Organizational Behavior & Structure

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Group

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A collection of two or more individuals who share normsand goals and have a common identity.

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Forming

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Stage 1 of 5 in Tuckman's model of groupdevelopment. Members get to know each other and the task.

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Storming

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Stage 2 of 5 in Tuckman's model of group development. Members test the limits of the leader and others, as wellas their own power and influence.

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Norming

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Stage 3 of 5 in Tuckman's model of group development. Group norms, procedures, and goals are established,and individual roles are defined.

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Performing

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Stage 4 of 5 in Tuckman's model of group development. The group has moved on from definitions to solvingproblems and achieving goals.

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Adjourning

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Last stage in Tuckman's model of group development. The group completes its tasks and disbands.

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Role

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A set of expected behaviors for a given position.

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Task roles

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Roles that enable the group to define and pursue common goals(e.g., initiator, coordinator, and recorder).

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Initiator

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Task role that suggests new goalsor ideas

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Coordinator

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Task role that pulls together ideasand suggestions

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Recorder

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Task role that reports discussionsand results

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Harmonizer

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Task role that mediates conflictamong members

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Gatekeeper

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Task role that monitors andencouragesparticipation

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Maintenance roles

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Roles like the harmonizer and gatekeeper, fosterconstructive interpersonal relationships.

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Role ambiguity

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Uncertainty about the expectations, behaviors,and consequences associated with a specific role.

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Role conflict

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When group members feel that they are responsiblefor multiple incompatible roles.

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Role overload

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When a group member’s role becomes toodemanding.

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Norms

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Shared attitudes that guide behavior across situations,such as cleaning the office coffee machine after use or bringing abriefcase to work.

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Asch effect

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A threat to group effectiveness. When people go along with a group's opinionregardless of what they think as individuals.

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Groupthink

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An unwillingness to critically evaluate alternatives toideas the group favors in order to preserve harmony. A threat to group effectiveness.

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Social loafing

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The tendency for people to exert less effort whenthey are in a group. A threat to group effectiveness. Social loafing is one reason groupsare sometimes less productivethan the combined performance oftheir members working asindividuals.

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Team

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A special type of group, in which members hold themselvesmutually accountable for a common purpose, goals, and approach.

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Three types of team tasks

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Production Tasks, Idea-generation tasks & Problem-solving tasks

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DistinguishingCharacteristics of Teams

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High Cohesiveness

Shared rewards

Interdependence

Collective work products

Shared, participatory leadership

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Production tasks

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Tasks that involve making something, such as a building,product, or marketing plan.

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Idea-generation tasks

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Tasks that include brainstorming a new direction orcreating a new process.

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Problem-solving tasks

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Tasks that require coming up with action plans andmaking decisions.

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Task interdependence

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The mutual dependence betweenindividuals carrying out a task. There are three levels: Pooled, Sequential & Reciprocal Interdependence.

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Pooled interdependence:

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The lowest level of interdependenceoccurs when members make separate contributions to acommon output.

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Sequential interdependence

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When the output of one memberbecomes the input of another.

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Reciprocal interdependence

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The highest level ofinterdependence is when members work together on inputs.

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Advice team

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Created to make proposals or recommendations formanagerial decisions.

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Production team

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Performs day-to-day operations and providesproducts or service (e.g., car assembly or customer service team).

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Project team

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Devoted to creative problem-solving usingspecialized knowledge.

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Action Team

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Highly specialized to carry out specific actions ondemand.

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Self-managed teams

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Team in which members plan and manage their day-to-day activities without direct supervision.

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Virtual team

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A team that, on account of geographic separation,convenes online. They can be flexible and efficient, but may alsoface difficulties in fostering social bonding and trust.

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Boundary-spanning roles

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Roles that connect the team to thelarger organization.

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Four Components of Effective Teamwork

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1- Cohesiveness

2- Cooperation

3- Communication

4- Trust

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Cohesiveness - 2 types

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A feeling that binds team members to each other—improves performance. 2 types:

1- Socio-emotional cohesiveness: Based on emotional satisfaction. Members stick together because they enjoy each others' company.

2- Instrumental cohesiveness: A sense of togetherness based on mutual dependency needed to get the job done.

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Value of interactions ranked

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1- face to face

2- phone or videoconference

3- email or texting

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Cooperation

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Team members should work together, rather thanagainst each other, to achieve common goals. Cooperation issuperior to competition and individual efforts in promotingproductivity.

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Communication

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According to recent research, this is the mostimportant predictor of a team's success. What matters specificallyis how team members communicate, rather than what theycommunicate.

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Most productive teams- communication

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Members have the most valuable interactions outside formalmeetings.Each member communicates to the same extent with all othermembers.

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Trust

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Reciprocal faith in others' intentions and behaviors. Whenyou're on a successful team, you trust that the other members willwork as hard as you do.

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Ways to Build & Maintain Trust

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Communication- inform others about progress and problems

Support- provide advice for others' ideas

Respect- include others in decision-making

Fairness- provide objective and impartial reviewsPredictability-keep expressed & implied promises

Competence- show good business sense, be professional

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Organizational structure

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Specifies how roles andresponsibilities are coordinated within a company: which employees work with eachother, who reports to whom, and how.

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Departmentalization

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determines how an organization groups itsemployees together. There are two main ways organizations canarrange their departments:

Functional structure & Divisional structure

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Functional structure

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Activities are grouped by specialized skills(e.g., customer service department).

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Divisional structure

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Departments are organized by customerregion, specific services, or unique products (e.g., car vs. truckdivisions).

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Standard Operating Procedure (SOP)

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Step-by-step instructionsfor how tasks are done.

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Formalization

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The extent to which employees are governed byrules and regulations.

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Centralization

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The extent to which decision-making authority isconcentrated at an organization's higher levels.

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Levels of hierarchy can differ by

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Span of control: How many employees report to a singlemanager.

Height: tall (smaller span of control) vs. flat (greater span ofcontrol).

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Matrix Organization

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A combination of functional and divisionalstructures. It pools employees from different departments to formproject or product teams.Three types of boundaryless organization:

1. Modular organizations

2. Strategic alliances

3. Self-managing teams

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Three types of boundaryless organization:

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1. Modular organizations eliminate boundaries with suppliers.2. Strategic alliances see competitors collaborate on a mutuallybeneficial area.3. Self-managing teams perform day-to-day activities withoutdirect supervision.

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Learning organization

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A structure that institutionalizes thecreation, acquisition, and transfer of knowledge.

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Virtual organization

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A network of independent contractors ororganizations, linked by technology.

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five major external forces for change

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1. Workforce demographics (e.g., age and education)2. Technology (e.g., new devices and ideas)3. Market conditions (e.g., number of competitors; health ofgreater economy)4. Globalization (e.g., rise of overseas suppliers and competitors)5. Social values (e.g., if customers care about animal rights, soshould company)

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Organizational effectiveness criteria to assess a company's performance

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1. Goal accomplishment

2. Resource acquisition (raw materials, capital, and expertise)

3. Internal processes (indicators like job satisfaction)

4. Strategic constituencies satisfaction (meeting theexpectations of key stakeholders, such as investors andemployees)

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Organizational decline

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A decrease in a company’s resource base(money, customers, talent, and innovations).

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Differentiation

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1 of 2 structural forces that influence organizations:

The division of labor that causes differences inspecialists' behavior and perspectives. Too much differentiationcan create inefficiency, miscommunication, and conflict.

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Integration

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1 of 2 structural forces that influence organizations:

The coordination of specialists to achieve acommon goal. Integration strategies (e.g., the formation of matrixstructures) are designed to offset the problems posed bydifferentiation.

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Mechanistic structures

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Structures that are highly formalized and centralized, rigid bureaucracies (e.g., McDonald’s Swiss watch-like operations).

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Organic structures

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Flexible structures with lowformalization and centralization (e.g., 3M uses them to encourageentrepreneurial behavior and innovation).

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Change management

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The management ofchange within an organization. It depends on the cooperation ofemployees. When change is mismanaged, it’s likely that: The chances of achieving corporate goals are reduced.Employee retention is lowered.Money and resources are wasted.

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Lewin's three-stage change model

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A three-stage model forcarrying out organizational change:

1. Unfreezing: ensure that employees are ready for and open tochange.

2. Change: execute the change.

3. Refreezing: reinforce changes until they become the norm.

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Kotter's eight-steps to leading change

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An extension of Lewin'schange model. The steps fall within Lewin’s three stages.

1- Unfreeze= (1. Create a sense of urgency.2. Build a coalition.3. Create a vision for change.4. Communicate a plan for change.)

2- Change= (5. Eliminate obstacles to change.6. Create small wins. 7. Build on change.)

3- Refreeze= (8. Make change a part of culture.)

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Organizational identity

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Organizational identity: a set of shared values and beliefs thatunderlie a company's identity and guide employee behavior. Itprovides members with an idea of what the company represents,and helps them understand their role within the organization.

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There are three layers of organizational culture

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1. Basic assumptions: organizational values that have becomeentrenched. Employees take them for granted and are unawareof them.

2. Values: Professed, enduring beliefs that serve as a company'sbehavioral compass.

3. Artifacts: Visible, tangible elements. These include thecompany's physical layout, symbols, and traditions.

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Espoused Values vs. Enacted Values

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a. Espoused values are communicated by management.

b. Enacted values are what employees actually do.

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Competing values framework (CVF)

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One of the most influentialframeworks used to categorize culture, it proposes thatorganizations can be assessed along two axes: direction of focusand degree of control.

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Clan cultures

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Depending on its values, an organization falls into one of fourarchetypes:

Clan cultures create collaborative, family-like environments,and invest in their employees.

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Adhocracy cultures

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Depending on its values, an organization falls into one of fourarchetypes:

Adhocracy cultures foster innovation and adapt quickly tomarket changes.

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Market cultures

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Depending on its values, an organization falls into one of fourarchetypes:

Market cultures deliver results by any means necessary.

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Hierarchy cultures

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Depending on its values, an organization falls into one of fourarchetypes:

Hierarchy cultures favor formalization, standardizing, andoptimizing internal processes.

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Organizational culture profile (OCP)

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A framework used to assesscompanies in preparation for a culture change or a merger. Itproposes that organizational culture is represented by sevenvalues:

-stable cultures, innovative cultures, aggressive cultures, outcome-oriented cultures, people-oriented cultures, team-oriented cultures & detail-oriented cultures

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Stable cultures

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Cultures are highly structured to produce constant levels of output.

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Innovative cultures

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Optimize adaptability and encourage risk-taking.

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Aggressive cultures

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are driven to beat rivals by any meansnecessary.

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Outcome-oriented cultures

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cultures that emphasize achievement andresults.

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People-oriented cultures

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are fair and respectful of individualrights.

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Team-oriented cultures

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Collaborative and cooperative cultures.

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Detail-oriented cultures

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Detail-oriented cultures are precise and meticulous.

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Service cultures

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Service cultures train their employees to serve customers throughempowerment and cross-training.

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Safety cultures

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Safety cultures increase employee morale and retention.

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Founder values

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The beliefs and attitudes of a company'sfounder(s). A company's culture is largely shaped by these values,especially early on.

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Attraction-selection-attrition

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Companiestend to attract and select job seekers who fit their culture, andculture mismatches will leave through attrition.

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Onboarding

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The process by which new hires are introduced tothe company's business practices and values.

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Leadership

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Leadership also plays an important role in maintainingorganizational culture. Leaders model appropriate behavior totheir employees.

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Rewards systems

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Leadership can further maintain organizational culture through theuse of rewards systems to enforce ideal behaviors and outcomes.