OTB - Lecture Notes 1
OTB - Lecture Notes 1
ORGANISATIONAL BEHAVIOUR
Formal organizations
• Planned, rational, stable
• Profit/service to society
• Focus or particular jobs
• Communication has a well define flow; top - bottom
• Authority – there is define authority for the organization
• Behaviour – Rules, boss, regulations, policies are in play.
Informal organizations
• Spontaneous, emotional and dynamic
• Members satisfaction
• Roles bring people together
• Two-way flow of information; top – bottom and bottom - top
• Depends on a person to join or leave the organization
• Organizations work on norms, values, ethics, cultures that govern the group.
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Other goals
(d) Improves quality and productivity because managers are aware of employees’
unique behaviours that might need to be handled differently.
(e) After predicting and controlling behavior, it is hoped that employees will
improve people skills and behaviours.
(f) Understanding organization behavior this helps in managing a diverse work
force. A manager would be able to read their attitudes, perceptions, values,
motivations, etc.
(g) Organizational behaviour helps in empowering managers with administrative
skills to diverse labour force that comes from various backgrounds. This helps
in dealing with employees with diverse needs of globalization that is likely to
be different in needs, aspirations and attitudes. The different workforce usually
comprises of bosses, peers and subordinates born and raised in different
cultures.
(h) Understanding organizational behavior empowering people managers by
helping employees to be in charge of what they do. Managers learn how to
control and manage employees for them to take their responsibility.
(i) Organization behavior helps tp train employers in organizations to spearhead
innovations and change. OB acts as a foundation to wealth ideas and
techniques to aid in realizing these goals.
(j) Improving ethical behaviours; members in organization are facing the problem
of ethical dilemma. These arise in determining what is right and wrong,
corruption, absence from duty, etc.
(k) Understanding organization behavior helps managers to understand how
to motivate bi-modal work forces. This is much common in organization that
might employ both skilled and low skilled workers. In understanding OB it helps
managers to understand the two groups of employees paid differently in order
to both be motivated on their work.
(l) Organization behaviour might be used in improving employees declining loyalty.
The classical organizations believe that employees should be rewarded with
their loyalty and job security, benefits and pay increase. But modern
organizations have come up with an approach of discarding traditional policies
of job security, seniority and compensations.
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ATTITUDES
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Attitudes employees hold about their work, how they purchase goods or use services
depends on the attitudes the hold towards the target aspect.
Fundamental properties/components of attitudes
There are three (3) major components of attitudes among human beings;
(a) Cognitive component: This is the aspect of belief or thinking depending on the
way things are
(b) Affective component: This is the emotional or feeling segment of attitudes e.g.
“I hate employers who pay less.”
(c) Behavioural component: These are action towards someone or something. These
reflect the true behaviours of an employee. “I am going to look for a better paying
job.”
Learning attitudes
Attitudes that influence employees might be learned in the following ways;
(a) Conditioning (pairing a person with a given attitude with that who does not have
that particular attitude)
(b) Reinforcement (Rewarding people in order to attain a particular attitude e.g.
paying an allowance for people to work extra time)
(c) Vicarious learning (The are behaviours or attitudes that are acquired
spontaneously e.g using face-book and whatsapp)
Attitudes formation.
These are some of the ways in which individuals from attitudes among themselves.
The ways include;
(a) Direct experience (interacting with the source of the attitude).
(b) Parental influence (attitudes might be transferred from parents/ guardian to
children).
(c) Peer group influence (attitudes might be formed when members interact with
their peers at work).
(d) Education influence (the education people attain helps them change their
attitudes: the higher the education the more people work attitudes are
influenced).
(e) Mass media (Mass media such radios, news papaers, televisions, magazines,
etc influence people’s attitudes).
Learning of attitudes
i. Conditioning (this is through paring of employees for the to acquires attitudes
from their peers)
ii. Social learning (attitudes are learnt through social interactions).
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Structure of attitudes
Our attitude toward an object or event tends to help us behave in a certain way
towards them. Attitudes have three major components which include;
Smoking Smoking
Attitude
Behaviour
Resolve
(a) Attitude distant behaviour
(b) Rationalize
(c) Projection
Note: If the divergence in an attitude and behavior is not solved, then it results into
a cognitive dissonance.
Heredity: There are factors determined at conception that include physical ability,
beauty, gender, energy, biological, inherent psychological makeup. Our personality is
highly governed with traits.
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(i) Locus of control: Individuals believe that they control what happens to them i.e.
masters of their own fate and way of life. Individuals believe that luck and chance
are determinants of the way they do things. Locus of control might be internal or
external. Human beings tend to believe that they are controlled by outside forces not
from within.
(ii) Machiavellianism: This was discovered by Machiavelli. This is a degree to which
an individual is pragmatic maintains emotional distance and believes that end justifies
the means. Such kinds of individuals are frugal and work to obtain their goals by hook
or crook.
Personality determinant
Personality among human beings might be acquired or determined in the following
ways;
(a) Hereditary: personality might be transferred from parent to off springs.
Heredity includes; biological, physiological, and psychological make determined at
conception, also facial, temperaments, energy, reflexes.
(b) Environment: personality can be acquired from the environment where
people live.
(c) Freedom or will: one ability to decide with which factors to take on or keep
constant might determine their personality. A person has the ability to decide
whether to become a good employee or a bad employee.
Models of personality
A. Myers-Briggs indicators: It is classified into four categories;
(a) Extroversion Vs Introversion: Extroverts are outgoing, sociable and assertive.
Introverts are the reverse; shy and quiet.
(b) Sensing Vs Intuitive: People with sensing personality are practical and prefer
routine and order. Intuitive rely on unconscious process and look at a bigger
picture (talk a lot)
(c) Thinking Vs feeling: People with thinking use reason and logic to handle
problems. Feeling rely on personal value and emotions to solve problems.
(d) Judgments perceiving: Judgment prefer control, order and structures in their
environment. Perceiving would like flexibility and spontaneous.
B. Big Five: This was developed because the MBTI lacked supporting evidence.
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Person-job fit
The effort to match job requirement with personality characteristics (john Holland’s
personality job fit theory). Holland presented six types of personalities of the
personality-job fit theory.
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Person - organization fit reveals that people are attracted to, and selected by
organization that match their values, and leave organizations that are not compatible
with their personalities e.g. extroverts may fit well with organizations that are
aggressive and have team-oriented cultures. Open people; fit for organizations that
call for innovation rather than standardization.
ATTRIBUTIONS
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may attribute it to external factors (coming early) but if it is unique, and match it
to external factors.
iii) Consistency: Does the person respond to the stimulus in the same way overtime?
Coming late for one day might not be interpreted in the same way as a person
who does it as a routine.
Internally caused: This believes that one’s behaviour is under personal control of
an individual to determine whether it is internally or externally generated.
Externally caused; one’s behaviour is due to a given situation, not from him/herself.
Attribution theory
This explains the ways in which we judge people differently, depending on the
meaning we attach on behaviour. When we observe people’s behaviour we tend to
determine whether it is internally or externally generated.
Attribution errors
There are some errors/biases which occur during the line of attribution which distort
attributions, the main attribution errors include, there are two major biases;
(i) Fundamental attribution error: This is the tendency to underestimate the
influence of external factors and overestimate the influence of internal or personal
factors. E.g. sale managers are likely to attribute their poor performance to sales
team rather than to innovative products sold by their competitors.
(ii) Self-serving bias: Individuals and organizations tend to attribute their own
success to internal factors such as ability or effort, while putting blame to external
factors e.g. lack of unproductive co-workers.
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These include;
1. Over confidence bias: This is tending to be gas too optimistic on what you are
making your decision or judgment e.g. this can arise when decision makers are
making decision on problem outside their expertise.
2. Anchoring bias: Tendency to fixate on the initial information and fail to
adequately adjust on the subsequent information. For example, failing to adopt to
the changing demands of the time e.g. technology, policy etc.
3. Confirmation bias: Rational decision-making process assume that we are
objective in gathering information. But we don’t. We selectively gather it.
Confirmation of the selective perception, we seek to understand information that
re-affirms our choice and we discontinue information that contradicts it.
4. Availability bias: Tending to base our judgments on the information readily
available for us. We do not do research.
People tend to refer to businesses we know as benchmarks to our decision, and
we are likely to reject those we do not know (bias is brought by lack of information)
5. Escalation of commitment: This is increased commitment to a previous decision
in spite of the negative information (or whether it is clearly wrong) e.g. what was
our decision last time?
6. Randomness error: Most managers have difficulty with dealing with chance. In
rational decision making we believe that we are in control of our destiny and
leaving no room for chance (loss). It might be due to superstitions
7. Winner’s curse bias: This is over estimating a situation, when it would have been
less in making decision. This usually leads to a loss. E.g. in an auction people
might take on goods at high prices when they would have been actually low.
Usually occurs when there are many bidders.
8. Hindsight bias: This is a tendency to reduce our abilities from learning from the
past. Permits us to think that we are better in making predictions than we really
are. It is a tendency to believe falsely, after outcomes of an event is actually
known that we had actually predicted the outcome.
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(d) System imposed time constraints: This is the imposing deadlines to decisions
e.g. a report should be submitted one week to members before the report.
(e) Historical precedents (organization practices): How have decision been made
on such issues before. If wrong decision were taken earlier, they would be taken
again.
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(g) Undertaking duties without asking who is the supervisor, or what is the
supervision process?
(h) An employee not putting much emphasis on remuneration or rewards at work.
Payment not being the first priority at work.
(i) An employee does not much consider promotion as an issue at work.
(j) Being able to work in distant places far from home.
(k) Having a good working relationship with co-workers
(l) Does the employee allow to work during their own time when then they are
supposed to be off with or without pay?
(m) How does the employee respond to opportunities that give advantage to the
organization?
(n) Does the employee like the overall corporate culture of the organization?
A. Organizational Variables:
The organization determinants of employee satisfaction play a very important role.
The employees spend major part of their time in organization so there are number of
organizational variables that determine employee satisfaction of the employees. The
employee satisfaction in the organization can be increased by organizing and
managing the organizational variables or organizational factors. Organizational
variables include;
(a) Organization Development: Organizational development is an ongoing,
systematic process to implement effective change in an organization. Its
objective is to enable the organization in adopting-better to the fast-changing
external environment of new markets, regulations, and technologies. It starts
with a careful organization-wide analysis of the current situation and of the
future requirements. In other words, we can say that organization development
is the process through which an organization develops the internal capacity to
most efficiently and effectively provide its mission work and to sustain itself
over the long term. This definition highlights the explicit connection between
organizational development work and the achievement of organizational
mission.
(b) Policies of compensation and benefit: This is the most important variable
for employee satisfaction. Compensation can be described as the amount of
reward that a worker expects from the job during and at retirement. Employees
should be satisfied with competitive salary packages and they should be
satisfied with it when they compare their pay packets with those of the
outsiders who are working in the same industry.
(a) Promotion and career development: Promotion can be reciprocated as a
significant achievement in the life. It promises and delivers more pay,
responsibility, authority, independence and status. So, the opportunity for
promotion determines the degree of satisfaction to the employee. For example;
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equal opportunity for promotion, equal opportunity to grow despite being male
or female
(b) Job Security: Job security is an employee's assurance or confidence that they
will keep their current job. Employees with a high level of job security have a
low probability of losing their job in the near future. Certain professions or
employment opportunities inherently have better job security than others. Job
security is also affected by a workers’ performance, success of the business
and the current economic environment.
(c) Working environment and condition: Employees are highly motivated with
good working conditions as they provide a feeling of safety, comfort and
motivation. On contrary, poor working condition brings out a fear of bad health
in employees. The more comfortable the working environment is more
productive will be the employees. For example, feeling safe and comfort in
working environment, having tools and equipment, good working methods,
having security guards and parking facility, having offices with well-ventilated,
good lights, fans and air-conditioning, neat and clean office place, rest area
and washrooms might be determinants of how employees will be satisfied with
their jobs.
(d) Relationship with supervisor: A good working relationship with your
supervisor is essential since, at every stage, you need his or her professional
input, constructive criticism, and general understanding.
(e) Work group: There is a natural desire of human beings to interact with others
and so existence of group in organization is a common observable fact. This
characteristic result into the formation of work group at the work place. It has
been noted that isolated workers dislike their job. The work groups make use
of a remarkable influence on the satisfaction of the employees with their job.
Such include their relationship with the group members, group dynamics, group
cohesiveness and need for affiliation.
(f) Leadership styles: The satisfaction level on the job can be determined by the
leadership style. Employees’ job satisfaction is greatly enhanced by democratic
style of leadership than other leadership styles. It is because democratic leaders
promote friendship, respect and warmth relationship among the employees. On
contrary, employees working under authoritarian and dictatorial leaders
express low level of employee job satisfaction.
(g) Other Factors: There are some other important variables which affect the
level of employee job satisfaction in their organizations include;
• External support that the organization might offer to the employee out of the
normal or contractual terms. For example, salary loans and advances,
mortgages, etc.
• Counseling services the organization offers to employees.
• Technological advancement of the organization.
• Link of the organization to the employees’ families.
• Concern of the organization to the challenges of the employees.
B. Personal Variables:
The personal determinants also help a lot in maintaining the motivation and personal
factors of the employees to work effectively and efficiently. Employee satisfaction can
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be related to internal factors that are within the employee him/ herself. The personal
factors might include the following;
(a) Personality: The personality of an individual can be determined by observing
his individual psychological condition. The factors that determine the satisfaction
of individual and his psychological conditions is perception, attitude and learning.
(b) Expectation: The expectation level of employees affects their job satisfaction
levels. If one receives more outcome than expected then he will be highly satisfied
with his/her job, or vice-versa. Employees expectations are much connected with
what they get as tangible benefits from the organization they are working for.
(c) Age: Age can be described as noteworthy determinants of employee job
satisfaction. It is because the younger the age of the employees the lesser the
demand of life. So, even a lesser pay can be able to satisfy the younger employee
compared to older persons/ employees who have higher demands.
(d) Education: Education plays a significant determinant of employee satisfaction as
it provides an opportunity for developing one’s personality. Education develops
and improvises individual wisdom and evaluation process. The highly educated
employees can understand the situation and assess it positively as they possess
persistence, rationality and thinking power. Highly educated employees possess
rationality and thinking power and education develops individual wisdom and
evaluation process compared to those with no or low education levels.
(e) Gender Differences: The gender of the employees plays important determinant
as regards employee job satisfaction. In studies that have been conducted as
regards gender and employee job satisfaction women are a fairer sex, are more
likely to be satisfied with their job than their counterparts (males).
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Dissatisfaction
As much employees can be satisfied at work, they can also be dissatisfied.
Dissatisfaction in organizations might be seen through the following ways;
(a) Negative behaviour directed toward the organization.
(b) Behaviours leading one to leave the organization.
(c) Voices that are raised to actively and constructively improve the working
conditions.
(d) Reduced loyalty leading to passive behaviours.
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(e) Neglecting duty and allowing condition worsen e.g. absenteeism, lateness.
(f) Employees distancing themselves from work
(g) Working for a few hours and pretense dominates the rest of the working time.
(h) Poor working relationship between the employer and the employee even when
the employer offers a good ground for working.
(i) Not meeting demands of the employer to attain the education goal.
(j) Display of bad attitudes towards work.
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