ESCP-EAP European Executive MBA ORGANIZATIONAL BEHAVIOR.

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ESCP-EAPEuropean Executive MBA

ORGANIZATIONAL BEHAVIOR

WHO AM I ?

Philippe Gabilliet Ph.D., 47 y.o.

Associate Professor & Dean of ESCP-EAP ’s European Executive MBA and Full-time Executive MBA

22 years experience in Coaching, Consulting business, Management and Executive education

Behavioral dynamics, Motivation,Influence, Leadership, Cross-cultural issues

Research topics :– Leadership development dynamics

– Transfer of management practices in emerging countries

THE MBA SECRET PATH :

fromprofessional effectiveness

tomanagerial success...

EFFECTIVE MANAGERS SKILLS (Katz)

TECHNICAL– Specialized knowledge and expertise

CONCEPTUAL– Mental ability to analyse and diagnose complex situations

HUMAN AND RELATIONSHIPS– Ability to work with, understand and motivate people.

– Many managers appears to be technically and conceptually proficient but interpersonnaly incompetent

EFFECTIVE or SUCCESSFUL ?

EFFECTIVENESS– Quantity / quality of performance and

satisfaction / commitment of employees

SUCCESS– Speed of promotion within an organization /

carreer dynamics

Do managers who move up most quickly in organizations do the same activities with the same emphasis as managers who do the best job ?

Introduction to

Organizational Behavior

FIRST THINGS FIRST…

. What is an Organisation ?

. What is a Behavior ?

. What is Organizational Behavior ?

WHAT IS AN ORGANIZATION ?The Academic Vision

A structured and coordinated social system consisting of a collection of people who work together to achieve both individual and organizational goals or set of goals…

WHAT IS AN ORGANIZATION ?The Academic Vision

A structured and coordinated social system consisting of a collection of people who work together to achieve both individual and organizational goals or set of goals…

So What ?

WHAT IS AN ORGANIZATION ?

It is not a STRUCTURE…

Organization is mainly what people are DOING.

Organization is like an ICEBERG.

Organization is like a STAGE.

THE ORGANIZATIONAL ICEBERG

VISIBLE ASPECTSStrategiesObjectives

Policies & ProceduresStructure

TechnologyFormal authority

Chain of command

THE ORGANIZATIONAL ICEBERG

VISIBLE ASPECTSStrategiesObjectives

Policies & ProceduresStructure

TechnologyFormal authority

Chain of command

HIDDEN ASPECTSAttitudes

PerceptionsGroup norms

Informal interactionsGrapevine, rumors

Influence processesPolitical dynamics

Interpersonal and Intergroup conflicts

The Organizational Stage

MANAGER

N = N x

WHAT IS BEHAVIOR ?

The Behavioral Iceberg (once again !)

The Person and the Context

Behaving = Interacting

Only actors can behave…

THE BEHAVIORAL ICEBERG

BEHAVIORS

ATTITUDES

MOODS,FEELINGS, EMOTIONS

PERCEPTIONS, ASSUMPTIONS

MOTIVATIONS, EXPECTATIONS, DESIRES

BELIEFS

ReasonLogicObvious

UnconsciousPsychologicalLatent

BEHAVIORAL GROUNDS

THE PERSONIdentity, values,

traits, personality...

BEHAVIORAL GROUNDS

WHAT IS PERSONALITY ?

1°) Dynamic concept describing the growth and development of person ’s whole psychological system.

2°) The unique and relatively stable pattern of behaviour, thoughts and emotions shown by individuals.

MAJOR PERSONALITY ATTRIBUTES INFLUENCING BEHAVIOR

LOCUS OF CONTROL

– Internals vs. Externals

MACHIAVELIANISM

– High Machs vs. Low Machs

SELF ESTEEM

– High SEs vs. Low SEs

SELF MONITORING

– Adaptability vs. Consistency

RISK TAKING

– Assuming vs. Avoiding

PROACTIVITY

– Anticipating vs. Reacting

WHAT IS PERSONALITY ?

1°) Dynamic concept describing the growth and development of person ’s whole psychological system.

2°) The unique and relatively stable pattern of behaviour, thoughts and emotions shown by individuals.

3°) Sum total of ways in which an individual interacts with oneself, others and his/her environment.

BEHAVIORAL GROUNDS

OTHERSRelationships,

contacts,interactions...

BEHAVIORAL GROUNDS

OTHERSRelationships,

contacts,interactions...

ENVIRONMENTS Physical, social, professional...

BEHAVIORAL GROUNDS

THE CONTEXT

Others Environment

WHAT IS ORGANIZATIONAL BEHAVIOR ?

Study of factors that affect how indivuals and groups act in an organization and how that behavior affects the performance of the organization…

Study of the impact that individuals, groups and structures have on behavior within organization...

… IN ORDER TO HELP IMPROVE ORGANIZATION PERFORMANCE AND EFFECTIVENESS.

OB QUIZZ...

True / False

Employees who are satisfied with one job tends to be satisfied with other jobs, too.1

Because « two heads are better than one », groups make better decisions than individuals.

The real charismatic leaders act the same, regardless of the situation they face

Specific goals make people nervous ; employees work better (on average) when asked to do their best.

Employees get bored easily, leading them to welcome organizational change

Financial incentives are still the best motivators

Employees generally shy away from challenges on the job

THE OB MODEL

THE DEPENDENT VARIABLES– Productivity– Job satisfaction– Efforts, Involvement– Absenteeism, turnover, etc.

THE INDEPENDENT VARIABLES– Individual level variables– Group level variables– Contextual variables (organization & environment)

THE OB DYNAMICS

CONTEXT(organization and environment

(structure and culture)

INDIVIDUAL

(traits and strategies)

OB, WHAT FOR ?

UNDERSTANDING

PREDICTING

INFLUENCING

PRACTICE THE « OB » ATTITUDE

Think in terms of beliefs, feelings and desires

Think in terms of context Never forget that symptom comes first Contrast « why » and « what for » Always search opportunities for action

(WCID-WTM)

6 SESSIONS -> 6 TOPICS

1. UNDERSTANDING MANAGERIAL ROLES (Ph. Gabilliet)

2. MOTIVATION AND INVOLVEMENT (Ph. Gabilliet)

3. CROSS-CULTURAL COMMUNICATION (K. Balazs)

4. LEADERSHIP (K. Balazs)

5. ORGANIZATIONAL CULTURE (K. Balazs)

6. POWER AND POLITICS (Ph. Gabilliet)

SESSION 1

From Managerial Position

toManager ’s Roles.

WHAT IS MANAGEMENT ?

Making decisions, allocating resources and directing the activities of others in order to attain individual and collective goals.

« Getting things done and results achieved through other people… »

THE MANAGERIAL ACTION MODEL

SITUATION contingencies. Environment. Organization

. Stakes. Opportunities & risks

GROUP dynamics . Skills

. Commitment. Demands

. Expectations. Perceptions

MANAGER as a person

. Motivation. Capabilities. Personality. Behaviors

SPECIALIST

MANAGER

EXECUTIVE

A triple change process Identity

Perceptions

Priorities

MANAGERIAL « COATS »

MANAGERIAL ROLES

MANAGER : any person who supervises directly or undirectly one or more other ’s work within a mission, an objective or a project.

ROLE : set of behaviors or tasks a person is expected to perform because of the position he / she holds in a group or organization

The Managerial Stage

MANAGER

N = N x

BASIC FUNCTIONS OF MANAGEMENT.

PLANNING

ORGANIZING

LEADING

CONTROLLING

THE MANAGER ’S ROLES : The Mintzberg ’s Model

Interpersonal roles

FigureheadLiaisonLeader

Informational roles

MonitorDisseminator

Spokesperson

Decisional rolesEntrepreneur

Disturbance handlerResource allocator

Negotiator

FORMAL AUTHORITY

& STATUS

INTERPERSONAL ROLES

FIGUREHEAD– Performing symbolic duties of a legal and social nature.

LIAISON– Establishing and maintaining a web of relationships with

individuals and groups outside of one ’s organizational unit.

LEADER– Providing guidance, checking motivation, creating favorable

conditions for doing the work

INFORMATIONAL ROLES

MONITOR– Seeking informations from a variety of sources in order to

discover problems / opportunities an develop an understanding of outside events and internal processes

DISSEMINATOR– Transmitting informations to subordinates, in its original form

or after interpretation and added value.

SPOKESMAN– Transmitting information and expressing value statement to

people outside one ’s organization.

DECISION-MAKING ROLES

ENTREPRENEUR– Acting as an initiator and designer of controlled change to exploit

opportunities for improving the existing situation.

DISTURBANCE HANDLER– Dealing with sudden crisis that cannot be ignored (unforeseen

events, conflict, loss of key subordinate, accident, etc.).

RESOURCE ALLOCATOR– Exercizing authority to allocate resources such as money,

personal, material, equipments, facilities and services.

NEGOTIATOR– Dealing with negotiation situations requiring a substantial level of

authority and commitment.

SESSION 2

From Motivation

toOrganizational Commitment

THE BEHAVIORAL ICEBERG

BEHAVIORS

ATTITUDES

MOODS,FEELINGS, EMOTIONS

PERCEPTIONS, ASSUMPTIONS

MOTIVATIONS, EXPECTATIONS, DESIRES

BELIEFS

ReasonLogicObvious

UnconsciousPsychologicalLatent

WHAT IS MOTIVATION ?

The process that determine intensity, direction and persistence of a person ’s behavior toward the attainment of a goal

– INTENSITY is concerned with effort, with how hard a person tries.

– DIRECTION is concerned with the choice of behavior made and orientation of efforts

– PERSISTENCE deals with how long a person can maintain efforts in situation of obstacles, frustration or faillure

TO BE « MOTIVATED »• Personality trait• Inner state, intrinsic dynamics• Mood, feeling

« MOTIVATING » OTHER PEOPLE :• Behavioral know-how

• Ability to interact with others by giving energy, enthusiasm, meaning

MOTIVATIONThe two-faces process

1. I feel motivated when...

2. I motivate others when….

WHAT ABOUT YOU ?

MOTIVATIONAL GROUNDS

Personal characteristics

THE CONTEXT

Relations with others

THE CONTEXT

Relations with others

Environment opportunities

and constraints

MOTIVATION : a complex dynamics

People may be motivated by many things

Motivation is not synonymous of performance

PERFORMANCE FACTORS

Motivation

Skills & competencies

PERFORMANCE FACTORS

Motivation

The Context variables

PERFORMANCE FACTORS

Motivation

Environmentvariables

Managementsystem

MOTIVATION : a complex dynamics

People may be motivated by many things

Motivation is not synonymous of performance

Motivation may be a key determinant in job commitment and organizational involvement

Motivation cannot be created but it can be influenced and maintained by the management

PHYSIOLOGICAL

SECURITY

BELONGING

ACTUALIZATION

ESTEEM

HIERARCHY OF NEEDS(A. Maslow)

CONTINUUM OF NEEDS(Alderfer, 1972)

Existence needs(basic requirements)

Relatedness needs(social status)

Growth needs(personal ambitions)

The opposite of satisfaction is not dissatisfaction : removing dissatisfying characteristics from a job

does not necessarily make the job satisfying

SATISFACTION

DISSATISFACTION

Lack of satisfaction

Lack ofdissatisfaction

TWO-FACTORS THEORY(Herzberg, 1959)

TWO PRINCIPLES– INTRINSIC factors (motivators) are related to job

satisfaction. – EXTRINSIC (hygiene) factors are associated with

dissatisfaction

TWO MAIN IMPLICATIONS– Manager ’s priority is to prevent dissatisfaction by

assessing and neutralizing dissatisfying extrinsic / hygiene factors (dissatisfiers).

– BUT to really motivate people, manager must emphasize factors intrisically rewarding, those associated to work itself or to outcomes directly derived from it (satisfiers).

CONTRIBUTIONS. Efforts

. Time

. Experience, expertises

. Commitment

. Maturity

. « Sacrifices », etc.

RETRIBUTIONS. Money

. Recognition

. Job interest

. Training

. Professional evolution

. Career opportunities, etc.

EQUITY THEORY(Adams, 1965)

Key concept : MENTAL ACCOUNTING

Individuals always compare their jobs inputs and outcomes with others ’.

EXPECTANCY THEORY

INDIVIDUALEFFORT

INDIVIDUALPERFORMANCE

ORGANIZATIONALREWARDS1 2

PERSONAL GOALS

1. Effort -> performance relationship

2. Performance -> rewards relationship

1. Rewards -> personal goals relationship

VALENCEDoes the reward worth the effort ?

EXPECTANCY

Does my effort lead to performance ?

INSTRUMENTALITY

Does the performance lead to outcome, reward, etc.

MOTIVATION

M = V x I x E

EXPECTANCY THEORY(V. Vroom, 1964)

GOAL-SETTING THEORY(Locke, 1968)

THREE PRINCIPLES– SPECIFIC goals produce a higher level of output than do

the generalized goals.– The more DIFFICULT the goal, the higher the level of

average performance.– People succed better when they get FEED-BACK on how

well they are progressing towards their goals

FOUR FACTORS– Goal commitment– Adequate self-efficacy– Task characteristics– National culture

1 - SKILL VARIETY

2 - TASK IDENTITY

3 - TASK SIGNIFICANCE

4 - AUTONOMY

5 - FEED-BACK

JOB CHARACTERISTICS MODELBasic Elements

JOB CHARACTERISTICS MODELThe Dynamics

Core Job Dimension

Critical Psychological

States

Personal and Work Outcomes

. Skill variety

. Task identity

. Task significance

. Autonomy

. Feed-back

. Experienced meaningfulness of the work

. Experienced responsibility for outcomes of the work

. Knowledge of the actual results of the work activities

. High internal work motivation

. High quality work performance

. High satisfaction with the work

. Low absenteeism and turnover.

V as VARIETY

A as AUTONOMY

R as RESPONSABILITY

I as INFORMATION

F as FEED-BACK

VARIF Job Enrichment Model

The manager ’s view :

« I need highly motivated people» he/she is expecting more INVOLVEMENT

The subordinate ’s view :

« I need a highly motivating management » he/she is expecting more SATISFACTION

MOTIVATIONAL PARADOX

1 - JOB SATISFACTION

• refers to an individual ’s general atttiude toward his / her job..

2 - JOB INVOLVEMENT

• degree to which a person identifies with his/her job, actively participates in it and considers performance as an important factor for self-worth.

THREE ATTITUDESWhat is what ?

3 - ORGANIZATIONAL COMMITMENT

• degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in it.

1 - CONTINUANCE COMMITMENT

• strength of a person ’s desire to remain working for an organization due to belief that it may be costly to leave.

2 - AFFECTIVE COMMITMENT

• strength of people desires to continue working for an organization because they agree its underlying goals and values.

ORGANIZATIONAL COMMITMENTThe three-faces

3 - NORMATIVE COMMITMENT

• employee ’s feeling of obligation to stay with the organization because of pressures from others.

SATISFACTION ++

INVOLVEMENT - -

INVOLVEMENT ++

SATISFACTION - -

SATISFACTION / INVOLVEMENT

SATISFACTION ++

INVOLVEMENT - -

INVOLVEMENT ++

SATISFACTION - -

SATISFACTION / INVOLVEMENT

Fat bellies

Deadwood Rebels

Core stars

ACTIVE

DESTRUCTIVE

CONSTRUCTIVE

PASSIVE

FACING JOB DISSATISFACTION

ACTIVE

DESTRUCTIVE

CONSTRUCTIVE

PASSIVE

FACING JOB DISSATISFACTION

NEGLECT LOYALTY

INCENTIVE

INVOLVEMENT

SATISFACTION

ACTION OUTCOMES

MOTIVATION

MOTIVATIONAL PROCESS

MOTIVATING OTHERSThe check-list

Understanding individual needs

Making the job fit

Inspiring people to do better

Maintaining performance

Generating enthusiasm

ESCP-EAP European Executive MBA ORGANIZATIONAL BEHAVIOR.

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