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Organizational Behavior Second Midterm CLABE UNIBO, Sintesi del corso di Comportamento Organizzativo

CLABE OB second midterm. Summary of all the topics required for the second midterm exam. Chapters 7,9,10,12,13,14.

Tipologia: Sintesi del corso

2023/2024

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Ch. 7 – Culture: Naonal and Organizaonal
Culture, in the broad sense, refers to the social context within which humans live.
There are different ways to characterize naonal cultures. One, a variaon of the stereotype approach, is the use of
cultural metaphors (Germany – symphony orchestra, Italy – opera, Japan – Japanese gardens).
The Hofstede model on naonal culture
The most important model of the way culture affects organizaons and work is the Hofstede model of culture:
culture is the paerned ways of thinking, feeling, and reacng, acquired and transmied mainly by symbols,
constung the disncve achievements of human groups including their embodiments in arfacts. Culture is to
human collecvity what personality is to an individual.
The dominant values of a country are called the naonal character; the degree of homogeneity ad strength of the
dominant personality orientaons in the society is called modal personality.
The modal personality of a country can be analysed under 5 different dimensions (dimensions of naonal culture):
1. Uncertainty avoidance
The term relates to the tolerance for deviaons from accepted behavioral pracce.
Society high in uncertainty avoidance tend to prefer rules and to operate in predictable situaons, prefer
stable jobs, secure life, avoidance of conflict, have lower tolerance for deviant persons.
2. Power distance
Is the degree to which differences in power and status are accepted in a culture. E.g. French are relavely
high in power distance ( French managers tend not to interact socially with subordinates and do not
expect to negoate work assignments with them).
In low power distance countries such as the USA, powerful individuals can be forced out of their posion or
be challenged by less powerful individuals or groups.
3. Individualism – collecvism
It refers to whether individual or collecve acon is the preferred way to deal with issues.
In a collecvist society, you are expected to interact with members of your group. In an individualisc
society, there is a tendency for person to shirk when tasks are assigned to a group rather than individuals.
4. Masculinity – femininity
It refers to the degree to which values associated with stereotypes of masculinity (aggressiveness,
dominance, …) and femininity (compassion, empathy, emoonal openness, …) are emphasized.
High masculinity cultures tend to have sex differenated occupaonal structures and a stronger emphasis on
achievement, growth, etc., rather than job sasfacon, working condions, etc.
5. Long- vs short-term paerns of thought
It reflects a culture’s view about the future. In
countries with a long-term orientaon, planning
has a longer me horizon and firms are willing to
make substanal investments.
There are groups of countries that share similar modal
personalies, language, geography, religion. These are called
country clusters.
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Ch. 7 – Culture: NaƟonal and OrganizaƟonal

Culture, in the broad sense, refers to the social context within which humans live. There are different ways to characterize naƟonal cultures. One, a variaƟon of the stereotype approach, is the use of cultural metaphors (Germany – symphony orchestra, Italy – opera, Japan – Japanese gardens).

The Hofstede model on naƟonal culture

The most important model of the way culture affects organizaƟons and work is the Hofstede model of culture: culture is the paƩerned ways of thinking, feeling, and reacƟng, acquired and transmiƩed mainly by symbols, consƟtuƟng the disƟncƟve achievements of human groups including their embodiments in arƟfacts. Culture is to human collecƟvity what personality is to an individual. The dominant values of a country are called the naƟonal character; the degree of homogeneity ad strength of the dominant personality orientaƟons in the society is called modal personality. The modal personality of a country can be analysed under 5 different dimensions (dimensions of naƟonal culture):

  1. Uncertainty avoidance The term relates to the tolerance for deviaƟons from accepted behavioral pracƟce. Society high in uncertainty avoidance tend to prefer rules and to operate in predictable situaƟons, prefer stable jobs, secure life, avoidance of conflict, have lower tolerance for deviant persons.
  2. Power distance Is the degree to which differences in power and status are accepted in a culture. E.g. French are relaƟvely high in power distance ( French managers tend not to interact socially with subordinates and do not expect to negoƟate work assignments with them). In low power distance countries such as the USA, powerful individuals can be forced out of their posiƟon or be challenged by less powerful individuals or groups.
  3. Individualism – collecƟvism It refers to whether individual or collecƟve acƟon is the preferred way to deal with issues. In a collecƟvist society, you are expected to interact with members of your group. In an individualisƟc society, there is a tendency for person to shirk when tasks are assigned to a group rather than individuals.
  4. Masculinity – femininity It refers to the degree to which values associated with stereotypes of masculinity (aggressiveness, dominance, …) and femininity (compassion, empathy, emoƟonal openness, …) are emphasized. High masculinity cultures tend to have sex differenƟated occupaƟonal structures and a stronger emphasis on achievement, growth, etc., rather than job saƟsfacƟon, working condiƟons, etc.
  5. Long- vs short-term paƩerns of thought It reflects a culture’s view about the future. In countries with a long-term orientaƟon, planning has a longer Ɵme horizon and firms are willing to make substanƟal investments. There are groups of countries that share similar modal personaliƟes, language, geography, religion. These are called country clusters.

OrganizaƟonal consequences of naƟonal cultural differences

Culture affects organizaƟons and those in them under many aspects:  Managerial philosophy and culture Cultural differences will be reflected in managerial philosophies. Laurent conducted and analysis of managers from different countries (p.120)  Leadership and managerial style There are cultural differences in the reacƟons to management and leadership styles. For example, in Germany and France, leadership and control tend to be more centralized than in the Anglo-Saxon view of management (they delegate more and want to be informed only of excepƟonal events). Managers take different approaches to problem solving. American managers are more direct, Europeans will take a more strategic theoreƟcal look at problems.  OrganizaƟonal design Cultural dimensions (see page 1) might affect the organizaƟonal structure. For example, high power distance means greater acceptance of strong authority systems and more willingness to accept orders from superiors.  The effects on moƟvaƟonal strategy MoƟvaƟonal approaches that work in one culture may not work in others because of differences in values and preferences. For example, LaƟn countries, Germany and southern European countries put more emphasis on job security and fringe benefits; northern European countries on leisure Ɵme and needs of employees; English speaking countries individual achievement is more emphasized than security.  CommunicaƟon EffecƟve communicaƟon between people from different countries is difficult, also for the different meaning that they give to words.

OrganizaƟonal culture

The organizaƟonal culture is the paƩerned way of thinking, feeling, and reacƟng that exists in a specific organizaƟon. Just like countries, organizaƟons in the same society will have different organizaƟonal cultures. For the organizaƟon itself, the most direct sources of culture are organizaƟon-specific factors. The organizaƟonal culture is a direct reflecƟon of its own modal organizaƟonal personality (the degree of homogeneity and the strength of a parƟcular personality orientaƟon in that organizaƟon). It results from 4 factors:

  1. Values that people develop during socializaƟon to accommodate to the types of organizaƟons in the society.
  2. SelecƟon processes screen out many people, and organizaƟon socializaƟon changes those who join: a certain degree of homogeneity develops in every organizaƟon.
  3. Rewards reinforce some behaviors and aƫtudes and not others.
  4. PromoƟon decisions take into account also the personality of candidates. Other factors affect organizaƟonal culture, such as the industry in which the firm operates, the history of significant people in the organizaƟon, criƟcal events that become part of the folklore of the organizaƟon and are a reference point for values and beliefs of members.

 Rites They are relaƟvely elaborate, dramaƟc, planned set of acƟviƟes that consolidate various forms of cultural expressions into one event, which are carried out through social interacƟons, usually for the benefit of an audience. There are rites of passage, inducƟon rites, separaƟon rites, degradaƟon rites, enhancement rites, renewal rites, conflict-reducƟon rites, integraƟon rites.

  1. Modes of implementaƟon If you are an outsider or customer, you have no direct experience of the organizaƟonal culture; instead, you experience it through the specific modes of implementaƟon (designs for products and services, policies for customer care, the formal structure, hiring pracƟces, social responsibility of the organizaƟon, etc.). All this can be traced back to the values of the dominant coaliƟon.

The modal personality of top management and types of organizaƟonal cultures

As seen above, the modal personality of the dominant coaliƟon (their visions, beliefs and acƟons) is translated through managerial decisions into specific policies, products, and pracƟces that will be manifestaƟons of the culture. NeuroƟc managers create neuroƟc organizaƟons. NeuroƟc people exhibit extreme psychological tendencies and behaviors, leading to problems that affect them and others. Like a neuroƟc person, a neuroƟc organizaƟon is in trouble, but sƟll able to operate, and headed by execuƟves with neuroƟc tendencies. The result is a neuroƟc culture. 5 types of neuroƟc cultures:

  1. CharismaƟc cultures A charismaƟc culture is associated with a dramaƟc modal managerial personality. DramaƟc managers have feelings of grandiosity, a strong need for aƩenƟon, are exhibiƟonists, lack of self-discipline, tend to be charming but superficial. They aƩract subordinates that prefer to be directed and that believe that managers can do no wrong.
  2. Paranoid cultures It results from a suspicious modal personality orientaƟon. Suspicious managers feel persecuted by others and do not trust them and behave in guarded and secret ways towards others. They believe that subordinates are lazy, incompetent, and they feel hosƟle towards others.
  3. Depressive cultures It results from a depressive modal personality orientaƟon. A depressive person has strong needs for affecƟon and support and feel unable to act and change the course of events. The organizaƟonal results are a very passive behavior and inacƟon, low self-confidence, high anxiety, an extremely conservaƟve culture, managers seeking for jusƟficaƟons of their acƟons from others (consultants, experts, etc).
  4. BureaucraƟc cultures It is a result of a compulsive modal organizaƟon personality. Compulsive managers have high needs for control and oŌen focus on very specific but trivial details. In this culture, managers focus more on the rules than on the purpose of those rules. There are usually specific and formalized control systems to monitor the behavior of the members (oŌen resulƟng from very detailed and trivial plans of acƟon).
  5. PoliƟcized cultures PoliƟcized cultures occur in organizaƟon when the top management has a detached modal organizaƟonal personality. They have a strong sense of disengagement from others and the environment. In poliƟcized organizaƟon cultures, there is no clear direcƟon; the CEO is not strong, thus managers at lower levels try to influence the direcƟon of the firm. They are “fighƟng” for their own posiƟon with minimal concern with the success of the organizaƟon.

OrganizaƟonal subcultures

Most large organizaƟons do not have a homogeneous culture; instead, they are usually a cluster of organizaƟonal subcultures that differ from each other. Members of the organizaƟon can idenƟfy with different subcultures:

  1. Hierarchical subcultures They exist at different organizaƟonal levels and are visible in the differences in symbols, status, authority and power between managers and workers. This occurs when work at lower level doesn’t require much skills and when promoƟon to managerial levels requires competence and values congruent with those of the dominant coaliƟon. The result is a management group with homogeneous values, different from those of the workforce in general.
  2. OccupaƟonal/task subcultures They are those in which members have strong idenƟficaƟon with the others who have similar skills (even more if these skills have been developed through intensive training that require occupaƟonal socializaƟon).
  3. Culturally diverse subcultures They are those in which members idenƟfy with others with similar racial, ethnic, or gender characterisƟcs, that may differ from the dominant organizaƟon culture.

OrganizaƟonal culture: some special cases

There are some situaƟons in which the effects of organizaƟonal culture cause serious problems for the management of a firm.  ImplemenƟng a culture in a new organizaƟon In new organizaƟons, it is possible to try to shape the culture through carefully designed selecƟon processes, socializaƟons strategy, consistent use of symbols and language. However, members will then modify the values intended by managers (most of the Ɵmes a healthy culture of a high-involvement organizaƟon HIO), and the culture emerges.  Mergers and acquisiƟons Problems arise when the cultures of two firms involved in a merger are different and incongruent. E.g. a company with a rigid, hierarchy-based culture merging with one having a loose structure.  Changes in the environment Cultures change when there is a significant change in the firm’s environment to which it must adapt if it is to survive. This change is especially important in the dominant coaliƟon (high management level).  Changing in exisƟng culture It is very difficult to modify the culture of an exisƟng organizaƟon, especially when embedded management aƩempts to change it by using consultants and formal change programs (oŌen the soluƟons of the consultants don’t fit well with the modal personality of management groups).  Changing the CEO When a new CEO comes into a firm, a number of things usually happen and effect the culture. The result is a dominant coaliƟon with values more similar to those of the new CEO that will begin to be reflected in the various procedures. When the current firm performance is acceptable, internal succession is a reasonable strategy (instead of a new CEO coming from outside the organizaƟon) because the new CEO will be already accustomed to the exisƟng culture.

Most of the work done in most mechanisƟc organizaƟons is characterized by high task specializaƟon, with the problems of low intrinsic moƟvaƟon, boredom, low job saƟsfacƟon, job withdrawal. To combat these, many organizaƟons are trying to create a high-involvement organizaƟon (HIO). The HIO is an organizaƟon that promotes employee moƟvaƟon and improves effecƟveness of the organizaƟon by changing the adversarial relaƟonship between workers and managers with a cooperaƟve approach. These are 7 of the most common and important aspects of HIO:

  1. Job redesign Job redesign is aimed at increasing skill variety, task idenƟty, task significance, autonomy and feedback so that workers will have more meaningful jobs, a greater sense of responsibility and more feedback. 5 basic ways to redesign jobs: a. Combining tasks Combining them into larger tasks, to be assigned to teams if they are too large for one person. b. Forming natural work units Group tasks so that as much of the work possible is done by the same group  sense of ownership of the job. c. Establishing client relaƟonships When possible, link worker with the purchaser of the product, or find ways for the customer to give feedbacks to worker. d. VerƟcal loading Adding responsibiliƟes from higher organizaƟon levels. It gives the person more responsibility and control  increased percepƟon of job autonomy. e. Opening feedback channels Job-provided feedback occurs when the person knows how to judge performance from the job itself; management feedback comes from the supervisor or from reports (budgets, etc.)
  2. Cross training In cross training, workers learn the various skills necessary to perform the required tasks of the group. Training also becomes an instrument of worker socializaƟon.
  3. Self-directed teams Self-directed teams place even more responsibility on the individual team members, and usually have responsibility for more decisions once reserved for management. Teams are usually headed by one of the more highly skilled members, and leadership may rotate from person to person. SomeƟmes they have responsibility for controlling other members and recommend disciplinary acƟons.
  4. InnovaƟve compensaƟon pracƟces Different compensaƟon pracƟces to increase workers’ involvement: a. Gainsharing IncenƟve plans to provide bonuses to employees based on profit improvement, cost savings or producƟvity increases achieved as result of the employees’ ideas or increased work effort. “Scanlon Plan” also involves a process of workers involvement (parƟcipaƟve decision making etc) b. Skill-based pay Workers are paid for the skills they possess, not for the job on which they are working (based on the idea that a more versaƟle worker is more valuable to the organizaƟon). It increases flexibility since workers are more willing to move to different jobs as needed. c. Team-based incenƟves They have to purpose of reinforcing the concept of team. Problem of people that do not contribute equitably to team performance (“free rider”).
  1. Leaner management structure AŌer successful implementaƟon of HIO philosophy pracƟce, it is oŌen possible to eliminate at least one level of management. The lean management structure, along with the use of self-directed groups, needs managers to give up hierarchical control and act as team leaders, coaches and facilitators. Workers must believe that managers will not violate those areas in which the group has been delegated the responsibility.
  2. NontradiƟonal selecƟon and socializaƟon strategies HIOs tend to use relaƟvely “thick” screening procedures and carefully designed socializaƟon processes, to ensure that potenƟal new workers will fit into the organizaƟon’s culture. SelecƟon processes will include for example assessment of technical knowledge, skills and abiliƟes, wriƩen tests and/or performance tests. There are strong socializaƟon processes such as training or other rites of passage.
  3. TQM and re-engineering iniƟaƟves The guiding principle of total quality management is to create a system of organizaƟonal processes and values that are totally dedicated to the customer and that lead to more saƟsfying and meaningful work, to maintain a focus on conƟnuous improvement. Common TQM iniƟaƟves are recogniƟon of the importance of leadership, training and educaƟon, use of teams, close relaƟonships with suppliers (just-in-Ɵme inventory), etc. It was esƟmated that, on average, HIO firms produced very substanƟal increases in shareholder value per employee.

Managing knowledge workers

Knowledge workers may use advanced or simple technology but all must have the advanced knowledge and informaƟon to use whatever sorts of tools and equipment are required for success. 3 occupaƟonal types of knowledge workers:

  1. Professions (e.g. law, medicine, etc.)
  2. CraŌs (e.g. electricians, plumbers, etc.)
  3. Technical occupaƟons (e.g. science technicians, engineering technicians, computer technicians, etc.) Managers of knowledge workers face a number of difficulƟes, generally depending from the characterisƟcs of the workers (e.g. personality):  The professional orientaƟon of knowledge workers Many knowledge workers have the “professional work orientaƟon” (chapter 2). They have very high intrinsic work moƟvaƟon and their self-concept is linked more to the work itself. They feel under-uƟlized and their self-esteem may be threatened.  The inherent conflict between the knowledge worker and organizaƟonal authority Knowledge workers possess the technical experƟse and are usually more capable of making decisions within their sphere of competence than their managers. Yet, the manager is sƟll responsible to the higher organizaƟonal levels for the operaƟon of the unit. This is a common problem in both organic and mixed organizaƟon (that use lots of knowledge workers). This puts both manager and worker in a posiƟon of potenƟal conflict.  Role conflict and role ambiguity Ambiguity may develop because knowledge workers do not know the goals to which their acƟviƟes should be directed. In other cases, knowledge workers may not be clear about how they are evaluated.

Ch. 10 – Conflict

One of the most difficult skills of managing OB is to manage conflict. Up to a certain level conflict can also be useful and necessary.

The nature of conflict

Conflict includes disagreement, the presence of tension, or some other difficulty between two or more parƟes. It can be:  Between individuals or between groups  Public or private  Formal or informal  Approached raƟonally or irraƟonally Conflict is a dynamic process that involves several stages.

  1. Antecedent condiƟons of conflicts The condiƟons that cause or precede a conflict episode (e.g. an aggressive act). They can also be subtle (e.g. pressures on a producƟon dept. may produce frustraƟon). At this stage, conflict may remain below the surface.
  2. Perceived conflict The parƟes must become aware of a threat for the conflict to progress. People might also perceive a threat when none is there. At this stage, the parƟes tend to define the issues and start looking for ways to resolve their differences.
  3. Manifest conflict When people react to the percepƟon (e.g. threatening to do something, aggressive acƟons, slam the door, …)
  4. Conflict resoluƟon or suppression ParƟes may agree about how to solve their difficulƟes and even take steps to prevent future conflicts. Other Ɵmes, conflict is suppressed rather than resolved (when parƟes avoid strong reacƟons or try to ignore each other when they disagree).
  5. AŌermath Whether conflict is resolved or suppressed, feelings remain, varying based on the ways in which conflict is manifested or resolved. SomeƟmes food feelings and harmony results, other Ɵmes the conflict aŌermath can also result in poorer working relaƟonships. Managers who take a short-term perspecƟve on conflict without considering history oŌen fail to understand the true cause of conflict that occurs in their organizaƟon (e.g. a single incident of non-cooperaƟon is seen differently vs someone who has a long history of conflict). There are 3 different viewpoints on conflict:
  6. “Conflict is preventable” by making employees adopt a cooperaƟve aƫtude and if managers create posiƟve working relaƟonships.
  7. “Conflict is inevitable”: it is impossible to eliminate it enƟrely, for example because not all organizaƟonal goals are compaƟble and because of organizaƟonal design (it creates department, each one with its point of view).
  8. “Conflict is healthy” because it sƟmulates creaƟve approaches to resolving problems and making decisions. At opƟmum levels of conflict (moderate) there are acƟve aƩempts to improve quality and increase efficiency; tensions and frustraƟons are accepted and channelled into producƟve, rather than destrucƟve, effort.

The causes of a conflict must be understood and, if possible, changed. There are 3 major categories of causes of conflict:

  1. Difference in individual characterisƟcs Differences in individual values, beliefs and aƫtudes can be a source of conflict (union leaders will value employee welfare and company’s profit differently from managers). Also differences in needs and personaliƟes can lead to a conflict. Perceived differences in power and status are oŌen the cause of conflict in organizaƟons, as some individuals feel threatened by the power of others.
  2. SituaƟonal condiƟons The basic model of behavior (ch. 1) shows that behavior is a funcƟon of individual and environment. Conflict is more likely when people are physically close, and when they need to interact. Conflict may also be a funcƟon of whether agreements are needed between the parƟes. Also, when there is ambiguity about roles and responsibiliƟes, conflict can arise when individuals or groups posture for posiƟon.
  3. OrganizaƟonal condiƟons The classic relaƟonships between producƟon, sales, and research departments. Each one has its own responsibiliƟes and concerns. Also, “line departments” (e.g. producƟon) may feel averse to “staff departments” (e.g. human resources) since they oŌen evaluate them and impose policies and new procedures for them. Moreover, managers can disagree on some maƩers even if they are pursuing the same goals. This is even more serious if a single employee is accountable to more than one supervisor (breaking the principle of “unity of command”).

Diagnosing conflict

There are many dimensions of conflict that we should consider:  The issue in quesƟon If the issue is seen as a maƩer of principle, it will be harder to resolve. SomeƟmes saving face becomes more important than the original issue. The easiest conflicts to resolve are those that are easily divided (e.g. money), since they allow for soluƟons that can be seen as a parƟal victory for both parƟes.  The size of the stakes The bigger the stakes in the outcome, the harder the conflict to resolve. OŌen, conflicts regard budget allocaƟons. The difficulty in resolving this type of conflicts is correlated with the proporƟon of budget that is being debated.  The interdependence of parƟes In zero-sum interdependence, a gain by one side means a loss by the other side. These conflicts are more difficult to resolve than where there is posiƟve-sum interdependence (where the situaƟon can lead to gains for both sides).  The conƟnuity of the interacƟon When negoƟaƟons are between parƟes that have no previous - and plan for future – relaƟonships, they are likely to be more difficult. Conflict will be easier to resolve if both parƟes have an interest in protecƟng the long-term relaƟonship.  The leadership of conflicƟng parƟes When there is a clear leader who has the authority to negoƟate and make decisions, conflict should be easier to resolve than when there is a lack of clear leader.  The involvement of third parƟes Using third parƟes (mediators or arbitrators) increases the ease of negoƟaƟng a resoluƟon to the conflict, since they may be able to see potenƟal compromises that hadn’t been considered.  The perceived progress of the conflict When parƟes believe that both sides are compromising and giving up something of value, conflict is easier to resolve (vs when one party feels that they have suffered more harm than the other).

Improving organizaƟonal response to conflict

The organizaƟonal context is oŌen a cause of conflict that managers must deal with.

  1. Set superordinate goals to draw units into collaboraƟve efforts. These would be goals that benefit individual sub-units and are strongly linked to overall organizaƟonal effecƟveness.
  2. Reduce ambiguiƟes and jurisdicƟonal disputes. Good job descripƟons and clear, non-conflicƟng goals clarify responsibiliƟes and reduce interferences in the work of the others.
  3. Improve policies, procedures and rules. The organizaƟon should have policies regarding situaƟons around which conflicts tend to frequently arise.
  4. Reallocate or add resources to reduce conflicts around resource-sharing, personnel assignments and schedules.
  5. Modify communicaƟons and reduce them when unnecessary and they create conflicts.
  6. Rotate personnel through different departments to let them develop a fuller understanding of each unit’s responsibiliƟes and problems.
  7. Change reward systems. The way rewards are administered may increase or decrease the chances of conflict emerging.
  8. Provide training in which employees learn to prevent, anƟcipate, and cope with conflict.

Ch. 12 – Power and PoliƟcs in OrganizaƟons

A model of influence processes in organizaƟons

Influence aƩempts occur when legiƟmate authority or power is used. Influence is a process through which you aƩempt to extract compliance with your intenƟons from other. For influence to exist, A and B must be in an interacƟve and dependent relaƟonship. Influence occurs when A induces B to respond in an intended way. There may be different reasons (basis) for dependence:  Commitment (for managers: do not mistake compliance for commitment)  Forced involvement (as when a person is put in a jail or mental insƟtuƟon. The person wants to escape from the relaƟonship, that is usually maintained with force)  CalculaƟve involvement (both parƟes assess the economic costs and benefits of maintaining the relaƟonship) The strength of influence one party has over another is a funcƟon of the need to maintain the relaƟonship (when someone can escape from the relaƟonship, the other has less strength of influence) and of power asymmetry (when one party is more dependent upon the other). The bases for influence in organizaƟons are:

  1. Psychological contract It is the basis for the disƟncƟon between legiƟmate authority and power. It is the mutual set of expectaƟons that exist between you and the organizaƟon. As long as requests, commands and direcƟves fall withing the boundaries of the psychological contract, you will comply. 2 types of boundaries: a. Public boundary (includes those acƟviƟes that you want others to believe are the elements of the psychological contract) b. Real boundary (represents the “true” limits of the psychological contract. A CEO being involved with a poliƟcal party is outside the public boundary but within the real boundaries; obviously the CEO wants the board to believe the psychological contract is constrained by the public boundaries) These boundaries are not staƟc. SomeƟmes they change by mutual consent (e.g. job changes due to a promoƟon), someƟmes through the use of power exercised by another person.
  2. LegiƟmate authority We define all those requests from a superior that fall within the real boundary of the psychological contract and are accepted by the subordinate as legiƟmate authority. It is the right of decision and command that a person has over others. It is sancƟoned or approved by those in the organizaƟon. LegiƟmate authority is reflected in the organizaƟon’s structure (higher-level posiƟon will have more legiƟmate authority than those at lower levels) and organizaƟon’s culture (e.g. aƩribuƟng different status symbols to different authority levels). It is accepted by people for different reasons: a. Culture (each naƟonal culture has a different concept regarding the limits of legiƟmate authority) b. OrganizaƟonal socializaƟon (it transmits the culture of the organizaƟon when you join it) c. OrganizaƟonal orientaƟon (an organizaƟonalist person has no problems with receiving direcƟves)
  3. Power Power is used to extract compliance to requests that fall outside the real boundary, and someƟmes it is used for direcƟves that fall between the real and public boundaries. The use of power distorts the boundaries of the psychological contract, even though it may take considerable pressure. The use of power in an organizaƟon is called organizaƟonal poliƟcs. Power can be used to achieve objecƟves that are good for the firm or to achieve the ends desired by the poliƟcal actor.
  1. Workflow centrality Units with high workflow centrality not only are interconnected with many others, but also the speed and intensity with which the work is performed there affects the results of other departments (“workflow immediacy”). If you want to have legiƟmate authority, it is necessary to have  Competence  Self confidence  An organizaƟonal orientaƟon  Power needs To acquire reward and punishment power (that are extensions of legiƟmate authority), the person must have a poliƟcal orientaƟon (willingness or aƩempt to exert influence beyond legiƟmate authority). People with a poliƟcal orientaƟon have these tendencies:  Machiavellianism  Strong personalized power moƟves  CogniƟve complexity  ArƟculaƟon skills

Acquiring and maintaining personal-based influence

RepeƟƟve paragraphs.

OrganizaƟonal poliƟcs

OrganizaƟonal poliƟcs refers to the intenƟonal behaviors of individuals or groups with the goal of protecƟng their own self-interests. The space between raƟonality and ambiguity is where poliƟcs takes place. The percepƟon of high poliƟcal acƟvity can be associated with greater stress, lower organizaƟonal commitment and higher absenteeism. EffecƟve managers should be skilled at poliƟcal behaviors in the enactment of their duƟes. OrganizaƟonal poliƟcs are likely to occur in situaƟons where social and tasks condiƟons are ambiguous. The most common poliƟcal tacƟcs used in organizaƟons are:

  1. Impression management PoliƟcal behaviors that have the purpose of altering and maintaining a person’s image. Ways to insƟll a posiƟve impression of yourself include acƟviƟes to increase our visibility such as aƩending important meeƟngs, volunteering for extra assignment, always be the first to arrive at work, etc. Some individuals intenƟonally try to look bad by reducing performance, displaying a bad aƫtude, etc. in order to avoid responsibiliƟes or to be rewarded (e.g. by simulaƟng the fact that you are overworked).
  2. Blaming or aƩacking others the act of blaming others for your own personal failures or aƩacking others by aƩempƟng to minimize their accomplishments. This behavior is, in some measure, part of human nature (self-serving bias), but it can also be used poliƟcally.
  3. Control of informaƟon Managers who secure access to important informaƟon and who then disseminate that informaƟon carefully can enhance their ability to influence others.
  4. CoaliƟon-building Finding other individuals who have similar beliefs or interests and joining forces with them to increase the power of the group and influence organizaƟonal acƟviƟes.
  5. Networking Developing relaƟonships with others both internal to the organizaƟon and externally.

Ch. 13 – Leadership

Leadership is a from of organizaƟonally based problem-solving that aƩempts to achieve organizaƟonal goals by influencing the acƟon of others. In this chapter we focus on individuals in organizaƟonal posiƟons with legiƟmate authority.

Trait approaches to leadership

Trait theories of leadership are based on the common idea that personaliƟes of effecƟve leadership are different from those of non-leaders. They focus on what a leader is. However, studies couldn’t find specific traits correlated with leadership in all the different situaƟons examined, because a) The person not only should have a specific trait, but should also want the job b) Studies have been done in too many different situaƟons c) The trait researched tended to focus on very specific traits instead of more general factors If the traits were grouped into general classes of factors, the following characterisƟcs of an effecƟve leader would have emerged:

  1. High energy and stress tolerance
  2. Self-confidence
  3. Internal locus of control
  4. EmoƟonal stability and maturity
  5. Personal integrity
  6. Socialized power moƟvaƟon
  7. Moderate achievement moƟvaƟon
  8. Low need for affiliaƟon

Behavioral approaches to leadership

Behavioral approaches to leadership examine how what a leader does is related to leader effecƟveness. We examine 2 classes of behavior:  Decision influence behaviors (distribuƟon of decision-making influence) Many studies have been conducted on how the distribuƟon of decision-making influence (between superiors and subordinates) is related to the performance and saƟsfacƟon of individuals and work groups. Leaders were described in 3 ways:

  1. AutocraƟc leadership The leader makes all decisions and allows the subordinates no influence in decision-making process
  2. ParƟcipaƟve leadership The leader consults with subordinates on appropriate maƩers and allows them some influence in the decision-making process. This leadership style is not puniƟve and trats subordinates with dignity.
  3. Laissez-fair leadership Supervisors allow their group to have complete autonomy; subordinates set their own goals with no managerial inputs and work toward them with no direcƟon. EffecƟve groups have had autocraƟc leaders and parƟcipaƟve leaders. ParƟcipaƟve leadership is associated with higher levels of subordinate saƟsfacƟon, organizaƟon idenƟficaƟon and lower resistance to change, even beƩer than those of laissez-fair leadership.  Task and social behaviors 2 important studies focused on whether effecƟve leaders emphasize task acƟviƟes and assignments or tend to concentrate on trying to keep good relaƟonships and cohesion among group members, or do both of these things.
  1. The path-goal theory It links behavior to performance using the expectancy theory of moƟvaƟon: to achieve desired organizaƟonal results, certain tasks must be performed; the results are the goal, the tasks are the path. When goals are achieved, rewards for the individual should follow. The role of the leader is to ensure that the path to the goals is clearly understood and that there are no barriers to the achievement of the goal. 4 different styles of leader behavior which affect outcomes and reward: a) DirecƟve leadership (leader gives guidance and direcƟon about job requirements) b) SupporƟve leadership (leader is friendly and approachable, concerned with needs of subordinates) c) ParƟcipaƟve leadership (leader asks advices from subordinates about problems and considers them) d) Achievement-oriented leadership (leader sets challenging goals for their work groups) Which is the best one depends on the characterisƟcs of the situaƟon. If there is high level of task certainty, then supporƟve is the best (direcƟve could increase producƟvity because of pressure, but it would lead to job dissaƟsfacƟon. When there is high uncertainty about the task or the goal, the leader must clarify the path. In that case, direcƟve is the best style.
  2. The Vroom-YeƩon model (see ch. 11 1st^ midterm)

Process theories of leadership

Process theories explain the processes by which a relaƟonship develops between leaders and subordinates.

  1. TransformaƟonal leadership theory It explains how leaders develop and enhance the commitment of followers. In this approach, transformaƟonal leaders are contrasted with transacƟonal leaders. a) TransacƟonal leadership. The leader and subordinate are bargaining agents, negoƟaƟng to maximize their own posiƟon. Subordinate’s moƟvaƟon to comply with the leader is self-interest (mainly economic). TransacƟonal leaders use conƟngent rewards, manage “by excepƟon” (when performance is likely to deviate from standards), take a hands-off approach (also avoiding responsibility). b) TransformaƟonal leadership. It’s based on the leader’s effect on the followers’ values, self-esteem and trust, and on their confidence in the leader moƟvaƟon to perform above and beyond the call of duty. While transacƟonal leadership works within the context of the follower’s self-interest, transformaƟonal leadership seeks to change that context via the leader’s ability to influence people. it has been demonstrated to result in higher performance, member saƟsfacƟon and higher commitment. Some studies say that it is possible to develop a charismaƟc style through training.
  2. VerƟcal dyad linkage (VDL) theory It focuses on the relaƟonship between the leader and the subordinate, that are members of a verƟcal dyadic relaƟonship, in an organizaƟon. Managers and subordinates negoƟate these role relaƟonships through formal and informal processes primarily during the early stages of their relaƟonship. This results in different relaƟonships with different subordinates. 2 categories of leader-member relaƟonship: a) In-group relaƟonships (close relaƟonship, leader spends more Ɵme in subordinates; it is not been related to subordinates’ performance but it posiƟvely affects subordinate behaviors and percepƟons and also the nature of the relaƟonship is an important predictor of subordinate advancement). b) Out-group relaƟonships (subordinates spend less Ɵme on decision-making, do not volunteer for extra assignments and are rated lower).

SubsƟtutes for leadership

Not only the behavior of the leader, but also some other factors can be crucial to performance. In fact, some factors can server as leadership subsƟtutes because they, not the acƟon of the leader, contribute to success or failure. There are 3 types of leadership subsƟtutes: the subordinate characterisƟcs, the task factors, the organizaƟonal dimensions.

Ch. 14 – OrganizaƟonal Change

Dealing with change is a complex and stressful process. This chapter focuses on the changing nature of work.

How our work life is changing

Significant change has become a common occurrence in the modern workplace. Here are some specific factors that are driving change in the workplace.

  1. Changes in the work itself Increases in IT and a shiŌ from physical acƟviƟes to intellectual acƟviƟes have changed the work tasks of workers. Also, “virtual offices” have changed the structure of workplaces.
  2. OrganizaƟons are changing structurally Downsizing, rightsizing, mergers, and acquisiƟon are always more common. These acƟons have a large effect on the number of employees, the style of managing and employee commitment. Severe compromises and adjustments are oŌen required.
  3. ShiŌs to a global economy Many companies have an increased need for employees to work in foreign countries as expatriates. This requires employees to cope with extremely different cultures. Moreover, global compeƟƟveness has caused organizaƟons to constantly find ways to increase their compeƟƟveness, changes which lead to subsequent changes in the work processes and procedures.
  4. Increased diversity in the workforce The increased diversity within the workforce has been a change that has provided challenges for may individuals and organizaƟons.

Stages of successful change

A useful model for understanding change is the biological perspecƟve ( organisms adapt to pressures in their environment). In many cases there are opposing forces that affect the organism and so it simultaneously adapts to numerous powerful opposing forces. This leads to an equilibrium that allows the organism to conƟnue to exist. To effect change in the organizaƟon 3 things must occur:

  1. Unfreezing: it is required a change is the status quo before there can be a change to a new condiƟon. Only aŌer this change in condiƟon, members are willing to try new ways of doing their work. At this stage pros and cons of changing vs those of not changing should be evaluated.
  2. TransformaƟon: it is the movement that must occur for the organism to change. It is important to use an appropriate change method.
  3. Refreezing: the change is made permanent and becomes the new equilibrium point. New behaviors, working relaƟonships, procedure, etc. must result in rewarding posiƟve, not negaƟve, outcomes, otherwise people will revert to previous condiƟons or look for new ones.

Resistance to change

There is usually some resistance to change in organizaƟons. It may be traced to individual, group, or organizaƟonal characterisƟcs. There is a general fear of the unknown and a preference for the known appeared to be operaƟng. The organizaƟonal structure, culture and power structure help to maintain stable behavior paƩerns. They are self- reinforcing and thus, potenƟally significant barriers to change. Change efforts will not work unless they are compaƟble with the organizaƟonal culture and the power structure. For a change to be effecƟve, it must consider the interdependencies that exist, since they may interfere with effecƟve change (a change aƩempted in one area may be resisted by other parts of the system). Task changes, technological changes, and structural rearrangements oŌen affect each other.