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Organisational Behavior, Do Tien Long Organizational Culture & Organizational Change

Organizational Behavior - Session9

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Organizational Behavior

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Page 1: Organizational Behavior - Session9

Organisational Behavior, Do Tien Long

Organizational Culture &

Organizational Change

Page 2: Organizational Behavior - Session9

Organisational Behavior, Do Tien Long

Institutionalization: A Forerunner of CultureInstitutionalization: A Forerunner of CultureInstitutionalization

When an organization takes on a life of its own, apart from any of its members, becomes valued for itself, and acquires immortality.

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Organisational Behavior, Do Tien Long

What Is Organizational Culture?What Is Organizational Culture?

Characteristics:

1. Innovation and risk taking

2. Attention to detail

3. Outcome orientation

4. People orientation

5. Team orientation

6. Aggressiveness

7. Stability

Characteristics:

1. Innovation and risk taking

2. Attention to detail

3. Outcome orientation

4. People orientation

5. Team orientation

6. Aggressiveness

7. Stability

Organizational Culture

A common perception held by the organization’s members; a system of shared meaning.

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Organisational Behavior, Do Tien Long

Do Organizations Have Uniform Cultures?Do Organizations Have Uniform Cultures?

Dominant Culture

Expresses the core values that are shared by a majority of the organization’s members.

Subcultures

Minicultures within an organization, typically defined by department designations and geographical separation.

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Organisational Behavior, Do Tien Long

Do Organizations Have Uniform Cultures? (cont’d)Do Organizations Have Uniform Cultures? (cont’d)

Core Values

The primary or dominant values that are accepted throughout the organization.

Strong Culture

A culture in which the core values are intensely held and widely shared.

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Organisational Behavior, Do Tien Long

What Is Organizational Culture? (cont’d)What Is Organizational Culture? (cont’d)

Culture Versus Formalization

– A strong culture increases behavioral consistency and can act as a substitute for formalization.

Organizational Culture Versus National Culture

– National culture has a greater impact on employees than does their organization’s culture.

– Nationals selected to work for foreign companies may be atypical of the local/native population.

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Organisational Behavior, Do Tien Long

What Do Cultures Do?What Do Cultures Do?

Culture’s Functions:

1. Defines the boundary between one organization and others.

2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to something larger than self-interest.

4. Enhances the stability of the social system.

5. Serves as a sense-making and control mechanism for fitting employees in the organization.

Culture’s Functions:

1. Defines the boundary between one organization and others.

2. Conveys a sense of identity for its members.

3. Facilitates the generation of commitment to something larger than self-interest.

4. Enhances the stability of the social system.

5. Serves as a sense-making and control mechanism for fitting employees in the organization.

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Organisational Behavior, Do Tien Long

What Do Cultures Do?What Do Cultures Do?

Culture as a Liability:

1. Barrier to change

2. Barrier to diversity

3. Barrier to acquisitions and mergers

Culture as a Liability:

1. Barrier to change

2. Barrier to diversity

3. Barrier to acquisitions and mergers

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Organisational Behavior, Do Tien Long

How Culture BeginsHow Culture Begins

Founders hire and keep only employees who think and feel the same way they do.

Founders indoctrinate and socialize these employees to their way of thinking and feeling.

The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.

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Organisational Behavior, Do Tien Long

Keeping Culture AliveKeeping Culture Alive

Selection– Concern with how well the candidates will fit into the

organization.– Provides information to candidates about the

organization. Top Management

– Senior executives help establish behavioral norms that are adopted by the organization.

Socialization– The process that helps new employees adapt to the

organization’s culture.

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Organisational Behavior, Do Tien Long

Stages in the Socialization ProcessStages in the Socialization Process

Prearrival Stage

The period of learning in the socialization process that occurs before a new employee joins the organization.

Metamorphosis Stage

The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization.

Encounter Stage

The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge.

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Organisational Behavior, Do Tien Long

A Socialization ModelA Socialization Model

E X H I B I T 17–2E X H I B I T 17–2

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Organisational Behavior, Do Tien Long

How Organization Cultures FormHow Organization Cultures Form

E X H I B I T 17–4E X H I B I T 17–4

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Organisational Behavior, Do Tien Long

How Employees Learn CultureHow Employees Learn Culture

• Stories

• Rituals

• Material Symbols

• Language

• Stories

• Rituals

• Material Symbols

• Language

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Organisational Behavior, Do Tien Long

Creating An Ethical Organizational CultureCreating An Ethical Organizational Culture Characteristics of Organizations that Develop High

Ethical Standards– High tolerance for risk– Low to moderate in aggressiveness– Focus on means as well as outcomes

Managerial Practices Promoting an Ethical Culture– Being a visible role model– Communicating ethical expectations– Providing ethical training– Rewarding ethical acts and punishing unethical ones– Providing protective mechanisms

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Organisational Behavior, Do Tien Long

Creating a Customer-Responsive CultureCreating a Customer-Responsive Culture

Key Variables Shaping Customer-Responsive Cultures1. The types of employees hired by the

organization.2. Low formalization: the freedom to meet

customer service requirements.3. Empowering employees with decision-

making discretion to please the customer.4. Good listening skills to understand

customer messages.5. Role clarity that allows service employees

to act as “boundary spanners.”6. Employees who engage in organizational

citizenship behaviors.

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Organisational Behavior, Do Tien Long

Creating a Customer-Responsive Culture (cont’d)Creating a Customer-Responsive Culture (cont’d)

Managerial Actions:

• Select new employees with personality and attitudes consistent with high service orientation.

• Train and socialize current employees to be more customer focused.

• Change organizational structure to give employees more control.

• Empower employees to make decisions about their jobs.

Managerial Actions:

• Select new employees with personality and attitudes consistent with high service orientation.

• Train and socialize current employees to be more customer focused.

• Change organizational structure to give employees more control.

• Empower employees to make decisions about their jobs.

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Organisational Behavior, Do Tien Long

Creating a Customer-Responsive Culture (cont’d)Creating a Customer-Responsive Culture (cont’d)

Managerial Actions (cont’d) :

• Lead by conveying a customer-focused vision and demonstrating commitment to customers.

• Conduct performance appraisals based on customer-focused employee behaviors.

• Provide ongoing recognition for employees who make special efforts to please customers.

Managerial Actions (cont’d) :

• Lead by conveying a customer-focused vision and demonstrating commitment to customers.

• Conduct performance appraisals based on customer-focused employee behaviors.

• Provide ongoing recognition for employees who make special efforts to please customers.

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Organisational Behavior, Do Tien Long

Spirituality and Organizational CultureSpirituality and Organizational Culture

Workplace Spirituality

The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community.

Characteristics:• Strong sense of purpose

• Focus on individual development

• Trust and openness

• Employee empowerment

• Toleration of employee expression

Characteristics:• Strong sense of purpose

• Focus on individual development

• Trust and openness

• Employee empowerment

• Toleration of employee expression

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Organisational Behavior, Do Tien Long

Reasons for the Growing Interest in SpiritualityReasons for the Growing Interest in Spirituality As a counterbalance to the pressures and stress of a turbulent pace

of life and the lack of community many people feel and their increased need for involvement and connection.

Formalized religion hasn’t worked for many people.

Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work.

The desire to integrate personal life values with one’s professional life.

An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.

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Organisational Behavior, Do Tien Long

How Organizational Cultures Have an Impact on Performance and SatisfactionHow Organizational Cultures Have an Impact on Performance and Satisfaction

E X H I B I T 17–6E X H I B I T 17–6

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Organisational Behavior, Do Tien Long

Forces for ChangeForces for Change

E X H I B I T 19–1E X H I B I T 19–1

Force Examples

Nature of the workforce More cultural diversityAging populationMany new entrants with inadequate skills

Technology Faster, cheaper, and more mobile computers

On-line music sharingDeciphering of the human genetic code

Economic shocks Rise and fall of dot-com stocks 2000–02 stock market collapseRecord low interest rates

Competition Global competitors

Mergers and consolidationsGrowth of e-commerce

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Organisational Behavior, Do Tien Long

Forces for ChangeForces for Change

E X H I B I T 19–1 (cont’d)E X H I B I T 19–1 (cont’d)

Force Examples

Social trends Internet chat rooms Retirement of Baby BoomersRise in discount and “big box” retailers

World politics Iraq–U.S. war

Opening of markets in China War on terrorism following 9/11/01

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Managing Planned ChangeManaging Planned Change

Goals of Planned Change:

Improving the ability of the organization to adapt to changes in its environment.

Changing the behavior of individuals and groups in the organization.

Goals of Planned Change:

Improving the ability of the organization to adapt to changes in its environment.

Changing the behavior of individuals and groups in the organization.

ChangeMaking things different.Planned ChangeActivities that are intentional and goal oriented.

Change AgentsPersons who act as catalysts and assume the responsibility for managing change activities.

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Organisational Behavior, Do Tien Long

Resistance to ChangeResistance to Change

Forms of Resistance to Change

– Overt and immediate

• Voicing complaints, engaging in job actions

– Implicit and deferred

• Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism

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Sources of Individual Resistance to ChangeSources of Individual Resistance to Change

E X H I B I T 19–2E X H I B I T 19–2

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Sources of Organizational Resistance to ChangeSources of Organizational Resistance to Change

E X H I B I T 19–2 (cont’d)E X H I B I T 19–2 (cont’d)

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Overcoming Resistance to ChangeOvercoming Resistance to Change

Tactics for dealing with resistance to change:

• Education and communication

• Participation

• Facilitation and support

• Negotiation

• Manipulation and cooptation

• Selecting people who accept change

• Coercion

Tactics for dealing with resistance to change:

• Education and communication

• Participation

• Facilitation and support

• Negotiation

• Manipulation and cooptation

• Selecting people who accept change

• Coercion

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Organisational Behavior, Do Tien Long

The Politics of ChangeThe Politics of Change

Impetus for change is likely to come from outside change agents.

Internal change agents are most threatened by their loss of status in the organization.

Long-time power holders tend to implement only incremental change.

The outcomes of power struggles in the organization will determine the speed and quality of change.

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Lewin’s Three-Step Change ModelLewin’s Three-Step Change Model

UnfreezingChange efforts to overcome the pressures of both individual resistance and group conformity.

RefreezingStabilizing a change intervention by balancing driving and restraining forces.

Driving ForcesForces that direct behavior away from the status quo.

Restraining ForcesForces that hinder movement from the existing equilibrium.

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Organisational Behavior, Do Tien Long

Lewin’s Three-Step Change ModelLewin’s Three-Step Change Model

E X H I B I T 19–3E X H I B I T 19–3

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Unfreezing the Status QuoUnfreezing the Status Quo

E X H I B I T 19–4E X H I B I T 19–4

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Kotter’s Eight-Step Plan for Implementing ChangeKotter’s Eight-Step Plan for Implementing Change1. Establish a sense of urgency by creating a compelling reason for why

change is needed.

2. Form a coalition with enough power to lead the change.

3. Create a new vision to direct the change and strategies for achieving the vision.

4. Communicate the vision throughout the organization.

5. Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving.

6. Plan for, create, and reward short-term “wins” that move the organization toward the new vision.

7. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.

8. Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.

Source: Based on J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).

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Organizational DevelopmentOrganizational Development

OD Values:1. Respect for people

2. Trust and support

3. Power equalization

4. Confrontation

5. Participation

OD Values:1. Respect for people

2. Trust and support

3. Power equalization

4. Confrontation

5. Participation

Organizational Development (OD)

A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.

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Organizational Development TechniquesOrganizational Development Techniques

Sensitivity Training

Training groups (T-groups) that seek to change behavior through unstructured group interaction.

Provides increased awareness of others and self.

Increases empathy with others, improves listening skills, greater openness, and increased tolerance for others.

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Organizational Development Techniques (cont’d)Organizational Development Techniques (cont’d)

Survey Feedback Approach

The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested.

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Organizational Development Techniques (cont’d)Organizational Development Techniques (cont’d)

Process Consultation (PC)

A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.

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Organizational Development Techniques (cont’d)Organizational Development Techniques (cont’d)

Team Building Activities:

• Goal and priority setting.

• Developing interpersonal relations.

• Role analysis to each member’s role and responsibilities.

• Team process analysis.

Team Building Activities:

• Goal and priority setting.

• Developing interpersonal relations.

• Role analysis to each member’s role and responsibilities.

• Team process analysis.

Team Building

High interaction among team members to increase trust and openness.

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Organizational Development Techniques (cont’d)Organizational Development Techniques (cont’d)

Intergroup Problem Solving:Intergroup Problem Solving:

• Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.

• Share and discuss lists.Share and discuss lists.

• Look for causes of misperceptions.Look for causes of misperceptions.

• Work to develop integrative solutions.Work to develop integrative solutions.

Intergroup Problem Solving:Intergroup Problem Solving:

• Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.

• Share and discuss lists.Share and discuss lists.

• Look for causes of misperceptions.Look for causes of misperceptions.

• Work to develop integrative solutions.Work to develop integrative solutions.

Intergroup Development

OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other.

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Organizational Development Techniques (cont’d)Organizational Development Techniques (cont’d)

Appreciative Inquiry (AI):

• Discovery: recalling the strengths of the organization.

• Dreaming: speculation on the future of the organization.

• Design: finding a common vision.

• Destiny: deciding how to fulfill the dream.

Appreciative Inquiry (AI):

• Discovery: recalling the strengths of the organization.

• Dreaming: speculation on the future of the organization.

• Design: finding a common vision.

• Destiny: deciding how to fulfill the dream.

Appreciative Inquiry

Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance.

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Contemporary Change Issues For Today’s ManagersContemporary Change Issues For Today’s Managers How are changes in technology affecting the work

lives of employees?

What can managers do to help their organizations become more innovative?

How do managers create organizations that continually learn and adapt?

Is managing change culture-bound?

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Technology in the WorkplaceTechnology in the Workplace Continuous Improvement Processes

– Good isn’t good enough.

– Focus is on constantly reducing the variability in the organizational processes to produce more uniform products and services.

• Lowers costs and raises quality.

• Increases customer satisfaction.

– Organizational impact

• Additional stress on employees to constantly excel.

• Requires constant change in organization.

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Technology in the WorkplaceTechnology in the Workplace Process Reengineering

– “Starting all over”

– Rethinking and redesigning organizational processes to produce more uniform products and services.

• Identifying the organization’s distinctive competencies—what it does best.

• Assessing core processes that add value to the organization’s distinctive competencies.

• Reorganizing horizontally by process using cross-functional and self-managed teams.

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Contemporary Change Issues for Today’s Managers: Stimulating InnovationContemporary Change Issues for Today’s Managers: Stimulating Innovation

Sources of Innovation:Sources of Innovation:

• Structural variablesStructural variables

• Organic structuresOrganic structures

• Long-tenured managementLong-tenured management

• Slack resourcesSlack resources

• Interunit communicationInterunit communication

• Organization’s cultureOrganization’s culture

• Human resourcesHuman resources

Sources of Innovation:Sources of Innovation:

• Structural variablesStructural variables

• Organic structuresOrganic structures

• Long-tenured managementLong-tenured management

• Slack resourcesSlack resources

• Interunit communicationInterunit communication

• Organization’s cultureOrganization’s culture

• Human resourcesHuman resources

Innovation

A new idea applied to initiating or improving a product, process, or service.

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Contemporary Change Issues for Today’s Managers: Stimulating Innovation (cont’d)Contemporary Change Issues for Today’s Managers: Stimulating Innovation (cont’d)

Idea Champions

Individuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.

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Creating a Learning OrganizationCreating a Learning Organization

Characteristics:Characteristics:

1.1. Holds a shared vision.Holds a shared vision.

2.2. Discards old ways of Discards old ways of thinking.thinking.

3.3. Views organization as Views organization as system of relationships.system of relationships.

4.4. Communicates openly.Communicates openly.

5.5. Works together to achieve Works together to achieve shared vision.shared vision.

Characteristics:Characteristics:

1.1. Holds a shared vision.Holds a shared vision.

2.2. Discards old ways of Discards old ways of thinking.thinking.

3.3. Views organization as Views organization as system of relationships.system of relationships.

4.4. Communicates openly.Communicates openly.

5.5. Works together to achieve Works together to achieve shared vision.shared vision.

Learning Organization

An organization that has developed the continuous capacity to adapt and change.

Source: Based on P. M. Senge, The Fifth Discipline (New York: Doubleday, 1990).E X H I B I T 19–6

E X H I B I T 19–6

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Creating a Learning OrganizationCreating a Learning Organization

Fundamental Problems in Traditional Fundamental Problems in Traditional Organizations:Organizations:

• Fragmentation based on specialization.Fragmentation based on specialization.

• Overemphasis on competition.Overemphasis on competition.

• Reactiveness that misdirects attention to Reactiveness that misdirects attention to problem-solving rather than creation.problem-solving rather than creation.

Fundamental Problems in Traditional Fundamental Problems in Traditional Organizations:Organizations:

• Fragmentation based on specialization.Fragmentation based on specialization.

• Overemphasis on competition.Overemphasis on competition.

• Reactiveness that misdirects attention to Reactiveness that misdirects attention to problem-solving rather than creation.problem-solving rather than creation.

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Managing a Learning OrganizationManaging a Learning Organization

EstablishEstablisha strategya strategy

EstablishEstablisha strategya strategy

Redesign the Redesign the organization’sorganization’s

structurestructure

Redesign the Redesign the organization’sorganization’s

structurestructure

Reshape the Reshape the organization’s cultureorganization’s culture

Reshape the Reshape the organization’s cultureorganization’s culture

Managing Managing LearningLearning

Managing Managing LearningLearning

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Mastering Change: It’s Culture-BoundMastering Change: It’s Culture-Bound

Questions for culture-bound organizations:

1. Do people believe change is even possible?

2. How long will it take to bring about change in the organization?

3. Is resistance to change greater in this organization due to the culture of the society in which it operates?

4. How will the societal culture affect efforts to implement change?

5. How will idea champions in this organization go about gathering support for innovation efforts?

Questions for culture-bound organizations:

1. Do people believe change is even possible?

2. How long will it take to bring about change in the organization?

3. Is resistance to change greater in this organization due to the culture of the society in which it operates?

4. How will the societal culture affect efforts to implement change?

5. How will idea champions in this organization go about gathering support for innovation efforts?

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Too Much Work, Too Little TimeToo Much Work, Too Little Time

E X H I B I T 19–7E X H I B I T 19–7

With companies downsizing workers, those who remain find their jobs are demanding increasing amounts of time and energy. A national sample of U.S. employees finds that they:

Feel overworked 54%

Are overwhelmed by workload 55%

Lack time for reflection 59%

Don’t have time to complete tasks 56%

Must multi-task too much 45%

Source: Business Week, July 16, 2001, p. 12.

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Work Stress and Its ManagementWork Stress and Its Management

Stress

A dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.

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Potential Sources of Stress Potential Sources of Stress Environmental Factors

– Economic uncertainties of the business cycle

– Technological uncertainties of technical innovations

– Terrorism in threats to physical safety and security

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Potential Sources of Stress Potential Sources of Stress Organizational Factors

– Task demands related to the job

– Role demands of functioning in an organization

– Interpersonal demands created by other employees

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Potential Sources of Stress (cont’d) Potential Sources of Stress (cont’d) Individual Factors

– Family and personal relationships

– Economic problems from exceeding earning capacity

– Personality problems arising from basic disposition

Individual Differences

– Perceptual variations of how reality will affect the individual’s future

– Greater job experience moderates stress effects

– Social support buffers job stress

– Internal locus of control lowers perceived job stress

– Strong feelings of self-efficacy reduce reactions to job stress

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Consequences of StressConsequences of Stress

High LevelsHigh Levelsof Stressof Stress

High LevelsHigh Levelsof Stressof Stress

PhysiologicalPhysiologicalSymptomsSymptoms

PhysiologicalPhysiologicalSymptomsSymptoms

BehavioralBehavioralSymptomsSymptoms

BehavioralBehavioralSymptomsSymptoms

PsychologicalPsychologicalSymptomsSymptoms

PsychologicalPsychologicalSymptomsSymptoms

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Inverted-U Relationship between Stress and Job PerformanceInverted-U Relationship between Stress and Job Performance

E X H I B I T 19–10E X H I B I T 19–10

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Managing StressManaging Stress Individual Approaches

– Implementing time management– Increasing physical exercise– Relaxation training– Expanding social support network

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Managing StressManaging Stress Organizational Approaches

– Improved personnel selection and job placement– Training– Use of realistic goal setting– Redesigning of jobs– Increased employee involvement– Improved organizational communication– Offering employee sabbaticals– Establishment of corporate wellness programs

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TIỂU LUẬNTIỂU LUẬN

Teamwork & Groupwork ngày càng giữ vai trò quan trọng trong hoạt động của các tổ chức và doanh nghiệp. Hãy lựa chọn phân tích hoạt động một nhóm làm việc bạn yêu thích để làm rõ bản chất và vai trò của nhóm trong hoạt động của tổ chức, cũng như các yếu tố tác động đến hiệu quả hoạt động của nhóm.

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Yêu cầu nội dungYêu cầu nội dung Tổng quan về tổ chức hay doanh nghiệp lựa chọn:

– Thành lập, loại hình, sản phẩm/dịch vụ, khách hàng– Tổ chức, nhân sự– Mục tiêu chiến lược, tầm nhìn, sứ mệnh, triết lý– Cạnh tranh, SWOT

Nhóm lựa chọn:– Vị trí trong tổ chức– Vai trò– Kiểu nhóm– Reasons for forming groups or teams

Lý do lựa chọn nhóm và doanh nghiệp này làm đề tài nghiên cứu

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Yêu cầu nội dungYêu cầu nội dung Phân tích cấu trúc của nhóm:

– A definable membership

– Group consciousness

– A sense of shared purpose

– Interdependence

– Interaction

– Ability to act in a unitary manner Đặc trưng của nhóm:

– Roles, Norms, Status, Size, Cohesiveness Decision making & Problem solving trong nhóm

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Yêu cầu nội dungYêu cầu nội dung Đánh giá hiệu quả hoạt động

– Kết quả đạt được– Hiệu suất sử dụng nguồn lực– Phát triển cá nhân trong nhóm

Các nhân tố ảnh hưởng hiệu quả hoạt động– Membership, Work environment, Organisational,

Group development & maturity, Size of the group, Compatibility of members, Performance, Nature of the task, Physical setting, Communications, Technology, Management & leadership, Personnel policies & procedures, Success, External threats

Đề xuất nâng cao hiệu quả hoạt động của nhóm

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Yêu cầuYêu cầu

Nội dung phân tích đúng và đầy đủ

Tiểu luận thể hiện sự nỗ lực khai thác từ thực tiễn – không sao chép, cắt dán

Bài nộp bao gồm cả phụ lục: tài liệu tham khảo, câu hỏi phỏng vấn, tên, chức vụ, địa chỉ người được phỏng vấn, thời gian và địa điểm phỏng vấn

Một nhóm 2 sinh viên phối hợp

Nộp tập trung vào ngày 17/11/2007

Page 64: Organizational Behavior - Session9

Organisational Behavior, Do Tien Long