Organizational behavior unit 5 Dynamics of Organizational Behavior

Organizational Behavior
Unit 5: Dynamics of Organizational
behavior
Presented by,
Ganesha Pandian N
1
MSM-MBA Odd Semester 2020-2021

Content
• Organizational culture and climate
• Factors affecting Organizational culture – Importance
• Job satisfaction – Determinants – Measurement – influence
on behavior
• Organizational change – Importance
• Stability Vs Change
• Proactive Vs Reaction Change
• The change process
2

• Resistance to change
• Managing change
• Stress – Work stressors
• Prevention and management of stress
• Balancing work and life
• Organizational development – characteristics –
objectives
• Organizational effectiveness developing Gender
sensitive workplace
MSM-MBA Odd Semester 2020-2021 3

Definition of
Organization Culture
• A common perception held by the
organization’s members; a system of
share meaning
• Seven primary characteristic of the
organizational culture
1. Innovation and risk taking
2. Attention to detail
3. Outcome oriented
4. People oriented
5. Team Orientation
6. Aggressiveness
7. Stability
It is about members of organizations how
to behave
4

Organizational Culture
is descriptive
• Organizational culture concerned with how employee
perceive organization
• It is different from job satisfaction is the measure of employee
response to the work environment
• Organization culture is descriptive and job satisfaction is
evaluative
5

Cultures in organization
• The work culture does not mean that the uniform and common
properties need to be shared – there might be sub-cultures within
the culture
1. Dominant Culture – Expresses the core values that are shared by a
majority of the organization’s members
2. Sub-cultures – mini-cultures existed within the organization
defined by geographical location
3. Core values – the primary or the dominant value accepted by the
company as whole

Strong Culture Vs
Weak Culture
• Strong culture – positive impact on employee
behavior
• Weak culture – Negative impact on employee
behavior

Dominant Vs Sub-culture
• Dominant culture – central value accepted by the
organization as whole
• Sub –culture – part of the organization slightly differ
from the core culture

Importance of
1. Acts as talent Attractor
2. Engages people in production
3. Creates great synergy in workplace
4. Improve the motivational factor
5. Acts as control system
6. Social bonds between people

Factors influencing
Organizational culture
1. Characteristics of people within the organization
2. Nature of Employment relationship
3. Design of Organizational structure
4. Organizational Ethics

Process of Creating
Step 4: Reinforce Cultural behaviors
Step 3: Initiate Implementation Strategies
Step 2: Create Vision
Step 1: Establish Values

Positive Organizational
Culture - Nurturing
• Employees strength – focused
• Design the motivation with more rewards than
punishments
• Put mush importance on growth and vital things

Sustain –
organizational Culture
• Control the behavior of managers and teams
• Reactions to incidents and crisis
• Role modeling, teaching and Coaching – put importance
• Allocation of rewards and status
• Recruitment, selection, promotion and removal
• Organizational Rites and Ceremonies – conducted
• Organization stories – Success stories and Heroes

Barriers to
• Culture restricts employees from changing as per
the environmental demands
• New employees need to stick to the old culture –
established already
• Cultural barrier – mergers and acquisitions

Organizational Climate
• Organizational climate is the collective perception of the work
environment by the individuals within a common system –
James and sells
• Organizational climate – shared perception of what is the
organization is like in terms of practices, policies, routines, and
rewards

Characteristics of
Organization Climate
• It is continuous and ever present one.
• Directly linked to internal features of an organization –
principles, customs, beliefs, behavior and emotions
• Theoretical and intangible concept
• Differentiates one organization from others
• Provides the consolidated image of organization

Factors affecting
• 2 key segments – by Richard M Hodgetts – Visible part and invisible part
• Overt factors – above the water
1. Hierarchy
2. Goals of organization
3. Technological state of organization
4. Financial Resources
5. Skills and abilities of employees
6. Efficiency of organization
7. Performance standards adopted by the organization

• Covert factors
1. Values and norms
2. Attitude
3. Satisfaction
4. Feelings
5. Interactions
6. Supportiveness

Components of
• Member of the organization concerned determine the organizational
climate
• The interpersonal relationship exits between the employees
• Degree of control mechanism that they have
• Autonomy given for the task to perform
• Organization structure that the organization frame itself

Importance of
• It enhances employee performance
• It helps in building strong relationship – interpersonal relationship
• Success or Failure – largely determined by organization climate
• Work of Manager is easy
• Minimizes employee turnover and improves the productivity in the
organization

How to improve the
organizational climate?
• Remove the unwanted tasks, procedures and so on to improve
the climate
• Create the reward system
• Innovation and entrepreneurial culture nurtured
• Reduce the change resistances
• Create a sense of purpose in employees

Job Satisfaction –
Meaning and Definition
• Refers to the general attitude and feeling of an individual
towards their jobs
• “Job satisfaction is a pleasurable emotional state
resulting from the appraisal of one’s job or job
experiences”

Features of Job
Satisfaction
• Job Satisfaction is a kind of attitude
• It helps employee retention
• Job satisfaction is linked directly with the motivation
factors

Determinants of Job
Satisfaction
Determinants
of Job
Satisfaction
Individual
factors
Level of
education
Age
Other
demographic
factors
Nature of Job
Occupation
level
Job content
Situational
Variables
Work
conditions
Supervision Rewards
Promotions
and
compensation

Job Satisfaction –
How it is measured?
• Rating Scales
• Personal interviews
• Tendencies measurement – satisfaction/dissatisfaction
• Critical incidents technique

Why Job Satisfaction is
important?
• Influences on positive behavior
• Increases productivity
• Reduces employees’ turnover and absenteeism
• Improve the team spirit

Organizational Change
• Changes happens as the business environment is not stable
• Changes in environment affects the business and make the change
become inevitable for organization also
• Definition: organizational change is the ongoing process – implementation
of new procedures, technologies so as to realign the business to meet the
business demand and cope up with the environmental change

Features of
Organizational Behavior
• It affects the existing stability of organization
• Change influences entire organization
• It is an ongoing process – never ending
• It is natural phenomenon
• Affects the perpetual and behavioral process

Determinant of
Organizational change
• External factors
1. Technology
2. Market conditions
3. Social changes
4. Political and legal changes
5. Workforce demography
• Internal Factors
1. Change in management
2. Change in Employees
3. Work climate
4. Changes in Employee
Expectations

Why Organizational
Change is needed?
• Responding to challenges and convert them into
opportunities
• Improvement in the existing performance of the
organization
• Overall development in the organization

Stability Vs Change
When the organization need to stabilize?
When the organization need to change?

Levels of Organizational
change
Organizational
level change
Group Level
change
Individual level
change

Types of Organization
Change
1. Unexpected change
2. Reactive change
3. Anticipatory change
4. Planned change
5. Strategic change
6. Process oriented change
7. People oriented change
8. Operational change
9. Transformational change
and so on.

Proactive change Vs Reactive change

Organizational
change process
Evaluating the change
Supporting the change
Motivating for change
Implementing the change
Recognizing the cause of problem
Identifying the problem

Emerging challenges in
• Maintaining the energy and enthusiasm of the employees
• Ensuring that organization adapts to the change
• Prioritizing organizational projects and resources
• Understanding the science of quality
• Managing the cultural shift

Resistance to change
• Absolute inertia or fear of the unknown may be behind this
tendency
• Definition: Resistance to change can be defined as behaviors
that are acted out by change recipients in order to slow down
or terminate an intended organizational change.

Types of resistance to
change
1. Psychological resistance
2. Sociological resistance
3. Logical resistance

Reason for resistance
to change
Reasons for
resistance to
change
Individual
resistance
Habit
Security
Economic
Factors
Fear of unknown
Selective
information
Organizational
resistance
Power and
conflict
Functional
orientation
differences
Mechanistic
organization
Organization
culture
Group resistance
Group norms
Group
cohesiveness

Dealing with
1. Clear definition of Visions and goals
2. Employees’ participation in change process
3. Interview employees to know their feelings
4. Effective delegation
5. Rising levels of expectations
6. Employees’ commitments
7. Positive attitude

Managing change or
Change Management
• Change management – structured approach for
transitioning individuals, teams and organizations
from the current state to the desired state

Intervention strategies for
• Process intervention – intervene the existing process
• Structure intervention – intervene the organizational structure
• Strategic intervention – intervene the strategic of the organization
• Relationship intervention – relating to the interpersonal dysfunctions within the
group and team
• Cultural change Intervention – intervene the culture of the organization

Kurt Lewin’s three step
model – Managing change
Stage 1: unfreezing the organization
Stage 2: Brining new change – transition to next level
Stage 3: Refreezing the new level

Stress
• Stress is reaction of an individual against the troubling
factors of his surroundings
• Definition: Stress is an adaptive response to an external
situation that results in physical, psychological or
behavioral deviations for organizational participants

Types of stress
• Eustress
• Distress – Acute stress and chronic stress

Causes of stress or
work stressors
1. Individual stressors
2. Group stressors
3. Organizational stressors

Individual level stressors
1. Personality types
2. Role conflict
3. Role ambiguity
4. Work overload
5. Responsibility
6. Career development stressors

Group level stressors
• Group Cohesiveness
• Social support
• Inter and intra group relationships
• Sexual harassment
• Physical violence

Organizational level
stressors
• Tasks demand
• Role demand
• Interpersonal relationship at work
• Organizational structure and climate
• Organizational leadership
• Group pressure

Consequences of stress
• Behavioral consequence
• Physical consequence
• Psychological consequence
• Decline in performance
• Change in attitude
• Withdrawal behavior

Burnouts
• Job burnout refers to the emotional exhaustion,
depersonalization, and reduced accomplishment
• It is common among the professionals
• Symptoms of burnout – Exhaustion, Cynicism and
Negative self evaluation

Causes of Job burnout
1. Lack of Recognisation
2. Big consequence of failure
3. High stress times with no down times
4. Impossible requirements
5. Unclear requirements
6. Poor fit for the job
7. Lack of belief in what is done
8. Shift work

Work-Life Balance
• Work life balance is about individuals having a
measure of control over when, where, and
how they work, leading them to be able to
enjoy an optimum quantity of life.

Options of Work-life
balance
1. Flexi-time
2. Compressed workweek
3. Job sharing
4. Flexible compensation
5. Telecommuting
6. Part-time work
7. Modified recruitment

Organizational Development
• Organizational development is the building of
company’s capacity to change and achieve greater
effectiveness by developing and improving the
strategies, structure and processes

Organizational
development – Process
1. Entering and contracting
2. Diagnostics
3. Data collection and Analyzing
4. Feedback
5. Designing interventions
6. Leading and managing change
7. Evaluation and institutionalization of change

Organizational
Effectiveness
- It is to the extent to which the organization achieves
the goals with the given resources and means
- Organizational effectives is the degree of
achievement of multiple goals

Indicators of organizational
Effectiveness
1. Innovation
2. Results
3. Productivity
4. Absenteeism of employees
5. Fiscal indicators
6. Perception of corporate performance
7. Balanced score cards

Gender Diversity at
workplace
Treatment of gender diverse as equity – healthy organization
Benefits:
Equality at work
Work policy – improvement
Motivation

Organizational behavior unit 5 Dynamics of Organizational Behavior

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