__________________________________Chapter 4: Groups, Teams, and Decision Making in Organization 43 *The Basics of Comparison between Group and Teams: The distinctions between work teams and work groups are illustrated in the diagram below. These definitions make it clearer why work processes have been reorganised around teams in so many organisations. Management is seeking the beneficial synergy that will enable their organisations to function better. An organisation may be able to produce more results with the same amount of input if teams are used effectively. Group Decision Making: *The Basics of Effectiveness of Group Decision Making: Group Team Information exchange Goal Collective knowledge Neutral (sometimes negative) Synergy Positive Individual Accountability Individual and mutual Irregular and complex Skills Complementary Group Individual a) Accuracy X b) Speed X c) Creativity X d) Degree of acceptance X e) Efficiency X
__________________________________Chapter 4: Groups, Teams, and Decision Making in Organization 44 Accuracy Group decisions are typically more accurate compared to those made by the average member of the group, but they fall short of the most accurate person's judgements. Speed Individual decision-making is superior to that of groups. Creativity Groups tend to perform better. Degree of acceptance Acceptance of practical answers, followed by a nod to the group. *The Strengths and Weaknesses of Group Decision Making: Strengths: • Greater information and knowledge: By combining the resources of numerous people, groups increase the amount of input and heterogeneity in the decision-making process. • A greater variety of viewpoints: This gives the opportunity to think about more strategies and options. • Greater acceptance of a solution: those who took part in the decision-making process are more inclined to passionately endorse and convince others to accept it. Weaknesses: • Ambiguous accountability: In a personal choice, it is obvious who is responsible for the result. The accountability of any individual participant in a group decision is reduced. • Conformity pressures: The need for group members to fit in and be seen as valuable members of the group can stifle any overt disagreement. • Dominance by one or a small number of individuals: If these individuals are of low and medium ability, the efficacy of the group will suffer.
__________________________________Chapter 4: Groups, Teams, and Decision Making in Organization 45 *Techniques to Reduce Problems in Group Decision Making: Interacting Group • The most popular way to get team members to talk about the issue informally is called the "interacting group technique." Both verbal and nonverbal communication are used. Brainstorming • To generate ideas through free association, a group of people, typically between five and ten, sits around a table. • Instead of evaluating ideas, the major focus is on idea generation. Nominal Group Techniques • All members independently write down ideas on the issues discussed before the group meeting is being held. • Interpersonal discussion is restricted not before all members presents their ideas. Electronic Meeting • An electronic meeting system (EMS) is a sort of computer programme that supports collective decision-making and creative issue solving within or across organisations. • Combination of nominal group techniques and the use of computer technology (also known as computer assisted group).
__________________________________Chapter 4: Groups, Teams, and Decision Making in Organization 46 Self-test Questions 1. a) Interpret TWO (2) classification of group. (6 marks) b) Analyze TWO (2) strengths and TWO (2) weaknesses of group decision making. (10 marks) 2. a) The Five-Stage Model of group development is introduced by Bruce Tuckman. Sketch out the complete model. (10 marks) b) Group and team are different. Differentiate both in terms of: i. Goal ii. Synergy iii. Accountability iv. Skills (10 marks) 3. In today’s world, many decisions in organizations are made by groups, teams, and committees. Explain FOUR (4) techniques used by managers in group decision making. (10 marks) 4. Team exists with highly interdependent members who are willing to share authority and responsibility to achieve common goal. There are a few types of teams that occur within or across organizations. By giving examples, identify THREE (3) types of teams in the workplace. (15 marks)
Chapter 5 Power and Politics: Definition, bases of power, power or influence tactics and their contingencies, definition and classification of political behaviour, causes and consequences of political behaviour. Power is not revealed by striking hard or often, but by striking true. – Honore de Balzac
__________________________________________________________Chapter 5: Power and Politics 47 CHAPTER 5: POWER AND POLITICS Learning Outcomes: Power: Definition of Power: Authority and influence over others are two definitions of power. Power is the capacity of one individual to persuade another to behave in a particular way. *Five Basis Power: The Bases of Power, a 1959 essay by social psychologists John R. P. French and Bertram Raven, is recognised as the standard for classifying power in organisations today. Five sources of power were identified by them: Coercive, Reference, Legitimate, Expert, and Reward power. At the end of this chapter, students should be able to: • Define the concept of power in organization • Discuss five bases of power • Demonstrate nine power or influences tactics and their contingencies • Define the concept of organizational politics • Classify political behavior • Classify causes and consequences of political behavior
__________________________________________________________Chapter 5: Power and Politics 48 Coercive power • A foundation of power built on the misplaced dread of the consequences of disobeying. • Ability to coerce people into cooperation through threats and punishment. • It’s effective in the short run, however, over the long term, it will reduce job satisfaction. • Example: Demotion, pay cuts, Downsizing and Termination. Referent power • Ability to persuade others based on respect for the person in a position of power. • Employees see a person as their role model. • A positive image will lessen your power. • Associated with charismatic leadership, respect, and others. • For example, why do celebrities receive RM1,000,000 to appear in product advertisements? Celebrities are used by marketing teams to influence consumer decisions, such as Dato Seri Siti Nurhaliza, who represents Cuckoo. Legitimate power • The power that a person has because of their place in an organization's formal structure. • an understanding among team members that certain roles have the authority to demand specific actions from others. • a person's formal position in the hierarchy determines their formal authority to utilise and control resources. • Example: Because of the position he has inside an organization, the CEO has a certain degree of influence. He will be followed by all the staff. Expert power • Power derived from special knowledge, skills and expertise owned by an individual. • Employees regard you as an expert in your field, which further
__________________________________________________________Chapter 5: Power and Politics 49 attracts respect. • Example: Lawyers, Doctors, and Accountants. Reward power • The ability to give out rewards that other people value is what leads to compliance. • Ability of a person to control the allocation of incentives in an organization and remove negative reinforcement. • Good practices will motivate employees, but unfair practices will demoralize employees. • Example: Salary increment, positive appraisals, time off and vacations & promotion. *Nine Power or Influence Tactics: Ways in which individuals translate power bases into specific actions: Legitimating/Silent Authority • Depending on the position of authority and in compliance with an organization's fundamental rules and regulations. • Using your position of authority or making a request in compliance with organisational norms or guidelines. • Example: Saying yes to your superior when you may or may not agree with him.
__________________________________________________________Chapter 5: Power and Politics 50 Rational Persuasion • Request or instruction is based on facts and logical arguments. • Demonstrating the justification for a request with logical justifications and timely proof. • A good example would be a credit card sales manager who regularly monitors sales performance and reminds sales personnel of their goals. Inspirational appeals • Used emotional commitment which motivates a person’s needs, hope and aspiration. • Appealing to a target's beliefs, needs, dreams, and goals to elicit emotional involvement. • As an example, support new concepts or a shift in approach, agree to a challenging task, and intensify efforts for which success is uncertain. Consultations • Guide and assist the person in making decisions on how you will accomplish your plan. • By including the target in choosing how your plan will be carried out, you can get their support. • Example: Boss need participation some of employees to make decision. Exchange • Exchange of rewards to the task done. • Providing the target with something in return for agreeing to a request. • Example: Employee negotiates with the boss for a half day off and in return, promises to complete and submit work the next day. Personal appeals • On the foundation of friendship and loyalty, appeal for help. • Seeking compliance out of friendship or loyalty.
__________________________________________________________Chapter 5: Power and Politics 51 • Example: For friendship-related reasons, the boss asked his employee friend to complete the assignment. Ingratiation • The practise of making a request before responding with flattery, praise, or friendly behaviour. • By making themselves more appealing or likeable to their target, a person tries to manipulate, control, or influence that person. • Example: A compliments B on past accomplishment before asking B to do another task, or A tries to flatter the boss in front of other employees or demonstrates a similar attitude with the boss. Pressure • Take advantage of demands, threats, and issues of warning. • Using warnings, repeated demands, and threats. • Example: A need to complete task before a certain time, if not boss give threats pay cut off. Coalitions • Engage the assistance of others to convince the target to agree. • Enlisting the assistance or backing of others to convince the target to accept. • Example: When an individual does not have sufficient power to influence others, he/she might be forming a coalition.
__________________________________________________________Chapter 5: Power and Politics 52 Politics: *Definition of Politics: Activities that are not required as part of a person’s formal role in the organization but that influence Activities that are not expressly part of a person's job description but nonetheless affect, or attempt to affect, how benefits and disadvantages are distributed throughout the organisation. Example: Hiding important information from decision-makers, joining a coalition, leaking private information to the media, creating rumours, lobbying, and changing favours with other organisations for both parties' gain. *Types of Political behavior: Legitimate Political Behavior Illegitimate Political Behavior Daily politics as usual. Extreme political conduct that ignores the game's unspoken norms. Example: • Addressing a complaint to your manager • Avoiding the line of command • Ignoring organisational policies and obstructing them • Getting reward and job promotion Example: • Sabotage • Several employees reported sick at once. • Whistleblowing • Symbolic resistance We see this type more than the other It is risky, you can be fired
__________________________________________________________Chapter 5: Power and Politics 53 *Causes and Consequences of Political Behavior: Factors That Influence Political Behavior *Individual Factors 1) High self-monitors People who show higher degrees of social conformity and are more perceptive to social cues are more likely to be effective at political behaviour than those who have poor awareness of themselves. 2) Internal locus of control Individuals who are more likely to have a pro-active attitude are those who believe they can manage their environment. 3) High Mach personality Individuals are defined by their ability to manipulate others and their quest for power. willing to use politics to suit his or her own interests. 4) Organizational investment The degree to which a person will undertake illegal political action depends on how they view their options and how successful they hope to be. 5) Perceived job alternatives Someone is more willing to take a chance on illegal political activity the more alternative career possibilities they have. due to a strong labour market or a lack of in-demand knowledge and skills. 6) Expectations of success It is unlikely that an individual will try to use illegal means if they have a low expectation of success. *Organizational Factors 1) Reallocation of resources Resources must be reduced when businesses combine to increase efficiency, and people may take political action to
__________________________________________________________Chapter 5: Power and Politics 54 protect what they have. 2) Promotion opportunities One of the most politically charged behaviours in organisations is frequently found to be promotion decisions. People compete for limited assets and try to influence the decision-making process when there is a chance for progress or promotion. 3) Low trust The higher the level of political behaviour, along with the probability that it will be of the illegal variety, the less confidence there is inside the organisation. Therefore, a high level of trust will regulate political behaviour overall and avoid illegal conduct. 4) Role ambiguity When a role is unclear, expected employee behaviours are also unclear. The range and purposes of the employee's political actions thus have fewer restrictions. 5) Unclear performance evaluation system Performance review procedures are far from an exact science. The possibility that an employee can get away with politicking increases the more subjective criteria are used in the evaluation, the focus is placed on a single outcome measure, or a long period of time passes between the time of the activity and the appraisal. Using subjective performance standards makes things unclear. 6) Zero-sum reward practices Employee politicking will be encouraged more by an organization's culture that emphasizes a win-lose or zerosum approach to giving distribution. The zero-sum strategy
__________________________________________________________Chapter 5: Power and Politics 55 assumes that the size of the reward "pie" is fixed, meaning that any gains made by one person or group must be at the price of those made by another person or group. *Employees Response to Organizational Politics: Decreased job Satisfaction • Politics has an impact on the employees' attitudes. • Even the most dedicated workers eventually lose interest in their jobs and come to work simply out of obligation. In other words, politics makes people feel less satisfied with their jobs. • Internal politics prevent employees from giving their all at work. • No matter how hard an individual works, their efforts are ignored in a politically motivated workplace. Increased anxiety and stress • It is true that talking about a problem makes it go away. People find it difficult to confide in any of their coworkers because they worry that information will be revealed. • The employees' stress levels grew because of politics. People are not machines that can go for eight to nine hours without speaking to anyone. • It's important to have coworkers you can turn to for support. • People are not trustworthy towards one another. Increased turnover • It's challenging for employees to focus on their work. The other person's image in front of superiors is what they care for more. • Politicians tend to focus on other things, so they are more likely to make mistakes. • This situation may lead to an increase in turnover rate.
__________________________________________________________Chapter 5: Power and Politics 56 Reduced performance/productivity • Politics reduces an individual's productivity and eventually has an impact on an organization's productivity. • It's a well-known fact that those who participate in office politics focus less on their work. • They prefer to pull on legs and attack people's backs. They criticise their coworkers most of the time. • Politics at work prevent employees from meeting their goals within the specified time. Work at such a company is delayed. Self-test Questions 1. a) Describe organizational politics. (5 marks) b) Exhibit FOUR (4) individual factors that can increase political behavior. (10 marks) c) Organizational politics happens in all organizations. Organizational politics generate political behavior. Illustrate any FIVE (5) organizational factors which influence individual political behavior. (10 marks) 2. a) State FIVE (5) base of power. (5 marks) b) Research has identified nine power tactics which are used by individuals to influence others. Interpret any FOUR (4) of the power tactics. (10 marks) 3. Explain FOUR (4) employee responses to organizational politics. (8 marks)
Chapter 6 Conflict and negotiation: Definition, transition in conflict thought, the five stages in conflict process, definition and negotiation strategies, and the five steps in negotiation process. Let us never negotiate out of fear. But let us never fear to negotiate. – John F. Kennedy
______________________________________________________Chapter 6: Conflict and Negotiation 57 CHAPTER 6: CONFLICT AND NEGOTIATION Learning Outcomes: Conflict: *Definition of Conflict: A procedure that starts when one party believes that another party has negatively impacted something they care about or is about to negatively impact it. When an engagement "crosses over" into an interparty conflict, it is at this stage of an ongoing activity. It includes a wide range of conflicts that people encounter in organisations, such as: a) Goal incompatibilities. b) Disagreements over how facts should be perceived; and c) Conflicts based on behavioural expectations. *The Evaluations in Conflict Thought: 1) Traditional View of Conflict Believes that conflict should be avoided since it is uncomfortable and damaging. believes that poor communication and a lack of trust are the main causes of disagreements. To At the end of this chapter, students should be able to: • Define the conflict in organization • Differentiate the transition in conflict thought • Outline the five stages in conflict process • Define the concept of negotiation • Contrast negotiation strategies • Illustrate the five steps in negotiation process
______________________________________________________Chapter 6: Conflict and Negotiation 58 achieve excellent work results, one should stay away from conflict and those who continuously mix it up. 2) Human Relations View of Conflict Believes that conflict is a normal feature in all organizations. argues that disagreements should be allowed and that they can improve performance. 3) Interactionist View of Conflict Believes that since disagreements frequently have a favorable impact on innovation and creativity, they should be fostered. It is not only necessary to ensure that a task is completed well but also to have a positive drive for growth. *Dimensions of Conflict‐Handling Intentions: a) Competing (assertive and uncooperative) A desire to pursue one's goals regardless of how doing so may affect the other side of the conflict. wins lose their orientation. b) Collaborating (assertive and cooperative) A situation where both sides in a quarrel want to carefully address everyone's concerns. Cooperation and a win-win outcome are present. Achieve a win-win outcome. c) Avoiding (unassertive and uncooperative) A desire to avoid or minimise a disagreement. When an argument arises, a person recognises it and wants to leave it. Try to ignore the conflict, for instance. d) Accommodating (unassertive and cooperative) The willingness of one party in a quarrel to prioritize the interests of the other party over his or her own to maintain the relationship.
______________________________________________________Chapter 6: Conflict and Negotiation 59 e) Compromising (moderate assertive and moderate cooperative) A situation where each side in a dispute is prepared to make an offering. *Five Stages of Conflict Process: 1) Potential opposition or incompatibility This is the first stage where no actual conflict has arisen yet. The potential for conflict to arise is present because of the sources of conflict mentioned earlier. 2) Potential opposition or incompatibility Since there has been no actual conflict, this is the first stage. The previously listed sources of conflict mean that there is a chance for conflict to develop. 3) Cognition and personalization This stage begins when one party becomes aware that its goals are being thwarted by another party. Each party searches for the root cause of the conflict, identifies why conflict is arising and analyzes the factors that led to its occurrence. 4) Intentions The parties involved in the conflict start to feel bad for one another at this time. Typically, each group closes its ranks, adopts a stance, and considers the other group responsible for the issue. 5) Behavior In this phase, one side decides how to respond to or handle the party that is thought to be the cause of the conflict, and both parties attempt to harm one another and disrupt one another's objectives.
______________________________________________________Chapter 6: Conflict and Negotiation 60 6) Outcome If conflicts can be settled by negotiation or cooperation before they reach the manifest stage, the aftermath of the conflict will encourage positive working relationships in the future. But if conflict is not resolved until late in progress, the competition that takes place will result in conflict aftermath which sours future working relationships and leads to an organizational culture poisoned. .
______________________________________________________Chapter 6: Conflict and Negotiation 61 Negotiations: Definition of Negotiation: a) A procedure when two or more parties try to reach an exchange rate agreement while exchanging products or services. b) A procedure whereby two or more parties try to come to a reasonable agreement with conditions when there is some degree of disagreement. *Negotiation Strategies: Distributive Bargaining (Win‐Lose Negotiating— The Zero-Sum Game) • A win-lose negotiation aims to allocate a certain number of resources. • Distributive negotiation is competitive in nature and required that every party views every other party as a competitor. • Examples: Staff negotiation to increase the salary, management do not agree but increase working hours. Integrative Bargaining (Win‐Win Negotiating—A Positive Sum Approach) • Negotiations that aim to reach one or more agreements that benefit both parties. • Integrative negotiation is collaborative in character, with all parties working as allies to one another throughout the negotiation process. • Using the staff's request for an incentive increase as an example, management agreed by increasing working hours. Bargaining Characteristic Distributive Bargaining Integrative Bargaining Goal Get as much of pie as possible Expand the pie so that both parties are satisfied Motivation Win-Lose Win-Win
______________________________________________________Chapter 6: Conflict and Negotiation 62 Focus Positions (‘I can’t go beyond this point on this issue’) Interest (‘Can’t you explain why this issue is so important to you?’) Information Sharing Low (Sharing information will only allow other party to take advantage) High (Sharing information will allow each party to find ways to satisfy interest of each party) Duration of relationships Short term Long term Source: Based on R. J. Lewicki and J. A. Litterer, Negotiation (Homewood, IL: Irwin, 1985, p. 280). (Exhibit taken from Organizational Behaviour, Stephen P.Robbins, Timothi A.Judge and Seema Sanghi, 12th ed, Pearson education, pp567)
______________________________________________________Chapter 6: Conflict and Negotiation 63 The Five Steps Negotiation Process: The Best Alternative to a Negotiated Agreement is known as BATNA. The best substitute for a negotiated agreement is the lowest value (result) for a negotiated agreement that a person may accept. It entails the following actions: 1. Preparation and Planning Before the start of negotiations, one must be aware of conflict, the history leading to the negotiation, the people involved and their perception of the conflict expectations from the negotiations etc. 2. Definition of Ground Rules Once the planning and strategy is developed, one must begin defining the ground rules and procedures with the other party over the negotiation itself that will do the negotiation. Where will it take place? What time constraints, if any, will apply? To what issues will negotiations be limited? Will there be a specific procedure to follow until an impasse is reached? During this phase the parties will also exchange their initial proposals or demands. 3. Clarification and Justification When initial positions have been exchanged both the parties will explain amplify, clarify, bolster, and justify their original demands. This need not be confrontational. Rather it is an opportunity for educating and informing each other on the issues of why they are important and how each arrived at their initial demands. This is the point where one party might want to provide the other party with any documentation that helps support its position.
______________________________________________________Chapter 6: Conflict and Negotiation 64 4. Bargaining and Problem Solving The essence of the negotiation process is the actual give and take in trying to hash out an agreement, a proper bargain. It is here where concessions will undoubtedly need to be made by both parties. 5. Closure and Implementation The final step in the negotiation process is formalization of the agreement that has been worked out and developing and procedures that are necessary for implementation and monitoring. For major negotiations – this will require hammering out the specifics in a formal contract. Negotiation Process has five stages. In all steps of negotiation process the involved parties’ bargain in a systematic way to decide how to allocate scarce resources and maintain each other’s interest.
______________________________________________________Chapter 6: Conflict and Negotiation 65
______________________________________________________Chapter 6: Conflict and Negotiation 66 Self-test Questions 1. a) Define conflict. (3 marks) b) Explain FIVE (5) dimensions of intention to handle conflicts. (15 marks) c) Explain TWO (2) negotiation strategies. (10 marks) 2. In stage III of the conflict process, intention means the decision to act in each way when a conflict happens. Explain any FIVE (5) dimensions of conflict-handling intention that can be used in an organization. (10 marks) 3. Differentiate THREE (3) transitions in conflict thought. (9 marks) 4. “Recognizing the different aspect of a conflict and the different behaviors in which a conflict escalates would allow you to deal with the situations more effectively.” Based on the statement, discuss THREE (3) types of conflict-handling intentions with appropriate examples. (9 marks)
Chapter 7 Organizational culture AND CHANGE: Definition, functions of culture, the creation and sustain of culture, and cultivate the organizational culture to the employees. Pressure or forces of change, sources of resistance to change, tactics to overcome resistance to change, methods to manage organizational change. When I hear the word culture, I reach for my Browning. – Hanns Johst
_______________________________________________Chapter 7: Organizational Culture and Change 67 CHAPTER 7: ORGANIZATIONAL CULTURE and change Learning Outcomes: Definition: An organization's culture is a set of common values that its members maintain. The organisation stands out from other organisations thanks to its organisational culture. According to Goodman et al. (2007), organisational culture is a collection of shared norms, beliefs, and values that bind individuals together and aid in their understanding of organisational processes. The organisational culture has an impact on how individuals and groups behave, carry out their tasks, and relate to their superiors, subordinates, clients, and stakeholders. Industry, the business environment, and national culture all influence organisational culture. At the end of this chapter, students should be able to: • Define the concept organizational culture • Discuss the functions of culture • Explain the three ways of creating culture in organization • Demonstrate ways to sustain organizational culture • Demonstrate methods to cultivate organizational culture to the employees • Explain change in organization
_______________________________________________Chapter 7: Organizational Culture and Change 68 The Functions of Culture: Functions of culture within an organization: The boundary-defining function of culture Culture helps distinguish one organization from another. Culture expresses an identity. The members of the organization are given a sense of this identity. Culture helps people develop commitment. A commitment is made to a cause greater than one's own self-interest. Culture improves the stability of social systems. Culture serves as the social glue that establishes acceptable norms for what workers should say and do. Culture provides a sense-making and control mechanism. Employee attitudes and behavior are influenced by this system. The Three Ways of Creating Culture in Organization: The founders of an organisation, who had a significant influence on its early culture, are the true source of that organization's culture. There are three ways that cultures are created: First Way Only people who share their beliefs and values are hired and retained by the founders. Second Way These personnel are trained and socialised by the founders to their way of thinking and feeling. Third Way Employees are encouraged to accept the views, attitudes, and assumptions of the founders by following their own behaviour, which serves as a model.
_______________________________________________Chapter 7: Organizational Culture and Change 69 *The Forces Use by Organization to Keep a Culture Alive: 1) Selection Process: Identifying and employing people with the knowledge, skills, and ability to perform well is the clear objective of the hiring process. The final decision identifies persons whose values are essentially consistent with at least a good portion of those of the organisation since it is heavily influenced by the decision maker's assessment of how well the candidates would fit into the organisation. Candidates receive information from the selection process as well. 2) Top Management actions: The culture of the company is greatly influenced by the activities of top management. Senior executives set norms that penetrate the organisation concerning, for example, whether taking risks is desirable, how much flexibility managers offer staff, what is suitable dress, and what behaviours earn pay hikes, promotions, and other benefits. These norms are established by words and behaviour. 3) Socialization process: New hires require assistance in adjusting to the established culture, no matter how well the organisation does in its recruiting and selection processes. Socialisation is that assistance. His ability to enter the organisation in the first place depends on his ability to put on the right face throughout the selection procedure. Success therefore depends on how well the prospective member foresees the needs and desires of others within the organisation.
_______________________________________________Chapter 7: Organizational Culture and Change 70 Stages in the Socialization Process: The Pre-arrival Stage • This phase includes all the learning that takes place prior to a new employee joining the team. Both the organisation and the work that must be done are covered by the socialisation process. • The socialisation process that takes place before a new employee joins the company is known as the pre-arrival stage. • For instance, students who enrol in business schools to obtain an MBA are socialised to have the attitudes and actions that businesses value. • This is the case because the degree to which the student correctly predicted the expectations and wants of individuals in the business school determines the degree of success. Encounter Stage • The new employee encounters the reality of the organisation at this stage of the socialisation process and faces the chance that expectations and reality may not match. • The encounter stage just serves as a confirmation of the perceptions developed during the pre-arrival stage if expectations prove to have been correct. • Employees who don't pick up on significant or important role habits run the risk of being called "rebels" and being fired. This helps to keep the culture alive even more.
_______________________________________________Chapter 7: Organizational Culture and Change 71 Metamorphosis Stage • The socialisation process stage, known as the "metamorphosis stage," is when a new employee transforms and adjusts to the position, work group, and organisation. • Changes that are comparatively long-lasting occur during this period. The employee effectively completes the tasks necessary for his or her new functions, acquires the necessary skills for the position, and adapts to the standards and values of the workplace. • The socialisation process is concluded in the transformation stage. The new employee accepts the organisational norms and those of his work groups, as well as understands and agrees with those standards. • The effectiveness of this phase has a favorable effect on the new hire's productivity and dedication to the company. *The Methods to Cultivate Organizational Culture to the Employees: Stories • They frequently feature stories about the organization's founders, rule breaking, rags-to-riches achievements, workforce reductions, employee relocation, responses to previous errors, and organisational coping. • During the process of socialization, which includes the initial days on the job, early encounters with colleagues, and first impressions of organizational life, employees also develop their own narratives about how they came to either fit or not fit with the organization. Rituals • Rituals represent ongoing patterns of behavior that communicate and reinforce the fundamental principles of an organization, including the priorities for goals, people, and resources.
_______________________________________________Chapter 7: Organizational Culture and Change 72 Material symbols • Examples of material symbols include the design of a company's headquarters, the sorts of automobiles given to top executives, and the existence or absence of corporate aircraft. • The size of offices, the refined decor, executive benefits, and dress are among others. These communicate to workers who is significant, how egalitarian top management wants to be, and the right behaviors, such as taking risks, being conservative, authoritarian, interactive, individualistic, or social. Language • Jargon and acronyms for terms, expressions, and words that have implications for an organisation. • Language is used by many organisations and divisions within them to help members identify with the culture, confirm their acceptance of it, and help in its survival. • Equipment, officers, significant figures, suppliers, clients, or goods related to the firm are described using unique terminology. Organization Change: Definition: Any change that takes place throughout the entire workplace is referred to as change. People are typically used to a well-established way of life, and any difference or departure from that way of life may be referred to as a change. Change might be quite straightforward, such as moving an office, or it can be a more complex technical change that might threaten the lives of some employees.
_______________________________________________Chapter 7: Organizational Culture and Change 73 "The term change refers to any modification that takes place in the organisational work environment." Another definition is that "change frequently occurs when an organisational system is disturbed by some internal or external force." Straightforward modification of a system's structure or operation defines change as a process. It could be nice or terrible, but the idea is only descriptive. *The Pressure or Forces of Change: Force Examples Nature of the workforce • More diversity in culture. • Population ageing. • Increased outsourcing and immigration. Technology • Faster, less expensive, and more compact handheld devices. • Expansion and development of social networking platforms. • Understanding the genetic code of humans. Economic shock • The cyclical nature of the world housing market. • Collapse of the financial sector. • Worldwide recession. Competition • Worldwide rivals. • Combination and consolidation. • More governmental control over business. Social Trends • Increased awareness of the environment. • Attitudes towards gay, lesbian, and transgender workers are becoming more accepting. • More connectivity and multitasking.
_______________________________________________Chapter 7: Organizational Culture and Change 74 World Politics • Increasing costs for health care. • Social prejudices against business and executives. • China's marketplaces are becoming more open. *The Sources of Resistance to Change: Sources Examples *Individual Sources Habit: We rely on habits or programmed responses to deal with the complexities of life. When faced with change, however, our desire to respond in our usual ways becomes a cause of resistance. Security: People who have a high need for security are more inclined to be against change since it damages their feelings of safety. Economic factors: Changes in job tasks or established work routines can cause economic stress if people are concerned that they will be unable to perform the new tasks or routines to their previous standards, especially if pay is closely tied to productivity. Fear of the unknown: Change replaces the unknown with ambiguity and uncertainty. Selective information processing: People are guilty of selectively processing information to maintain their perceptions. They believe what they want to hear and dismiss evidence that challenges their worldview. Organizational Sources Structure inertia: Organizations have built-in methods to promote stability, such as their selection processes and formalized regulations. When an organization faces change, structural inertia acts as a counterbalance to maintain stability. Change has a limited emphasis since organizations are made up of a few interrelated subsystems. It is impossible to adjust one without affecting
_______________________________________________Chapter 7: Organizational Culture and Change 75 the others. As a result, minor changes in subsystems are often cancelled out by the system. Group inertia: Even if individuals want to change their behaviors, group norms may operate as a constraint. Expertise under threat: Changes in organizational patterns could undermine specialized groups' competence. Threat to established power dynamics: A change in decision-making authority may undermine long-standing power dynamics inside the organization. *Tactics to Overcome Resistance to Change: Tactics Examples Education and communication • Educating employees on the significance of the change they must make. • Face-to-face discussions and mass presentations were used. • Show the individuals who will be affected the rationale behind the change. Participation and Involvement • Using the participative-consultative method, in which the change agent involves employees in the design of work activities and the change process. • Encourage them to provide more ideas and solutions for adapting to the change. • Participation in the decision-making process reduces resistance. Facilitation and Support • Employee-centred approach, in which the change agent focuses on interpersonal relationships. • It shows a personal interest in its employees' needs
_______________________________________________Chapter 7: Organizational Culture and Change 76 and accepts individual diversity. • Provide counselling, therapy, or new-skills training. Develop positive relationship • Trust the managers who are putting them into action. • They have a better relationship with their boss and are more optimistic about the change process. • They are more optimistic about the change if they trust the agent. Implement changes fairly • Be consistent and procedurally fair. • Reduce the negative impact to ensure that change is implemented fairly. • Importance if an employee perceives an unfavourable consequence. • It is critical that employees understand the cause of the change and consider its implementation consistent and fair. Manipulation and co-optation • "Spinning" the message to gain cooperation when other methods have failed or are too costly. • Facts are twisted to make them seem better. • Combines manipulation and participant. • “Buy-off” the leaders of resistances group. Selecting people who accept change • Hire people who are open to new experiences. • Hire people with more positive attitude about change and others. • People with a good self-concept and a high-risk tolerance will cope better with organizational change.
_______________________________________________Chapter 7: Organizational Culture and Change 77 Coercion • Threats or force should be used against the resisters. • Transfer threats. • Promotion denied. • Performance review that is negative. • Bad recommendation letter. The Methods to Manage Organizational Change: Main approaches Examples *Lewin’s Three-step Model Kurt Lewin proposed three steps for successful organisational change: a) Unfreezing – Changing to overcome the pressures of individual resistance as well as collaborative compliance. b) Movement – A method of change that moves an organisation from its current state to a desired end state. a) Refreezing – By balancing both controlling and restricting forces, an intervention can be stabilized.
_______________________________________________Chapter 7: Organizational Culture and Change 78 Kotter’s Eight-Step plan for implementing change a) Create a sense of immediacy by providing a convincing justification for why change is required. b) Form a powerful alliance to spearhead the change. c) Create a new vision to guide the transition as well as methods to achieve the vision. d) Communicate the vision to everyone in the organisation. e) Remove barriers to change and encourage risk-taking and innovative problem-solving to empower others to act on the vision. f) Plan for, generate, and recognise short-term "wins" that move the organisation closer to the new vision. g) In the new programmes, consolidate improvements, reassess modifications, and make any necessary revisions. h) Demonstrate the connection between new behaviours and organizational success to reinforce the improvements.
_______________________________________________Chapter 7: Organizational Culture and Change 79 Action Research • A change process that begins with systematic collection of information and ends with the selection of a change action based on what the data suggests. • Steps in the process: a) Diagnosis b) Analysis c) Feedback d) Action e) Evaluation • Action Research has the following advantages: a) It is problem-focused rather than solution-centred; and b) It involves many employees, which lessens opposition to change.
_______________________________________________Chapter 7: Organizational Culture and Change 80 Organizational Development (OD) • A collection of planned change interventions based on humanistic-democratic values with the goal of improving organisational effectiveness and employee well-being. • OD values include: a) respect for individuals. b) trust and support. c) power equilibrium. d) Confrontation, and e) participation. Self-test Questions 1. a) State THREE (3) stages in the socialization process. (9 marks) b) Discuss THREE (3) factors that sustain an organizational culture. (6 marks) 2. It has been two weeks since Faizal served as a Marketing Executive at Menara Sdn. Bhd, but he still cannot adapt to the environment and culture in the organization. None of the
_______________________________________________Chapter 7: Organizational Culture and Change 81 employees is willing to share norms and values practiced by them, including his manager, En. Sabri. Propose TWO (2) ways of how Encik Sabri can cultivate the Menara’s culture to Faizal. (10 marks) 3. Organizational culture is a system of shared assumptions, values and beliefs which governs how people behave in organizations. These shared values have a strong influence on people in the organization and dictate how they dress, act, and perform their jobs. By providing suitable example, describe any THREE (3) methods to cultivate organizational culture in the employees. (9 marks) 4. People working in the same organization display the same behavior as they share the same values, norms, and beliefs. The unique part of an organization culture is when every organization has its own culture that differentiates it from other organizations. Illustrate THREE (3) ways in sustaining culture in organization. (9 marks) 5. a) What forces act as sources of resistance to change? (8 marks) b) What are the four main approaches to managing organizational change? (12 marks) 6. Almost every organization must adapt to various environments in managing change. List with suitable example THREE (3) forces of change which influence a manager to handle changes in an organization. (6 marks) 7. Change is a day-to-day reality for organizations. To succeed, an organization must be able to adapt with the changes. Choose FIVE (5) tactics to overcome resistance for changes. (10 marks)
82 List of references Ang Guat Bin, Pushpalatha Appanaidu, Ziehanie Shafiai (2017) Organizational Behavior. 1st Edition. Selangor, Malaysia: Oxford Fajar, (ISBN 978-9834720155) Griffin, R. W., & Moorhead, G (2014) Organizational Behavior: Managing People and Organizations. 11th edition. New York: Houghton Mifflin Company. (ISBN13: 978- 1133626695) Stephen P Robbins, Timothy A. Judge (2015) Organizational Behavior. 16th Edition. New Jersey, USA: Pearson Prentice Hall. (ISBN13: 978-0133507645)
ORGANIZATIONAL BEHAVIOR eBook provides is appropriate for diploma students to have a basic understanding of organizational behavior and it will help them to understand their co-worker and supervisors in real working environments. This eBook follows closely the latest polytechnic syllabus and contains comprehensive notes and exam-oriented tutorials. MOHD FAIZAL BIN MOHD MUSLIM is Lecturer at the Commerce Department, Politeknik Muadzam Shah, Pahang. He graduated with a Master Business Administrative (MBA) from Universiti Kebangsaan Malaysia (UKM) and Bachelor of Business Administration (Hons) from University of Malaya (UM). He has been teaching in three polytechnics and has more than 16 years teaching experience. Other than Organizational Behavior, he also teaching Principles of Management, Entrepreneurship, Business Mathematics and Statistics.