1. Business Management
Study Manuals business growth
Diploma in
Business Management
ORGANISATIONAL
BEHAVIOUR
The Association of Business Executives
2. i
Diploma in Business Management
ORGANISATIONAL BEHAVIOUR
Contents
Unit Title Page
Introduction to the Study Manual iii
Syllabus v
Intro An Introduction to Organisational Behaviour 1
Introduction 2
What Is an Organisation 3
Organisational Goals 7
The Structure of Organisations 13
Management 21
1 The Development of Management Thought 33
Introduction 34
The Classical School of Management and Organisation 35
Bureaucracy 38
Behavioural. Limitations in a Changing World 42
Systems Theory 48
Contingency Theories 54
Contemporary Theories 56
2 Organisational Behaviour and its Importance to Management 61
Introduction 62
What Is Organisational Behaviour? 62
Human Relations School 65
Organisational Structures and Culture 68
Influencing Organisational Behaviour 77
3 The Individual and the Organisation 83
Introduction 84
The Individual's Contribution to the Organisation 84
Approaches to Studying Personality 86
Measurement of Personality 93
Difficulties in Studying Personality 94
The Process and Principles of Perception 96
4 Attitudes, Learning, Stress and the Problems of the Individual 107
Introduction 108
The Significance of Attitudes 108
Attitude Change and the Impact of Behavioural Issues 111
The Learning Process 114
Understanding Stress 120
The Individual in Work Roles 124
3. ii
Unit Title Page
5 Motivation Theories and their Implications for Management 131
Introduction 132
The Development of Thinking on Motivation 132
Needs and Motivation 135
Herzberg's Motivators and Hygiene Factors 141
Models of Behaviour 144
Process Theories 147
Implications of Motivation Theory 151
6 The Nature and Meaning of Job Satisfaction 157
Introduction 158
The Concept of Morale 158
Job Satisfaction and Performance 161
Sources of Frustration and Alienation at Work 163
Approaches to Improving Job Design 165
Re-Designing the Working Environment 172
7 The Nature and Significance of Groups in Organisations 191
Introduction 192
What Is a Group? 192
The Process of Group Development 201
Characteristics of Workgroups 203
Roles and Skills for Effective Group Performance 212
The Nature of Team Spirit and Characteristics of Effective Teams 217
8 Leadership 225
Introduction 226
Leadership or Management? 226
The Nature of Leadership and the Exercise of Power and Authority 228
Leadership Traits and Leadership Styles 236
Situational Theory 246
Leadership Effectiveness 250
9 Conflict and Conflict Resolution in Organisations 253
Introduction 254
The Nature of Conflict 254
The Causes of Conflict 256
Management of Conflict 259
Strategies for Resolving Conflict 260
Structures and Procedures for Conflict Resolution 264
10 Communication Processes and Barriers 273
Introduction 274
The Nature and Scope of Communication 274
The Communication Process 277
Group Communication and Management Networking 281
Barriers to Effective Communication 285
Formal and Informal Communication Systems 287
The Basics of Effective Communication 294
4. iii
Introduction to the Study Manual
Welcome to this study manual for Organisational Behaviour.
The manual has been specially written to assist you in your studies for the ABE Diploma in
Business Management and is designed to meet the learning outcomes specified for this
module in the syllabus. As such, it provides a thorough introduction to each subject area and
guides you through the various topics which you will need to understand. However, it is not
intended to "stand alone" as the only source of information in studying the module, and we
set out below some guidance on additional resources which you should use to help in
preparing for the examination.
The syllabus for the module is set out on the following pages and you should read this
carefully so that you understand the scope of the module and what you will be required to
know for the examination. Also included in the syllabus are details of the method of
assessment – the examination – and the books recommended as additional reading.
The main study material then follows in the form of a number of study units as shown in the
contents. Each of these units is concerned with one topic area and takes you through all the
key elements of that area, step by step. You should work carefully through each study unit in
turn, tackling any questions or activities as they occur, and ensuring that you fully understand
everything that has been covered before moving on to the next unit. You will also find it very
helpful to use the additional reading to develop your understanding of each topic area when
you have completed the study unit.
Additional resources
ABE website – www.abeuk.com. You should ensure that you refer to the Members
Area of the website from time to time for advice and guidance on studying and
preparing for the examination. We shall be publishing articles which provide general
guidance to all students and, where appropriate, also give specific information about
particular modules, including updates to the recommended reading and to the study
units themselves.
Additional reading – It is important you do not rely solely on this manual to gain the
information needed for the examination on this module. You should, therefore, study
some other books to help develop your understanding of the topics under
consideration. The main books recommended to support this manual are included in
the syllabus which follows, but you should also refer to the ABE website for further
details of additional reading which may be published from time to time.
Newspapers – You should get into the habit of reading a good quality newspaper on a
regular basis to ensure that you keep up to date with any developments which may be
relevant to the subjects in this module.
Your college tutor – If you are studying through a college, you should use your tutors to
help with any areas of the syllabus with which you are having difficulty. That is what
they are there for! Do not be afraid to approach your tutor for this module to seek
clarification on any issue, as they will want you to succeed as much as you want to.
Your own personal experience – The ABE examinations are not just about learning lots
of facts, concepts and ideas from the study manual and other books. They are also
about how these are applied in the real world and you should always think how the
topics under consideration relate to your own work and to the situation at your own
workplace and others with which you are familiar. Using your own experience in this
way should help to develop your understanding by appreciating the practical
application and significance of what you read, and make your studies relevant to your
personal development at work. It should also provide you with examples which can be
used in your examination answers.
5. iv
And finally …
We hope you enjoy your studies and find them useful not just for preparing for the
examination, but also in understanding the modern world of business and in developing in
your own job. We wish you every success in your studies and in the examination for this
module.
The Association of Business Executives
September 2008
7. vi
4. Understand the goals, expectations and roles of individuals
within organisations
4.1 Examine the significance of attitudes, their formation, functions
and measurement
4.2 Explain the principles and problems associated with attitude
change and describe the impact of behavioural issues on
attitudes
4.3 Identify the internal and external factors relevant to the learning
process
4.4 Compare classical and operant conditioning
4.5 Examine chain and cyclical theories of learning and discuss their
effectiveness
4.6 Identify the nature and causes of stress and understand the
links with personality. Discuss the role of the manager in
handling stressful situations
4.7 Describe the problems of individuals in work roles, the conflicts
that might arise and means available to realise expectations and
improved performance
5. Understand the nature and meaning of motivation and examine a
variety of content and process theories together with their
implications for management
5.1 Define motivation and its examine early developments
5.2 Explain individual behaviour through ‘need theories’ (Maslow,
McClelland, Alderfer), motivation and hygiene (Herzberg) and
other behavioural models (McGregor, Schein)
5.3 Compare and contrast content with process theories including
expectancy, equity and goal setting approaches
5.4 Discuss the implications for management of different theories
(including job design)
5.5 Examine the problems of motivation and links to job satisfaction,
morale and effectiveness
6. Explain the nature and meaning of job satisfaction, its
relationship to work performance and the various approaches
designed to improve it
6.1 Explain the concept of morale: its nature, measurement,
consequences and means of achieving it
6.2 Examine the concept of job satisfaction and its relationship with
performance
6.3 Identify sources and reactions to frustration and alienation at
work
6.4 Examine the main approaches to improving job design and the
principles involved
6.5 Discuss more recent developments in re-designing the working
environment (e.g. tele-working, flexibility, autonomous work
groups)