when the team works on its performance problems, tells the team to expects a lot from itself and trusts the team.
A team is defined as a small number of people with complementary skills, who are committed to a common purpose, performance goals and approach for which they hold themselves mutually accountable.
Another definition of team is two or more individuals who socially interact, possess one or more common goals, are brought together to perform organizationally relevant tasks, exhibit interdependencies with respect to workflow, goals and outcomes, have different roles and responsibilities and are embedded in an encompassing organizational system, with boundaries and links to the broader system context and task environment.
A work group interacts primarily to share information with other members. For example, members of a work group attend a monthly staff meeting and share what they are working on. They are not responsible for a collective work effort, or their individual contributions can be added up to create something.
In a work team, on the other hand, members depend on each other. They must interact to create something that they couldn't create as individuals. There is synergy in the team, meaning that the mean can produce something beyond the sum of individual member contributions.
Setting goals is just as important for a
.....read moreConflict reduces team performance. However, a little bit of conflict is good. In fact, Duarte and Davies (2003) point out an optimum level of conflict, characterized by constructive debate, improved decisions and high performance. Being emotionally intelligent is critical for resolving conflict and effective negotiation. In order to do this, a leader needs to be able to see the situation from the other party's point of view. This is also known as perspective taking, defined as the cognitive process in which an individual adopts another person's view to better understand their preferences, values and needs.
Conflict is defined as the process that starts when one party perceives that he is negatively effected by another party. Conflict depends on perception. It does not always line up with reality.
There are three sources of organizational conflict:
Some specific examples of where conflict in organizations may originate are personality (differences), sensitivity or hurt, differences in perception and values, differences about facts, differences about goals and priorities, differences over methods, competition for scarce resources, competition for supremacy, misunderstanding and unfulfilled expectations.
Conflict isn't always a bad thing. In fact, Duarte and Davies (2003) found that there is a curvilinear relationship between task conflict and performance. They pointed out an optimum level of conflict, characterized by constructive debate, improved decisions and high performance. On the other hand, too little conflict is characterized by apathy and poor performance. Too much conflict is characterized by disruption and poor performance.
Task conflict focuses on the importance to keep in mind that the organization's goals and ensuring that unproductive conflict is resolved before
.....read moreCommunication is of key importance to organizations, as it is related to both job performance and job satisfaction. Talking is the basis of the work of a manager. Without a doubt, spoken communication is a powerful way to influence others. In addition, nonverbal communication can be used for various different purposes. Yet, it is important to be aware that leaders cannot not communicate. Even not communicating is interpreted (for instance, remaining silent or not showing up for a meeting).
Organizational communication refers to the process in which individuals stimulate meaning in the minds of other individuals by means of verbal and nonverbal messages in the context of a formal organization. Positive organizational communication is related to both job performance and job satisfaction.
To understand the two-party communication process, it is important to understand the Shannon-Weaver model of communication. The elements of this model are:
As is mentioned at the decoding process, there may be barriers, blocking effective communication. Some people are uncomfortable communicating with others, this imposes a significant barrier to their success as a leader. Communication apprehension (CA) refers to an individual's level of fear or anxiety with either real or anticipated communication with other people. In other words, CA is anxiety or fear of an individual of either actual or anticipated communication, with a group or a person, that can profoundly affect their oral communication, social skills and self-esteem.
Words may have different meaning to different people, even if they are communicating in the same language. Due to noise and communication barriers, it
.....read moreDiversity refers to differences between individuals at work on any attribute that may evoke the perception that the other person is different from the self. Diversity poses unique challenges for organizational behavior. In fact, these differences between individuals pose a challenge for leaders who must unite their followers in the pursuit of a common goal. Leadership is not possible outside of a community that is defined by shared values and vision. Nowadays, the millennials are the largest group in the general population. Due to their numbers and impact, employers need to transition from a boomer-centric workplace to a millennial-centric workplace.
Surface-level diversity are the demographic attributes that we typically think of when we think of diversity, because they are observable to people. Surface-level diversity refers to differences among group members in overt, biological characteristics that are typically reflected in physical features. Examples are sex, race and age. Research shows that these attributes have mixed results in the prediction of job performance and work attitude. sometimes they are related to performance and sometimes they are not.
Deep-level diversity refers to differences among the attitudes, beliefs and values of individuals. Prior studies showed that diverse groups had poor outcomes. However, recent research indicated that this finding should be interpreted with caution. This is because when deep-level diversity is considered, diversity may actually contribute positively to work group functioning and effectiveness. In fact, the values and attitudes of employees may matter more than surface characteristics.
Finally, an interesting diversity feature is age. Different generations have been shown to have different underlying mind-sets and this may be a source of conflict at the workplace.
Generational differences have a key impact on the organization. They affect everything, including recruiting, building teams, dealing with change, motivating, managing, and productivity. Nowadays, four generations are at the workplace.
First, the traditionalists (born before 1943), of which most but not all are retired, are also known as veterans, the World War II generation and the silent generation. They typically spend a lifetime career with one company (build a legacy). Their career goals are security and fair rewards. They have a part-time schedule and they prefer support in maintaining a work-life balance.
Second, the boomers, born just after the
.....read moreOrganizational culture refers to a set of shared meaning that people in organizations have with respect to how to adapt to the environment and cope with change. Organizational culture is about innovation and risk taking, people orientation, team orientation, stability and so on. Culture is not just one aspect of the game, it is the game. An organization is more than the collective capacity of its people to create value. Three key managerial tools for leaders for leveraging culture for performance change are the following. First, recruiting and selecting people for culture fit. Second, managing culture through socialization and training. Third, managing culture through the reward system.
Organizational culture refers to the pattern of basic assumptions that a group has invented, discovered or developed in order to cope with problems of external adaption and internal integration. The assumptions have worked well enough to be considered valid, and therefore to be taught to new members as the correct way to perceive, think and feel in relation to those problems. It refers to a set of shared meanings that people in organizations have with respect to adapting to the environment and cope with change. Norms are based on the organizational culture.
Culture can be described in artifacts and creations, values and assumptions.
The seven characteristics of organizational culture are:
Organizational cultures can be examined by the mechanisms that are used for control when they are faced with goal incongruence and performance ambiguity. Goal incongruence occurs when organizational members do not agree on what the goals of the organization are or should be. Performance ambiguity occurs when revenue streams are unpredictable or uneven. Generally, there are three ways that organization address these issues.
Market control occurs when prices determine how social interactions between people are formed. For instance, you and your friends go for beverages and you choose the bar that has the best happy-hour prices. Social interaction requirements focus on reciprocity and exchange. Information
.....read moreWhen faced with organizational change, employee reactions may vary from resistance, compliance or commitment with change. Resistance to change has been associated with negative health, including insomnia and lower well-being. Leadership makes a difference: A study of planned organizational change in a hospital system found that authentic leadership influenced the processes of unfreezing, change and refreezing (Lewin's Three-Step Model of Organizational Change). For leaders, compassion is key, which refers to noticing, feeling, and understanding the suffering of a follower. Based upon this understanding, the leader takes action to alleviate the person's suffering. Leaders should promote compassionate organizational practices such as the prevention interventions that are discussed later in this chapter.
There are many forces that may drive organizational change, such as:
The forces for organizational change have resulted in the need for organizations to be proactive instead of reactive in reading the environment they operate in. Planned organizational change can have a number of targets, including structure, technology, processes, teams and people.
There are four types of planned organizational change:
Planned organizational change involves four organizational subsystems: formal organization, social factors, technology and physical setting.
Organizational development (OD) is a collection of social psychology methods that are employed to improve organizational effectiveness and the well-being of employees. Examples of organizational development interventions are survey feedback, workout, process consultation,
.....read moreIn OB, researchers apply critical thinking in a very systematic method to find ways to improve organizations. The scientific is an ongoing process and these are phases that are part of the process:
This chapter provides an overview of organizational structure. Organizational structure refers to the rules, relationships, communication channels, and duties that allow members to work toward shared goals. Jobs are the building blocks of organizational structure. A job is defined as "a set of task elements grouped together under one job title and designed to be performed by a single individual." To obtain the most positive outcome, social and technical aspects of jobs in organizations must be optimized. This is socio-technical system design called. This way, jobs can be designed so that people are more motivated and satisfied, as well as perform better.
Once jobs are specified, employees also need to understand reporting relationships and communication. Organizational charts provide important information about the power relationships and lines of communication built into an organization's structure. The most common organizational charts are:
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