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0273701843_COVER 30/9/05 10:53 am Page 1
Organisational Behaviour
Organisational Behaviour
Individuals, Groups and Organisation
Ian Brooks Third Edition
“In a relatively short text, the authors cover a wide range of issues,
relate them to students’ popular imagination and experience,
and anchor them firmly in a contemporary business context,
all of which is extremely valuable.”
Samantha Warren, University of Portsmouth
Ian Brooks
The book is aimed at students taking modules in
theories in everyday practice
Organisational Behaviour on undergraduate and
postgraduate business degrees. It is also suitable for Range of short and long cases
post-experience and professional qualifications, as well Frequent questions encourage critical
as the more general reader with a background of study reflection
in the social sciences.
An imprint of
www.pearson-books.com
ORGB_A01.QXP 26/9/05 10:54 am Page i
Organisational Behaviour
ORGB_A01.QXP 26/9/05 10:54 am Page ii
The rights of Ian Brooks, Hugh Davenport, Jon Stephens and Stephen Swailes to be identified
as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,
or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise, without either the prior written permission of the publisher or a licence permitting
restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd,
90 Tottenham Court Road, London W1T 4LP.
ISBN-13: 978-02737-0184-2
ISBN-10: 0-27370-1843
10 9 8 7 6 5 4 3 2 1
11 10 09 08 07 06
Contents
Contributors xiii
Preface xv
1 Introduction 1
Jon Stephens
Introduction 14
Individual behaviour and personality 14
Perception and the perceptual process 22
Attitudes and values 27
Individual learning in the organisation 32
Decision making 36
Communication, change and conflict 38
Managerial implications 42
Summary of main points 42
Conclusions 43
Questions 43
ORGB_A01.QXP 26/9/05 10:54 am Page viii
viii Contents
References 44
Further reading 46
Internet sites 46
3 Motivation at work 47
Introduction 48
Schools of thought 48
Expectancy theory: a framework for the analysis of workplace motivation 50
Needs theories 55
Intrinsic and extrinsic rewards 60
Motivation and equitable treatment 64
Change, motivation and the psychological contract 65
Motivation and conflict 66
Contemporary motivation theories 69
Motivation and job design 71
Managerial implications 73
Summary of main points 74
Conclusions 74
Questions 75
References 75
Further reading 77
Internet sites 77
Hugh Davenport
Introduction 80
Why gather in groups? 80
Groups and teams 83
Formal and informal groups and teams 89
Stages of group and team development 91
Roles and routines 95
Building and maintaining effective teams 99
Communication and conflict 103
Groups and change 107
Managerial implications 114
ORGB_A01.QXP 26/9/05 10:54 am Page ix
Contents ix
Introduction 122
Macro-organisational theories 122
Technical-rational approach 124
Socio-human approach 130
Systems theory 131
Contingency theory 133
Contemporary lenses 137
Managerial implications 142
Summary of main points 143
Conclusions 144
Questions 144
References 144
Further reading 145
Introduction 148
From Taylor to Mintzberg 148
Differentiating leadership from management 152
Leadership: schools of thought 154
Reframing leadership 164
Leadership and change 165
Leadership and diversity 172
Leadership and communications 172
Leadership and conflict 173
Managerial implications 173
Summary of main points 174
Conclusions 174
Questions 175
ORGB_A01.QXP 26/9/05 10:54 am Page x
x Contents
References 175
Further reading 176
Internet sites 177
Stephen Swailes
Introduction 180
What is structure? 180
Talking about structure 181
Structural types 184
Virtual organisations 190
Partnership working 191
Influences on structure 194
Criticisms of the contingency approach 199
The organisation as a system 200
Current issues affecting structuring 201
Flexible working 205
Communities of practice 207
Cross-cultural influences upon structure 209
Structure and competition: research evidence 210
Managerial implications 212
Summary of main points 213
Conclusions 214
Questions 215
References 215
Further reading 217
Internet sites 218
Contents xi
Jon Stephens
Introduction 270
National culture 271
Perspectives on culture 273
Organisational behaviour and national culture 287
Change, conflict and communication 295
Managerial implications 299
Summary of main points 300
Conclusions 300
Questions 300
ORGB_A01.QXP 26/9/05 10:54 am Page xii
xii Contents
References 301
Further reading 303
Internet sites 303
Index 325
Supporting resources
Visit www.pearsoned.co.uk/brooks to find valuable online resources
For instructors
● Complete, downloadable Instructor’s Manual
● PowerPoint slides that can be downloaded and used as OHTs
For more information please contact your local Pearson Education sales representative
or visit www.pearsoned.co.uk/brooks
ORGB_A01.QXP 26/9/05 10:54 am Page xiii
Contributors
Dr Ian Brooks
is Dean of Northampton Business School at the University of Northampton. His
research interests include the study of organisational culture and sub-culture,
change and the NHS.
Hugh Davenport
is a Senior Lecturer in Organisational Behaviour and Occupational Psychology in
Northampton Business School.
Jon Stephens
is a Senior Lecturer in International Business in the Northampton Business School,
with research interests in international and comparative management.
Dr Stephen Swailes
is a Senior Lecturer at the University of Hull. His research interests include the study
of organisational commitment, particularly among professional employees, and the
performance of management teams.
ORGB_A01.QXP 26/9/05 10:54 am Page xiv
ORGB_A01.QXP 26/9/05 10:54 am Page xv
Preface
1 Introduction
Learning outcomes
On completion of this chapter you should be able to:
● understand the nature and scope of Organisational Behaviour (OB);
● understand the value of a behavioural approach to management;
● know how the book is structured;
● recognise that individual and collective human behaviour in organisations influences
how we ‘see’ and react to the business environment;
● understand the importance of the four themes of diversity, change, conflict and
communications to the study of organisational behaviour;
● know that OB is a developing subject, and that new research themes emerge and
guide our understanding of human behaviour and activity in organisations.
Key concepts
● individual behaviour
● group behaviour
● organisational behaviour
● organisational analysis
● multidisciplinary study
● theory to practice
● change
● conflict
● communications
● diversity
ORGB_C01.QXP 26/9/05 10:56 am Page 2
2 Chapter 1 • Introduction
Introduction
All organisations exist in a complex and usually dynamic environment. The ‘busi-
ness’ environment comprises an array of forces which both influence an
organisation and are framed by the organisation. These forces may be categorised.
One such typology is the PEST model, where the environment is thought to com-
prise political, economic, social and technological forces. If we add legal, ecological
and competitive processes to this we have included most aspects of the external
environment. It can be argued that organisations behave in response to environ-
mental forces and, in turn, their behaviour, or strategy, influences their
environment. Wilson (1992) suggests three broad ways of viewing the business
environment, namely as:
● an objective fact – a clear, measurable and definable reality;
● a subjective fact, its particular characteristics being dependent on each
individual’s or group’s interpretation and perception;
● enacted (Weick, 1979), where the division between organisation and environment
is unclear and, more significantly, where the environment is created and defined
by the organisation itself, or rather, by the individuals and groups that comprise
an organisation (two illustrations of this are given in Mini-case 1.1).
Mini-case 1.1
Enactment: a case from industry tunity created by Innovate’s decision to develop the
and from sport database product so they focused on the areas
which Innovate neglected.
Innovate PLC Innovate’s original perception of their environ-
Innovate plc, a computer software company, held a ment led them to a particular strategic management
collective perception that their competitive environ- decision. In making that decision Innovate enacted
ment was becoming threatening. They believed that their environment. That is, their actions ensured that
numerous smaller software companies might begin their perceptions became a reality. Their actions
to encroach on their activities if they did not focus allowed their competitors to adjust their strategic
research and development (R&D) activity in specific policy to take advantage of the opportunity.
areas. Faced with having to make a decision, they Innovate’s perceptions and subsequent actions had
decided to increase R&D spending significantly in an become a self-fulfilling prophecy. Had their original
attempt to develop a new database product. A con- perception been different, their strategy, and those
sequence of this was a reduction in the R&D spend of their competitors, might have been different, and
and management attention on their other products. resulted in quite different competitive conditions.
After two years Innovate had successfully pro-
The relegation battle
duced and marketed their database product. They
remained the market leaders with almost unassail- A number of football teams get relegated from the
able strength. However, there was a cost. The Premiership each year. On occasions one or two are
competitors recognised that there was an oppor- said, in the press, to have given up well before the
ORGB_C01.QXP 26/9/05 10:56 am Page 4
4 Chapter 1 • Introduction
end of the season. Are these teams enacting their stay up, their performance remains poor, or even
environment? worsens, and they are relegated.
Well before the end of the season some poorly When relegated, do they look back and say, ‘well,
performing teams take stock. They stop spending we knew we were for the drop so we did the sen-
money on new players and otherwise prepare them- sible thing, saved our money and energy for next
selves for leaner times in the lower division. Of season’? Could they have stayed up if they adopted
course by doing this they pretty much ensure that a different strategy – did they enact their environ-
they will get relegated. Without new players and, ment?
more importantly, the burning desire and ambition to
The latter two definitions suggest that behavioural elements at the individual,
group and/or organisational level influence the nature of the relationship between
an organisation and its environment: hence, the relevance of this to the study of
organisational behaviour.
It is quite possible that two companies in the same sector might view aspects of
their environment differently. One might identify a technological change as an
opportunity for growth and development whereas the other might see it as a threat.
There is considerable evidence to suggest that this sort of variable response occurs.
What is clear is that the direction of influence between environment and organis-
ation is not unidirectional, simple or static but multidirectional, each influencing
the other. What is more, organisations and people in them can assist in the ‘cre-
ation’ of their own environment.
Decision makers in organisations receive and assimilate incoming data from the
environment, information and ideas about new products and services, tech-
nologies, competitor action, ways of organising and managing and so forth. The
data are incomplete and even the most sophisticated scanning and forecasting
activities can only hope to collect a small proportion of all environmental data.
Individuals, groups and organisations interpret the data in different ways. They read
different things into it and make different judgements on what is important or not
important and on how they should react. These differences in reception, interpret-
ation and assimilation are influenced by the history and development of the
organisations, of individual perception, power balances and organisational culture.
It could be said that our ‘perception’ only enables us to see and interpret infor-
mation in certain ways (see Chapter 2). In turn, operational and strategic decisions
are based on these interpretative data and so, as Weick (1979) suggests, actions
based on subjective information will in turn influence the environment of the
organisation. The organisation ‘enacts’ or creates the environment in which it oper-
ates: Mini-case 1.1 illustrates this phenomenon.
Most early organisational research assumed a largely stable business environ-
ment. Proponents of the classical school argued that organisations should be
machine-like and feature centralised authority, clear lines of command, specialisa-
tion and the division of labour and numerous rules and regulations (refer to
Chapter 5). However, such mechanised and bureaucratic organisations are poorly
suited to adapt to dynamic and complex environments. By the 1940s in North
America and, increasingly, in Europe the deficiencies of the ‘classical’ organisation
ORGB_C01.QXP 26/9/05 10:56 am Page 5
6 Chapter 1 • Introduction
Many of the theories and arguments presented in this book have value to the work
of managers and other employees in organisations. Even for students with little or
no formal organisational work experience, the ability to apply OB to other ‘organ-
isational’ contexts should prove possible and valuable. Your family, your circle of
friends, sports or other clubs and the university or college in which you study are
all organisations. Organisational behaviour is relevant to your work, study and play.
As a result of studying this subject it is quite possible that you may alter your
‘management philosophy’ including, perhaps, long-harboured beliefs, and you may
obtain the answers to outstanding questions about issues such as: how people are
motivated or led, how groups or teams function, why the structure of an organis-
ation influences the behaviour of people who work in it, and how both the culture
and power relationships in organisations affect human behaviour at work.
The study of OB should enable you to diagnose organisational problems with
some insight and expertise. Following that diagnosis you may be able to develop
solutions to problems, ways of dealing with difficult ‘human’ issues or, perhaps cru-
cially, ways of avoiding certain problems in the first place. In short, there is
something very practical about many of the theories presented in this book; you,
the scholar and the ‘manager’, will, however, need to interpret and apply them to
the particular context in which you operate. That, if achieved, would represent a
highly worthwhile, constructive and meaningful learning experience and should
make you a more effective manager.
Human behaviour in organisations is complex as it is affected by, and in turn influ-
ences, an array of factors, including managerial action, changing competitive
circumstances and new technologies. People in organisations interact with their
‘Filters’
Organisation Environment
Actions
environment, with stakeholders and with others in the organisation. There are signifi-
cant differences in personality between individuals, many people behave differently
in groups than when working alone, and most are influenced by the norms and values
of the organisation and of the society in which they live and work. These influences
and interconnections make the study of OB inherently interesting and enlightening,
especially for those concerned with human or people issues in organisations.
8 Chapter 1 • Introduction
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