Download Organizational Behaviour and more Lecture notes Organization Behaviour in PDF only on Docsity!
UNIT-
ORGANISATION CULTURE
INTRODUCTION:
Organiza(onal culture is a system of shared meaning held by members that dis(nguishes an organiza(on from other organiza(on. Organiza(onal culture is the set of values that helps the organiza(ons employees understand which ac(ons are considered and which are acceptable. Basically organiza(onal culture is the personality of the organiza(on. Organiza(on culture is the Collec(on of rela(vely uniform and enduring values, beliefs, customers and prac(ces that are uniquely shared by an organiza(on’s members and which are transmi@ed from one genera(on of employees to the next. DEFINITION OF ORGANISATION CULTURE: “organiza(on cultural refers to a system of shared meaning held by members thatdis(nguishes the organiza(on from other organiza(on”. -ROBBINS OBJECTIVES OF AN ORGANISATION CULTURE A. Giving the organiza(on clear pictures of their culture from an unbiased assessment. B. Maximizing a strategic plan for culture change in each employee. C. Iden(fying and elimina(ng the sub(tle and overt barriers to produc(vity. D. Enhancing respect for all individuals. E. Enabling and encouraging different management style to flourish.
TYPES OF CULTURE
- ACADEMY CULTURE: Employees are highly skilled and tend to stay in the organiza(on while working their way up the ranks. The organiza(on provides a stable environment in which employees can develop and exercise their skills.
- BASE BALL TEAM CULTURE: Employees are free agents who have highly prized skills. They are in high demand and can get jobs elsewhere rather easily. This type of culture exists in fast faced high risk organiza(ons. Like investment banking, adver(sing etc.
- CLUB CULTURE: The most important requirements for employees in this culture is to fit into the group. Usually employees start at the bo@om and stay with the organiza(on. The organiza(on promotes from within and highly values seniority. Example, military, some law firms etc.
- FORTRESS CULTURE: There are certain organiza(ons where the employees are not very sure about their career and longevity. Such organiza(ons follow fortress culture. The employees are terminated if the organiza(on is not performing well. Individuals suffer the most when the organiza(on is at a loss. Example, Stock broking industries follow such a culture,& savings and loans large car companies etc.
- PERSON OR SUPPORT CULTURE: this culture is offers its members sa(sfac(on resul(ng from rela(onships mutuality’s belonging and connec(on. In this culture autonomy over the work they do and if power is to be exercised then this ison the basis of exper(se.
ORGANISATION CLIMATE :
Organiza(onal climate does not deal with values and norms. It is concerned with the current atmosphere in an organiza(on.”Wow this place has an amazing energy people are really friendly and if feels posi(ve”. That’s the climate. Essen(ally the climate is the percep(ons and a]tudes of the people in the culture. Organiza(onal climate is also referred to as the situa(onal determinants which affect the human behaviors. The climate should be viewed from a total system perspec(ve. In theory the concept of organiza(onal climate is not very clear but prac(cally it is related to work performance, job contentment and self esteem of the employees. Each organisa(on has an organisa(onal climate that clearly dis(nguishes it from other organiza(ons. Basically, the organisa(onal climate reflects a person’s percep(on of the organisa(on to which he belongs. It is a set of unique characteris(cs and features that are perceived by the employees about their organiza(ons which serves as a major force in influencing their behavior. Thus, organiza(onal climate in a broad sense can be understood as the social se]ng of the organisa(on. DEFINITION 1.“organiza(onal climate is a collec(ve percep(on of thework environment by the individuals within a common system”. - JAMES AND SELLS
IMPORTANCE OF ORTGANISATIONAL CLIMATE :
Organiza(onal climate influences to a great extent the performance of the employees because it has a major impact on mo(va(on and job sa(sfac(on of individual employees. Organiza(onal climate determines the work environment in which the employee feels sa(sfied or dissa(sfied. Since sa(sfac(on determines or influences the efficiency of the employees, we can say that organiza(onal climate is directly related to the efficiency and performance of the employees. The factors that can be observed and measured are called overt factors and the factors that are not visible and quan(fiable are called covert factors. Overt factors organizaIonal climate are Hierarchy, Financial resources, Goals of organizaIons, Skills and abiliIes of personnel, Technological state, Performance standards and Efficiency measurement. The techniques that are generally helpful in improving the climate of the organiza(on are Effec(ve Communica(on System, Concern for people, Par(cipa(ve decision making, Change in policies, Procedures and rules and Technological changes. Par(cipa(on is a very effec(ve tool to develop sound organiza(onal climate and job sa(sfac(on. An atmosphere of co-opera(on opens access among group members and creates individual mo(va(on to exchange knowledge with group members resul(ng in moreproduc(vity.
The following techniques in improving the climate of the organisaIon:
1. EffecIve CommunicaIon System: There should be a two way communica(on in the organisa(on so that the employees know what is going on and react to it. The manager can modify his decision on the basis of feedback receive d. 2.Concern for People : The management should be interested in the human resource development. It should work for the welfare of employees and an improvement in their working condi(ons. For developing a sound organiza(onal climate, the management should have show concern for the people. 3.ParIcipaIve Decision Making :The management should involve the employees in decision making process, par(cularly those decisions which are related to goal se]ng and affect them. Par(cipa(ve decision making will make the employees commi@ed to the organisa(on and more co-opera(ve also. 4.Change in Policies, Procedures and Rules: The organiza(onal climate can also be changed by making changes in the policies, procedures and rules. It is a (me consuming process but the changes will also be long las(ng if the workers see the changes in policies, procedures and rules as favorable to them. 5.Technological Changes: Generally, the workers and employees resist any innova(vechanges. But where technological changes improve the working condi(ons of the employees, the change will be easily accepted. Be@er climate will be there if the management adopts innova(ve changes in consulta(on with the employees.
LEADERSHIP :
Successful of any organiza(on depends on leaders. The quality of leadership provided by the managers determines the degree of success of business. Leadership involves the exercise of influence on the part of the leader over the percep(on, mo(va(on communica(on etc. Leadership is the process of influencing for the purpose of achieving shared goals. The effec(veness of leaders depends on their ability to influence and be influenced by the followers in the task accomplishment. Leaders ensure that the Necessary tasks are accomplished. Leadership provides direc(on, guidance, restores confidence and makes the way easy for achieving the objec(ve. The leaders play can either take the organiza(on to heights of success. The strength of a leader is measured by the ability to facilitate the self-leadership of others. Leadership is a very frequently usedword, the reason for this frequent use is every society, organiza(on, country and the world require leaders to lead people towards the achievement of common goals. Leadership is a group ac(vity. A leader influences his followers and followers have influence over their leader. Leader have a clear vision, sharing that vision with others so that they will follow willingly, providing the informa(on, knowledge and methods to realize that vision, and coordina(ng and balancing the conflic(ng interests of all members and stakeholders. A leader steps up in (mes of crisis, and is able to think and act crea(vely in difficult situa(ons.Someone with great leadership skills, For EX: today Bill Gates who, despite early failures, with con(nued passion and innova(on has driven Microsoe and the soeware industry to success. The act of inspiring subordinates to perform and engage in achieving a goal. DEFINITIONS OF LEADERSHIP
- Leadership is ul(mately about crea(ng a way for people to contribute to making somethingextraordinary happen." Alan Keith 2.“Leadership occurs when one person induces others to work toward somepredeterminedobjec(ves.” — Massie
TRAITS THEORY :
The trait theories of leadership focus on the individual characteris(cs of successful leaders. The trait theorists believes that people become leaders because of special traits they posses and that leaders are born not made. The theory assumes that a leader is born and not trained. This assump(on is not acceptable to the contemporary thinkers on the subject.The personality of man in his inner life including such inner elements as background life history, believes life experiences, a]tudes, self image, love, hates and philosophy of life. Successful leaders possess many of the following traits like.
- Drive - desire for achievement high energy ini(a(ve.
- Honesty and integrity – they are trusty worthy open and reliable.
- Physical features – have good physique
- Self confidence – trust in own abili(es.
- Crea(vity – crea(ve and have the capacity to come up with original ideas.
- Flexibility – leadership have the ability to adapt to the needs of followers.
- Leadership mo(va(on – strong desire to influence others and reach shared goals. THE TRAITS CAN BE CLASSIFIED LIKE A. SELF-KNOWLEDGE : knowledge of own talents and value of foreign assignmentswith responsibility and accountability. B. OPEN TO FEEDBACK: effec(ve leaders develop valued and varied source of feedback on their behavior and performance. C. HUMAN RELATIONS : a successful leader should have adequate knowledge of human rela(ons. An important part of a leader’s job is to develop people and get their voluntary co-opera(on for achieving work. D. TECHNICAL SKILLS : the ability to plan organizes delegates analyses seek advice, make decisions control and win co- opera(on requires the use of important abili(es which cons(tute technical competence of leadership.
E. COMMUNICATIVE SKILLS : a successful leader knows how to communicate effec(vely communica(on has great force it ge]ng acceptance from the receivers. A successful leader is an extrovert.
MANAGERIAL GRID:
It describes the rela(onship between the leader's concern for task and concern for people, but this theory differs in its perspec(ve. The managerial grid Considers leadership style based on their focus on task and people. The managerial grid model (1964) is a style leadership model developed by Robert R. Blake and Jane Mouton. In this style, managers have low concern for both people and produc(on.This model originally iden(fied five different leadership styles based on the concern for people and the concern for produc(on. The Managerial Grid is based on two behavioral dimensions: Concern for People : This is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best toaccomplish a task. Concern for ProducIon :This is the degree to which a leader emphasizes concrete objec(ves, organiza(onal efficiency and high produc(vity when deciding how best toaccomplish a task. Using the axis to plot leadership “concerns for produc(on‟ versus „concerns for people‟, MANAGERIAL GRID MODEL: In each of the axis, both horizontal and ver(cal, you can find nine ranges. Nine is the highest and one is the lowest range. So, if you are people- oriented manager who thinks about the team’s needs first, you would score closer to nine(or even nine).
On the other hand, if you had less care for the team’s needs, you would be somewhere close to zero. When you score yourself in both the horizontal and ver(cal axis, you’ll get the results for your management styleHIGH The five resul(ng leadership styles are as follows:
2.Task management (9, 1): Here leaders are more concerned about produc(on and have less concern for people. The employees’ needs are not taken care of and they are simply a means to an end. The leader believes that efficiency can result only through proper organiza(on of work systems and through elimina(on of people wherever possible. Such a style can definitely increase the output of organiza(on in short run but due to the strict policies and procedures, high labour turnover is inevitable. This leader is authorita(ve and he exerts disciplinary pressure. The leader requires the utmost of the employees and imposes sanc(ons when they fail to meet the requirements. 3.Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader tries Commitment to the organizaIon and its goals and mission : Emphasis on finding ways to mo(vate team members. Working hard and expec(ng others to show full commitment towards goal-achievement. Empowers the team and tries to be an inspira(on for employees. Team management is a challenging leadership style, as your a@en(on and focus must be equally divided in achieving results and ensuring people are happy. As a manager, you would want to ensure people are commi@ed to the organiza(on and that they understand its vision and objec(ves. You would include the rest of the team in decision- making, to ensure everyone has a stake in produc(vity and effec(veness. For example: An experienced manager inspires commitment from her employees and promotes career development, but doesn't ignore the need to meet aggressive deadlines in order to remain compe((ve. Using this style, a leader appreciates allegiance and admira(on fromhis staff but recognizes that running a successful business does not depend on being likedby your employees
TRANSACTIONAL VS TRANSFORMATION LEADERSHIP
TRANSACTIONAL LEADERSHIP: Transac(onal leadership involves an exchange rela(onship between leaders and followers. The transac(onal style of leadership was first described by Max Weber in 1947 and then by Bernard Bass in 1981. When the transac(onal leader allocates work to subordinates he is considered to be fully responsible for it. The basic assump(ons behind transac(onal leadership are that people are mo(vated by reward and punishment. This style is most oeen used by the managers. It focuses on the basic management process of controlling, organizing, and short-term planning. The famous examples of leaders who have used transac(onal technique includeMcCarthy and de Gaulle. Transac(onal leadership involves mo(va(ng and direc(ng followers primarily through appealing to their own self-interest. The power of transac(onal leaders comes from their formal authority and responsibility in the organiza(on. The main goal of the follower is to obey the instruc(ons of the leader. The style can also be men(oned as a ‘ telling style’ .If a subordinate does what is desired, a reward will follow, and if he does not go as per the wishes of the leader, a punishment will follow. Here, the exchange between leader and follower takes place to achieve rou(ne performance goal It is also known as managerial leadership. Transac(onal leader facilitate this transi(on from external to internal control by ▪ Changing^ the^ mental^ models^ of^ employees ▪ Linking^ desired^ out^ comes^ to^ values^ held^ by^ employees ▪ Building^ strong^ employee^ iden(fica(on^ with^ the^ group^ or organiza(on. The transac(onal leader tends to use the following compliances approaches like.
1. TRANSFORMATION LEADERSHIP : Transforma(onal leadership is based on leaders shieing the values beliefs and needs of the followers. We need much more of transforma(onal leadership in every sphere. it be government, business, educa(on or even non- profit organiza(ons. The basic assump(on behind this form of leadership is thatPeople will follow a person who inspires them. A person with vision and passion can achieve great things the way to get things done is by injec(ng enthusiasm and energy. Transforma(onal leadership starts with the development of vision a view of the future that will excite and convert poten(al followers.The transforma(onal leader thus takes every opportunity and will use whatever works to convince others to climb on board.This vision may be developed by the leader by the senior team or may emerge from a broad series of discussions. Transforma(onal leader are always visible and will stand up in be counted rather than hide behind their troops. They show by their a]tudes and ac(ons how everyone else should behave. They also make con(nued efforts to mo(vate and rally their followers constantly doing the rounds listening, shoo(ng and enthusing. When the behavior becomes internalized the leaders need to monitor employee. behavior is greatly reduced. Transforma(onal leadership is a style of leadership where the leader, along with his/her team, is able to iden(fy the challenges ahead, Resources available and is constantly engaging and involving the employees to perform to the best of their abili(es and grow professionally and personally in the process. The most important aspect of transforma(onal leadership is that the leader is not only bothered about his performance or deliverables
But also consciously tries to guide his subordinates and uses his experience and exper(se to give a good professional career to the subordinates. Examples of TransformaIonal Leadership Few examples of transforma(onal leaders in the world and see how they func(oned 1.Mahatma Gandhi: ➢ Mahatma Gandhi gave the Indian freedom movement a sense of direc(on and purpose. He was able to make it a truly mass movement that (ll then existed in fragmented interests and limited to either extreme elite par(cipa(on or par(cipa(on of the extreme poor. ➢ By^ preaching^ his theory^ of non^ violence,^ Gandhi^ was^ able^ to bring in each ci(zen of India into the freedom struggle and make every single person’s contribu(on count. ➢ Steve^ Jobs: ➢ Steve^ Jobs^ has^ to^ mandatorily^ be^ one^ of^ the names in the most iconic transforma(onal leaders the world has ever seen. ➢ His^ passion^ for^ perfec(on,^ simplicity^ and^ sophis(ca(on^ drove the company and he made sure that it got engraved into every employee who worked at Apple. ➢ He constantly challenged his employees to think beyond what has already been done and made them create products that the world did not even know it needed. SOME OF THE CHARACTERISTICS OF TRANSFORMATION LEADERS ➢ Courageous,^ Believe^ in^ people. ➢ Value-driven.
