Organizational Behavior

Nelia Alibin, Ph.D. July 10, 2010

Organizational behavior is concerned with the study of the behaviors/attitudes, culture and performance of employees in organizational settings;

The organization’s informal group’s effect on employees perceptions, attitudes and actions; The environment’s effect on the organization, its structure and goals and the effect of individual employees and groups of employees on the organization and its effectiveness. (Mark J. Wallace)

Understand the behavior s and attitudes of individuals, groups and formal organizations to adequately study organizational behavior Formal organizations, informal groups and environment influence individual attitudes, behavior and performance The interrelations among individuals, groups, organizations and environments must be made explicit to unravel managerial issues To comprehend OB it is necessary to delve into behavioral sciences and to employ the methods of science that characterize research in these disciplines

OB is a blending streams of theory and

research The field places equal weight on understanding the behavior and performance of individuals, groups and formal organizations It recognizes the importance of environmental influences on each of these aspects of organizations

Nelia Alibin, Ph.D. July 10, 2010

The best means of societal change and forward

movement are education and organizational development (S. Foster) The only constant in organizations today is change (C. Handy) Not to change is a sure sign of imminent extinction.

(Sir John Harvey‐Jones) A universal change principle is that: People do not hate change, it’s that people hate to be changed. (G. Helling) All real management is change management. (Z. Barry) The only good theory is a practical one. (K. Lewin)

Globalization/ Internationalization Performance –

Quality Issues Diversity – Participation Issues Distance – Geographical Issues Cost Reduction – Revenue pressures Staff Shortages (management/ staff ratios) Brain‐Drain‐Diaspora Issues ICT Capacity issues: Cost, training, uses

Needs for increased efficiency Integrity‐Ethics‐CSR Issues AIDS/HIV, healthcare issues Pressures for better internal HRD/ HRM Cross Cultural and Language Issues Increased social and public issues Others (suggest, discuss these further)

Creating different avenues whereby all employees

at all levels have possibilities to propose small, medium or even radical changes that may make BIG differences.

Finding an optimal balance between innovation and efficiency at any point in time and place within organizations Exercise in creative thinking

Problem: How many uses for “x” are there?

Fluency (no. of ideas generated) Flexibility (no. of categories) Elaboration (no. and types of models) Originality (p<.05 . . . Rare) Practicality (solves a real problem)

n.b. If I am not very good at some of these, I need someone on my team who is . . .

2. Growth

1. Birth

5. Dissolution

3. Maturity

4. Revival

Naturally‐occurring change –

development, aging,

forgetting Intentional, planned change – trying to learn, to make a difference, to remember Changes at four levels: individual, group, organizational and societal Naturally occurring resistance to change on the same four levels

Long‐range efforts, programs aimed at improving

organizational ability to survive, and eventually to prosper by changing problem‐solving and renewal processes.

Organizations naturally change over time The idea is for OD to guide this process purposefully.

Answer these questions for yourself then compare

answers with your colleague(s)? http://www.change‐management.com/tutorial‐

change‐process‐detailed.htm

How natural is change? Example?

How natural is resistance to change? Why? What

resistances are we facing?

How is change traditionally managed in organization such as yours?

How is resistance traditionally managed in organizations?

Why should we want to do it differently?

C=f(D x S x P) > x

Where:

C= Change D= Dissatisfaction S= Identifiable, desired end‐state (benefit) P= a practical plan to achieve the end state X = the costs of change to the institution

On the next page is a series of questions in two

categories: a) innovative climate b) resource support Rate a target organization as “Org A” Rate a comparison organization as “ Org B” And then rate your “Ideal(target) Org. profile.

Discuss the actual‐ideal gaps in terms of how to

bridge them in the future

Scoring: 1 – Strongly Disagree; 2 – Mildly Disagree; 3 – No Opinion; 4‐ Mildly Agree; 5‐ Strongly Agree

Measures: 1.

2.

3.

4.

5.

Creativity is encouraged People are allowed to solve the same problems in different ways People are given free time to pursue creative ideas Publicly recognizes and rewards innovators Flexible and always open to change.

Opposites

Scoring: 1 – Strongly Agree; 2 – Mildly Agree; 3 – No Opinion; 4‐ Mildly Disagree; 5‐ Strongly Disagree 6.

7.

8.

9.

10.

Peoples’ primary job are to follow orders from the top.

The best way to get along here is to think and act like others.

This place seems to be more concerned with the status quo than with change.

People are rewarded more if they don’t rock the boat.

New ideas are great, but we don’t have enough people or money to carry them out.

Uncertainty Fast

Leader Moderate

Change Manager

Slow

Administrator

Effectiveness

Efficiency Simple

Moderate

Complexity

High Complexity

Planned interventions Organization‐wide

activity Lead from top (typically) Increases organization effectiveness Uses behavioral science knowledge to achieve meaningful, beneficial changes

. . . is based upon: Respect for people | Trust and Support | Power Equalization | Confrontation |

Characteristics

Focal Area

Change

Change is planned by managers to achieve goals

Collaborative Approach

Involves collaborative approach and involvement

Performance Orientation

Emphasis on ways to improve and enhance performance

Humanistic Orientation

Emphasis upon increased opportunity and use of human potential

Systems Approach

Relationships among elements and excellence

Scientific Approach

Scientific approaches supplement practical experience

Goals

Percent of Organization

Increase Productivity

20

Increase responsiveness to clients

19

Improve competitive positioning (increase productivity/ decrease costs)

19

Increase employee involvement and participation

19

Increase employee morale

18

Develop new managerial skills and strategies

14

STAGE 1 Anticipate Need for Change

STAGE 5 Self Renewal.

Monitor and Supervise

STAGE 4 Action Plans, Strategies and Techniques

STAGE 2 Develop the practitioner‐ client relationship

STAGE 3 The Diagnostic Phase

Stage 1: Anticipating Need for Change

Somebody recognizes needs for change There must be felt needs for change, i.e. dissatisfaction with the status quo Belief exist that changes are necessary, desirable and possible

Stage 2: Developing practitioner‐

client

relationships

OD practitioner/ consultant enters system | |

Good first impressions and fit are important Practitioner establishes mutual trusts, open communication, shared responsibility

Stage 3: The Diagnostic Phase

Practitioner and client gather data about system Identify the true state of affairs Objectives are to understand client’s problems, identify forces causing situation and select change strategies

Stage 4: Action Plans, Strategies and Techniques

Series of interventions, activities or programs aimed at increasing effectiveness Programs apply OD techniques

Stage 5: Self‐renewal, monitor and stabilize

As OD program stabilizes, need for practitioner decreases Monitor results Stabilize Change Gradual disengagement of OD practitioner/ consultant

Intergroup development Process Consultation Sensitivity Training Survey Feedback Team Building

Lack of top‐level support and/or action Insufficient communication/ feedback People don’t know what, why or how!

Reward systems do not change or support Technical Focus leaves people out Resistance is unanticipated/ poorly managed Insufficient training (team and technical) Timing Issues (too fast or too slow) Others, examples? discuss

Definitions:

Strategic Performance management is a system and set of processes to ensure alignment of all organizational activities Performance Management attempts to specify, assess and improve performance at all levels: individual, group and organization‐wide

Alignment (Strategy)

Alignment (Tactics)

Vision

Objectives

Mission

Operations

Longer‐Term Goals

Outcomes

Strategies

Feedback

Performance Management Characteristics

Significant

Some

None

Management team created a sense of 84% urgency

38%

9%

Strategy translated into a balanced scorecard

84%

41%

0%

Key performance indicators aligned on all levels

72%

39%

0%

Everyone knows the strategy

56%

32%

0%

Individual + team targets are aligned with the strategy

42%

26%

0%

Balanced scorecard is an integral part 100% of the strategic planning process

40%

0%

Budgets are aligned with the strategy

29%

0%

42%

Source: “The future of the balanced scorecard: Prof Robert S. Kaplan”

FLUCTUATING = STRONG VISION + WEAK IMPLEMENTATION

VISION

GOOD PERFORMANCE = STRONG VISION + STRONG IMPLEMENTATION

GOING NOWHERE =

CONSERVATIVE =

WEAK VISION

WEAK VISION

+

+

WEAK IMPLEMENTATION

STRONG IMPLEMENTATION

EXCELLENT PERFORMANCE MANAGEMENT

IMPLEMENTATION Source: Power of Performance Management, How Leading Companies Create Sustained Value, A.A. de Waal, John Wiley and Sons, 2001

What?

Systematic definition of mission, strategy and goals of the organization

How?

Making sure goals and objectives are measurable and manageable

Why?

Being able to keep the organization on track and aligned

Qualitative

1. High Quality Management Information Reporting

2. Timeliness of Information

3. Efficient communication, common language, common goals

4. Aligned Culture

BENEFITS

Quantitative

Short Term

Long Term

TIME SCALE

Chart Title

degree of success

120 seen as industry leader over the past 3 years

100 80

financially ranked as the top 3 of its industry

60 40

last major cultural or operational change as very successful

20 0

3‐year ROI organizations organizations with without structured structured PM PM

degree of success

laggards

% market share in profitable segments

average

% gross margin

best in class

0

10

20

30

40

Source: Aberdeen Group, Closed Loop Corporate Performance Management Benchmark Report,” 2005 (150 organizations from America, Europe and Asia).

Performance Factors

Effect of Performance Management

Reaching Organizational Goals

Positive

Higher Quality of Work

Very Positive

More Innovation

Positive

Source: “Quest for Balance , “ A. A. de Waal, John Wiley & Sons, 2002

CLARITY on goals to be achieved CLARITY on responsibilities CLARITY on tasks CLARITY on results achieved CLARITY on consequences of non‐performance CLARITY on support to be expected CLARITY on timeliness Counteracts escape + shunning behaviors Fosters teamwork

Is this the situation in your organization?

Performance information is transparent, customised and timely Analyses are clear (not only “what” but also “why”) Efficient Management discussions (vertical + horizontal) Managers + employees understand business processes and “think” constructively about these Swift (corrective + preventive) actions where needed “Everyone typically know what to do!”

Achieve sustainable performance increases Act as change levers to develop a more performance‐ oriented culture Increase worker motivation and commitment Enable people/ groups to develop abilities, increase job satisfaction and achieve full potential benefitting the whole organization Develop constructive and open relationships between workers and managers in a continuing dialogue linked to the worked actually being done throughout the year Provide opportunities for people to express aspirations and expectations about their work

Create continuous improvement Support planning or organizatinal

activities Reinforcement of organizational leadership Rewards and recognitions Influencing employees’ attitude Create benchmarks Individual and organizational learning Focus and justification of strategic decisions

Feasibility Analysis Questionnaire (4 – fully; 3 – partially; 2‐ not enough; 1 – no)

1.

Do organizational members acknowledge that the current performance management system does not provide them with sufficient support?

2.

Do members agree on the necessity and the importance of performance management?

3.

Is the organization itself stable?

4.

Is the organization’s working environment stable?

5.

Do organizational members agree on the starting time of the performance management improvement project?

6.

Are enough resources available for the performance management improvement project?

7.

Are there members that have earlier (++) experiences with performance management?

8.

Do organizational members have clear insight into the market and their position in it?

9.

Has the organization a mission and a strategy?

10.

Do organizational members have insight into the business processes, the organizational structure and the relationships between these?

11.

Does the organization have an open communication structure?

12.

Ready to start the strategic performance management improvement project?

SOURCES OF INNOVATION

Human Resources: people, groups

Structural Variables

Organizational Culture

“People in groups using their collective

intelligence to produce changes aimed at improving their situations.”

“. . . Aligned individuals whose members spontaneously learn and innovate in ways that promote the well‐being and mission of the organization.” (Senge, P.)

Like individuals, organizations are born with

varying degrees of intelligence and potentials to act to increase their intellectual competence and their performance capabilities. “effectively developing and synergistically using

collective intelligence can depend upon how well individuals learn to function together as teams.”

Basic Assumptions:

Everyone can be a source of useful ideas: Learning flows in many directions, as such it may not be directly aligned to organizational hierarchies; All new ideas are potentially valuable Human potential is largely untapped.

Balanced Scorecards –

leading indicators Benchmarking –systematic ratings; Time in relation to speed (customer) Employee Motivation Importance of R&D and Training and Educ

Organizational IQ as Q ratio (assets/value) Organizational SWOT/ PEST Analyses Teams that develop, preserve and apply

knowledge; PERFORMANCE MANAGEMENT to develop HIGH PERFORMANCE ORGANIZATIONS

Organizations change with experience Organizations can fail to learn from their mistakes

and suffer attendant consequences – “avoidance reaction” Organizations learn from events in their environments in ways that can be more or less adaptive or reactive Training and development policies Investment in research

Proactive learning (double loop) vs

reactive

learning (single loop) {Argyris}

http://www.infed.org/thinkers/argyris.htm

A flourishing, open, challenging community of

people who regularly share knowledge and learning across the system so that innovation and speedy implementation can occur.

In short, a lively and exciting place to work –

a place where people feel that their contributions are truly appreciated.

The need to design a process of implementation

that enables organization members to learn is critically important in the field of organizational change. Indeed, it is what organizational change is about.”

Beer and Nohria: “Breaking the Code of Change”

New or Improved:

Attitudes (e.g. professionalism) Behaviors ( e.g. communication skills) Capabilities (e.g. problem‐solving skills) Converting challenges into opportunities Interpersonal Skills (e.g. cooperation) Increased team performance Personal and corporate values Corporate Culture Others (discuss)

. . . the ability to apply prior learning in order to find and solve problems in new situations – transfer of knowledge and skills in the workplace

Learning to Learn –

carry‐out lifelong learning for organizations that practice continuous improvement.

Prompted by trends e.g.

globalizations/ diversity Technological changes Rising expectations

Mindful leadership:

Creates shared vision “Servant” leadership http://www.leadersdirect.com/servant‐leadership “Social” architecturehttp://www.thepracticeofleadership.net/2 008/03/24/leader‐as‐social‐architect/

Empowerment Emergent Strategies Well developed corporate culture Full information / Sharing / Feedback High performance

Systems Thinking

Personal Mastery

The Learning Organization Focus (P. Senge)

Shared Vision

Mental Models

Team Learning

Create

1.

Degrees of openness, space and encouragement Breadth – the use of both internal and external perspectives Depth – single vs double loop (self‐correcting) learning

Capture and Communicate

2.

Effective use of systems and media to transmit learning Degrees to which tacit becomes explicit knowledge through teamwork, review processes and database codification Known availability/ use of channels to disseminate learning

Capability

3.

Encouragement of working across boundaries Empowerment to act on one’s learning Encouragement to coach and develop individuals “silos” are seen as inhibitors (hence BPR)

Cementing

4.

Leaders actively model change = they think and behave as learners Rewards and sanctions reinforce importance of learning, openness and implementation of best practices

Human Challenges

5.

Basic questions can be questioned Tolerance of mistakes – mistakes are seen as being new learning opportunities People can speak their minds openly People are open to challenge and being challenged From WIIFM to WIIFUS (what’s in it for us)

Five steps develop by Garvin (HBR) 1.

2.

3.

4.

Systematic problem solving Research and development Learning from own and other’s experiences Storing and transferring knowledge (continuous improvement –knowledge management)

5.

Developing an in‐house team to apply accumulating knowledge (entry level training coupled with continuous professional development program)

Continuous improvement Innovation

____________________________________ Re‐alignment Transformation

Time

Later Majority Early Majority Laggards No people

Early Adopters inform

support

negotiate

convince facilitate

Ignore + enforce

Pressure for Change

Shared Vision

Involvement of Mgt

Involvement of Employees

Link with Culture

Perfect Mgt

LASTING CHANGE

No action No direction No role model No support No insitution alization No result LASTING CHANGE

Reasons why? . . . To be proactive What it is? . . . Preparedness What it isn’t? . . . It’s not specific planning Refer back to the Global Trends driving change

and imagine forward to the coming 6 years. How can we prepare best for our uncertain futures?

Purpose of this exercise is to prepare for change in

an uncertain (e.g. changing and complex) future Activity has sequential phases, each step building upon the next Final product is a set of most likely, best case and worst case scenarios for your organization, over the coming five years

Imagine we are now living in year 2015! We/ our

institutions have survived, yes some have even prospered, and it is time to sketch the history of our past five years going back to the 1st Sem AY2010 we did together in USEP. There have been many challenges, setbacks, victories and surprises. Use you imagination and reverse timeline (see next p.) to sketch the main events faced over the past five years since June/July 2010.

2015 2014 2013 2012 2011 2010 2009

Please imagine it is now July 2015! Picture your institution as it must be now, how has it changed since 1st Sem AY 2010.

For each year, outline key developments and events that occurred in that year. (20‐ 30 minutes)

Try to generate scenarios: best case futures and

worst case possibilities The results of this activity will form a basis for group discussions/ decisions on moving your organization from good to great in the coming years (see Jim Collins, From Good to Great) http://www.jimcollins.com/article_topics/articles/

good‐to‐great.html

Level 5 Leadership: Leaders who are humble, but driven to do what's best for the company.

First Who, Then What: Get the right people on the bus, then figure out where to go. Finding the right people and trying them out in different positions.

Confront the Brutal Facts: The Stockdale paradox ‐ Confront the brutal truth of the situation, yet at the same time, never give up hope.

Hedgehog Concept: Three overlapping circles: What makes you money? What could you be best in the world at? and What lights your fire?

Culture of Discipline: Rinsing the cottage cheese.

Technology Accelerators: Using technology to accelerate growth, within the three circles of the hedgehog concept.

The Flywheel: The additive effect of many small initiatives; they act on each other like compound interest.