ORGANIZATIONAL

BEHAVIOR

DEFINE ORGANIZATIONAL BEHAVIOR.

A field of study that investigates the impact that individuals, groups, and structure have on behavior within
organizations, for the purpose of applying such knowledge toward improving an organization’s
effectiveness.

a) Explain four (4) critical managerial skills in perspectives of organizational behavior.

(8 marks)

Essential Management Skills

Still way of considering what managers do is to look at the skills or competencies they need to achieve
their goals. Robert Katz has identified three essential management skills; technical, human and
conceptual.

Technical Skills

– Technical skills encompass the ability to apply specialized knowledge or expertise. When you think of
the skills held by professionals such as civil engineers or oral surgeons, you typically focus on their
technical skills. Through extensive formal education, they have learned the special knowledge and
practices of their field. Of course, professionals don’t have a monopoly on technical skills, and not all
technical skills have to be learned in schools or formal training programs. All jobs require some
specialized expertise and many people develop their technical skills on the job.

Human Skills

– the ability to work with, understand and motivate other people, both individually and in groups, defines
human skills. Many people are technically proficient but interpersonally incompetent. They might be poor
listeners, unable to understand the needs of others, or have difficulty managing conflicts. Because
managers get things done through other people, they must have good human skills to communicate,
motivate and delegate.

Conceptual Skills

– managers must have the mental ability to analyze and diagnose complex situations. These tasks
require conceptual skills. Decision making, for instance, requires managers to identify problems, develop
alternative solutions to correct those problems, evaluate those alternative solutions, and select the best
ones. Managers can be technically and interpersonally competent yet still fail because of an ability to
rationally process and interpret information.

Technical Skills

– The ability to apply specialized knowledge or expertise

Human Skills
– The ability to work with, understand, and motivate other people, both individually and in
groups
Conceptual Skills
The mental ability to analyze and diagnose complex situations

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b) Explain three (3) basic managerial categories and roles in an organization with an example.

(10 marks)

MINTZBERG’S MANAGERIAL ROLES

INTERPERSONAL

1. Figurehead

– Symbolic head, required to perform a number of routine duties of a legal or social nature

2. Leader

– Responsible for the motivation and direction of employees

3. Liaison

– Maintain a network of outside contacts who provide favour and information

INFORMATIONAL

1. Monitor

– Receives wide variety of information, serves as nerve centre of internal and external
information of the organization

2. Disseminator

– Transmits information received from outsiders or from other employees to members of

the organization

3. Spokesperson

– Transmits information to outsider on organization’s plans, policies, action, and results,

serves as expert on organization’s industry

DECISIONAL

1. Entrepreneur

– Searches organization and its environment for opportunities and initiates projects to bring
about change

2. Disturbance handler

– Responsible for corrective action when organization faces important, unexpected

disturbances

3. Resource allocator

– Makes or approves significant organizational decisions

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4. Negotiator
– Responsible for representing the organization at major negotiations

FOUR TYPES OF MANAGERIAL ACTIVITY

1. Traditional Management
– Decision making, planning, and controlling
2. Communication
– Exchanging routine information and processing paperwork
3. Human Resource Management
– Motivating, disciplining, managing conflict, staffing and training
4. Networking
– Socializing, politicking, and interacting with others

a) Explain four (4) changing environment forces of business that emerges in an organization.
(8 marks)
a) Differentiate the term diversity and technology in business regarding the changing environment in
organization.
(5 marks)

THE ENVIRONMENT

The Changing Environment of Business

The changing environment of business presents both opportunities and challenges for managers today.

Five important environmental forces are:

1. Cross-Cultural Difference and Similarities
– Behavior in organizational settings
– Managerial practices
– Individual behaves differently in different cultural settings
– Cultural diversity
– Specific Cultural Issues
– Individualism
– Collectivism
– Power distance (orientation to authority)
– Masculinity ( assertiveness or materialism)

2. DIVERSITY AND BUSINESS

– Workforce diversity
– Stereotype
– Prejudices
– Primary dimensions of diversity are those factors that are either naturally or exert extraordinary
influence on early socialization (eg: race, ethnicity, gender, age, disability)
– Secondary dimensions of diversity include factors that matter to us as individuals and that to
some extent define us to others; however, they may be less permanent than primary dimensions
and can be adapted or changed (eg: religion, economic status, lifestyle, culture, work experience
etc)
– Global Workforce Diversity
– The Value of Diversity -Assimilation - Valuing diversity

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3. TECHNOLOGY AND BUSINESS

– Manufacturing
– Service organization is one that transforms resources into an intangible output and creates time
or place utility for its customers
– Technology and Competition
– Information Technology

4. Ethics and corporate governance

– Framing Ethical Issues
– Managerial Ethics Managers face a variety of ethical situations. In most cases these situations
involve how the organization treats its employees, how employees treat the organization, and
how employees and organizations treat other economic agents.
– Ethical Issues in Corporate Governance
– Ethical Issues in Information Technology

5. New employment relationships

– The Management of Knowledge Workers
– Outsourcing
– A contingent worker is a person who works for an organization on something other than a
permanent or full-time basis (eg: freelancer, independent contractors, consultants).
– Tiered Workforce - exists when one group of an organization’s workforce has a contractual
arrangement with the organization objectively different from that of another group performing the
same jobs (eg: recently hired workers may come to feel displeasure towards their more senior
colleagues who are getting paid more for the same work)

Demographic Characteristics Workforce

– Merriam-Webster defines “demographics” as the statistical characteristics of human populations

such as age or income. An example of a demographic collected in human resources is gender,
which may include all employees within a particular job, e.g., Early Childhood Educator. Other
demographics include age, length of service and educational level.

– Demographic data is helpful with respect to HR planning and, more specifically, succession
planning.  For example, if the average age of current supervisory staff is 60, it is likely that staff
will begin retiring.  It makes sense to initiate learning and development opportunities to enable
younger staff to successfully compete for supervisory positions. 

– Another example is using demographic information to determine outreach programs for staffing. 
If the community demographic profile indicates a significant proportion of aboriginal families, and
you currently have very few aboriginal employees, it would be helpful to target aboriginal job
seekers.
– Human resources metrics track measurements to determine the value and effectiveness of HR
strategies.  Examples include – turnover, time to hire, sick leave usage, cost of hiring, cost of
training, productivity and benefit cost.

 Predominantly Malays or Chinese, or white, male managerial workforce gave way to a gender
balanced, multiethnic workforce.
 Today, that change is no longer happening: it has happened, and it is increasingly reflected in the
makeup of managerial and professional jobs.
DAVID MCLELLAND THEORY

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The Need for Achievement (NAch) - David McClelland.

• This need arises from an individual’s desire to accomplish a goal or task more effectively than in
the past.
• Individuals tend to set moderately difficult goals and to make moderately risky decisions. People
with a need for achievement like to find solutions. Low goals and risks don’t provide a sense of
achievement, and high goals and risks have too great a chance of failure.
• This type of person has a strong desire to receive feedback on good performance and often
prefers to work alone. These people are concerned with career advancement, and they want to
do their job well, while accomplishing significant, but not monumental, things.

• Individuals also experience the need for affiliation (NAff) — the need for human
companionship.
• Researchers recognize several ways that people with a high need for affiliation differ from those
with a lower need. Individuals with a high need tend to want reassurance and approval from
others and usually are genuinely concerned about others’ feelings.
• They are likely to act and think as they believe others want them to, especially those with whom
they strongly identify and desire friendship. As we might expect, people with a strong need for
affiliation most often work in jobs with a lot of interpersonal contact, such as sales and teaching
positions.

• A third major individual need is the need for power (NPow) — the desire to control one’s
environment, including financial, material, informational, and human resources.
• People vary greatly along this dimension. Some individuals spend much time and energy seeking
power; others avoid power if at all possible.
• People with a high need for power can be successful managers if three conditions are met.
– First, they must seek power for the betterment of the organization rather than for their
own interests.
– Second, they must have a fairly low need for affiliation because fulfilling a personal need
for power may well alienate others in the workplace.
– Third, they need plenty of self-control to curb their desire for power when it threatens to
interfere with effective organizational or interpersonal relationships.

EQUITY THEORY

• The equity theory of motivation is based on the relatively simple premise that people in
organizations want to be treated fairly.
• The theory defines equity as the belief that we are being treated fairly in relation to others and
inequity as the belief that we are being treated unfairly compared with others. Equity theory is just
one of several theoretical formulations derived from social comparison processes.
• Social comparisons involve evaluating our own situation in terms of others’ situations.

Forming Equity Perceptions

– First, they evaluate how they are being treated by the firm.
– Second, they form a perception of how a “comparison-other” is being treated. The comparison-
other might be a person in the same work group, someone in another part of the organization, or
even a composite of several people scattered throughout the organization.
– Third, they compare their own circumstances with those of the comparison other and then use
this comparison as the basis for forming an impression of either equity or inequity.
– Fourth, depending on the strength of this feeling, the person may choose to pursue one or more
of the alternatives discussed in the next section.

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Responses to Equity and Inequity

six common methods to reduce inequity.

• First, we may change our own inputs. Thus, we may put more or less effort into the job,
depending on which way the inequity lies, as a way to alter our ratio. If we believe we are being
underpaid, for example, we may decide not to work as hard.
• Second, we may change our own outcomes. We might, for example, demand a pay raise, seek
additional avenues for growth and development, or even resort to stealing as a way to “get more”
from the organization. Or we might alter our perceptions of the value of our current outcomes,
perhaps by deciding that our present level of job security is greater and more valuable than we
originally thought
• A third, more complex response is to alter our perceptions of ourselves and our behavior. After
perceiving an inequity, for example, we may change our original self assessment and decide that
we are really contributing less but receiving more than we originally believed. For example, we
might decide that we are not really working as many hours as we had first thought—admitting,
perhaps, that some of our time spent in the office is really just socializing and not actually
contributing to the organization.
• Fourth, we may alter our perception of the comparison-other’s inputs or outcomes. After all,
much of our assessment of other people is based on perceptions, and perceptions can be
changed. For example, if we feel underrewarded, we may decide that our comparison-other is
working more hours than we originally believed—say by coming in on weekends and taking work
home at night.
• Fifth, we may change the object of comparison. We may conclude, for instance, that the current
comparison-other is the boss’s personal favorite, is unusually lucky, or has special skills and
abilities. A different person would thus provide a more valid basis for comparison. Indeed, we
might change comparison-others fairly often.
• Finally, as a last resort, we may simply leave the situation. That is, we might decide that the
only way to feel better about things is to be in a different situation altogether. Transferring to
another department or seeking a new job may be the only way to reduce the inequity

INDIRECT COMPENSATION

Indirect compensation includes non-monetary benefits provided to workers, such as pension funds,
mobile phones, company cars, health and life insurance, overtime pay, and annual leave.
In fact, it includes everything from legally obligated health insurance to social security, child care, and
more.
It is essential to understand that employers can include standard contractual, non-monetary features
covering annual leave, as well as valuable benefits such as healthcare, in indirect compensation.
Indirect compensation differs from direct compensation, which is monetary compensation paid directly to
employees for their services, starting with their salary.

 Perquisites are special privileges awarded to selected members of an organization, usually top
managers.
 Awards - At many companies, employees receive awards for everything from seniority to perfect
attendance, from zero defects (quality work) to cost reduction suggestions. Award programs can
be costly in the time required to run them and in money if cash awards are given
 Social Security contributions. The employer contributes half the money paid into the system
established under the Federal Insurance Contributions Act (FICA). The employee pays the other
half.
 Disability and workers’ compensation benefits. Employers contribute funds to help workers
who cannot work due to occupational injury or ailment.

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 Life and health insurance programs. Most organizations offer insurance at a cost far below
what individuals would pay to buy insurance on their own.
 Pension or retirement plans. Most organizations offer plans to provide supplementary income
to employees after they retire.

a) List four (4) popular reward systems that presently practices in organization.

MANAGING REWARD SYSTEMS

ISSUE IMPORTANT EXAMPLES

Pay secrecy – Open, closed, partial
– Link with performance appraisal
– Equity perceptions
Employee participation – By human resource department
– By joint employee/management committee
Flexible system – Cafeteria-style benefits
– Annual lump sum or monthly bonus
– Salary versus benefits
Ability to pay – Organization’s financial performance
– Expected future earnings
Economic and labor – Inflation rate
Market factors – Industry pay standards
– Unemployment rate
Impact on organizational – Increase in costs
performance – Impact on performance
Expatriate compensation – Cost-of-living differentials
– Managing related equity issue

Describe five (5) organizational factors which limit one decision makers to make final decision in an
organization. (10 marks)

THE BEHAVIORAL APPROACH TO DECISION MAKING

• The administrative model of decision making argues that managers use bounded rationality,
rules of thumb, suboptimizing, and satisficing in making decisions.

• Bounded rationality is the idea that decision makers cannot deal with information about all the
aspects and alternatives pertaining to a problem and therefore choose to tackle some meaningful
subset of it.

• Political Forces in Decision Making - Political forces can play a major role in how decisions are
made.

• Intuition is an innate belief about something without conscious consideration. Managers

sometimes decide to do something because it “feels right” or they have a hunch.

• Escalation of commitment occurs when a decision maker stays with a decision even when it
appears to be wrong.

• Risk Propensity and Decision Making - The behavioral element of risk propensity is the extent
to which a decision maker is willing to gamble when making a decision.

• Ethics and Decision Making - Ethics are a person’s beliefs about what constitutes right and

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wrong behavior. Ethical behavior is that which conforms to generally accepted social norms;
unethical behavior does not conform to generally accepted social norms

• Prospect Theory and Decision Making - argues that when people make decisions under a
condition of risk they are more motivated to avoid losses than they are to seek gains.

Nature of group in decision making

Nature of Individual Group decision-making individual decision making

Groups can often be slow to
Individuals can often reach
reach a decision. There is the
decisions more quickly than a
possibility of over- deliberation
Speed of decision making group. However, there may not
and sometimes a reluctance to
always be the time to consider all
reach a decision which some
the factors involved
members don’t support

Unless the individual is an expert

Groups can share knowledge on the subject, then groups are
Knowledge required to make and foresee solutions to able to generate better and more
decision problems which may arise comprehensive knowledge than
an individual

An experienced and
Because an effective group
knowledgeable individual can
contains roles which monitor
make complete and feasible
both the decision making
decisions. Especially where they
Need for a complete decision process and the completeness of
have confronted similar decisions
the decision, groups tend to
in the past. Where expertise is
produce more complete and
not needed, then better decisions
feasible solutions
tend to be made by groups

A group making an important

decision may well be subject to
Importance of decision for It is easier for an individual to be
the phenomenon of ‘risky shift’
organization held accountable
and decisions may well be riskier
than management may accept
An individual will have to work
Groups, especially those working
very hard to gain the commitment
collaboratively, will tend to gain
of others to a decision they have
Need for commitment to commitment to their decisions
made. Without involvement in the
proposed solution because all group members have
decision making process,
been involved in the decision
commitment is uncertain
making process

Group problem solving

Advantages Disadvantages
Groups can accumulate more knowledge and facts Groups take more time to reach decisions than do
and thus generate more and better alternatives. individuals.
Groups often display superior judgment when Group social interactions may lead to premature

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evaluating alternatives, especially for complex compromise and failure to consider all alternatives
problems. fully.
Group involvement in decisions leads to a higher Groups are often dominated by one or two
level of acceptance of the decisions and “decision leaders” which may reduce acceptance,
satisfaction. satisfaction and quality.
Group decision making can result in growth for Managers may rely too much on group decisions,
members of the group. leading to loss of their own decision and
implementation skills.

a) Discuss the five (5) stages of decision making in an organization.

(10 marks)
Formally defined, decision making is the process of choosing a course of action for dealing with a
problem or opportunity. The five basic steps involved in systematic decision making are:

1. Recognize and define the problem or opportunity.

2. Identify and analyze alternatives courses of action and estimate their effects on the problem or
opportunities.
3. Choose a preferred course of action.
4. Implement the preferred course of action.
5. Evaluate the results and follow up necessary.
b) Discuss three (3) current complex issues in decision making facing by organization manager in current
challenges.
CURRENT ISSUES IN DECISION MAKING
In today’s environments, the problems facing organizational decision makers seem to get ever more
complex. Complexities in the decision making process include issues of information technology, culture
and ethics.
Information technology and decision making
Organizations are becoming ever more sophisticated in applying information technologies. We can see
that computer support for group decision making, including developments with the internet and intranet
has broken the decision making meeting out of the confines of face to face interactions. With the
software now available, problems can be defined and decisions can be made through virtual teamwork
by people in geographically dispersed locations

Cultural factors and decision making

Culture is “the way in which a group of people solves problem.” It is only reasonable to experts that as
cultures vary, so too will choices concerning what is to be solved and how. Other cultures place less
emphasis on individual choice than on developing implementations that work. They start with what is
workable and better rather than with the classical and behavioral comparison of current conditions with
some ideal. The more important role of culture in decision making concerns not how problems are
solved but which concerns are elevated to the status of problems solvable within the firm.

Ethical issues and decision making

An ethical dilemma was defined as a situation in which a person must decide whether or not to do
something that, although personally or organizationally beneficial, may be considered unethical and
perhaps illegal. Often, ethical dilemmas are associated with risk and uncertainty and with non-routine
problem situations. Just how decisions are handled under these circumstances, ones that will inevitably
appear during your career, may well be the ultimate test of your personal ethical framework.

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a) State three (3) types of decision making that commonly occur in an organization.
– A programmed decision is a decision that recurs often enough for a decision rule to be
developed.
– A decision rule is a statement that tells a decision maker which alternative to choose based on
the characteristics of the decision situation.
– A non-programmed decision is a decision that recurs infrequently and for which there is no
previously established decision rule.

(6 marks)

GROUP DECISION MAKING METHODS

There are many methods or procedures that can be used by groups. Each is designed to improve the
decision-making process in some way. Some of the more common group decision-making methods are
brainstorming, dialectical inquiry, nominal group technique, and the delphi technique.

Group Decision Making Techniques

There are a few techniques of group decision making.

1. Brainstorming.

Brainstorming is a process for developing creative solutions to problems. This technique was developed
by Alex Osborn a partner in an agency. It is a popular method for encouraging creative thinking in groups
of about 8 people. Simply brainstorming is meant to overcome pressures for conformity in the interacting
group that retard the development of creative alternatives.

It is built around four basic guidelines for participants:

– Generate as many ideas as possible.

– Be creative, freewheeling, and imaginative.

– Build upon, extend, or combine earlier ideas.

– Withhold criticism of others’ ideas.

It works on belief that the more the number of ideas, the greater the possibility of having a solution to the
problem that is acceptable to all. It starts with the group generating ideas which are then analyzed, with
action points based on the discussions.

Usually, the group leader or facilitator will record the ideas presented on a flip chart or marker board.

One of the difficulties with brainstorming is that despite the prohibition against judging ideas until all group
members have had their say, some individuals are hesitant to propose ideas because they fear the
judgment or ridicule of other group members.

2. Nominal Group Technique.

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Nominal group technique (NGT) is a group process involving problem identification, solution generation,
and decision making.

The nominal group technique restricts discussion or interpersonal communication during the decision-
making process, hence, the term nominal. Group members are all physically present, as in a traditional
committee meeting, but members operate independently. Specifically, a problem is presented and then
the following steps take place:

– Members meet as a group but, before any discussion takes place, each member independently
writes down his or her ideas on the problem.

– After this silent period, each member presents one idea to the group. Each member takes his or
her turn, presenting a single idea until all ideas have been presented and recorded. No
discussion takes place until all the ideas have been recorded.

– The group now discusses the ideas for clarity and evaluates them.

– Each group member silently and independently rank-orders the ideas. The idea with the highest
aggregate ranking determines the final decision.

3. Electronic Meeting.

– The most recent approach to group decision making blends the nominal group technique with
sophisticated computer technology.
– It’s called the computer-assisted group or electronic meeting. It is a meeting in which members
interact by a computer, allowing for anonymity of comments and aggregating of votes.
– Once the technology is in place, the concept is simple. Issues are. presented to the participants
and they type their responses into their computer screen. Individual comments, as well as
aggregates votes, are displayed on a projection screen.
– The major advantages of electronic meetings are mystery, honesty, and speed.
– Participants can anonymously type any message they want and it flashes on the screen for all to
see at the push of a participant’s board key. It also allows people to be brutally honest without
penalty. And it’s fast because chitchat is eliminated, discussions don’t digress and many
participants can “talk” at once without stepping on another’s toes.

4. Multi-Voting.

– It starts with a number of rounds of voting where an individual casts his/her vote for the options
that are shortlisted. Each individual can cast one vote at a time.
– In this way, the options favoring the maximum number of votes is carried to the next round.
– This process is repeated until a clear winning option is obtained.

5. Delphi Method.

– The Delphi technique is a group decision-making process that can be used by decision-making
groups when the individual members are in different physical locations.
– The technique was developed at the Rand Corporation. The individuals in the Delphi "group" are
usually selected because of the specific knowledge or expertise of the problem they possess.
– In the Delphi technique, each group member is asked to independently provide ideas, input,
and/or alternative solutions to the decision problem in successive stages.

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– These inputs may be provided in a variety of ways, such as e-mail, fax, or online in a discussion
room or electronic bulletin board. After each stage in the process, other group members ask
questions and alternatives are ranked or rated in some fashion. After an indefinite number of
rounds, the group eventually arrives at a consensus decision on the best course of action.

– This method also avoids the intimidation problems that may exist in decision-making groups.

6. Dialectic Decision Methods.

– Dialectical inquiry is a group decision-making technique that focuses on ensuring full

consideration of alternatives.
– Essentially, it involves dividing the group into opposing sides, which debate the advantages and
disadvantages of proposed solutions or decisions.
– The dialectic process begins with a clear statement of a problem to be solved. Then two or more
competing proposals are generated. A key step follows in which participants identify the explicit
or implicit assumptions that underlie each proposal.
– A similar group decision-making method, devil's advocacy, requires that one member of the
group highlight the potential problems with a proposed decision.
– Both of these techniques are designed to try and make sure that the group considers all possible
ramifications of its decision.

a) Elaborate the differences of organizational communication networks and small group networks.
(10 marks)

COMMUNICATION NETWORKS - Small-Group Networks

Communication is the social process in which two or more parties exchange information and share
meaning. Every communication involves at least one sender and one recipient, the transmission of the
massage from sender to recipient can be affected by a huge range of things. These include our emotions,
the cultural situation, medium used to communicate, even our location. The complexity is why good
communication skills are considered so desirable by employer around the world. Accurate , effectiveness
and unambiguous communication is actually extremely hard.

1. A wheel network
Information flows between the person at the end of each spoke and the person in the middle.

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2. Chain network
Each member communicates with the person above and below, except for the individuals on each
end, who communicate with only one person

3. Circle network
Each member communicates with the people on either side but with no one else.

4. Communication networks
Form spontaneously and naturally as the interactions among workers continue over time.

Introduction

A communication network is the pattern of directions in which information flows in the organization.
Channels of communication (networks by which information flows) are either formal networks or informal
networks. Formal networks follow the authority chain and are limited to task-related communications. 

Communication networks - Small-Group Networks

1. A wheel network

In a wheel network, information flows to and from a single person. Employees in the group
communicate primarily with that person rather than with each other. Such a communication
network is a fast means of getting information to employees, since the person at the hub of the
wheel can do so directly and efficiently. The wheel network relies on the leader to act as the
central conduit (channel) for the entire group's communication.

Example

In the general Roll Call in TSM branch (meeting), our head of branch will stand in front to

communicate and convey information to us. Here all subordinates in TSM Branch receive

commands from one superior. This is a highly centralized type of communication network where

each of the TSM members receives commands or instructions from a single authority and wants

the immediate feedback.

2. Chain network

In chain network, communication travels up and down through the hierarchy. Each person
communicates with only the person directly above or below in terms of reporting relationships.
The chain network rigidly follows the formal chain of command. Each member communicates
with the person above and below, except for the individuals on each end, who communicate with
only one person.

Example

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In my workplace, the chain network communication can be seen in the commanding based on a
hierarchy where the highest position in IPD Brickfields is Officer in-Charge Police District
(OCPD). Normally, a meeting with OCPD will involve all head of the department, OCPD will give
the command to be done and practice by all police officer in IPD Brickfields. After the meeting
finish, all of the head of the department will convey the message that given by OCPD to all head
of the branch of each department. After that, all off the head of a branch will deliver the message
achieve from the head of a department to all subordinates in his/her branch.

3. Circle network

In circle communication pattern, there is a leader and hierarchies in the group members. Here,

the leader can only communicate to the members who are next to him/her like their direct

subordinates. He/she cannot talk with any other members too, like the lowest level of workers.

Example

In my workplace for this type of communication can be demonstrated in the process of

application for leave, where all group members can only communicate with the people who are

above them in the chain of command. The message flows in one direction or way. If I’m planning

to apply leave I’ve to fill the application in HRMIS to inform my head of the branch after the

endorsed by the head of my branch the message of my application will travel to our head of

department for the final decision. The message will send to me with the result wheater my

application for leaves pass or not.

4. Star communication networks

Communication network all members of the group communicate with each other and exchange
information. This network is a must for group communication or where teamwork is involved. This
network channel of communication is open to all members of the group. The members
communicate with each other without hesitation.

Example

Normally, the effectiveness of the star communication networks of depend upon their users. For
example, when the head of our branch conducting a meeting we can exchange data, information and
opinion with each other without any hurdles or restrictions. These situation also generate two way of
communication between us in TSM Branch meeting.

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ORGANIZATIONAL COMMUNICATION NETWORKS

1. The gatekeeper has a strategic position in the network that allows him or her to control
information moving in either direction through a channel.

2. The liaison serves as a bridge between groups, tying groups together and facilitating the
communication flow needed to integrate group activities.

3. The cosmopolite links the organization to the external environment and may also be an opinion
leader in the group.

4. The isolate and the isolated dyad tend to work alone and to interact and communicate little with
others.

PATH-GOAL THEORY OF LEADERSHIP

1. Path-goal theory of leadership

– Argues that subordinates are motivated by their leader to the extent that the behaviors of that
leader influence their expectancies. In other words, the leader affects subordinates’ performance
by clarifying the behaviors (paths) that will lead to desired rewards (goals)
2. Leader Behaviors
– Directive, Supportive, Participative, Achievement-Oriented.
3. Personal Characteristics of Subordinates
- Locus of Control, Perceived Ability
4. Environmental Characteristics
- Task Structure, Authority System, Work Group.

VROOM’S DECISION TREE APPROACH TO LEADERSHIP

Vroom’s decision tree approach to leadership attempts to prescribe how much participation subordinates
should be allowed in making decisions - depends on the characteristics of the situation.
The five styles are defined as follows:

1. Decide: The manager makes the decision alone and then announces or “sells” it to the group.
2. Delegate: The manager allows the group to define for itself the exact nature and parameters of
the problem and then develop a solution
3. Consult (Individually): The manager presents the program to group members individually,
obtains their suggestions, and then makes the decision.
4. Consult (Group): The manager presents the problem to group members at a meeting, gets their
suggestions, and then makes the decision.
5. Facilitate: The manager presents the problem to the group at a meeting, defines the problem
and its boundaries, and then facilitates group member discussion as members make the
decision.

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INFLUENCE IN ORGANIZATIONS

– Influence is defined as the ability to affect the perceptions, attitudes, or behaviors of others.1 If a
person can make another person recognize that her working conditions are more hazardous than
she currently believes them to be (change in perceptions), influence has occurred.

– Impression management is a direct, intentional effort by someone to enhance his or her image
in the eyes of others. People engage in impression management for a variety of reasons.

POWER IN ORGANIZATIONS

– Power is the potential ability of a person or group to exercise control over another person or
group.
– 7 Types of Power (French and Raven)

1. Legitimate power is power that is granted by virtue of one’s position in the organization.
2. Reward power is the extent to which a person controls rewards that another person values.
3. Coercive power is the extent to which a person has the ability to punish or physically or
psychologically harm someone else.
4. Expert power is the extent to which a person controls information that is valuable to someone
else.
5. Referent power exists when one person wants to be like or imitates someone else.
6. Position power resides in the position, regardless of who is filling that position.
7. Personal power resides in the person, regardless of the position being filled.

3 USES OF POWER IN ORGANIZATIONS

1. Commitment will probably result from an attempt to exercise power if the subordinate accepts
and identifies with the leader. Such an employee will be highly motivated by requests that seem
important to the leader.
2. Compliance means the subordinate is willing to carry out the leader’s wishes as long as doing
so will not require extraordinary effort. That is, the person will respond to normal, reasonable
requests that are perceived to clearly be within the normal boundaries of the job.
3. Resistance occurs when the subordinate rejects or fights the leader’s wishes. For example,
suppose an unpopular leader asks employees to volunteer for a company-sponsored community
activity project

4 COMMON FORMS CONFLICT

1. Task conflict refers to conflict regarding the goals and content of the work
2. Process conflict occurs when the parties agree on the goals and content of work but disagree on
how to achieve the goals and actually do the work.
3. Relationship conflict occurs when the parties have interpersonal issues.
4. Legal conflict may arise when there are differences in perceptions between organizations.

WIN-WIN NEGOTIATION MODEL

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The PRAM model is four-step approach to negotiation that proposes that proper
1. Planning,
2. Building relationships,
3. Getting agreements, and
4. Maintaining the relationships are the key steps to successful negotiation.

Culture versus Climate

Organization climate is based on individual perceptions; is often defined as the recurring patterns of
behavior, attitudes, and feelings that characterize life in the organization; and refers to current situations
in an organization and the linkages among work groups, employees, and work performance
5 steps -Creating Organization Culture

1. Strategic values are the basic beliefs about an organization’s environment that shape its
strategy.
2. Cultural values are the values that employees need to have and act on for the organization to
act on the strategic values
3. Create Vision After developing its strategic and cultural values, the organization must
establish a vision of its direction. This “vision” is a picture of what the organization will be like at
some point in the future
4. Initiating implementation strategies, builds on the values and initiates the action to accomplish
the vision. The strategies cover many factors, from developing the organization design to
recruiting and training employees who share the values and will carry them out.
5. Reinforce the behaviors of employees as they act out the cultural values and implement the
organization’s strategies. Reinforcement can take many forms.
– First, the formal reward system in the organization must reward desired behaviors in
ways that employees value.
– Second, stories must be told throughout the organization about employees who
engaged in behaviors that epitomize the cultural values.
– Third, the organization must engage in ceremonies and rituals that emphasize
employees doing the things that are critical to carrying out the organization’s vision.
– In effect, the organization must “make a big deal out of employees doing the right
things.” For example, if parties are held only for retirement or to give out longevity and
service pins, the employees get the message that retirement and length of service are
the only things that matter.

a) Based on the statement, discuss five (5) pressure factors that able to influence organizational changes.

a) Discuss four (4) fundamental factors that an organizational needs to address in the present and future
challenges.
(14 marks)

FORCES FOR CHANGE

CATEGORY EXAMPLES TYPE OF PRESSURE FOR

CHANGE
People Generation X, Y, Millennials Demands for different training,
Global labor supplies benefits, workplace
Senior citizens arrangements, and
Workforce diversity compensation systems

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Technology Manufacturing in space More education and training for

Internet Global design teams workers at all levels, more new
products, products move faster
to market
Information Processing and Computer, Faster reaction times, immediate
Communication satellite communications responses to questions, new
Global Sourcing products, different office
Videoconferencing arrangements, telecommuting,
Social networking marketing, advertising, recruiting
on social networking sites
Competition Global markets Global competition, more
International trade agreements competing products with more
Emerging nations features and options, lower
costs, higher quality
Employees, Expectations:   Employees' desire to Changes in employee’s
 share in decision-making. expectations can also trigger
 Higher employees’ change in organsizations.
expectation for satisfying jobs
and work environment.
 Employees' desire for
higher wage payment.

PROCESSES FOR PLANNED ORGANIZATION CHANGE

1. Lewin’s Process Model Planned organization change requires a systematic process of

movement from one condition to another. Kurt Lewin suggested that efforts to bring about
planned change in organizations should approach change as a multistage process.His model of
planned change is made up of three steps—unfreezing, change, and refreezing

2. Unfreezing is the process by which people become aware of the need for change. If people are
satisfied with current practices and procedures, they may have little or no interest in making
changes. The key factor in unfreezing is making employees understand the importance of a
change and how their jobs will be affected by it.

3. Change itself is the movement from the old way of doing things to a new way. Change may entail
installing new equipment, restructuring the organization, or implementing a new performance
appraisal system—anything that alters existing relationships or activities

4. Refreezing makes new behaviors relatively permanent and resistant to further change.
Examples of refreezing techniques include repeating newly learned skills in a training session
and then role playing to teach how the new skill can be used in a real-life work situation.
Refreezing is necessary because without it, the old ways of doing things might soon reassert
themselves while the new ways are forgotten.

THE CONTINUOUS CHANGE PROCESS MODEL

Continuous Change Process Model of Organization Change The continuous change process model
incorporates the :-
1. forces for change,
2. a problem-solving process,

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3. a change agent, and

4. Transition management.
– It takes a top-management perspective and highlights the fact that in organizations today,
change is a continuous process.
– A change agent is a person responsible for managing a change effort.
– Transition management is the process of systematically planning, organizing, and implementing
change.

a) Explain four (4) functions of manager in an organization as suggested by Henri Fayol (2010).
(15 marks)
Planning

Managers must plan for future conditions, develop strategic objectives and secure the achievement of
future goals. Therefore, managers must evaluate future contingencies affecting the organization, and
shape the future operational and strategic landscape of the company.

Organizing

Managers must organize the workforce in an efficient manner and structure and align the activities of the
organization. Managers must also train and recruit the right people for the job, and always secure a
sufficiently skilled and educated workforce.

Commanding

Managers must supervise subordinates in their daily work, and inspire them to achieve company goals.
Likewise it is the responsibility of managers to communicate company goals and policies to subordinates.
The commanding of subordinates should always be consistent with company policies, and every
manager should treat subordinates in line with the standards of the company.

Coordinating

Managers must harmonize the procedures and activities performed by the company, meaning that every
activity of each organizational unit should complement and enrich the work of another.

Controlling

Managers must control that company activities are in line with general company policies and objectives. It
is also the responsibility of the manager to observe and report deviations from plans and objectives, and
to make initiatives to correct potential deviations.

The five functions theory of Henri Fayol is a very normative and functional view on management, and the
theory might not fully convey the managerial complexities faced by managers in their daily work. As such,
Henry Fayol’s five functions focus very little on informal relationships between managers and
subordinates, and do not touch very much upon how to develop and maintain a motivated workforce.

a) Explain five (5) stages of group development model related to organization behavior.

The five stage group-development model suggests that all groups go through distinct stages in their
overall development. These five stages are:

 the forming stage

 the storming stage
 the norming stage

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 the performing stage

 the adjourning stage

Forming stage

This is the first stage of group formation. At this stage, there is a degree of uncertainty about the group,
individual relationships may be new, and standard and accepted approaches and behaviors are generally
unclear. They may not know each other very well or at all, they have limited understanding of how the
group will work together, what each other’s strengths are, the best way to interact with each other, and so
on.

Storming stage

The second stage of group development is the storming stage. As suggested by the word “storm”, there
is some potential conflict involved between the individual members. This conflict usually occurs because
individual views and approaches need to be aligned with overall group thinking. Occasionally there are
very dominant individuals who want to make all the decisions, but in a relatively equal group this is
unlikely to be agreed by all its members.

Norming stage

The norming stage occurs when the group finally settles into some sort of agree pattern of behavior and
decisions. This is after the conflict has been resolved from the storming stage (perhaps not to everyone
satisfaction), but sufficiently enough for the group to go forward on a consistent basis with an agreed plan
and approach to their operations.

Performing stage

The performing stage of group-development is when the group is focused on getting the job done. At this
stage, the team’s focus passes to the actual activities and tasks required. The individuals of the group are
keen to move forward and complete the objective.
Please note, that the word “performing” does not necessarily relate to high-performance, it simply relates
to the completion of the task.

Adjourning stage

The final stage of group development relates to temporary teams and groups, where there is an end to
the group and the individuals stop being a group. For example, some members may be quite upset that
the project has come to an end, whereas others would be pleased that the project has finalized. This
would be due to a combination of personal interactions along the way, as well as the overall
enjoyment/satisfaction of the project and its ultimate success/failure.

b) Explain three (3) levels of diversity occur in the changing environment in organization.
(6 marks)

 Diversity in age, race, gender, ethnicity, religion, and disability status, experts now recognize
that these demographic characteristics are just the beginning.
 Surface level diversity, not thoughts and feelings, and can lead employees to perceive one
another through stereotypes and assumptions.

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 Deep-level diversity - personality and values

a) Differentiate management and leadership based on four (4) fundamental activities by John P. Kolter
(1990).
(10 marks)

ACTIVITY MANAGEMENT LEADERSHIP

CREATING AN Planning and budgeting. Establishing Establishing direction.

AGENDA detailed steps and timetables for Developing a vision of the future,
achieving needed results; allocating the often the distant future, and
resources necessary to make those strategies for producing the
needed results happen changes needed to achieve that
vision
DEVELOPING A Organizing and staffing. Establishing Aligning people. Communicating
HUMAN NETWORK some structure for accomplishing plan the direction by words and deeds
FOR ACHIEVING requirements, staffing that structure to all those whose cooperation
THE AGENDA with individuals, delegating may be needed to influence the

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responsibility and authority for carrying creation of teams and coalitions

out the plan, providing policies and that understand the vision and
procedures to help guide people, and strategies and accept their validity
creating methods or systems to monitor
implementation
EXECUTING PLANS Controlling and problem solving. Motivating and inspiring.
Monitoring results vs. plan in some Energizing people to overcome
detail, identifying deviations, and then major political, bureaucratic, and
planning and organizing to solve these resource barriers to change by
problems satisfying very basic, but often
unfulfilled, human needs
OUTCOMES Produces a degree of predictability Produces change, often to a
and order and has the potential to dramatic degree, and has the
consistently produce major results potential to produce extremely
expected by various stakeholders (e.g., useful change (e.g., new products
for customers, always being on time; for that customers want, new
stockholders, being on budget) approaches to labor relations that
help make a firm more
competitive)

b) Explain two (2) types of common stress that emerge in an organization.

(6 marks)
STRESSOR EXAMPLES

Organizational Stressors • Task Demands – Occupation, Security,

Overload
• Physical Demands – Temperature, Office
Design
• Role Demands - Ambiguity , Conflict
• Interpersonal Demands - Group Pressures,
Leadership Style, Personalities
Individual Consequences • Behavioral - Alcohol and Drug Abuse Violence
• Psychological - Sleep Disturbances,
Depression
• Medical - Heart Disease, Headaches
Organizational • Decline in Performance
Consequences • Absenteeism and Turnover

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• Decreased Motivation and Satisfaction

Life Stressors • Life Change and Life Trauma

Burnout

c) Discuss four (4) ways of organizational coping strategies in managing stress by individual and
organization.
(8 marks)
• Institutional programs for managing stress are undertaken through established organizational
mechanisms. For example, properly designed jobs and work schedules and the organization’s
culture
• Collateral stress program is an organizational program specifically created to help employees
deal with stress. Organizations have adopted stress management programs, health promotion
programs, and other kinds of program for this purpose.
• Work-life relationships, then, include any relationships between dimensions of the person’s work
life and the person’s personal life
• Balancing Work-Life Linkages – Individuals must also recognize the importance of long-term
versus short term perspectives in balancing their work and personal lives.

a) List six (6) types of incentives systems for the employees as for an additional compensation of
performance.
(6 marks)
An individual’s compensation package is the total array of money (wages, salary, commission),
incentives, benefits, perquisites, and awards provided by the organization.
Incentive systems are plans in which employees can earn additional compensation in return for certain
types of performance:
 Piecework programs, which tie a worker’s earnings to the number of units produced
 Gain-sharing programs, which grant additional earnings to employees or work groups for cost-
reduction ideas
 Bonus systems, which provide managers with lump-sum payments from a special fund based
on the financial performance of the organization or a unit
 Long-term compensation, which gives managers additional income based on stock price
performance, earnings per share, or return on equity
 Merit pay plans, which base pay raises on the employee’s performance
 Profit-sharing plans, which distribute a portion of the firm’s profits to all employees at a
predetermined rate
 Employee stock option plans, which set aside stock in the company for employees to purchase
at a reduced rate

b) List four (4) popular flexible work arrangements which could motivate employee involvement in
organization operation.
(4 marks)
• Empowerment is the process of enabling workers to set their own work goals, make decisions,
and solve problems within their sphere of responsibility and authority
• FLEXIBLE WORK ARRANGEMENTS:
• Compressed work schedule, employees work a full forty-hour week in fewer than the traditional
five days.
• Extended work schedule is one that requires relatively long periods of work followed by

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relatively long periods of paid time off.

• Flexible work schedules, or flextime, give employees more personal control over the hours
they work each day.
• Job sharing, two or more part-time employees share one full-time job.
• Telecommuting is a work arrangement in which employees spend part of their time working
off-site.

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